v3.24.3
SEGMENTS AND GEOGRAPHIC REGIONS
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENTS AND GEOGRAPHIC REGIONS SEGMENTS AND GEOGRAPHIC REGIONS
The Company's measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., “Income from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding Future Reimbursable Indirect Costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.

Historical Delrin® costs that were classified as discontinued operation in prior years included only direct operating expenses incurred by Delrin® prior to the November 1, 2023 divestiture. Indirect costs, such as those related to corporate and shared service functions previously allocated to the Delrin® Business, did not meet the criteria for discontinued operations and were reported within continuing operations in the respective prior years. A portion of these historical indirect costs included costs related to activities the Company is undertaking on behalf of Delrin®, and for which it is reimbursed (“Future Reimbursable Indirect Costs”). Future Reimbursable Indirect Costs are reported within continuing operations but are excluded from operating EBITDA as defined below. The remaining portion of these indirect costs are not subject to reimbursement (“Stranded Costs”). Stranded Costs are reported within continuing operations in Corporate & Other and are included within Operating EBITDA.

Segment InformationElectronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Three Months Ended September 30, 2024
Net sales$1,551 $1,382 $259 $3,192 
Operating EBITDA 1
$467 $364 $26 $857 
Equity in earnings (losses) of nonconsolidated affiliates$10 $5 $(1)$14 
Three Months Ended September 30, 2023
Net sales$1,368 $1,413 $277 $3,058 
Operating EBITDA 1
$383 $362 $30 $775 
Equity in earnings of nonconsolidated affiliates$3 $8 $— $11 
Nine Months Ended September 30, 2024
Net sales$4,424 $4,064 $806 $9,294 
Operating EBITDA 2
$1,260 $1,003 $74 $2,337 
Equity in earnings (losses) of nonconsolidated affiliates$33 $22 $(6)$49 
Nine Months Ended September 30, 2023
Net sales$3,976 $4,356 $838 $9,170 
Operating EBITDA 2
$1,094 $1,074 $59 $2,227 
Equity in earnings of nonconsolidated affiliates$11 $29 $— $40 
1.Corporate & Other includes activities of the Retained Businesses.
2.A reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA is provided below.
Reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA for the Three Months Ended September 30, 2024 and 2023
Three Months Ended September 30,
In millions20242023
Income from continuing operations, net of tax $480 $291 
+Provision for income taxes on continuing operations106 117 
Income from continuing operations before income taxes$586 $408 
+Depreciation and amortization306 294 
-
Interest income 1
14 34 
+
Interest expense 2
86 102 
-
Non-operating pension/OPEB benefit credits (costs) 1
4 (3)
-
Foreign exchange (losses) gains, net 1
(19)17 
+Future reimbursable indirect costs— 2 
-Significant items benefit (charge)122 (17)
Operating EBITDA $857 $775 
1.Included in "Sundry income (expense) - net."
2.The three months ended September 30, 2024 excludes interest rate swap basis amortization. Refer to details of significant items below.

Reconciliation of "Income from continuing operations, net of tax" to Operating EBITDA for the Nine Months Ended September 30, 2024 and 2023
Nine Months Ended September 30,
In millions20242023
Income from continuing operations, net of tax $839 $833 
+Provision for income taxes on continuing operations310 287 
Income from continuing operations before income taxes$1,149 $1,120 
+Depreciation and amortization895 853 
-
Interest income 1
55 132 
+
Interest expense 2
281 295 
-
Non-operating pension/OPEB benefit credits (costs) 1
14 (7)
-
Foreign exchange (losses) gains, net 1
(19)(31)
+Future reimbursable indirect costs— 6 
-Significant items charge(62)(47)
Operating EBITDA $2,337 $2,227 
1.Included in "Sundry income (expense) - net."
2.The nine months ended September 30, 2024 excludes interest rate swap basis amortization. Refer to details of significant items below.
The following tables summarize the pre-tax impact of significant items by segment that are excluded from Operating EBITDA above:
Significant Items by Segment for the Three Months Ended September 30, 2024
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Restructuring and asset related charges - net 1
$2 $— $(23)$(21)
Acquisition, integration and separation costs 2
(3)— (40)(43)
Inventory step-up amortization 3
(2)— — (2)
Inventory write-offs 4
— (2)— (2)
Interest rate swap items 5
— — 190 190 
Total$(3)$(2)$127 $122 
1. Includes restructuring actions and asset related charges. See Note 6 for additional information.
2. Acquisition, integration and separation costs related to the Spectrum Acquisition and the Intended Business Separations.
3. Reflects the amortization of an inventory step-up adjustment related the Donatelle Plastics Acquisition.
4. Reflects adjustment for inventory write-offs recorded in “Cost of Sales" in connection with restructuring actions. See Note 6 for additional information.
5. Includes the non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps, net interest settlement loss related to the 2022 Swaps and $1 million of basis amortization on the 2022 Swaps. Refer to Note 19 for further details.

Significant Items by Segment for the Three Months Ended September 30, 2023
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Restructuring and asset related charges - net 1
$(4)$(1)$(3)$(8)
Acquisition, integration and separation costs 2
(9)— — (9)
Total$(13)$(1)$(3)$(17)
1. Includes restructuring actions and asset related charges. See Note 6 for additional information.
2. Acquisition, integration and separation costs related to the Spectrum Acquisition.

Significant Items by Segment for the Nine Months Ended September 30, 2024
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Restructuring and asset related charges - net 1
$(3)$(37)$(28)$(68)
Acquisition, integration and separation costs 2
(9)— (42)(51)
Inventory write-offs 3
— (26)— (26)
Inventory step-up amortization 4
(2)— — (2)
Loss on debt extinguishment 5
— — (74)(74)
Interest rate swap items 6
— — 151 151 
Income tax items 7
— — 8 8 
Total$(14)$(63)$15 $(62)
1. Includes restructuring actions and asset related charges. See Note 6 for additional information.
2. Acquisition, integration and separation costs related to the Intended Business Separations and Spectrum Acquisition.
3. Reflects inventory write-offs recorded in “Cost of Sales” in connection with restructuring actions. See Note 6 for additional information.
4. Reflects the amortization of an inventory step-up adjustment related the Donatelle Plastics Acquisition.
5. Reflects the loss on extinguishment of debt related to the partial redemption of an aggregate principal amount of the 2038 Notes. Refer to Note 13 for further details.
6. Includes the non-cash mark-to-market gain related to the 2022 Swaps and 2024 Swaps, net interest settlement loss related to the 2022 Swaps and $1 million of basis amortization on the 2022 Swaps. Refer to Note 19 for further details.
7. Reflects the impact of an international tax audit.

Significant Items by Segment for the Nine Months Ended September 30, 2023
Electronics & IndustrialWater & ProtectionCorporate & OtherTotal
In millions
Restructuring and asset related charges - net 1
$(26)$— $(13)$(39)
Acquisition, integration and separation costs 2
(15)— — (15)
Gain on divestiture 3
7 1 (1)7 
Total$(34)$1 $(14)$(47)
1. Includes restructuring actions and asset related charges. See Note 6 for additional information.
2. Acquisition, integration and separation costs related to the Spectrum Acquisition.
3. Reflected in "Sundry income (expense) - net."