SEGMENTS AND GEOGRAPHIC REGIONS (Tables)

9 Months Ended

Sep. 30, 2024


Segment Information	Electronics & Industrial		Water & Protection		Corporate & Other		Total
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.

Schedule of Reconciliation of Income from Continuing Operations


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 millions		2024		2023
Income from continuing operations, net of tax		$	480	$	291
+	Provision for income taxes on continuing operations	106		117
Income from continuing operations before income taxes		$	586	$	408
+	Depreciation and amortization	306		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 millions		2024		2023
Income from continuing operations, net of tax		$	839	$	833
+	Provision for income taxes on continuing operations	310		287
Income from continuing operations before income taxes		$	1,149	$	1,120
+	Depreciation and amortization	895		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.

Schedule of Pre-Tax Impact Of Significant Items by Segment

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 & Industrial		Water & Protection		Corporate & Other		Total
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 & Industrial		Water & Protection		Corporate & Other		Total
In millions	Electronics & Industrial		Water & Protection		Corporate & Other		Total
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 & Industrial		Water & Protection		Corporate & Other		Total
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 & Industrial		Water & Protection		Corporate & Other		Total
In millions	Electronics & Industrial		Water & Protection		Corporate & Other		Total
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."