DuPont de Nemours, Inc.DD
DuPont de Nemours, Inc. Leases Disclosure
LEASES
The Company has operating leases for real estate, an airplane, railcars, fleet, certain machinery and equipment, and information technology assets. The Company’s leases have remaining lease terms of approximately 1 year to 25 years. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend the lease when it is reasonably certain that the Company will exercise that option. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the initial ROU asset or lease liability.
Certain of the Company's leases include residual value guarantees. These residual value guarantees are based on a percentage of the lessor's asset acquisition price and the amount of such guarantee declines over the course of the lease term. The portion of residual value guarantees that are probable of payment is included in the related lease liability in the Consolidated Balance Sheets. At December 31, 2025, the Company has future maximum payments for residual value guarantees in operating leases of $13 million with final expirations through 2034. The Company's lease agreements do not contain any material restrictive covenants.
The components of lease cost for operating leases for the years ended December 31, 2025, 2024 and 2023 were as follows:
| In millions | 2025 | 2024 | 2023 | ||||||||
| Operating lease cost | $ | 91 | $ | 78 | $ | 76 | |||||
| Short-term lease cost | 3 | 5 | 4 | ||||||||
Variable lease cost 1 | 17 | 14 | 16 | ||||||||
Less: Sublease income 2 | 5 | 4 | 4 | ||||||||
| Total lease cost | $ | 106 | $ | 93 | $ | 92 | |||||
1.Variable lease cost excludes costs that have been capitalized into inventory of approximately $60 million in each year presented.
2.Reflects income associated with subleases, not inclusive of all lessor arrangements disclosed below.
Operating cash flows from operating leases related to continuing operations were $93 million, $77 million, and $73 million for the year ended December 31, 2025, 2024 and 2023, respectively.
New operating lease assets and liabilities entered into during the year ended December 31, 2025, 2024 and 2023 were $19 million, $33 million and $79 million, respectively. Supplemental balance sheet information related to leases was as follows:
| In millions | December 31, 2025 | December 31, 2024 | ||||||
Operating Leases | ||||||||
Operating lease right-of-use assets 1 | $ | 209 | $ | 251 | ||||
Current operating lease liabilities 2 | 52 | 51 | ||||||
Noncurrent operating lease liabilities 3 | 165 | 205 | ||||||
Total operating lease liabilities | $ | 217 | $ | 256 | ||||
1.Included in "" in the Consolidated Balance Sheets.
2.Included in "" in the Consolidated Balance Sheets.
3.Included in "" in the Consolidated Balance Sheets.
Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the fixed minimum lease payments over the lease term. As most of the Company’s leases do not provide the lessor’s implicit rate, the Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments.
| Lease Term and Discount Rate for Operating Leases | December 31, 2025 | December 31, 2024 | ||||||
| Weighted-average remaining lease term (years) | 6.7 | 7.4 | ||||||
| Weighted-average discount rate | 3.45 | % | 3.54 | % | ||||
Maturities of lease liabilities were as follows:
Maturity of Lease Liabilities at December 31, 2025 | Operating Leases | ||||
| In millions | |||||
| 2026 | $ | 57 | |||
| 2027 | 45 | ||||
| 2028 | 33 | ||||
| 2029 | 21 | ||||
| 2030 | 18 | ||||
| 2031 and thereafter | 61 | ||||
| Total lease payments | $ | 235 | |||
| Less: Interest | 18 | ||||
| Present value of lease liabilities | $ | 217 | |||
The Company has leases in which it is the lessor, with the largest being a result of the Electronics Separation and N&B Transaction. In connection with the Electronics Separation, N&B Transaction and the M&M Divestitures, DuPont entered into leasing arrangements with Qnity, IFF and Celanese, whereby DuPont is leasing certain properties, including office spaces and R&D laboratories. These leases are classified as operating leases. Lease agreements where the Company is the lessor have final expirations through 2040.
For the years ended December 31, 2025, 2024 and 2023 total lease income was $74 million, $69 million and $67 million, respectively, for which the net profits recognized from these leases were approximately $19 million, $17 million and $15 million, respectively. Total lease income for each period presented is recorded in "" and "Research and development expenses". Contractual lease income for 2026 through 2040 ranges from $29 million to $104 million annually.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 14, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.