XML 24 R11.htm IDEA: XBRL DOCUMENT v3.24.2
ACQUISITIONS
6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
Donatelle Plastics Acquisition
On July 28, 2024, DuPont completed the previously announced acquisition of the Donatelle Plastics company, a medical device company specializing in the design, development and manufacture of medical components and devices. See Note 22 for further discussion.

Spectrum Acquisition
On August 1, 2023, the Company completed the previously announced acquisition of Spectrum Plastics Group (“Spectrum”) from AEA Investors (the “Spectrum Acquisition”). Spectrum manufactures flexible packaging products, plastic and silicone extrusions, and components for the industrial, food and medical business sectors throughout the United States and international markets. Spectrum is part of the Electronics & Industrial segment. The net purchase price was approximately $1,792 million, including a net upward adjustment of approximately $43.1 million for acquired cash and net working capital, among other items. The Company accounted for the acquisition in accordance with ASC 805, which requires the assets acquired and liabilities assumed to be recognized on interim Consolidated Balance Sheets at their fair values as of the acquisition date.

The purchase accounting and purchase price allocation for Spectrum are substantially complete as of June 30, 2024. Subsequent to the second quarter the Company finalized the working capital settlements for an immaterial amount which will impact the residual goodwill recorded. The Company will finalize the fair values allocated to the assets acquired and liabilities assumed no later than one year from the date of the acquisition. The following table presents the provisional valuation of certain acquired assets and liabilities assumed based upon information known as of June 30, 2024:

Spectrum Assets Acquired and Liabilities Assumed on August 1, 2023
Estimated fair value as previously reported 1
(In millions)
Fair value of assets acquired
Cash and cash equivalents$31 
Accounts and notes receivable68 
Inventories52 
Property, plant and equipment125 
Other intangible assets916 
Deferred charges and other assets 34 
Total Assets Acquired$1,226 
Fair value of liabilities assumed
Accounts payable$21 
Income taxes payable17 
Deferred income tax liabilities177 
Other noncurrent liabilities44 
Total Liabilities Assumed$259 
Goodwill825 
Total Consideration$1,792 
1.No adjustments to the amounts previously reported in the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2024.

The significant fair value estimates included in the allocation of purchase price are discussed below.

Other Intangible Assets
Other intangible assets with definite lives include acquired customer-related intangible assets of $772 million, developed technology of $126 million and trademark/tradename of $18 million. Acquired customer-related intangible assets, developed technology, and trademark/tradename have useful lives of 20 years, 15 years and 5 years, respectively. The preliminary customer-related intangible assets' fair value was determined using the multi-period excess earnings method while the developed technology and trademark/tradename fair values were determined utilizing the relief from royalty method.

Goodwill
The excess of the consideration for Spectrum over the preliminary net fair value of assets acquired and liabilities assumed resulted in the provisional recognition of $825 million of goodwill, which has been assigned to the Electronics & Industrial segment. Goodwill is primarily attributable to the optimization of the combined Electronics & Industrial segment and Spectrum businesses’ global activities across sales and manufacturing, as well as expected future customer relationships. Spectrum goodwill will not be deductible for U.S. tax purposes.