Item 1A. RISK FACTORS

Other than the risk factor set forth below, there have been no material changes in the Company's risk factors discussed in Part I, Item 1A, Risk Factors, in the Company’s 2021 Annual Report on Form 10-K for the year ended December 31, 2021.

DuPont is pursuing plans to divest a substantial majority of its historic Mobility & Materials segment, including its announced transaction with Celanese, which are subject to uncertainties and risks, including completion risks.

On February 17, 2022, DuPont and certain of its subsidiaries entered into a Transaction Agreement (the “Transaction Agreement”) with Celanese Corporation, a Delaware Corporation (“Celanese”), pursuant to which, subject to the satisfaction of the conditions set forth in the Transaction Agreement, DuPont has agreed to sell to Celanese a majority of the Company’s historic Mobility & Materials segment, including the Engineering Polymers business line and select product lines within the Performance Resins and Advanced Solutions business lines (the “M&M Business”) for $11 billion in cash, subject to customary transaction adjustments in accordance with the Transaction Agreement (the “M&M Divestiture”).

Consummation of the M&M Divestiture is subject to the satisfaction or waiver of certain customary mutual closing conditions, including (i) the absence of an injunction in certain agreed jurisdictions that would prohibit consummation of the M&M Divestiture and (ii) the expiration or termination of the required waiting, notice or review periods and approvals or clearances under the Hart-Scott-Rodino Act, as amended, and certain other approvals under non-U.S. regulatory laws, as applicable, including, without limitation, the European Union, China, Brazil, Mexico, South Korea and Turkey. The obligation of each party to consummate the M&M Divestiture is also conditioned upon the other party’s representations and warranties being true and correct (subject to certain materiality exceptions) and the other party having performed in all material respects its obligations under the Transaction Agreement.

There can be no assurance that the M&M Divestiture will be consummated in a timely manner, or at all, or that DuPont will realize all or any of the expected benefits of the M&M Divestiture. The consummation of the M&M Divestiture and the expected benefits to DuPont are subject to risks and uncertainties including (x) the ability of the parties to obtain necessary regulatory approvals or to satisfy any of the other closing conditions; (y) the performance of the M&M Business, which may be impacted by, among other things, the ability to offset increased costs, obtain raw materials, meet customer needs, operational and supply chain impacts or disruptions, which may result from, among other events, the COVID-19 pandemic and actions in response to it, and geo-political and weather related events; and (z) timing, costs and other impacts of the pursuit of the separation of the M&M Business on DuPont’s business operations, including the M&M Business and the former Mobility & Materials business lines not in-scope for the M&M Divestiture.

The announcement, pendency and consummation (or termination) of the M&M Divestiture could cause disruptions in DuPont’s business, including potential adverse reactions or changes to business relationships and competitive responses to the M&M Divestiture. The M&M Divestiture will require significant amounts of time and effort which could divert management’s attention from operating and growing our business. DuPont has incurred and expects to incur a number of non-recurring costs in connection with the M&M Divestiture. These costs and expenses include financial, legal, accounting, consulting and other advisory fees and expenses; reorganization and restructuring costs; severance/employee benefit-related expenses; and other related charges some of which are payable by DuPont regardless of whether the proposed M&M Divestiture is consummated. The Transaction Agreement generally requires DuPont to operate the M&M Business in the ordinary course, pending consummation, of the M&M Divestiture and restricts DuPont, without Celanese’s consent, from taking certain specified actions until the M&M Divestiture is consummated or the Transaction Agreement is terminated, including making certain acquisitions and divestitures and entering into certain contracts. Any of the foregoing could adversely affect DuPont’s business, financial condition and results of operations. Declines in sales, earnings and cash flows could also result in future asset impairments (including goodwill).

As part of the Company’s announcement on February 18, 2022 of the transaction with Celanese, DuPont also announced that its Board of Directors approved the divestiture of the Delrin® acetal homopolymer (H-POM) business, (the “Delrin® Business”) subject to entry into a definitive agreement and satisfaction of customary closing conditions. There can be no assurance as to the outcome, timing or ability to realize expected benefits from the Delrin® Business divestiture process.

While DuPont is engaged in certain internal reorganization activities to separate the M&M Business into separate subsidiaries and to align such subsidiaries for disposition in a tax-efficient manner, such disposition is expected to be a taxable disposition for the Company. Additionally, if certain internal transactions related to the separation of the M&M Business fail to qualify for their intended tax treatment under U.S. federal, state, local tax and/or foreign tax law, DuPont could incur additional tax liabilities.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following table provides information regarding purchases of the Company’s common stock by the Company during the three months ended March 31, 2022:

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.