Qnity Electronics Reaffirms $43M Indemnification Liability Following DuPont PFAS Settlement

Executive Summary

On September 10, 2026, Qnity Electronics, Inc. filed a Form 8-K under Item 8.01 (Other Events) reporting updates related to legacy environmental liabilities and settlement agreements entered into by DuPont de Nemours, Inc., The Chemours Company, and Corteva, Inc.

Key Disclosures

• North Carolina PFAS Settlement: DuPont, Chemours, and Corteva entered into a Settlement Agreement with the State of North Carolina and specified municipalities to resolve claims regarding PFAS and other emissions linked to the Fayetteville Works site and broader contamination claims.
• Qnity Indemnification Liability: Qnity Electronics previously recognized an indemnification liability of $43 million during the second quarter of 2026, which remains unchanged. This represents Qnity's contractual allocation of 44% of DuPont's after-tax liability associated with this settlement.
• MOU Impact & Escrow Requirements: The parties agreed to count this settlement and potential future litigation settlements against the 2021 Memorandum of Understanding (MOU) limits at net present value (NPV) over 25 equal annual installments discounted at an 8% rate. Future contributions to the MOU escrow account—including the payment due in September 2026—are treated as satisfied by the North Carolina and New Jersey settlement payments.

Impact Analysis

• Financial Impact: Neutral. The liability was previously established and recorded at $43 million in Q2 2026 with no incremental adjustment required.
• Operational/Legal Risk: The settlement brings resolution to legacy PFAS litigation in North Carolina without increasing Qnity's existing indemnification burden.