An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

DuPont de Nemours Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total undiscounted future operating lease payments	—	3,292)	3,333)	2,454)	2,773)
Discount rate¹	—	4.34%	3.88%	4.70%	5.40%

Total present value of future operating lease payments	—	2,777)	2,836)	1,967)	2,040)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Weighted-average interest rate for DuPont de Nemours Inc. debt

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.34%
2019	654)	2019	654)	627)
2020	497)	2020	497)	457)
2021	418)	2021	418)	368)
2022	363)	2022	363)	306)
2023	297)	2023	297)	240)
2024 and thereafter	1,063)	2024	297)	230)
		2025	297)	221)
		2026	297)	211)
		2027	172)	117)
Total:	3,292)		3,292)	2,777)

Based on: 10-K (reporting date: 2018-12-31).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.88%
2018	614)	2018	614)	591)
2019	494)	2019	494)	458)
2020	409)	2020	409)	365)
2021	341)	2021	341)	293)
2022	289)	2022	289)	239)
2023 and thereafter	1,186)	2023	289)	230)
		2024	289)	221)
		2025	289)	213)
		2026	289)	205)
		2027	30)	21)
Total:	3,333)		3,333)	2,836)

Based on: 10-K (reporting date: 2017-12-31).

2016 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.70%
2017	351)	2017	351)	335)
2018	300)	2018	300)	274)
2019	272)	2019	272)	237)
2020	246)	2020	246)	205)
2021	221)	2021	221)	176)
2022 and thereafter	1,064)	2022	221)	168)
		2023	221)	160)
		2024	221)	153)
		2025	221)	146)
		2026	180)	114)
Total:	2,454)		2,454)	1,967)

Based on: 10-K (reporting date: 2016-12-31).

2015 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 5.40%
2016	302)	2016	302)	287)
2017	277)	2017	277)	249)
2018	249)	2018	249)	213)
2019	230)	2019	230)	186)
2020	215)	2020	215)	165)
2021 and thereafter	1,500)	2021	215)	157)
		2022	215)	149)
		2023	215)	141)
		2024	215)	134)
		2025	215)	127)
		2026	215)	121)
		2027	210)	112)
Total:	2,773)		2,773)	2,040)

Based on: 10-K (reporting date: 2015-12-31).

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DuPont de Nemours Inc., adjustments to financial statements

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported)	69,396)	188,030)	192,164)	79,511)	68,026)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	2,777)	2,836)	1,967)	2,040)
Total assets (adjusted)	69,396)	190,807)	195,000)	81,478)	70,066)
Adjustment to Total Debt
Total debt (as reported)	17,447)	40,464)	34,071)	21,363)	17,210)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	2,777)	2,836)	1,967)	2,040)
Add: Current operating lease liabilities (included in Accrued and other current liabilities)	138)	—)	—)	—)	—)
Add: Noncurrent operating lease liabilities (included in Other noncurrent obligations)	416)	—)	—)	—)	—)
Total debt (adjusted)	18,001)	43,241)	36,907)	23,330)	19,250)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

^{1, 2} Equal to total present value of future operating lease payments.

DuPont de Nemours Inc., Financial Data: Reported vs. Adjusted

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DuPont de Nemours Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total Asset Turnover¹
Reported total asset turnover	0.31	0.46	0.33	0.61	0.72
Adjusted total asset turnover	0.31	0.45	0.32	0.59	0.70
Debt to Equity²
Reported debt to equity	0.43	0.43	0.34	0.82	0.68
Adjusted debt to equity	0.44	0.46	0.37	0.90	0.76
Return on Assets³ (ROA)
Reported ROA	0.72%	2.04%	0.76%	5.43%	11.30%
Adjusted ROA	0.72%	2.01%	0.75%	5.30%	10.97%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	DuPont de Nemours Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	DuPont de Nemours Inc. adjusted debt to equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	DuPont de Nemours Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

DuPont de Nemours Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net sales	21,512)	85,977)	62,484)	48,158)	48,778)
Total assets	69,396)	188,030)	192,164)	79,511)	68,026)
Activity Ratio
Total asset turnover¹	0.31	0.46	0.33	0.61	0.72
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales	21,512)	85,977)	62,484)	48,158)	48,778)
Adjusted total assets	69,396)	190,807)	195,000)	81,478)	70,066)
Activity Ratio
Adjusted total asset turnover²	0.31	0.45	0.32	0.59	0.70

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 21,512 ÷ 69,396 = 0.31

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 21,512 ÷ 69,396 = 0.31

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	DuPont de Nemours Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total debt	17,447)	40,464)	34,071)	21,363)	17,210)
Total DuPont stockholders’ equity	40,987)	94,571)	100,330)	25,987)	25,374)
Solvency Ratio
Debt to equity¹	0.43	0.43	0.34	0.82	0.68
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt	18,001)	43,241)	36,907)	23,330)	19,250)
Total DuPont stockholders’ equity	40,987)	94,571)	100,330)	25,987)	25,374)
Solvency Ratio
Adjusted debt to equity²	0.44	0.46	0.37	0.90	0.76

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Debt to equity = Total debt ÷ Total DuPont stockholders’ equity
= 17,447 ÷ 40,987 = 0.43

² Adjusted debt to equity = Adjusted total debt ÷ Total DuPont stockholders’ equity
= 18,001 ÷ 40,987 = 0.44

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	DuPont de Nemours Inc. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to DuPont	498)	3,844)	1,460)	4,318)	7,685)
Total assets	69,396)	188,030)	192,164)	79,511)	68,026)
Profitability Ratio
ROA¹	0.72%	2.04%	0.76%	5.43%	11.30%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income attributable to DuPont	498)	3,844)	1,460)	4,318)	7,685)
Adjusted total assets	69,396)	190,807)	195,000)	81,478)	70,066)
Profitability Ratio
Adjusted ROA²	0.72%	2.01%	0.75%	5.30%	10.97%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROA = 100 × Net income attributable to DuPont ÷ Total assets
= 100 × 498 ÷ 69,396 = 0.72%

² Adjusted ROA = 100 × Net income attributable to DuPont ÷ Adjusted total assets
= 100 × 498 ÷ 69,396 = 0.72%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	DuPont de Nemours Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

DuPont de Nemours Inc. (NYSE:DD)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

DuPont de Nemours Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

DuPont de Nemours Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)