EX-99.2 3 cortevaq12022enr.htm EX-99.2 Document

A-1
Corteva, Inc.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)


Three Months Ended
March 31,
20222021
Net sales$4,601 $4,178 
Cost of goods sold2,724 2,420 
Research and development expense268 281 
Selling, general and administrative expenses735 733 
Amortization of intangibles179 183 
Restructuring and asset related charges - net5 100 
Other income — net17 337 
Interest expense9 7 
Income (loss) from continuing operations before income taxes698 791 
Provision for (benefit from) income taxes on continuing operations121 178 
Income (loss) from continuing operations after income taxes577 613 
Income (loss) from discontinued operations after income taxes(10)(10)
Net income (loss)567 603 
Net income (loss) attributable to noncontrolling interests3 3 
Net income (loss) attributable to Corteva$564 $600 
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock from continuing operations$0.79 $0.82 
Basic earnings (loss) per share of common stock from discontinued operations(0.01)(0.01)
Basic earnings (loss) per share of common stock$0.78 $0.81 
Diluted earnings (loss) per share of common stock:
Diluted earnings (loss) per share of common stock from continuing operations$0.79 $0.81 
Diluted earnings (loss) per share of common stock from discontinued operations(0.01)(0.01)
Diluted earnings (loss) per share of common stock$0.78 $0.80 
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions)
  Basic727.0743.4
  Diluted730.9749.6





A-2
Corteva, Inc.
Consolidated Balance Sheets
(Dollars in millions, except share amounts)
March 31, 2022December 31, 2021March 31, 2021
Assets
Current assets
Cash and cash equivalents$2,031 $4,459 $2,404 
Marketable securities290 86 114 
Accounts and notes receivable – net
7,275 4,811 6,792 
Inventories4,986 5,180 4,321 
Other current assets1,296 1,010 1,405 
Total current assets15,878 15,546 15,036 
Investment in nonconsolidated affiliates91 76 64 
Property, plant and equipment8,483 8,364 8,173 
Less: Accumulated depreciation4,150 4,035 3,874 
Net property, plant and equipment4,333 4,329 4,299 
Goodwill10,109 10,107 10,146 
Other intangible assets9,865 10,044 10,584 
Deferred income taxes471 438 433 
Other assets1,886 1,804 1,987 
Total Assets$42,633 $42,344 $42,549 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$1,018 $17 $1,250 
Accounts payable3,685 4,126 3,098 
Income taxes payable180 146 165 
Deferred revenue2,435 3,201 2,247 
Accrued and other current liabilities2,335 2,068 2,239 
Total current liabilities9,653 9,558 8,999 
Long-term debt1,154 1,100 1,102 
Other noncurrent liabilities
Deferred income tax liabilities1,203 1,220 902 
Pension and other post employment benefits - noncurrent2,983 3,124 4,954 
Other noncurrent obligations1,704 1,719 1,814 
Total noncurrent liabilities7,044 7,163 8,772 
Commitments and contingent liabilities
Stockholders' equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized;
issued at March 31, 2022 - 725,320,000; December 31, 2021 - 726,527,000; and March 31, 2021 - 738,321,000		7 7 7 
Additional paid-in capital27,760 27,751 27,630 
Retained earnings 750 524 268 
Accumulated other comprehensive income (loss)(2,821)(2,898)(3,367)
Total Corteva stockholders' equity25,696 25,384 24,538 
Noncontrolling interests240 239 240 
Total equity25,936 25,623 24,778 
Total Liabilities and Equity$42,633 $42,344 $42,549 

A-3
Corteva, Inc.
Consolidated Statement of Cash Flows
(Dollars in millions, except per share amounts)

Three Months Ended March 31,
20222021
Operating activities
Net income (loss)$567 $603 
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
Depreciation and amortization307 304 
Provision for (benefit from) deferred income tax(37)47 
Net periodic pension and OPEB benefit, net
(71)(318)
Pension and OPEB contributions(55)(84)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments3 — 
Restructuring and asset related charges - net5 100 
Other net loss104 54 
Changes in assets and liabilities, net
Accounts and notes receivable(2,372)(2,012)
Inventories234 467 
Accounts payable(406)(448)
Deferred revenue(782)(401)
Other assets and liabilities(227)(262)
Cash provided by (used for) operating activities(2,730)(1,950)
Investing activities
Capital expenditures(179)(137)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested5 20 
Investments in and loans to nonconsolidated affiliates(6)— 
Purchases of investments(234)(40)
Proceeds from sales and maturities of investments10 194 
Other investing activities - net— (1)
Cash provided by (used for) investing activities(404)36 
Financing activities
Net change in borrowings (less than 90 days) 744 828 
Proceeds from debt311 419 
Repurchase of common stock(235)(350)
Proceeds from exercise of stock options40 38 
Dividends paid to stockholders(102)(97)
Other financing activities, net(44)(17)
Cash provided by (used for) financing activities714 821 
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents(31)(50)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents(2,451)(1,143)
Cash, cash equivalents and restricted cash equivalents at beginning of period4,836 3,873 
Cash, cash equivalents and restricted cash equivalents at end of period$2,385 $2,730 

A-4
Corteva, Inc.
Consolidated Segment Information
(Dollars in millions, except per share amounts)

Three Months Ended March 31,
SEGMENT NET SALES - SEED20222021
    Corn$1,930 $1,888 
    Soybean172 177 
    Other oilseeds277 296 
    Other145 131 
Seed$2,524 $2,492 
Three Months Ended March 31,
SEGMENT NET SALES - CROP PROTECTION20222021
    Herbicides$1,205 $986 
    Insecticides418 385 
    Fungicides304 261 
    Other150 54 
Crop Protection$2,077 $1,686 
Three Months Ended March 31,
GEOGRAPHIC NET SALES - SEED20222021
North America 1
$1,184 $1,210 
EMEA 2
926 947 
Latin America
323 274 
Asia Pacific
91 61 
Rest of World 3
1,340 1,282 
Net Sales$2,524 $2,492 
Three Months Ended March 31,
GEOGRAPHIC NET SALES - CROP PROTECTION20222021
North America 1
$821 $533 
EMEA 2
656 655 
Latin America
327 244 
Asia Pacific
273 254 
Rest of World 3
1,256 1,153 
Net Sales$2,077 $1,686 
1. Reflects U.S. & Canada
2. Reflects Europe, Middle East, and Africa
3. Reflects EMEA, Latin America, and Asia Pacific



A-5
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
Three Months Ended March 31,
2022
Net Sales (GAAP)$4,601 
Less: Impacts from Currency and Portfolio(237)
Organic Sales (Non-GAAP)$4,838 
Three Months Ended March 31,
OPERATING EBITDA20222021
Seed$569 $617 
Crop Protection491 321 
Corporate Expenses(21)(34)
Operating EBITDA (Non-GAAP)$1,039 $904 
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDAThree Months Ended March 31,
20222021
Income (loss) from continuing operations after income taxes (GAAP)$577 $613 
Provision for (benefit from) income taxes on continuing operations121 178 
Income (loss) from continuing operations before income taxes (GAAP)698 791 
Depreciation and amortization307 304 
Interest income(15)(21)
Interest expense9 7 
Exchange (gains) losses1
47 35 
Non-operating (benefits) costs2
(65)(311)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges36 (1)
Significant items (benefit) charge3
22 100 
Operating EBITDA (Non-GAAP)$1,039 $904 

1.Refer to page A-12 for pre-tax and after tax impacts of exchange (gains) losses.
2.Non-operating (benefits) costs consists of non-operating pension and other post-employment benefit (OPEB) (benefits) costs, tax indemnification adjustments, and environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense.
3.Refer to page A-8 for pre-tax and after tax impacts of significant items.

A-6
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Q1 2022 vs. Q1 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$262 15 %$263 15 %8 %7 %— %— %
EMEA
(20)(1)%190 12 %9 %3 %(13)%— %
Latin America
132 25 %137 26 %12 %14 %(1)%— %
Asia Pacific
49 16 %70 22 %5 %17 %(3)%(3)%
Rest of World161 7 %397 16 %9 %7 %(9)%— %
Total$423 10 %$660 16 %9 %7 %(6)%— %
SEED
Q1 2022 vs. Q1 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$(26)(2)%$(26)(2)%5 %(7)%— %— %
EMEA
(21)(2)%108 11 %11 %— %(13)%— %
Latin America
49 18 %56 20 %9 %11 %(2)%— %
Asia Pacific
30 49 %36 58 %9 %49 %(9)%— %
Rest of World58 5 %200 16 %11 %5 %(11)%— %
Total$32 1 %$174 7 %8 %(1)%(6)%— %
CROP PROTECTION
Q1 2022 vs. Q1 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$288 54 %$289 54 %17 %37 %— %— %
EMEA
1 — %82 13 %7 %6 %(13)%— %
Latin America
83 34 %81 33 %17 %16 %1 %— %
Asia Pacific
19 7 %34 13 %4 %9 %(2)%(4)%
Rest of World103 9 %197 17 %8 %9 %(7)%(1)%
Total$391 23 %$486 29 %11 %18 %(5)%(1)%

A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Q1 2022 vs. Q1 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$42 2 %$141 7 %8 %(1)%(5)%— %
Soybeans(5)(3)%(3)(2)%6 %(8)%(1)%— %
Other oilseeds(19)(6)%18 6 %8 %(2)%(13)%— %
Other14 11 %18 13 %5 %8 %(2)%— %
Total $32 1 %$174 7 %8 %(1)%(6)%— %
CROP PROTECTION PRODUCT LINE
Q1 2022 vs. Q1 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$219 22 %$256 26 %12 %14 %(4)%— %
Insecticides33 9 %63 16 %9 %7 %(7)%— %
Fungicides43 16 %70 26 %6 %20 %(6)%(4)%
Other96 178 %97 181 %33 %148 %(3)%— %
Total$391 23 %$486 29 %11 %18 %(5)%(1)%


1.Organic sales is defined as price and volume and excludes currency and portfolio impacts.

A-8
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)
Three Months Ended March 31,
20222021
Seed$(5)$(21)
Crop Protection(15)(32)
Corporate(2)(47)
Total significant items before income taxes$(22)$(100)
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS
Pre-tax
After tax3
($ Per Share)
202220212022202120222021
1st Quarter
Restructuring and asset related charges, net 1
$(5)$(100)$(3)$(77)$— $(0.10)
Estimated settlement expense 2
(17)— (13)— (0.02)— 
1st Quarter — Total
$(22)$(100)$(16)$(77)$(0.02)$(0.10)


1.First quarter 2022 includes restructuring and asset related benefits (charges) of $(5). The charges primarily relate to a $(6) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.

First quarter 2021 included restructuring and asset related benefits (charges) of $(100). The charges primarily relate to a $(89) charge associated with the 2021 Restructuring Actions and a $(7) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.

2.First quarter 2022 includes a $(17) charge for estimated Lorsban® related reserves.

3.Unless specifically addressed in the notes above, the income tax effect on significant items was calculated based upon the enacted laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
Operating Earnings (Loss) Per Share (Non-GAAP)
Operating earnings (loss) per share is defined as earnings (loss) per share from continuing operations – diluted, excluding non-operating (benefits) costs, amortization of intangibles (existing as of Separation), net unrealized gain or loss from mark-to-market activity on certain foreign currency derivative instruments that do not qualify for hedge accounting, and significant items.
Three Months Ended March 31,
2022202120222021
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$574 $610 $0.79 $0.81 
Less: Non-operating benefits (costs), after tax 1
49 237 0.07 0.31 
Less: Amortization of intangibles (existing as of Separation), after tax(139)(143)(0.19)(0.19)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax2
(28)1 (0.04)— 
Less: Significant items benefit (charge), after tax(16)(77)(0.02)(0.10)
Operating Earnings (Loss) (Non-GAAP)$708 $592 $0.97 $0.79 

1.Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) benefits (costs), tax indemnification adjustments, and environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense.



A-10
Corteva, Inc.
Operating EBITDA to Operating Earnings (Loss) Per Share
(Dollars in millions, except per share amounts)

Operating EBITDA to Operating Earnings (Loss) Per Share
Three Months Ended
March 31,
20222021
Operating EBITDA (Non-GAAP)1
$1,039 $904 
Depreciation(128)(121)
Interest Income15 21 
Interest Expense(9)(7)
(Provision for) benefit from income taxes on continuing operations before significant items, non-operating benefits (costs), amortization of intangibles (existing as of Separation), mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges, and exchange gains (losses) (Non-GAAP)1
(168)(162)
Base income tax rate from continuing operations (Non-GAAP)1
18.3 %20.3 %
Exchange gains (losses), after tax2
(38)(40)
Net (income) loss attributable to non-controlling interests(3)(3)
Operating Earnings (Loss) (Non-GAAP)1
$708 $592 
Diluted Shares (in millions)730.9 749.6 
Operating Earnings (Loss) Per Share (Non-GAAP)1
$0.97 $0.79 

1.     Refer to pages A-5 through A-7, A-9 and A-11 for Non-GAAP reconciliations.
2.     Refer to page A-12 for pre-tax and after tax impacts of exchange gains (losses).




A-11
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

Reconciliation of Base Income Tax Rate to Effective Income Tax Rate
Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), significant items, amortization of intangibles (existing as of Separation), mark-to-market gains on certain foreign currency contracts not designated as hedges, and non-operating (benefits) costs.
Three Months Ended March 31,
20222021
Income (loss) from continuing operations before income taxes (GAAP)
$698 $791 
Add: Significant items (benefit) charge 1
22 100 
           Non-operating (benefits) costs(65)(311)
           Amortization of intangibles (existing as of Separation)179 183 
  Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges36 (1)
Less: Exchange gains (losses)2
(47)(35)
Income (loss) from continuing operations before income taxes, significant items, non-operating (benefits) costs, amortization of intangibles (existing as of Separation), mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges, and exchange gains (losses) (Non-GAAP)
$917 $797 
Provision for (benefit from) income taxes on continuing operations (GAAP)
$121 $178 
Add: Tax benefits on significant items (benefit) charge1
6 23 
          Tax expenses on non-operating (benefits) costs(16)(74)
          Tax benefits on amortization of intangibles (existing as of Separation)40 40 
  Tax benefits on mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges8 — 
          Tax benefits on exchange gains (losses)2
9 (5)
Provision for (benefit from) income taxes on continuing operations before significant items, non-operating (benefits) costs, amortization of intangibles (existing as of Separation), mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges, and exchange gains (losses) (Non-GAAP)
$168 $162 
Effective income tax rate (GAAP)
17.3 %22.5 %
Significant items, non-operating (benefits) costs, amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges effect0.8 %(0.6)%
Tax rate from continuing operations before significant items, non-operating (benefits) costs, amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges18.1 %21.9 %
Exchange gains (losses), net effect2
0.2 %(1.6)%
Base income tax rate from continuing operations (Non-GAAP)
18.3 %20.3 %
1. See page A-8 for further detail on the Significant Items.
2. See page A-12 for further details of exchange gains (losses).



A-12
Corteva, Inc.
(Dollars in millions, except per share amounts)

Exchange Gains (Losses)
The Company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The hedging program gains (losses) are largely taxable (tax deductible) in the United States (U.S.), whereas the offsetting exchange gains (losses) on the remeasurement of the net monetary asset positions are often not taxable (tax deductible) in their local jurisdictions. The net pre-tax exchange gains (losses) are recorded in other income - net and the related tax impact is recorded in provision for (benefit from) income taxes on continuing operations in the Consolidated Statements of Operations.
Three Months Ended
March 31,
20222021
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains (losses)$6 $(51)
Local tax (expenses) benefits(4)(1)
Net after tax impact from subsidiary exchange gains (losses)$2 $(52)
Hedging Program Gain (Loss)
Pre-tax exchange gains (losses)$(53)$16 
Tax (expenses) benefits13 (4)
Net after tax impact from hedging program exchange gains (losses) $(40)$12 
Total Exchange Gain (Loss)
Pre-tax exchange gains (losses) $(47)$(35)
Tax (expenses) benefits9 (5)
Net after tax exchange gains (losses)$(38)$(40)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary Position Gain (Loss)" and the "Hedging Program Gain (Loss)."