EX-99.2 3 cortevaq22023enrschedules.htm EX-99.2 Document

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


Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Net sales$6,045 $6,252 $10,929 $10,853 
Cost of goods sold3,137 3,323 5,908 6,047 
Research and development expense329 296 645 564 
Selling, general and administrative expenses1,045 1,017 1,771 1,752 
Amortization of intangibles174 179 334 358 
Restructuring and asset related charges - net60 143 93 148 
Other income (expense) - net(134)49 (205)66 
Interest expense82 16 113 25 
Income (loss) from continuing operations before income taxes1,084 1,327 1,860 2,025 
Provision for (benefit from) income taxes on continuing operations204 325 373 446 
Income (loss) from continuing operations after income taxes880 1,002 1,487 1,579 
Income (loss) from discontinued operations after income taxes(163)(30)(171)(40)
Net income (loss)717 972 1,316 1,539 
Net income (loss) attributable to noncontrolling interests3 3 7 6 
Net income (loss) attributable to Corteva$714 $969 $1,309 $1,533 
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock from continuing operations$1.23 $1.38 $2.08 $2.17 
Basic earnings (loss) per share of common stock from discontinued operations(0.23)(0.04)(0.24)(0.06)
Basic earnings (loss) per share of common stock$1.00 $1.34 $1.84 $2.11 
Diluted earnings (loss) per share of common stock:
Diluted earnings (loss) per share of common stock from continuing operations$1.23 $1.37 $2.07 $2.16 
Diluted earnings (loss) per share of common stock from discontinued operations(0.23)(0.04)(0.24)(0.05)
Diluted earnings (loss) per share of common stock$1.00 $1.33 $1.83 $2.11 
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions)
Basic710.8723.0711.8724.9
Diluted713.7726.7714.8728.6





A-2
Corteva, Inc.
Consolidated Balance Sheets
(Dollars in millions, except share amounts)
June 30, 2023December 31, 2022June 30, 2022
Assets
Current assets
Cash and cash equivalents$2,563 $3,191 $2,401 
Marketable securities53 124 254 
Accounts and notes receivable – net
7,955 5,701 6,947 
Inventories5,628 6,811 4,184 
Other current assets1,008 968 978 
Total current assets17,207 16,795 14,764 
Investment in nonconsolidated affiliates83 102 93 
Property, plant and equipment8,797 8,551 8,532 
Less: Accumulated depreciation4,491 4,297 4,232 
Net property, plant and equipment4,306 4,254 4,300 
Goodwill10,539 9,962 9,987 
Other intangible assets9,985 9,339 9,673 
Deferred income taxes524 479 449 
Other assets1,545 1,687 1,640 
Total Assets$44,189 $42,618 $40,906 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$3,023 $24 $712 
Accounts payable3,379 4,895 3,567 
Income taxes payable396 183 383 
Deferred revenue656 3,388 740 
Accrued and other current liabilities2,892 2,254 2,454 
Total current liabilities10,346 10,744 7,856 
Long-term debt2,290 1,283 1,283 
Other noncurrent liabilities
Deferred income tax liabilities1,134 1,119 1,165 
Pension and other post employment benefits - noncurrent2,236 2,255 2,838 
Other noncurrent obligations1,722 1,676 1,693 
Total noncurrent liabilities7,382 6,333 6,979 
Commitments and contingent liabilities
Stockholders' equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at June 30, 2023 - 709,516,000; December 31, 2022 - 713,419,000; and June 30, 2022 - 719,320,0007 7 7 
Additional paid-in capital27,877 27,851 27,795 
Retained earnings 1,013 250 1,252 
Accumulated other comprehensive income (loss)(2,677)(2,806)(3,223)
Total Corteva stockholders' equity26,220 25,302 25,831 
Noncontrolling interests241 239 240 
Total equity26,461 25,541 26,071 
Total Liabilities and Equity$44,189 $42,618 $40,906 

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

Six Months Ended June 30,
20232022
Operating activities
Net income (loss)$1,316 $1,539 
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
Depreciation and amortization593 609 
Provision for (benefit from) deferred income tax(171)(79)
Net periodic pension and OPEB (credits) costs
71 (138)
Pension and OPEB contributions(91)(113)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments(1)(1)
Restructuring and asset related charges - net93 148 
Other net loss192 99 
Changes in assets and liabilities, net
Accounts and notes receivable(1,899)(2,331)
Inventories1,320 905 
Accounts payable(1,558)(488)
Deferred revenue(2,758)(2,450)
Other assets and liabilities394 679 
Cash provided by (used for) operating activities(2,499)(1,621)
Investing activities
Capital expenditures(250)(318)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested34 12 
Acquisitions of businesses - net of cash acquired(1,463)— 
Investments in and loans to nonconsolidated affiliates(4)(6)
Purchases of investments(7)(236)
Proceeds from sales and maturities of investments106 93 
Proceeds from settlement of net investment hedge42 — 
Other investing activities, net(2)20 
Cash provided by (used for) investing activities(1,544)(435)
Financing activities
Net change in borrowings (less than 90 days) 885 325 
Proceeds from debt3,427 772 
Payments on debt(372)(204)
Repurchase of common stock(332)(600)
Proceeds from exercise of stock options26 62 
Dividends paid to stockholders(213)(203)
Other financing activities, net(42)(46)
Cash provided by (used for) financing activities3,379 106 
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents9 (116)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents(655)(2,066)
Cash, cash equivalents and restricted cash equivalents at beginning of period3,618 4,836 
Cash, cash equivalents and restricted cash equivalents at end of period$2,963 $2,770 

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

Three Months Ended
June 30,		Six Months Ended
June 30,
SEGMENT NET SALES - SEED2023202220232022
    Corn$2,673 $2,222 $4,652 $4,152 
    Soybean1,255 1,308 1,524 1,480 
    Other oilseeds194 246 495 523 
    Other142 171 288 316 
Seed$4,264 $3,947 $6,959 $6,471 
Three Months Ended
June 30,		Six Months Ended
June 30,
SEGMENT NET SALES - CROP PROTECTION2023202220232022
    Herbicides$986 $1,224 $2,228 $2,429 
    Insecticides331 494 740 912 
    Fungicides252 448 611 752 
    Other212 139 391 289 
Crop Protection$1,781 $2,305 $3,970 $4,382 
Three Months Ended
June 30,		Six Months Ended
June 30,
GEOGRAPHIC NET SALES - SEED2023202220232022
North America 1
$3,696 $3,235 $5,019 $4,419 
EMEA 2
231 359 1,243 1,285 
Latin America
208 206 467 529 
Asia Pacific
129 147 230 238 
Rest of World 3
568 712 1,940 2,052 
Net Sales$4,264 $3,947 $6,959 $6,471 
Three Months Ended
June 30,		Six Months Ended
June 30,
GEOGRAPHIC NET SALES - CROP PROTECTION2023202220232022
North America 1
$623 $843 $1,502 $1,664 
EMEA 2
483 499 1,284 1,155 
Latin America
400 627 693 954 
Asia Pacific
275 336 491 609 
Rest of World 3
1,158 1,462 2,468 2,718 
Net Sales$1,781 $2,305 $3,970 $4,382 
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
June 30,		Six Months Ended
June 30,
20232023
Net Sales (GAAP)$6,045 $10,929 
Add: Impacts from Currency and Portfolio / Other4
(33)142 
Organic Sales (Non-GAAP)$6,012 $11,071 
Three Months Ended
June 30,		Six Months Ended
June 30,
OPERATING EBITDA2023202220232022
Seed$1,458 $1,240 $2,110 $1,809 
Crop Protection320 509 923 1,000 
Corporate Expenses(32)(30)(56)(51)
Operating EBITDA (Non-GAAP)$1,746 $1,719 $2,977 $2,758 
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDAThree Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Income (loss) from continuing operations after income taxes (GAAP)$880 $1,002 $1,487 $1,579 
Provision for (benefit from) income taxes on continuing operations204 325 373 446 
Income (loss) from continuing operations before income taxes (GAAP)1,084 1,327 1,860 2,025 
Depreciation and amortization306 302 593 609 
Interest income(54)(24)(94)(39)
Interest expense82 16 113 25 
Exchange (gains) losses1
104 36 140 83 
Non-operating (benefits) costs2
44 (60)87 (125)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges63 (33)78 3 
Significant items (benefit) charge3
117 155 200 177 
Operating EBITDA (Non-GAAP)$1,746 $1,719 $2,977 $2,758 

1.Refer to page A-15 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) credits (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-10 for pre-tax and after tax impacts of significant items.
4.Other includes the revenue recognized relating to seed sales associated with the Russia Exit. Refer to schedule A-10 for further detail on significant items.

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

PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Q2 2023 vs. Q2 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$241 6 %$265 6 %9 %(3)%(1)%1 %
EMEA2
(144)(17)%(154)(18)%15 %(33)%(4)%5 %
Latin America
(225)(27)%(300)(36)%3 %(39)%(1)%10 %
Asia Pacific
(79)(16)%(51)(11)%6 %(17)%(5)%— %
Rest of World(448)(21)%(505)(23)%8 %(31)%(3)%5 %
Total$(207)(3)%$(240)(4)%9 %(13)%(1)%2 %
SEED
Q2 2023 vs. Q2 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$461 14 %$489 15 %11 %4 %(1)%— %
EMEA2
(128)(36)%(131)(36)%22 %(58)%(8)%8 %
Latin America
2 1 %1 — %14 %(14)%1 %— %
Asia Pacific
(18)(12)%(7)(5)%10 %(15)%(7)%— %
Rest of World(144)(20)%(137)(19)%17 %(36)%(5)%4 %
Total$317 8 %$352 9 %12 %(3)%(2)%1 %
CROP PROTECTION
Q2 2023 vs. Q2 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$(220)(26)%$(224)(27)%3 %(30)%— %1 %
EMEA
(16)(3)%(23)(5)%10 %(15)%— %2 %
Latin America
(227)(36)%(301)(48)%(1)%(47)%(1)%13 %
Asia Pacific
(61)(18)%(44)(13)%4 %(17)%(5)%— %
Rest of World(304)(21)%(368)(25)%4 %(29)%(2)%6 %
Total$(524)(23)%$(592)(26)%3 %(29)%(1)%4 %

A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Q2 2023 vs. Q2 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn2
$451 20 %$471 21 %14 %7 %(2)%1 %
Soybeans(53)(4)%(45)(3)%8 %(11)%(1)%— %
Other oilseeds2
(52)(21)%(49)(20)%17 %(37)%(5)%4 %
Other(29)(17)%(25)(15)%4 %(19)%(2)%— %
Total $317 8 %$352 9 %12 %(3)%(2)%1 %
CROP PROTECTION PRODUCT LINE
Q2 2023 vs. Q2 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$(238)(19)%$(217)(18)%3 %(21)%(1)%— %
Insecticides(163)(33)%(151)(31)%— %(31)%(1)%(1)%
Fungicides(196)(44)%(190)(42)%6 %(48)%(2)%— %
Other73 53 %(34)(24)%6 %(30)%— %77 %
Total$(524)(23)%$(592)(26)%3 %(29)%(1)%4 %

1.Organic sales is defined as price and volume and excludes currency and portfolio and other impacts, including significant items.
2.Other includes the revenue recognized relating to seed sales associated with the Russia Exit. Refer to schedule A-10 for further detail on significant items.


A-8
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
PRICE - VOLUME - CURRENCY ANALYSIS
REGION
First Half 2023 vs. First Half 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$438 7 %$471 8 %9 %(1)%(1)%— %
EMEA2
87 4 %249 10 %22 %(12)%(10)%4 %
Latin America
(323)(22)%(435)(29)%5 %(34)%— %7 %
Asia Pacific
(126)(15)%(67)(8)%7 %(15)%(7)%— %
Rest of World(362)(8)%(253)(5)%14 %(19)%(6)%3 %
Total$76 1 %$218 2 %11 %(9)%(3)%2 %
SEED
First Half 2023 vs. First Half 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$600 14 %$631 14 %10 %4 %— %— %
EMEA2
(42)(3)%42 3 %27 %(24)%(12)%6 %
Latin America
(62)(12)%(77)(15)%15 %(30)%3 %— %
Asia Pacific
(8)(3)%16 7 %13 %(6)%(10)%— %
Rest of World(112)(5)%(19)(1)%22 %(23)%(8)%4 %
Total$488 8 %$612 9 %14 %(5)%(3)%2 %
CROP PROTECTION
First Half 2023 vs. First Half 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$(162)(10)%$(160)(10)%5 %(15)%(1)%1 %
EMEA
129 11 %207 18 %16 %2 %(8)%1 %
Latin America
(261)(27)%(358)(38)%(1)%(37)%— %11 %
Asia Pacific
(118)(19)%(83)(14)%5 %(19)%(5)%— %
Rest of World(250)(9)%(234)(9)%7 %(16)%(4)%4 %
Total$(412)(9)%$(394)(9)%7 %(16)%(3)%3 %


A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
First Half 2023 vs. First Half 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn2
$500 12 %$598 14 %15 %(1)%(3)%1 %
Soybeans44 3 %53 4 %7 %(3)%(1)%— %
Other oilseeds2
(28)(5)%(14)(3)%23 %(26)%(9)%7 %
Other(28)(9)%(25)(8)%10 %(18)%(1)%— %
Total $488 8 %$612 9 %14 %(5)%(3)%2 %
CROP PROTECTION PRODUCT LINE
First Half 2023 vs. First Half 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$(201)(8)%$(129)(5)%6 %(11)%(3)%— %
Insecticides(172)(19)%(124)(14)%6 %(20)%(4)%(1)%
Fungicides(141)(19)%(109)(14)%9 %(23)%(5)%— %
Other102 35 %(32)(11)%5 %(16)%(1)%47 %
Total$(412)(9)%$(394)(9)%7 %(16)%(3)%3 %

1.Organic sales is defined as price and volume and excludes currency and portfolio and other impacts, including significant items.
2.Other includes the revenue recognized relating to seed sales associated with the Russia Exit. Refer to schedule A-10 for further detail on significant items.


A-10
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Seed$(58)$(138)$(64)$(143)
Crop Protection(58)(2)(129)(17)
Corporate(1)(15)(7)(17)
Total significant items before income taxes$(117)$(155)$(200)$(177)
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS
Pre-tax
After tax8
($ Per Share)
202320222023202220232022
1st Quarter
Restructuring and asset related charges, net1
$(33)$(5)$(25)$(3)$(0.03)$— 
Estimated settlement expense2
(49)(17)(37)(13)(0.05)(0.02)
Inventory write-offs3
(4)— (4)— (0.01)— 
Gain (loss) on sale of assets and equity investments3
3 — 1 — — — 
Seed sale associated with Russia Exit3
19 — 14 — 0.02 — 
Acquisition-related costs4
(19)— (17)— (0.02)— 
1st Quarter — Total
$(83)$(22)$(68)$(16)$(0.09)$(0.02)
2nd Quarter
Restructuring and asset related charges, net 1
$(60)$(143)$(45)$(116)$(0.06)$(0.16)
Estimated settlement expense2
(41)— (31)— (0.04)— 
Inventory write-offs 3
(3)(1)(3)(1)— — 
Loss on sale of equity investments 3
— (5)— (4)— (0.01)
Seed sale associated with Russia Exit3
(1)— (1)— (0.01)— 
Settlement costs associated with Russia Exit 3
— (6)— (6)— (0.01)
Acquisition-related costs4
(15)— (12)— (0.02)— 
Employee Retention Credit5
3 — 2 — — — 
Income tax items6
— — 29 — 0.04 — 
2nd Quarter — Total
$(117)$(155)$(61)$(127)$(0.09)$(0.18)
Year-to-date Total 7
$(200)$(177)$(129)$(143)$(0.18)$(0.20)

1.Second and first quarter 2023 includes restructuring and asset related benefits (charges) of $(60) and $(33), respectively. The charges primarily relate to a $(52) and $(16) charge for the second and first quarter, respectively, related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits and a $(7) and $(11) charge for the first and second quarter, respectively, associated with the 2022 Restructuring Actions.

Second and first quarter 2022 included restructuring and asset related benefits (charges) of $(143) and $(5), respectively. The charges primarily related to a $(56) charge for the second quarter associated with the 2022 Restructuring Actions and a $(93) and $(6) charge for the second and first quarter, respectively, related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.

2.Second and first quarter 2023 included estimated Lorsban® related charges of $(41) and $(49), respectively. First quarter 2022 included estimated Lorsban® related charges of $(17).

3.Second and first quarter 2023 includes a benefit (charge) of $(1) and $19, respectively, relating to the sale of seeds already under production in Russia when the decision to exit the country was made and that the Company was contractually required to purchase, which consisted of $30 and $41 of net sales and $31 and $22 of cost of goods sold, respectively. Second quarter 2023 also includes a charge of $(3) associated with activities related to the 2022 Restructuring Actions consisting of inventory write offs. First quarter 2023 also includes a benefit (charge) of $(11) and $(4) associated with activities related to the 2022 Restructuring Actions consisting of a loss on the sale of the Company's interest in an equity investment and inventory write-offs.

A-11
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
Second quarter 2022 included a $(1), $(5) and $(6) charge associated with activities related to the 2022 Restructuring Actions relating to inventory write-offs associated with the Russia Exit, loss on the sale of the Company's interest in an equity investment and settlement costs associated with the Russia Exit, respectively.

4.Second and first quarter 2023 includes acquisition-related costs relating to transaction and third-party integration costs associated with the completed acquisitions of Stoller and Symborg and the recognition of the inventory fair value step-up.

5.Second quarter 2023 includes a benefit of $3 relating to an adjustment due to a change in estimate related to the Employee Retention Credit that the Company earned pursuant to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act as enhanced by the Consolidated Appropriations Act ("CAA") and American Rescue Plan Act ("ARPA").

6.Second quarter 2023 includes a tax benefit of $29 related to the impact of changes to deferred taxes associated with a tax currency change for a legal entity and an adjustment due to a change in estimate related to a worthless stock deduction in the U.S..

7.Earnings per share for the year may not equal the sum of quarterly earnings per share due to the changes in average share calculations.

8.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-12
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 June 30,
2023202220232022
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$877 $999 $1.23 $1.37 
Less: Non-operating benefits (costs), after tax 1
(35)43 (0.04)0.06 
Less: Amortization of intangibles (existing as of Separation), after tax(118)(138)(0.17)(0.19)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax(48)26 (0.07)0.04 
Less: Significant items benefit (charge), after tax(61)(127)(0.09)(0.18)
Operating Earnings (Loss) (Non-GAAP)$1,139 $1,195 $1.60 $1.64 
Six Months Ended June 30,
2023202220232022
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$1,480 $1,573 $2.07 $2.16 
Less: Non-operating benefits (costs), after tax 1
(68)92 (0.10)0.13 
Less: Amortization of intangibles (existing as of Separation), after tax(236)(277)(0.33)(0.38)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax(59)(2)(0.08)— 
Less: Significant items benefit (charge), after tax(129)(143)(0.18)(0.20)
Operating Earnings (Loss) (Non-GAAP)$1,972 $1,903 $2.76 $2.61 

1.Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) credits (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-13
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
June 30,		Six Months Ended
June 30,
2023202220232022
Operating EBITDA (Non-GAAP)1
$1,746 $1,719 $2,977 $2,758 
Depreciation(132)(123)(259)(251)
Amortization of intangibles (post Separation)(19)(2)(25)(2)
Interest Income54 24 94 39 
Interest Expense(82)(16)(113)(25)
(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
(334)(348)(579)(516)
Base income tax rate from continuing operations (Non-GAAP)1
21.3 %21.7 %21.7 %20.5 %
Exchange gains (losses), after tax2
(91)(56)(116)(94)
Net (income) loss attributable to non-controlling interests(3)(3)(7)(6)
Operating Earnings (Loss) (Non-GAAP)1
$1,139 $1,195 $1,972 $1,903 
Diluted Shares (in millions)713.7 726.7 714.8 728.6 
Operating Earnings (Loss) Per Share (Non-GAAP)1
$1.60 $1.64 $2.76 $2.61 

1.     Refer to pages A-5 through A-9, A-12 and A-14 for Non-GAAP reconciliations.
2.     Refer to page A-15 for pre-tax and after tax impacts of exchange gains (losses).




A-14
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) losses on certain foreign currency contracts not designated as hedges, and non-operating (benefits) costs.
Three Months Ended June 30,Six Months Ended
June 30,
2023202220232022
Income (loss) from continuing operations before income taxes (GAAP)
$1,084 $1,327 $1,860 $2,025 
Add: Significant items (benefit) charge 1
117 155 200 177 
           Non-operating (benefits) costs44 (60)87 (125)
           Amortization of intangibles (existing as of Separation)155 177 309 356 
  Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges63 (33)78 3 
Less: Exchange gains (losses)2
(104)(36)(140)(83)
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)
$1,567 $1,602 $2,674 $2,519 
Provision for (benefit from) income taxes on continuing operations (GAAP)
$204 $325 $373 $446 
Add: Tax benefits on significant items (benefit) charge1
56 28 71 34 
          Tax expenses on non-operating (benefits) costs9 (17)19 (33)
          Tax benefits on amortization of intangibles (existing as of Separation)37 39 73 79 
 Tax benefits on mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges15 (7)19 1 
          Tax benefits on exchange gains (losses)2
13 (20)24 (11)
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)
$334 $348 $579 $516 
Effective income tax rate (GAAP)
18.8 %24.5 %20.1 %22.0 %
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 effect3.0 %(1.1)%1.8 %(0.4)%
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 hedges21.9 %23.4 %21.8 %21.6 %
Exchange gains (losses), net effect2
(0.5)%(1.7)%(0.2)%(1.1)%
Base income tax rate from continuing operations (Non-GAAP)
21.3 %21.7 %21.7 %20.5 %
1. See page A-10 for further detail on the Significant Items.
2. See page A-15 for further details of exchange gains (losses).



A-15
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 (expense) - 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
June 30,		Six Months Ended
June 30,
2023202220232022
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains (losses)$(48)$(46)$(78)$(40)
Local tax (expenses) benefits(1)(17)8 (21)
Net after tax impact from subsidiary exchange gains (losses)$(49)$(63)$(70)$(61)
Hedging Program Gain (Loss)
Pre-tax exchange gains (losses)$(56)$10 $(62)$(43)
Tax (expenses) benefits14 (3)16 10 
Net after tax impact from hedging program exchange gains (losses) $(42)$7 $(46)$(33)
Total Exchange Gain (Loss)
Pre-tax exchange gains (losses) $(104)$(36)$(140)$(83)
Tax (expenses) benefits13 (20)24 (11)
Net after tax exchange gains (losses)$(91)$(56)$(116)$(94)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary Position Gain (Loss)" and the "Hedging Program Gain (Loss)."