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Revenue (Notes)
3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer REVENUE

Revenue Recognition
Products
Substantially all of Corteva's revenue is derived from product sales. Product sales consist of sales of Corteva's products to farmers, distributors, and manufacturers. Corteva considers purchase orders, which in some cases are governed by master supply agreements, to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year. However, the company has some long-term contracts which can span multiple years.

Licenses of Intellectual Property
Corteva enters into licensing arrangements with customers under which it licenses its intellectual property. Revenue from the majority of intellectual property licenses is derived from sales-based royalties. Revenue for licensing agreements that contain sales-based royalties is recognized at the later of (i) when the subsequent sale occurs or (ii) when the performance obligation to which some or all of the royalty has been allocated is satisfied.

Remaining Performance Obligations
Remaining performance obligations represent the transaction price allocated to unsatisfied or partially unsatisfied performance obligations. At March 31, 2020, the company had remaining performance obligations related to material rights granted to customers for contract renewal options of $106 million ($108 million and $100 million at December 31, 2019 and March 31, 2019, respectively). The company expects revenue to be recognized for the remaining performance obligations over the next 1 year to 6 years.

Contract Balances
Contract liabilities primarily reflect deferred revenue from prepayments under contracts with customers where the company receives advance payments for products to be delivered in future periods. Corteva classifies deferred revenue as current or noncurrent based on the timing of when the company expects to recognize revenue. Contract assets primarily include amounts related to contractual rights to consideration for completed performance not yet invoiced. Accounts receivable are recorded when the right to consideration becomes unconditional.

Contract Balances
March 31, 2020
December 31, 2019
March 31, 2019
(In millions)
Accounts and notes receivable - trade1
$
5,779

$
4,396

$
5,060

Contract assets - current2
$
20

$
20

$
18

Contract assets - noncurrent3
$
49

$
49

$
46

Deferred revenue - current4
$
1,996

$
2,584

$
2,057

Deferred revenue - noncurrent5
$
104

$
108

$
103

1. 
Included in accounts and notes receivable - net in the interim Condensed Consolidated Balance Sheets.
2. 
Included in other current assets in the interim Condensed Consolidated Balance Sheets.
3. 
Included in other assets in the interim Condensed Consolidated Balance Sheets.
4. 
Included in accrued and other current liabilities in the interim Condensed Consolidated Balance Sheets.
5. 
Included in other noncurrent obligations in the interim Condensed Consolidated Balance Sheets.

Revenue recognized during the three months ended March 31, 2020 from amounts included in deferred revenue at the beginning of the period was $822 million ($677 million in the three months ended March 31, 2019).

Disaggregation of Revenue
Corteva's operations are classified into two reportable segments: Seed and Crop Protection. The company disaggregates its revenue by major product line and geographic region, as the company believes it best depicts the nature, amount and timing of its revenue and cash flows. Net sales by major product line are included below:

Three Months Ended
March 31,
(In millions)
2020
2019
    Corn
$
1,864

$
1,468

    Soybean
181

131

    Other oilseeds
248

225

    Other
162

143

Seed
2,455

1,967

    Herbicides
823

771

    Insecticides
378

377

    Fungicides
229

220

    Other
71

61

Crop Protection
1,501

1,429

Total
$
3,956

$
3,396



Sales are attributed to geographic regions based on customer location. Net sales by geographic region and segment are included below:
Seed
Three Months Ended
March 31,
(In millions)
2020
2019
North America1
$
1,290

$
913

EMEA2
881

804

Latin America
216

178

Asia Pacific
68

72

Total
$
2,455

$
1,967



Crop Protection
Three Months Ended
March 31,
(In millions)
2020
2019
North America1
$
475

$
479

EMEA2
586

560

Latin America
218

187

Asia Pacific
222

203

Total
$
1,501

$
1,429

1.
Represents U.S. & Canada.
2.
Europe, Middle East, and Africa ("EMEA").