Revenue (Notes)

9 Months Ended

Sep. 30, 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 September 30, 2020, the company had remaining performance obligations related to material rights granted to customers for contract renewal options of $114 million ($108 million at both December 31, 2019 and September 30, 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	September 30, 2020		December 31, 2019		September 30, 2019
(In millions)
Accounts and notes receivable - trade1	$	4,638	$	4,396	$	5,372
Contract assets - current2	$	21	$	20	$	20
Contract assets - noncurrent3	$	52	$	49	$	49
Deferred revenue - current4	$	402	$	2,584	$	441
Deferred revenue - noncurrent5	$	106	$	108	$	117

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 nine months ended September 30, 2020 from amounts included in deferred revenue at the beginning of the period was $2,195 million ($2,013 million in the nine months ended September 30, 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 September 30,				Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
Corn	$	303	$	372	$	4,224	$	4,149
Soybean	116		168		1,382		1,297
Other oilseeds	62		44		529		469
Other	42		97		381		432
Seed	523		681		6,516		6,347
Herbicides1	583		574		2,315		2,338
Insecticides1	395		330		1,218		1,158
Fungicides1	261		245		714		767
Other1	101		81		247		253
Crop Protection	1,340		1,230		4,494		4,516
Total	$	1,863	$	1,911	$	11,010	$	10,863

1.Prior periods have been reclassified to conform to current period presentation.

Sales are attributed to geographic regions based on customer location. Net sales by geographic region and segment are included below:

Seed	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
North America1	$	97	$	226	$	4,290	$	4,238
EMEA2	117		122		1,262		1,200
Latin America	246		271		668		636
Asia Pacific	63		62		296		273
Total	$	523	$	681	$	6,516	$	6,347

Crop Protection	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
North America1	$	390	$	397	$	1,528	$	1,562
EMEA2	198		183		1,163		1,136
Latin America	559		491		1,086		1,144
Asia Pacific	193		159		717		674
Total	$	1,340	$	1,230	$	4,494	$	4,516

1.Represents U.S. & Canada.

2.Europe, Middle East, and Africa ("EMEA").