XML 56 R34.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Reporting (Notes)
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] SEGMENT INFORMATION
Corteva’s reportable segments reflects the manner in which its chief operating decision maker ("CODM") allocates resources and assesses performance, which is at the operating segment level (seed and crop protection). For purposes of allocating resources to the segments and assessing segment performance, segment operating EBITDA is the primary measure used by Corteva’s CODM. The company defines segment operating EBITDA as earnings (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating (benefits) costs - net and foreign exchange gains (losses), net, excluding the impact of significant items. Non-operating (benefits) costs - net consists of non-operating pension and other post-employment benefit (OPEB) costs, tax indemnification adjustments and environmental remediation and legal costs associated with legacy EID businesses and sites. 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. For the years ended December 31, 2019 and 2018, segment operating EBITDA is calculated on a pro forma basis, as this is the manner in which the CODM assesses performance and allocates resources or expense.

Pro forma adjustments used in the calculation of pro forma segment operating EBITDA for the years ended December 31, 2019 and 2018 were determined in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments. These adjustments give effect to the Merger, the debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (as discussed in Note 17 - Long-Term Debt and Available Credit Facilities, to the Consolidated Financial Statements), and the separation and distribution to DowDuPont stockholders of all the outstanding shares of Corteva common stock as if they had been consummated on January 1, 2016.

Corporate Profile
The company conducts its global operations through the following reportable segments:

Seed
The company’s seed segment is a global leader in developing and supplying advanced germplasm and traits that produce optimum yield for farms around the world. The segment is a leader in many of the company’s key seed markets, including North America corn and soybeans, Europe corn and sunflower, as well as Brazil, India, South Africa and Argentina corn. The segment offers trait technologies that improve resistance to weather, disease, insects and herbicides used to control weeds, and trait technologies that enhance food and nutritional characteristics. In addition, the segment provides digital solutions that assist farmer decision-making with a view to optimize product selection and, ultimately, help maximize yield and profitability.

Crop Protection
The crop protection segment serves the global agricultural input industry with products that protect against weeds, insects and other pests, and disease, and that improve overall crop health both above and below ground via nitrogen management and seed-applied technologies. The segment is a leader in global herbicides, insecticides, nitrogen stabilizers and pasture and range management herbicides.

(In millions)
SeedCrop ProtectionTotal
As of and for the Year Ended December 31, 2020   
Net sales$7,756 $6,461 $14,217 
Segment operating EBITDA$1,208 $1,004 $2,212 
Depreciation and amortization$798 $379 $1,177 
Segment assets$23,751 $13,099 $36,850 
Investments in nonconsolidated affiliates$22 $44 $66 
Purchases of property, plant and equipment$225 $250 $475 
As of and for the Year Ended December 31, 2019   
Net sales$7,590 $6,256 $13,846 
Pro forma segment operating EBITDA$1,040 $1,066 $2,106 
Depreciation and amortization$628 $372 $1,000 
Segment assets1
$25,387 $13,492 $38,879 
Investments in nonconsolidated affiliates$27 $39 $66 
Purchases of property, plant and equipment$373 $293 $666 
As of and for the Year Ended December 31, 2018
Net sales$7,842 $6,445 $14,287 
Pro forma segment operating EBITDA$1,139 $1,074 $2,213 
Depreciation and amortization$534 $375 $909 
Segment assets$29,286 $9,346 $38,632 
Investments in nonconsolidated affiliates$102 $36 $138 
Purchase of property, plant and equipment$263 $250 $513 
1.On June 1, 2019, as a result of changes in reportable segments, $3,382 million of goodwill was reallocated from the seed reportable segment to the crop protection reportable segment. This change was not reflected in segment assets prior to June 1, 2019.

Reconciliation to Consolidated Financial Statements
Income (loss) from continuing operations after income taxes to segment operating EBITDA
For the Year Ended December 31,
(In millions)202020192018
Income (loss) from continuing operations after income taxes$756 $(270)$(6,775)
Benefit from income taxes on continuing operations(81)(46)(31)
Income (loss) from continuing operations before income taxes675 (316)(6,806)
Depreciation and amortization1,177 1,000 909 
Interest income(56)(59)(86)
Interest expense45 136 337 
Exchange losses - net 1
174 66 77 
Non-operating benefits - net(316)(129)(211)
Goodwill impairment charge— — 4,503 
Significant items388 991 1,346 
Pro forma adjustments298 2,003 
Corporate expenses125 119 141 
Segment operating EBITDA2
$2,212 $2,106 $2,213 
1.Excludes a $(33) million foreign exchange loss for the year ended December 31, 2019 associated with the devaluation of the Argentine peso and a $(50) million foreign exchange loss for the year ended December 31, 2018 related to adjustments to foreign currency exchange contracts as a result of U.S. tax reform, as they are included within significant items. See Note 9 - Supplementary Information, to the Consolidated Financial Statements, for additional information.
2.The years ended December 31, 2019 and December 31, 2018 are presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments.
Segment assets to total assets (in millions)
December 31, 2020December 31, 2019December 31, 2018
Total segment assets$36,850 $38,879 $38,632 
Corporate assets5,799 3,518 4,417 
Assets related to discontinued operations1
— — 65,634 
Total assets$42,649 $42,397 $108,683 
1.See Note 5 - Divestitures and Other Transactions, to the Consolidated Financial Statements, for additional information on discontinued operations.

Other Items (in millions)
Segment Totals
Adjustments 1
Consolidated Totals
As of and For the Year Ended December 31, 2019
Depreciation and amortization$1,000 $599 $1,599 
Purchase of property, plant and equipment$666 $497 $1,163 
As of and For the Year Ended December 31, 2018
Depreciation and amortization$909 $1,881 $2,790 
Purchase of property, plant and equipment$513 $988 $1,501 
1.See Note 5 - Divestitures and Other Transactions, to the Consolidated Financial Statements, for additional information.
Significant Pre-tax (Charges) Benefits Not Included in Segment Operating EBITDA
The years ended December 31, 2020, 2019 and 2018, respectively, included the following significant pre-tax (charges) benefits which are excluded from segment operating EBITDA:
(In millions)SeedCrop ProtectionCorporateTotal
For the Year Ended December 31, 2020
Restructuring and Asset Related Charges - Net 1
$(165)$(109)$(61)$(335)
Loss on Divestiture 2
— (53)— (53)
Total$(165)$(162)$(61)$(388)
(In millions)SeedCrop ProtectionCorporateTotal
For the Year Ended December 31, 20193
Restructuring and Asset Related Charges - Net 1
$(213)$(23)$14 $(222)
Integration and Separation Costs 4
— — (632)(632)
Loss on Divestiture 5
(24)— — (24)
Amortization of Inventory Step Up 6
(67)— — (67)
Loss on Early Extinguishment of Debt 7
— — (13)(13)
Argentina Currency Devaluation 8
— — (33)(33)
Total$(304)$(23)$(664)$(991)
(In millions)SeedCrop ProtectionCorporateTotal
For the Year Ended December 31, 20183
Restructuring and Asset Related Charges - Net 1
$(368)$(58)$(268)$(694)
Integration Costs 4
— — (571)(571)
Gain on Sale 9
24 — — 24 
Loss on Deconsolidation of Subsidiary 10
(53)— — (53)
Loss on Divestiture 11
(2)— — (2)
Income Tax Items 12
— — (50)(50)
Total$(399)$(58)$(889)$(1,346)
1.Includes Board approved restructuring plans and asset related charges as well as accelerated prepaid amortization. See Note 7 - Restructuring and Asset Related Charges - Net, to the Consolidated Financial Statements, for additional information.
2.Includes a loss recorded in other income - net related to the expected sale of the La Porte site.
3.The years ended December 31, 2019 and December 31, 2018 are presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments.
4.Integration and separation costs include costs incurred to prepare for and close the Merger, post-Merger integration expenses, and costs incurred to prepare for the Internal Reorganizations. Beginning in the second quarter of 2019, this includes both integration and separation costs.
5.Includes a loss recorded in other income - net related to DAS's sale of a joint venture related to synergy actions.
6.Includes a charge related to the amortization of the inventory that was stepped up to fair value in connection with the Merger.
7.Includes a loss on early extinguishment of debt related to the difference between the redemption price and the par value of the Make Whole Notes and Term Loan Facility, partially offset by the write-off of unamortized step-up related to the fair value step-up of EID's debt.
8.Includes a charge included in other income (expense) - net associated with remeasuring the company’s Argentine Peso net monetary assets, resulting from an unexpected August primary election result in Argentina.  Throughout the three months ended September 30, 2019, the Argentine Peso dropped approximately a third of its value against the US dollar and in September of 2019, the country’s central bank announced new restrictions on foreign currency transactions.
9.Includes a gain recorded in other income (expense) - net related to an asset sale.
10.Includes a loss recorded in other income (expense) - net related to the deconsolidation of a subsidiary.
11.Includes a loss recorded in other income (expense) - net related to an asset sale.
12.Includes a foreign exchange loss recorded in other income (expense) - net related to adjustments to foreign currency exchange contracts as a result of U.S. tax reform.