EID Segment FN (Notes)

6 Months Ended

Jun. 30, 2023

Segment Reporting Information [Line Items]

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 (loss) (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating benefits (costs), foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. 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 EIDP 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. Net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting represents the non-cash net gain (loss) from changes in fair value of certain undesignated foreign currency derivative contracts. Upon settlement, which is within the same calendar year of execution of the contract, the realized gain (loss) from the changes in fair value of the non-qualified foreign currency derivative contracts will be reported in the respective segment results to reflect the economic effects of the foreign currency derivative contracts without the resulting unrealized mark to fair value volatility.

As of and for the Three Months Ended June 30, (In millions)	Seed		Crop Protection		Total
2023
Net sales	$	4,264	$	1,781	$	6,045
Segment operating EBITDA	$	1,458	$	320	$	1,778
Segment assets1	$	22,952	$	16,342	$	39,294
2022
Net sales	$	3,947	$	2,305	$	6,252
Segment operating EBITDA	$	1,240	$	509	$	1,749
Segment assets1	$	22,757	$	13,532	$	36,289

1.    Segment assets at December 31, 2022 were $22,952 million and $14,097 million for Seed and Crop Protection, respectively.

For the Six Months Ended June 30, (In millions)	Seed		Crop Protection		Total
2023
Net sales	$	6,959	$	3,970	$	10,929
Segment operating EBITDA	$	2,110	$	923	$	3,033
2022
Net sales	$	6,471	$	4,382	$	10,853
Segment operating EBITDA	$	1,809	$	1,000	$	2,809

Reconciliation to interim Consolidated Financial Statements

Income (loss) from continuing operations after income taxes to segment operating EBITDA (In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Income (loss) from continuing operations after income taxes	$	880	$	1,002	$	1,487	$	1,579
Provision for (benefit from) income taxes on continuing operations	204		325		373		446
Income (loss) from continuing operations before income taxes	1,084		1,327		1,860		2,025
Depreciation and amortization	306		302		593		609
Interest income	(54)		(24)		(94)		(39)
Interest expense	82		16		113		25
Exchange (gains) losses	104		36		140		83
Non-operating (benefits) costs	44		(60)		87		(125)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges	63		(33)		78		3
Significant items (benefit) charge	117		155		200		177
Corporate expenses	32		30		56		51
Segment operating EBITDA	$	1,778	$	1,749	$	3,033	$	2,809

Segment assets to total assets (in millions)	June 30, 2023		December 31, 2022		June 30, 2022
Total segment assets	$	39,294	$	37,049	$	36,289
Corporate assets	4,895		5,569		4,617
Total assets	$	44,189	$	42,618	$	40,906

Significant Pre-tax (Charges) Benefits Not Included in Segment Operating EBITDA

The three and six months ended June 30, 2023 and 2022, respectively, included the following significant pre-tax (charges) benefits which are excluded from segment operating EBITDA:

(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended June 30, 2023
Restructuring and asset related charges - net1	$	(54)	$	(5)	$	(1)	$	(60)
Estimated settlement expense2	—		(41)		—		(41)
Inventory write-offs3	(3)		—		—		(3)
Seed sale associated with Russia Exit3,4	(1)		—		—		(1)
Acquisition-related costs5	—		(15)		—		(15)
Employee Retention Credit	—		3		—		3
Total	$	(58)	$	(58)	$	(1)	$	(117)

(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended June 30, 2022
Restructuring and asset related charges - net1	$	(126)	$	(2)	$	(15)	$	(143)
Inventory write-offs3	(1)		—		—		(1)
Loss on sale of equity investment3	(5)		—		—		(5)
Settlement costs associated with Russia Exit3	(6)		—		—		(6)
Total	$	(138)	$	(2)	$	(15)	$	(155)

(in millions)	Seed		Crop Protection		Corporate		Total
For the Six Months Ended June 30, 2023
Restructuring and asset related charges - net1	$	(75)	$	(11)	$	(7)	$	(93)
Estimated settlement expense2	—		(90)		—		(90)
Inventory write-offs3	(7)		—		—		(7)
Gain (loss) on sale of assets and equity investments3	—		3		—		3
Seed sale associated with Russia Exit3,4	18		—		—		18
Acquisition-related costs5	—		(34)		—		(34)
Employee Retention Credit	—		3		—		3
Total	$	(64)	$	(129)	$	(7)	$	(200)

(in millions)	Seed		Crop Protection		Corporate		Total
For the Six Months Ended June 30, 2022
Restructuring and asset related charges - net1	$	(131)	$	—	$	(17)	$	(148)
Estimated settlement expense2	—		(17)		—		(17)
Inventory write-offs3	(1)		—		—		(1)
Loss on sale of equity investment3	(5)		—		—		(5)
Settlement costs associated with Russia Exit3	(6)		—		—		(6)
Total	$	(143)	$	(17)	$	(17)	$	(177)

1.Includes restructuring plans and asset related charges as well as accelerated prepaid amortization expense. See Note 5 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements for additional information.

2.Consists of estimated Lorsban® related charges.

3.Incremental gains (losses) associated with activities related to the 2022 Restructuring Actions.

4.Includes a benefit (charge) of $(1) million and $18 million for the three and six months ended June 30, 2023, 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. It consists of $30 million and $71 million of net sales and $31 million and $53 million of cost of goods sold for the three and six months ended June 30, 2023, respectively.

5.Relates to acquisition-related costs, including transaction and third-party integration costs associated with the completed acquisitions of Stoller and Symborg as well as the recognition of the inventory fair value step-up. See Note 3 - Business Combinations, to the interim Consolidated Financial Statements, for additional information.

EID [Member]

Segment Reporting Information [Line Items]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

There are no differences in reporting structure or segments between Corteva, Inc. and EIDP. In addition, there are no differences between Corteva, Inc. and EIDP segment net sales, segment operating EBITDA, segment assets, or significant items by segment; refer to page 39 of the Corteva, Inc. interim Consolidated Financial Statements for background information on the segments as well as further details regarding segment metrics. The tables below reconcile income (loss) from continuing operations after income taxes to segment operating EBITDA, as differences exist between Corteva, Inc. and EIDP.

Reconciliation to interim Consolidated Financial Statements

Income (loss) from continuing operations after income taxes to segment operating EBITDA (In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Income (loss) from continuing operations after income taxes	$	875	$	995	$	1,472	$	1,565
Provision for (benefit from) income taxes on continuing operations	202		322		368		441
Income (loss) from continuing operations before income taxes	1,077		1,317		1,840		2,006
Depreciation and amortization	306		302		593		609
Interest income	(54)		(24)		(94)		(39)
Interest expense	89		26		133		44
Exchange (gains) losses	104		36		140		83
Non-operating (benefits) costs	44		(60)		87		(125)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges	63		(33)		78		3
Significant items (benefit) charge	117		155		200		177
Corporate expenses	32		30		56		51
Segment operating EBITDA	$	1,778	$	1,749	$	3,033	$	2,809