EID Income Taxes (Notes)

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate for the three and nine months ended September 30, 2023 was 29.1 percent and 17.2 percent, respectively, and 18.7 percent and 22.8 percent for the three and nine months ended September 30, 2022, respectively.

During the three and nine months ended September 30, 2023, the company recognized $11 million and $79 million of net tax benefits for income taxes on continuing operations associated with changes in deferred taxes, accruals for certain prior year tax positions in various jurisdictions, stock-based compensation, as well as the impact of changes to deferred taxes associated with a tax currency change for a legal entity.

During the three and nine months ended September 30, 2022, the company recognized $46 million and $94 million of net tax benefits to provision for income taxes on continuing operations associated with changes in deferred taxes, accruals for certain prior year tax positions in various jurisdictions, stock-based compensation, and a tax benefit of $55 million related to the impact of a change in a U.S. legal entity's tax characterization, resulting in the establishment of deferred taxes.

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 the program, which resides in the U.S., 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, which can drive material impacts on the company's effective tax rate. For further discussion of pre-tax and after-tax impacts of the company's foreign currency hedging program and net monetary asset programs, refer to Note 6 - Supplementary Information.

EID [Member]

Income Tax Disclosure [Text Block]

INCOME TAXES

Refer to page 17 of the Corteva, Inc. Interim Consolidated Financial Statements for discussion of tax items that do not differ between Corteva, Inc. and EIDP.

The effective tax rate for the three and nine months ended September 30, 2023 was 28.9 percent and 17.1 percent, respectively, and 18.8 percent and 22.8 percent for the three and nine months ended September 30, 2022, respectively.

EIDP's effective tax rates for the three and nine months ended September 30, 2023 and 2022 were driven by net tax benefits recognized for income taxes on continuing operations associated with the interest expense incurred on the related party loan between EIDP and Corteva, Inc. and the net tax benefits discussed on page 17 of the Corteva, Inc. Interim Consolidated Financial Statements.