Revenue (Notes)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Revenue Recognition

Products

Substantially all of Corteva's revenue is derived from product sales, which 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.

Revenue from product sales is recognized when the customer obtains control of the company's product, which occurs at a point in time according to shipping terms. Payment terms are generally less than one year from invoicing. The company elected the practical expedient and does not adjust the promised amount of consideration for the effects of a significant financing component when the company expects it will be one year or less between when a customer obtains control of the company's product and when payment is due. When the company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers prior to or at shipment), these are considered fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. In addition, the company elected the practical expedient to expense any costs to obtain contracts as incurred, as the amortization period for these costs would have been one year or less.

The transaction price includes estimates of variable consideration, such as rights of return, rebates, and discounts, that are reductions in revenue. All estimates are based on the company's historical experience, anticipated performance, and the company's best judgment at the time the estimate is made. Estimates of variable consideration included in the transaction price primarily utilize the expected value method based on historical experience. These estimates are reassessed each reporting period and are included in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur upon resolution of uncertainty associated with the variable consideration. The majority of contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as quantity times price per unit. For contracts with multiple performance obligations, the company allocates the transaction price to each performance obligation based on the relative standalone selling price. The standalone selling price is the observable price which depicts the price as if sold to a similar customer in similar circumstances.

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. The company applies the practical expedient to disclose the transaction price allocated to the remaining performance obligations for only those contracts with an original duration of more than one year. The transaction price allocated to remaining performance obligations with an original duration of more than one year related to material rights granted to customers for contract renewal options were $134 million and $131 million at December 31, 2023 and December 31, 2022, respectively. The company expects revenue to be recognized for the remaining performance obligations evenly over the period of one year to six 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 conditional rights to consideration for completed performance not yet invoiced. Accounts receivable are recorded when the right to consideration becomes unconditional.

Contract Balances	December 31, 2023		December 31, 2022
(In millions)
Accounts and notes receivable - trade1	$	4,329	$	4,261
Contract assets - current2	27		26
Contract assets - noncurrent3	67		64
Deferred revenue - current	3,406		3,388
Deferred revenue - noncurrent4	108		107

1.Included in accounts and notes receivable - net in the Consolidated Balance Sheets.

2.Included in other current assets in the Consolidated Balance Sheets.

3.Included in other assets in the Consolidated Balance Sheets.

4.Included in other noncurrent obligations in the Consolidated Balance Sheets.

Revenue recognized during the year ended December 31, 2023, 2022, and 2021 from amounts included in deferred revenue at the beginning of the period was $3,342 million, $3,150 million, and $2,613 million, respectively.

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:

	For the Year Ended December 31,
(In millions)	2023		2022		2021
Corn	$	6,447	$	5,955	$	5,618
Soybean	1,858		1,810		1,568
Other oilseeds	708		714		752
Other	459		500		464
Seed	9,472		8,979		8,402
Herbicides	4,034		4,591		3,815
Insecticides	1,598		1,831		1,730
Fungicides	1,112		1,450		1,310
Other	1,010		604		398
Crop Protection	7,754		8,476		7,253
Total	$	17,226	$	17,455	$	15,655

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

Seed	For the Year Ended December 31,
(In millions)	2023		2022		2021
North America1	$	5,768	$	5,178	$	5,004
EMEA2	1,622		1,609		1,599
Latin America	1,637		1,758		1,420
Asia Pacific	445		434		379
Total	$	9,472	$	8,979	$	8,402

Crop Protection	For the Year Ended December 31,
(In millions)	2023		2022		2021
North America1	$	2,822	$	3,116	$	2,532
EMEA2	1,745		1,647		1,524
Latin America	2,269		2,687		2,125
Asia Pacific	918		1,026		1,072
Total	$	7,754	$	8,476	$	7,253

1.Represents U.S. & Canada.

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

Refer to Note 22 - Geographic Information for the breakout of consolidated net sales by geographic area.