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Restructuring and Asset Related Charges
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block] RESTRUCTURING AND ASSET RELATED CHARGES - NET
Crop Protection Operations Strategy Restructuring Program
On November 5, 2023, management of the company approved a plan to further optimize its Crop Protection network of manufacturing and external partners (the "Crop Protection Operations Strategy Program"). The plan includes the exit of the company’s production activities at its site in Pittsburg, California, as well as ceasing operations in select manufacturing lines at other locations.

The company expects to record aggregate pre-tax restructuring and asset related charges of $410 million to $460 million, comprised of $70 million to $90 million of severance and related benefit costs, $320 million to $340 million of asset-related and impairment charges and $20 million to $30 million of costs related to contract terminations. Reductions in workforce are subject to local regulatory requirements. Asset-related charges include non-cash impairments charges of $152 million, which were recognized during the year ended December 31, 2023 and consisted of $92 million and $60 million relating to operating lease assets and property, plant and equipment, respectively, associated with the exit of the company’s production activities at its site in Pittsburg, California.

Future cash payments related to these charges are anticipated to be $90 million to $120 million, which primarily relate to the payment of severance and related benefits and contract terminations. During the year ended December 31, 2023, the company paid $3 million associated with these charges. The restructuring actions associated with these charges are expected to be substantially complete in 2024.

The charges of $217 million related to the Crop Protection Operations Strategy Program for the year ended December 31, 2023 impacted the crop protection segment. This amount excludes charges relating to spare parts write-offs, which also impacted the crop protection segment, included in cost of goods sold, in the company’s Consolidated Statement of Operations. See Note 23 – Segment Information, to the Consolidated Financial Statements, for additional information.

The following table is a summary of charges incurred related to the Crop Protection Strategy Operations Program for the year ended December 31, 2023:
(In millions)For the Year Ended December 31, 2023
Asset related charges1
$214 
Contract termination charges3 
Total restructuring and asset related charges - net2
$217 
1.Asset-related charges includes impairment charges related to operating lease assets and property, plant and equipment, as noted above.
2.This amount excludes charges relating to spare parts write-offs included in cost of goods sold, in the company’s Consolidated Statement of Operations, as noted above.

A reconciliation of the December 31, 2022 to the December 31, 2023 liability balances related to the Crop Protection Operations Strategy Program is summarized below:
(In millions)
Asset Related1
Contract TerminationTotal
Balance at December 31, 2022$— $— $— 
Charges to income from continuing operations214 3 217 
Payments— (3)(3)
Asset write-offs(214)— (214)
Balance at December 31, 2023$— $— $— 
1.Asset-related charges includes impairment charges related to operating lease assets and property, plant and equipment, as noted above.
2022 Restructuring Actions
In connection with the company’s shift to a global business unit model during 2022, the company assessed its business priorities and operational structure to maximize the customer experience and deliver on growth and earnings potential. As a result of this assessment, the company committed to restructuring actions during the second quarter of 2022, which included the company’s separate announcement to withdraw from Russia (“Russia Exit”) (collectively the “2022 Restructuring Actions”). Through the year ended December 31, 2023, the company recorded net pre-tax restructuring and other charges of $373 million inception-to-date under the 2022 Restructuring Actions, consisting of $131 million of severance and related benefit costs, $116 million of asset related charges, $67 million of costs related to contract terminations (including early lease terminations) and $59 million of other charges. The company does not anticipate any additional material charges from the 2022 Restructuring Actions as actions associated with this charge are substantially complete.

Cash payments related to these charges are anticipated to be up to $210 million, of which approximately $150 million has been paid through December 31, 2023, and primarily relate to the payment of severance and related benefits, contract terminations and other charges. The restructuring actions associated with these charges are substantially complete.

The total net pre-tax restructuring and other charges recognized through the year ended December 31, 2023 included $53 million associated with the Russia Exit. The Russia Exit net pre-tax restructuring charges consisted of $6 million of severance and related benefit costs, $6 million of asset related charges, and $30 million of costs related to contract terminations (including early lease terminations). Other pre-tax charges associated with the Russia Exit were recorded to cost of goods sold and other income (expense) – net in the Consolidated Statement of Operations, relating to inventory write-offs of $3 million and settlement costs of $8 million, respectively.

The charges related to the 2022 Restructuring Actions related to the segments, as well as corporate expenses, for the years ended December 31, 2023 and 2022 were as follows:
For the Year Ended December 31,
(In millions)20232022
Seed$17 $120 
Crop Protection5 41 
Corporate expenses20 111 
Total1
$42 $272 
1.This amount excludes other pre-tax charges recorded during the years ended December 31, 2023 and 2022 impacting the Seed segment. These charges consisted of inventory write-offs and gains (losses) on sale of businesses, assets and equity investments and settlement costs associated with the Russia Exit, which are included in cost of goods sold and other income (expense) - net, in the company's Consolidated Statement of Operations, respectively. See Note 23 - Segment Information, to the Consolidated Financial Statements, for additional information.

The following table is a summary of charges incurred related to the 2022 Restructuring Actions for the years ended December 31, 2023 and 2022:
For the Year Ended December 31,
(In millions)20232022
Severance and related benefit costs$20 $111 
Asset related charges12104
Contract termination charges1
1057
Total restructuring and asset related charges - net2
$42 $272 
1.Contract terminations includes early lease terminations.
2.This amount excludes other pre-tax charges recorded during the year ended December 31, 2023 and 2022 included in cost of goods sold and other income (expense) – net, in the company’s Consolidated Statement of Operations, as noted above.
A reconciliation of the December 31, 2022 to the December 31, 2023 liability balances related to the 2022 Restructuring Actions is summarized below:
(In millions)Severance and Related Benefit CostsAsset Related
Contract Termination1
Total
Balance at December 31, 2022$71 $— $12 $83 
Charges to income from continuing operations20 12 10 42 
Payments(43)— (13)(56)
Asset write-offs— (11)— (11)
Balance at December 31, 2023$48 $1 $9 $58 
1.The liability for contract terminations includes lease obligations. The cash impact of these obligations are substantially complete.

2021 Restructuring Actions
During the first quarter of 2021, Corteva approved restructuring actions designed to right-size and optimize its footprint and organizational structure according to the business needs in each region with the focus on driving continued cost improvement and productivity. Through the year ended December 31, 2023, the company recorded net pre-tax restructuring charges of $167 million inception-to-date under the 2021 Restructuring Actions, consisting of $70 million of severance and related benefit costs, $45 million of asset related charges, $12 million of asset retirement obligations and $40 million of costs related to contract terminations (including early lease terminations). The company does not anticipate any additional material charges from the 2021 Restructuring Actions as actions associated with this charge were substantially complete by the end of 2021.

The charges related to the 2021 Restructuring Actions related to the segments, as well as corporate expenses, for the years ended December 31, 2023, 2022 and 2021 were as follows:
For the Year Ended December 31,
(In millions)202320222021
Seed$— $(1)$31 
Crop Protection6 (1)55 
Corporate expenses1 (5)81 
Total$7 $(7)$167 
The following table is a summary of charges incurred related to the 2021 Restructuring Actions for the years ended December 31, 2023, 2022 and 2021:
For the Year Ended December 31,
(In millions)202320222021
Severance and related benefit costs$1 $(5)$74 
Asset related charges6 — 51 
Contract termination charges— (2)42 
Total restructuring and asset related charges - net$7 $(7)$167 

Other Asset Related Charges
For the years ended December 31, 2023, 2022, and 2021 the company recognized $72 million, $109 million, and $125 million respectively, in restructuring and asset related charges - net in the Consolidated Statements of Operations, from non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.