Segment Reporting (Notes)

3 Months Ended

Mar. 31, 2024

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 (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 March 31, (In millions)	Seed		Crop Protection		Total
2024
Net sales	$	2,751	$	1,741	$	4,492
Segment operating EBITDA	748		310		1,058
Segment assets1	23,532		16,077		39,609
2023
Net sales	2,695		2,189		4,884
Segment operating EBITDA	652		603		1,255
Segment assets1	23,966		17,584		41,550

1.    Segment assets at December 31, 2023 were $22,732 million and $15,004 million for Seed and Crop Protection, respectively.

Reconciliation to interim Consolidated Financial Statements

Income (loss) from continuing operations after income taxes to segment operating EBITDA (In millions)	Three Months Ended March 31,
	2024		2023
Income (loss) from continuing operations after income taxes	$	376	$	607
Provision for (benefit from) income taxes on continuing operations	106		169
Income (loss) from continuing operations before income taxes	482		776
Depreciation and amortization	307		287
Interest income	(35)		(40)
Interest expense	41		31
Exchange (gains) losses	59		36
Non-operating (benefits) costs	52		43
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges	1		15
Significant items (benefit) charge	127		83
Corporate expenses	24		24
Segment operating EBITDA	$	1,058	$	1,255

Segment assets to total assets (In millions)	March 31, 2024		December 31, 2023		March 31, 2023
Total segment assets	$	39,609	$	37,736	$	41,550
Corporate assets	4,016		5,260		3,950
Total assets	$	43,625	$	42,996	$	45,500

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

The three months ended March 31, 2024 and 2023, 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 March 31, 2024
Restructuring and asset related charges - net1	$	(20)	$	(41)	$	(14)	$	(75)
Estimated settlement expense2	—		(54)		—		(54)
Gain (loss) on sale of assets3	4		—		—		4
Acquisition-related costs5	—		(2)		—		(2)
Total	$	(16)	$	(97)	$	(14)	$	(127)

(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended March 31, 2023
Restructuring and asset related charges - net1	$	(21)	$	(6)	$	(6)	$	(33)
Estimated settlement expense2	—		(49)		—		(49)
Inventory write-offs3	(4)		—		—		(4)
Gain (loss) on sale of assets and equity investments3	—		3		—		3
Seed sale associated with Russia Exit3,4	19		—		—		19
Acquisition-related costs5	—		(19)		—		(19)
Total	$	(6)	$	(71)	$	(6)	$	(83)

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 $19 million for the three months ended March 31, 2023, 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 $41 million of net sales and $22 million of cost of goods sold for the three months ended March 31, 2023.

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.