(Mark One) | ||||||||
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
OR | ||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 82-4979096 | ||||||||||||||||||||||
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||
9330 Zionsville Road, | Indianapolis, | Indiana | 46268 | (833) | 267-8382 | ||||||||||||||||||
(Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) |
Delaware | 82-4979096 | ||||||
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||
974 Centre Road, | Wilmington, | Delaware | 19805 | (302) | 485-3000 | ||
(Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) |
Delaware | 51-0014090 | ||||||||||||||||||||||
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||
9330 Zionsville Road, | Indianapolis, | Indiana | 46268 | (833) | 267-8382 | ||||||||||||||||||
(Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) |
Delaware | 51-0014090 | ||||||
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||
974 Centre Road, | Wilmington, | Delaware | 19805 | (302) | 485-3000 | ||
(Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | CTVA | New York Stock Exchange |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
$3.50 Series Preferred Stock | CTAPrA | New York Stock Exchange | ||||||
$4.50 Series Preferred Stock | CTAPrB | New York Stock Exchange |
Corteva, Inc. | Large Accelerated Filer | x | Accelerated Filer o | Non-Accelerated Filer | o | Smaller reporting company o | Emerging growth company o | ||||||||||||||||
E. I. du Pont de Nemours and Company | Large Accelerated Filer | o | Accelerated Filer o | Non-Accelerated Filer | x | Smaller reporting company o | Emerging growth company o |
Seed Solutions Brands | Pioneer®; | ||||
Seed Solutions Traits and Technologies | ENLIST | ||||
Other | LumiGEN® |
Insect and Nematode Management | CLOSER™; DELEGATE™; INTREPID®; ISOCLAST™; | ||||
Disease Management | APROACH PRIMA® | ||||
Weed Control | ARIGO®; | ||||
Nitrogen Management | INSTINCT™; |
Approximate U.S. | Approximate Other Countries | |||||||
Within 5 years | 700 | 1,300 | ||||||
6 to 10 years | 1,700 | 4,300 | ||||||
11 to 16 years | 2,100 | 5,100 | ||||||
16 to 20 years | 1,100 | 400 | ||||||
Total | 5,600 | 11,100 |
Approximate U.S. | Approximate Other Countries | |
Within 5 years | 600 | 800 |
6 to 10 years | 1,100 | 2,800 |
11 to 16 years | 2,200 | 5,100 |
16 to 20 years | 1,300 | 500 |
Total | 5,200 | 9,200 |
Number of Sites | |||||||||||
Crop | Seed | Total | |||||||||
North America1 | 6 | 42 | 48 | ||||||||
EMEA2 | 4 | 15 | 19 | ||||||||
Latin America | 7 | 10 | 17 | ||||||||
Asia Pacific | 4 | 4 | 8 | ||||||||
Total | 21 | 71 | 92 |
Number of Sites | ||||||
Crop | Seed | Total | ||||
North America1 | 7 | 43 | 50 | |||
EMEA2 | 5 | 16 | 21 | |||
Asia Pacific | 7 | 5 | 12 | |||
Latin America | 10 | 11 | 21 | |||
Total | 29 | 75 | 104 |
1. North America consists of U.S. & Canada. 2. Europe, Middle East, and Africa ("EMEA"). |
2021 | 2020 | |||||||
Fourth Quarter | $ | 0.14 | $ | 0.13 | ||||
Third Quarter | $ | 0.14 | $ | 0.13 | ||||
Second Quarter | $ | 0.13 | $ | 0.13 | ||||
First Quarter | $ | 0.13 | $ | 0.13 | ||||
Total | $ | 0.54 | $ | 0.52 |
Month | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of the Company's Publicly Announced Share Buyback Program1 | Approximate Value of Shares that May Yet Be Purchased Under the Program1 (Dollars in millions) | ||||||||||
October 2021 | 1,461,297 | $ | 42.91 | 1,461,297 | $ | 1,387 | ||||||||
November 2021 | 1,484,410 | 46.68 | 1,484,410 | 1,318 | ||||||||||
December 2021 | 1,458,668 | 46.62 | 1,458,668 | 1,250 | ||||||||||
Fourth quarter 2021 | 4,404,375 | $ | 45.41 | 4,404,375 | $ | 1,250 |
June 3, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | 6/3/2019 | 12/31/2019 | 12/31/2020 | 12/31/2021 | |||||||||||||||||||
Corteva | $ | 100 | $ | 119 | $ | 113 | $ | 120 | Corteva | $ | 100 | $ | 120 | $ | 161 | $ | 198 | |||||||||
S&P 500 Index | 100 | 107 | 109 | 119 | S&P 500 Index | 100 | 119 | 141 | 181 | |||||||||||||||||
S&P 500 Chemicals Index | 100 | 107 | 107 | 112 | S&P 500 Chemicals Index | 100 | 112 | 129 | 160 |
Successor | Predecessor | |||||||||||||||||
(Dollars in millions, except per share) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | For the Year Ended December 31, 2016 | For the Year Ended December 31, 2015 | ||||||||||||
Summary of operations1 | ||||||||||||||||||
Net sales | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 | $ | 8,133 | $ | 8,326 | ||||||
Loss from continuing operations before income taxes | $ | (316 | ) | $ | (6,806 | ) | $ | (461 | ) | $ | (37 | ) | $ | (527 | ) | $ | (647 | ) |
Net (loss) income attributable to Corteva | $ | (959 | ) | $ | (5,065 | ) | $ | 1,182 | $ | 1,734 | $ | 2,513 | $ | 1,953 | ||||
Basic (loss) earnings per share of common stock from continuing operations | $ | (0.38 | ) | $ | (9.08 | ) | $ | 2.34 | $ | 0.40 | $ | (0.29 | ) | $ | (0.56 | ) | ||
Diluted (loss) earnings per share of common stock from continuing operations | $ | (0.38 | ) | $ | (9.08 | ) | $ | 2.34 | $ | 0.40 | $ | (0.29 | ) | $ | (0.56 | ) | ||
Financial position at year-end | ||||||||||||||||||
Working capital2 | $ | 5,281 | $ | 3,740 | $ | 4,468 | $ | 2,916 | $ | 2,827 | ||||||||
Total assets3,4 | $ | 42,397 | $ | 108,683 | $ | 120,366 | $ | 40,041 | $ | 41,224 | ||||||||
Borrowings and finance lease obligations | ||||||||||||||||||
Short-term borrowings and finance lease obligations | $ | 7 | $ | 2,154 | $ | 2,752 | $ | 425 | $ | 1,156 | ||||||||
Long-term debt | $ | 115 | $ | 5,784 | $ | 10,299 | $ | 8,059 | $ | 7,587 | ||||||||
Total equity | $ | 24,555 | $ | 75,153 | $ | 79,593 | $ | 10,196 | $ | 10,200 | ||||||||
General | ||||||||||||||||||
Dividends per common share | $ | 0.26 | $ | 1.14 | $ | 1.52 | $ | 1.72 |
• | •Drive actions to expand margins through pricing for high value technology and new products and operational excellence, which includes integrating its operations and continuing to drive operating efficiencies and creating a strong culture based on accountability. •Generate cash flow growth reflecting operating discipline of working capital, including net working capital turns appropriate across the cycle. •Deploy capital in a balanced and disciplined way investing in high return organic and inorganic growth opportunities as well as providing attractive returns to shareholders via dividends and share repurchases. |
(in millions) | Amount | ||
4.625% Notes due 2020 | $ | 474 | |
3.625% Notes due 2021 | 296 | ||
4.250% Notes due 2021 | 163 | ||
2.800% Notes due 2023 | 381 | ||
6.500% Debentures due 2028 | 57 | ||
5.600% Senior Notes due 2036 | 42 | ||
4.900% Notes due 2041 | 48 | ||
4.150% Notes due 2043 | 69 | ||
Total | $ | 1,530 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Net Sales | $ | 15,655 | $ | 14,217 | $ | 13,846 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net Sales | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 |
For the Year Ended December 31, | ||||||||||||||||||||
(In millions) | 2021 | 2020 | 2019 | |||||||||||||||||
Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||||||||
Worldwide | $ | 15,655 | 100 | % | $ | 14,217 | 100 | % | $ | 13,846 | 100 | % | ||||||||
North America | 7,536 | 48 | % | 7,168 | 50 | % | 6,929 | 50 | % | |||||||||||
EMEA | 3,123 | 20 | % | 2,842 | 20 | % | 2,740 | 20 | % | |||||||||||
Latin America | 3,545 | 23 | % | 2,805 | 20 | % | 2,889 | 21 | % | |||||||||||
Asia Pacific | 1,451 | 9 | % | 1,402 | 10 | % | 1,288 | 9 | % |
Year Ended December 31, 2021 vs. 2020 | Percent Change Due To: | |||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
(in millions) | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
North America | $ | 368 | 5 | % | 2 | % | 2 | % | 1 | % | — | % | ||||||||
EMEA | 281 | 10 | % | 3 | % | 3 | % | 4 | % | — | % | |||||||||
Latin America | 740 | 26 | % | 10 | % | 17 | % | (1) | % | — | % | |||||||||
Asia Pacific | 49 | 3 | % | 2 | % | 1 | % | 2 | % | (2) | % | |||||||||
Total | $ | 1,438 | 10 | % | 4 | % | 5 | % | 1 | % | — | % |
Year Ended December 31, 2020 vs. 2019 | Percent Change Due To: | |||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
(in millions) | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
North America | $ | 239 | 3 | % | 1 | % | 3 | % | (1) | % | — | % | ||||||||
EMEA | 102 | 4 | % | 2 | % | 6 | % | (4) | % | — | % | |||||||||
Latin America | (84) | (3) | % | 7 | % | 10 | % | (20) | % | — | % | |||||||||
Asia Pacific | 114 | 9 | % | 2 | % | 11 | % | (3) | % | (1) | % | |||||||||
Total | $ | 371 | 3 | % | 3 | % | 5 | % | (5) | % | — | % |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Net Sales | $ | 13,846 | $ | 14,287 | $ | 14,241 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
COGS | $ | 9,220 | $ | 8,507 | $ | 8,575 |
(In millions) | For the Year Ended December 31, 2019 | ||||
Pro Forma COGS | $ | 8,386 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
R&D | $ | 1,187 | $ | 1,142 | $ | 1,147 |
Successor | Predecessor | |||||||||||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the period September 1 through December 31, 2017 | For the period January 1 through August 31, 2017 | ||||||||||||||||
Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||||||
Worldwide | $ | 13,846 | 100 | % | $ | 14,287 | 100 | % | $ | 3,790 | 100 | % | $ | 6,894 | 100 | % | ||||
North America | 6,929 | 50 | % | 7,412 | 52 | % | 1,224 | 32 | % | 4,579 | 66 | % | ||||||||
EMEA | 2,740 | 20 | % | 2,765 | 19 | % | 535 | 14 | % | 1,287 | 19 | % | ||||||||
Asia Pacific | 1,288 | 9 | % | 1,293 | 9 | % | 428 | 11 | % | 380 | 6 | % | ||||||||
Latin America | 2,889 | 21 | % | 2,817 | 20 | % | 1,603 | 43 | % | 648 | 9 | % |
Year Ended December 31, 2019 vs. 2018 | Percent Change Due To: | ||||||||||||
Net Sales Change (GAAP) | Local Price & | Portfolio / | |||||||||||
(in millions) | $ | % | Product Mix | Volume | Currency | Other | |||||||
North America | $ | (483 | ) | (7 | )% | (2 | )% | (4 | )% | (1 | )% | — | % |
EMEA | (25 | ) | (1 | )% | 2 | % | 5 | % | (8 | )% | — | % | |
Asia Pacific | (5 | ) | — | % | 2 | % | 1 | % | (3 | )% | — | % | |
Latin America | 72 | 3 | % | 4 | % | 4 | % | (5 | )% | — | % | ||
Total | $ | (441 | ) | (3 | )% | — | % | — | % | (3 | )% | — | % |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
SG&A | $ | 3,209 | $ | 3,043 | $ | 3,065 |
(In millions) | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||||
Net Sales | % of Net Sales | Pro Forma Net Sales | % of Pro Forma Net Sales | |||||||
Worldwide | $ | 14,287 | 100 | % | $ | 14,241 | 100 | % | ||
North America | 7,412 | 52 | % | 7,589 | 53 | % | ||||
EMEA | 2,765 | 19 | % | 2,637 | 19 | % | ||||
Asia Pacific | 1,293 | 9 | % | 1,205 | 8 | % | ||||
Latin America | 2,817 | 20 | % | 2,810 | 20 | % |
(In millions) | For the Year Ended December 31, 2019 | ||||
Pro Forma SG&A | $ | 3,068 |
Year Ended December 31, 2018 vs. 2017 | Percent Change Due To: | ||||||||||||
Net Sales Change (Pro Forma) | Local Price & | Portfolio / | |||||||||||
(in millions) | $ | % | Product Mix | Volume | Currency | Other | |||||||
North America | $ | (177 | ) | (2 | )% | 2 | % | (4 | )% | — | % | — | % |
EMEA | 128 | 5 | % | — | % | (1 | )% | 6 | % | — | % | ||
Asia Pacific | 88 | 7 | % | 2 | % | 7 | % | (2 | )% | — | % | ||
Latin America | 7 | — | % | 3 | % | 9 | % | (12 | )% | — | % | ||
Total | $ | 46 | — | % | 2 | % | — | % | (2 | )% | — | % |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
COGS | $ | 8,575 | $ | 9,948 | $ | 2,915 | $ | 3,409 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma COGS | $ | 8,386 | $ | 8,449 | $ | 8,338 |
Successor | Predecessor | |||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||
Other Operating Charges | $ | 195 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
R&D | $ | 1,147 | $ | 1,355 | $ | 484 | $ | 591 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma R&D | $ | 1,147 | $ | 1,352 | $ | 1,439 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
SG&A | $ | 3,065 | $ | 3,041 | $ | 920 | $ | 1,969 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma SG&A | $ | 3,068 | $ | 3,042 | $ | 3,109 |
Successor | Predecessor | |||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||
Amortization of Intangibles | $ | 475 | $ | 391 | $ | 97 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Amortization of Intangibles | $ | 475 | $ | 391 | $ | 270 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Amortization of Intangibles | $ | 722 | $ | 682 | $ | 475 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Restructuring and Asset Related Charges - Net | $ | 222 | $ | 694 | $ | 270 | $ | 12 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Restructuring and Asset Related Charges - Net | $ | 222 | $ | 694 | $ | 271 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Restructuring and Asset Related Charges - Net | $ | 289 | $ | 335 | $ | 222 |
Successor | Predecessor | |||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||
Integration and Separation Costs | $ | 744 | $ | 992 | $ | 255 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Integration and Separation Costs1 | $ | 632 | $ | 571 | $ | 217 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Integration and Separation Costs | $ | — | $ | — | $ | 744 |
(In millions) | For the Year Ended December 31, 2019 | ||||
Pro Forma Integration and Separation Costs | $ | 632 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Other Income - Net | $ | 1,348 | $ | 212 | $ | 215 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Goodwill Impairment Charge | $ | — | $ | 4,503 | $ | — | $ | — |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Goodwill Impairment Charge | $ | — | $ | 4,503 | $ | — |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Other Income (Expense) - Net | $ | 215 | $ | 249 | $ | 805 | $ | (501 | ) |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Other Income (Expense) - Net | $ | 215 | $ | 249 | $ | (899 | ) |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Interest Expense | $ | 30 | $ | 45 | $ | 136 |
(In millions) | For the Year Ended December 31, 2019 | ||||
Pro Forma Interest Expense | $ | 91 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Loss on Early Extinguishment of Debt | $ | 13 | $ | 81 | $ | — | $ | — |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Loss on Early Extinguishment of Debt | $ | 13 | $ | — | $ | — |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Provision for (Benefit from) Income Taxes on Continuing Operations | $ | 524 | $ | (81) | $ | (46) | |||||
Effective Tax Rate | 22.3 | % | (12.0) | % | 14.6 | % |
(In millions) | For the Year Ended December 31, 2019 | ||||
Pro Forma Provision for (Benefit from) Income Taxes on Continuing Operations | $ | 1 | |||
Pro Forma Effective Tax Rate | 3.7 | % |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Interest Expense | $ | 136 | $ | 337 | $ | 115 | $ | 254 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Interest Expense | $ | 91 | $ | 76 | $ | 87 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Benefit from Income Taxes on Continuing Operations | $ | (46 | ) | $ | (31 | ) | $ | (2,221 | ) | $ | (395 | ) |
Effective Tax Rate | 14.6 | % | 0.5 | % | 481.8 | % | 1,067.6 | % |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2017 | ||||||
Pro Forma Provision for (Benefit from) Income Taxes on Continuing Operations | $ | 1 | $ | 395 | $ | (2,910 | ) | ||
Effective Tax Rate | 3.7 | % | (8.7 | )% | 748.1 | % |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
(Loss) Income from Discontinued Operations After Income Taxes | $ | (53) | $ | (55) | $ | (671) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
(Loss) Income from Discontinued Operations After Taxes | $ | (671 | ) | $ | 1,748 | $ | (568 | ) | $ | 1,403 |
Unaudited Pro Forma Statement of Operations | For the Year Ended December 31, 2019 | ||||||||||||||||
(In millions, except per share amounts) | Corteva (As Reported - GAAP) | Merger 1 | Debt Retirement 2 | Separations Related 3 | Pro Forma | ||||||||||||
Net sales | $ | 13,846 | $ | — | $ | — | $ | — | $ | 13,846 | |||||||
Cost of goods sold | 8,575 | (205) | — | 16 | 8,386 | ||||||||||||
Research and development expense | 1,147 | — | — | — | 1,147 | ||||||||||||
Selling, general and administrative expenses | 3,065 | — | — | 3 | 3,068 | ||||||||||||
Amortization of intangibles | 475 | — | — | — | 475 | ||||||||||||
Restructuring and asset related charges - net | 222 | — | — | — | 222 | ||||||||||||
Integration and separation costs | 744 | — | — | (112) | 632 | ||||||||||||
Other income - net | 215 | — | — | — | 215 | ||||||||||||
Loss on early extinguishment of debt | 13 | — | — | — | 13 | ||||||||||||
Interest expense | 136 | — | (45) | — | 91 | ||||||||||||
Income (loss) from continuing operations before income taxes | (316) | 205 | 45 | 93 | 27 | ||||||||||||
Provision for (benefit from) income taxes on continuing operations | (46) | 36 | 10 | 1 | 1 | ||||||||||||
Income (loss) from continuing operations after income taxes | (270) | 169 | 35 | 92 | 26 | ||||||||||||
Net income (loss) from continuing operations attributable to noncontrolling interests | 13 | — | — | — | 13 | ||||||||||||
Net income (loss) attributable to Corteva | $ | (283) | $ | 169 | $ | 35 | $ | 92 | $ | 13 | |||||||
Per share common data | |||||||||||||||||
Earnings (loss) per share of common stock from continuing operations - basic | $ | 0.02 | |||||||||||||||
Earnings (loss) per share of common stock from continuing operations - diluted | $ | 0.02 | |||||||||||||||
Weighted-average common shares outstanding - basic | 749.5 | ||||||||||||||||
Weighted-average common shares outstanding - diluted | 749.5 |
Unaudited Pro Forma Statement of Operations | For the Year Ended December 31, 2019 | ||||||||||||||
(In millions, except per share amounts) | Corteva (As Reported - GAAP) | Merger 1 | Debt Retirement 2 | Separations Related 3 | Pro Forma | ||||||||||
Net sales | $ | 13,846 | $ | — | $ | — | $ | — | $ | 13,846 | |||||
Cost of goods sold | 8,575 | (205 | ) | — | 16 | 8,386 | |||||||||
Research and development expense | 1,147 | — | — | — | 1,147 | ||||||||||
Selling, general and administrative expenses | 3,065 | — | — | 3 | 3,068 | ||||||||||
Amortization of intangibles | 475 | — | — | — | 475 | ||||||||||
Restructuring and asset related charges - net | 222 | — | — | — | 222 | ||||||||||
Integration and separation costs | 744 | — | — | (112 | ) | 632 | |||||||||
Other income - net | 215 | — | — | — | 215 | ||||||||||
Loss on early extinguishment of debt | 13 | — | — | — | 13 | ||||||||||
Interest expense | 136 | — | (45 | ) | — | 91 | |||||||||
(Loss) income from continuing operations before income taxes | (316 | ) | 205 | 45 | 93 | 27 | |||||||||
(Benefit from) provision for income taxes on continuing operations | (46 | ) | 36 | 10 | 1 | 1 | |||||||||
(Loss) income from continuing operations after income taxes | (270 | ) | 169 | 35 | 92 | 26 | |||||||||
Net income from continuing operations attributable to noncontrolling interests | 13 | — | — | — | 13 | ||||||||||
Net (loss) income attributable to Corteva | $ | (283 | ) | $ | 169 | $ | 35 | $ | 92 | $ | 13 | ||||
Per share common data | |||||||||||||||
Earnings per share of common stock from continuing operations - basic | $ | 0.02 | |||||||||||||
Earnings per share of common stock from continuing operations - diluted | $ | 0.02 | |||||||||||||
Weighted-average common shares outstanding - basic | 749.5 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 749.5 |
Unaudited Pro Forma Statement of Operations | For the Year Ended December 31, 2018 | ||||||||||||||
(In millions, except per share amounts) | Corteva (As Reported - GAAP) | Merger 1 | Debt Retirement 2 | Separations Related 3 | Pro Forma | ||||||||||
Net sales | $ | 14,287 | $ | — | $ | — | $ | — | $ | 14,287 | |||||
Cost of goods sold | 9,948 | (1,554 | ) | — | 55 | 8,449 | |||||||||
Research and development expense | 1,355 | — | — | (3 | ) | 1,352 | |||||||||
Selling, general and administrative expenses | 3,041 | — | — | 1 | 3,042 | ||||||||||
Amortization of intangibles | 391 | — | — | — | 391 | ||||||||||
Restructuring and asset related charges - net | 694 | — | — | — | 694 | ||||||||||
Integration and separation costs | 992 | — | — | (421 | ) | 571 | |||||||||
Goodwill impairment charge | 4,503 | — | — | — | 4,503 | ||||||||||
Other income - net | 249 | — | — | — | 249 | ||||||||||
Loss on early extinguishment of debt | 81 | — | (81 | ) | — | — | |||||||||
Interest expense | 337 | — | (261 | ) | — | 76 | |||||||||
Loss from continuing operations before income taxes | (6,806 | ) | 1,554 | 342 | 368 | (4,542 | ) | ||||||||
(Benefit from) provision for income taxes on continuing operations | (31 | ) | 295 | 78 | 53 | 395 | |||||||||
Loss from continuing operations after income taxes | (6,775 | ) | 1,259 | 264 | 315 | (4,937 | ) | ||||||||
Net income from continuing operations attributable to noncontrolling interests | 29 | — | — | — | 29 | ||||||||||
Net loss attributable to Corteva | $ | (6,804 | ) | $ | 1,259 | $ | 264 | $ | 315 | $ | (4,966 | ) | |||
Per share common data | |||||||||||||||
Loss per share of common stock from continuing operations - basic | $ | (6.63 | ) | ||||||||||||
Loss per share of common stock from continuing operations - diluted | $ | (6.63 | ) | ||||||||||||
Weighted-average common shares outstanding - basic | 749.4 | ||||||||||||||
Weighted-average common shares outstanding - diluted | 749.4 |
Unaudited Pro Forma Statement of Operations | For the Year Ended December 31, 2017 | ||||||||||||||||||||
(In millions, except per share amounts) | For the Period January 1 through August 31, 2017 (As Reported - GAAP) | For the period September 1 through December 31, 2017 (As Reported - GAAP) | DAS for the Period January 1 through August 31, 20171 | Merger 2 | Debt Retirement 3 | Separations Related 4 | Pro Forma | ||||||||||||||
Net sales | $ | 6,894 | $ | 3,790 | $ | 3,561 | $ | (4 | ) | $ | — | $ | — | $ | 14,241 | ||||||
Cost of goods sold | 3,409 | 2,915 | 2,285 | (326 | ) | — | 55 | 8,338 | |||||||||||||
Other operating charges | 195 | — | (195 | ) | — | — | — | ||||||||||||||
Research and development expense | 591 | 484 | 356 | 10 | — | (2 | ) | 1,439 | |||||||||||||
Selling, general and administrative expenses | 1,969 | 920 | 548 | (329 | ) | — | 1 | 3,109 | |||||||||||||
Amortization of intangibles | 97 | 11 | 162 | — | — | 270 | |||||||||||||||
Restructuring and asset related charges - net | 12 | 270 | (1 | ) | (10 | ) | — | — | 271 | ||||||||||||
Integration and separation costs | 255 | 25 | 186 | — | (249 | ) | 217 | ||||||||||||||
Other (expense) income - net | (501 | ) | 805 | (1,107 | ) | (96 | ) | — | — | (899 | ) | ||||||||||
Interest expense | 254 | 115 | 2 | (80 | ) | (204 | ) | — | 87 | ||||||||||||
Loss from continuing operations before income taxes | (37 | ) | (461 | ) | (772 | ) | 482 | 204 | 195 | (389 | ) | ||||||||||
Benefit from income taxes on continuing operations | (395 | ) | (2,221 | ) | (236 | ) | 175 | 74 | (307 | ) | (2,910 | ) | |||||||||
Income from continuing operations after income taxes | 358 | 1,760 | (536 | ) | 307 | 130 | 502 | 2,521 | |||||||||||||
Net income from continuing operations attributable to noncontrolling interests | 8 | 10 | 17 | — | — | — | 35 | ||||||||||||||
Net income attributable to Corteva | $ | 350 | $ | 1,750 | $ | (553 | ) | $ | 307 | $ | 130 | $ | 502 | $ | 2,486 | ||||||
Per share common data | |||||||||||||||||||||
Earnings per share of common stock from continuing operations - basic | $ | 3.32 | |||||||||||||||||||
Earnings per share of common stock from continuing operations - diluted | $ | 3.32 | |||||||||||||||||||
Weighted-average common shares outstanding - basic | 749.4 | ||||||||||||||||||||
Weighted-average common shares outstanding - diluted | 749.4 |
Seed | Successor | Predecessor | Pro Forma | ||||||||||||
In millions | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | 2017 | ||||||||||
Net sales | $ | 7,590 | $ | 7,842 | $ | 1,520 | $ | 5,865 | $ | 8,056 | |||||
Pro forma segment operating EBITDA | $ | 1,040 | $ | 1,139 | $ | 1,170 |
Seed | 2019 vs. 2018 | Percent Change Due To: | |||||||||||
Net Sales Change (GAAP) | Local Price & | Portfolio / | |||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | |||||||
North America | $ | (250 | ) | (5 | )% | (2 | )% | (3 | )% | — | % | — | % |
EMEA | (30 | ) | (2 | )% | 1 | % | 5 | % | (8 | )% | — | % | |
Asia Pacific | — | — | % | 2 | % | 2 | % | (4 | )% | — | % | ||
Latin America | 28 | 3 | % | 8 | % | (1 | )% | (4 | )% | — | % | ||
Total | $ | (252 | ) | (3 | )% | — | % | (1 | )% | (2 | )% | — | % |
Seed | 2018 vs. 2017 | Percent Change Due To: | |||||||||||
Net Sales Change (Pro Forma) | Local Price & | Portfolio / | |||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | |||||||
North America | $ | (246 | ) | (5 | )% | 1 | % | (6 | )% | — | % | — | % |
EMEA | 113 | 9 | % | 4 | % | (1 | )% | 6 | % | — | % | ||
Asia Pacific | 15 | 4 | % | 6 | % | 4 | % | (6 | )% | — | % | ||
Latin America | (96 | ) | (8 | )% | (3 | )% | 4 | % | (9 | )% | — | % | |
Total | $ | (214 | ) | (3 | )% | 1 | % | (3 | )% | (1 | )% | — | % |
Seed | For the Year Ended December 31, | ||||||||||
In millions | 2021 | 2020 | 20191 | ||||||||
Net sales | $ | 8,402 | $ | 7,756 | $ | 7,590 | |||||
Segment operating EBITDA | $ | 1,512 | $ | 1,208 | $ | 1,040 |
Seed | 2021 vs. 2020 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
North America | $ | 209 | 4 | % | 1 | % | 2 | % | 1 | % | — | % | ||||||||
EMEA | 131 | 9 | % | 5 | % | 1 | % | 3 | % | — | % | |||||||||
Latin America | 303 | 27 | % | 16 | % | 14 | % | (3) | % | — | % | |||||||||
Asia Pacific | 3 | 1 | % | 2 | % | (2) | % | 1 | % | — | % | |||||||||
Total | $ | 646 | 8 | % | 4 | % | 4 | % | — | % | — | % |
Seed | 2021 vs. 2020 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
Corn | $ | 436 | 8 | % | 5 | % | 3 | % | — | % | — | % | ||||||||
Soybeans | 123 | 9 | % | — | % | 7 | % | 2 | % | — | % | |||||||||
Other oilseeds | 133 | 21 | % | 5 | % | 14 | % | 2 | % | — | % | |||||||||
Other | (46) | (9) | % | (2) | % | (8) | % | 1 | % | — | % | |||||||||
Total | $ | 646 | 8 | % | 4 | % | 4 | % | — | % | — | % |
Seed | 2020 vs. 2019 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
North America | $ | 71 | 2 | % | — | % | 2 | % | — | % | — | % | ||||||||
EMEA | 90 | 7 | % | 4 | % | 8 | % | (5) | % | — | % | |||||||||
Latin America | (13) | (1) | % | 4 | % | 13 | % | (18) | % | — | % | |||||||||
Asia Pacific | 18 | 5 | % | 4 | % | 6 | % | (5) | % | — | % | |||||||||
Total | $ | 166 | 2 | % | 1 | % | 5 | % | (4) | % | — | % |
Seed | 2020 vs. 2019 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
Corn | $ | 56 | 1 | % | 2 | % | 4 | % | (5) | % | — | % | ||||||||
Soybeans | 58 | 4 | % | 2 | % | 4 | % | (2) | % | — | % | |||||||||
Other oilseeds | 26 | 4 | % | — | % | 8 | % | (4) | % | — | % | |||||||||
Other | 26 | 5 | % | 3 | % | 5 | % | (3) | % | — | % | |||||||||
Total | $ | 166 | 2 | % | 1 | % | 5 | % | (4) | % | — | % |
Crop Protection | Successor | Predecessor | Pro Forma | ||||||||||||
In millions | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | 2017 | ||||||||||
Net sales | $ | 6,256 | $ | 6,445 | $ | 2,270 | $ | 1,029 | $ | 6,185 | |||||
Pro forma segment operating EBITDA | $ | 1,066 | $ | 1,074 | $ | 936 |
Crop Protection | 2019 vs. 2018 | Percent Change Due To: | |||||||||||
Net Sales Change (GAAP) | Local Price & | Portfolio / | |||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | |||||||
North America | $ | (233 | ) | (10 | )% | (3 | )% | (6 | )% | — | % | (1 | )% |
EMEA | 5 | — | % | 2 | % | 5 | % | (7 | )% | — | % | ||
Asia Pacific | (5 | ) | (1 | )% | 3 | % | — | % | (3 | )% | (1 | )% | |
Latin America | 44 | 3 | % | 1 | % | 7 | % | (5 | )% | — | % | ||
Total | $ | (189 | ) | (3 | )% | — | % | 1 | % | (3 | )% | (1 | )% |
Crop Protection | 2018 vs. 2017 | Percent Change Due To: | |||||||||||
Net Sales Change (Pro Forma) | Local Price & | Portfolio / | |||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | |||||||
North America | $ | 69 | 3 | % | 5 | % | (2 | )% | — | % | — | % | |
EMEA | 15 | 1 | % | (3 | )% | (2 | )% | 6 | % | — | % | ||
Asia Pacific | 73 | 8 | % | — | % | 8 | % | — | % | — | % | ||
Latin America | 103 | 6 | % | 9 | % | 12 | % | (15 | )% | — | % | ||
Total | $ | 260 | 4 | % | 3 | % | 3 | % | (2 | )% | — | % |
Crop Protection | For the Year Ended December 31, | ||||||||||
In millions | 2021 | 2020 | 20191 | ||||||||
Net sales | $ | 7,253 | $ | 6,461 | $ | 6,256 | |||||
Segment operating EBITDA | $ | 1,202 | $ | 1,004 | $ | 1,066 |
Crop Protection | 2021 vs. 2020 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
North America | $ | 159 | 7 | % | 6 | % | — | % | 1 | % | — | % | ||||||||
EMEA | 150 | 11 | % | 2 | % | 4 | % | 5 | % | — | % | |||||||||
Latin America | 437 | 26 | % | 7 | % | 19 | % | — | % | — | % | |||||||||
Asia Pacific | 46 | 4 | % | 1 | % | 3 | % | 3 | % | (3) | % | |||||||||
Total | $ | 792 | 12 | % | 5 | % | 6 | % | 2 | % | (1) | % |
Crop Protection | 2021 vs. 2020 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
Herbicides | $ | 535 | 16 | % | 7 | % | 7 | % | 2 | % | — | % | ||||||||
Insecticides | (34) | (2) | % | 2 | % | (5) | % | 1 | % | — | % | |||||||||
Fungicides | 278 | 27 | % | 4 | % | 22 | % | 3 | % | (2) | % | |||||||||
Other | 13 | 3 | % | (8) | % | 11 | % | — | % | — | % | |||||||||
Total | $ | 792 | 12 | % | 5 | % | 6 | % | 2 | % | (1) | % |
Crop Protection | 2020 vs. 2019 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
North America | $ | 168 | 8 | % | 3 | % | 5 | % | — | % | — | % | ||||||||
EMEA | 12 | 1 | % | 1 | % | 3 | % | (2) | % | (1) | % | |||||||||
Latin America | (71) | (4) | % | 9 | % | 8 | % | (21) | % | — | % | |||||||||
Asia Pacific | 96 | 10 | % | 1 | % | 13 | % | (2) | % | (2) | % | |||||||||
Total | $ | 205 | 3 | % | 4 | % | 7 | % | (7) | % | (1) | % |
Crop Protection | 2020 vs. 2019 | Percent Change Due To: | ||||||||||||||||||
Net Sales Change | Price & | Portfolio / | ||||||||||||||||||
In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
Herbicides | $ | 74 | 2 | % | 1 | % | 7 | % | (5) | % | (1) | % | ||||||||
Insecticides | 112 | 7 | % | 5 | % | 9 | % | (7) | % | — | % | |||||||||
Fungicides | (40) | (4) | % | 5 | % | 5 | % | (12) | % | (2) | % | |||||||||
Other1 | 59 | 18 | % | 24 | % | 1 | % | (7) | % | — | % | |||||||||
Total | $ | 205 | 3 | % | 4 | % | 7 | % | (7) | % | (1) | % |
Year Ended December 31, | |||||||||
(In millions) | 2019 | 2018 | 2017 | ||||||
Pro forma income (loss) from continuing operations after income taxes | $ | 26 | $ | (4,937 | ) | $ | 2,521 | ||
Pro forma provision for (benefit from) income taxes on continuing operations | 1 | 395 | (2,910 | ) | |||||
Pro forma income (loss) from continuing operations before income taxes | 27 | (4,542 | ) | (389 | ) | ||||
Depreciation and amortization | 1,000 | 909 | 771 | ||||||
Interest income | (59 | ) | (86 | ) | (109 | ) | |||
Interest expense | 91 | 76 | 87 | ||||||
Exchange losses - net | 66 | 77 | 373 | ||||||
Non-operating (benefits) costs - net | (129 | ) | (211 | ) | 265 | ||||
Goodwill impairment charge | — | 4,503 | — | ||||||
Significant items charge | 991 | 1,346 | 957 | ||||||
Pro forma Operating EBITDA (Non-GAAP) | $ | 1,987 | $ | 2,072 | $ | 1,955 |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
(In millions) | As Reported | As Reported | Pro Forma | ||||||||
Income (loss) from continuing operations after income taxes | $ | 1,822 | $ | 756 | $ | 26 | |||||
Provision for (benefit from) income taxes on continuing operations | 524 | (81) | 1 | ||||||||
Income (loss) from continuing operations before income taxes | 2,346 | 675 | 27 | ||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,000 | ||||||||
Interest income | (77) | (56) | (59) | ||||||||
Interest expense | 30 | 45 | 91 | ||||||||
Exchange (gains) losses | 54 | 174 | 66 | ||||||||
Non-operating (benefits) costs | (1,256) | (316) | (129) | ||||||||
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges1 | — | ||||||||||
Significant items (benefit) charge | 236 | 388 | 991 | ||||||||
Operating EBITDA (Non-GAAP) | $ | 2,576 | $ | 2,087 | $ | 1,987 |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
(In millions) | As Reported | As Reported | Pro Forma | ||||||||
Integration and separation costs | $ | — | $ | — | $ | 632 | |||||
Restructuring and asset related charges - net | 289 | 335 | 222 | ||||||||
Equity securities mark-to-market gain | (47) | — | — | ||||||||
Loss on divestiture | — | 53 | 24 | ||||||||
Amortization of inventory step-up | — | — | 67 | ||||||||
Argentina currency devaluation | — | — | 33 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Employee Retention Credit | (60) | — | — | ||||||||
Contract termination | 54 | — | — | ||||||||
Total pretax significant items (benefit) charge | 236 | 388 | 991 | ||||||||
Total tax (benefit) charge impact of significant items1 | (51) | (86) | (135) | ||||||||
Tax only significant item (benefit) charge2 | (9) | (192) | (72) | ||||||||
Total significant items (benefit) charge, net of tax | $ | 176 | $ | 110 | $ | 784 |
Year Ended December 31, | |||
(In millions) | 2017 | ||
Pro forma income from continuing operations after income taxes | $ | 2,521 | |
Pro forma benefit from income taxes on continuing operations | (2,910 | ) | |
Pro forma loss from continuing operations before income taxes | (389 | ) | |
Depreciation and amortization | 771 | ||
Interest income | (109 | ) | |
Interest expense | 87 | ||
Exchange losses - net | 373 | ||
Non-operating costs - net | 265 | ||
Goodwill impairment charge | — | ||
Significant items charge | 957 | ||
Corporate expenses | 151 | ||
Pro forma Segment Operating EBITDA (Non-GAAP) | $ | 2,106 |
Year Ended December 31, | |||||||||
(In millions) | 2019 | 2018 | 2017 | ||||||
Integration and separation costs | $ | 632 | $ | 571 | $ | 217 | |||
Restructuring and asset related charges - net | 222 | 694 | 271 | ||||||
Gain on sale of assets | — | (24 | ) | — | |||||
Loss on deconsolidation of subsidiary | — | 53 | — | ||||||
Loss on divestiture | 24 | 2 | — | ||||||
Amortization of inventory step-up | 67 | — | — | ||||||
Argentina currency devaluation | 33 | — | — | ||||||
Loss on early extinguishment of debt | 13 | — | — | ||||||
Bayer CropScience arbitration | — | — | 469 | ||||||
Income tax related items | — | 50 | — | ||||||
Total pretax significant items charge | 991 | 1,346 | 957 | ||||||
Total tax benefit impact of significant items1 | (135 | ) | (239 | ) | (290 | ) | |||
Tax only significant item (benefit) charge2 | (72 | ) | 347 | (2,332 | ) | ||||
Total significant items charge (benefit), net of tax | $ | 784 | $ | 1,454 | $ | (1,665 | ) |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
(In millions) | As Reported | As Reported | Pro Forma | ||||||||
Income (loss) from continuing operations attributable to Corteva | $ | 1,812 | $ | 736 | $ | 13 | |||||
Less: Non-operating benefits (costs), after tax | 955 | 237 | 100 | ||||||||
Less: Amortization of intangibles (existing as of Separation), after tax | (562) | (518) | (376) | ||||||||
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges1 | — | ||||||||||
Less: Significant items benefit (charge), after tax | (176) | (110) | (784) | ||||||||
Operating Earnings (Loss) (Non-GAAP) | $ | 1,595 | $ | 1,127 | $ | 1,073 |
Year Ended December 31, | |||||||||
(In millions) | 2019 | 2018 | 2017 | ||||||
Pro forma income (loss) from continuing operations attributable to Corteva | $ | 13 | $ | (4,966 | ) | $ | 2,486 | ||
Less: Non-operating benefits (costs) - net, after tax | 100 | 165 | (170 | ) | |||||
Less: Amortization of intangibles (existing as of Separation), after tax | (376 | ) | (313 | ) | (186 | ) | |||
Less: Goodwill impairment charge, after tax | — | (4,503 | ) | — | |||||
Less: Significant items (charge) benefit, after tax | (784 | ) | (1,454 | ) | 1,665 | ||||
Pro forma Operating Earnings (Non-GAAP) | $ | 1,073 | $ | 1,139 | $ | 1,177 |
Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
As Reported | As Reported | Pro Forma | |||||||||
Earnings (loss) per share of common stock from continuing operations - diluted | $ | 2.44 | $ | 0.98 | $ | 0.02 | |||||
Less: Non-operating benefits (costs), after tax | 1.29 | 0.32 | 0.13 | ||||||||
Less: Amortization of intangibles (existing as of Separation), after tax | (0.76) | (0.69) | (0.50) | ||||||||
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax1 | — | ||||||||||
Less: Significant items benefit (charge), after tax | (0.24) | (0.15) | (1.04) | ||||||||
Operating Earnings (Loss) Per Share (Non-GAAP) | $ | 2.15 | $ | 1.50 | $ | 1.43 | |||||
Diluted Shares Outstanding (in millions) | 741.6 | 751.2 | 749.5 |
Year Ended December 31, | |||||||||
2019 | 2018 | 2017 | |||||||
Pro forma earnings (loss) per share of common stock from continuing operations - diluted | $ | 0.02 | $ | (6.63 | ) | $ | 3.32 | ||
Less: Non-operating benefits (costs) - net, after tax | 0.13 | 0.22 | (0.23 | ) | |||||
Less: Amortization of intangibles (existing as of Separation), after tax | (0.50 | ) | (0.42 | ) | (0.25 | ) | |||
Less: Goodwill impairment charge, after tax | — | (6.01 | ) | — | |||||
Less: Significant items (charge) benefit, after tax | (1.04 | ) | (1.94 | ) | 2.22 | ||||
Pro forma Operating Earnings Per Share (Non-GAAP) | $ | 1.43 | $ | 1.52 | $ | 1.58 | |||
Diluted Shares Outstanding (in millions) | 749.5 | 749.4 | 749.4 |
(Dollars in millions) | December 31, 2021 | December 31, 2020 | ||||||
Cash, cash equivalents and marketable securities | $ | 4,545 | $ | 3,795 | ||||
Total debt | $ | 1,117 | $ | 1,105 |
(Dollars in millions) | December 31, 2019 | December 31, 2018 | ||||
Cash, cash equivalents and marketable securities | $ | 1,769 | $ | 2,275 | ||
Total debt | $ | 122 | $ | 7,938 |
Long-term | Short-term | Outlook | |||||||||
Standard & Poor's1 | A- | A-2 | Stable | ||||||||
Moody’s Investors Service | A3 | P-2 | Stable | ||||||||
Fitch Ratings1 | A | F1 | Stable |
(in millions) | Amount | ||
4.625% Notes due 2020 | $ | 474 | |
3.625% Notes due 2021 | 296 | ||
4.250% Notes due 2021 | 163 | ||
2.800% Notes due 2023 | 381 | ||
6.500% Debentures due 2028 | 57 | ||
5.600% Senior Notes due 2036 | 42 | ||
4.900% Notes due 2041 | 48 | ||
4.150% Notes due 2043 | 69 | ||
Total | $ | 1,530 |
(in millions) | Amount | |||||||||||||
4.625% Notes due 2020 | $ | 474 | ||||||||||||
3.625% Notes due 2021 | 296 | |||||||||||||
4.250% Notes due 2021 | 163 | |||||||||||||
2.800% Notes due 2023 | 381 | |||||||||||||
6.500% Debentures due 2028 | 57 | |||||||||||||
5.600% Senior Notes due 2036 | 42 | |||||||||||||
4.900% Notes due 2041 | 48 | |||||||||||||
4.150% Notes due 2043 | 69 | |||||||||||||
Total | $ | 1,530 |
Successor | Predecessor | |||||||||||
(Dollars in millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Cash provided by (used for) operating activities | $ | 1,070 | $ | 483 | $ | 3,674 | $ | (3,949 | ) |
Successor | Predecessor | |||||||||||
(Dollars in millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Cash (used for) provided by investing activities | $ | (904 | ) | $ | (505 | ) | $ | 3,678 | $ | (2,382 | ) |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Cash provided by (used for) operating activities | $ | 2,727 | $ | 2,064 | $ | 1,070 |
Successor | Predecessor | |||||||||||
(Dollars in millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Cash (used for) provided by financing activities | $ | (2,929 | ) | $ | (2,624 | ) | $ | (3,607 | ) | $ | 5,632 |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Cash provided by (used for) investing activities | $ | (362) | $ | (674) | $ | (904) |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Cash provided by (used for) financing activities | $ | (1,266) | $ | 303 | $ | (2,929) |
(Dollars in billions) | December 31, 2021 | December 31, 2020 | December 31, 2019 | ||||||||
Market-related value of assets | $ | 17.2 | $ | 16.3 | $ | 16.4 | |||||
Fair value of plan assets | 17.5 | 17.5 | 16.6 |
(Dollars in billions) | December 31, 2019 | December 31, 2018 | December 31, 2017 | ||||||
Market-related value of assets | $ | 16.4 | $ | 16.6 | $ | 16.6 | |||
Fair value of plan assets | 16.6 | 15.7 | 16.7 |
Pre-tax Earnings Benefit (Charge) (Dollars in millions) | 1/4 Percentage Point Increase | 1/4 Percentage Point Decrease | Pre-tax Earnings Benefit (Charge) (Dollars in millions) | 1/4 Percentage Point Increase | 1/4 Percentage Point Decrease | |||||||||
Discount rate | $ | (35 | ) | $ | 28 | Discount rate | $ | (33) | $ | 36 | ||||
Expected rate of return on plan assets | 40 | (40 | ) | Expected rate of return on plan assets | 42 | (42) |
Reporting Unit | Goodwill | Indefinite-Lived Intangible Assets | ||||
Seed | $ | 5,417 | $ | 1,881 |
Payments Due In | |||||||||||
(Dollars in millions) | Total at December 31, 2021 | 2022 | 2023 and beyond | ||||||||
Expected cumulative cash requirements for interest payments through maturity | $ | 138 | $ | 20 | $ | 118 | |||||
Purchase obligations1 | 1,363 | 741 | 622 | ||||||||
License agreements2, 3 | 307 | 121 | 186 | ||||||||
Other liabilities2, 4 | 285 | 53 | 232 | ||||||||
Total 5 | $ | 2,093 | $ | 935 | $ | 1,158 |
Payments Due In | |||||||||||||||
(Dollars in millions) | Total at December 31, 2019 | 2020 | 2021-2022 | 2023-2024 | 2025 and beyond | ||||||||||
Operating lease and finance lease obligations1 | $ | 658 | $ | 158 | $ | 216 | $ | 116 | $ | 168 | |||||
Expected cumulative cash requirements for interest payments through maturity | 37 | 2 | 4 | 4 | 27 | ||||||||||
Long-term debt | 111 | 1 | 1 | — | 109 | ||||||||||
Purchase obligations2 | |||||||||||||||
Information technology infrastructure & services | 31 | 17 | 14 | — | — | ||||||||||
Raw material obligations | 1,868 | 485 | 880 | 374 | 129 | ||||||||||
Other | 85 | 51 | 17 | 17 | — | ||||||||||
Total purchase obligations | 1,984 | 553 | 911 | 391 | 129 | ||||||||||
Other liabilities1,3 | |||||||||||||||
Pension and other post employment benefits | 6,664 | 298 | 526 | 1,300 | 4,540 | ||||||||||
Workers' compensation | 70 | 9 | 26 | 14 | 21 | ||||||||||
Environmental remediation | 336 | 127 | 126 | 50 | 33 | ||||||||||
License agreements4 | 673 | 159 | 302 | 156 | 56 | ||||||||||
Other5 | 223 | 42 | 54 | 44 | 83 | ||||||||||
Total other long-term liabilities | 7,966 | 635 | 1,034 | 1,564 | 4,733 | ||||||||||
Total contractual obligations6 | $ | 10,756 | $ | 1,349 | $ | 2,166 | $ | 2,075 | $ | 5,166 |
2.Included in the Consolidated Financial Statements. 3. Represents undiscounted remaining payments under Pioneer license agreements ($305 million on a discounted basis). 4. Includes liabilities related to employee-related benefits other than pension and other post employment benefits, asset retirement obligations and other noncurrent liabilities. 5. Due to uncertainty regarding the completion of tax audits and possible outcomes, the timing of certain payments of obligations related to unrecognized tax benefits cannot be made and have been excluded from the table above. See Note 10 - Income Taxes, to the Consolidated Financial Statements for additional detail. |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Net periodic benefit (credit) cost - pension and OPEB | $ | (1,292) | $ | (340) | $ | (163) | |||||
Defined contributions1 | 125 | 127 | 115 | ||||||||
Long-term employee benefit plan (credit) charges - continuing operations | $ | (1,167) | $ | (213) | $ | (48) |
Successor | Predecessor | |||||||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||||||
(Dollars in millions) | ||||||||||||
Net periodic benefit (credit) cost - pension and OPEB | $ | (163 | ) | $ | (186 | ) | $ | (71 | ) | $ | 349 | |
Defined contributions | 115 | 117 | 41 | 55 | ||||||||
Long-term employee benefit plan (credit) charges - continuing operations | $ | (48 | ) | $ | (69 | ) | $ | (30 | ) | $ | 404 |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Environmental operating costs | $ | 144 | $ | 138 | $ | 136 | |||||
Environmental remediation costs1 | 46 | 63 | 29 | ||||||||
$ | 190 | $ | 201 | $ | 165 |
Successor | Predecessor | |||||||||||
(Dollars in millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Environmental operating costs | $ | 136 | $ | 142 | $ | 51 | $ | 67 | ||||
Environmental remediation costs | 29 | 48 | 16 | 51 | ||||||||
$ | 165 | $ | 190 | $ | 67 | $ | 118 |
(Dollars in millions) | |||
Balance at December 31, 2017 | $ | 457 | |
Remediation payments | (55 | ) | |
Net increase in remediation accrual 1 | 48 | ||
Net change, indemnification 2 | (52 | ) | |
Balance at December 31, 2018 | $ | 398 | |
Remediation payments | (49 | ) | |
Net increase in remediation accrual 1 | 29 | ||
Net change, indemnification 2 | (42 | ) | |
Balance at December 31, 2019 | $ | 336 |
Balance at December 31, 2019 | $ | 336 | |||
(57) | |||||
63 | |||||
Net change, | (13) | ||||
Balance at December 31, 2020 | $ | 329 | |||
Remediation payments | (35) | ||||
Net increase in remediation accrual | 46 | ||||
Net change, indemnification | 112 | ||||
Balance at December 31, 2021 | $ | 452 |
As of December 31, 2019 | |||||||||
(In millions) | Indemnification Asset | Accrual balance3 | Potential exposure above amount accrued3 | ||||||
Environmental Remediation Stray Liabilities | |||||||||
Chemours related obligations - subject to indemnity1,2 | $ | 167 | $ | 167 | $ | 285 | |||
Other discontinued or divested businesses obligations1 | — | 91 | 221 | ||||||
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2 | 35 | 35 | 60 | ||||||
Environmental remediation liabilities not subject to indemnity | — | 43 | 54 | ||||||
Total | $ | 202 | $ | 336 | $ | 620 |
As of December 31, 2021 | |||||||||||
(In millions) | Indemnification Asset | Accrual balance3,5 | Potential exposure above amount accrued3 | ||||||||
Environmental Remediation Stray Liabilities | |||||||||||
Chemours related obligations - subject to indemnity1,2 | $ | 159 | $ | 159 | $ | 262 | |||||
Other discontinued or divested businesses obligations1 | 15 | 75 | 187 | ||||||||
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2 | 37 | 37 | 66 | ||||||||
Environmental remediation liabilities not subject to indemnity | — | 82 | 49 | ||||||||
Indemnification liabilities related to the MOU4 | 9 | 99 | 28 | ||||||||
Total | $ | 220 | $ | 452 | $ | 592 |
Fair Value (Liability)/Asset | Fair Value Sensitivity | |||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Foreign currency contracts | $ | 44 | $ | (80) | $ | (211) | $ | (388) | ||||||
Marketable securities | $ | — | $ | 226 | $ | — | $ | (36) |
Fair Value (Liability)/Asset | Fair Value Sensitivity | |||||||||||
(Dollars in millions) | 2019 | 2018 | 2019 | 2018 | ||||||||
Foreign currency contracts | $ | (18 | ) | $ | 51 | $ | (296 | ) | $ | (402 | ) |
For the Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Accounts Receivable—Allowance for Doubtful Receivables | |||||||||||
Balance at beginning of period | $ | 208 | $ | 174 | $ | 127 | |||||
Additions charged to expenses1 | 6 | 52 | 69 | ||||||||
Deductions from reserves1,2 | (4) | (18) | (22) | ||||||||
Balance at end of period | $ | 210 | $ | 208 | $ | 174 | |||||
Deferred Tax Assets—Valuation Allowance | |||||||||||
Balance at beginning of period | $ | 453 | $ | 457 | $ | 669 | |||||
Additions charged to expenses | 97 | 56 | 20 | ||||||||
Deductions from reserves3 | (184) | (60) | (232) | ||||||||
Balance at end of period | $ | 366 | $ | 453 | $ | 457 |
Successor | Predecessor | |||||||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||||||
Accounts Receivable—Allowance for Doubtful Receivables | ||||||||||||
Balance at beginning of period | $ | 127 | $ | 64 | $ | 60 | $ | 250 | ||||
Additions charged to expenses | 69 | 80 | 11 | 57 | ||||||||
Deductions from reserves1 | (22 | ) | (17 | ) | (7 | ) | (34 | ) | ||||
Balance at end of period | $ | 174 | $ | 127 | $ | 64 | $ | 273 | ||||
Inventory—Obsolescence Reserve | ||||||||||||
Balance at beginning of period | $ | 272 | $ | 137 | $ | 89 | $ | 164 | ||||
Additions charged to expenses | 370 | 449 | 88 | 217 | ||||||||
Deductions from reserves2 | (386 | ) | (314 | ) | (40 | ) | (161 | ) | ||||
Balance at end of period | $ | 256 | $ | 272 | $ | 137 | $ | 220 | ||||
Deferred Tax Assets—Valuation Allowance | ||||||||||||
Balance at beginning of period | $ | 669 | $ | 559 | $ | 502 | $ | 504 | ||||
Additions charged to expenses | 20 | 451 | 104 | 69 | ||||||||
Deductions from reserves3 | (232 | ) | (341 | ) | (47 | ) | (190 | ) | ||||
Balance at end of period | $ | 457 | $ | 669 | $ | 559 | $ | 383 |
Exhibit Number | Description | |||||||
Separation and Distribution Agreement by and among DuPont Inc., Dow Inc. and Corteva, Inc. (incorporated by reference to Exhibit No. 2.1 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
Amended and Restated Certificate of Incorporation of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019. | ||||||||
Amended and Restated Bylaws of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 10, 2019. | ||||||||
Amended and Restated Certificate of Incorporation of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.1 to | ||||||||
Amended and Restated Bylaws of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.2 to | ||||||||
Description of Corteva, Inc. registered | ||||||||
Description of | ||||||||
Amended and Restated Tax Matters Agreement, effective as of June 1, 2019 by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit 10.3 of Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed on June | ||||||||
Employee Matters Agreement by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.2 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
SpecCo/AgCo Intellectual Property Cross-License Agreement, effective as of June 1, 2019, by and among DowDuPont Inc., Corteva, Inc. and the other parties identified therein (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019). | ||||||||
Intellectual Property Cross-License Agreement by and between Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.4 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
Corteva, Inc. 2019 Omnibus Incentive Plan. (incorporated by reference to Exhibit No. 10.5 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
Fondation de Prevoyance en Faveur du Personnel de DuPont de Nemours International SÁRL. (incorporated by reference to Exhibit No. 10.6 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
Amendment No. 1 to Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company, dated August 24, 2017 (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated August 25, 2017). | ||||||||
Tax Matters Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
The E. I. du Pont de Nemours and Company Management Deferred Compensation Plan, incorporated by reference to Exhibit 4.3 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017. | ||||||||
The E. I. du Pont de Nemours and Company Stock Accumulation and Deferred Compensation Plan for Directors, (incorporated by reference to Exhibit 4.4 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017.) | ||||||||
E. I. du Pont de Nemours and Company's Pension Restoration Plan, as last amended effective June 29, 2015 (incorporated by reference to Exhibit 10.3 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
E. I. du Pont de Nemours and Company’s Rules for Lump Sum Payments, as last amended effective May 15, 2014 (incorporated by reference to Exhibit 10.4 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
E. I. du Pont de Nemours and Company’s Retirement Savings Restoration Plan, as last amended effective May 15, 2014. (incorporated by reference to Exhibit 10.08 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2014). | ||||||||
E. I. du Pont de Nemours and Company’s Retirement Income Plan for Directors, as last amended January 2011 (incorporated by reference to Exhibit 10.9 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended March 31, 2012). | ||||||||
Letter Agreement between James C. Collins, Jr. and Corteva, Inc. | ||||||||
Corteva, Inc. Severance Plan (incorporated by reference to Exhibit 10.2 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 28, 2021). | ||||||||
Letter Agreement effective as of June 1, 2019 by and between DowDuPont Inc. and Corteva, Inc. (incorporated by reference | ||||||||
Memorandum of Understanding, dated January 22, 2021, by and among The Chemours Company, Corteva, Inc., E. I. du Pont de Nemours and Company and DuPont de Nemours, Inc. (incorporated by reference from the Form 8-K (Commission file number 001-38710) filed January 22, 2021) | ||||||||
Form of Award Terms for Options granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.3 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Award Terms for Performance Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Award Terms for Restricted Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.5 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Special CFO RSU Agreement (incorporated by reference from Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed April 6, 2021). | ||||||||
Agreement dated March 18, 2021, among Corteva, Inc., Starboard Value LP and certain of its affiliates. (incorporated by reference from Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed March 19, 2021). | ||||||||
Corteva, Inc. Global Omnibus Employee Stock Purchase Plan (incorporated by reference from Exhibit 4.3 to Corteva’s Registration Statement on Form S-8 (Commission file number 333-249887), filed November 5, 2020). | ||||||||
Subsidiaries of the Registrant. | ||||||||
Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers | ||||||||
Consent of Independent Registered Public Accounting Firm, | ||||||||
Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Executive Officer. | ||||||||
Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Financial Officer. | ||||||||
Section 1350 Certification of the company’s and EID’s Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
Section 1350 Certification of the company’s and EID’s Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File – The Cover Page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101.INS) |
February | ||||||||
Corteva, Inc. | ||||||||
By: | /s/ Brian Titus | |||||||
Brian Titus Vice President, Controller (Principal Accounting Officer) |
Signature | Title(s) | Date | ||||||||||||
/s/ Charles V. Magro | Chief Executive Officer and Director (Principal Executive Officer) | February 10, 2022 | ||||||||||||
Charles V. Magro | ||||||||||||||
/s/ Gregory R. Page | Non-Executive Chairman of the Board of Directors and Director | February | ||||||||||||
Gregory R. Page | ||||||||||||||
/s/ Lamberto Andreotti | Director | February | ||||||||||||
Lamberto Andreotti | ||||||||||||||
/s/ | Director | February | ||||||||||||
/s/ Klaus Engel | Director | February | ||||||||||||
Klaus Engel | ||||||||||||||
/s/ Michael O. Johanns | Director | February | ||||||||||||
Michael O. Johanns | ||||||||||||||
/s/ | Director | February | ||||||||||||
/s/ Karen H. Grimes | Director | February 10, 2022 | ||||||||||||
Karen H. Grimes | ||||||||||||||
/s/ Rebecca B. Liebert | Director | February | ||||||||||||
Rebecca B. Liebert | ||||||||||||||
/s/ Marcos M. Lutz | Director | February | ||||||||||||
Marcos M. Lutz | ||||||||||||||
/s/ | Director | February | ||||||||||||
/s/ Kerry J. Preete | Director | February 10, 2022 | ||||||||||||
Kerry J. Preete | ||||||||||||||
/s/ Patrick J. Ward | Director | February | ||||||||||||
Patrick J. Ward | ||||||||||||||
/s/ | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February | ||||||||||||
February | ||||||||
E. I. DU PONT DE NEMOURS AND COMPANY | ||||||||
By: | /s/ Brian Titus | |||||||
Brian Titus Vice President, Controller (Principal Accounting Officer) |
Signature | Title(s) | Date | ||||||||||||
/s/ Charles V. Magro | Chief Executive Officer and Director (Principal Executive Officer) | February 10, 2022 | ||||||||||||
Charles V. Magro | ||||||||||||||
/s/ | (Principal Executive Officer) | |||||||||||||
Executive Vice President, Chief Financial Officer and Director (Principal Financial Officer) | February | |||||||||||||
Page(s) | |||||
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F- | |||||
Consolidated Financial Statements: | |||||
F- | |||||
F- | |||||
F- | |||||
F- | |||||
F- | |||||
F- |
Charles V. Magro Chief Executive Officer and Director | David J. Anderson Executive Vice President and Chief Financial Officer |
(In millions, except per share amounts) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net sales | $ | 15,655 | $ | 14,217 | $ | 13,846 | |||||
Cost of goods sold | 9,220 | 8,507 | 8,575 | ||||||||
Research and development expense | 1,187 | 1,142 | 1,147 | ||||||||
Selling, general and administrative expenses | 3,209 | 3,043 | 3,065 | ||||||||
Amortization of intangibles | 722 | 682 | 475 | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 222 | ||||||||
Integration and separation costs | — | — | 744 | ||||||||
Other income - net | 1,348 | 212 | 215 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Interest expense | 30 | 45 | 136 | ||||||||
Income (loss) from continuing operations before income taxes | 2,346 | 675 | (316) | ||||||||
Provision for (benefit from) income taxes on continuing operations | 524 | (81) | (46) | ||||||||
Income (loss) from continuing operations after income taxes | 1,822 | 756 | (270) | ||||||||
(Loss) income from discontinued operations after income taxes | (53) | (55) | (671) | ||||||||
Net income (loss) | 1,769 | 701 | (941) | ||||||||
Net income (loss) attributable to noncontrolling interests | 10 | 20 | 18 | ||||||||
Net income (loss) attributable to Corteva | $ | 1,759 | $ | 681 | $ | (959) | |||||
Basic earnings (loss) per share of common stock: | |||||||||||
Basic earnings (loss) per share of common stock from continuing operations | $ | 2.46 | $ | 0.98 | $ | (0.38) | |||||
Basic earnings (loss) per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Basic earnings (loss) per share of common stock | $ | 2.39 | $ | 0.91 | $ | (1.28) | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Diluted earnings (loss) per share of common stock from continuing operations | $ | 2.44 | $ | 0.98 | $ | (0.38) | |||||
Diluted earnings (loss) per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Diluted earnings (loss) per share of common stock | $ | 2.37 | $ | 0.91 | $ | (1.28) |
Successor | Predecessor | |||||||||||
(In millions, except per share amounts) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net sales | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 | ||||
Cost of goods sold | 8,575 | 9,948 | 2,915 | 3,409 | ||||||||
Other operating charges | 195 | |||||||||||
Research and development expense | 1,147 | 1,355 | 484 | 591 | ||||||||
Selling, general and administrative expenses | 3,065 | 3,041 | 920 | 1,969 | ||||||||
Amortization of intangibles | 475 | 391 | 97 | |||||||||
Restructuring and asset related charges - net | 222 | 694 | 270 | 12 | ||||||||
Integration and separation costs | 744 | 992 | 255 | |||||||||
Goodwill impairment charge | — | 4,503 | — | — | ||||||||
Other income (expense) - net | 215 | 249 | 805 | (501 | ) | |||||||
Loss on early extinguishment of debt | 13 | 81 | — | — | ||||||||
Interest expense | 136 | 337 | 115 | 254 | ||||||||
Loss from continuing operations before income taxes | (316 | ) | (6,806 | ) | (461 | ) | (37 | ) | ||||
Benefit from income taxes on continuing operations | (46 | ) | (31 | ) | (2,221 | ) | (395 | ) | ||||
(Loss) income from continuing operations after income taxes | (270 | ) | (6,775 | ) | 1,760 | 358 | ||||||
(Loss) income from discontinued operations after income taxes | (671 | ) | 1,748 | (568 | ) | 1,403 | ||||||
Net (loss) income | (941 | ) | (5,027 | ) | 1,192 | 1,761 | ||||||
Net income attributable to noncontrolling interests | 18 | 38 | 10 | 27 | ||||||||
Net (loss) income attributable to Corteva | $ | (959 | ) | $ | (5,065 | ) | $ | 1,182 | $ | 1,734 | ||
Basic (loss) earnings per share of common stock: | ||||||||||||
Basic (loss) earnings per share of common stock from continuing operations | $ | (0.38 | ) | $ | (9.08 | ) | $ | 2.34 | $ | 0.40 | ||
Basic (loss) earnings per share of common stock from discontinued operations | (0.90 | ) | 2.32 | (0.76 | ) | 1.60 | ||||||
Basic (loss) earnings per share of common stock | $ | (1.28 | ) | $ | (6.76 | ) | $ | 1.58 | $ | 2.00 | ||
Diluted (loss) earnings per share of common stock: | ||||||||||||
Diluted (loss) earnings per share of common stock from continuing operations | $ | (0.38 | ) | $ | (9.08 | ) | $ | 2.34 | $ | 0.40 | ||
Diluted (loss) earnings per share of common stock from discontinued operations | (0.90 | ) | 2.32 | (0.76 | ) | 1.59 | ||||||
Diluted (loss) earnings per share of common stock | $ | (1.28 | ) | $ | (6.76 | ) | $ | 1.58 | $ | 1.99 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net income (loss) | $ | 1,769 | $ | 701 | $ | (941) | |||||
Other comprehensive income (loss) - net of tax: | |||||||||||
Cumulative translation adjustments | (573) | (26) | (274) | ||||||||
Adjustments to pension benefit plans | 1,037 | (186) | (718) | ||||||||
Adjustments to other benefit plans | (621) | 671 | (160) | ||||||||
Unrealized gain (loss) on investments | 10 | (10) | — | ||||||||
Derivative instruments | 139 | (69) | 28 | ||||||||
Total other comprehensive income (loss) | (8) | 380 | (1,124) | ||||||||
Comprehensive income (loss) | 1,761 | 1,081 | (2,065) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests - net of tax | 10 | 20 | 18 | ||||||||
Comprehensive income (loss) attributable to Corteva | $ | 1,751 | $ | 1,061 | $ | (2,083) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net (loss) income | $ | (941 | ) | $ | (5,027 | ) | $ | 1,192 | $ | 1,761 | ||
Other comprehensive (loss) income - net of tax: | ||||||||||||
Cumulative translation adjustments | (274 | ) | (1,576 | ) | (490 | ) | 1,042 | |||||
Adjustments to pension benefit plans | (718 | ) | (715 | ) | 125 | 247 | ||||||
Adjustments to other benefit plans | (160 | ) | 132 | (53 | ) | 10 | ||||||
Derivative instruments | 28 | (24 | ) | (2 | ) | (10 | ) | |||||
Total other comprehensive (loss) income | (1,124 | ) | (2,183 | ) | (420 | ) | 1,289 | |||||
Comprehensive (loss) income | (2,065 | ) | (7,210 | ) | 772 | 3,050 | ||||||
Comprehensive income attributable to noncontrolling interests - net of tax | 18 | 38 | 10 | 27 | ||||||||
Comprehensive (loss) income attributable to Corteva | $ | (2,083 | ) | $ | (7,248 | ) | $ | 762 | $ | 3,023 |
(In millions, except share and per share amounts) | December 31, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 4,459 | $ | 3,526 | ||||
Marketable securities | 86 | 269 | ||||||
Accounts and notes receivable - net | 4,811 | 4,926 | ||||||
Inventories | 5,180 | 4,882 | ||||||
Other current assets | 1,010 | 1,165 | ||||||
Total current assets | 15,546 | 14,768 | ||||||
Investment in nonconsolidated affiliates | 76 | 66 | ||||||
Property, plant and equipment | 8,364 | 8,253 | ||||||
Less: Accumulated depreciation | 4,035 | 3,857 | ||||||
Net property, plant and equipment | 4,329 | 4,396 | ||||||
Goodwill | 10,107 | 10,269 | ||||||
Other intangible assets | 10,044 | 10,747 | ||||||
Deferred income taxes | 438 | 464 | ||||||
Other assets | 1,804 | 1,939 | ||||||
Total Assets | $ | 42,344 | $ | 42,649 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Short-term borrowings and finance lease obligations | $ | 17 | $ | 3 | ||||
Accounts payable | 4,126 | 3,615 | ||||||
Income taxes payable | 146 | 123 | ||||||
Deferred revenue | 3,201 | 2,662 | ||||||
Accrued and other current liabilities | 2,068 | 2,145 | ||||||
Total current liabilities | 9,558 | 8,548 | ||||||
Long-term debt | 1,100 | 1,102 | ||||||
Other noncurrent liabilities | ||||||||
Deferred income tax liabilities | 1,220 | 893 | ||||||
Pension and other post employment benefits - noncurrent | 3,124 | 5,176 | ||||||
Other noncurrent obligations | 1,719 | 1,867 | ||||||
Total noncurrent liabilities | 7,163 | 9,038 | ||||||
Commitments and contingent liabilities | ||||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at December 31, 2021 - 726,527,000 and December 31, 2020 - 743,458,000 | 7 | 7 | ||||||
Additional paid-in capital | 27,751 | 27,707 | ||||||
Retained earnings (accumulated deficit) | 524 | — | ||||||
Accumulated other comprehensive income (loss) | (2,898) | (2,890) | ||||||
Total Corteva stockholders’ equity | 25,384 | 24,824 | ||||||
Noncontrolling interests | 239 | 239 | ||||||
Total equity | 25,623 | 25,063 | ||||||
Total Liabilities and Equity | $ | 42,344 | $ | 42,649 |
(In millions, except share and per share amounts) | December 31, 2019 | December 31, 2018 | ||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 1,764 | $ | 2,270 | ||
Marketable securities | 5 | 5 | ||||
Accounts and notes receivable - net | 5,528 | 5,260 | ||||
Inventories | 5,032 | 5,310 | ||||
Other current assets | 1,190 | 1,038 | ||||
Assets of discontinued operations - current | — | 9,089 | ||||
Total current assets | 13,519 | 22,972 | ||||
Investment in nonconsolidated affiliates | 66 | 138 | ||||
Property, plant and equipment | 7,872 | 7,340 | ||||
Less: Accumulated depreciation | 3,326 | 2,796 | ||||
Net property, plant and equipment | 4,546 | 4,544 | ||||
Goodwill | 10,229 | 10,193 | ||||
Other intangible assets | 11,424 | 12,055 | ||||
Deferred income taxes | 287 | 304 | ||||
Other assets | 2,326 | 1,932 | ||||
Assets of discontinued operations - non-current | — | 56,545 | ||||
Total Assets | $ | 42,397 | $ | 108,683 | ||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Short-term borrowings and finance lease obligations | $ | 7 | $ | 2,154 | ||
Accounts payable | 3,702 | 3,798 | ||||
Income taxes payable | 95 | 186 | ||||
Accrued and other current liabilities | 4,434 | 4,005 | ||||
Liabilities of discontinued operations - current | — | 3,167 | ||||
Total current liabilities | 8,238 | 13,310 | ||||
Long-Term Debt | 115 | 5,784 | ||||
Other Noncurrent Liabilities | ||||||
Deferred income tax liabilities | 920 | 1,480 | ||||
Pension and other post employment benefits - noncurrent | 6,377 | 5,677 | ||||
Other noncurrent obligations | 2,192 | 1,795 | ||||
Liabilities of discontinued operations - non-current | — | 5,484 | ||||
Total noncurrent liabilities | 9,604 | 20,220 | ||||
Commitments and contingent liabilities | ||||||
Stockholders’ equity | ||||||
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at December 31, 2019 - 748,577,000 | 7 | — | ||||
Additional paid-in capital | 27,997 | — | ||||
Divisional equity | — | 78,020 | ||||
Accumulated deficit | (425 | ) | — | |||
Accumulated other comprehensive loss | (3,270 | ) | (3,360 | ) | ||
Total Corteva stockholders’ equity | 24,309 | 74,660 | ||||
Noncontrolling interests | 246 | 493 | ||||
Total equity | 24,555 | 75,153 | ||||
Total Liabilities and Equity | $ | 42,397 | $ | 108,683 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 1,769 | $ | 701 | $ | (941) | |||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,599 | ||||||||
Provision for (benefit from) deferred income tax | 174 | (330) | (477) | ||||||||
Net periodic pension and OPEB benefit, net | (1,292) | (340) | (177) | ||||||||
Pension and OPEB contributions | (247) | (269) | (323) | ||||||||
Net (gain) loss on sales of property, businesses, consolidated companies, and investments | (21) | 3 | (142) | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 339 | ||||||||
Amortization of inventory step-up | — | — | 272 | ||||||||
Goodwill impairment charge | — | — | 1,102 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Other net loss | 156 | 290 | 246 | ||||||||
Changes in assets and liabilities, net | |||||||||||
Accounts and notes receivable | (113) | 187 | (361) | ||||||||
Inventories | (422) | 104 | 74 | ||||||||
Accounts payable | 524 | (118) | 149 | ||||||||
Deferred revenue | 574 | 71 | 632 | ||||||||
Other assets and liabilities | 93 | 253 | (935) | ||||||||
Cash provided by (used for) operating activities | 2,727 | 2,064 | 1,070 | ||||||||
Investing activities | |||||||||||
Capital expenditures | (573) | (475) | (1,163) | ||||||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 75 | 83 | 249 | ||||||||
Acquisitions of businesses - net of cash acquired | — | — | (10) | ||||||||
Investments in and loans to nonconsolidated affiliates | (4) | (1) | (10) | ||||||||
Proceeds from sale of ownership interest in nonconsolidated affiliates | — | — | 21 | ||||||||
Purchases of investments | (204) | (995) | (138) | ||||||||
Proceeds from sales and maturities of investments | 345 | 721 | 160 | ||||||||
Other investing activities, net | (1) | (7) | (13) | ||||||||
Cash provided by (used for) investing activities | (362) | (674) | (904) | ||||||||
Financing activities | |||||||||||
Net change in borrowings (less than 90 days) | 13 | — | (1,868) | ||||||||
Proceeds from debt | 419 | 2,439 | 1,001 | ||||||||
Payments on debt | (421) | (1,441) | (6,804) | ||||||||
Repurchase of common stock | (950) | (275) | (25) | ||||||||
Proceeds from exercise of stock options | 100 | 56 | 47 | ||||||||
Dividends paid to stockholders | (397) | (388) | (194) | ||||||||
Payment for acquisition of subsidiary's interest from the noncontrolling interest | — | (60) | — | ||||||||
Distributions to DowDuPont | — | — | (317) | ||||||||
Cash transferred to DowDuPont at Internal Reorganizations | — | — | (2,053) | ||||||||
Contributions from Dow and DowDuPont | — | — | 7,396 | ||||||||
Debt extinguishment costs | — | — | (79) | ||||||||
Other financing activities, net | (30) | (28) | (33) | ||||||||
Cash provided by (used for) financing activities | (1,266) | 303 | (2,929) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | (136) | 7 | (88) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Operating activities | ||||||||||||
Net (loss) income | $ | (941 | ) | $ | (5,027 | ) | $ | 1,192 | $ | 1,761 | ||
Adjustments to reconcile net (loss) income to cash provided by (used for) operating activities: | ||||||||||||
Depreciation and amortization | 1,599 | 2,790 | 886 | 749 | ||||||||
(Benefit from) provision for deferred income tax | (477 | ) | 31 | (2,770 | ) | |||||||
Net periodic pension (benefit) cost | (264 | ) | (321 | ) | (113 | ) | 295 | |||||
Pension contributions | (121 | ) | (1,314 | ) | (68 | ) | (3,024 | ) | ||||
Net gain on sales of property, businesses, consolidated companies, and investments | (142 | ) | (11 | ) | (691 | ) | (204 | ) | ||||
Goodwill impairment charge | 1,102 | 4,503 | — | — | ||||||||
Loss on early extinguishment of debt | 13 | 81 | — | — | ||||||||
Restructuring and asset related charges - net | 339 | 803 | 378 | |||||||||
Asset related charges | 279 | |||||||||||
Amortization of inventory step-up | 272 | 1,628 | 1,573 | |||||||||
Other net loss | 246 | 262 | 106 | 481 | ||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||
Accounts and notes receivable | (361 | ) | (1,522 | ) | 1,576 | (2,269 | ) | |||||
Inventories | 74 | (498 | ) | (903 | ) | |||||||
Inventories and other operating assets | (202 | ) | ||||||||||
Accounts payable | 149 | 642 | 1,106 | |||||||||
Accounts payable and other operating liabilities | (1,555 | ) | ||||||||||
Other assets and liabilities | (418 | ) | (1,564 | ) | 1,402 | |||||||
Accrued interest and income taxes | (260 | ) | ||||||||||
Cash provided by (used for) operating activities | 1,070 | 483 | 3,674 | (3,949 | ) | |||||||
Investing activities | ||||||||||||
Capital expenditures | (1,163 | ) | (1,501 | ) | (499 | ) | (687 | ) | ||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 249 | 69 | 2,351 | 300 | ||||||||
Acquisitions of businesses - net of cash acquired | (10 | ) | — | 3 | (246 | ) | ||||||
Investments in and loans to nonconsolidated affiliates | (10 | ) | (8 | ) | (5 | ) | (22 | ) | ||||
Proceeds from sale of ownership interest in non-consolidated affiliates | 21 | 9 | — | — | ||||||||
Purchases of investments | (138 | ) | (1,257 | ) | (1,043 | ) | (5,457 | ) | ||||
Proceeds from sales and maturities of investments | 160 | 2,186 | 2,938 | 3,977 | ||||||||
Foreign currency exchange contract settlements | (206 | ) | ||||||||||
Other investing activities - net | (13 | ) | (3 | ) | (67 | ) | (41 | ) | ||||
Cash (used for) provided by investing activities | (904 | ) | (505 | ) | 3,678 | (2,382 | ) | |||||
Financing activities | ||||||||||||
Change in short-term (less than 90 days) borrowings | (1,868 | ) | 400 | (2,541 | ) | 3,610 | ||||||
Proceeds from issuance of long-term debt | 1,001 | 756 | 499 | 2,734 | ||||||||
Payments on long-term debt | (6,804 | ) | (5,956 | ) | (43 | ) | (229 | ) | ||||
Repurchase of common stock | (25 | ) | — | — | — | |||||||
Proceeds from exercise of stock options | 47 | 85 | 30 | 235 | ||||||||
Dividends paid to stockholders | (194 | ) | — | (329 | ) | (659 | ) | |||||
Distributions to Dow and DowDuPont | (317 | ) | (2,806 | ) | (1,200 | ) | ||||||
Contributions from Dow and DowDuPont | 7,396 | 5,363 | — |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Cash transferred to DowDuPont at Internal Reorganizations | (2,053 | ) | — | — | ||||||||
Debt extinguishment costs | (79 | ) | (378 | ) | — | — | ||||||
Other financing activities | (33 | ) | (88 | ) | (23 | ) | (59 | ) | ||||
Cash (used for) provided by financing activities | (2,929 | ) | (2,624 | ) | (3,607 | ) | 5,632 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (88 | ) | (244 | ) | (22 | ) | 187 | |||||
Change in cash classified as held for sale | — | — | 88 | (31 | ) | |||||||
(Decrease) increase on cash, cash equivalents and restricted cash | (2,851 | ) | (2,890 | ) | 3,811 | (543 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 5,024 | 7,914 | 4,103 | 4,548 | ||||||||
Cash, cash equivalents and restricted cash at end of period1 | $ | 2,173 | $ | 5,024 | $ | 7,914 | $ | 4,005 | ||||
Supplemental cash flow information | ||||||||||||
Cash paid (received) during the period for | ||||||||||||
Interest, net of amounts capitalized | $ | 263 | $ | 923 | $ | 83 | $ | 331 | ||||
Income taxes | 234 | 961 | (215 | ) | 272 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Increase (decrease) on cash, cash equivalents and restricted cash equivalents | 963 | 1,700 | (2,851) | ||||||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 3,873 | 2,173 | 5,024 | ||||||||
Cash, cash equivalents and restricted cash equivalents at end of period2 | $ | 4,836 | $ | 3,873 | $ | 2,173 | |||||
Supplemental cash flow information | |||||||||||
Cash paid during the period for | |||||||||||
Interest, net of amounts capitalized | $ | 30 | $ | 36 | $ | 263 | |||||
Income taxes | 341 | 229 | 234 |
(In millions) | Common Stock | Additional Paid-in Capital "APIC" | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Income (Loss) | Non-controlling Interests | Total Equity | ||||||||||||||||
Balance at January 1, 2019 | $ | — | $ | — | $ | 78,020 | $ | — | $ | (3,360) | $ | 493 | $ | 75,153 | |||||||||
Net income (loss) | (641) | (318) | 18 | (941) | |||||||||||||||||||
Other comprehensive income (loss) | (1,124) | (1,124) | |||||||||||||||||||||
Common dividends ($0.26 per share) | (97) | (97) | (194) | ||||||||||||||||||||
Distributions to Dow and DowDuPont | (317) | (317) | |||||||||||||||||||||
Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||
Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||
Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||
Common Stock Repurchase | (25) | (25) | |||||||||||||||||||||
Contributions from Dow and DowDuPont | 7,396 | 7,396 | |||||||||||||||||||||
Impact of Internal Reorganizations | (56,479) | 1,214 | (231) | (55,496) | |||||||||||||||||||
Reclassification of Divisional Equity to Additional Paid-in Capital | 7 | 28,070 | (28,077) | — | |||||||||||||||||||
Other - net | (3) | (10) | (34) | (47) | |||||||||||||||||||
Balance at December 31, 2019 | $ | 7 | $ | 27,997 | $ | — | $ | (425) | $ | (3,270) | $ | 246 | $ | 24,555 | |||||||||
Net income (loss) | 681 | 20 | 701 | ||||||||||||||||||||
Other comprehensive income (loss) | 380 | 380 | |||||||||||||||||||||
Share-based compensation | 60 | (1) | 59 | ||||||||||||||||||||
Common dividends ($0.52 per share) | (194) | (194) | (388) | ||||||||||||||||||||
Repurchase of common stock | (216) | (59) | (275) | ||||||||||||||||||||
Issuance of Corteva stock | 56 | 56 | |||||||||||||||||||||
Acquisition of a noncontrolling interest in consolidated subsidiaries | (37) | (15) | (52) | ||||||||||||||||||||
Other - net | 41 | (2) | (12) | 27 | |||||||||||||||||||
Balance at December 31, 2020 | $ | 7 | $ | 27,707 | $ | — | $ | (2,890) | $ | 239 | $ | 25,063 | |||||||||||
Net income (loss) | 1,759 | 10 | 1,769 | ||||||||||||||||||||
Other comprehensive income (loss) | (8) | (8) | |||||||||||||||||||||
Share-based compensation | 59 | (3) | 56 | ||||||||||||||||||||
Common dividends ($0.54 per share) | (97) | (300) | (397) | ||||||||||||||||||||
Repurchase of common stock | (18) | (932) | (950) | ||||||||||||||||||||
Issuance of Corteva stock | 100 | 100 | |||||||||||||||||||||
Other - net | (10) | (10) | |||||||||||||||||||||
Balance at December 31, 2021 | $ | 7 | $ | 27,751 | $ | 524 | $ | (2,898) | $ | 239 | $ | 25,623 |
(In millions) | Common Stock | Preferred Stock | Additional Paid-in Capital | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Loss | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||
Predecessor | |||||||||||||||||||||||||||
Balance at January 1, 2017 | $ | 285 | $ | 237 | $ | 11,190 | $ | 14,924 | $ | (9,911 | ) | $ | (6,727 | ) | $ | 198 | $ | 10,196 | |||||||||
Net income | 1,734 | 27 | 1,761 | ||||||||||||||||||||||||
Other comprehensive income | 1,289 | 1,289 | |||||||||||||||||||||||||
Common dividends ($1.14 per share) | (991 | ) | (4 | ) | (995 | ) | |||||||||||||||||||||
Share-based compensation | 2 | 273 | 275 | ||||||||||||||||||||||||
Common stock retired | (26 | ) | (1,044 | ) | (5,657 | ) | 6,727 | — | |||||||||||||||||||
Other | (9 | ) | (9 | ) | |||||||||||||||||||||||
Balance at August 31, 2017 | $ | 261 | $ | 237 | $ | 10,419 | $ | 10,010 | $ | (8,622 | ) | $ | — | $ | 212 | $ | 12,517 | ||||||||||
Successor | |||||||||||||||||||||||||||
Balance at September 1, 2017 (remeasured upon Merger) | $ | — | $ | — | $ | 80,287 | $ | — | $ | (757 | ) | $ | — | $ | 443 | $ | 79,973 | ||||||||||
Net income | 1,182 | 10 | 1,192 | ||||||||||||||||||||||||
Other comprehensive loss | (420 | ) | (420 | ) | |||||||||||||||||||||||
Distributions to Dow and DowDuPont | (1,200 | ) | (1,200 | ) | |||||||||||||||||||||||
Issuance of DowDuPont stock | 30 | 30 | |||||||||||||||||||||||||
Share-based compensation | 36 | 36 | |||||||||||||||||||||||||
Other | (17 | ) | (1 | ) | (18 | ) | |||||||||||||||||||||
Balance at December 31, 2017 | $ | — | $ | — | $ | 80,318 | $ | — | $ | (1,177 | ) | $ | — | $ | 452 | $ | 79,593 | ||||||||||
Net (loss) income | (5,065 | ) | 38 | (5,027 | ) | ||||||||||||||||||||||
Other comprehensive loss | (2,183 | ) | (2,183 | ) | |||||||||||||||||||||||
Distributions to Dow and DowDuPont | (2,806 | ) | (2,806 | ) | |||||||||||||||||||||||
Issuance of DowDuPont stock | 85 | 85 | |||||||||||||||||||||||||
Share-based compensation | 129 | 129 | |||||||||||||||||||||||||
Contributions from Dow and DowDuPont | 5,363 | 5,363 | |||||||||||||||||||||||||
Other | (4 | ) | 3 | (1 | ) | ||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | $ | — | $ | 78,020 | $ | — | $ | (3,360 | ) | $ | — | $ | 493 | $ | 75,153 | ||||||||||
Net (loss) income | (641 | ) | (318 | ) | 18 | (941 | ) | ||||||||||||||||||||
Other comprehensive loss | (1,124 | ) | (1,124 | ) | |||||||||||||||||||||||
Common dividends ($0.26 per share) | (97 | ) | (97 | ) | (194 | ) | |||||||||||||||||||||
Distributions to Dow and DowDuPont | (317 | ) | (317 | ) | |||||||||||||||||||||||
Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||||||
Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||||||
Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||||||
Common Stock Repurchase | (25 | ) | (25 | ) | |||||||||||||||||||||||
Contributions from Dow and DowDuPont | 7,396 | 7,396 | |||||||||||||||||||||||||
Impact of Internal Reorganizations | (56,479 | ) | 1,214 | (231 | ) | (55,496 | ) | ||||||||||||||||||||
Reclassification of Divisional Equity to Additional Paid-in Capital | 7 | 28,070 | (28,077 | ) | — | ||||||||||||||||||||||
Other | (3 | ) | (10 | ) | (34 | ) | (47 | ) | |||||||||||||||||||
Balance at December 31, 2019 | $ | 7 | $ | 27,997 | $ | — | $ | (425 | ) | $ | (3,270 | ) | $ | — | $ | 246 | $ | 24,555 |
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Level 1 | – | Quoted market prices in active markets for identical assets or liabilities; | ||||||
Level 2 | – | Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); | ||||||
Level 3 | – | Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. |
Payments Due In | |||||||||||
(Dollars in millions) | Total at December 31, 2021 | 2022 | 2023 and beyond | ||||||||
Expected cumulative cash requirements for interest payments through maturity | $ | 138 | $ | 20 | $ | 118 | |||||
Purchase obligations1 | 1,363 | 741 | 622 | ||||||||
License agreements2, 3 | 307 | 121 | 186 | ||||||||
Other liabilities2, 4 | 285 | 53 | 232 | ||||||||
Total 5 | $ | 2,093 | $ | 935 | $ | 1,158 |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Net periodic benefit (credit) cost - pension and OPEB | $ | (1,292) | $ | (340) | $ | (163) | |||||
Defined contributions1 | 125 | 127 | 115 | ||||||||
Long-term employee benefit plan (credit) charges - continuing operations | $ | (1,167) | $ | (213) | $ | (48) |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Environmental operating costs | $ | 144 | $ | 138 | $ | 136 | |||||
Environmental remediation costs1 | 46 | 63 | 29 | ||||||||
$ | 190 | $ | 201 | $ | 165 |
(Dollars in millions) | |||||
Balance at December 31, 2019 | $ | 336 | |||
Remediation payments | (57) | ||||
Net increase in remediation accrual 1 | 63 | ||||
Net change, indemnification 2 | (13) | ||||
Balance at December 31, 2020 | $ | 329 | |||
Remediation payments | (35) | ||||
Net increase in remediation accrual 1 | 46 | ||||
Net change, indemnification 2 | 112 | ||||
Balance at December 31, 2021 | $ | 452 |
As of December 31, 2021 | |||||||||||
(In millions) | Indemnification Asset | Accrual balance3,5 | Potential exposure above amount accrued3 | ||||||||
Environmental Remediation Stray Liabilities | |||||||||||
Chemours related obligations - subject to indemnity1,2 | $ | 159 | $ | 159 | $ | 262 | |||||
Other discontinued or divested businesses obligations1 | 15 | 75 | 187 | ||||||||
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2 | 37 | 37 | 66 | ||||||||
Environmental remediation liabilities not subject to indemnity | — | 82 | 49 | ||||||||
Indemnification liabilities related to the MOU4 | 9 | 99 | 28 | ||||||||
Total | $ | 220 | $ | 452 | $ | 592 |
Fair Value (Liability)/Asset | Fair Value Sensitivity | |||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Foreign currency contracts | $ | 44 | $ | (80) | $ | (211) | $ | (388) | ||||||
Marketable securities | $ | — | $ | 226 | $ | — | $ | (36) |
For the Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Accounts Receivable—Allowance for Doubtful Receivables | |||||||||||
Balance at beginning of period | $ | 208 | $ | 174 | $ | 127 | |||||
Additions charged to expenses1 | 6 | 52 | 69 | ||||||||
Deductions from reserves1,2 | (4) | (18) | (22) | ||||||||
Balance at end of period | $ | 210 | $ | 208 | $ | 174 | |||||
Deferred Tax Assets—Valuation Allowance | |||||||||||
Balance at beginning of period | $ | 453 | $ | 457 | $ | 669 | |||||
Additions charged to expenses | 97 | 56 | 20 | ||||||||
Deductions from reserves3 | (184) | (60) | (232) | ||||||||
Balance at end of period | $ | 366 | $ | 453 | $ | 457 |
Exhibit Number | Description | |||||||
Separation and Distribution Agreement by and among DuPont Inc., Dow Inc. and Corteva, Inc. (incorporated by reference to Exhibit No. 2.1 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
Amended and Restated Certificate of Incorporation of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019. | ||||||||
Amended and Restated Bylaws of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 10, 2019. | ||||||||
Amended and Restated Certificate of Incorporation of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.1 to E. I. du Pont de Nemours and Company’s Current Report on Form 8-K (Commission file number 1-815) dated September 1, 2017). | ||||||||
Amended and Restated Bylaws of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated September 1, 2017). | ||||||||
Description of Corteva, Inc. registered securities (incorporated by reference from Exhibit 4.1 to the Company’s Annual Report on Form 10-K (Commission file number 001-38710) filed February 14, 2020). | ||||||||
Description of E. I. du Pont de Nemours and Company registered securities (incorporated by reference from Exhibit 4.2 to the Company’s Annual Report on Form 10-K (Commission file number 001-38710) filed February 14, 2020). | ||||||||
Amended and Restated Tax Matters Agreement, effective as of June 1, 2019 by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit 10.3 of Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed on June 3, 2019). | ||||||||
Employee Matters Agreement by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.2 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
SpecCo/AgCo Intellectual Property Cross-License Agreement, effective as of June 1, 2019, by and among DowDuPont Inc., Corteva, Inc. and the other parties identified therein (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019). | ||||||||
Intellectual Property Cross-License Agreement by and between Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.4 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
Corteva, Inc. 2019 Omnibus Incentive Plan. (incorporated by reference to Exhibit No. 10.5 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
Fondation de Prevoyance en Faveur du Personnel de DuPont de Nemours International SÁRL. (incorporated by reference to Exhibit No. 10.6 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
Amendment No. 1 to Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company, dated August 24, 2017 (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated August 25, 2017). | ||||||||
Tax Matters Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
The E. I. du Pont de Nemours and Company Management Deferred Compensation Plan, incorporated by reference to Exhibit 4.3 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017. | ||||||||
The E. I. du Pont de Nemours and Company Stock Accumulation and Deferred Compensation Plan for Directors, (incorporated by reference to Exhibit 4.4 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017.) | ||||||||
E. I. du Pont de Nemours and Company's Pension Restoration Plan, as last amended effective June 29, 2015 (incorporated by reference to Exhibit 10.3 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
E. I. du Pont de Nemours and Company’s Rules for Lump Sum Payments, as last amended effective May 15, 2014 (incorporated by reference to Exhibit 10.4 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
E. I. du Pont de Nemours and Company’s Retirement Savings Restoration Plan, as last amended effective May 15, 2014. (incorporated by reference to Exhibit 10.08 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2014). | ||||||||
E. I. du Pont de Nemours and Company’s Retirement Income Plan for Directors, as last amended January 2011 (incorporated by reference to Exhibit 10.9 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended March 31, 2012). | ||||||||
Letter Agreement between Charles Victor Magro and Corteva, Inc., dated October 25, 2021 (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 28, 2021). | ||||||||
Letter Agreement between James C. Collins, Jr. and Corteva, Inc., dated June 21, 2021 (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 23, 2021). | ||||||||
Corteva, Inc. Severance Plan (incorporated by reference to Exhibit 10.2 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 28, 2021). | ||||||||
Letter Agreement effective as of June 1, 2019 by and between DowDuPont Inc. and Corteva, Inc. (incorporated by reference to Exhibit 10.2 to Corteva's Current Report on Form 8-K (Commission file number 001-38710) filed June 3, 2019) | ||||||||
Memorandum of Understanding, dated January 22, 2021, by and among The Chemours Company, Corteva, Inc., E. I. du Pont de Nemours and Company and DuPont de Nemours, Inc. (incorporated by reference from the Form 8-K (Commission file number 001-38710) filed January 22, 2021) | ||||||||
Form of Award Terms for Options granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.3 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Award Terms for Performance Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Award Terms for Restricted Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.5 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Special CFO RSU Agreement (incorporated by reference from Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed April 6, 2021). | ||||||||
Agreement dated March 18, 2021, among Corteva, Inc., Starboard Value LP and certain of its affiliates. (incorporated by reference from Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed March 19, 2021). | ||||||||
Corteva, Inc. Global Omnibus Employee Stock Purchase Plan (incorporated by reference from Exhibit 4.3 to Corteva’s Registration Statement on Form S-8 (Commission file number 333-249887), filed November 5, 2020). | ||||||||
Subsidiaries of the Registrant. | ||||||||
Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP - Corteva, Inc. | ||||||||
Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP - E. I. du Pont de Nemours and Company. | ||||||||
Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Executive Officer. | ||||||||
Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Financial Officer. | ||||||||
Section 1350 Certification of the company’s and EID’s Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
Section 1350 Certification of the company’s and EID’s Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File – The Cover Page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101.INS) |
February 10, 2022 | ||||||||
Corteva, Inc. | ||||||||
By: | /s/ Brian Titus | |||||||
Brian Titus Vice President, Controller (Principal Accounting Officer) |
Signature | Title(s) | Date | ||||||||||||
/s/ Charles V. Magro | Chief Executive Officer and Director (Principal Executive Officer) | February 10, 2022 | ||||||||||||
Charles V. Magro | ||||||||||||||
/s/ Gregory R. Page | Non-Executive Chairman of the Board of Directors and Director | February 10, 2022 | ||||||||||||
Gregory R. Page | ||||||||||||||
/s/ Lamberto Andreotti | Director | February 10, 2022 | ||||||||||||
Lamberto Andreotti | ||||||||||||||
/s/ David C. Everitt | Director | February 10, 2022 | ||||||||||||
David C. Everitt | ||||||||||||||
/s/ Klaus Engel | Director | February 10, 2022 | ||||||||||||
Klaus Engel | ||||||||||||||
/s/ Michael O. Johanns | Director | February 10, 2022 | ||||||||||||
Michael O. Johanns | ||||||||||||||
/s/ Janet P. Giesselman | Director | February 10, 2022 | ||||||||||||
Janet P. Giesselman | ||||||||||||||
/s/ Karen H. Grimes | Director | February 10, 2022 | ||||||||||||
Karen H. Grimes | ||||||||||||||
/s/ Rebecca B. Liebert | Director | February 10, 2022 | ||||||||||||
Rebecca B. Liebert | ||||||||||||||
/s/ Marcos M. Lutz | Director | February 10, 2022 | ||||||||||||
Marcos M. Lutz | ||||||||||||||
/s/ Nayaki Nayyar | Director | February 10, 2022 | ||||||||||||
Nayaki Nayyar | ||||||||||||||
/s/ Kerry J. Preete | Director | February 10, 2022 | ||||||||||||
Kerry J. Preete | ||||||||||||||
/s/ Patrick J. Ward | Director | February 10, 2022 | ||||||||||||
Patrick J. Ward | ||||||||||||||
/s/ David J. Anderson | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 10, 2022 | ||||||||||||
David J. Anderson |
February 10, 2022 | ||||||||
E. I. DU PONT DE NEMOURS AND COMPANY | ||||||||
By: | /s/ Brian Titus | |||||||
Brian Titus Vice President, Controller (Principal Accounting Officer) |
Signature | Title(s) | Date | ||||||||||||
/s/ Charles V. Magro | Chief Executive Officer and Director (Principal Executive Officer) | February 10, 2022 | ||||||||||||
Charles V. Magro | ||||||||||||||
/s/ David J. Anderson | Executive Vice President, Chief Financial Officer and Director (Principal Financial Officer) | February 10, 2022 | ||||||||||||
David J. Anderson | ||||||||||||||
Charles V. Magro Chief Executive Officer and Director | David J. Anderson Executive Vice President and Chief Financial Officer |
(In millions, except per share amounts) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net sales | $ | 15,655 | $ | 14,217 | $ | 13,846 | |||||
Cost of goods sold | 9,220 | 8,507 | 8,575 | ||||||||
Research and development expense | 1,187 | 1,142 | 1,147 | ||||||||
Selling, general and administrative expenses | 3,209 | 3,043 | 3,065 | ||||||||
Amortization of intangibles | 722 | 682 | 475 | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 222 | ||||||||
Integration and separation costs | — | — | 744 | ||||||||
Other income - net | 1,348 | 212 | 215 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Interest expense | 30 | 45 | 136 | ||||||||
Income (loss) from continuing operations before income taxes | 2,346 | 675 | (316) | ||||||||
Provision for (benefit from) income taxes on continuing operations | 524 | (81) | (46) | ||||||||
Income (loss) from continuing operations after income taxes | 1,822 | 756 | (270) | ||||||||
(Loss) income from discontinued operations after income taxes | (53) | (55) | (671) | ||||||||
Net income (loss) | 1,769 | 701 | (941) | ||||||||
Net income (loss) attributable to noncontrolling interests | 10 | 20 | 18 | ||||||||
Net income (loss) attributable to Corteva | $ | 1,759 | $ | 681 | $ | (959) | |||||
Basic earnings (loss) per share of common stock: | |||||||||||
Basic earnings (loss) per share of common stock from continuing operations | $ | 2.46 | $ | 0.98 | $ | (0.38) | |||||
Basic earnings (loss) per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Basic earnings (loss) per share of common stock | $ | 2.39 | $ | 0.91 | $ | (1.28) | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Diluted earnings (loss) per share of common stock from continuing operations | $ | 2.44 | $ | 0.98 | $ | (0.38) | |||||
Diluted earnings (loss) per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Diluted earnings (loss) per share of common stock | $ | 2.37 | $ | 0.91 | $ | (1.28) |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net income (loss) | $ | 1,769 | $ | 701 | $ | (941) | |||||
Other comprehensive income (loss) - net of tax: | |||||||||||
Cumulative translation adjustments | (573) | (26) | (274) | ||||||||
Adjustments to pension benefit plans | 1,037 | (186) | (718) | ||||||||
Adjustments to other benefit plans | (621) | 671 | (160) | ||||||||
Unrealized gain (loss) on investments | 10 | (10) | — | ||||||||
Derivative instruments | 139 | (69) | 28 | ||||||||
Total other comprehensive income (loss) | (8) | 380 | (1,124) | ||||||||
Comprehensive income (loss) | 1,761 | 1,081 | (2,065) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests - net of tax | 10 | 20 | 18 | ||||||||
Comprehensive income (loss) attributable to Corteva | $ | 1,751 | $ | 1,061 | $ | (2,083) |
(In millions, except share and per share amounts) | December 31, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 4,459 | $ | 3,526 | ||||
Marketable securities | 86 | 269 | ||||||
Accounts and notes receivable - net | 4,811 | 4,926 | ||||||
Inventories | 5,180 | 4,882 | ||||||
Other current assets | 1,010 | 1,165 | ||||||
Total current assets | 15,546 | 14,768 | ||||||
Investment in nonconsolidated affiliates | 76 | 66 | ||||||
Property, plant and equipment | 8,364 | 8,253 | ||||||
Less: Accumulated depreciation | 4,035 | 3,857 | ||||||
Net property, plant and equipment | 4,329 | 4,396 | ||||||
Goodwill | 10,107 | 10,269 | ||||||
Other intangible assets | 10,044 | 10,747 | ||||||
Deferred income taxes | 438 | 464 | ||||||
Other assets | 1,804 | 1,939 | ||||||
Total Assets | $ | 42,344 | $ | 42,649 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Short-term borrowings and finance lease obligations | $ | 17 | $ | 3 | ||||
Accounts payable | 4,126 | 3,615 | ||||||
Income taxes payable | 146 | 123 | ||||||
Deferred revenue | 3,201 | 2,662 | ||||||
Accrued and other current liabilities | 2,068 | 2,145 | ||||||
Total current liabilities | 9,558 | 8,548 | ||||||
Long-term debt | 1,100 | 1,102 | ||||||
Other noncurrent liabilities | ||||||||
Deferred income tax liabilities | 1,220 | 893 | ||||||
Pension and other post employment benefits - noncurrent | 3,124 | 5,176 | ||||||
Other noncurrent obligations | 1,719 | 1,867 | ||||||
Total noncurrent liabilities | 7,163 | 9,038 | ||||||
Commitments and contingent liabilities | ||||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at December 31, 2021 - 726,527,000 and December 31, 2020 - 743,458,000 | 7 | 7 | ||||||
Additional paid-in capital | 27,751 | 27,707 | ||||||
Retained earnings (accumulated deficit) | 524 | — | ||||||
Accumulated other comprehensive income (loss) | (2,898) | (2,890) | ||||||
Total Corteva stockholders’ equity | 25,384 | 24,824 | ||||||
Noncontrolling interests | 239 | 239 | ||||||
Total equity | 25,623 | 25,063 | ||||||
Total Liabilities and Equity | $ | 42,344 | $ | 42,649 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 1,769 | $ | 701 | $ | (941) | |||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,599 | ||||||||
Provision for (benefit from) deferred income tax | 174 | (330) | (477) | ||||||||
Net periodic pension and OPEB benefit, net | (1,292) | (340) | (177) | ||||||||
Pension and OPEB contributions | (247) | (269) | (323) | ||||||||
Net (gain) loss on sales of property, businesses, consolidated companies, and investments | (21) | 3 | (142) | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 339 | ||||||||
Amortization of inventory step-up | — | — | 272 | ||||||||
Goodwill impairment charge | — | — | 1,102 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Other net loss | 156 | 290 | 246 | ||||||||
Changes in assets and liabilities, net | |||||||||||
Accounts and notes receivable | (113) | 187 | (361) | ||||||||
Inventories | (422) | 104 | 74 | ||||||||
Accounts payable | 524 | (118) | 149 | ||||||||
Deferred revenue | 574 | 71 | 632 | ||||||||
Other assets and liabilities | 93 | 253 | (935) | ||||||||
Cash provided by (used for) operating activities | 2,727 | 2,064 | 1,070 | ||||||||
Investing activities | |||||||||||
Capital expenditures | (573) | (475) | (1,163) | ||||||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 75 | 83 | 249 | ||||||||
Acquisitions of businesses - net of cash acquired | — | — | (10) | ||||||||
Investments in and loans to nonconsolidated affiliates | (4) | (1) | (10) | ||||||||
Proceeds from sale of ownership interest in nonconsolidated affiliates | — | — | 21 | ||||||||
Purchases of investments | (204) | (995) | (138) | ||||||||
Proceeds from sales and maturities of investments | 345 | 721 | 160 | ||||||||
Other investing activities, net | (1) | (7) | (13) | ||||||||
Cash provided by (used for) investing activities | (362) | (674) | (904) | ||||||||
Financing activities | |||||||||||
Net change in borrowings (less than 90 days) | 13 | — | (1,868) | ||||||||
Proceeds from debt | 419 | 2,439 | 1,001 | ||||||||
Payments on debt | (421) | (1,441) | (6,804) | ||||||||
Repurchase of common stock | (950) | (275) | (25) | ||||||||
Proceeds from exercise of stock options | 100 | 56 | 47 | ||||||||
Dividends paid to stockholders | (397) | (388) | (194) | ||||||||
Payment for acquisition of subsidiary's interest from the noncontrolling interest | — | (60) | — | ||||||||
Distributions to DowDuPont | — | — | (317) | ||||||||
Cash transferred to DowDuPont at Internal Reorganizations | — | — | (2,053) | ||||||||
Contributions from Dow and DowDuPont | — | — | 7,396 | ||||||||
Debt extinguishment costs | — | — | (79) | ||||||||
Other financing activities, net | (30) | (28) | (33) | ||||||||
Cash provided by (used for) financing activities | (1,266) | 303 | (2,929) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | (136) | 7 | (88) |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Increase (decrease) on cash, cash equivalents and restricted cash equivalents | 963 | 1,700 | (2,851) | ||||||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 3,873 | 2,173 | 5,024 | ||||||||
Cash, cash equivalents and restricted cash equivalents at end of period2 | $ | 4,836 | $ | 3,873 | $ | 2,173 | |||||
Supplemental cash flow information | |||||||||||
Cash paid during the period for | |||||||||||
Interest, net of amounts capitalized | $ | 30 | $ | 36 | $ | 263 | |||||
Income taxes | 341 | 229 | 234 |
(In millions) | Common Stock | Additional Paid-in Capital "APIC" | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Income (Loss) | Non-controlling Interests | Total Equity | ||||||||||||||||
Balance at January 1, 2019 | $ | — | $ | — | $ | 78,020 | $ | — | $ | (3,360) | $ | 493 | $ | 75,153 | |||||||||
Net income (loss) | (641) | (318) | 18 | (941) | |||||||||||||||||||
Other comprehensive income (loss) | (1,124) | (1,124) | |||||||||||||||||||||
Common dividends ($0.26 per share) | (97) | (97) | (194) | ||||||||||||||||||||
Distributions to Dow and DowDuPont | (317) | (317) | |||||||||||||||||||||
Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||
Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||
Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||
Common Stock Repurchase | (25) | (25) | |||||||||||||||||||||
Contributions from Dow and DowDuPont | 7,396 | 7,396 | |||||||||||||||||||||
Impact of Internal Reorganizations | (56,479) | 1,214 | (231) | (55,496) | |||||||||||||||||||
Reclassification of Divisional Equity to Additional Paid-in Capital | 7 | 28,070 | (28,077) | — | |||||||||||||||||||
Other - net | (3) | (10) | (34) | (47) | |||||||||||||||||||
Balance at December 31, 2019 | $ | 7 | $ | 27,997 | $ | — | $ | (425) | $ | (3,270) | $ | 246 | $ | 24,555 | |||||||||
Net income (loss) | 681 | 20 | 701 | ||||||||||||||||||||
Other comprehensive income (loss) | 380 | 380 | |||||||||||||||||||||
Share-based compensation | 60 | (1) | 59 | ||||||||||||||||||||
Common dividends ($0.52 per share) | (194) | (194) | (388) | ||||||||||||||||||||
Repurchase of common stock | (216) | (59) | (275) | ||||||||||||||||||||
Issuance of Corteva stock | 56 | 56 | |||||||||||||||||||||
Acquisition of a noncontrolling interest in consolidated subsidiaries | (37) | (15) | (52) | ||||||||||||||||||||
Other - net | 41 | (2) | (12) | 27 | |||||||||||||||||||
Balance at December 31, 2020 | $ | 7 | $ | 27,707 | $ | — | $ | (2,890) | $ | 239 | $ | 25,063 | |||||||||||
Net income (loss) | 1,759 | 10 | 1,769 | ||||||||||||||||||||
Other comprehensive income (loss) | (8) | (8) | |||||||||||||||||||||
Share-based compensation | 59 | (3) | 56 | ||||||||||||||||||||
Common dividends ($0.54 per share) | (97) | (300) | (397) | ||||||||||||||||||||
Repurchase of common stock | (18) | (932) | (950) | ||||||||||||||||||||
Issuance of Corteva stock | 100 | 100 | |||||||||||||||||||||
Other - net | (10) | (10) | |||||||||||||||||||||
Balance at December 31, 2021 | $ | 7 | $ | 27,751 | $ | 524 | $ | (2,898) | $ | 239 | $ | 25,623 |
Note | Page | |||||||
1 | F-12 | |||||||
2 | F-14 | |||||||
3 | F-19 | |||||||
4 | F-19 | |||||||
5 | F-20 | |||||||
6 | F-24 | |||||||
7 | F-26 | |||||||
8 | F-28 | |||||||
9 | F-29 | |||||||
10 | F-31 | |||||||
11 | F-35 | |||||||
12 | F-36 | |||||||
13 | F-37 | |||||||
14 | F-37 | |||||||
15 | F-38 | |||||||
16 | F-40 | |||||||
17 | F-42 | |||||||
18 | F-44 | |||||||
19 | F-51 | |||||||
20 | F-54 | |||||||
21 | F-63 | |||||||
22 | F-65 | |||||||
23 | F-71 | |||||||
24 | F-73 | |||||||
25 | F-74 | |||||||
26 | F-78 |
Level 1 | – | Quoted market prices in active markets for identical assets or liabilities; | ||||||
Level 2 | – | Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); | ||||||
Level 3 | – | Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. |
Payments Due In | |||||||||||
(Dollars in millions) | Total at December 31, 2021 | 2022 | 2023 and beyond | ||||||||
Expected cumulative cash requirements for interest payments through maturity | $ | 138 | $ | 20 | $ | 118 | |||||
Purchase obligations1 | 1,363 | 741 | 622 | ||||||||
License agreements2, 3 | 307 | 121 | 186 | ||||||||
Other liabilities2, 4 | 285 | 53 | 232 | ||||||||
Total 5 | $ | 2,093 | $ | 935 | $ | 1,158 |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Net periodic benefit (credit) cost - pension and OPEB | $ | (1,292) | $ | (340) | $ | (163) | |||||
Defined contributions1 | 125 | 127 | 115 | ||||||||
Long-term employee benefit plan (credit) charges - continuing operations | $ | (1,167) | $ | (213) | $ | (48) |
For the Year Ended December 31, | |||||||||||
(Dollars in millions) | 2021 | 2020 | 2019 | ||||||||
Environmental operating costs | $ | 144 | $ | 138 | $ | 136 | |||||
Environmental remediation costs1 | 46 | 63 | 29 | ||||||||
$ | 190 | $ | 201 | $ | 165 |
(Dollars in millions) | |||||
Balance at December 31, 2019 | $ | 336 | |||
Remediation payments | (57) | ||||
Net increase in remediation accrual 1 | 63 | ||||
Net change, indemnification 2 | (13) | ||||
Balance at December 31, 2020 | $ | 329 | |||
Remediation payments | (35) | ||||
Net increase in remediation accrual 1 | 46 | ||||
Net change, indemnification 2 | 112 | ||||
Balance at December 31, 2021 | $ | 452 |
As of December 31, 2021 | |||||||||||
(In millions) | Indemnification Asset | Accrual balance3,5 | Potential exposure above amount accrued3 | ||||||||
Environmental Remediation Stray Liabilities | |||||||||||
Chemours related obligations - subject to indemnity1,2 | $ | 159 | $ | 159 | $ | 262 | |||||
Other discontinued or divested businesses obligations1 | 15 | 75 | 187 | ||||||||
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2 | 37 | 37 | 66 | ||||||||
Environmental remediation liabilities not subject to indemnity | — | 82 | 49 | ||||||||
Indemnification liabilities related to the MOU4 | 9 | 99 | 28 | ||||||||
Total | $ | 220 | $ | 452 | $ | 592 |
Fair Value (Liability)/Asset | Fair Value Sensitivity | |||||||||||||
(Dollars in millions) | 2021 | 2020 | 2021 | 2020 | ||||||||||
Foreign currency contracts | $ | 44 | $ | (80) | $ | (211) | $ | (388) | ||||||
Marketable securities | $ | — | $ | 226 | $ | — | $ | (36) |
For the Year Ended December 31, | |||||||||||
2021 | 2020 | 2019 | |||||||||
Accounts Receivable—Allowance for Doubtful Receivables | |||||||||||
Balance at beginning of period | $ | 208 | $ | 174 | $ | 127 | |||||
Additions charged to expenses1 | 6 | 52 | 69 | ||||||||
Deductions from reserves1,2 | (4) | (18) | (22) | ||||||||
Balance at end of period | $ | 210 | $ | 208 | $ | 174 | |||||
Deferred Tax Assets—Valuation Allowance | |||||||||||
Balance at beginning of period | $ | 453 | $ | 457 | $ | 669 | |||||
Additions charged to expenses | 97 | 56 | 20 | ||||||||
Deductions from reserves3 | (184) | (60) | (232) | ||||||||
Balance at end of period | $ | 366 | $ | 453 | $ | 457 |
Exhibit Number | Description | |||||||
Separation and Distribution Agreement by and among DuPont Inc., Dow Inc. and Corteva, Inc. (incorporated by reference to Exhibit No. 2.1 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
Amended and Restated Certificate of Incorporation of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019. | ||||||||
Amended and Restated Bylaws of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 10, 2019. | ||||||||
Amended and Restated Certificate of Incorporation of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.1 to E. I. du Pont de Nemours and Company’s Current Report on Form 8-K (Commission file number 1-815) dated September 1, 2017). | ||||||||
Amended and Restated Bylaws of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated September 1, 2017). | ||||||||
Description of Corteva, Inc. registered securities (incorporated by reference from Exhibit 4.1 to the Company’s Annual Report on Form 10-K (Commission file number 001-38710) filed February 14, 2020). | ||||||||
Description of E. I. du Pont de Nemours and Company registered securities (incorporated by reference from Exhibit 4.2 to the Company’s Annual Report on Form 10-K (Commission file number 001-38710) filed February 14, 2020). | ||||||||
Amended and Restated Tax Matters Agreement, effective as of June 1, 2019 by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit 10.3 of Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed on June 3, 2019). | ||||||||
Employee Matters Agreement by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.2 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
SpecCo/AgCo Intellectual Property Cross-License Agreement, effective as of June 1, 2019, by and among DowDuPont Inc., Corteva, Inc. and the other parties identified therein (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019). | ||||||||
Intellectual Property Cross-License Agreement by and between Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.4 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
Corteva, Inc. 2019 Omnibus Incentive Plan. (incorporated by reference to Exhibit No. 10.5 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
Fondation de Prevoyance en Faveur du Personnel de DuPont de Nemours International SÁRL. (incorporated by reference to Exhibit No. 10.6 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
Amendment No. 1 to Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company, dated August 24, 2017 (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated August 25, 2017). | ||||||||
Tax Matters Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
The E. I. du Pont de Nemours and Company Management Deferred Compensation Plan, incorporated by reference to Exhibit 4.3 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017. | ||||||||
The E. I. du Pont de Nemours and Company Stock Accumulation and Deferred Compensation Plan for Directors, (incorporated by reference to Exhibit 4.4 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017.) | ||||||||
E. I. du Pont de Nemours and Company's Pension Restoration Plan, as last amended effective June 29, 2015 (incorporated by reference to Exhibit 10.3 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
E. I. du Pont de Nemours and Company’s Rules for Lump Sum Payments, as last amended effective May 15, 2014 (incorporated by reference to Exhibit 10.4 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
E. I. du Pont de Nemours and Company’s Retirement Savings Restoration Plan, as last amended effective May 15, 2014. (incorporated by reference to Exhibit 10.08 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2014). | ||||||||
E. I. du Pont de Nemours and Company’s Retirement Income Plan for Directors, as last amended January 2011 (incorporated by reference to Exhibit 10.9 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended March 31, 2012). | ||||||||
Letter Agreement between Charles Victor Magro and Corteva, Inc., dated October 25, 2021 (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 28, 2021). | ||||||||
Letter Agreement between James C. Collins, Jr. and Corteva, Inc., dated June 21, 2021 (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 23, 2021). | ||||||||
Corteva, Inc. Severance Plan (incorporated by reference to Exhibit 10.2 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 28, 2021). | ||||||||
Letter Agreement effective as of June 1, 2019 by and between DowDuPont Inc. and Corteva, Inc. (incorporated by reference to Exhibit 10.2 to Corteva's Current Report on Form 8-K (Commission file number 001-38710) filed June 3, 2019) | ||||||||
Memorandum of Understanding, dated January 22, 2021, by and among The Chemours Company, Corteva, Inc., E. I. du Pont de Nemours and Company and DuPont de Nemours, Inc. (incorporated by reference from the Form 8-K (Commission file number 001-38710) filed January 22, 2021) | ||||||||
Form of Award Terms for Options granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.3 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Award Terms for Performance Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Award Terms for Restricted Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.5 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
Form of Special CFO RSU Agreement (incorporated by reference from Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed April 6, 2021). | ||||||||
Agreement dated March 18, 2021, among Corteva, Inc., Starboard Value LP and certain of its affiliates. (incorporated by reference from Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed March 19, 2021). | ||||||||
Corteva, Inc. Global Omnibus Employee Stock Purchase Plan (incorporated by reference from Exhibit 4.3 to Corteva’s Registration Statement on Form S-8 (Commission file number 333-249887), filed November 5, 2020). | ||||||||
Subsidiaries of the Registrant. | ||||||||
Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP - Corteva, Inc. | ||||||||
Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP - E. I. du Pont de Nemours and Company. | ||||||||
Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Executive Officer. | ||||||||
Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Financial Officer. | ||||||||
Section 1350 Certification of the company’s and EID’s Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
Section 1350 Certification of the company’s and EID’s Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File – The Cover Page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101.INS) |
February 10, 2022 | ||||||||
Corteva, Inc. | ||||||||
By: | /s/ Brian Titus | |||||||
Brian Titus Vice President, Controller (Principal Accounting Officer) |
Signature | Title(s) | Date | ||||||||||||
/s/ Charles V. Magro | Chief Executive Officer and Director (Principal Executive Officer) | February 10, 2022 | ||||||||||||
Charles V. Magro | ||||||||||||||
/s/ Gregory R. Page | Non-Executive Chairman of the Board of Directors and Director | February 10, 2022 | ||||||||||||
Gregory R. Page | ||||||||||||||
/s/ Lamberto Andreotti | Director | February 10, 2022 | ||||||||||||
Lamberto Andreotti | ||||||||||||||
/s/ David C. Everitt | Director | February 10, 2022 | ||||||||||||
David C. Everitt | ||||||||||||||
/s/ Klaus Engel | Director | February 10, 2022 | ||||||||||||
Klaus Engel | ||||||||||||||
/s/ Michael O. Johanns | Director | February 10, 2022 | ||||||||||||
Michael O. Johanns | ||||||||||||||
/s/ Janet P. Giesselman | Director | February 10, 2022 | ||||||||||||
Janet P. Giesselman | ||||||||||||||
/s/ Karen H. Grimes | Director | February 10, 2022 | ||||||||||||
Karen H. Grimes | ||||||||||||||
/s/ Rebecca B. Liebert | Director | February 10, 2022 | ||||||||||||
Rebecca B. Liebert | ||||||||||||||
/s/ Marcos M. Lutz | Director | February 10, 2022 | ||||||||||||
Marcos M. Lutz | ||||||||||||||
/s/ Nayaki Nayyar | Director | February 10, 2022 | ||||||||||||
Nayaki Nayyar | ||||||||||||||
/s/ Kerry J. Preete | Director | February 10, 2022 | ||||||||||||
Kerry J. Preete | ||||||||||||||
/s/ Patrick J. Ward | Director | February 10, 2022 | ||||||||||||
Patrick J. Ward | ||||||||||||||
/s/ David J. Anderson | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 10, 2022 | ||||||||||||
David J. Anderson |
February 10, 2022 | ||||||||
E. I. DU PONT DE NEMOURS AND COMPANY | ||||||||
By: | /s/ Brian Titus | |||||||
Brian Titus Vice President, Controller (Principal Accounting Officer) |
Signature | Title(s) | Date | ||||||||||||
/s/ Charles V. Magro | Chief Executive Officer and Director (Principal Executive Officer) | February 10, 2022 | ||||||||||||
Charles V. Magro | ||||||||||||||
/s/ David J. Anderson | Executive Vice President, Chief Financial Officer and Director (Principal Financial Officer) | February 10, 2022 | ||||||||||||
David J. Anderson | ||||||||||||||
Charles V. Magro Chief Executive Officer and Director | David J. Anderson Executive Vice President and Chief Financial Officer |
(In millions, except per share amounts) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net sales | $ | 15,655 | $ | 14,217 | $ | 13,846 | |||||
Cost of goods sold | 9,220 | 8,507 | 8,575 | ||||||||
Research and development expense | 1,187 | 1,142 | 1,147 | ||||||||
Selling, general and administrative expenses | 3,209 | 3,043 | 3,065 | ||||||||
Amortization of intangibles | 722 | 682 | 475 | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 222 | ||||||||
Integration and separation costs | — | — | 744 | ||||||||
Other income - net | 1,348 | 212 | 215 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Interest expense | 30 | 45 | 136 | ||||||||
Income (loss) from continuing operations before income taxes | 2,346 | 675 | (316) | ||||||||
Provision for (benefit from) income taxes on continuing operations | 524 | (81) | (46) | ||||||||
Income (loss) from continuing operations after income taxes | 1,822 | 756 | (270) | ||||||||
(Loss) income from discontinued operations after income taxes | (53) | (55) | (671) | ||||||||
Net income (loss) | 1,769 | 701 | (941) | ||||||||
Net income (loss) attributable to noncontrolling interests | 10 | 20 | 18 | ||||||||
Net income (loss) attributable to Corteva | $ | 1,759 | $ | 681 | $ | (959) | |||||
Basic earnings (loss) per share of common stock: | |||||||||||
Basic earnings (loss) per share of common stock from continuing operations | $ | 2.46 | $ | 0.98 | $ | (0.38) | |||||
Basic earnings (loss) per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Basic earnings (loss) per share of common stock | $ | 2.39 | $ | 0.91 | $ | (1.28) | |||||
Diluted earnings (loss) per share of common stock: | |||||||||||
Diluted earnings (loss) per share of common stock from continuing operations | $ | 2.44 | $ | 0.98 | $ | (0.38) | |||||
Diluted earnings (loss) per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Diluted earnings (loss) per share of common stock | $ | 2.37 | $ | 0.91 | $ | (1.28) |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net income (loss) | $ | 1,769 | $ | 701 | $ | (941) | |||||
Other comprehensive income (loss) - net of tax: | |||||||||||
Cumulative translation adjustments | (573) | (26) | (274) | ||||||||
Adjustments to pension benefit plans | 1,037 | (186) | (718) | ||||||||
Adjustments to other benefit plans | (621) | 671 | (160) | ||||||||
Unrealized gain (loss) on investments | 10 | (10) | — | ||||||||
Derivative instruments | 139 | (69) | 28 | ||||||||
Total other comprehensive income (loss) | (8) | 380 | (1,124) | ||||||||
Comprehensive income (loss) | 1,761 | 1,081 | (2,065) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests - net of tax | 10 | 20 | 18 | ||||||||
Comprehensive income (loss) attributable to Corteva | $ | 1,751 | $ | 1,061 | $ | (2,083) |
(In millions, except share and per share amounts) | December 31, 2021 | December 31, 2020 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 4,459 | $ | 3,526 | ||||
Marketable securities | 86 | 269 | ||||||
Accounts and notes receivable - net | 4,811 | 4,926 | ||||||
Inventories | 5,180 | 4,882 | ||||||
Other current assets | 1,010 | 1,165 | ||||||
Total current assets | 15,546 | 14,768 | ||||||
Investment in nonconsolidated affiliates | 76 | 66 | ||||||
Property, plant and equipment | 8,364 | 8,253 | ||||||
Less: Accumulated depreciation | 4,035 | 3,857 | ||||||
Net property, plant and equipment | 4,329 | 4,396 | ||||||
Goodwill | 10,107 | 10,269 | ||||||
Other intangible assets | 10,044 | 10,747 | ||||||
Deferred income taxes | 438 | 464 | ||||||
Other assets | 1,804 | 1,939 | ||||||
Total Assets | $ | 42,344 | $ | 42,649 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Short-term borrowings and finance lease obligations | $ | 17 | $ | 3 | ||||
Accounts payable | 4,126 | 3,615 | ||||||
Income taxes payable | 146 | 123 | ||||||
Deferred revenue | 3,201 | 2,662 | ||||||
Accrued and other current liabilities | 2,068 | 2,145 | ||||||
Total current liabilities | 9,558 | 8,548 | ||||||
Long-term debt | 1,100 | 1,102 | ||||||
Other noncurrent liabilities | ||||||||
Deferred income tax liabilities | 1,220 | 893 | ||||||
Pension and other post employment benefits - noncurrent | 3,124 | 5,176 | ||||||
Other noncurrent obligations | 1,719 | 1,867 | ||||||
Total noncurrent liabilities | 7,163 | 9,038 | ||||||
Commitments and contingent liabilities | ||||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at December 31, 2021 - 726,527,000 and December 31, 2020 - 743,458,000 | 7 | 7 | ||||||
Additional paid-in capital | 27,751 | 27,707 | ||||||
Retained earnings (accumulated deficit) | 524 | — | ||||||
Accumulated other comprehensive income (loss) | (2,898) | (2,890) | ||||||
Total Corteva stockholders’ equity | 25,384 | 24,824 | ||||||
Noncontrolling interests | 239 | 239 | ||||||
Total equity | 25,623 | 25,063 | ||||||
Total Liabilities and Equity | $ | 42,344 | $ | 42,649 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 1,769 | $ | 701 | $ | (941) | |||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,599 | ||||||||
Provision for (benefit from) deferred income tax | 174 | (330) | (477) | ||||||||
Net periodic pension and OPEB benefit, net | (1,292) | (340) | (177) | ||||||||
Pension and OPEB contributions | (247) | (269) | (323) | ||||||||
Net (gain) loss on sales of property, businesses, consolidated companies, and investments | (21) | 3 | (142) | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 339 | ||||||||
Amortization of inventory step-up | — | — | 272 | ||||||||
Goodwill impairment charge | — | — | 1,102 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Other net loss | 156 | 290 | 246 | ||||||||
Changes in assets and liabilities, net | |||||||||||
Accounts and notes receivable | (113) | 187 | (361) | ||||||||
Inventories | (422) | 104 | 74 | ||||||||
Accounts payable | 524 | (118) | 149 | ||||||||
Deferred revenue | 574 | 71 | 632 | ||||||||
Other assets and liabilities | 93 | 253 | (935) | ||||||||
Cash provided by (used for) operating activities | 2,727 | 2,064 | 1,070 | ||||||||
Investing activities | |||||||||||
Capital expenditures | (573) | (475) | (1,163) | ||||||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 75 | 83 | 249 | ||||||||
Acquisitions of businesses - net of cash acquired | — | — | (10) | ||||||||
Investments in and loans to nonconsolidated affiliates | (4) | (1) | (10) | ||||||||
Proceeds from sale of ownership interest in nonconsolidated affiliates | — | — | 21 | ||||||||
Purchases of investments | (204) | (995) | (138) | ||||||||
Proceeds from sales and maturities of investments | 345 | 721 | 160 | ||||||||
Other investing activities, net | (1) | (7) | (13) | ||||||||
Cash provided by (used for) investing activities | (362) | (674) | (904) | ||||||||
Financing activities | |||||||||||
Net change in borrowings (less than 90 days) | 13 | — | (1,868) | ||||||||
Proceeds from debt | 419 | 2,439 | 1,001 | ||||||||
Payments on debt | (421) | (1,441) | (6,804) | ||||||||
Repurchase of common stock | (950) | (275) | (25) | ||||||||
Proceeds from exercise of stock options | 100 | 56 | 47 | ||||||||
Dividends paid to stockholders | (397) | (388) | (194) | ||||||||
Payment for acquisition of subsidiary's interest from the noncontrolling interest | — | (60) | — | ||||||||
Distributions to DowDuPont | — | — | (317) | ||||||||
Cash transferred to DowDuPont at Internal Reorganizations | — | — | (2,053) | ||||||||
Contributions from Dow and DowDuPont | — | — | 7,396 | ||||||||
Debt extinguishment costs | — | — | (79) | ||||||||
Other financing activities, net | (30) | (28) | (33) | ||||||||
Cash provided by (used for) financing activities | (1,266) | 303 | (2,929) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | (136) | 7 | (88) |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Increase (decrease) on cash, cash equivalents and restricted cash equivalents | 963 | 1,700 | (2,851) | ||||||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 3,873 | 2,173 | 5,024 | ||||||||
Cash, cash equivalents and restricted cash equivalents at end of period2 | $ | 4,836 | $ | 3,873 | $ | 2,173 | |||||
Supplemental cash flow information | |||||||||||
Cash paid during the period for | |||||||||||
Interest, net of amounts capitalized | $ | 30 | $ | 36 | $ | 263 | |||||
Income taxes | 341 | 229 | 234 |
(In millions) | Common Stock | Additional Paid-in Capital "APIC" | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Income (Loss) | Non-controlling Interests | Total Equity | ||||||||||||||||
Balance at January 1, 2019 | $ | — | $ | — | $ | 78,020 | $ | — | $ | (3,360) | $ | 493 | $ | 75,153 | |||||||||
Net income (loss) | (641) | (318) | 18 | (941) | |||||||||||||||||||
Other comprehensive income (loss) | (1,124) | (1,124) | |||||||||||||||||||||
Common dividends ($0.26 per share) | (97) | (97) | (194) | ||||||||||||||||||||
Distributions to Dow and DowDuPont | (317) | (317) | |||||||||||||||||||||
Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||
Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||
Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||
Common Stock Repurchase | (25) | (25) | |||||||||||||||||||||
Contributions from Dow and DowDuPont | 7,396 | 7,396 | |||||||||||||||||||||
Impact of Internal Reorganizations | (56,479) | 1,214 | (231) | (55,496) | |||||||||||||||||||
Reclassification of Divisional Equity to Additional Paid-in Capital | 7 | 28,070 | (28,077) | — | |||||||||||||||||||
Other - net | (3) | (10) | (34) | (47) | |||||||||||||||||||
Balance at December 31, 2019 | $ | 7 | $ | 27,997 | $ | — | $ | (425) | $ | (3,270) | $ | 246 | $ | 24,555 | |||||||||
Net income (loss) | 681 | 20 | 701 | ||||||||||||||||||||
Other comprehensive income (loss) | 380 | 380 | |||||||||||||||||||||
Share-based compensation | 60 | (1) | 59 | ||||||||||||||||||||
Common dividends ($0.52 per share) | (194) | (194) | (388) | ||||||||||||||||||||
Repurchase of common stock | (216) | (59) | (275) | ||||||||||||||||||||
Issuance of Corteva stock | 56 | 56 | |||||||||||||||||||||
Acquisition of a noncontrolling interest in consolidated subsidiaries | (37) | (15) | (52) | ||||||||||||||||||||
Other - net | 41 | (2) | (12) | 27 | |||||||||||||||||||
Balance at December 31, 2020 | $ | 7 | $ | 27,707 | $ | — | $ | (2,890) | $ | 239 | $ | 25,063 | |||||||||||
Net income (loss) | 1,759 | 10 | 1,769 | ||||||||||||||||||||
Other comprehensive income (loss) | (8) | (8) | |||||||||||||||||||||
Share-based compensation | 59 | (3) | 56 | ||||||||||||||||||||
Common dividends ($0.54 per share) | (97) | (300) | (397) | ||||||||||||||||||||
Repurchase of common stock | (18) | (932) | (950) | ||||||||||||||||||||
Issuance of Corteva stock | 100 | 100 | |||||||||||||||||||||
Other - net | (10) | (10) | |||||||||||||||||||||
Balance at December 31, 2021 | $ | 7 | $ | 27,751 | $ | 524 | $ | (2,898) | $ | 239 | $ | 25,623 |
Note | Page | |||||||
1 | F-12 | |||||||
2 | F-14 | |||||||
3 | F-19 | |||||||
4 | F-19 | |||||||
5 | F-20 | |||||||
6 | F-24 | |||||||
7 | F-26 | |||||||
8 | F-28 | |||||||
9 | F-29 | |||||||
10 | F-31 | |||||||
11 | F-35 | |||||||
12 | F-36 | |||||||
13 | F-37 | |||||||
14 | F-37 | |||||||
15 | F-38 | |||||||
16 | F-40 | |||||||
17 | F-42 | |||||||
18 | F-44 | |||||||
19 | F-51 | |||||||
20 | F-54 | |||||||
21 | F-63 | |||||||
22 | F-65 | |||||||
23 | F-71 | |||||||
24 | F-73 | |||||||
25 | F-74 | |||||||
26 | F-78 |
Level 1 | – | Quoted market prices in active markets for identical assets or liabilities; | ||||||
Level 2 | – | Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); | ||||||
Level 3 | – | Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. |
(In millions, except per share amounts) | As Reported December 31, 20181 | Effect of Adoption of ASU 2016-02 | Updated January 1, 2019 | ||||||
Assets | |||||||||
Property, plant and equipment - net of accumulated depreciation | $ | 4,544 | $ | 9 | $ | 4,553 | |||
Other assets | $ | 1,932 | $ | 546 | $ | 2,478 | |||
Assets of discontinued operations - non-current | $ | 56,545 | $ | 461 | $ | 57,006 | |||
Liabilities and Equity | |||||||||
Current liabilities | |||||||||
Short-term borrowings and finance lease obligations | $ | 2,154 | $ | 1 | $ | 2,155 | |||
Accrued and other current liabilities | $ | 4,005 | $ | 143 | $ | 4,148 | |||
Liabilities of discontinued operations - current | $ | 3,167 | $ | 141 | $ | 3,308 | |||
Long-Term Debt | $ | 5,784 | $ | 8 | $ | 5,792 | |||
Other noncurrent obligations | $ | 1,795 | $ | 403 | $ | 2,198 | |||
Liabilities of discontinued operations - non-current | $ | 5,484 | $ | 320 | $ | 5,804 |
(In millions) | September 1, 2017 | ||
Cash and cash equivalents | $ | 98 | |
Accounts and notes receivable - net | 1,377 | ||
Inventories | 2,133 | ||
Other current assets | 130 | ||
Investments in nonconsolidated affiliates | 50 | ||
Property, plant and equipment - net | 1,555 | ||
Goodwill | 1,472 | ||
Other intangible assets | 130 | ||
Deferred income taxes | 230 | ||
Other assets | 97 | ||
Short-term borrowings and finance lease obligations | 6 | ||
Accounts payable | 1,414 | ||
Income taxes payable | 103 | ||
Accrued and other current liabilities | 482 | ||
Long-term debt | 27 | ||
Deferred income tax liabilities | 66 | ||
Pension and other post employment benefits - noncurrent | 126 | ||
Other noncurrent obligations | 170 |
For the Year Ended December 31, 2018 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | Corteva | ||||||||
Net Sales | $ | 26,279 | $ | (17,638 | ) | $ | 5,646 | $ | 14,287 | |||
(Loss) income from continuing operations before income taxes | $ | (4,793 | ) | $ | (2,128 | ) | $ | 115 | $ | (6,806 | ) | |
Loss from continuing operations after income taxes | $ | (5,013 | ) | $ | (1,753 | ) | $ | (9 | ) | $ | (6,775 | ) |
For the Period September 1 through December 31, 2017 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | Corteva | ||||||||
Net Sales | $ | 7,053 | $ | (5,477 | ) | $ | 2,214 | $ | 3,790 | |||
(Loss) income from continuing operations before income taxes | $ | (1,586 | ) | $ | 480 | $ | 645 | $ | (461 | ) | ||
Income from continuing operations after income taxes | $ | 1,087 | $ | 485 | $ | 188 | $ | 1,760 |
(In millions) | For the Year Ended December 31, 2019 | ||||
Net sales | $ | 362 | |||
Cost of goods sold | 259 | ||||
Research and development expense | 4 | ||||
Selling, general and administrative expenses | 9 | ||||
Amortization of intangibles | 23 | ||||
Restructuring and asset related charges - net | 2 | ||||
Integration and separation costs | 44 | ||||
Other income - net | 2 | ||||
(Loss) income from discontinued operations before income taxes | 23 | ||||
Provision for (benefit from) income taxes on discontinued operations | 4 | ||||
(Loss) income from discontinued operations after income taxes | $ | 19 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net sales | $ | 362 | $ | 1,564 | $ | 539 | $ | 1,066 | ||||
Cost of goods sold | 259 | 1,082 | 491 | 634 | ||||||||
Research and development expense | 4 | 23 | 8 | 16 | ||||||||
Selling, general and administrative expenses | 9 | 43 | 17 | 101 | ||||||||
Amortization of intangibles | 23 | 96 | 31 | |||||||||
Restructuring and asset related charges - net | 2 | 12 | 16 | — | ||||||||
Integration and separation costs | 44 | 135 | 31 | |||||||||
Other income - net | 2 | 13 | 6 | 23 | ||||||||
Income (loss) from discontinued operations before income taxes | 23 | 186 | (49 | ) | 338 | |||||||
Provision for (benefit from) income taxes on discontinued operations | 4 | 35 | (51 | ) | 108 | |||||||
Income from discontinued operations after income taxes | $ | 19 | $ | 151 | $ | 2 | $ | 230 |
(In millions) | For the Year Ended December 31, 2019 | ||||
Depreciation | $ | 28 | |||
Amortization of intangibles | 23 | ||||
Capital expenditures | 16 | ||||
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Depreciation | $ | 28 | $ | 133 | $ | 44 | $ | 38 | ||||
Amortization of intangibles | $ | 23 | $ | 96 | $ | 31 | $ | — | ||||
Capital expenditures | $ | 16 | $ | 77 | $ | 31 | $ | 49 |
(In millions) | December 31, 2018 | ||
Cash and cash equivalents | $ | 55 | |
Accounts and notes receivable - net | 194 | ||
Inventories | 465 | ||
Other current assets | 12 | ||
Total current assets of discontinued operations | 726 | ||
Investment in nonconsolidated affiliates | 108 | ||
Property, plant and equipment - net | 770 | ||
Goodwill | 3,587 | ||
Other intangible assets | 1,143 | ||
Deferred income taxes | 13 | ||
Other assets | 1 | ||
Non-current assets of discontinued operations | 5,622 | ||
Total assets of discontinued operations | $ | 6,348 | |
Short-term borrowings and finance lease obligations | 2 | ||
Accounts payable | 214 | ||
Accrued and other current liabilities | 36 | ||
Total current liabilities of discontinued operations | 252 | ||
Long-term Debt | 4 | ||
Deferred income tax liabilities | 432 | ||
Pension and other post employment benefits - noncurrent | 6 | ||
Other noncurrent obligations | 2 | ||
Non-current liabilities of discontinued operations | 444 | ||
Total liabilities of discontinued operations | $ | 696 |
(In millions) | For the Year Ended December 31, 2019 | ||||
Net sales | $ | 5,030 | |||
Cost of goods sold | 3,352 | ||||
Research and development expense | 204 | ||||
Selling, general and administrative expenses | 573 | ||||
Amortization of intangibles | 267 | ||||
Restructuring and asset related charges - net | 115 | ||||
Integration and separation costs | 253 | ||||
Goodwill impairment | 1,102 | ||||
Other income - net | 57 | ||||
(Loss) income from discontinued operations before income taxes | (779) | ||||
Provision for (benefit from) income taxes on discontinued operations | 80 | ||||
(Loss) income from discontinued operations after income taxes | $ | (859) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net sales | $ | 5,030 | $ | 15,711 | $ | 4,916 | $ | 9,321 | ||||
Cost of goods sold | 3,352 | 10,533 | 4,269 | 5,978 | ||||||||
Other operating charges | 309 | |||||||||||
Research and development expense | 204 | 626 | 205 | 414 | ||||||||
Selling, general and administrative expenses | 573 | 1,599 | 505 | 1,184 | ||||||||
Amortization of intangibles | 267 | 815 | 268 | |||||||||
Restructuring and asset related charges - net | 115 | 97 | 93 | 311 | ||||||||
Integration and separation costs | 253 | 340 | 79 | |||||||||
Goodwill impairment | 1,102 | — | — | — | ||||||||
Other income - net | 57 | 241 | 60 | 365 | ||||||||
(Loss) income from discontinued operations before income taxes | (779 | ) | 1,942 | (443 | ) | 1,490 | ||||||
Provision for income taxes on discontinued operations | 80 | 340 | 50 | 436 | ||||||||
(Loss) income from discontinued operations after income taxes | $ | (859 | ) | $ | 1,602 | $ | (493 | ) | $ | 1,054 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Depreciation | $ | 281 | $ | 837 | $ | 273 | $ | 396 | ||||
Amortization of intangibles1 | 267 | 815 | 268 | $ | 100 | |||||||
Capital expenditures | 481 | 911 | 271 | $ | 429 |
(In millions) | 2019 | ||||
Depreciation | $ | 281 | |||
Amortization of | 267 | ||||
Capital expenditures | 481 |
(In millions) | December 31, 2018 | ||
Cash and cash equivalents | $ | 2,199 | |
Marketable securities | 29 | ||
Accounts and notes receivable - net | 2,441 | ||
Inventories | 3,452 | ||
Other current assets | 242 | ||
Total current assets of discontinued operations | 8,363 | ||
Investment in nonconsolidated affiliates | 1,185 | ||
Property, plant and equipment - net | 8,138 | ||
Goodwill | 28,250 | ||
Other intangible assets | 13,037 | ||
Deferred income taxes | 122 | ||
Other assets | 191 | ||
Non-current assets of discontinued operations | 50,923 | ||
Total assets of discontinued operations | $ | 59,286 | |
Short-term borrowings and finance lease obligations | 15 | ||
Accounts payable | 1,983 | ||
Income taxes payable | 33 | ||
Accrued and other current liabilities | 884 | ||
Total current liabilities of discontinued operations | 2,915 | ||
Long-term Debt | 29 | ||
Deferred income tax liabilities | 3,624 | ||
Pension and other post employment benefits - noncurrent | 1,125 | ||
Other noncurrent obligations | 262 | ||
Non-current liabilities of discontinued operations | 5,040 | ||
Total liabilities of discontinued operations | $ | 7,955 |
Successor | Predecessor | |||||
(In millions) | For the Period September 1 through December 31, 20171 | For the Period January 1 through August 31, 2017 | ||||
Net sales | $ | 199 | $ | 1,068 | ||
Cost of goods sold | 194 | 412 | ||||
Other operating charges | 17 | |||||
Research and development expenses | 30 | 95 | ||||
Selling, general and administrative expenses2 | 102 | 146 | ||||
Other income - net | — | 7 | ||||
(Loss) income from discontinued operations before income taxes | (127 | ) | 405 | |||
(Benefit from) provision for income taxes | (50 | ) | 79 | |||
(Loss) income from discontinued operations after income taxes | $ | (77 | ) | $ | 326 |
Successor | Predecessor | |||||
(In millions) | For the Period September 1 through December 31, 20171 | For the Period January 1 through August 31, 2017 | ||||
Depreciation | $ | — | $ | 21 | ||
Capital expenditures | $ | 5 | $ | 8 |
Predecessor | |||
(In millions) | For the Period January 1 through August 31, 2017 | ||
Other operating charges | $ | 335 | |
Other income - net | 3 | ||
Loss from discontinued operations before income taxes | (332 | ) | |
Benefit from income taxes on discontinued operations | (125 | ) | |
Loss from discontinued operations after income taxes | $ | (207 | ) |
Contract Balances | December 31, 2019 | December 31, 2018 | Contract Balances | December 31, 2021 | December 31, 2020 | |||||||||
(In millions) | (In millions) | |||||||||||||
Accounts and notes receivable - trade1 | $ | 4,396 | $ | 3,843 | Accounts and notes receivable - trade1 | $ | 3,561 | $ | 3,917 | |||||
Contract assets - current2 | $ | 20 | $ | 18 | Contract assets - current2 | $ | 24 | $ | 22 | |||||
Contract assets - noncurrent3 | $ | 49 | $ | 46 | Contract assets - noncurrent3 | $ | 58 | $ | 54 | |||||
Deferred revenue - current4 | $ | 2,584 | $ | 2,209 | ||||||||||
Deferred revenue - noncurrent5 | $ | 108 | $ | 150 | ||||||||||
Deferred revenue - current | Deferred revenue - current | $ | 3,201 | $ | 2,662 | |||||||||
Deferred revenue - noncurrent4 | Deferred revenue - noncurrent4 | $ | 120 | $ | 116 |
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. |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Corn | $ | 5,618 | $ | 5,182 | $ | 5,126 | |||||
Soybean | 1,568 | 1,445 | 1,387 | ||||||||
Other oilseeds | 752 | 619 | 593 | ||||||||
Other | 464 | 510 | 484 | ||||||||
Seed | 8,402 | 7,756 | 7,590 | ||||||||
Herbicides | 3,815 | 3,280 | 3,206 | ||||||||
Insecticides | 1,730 | 1,764 | 1,652 | ||||||||
Fungicides | 1,310 | 1,032 | 1,072 | ||||||||
Other | 398 | 385 | 326 | ||||||||
Crop Protection | 7,253 | 6,461 | 6,256 | ||||||||
Total | $ | 15,655 | $ | 14,217 | $ | 13,846 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Corn | $ | 5,111 | $ | 5,180 | $ | 1,205 | $ | 3,941 | ||||
Soybean | 1,371 | 1,494 | 163 | 1,384 | ||||||||
Other oilseeds | 561 | 607 | 143 | 423 | ||||||||
Other | 547 | 561 | 9 | 117 | ||||||||
Seed | 7,590 | 7,842 | 1,520 | 5,865 | ||||||||
Herbicides | 3,270 | 3,415 | 1,150 | 377 | ||||||||
Insecticides | 1,652 | 1,506 | 567 | 108 | ||||||||
Fungicides | 1,081 | 1,142 | 406 | 544 | ||||||||
Other | 253 | 382 | 147 | — | ||||||||
Crop Protection | 6,256 | 6,445 | 2,270 | 1,029 | ||||||||
Total | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 |
Seed | For the Year Ended December 31, | ||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
North America1 | $ | 5,004 | $ | 4,795 | $ | 4,724 | |||||
EMEA2 | 1,599 | 1,468 | 1,378 | ||||||||
Latin America | 1,420 | 1,117 | 1,130 | ||||||||
Asia Pacific | 379 | 376 | 358 | ||||||||
Total | $ | 8,402 | $ | 7,756 | $ | 7,590 |
Seed | Successor | Predecessor | ||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
North America1 | $ | 4,724 | $ | 4,974 | $ | 437 | $ | 4,227 | ||||
EMEA2 | 1,378 | 1,408 | 256 | 1,017 | ||||||||
Asia Pacific | 358 | 358 | 107 | 231 | ||||||||
Latin America | 1,130 | 1,102 | 720 | 390 | ||||||||
Total | $ | 7,590 | $ | 7,842 | $ | 1,520 | $ | 5,865 |
Crop Protection | For the Year Ended December 31, | ||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
North America1 | $ | 2,532 | $ | 2,373 | $ | 2,205 | |||||
EMEA2 | 1,524 | 1,374 | 1,362 | ||||||||
Latin America | 2,125 | 1,688 | 1,759 | ||||||||
Asia Pacific | 1,072 | 1,026 | 930 | ||||||||
Total | $ | 7,253 | $ | 6,461 | $ | 6,256 |
Crop Protection | Successor | Predecessor | ||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
North America | $ | 2,205 | $ | 2,438 | $ | 787 | $ | 352 | ||||
EMEA | 1,362 | 1,357 | 279 | 270 | ||||||||
Asia Pacific | 930 | 935 | 321 | 149 | ||||||||
Latin America | 1,759 | 1,715 | 883 | 258 | ||||||||
Total | $ | 6,256 | $ | 6,445 | $ | 2,270 | $ | 1,029 |
(In millions) | For the Year Ended December 31, 2021 | ||||
Seed | $ | 31 | |||
Crop Protection | 55 | ||||
Corporate expenses | 81 | ||||
Total | $ | 167 |
(In millions) | For the Year Ended December 31, 2021 | ||||
Severance and related benefit costs | $ | 74 | |||
Asset related charges | 51 | ||||
Contract termination charges | 42 | ||||
Total restructuring and asset charges - net | $ | 167 |
(In millions) | Severance and Related Benefit Costs | Asset Related1 | Contract Termination2 | Total | ||||||||||
Balance at December 31, 2020 | $ | — | $ | — | $ | — | $ | — | ||||||
Charges to income from continuing operations | 74 | 51 | 42 | 167 | ||||||||||
Payments | (22) | — | (30) | (52) | ||||||||||
Asset write-offs | — | (51) | — | (51) | ||||||||||
Balance at December 31, 2021 | $ | 52 | $ | — | $ | 12 | $ | 64 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||
Seed | $ | 3 | $ | 5 | ||
Crop Protection | (4 | ) | 1 | |||
Corporate expenses | (13 | ) | 78 | |||
Total | $ | (14 | ) | $ | 84 |
For the Year Ended December 31, | ||||||||
(In millions) | 2021 | 2020 | ||||||
Seed | $ | — | $ | 15 | ||||
Crop Protection | 11 | 98 | ||||||
Corporate expenses | (2) | 63 | ||||||
Total | $ | 9 | $ | 176 |
For the Year Ended December 31, | ||||||||
(In millions) | 2021 | 2020 | ||||||
Severance and related benefit costs - net | $ | (2) | $ | 63 | ||||
Asset related charges | 11 | 113 | ||||||
Total restructuring and asset related charges - net | $ | 9 | $ | 176 |
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||
Severance and related benefit (credits) costs - net | $ | (17 | ) | $ | 78 | |
Asset related charges | 3 | 6 | ||||
Total restructuring and asset related (benefits) charges - net | $ | (14 | ) | $ | 84 |
(In millions) | Severance and Related Benefit (Credits) Costs | Asset Related1 | Total | ||||||||
Balance at December 31, 2020 | $ | 53 | $ | 3 | $ | 56 | |||||
Charges to income from continuing operations for the year ended December 31, 2021 | (2) | 11 | 9 | ||||||||
Payments | (27) | (3) | (30) | ||||||||
Asset write-offs | — | (11) | (11) | ||||||||
Balance at December 31, 2021 | $ | 24 | $ | — | $ | 24 |
(In millions) | Severance and Related Benefit (Credits) Costs | Asset Related Charges | Total | ||||||
Balance at December 31, 2018 | $ | 77 | $ | — | $ | 77 | |||
(Benefits) charges to loss from continuing operations for the year ended December 31, 2019 | (17 | ) | 3 | (14 | ) | ||||
Payments | (45 | ) | — | (45 | ) | ||||
Asset write-offs | — | (3 | ) | (3 | ) | ||||
Separation adjustment1 | (6 | ) | — | (6 | ) | ||||
Balance at December 31, 2019 | $ | 9 | $ | — | $ | 9 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Seed | $ | (8) | $ | (9) | $ | 66 | |||||
Crop Protection | (3) | 11 | 27 | ||||||||
Corporate expenses | (1) | (2) | (1) | ||||||||
Total | $ | (12) | $ | — | $ | 92 |
Successor | |||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | ||||||
Seed | $ | 66 | $ | 237 | $ | 133 | |||
Crop Protection | 27 | 57 | (2 | ) | |||||
Corporate expenses | (1 | ) | 190 | 138 | |||||
Total | $ | 92 | $ | 484 | $ | 269 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Severance and related benefit (credits) costs - net | $ | (1) | $ | (2) | $ | (7) | |||||
Contract termination charges | (3) | — | 69 | ||||||||
Asset related charges | (8) | 2 | 30 | ||||||||
Total restructuring and asset related charges - net | $ | (12) | $ | — | $ | 92 |
Successor | |||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | ||||||
Severance and related benefit (credits) costs - net | $ | (7 | ) | $ | 191 | $ | 135 | ||
Contract termination charges | 69 | 84 | 40 | ||||||
Asset related charges | 30 | 209 | 94 | ||||||
Total restructuring and asset related charges - net | $ | 92 | $ | 484 | $ | 269 |
(In millions) | Severance and Related Benefit (Credits) Costs | Costs Associated with Exit and Disposal Activities1 | Asset Related Charges | Total | ||||||||
Balance at December 31, 2018 | $ | 154 | $ | 61 | $ | — | $ | 215 | ||||
(Benefits) charges to loss from continuing operations for the year ended December 31, 2019 | (7 | ) | 69 | 30 | 92 | |||||||
Payments | (118 | ) | (90 | ) | (1 | ) | (209 | ) | ||||
Asset write-offs | — | — | (29 | ) | (29 | ) | ||||||
Balance at December 31, 2019 | $ | 29 | $ | 40 | $ | — | $ | 69 |
Other Income - Net | For the Year Ended December 31, | ||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Interest income | $ | 77 | $ | 56 | $ | 59 | |||||
Equity in earnings (losses) of affiliates - net | 14 | — | (9) | ||||||||
Net gain (loss) on sales of businesses and other assets1 | 21 | (2) | 64 | ||||||||
Net exchange gains (losses)2 | (54) | (174) | (99) | ||||||||
Non-operating pension and other post employment benefit credit (costs)3 | 1,318 | 368 | 191 | ||||||||
Miscellaneous income (expenses) - net4 | (28) | (36) | 9 | ||||||||
Other income - net | $ | 1,348 | $ | 212 | $ | 215 |
Other Income (Expense) - Net | Successor | Predecessor | ||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Royalty Income1 | $ | 60 | ||||||||||
Interest income | $ | 59 | $ | 86 | $ | 50 | 59 | |||||
Equity in losses of affiliates - net | (9 | ) | (1 | ) | (3 | ) | (7 | ) | ||||
Net gain on sales of businesses and other assets2 | 64 | 62 | 689 | 10 | ||||||||
Net exchange losses3,4 | (99 | ) | (127 | ) | (23 | ) | (364 | ) | ||||
Non-operating pension and other post employment benefit credit (cost)5 | 191 | 275 | 103 | (296 | ) | |||||||
Miscellaneous income (expenses) - net6 | 9 | (46 | ) | (11 | ) | 37 | ||||||
Other income (expense) - net | $ | 215 | $ | 249 | $ | 805 | $ | (501 | ) |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Subsidiary Monetary Position Gain (Loss) | |||||||||||
Pre-tax exchange gain (loss) | $ | (72) | $ | (263) | $ | (41) | |||||
Local tax (expenses) benefits | (30) | 34 | 2 | ||||||||
Net after-tax impact from subsidiary exchange gain (loss) | $ | (102) | $ | (229) | $ | (39) | |||||
Hedging Program Gain (Loss) | |||||||||||
Pre-tax exchange gain (loss) | $ | 18 | $ | 89 | $ | (58) | |||||
Tax (expenses) benefits | (4) | (21) | 13 | ||||||||
Net after-tax impact from hedging program exchange gain (loss) | $ | 14 | $ | 68 | $ | (45) | |||||
Total Exchange Gain (Loss) | |||||||||||
Pre-tax exchange gain (loss) | $ | (54) | $ | (174) | $ | (99) | |||||
Tax (expenses) benefits | (34) | 13 | 15 | ||||||||
Net after-tax exchange gain (loss) | $ | (88) | $ | (161) | $ | (84) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Subsidiary Monetary Position (Loss) Gain | ||||||||||||
Pre-tax exchange (loss) gain1 | $ | (41 | ) | $ | (221 | ) | $ | (114 | ) | $ | 67 | |
Local tax benefits (expenses) | 2 | (31 | ) | 4 | 216 | |||||||
Net after-tax impact from subsidiary exchange (loss) gain | $ | (39 | ) | $ | (252 | ) | $ | (110 | ) | $ | 283 | |
Hedging Program (Loss) Gain | ||||||||||||
Pre-tax exchange (loss) gain2 | $ | (58 | ) | $ | 94 | $ | 91 | $ | (431 | ) | ||
Tax benefits (expenses) | 13 | (21 | ) | (33 | ) | 155 | ||||||
Net after-tax impact from hedging program exchange (loss) gain | $ | (45 | ) | $ | 73 | $ | 58 | $ | (276 | ) | ||
Total Exchange (Loss) Gain | ||||||||||||
Pre-tax exchange loss1,2 | $ | (99 | ) | $ | (127 | ) | $ | (23 | ) | $ | (364 | ) |
Tax benefits (expenses) | 15 | (52 | ) | (29 | ) | 371 | ||||||
Net after-tax exchange (loss) gain | $ | (84 | ) | $ | (179 | ) | $ | (52 | ) | $ | 7 |
(In millions) | December 31, 2021 | December 31, 2020 | ||||||
Cash and cash equivalents | $ | 4,459 | $ | 3,526 | ||||
Restricted cash equivalents | 377 | 347 | ||||||
Total cash, cash equivalents and restricted cash equivalents | $ | 4,836 | $ | 3,873 |
(In millions) | December 31, 2019 | December 31, 2018 | ||||
Cash and cash equivalents | $ | 1,764 | $ | 2,270 | ||
Restricted cash | 409 | 460 | ||||
Total cash, cash equivalents and restricted cash | 2,173 | 2,730 | ||||
Cash and cash equivalents of discontinued operations1 | — | 2,254 | ||||
Restricted cash of discontinued operations2 | — | 40 | ||||
Total cash, cash equivalents and restricted cash | $ | 2,173 | $ | 5,024 |
Geographic Allocation of (Loss) Income and Provision for (Benefit from) Income Taxes | Successor | Predecessor | |||||||||||||||||||||
Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | For the Year Ended December 31, | |||||||||||||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | (In millions) | 2021 | 2020 | 2019 | |||||||||||||||
(Loss) Income from continuing operations before income taxes | |||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | Income (loss) from continuing operations before income taxes | ||||||||||||||||||||||
Domestic | $ | (1,352 | ) | $ | (5,040 | ) | $ | (961 | ) | $ | (519 | ) | Domestic | $ | 941 | $ | (83) | $ | (1,352) | ||||
Foreign | 1,036 | (1,766 | ) | 500 | 482 | Foreign | 1,405 | 758 | 1,036 | ||||||||||||||
Loss from continuing operations before income taxes | $ | (316 | ) | $ | (6,806 | ) | $ | (461 | ) | $ | (37 | ) | |||||||||||
Income (loss) from continuing operations before income taxes | Income (loss) from continuing operations before income taxes | $ | 2,346 | $ | 675 | $ | (316) | ||||||||||||||||
Current tax expense (benefit) | Current tax expense (benefit) | ||||||||||||||||||||||
Federal | $ | (11 | ) | $ | (112 | ) | $ | 8 | $ | (581 | ) | Federal | $ | (13) | $ | 28 | $ | (11) | |||||
State and local | 1 | (32 | ) | 11 | (117 | ) | State and local | 6 | 9 | 1 | |||||||||||||
Foreign | 317 | 446 | 287 | 81 | Foreign | 329 | 222 | 317 | |||||||||||||||
Total current tax expense (benefit) | $ | 307 | $ | 302 | $ | 306 | $ | (617 | ) | Total current tax expense (benefit) | $ | 322 | $ | 259 | $ | 307 | |||||||
Deferred tax (benefit) expense | |||||||||||||||||||||||
Deferred tax expense (benefit) | Deferred tax expense (benefit) | ||||||||||||||||||||||
Federal | $ | (392 | ) | $ | (124 | ) | $ | (2,373 | ) | $ | 188 | Federal | $ | 164 | $ | (116) | $ | (392) | |||||
State and local | 156 | (39 | ) | 3 | 79 | State and local | 55 | 27 | 156 | ||||||||||||||
Foreign | (117 | ) | (170 | ) | (157 | ) | (45 | ) | Foreign | (17) | (251) | (117) | |||||||||||
Total deferred tax (benefit) expense | $ | (353 | ) | $ | (333 | ) | $ | (2,527 | ) | $ | 222 | ||||||||||||
Benefit from income taxes on continuing operations | (46 | ) | (31 | ) | (2,221 | ) | (395 | ) | |||||||||||||||
Net (loss) income from continuing operations after taxes | $ | (270 | ) | $ | (6,775 | ) | $ | 1,760 | $ | 358 | |||||||||||||
Total deferred tax expense (benefit) | Total deferred tax expense (benefit) | $ | 202 | $ | (340) | $ | (353) | ||||||||||||||||
Provision for (benefit from) income taxes on continuing operations | Provision for (benefit from) income taxes on continuing operations | 524 | (81) | (46) | |||||||||||||||||||
Net income (loss) from continuing operations after taxes | Net income (loss) from continuing operations after taxes | $ | 1,822 | $ | 756 | $ | (270) |
Reconciliation to U.S. Statutory Rate | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
Effective tax rates on international operations - net 1 | (2.5) | (13.9) | (18.4) | ||||||||
Acquisitions, divestitures and ownership restructuring activities 2 | (0.1) | (0.3) | (10.7) | ||||||||
U.S. research and development credit | (2.4) | (2.9) | 7.0 | ||||||||
Exchange gains/losses 3 | 1.9 | 3.5 | (1.8) | ||||||||
State and local incomes taxes - net | 2.1 | 4.0 | 3.2 | ||||||||
Impact of Swiss Tax Reform4 | 0.2 | (27.0) | 11.9 | ||||||||
Excess tax benefits/deficiencies from stock compensation | (0.2) | 1.0 | (0.6) | ||||||||
Tax settlements and expiration of statute of limitations | — | 0.4 | 3.9 | ||||||||
Other - net | 2.3 | 2.2 | (0.9) | ||||||||
Effective tax rate on income from continuing operations | 22.3 | % | (12.0) | % | 14.6 | % |
Deferred Tax Balances at December 31, | 2021 | 2020 | ||||||||||||
(In millions) | Assets | Liabilities | Assets | Liabilities | ||||||||||
Property1 | $ | — | $ | 341 | $ | — | $ | 297 | ||||||
Tax loss and credit carryforwards2,3 | 464 | — | 497 | — | ||||||||||
Accrued employee benefits | 904 | — | 1,415 | — | ||||||||||
Other accruals and reserves1 | 309 | — | 365 | — | ||||||||||
Intangibles | — | 2,260 | — | 2,418 | ||||||||||
Inventory | 153 | — | 127 | — | ||||||||||
Research and development capitalization | 224 | — | 186 | — | ||||||||||
Investments | 36 | — | 56 | — | ||||||||||
Unrealized exchange gains/losses | — | 10 | 2 | — | ||||||||||
Other – net | 105 | — | 91 | — | ||||||||||
Subtotal | $ | 2,195 | $ | 2,611 | $ | 2,739 | $ | 2,715 | ||||||
Valuation allowances3 | (366) | — | (453) | — | ||||||||||
Total | $ | 1,829 | $ | 2,611 | $ | 2,286 | $ | 2,715 | ||||||
Net Deferred Tax Asset (Liability) | $ | (782) | $ | (429) |
Operating Loss and Tax Credit Carryforwards | Deferred Tax Asset | |||||||
(In millions) | 2021 | 2020 | ||||||
Operating loss carryforwards | ||||||||
Expire within 5 years | $ | 123 | $ | 99 | ||||
Expire after 5 years or indefinite expiration | 210 | 343 | ||||||
Total operating loss carryforwards | $ | 333 | $ | 442 | ||||
Tax credit carryforwards | ||||||||
Expire within 5 years | $ | 14 | $ | 14 | ||||
Expire after 5 years or indefinite expiration | 117 | 41 | ||||||
Total tax credit carryforwards | $ | 131 | $ | 55 | ||||
Total Operating Loss and Tax Credit Carryforwards | $ | 464 | $ | 497 |
Reconciliation to U.S. Statutory Rate | Successor | Predecessor | ||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | 35.0 | % |
Equity earning effect | 0.1 | 0.1 | 1.9 | (2.7 | ) | |||
Effective tax rates on international operations - net 1 | (18.4 | ) | 0.4 | 24.3 | 244.9 | |||
Acquisitions, divestitures and ownership restructuring activities 2, 3, 4 | (10.7 | ) | (2.3 | ) | 63.0 | (64.7 | ) | |
U.S. research and development credit | 7.0 | 0.1 | 1.4 | 24.4 | ||||
Exchange gains/losses 5 | (1.8 | ) | (1.3 | ) | (8.8 | ) | 650.1 | |
SAB 118 Impact of Enactment of U.S. Tax Reform6 | — | (3.0 | ) | 371.2 | — | |||
Impact of Swiss Tax Reform7 | 11.9 | — | — | — | ||||
Excess tax benefits (tax deficiency) from stock compensation | (0.6 | ) | 0.1 | 1.0 | 38.3 | |||
Tax settlements and expiration of statute of limitations8 | 3.9 | (0.1 | ) | — | 146.4 | |||
Goodwill impairment 9 | — | (15.2 | ) | — | — | |||
Other - net | 2.2 | 0.7 | (7.2 | ) | (4.1 | ) | ||
Effective tax rate on income from continuing operations | 14.6 | % | 0.5 | % | 481.8 | % | 1,067.6 | % |
Total Gross Unrecognized Tax Benefits | For the Year Ended December 31, | ||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Total unrecognized tax benefits as of beginning of period | $ | 395 | $ | 426 | $ | 749 | |||||
Decreases related to positions taken on items from prior years | (7) | (14) | (167) | ||||||||
Increases related to positions taken on items from prior years | 13 | 5 | 77 | ||||||||
Increases related to positions taken in the current year | 9 | 6 | 54 | ||||||||
Settlement of uncertain tax positions with tax authorities | (17) | (18) | (9) | ||||||||
Impact of Internal Reorganizations | — | — | (278) | ||||||||
Decreases due to expiration of statutes of limitations | (16) | (7) | — | ||||||||
Exchange (gain) loss | — | (3) | — | ||||||||
Total unrecognized tax benefits as of end of period | $ | 377 | $ | 395 | $ | 426 | |||||
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | 157 | $ | 156 | $ | 188 | |||||
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations | $ | 1 | $ | (2) | $ | (4) | |||||
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period | $ | 11 | $ | 18 | $ | 24 |
Deferred Tax Balances at December 31 | 2019 | 2018 | ||||||||||
(In millions) | Assets | Liabilities | Assets | Liabilities | ||||||||
Property | $ | — | $ | 369 | $ | — | $ | 344 | ||||
Tax loss and credit carryforwards1 | 761 | — | 842 | — | ||||||||
Accrued employee benefits | 1,717 | — | 1,392 | — | ||||||||
Other accruals and reserves | 135 | — | 263 | — | ||||||||
Intangibles | — | 2,738 | — | 2,648 | ||||||||
Inventory | 25 | — | — | 40 | ||||||||
Long-term debt | — | — | 24 | — | ||||||||
Investments | 53 | — | 7 | — | ||||||||
Unrealized exchange gains/losses | — | 39 | — | 140 | ||||||||
Other – net | 279 | — | 137 | — | ||||||||
Subtotal | $ | 2,970 | $ | 3,146 | $ | 2,665 | $ | 3,172 | ||||
Valuation allowances2 | (457 | ) | — | (669 | ) | — | ||||||
Total | $ | 2,513 | $ | 3,146 | $ | 1,996 | $ | 3,172 | ||||
Net Deferred Tax Liability | $ | (633 | ) | $ | (1,176 | ) |
Operating Loss and Tax Credit Carryforwards | Deferred Tax Asset | |||||
(In millions) | 2019 | 2018 | ||||
Operating loss carryforwards | ||||||
Expire within 5 years | $ | 131 | $ | 78 | ||
Expire after 5 years or indefinite expiration | 400 | 559 | ||||
Total operating loss carryforwards | $ | 531 | $ | 637 | ||
Tax credit carryforwards | ||||||
Expire within 5 years | $ | 30 | $ | 27 | ||
Expire after 5 years or indefinite expiration | 200 | 178 | ||||
Total tax credit carryforwards | $ | 230 | $ | 205 | ||
Total Operating Loss and Tax Credit Carryforwards | $ | 761 | $ | 842 |
Total Gross Unrecognized Tax Benefits | Successor | Predecessor | ||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Total unrecognized tax benefits as of beginning of period | $ | 749 | $ | 741 | $ | 709 | $ | 596 | ||||
Decreases related to positions taken on items from prior years | (167 | ) | (44 | ) | (2 | ) | (19 | ) | ||||
Increases related to positions taken on items from prior years | 77 | 74 | 9 | 3 | ||||||||
Increases related to positions taken in the current year | 54 | 9 | 28 | 49 | ||||||||
Settlement of uncertain tax positions with tax authorities | (9 | ) | (13 | ) | 1 | (6 | ) | |||||
Impact of Internal Reorganizations | (278 | ) | — | — | — | |||||||
Decreases due to expiration of statutes of limitations | — | (5 | ) | (5 | ) | (86 | ) | |||||
Exchange (gain) loss | — | (13 | ) | 1 | 1 | |||||||
Total unrecognized tax benefits as of end of period | $ | 426 | $ | 749 | $ | 741 | $ | 538 | ||||
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | 188 | $ | 45 | $ | 51 | $ | 131 | ||||
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations | $ | (4 | ) | $ | 11 | $ | 1 | $ | (27 | ) | ||
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period | $ | 24 | $ | 45 | $ | 47 | $ | 40 |
Tax Years Subject to Examination by Major Tax Jurisdiction at | Earliest Open Year | ||||
Jurisdiction | |||||
Argentina | |||||
Brazil | 2014 | ||||
Canada | |||||
China | |||||
France | |||||
India | |||||
Italy | |||||
Switzerland | |||||
United States: | |||||
Federal income tax | 2012 | ||||
State and local income tax |
Net Income (Loss) for Earnings Per Share Calculations - Basic and Diluted | For the Year Ended December 31, | ||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Income (loss) from continuing operations after income taxes | $ | 1,822 | $ | 756 | $ | (270) | |||||
Net income (loss) attributable to continuing operations noncontrolling interests | 10 | 20 | 13 | ||||||||
Income (loss) from continuing operations attributable to Corteva common stockholders | 1,812 | 736 | (283) | ||||||||
(Loss) income from discontinued operations, net of tax | (53) | (55) | (671) | ||||||||
Net income (loss) attributable to discontinued operations noncontrolling interests | — | — | 5 | ||||||||
(Loss) income from discontinued operations attributable to Corteva common stockholders | (53) | (55) | (676) | ||||||||
Net income (loss) attributable to common stockholders | $ | 1,759 | $ | 681 | $ | (959) |
Net (Loss) Income for Earnings Per Share Calculations - Basic and Diluted | Successor | Predecessor | ||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
(Loss) income from continuing operations after income taxes | $ | (270 | ) | $ | (6,775 | ) | $ | 1,760 | $ | 358 | ||
Net income attributable to continuing operations noncontrolling interests | 13 | 29 | 10 | 8 | ||||||||
(Loss) income from continuing operations attributable to Corteva common stockholders | (283 | ) | (6,804 | ) | 1,750 | 350 | ||||||
(Loss) income from discontinued operations, net of tax | (671 | ) | 1,748 | (568 | ) | 1,403 | ||||||
Net income attributable to discontinued operations noncontrolling interests | 5 | 9 | — | 19 | ||||||||
(Loss) income from discontinued operations attributable to Corteva common stockholders | (676 | ) | 1,739 | (568 | ) | 1,384 | ||||||
Net (loss) income attributable to common stockholders | $ | (959 | ) | $ | (5,065 | ) | $ | 1,182 | $ | 1,734 |
Earnings (Loss) Per Share Calculations - Basic | For the Year Ended December 31, | ||||||||||
(Dollars per share) | 2021 | 2020 | 2019 | ||||||||
Earnings (loss) per share of common stock from continuing operations | $ | 2.46 | $ | 0.98 | $ | (0.38) | |||||
(Loss) earnings per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Earnings (loss) per share of common stock | $ | 2.39 | $ | 0.91 | $ | (1.28) |
(Loss) Earnings Per Share Calculations - Basic | Successor | Predecessor | ||||||||||
(Dollars per share) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
(Loss) earnings per share of common stock from continuing operations | $ | (0.38 | ) | $ | (9.08 | ) | $ | 2.34 | $ | 0.40 | ||
(Loss) earnings per share of common stock from discontinued operations | (0.90 | ) | 2.32 | (0.76 | ) | 1.60 | ||||||
(Loss) earnings per share of common stock | $ | (1.28 | ) | $ | (6.76 | ) | $ | 1.58 | $ | 2.00 |
Earnings (Loss) Per Share Calculations - Diluted | For the Year Ended December 31, | ||||||||||
(Dollars per share) | 2021 | 2020 | 2019 | ||||||||
Earnings (loss) per share of common stock from continuing operations | $ | 2.44 | $ | 0.98 | $ | (0.38) | |||||
(Loss) earnings per share of common stock from discontinued operations | (0.07) | (0.07) | (0.90) | ||||||||
Earnings (loss) per share of common stock | $ | 2.37 | $ | 0.91 | $ | (1.28) |
Share Count Information | For the Year Ended December 31, | ||||||||||
(Shares in millions) | 2021 | 2020 | 2019 | ||||||||
Weighted-average common shares - basic1 | 735.9 | 748.7 | 749.5 | ||||||||
Plus dilutive effect of equity compensation plans2 | 5.7 | 2.5 | — | ||||||||
Weighted-average common shares - diluted | 741.6 | 751.2 | 749.5 | ||||||||
Potential shares of common stock excluded from EPS calculations3 | 2.8 | 9.4 | 14.4 |
(Loss) Earnings Per Share Calculations - Diluted | Successor | Predecessor | ||||||||||
(Dollars per share) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
(Loss) earnings per share of common stock from continuing operations | $ | (0.38 | ) | $ | (9.08 | ) | $ | 2.34 | $ | 0.40 | ||
(Loss) earnings per share of common stock from discontinued operations | (0.90 | ) | 2.32 | (0.76 | ) | 1.59 | ||||||
(Loss) earnings per share of common stock | $ | (1.28 | ) | $ | (6.76 | ) | $ | 1.58 | $ | 1.99 |
Share Count Information | Successor | Predecessor | ||||||
(Shares in millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||
Weighted-average common shares - basic1 | 749.5 | 749.4 | 749.4 | 867.9 | ||||
Plus dilutive effect of equity compensation plans2 | — | — | — | 4.5 | ||||
Weighted-average common shares - diluted | 749.5 | 749.4 | 749.4 | 872.4 | ||||
Potential shares of common stock excluded from EPS calculations3 | 14.4 | — | — | — |
(In millions) | December 31, 2021 | December 31, 2020 | ||||||
Accounts receivable – trade1 | $ | 3,441 | $ | 3,754 | ||||
Notes receivable – trade1,2 | 120 | 163 | ||||||
Other3 | 1,250 | 1,009 | ||||||
Total accounts and notes receivable - net | $ | 4,811 | $ | 4,926 |
(In millions) | December 31, 2019 | December 31, 2018 | ||||
Accounts receivable – trade1 | $ | 4,225 | $ | 3,649 | ||
Notes receivable – trade2 | 171 | 194 | ||||
Other3 | 1,132 | 1,417 | ||||
Total accounts and notes receivable - net | $ | 5,528 | $ | 5,260 |
3.Other includes receivables in relation to indemnification assets, value added tax, general sales tax and other taxes. No individual group represents more than 10 percent of total receivables. In addition, Other includes amounts due from nonconsolidated affiliates of $104 million and $106 million as of December 31, 2021 and 2020, respectively. |
(In millions) | |||||
2020 | |||||
Balance at December 31, 2019 | $ | 174 | |||
Net provision for credit losses1 | 52 | ||||
Write-offs charged against allowance / other1 | (18) | ||||
Balance at December 31, 2020 | $ | 208 | |||
2021 | |||||
Balance at December 31, 2020 | $ | 208 | |||
Net provision for credit losses | 1 | ||||
Write-offs charged against allowance / other | 1 | ||||
Balance at December 31, 2021 | $ | 210 |
(In millions) | December 31, 2019 | December 31, 2018 | ||||
Finished products | $ | 2,684 | $ | 3,022 | ||
Semi-finished products | 1,850 | 1,821 | ||||
Raw materials and supplies | 498 | 467 | ||||
Total inventories | $ | 5,032 | $ | 5,310 |
(In millions) | December 31, 2021 | December 31, 2020 | ||||||
Finished products | $ | 2,497 | $ | 2,584 | ||||
Semi-finished products | 2,076 | 1,813 | ||||||
Raw materials and supplies | 607 | 485 | ||||||
Total inventories | $ | 5,180 | $ | 4,882 |
(In millions) | December 31, 2019 | December 31, 2018 | ||||
Land and land improvements | $ | 459 | $ | 468 | ||
Buildings | 1,508 | 1,430 | ||||
Machinery and equipment | 5,323 | 4,863 | ||||
Construction in progress | 582 | 579 | ||||
Total property, plant and equipment | 7,872 | 7,340 | ||||
Accumulated depreciation | (3,326 | ) | (2,796 | ) | ||
Total property, plant and equipment - net | $ | 4,546 | $ | 4,544 |
(In millions) | December 31, 2021 | December 31, 2020 | ||||||
Land and land improvements | $ | 420 | $ | 451 | ||||
Buildings | 1,487 | 1,525 | ||||||
Machinery and equipment | 5,729 | 5,556 | ||||||
Construction in progress | 728 | 721 | ||||||
Total property, plant and equipment | 8,364 | 8,253 | ||||||
Accumulated depreciation | (4,035) | (3,857) | ||||||
Total property, plant and equipment - net | $ | 4,329 | $ | 4,396 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Depreciation expense | $ | 521 | $ | 495 | $ | 525 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Depreciation expense | $ | 525 | $ | 518 | $ | 173 | $ | 154 |
(In millions) | Agriculture | Crop Protection | Seed | Total | ||||||||
Balance as of December 31, 2017 | $ | 14,873 | $ | — | $ | — | $ | 14,873 | ||||
Currency translation adjustment | (271 | ) | — | — | (271 | ) | ||||||
Measurement period adjustments - Merger1 | 94 | — | — | 94 | ||||||||
Goodwill impairment | (4,503 | ) | — | — | (4,503 | ) | ||||||
Balance as of December 31, 2018 | $ | 10,193 | $ | — | $ | — | $ | 10,193 | ||||
Currency translation adjustment | (28 | ) | — | — | (28 | ) | ||||||
Other goodwill adjustments and acquisitions2 | 14 | — | — | 14 | ||||||||
Realignment of segments | (10,179 | ) | 4,726 | 5,453 | — | |||||||
Balance as of June 1, 2019 | — | 4,726 | 5,453 | 10,179 | ||||||||
Currency translation adjustment | — | 28 | 32 | 60 | ||||||||
Other goodwill adjustments and acquisitions3 | — | (11 | ) | 1 | (10 | ) | ||||||
Balance as of December 31, 2019 | $ | — | $ | 4,743 | $ | 5,486 | $ | 10,229 |
|
(In millions) | December 31, 2021 | December 31, 2020 | ||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||
Intangible assets subject to amortization (Definite-lived): | ||||||||||||||||||||
Germplasm | $ | 6,265 | $ | (571) | $ | 5,694 | $ | 6,265 | $ | (317) | $ | 5,948 | ||||||||
Customer-related | 1,953 | (487) | 1,466 | 1,984 | (380) | 1,604 | ||||||||||||||
Developed technology | 1,485 | (679) | 806 | 1,451 | (525) | 926 | ||||||||||||||
Trademarks/trade names1 | 2,012 | (172) | 1,840 | 2,019 | (99) | 1,920 | ||||||||||||||
Favorable supply contracts | 475 | (396) | 79 | 475 | (302) | 173 | ||||||||||||||
Other2 | 405 | (256) | 149 | 405 | (239) | 166 | ||||||||||||||
Total other intangible assets with finite lives | 12,595 | (2,561) | 10,034 | 12,599 | (1,862) | 10,737 | ||||||||||||||
Intangible assets not subject to amortization (Indefinite-lived): | ||||||||||||||||||||
IPR&D | 10 | — | 10 | 10 | — | 10 | ||||||||||||||
Total other intangible assets | 10 | — | 10 | 10 | — | 10 | ||||||||||||||
Total | $ | 12,605 | $ | (2,561) | $ | 10,044 | $ | 12,609 | $ | (1,862) | $ | 10,747 |
(In millions) | December 31, 2019 | December 31, 2018 | ||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||
Intangible assets subject to amortization (Definite-lived): | ||||||||||||||||||
Germplasm1 | $ | 6,265 | $ | (63 | ) | $ | 6,202 | |||||||||||
Customer-related | 1,977 | (268 | ) | 1,709 | 1,985 | (154 | ) | 1,831 | ||||||||||
Developed technology2 | 1,463 | (370 | ) | 1,093 | 974 | (163 | ) | 811 | ||||||||||
Trademarks/trade names | 166 | (86 | ) | 80 | 180 | (92 | ) | 88 | ||||||||||
Favorable supply contracts | 475 | (207 | ) | 268 | 475 | (111 | ) | 364 | ||||||||||
Other3 | 404 | (213 | ) | 191 | 538 | (300 | ) | 238 | ||||||||||
Total other intangible assets with finite lives | 10,750 | (1,207 | ) | 9,543 | 4,152 | (820 | ) | 3,332 | ||||||||||
Intangible assets not subject to amortization (Indefinite-lived): | ||||||||||||||||||
IPR&D2 | 10 | — | 10 | 576 | — | 576 | ||||||||||||
Germplasm1 | 6,265 | — | 6,265 | |||||||||||||||
Trademarks / trade names | 1,871 | — | 1,871 | 1,871 | — | 1,871 | ||||||||||||
Other | — | — | — | 11 | — | 11 | ||||||||||||
Total other intangible assets | 1,881 | — | 1,881 | 8,723 | — | 8,723 | ||||||||||||
Total | $ | 12,631 | $ | (1,207 | ) | $ | 11,424 | $ | 12,875 | $ | (820 | ) | $ | 12,055 |
2.Primarily consists of sales and farmer networks, marketing and manufacturing alliances and noncompetition agreements. |
(In millions) | |||||
2022 | $ | 700 | |||
2023 | $ | 620 | |||
2024 | $ | 606 | |||
2025 | $ | 569 | |||
2026 | $ | 558 |
(In millions) | |||
2020 | $ | 657 | |
2021 | $ | 649 | |
2022 | $ | 628 | |
2023 | $ | 548 | |
2024 | $ | 532 |
For the Year Ended December 31, | ||||||||
(In millions) | 2021 | 2020 | ||||||
Operating lease cost | $ | 158 | $ | 197 | ||||
Finance lease cost | ||||||||
Amortization of right-of-use assets | 1 | 2 | ||||||
Interest on lease liabilities | — | — | ||||||
Total finance lease cost | 1 | 2 | ||||||
Short-term lease cost | 14 | 14 | ||||||
Variable lease cost | 8 | 7 | ||||||
Total lease cost | $ | 181 | $ | 220 |
(In millions) | For the Year Ended December 31, 2019 | ||
Operating lease cost | $ | 166 | |
Finance lease cost | |||
Amortization of right-of-use assets | 10 | ||
Interest on lease liabilities | 1 | ||
Total finance lease cost | 11 | ||
Short-term lease cost | 17 | ||
Variable lease cost | 7 | ||
Total lease cost | $ | 201 |
For the Year Ended December 31, | ||||||||
(In millions) | 2021 | 2020 | ||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash outflows from operating leases | $ | 169 | $ | 202 | ||||
Operating cash outflows from finance leases | $ | — | $ | — | ||||
Financing cash outflows from finance leases | $ | 1 | $ | 1 |
(In millions) | For the Year Ended December 31, 2019 | ||
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash outflows from operating leases | $ | 174 | |
Operating cash outflows from finance leases | $ | 1 | |
Financing cash outflows from finance leases | $ | 9 |
(In millions) | December 31, 2021 | December 31, 2020 | ||||||
Operating Leases | ||||||||
Operating lease right-of-use assets1 | $ | 458 | $ | 521 | ||||
Current operating lease liabilities2 | 121 | 138 | ||||||
Noncurrent operating lease liabilities3 | 338 | 391 | ||||||
Total operating lease liabilities | $ | 459 | $ | 529 | ||||
Finance Leases | ||||||||
Property, plant, and equipment, gross | $ | 15 | $ | 15 | ||||
Accumulated depreciation | (11) | (10) | ||||||
Property, plant, and equipment, net | 4 | 5 | ||||||
Short-term borrowings and finance lease obligations | 1 | 1 | ||||||
Long-Term Debt | 3 | 4 | ||||||
Total finance lease liabilities | $ | 4 | $ | 5 |
(In millions) | December 31, 2019 | ||
Operating Leases | |||
Operating lease right-of-use assets1 | $ | 555 | |
Current operating lease liabilities2 | 140 | ||
Noncurrent operating lease liabilities3 | 426 | ||
Total operating lease liabilities | $ | 566 | |
Finance Leases | |||
Property, plant, and equipment, gross | $ | 15 | |
Accumulated depreciation | (8 | ) | |
Property, plant, and equipment, net | 7 | ||
Short-term borrowings and finance lease obligations | 4 | ||
Long-Term Debt | 5 | ||
Total finance lease liabilities | $ | 9 |
2.Included in accrued and other current liabilities in the Consolidated Balance Sheet. 3.Included in other noncurrent obligations in the Consolidated Balance Sheet. |
Lease Term and Discount Rate | December 31, 2021 | December 31, 2020 | ||||||
Weighted-average remaining lease term (years) | ||||||||
Operating leases | 7.41 | 7.71 | ||||||
Financing leases | 3.36 | 4.26 | ||||||
Weighted average discount rate | ||||||||
Operating leases | 2.75 | % | 3.06 | % | ||||
Financing leases | 3.29 | % | 3.28 | % |
Maturity of Lease Liabilities at December 31, 2019 | Operating Leases | Financing Leases | ||||
(In millions) | ||||||
2020 | $ | 154 | $ | 4 | ||
2021 | 120 | 2 | ||||
2022 | 93 | 1 | ||||
2023 | 67 | 1 | ||||
2024 | 47 | 1 | ||||
2025 and thereafter | 167 | 1 | ||||
Total lease payments | 648 | 10 | ||||
Less: Interest | 82 | 1 | ||||
Present value of lease liabilities | $ | 566 | $ | 9 |
Maturity of Lease Liabilities at December 31, 2021 | Operating Leases | Financing Leases | ||||||
(In millions) | ||||||||
2022 | $ | 132 | $ | 1 | ||||
2023 | 94 | 1 | ||||||
2024 | 71 | 1 | ||||||
2025 | 60 | 1 | ||||||
2026 | 49 | — | ||||||
2027 and thereafter | 106 | — | ||||||
Total lease payments | 512 | 4 | ||||||
Less: Interest | 53 | — | ||||||
Present value of lease liabilities | $ | 459 | $ | 4 |
Future Minimum Lease Commitments at December 31, 2018 (In millions) | December 31, 20181 | ||
2019 | $ | 169 | |
2020 | 99 | ||
2021 | 72 | ||
2022 | 56 | ||
2023 | 38 | ||
2024 and thereafter | 78 | ||
Total | $ | 512 |
Short-term borrowings and finance lease obligations | ||||||
(In millions) | December 31, 2019 | December 31, 2018 | ||||
Commercial paper | $ | — | $ | 1,847 | ||
Other loans - various currencies | 2 | 19 | ||||
Long-term debt payable within one year | 1 | 263 | ||||
Finance lease obligations payable within one year | 4 | 25 | ||||
Total short-term borrowings and finance lease obligations | $ | 7 | $ | 2,154 |
Maturity of Lease Liabilities at December 31, 2020 | Operating Leases | Financing Leases | ||||||
(In millions) | ||||||||
2021 | $ | 152 | $ | 1 | ||||
2022 | 114 | 1 | ||||||
2023 | 83 | 1 | ||||||
2024 | 61 | 1 | ||||||
2025 | 51 | 1 | ||||||
2026 and thereafter | 137 | — | ||||||
Total lease payments | 598 | 5 | ||||||
Less: Interest | 69 | — | ||||||
Present value of lease liabilities | $ | 529 | $ | 5 |
Long-Term Debt | ||||||||||
December 31, 2019 | December 31, 2018 | |||||||||
(In millions) | Amount | Weighted Average Rate | Amount | Weighted Average Rate | ||||||
Promissory notes and debentures1: | ||||||||||
Final maturity 2019 | — | — | % | 263 | 2.23 | % | ||||
Final maturity 2020 | — | — | % | 2,496 | 2.14 | % | ||||
Final maturity 2021 | — | — | % | 475 | 2.08 | % | ||||
Final maturity 2023 | — | — | % | 386 | 2.48 | % | ||||
Final maturity 2024 and thereafter | — | — | % | 249 | 3.69 | % | ||||
Other facilities: | ||||||||||
Term loan due 20202 | — | — | % | 2,000 | 3.46 | % | ||||
Other loans: | ||||||||||
Foreign currency loans, various rates and maturities | 2 | 3 | ||||||||
Medium-term notes, varying maturities through 2041 | 109 | 1.61 | % | 110 | 2.37 | % | ||||
Finance lease obligations | 5 | 67 | ||||||||
Less: Unamortized debt discount and issuance costs | — | 2 | ||||||||
Less: Long-term debt due within one year | 1 | 263 | ||||||||
Total | $ | 115 | $ | 5,784 |
Long-Term Debt | |||||||||||||||||
December 31, 2021 | December 31, 2020 | ||||||||||||||||
(In millions) | Amount | Weighted Average Rate | Amount | Weighted Average Rate | |||||||||||||
Promissory notes and debentures: | |||||||||||||||||
Maturing in 2025 | 500 | 1.70 | % | 500 | 1.70 | % | |||||||||||
Maturing in 2030 | 500 | 2.30 | % | 500 | 2.30 | % | |||||||||||
Other loans: | |||||||||||||||||
Foreign currency loans, various rates and maturities | 1 | 1 | |||||||||||||||
Medium-term notes, varying maturities through 2041 | 107 | — | % | 109 | — | % | |||||||||||
Finance lease obligations | 3 | 4 | |||||||||||||||
Less: Unamortized debt discount and issuance costs | 10 | 11 | |||||||||||||||
Less: Long-term debt due within one year | 1 | 1 | |||||||||||||||
Total | $ | 1,100 | $ | 1,102 |
Committed and Available Credit Facilities at December 31, 2021 | |||||||||||||||||
(In millions) | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||||
Revolving Credit Facility | May 2019 | $ | 3,000 | $ | 3,000 | May 2024 | Floating Rate | ||||||||||
Revolving Credit Facility | May 2019 | 3,000 | 3,000 | May 2023 | Floating Rate | ||||||||||||
Total Committed and Available Credit Facilities | $ | 6,000 | $ | 6,000 |
Committed and Available Credit Facilities at December 31, 2019 | |||||||||
(In millions) | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||
Revolving Credit Facility | May 2019 | $ | 3,000 | $ | 3,000 | May 2024 | Floating Rate | ||
Revolving Credit Facility | May 2019 | 3,000 | 3,000 | May 2022 | Floating Rate | ||||
Total Committed and Available Credit Facilities | $ | 6,000 | $ | 6,000 |
(in millions) | Amount | ||||
4.625% Notes due 2020 | $ | 474 | |||
3.625% Notes due 2021 | 296 | ||||
4.250% Notes due 2021 | 163 | ||||
2.800% Notes due 2023 | 381 | ||||
6.500% Debentures due 2028 | 57 | ||||
5.600% Senior Notes due 2036 | 42 | ||||
4.900% Notes due 2041 | 48 | ||||
4.150% Notes due 2043 | 69 | ||||
Total | $ | 1,530 |
(in millions) | Amount | ||
4.625% Notes due 2020 | $ | 474 | |
3.625% Notes due 2021 | 296 | ||
4.250% Notes due 2021 | 163 | ||
2.800% Notes due 2023 | 381 | ||
6.500% Debentures due 2028 | 57 | ||
5.600% Senior Notes due 2036 | 42 | ||
4.900% Notes due 2041 | 48 | ||
4.150% Notes due 2043 | 69 | ||
Total | $ | 1,530 |
As of December 31, 2021 | |||||||||||
(In millions) | Indemnification Asset | Accrual balance3 | Potential exposure above amount accrued3 | ||||||||
Environmental Remediation Stray Liabilities | |||||||||||
Chemours related obligations - subject to indemnity1,2 | $ | 159 | $ | 159 | $ | 262 | |||||
Other discontinued or divested businesses obligations1 | 15 | 75 | 187 | ||||||||
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2 | 37 | 37 | 66 | ||||||||
Environmental remediation liabilities not subject to indemnity | — | 82 | 49 | ||||||||
Indemnification liabilities related to the MOU4 | 9 | 99 | 28 | ||||||||
Total | $ | 220 | $ | 452 | $ | 592 |
As of December 31, 2019 | |||||||||
(In millions) | Indemnification Asset | Accrual balance3 | Potential exposure above amount accrued3 | ||||||
Environmental Remediation Stray Liabilities | |||||||||
Chemours related obligations - subject to indemnity1,2 | $ | 167 | $ | 167 | $ | 285 | |||
Other discontinued or divested businesses obligations1 | — | 91 | 221 | ||||||
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2 | 35 | 35 | 60 | ||||||
Environmental remediation liabilities not subject to indemnity | — | 43 | 54 | ||||||
Total | $ | 202 | $ | 336 | $ | 620 |
Shares of common stock | Issued | |||||||
Balance June 1, 2019 | 748,815,000 | |||||||
Issued | 586,000 | |||||||
Repurchased and retired | (824,000) | |||||||
Balance December 31, 2019 | 748,577,000 | |||||||
Issued | 3,384,000 | |||||||
Repurchased and retired | (8,503,000) | |||||||
Balance December 31, 2020 | 743,458,000 | |||||||
Issued | 4,019,000 | |||||||
Repurchased and retired | (20,950,000) | |||||||
Balance December 31, |
(Shares in | Number of Shares | ||||
Authorized | 23,000 | ||||
$4.50 Series, callable at $120 | 1,673 | ||||
$3.50 Series, callable at $102 | 700 |
(In millions) | Cumulative Translation Adjustment1 | Derivative Instruments | Pension Benefit Plans | Other Benefit Plans | Unrealized Gain (Loss) on Investments | Total | ||||||||||||||
2019 | ||||||||||||||||||||
Balance January 1, 2019 | $ | (2,793) | $ | (26) | $ | (620) | $ | 79 | $ | — | $ | (3,360) | ||||||||
Other comprehensive income (loss) before reclassifications | (274) | 16 | (723) | (159) | — | (1,140) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 12 | 5 | (1) | — | 16 | ||||||||||||||
Net other comprehensive income (loss) | (274) | 28 | (718) | (160) | — | (1,124) | ||||||||||||||
Impact of Internal Reorganizations | 1,123 | — | 91 | — | — | 1,214 | ||||||||||||||
Balance December 31, 2019 | $ | (1,944) | $ | 2 | $ | (1,247) | $ | (81) | $ | — | $ | (3,270) | ||||||||
2020 | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ | (26) | $ | (81) | $ | (191) | $ | 670 | $ | (10) | $ | 362 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | 12 | 5 | 1 | — | 18 | ||||||||||||||
Net other comprehensive income (loss) | (26) | (69) | (186) | 671 | (10) | 380 | ||||||||||||||
Balance December 31, 2020 | $ | (1,970) | $ | (67) | $ | (1,433) | $ | 590 | $ | (10) | $ | (2,890) | ||||||||
2021 | ||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | $ | (573) | $ | 143 | $ | 996 | $ | 25 | $ | 3 | $ | 594 | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (4) | 41 | (646) | 7 | (602) | ||||||||||||||
Net other comprehensive income (loss) | (573) | 139 | 1,037 | (621) | 10 | (8) | ||||||||||||||
Balance December 31, 2021 | $ | (2,543) | $ | 72 | $ | (396) | $ | (31) | $ | — | $ | (2,898) |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Derivative instruments | $ | (41) | $ | 24 | $ | (8) | |||||
Pension benefit plans - net | (319) | 54 | 231 | ||||||||
Other benefit plans - net | 188 | (211) | 52 | ||||||||
(Provision for) benefit from income taxes related to other comprehensive income (loss) items | $ | (172) | $ | (133) | $ | 275 |
(In millions) | Cumulative Translation Adjustment1 | Derivative Instruments | Pension Benefit Plans | Other Benefit Plans | Unrealized Gain (Loss) on Investments | Total | ||||||||||||
2017 | ||||||||||||||||||
Balance January 1, 2017 (Predecessor) | $ | (2,843 | ) | $ | 7 | $ | (6,720 | ) | $ | (357 | ) | $ | 2 | $ | (9,911 | ) | ||
Other comprehensive income (loss) before reclassifications | 1,042 | 3 | (78 | ) | — | 1 | 968 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (13 | ) | 325 | 10 | (1 | ) | 321 | ||||||||||
Net other comprehensive income (loss) | 1,042 | (10 | ) | 247 | 10 | — | 1,289 | |||||||||||
Balance August 31, 2017 (Predecessor) | $ | (1,801 | ) | $ | (3 | ) | $ | (6,473 | ) | $ | (347 | ) | $ | 2 | $ | (8,622 | ) | |
Balance September 1, 2017 (Successor)2 | $ | (727 | ) | $ | — | $ | (30 | ) | $ | — | $ | — | $ | (757 | ) | |||
Other comprehensive (loss) income before reclassifications | (490 | ) | (2 | ) | 129 | (53 | ) | — | (416 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | (4 | ) | — | — | (4 | ) | ||||||||||
Net other comprehensive (loss) income | (490 | ) | (2 | ) | 125 | (53 | ) | — | (420 | ) | ||||||||
Balance December 31, 2017 (Successor) | $ | (1,217 | ) | $ | (2 | ) | $ | 95 | $ | (53 | ) | $ | — | $ | (1,177 | ) | ||
2018 | ||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (1,576 | ) | (19 | ) | (724 | ) | 132 | — | (2,187 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | (5 | ) | 9 | — | — | 4 | |||||||||||
Net other comprehensive (loss) income | (1,576 | ) | (24 | ) | (715 | ) | 132 | — | (2,183 | ) | ||||||||
Balance December 31, 2018 (Successor) | $ | (2,793 | ) | $ | (26 | ) | $ | (620 | ) | $ | 79 | $ | — | $ | (3,360 | ) | ||
2019 | ||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (274 | ) | 16 | (723 | ) | (159 | ) | — | (1,140 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 12 | 5 | (1 | ) | — | 16 | |||||||||||
Net other comprehensive (loss) income | (274 | ) | 28 | (718 | ) | (160 | ) | — | (1,124 | ) | ||||||||
Impact of Internal Reorganizations | 1,123 | — | 91 | — | — | 1,214 | ||||||||||||
Balance December 31, 2019 (Successor) | $ | (1,944 | ) | $ | 2 | $ | (1,247 | ) | $ | (81 | ) | $ | — | $ | (3,270 | ) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Derivative instruments | $ | (8 | ) | $ | 6 | $ | 1 | $ | 6 | |||
Pension benefit plans - net | 231 | 199 | (36 | ) | (145 | ) | ||||||
Other benefit plans - net | 52 | (40 | ) | 15 | (5 | ) | ||||||
Benefit from (provision for) income taxes related to other comprehensive income (loss) items | $ | 275 | $ | 165 | $ | (20 | ) | $ | (144 | ) |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Derivative Instruments1: | $ | (13) | $ | 18 | $ | 13 | |||||
Tax (benefit) expense2 | 9 | (6) | (1) | ||||||||
After-tax | $ | (4) | $ | 12 | $ | 12 | |||||
Amortization of pension benefit plans: | |||||||||||
Prior service (benefit) cost3,4 | $ | (2) | $ | (1) | $ | (1) | |||||
Actuarial (gains) losses3,4,5 | 55 | 4 | 2 | ||||||||
Settlement (gain) loss3,4,5 | 1 | 3 | 4 | ||||||||
Total before tax | 54 | 6 | 5 | ||||||||
Tax (benefit) expense2 | (13) | (1) | — | ||||||||
After-tax | $ | 41 | $ | 5 | $ | 5 | |||||
Amortization of other benefit plans: | |||||||||||
Prior service (benefit) cost3,4 | $ | (922) | $ | — | $ | — | |||||
Actuarial (gains) losses3,4 | 81 | 1 | (1) | ||||||||
Curtailment (gain) loss | (1) | — | — | ||||||||
Total before tax | (842) | 1 | (1) | ||||||||
Tax (benefit) expense2 | 196 | — | — | ||||||||
After-tax | $ | (646) | $ | 1 | $ | (1) | |||||
Unrealized (Gain) Loss on Investments4 | $ | 7 | $ | — | $ | — | |||||
Tax (benefit) expense2 | — | — | — | ||||||||
After-tax | $ | 7 | $ | — | $ | — | |||||
Total reclassifications for the period, after-tax | $ | (602) | $ | 18 | $ | 16 |
(In millions) | Successor | Predecessor | Income Classification | ||||||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||||
Derivative Instruments: | $ | 13 | $ | (6 | ) | $ | — | $ | (21 | ) | (1) | ||
Tax (benefit) expense | (1 | ) | 1 | — | 8 | (2) | |||||||
After-tax | $ | 12 | $ | (5 | ) | $ | — | $ | (13 | ) | |||
Amortization of pension benefit plans: | |||||||||||||
Prior service benefit | (1 | ) | — | — | (3 | ) | (3),(4) | ||||||
Actuarial losses (gains) | $ | 2 | $ | 6 | $ | (5 | ) | $ | 506 | (3),(4),(5) | |||
Curtailment loss | — | 7 | — | — | (3),(4),(5) | ||||||||
Settlement loss (gain) | 4 | (2 | ) | — | — | (3),(4),(5) | |||||||
Total before tax | 5 | 11 | (5 | ) | 503 | ||||||||
Tax (benefit) expense | — | (2 | ) | 1 | (178 | ) | (2) | ||||||
After-tax | $ | 5 | $ | 9 | $ | (4 | ) | $ | 325 | ||||
Amortization of other benefit plans: | |||||||||||||
Prior service benefit | $ | — | $ | — | $ | — | $ | (46 | ) | (3),(4) | |||
Actuarial (gains) losses | (1 | ) | — | — | 61 | (3),(4) | |||||||
Total before tax | (1 | ) | — | — | 15 | ||||||||
Tax benefit | — | — | — | (5 | ) | (2) | |||||||
After-tax | $ | (1 | ) | $ | — | $ | — | $ | 10 | ||||
Net realized losses on investments, before tax: | — | — | — | (1 | ) | (4) | |||||||
Tax expense | — | — | — | — | (2) | ||||||||
After-tax | $ | — | $ | — | $ | — | $ | (1 | ) | ||||
Total reclassifications for the period, after-tax | $ | 16 | $ | 4 | $ | (4 | ) | $ | 321 |
Weighted-Average Assumptions used to Determine Benefit Obligations | December 31, 2019 | December 31, 2018 | ||
Discount rate | 3.20 | % | 3.94 | % |
Rate of increase in future compensation levels | 2.60 | % | 2.90 | % |
Weighted-Average Assumptions used to Determine Benefit Obligations | December 31, 2021 | December 31, 2020 | ||||||
Discount rate | 2.82 | % | 2.44 | % | ||||
Rate of increase in future compensation levels1 | 2.55 | % | 2.54 | % |
Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost | Successor | Predecessor | ||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||
Discount rate | 4.19 | % | 3.38 | % | 3.42 | % | 3.80 | % |
Rate of increase in future compensation levels | 2.84 | % | 4.04 | % | 3.80 | % | 3.80 | % |
Expected long-term rate of return on plan assets | 6.24 | % | 6.19 | % | 6.24 | % | 7.66 | % |
Weighted- Average Assumptions used to Determine Net Periodic Benefit Cost | Successor | Predecessor | ||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||
Discount rate | 4.32 | % | 3.65 | % | 3.73 | % | 4.16 | % |
Rate of increase in future compensation levels | — | % | 4.25 | % | 3.95 | % | 3.95 | % |
Expected long-term rate of return on plan assets | 6.25 | % | 6.25 | % | 6.25 | % | 8.00 | % |
Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Discount rate | 2.44 | % | 3.19 | % | 4.19 | % | |||||
Rate of increase in future compensation levels1 | 2.54 | % | 2.60 | % | 2.84 | % | |||||
Expected long-term rate of return on plan assets | 5.73 | % | 6.25 | % | 6.24 | % |
Weighted-Average Assumptions used to Determine Benefit Obligations | December 31, 2021 | December 31, 2020 | ||||||
Discount rate | 2.59 | % | 2.09 | % |
Weighted-Average Assumptions used to Determine Benefit Obligations | December 31, 2019 | December 31, 2018 | ||
Discount rate | 3.07 | % | 4.23 | % |
Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Discount rate | 2.09 | % | 3.07 | % | 3.93 | % |
Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost | Successor | Predecessor | ||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||
Discount rate | 3.93 | % | 3.56 | % | 3.62 | % | 4.03 | % |
Assumed Health Care Cost Trend Rates | December 31, 2019 | December 31, 2018 | ||
Health care cost trend rate assumed for next year | 7.20 | % | 7.50 | % |
Rate to which the cost trend rate is assumed to decline (the ultimate health care trend rate) | 5.00 | % | 5.00 | % |
Year that the rate reached the ultimate health care cost trend rate | 2028 | 2028 |
Change in Projected Benefit Obligations, Plan Assets and Funded Status | |||||||||||||||||
Defined Benefit Pension Plans | Other Post Employment Benefits | ||||||||||||||||
(In millions) | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | |||||||||||||
Change in benefit obligations: | |||||||||||||||||
Benefit obligation at beginning of the period | $ | 21,682 | $ | 21,004 | $ | 1,571 | $ | 2,591 | |||||||||
Service cost | 25 | 26 | 1 | 2 | |||||||||||||
Interest cost | 364 | 559 | 21 | 66 | |||||||||||||
Plan participants' contributions | 3 | 2 | 35 | 34 | |||||||||||||
Actuarial (gain) loss | (524) | 1,659 | (33) | 59 | |||||||||||||
Benefits paid | (1,490) | (1,538) | (233) | (241) | |||||||||||||
Plan amendments | (15) | (3) | — | (939) | |||||||||||||
Other1 | (240) | — | — | — | |||||||||||||
Effect of foreign exchange rates | (30) | (27) | — | (1) | |||||||||||||
Benefit obligations at end of the period | $ | 19,775 | $ | 21,682 | $ | 1,362 | $ | 1,571 | |||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of the period | $ | 17,835 | $ | 16,941 | $ | — | $ | — | |||||||||
Actual return on plan assets | 1,685 | 2,404 | — | — | |||||||||||||
Employer contributions | 49 | 62 | 198 | 207 | |||||||||||||
Plan participants' contributions | 3 | 2 | 35 | 34 | |||||||||||||
Benefits paid | (1,490) | (1,538) | (233) | (241) | |||||||||||||
Other1 | (240) | — | — | — | |||||||||||||
Effect of foreign exchange rates | (15) | (36) | — | — | |||||||||||||
Fair value of plan assets at end of the period | $ | 17,827 | $ | 17,835 | $ | — | $ | — | |||||||||
Funded status | |||||||||||||||||
U.S. plan with plan assets | $ | (1,471) | $ | (3,301) | $ | — | $ | — | |||||||||
Non-U.S. plans with plan assets | (62) | (98) | — | — | |||||||||||||
All other plans 2,3 | (415) | (448) | (1,362) | (1,571) | |||||||||||||
Funded status at end of the period | $ | (1,948) | $ | (3,847) | $ | (1,362) | $ | (1,571) |
Change in Projected Benefit Obligations, Plan Assets and Funded Status | |||||||||||||
Defined Benefit Pension Plans | Other Post Employment Benefits | ||||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | |||||||||
Change in benefit obligations: | |||||||||||||
Benefit obligation at beginning of the period | $ | 23,532 | $ | 25,683 | $ | 2,514 | $ | 2,810 | |||||
Service cost | 41 | 136 | 4 | 9 | |||||||||
Interest cost | 769 | 755 | 84 | 85 | |||||||||
Plan participants' contributions | 2 | 10 | 37 | 38 | |||||||||
Actuarial (gain) loss | 2,469 | (1,078 | ) | 211 | (172 | ) | |||||||
Benefits paid | (1,635 | ) | (1,763 | ) | (239 | ) | (254 | ) | |||||
Plan amendments | (76 | ) | 17 | — | — | ||||||||
Net effects of acquisitions / divestitures / other | (1 | ) | (12 | ) | — | — | |||||||
Effect of foreign exchange rates | (60 | ) | (216 | ) | — | (2 | ) | ||||||
Impact of internal reorganizations | (4,037 | ) | — | (20 | ) | — | |||||||
Benefit obligations at end of the period | $ | 21,004 | $ | 23,532 | $ | 2,591 | $ | 2,514 | |||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of the period | $ | 18,951 | $ | 20,329 | $ | — | $ | — | |||||
Actual return on plan assets | 2,552 | (781 | ) | — | — | ||||||||
Employer contributions | 121 | 1,314 | 202 | 216 | |||||||||
Plan participants' contributions | 2 | 10 | 37 | 38 | |||||||||
Benefits paid | (1,635 | ) | (1,763 | ) | (239 | ) | (254 | ) | |||||
Net effects of acquisitions / divestitures / other | (6 | ) | (7 | ) | — | — | |||||||
Effect of foreign exchange rates | (38 | ) | (151 | ) | — | — | |||||||
Impact of internal reorganizations | (3,006 | ) | — | — | — | ||||||||
Fair value of plan assets at end of the period | $ | 16,941 | $ | 18,951 | $ | — | $ | — | |||||
Funded status | |||||||||||||
U.S. plan with plan assets | $ | (3,535 | ) | $ | (2,890 | ) | $ | — | $ | — | |||
Non-U.S. plans with plan assets | (90 | ) | (32 | ) | — | — | |||||||
All other plans 1, 2 | (438 | ) | (511 | ) | (2,591 | ) | (2,490 | ) | |||||
Plans of discontinued operations | — | (1,148 | ) | — | (24 | ) | |||||||
Funded status at end of the period3 | $ | (4,063 | ) | $ | (4,581 | ) | $ | (2,591 | ) | $ | (2,514 | ) |
Defined Benefit Pension Plans | Other Post Employment Benefits | |||||||||||||
(In millions) | December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||||
Other Assets | $ | 4 | $ | 7 | $ | — | $ | — | ||||||
Accrued and other current liabilities | (46) | (32) | (144) | (217) | ||||||||||
Pension and other post employment benefits - noncurrent | (1,906) | (3,822) | (1,218) | (1,354) | ||||||||||
Net amount recognized | $ | (1,948) | $ | (3,847) | $ | (1,362) | $ | (1,571) | ||||||
Pretax amounts recognized in accumulated other comprehensive income (loss): | ||||||||||||||
Net gain (loss) | $ | (543) | $ | (1,886) | $ | (50) | $ | (163) | ||||||
Prior service benefit (cost) | 27 | 14 | 17 | 939 | ||||||||||
Pretax balance in accumulated other comprehensive income (loss) at end of year | $ | (516) | $ | (1,872) | $ | (33) | $ | 776 |
Defined Benefit Pension Plans | Other Post Employment Benefits | |||||||||||
(In millions) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||
Amounts recognized in the Consolidated Balance Sheets: | ||||||||||||
Assets of discontinued operations - current | $ | — | $ | 10 | $ | — | $ | — | ||||
Other Assets | 10 | — | — | — | ||||||||
Accrued and other current liabilities | (50 | ) | (45 | ) | (237 | ) | (242 | ) | ||||
Liabilities of discontinued operations - noncurrent | — | (1,158 | ) | — | (24 | ) | ||||||
Pension and other post employment benefits - noncurrent 1 | (4,023 | ) | (3,388 | ) | (2,354 | ) | (2,248 | ) | ||||
Net amount recognized | $ | (4,063 | ) | $ | (4,581 | ) | $ | (2,591 | ) | $ | (2,514 | ) |
Pretax amounts recognized in accumulated other comprehensive loss (income): | ||||||||||||
Net loss (gain) | $ | 1,641 | $ | 767 | $ | 108 | $ | (104 | ) | |||
Prior service (benefit) cost | (10 | ) | 17 | — | — | |||||||
Pretax balance in accumulated other comprehensive loss (income) at end of year | $ | 1,631 | $ | 784 | $ | 108 | $ | (104 | ) |
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets | December 31, 2021 | December 31, 2020 | ||||||
(In millions) | ||||||||
Projected benefit obligations | $ | 19,519 | $ | 21,513 | ||||
Fair value of plan assets | 17,567 | 17,659 |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | December 31, 2021 | December 31, 2020 | ||||||
(In millions) | ||||||||
Accumulated benefit obligations | $ | 19,501 | $ | 21,369 | ||||
Fair value of plan assets | 17,567 | 17,550 |
Pension Plans with Projected Benefit Obligations in Excess of Plan Assets | December 31, 2019 | December 31, 2018 | ||||
(In millions) | ||||||
Projected benefit obligations1 | $ | 20,788 | $ | 23,261 | ||
Fair value of plan assets2 | 16,716 | 18,669 |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | December 31, 2019 | December 31, 2018 | ||||
(In millions) | ||||||
Accumulated benefit obligations1 | $ | 20,654 | $ | 22,291 | ||
Fair value of plan assets2 | 16,620 | 17,934 |
(In millions) | Defined Benefit Pension Plans | Other Post Employment Benefits | |||||||||||||||||||||
For the Year Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
Components of net periodic benefit (credit) cost and amounts recognized in other comprehensive income (loss) | 2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||
Net Periodic Benefit (Credit) Cost: | |||||||||||||||||||||||
Service cost | $ | 25 | $ | 26 | $ | 41 | $ | 1 | $ | 2 | $ | 4 | |||||||||||
Interest cost | 364 | 559 | 769 | 21 | 66 | 84 | |||||||||||||||||
Expected return on plan assets | (915) | (1,000) | (1,078) | — | — | — | |||||||||||||||||
Amortization of unrecognized loss (gain) | 55 | 4 | 3 | 81 | 1 | (1) | |||||||||||||||||
Amortization of prior service (benefit) cost | (2) | (1) | (1) | (922) | — | — | |||||||||||||||||
Curtailment loss (gain) | — | — | (2) | (1) | — | — | |||||||||||||||||
Settlement loss | 1 | 3 | 4 | — | — | — | |||||||||||||||||
Net periodic benefit (credit) cost - Total | $ | (472) | $ | (409) | $ | (264) | $ | (820) | $ | 69 | $ | 87 | |||||||||||
Less: Discontinued operations1 | — | — | (14) | — | — | — | |||||||||||||||||
Net periodic benefit (credit) cost - continuing operations | $ | (472) | $ | (409) | $ | (250) | $ | (820) | $ | 69 | $ | 87 | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||||||||||
Net gain (loss) | $ | 1,284 | $ | (247) | $ | (970) | $ | 33 | $ | (59) | $ | (211) | |||||||||||
Amortization of unrecognized (gain) loss | 55 | 4 | 2 | 81 | 1 | (1) | |||||||||||||||||
Prior service benefit (cost) | 15 | 3 | 11 | — | 939 | — | |||||||||||||||||
Amortization of prior service (benefit) cost | (2) | (1) | (1) | (922) | — | — | |||||||||||||||||
Curtailment (gain) loss | — | — | — | (1) | — | — | |||||||||||||||||
Settlement loss | 1 | 3 | 4 | — | — | — | |||||||||||||||||
Effect of foreign exchange rates | 3 | (2) | 5 | — | 1 | — | |||||||||||||||||
Total benefit (loss) recognized in other comprehensive income (loss), attributable to Corteva | $ | 1,356 | $ | (240) | $ | (949) | $ | (809) | $ | 882 | $ | (212) | |||||||||||
Total recognized in net periodic benefit (credit) cost and other comprehensive income (loss) | $ | 1,828 | $ | 169 | $ | (685) | $ | 11 | $ | 813 | $ | (299) |
Defined Benefit Pension Plans | Other Post Employment Benefits | ||||||||||||||||||||||||
(In millions) | Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||
Components of net periodic benefit (credit) cost and amounts recognized in other comprehensive loss | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||||||||||||||
Net Periodic Benefit Cost: | |||||||||||||||||||||||||
Service cost | $ | 41 | $ | 136 | $ | 50 | $ | 92 | $ | 4 | $ | 9 | $ | 3 | $ | 6 | |||||||||
Interest cost | 769 | 755 | 247 | 524 | 84 | 85 | 26 | 60 | |||||||||||||||||
Expected return on plan assets | (1,078 | ) | (1,216 | ) | (411 | ) | (824 | ) | — | — | — | — | |||||||||||||
Amortization of unrecognized loss (gain) | 3 | 10 | 1 | 506 | (1 | ) | — | — | 61 | ||||||||||||||||
Amortization of prior service benefit | (1 | ) | — | — | (3 | ) | — | — | — | (46 | ) | ||||||||||||||
Curtailment gain | (2 | ) | (11 | ) | — | — | — | — | — | — | |||||||||||||||
Settlement loss | 4 | 5 | — | — | — | — | — | — | |||||||||||||||||
Net periodic benefit (credit) cost - Total | $ | (264 | ) | $ | (321 | ) | $ | (113 | ) | $ | 295 | $ | 87 | $ | 94 | $ | 29 | $ | 81 | ||||||
Less: Discontinued operations1 | (14 | ) | (42 | ) | (13 | ) | 27 | — | 1 | — | — | ||||||||||||||
Net periodic benefit (credit) cost - Continuing operations | $ | (250 | ) | $ | (279 | ) | $ | (100 | ) | $ | 268 | $ | 87 | $ | 93 | $ | 29 | $ | 81 | ||||||
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss: | |||||||||||||||||||||||||
Net loss (gain) | $ | 970 | $ | 908 | $ | (163 | ) | $ | (22 | ) | $ | 211 | $ | (172 | ) | $ | 68 | $ | — | ||||||
Amortization of unrecognized (loss) gain | (2 | ) | (10 | ) | (1 | ) | (506 | ) | 1 | — | — | (61 | ) | ||||||||||||
Prior service (benefit) cost | (11 | ) | 17 | — | — | — | — | — | — | ||||||||||||||||
Amortization of prior service benefit | 1 | — | — | 3 | — | — | — | 46 | |||||||||||||||||
Settlement loss | (4 | ) | (2 | ) | — | — | — | — | — | — | |||||||||||||||
Effect of foreign exchange rates | (5 | ) | 1 | 3 | 133 | — | — | — | — | ||||||||||||||||
Total loss (benefit) recognized in other comprehensive loss, attributable to Corteva | $ | 949 | $ | 914 | $ | (161 | ) | $ | (392 | ) | $ | 212 | $ | (172 | ) | $ | 68 | $ | (15 | ) | |||||
Total recognized in net periodic benefit cost and other comprehensive loss (income) | $ | 685 | $ | 593 | $ | (274 | ) | $ | (97 | ) | $ | 299 | $ | (78 | ) | $ | 97 | $ | 66 |
Estimated Future Benefit Payments at December 31, 2021 | Defined Benefit Pension Plans | Other Post Employment Benefits | ||||||
(In millions) | ||||||||
2022 | $ | 1,459 | $ | 144 | ||||
2023 | 1,409 | 134 | ||||||
2024 | 1,378 | 126 | ||||||
2025 | 1,341 | 118 | ||||||
2026 | 1,305 | 112 | ||||||
Years 2027-2031 | 5,913 | 399 | ||||||
Total | $ | 12,805 | $ | 1,033 |
Estimated Future Benefit Payments at December 31, 2019 | Defined Benefit Pension Plans | Other Post Employment Benefits | ||||
(In millions) | ||||||
2020 | $ | 1,527 | $ | 237 | ||
2021 | 1,474 | 228 | ||||
2022 | 1,437 | 218 | ||||
2023 | 1,403 | 209 | ||||
2024 | 1,370 | 201 | ||||
Years 2025-2029 | 6,314 | 808 | ||||
Total | $ | 13,525 | $ | 1,901 |
Target Allocation for Plan Assets | December 31, 2021 | December 31, 2020 | ||||||
Asset Category | ||||||||
U.S. equity securities | 11 | % | 20 | % | ||||
Non-U.S. equity securities | 11 | 16 | ||||||
Fixed income securities | 58 | 51 | ||||||
Hedge funds | 2 | 2 | ||||||
Private market securities | 8 | 6 | ||||||
Real estate | 5 | 4 | ||||||
Cash and cash equivalents | 5 | 1 | ||||||
Total | 100 | % | 100 | % |
Target Allocation for Plan Assets | December 31, 2019 | December 31, 2018 | ||
Asset Category | ||||
U.S. equity securities | 20 | % | 19 | % |
Non-U.S. equity securities | 16 | 16 | ||
Fixed income securities | 50 | 50 | ||
Hedge funds | 3 | 2 | ||
Private market securities | 6 | 8 | ||
Real estate | 3 | 3 | ||
Cash and cash equivalents | 2 | 2 | ||
Total | 100 | % | 100 | % |
Basis of Fair Value Measurements | Total | Level 1 | Level 2 | Level 3 | ||||||||||
For the year ended December 31, 2021 | ||||||||||||||
(In millions) | ||||||||||||||
Cash and cash equivalents | $ | 2,543 | $ | 2,543 | $ | — | $ | — | ||||||
U.S. equity securities 1 | 2,400 | 2,394 | 2 | 4 | ||||||||||
Non-U.S. equity securities | 1,523 | 1,523 | — | — | ||||||||||
Debt – government-issued | 3,271 | — | 3,271 | — | ||||||||||
Debt – corporate-issued | 4,591 | — | 4,589 | 2 | ||||||||||
Debt – asset-backed | 682 | — | 682 | — | ||||||||||
Private market securities | 3 | — | — | 3 | ||||||||||
Real estate | 26 | — | — | 26 | ||||||||||
Other | 78 | — | 3 | 75 | ||||||||||
Subtotal | $ | 15,117 | $ | 6,460 | $ | 8,547 | $ | 110 | ||||||
Investments measured at net asset value | ||||||||||||||
Debt - government issued | 37 | |||||||||||||
Debt - corporate issued | 7 | |||||||||||||
U.S. equity securities | 33 | |||||||||||||
Non-U.S. equity securities | 34 | |||||||||||||
Hedge funds | 394 | |||||||||||||
Private market securities | 1,822 | |||||||||||||
Real estate funds | 759 | |||||||||||||
Total investments measured at net asset value | $ | 3,086 | ||||||||||||
Other items to reconcile to fair value of plan assets | ||||||||||||||
Pension trust receivables 2 | 655 | |||||||||||||
Pension trust payables 3 | (1,031) | |||||||||||||
Total | $ | 17,827 |
Basis of Fair Value Measurements | Total | Level 1 | Level 2 | Level 3 | ||||||||
For the year ended December 31, 2019 | ||||||||||||
(In millions) | ||||||||||||
Cash and cash equivalents | $ | 1,343 | $ | 1,343 | $ | — | $ | — | ||||
U.S. equity securities 1 | 3,665 | 3,652 | 4 | 9 | ||||||||
Non-U.S. equity securities | 2,053 | 2,043 | 6 | 4 | ||||||||
Debt – government-issued | 3,693 | — | 3,693 | — | ||||||||
Debt – corporate-issued | 2,956 | — | 2,952 | 4 | ||||||||
Debt – asset-backed | 663 | — | 663 | — | ||||||||
Private market securities | 2 | — | — | 2 | ||||||||
Real estate | 33 | — | — | 33 | ||||||||
Derivatives – asset position | 2 | — | 2 | — | ||||||||
Derivatives – liability position | (19 | ) | — | (19 | ) | — | ||||||
Other | 19 | — | 19 | — | ||||||||
Subtotal | $ | 14,410 | $ | 7,038 | $ | 7,320 | $ | 52 | ||||
Investments measured at net asset value | ||||||||||||
Debt - government issued | 37 | |||||||||||
U.S. equity securities | 20 | |||||||||||
Non-U.S. equity securities | 39 | |||||||||||
Hedge funds | 431 | |||||||||||
Private market securities | 1,371 | |||||||||||
Real estate funds | 516 | |||||||||||
Total investments measured at net asset value | $ | 2,414 | ||||||||||
Other items to reconcile to fair value of plan assets | ||||||||||||
Pension trust receivables 2 | 763 | |||||||||||
Pension trust payables 3 | (646 | ) | ||||||||||
Total | $ | 16,941 |
Basis of Fair Value Measurements | ||||||||||||||
For the year ended December 31, 2020 | ||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
Cash and cash equivalents | $ | 2,616 | $ | 2,616 | $ | — | $ | — | ||||||
U.S. equity securities1 | 3,905 | 3,898 | 2 | 5 | ||||||||||
Non-U.S. equity securities | 2,194 | 2,189 | 2 | 3 | ||||||||||
Debt – government-issued | 3,569 | — | 3,569 | — | ||||||||||
Debt – corporate-issued | 2,579 | — | 2,576 | 3 | ||||||||||
Debt – asset-backed | 616 | — | 616 | — | ||||||||||
Private market securities | 3 | — | — | 3 | ||||||||||
Real estate | 28 | — | — | 28 | ||||||||||
Other | 76 | — | 3 | 73 | ||||||||||
Subtotal | $ | 15,586 | $ | 8,703 | $ | 6,768 | $ | 115 | ||||||
Investments measured at net asset value | ||||||||||||||
Debt - government issued | 36 | |||||||||||||
Debt - corporate issued | 7 | |||||||||||||
U.S. equity securities | 32 | |||||||||||||
Non-U.S. equity securities | 32 | |||||||||||||
Hedge funds | 391 | |||||||||||||
Private market securities | 1,381 | |||||||||||||
Real estate funds | 590 | |||||||||||||
Total investments measured at net asset value | $ | 2,469 | ||||||||||||
Other items to reconcile to fair value of plan assets | ||||||||||||||
Pension trust receivables2 | 214 | |||||||||||||
Pension trust payables3 | (434) | |||||||||||||
Total | $ | 17,835 |
Basis of Fair Value Measurements | ||||||||||||
For the year ended December 31, 2018 | ||||||||||||
(In millions) | Total | Level 14 | Level 24 | Level 34 | ||||||||
Cash and cash equivalents | $ | 1,824 | $ | 1,824 | $ | — | $ | — | ||||
U.S. equity securities1 | 3,537 | 3,521 | 2 | 14 | ||||||||
Non-U.S. equity securities | 2,582 | 2,565 | 15 | 2 | ||||||||
Debt – government-issued | 3,659 | 211 | 3,448 | — | ||||||||
Debt – corporate-issued | 3,037 | 253 | 2,770 | 14 | ||||||||
Debt – asset-backed | 721 | 39 | 682 | — | ||||||||
Hedge funds | 162 | 162 | — | — | ||||||||
Private market securities | 1 | — | — | 1 | ||||||||
Real estate | 336 | 243 | — | 93 | ||||||||
Derivatives – asset position | 10 | 1 | 9 | — | ||||||||
Derivatives – liability position | (18 | ) | — | (18 | ) | — | ||||||
Other | 233 | 9 | 18 | 206 | ||||||||
Subtotal | $ | 16,084 | $ | 8,828 | $ | 6,926 | $ | 330 | ||||
Investments measured at net asset value4 | ||||||||||||
Debt - government issued | 208 | |||||||||||
Hedge funds | 678 | |||||||||||
Private market securities | 1,861 | |||||||||||
Real estate funds | 112 | |||||||||||
Other | 6 | |||||||||||
Total investments measured at net asset value | $ | 2,865 | ||||||||||
Other items to reconcile to fair value of plan assets | ||||||||||||
Pension trust receivables2 | 210 | |||||||||||
Pension trust payables3 | (208 | ) | ||||||||||
Total | $ | 18,951 |
Fair Value Measurement of Level 3 Pension Plan Assets | U.S. equity securities | Non-U.S. equity securities | Debt – corporate-issued | Private market securities | Real estate | Other | Total | ||||||||||||||||
(In millions) | |||||||||||||||||||||||
Balance at January 1, 2020 | $ | 9 | $ | 4 | $ | 4 | $ | 2 | $ | 33 | $ | — | $ | 52 | |||||||||
Actual return on assets: | |||||||||||||||||||||||
Relating to assets sold during the year ended December 31, 2020 | (25) | (6) | (7) | — | — | — | (38) | ||||||||||||||||
Relating to assets held at December 31, 2020 | 21 | 5 | 5 | 1 | (5) | 7 | 34 | ||||||||||||||||
Purchases, sales and settlements, net | — | — | — | — | — | 5 | 5 | ||||||||||||||||
Transfers in or out of Level 3, net | — | — | 1 | — | — | 61 | 62 | ||||||||||||||||
Balance at December 31, 2020 | $ | 5 | $ | 3 | $ | 3 | $ | 3 | $ | 28 | $ | 73 | $ | 115 | |||||||||
Actual return on assets: | |||||||||||||||||||||||
Relating to assets sold during the year ended December 31, 2021 | 1 | (1) | (5) | — | — | — | (5) | ||||||||||||||||
Relating to assets held at December 31, 2021 | (3) | (1) | 6 | — | (2) | (2) | (2) | ||||||||||||||||
Purchases, sales and settlements, net | 1 | (1) | (2) | — | — | 4 | 2 | ||||||||||||||||
Balance at December 31, 2021 | $ | 4 | $ | — | $ | 2 | $ | 3 | $ | 26 | $ | 75 | $ | 110 |
Fair Value Measurement of Level 3 Pension Plan Assets | U.S. equity securities | Non-U.S. equity securities | Debt – corporate-issued | Debt- asset- backed | Hedge funds | Private market securities | Real estate | Other | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 17 | $ | 3 | $ | 27 | $ | 2 | $ | 2 | $ | 14 | $ | 96 | $ | — | $ | 161 | |||||||||
Actual return on assets: | |||||||||||||||||||||||||||
Relating to assets sold during the year ended December 31, 2018 | (1 | ) | (4 | ) | (80 | ) | — | — | — | 2 | — | (83 | ) | ||||||||||||||
Relating to assets held at December 31, 2018 | (4 | ) | 3 | 87 | — | — | (3 | ) | — | (11 | ) | 72 | |||||||||||||||
Purchases, sales and settlements, net | 3 | — | (15 | ) | — | — | — | (3 | ) | 217 | 202 | ||||||||||||||||
Transfers out of Level 3, net | (1 | ) | — | (5 | ) | (2 | ) | (2 | ) | (10 | ) | (2 | ) | — | (22 | ) | |||||||||||
Balance at December 31, 2018 | $ | 14 | $ | 2 | $ | 14 | $ | — | $ | — | $ | 1 | $ | 93 | $ | 206 | $ | 330 | |||||||||
Actual return on assets: | |||||||||||||||||||||||||||
Relating to assets sold during the year ended December 31, 2019 | (2 | ) | 1 | 9 | — | — | — | (29 | ) | — | (21 | ) | |||||||||||||||
Relating to assets held at December 31, 2019 | (5 | ) | — | (8 | ) | — | — | 4 | 25 | — | 16 | ||||||||||||||||
Purchases, sales and settlements, net | 2 | 2 | (12 | ) | — | — | (3 | ) | (3 | ) | — | (14 | ) | ||||||||||||||
Transfers out of Level 3, net | — | (1 | ) | 1 | — | — | — | — | — | — | |||||||||||||||||
Assets transferred at Separation | — | — | — | — | — | — | (53 | ) | (206 | ) | (259 | ) | |||||||||||||||
Balance at December 31, 2019 | $ | 9 | $ | 4 | $ | 4 | $ | — | $ | — | $ | 2 | $ | 33 | $ | — | $ | 52 |
Weighted-Average Assumptions | Successor | Predecessor | ||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||
Dividend yield | 1.55 | % | 2.1 | % | 2.2 | % | 2.0 | % |
Expected volatility | 19.80 | % | 23.30 | % | 23.59 | % | 23.21 | % |
Risk-free interest rate | 2.4 | % | 2.8 | % | 2.1 | % | 2.3 | % |
Expected life of stock options granted during period (years) | 6.1 | 6.2 | 7.2 | 7.2 |
Weighted-Average Assumptions | OIP | EIP | |||||||||
For the year ended December 31, 2021 | For the year ended December 31, 2020 | For the year ended December 31, 2019 | |||||||||
Dividend yield | 1.14 | % | 1.67 | % | 1.55 | % | |||||
Expected volatility | 29.44 | % | 23.14 | % | 19.80 | % | |||||
Risk-free interest rate | 1.0 | % | 1.3 | % | 2.4 | % | |||||
Expected life of stock options granted during period (years) | 6.0 | 6.0 | 6.1 |
Stock Options | For the year ended December 31, 2019 | |||||||||
Number of Shares (in thousands) | Weighted Average Exercise Price (per share) | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||
Outstanding at January 1, 2019 | 17,079 | $ | 53.26 | |||||||
Exercised | (886 | ) | 39.19 | |||||||
Forfeited/Expired | (85 | ) | 46.87 | |||||||
Outstanding at April 1, 2019 | 16,108 | $ | 54.07 | 4.76 | $ | 76,942 | ||||
Exercisable at April 1, 2019 | 13,314 | $ | 51.09 | 3.94 | $ | 74,749 | ||||
Conversion - Dow Distribution1 | 21,700 | $ | 35.41 | |||||||
Granted2 | 2,561 | 29.95 | ||||||||
Exercised | (134 | ) | 27.24 | |||||||
Forfeited/Expired | (129 | ) | 35.07 | |||||||
Impact of Internal Reorganization, net | (10,112 | ) | 36.07 | |||||||
Outstanding at May 31, 2019 | 13,886 | $ | 34.00 | 3.90 | $ | 20,779 | ||||
Exercisable at May 31, 2019 | 12,481 | $ | 32.85 | 3.39 | $ | 18,979 | ||||
Conversion - Corteva Distribution3 | (13,886 | ) | $ | 34.00 | ||||||
Outstanding at December 31, 2019 | — | $ | — | — | $ | — | ||||
Exercisable at December 31, 2019 | — | $ | — | — | $ | — |
Stock Options | For the Year Ended December 31, 2021 | |||||||||||||
Number of Shares (in thousands) | Weighted Average Exercise Price (per share) | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||
Outstanding at January 1, 2021 | 8,998 | $ | 34.21 | 5.27 | $ | 50,077 | ||||||||
Granted | 849 | 45.37 | ||||||||||||
Exercised | (3,206) | 32.44 | ||||||||||||
Forfeited/Expired | (218) | 33.39 | ||||||||||||
Outstanding at December 31, 2021 | 6,423 | $ | 36.65 | 5.69 | $ | 68,219 | ||||||||
Exercisable at December 31, 2021 | 4,739 | $ | 36.15 | 4.76 | $ | 52,726 |
Stock Options | For the year ended December 31, 2019 | ||||||||
Number of Shares (in thousands) | Weighted Average Exercise Price (per share) | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | ||||||
Outstanding at January 1, 2019 | — | $ | — | ||||||
Converted on June 1, 20191 | 10,468 | 32.11 | |||||||
Exercised | (355 | ) | 20.95 | ||||||
Forfeited/Expired | (68 | ) | 38.45 | ||||||
Outstanding at December 31, 2019 | 10,045 | $ | 32.47 | 4.73 | $ | 20,186 | |||
Exercisable at December 31, 2019 | 8,036 | $ | 30.54 | 3.95 | $ | 19,172 |
RSUs & PSUs | For the year ended December 31, 2019 | ||||
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value (per share) | ||||
Nonvested at January 1, 2019 | 3,147 | $ | 68.18 | ||
Granted | 2,578 | 52.66 | |||
Vested | (1,113 | ) | 67.85 | ||
Forfeited | (12 | ) | 67.08 | ||
Nonvested at April 1, 2019 | 4,600 | $ | 59.57 | ||
Conversion - Dow Distribution1 | 6,120 | $ | 39.46 | ||
Granted2 | 1,288 | 42.34 | |||
Vested | (76 | ) | 42.26 | ||
Forfeited | (47 | ) | 40.35 | ||
Impact of Internal Reorganization, net | (4,185 | ) | 39.76 | ||
Nonvested at May 31, 2019 | 3,100 | $ | 40.18 | ||
Conversion - Corteva Distribution3 | (3,100 | ) | $ | 40.18 | |
Nonvested at December 31, 2019 | — | $ | — |
RSUs & PSUs | For the Year Ended December 31, 2021 | |||||||
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value (per share) | |||||||
Nonvested at January 1, 2021 | 5,883 | $ | 31.54 | |||||
Granted | 1,536 | $ | 45.30 | |||||
Vested | (1,583) | $ | 35.59 | |||||
Forfeited | (234) | $ | 32.99 | |||||
Nonvested at December 31, 2021 | 5,602 | $ | 34.11 |
RSUs & PSUs | For the year ended December 31, 2019 | ||||
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value (per share) | ||||
Nonvested at January 1, 2019 | — | $ | — | ||
Converted on June 1, 20191 | 3,757 | 35.56 | |||
Granted | 2,228 | 28.88 | |||
Vested | (497 | ) | 39.07 | ||
Forfeited | (50 | ) | 36.50 | ||
Nonvested at December 31, 2019 | 5,438 | $ | 32.49 |
Notional Amounts (In millions) | December 31, 2021 | December 31, 2020 | ||||||
Derivatives designated as hedging instruments: | ||||||||
Foreign currency contracts | $ | 1,252 | $ | 1,164 | ||||
Commodity contracts | $ | 845 | $ | 383 | ||||
Derivatives not designated as hedging instruments: | ||||||||
Foreign currency contracts | $ | 103 | $ | 647 | ||||
Commodity contracts | $ | 4 | $ | — |
Notional Amounts (In millions) | December 31, 2019 | December 31, 2018 | ||||
Derivatives designated as hedging instruments: | ||||||
Commodity contracts | $ | 570 | $ | 525 | ||
Derivatives not designated as hedging instruments: | ||||||
Foreign currency contracts | $ | 582 | $ | 2,057 | ||
Commodity contracts | $ | — | $ | 9 |
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Beginning balance | $ | (16) | $ | 2 | $ | (26) | |||||
Additions and revaluations of derivatives designated as cash flow hedges | 92 | (44) | 16 | ||||||||
Clearance of hedge results to earnings | (29) | 26 | 12 | ||||||||
Ending balance | $ | 47 | $ | (16) | $ | 2 |
(In millions) | For the Year Ended December 31, 2021 | For the Year Ended December 31, 2020 | |||||||||||||||
Beginning balance | $ | (17) | $ | — | |||||||||||||
Additions and revaluations of derivatives designated as cash flow hedges | 24 | (3) | |||||||||||||||
Clearance of hedges results to earnings | 25 | (14) | |||||||||||||||
Ending balance | $ | 32 | $ | (17) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Beginning balance | $ | (26 | ) | $ | (2 | ) | $ | — | $ | 7 | ||
Additions and revaluations of derivatives designated as cash flow hedges | 16 | (19 | ) | (2 | ) | 3 | ||||||
Clearance of hedge results to earnings | 12 | (5 | ) | — | (13 | ) | ||||||
Ending balance | $ | 2 | $ | (26 | ) | $ | (2 | ) | $ | (3 | ) |
December 31, 2021 | ||||||||||||||
(In millions) | Balance Sheet Location | Gross | Counterparty and Cash Collateral Netting1 | Net Amounts Included in the Consolidated Balance Sheet | ||||||||||
Asset derivatives: | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Other current assets | $ | 37 | $ | — | $ | 37 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Other current assets | 31 | (20) | 11 | ||||||||||
Commodity contracts | Other current assets | 3 | — | 3 | ||||||||||
Total asset derivatives | $ | 71 | $ | (20) | $ | 51 | ||||||||
Liability derivatives: | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Accrued and other current liabilities | $ | 1 | $ | — | $ | 1 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Accrued and other current liabilities | 23 | $ | (20) | 3 | |||||||||
Commodity contracts | Accrued and other current liabilities | 2 | — | 2 | ||||||||||
Total liability derivatives | $ | 26 | $ | (20) | $ | 6 |
December 31, 2019 | ||||||||||
(In millions) | Balance Sheet Location | Gross | Counterparty and Cash Collateral Netting1 | Net Amounts Included in the Consolidated Balance Sheet | ||||||
Asset derivatives: | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign currency contracts | Other current assets | $ | 25 | $ | (18 | ) | $ | 7 | ||
Total asset derivatives | $ | 25 | $ | (18 | ) | $ | 7 | |||
Liability derivatives: | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign currency contracts | Accrued and other current liabilities | $ | 43 | $ | (16 | ) | $ | 27 | ||
Total liability derivatives | $ | 43 | $ | (16 | ) | $ | 27 |
December 31, 2018 | ||||||||||
(In millions) | Balance Sheet Location | Gross | Counterparty and Cash Collateral Netting1 | Net Amounts Included in the Consolidated Balance Sheet | ||||||
Asset derivatives: | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign currency contracts | Other current assets | $ | 72 | $ | (35 | ) | $ | 37 | ||
Total asset derivatives | $ | 72 | $ | (35 | ) | $ | 37 | |||
Liability derivatives: | ||||||||||
Derivatives not designated as hedging instruments: | ||||||||||
Foreign currency contracts | Accrued and other current liabilities | $ | 21 | $ | (15 | ) | $ | 6 | ||
Total liability derivatives | $ | 21 | $ | (15 | ) | $ | 6 |
Amount of Gain (Loss) Recognized in OCI1 - Pre-Tax | ||||||||||||
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Cash flow hedges: | ||||||||||||
Commodity contracts | $ | 23 | $ | (24 | ) | $ | 3 | $ | 5 | |||
Total derivatives designated as hedging instruments | $ | 23 | $ | (24 | ) | $ | 3 | $ | 5 |
December 31, 2020 | ||||||||||||||
(In millions) | Balance Sheet Location | Gross | Counterparty and Cash Collateral Netting1 | Net Amounts Included in the Consolidated Balance Sheet | ||||||||||
Asset derivatives: | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Other current assets | $ | 15 | $ | — | $ | 15 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Other current assets | 40 | (40) | — | ||||||||||
Total asset derivatives | $ | 55 | $ | (40) | $ | 15 | ||||||||
Liability derivatives: | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Accrued and other current liabilities | $ | 38 | $ | — | $ | 38 | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign currency contracts | Accrued and other current liabilities | 97 | (40) | 57 | ||||||||||
Total liability derivatives | $ | 135 | $ | (40) | $ | 95 |
Amount of Gain (Loss) Recognized in OCI1 - Pre-Tax | |||||||||||
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Derivatives designated as hedging instruments: | |||||||||||
Net investment hedges: | |||||||||||
Foreign currency contracts | $ | 37 | $ | (45) | $ | — | |||||
Cash flow hedges: | |||||||||||
Foreign currency contracts | 27 | (4) | — | ||||||||
Commodity contracts | 129 | (62) | 23 | ||||||||
Total derivatives designated as hedging instruments | $ | 193 | $ | (111) | $ | 23 | |||||
(in millions) | (in millions) | Amount of (Loss) Gain Recognized in Income - Pre-Tax1 | |||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||
Amount of (Loss) Gain Recognized in Income - Pre-Tax1 | |||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||||||||||||||||
Derivatives designated as hedging instruments: | Derivatives designated as hedging instruments: | ||||||||||||||||||||||
Cash flow hedges: | Cash flow hedges: | ||||||||||||||||||||||
Foreign currency contracts2 | Foreign currency contracts2 | $ | (29) | $ | 17 | $ | — | ||||||||||||||||
Commodity contracts2 | $ | (13 | ) | $ | 6 | $ | — | $ | 21 | Commodity contracts2 | 42 | (35) | (13) | ||||||||||
Total derivatives designated as hedging instruments | (13 | ) | 6 | — | 21 | Total derivatives designated as hedging instruments | 13 | (18) | (13) | ||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | ||||||||||||||||||||||
Foreign currency contracts3 | (58 | ) | 94 | 91 | (431 | ) | Foreign currency contracts3 | 18 | 89 | (58) | |||||||||||||
Foreign currency contracts2 | Foreign currency contracts2 | (14) | 14 | — | |||||||||||||||||||
Commodity contracts2 | 9 | 5 | — | 2 | Commodity contracts2 | (18) | 9 | 9 | |||||||||||||||
Total derivatives not designated as hedging instruments | (49 | ) | 99 | 91 | (429 | ) | Total derivatives not designated as hedging instruments | (14) | 112 | (49) | |||||||||||||
Total derivatives | $ | (62 | ) | $ | 105 | $ | 91 | $ | (408 | ) | Total derivatives | $ | (1) | $ | 94 | $ | (62) |
For | |||||
(In millions) | 2021 | ||||
Proceeds from sales of |
$ | 226 | ||
(7) | |
December 31, 2021 | Significant Other Observable Inputs | |||||||||||||
(In millions) | Level 1 | Level 2 | ||||||||||||
Assets at fair value: | ||||||||||||||
Marketable securities | $ | — | $ | 86 | ||||||||||
Derivatives relating to:1 | ||||||||||||||
Foreign currency | — | 68 | ||||||||||||
Equity securities2 | 48 | — | ||||||||||||
Total assets at fair value | $ | 48 | $ | 154 | ||||||||||
Liabilities at fair value: | ||||||||||||||
Derivatives relating to:1 | ||||||||||||||
Foreign currency | — | 24 | ||||||||||||
Total liabilities at fair value | $ | — | $ | 24 |
December 31, 2019 | Significant Other Observable Inputs (Level 2) | ||
(In millions) | |||
Assets at fair value: | |||
Cash equivalents and restricted cash equivalents1 | $ | 1,293 | |
Marketable securities | 5 | ||
Derivatives relating to:2 | |||
Foreign currency | 25 | ||
Total assets at fair value | $ | 1,323 | |
Liabilities at fair value: | |||
Long-term debt3 | $ | 119 | |
Derivatives relating to:2 | |||
Foreign currency | 43 | ||
Total liabilities at fair value | $ | 162 |
December 31, 2020 | Significant Other Observable Inputs | ||||||||||
(In millions) | Level 1 | Level 2 | |||||||||
Assets at fair value: | |||||||||||
Marketable securities | $ | — | $ | 43 | |||||||
Debt securities: | |||||||||||
U.S. treasuries3 | 226 | — | |||||||||
Derivatives relating to:1 | |||||||||||
Foreign currency | — | 55 | |||||||||
Total assets at fair value | $ | 226 | $ | 98 | |||||||
Liabilities at fair value: | |||||||||||
Derivatives relating to:1 | |||||||||||
Foreign currency | $ | — | $ | 135 | |||||||
Total liabilities at fair value | $ | — | $ | 135 |
December 31, 2018 | Significant Other Observable Inputs (Level 2) | ||
(In millions) | |||
Assets at fair value: | |||
Cash equivalents and restricted cash equivalents1 | $ | 1,221 | |
Marketable securities | 5 | ||
Derivatives relating to:2 | |||
Foreign currency | 72 | ||
Total assets at fair value | $ | 1,298 | |
Liabilities at fair value: | |||
Long-term debt3 | $ | 6,100 | |
Derivatives relating to:2 | |||
Foreign currency | 21 | ||
Total liabilities at fair value | $ | 6,121 |
Basis of Fair Value Measurements on a Nonrecurring Basis | Significant Other Unobservable Inputs (Level 3) | Total Losses | ||||||
(In millions) | ||||||||
2019 | ||||||||
Assets at fair value: | ||||||||
Developed technology | $ | — | $ | (1) | ||||
Other intangible assets | $ | — | $ | (6) | ||||
IPR&D | $ | — | $ | (137) | ||||
Basis of Fair Value Measurements on a Nonrecurring Basis | Significant Other Unobservable Inputs (Level 3) | Total Losses | ||||
(In millions) | ||||||
2019 | ||||||
Assets at fair value: | ||||||
Developed technology | $ | — | $ | (1 | ) | |
Other intangible assets | $ | — | $ | (6 | ) | |
IPR&D | $ | — | $ | (137 | ) | |
2018 | ||||||
Assets at fair value: | ||||||
Investment in nonconsolidated affiliates | $ | 51 | $ | (41 | ) | |
IPR&D | $ | 450 | $ | (85 | ) |
Net Sales | |||||||||||
For the Year Ended December 31, | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
United States | $ | 6,782 | $ | 6,510 | $ | 6,255 | |||||
Canada | 754 | 658 | 674 | ||||||||
EMEA | 3,123 | 2,842 | 2,740 | ||||||||
Latin America1 | 3,545 | 2,805 | 2,889 | ||||||||
Asia Pacific | 1,451 | 1,402 | 1,288 | ||||||||
Total | $ | 15,655 | $ | 14,217 | $ | 13,846 |
Net Sales | ||||||||||||
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
United States | $ | 6,255 | $ | 6,725 | $ | 1,091 | $ | 4,189 | ||||
Canada | 674 | 687 | 133 | 390 | ||||||||
EMEA | 2,740 | 2,765 | 535 | 1,287 | ||||||||
Asia Pacific | 1,288 | 1,293 | 428 | 380 | ||||||||
Latin America1 | 2,889 | 2,817 | 1,603 | 648 | ||||||||
Total | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 |
Net Property | |||||||||
(In millions) | 2019 | 2018 | 2017 | ||||||
United States | $ | 3,069 | $ | 3,161 | $ | 3,132 | |||
Canada | 125 | 88 | 90 | ||||||
EMEA | 566 | 546 | 570 | ||||||
Asia Pacific | 178 | 181 | 215 | ||||||
Latin America | 608 | 568 | 641 | ||||||
Total | $ | 4,546 | $ | 4,544 | $ | 4,648 |
Net Property | |||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
United States | $ | 3,051 | $ | 3,014 | $ | 3,069 | |||||
Canada | 114 | 122 | 125 | ||||||||
EMEA | 566 | 601 | 566 | ||||||||
Latin America | 468 | 510 | 608 | ||||||||
Asia Pacific | 130 | 149 | 178 | ||||||||
Total | $ | 4,329 | $ | 4,396 | $ | 4,546 |
(In millions) | Seed | Crop Protection | Total | ||||||||
As of and for the Year Ended December 31, 2021 | |||||||||||
Net sales | $ | 8,402 | $ | 7,253 | $ | 15,655 | |||||
Segment operating EBITDA | $ | 1,512 | $ | 1,202 | $ | 2,714 | |||||
Depreciation and amortization | $ | 866 | $ | 377 | $ | 1,243 | |||||
Segment assets | $ | 23,270 | $ | 12,428 | $ | 35,698 | |||||
Investments in nonconsolidated affiliates | $ | 29 | $ | 47 | $ | 76 | |||||
Purchases of property, plant and equipment | $ | 237 | $ | 336 | $ | 573 | |||||
As of and for the Year Ended December 31, 2020 | |||||||||||
Net sales | $ | 7,756 | $ | 6,461 | $ | 14,217 | |||||
Segment operating EBITDA | $ | 1,208 | $ | 1,004 | $ | 2,212 | |||||
Depreciation and amortization | $ | 798 | $ | 379 | $ | 1,177 | |||||
Segment assets | $ | 23,751 | $ | 13,099 | $ | 36,850 | |||||
Investments in nonconsolidated affiliates | $ | 22 | $ | 44 | $ | 66 | |||||
Purchases of property, plant and equipment | $ | 225 | $ | 250 | $ | 475 | |||||
As of and for the Year Ended December 31, 2019 | |||||||||||
Net sales | $ | 7,590 | $ | 6,256 | $ | 13,846 | |||||
Pro forma segment operating EBITDA | $ | 1,040 | $ | 1,066 | $ | 2,106 | |||||
Depreciation and amortization | $ | 628 | $ | 372 | $ | 1,000 | |||||
Segment assets1 | $ | 25,387 | $ | 13,492 | $ | 38,879 | |||||
Investments in nonconsolidated affiliates | $ | 27 | $ | 39 | $ | 66 | |||||
Purchase of property, plant and equipment | $ | 373 | $ | 293 | $ | 666 |
(In millions) | Seed | Crop Protection | Total | ||||||
As of and for the Year Ended December 31, 2019 (Successor) | |||||||||
Net sales | $ | 7,590 | $ | 6,256 | $ | 13,846 | |||
Pro forma segment operating EBITDA | $ | 1,040 | $ | 1,066 | $ | 2,106 | |||
Depreciation and amortization | $ | 628 | $ | 372 | $ | 1,000 | |||
Segment assets1 | $ | 25,387 | $ | 13,492 | $ | 38,879 | |||
Investments in nonconsolidated affiliates | $ | 27 | $ | 39 | $ | 66 | |||
Purchases of property, plant and equipment | $ | 373 | $ | 293 | $ | 666 | |||
As of and for the Year Ended December 31, 2018 (Successor) | |||||||||
Net sales | $ | 7,842 | $ | 6,445 | $ | 14,287 | |||
Pro forma segment operating EBITDA | $ | 1,139 | $ | 1,074 | $ | 2,213 | |||
Depreciation and amortization | $ | 534 | $ | 375 | $ | 909 | |||
Segment assets | $ | 29,286 | $ | 9,346 | $ | 38,632 | |||
Investments in nonconsolidated affiliates | $ | 102 | $ | 36 | $ | 138 | |||
Purchases of property, plant and equipment | $ | 263 | $ | 250 | $ | 513 |
1.On June 1, 2019, as |
Income (loss) from continuing operations after income taxes to segment operating EBITDA | For the Year Ended December 31, | |||||||||||||
(In millions) | 2021 | 2020 | 2019 | |||||||||||
Income (loss) from continuing operations after income taxes | $ | 1,822 | $ | 756 | $ | (270) | ||||||||
Provision for (benefit from) income taxes on continuing operations | 524 | (81) | (46) | |||||||||||
Income (loss) from continuing operations before income taxes | 2,346 | 675 | (316) | |||||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,000 | |||||||||||
Interest income | (77) | (56) | (59) | |||||||||||
Interest expense | 30 | 45 | 136 | |||||||||||
Exchange (gains) losses - net 1 | 54 | 174 | 66 | |||||||||||
Non-operating (benefits) costs - net | (1,256) | (316) | (129) | |||||||||||
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges2 | — | |||||||||||||
Significant items | 236 | 388 | 991 | |||||||||||
Pro forma adjustments | 298 | |||||||||||||
Corporate expenses | 138 | 125 | 119 | |||||||||||
Segment operating EBITDA3 | $ | 2,714 | $ | 2,212 | $ | 2,106 |
Income (loss) from continuing operations after income taxes to pro forma segment operating EBITDA1 (In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||
Loss from continuing operations after income taxes | $ | (270 | ) | $ | (6,775 | ) |
Benefit from income taxes on continuing operations | (46 | ) | (31 | ) | ||
Loss from continuing operations before income taxes | (316 | ) | (6,806 | ) | ||
Depreciation and amortization | 1,000 | 909 | ||||
Interest income | (59 | ) | (86 | ) | ||
Interest expense | 136 | 337 | ||||
Exchange losses - net 2 | 66 | 77 | ||||
Non-operating benefits - net | (129 | ) | (211 | ) | ||
Goodwill impairment charge | — | 4,503 | ||||
Significant items | 991 | 1,346 | ||||
Pro forma adjustments | 298 | 2,003 | ||||
Corporate expenses | 119 | 141 | ||||
Pro forma segment operating EBITDA | $ | 2,106 | $ | 2,213 |
Segment assets to total assets (in millions) | December 31, 2021 | December 31, 2020 | ||||||
Total segment assets | $ | 35,698 | $ | 36,850 | ||||
Corporate assets | 6,646 | 5,799 | ||||||
Total assets | $ | 42,344 | $ | 42,649 |
Other Items (in millions) | Segment Totals | Adjustments 1 | Consolidated Totals | ||||||||
For the Year Ended December 31, 2019 | |||||||||||
Depreciation and amortization | $ | 1,000 | $ | 599 | $ | 1,599 | |||||
Purchase of property, plant and equipment | $ | 666 | $ | 497 | $ | 1,163 |
Segment assets to total assets (in millions) | December 31, 2019 | December 31, 2018 | ||||
Total segment assets | $ | 38,879 | $ | 38,632 | ||
Corporate assets | 3,518 | 4,417 | ||||
Assets related to discontinued operations1 | — | 65,634 | ||||
Total assets | $ | 42,397 | $ | 108,683 |
Other Items (in millions) | Segment Totals | Adjustments 1 | Consolidated Totals | ||||||
As of and For the Year Ended December 31, 2019 | |||||||||
Depreciation and amortization | $ | 1,000 | $ | 599 | $ | 1,599 | |||
Investments in nonconsolidated affiliates | $ | 66 | $ | — | $ | 66 | |||
Purchase of property, plant, and equipment | $ | 666 | $ | 497 | $ | 1,163 | |||
As of and For the Year Ended December 31, 2018 | |||||||||
Depreciation and amortization | $ | 909 | $ | 1,881 | $ | 2,790 | |||
Investments in nonconsolidated affiliates | $ | 138 | $ | — | $ | 138 | |||
Purchase of property, plant, and equipment | $ | 513 | $ | 988 | $ | 1,501 |
(In millions) | Seed | Crop Protection | Corporate | Total | ||||||||
For the Year Ended December 31, 2019 | ||||||||||||
Restructuring and Asset Related Charges - Net 1 | $ | (213 | ) | $ | (23 | ) | $ | 14 | $ | (222 | ) | |
Integration and Separation Costs 2 | — | — | (632 | ) | (632 | ) | ||||||
Loss on Divestiture 3 | (24 | ) | — | — | (24 | ) | ||||||
Amortization of Inventory Step Up 4 | (67 | ) | — | — | (67 | ) | ||||||
Loss on Early Extinguishment of Debt 5 | — | — | (13 | ) | (13 | ) | ||||||
Argentina Currency Devaluation 6 | — | — | (33 | ) | (33 | ) | ||||||
Total | $ | (304 | ) | $ | (23 | ) | $ | (664 | ) | $ | (991 | ) |
(In millions) | Seed | Crop Protection | Corporate | Total | ||||||||||
For the Year Ended December 31, 2021 | ||||||||||||||
Restructuring and Asset Related Charges - Net 1 | $ | (152) | $ | (59) | $ | (78) | $ | (289) | ||||||
Equity securities mark-to-market gain (loss) | 47 | — | — | 47 | ||||||||||
Employee Retention Credit | 37 | 23 | — | 60 | ||||||||||
Contract termination | (30) | (24) | — | (54) | ||||||||||
Total | $ | (98) | $ | (60) | $ | (78) | $ | (236) |
(In millions) | Seed | Crop Protection | Corporate | Total | ||||||||||
For the Year Ended December 31, 2020 | ||||||||||||||
Restructuring and Asset Related Charges - Net 1 | $ | (165) | $ | (109) | $ | (61) | $ | (335) | ||||||
Loss on Divestiture 2 | — | (53) | — | (53) | ||||||||||
Total | $ | (165) | $ | (162) | $ | (61) | $ | (388) |
(In millions) | Seed | Crop Protection | Corporate | Total | ||||||||||
For the Year Ended December 31, 20193 | ||||||||||||||
Restructuring and Asset Related Charges - Net 1 | $ | (213) | $ | (23) | $ | 14 | $ | (222) | ||||||
Integration and Separation Costs 4 | — | — | (632) | (632) | ||||||||||
Loss on Divestiture 5 | (24) | — | — | (24) | ||||||||||
Amortization of Inventory Step Up 6 | (67) | — | — | (67) | ||||||||||
Loss on Early Extinguishment of Debt 7 | — | — | (13) | (13) | ||||||||||
Argentina Currency Devaluation 8 | — | — | (33) | (33) | ||||||||||
Total | $ | (304) | $ | (23) | $ | (664) | $ | (991) |
(In millions) | Seed | Crop Protection | Corporate | Total | ||||||||
For the Year Ended December 31, 2018 | ||||||||||||
Restructuring and Asset Related Charges - Net 1 | $ | (368 | ) | $ | (58 | ) | $ | (268 | ) | $ | (694 | ) |
Integration Costs 2 | — | — | (571 | ) | (571 | ) | ||||||
Gain on Sale 7 | 24 | — | — | 24 | ||||||||
Loss on Deconsolidation of Subsidiary 8 | (53 | ) | — | — | (53 | ) | ||||||
Loss on Divestiture 9 | (2 | ) | — | — | (2 | ) | ||||||
Income Tax Items 10 | — | — | (50 | ) | (50 | ) | ||||||
Total | $ | (399 | ) | $ | (58 | ) | $ | (889 | ) | $ | (1,346 | ) |
For the quarter ended | ||||||||||||||||
In millions, except per share amounts | March 31, | June 30, | September 30, | December 31, | ||||||||||||
2019 | ||||||||||||||||
Net sales | $ | 3,396 | $ | 5,556 | $ | 1,911 | $ | 2,983 | ||||||||
Cost of goods sold1 | 2,211 | 3,047 | 1,349 | 1,968 | ||||||||||||
Restructuring and asset related charges - net2 | 61 | 60 | 46 | 55 | ||||||||||||
Integration and separation costs2 | 212 | 330 | 152 | 50 | ||||||||||||
(Loss) income from continuing operations after income taxes | (184 | ) | 4 | 483 | 5 | (527 | ) | 6,7 | (42 | ) | 8 | |||||
Net income (loss) attributable to Corteva2 | 164 | (608 | ) | (494 | ) | (21 | ) | |||||||||
(Loss) earnings per common share, continuing operations - basic3 | (0.26 | ) | 0.63 | (0.69 | ) | (0.06 | ) | |||||||||
(Loss) earnings per common share, continuing operations - diluted3 | (0.26 | ) | 0.63 | (0.69 | ) | (0.06 | ) | |||||||||
2018 | ||||||||||||||||
Net sales | $ | 3,794 | $ | 5,731 | $ | 1,947 | $ | 2,815 | ||||||||
Cost of goods sold1 | 2,752 | 3,687 | 1,485 | 2,024 | ||||||||||||
Restructuring and asset related charges - net2 | 130 | 101 | 235 | 228 | ||||||||||||
Integration and separation costs2 | 195 | 249 | 253 | 295 | ||||||||||||
Goodwill impairment charge2 | — | — | 4,503 | — | ||||||||||||
(Loss) income from continuing operations after income taxes9 | (438 | ) | 10 | 375 | 11 | (5,642 | ) | 12 | (1,070 | ) | 4,5 | |||||
Net (loss) income attributable to Corteva2 | (107 | ) | 694 | (5,121 | ) | (531 | ) | |||||||||
(Loss) earnings per common share, continuing operations - basic3 | (0.60 | ) | 0.49 | (7.54 | ) | (1.43 | ) | |||||||||
(Loss) earnings per common share, continuing operations - diluted3 | (0.60 | ) | 0.49 | (7.54 | ) | (1.43 | ) |
For the Quarter Ended March 31, 2019 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | Corteva | ||||||||
Net sales | $ | 6,288 | $ | (4,341 | ) | $ | 1,449 | $ | 3,396 | |||
Cost of goods sold | $ | 4,235 | $ | (2,963 | ) | $ | 939 | $ | 2,211 | |||
Restructuring and asset related charges - net | $ | 55 | $ | (43 | ) | $ | 49 | $ | 61 | |||
Integration and separation costs | $ | 405 | $ | (193 | ) | $ | — | $ | 212 | |||
Income (loss) from continuing operations after income taxes | $ | 89 | $ | (369 | ) | $ | 96 | $ | (184 | ) | ||
Net income attributable to Corteva | $ | 85 | $ | (11 | ) | $ | 90 | $ | 164 |
For the Quarter Ended December 31, 2018 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | Corteva | ||||||||
Net sales | $ | 5,741 | $ | (4,350 | ) | $ | 1,424 | $ | 2,815 | |||
Cost of goods sold | $ | 3,980 | $ | (3,026 | ) | $ | 1,070 | $ | 2,024 | |||
Restructuring and asset related charges - net | $ | 115 | $ | (9 | ) | $ | 122 | $ | 228 | |||
Integration and separation costs | $ | 449 | $ | (154 | ) | $ | — | $ | 295 | |||
Loss from continuing operations after income taxes | $ | (351 | ) | $ | (573 | ) | $ | (146 | ) | $ | (1,070 | ) |
Net loss attributable to Corteva | $ | (354 | ) | $ | (28 | ) | $ | (149 | ) | $ | (531 | ) |
For the Quarter Ended March 31, 2018 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | Corteva | ||||||||
Net sales | $ | 6,699 | $ | (4,388 | ) | $ | 1,483 | $ | 3,794 | |||
Cost of goods sold | $ | 4,847 | $ | (3,003 | ) | $ | 908 | $ | 2,752 | |||
Restructuring and asset related charges - net | $ | 97 | $ | (38 | ) | $ | 71 | $ | 130 | |||
Integration and separation costs | $ | 255 | $ | (60 | ) | $ | — | $ | 195 | |||
Loss from continuing operations after income taxes | $ | (216 | ) | $ | (355 | ) | $ | 133 | $ | (438 | ) | |
Net loss attributable to Corteva | $ | (228 | ) | $ | (1 | ) | $ | 122 | $ | (107 | ) |
Page(s) | |||||
F-80 | |||||
Report of Independent Registered Public Accounting Firm (PCAOB ID 238) | F-81 | ||||
Consolidated Financial Statements: | |||||
F-83 | |||||
F-84 | |||||
F-85 | |||||
F-86 | |||||
F-88 | |||||
F-89 |
Charles V. Magro Chief Executive Officer and Director | David J. Anderson Executive Vice President, Chief Financial Officer and Director |
(In millions, except per share amounts) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net sales | $ | 15,655 | $ | 14,217 | $ | 13,846 | |||||
Cost of goods sold | 9,220 | 8,507 | 8,575 | ||||||||
Research and development expense | 1,187 | 1,142 | 1,147 | ||||||||
Selling, general and administrative expenses | 3,209 | 3,043 | 3,065 | ||||||||
Amortization of intangibles | 722 | 682 | 475 | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 222 | ||||||||
Integration and separation costs | — | — | 744 | ||||||||
Other income - net | 1,348 | 212 | 215 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Interest expense | 80 | 145 | 242 | ||||||||
Income (loss) from continuing operations before income taxes | 2,296 | 575 | (422) | ||||||||
Provision for (Benefit from) income taxes on continuing operations | 512 | (105) | (71) | ||||||||
Income (loss) from continuing operations after income taxes | 1,784 | 680 | (351) | ||||||||
Loss (income) from discontinued operations after income taxes | (53) | (55) | (671) | ||||||||
Net income (loss) | 1,731 | 625 | (1,022) | ||||||||
Net income (loss) attributable to noncontrolling interests | — | 10 | 8 | ||||||||
Net income (loss) attributable to E. I. du Pont de Nemours and Company | $ | 1,731 | $ | 615 | $ | (1,030) |
Successor | Predecessor | |||||||||||
(In millions, except per share amounts) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net sales | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 | ||||
Cost of goods sold | 8,575 | 9,948 | 2,915 | 3,409 | ||||||||
Other operating charges | 195 | |||||||||||
Research and development expense | 1,147 | 1,355 | 484 | 591 | ||||||||
Selling, general and administrative expenses | 3,065 | 3,041 | 920 | 1,969 | ||||||||
Amortization of intangibles | 475 | 391 | 97 | |||||||||
Restructuring and asset related charges - net | 222 | 694 | 270 | 12 | ||||||||
Integration and separation costs | 744 | 992 | 255 | |||||||||
Goodwill Impairment | — | 4,503 | — | — | ||||||||
Other income (expense) - net | 215 | 249 | 805 | (501 | ) | |||||||
Loss on early extinguishment of debt | 13 | 81 | — | — | ||||||||
Interest expense | 242 | 337 | 115 | 254 | ||||||||
Loss from continuing operations before income taxes | (422 | ) | (6,806 | ) | (461 | ) | (37 | ) | ||||
Benefit from income taxes on continuing operations | (71 | ) | (31 | ) | (2,221 | ) | (395 | ) | ||||
(Loss) income from continuing operations after income taxes | (351 | ) | (6,775 | ) | 1,760 | 358 | ||||||
(Loss) income from discontinued operations after income taxes | (671 | ) | 1,748 | (568 | ) | 1,403 | ||||||
Net (loss) income | (1,022 | ) | (5,027 | ) | 1,192 | 1,761 | ||||||
Net income attributable to noncontrolling interests | 8 | 28 | 7 | 20 | ||||||||
Net (loss) income attributable to E. I. du Pont de Nemours and Company | $ | (1,030 | ) | $ | (5,055 | ) | $ | 1,185 | $ | 1,741 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Net income (loss) | $ | 1,731 | $ | 625 | $ | (1,022) | |||||
Other comprehensive income (loss) - net of tax: | |||||||||||
Cumulative translation adjustments | (573) | (26) | (274) | ||||||||
Adjustments to pension benefit plans | 1,037 | (186) | (718) | ||||||||
Adjustments to other benefit plans | (621) | 671 | (160) | ||||||||
Unrealized gain (loss) on investments | 10 | (10) | — | ||||||||
Derivative instruments | 139 | (69) | 28 | ||||||||
Total other comprehensive income (loss) | (8) | 380 | (1,124) | ||||||||
Comprehensive income (loss) | 1,723 | 1,005 | (2,146) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests - net of tax | — | 10 | 8 | ||||||||
Comprehensive income (loss) attributable to E. I. du Pont de Nemours and Company | $ | 1,723 | $ | 995 | $ | (2,154) |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Net (loss) income | $ | (1,022 | ) | $ | (5,027 | ) | $ | 1,192 | $ | 1,761 | ||
Other comprehensive (loss) income - net of tax: | ||||||||||||
Cumulative translation adjustments | (274 | ) | (1,576 | ) | (490 | ) | 1,042 | |||||
Adjustments to pension benefit plans | (718 | ) | (715 | ) | 125 | 247 | ||||||
Adjustments to other benefit plans | (160 | ) | 132 | (53 | ) | 10 | ||||||
Derivative instruments | 28 | (24 | ) | (2 | ) | (10 | ) | |||||
Total other comprehensive (loss) income | (1,124 | ) | (2,183 | ) | (420 | ) | 1,289 | |||||
Comprehensive (loss) income | (2,146 | ) | (7,210 | ) | 772 | 3,050 | ||||||
Comprehensive income attributable to noncontrolling interests - net of tax | 8 | 28 | 7 | 20 | ||||||||
Comprehensive (loss) income attributable to E. I. du Pont de Nemours and Company | $ | (2,154 | ) | $ | (7,238 | ) | $ | 765 | $ | 3,030 |
(In millions, except share and per share amounts) | December 31, 2019 | December 31, 2018 | (In millions, except share and per share amounts) | December 31, 2021 | December 31, 2020 | |||||||||
Assets | Assets | |||||||||||||
Current assets | Current assets | |||||||||||||
Cash and cash equivalents | $ | 1,764 | $ | 2,270 | Cash and cash equivalents | $ | 4,459 | $ | 3,526 | |||||
Marketable securities | 5 | 5 | Marketable securities | 86 | 269 | |||||||||
Accounts and notes receivable - net | 5,528 | 5,260 | Accounts and notes receivable - net | 4,811 | 4,926 | |||||||||
Inventories | 5,032 | 5,310 | Inventories | 5,180 | 4,882 | |||||||||
Other current assets | 1,190 | 1,038 | Other current assets | 1,010 | 1,165 | |||||||||
Assets of discontinued operations - current | — | 9,089 | ||||||||||||
Total current assets | 13,519 | 22,972 | Total current assets | 15,546 | 14,768 | |||||||||
Investment in nonconsolidated affiliates | 66 | 138 | Investment in nonconsolidated affiliates | 76 | 66 | |||||||||
Property, plant and equipment | 7,872 | 7,340 | Property, plant and equipment | 8,364 | 8,253 | |||||||||
Less: Accumulated depreciation | 3,326 | 2,796 | Less: Accumulated depreciation | 4,035 | 3,857 | |||||||||
Net property, plant and equipment | 4,546 | 4,544 | Net property, plant and equipment | 4,329 | 4,396 | |||||||||
Goodwill | 10,229 | 10,193 | Goodwill | 10,107 | 10,269 | |||||||||
Other intangible assets | 11,424 | 12,055 | Other intangible assets | 10,044 | 10,747 | |||||||||
Deferred income taxes | 287 | 304 | Deferred income taxes | 438 | 464 | |||||||||
Other assets | 2,326 | 1,932 | Other assets | 1,804 | 1,939 | |||||||||
Assets of discontinued operations - non-current | — | 56,545 | ||||||||||||
Total Assets | $ | 42,397 | $ | 108,683 | Total Assets | $ | 42,344 | $ | 42,649 | |||||
Liabilities and Equity | Liabilities and Equity | |||||||||||||
Current liabilities | Current liabilities | |||||||||||||
Short-term borrowings and finance lease obligations | $ | 7 | $ | 2,154 | Short-term borrowings and finance lease obligations | $ | 17 | $ | 3 | |||||
Accounts payable | 3,702 | 3,798 | Accounts payable | 4,126 | 3,615 | |||||||||
Income taxes payable | 95 | 186 | Income taxes payable | 146 | 123 | |||||||||
Deferred Revenue | Deferred Revenue | 3,201 | 2,662 | |||||||||||
Accrued and other current liabilities | 4,440 | 4,005 | Accrued and other current liabilities | 2,070 | 2,148 | |||||||||
Liabilities of discontinued operations - current | — | 3,167 | ||||||||||||
Total current liabilities | 8,244 | 13,310 | Total current liabilities | 9,560 | 8,551 | |||||||||
Long-Term Debt | 115 | 5,784 | ||||||||||||
Long-Term Debt - Related Party | 4,021 | — | ||||||||||||
Other Noncurrent Liabilities | ||||||||||||||
Long-term debt | Long-term debt | 1,100 | 1,102 | |||||||||||
Long-term debt - Related party | Long-term debt - Related party | 2,162 | 3,459 | |||||||||||
Other noncurrent liabilities | Other noncurrent liabilities | |||||||||||||
Deferred income tax liabilities | 920 | 1,480 | Deferred income tax liabilities | 1,220 | 893 | |||||||||
Pension and other post employment benefits - noncurrent | 6,377 | 5,677 | Pension and other post employment benefits - noncurrent | 3,124 | 5,176 | |||||||||
Other noncurrent obligations | 2,192 | 1,795 | Other noncurrent obligations | 1,719 | 1,867 | |||||||||
Liabilities of discontinued operations - non-current | — | 5,484 | ||||||||||||
Total noncurrent liabilities | 13,625 | 20,220 | Total noncurrent liabilities | 9,325 | 12,497 | |||||||||
Commitments and contingent liabilities | Commitments and contingent liabilities | |||||||||||||
Stockholders’ equity | Stockholders’ equity | |||||||||||||
Preferred stock, without par value – cumulative; 23,000,000 shares authorized; issued at December 31, 2019, December 31, 2018: | ||||||||||||||
Preferred stock, without par value – cumulative; 23,000,000 shares authorized; issued at December 31, 2021, December 31, 2020: | Preferred stock, without par value – cumulative; 23,000,000 shares authorized; issued at December 31, 2021, December 31, 2020: | |||||||||||||
$4.50 Series – 1,673,000 shares (callable at $120) | 169 | — | $4.50 Series – 1,673,000 shares (callable at $120) | 169 | 169 | |||||||||
$3.50 Series – 700,000 shares (callable at $102) | 70 | — | $3.50 Series – 700,000 shares (callable at $102) | 70 | 70 | |||||||||
Common stock, $0.30 par value; 1,800,000,000 shares authorized; issued at December 31, 2019 - 200, December 31, 2018 - 100 | — | — | ||||||||||||
Common stock, $0.30 par value; 1,800,000,000 shares authorized; 200 issued at December 31, 2021 and December 31, 2020 | Common stock, $0.30 par value; 1,800,000,000 shares authorized; 200 issued at December 31, 2021 and December 31, 2020 | — | — | |||||||||||
Additional paid-in capital | 23,958 | — | Additional paid-in capital | 24,196 | 24,049 | |||||||||
Divisional equity | — | 78,259 | ||||||||||||
Accumulated deficit | (406 | ) | — | |||||||||||
Accumulated other comprehensive loss | (3,270 | ) | (3,360 | ) | ||||||||||
Retained earnings (accumulated deficit) | Retained earnings (accumulated deficit) | 1,922 | 203 | |||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | (2,898) | (2,890) | |||||||||||
Total E. I. du Pont de Nemours and Company stockholders’ equity | 20,521 | 74,899 | Total E. I. du Pont de Nemours and Company stockholders’ equity | 23,459 | 21,601 | |||||||||
Noncontrolling interests | 7 | 254 | Noncontrolling interests | — | — | |||||||||
Total equity | 20,528 | 75,153 | Total equity | 23,459 | 21,601 | |||||||||
Total Liabilities and Equity | $ | 42,397 | $ | 108,683 | Total Liabilities and Equity | $ | 42,344 | $ | 42,649 |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 1,731 | $ | 625 | $ | (1,022) | |||||
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,599 | ||||||||
Provision for (benefit from) deferred income tax | 174 | (330) | (477) | ||||||||
Net periodic pension and OPEB benefit, net | (1,292) | (340) | (177) | ||||||||
Pension and OPEB contributions | (247) | (269) | (323) | ||||||||
Net (gain) loss on sales of property, businesses, consolidated companies, and investments | (21) | 3 | (142) | ||||||||
Restructuring and asset related charges - net | 289 | 335 | 339 | ||||||||
Amortization of inventory step-up | — | — | 272 | ||||||||
Goodwill impairment charge | — | — | 1,102 | ||||||||
Loss on early extinguishment of debt | — | — | 13 | ||||||||
Other net loss | 156 | 290 | 246 | ||||||||
Changes in assets and liabilities, net | |||||||||||
Accounts and notes receivable | (113) | 187 | (361) | ||||||||
Inventories | (422) | 104 | 74 | ||||||||
Accounts payable | 524 | (118) | 149 | ||||||||
Deferred Revenue | 574 | 71 | 632 | ||||||||
Other assets and liabilities | 93 | 251 | (928) | ||||||||
Cash provided by (used for) operating activities | 2,689 | 1,986 | 996 | ||||||||
Investing activities | |||||||||||
Capital expenditures | (573) | (475) | (1,163) | ||||||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 75 | 83 | 249 | ||||||||
Acquisitions of businesses - net of cash acquired | — | — | (10) | ||||||||
Investments in and loans to nonconsolidated affiliates | (4) | (1) | (10) | ||||||||
Proceeds from sale of ownership interest in nonconsolidated affiliates | — | — | 21 | ||||||||
Purchases of investments | (204) | (995) | (138) | ||||||||
Proceeds from sales and maturities of investments | 345 | 721 | 160 | ||||||||
Other investing activities, net | (1) | (7) | (13) | ||||||||
Cash provided by (used for) investing activities | (362) | (674) | (904) | ||||||||
Financing activities | |||||||||||
Net change in borrowings (less than 90 days) | 13 | — | (1,868) | ||||||||
Proceeds from related party debt | 52 | 103 | 4,240 | ||||||||
Payments on related party debt | (1,349) | (665) | (219) | ||||||||
Proceeds from debt | 419 | 2,439 | 1,001 | ||||||||
Payments on debt | (421) | (1,441) | (6,804) | ||||||||
Proceeds from exercise of stock options | 100 | 56 | 47 | ||||||||
Payment for acquisition of subsidiary's interest from the noncontrolling interest | — | (60) | — | ||||||||
Distributions to DowDuPont | — | — | (317) | ||||||||
Cash transferred to DowDuPont at Internal Reorganization | — | — | (2,053) | ||||||||
Contributions from Dow and DowDuPont | — | — | 3,255 | ||||||||
Debt extinguishment costs | — | — | (79) | ||||||||
Other financing activities, net | (42) | (51) | (58) | ||||||||
Cash provided by (used for) financing activities | (1,228) | 381 | (2,855) | ||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | (136) | 7 | (88) | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash equivalents | 963 | 1,700 | (2,851) | ||||||||
Cash, cash equivalents and restricted cash equivalents at beginning of period | 3,873 | 2,173 | 5,024 | ||||||||
Cash, cash equivalents and restricted cash equivalents at end of period | $ | 4,836 | $ | 3,873 | $ | 2,173 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Operating activities | ||||||||||||
Net (loss) income | $ | (1,022 | ) | $ | (5,027 | ) | $ | 1,192 | $ | 1,761 | ||
Adjustments to reconcile net (loss) income to cash used for operating activities: | ||||||||||||
Depreciation and amortization | 1,599 | 2,790 | 886 | 749 | ||||||||
(Benefit from) provision for deferred income tax | (477 | ) | 31 | (2,770 | ) | |||||||
Net periodic pension (benefit) cost | (264 | ) | (321 | ) | (113 | ) | 295 | |||||
Pension contributions | (121 | ) | (1,314 | ) | (68 | ) | (3,024 | ) | ||||
Net gain on sales of property, businesses, consolidated companies, and investments | (142 | ) | (11 | ) | (691 | ) | (204 | ) | ||||
Goodwill impairment charge | 1,102 | 4,503 | — | — | ||||||||
Loss on early extinguishment of debt | 13 | 81 | — | — | ||||||||
Restructuring and asset related charges - net | 339 | 803 | 378 | |||||||||
Asset related charges | 279 | |||||||||||
Amortization of inventory step-up | 272 | 1,628 | 1,573 | |||||||||
Other net loss | 246 | 262 | 106 | 481 | ||||||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||||||
Accounts and notes receivable | (361 | ) | (1,522 | ) | 1,576 | (2,269 | ) | |||||
Inventories | 74 | (498 | ) | (903 | ) | |||||||
Inventories and other operating assets | (202 | ) | ||||||||||
Accounts payable | 149 | 642 | 1,106 | |||||||||
Accounts payable and other operating liabilities | (1,555 | ) | ||||||||||
Other assets and liabilities | (411 | ) | (1,564 | ) | 1,402 | |||||||
Accrued interest and income taxes | (260 | ) | ||||||||||
Cash provided by (used for) operating activities | 996 | 483 | 3,674 | (3,949 | ) | |||||||
Investing activities | ||||||||||||
Capital expenditures | (1,163 | ) | (1,501 | ) | (499 | ) | (687 | ) | ||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 249 | 69 | 2,351 | 300 | ||||||||
Acquisitions of businesses - net of cash acquired | (10 | ) | — | 3 | (246 | ) | ||||||
Investments in and loans to nonconsolidated affiliates | (10 | ) | (8 | ) | (5 | ) | (22 | ) | ||||
Proceeds from sale of ownership interest in nonconsolidated affiliates | 21 | 9 | — | — | ||||||||
Purchases of investments | (138 | ) | (1,257 | ) | (1,043 | ) | (5,457 | ) | ||||
Proceeds from sales and maturities of investments | 160 | 2,186 | 2,938 | 3,977 | ||||||||
Foreign currency exchange contract settlements | (206 | ) | ||||||||||
Other investing activities - net | (13 | ) | (3 | ) | (67 | ) | (41 | ) | ||||
Cash (used for) provided by investing activities | (904 | ) | (505 | ) | 3,678 | (2,382 | ) | |||||
Financing activities | ||||||||||||
Change in short-term (less than 90 days) borrowings | (1,868 | ) | 400 | (2,541 | ) | 3,610 | ||||||
Proceeds from related party long term debt | 4,240 | — | — | — | ||||||||
Payments on related party long term debt | (219 | ) | — | — | — | |||||||
Proceeds from issuance of long-term debt | 1,001 | 756 | 499 | 2,734 | ||||||||
Payments on long-term debt | (6,804 | ) | (5,956 | ) | (43 | ) | (229 | ) | ||||
Proceeds from exercise of stock options | 47 | 85 | 30 | 235 | ||||||||
Dividends paid to stockholders | (10 | ) | (10 | ) | (332 | ) | (666 | ) |
(In millions) | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 20191 | |||||||||
Supplemental cash flow information | |||||||||||
Cash paid during the period for | |||||||||||
Interest, net of amounts capitalized2 | $ | 30 | $ | 36 | $ | 263 | |||||
Income taxes | 341 | 229 | 234 |
Successor | Predecessor | |||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
Distributions to Dow and DowDuPont | (317 | ) | (2,806 | ) | (1,200 | ) | ||||||
Contributions from Dow and DowDuPont | 3,255 | 5,363 | — | |||||||||
Cash transferred to DowDuPont at Internal Reorganization | (2,053 | ) | — | — | ||||||||
Debt extinguishment costs | (79 | ) | (378 | ) | — | — | ||||||
Other financing activities | (48 | ) | (78 | ) | (20 | ) | (52 | ) | ||||
Cash (used for) provided by financing activities | (2,855 | ) | (2,624 | ) | (3,607 | ) | 5,632 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (88 | ) | (244 | ) | (22 | ) | 187 | |||||
Change in cash classified as held for sale | — | — | 88 | (31 | ) | |||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (2,851 | ) | (2,890 | ) | 3,811 | (543 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 5,024 | 7,914 | 4,103 | 4,548 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,173 | $ | 5,024 | $ | 7,914 | $ | 4,005 | ||||
Supplemental cash flow information | ||||||||||||
Cash paid (received) during the period for | ||||||||||||
Interest, net of amounts capitalized | $ | 263 | $ | 923 | $ | 83 | $ | 331 | ||||
Income taxes | 234 | 961 | (215 | ) | 272 |
(In millions) | Preferred Stock | Common Stock | Additional Paid-in Capital "APIC" | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Income (Loss) | Non-controlling Interests | Total Equity | |||||||||||||||||||||
Balance at January 1, 2019 | $ | — | $ | — | $ | — | $ | 78,259 | $ | — | $ | (3,360) | $ | 254 | $ | 75,153 | |||||||||||||
Net (loss) income | (640) | (390) | 8 | (1,022) | |||||||||||||||||||||||||
Other comprehensive income (loss) | (1,124) | (1,124) | |||||||||||||||||||||||||||
Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (2) | (2) | (6) | (10) | |||||||||||||||||||||||||
Distributions to DowDuPont | (317) | (317) | |||||||||||||||||||||||||||
Contributions from DowDuPont | 3,255 | 3,255 | |||||||||||||||||||||||||||
Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||||||||
Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||||||||
Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||||||||
Impact of Internal Reorganizations | (56,479) | 1,214 | (231) | (55,496) | |||||||||||||||||||||||||
Reclassification of Divisional Equity to Additional Paid-in Capital | 239 | 23,936 | (24,175) | — | |||||||||||||||||||||||||
Other - net | (25) | (2) | (10) | (24) | (61) | ||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 239 | $ | — | $ | 23,958 | $ | (406) | $ | (3,270) | $ | 7 | $ | 20,528 | |||||||||||||||
Net income (loss) | 615 | 10 | 625 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | 380 | 380 | |||||||||||||||||||||||||||
Issuance of Corteva Stock | 56 | 56 | |||||||||||||||||||||||||||
Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (5) | (5) | (10) | ||||||||||||||||||||||||||
Share-based compensation | 60 | (1) | 59 | ||||||||||||||||||||||||||
Acquisition of noncontrolling interest in consolidated subsidiaries | (37) | (15) | (52) | ||||||||||||||||||||||||||
Other - net | 17 | (2) | 15 | ||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 239 | $ | — | $ | 24,049 | $ | 203 | $ | (2,890) | $ | — | $ | 21,601 | |||||||||||||||
Net income (loss) | 1,731 | 1,731 | |||||||||||||||||||||||||||
Other comprehensive income (loss) | (8) | (8) | |||||||||||||||||||||||||||
Issuance of Corteva Stock | 100 | 100 | |||||||||||||||||||||||||||
Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (10) | (10) | |||||||||||||||||||||||||||
Share-based compensation | 59 | (3) | 56 | ||||||||||||||||||||||||||
Other - net | (12) | 1 | (11) | ||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 239 | $ | — | $ | 24,196 | $ | 1,922 | $ | (2,898) | $ | — | $ | 23,459 |
(In millions) | Preferred Stock | Common Stock | Additional Paid-in Capital | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Loss | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||
Predecessor | |||||||||||||||||||||||||||
Balance at January 1, 2017 | $ | 237 | $ | 285 | $ | 11,190 | $ | 14,924 | $ | (9,911 | ) | $ | (6,727 | ) | $ | 198 | $ | 10,196 | |||||||||
Net income | 1,741 | 20 | 1,761 | ||||||||||||||||||||||||
Other comprehensive income | 1,289 | 1,289 | |||||||||||||||||||||||||
Common dividends ($1.14 per share) | (991 | ) | (4 | ) | (995 | ) | |||||||||||||||||||||
Preferred dividends ($4.50 Series - $3.375 per share, $3.50 Series - $2.625 per share) | (7 | ) | (7 | ) | |||||||||||||||||||||||
Share-based compensation | 2 | 273 | 275 | ||||||||||||||||||||||||
Common stock retired | (26 | ) | (1,044 | ) | (5,657 | ) | 6,727 | — | |||||||||||||||||||
Other | (2 | ) | (2 | ) | |||||||||||||||||||||||
Balance at August 31, 2017 | $ | 237 | $ | 261 | $ | 10,419 | $ | 10,010 | $ | (8,622 | ) | $ | — | $ | 212 | $ | 12,517 | ||||||||||
Successor | |||||||||||||||||||||||||||
Balance at September 1, 2017 (remeasured upon Merger) | $ | — | $ | — | $ | — | $ | 80,526 | $ | — | $ | (757 | ) | $ | — | $ | 204 | $ | 79,973 | ||||||||
Net income | 1,185 | 7 | 1,192 | ||||||||||||||||||||||||
Other comprehensive loss | (420 | ) | (420 | ) | |||||||||||||||||||||||
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share) | (3 | ) | (3 | ) | |||||||||||||||||||||||
Distributions to Dow and DowDuPont | (1,200 | ) | (1,200 | ) | |||||||||||||||||||||||
Issuance of DowDuPont stock | 30 | 30 | |||||||||||||||||||||||||
Share-based compensation | 36 | 36 | |||||||||||||||||||||||||
Other | (17 | ) | 2 | (15 | ) | ||||||||||||||||||||||
Balance at December 31, 2017 | $ | — | $ | — | $ | — | $ | 80,557 | $ | — | $ | (1,177 | ) | $ | — | $ | 213 | $ | 79,593 | ||||||||
Net (loss) income | (5,055 | ) | 28 | (5,027 | ) | ||||||||||||||||||||||
Other comprehensive loss | (2,183 | ) | (2,183 | ) | |||||||||||||||||||||||
Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (10 | ) | (10 | ) | |||||||||||||||||||||||
Distributions to Dow and DowDuPont | (2,806 | ) | (2,806 | ) | |||||||||||||||||||||||
Issuance of DowDuPont stock | 85 | 85 | |||||||||||||||||||||||||
Share-based compensation | 129 | 129 | |||||||||||||||||||||||||
Contributions from Dow and DowDuPont | 5,363 | 5,363 | |||||||||||||||||||||||||
Other | (4 | ) | 13 | 9 | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | — | $ | — | $ | — | $ | 78,259 | $ | — | $ | (3,360 | ) | $ | — | $ | 254 | $ | 75,153 | ||||||||
Net (loss) income | (640 | ) | (390 | ) | 8 | (1,022 | ) | ||||||||||||||||||||
Other comprehensive loss | (1,124 | ) | (1,124 | ) | |||||||||||||||||||||||
Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (2 | ) | (2 | ) | (6 | ) | (10 | ) | |||||||||||||||||||
Distributions to Dow and DowDuPont | (317 | ) | (317 | ) | |||||||||||||||||||||||
Contributions from DowDuPont | 3,255 | 3,255 | |||||||||||||||||||||||||
Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||||||
Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||||||
Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||||||
Impact of Internal Reorganizations | (56,479 | ) | 1,214 | (231 | ) | (55,496 | ) | ||||||||||||||||||||
Reclassification of Divisional Equity to Additional Paid-in Capital | 239 | 23,936 | (24,175 | ) | — | ||||||||||||||||||||||
Other | (25 | ) | (2 | ) | (10 | ) | (24 | ) | (61 | ) | |||||||||||||||||
Balance at December 31, 2019 | $ | 239 | $ | — | $ | 23,958 | $ | — | $ | (406 | ) | $ | (3,270 | ) | $ | — | $ | 7 | $ | 20,528 |
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•Preferred Stock - EID has preferred stock outstanding to third parties which is accounted for as a noncontrolling interest at the Corteva, Inc. level. Each share of EID Preferred Stock - $4.50 Series and EID Preferred Stock - $3.50 Series issued and outstanding at the effective date of the Corteva Distribution remains issued and outstanding as to EID and was unaffected by the Corteva Distribution. •Related Party Loan - EID engaged in a series of debt redemptions during the second quarter of 2019 that were partially funded through an intercompany loan from Corteva, Inc. This was eliminated in consolidation at the Corteva, Inc. level but remains on EID's financial statements at the standalone level (including the associated interest). •Capital Structure - At December 31, 2021, Corteva, Inc.'s capital structure consists of 726,527,000 issued shares of common stock, par value $0.01 per share. |
•Note 1 - Background and Basis of Presentation - refer to page F-12 of the Corteva, Inc. Consolidated Financial Statements |
Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | For the Year Ended December 31, | ||||||||||
(In millions) | 2021 | 2020 | 2019 | ||||||||
Income (loss) from continuing operations before income taxes | |||||||||||
Domestic | $ | 892 | $ | (183) | $ | (1,458) | |||||
Foreign | 1,404 | 758 | 1,036 | ||||||||
Income (loss) from continuing operations before income taxes | $ | 2,296 | $ | 575 | $ | (422) | |||||
Current tax expense (benefit) | |||||||||||
Federal | $ | (23) | $ | 8 | $ | (11) | |||||
State and local | 4 | 5 | 1 | ||||||||
Foreign | 329 | 222 | 317 | ||||||||
Total current tax expense (benefit) | $ | 310 | $ | 235 | $ | 307 | |||||
Deferred tax (benefit) expense | |||||||||||
Federal | $ | 164 | $ | (116) | $ | (417) | |||||
State and local | 55 | 27 | 156 | ||||||||
Foreign | (17) | (251) | (117) | ||||||||
Total deferred tax expense (benefit) | $ | 202 | $ | (340) | $ | (378) | |||||
Provision for (benefit from) income taxes on continuing operations | 512 | (105) | (71) | ||||||||
Net income (loss) from continuing operations | $ | 1,784 | $ | 680 | $ | (351) |
Geographic Allocation of (Loss) Income and Provision for (Benefit from) Income Taxes | Successor | Predecessor | ||||||||||
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | ||||||||
(Loss) Income from continuing operations before income taxes | ||||||||||||
Domestic | $ | (1,458 | ) | $ | (5,040 | ) | $ | (961 | ) | $ | (519 | ) |
Foreign | 1,036 | (1,766 | ) | 500 | 482 | |||||||
Loss from continuing operations before income taxes | $ | (422 | ) | $ | (6,806 | ) | $ | (461 | ) | $ | (37 | ) |
Current tax expense (benefit) | ||||||||||||
Federal | $ | (11 | ) | $ | (112 | ) | $ | 8 | $ | (581 | ) | |
State and local | 1 | (32 | ) | 11 | (117 | ) | ||||||
Foreign | 317 | 446 | 287 | 81 | ||||||||
Total current tax expense (benefit) | $ | 307 | $ | 302 | $ | 306 | $ | (617 | ) | |||
Deferred tax (benefit) expense | ||||||||||||
Federal | $ | (417 | ) | $ | (124 | ) | $ | (2,373 | ) | $ | 188 | |
State and local | 156 | (39 | ) | 3 | 79 | |||||||
Foreign | (117 | ) | (170 | ) | (157 | ) | (45 | ) | ||||
Total deferred tax (benefit) expense | $ | (378 | ) | $ | (333 | ) | $ | (2,527 | ) | $ | 222 | |
Benefit from income taxes on continuing operations | (71 | ) | (31 | ) | (2,221 | ) | (395 | ) | ||||
Net (loss) income from continuing operations | $ | (351 | ) | $ | (6,775 | ) | $ | 1,760 | $ | 358 |
Reconciliation to U.S. Statutory Rate | For the Year Ended December 31, | ||||||||||
2021 | 2020 | 2019 | |||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
Effective tax rates on international operations - net 1 | (2.6) | (16.4) | (13.8) | ||||||||
Acquisitions, divestitures and ownership restructuring activities 2 | (0.1) | (0.3) | (8.0) | ||||||||
U.S. research and development credit | (2.5) | (3.4) | 5.2 | ||||||||
Exchange gains/losses 3 | 1.9 | 4.1 | (1.3) | ||||||||
State and local income taxes - net | 2.2 | 4.2 | 3.0 | ||||||||
Impact of Swiss Tax Reform 4 | 0.2 | (31.7) | 8.9 | ||||||||
Excess tax benefits/deficiencies from stock compensation | (0.2) | 1.2 | (0.5) | ||||||||
Tax settlements and expiration of statute of limitations | — | 0.4 | 2.9 | ||||||||
Other - net | 2.3 | 2.6 | (0.6) | ||||||||
Effective tax rate | 22.2 | % | (18.3) | % | 16.8 | % |
Reconciliation to U.S. Statutory Rate | Successor | Predecessor | ||||||
For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | For the Period September 1 through December 31, 2017 | For the Period January 1 through August 31, 2017 | |||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 35.0 | % | 35.0 | % |
Equity earning effect | 0.1 | 0.1 | 1.9 | (2.7 | ) | |||
Effective tax rates on international operations - net 1 | (13.8 | ) | 0.4 | 24.3 | 244.9 | |||
Acquisitions, divestitures and ownership restructuring activities 2, 3, 4 | (8.0 | ) | (2.3 | ) | 63.0 | (64.7 | ) | |
U.S. research and development credit | 5.2 | 0.1 | 1.4 | 24.4 | ||||
Exchange gains/losses 5 | (1.3 | ) | (1.3 | ) | (8.8 | ) | 650.1 | |
SAB 118 Impact of Enactment of U.S. Tax Reform6 | — | (3.0 | ) | 371.2 | — | |||
Impact of Swiss Tax Reform7 | 8.9 | — | — | — | ||||
Excess tax benefits (tax deficiency) from stock compensation | (0.5 | ) | 0.1 | 1.0 | 38.3 | |||
Tax settlements and expiration of statute of limitations8 | 2.9 | (0.1 | ) | — | 146.4 | |||
Goodwill impairment 9 | — | (15.2 | ) | — | — | |||
Other - net | 2.3 | 0.7 | (7.2 | ) | (4.1 | ) | ||
Effective tax rate | 16.8 | % | 0.5 | % | 481.8 | % | 1,067.6 | % |
Income (loss) from continuing operations after income taxes to segment operating EBITDA (In millions) | For the Year Ended December 31, | |||||||||||||
2021 | 2020 | 2019 | ||||||||||||
Income (loss) from continuing operations after income taxes | $ | 1,784 | $ | 680 | $ | (351) | ||||||||
Provision for (benefit from) income taxes on continuing operations | 512 | (105) | (71) | |||||||||||
Income (loss) from continuing operations before income taxes | 2,296 | 575 | (422) | |||||||||||
Depreciation and amortization | 1,243 | 1,177 | 1,000 | |||||||||||
Interest income | (77) | (56) | (59) | |||||||||||
Interest expense | 80 | 145 | 242 | |||||||||||
Exchange losses - net1 | 54 | 174 | 66 | |||||||||||
Non-operating (benefits) costs - net | (1,256) | (316) | (129) | |||||||||||
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges2 | — | |||||||||||||
Significant items | 236 | 388 | 991 | |||||||||||
Pro forma adjustments | 298 | |||||||||||||
Corporate expenses | 138 | 125 | 119 | |||||||||||
Segment operating EBITDA3 | $ | 2,714 | $ | 2,212 | $ | 2,106 |
Loss from continuing operations after income taxes to pro forma segment operating EBITDA1 (In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||
Loss from continuing operations after income taxes | $ | (351 | ) | $ | (6,775 | ) |
Benefit from income taxes on continuing operations | (71 | ) | (31 | ) | ||
Loss from continuing operations before income taxes | (422 | ) | (6,806 | ) | ||
Depreciation and amortization | 1,000 | 909 | ||||
Interest income | (59 | ) | (86 | ) | ||
Interest expense | 242 | 337 | ||||
Exchange losses - net 2 | 66 | 77 | ||||
Non-operating benefits - net | (129 | ) | (211 | ) | ||
Goodwill impairment charge | — | 4,503 | ||||
Significant items | 991 | 1,346 | ||||
Pro forma adjustments | 298 | 2,003 | ||||
Corporate expenses | 119 | 141 | ||||
Pro forma segment operating EBITDA | $ | 2,106 | $ | 2,213 |
1. |
For the quarter ended | ||||||||||||||||
In millions (unaudited) | March 31, | June 30, | September 30, | December 31, | ||||||||||||
2019 | ||||||||||||||||
(Loss) income from continuing operations after income taxes | $ | (184 | ) | $ | 460 | $ | (557 | ) | $ | (70 | ) | |||||
Net income (loss) attributable to EID | $ | 166 | $ | (626 | ) | $ | (524 | ) | $ | (46 | ) | |||||
2018 | ||||||||||||||||
Net (loss) income attributable to EID | $ | (105 | ) | $ | 697 | $ | (5,119 | ) | $ | (528 | ) |
For the Quarter Ended March 31, 2019 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | EID | ||||||||
Income (loss) from continuing operations after income taxes | $ | 89 | $ | (369 | ) | $ | 96 | $ | (184 | ) | ||
Net income attributable to EID | $ | 85 | $ | (9 | ) | $ | 90 | $ | 166 |
For the Quarter Ended December 31, 2018 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | EID | ||||||||
Net loss attributable to EID | $ | (354 | ) | $ | (25 | ) | $ | (149 | ) | $ | (528 | ) |
For the Quarter Ended March 31, 2018 | ||||||||||||
(In millions) | Historical EID | Discontinued Operations and Other Adjustments1 | DAS | EID | ||||||||
Net loss attributable to EID | $ | (228 | ) | $ | 1 | $ | 122 | $ | (105 | ) |