NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 87 - INCOME TAXES

For periods between the Merger Effectiveness Time and the Corteva Distribution, Corteva and its subsidiaries were included in DowDuPont's consolidated federal income tax group and consolidated tax return. Generally, the consolidated tax liability of the DowDuPont U.S. tax group for each year was apportioned among the members of the consolidated group based on each member’s separate taxable income. Corteva, DuPont and Dow intend that to the extent Federal and/or State corporate income tax liabilities are reduced through the utilization of tax attributes of the other, settlement of any receivable and payable generated from the use of the other party’s sub-group attributes will be in accordance with a tax matters agreement. See Note 3 - Divestitures and Other Transactions, for further information related to indemnifications between Corteva, Dow and DuPont.

Each year the company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the company. As a result, there is an uncertainty in income taxes recognized in the company's financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. The ultimate resolution of such uncertainties is not expected to have a material impact on the company's results of operations.

During the three and six months ended June 30, 2021, the company recognized $18 million and $25 million, respectively, of net tax benefits associated with changes in accruals for certain prior year tax positions in various jurisdictions.

During the three and six months ended June 30, 2020, the company recognized a tax benefit of $51 million to provision for income taxes on continuing operations related to a return to accrual adjustment associated with an elective change in accounting method for the 2019 tax year impact of the 2017 Tax Cuts and Jobs Act 's (“The Act”) foreign tax provisions.

During the three and six months ended June 30, 2020 the company recognized a tax benefit of $14 million to provision for income taxes on continuing operations related to a return to accrual adjustment to reflect a change in estimate on the impact of a tax law enactment in a foreign jurisdiction.

During the three and six months ended June 30, 2019, the company recognized net tax charges of $114 million and $146 million, respectively, to provision for income taxes on continuing operations related to U.S. state blended tax rate changes associated with the Internal Reorganizations.

During the six months ended June 30, 2019, the company recognized a tax benefit of $102 million to provision for income taxes on continuing operations, related to an internal legal entity restructuring associated with the Internal Reorganizations.

~~During the three and six months ended June 30, 2019,~~ ~~the company recognized a tax charge of $96 million to provision for income taxes on continuing operations, respectively, related to application of the Act's foreign tax provisions.~~

During the three and six months ended June 30, 2019, the company recognized an aggregate tax benefit of $21 million to provision for income taxes on continuing operations, respectively, associated with changes in accruals for certain prior year tax positions and reductions in the company's unrecognized tax benefits due to the closure of various tax statutes of limitations.

The company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of the program, which resides in the U.S., is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions, which can drive material impacts on the company's effective tax rate. For further discussion of pre-tax and after-tax impacts of the company's foreign currency hedging program and net monetary asset programs, refer to Note 76 - Supplementary Information.

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 98 - EARNINGS PER SHARE OF COMMON STOCK

~~On June 1, 2019, the date of the Corteva Distribution, 748,815,000 shares of the company’s common stock were distributed to DowDuPont shareholders of record as of May 24, 2019.~~

The following tables provide earnings per share calculations for the periods indicated below:


Net Income (Loss) for Earnings Per Share Calculations - Basic and Diluted	Three Months Ended June 30					Six Months Ended June 30
Net Income for Earnings Per Share Calculations - Basic and Diluted											Net Income for Earnings Per Share Calculations - Basic and Diluted	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2020		2019			2020		2019			(In millions)	2021		2020		2021		2020
Income from continuing operations after income taxes	$	766	$	483		$	1,047	$	299		Income from continuing operations after income taxes	$	1,018	$	766	$	1,631	$	1,047
Net income attributable to continuing operations noncontrolling interests	6		13			16		21			Net income attributable to continuing operations noncontrolling interests	3		6		6		16

Income from continuing operations available to Corteva common stockholders	760		470			1,031		278			Income from continuing operations available to Corteva common stockholders	1,015		760		1,625		1,031
(Loss) income from discontinued operations, net of tax	—		(1,077		)	1		(717		)
Net income attributable to discontinued operations noncontrolling interests	—		1			—		5
(Loss) income from discontinued operations available to Corteva common stockholders	—		(1,078		)	1		(722		)	(Loss) income from discontinued operations available to Corteva common stockholders	(45)		0		(55)		1
Net income (loss) available to common stockholders	$	760	$	(608	)	$	1,032	$	(444	)
Net income available to common stockholders											Net income available to common stockholders	$	970	$	760	$	1,570	$	1,032


Earnings (Loss) Per Share Calculations - Basic	Three Months Ended June 30					Six Months Ended June 30
Earnings Per Share Calculations - Basic											Earnings Per Share Calculations - Basic	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars per share)	2020		2019			2020		2019			(Dollars per share)	2021		2020		2021		2020
Earnings per share of common stock from continuing operations	$	1.01	$	0.63		$	1.37	$	0.37		Earnings per share of common stock from continuing operations	$	1.37	$	1.01	$	2.19	$	1.37
Loss per share of common stock from discontinued operations	—		(1.44		)	—		(0.96		)	Loss per share of common stock from discontinued operations	(0.06)		0		(0.07)		0
Earnings (loss) per share of common stock	$	1.01	$	(0.81	)	$	1.37	$	(0.59	)
Earnings per share of common stock											Earnings per share of common stock	$	1.31	$	1.01	$	2.12	$	1.37


Earnings (Loss) Per Share Calculations - Diluted	Three Months Ended June 30					Six Months Ended June 30
Earnings Per Share Calculations - Diluted											Earnings Per Share Calculations - Diluted	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars per share)	2020		2019			2020		2019			(Dollars per share)	2021		2020		2021		2020
Earnings per share of common stock from continuing operations	$	1.01	$	0.63		$	1.37	$	0.37		Earnings per share of common stock from continuing operations	$	1.37	$	1.01	$	2.18	$	1.37
Loss per share of common stock from discontinued operations	—		(1.44		)	—		(0.96		)	Loss per share of common stock from discontinued operations	(0.06)		0		(0.07)		0
Earnings (loss) per share of common stock	$	1.01	$	(0.81	)	$	1.37	$	(0.59	)
Earnings per share of common stock											Earnings per share of common stock	$	1.31	$	1.01	$	2.11	$	1.37


Share Count Information	Three Months Ended June 30,		Six Months Ended June 30,
(Shares in millions)	2021	2020	2021	2020
Weighted-average common shares - basic	737.3	749.2	740.3	749.6
Plus dilutive effect of equity compensation plans1	6.0	2.4	6.1	2.4

Weighted-average common shares - diluted	743.3	751.6	746.4	752.0
Potential shares of common stock excluded from EPS calculations2	2.1	11.9	2.1	11.0

1.Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

2.These outstanding potential shares of common stock relating to stock options, restricted stock units and performance-based restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been anti-dilutive.

Share Count Information Three Months Ended
June 30 Six Months Ended
June 30
(Shares in millions) 2020 2019 2020 2019
Weighted-average common shares - basic¹
749.2
749.4
749.6
749.4
Plus dilutive effect of equity compensation plans²
2.4
0.6
2.4
0.3
Weighted-average common shares - diluted 751.6
750.0
752.0
749.7
Potential shares of common stock excluded from EPS calculations³
11.9
7.8
11.0
7.8


1.	Share amounts for all periods prior to the Corteva Distribution were based on 748.8 million shares of Corteva, Inc. common stock distributed to holders of DowDuPont's common stock on June 1, 2019, plus 0.6 million of additional shares in which accelerated vesting conditions have been met.


2.	Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.


3.	These outstanding potential shares of common stock relating to stock options, restricted stock units and performance-based restricted stock units were excluded from the calculation of diluted earnings per share because the effect of including them would have been anti-dilutive.

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 109 - ACCOUNTS AND NOTES RECEIVABLE - NET


(In millions)	June 30, 2021		December 31, 2020		June 30, 2020
Accounts receivable – trade1	$	4,318	$	3,754	$	4,396
Notes receivable – trade1,2	1,445		163		1,391
Other3	1,029		1,009		985
Total accounts and notes receivable - net	$	6,792	$	4,926	$	6,772

1.Accounts receivable – trade and notes receivable - trade are net of allowances of $216 million at June 30, 2021, $208 million at December 31, 2020, and $207 million at June 30, 2020. Allowances are equal to the estimated uncollectible amounts and are based on the expected credit losses and were developed using a loss-rate method.

(In millions) June 30, 2020 December 31, 2019 June 30, 2019
Accounts receivable – trade¹
$ 4,396
$ 4,225
$ 4,811
Notes receivable – trade^1,2
1,391
171
1,291
Other³
985
1,132
1,332
Total accounts and notes receivable - net $ 6,772
$ 5,528
$ 7,434
2.Notes receivable – trade primarily consists of receivables for deferred payment loan programs for the sale of seed products to customers. These loans have terms of one year or less and are primarily concentrated in North America. The company maintains a rigid pre-approval process for extending credit to customers in order to manage overall risk and exposure associated with credit losses. As of June 30, 2021, December 31, 2020, and June 30, 2020 there were no significant impairments related to current loan agreements.

^1.

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 $92 million, $106 million, and $114 million as of June 30, 2021, December 31, 2020, and June 30, 2020, respectively.

Accounts receivable – trade and notes receivable - trade are net of allowances of $207 million at June 30, 2020, $174 million at December 31, 2019, and $152 million at June 30, 2019. The allowance at June 30, 2020 is equal to the expected credit losses and was developed using a loss-rate method. The allowance at December 31, 2019 and June 30, 2019 is equal to the estimated uncollectible amounts and is based on historical collection experience, current economic and market conditions, and review of the current status of customers' accounts.

^2.

Notes receivable – trade primarily consists of receivables for deferred payment loan programs for the sale of seed products to customers. These loans have terms of one year or less and are primarily concentrated in North America. The company maintains a rigid pre-approval process for extending credit to customers in order to manage overall risk and exposure associated with credit losses. As of June 30, 2020, December 31, 2019, and June 30, 2019 there were no significant impairments related to current loan agreements.


^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 $114 million, $119 million, and $126 million as of June 30, 2020, December 31, 2019, and June 30, 2019, respectively.

Accounts and notes receivable are carried at the expected amount to be collected, which approximates fair value. The company establishes the allowance for doubtful receivables using a loss-rate method where the loss rate is developed using past events, historical experience, current conditions and forecasts that affect the collectability of the financial assets.

The following table summarizes changes in the allowance for doubtful receivables for the six months ended June 30, 2021 and 2020:


(In millions)
2020
Balance at December 31, 2019	$	174
Net provision for credit losses	124
Write-offs charged against allowance	(6)
Recoveries collected	(78)
Other	(7)
Balance at June 30, 2020	$	207

2021
Balance at December 31, 2020	$	208
Net provision for credit losses	48
Recoveries collected	(51)
Other	11



Balance at June 30, 2021	$	216

(In millions)
Balance at December 31, 2019 $ 174
Additions charged to expenses 124
Write-offs charged against allowance (6 )
Recoveries collected (78 )
Other (7 )
Balance at June 30, 2020 $ 207

The company enters into various factoring agreements with third-party financial institutions to sell its trade receivables under both recourse and non-recourse agreements in exchange for cash proceeds. These financing arrangements result in a transfer of the company's receivables and risks to the third-party. As these transfers qualify as true sales under the applicable accounting guidance, the receivables are derecognized from the interim Consolidated Balance Sheets upon transfer, and the company receives a payment for the receivables from the third-party within a mutually agreed upon time period. For arrangements involving an element of recourse, which is typically provided through a guarantee of accounts in the event of customer default, the guarantee obligation is measured using market data from similar transactions and reported as a current liability in the interim Consolidated Balance Sheets.

Trade receivables sold under these agreements were $177 million and $188 million for the three and six months ended June 30, 2021, respectively, and $161 million and $176 million for the three and six months ended June 30, 2020, ~~respectively, and $81 million and $84 million for the three and six months ended June 30, 2019,~~ respectively. The trade receivables sold that remained outstanding under these agreements which include an element of recourse as of June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019~~2020 were ~~$146~~$135 million, ~~$171~~$157 million, and ~~$87~~$146 million, respectively. The net proceeds received are included in cash ~~provided by~~used for operating activities in the interim Consolidated Statements of Cash Flows. The difference between the carrying amount of the trade receivables sold and the sum of the cash received is recorded as a loss on sale of

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

receivables in other income - net in the interim Consolidated Statements of Operations. The loss on sale of receivables was $41 million and $43 million for the three and six months ended June 30, 2021, respectively, and $36 million and $38 million for the three and six months ended June 30, 2020, ~~and $36 million and $37 million for the three and six months ended June 30, 2019,~~ respectively. ~~The guarantee obligations recorded as of June 30, 2020, December 31, 2019, and June 30, 2019 in the interim Condensed Consolidated Balance Sheets were not material.~~ See Note 1413 - Commitments and Contingent Liabilities for additional information on the company’s guarantees.

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~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

NOTE 1110 - INVENTORIES


(In millions)	June 30, 2021		December 31, 2020		June 30, 2020
Finished products	$	1,680	$	2,584	$	1,831
Semi-finished products	1,406		1,813		1,364
Raw materials and supplies	455		485		394
Total inventories	$	3,541	$	4,882	$	3,589

(In millions) June 30, 2020 December 31, 2019 June 30, 2019
Finished products $ 1,831
$ 2,684
$ 2,103
Semi-finished products 1,364
1,850
1,373
Raw materials and supplies 394
498
442
Total inventories $ 3,589
$ 5,032
$ 3,918

As a result of the Merger, a fair value step-up of $2,297 million was recorded for inventories. During the three and six months ended June 30, 2019, the company recognized $52 million and $257 million of these costs in cost of goods sold within income from continuing operations before income taxes.

NOTE 1211 - OTHER INTANGIBLE ASSETS

The gross carrying amounts and accumulated amortization of other intangible assets by major class are as follows:


(In millions)	June 30, 2021						December 31, 2020						June 30, 2020
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Intangible assets subject to amortization (Definite-lived):
Germplasm	$	6,265	$	(444)	$	5,821	$	6,265	$	(317)	$	5,948	$	6,265	$	(190)	$	6,075
Customer-related	1,966		(434)		1,532		1,984		(380)		1,604		1,961		(322)		1,639
Developed technology	1,485		(603)		882		1,451		(525)		926		1,463		(462)		1,001
Trademarks/trade names1	2,013		(132)		1,881		2,019		(99)		1,920		161		(85)		76
Favorable supply contracts	475		(349)		126		475		(302)		173		475		(255)		220
Other2	404		(243)		161		405		(239)		166		405		(227)		178
Total other intangible assets with finite lives	12,608		(2,205)		10,403		12,599		(1,862)		10,737		10,730		(1,541)		9,189

Intangible assets not subject to amortization (Indefinite-lived):
IPR&D	10		—		10		10		—		10		10		—		10
Trade name1													1,871		—		1,871

Total other intangible assets	10		—		10		10		—		10		1,881		—		1,881
Total	$	12,618	$	(2,205)	$	10,413	$	12,609	$	(1,862)	$	10,747	$	12,611	$	(1,541)	$	11,070

(In millions) June 30, 2020 December 31, 2019 June 30, 2019
Gross
Accumulated
Amortization
Net Gross
Accumulated
Amortization
Net Gross
Accumulated
Amortization
Net
Intangible assets subject to amortization (Definite-lived):

Germplasm¹
$ 6,265
$ (190 ) $ 6,075
$ 6,265
$ (63 ) $ 6,202

Customer-related 1,961
(322 ) 1,639
1,977
(268 ) 1,709
$ 1,981
$ (211 ) $ 1,770
Developed technology 1,463
(462 ) 1,001
1,463
(370 ) 1,093
1,467
(297 ) 1,170
Trademarks/trade names 161
(85 ) 76
166
(86 ) 80
166
(83 ) 83
Favorable supply contracts 475
(255 ) 220
475
(207 ) 268
475
(159 ) 316
Other²
405
(227 ) 178
404
(213 ) 191
429
(218 ) 211
Total other intangible assets with finite lives 10,730
(1,541 ) 9,189
10,750
(1,207 ) 9,543
4,518
(968 ) 3,550

Intangible assets not subject to amortization (Indefinite-lived):

IPR&D 10
—
10
10
—
10
146
—
146
Germplasm¹
6,265
—
6,265
Tradename 1,871
—
1,871
1,871
—
1,871
1,871
—
1,871
Total other intangible assets 1,881
—
1,881
1,881
—
1,881
8,282
—
8,282
Total $ 12,611
$ (1,541 ) $ 11,070
$ 12,631
$ (1,207 ) $ 11,424
$ 12,800
$ (968 ) $ 11,832
1.Beginning on October 1, 2020, the company changed its indefinite life assertion of its trade name asset to definite lived with a useful life of 25 years. This change is the result of the launch of BrevantTM seed in the retail channel in the U.S. Prior to changing the useful life of the trade name asset, the company tested the asset for the impairment under ASC 350- Intangibles, Goodwill and Other, concluding the asset was not impaired.

2.Primarily consists of sales and farmer networks, marketing and manufacturing alliances and noncompetition agreements.

^1.

Beginning on October 1, 2019, the company changed its indefinite life assertion of the germplasm assets to definite lived with a useful life of 25 years. This change is the result of a more focused development effort of new seed products coupled with an intent to out license select germplasm on a non-exclusive basis. Prior to changing the useful life of the germplasm assets, the company tested the assets for impairment under ASC 350 - Intangibles, Goodwill and Other, concluding the assets were not impaired.


^2.	~~Primarily consists of sales and farmer networks, marketing and manufacturing alliances and noncompetition agreements.~~

The aggregate pre-tax amortization expense from continuing operations for definite-lived intangible assets was $180 million and $363 million for the three and six months ended June 30, 2021, respectively, and $176 million and $339 million for the three and six months ended June 30, 2020, ~~respectively, and $113 million and $214 million for the three and six months ended June 30, 2019,~~ respectively. The current estimated aggregate pre-tax amortization expense from continuing operations for the remainder of ~~2020~~2021 and each of the next five years is approximately ~~$322~~$358 million, ~~$644~~$701 million, ~~$622~~$621 million, ~~$543~~$607 million, ~~$529~~$570 million and ~~$492~~$559 million, respectively.

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1312 - SHORT-TERM BORROWINGS, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES

The following tables summarize Corteva's short-term borrowings and finance lease ~~obligations and long-term debt:~~obligations:


Short-term borrowings and finance lease obligations
(In millions)	June 30, 2021		December 31, 2020		June 30, 2020
Commercial paper	$	494	$	0	$	671
Repurchase facility	150		0		800
Other loans - various currencies	31		1		55
Long-term debt payable within one year	1		1		1
Finance lease obligations payable within one year	1		1		2
Total short-term borrowings and finance lease obligations	$	677	$	3	$	1,529

Short-term borrowings and finance lease obligations
(In millions) June 30, 2020 December 31, 2019 June 30, 2019
Commercial paper $ 671
$ —
$ 1,107
Repurchase facility 800
—
777
Other loans - various currencies 55
2
154
Long-term debt payable within one year 1
1
2
Finance lease obligations payable within one year 2
4
18
Total short-term borrowings and finance lease obligations $ 1,529
$ 7
$ 2,058

The estimated fair value of the company's short-term borrowings, including interest rate financial instruments, was determined using Level 2 inputs within the fair value hierarchy. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's short-term borrowings and finance lease obligations was approximately carrying value.

The weighted-average interest rate on short-term borrowings outstanding at June 30, 2020, December 31, 2019, and June 30, 2019 was 1.0%, 6.7% and 3.1%, respectively. The decrease in the weighted-average interest rate was primarily due to lower Commercial Paper and Repurchase Facility interest.

Long-Term Debt
(In millions) June 30, 2020 December 31, 2019 June 30, 2019
Amount Weighted Average Rate Amount Weighted Average Rate Amount Weighted Average Rate
Promissory notes and debentures:
Maturing in 2025 $ 500
1.70 % $ —
— % $ —
— %
Maturing in 2030 500
2.30 %
Other loans:
Foreign currency loans, various rates and maturities 1
2
3

Medium-term notes, varying maturities through 2041 109
0.20 % 109
1.61 % 110
2.17 %
Finance lease obligations 5
5
6

Less: Unamortized debt discount and issuance costs 12
—
—

Less: Long-term debt due within one year 1
1
2

Total $ 1,102

$ 115
$ 117

The fair value of the company’s long-term borrowings, including debt due within one year, was ~~$1,141~~$1,139 million, ~~$119~~$1,168 million, and ~~$119~~$1,141 million as of June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019,~~2020, respectively, and was determined using quoted market prices for the same or similar issues, or current rates offered to the company for debt of the same remaining maturities (Level 2 inputs).

Debt Offering

In May 2020, EID issued $500 million of 1.70 percent Senior Notes due 2025 and $500 million of 2.30 percent Senior Notes due 2030 (the May 2020 Debt Offering). The proceeds of this offering are intended to be used for general corporate ~~purposes, which may include discretionary contributions to the company’s U.S. principal pension plan and repayment of other indebtedness.~~purposes.

~~Table of Contents~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

Repurchase Facility

In February ~~2020,~~2021, the company entered into a new committed receivable repurchase facility of up to ~~$1.3~~$1 billion (the ~~"2020~~"2021 Repurchase Facility") which expires in December ~~2020.~~2021. Under the ~~2020~~2021 Repurchase Facility, Corteva may sell a portfolio of available and eligible outstanding customer notes receivables to participating institutions and simultaneously agree to repurchase at a future date. The ~~2020~~2021 Repurchase Facility is considered a secured borrowing with the customer notes ~~receivable~~receivables inclusive of those that are sold and repurchased, equal to 105 percent of the outstanding amounts borrowed utilized as collateral. Borrowings under the ~~2020~~2021 Repurchase Facility have an interest rate of ~~LIBOR + 0.75~~LIBOR+0.85 percent.

As of June 30, ~~2020, $841~~2021, $158 million of notes receivable, recorded in accounts and notes receivable - net, were pledged as collateral against outstanding borrowings under the ~~2020~~2021 Repurchase Facility of ~~$800~~$150 million, recorded in short-term borrowings and finance lease obligations on the interim ~~Condensed~~ Consolidated Balance Sheet.

Revolving Credit Facilities

In November 2018, EID entered into a ~~$3.0~~$3 billion 5-year revolving credit facility and a ~~$3.0~~$3 billion 3-year revolving credit facility (the “Revolving Credit Facilities”). The Revolving Credit Facilities became effective in May 2019. Corteva, Inc. became a party at the time of the Corteva Distribution. In May 2021, the company entered into an amendment that extended the maturity date of the 3-year revolving credit facility from May 2022 to May 2023. Other than the change in maturity date, there were no material modifications to the terms of the credit facility. The Revolving Credit Facilities may serve as a substitute to the company's commercial paper program, and can be used, from time to time, for general corporate purposes including, but not limited to, the funding of seasonal working capital needs. The Revolving Credit Facilities contain customary representations and warranties, affirmative and negative covenants and events of default that are typical for companies with similar credit ratings. Additionally, the Revolving Credit Facilities contain a financial covenant requiring that the ratio of total indebtedness to total capitalization for Corteva and its consolidated subsidiaries not exceed 0.60.

In March 2020, the company drew down $500 million under the ~~$3.0~~$3 billion 3-year revolving credit facility as a result of the volatility and increased borrowing costs of commercial paper resulting from the unstable market conditions caused by the ~~novel coronavirus ("COVID-19"). All amounts outstanding for~~COVID-19 pandemic and repaid that borrowing in full in June 2020. There were no additional borrowings and the ~~$500 million draw down were repaid as of June 30, 2020 and~~ unused commitments under the 3-year revolving credit facility were $3 billion as of June 30, ~~2020.~~

2021.

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1413 - COMMITMENTS AND CONTINGENT LIABILITIES

Guarantees

Indemnifications

In connection with acquisitions and divestitures, ~~as of June 30, 2020,~~ the company has indemnified respective parties against certain liabilities that may arise in connection with these transactions and business activities prior to the completion of the transactions. The term of these indemnifications, which typically pertain to environmental, tax and product liabilities, is generally indefinite. In addition, the company indemnifies its duly elected or appointed directors and officers to the fullest extent permitted by Delaware law, against liabilities incurred as a result of their activities for the company, such as adverse judgments relating to litigation matters. If the indemnified party were to incur a liability or have a liability increase as a result of a successful claim, pursuant to the terms of the indemnification, the company would be required to reimburse the indemnified party. The maximum amount of potential future payments is generally unlimited. See pages 2710 and 1124 for additional information relating to the indemnification obligations under the Chemours Separation Agreement and the Corteva Separation Agreement.

Obligations for Customers and Other Third Parties

The company has directly guaranteed various debt obligations under agreements with third parties related to customers and other third parties. At June 30, ~~2020,~~2021, December 31, ~~2019~~2020 and June 30, ~~2019,~~2020, the company had directly guaranteed ~~$112~~$115 million, ~~$97~~$94 million, and ~~$164~~$112 million, respectively, of such obligations. These amounts represent the maximum potential amount of future (undiscounted) payments that the company could be required to make under the guarantees in the event of default by the guaranteed party. OfAll of the ~~total~~ maximum future payments at June 30, ~~2020,~~2021 had terms less than ~~$1 million had terms greater than a~~one year. The maximum future payments include $22 million, $17 million and $20 million ~~$16 million,~~at June 30, 2021, December 31, 2020 and ~~$8 million~~June 30, 2020, respectively, of guarantees related to the various factoring agreements that the company enters into with ~~its customer~~third-party financial institutions to sell its trade ~~receivables at June 30, 2020, December 31, 2019 and June 30, 2019, respectively.~~receivables. See Note 109 - Accounts and Notes Receivable - Net, for additional information.

The maximum future payments also include agreements with lenders to establish programs that provide financing for select customers. The terms of the guarantees are equivalent to the terms of the customer loans that are primarily made to finance customer invoices. The total ~~accounts receivable balance outstanding on~~amounts owed from customers to the lenders relating to these agreements was ~~$622~~$648 million, ~~$27~~$16 million and ~~$542~~$622 million at June 30, ~~2020,~~2021, December 31, ~~2019~~2020 and June 30, ~~2019,~~2020, respectively.

The company assesses the payment/performance risk by assigning default rates based on the duration of the guarantees. These default rates are assigned based on the external credit rating of the counterparty or through internal credit analysis and historical default history for counterparties that do not have published credit ratings. For counterparties without an external rating or available credit history, a cumulative average default rate is used.

Litigation

Indemnifications under Separation Agreements

The company has entered into various agreements where the company is indemnified for certain liabilities. In connection with the recognition of liabilities related to these matters, the company records an indemnification asset when recovery is deemed probable. See Note 3 - Divestitures and Other Transactions, to the interim Consolidated Financial Statements for additional information related to indemnifications.

Chemours/Performance Chemicals

~~On July 1, 2015, EID completed~~Refer to Note 3 - Divestitures and Other Transactions, to the ~~separation~~interim Consolidated Financial Statements for additional discussion of ~~its Performance Chemicals segment through the spin-off of all of the issued and outstanding stock of The Chemours Company (the "Chemours Separation"). In connection with~~ the Chemours Separation EID and The Chemours Company ("Chemours") entered into a Separation Agreement (the "Chemours Separation Agreement"). Pursuant to the Chemours Separation Agreement and the amendment to the Chemours Separation Agreement, Chemours indemnifies the company against certain litigation, environmental, workers' compensation and other liabilities that arose prior to the distribution. The term of this indemnification is generally indefinite and includes defense costs and expenses, as well as monetary and non-monetary settlements and judgments.Agreement.

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~~Concurrent with the MDL Settlement (as discussed below),~~In 2017, EID and Chemours amended the Chemours Separation Agreement to provide for a limited sharing of potential future ~~PFOA~~ liabilities related to alleged historical releases of perfluorooctanoic acids and its ammonium salts (“PFOA”) for ~~five years, which~~a five-year period that began on July 6, 2017. ~~During~~In addition, in 2017, Chemours and EID each paid $335 million to settle multi-district litigation in the ~~five years, Chemours will annually pay~~U.S. District Court for the ~~first $25 million~~Southern District of ~~future~~Ohio (“Ohio MDL”), thereby resolving claims of about 3,550 plaintiffs alleging injury from exposure to PFOA ~~liabilities and, if that amount is exceeded, EID will pay any excess amount up to the next $25 million, with Chemours annually bearing any excess liabilities above that amount. At the end~~in drinking water as a result of the ~~five years, this limited sharing agreement will expire,~~historical manufacture or use of PFOA at

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the Washington Works plant outside Parkersburg, West Virginia. This plant was previously owned and/or operated by the performance chemicals segment of EID and ~~Chemours’ indemnification obligations under the Chemours Separation Agreement will continue unchanged. As part of this amendment, Chemours also agreed that it would~~is now owned and/or operated by Chemours. The 2017 settlement did not ~~contest its liability for PFOA liabilities on the basis~~resolve claims of certain ~~ostensible defenses it had previously raised, including defenses relating to punitive damages,~~class members who did not have claims in the Ohio MDL or whose claims are based on diseases first diagnosed after February 11, 2017. Since the 2017 settlement, 96 claims alleging personal injury were filed in the Ohio MDL and ~~would waive any such defenses with respect to PFOA liabilities. Chemours has, however, retained defenses as to whether any particular PFOA claim is within the scope~~a number of ~~the indemnification provisions of the Chemours Separation Agreement. There have been no charges incurred by the company under this amendment through June 30, 2020.~~additional pre-suit claims for personal injury were asserted.

On May 13, 2019, Chemours filed ~~a complaint~~suit in the Delaware Court of Chancery ~~("Chancery Court")~~ against DuPont, EID, and Corteva, ~~and EID alleging,~~seeking, among other things, ~~that~~to limit its responsibility for the litigation and environmental liabilities allocated to and assumed by Chemours under the Chemours Separation Agreement were underestimated and asking that the Court either limit the amount of Chemours’ indemnification obligations or, alternatively, order the return of the $3.91 billion dividend Chemours paid to EID prior to its separation. On June 3, 2019, the defendants moved to dismiss the complaint on the grounds that the Chemours Separation Agreement requires arbitration of all disputes relating to that agreement.(the “Delaware Litigation”). On March 30, 2020, the Court of Chancery ~~Court~~ granted ~~the~~a motion to ~~dismiss made by DuPont, Corteva, and EID. Chemours filed its appeal of the Chancery Court's decision with~~dismiss. On December 15, 2020, the Delaware Supreme Court ~~on June 4, 2020. An arbitration~~affirmed the judgment of the ~~indemnification matters is ongoing~~Court of Chancery. Meanwhile, a confidential arbitration process regarding the same and ~~proceeding in parallel with Chemours’ appeal~~other claims had proceeded (the “Pending Arbitration”).

On January 22, 2021, Chemours, DuPont, Corteva and EID entered into a binding memorandum of understanding containing a settlement to resolve legal disputes originating from the ~~Chancery Court decision. The arbitration is currently scheduled~~Delaware Litigation and Pending Arbitration, and to ~~begin June 2021. The company believes the probability of liability with respect to Chemours' suit continues~~establish a cost sharing arrangement and escrow account to be ~~remote. For additional information regarding environmental indemnification, see discussion on page 30.~~

~~At June 30, 2020,~~used to support and manage potential future legacy per- and polyfluoroalkyl substances (“PFAS”) liabilities arising out of pre-July 1, 2015 conduct (the “MOU”). The MOU replaces the ~~indemnification assets pursuant~~2017 amendment to the Chemours Separation ~~Agreement are $62 million~~Agreement. According to the terms of the cost sharing arrangement within ~~accounts~~the MOU, Corteva and ~~notes receivable - net~~DuPont together, on one hand, and ~~$284 million within~~Chemours, on the other ~~assets along with the corresponding~~hand, agreed to a 50-50 split of certain qualified expenses related to PFAS liabilities incurred over a term not to exceed twenty years or $4 billion of ~~$62 million within accrued~~qualified spend and ~~other current liabilities and $284 million within other noncurrent obligations~~escrow account contributions (see below for discussion of escrow account) in the ~~interim Condensed Consolidated Balance Sheet.~~aggregate. DuPont’s and Corteva’s 50% share under the MOU will be limited to $2 billion, including qualified expenses and escrow contributions. These expenses and escrow account contributions will be subject to the existing Letter Agreement, under which DuPont and Corteva will each bear 50% of the first $300 million (up to $150 million each), and thereafter DuPont bears 71% and Corteva bears the remaining 29%.

In order to support and manage any potential future PFAS liabilities, the parties have also agreed to establish an escrow account. The MOU provides that (1) no later than each of September 30, 2021 and September 30, 2022, Chemours shall deposit $100 million into an escrow account and DuPont and Corteva shall together deposit $100 million in the aggregate into an escrow account and (2) no later than September 30 of each subsequent year through and including 2028, Chemours shall deposit $50 million into an escrow account and DuPont and Corteva shall together deposit $50 million in the aggregate into an escrow account. Subject to the terms and conditions set forth in the MOU, each party may be permitted to defer funding in any year (excluding 2021). Over this period, Chemours will deposit a total of $500 million in the account and DuPont and Corteva will deposit an additional $500 million pursuant to the terms of the Letter Agreement. Additionally, if on December 31, 2028, the balance of the escrow account (including interest) is less than $700 million, Chemours will make 50% of the deposits and DuPont and Corteva together will make 50% of the deposits necessary to restore the balance of the escrow account to $700 million. Such payments will be made in a series of consecutive annual equal installments commencing on September 30, 2029 pursuant to the escrow account replenishment terms as set forth in the MOU.

After the term of this arrangement, Chemours’ indemnification obligations under the original 2015 Chemours Separation Agreement, would continue unchanged, subject in each case to certain exceptions set out in the MOU. Under the MOU, Chemours waived specified claims regarding the construct of its 2015 spin-off transaction, and the parties will dismiss the pending arbitration regarding those claims (as discussed below). Additionally, the parties have agreed to resolve the Ohio MDL PFOA personal injury litigation (as discussed below). The parties are expected to cooperate in good faith to enter into additional agreements reflecting the terms set forth in the MOU.

Corteva Separation Agreement

On April 1, 2019, in connection with the Dow Distribution, Corteva, DuPont and Dow entered into the Corteva Separation Agreement, the Tax Matters Agreement, the Employee Matters Agreement, and certain other agreements (collectively, the “Corteva Separation Agreements”). The Corteva Separation Agreements allocate among Corteva, DuPont and Dow certain liabilities and obligations among the parties and provides for indemnification obligation among the parties. Under the Corteva Separation Agreements, DuPont will indemnify Corteva against certain litigation, environmental, workers' compensation and other liabilities that arose prior to the Corteva Distribution and (ii) Dow indemnifies Corteva against certain litigation and other liabilities that relate to the Historical Dow business, but were transferred over as part of the common control combination with DAS, and Corteva indemnifies DuPont and Dow for certain liabilities. The term of this indemnification is generally indefinite with exceptions, and includes defense costs and expenses, as well as monetary and non-monetary settlements and judgments. See Note 3 - Divestitures and Other Transactions, to the interim Consolidated Financial Statements for additional information relating to the Separation.

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DuPont

Under the Corteva Separation Agreement, certain legacy EID liabilities from discontinued and/or divested operations and businesses of EID (including Performance Chemicals) (a “stray liability”) were allocated to Corteva or DuPont. For those stray liabilities allocated to Corteva (which may include a specified amount of liability associated with that liability), Corteva is responsible for liabilities in an amount up to that specified amount plus an additional $200 million and, for those stray liabilities allocated to DuPont (which may include a specified amount of liability associated with that liability), DuPont is responsible for liabilities up to a specified amount plus an additional $200 million. Once each company has met the $200 million threshold, Corteva and DuPont will share future liabilities proportionally on the basis of 29% and 71%, respectively; provided, however, that for PFAS, DuPont will manage such liabilities with Corteva and DuPont sharing the costs on a 50% - 50% basis starting from $1 and up to $300 million (with such amount, up to $150 million, to be credited to each company’s $200 million threshold) and once the $300 million threshold is met, then the companies will share proportionally on the basis of 29% and 71% respectively, subject to a $1 million de minimis requirement. As of June 30, 2021, the aggregate of cash spent and liabilities accrued exceed the stray liability thresholds, including PFAS, noted above. Therefore, any future liabilities will be shared at the reduced rates noted above.

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Litigation related to legacy EID businesses unrelated to Corteva’s current businesses

While it is reasonably possible that the company could incur liabilities related to the litigation related to legacy EID businesses, unrelated to Corteva's current business, as described below, any such liabilities are not expected to be material.

PFAS, PFOA, PFOS and Other Related Liabilities

For purposes of this report, the term PFOA means collectively perfluorooctanoic acid and its salts, including the ammonium salt and does not distinguish between the two forms, and PFAS, which means per- and polyfluoroalkyl substances, including PFOA, PFOS (perfluorooctanesulfonic acid), GenX and other perfluorinated chemicals and compounds ("PFCs").

EID is a party to various legal proceedings relating to the use of PFOA by its former Performance Chemicals ~~segment. While~~segment for which potential liabilities would be subject to the cost sharing arrangement under the MOU as long as it remains effective. Management believes that it is reasonably possible that EID could incur liabilities related to PFOA in excess of amounts ~~accrued,~~accrued. However, any such ~~liabilities~~losses are not ~~expected~~estimable at this time due to various reasons, including, among others, that the underlying matters are in their early stages and have significant factual issues to be ~~material. As discussed, EID is indemnified by Chemours under the Chemours Separation Agreement, as amended.~~resolved. The company has recorded a liability of ~~$20~~$23 million and an indemnification asset of ~~$20~~$17 million at June 30, ~~2020,~~2021, related to testing drinking water in and around certain former EID sites and offering treatment or an alternative supply of drinking water if tests indicate the presence of PFOA in drinking water at or greater than the national health advisory level established from time to time by the EPA.

Leach Settlement and Ohio MDL Settlement

EID has residual liabilities under its 2004 settlement of a West Virginia state court class action, Leach v. EID, which alleged that PFOA from EID’s former Washington Works facility had contaminated area drinking water supplies and affected the health of area residents. The settlement class has about 80,000 members. In addition to relief that was provided to class members years ago, the settlement requires EID to continue providing PFOA water treatment to 6 area water districts and private well users and to fund, through an escrow account, up to $235 million for a medical monitoring program for eligible class members. As of June 30, ~~2020,~~2021, approximately $2 million had been disbursed from the account since its establishment in 2012 and the remaining balance is approximately $1 million.

The Leach settlement permits class members to pursue personal injury claims for 6 health conditions (and no others) that an expert panel appointed under the settlement reported in 2012 had a “probable link” (as defined in the settlement) with PFOA: pregnancy-induced hypertension, including preeclampsia; kidney cancer; testicular cancer; thyroid disease; ulcerative colitis; and diagnosed high cholesterol. After the panel reported its findings, approximately 3,550 personal injury lawsuits were filed in federal and state courts in Ohio and West Virginia and consolidated in multi-district litigation in the U.S. District Court for the Southern District of Ohio (“Ohio MDL”). The Ohio MDL was settled in early 2017 for $670.7 million in cash, with Chemours and EID (without indemnification from Chemours) each paying half.

Post-MDL Settlement PFOA Personal Injury Claims

The 2017 Ohio MDL settlement did not resolve claims of plaintiffs who did not have claims in the Ohio MDL or whose claims are based on diseases first diagnosed after February 11, 2017. At June 30, 2020, approximately 58 lawsuits were pending alleging personal injury, mostly kidney or testicular cancer, from exposure to PFOA through air or water, with nearly all part of the MDL or were not filed on behalf of Leach class members. The first two trials concluded in February 2020. The first trial for these claims, a kidney cancer case, resulted in a hung jury, while the second,Travis and Julie Abbot v. E.I du Pont de Nemours and Company (the “Abbot Case”), a testicular cancer case, resulted in a jury verdict of $40 million in compensatory damages and $10 million for loss of consortium. Following entry of the judgment by the court, EID ~~intends to file~~filed post-trial motions to reduce the verdict, and to appeal the verdict on the basis of procedural and substantive legal errors made by the trial court. ~~EID believes~~The trial court recently granted EID’s motion to reduce the ~~merits~~loss of ~~the appeal will be successful in reducing~~consortium award to conform with state tort reform laws limiting these damages to $250,000. The company is continuing its other appeals to reduce the jury verdict or ~~eliminating~~eliminate its liability, in whole or part. ~~NaN additional cases are scheduled~~

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In January 2021, Chemours, DuPont and Corteva agreed to settle the remaining approximately 95 matters, as well as unfiled matters, remaining in the Ohio MDL, with the exception of the Abbot case, for ~~trial before September 1, 2020.~~$83 million, with Chemours contributing $29 million to the settlement, and DuPont and Corteva contributing $27 million each. The company recorded a liability for its share of the settlement, with a charge to (loss) income from discontinued operations after income taxes, during the year ended December 31, 2020, and paid $11 million and $27 million during the three and six months ended June 30, 2021, respectively. As agreed to in the settlement, the plaintiffs' counsel filed a motion to dissolve the MDL.

Other PFOA Matters

EID is a party to other PFOA lawsuits that do not involve claims for personal injury. ~~Chemours, pursuant~~Defense costs and any future liabilities that may arise out of these lawsuits are subject to the ~~Chemours Separation Agreement, is generally defending~~MOU and ~~indemnifying, with reservation, EID but Chemours has refused~~ the ~~tender of Corteva, Inc.'s defense in~~cost sharing arrangement disclosed above. Under the ~~limited actions in which Corteva, Inc. has been named. Chemours has refused to indemnify Corteva, Inc. and EID against any~~MOU, fraudulent conveyance claims associated with these ~~matters. Corteva believes that Chemours is obligated to indemnify~~matters are not qualified expenses, unless Corteva, Inc. ~~under~~and EID would prevail on the ~~Chemours Separation Agreement.~~merits of these claims.

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New York. EID is a defendant in about 50 lawsuits, including a putative class action, brought by persons who live in and around Hoosick Falls, New York. These lawsuits assert claims for medical monitoring and property damage based on alleged PFOA releases from manufacturing facilities owned and operated by co-defendants in Hoosick Falls and allege that EID and 3M supplied some of the materials used at these facilities. EID is also one of more than ten defendants in a lawsuit brought by the Town of East Hampton, New York alleging PFOA and PFOS contamination of the town’s well water. Additionally, EID, ~~was served~~along with 3M, Chemours and Dyneon, have been named defendants in complaints filed by ~~six~~eight water districts in Nassau County, New York alleging that the drinking water they provide to customers is contaminated with PFAS and seeking reimbursement for clean-up costs. The water district complaints also include allegations of fraudulent transfer.

New Jersey. At June 30, ~~2020,~~2021, 2 lawsuits were pending, one brought by a local water utility and the second a putative class action, against EID alleging that PFOA from EID’s former Chambers Works facility contaminated drinking water sources. The putative class action was voluntarily dismissed without prejudice by the plaintiff.

In late March of 2019, the New Jersey State Attorney General filed 4 lawsuits against EID, Chemours, 3M and others alleging that operations at and discharges from former EID sites in New Jersey (Chambers Works, Pompton Lakes, Parlin and Repauno) damaged the State’s natural resources. Two of these lawsuits (those involving the Chambers Works and Parlin sites) allege contamination from PFAS. The Ridgewood Water District in New Jersey filed suit in the first quarter 2019 against EID, 3M, Chemours, and Dyneon alleging losses related to the investigation, remediation and monitoring of polyfluorinated surfactants, including PFOA, in water supplies. DuPont and Corteva were subsequently added as defendants to these lawsuits.

Alabama / Others. EID is one of more than thirty defendants in a lawsuit by the Alabama water utility alleging contamination from PFCs, including PFOA, used by co-defendant carpet manufacturers to make their products more stain and grease resistant. In addition, the states of Alaska, Michigan, Mississippi, New Hampshire, South Dakota, and Vermont recently filed lawsuits against EID, Chemours, 3M and others, claiming, among other things, PFC (including PFOA) contamination of groundwater and drinking water. The complaints seek reimbursement for past and future costs to investigate and remediate the alleged contamination and compensation for the loss of value and use of the state’s natural resources. Motions to dismiss the Michigan, Vermont and New Hampshire cases have been denied.

Ohio. EID is a defendant in 3 lawsuits: an action by the State of Ohio based on alleged damage to natural resources, a putative nationwide class action brought on behalf of anyone who has detectable levels of PFAS in their blood serum, and an action by the City of Dayton claiming losses related to the investigation, remediation and monitoring of PFAS in water supplies.

Netherlands. In April 2021, 4 municipalities in the Netherlands filed complaints alleging contamination of land and groundwater resulting from the emission of PFOA and GenX by Corteva, DuPont and Chemours. The municipalities seek to recover costs incurred due to the alleged emissions, including damages for investigation costs, construction project delays, depreciation of land, soil remediation, liabilities to contractors, and attorneys’ fees.

Delaware. On July 13, 2021, Chemours, DuPont, EID and Corteva entered into a settlement agreement with the State of Delaware reflecting the companies’ and the State’s agreement to settle and fully resolve claims alleged against the companies regarding their historical Delaware operations, manufacturing, use and disposal of all chemical compounds, including PFAS. Under the settlement, the companies will collectively pay $50 million to fund environmental projects, including sampling and community environmental justice and equity grants, which shall be utilized to fund the Natural Resources and Sustainability Trust (the “NRST Trust”). If the companies, individually or jointly, within 8 years of the

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settlement, enter into a proportionally similar agreement to settle or resolve claims of another state for PFAS-related natural resource damages, for an amount greater than $50 million, the companies shall make a supplemental payment directly to the NRST Trust (“Supplemental Payment”) in an amount equal to such other states’ recovery in excess of $50 million. Supplemental Payment(s), if any, will not exceed $25 million in the aggregate. All amounts paid by the companies under the settlement are subject to the MOU and the Corteva Separation Agreement with Chemours bearing responsibility for 50%, or $25 million, of the $50 million payment due to the NRST and DuPont and Corteva each bearing $12.5 million of the remaining amount. Under the settlement, if the state sues other parties and those parties seek contribution from the companies, the companies will have protection from contribution up to the amounts previously paid under the settlement agreement. The companies will also receive a credit up to the amount of the payment if the state seeks natural resource damage claims against the companies outside the scope of the settlement’s release of claims.

Aqueous Firefighting Foams. Approximately ~~690~~1,280 cases have been filed against 3M and other defendants, including EID

and Chemours, and more recently also including Corteva and DuPont, alleging PFOS or PFOA contamination of soil and

groundwater from the use of aqueous firefighting foams. Most of those cases claim some form of property damage and

seek to recover the costs of responding to this contamination and damages for the loss of use and enjoyment of property

and diminution in value. Most of these cases have been transferred to a multidistrict litigation proceeding in federal district court in South Carolina. Approximately ~~630~~1,165 of these cases were filed on behalf of firefighters who allege personal injuries (primarily ~~thyroid disease~~kidney and ~~kidney,~~ testicular ~~and other cancers)~~cancer) as a result of aqueous firefighting ~~foams.~~foams, while 60 are from municipal water districts. Most of these recent cases assert claims that the EID and Chemours separation constituted a fraudulent conveyance. ~~While Chemours~~A schedule of initial trials is ~~defending EID for all claims except those for fraudulent conveyance, it has declined defense and indemnity~~expected to ~~Corteva on all claims.~~be established in the second half of 2021.

EID did not make firefighting foams, PFOS, or PFOS products. While EID made surfactants and intermediaries that some manufacturers used in making foams, which may have contained PFOA as an unintended byproduct or an impurity, EID’s products were not formulated with PFOA, nor was PFOA an ingredient of these products. EID has never made or sold PFOA as a commercial product.

Fayetteville Works Facility, North Carolina

Prior to the separation of Chemours, EID introduced GenX as a polymerization processing aid and a replacement for PFOA at the Fayetteville Works facility in Bladen County, North Carolina. The facility is now owned and operated by Chemours, which continues to manufacture and use GenX.

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At June 30, ~~2020,~~2021, several actions are pending in federal court against Chemours and EID relating to PFC discharges from the Fayetteville Works facility. One of these is a consolidated putative class action that asserts claims for medical monitoring and property damage on behalf of putative classes of property owners and residents in areas near or who draw drinking water from the Cape Fear River. Another action is a consolidated action brought by various North Carolina water authorities, including the Cape Fear Public Utility Authority and Brunswick County, that seek actual and punitive damages as well as injunctive relief. In another action ~~over 200~~with approximately 100 property owners near the Fayetteville Works facility filed a complaint against Chemours and EID in May 2020. The plaintiffs seek compensatory and punitive damages for their claims of private nuisance, trespass, and negligence allegedly caused by release of PFAS.

In addition to the federal court actions, there is an action on behalf of about 100 plaintiffs who own wells and property near the Fayetteville Works facility. The plaintiffs seek damages for nuisance allegedly caused by releases of certain PFCs from the site. The plaintiffs’ claims for medical monitoring, punitive damages, public nuisance, trespass, unjust enrichment, failure to warn, and negligent manufacture ~~have all been~~were dismissed.

~~The company has an indemnification claim against Chemours with respect to current and future inquiries and~~Generally, site-related expenses related GenX claims ~~including lawsuits, related~~are subject to the ~~foregoing. At June 30, 2020, Chemours, with reservations, is defending and indemnifying EID~~cost sharing arrangements as defined in the ~~pending civil actions.~~MOU.

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Environmental

Accruals for environmental matters are recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated based on current law and existing technologies. At June 30, ~~2020,~~2021, the company had accrued obligations of ~~$350~~$335 million for probable environmental remediation and restoration costs, including ~~$51~~$57 million for the remediation of Superfund sites. These obligations are included in accrued and other current liabilities and other noncurrent obligations in the interim ~~Condensed~~ Consolidated Balance Sheet. This is management’s best estimate of the costs for remediation and restoration with respect to environmental matters for which the company has accrued liabilities, although it is reasonably possible that the ultimate cost with respect to these particular matters could range up to ~~$620~~$569 million above the amount accrued at June 30, ~~2020.~~2021. Consequently, it is reasonably possible that environmental remediation and restoration costs in excess of amounts accrued could have a material impact on the company’s results of operations, financial condition and cash flows. Inherent uncertainties exist in these estimates primarily due to unknown conditions, changing governmental regulations and legal standards regarding liability, and emerging remediation technologies for handling site remediation and restoration.

For a discussion of the allocation of environmental liabilities under the Chemours Separation Agreement and the Corteva Separation Agreement, see the previous discussion on page ~~27.~~24.

The above noted ~~$350~~$335 million accrued obligations includes the following:


	As of June 30. 2021
(In millions)	Indemnification Asset		Accrual balance3,4		Potential exposure above amount accrued3
Environmental Remediation Stray Liabilities
Chemours related obligations - subject to indemnity1,2	$	149	$	149	$	275
Other discontinued or divested businesses obligations1	0		77		181

Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2	37		37		62

Environmental remediation liabilities not subject to indemnity	0		72		51
Total	$	186	$	335	$	569

As of June 30, 2020
(In millions) Indemnification Asset
Accrual balance³
Potential exposure above amount accrued³
Environmental Remediation Stray Liabilities
Chemours related obligations - subject to indemnity^1,2
$ 158
$ 158
$ 289
Other discontinued or divested businesses obligations¹

88
222

Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont²
34
34
62

Environmental remediation liabilities not subject to indemnity

70
47
Total $ 192
$ 350
$ 620


^1.1.Represents liabilities that are subject to the $200 million thresholds and sharing arrangements as discussed on page 24, under Corteva Separation Agreement.	~~Represents liabilities that are subject the $200 million thresholds and sharing arrangements as discussed on page 27, under Corteva Separation Agreement.~~


^2.	~~The company has recorded an indemnification asset related to these accruals, including $30 million related to the Superfund sites.~~


^3.	Accrual balance represents management’s best estimate of the costs of remediation and restoration, although it is reasonably possible that the potential exposure, as indicated, could range above the amounts accrued, as there are inherent uncertainties in these estimates.

2.The company has recorded an indemnification asset related to these accruals, including $30 million related to the Superfund sites.

3.Accrual balance represents management’s best estimate of the costs of remediation and restoration, although it is reasonably possible that the potential exposure, as indicated, could range above the amounts accrued, as there are inherent uncertainties in these estimates.

4.Accrual balance excludes indemnification liabilities of $99 million to Chemours, related to the cost sharing arrangement under the MOU (see page 10).

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NOTE 1514 - STOCKHOLDERS' EQUITY

~~Common Stock~~Share Buyback Plan

On ~~June 1, 2019,~~August 5, 2021, Corteva, Inc. announced that its Board of Directors authorized a $1.5 billion share repurchase program to purchase Corteva, Inc.'s common stock, ~~was distributed to DowDuPont stockholders by way of a pro rata distribution~~. Each DowDuPont stockholder received 1 share of Corteva, Inc. common stock for every 3 shares of DowDuPont common stock held at the close of business on May 24, 2019, the record date of distribution. Corteva, Inc.'s common stock began trading the "regular way" under the ticker symbol "CTVA" on June 3, 2019, the first business day after June 1, 2019. The number of Corteva, Inc. common shares issued on June 1, 2019 was 748,815,000 (parpar value of $0.01 per ~~share). Information related to the Corteva Distribution~~share, without an expiration date. The timing, price and ~~its effect~~volume of purchases will be based on ~~the company's financial statements are discussed throughout these Notes to the interim Consolidated Financial Statements.~~market conditions, relevant securities laws and other factors.

~~Set forth below is a reconciliation of common stock share activity:~~



~~Shares of common stock~~	~~Issued~~
~~Balance January 1, 2020~~	~~748,577,000~~
~~Issued~~	~~1,773,000~~
~~Repurchased and retired~~	~~(1,865,000~~	)
~~Balance June 30, 2020~~	~~748,485,000~~

~~Share Buyback Plan~~

On June 26, 2019, Corteva, Inc. announced that ~~the~~its Board of Directors ~~of Corteva, Inc.~~ authorized a $1 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The timing, price and volume of purchases will be based on market conditions, relevant securities laws and other factors.

During the three and six months ended June 30, 2021, the company purchased and retired 4,324,000 shares and 11,970,000 shares, respectively, in the open market for a total cost of $200 million and $550 million, respectively. During the six months ended June 30, 2020, the company purchased and retired 1,865,000 shares in the open market for a total cost of $50 ~~million, with the last purchase completed on March 10, 2020.~~million.

Shares repurchased pursuant to Corteva's share buyback plan are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of stockholders' equity. The company's accounting policy related to its share repurchases is to reduce its common stock based on the par value of the shares and to reduce its retained earnings for the excess of the repurchase price over the par value. When Corteva has an accumulated deficit balance, the excess over the par value is applied to ~~additional paid-in capital.~~APIC. When Corteva has retained earnings, the excess is charged entirely to retained earnings.

Noncontrolling Interest

In June 2020, the company completed the acquisition of the remaining 46.5 percent interest in the Phytogen Seed Company, LLC joint venture from J. G. Boswell Company. As the purchase of the remaining interest did not result in a change of control, the difference between the carrying value of the noncontrolling interest and the consideration paid, net of taxes was recorded within equity.

Corteva, Inc. owns ~~100%~~100 percent of the outstanding common shares of EID. However, EID ~~does have~~has preferred stock outstanding to third parties which is accounted for as a non-controlling interest in Corteva's interim ~~Condensed~~ Consolidated Balance Sheets. 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.

Below is a summary of the EID Preferred Stock at June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019,~~2020, which is classified as noncontrolling interests in Corteva's interim ~~Condensed~~ Consolidated Balance Sheets.



Shares in thousands			Number of Shares
Authorized			23,000
$4.50 Series, callable at $120			1,673
$3.50 Series, callable at $102			700

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Other Comprehensive (Loss) Income

The changes and after-tax balances of components comprising accumulated other comprehensive loss are summarized below:


(In millions)	Cumulative Translation Adjustment1		Derivative Instruments		Pension Benefit Plans		Other Benefit Plans		Unrealized Gain (Loss) on Investments		Total






2020
Balance January 1, 2020	$	(1,944)	$	2	$	(1,247)	$	(81)	$	0	$	(3,270)
Other comprehensive (loss) income before reclassifications	(575)		(22)		(9)		2		0		(604)
Amounts reclassified from accumulated other comprehensive loss	0		26		3		0		0		29
Net other comprehensive (loss) income	(575)		4		(6)		2		0		(575)
Balance June 30, 2020	$	(2,519)	$	6	$	(1,253)	$	(79)	$	0	$	(3,845)

2021
Balance January 1, 2021	$	(1,970)	$	(67)	$	(1,433)	$	590	$	(10)	$	(2,890)
Other comprehensive (loss) income before reclassifications	(160)		109		(5)		1		3		(52)
Amounts reclassified from accumulated other comprehensive loss	0		(13)		21		(318)		7		(303)
Net other comprehensive (loss) income	(160)		96		16		(317)		10		(355)

Balance June 30, 2021	$	(2,130)	$	29	$	(1,417)	$	273	$	0	$	(3,245)

(In millions)
Cumulative Translation Adjustment¹
Derivative Instruments Pension Benefit Plans Other Benefit Plans Total
2019
Balance January 1, 2019 $ (2,793 ) $ (26 ) $ (620 ) $ 79
$ (3,360 )
Other comprehensive (loss) income before reclassifications (174 ) 12
6
(85 ) (241 )
Amounts reclassified from accumulated other comprehensive loss —
11
2
(1 ) 12
Net other comprehensive (loss) income (174 ) 23
8
(86 ) (229 )
Impact of Internal Reorganizations 1,113
—
101
—
1,214
Balance June 30, 2019 $ (1,854 ) $ (3 ) $ (511 ) $ (7 ) $ (2,375 )

2020

Balance January 1, 2020 $ (1,944 ) $ 2
$ (1,247 ) $ (81 ) $ (3,270 )
Other comprehensive (loss) income before reclassifications (575 ) (22 ) (9 ) 2
(604 )
Amounts reclassified from accumulated other comprehensive loss —
26
3
—
29
Net other comprehensive (loss) income (575 ) 4
(6 ) 2
(575 )
Balance June 30, 2020 $ (2,519 ) $ 6
$ (1,253 ) $ (79 ) $ (3,845 )
1.The cumulative translation adjustment loss for the six months ended June 30, 2020 was primarily driven by the weakening of the Brazilian Real ("BRL") and the South African Rand ("ZAR") against the USD. The cumulative translation adjustment loss for the six months ended June 30, 2021 was primarily driven by the weakening of the Swiss Franc ("CHF") and the European Euro ("EUR") against the USD.


^1.	The cumulative translation adjustment loss for the six months ended June 30, 2019 was primarily driven by the weakening of the European Euro (“EUR”) against the USD. The cumulative translation adjustment loss for the six months ended June 30, 2020 was primarily driven by the weakening of the Brazilian Real (“BRL”) and the South African Rand (“ZAR”) against the USD.

The tax benefit (expense) on the net activity related to each component of other comprehensive ~~(loss)~~ income was as follows:


(In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Derivative instruments	$	(7)	$	(3)	$	(25)	$	2
Pension benefit plans - net	(3)		1		(5)		(3)
Other benefit plans - net	48		0		97		0

Benefit from (provision for) income taxes related to other comprehensive income items	$	38	$	(2)	$	67	$	(1)

(In millions) Three Months Ended
June 30, Six Months Ended
June 30,
2020 2019 2020 2019
Derivative instruments $ (3 ) $ (4 ) $ 2
$ (7 )
Pension benefit plans - net 1
11
(3 ) 4
Other benefit plans - net —
29
—
29
(Provision for) benefit from income taxes related to other comprehensive (loss) income items $ (2 ) $ 36
$ (1 ) $ 26

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

A summary of the reclassifications out of accumulated other comprehensive loss is provided as follows:


(In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Derivative Instruments1:	$	(10)	$	28	$	(15)	$	35
Tax benefit2	3		(7)		2		(9)
After-tax	$	(7)	$	21	$	(13)	$	26
Amortization of pension benefit plans:
Prior service benefit3,4	$	(1)	$	(1)	$	(1)	$	(1)
Actuarial losses3,4	13		1		27		2

Settlement loss3,4	0		1		1		3
Total before tax	$	12	$	1	$	27	$	4
Tax benefit2	(3)		0		(6)		(1)
After-tax	$	9	$	1	$	21	$	3
Amortization of other benefit plans:
Prior service benefit3,4	$	(231)	$	0	$	(461)	$	0
Actuarial gains3,4	24		0		47		0
Curtailment gain	(1)		0		(1)		0
Total before tax	$	(208)	$	0	$	(415)	$	0
Tax benefit2	48		0		97		0
After-tax	$	(160)	$	0	$	(318)	$	0



Unrealized Loss on Investments4	$	1	$	0	$	7	$	0
Tax benefit2	0		0		0		0
After-tax	$	1	$	0	$	7	$	0
Total reclassifications for the period, after-tax	$	(157)	$	22	$	(303)	$	29

1.Reflected in cost of goods sold.

2.Reflected in provision for income taxes from continuing operations.

3.These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit credit of the company's pension and other benefit plans. See Note 15 - Pension Plans and Other Post Employment Benefits, for additional information.

4.Reflected in other income - net.

(In millions) Three Months Ended
June 30, Six Months Ended
June 30,
2020 2019 2020 2019
Derivative Instruments¹:
$ 28
$ 8
$ 35
$ 12
Tax benefit²
(7 ) (2 ) (9 ) (1 )
After-tax $ 21
$ 6
$ 26
$ 11
Amortization of pension benefit plans:
  Prior service benefit³
$ (1 ) $ —
$ (1 ) $ —
  Actuarial losses³
1
—
2
1
  Settlement loss³
1
1
3
1
Total before tax 1
1
4
2
Tax benefit²
—
—
(1 ) —
After-tax $ 1
$ 1
$ 3
$ 2
Amortization of other benefit plans:
  Actuarial gains³
$ —
$ (1 ) $ —
$ (1 )
Total before tax —
(1 ) —
(1 )
Tax benefit —
—
—
—
After-tax $ —
$ (1 ) $ —
$ (1 )
Total reclassifications for the period, after-tax $ 22
$ 6
$ 29
$ 12


^1.	~~Reflected in cost of goods sold.~~


^2.	~~Reflected in provision for (benefit from) income taxes from continuing operations.~~


^3.	~~These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit (credit) cost of the company's pension and other benefit plans. See Note~~ 16 ~~- Pension Plans and Other Post Employment Benefits, for additional information.~~

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1615 - PENSION PLANS AND OTHER POST EMPLOYMENT BENEFITS

In connection with the Corteva Distribution, the company retained the benefit obligations relating to EID's principal U.S. pension plan, several other U.S. and non-U.S. pension plans and other post employment benefit plans ("OPEB"). Corteva entered into an employee matters agreement with DuPont which provides that employees of DuPont no longer participate in the benefits sponsored or maintained by the company as of the date of the Corteva Distribution and transferred certain EID's pension and OPEB obligations and associated assets to DuPont. As a result of the transfer, about $5.8 billion unfunded obligations of the pension and OPEB plans remained with Corteva, of which $319 million is supported by funding under the Trust agreement.

As a result of the Corteva Distribution, the company re-measured OPEB plans as of June 1, 2019. In connection with the re-measurement, the company updated the discount rate assumed at December 31, 2018 from 4.23% to 3.64%. The re-measurement resulted in an increase of $114 million to the company’s OPEB benefit obligations with a corresponding loss effect within other comprehensive income (loss) for the three and six months ended June 30, 2019.

The following sets forth the components of the company's net periodic (credit) benefit ~~(credit)~~ cost for defined benefit pension plans and other post employment benefits:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Defined Benefit Pension Plans:
Service cost	$	5	$	8	$	12	$	13
Interest cost	91		140		182		281
Expected return on plan assets	(228)		(249)		(458)		(500)
Amortization of unrecognized loss	13		1		27		2
Amortization of prior service benefit	(1)		(1)		(1)		(1)
Settlement loss	0		1		1		3
Net periodic (credit) benefit cost	$	(120)	$	(100)	$	(237)	$	(202)
Other Post Employment Benefits:
Service cost	$	0	$	0	$	0	$	1
Interest cost	5		17		11		33
Amortization of unrecognized loss	24		0		47		0
Amortization of prior service benefit	(231)		0		(461)		0
Curtailment gain	(1)		0		(1)		0
Net periodic (credit) benefit cost	$	(203)	$	17	$	(404)	$	34

Three Months Ended June 30, Six Months Ended June 30,
(In millions) 2020 2019 2020 2019
Defined Benefit Pension Plans:
Service cost $ 8
$ 12
$ 13
$ 32
Interest cost 140
199
281
407
Expected return on plan assets (249 ) (282 ) (500 ) (586 )
Amortization of unrecognized loss 1
1
2
2
Amortization of prior service benefit (1 ) —
(1 ) —
Settlement/curtailment loss (gain) 1
(1 ) 3
(1 )
Net periodic benefit credit - Total $ (100 ) $ (71 ) $ (202 ) $ (146 )
Less: Discontinued operations¹
—
(9 ) —
(17 )
Net periodic benefit credit - Continuing operations $ (100 ) $ (62 ) $ (202 ) $ (129 )
Other Post Employment Benefits:
Service cost $ —
$ 1
$ 1
$ 3
Interest cost 17
22
33
45
Amortization of unrecognized gain —
(1 ) —
(1 )
Net periodic benefit cost - Continuing operations $ 17
$ 22
$ 34
$ 47


^1.	~~Includes non-service related components of net periodic benefit credit of $(16) million and $(37) million for the three and six months ended June 30, 2019, respectively.~~

~~Table of Contents~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

NOTE 1716 - FINANCIAL INSTRUMENTS

At June 30, 2021, December 31, 2020 and June 30, 2020, the company had $1,923 million, $2,511 million and $2,073 million, ~~($1,293 million and $1,389 million at December 31, 2019 and June 30, 2019, respectively)~~respectively, of held-to-maturity securities (primarily time deposits and money market funds) classified as cash equivalents ~~and restricted cash equivalents,~~in the interim Consolidated Balance Sheets, as these securities had maturities of three months or less at the time of purchase; and $39 million, $43 million and $60 million ~~($5 million and $6 million~~ at June 30, 2021, December 31, ~~2019~~2020 and June 30, ~~2019, respectively)~~2020, respectively, of held-to-maturity securities (primarily time deposits) classified as marketable securities in the interim Consolidated Balance Sheets as these securities had maturities of more than three months to less than one year at the time of purchase. The company’s investments in held-to-maturity securities are held at amortized cost, which approximates fair value. ~~These~~At December 31, 2020, the company had $226 million of available-for-sale debt securities ~~are included in cash and cash equivalents,~~classified as marketable securities ~~and other current assets~~ in the ~~Condensed~~interim Consolidated Balance ~~Sheets.~~Sheet.

Derivative Instruments

Objectives and Strategies for Holding Derivative Instruments

In the ordinary course of business, the company enters into contractual arrangements (derivatives) to reduce its exposure to foreign currency and commodity price risks. The company has established a variety of derivative programs to be utilized for financial risk management. These programs reflect varying levels of exposure coverage and time horizons based on an assessment of risk.

Derivative programs have procedures and controls and are approved by the Corporate Financial Risk Management Committee, consistent with the company's financial risk management policies and guidelines. Derivative instruments used are forwards, options, futures and swaps. The company has not designated any non-derivatives as hedging instruments.

The company's financial risk management procedures also address counterparty credit approval, limits and routine exposure monitoring and reporting. The counterparties to these contractual arrangements are major financial institutions and major commodity ~~exchanges.~~exchanges, and multinational grain exporters. The company is exposed to credit loss in the event of nonperformance by these counterparties. The company utilizes collateral support annex agreements with certain counterparties to limit its exposure to credit losses. The company anticipates performance by counterparties to these contracts and therefore no material loss is expected. Market and counterparty credit risks associated with these instruments are regularly reported to management.

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The notional amounts of the company's derivative instruments were as follows:


Notional Amounts (In millions)	June 30, 2021		December 31, 2020		June 30, 2020
Derivatives designated as hedging instruments:
Foreign currency contracts	$	767	$	1,164	$	721
Commodity contracts	$	143	$	383	$	165
Derivatives not designated as hedging instruments:
Foreign currency contracts	$	878	$	647	$	770
Commodity contracts	$	5	$	0	$	19

Notional Amounts
(In millions)
June 30, 2020 December 31, 2019 June 30, 2019
Derivatives designated as hedging instruments:
Foreign currency contracts $ 721
$ —
$ —
Commodity contracts $ 165
$ 570
$ 76
Derivatives not designated as hedging instruments:

Foreign currency contracts $ 770
$ 582
$ 1,558
Commodity contracts $ 19
$ —
$ 38

Foreign Currency Risk

The company's objective in managing exposure to foreign currency fluctuations is to reduce earnings and cash flow volatility associated with foreign currency rate changes and to mitigate the exposure of certain investments in foreign subsidiaries against changes in the Euro/USD exchange rate. Accordingly, the company enters into various contracts that change in value as foreign exchange rates change to protect the value of its existing foreign currency-denominated assets, liabilities, commitments, investments and cash flows.

The company uses foreign exchange contracts to offset its net exposures, by currency, related to the foreign currency denominated monetary assets and liabilities of its operations. The primary business objective of this hedging program is to maintain an approximately balanced position in foreign currencies so that exchange gains and losses resulting from exchange rate changes, after related tax effects, are minimized. The company also uses foreign currency exchange contracts to offset a portion of the company’s exposure to certain forecasted transactions as well as the translation of foreign currency-denominated earnings. The company also uses commodity contracts to offset risks associated with foreign currency devaluation in certain countries.

Commodity Price Risk

Commodity price risk management programs serve to reduce exposure to price fluctuations on purchases of inventory such as corn and soybeans. The company enters into over-the-counter and exchange-traded derivative commodity instruments to hedge the commodity price risk associated with agricultural commodity exposures.

~~Table of Contents~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

Derivatives Designated as Cash Flow Hedges

Commodity Contracts

The company enters into over-the-counter and exchange-traded derivative commodity instruments, including options, futures and swaps, to hedge the commodity price risk associated with agriculture commodity exposures.

While each risk management program has a different time maturity period, most programs currently do not extend beyond the next two years. Cash flow hedge results are reclassified into earnings during the same period in which the related exposure impacts earnings. Reclassifications are made sooner if it appears that a forecasted transaction is ~~not~~ probable of not occurring.

The following table summarizes the after-tax effect of commodity contract cash flow hedges on accumulated other comprehensive loss:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Beginning balance	$	10	$	(15)	$	(16)	$	2
Additions and revaluations of derivatives designated as cash flow hedges	73		(22)		103		(44)
Clearance of hedge results to earnings	(10)		21		(14)		26
Ending balance	$	73	$	(16)	$	73	$	(16)

Three Months Ended
June 30, Six Months Ended
June 30,
(In millions) 2020 2019 2020 2019
Beginning balance $ (15 ) $ (25 ) $ 2
$ (26 )
Additions and revaluations of derivatives designated as cash flow hedges (22 ) 16
(44 ) 12
Clearance of hedge results to earnings 21
6
26
11
Ending balance $ (16 ) $ (3 ) $ (16 ) $ (3 )

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

At June 30, ~~2020,~~2021, an after-tax net ~~loss~~gain of ~~$18~~$63 million is expected to be reclassified from accumulated other comprehensive loss into earnings over the next twelve months.

Foreign Currency Contracts

The company enters into forward contracts to hedge the foreign currency risk associated with forecasted transactions within certain foreign subsidiaries.

The following table summarizes the after-tax effect of foreign currency cash flow hedges on accumulated other comprehensive loss:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Beginning balance	$	6	$	16	$	(17)	$	0
Additions and revaluations of derivatives designated as cash flow hedges	(30)		3		(5)		19
Clearance of hedge results to earnings	3		0		1		0
Ending balance	$	(21)	$	19	$	(21)	$	19

Three Months Ended
June 30, Six Months Ended
June 30,
(In millions) 2020 2020
Beginning balance $ 16
$ —
Additions and revaluations of derivatives designated as cash flow hedges 3
19
Ending balance $ 19
$ 19

At June 30, ~~2020,~~2021, an after-tax net ~~gain~~loss of ~~$19~~$21 million is expected to be reclassified from accumulated other comprehensive loss into earnings over the next twelve months.

Derivatives Designated as Net Investment Hedges

Foreign Currency Contracts

The company has designated €450 million of forward contracts to exchange EUR as net investment hedges. The purpose of these forward contracts is to mitigate FX exposure related to a portion of the company’s ~~euro~~Euro net investments in certain foreign subsidiaries against changes in Euro/USD exchange rates. These hedges will expire and be settled in 2023, unless terminated early at the discretion of the company.

The company elected to apply the spot method in testing for effectiveness of the hedging relationship.

~~Table of Contents~~

~~NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

Derivatives not Designated in Hedging Relationships

Foreign Currency Contracts

The company uses foreign exchange contracts to reduce its net exposure, by currency, related to foreign currency-denominated monetary assets and liabilities of its operations so that exchange gains and losses resulting from exchange rate changes are minimized. The netting of such exposures precludes the use of hedge accounting; however, the required revaluation of the forward contracts and the associated foreign currency-denominated monetary assets and liabilities intends to achieve a minimal earnings impact, after taxes. The company also uses foreign currency exchange contracts to offset a portion of the company’s exposure to the translation of certain foreign currency-denominated earnings so that gains and losses on the contracts offset changes in the USD value of the related foreign currency-denominated earnings over the relevant aggregate period.

Commodity Contracts

The company utilizes options, futures and swaps that are not designated as hedging instruments to reduce exposure to commodity price fluctuations on purchases of inventory such as corn and soybeans. The company uses forward agreements, with durations less than one year, to buy and sell USD priced commodities in order to reduce its exposure to currency devaluation for a portion of its local currency cash balances. Counterparties to the forward sales agreements are multinational grain exporters and subject to the company’s financial risk management procedures.

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Fair Value of Derivative Instruments

Asset and liability derivatives subject to an enforceable master netting arrangement with the same counterparty are presented on a net basis in the interim ~~Condensed~~ Consolidated Balance Sheets. The presentation of the company's derivative assets and liabilities is as follows:


		June 30, 2021
(In millions)	Balance Sheet Location	Gross		Counterparty and Cash Collateral Netting1		Net Amounts Included in the interim Consolidated Balance Sheet
Asset derivatives:
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	1	$	0	$	1
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	36		(20)		16


Total asset derivatives		$	37	$	(20)	$	17

Liability derivatives:
Derivatives designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	$	21	$	0	$	21
Derivatives not designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	72		(20)		52

Total liability derivatives		$	93	$	(20)	$	73

June 30, 2020
(In millions) Balance Sheet Location Gross
Counterparty and Cash Collateral Netting¹
Net Amounts Included in the Condensed Consolidated Balance Sheet
Asset derivatives:
Derivatives designated as hedging instruments:
Foreign currency contracts Other current assets $ 19
$ —
$ 19
Derivatives not designated as hedging instruments:

Foreign currency contracts Other current assets 101
(57 ) 44
Total asset derivatives $ 120
$ (57 ) $ 63

Liability derivatives:

Derivatives not designated as hedging instruments:

Foreign currency contracts Accrued and other current liabilities $ 65
$ (56 ) $ 9
Total liability derivatives $ 65
$ (56 ) $ 9

3735

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1918 - SEGMENT INFORMATION

~~Segment~~Corteva’s reportable segments reflects the manner in which its chief operating decision maker ("CODM") allocates resources and assesses performance, which is at the operating segment level (seed and crop protection). For purposes of allocating resources to the segments and assessing segment performance, segment operating EBITDA is the primary measure ~~of segment profitability~~ used by Corteva’s ~~chief operating decision maker ("CODM").~~CODM. The company defines segment operating EBITDA as earnings (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating (benefits) costs - net, ~~and~~ foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. Effective January 1, 2021, on a prospective basis, the company excludes from segment operating EBITDA net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. Non-operating (benefits) costs - net consists of non-operating pension and other post-employment benefit (OPEB) costs, tax indemnification adjustments and environmental remediation and legal costs associated with legacy EID businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense. ~~For purposes of the six months ended June 30, 2019, segment operating EBITDA is calculated on a pro forma basis, as this is the manner in which the CODM assesses performance and allocates resources.~~

Pro forma adjustments used in the calculation of pro forma segment operating EBITDA for the six months ended June 30, 2019 were determined in accordance with Article 11 of Regulation S-X. These adjustments give effect to the Merger, the debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (refer to the company’s Annual Report on Form 10-K for the year ended


As of and for the Three Months Ended June 30, (In millions)	Seed		Crop Protection		Total
2021
Net sales	$	3,780	$	1,847	$	5,627
Segment operating EBITDA	$	1,123	$	370	$	1,493
Segment assets1	$	23,804	$	12,996	$	36,800

2020
Net sales	$	3,538	$	1,653	$	5,191
Segment operating EBITDA	$	956	$	309	$	1,265
Segment assets1	$	24,356	$	13,034	$	37,390

1. Segment assets at December 31, ~~2019~~2020 were $23,751 million and $13,099 million for ~~further information),~~Seed and ~~the separation and distribution to DowDuPont stockholders of all the outstanding shares of Corteva common stock as if they had been consummated on January 1, 2016.~~Crop Protection, respectively.


For the Six Months Ended June 30, (In millions)	Seed		Crop Protection		Total
2021
Net sales	$	6,272	$	3,533	$	9,805
Segment operating EBITDA	$	1,740	$	691	$	2,431

2020
Net sales	$	5,993	$	3,154	$	9,147
Segment operating EBITDA	$	1,537	$	547	$	2,084

As of and for the Three Months Ended June 30,
(In millions)
Seed Crop Protection Total
2020

Net sales $ 3,538
$ 1,653
$ 5,191
Segment operating EBITDA $ 956
$ 309
$ 1,265
Segment assets¹
$ 24,356
$ 13,034
$ 37,390

2019

Net sales $ 3,699
$ 1,857
$ 5,556
Segment operating EBITDA $ 1,036
$ 450
$ 1,486
Segment assets¹
$ 26,623
$ 13,205
$ 39,828


1.	~~Segment assets at December 31, 2019 were $25,387 million and $13,492 million for Seed and Crop Protection, respectively.~~

For the Six Months Ended June 30,
(In millions)
Seed Crop Protection Total
2020

Net sales $ 5,993
$ 3,154
$ 9,147
Segment operating EBITDA $ 1,537
$ 547
$ 2,084

2019

Net sales $ 5,666
$ 3,286
$ 8,952
Pro forma segment operating EBITDA $ 1,361
$ 670
$ 2,031

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Reconciliation to interim Consolidated Financial Statements


Income from continuing operations after income taxes to segment operating EBITDA (In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Income from continuing operations after income taxes	$	1,018	$	766	$	1,631	$	1,047
Provision for income taxes on continuing operations	284		78		462		205
Income from continuing operations before income taxes	1,302		844		2,093		1,252
Depreciation and amortization	313		300		617		583
Interest income	(18)		(9)		(39)		(27)
Interest expense	7		14		14		24
Exchange losses (gains) - net	14		(1)		49		60
Non-operating benefits - net	(315)		(91)		(626)		(164)

Mark-to-market losses on certain foreign currency contracts not designated as hedges1	23				22
Significant items	135		179		235		302

Corporate expenses	32		29		66		54
Segment operating EBITDA	$	1,493	$	1,265	$	2,431	$	2,084

Income from continuing operations after income taxes to segment operating EBITDA

(In millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020 2019 2020
2019¹
Income from continuing operations after income taxes $ 766
$ 483
$ 1,047
$ 299
Provision for income taxes on continuing operations 78
270
205
203
Income from continuing operations before income taxes 844
753
1,252
502
Depreciation and amortization 300
227
583
485
Interest income (9 ) (17 ) (27 ) (33 )
Interest expense 14
34
24
93
Exchange (gains) losses - net
(1 ) 32
60
59
Non-operating benefits - net (91 ) (32 ) (164 ) (74 )
Significant items 179
455
302
640
Pro forma adjustments 298
Corporate expenses 29
34
54
61
Segment operating EBITDA $ 1,265
$ 1,486
$ 2,084
$ 2,031


1.	~~Period is presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X.~~

1.Effective January 1, 2021, on a prospective basis, the company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and six months ended June 30, 2020, the unrealized mark-to-market gain was $27 million. Refer to page 56 for further discussion of the company’s Non-GAAP financial measures.

Segment assets to total assets (in millions)
June 30, 2020 December 31, 2019 June 30, 2019
Total segment assets $ 37,390
$ 38,879
$ 39,828
Corporate assets 4,790
3,518
4,094
Total assets $ 42,180
$ 42,397
$ 43,922


Segment assets to total assets (in millions)	June 30, 2021		December 31, 2020		June 30, 2020
Total segment assets	$	36,800	$	36,850	$	37,390
Corporate assets	4,696		5,799		4,790
Total assets	$	41,496	$	42,649	$	42,180

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

The three and six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, included the following significant pre-tax ~~charges~~(charges) benefits which are excluded from segment operating EBITDA:


(In millions)	Seed			Crop Protection			Corporate			Total			(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended June 30, 2020
For the Three Months Ended June 30, 2021													For the Three Months Ended June 30, 2021
Restructuring and Asset Related Charges - Net ¹	$	(135	)	$	(40	)	$	(4	)	$	(179	)	Restructuring and Asset Related Charges - Net 1	$	(115)	$	(11)	$	(9)	$	(135)

Total	$	(135	)	$	(40	)	$	(4	)	$	(179	)	Total	$	(115)	$	(11)	$	(9)	$	(135)

(In millions) Seed Crop Protection Corporate Total
For the Three Months Ended June 30, 2019
Restructuring and Asset Related Charges - Net ¹
$ (49 ) $ (2 ) $ (9 ) $ (60 )
Integration and Separation Costs²
—
—
(330 ) (330 )
Amortization of inventory step up³
(52 ) —
—
(52 )
Loss on early extinguishment of debt⁴
—
—
(13 ) (13 )
Total $ (101 ) $ (2 ) $ (352 ) $ (455 )


(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended June 30, 2020
Restructuring and Asset Related Charges - Net 1	$	(135)	$	(40)	$	(4)	$	(179)

Total	$	(135)	$	(40)	$	(4)	$	(179)


(In millions)	Seed			Crop Protection			Corporate			Total			(In millions)	Seed		Crop Protection		Corporate		Total
For the Six Months Ended June 30, 2020
For the Six Months Ended June 30, 2021													For the Six Months Ended June 30, 2021
Restructuring and Asset Related Charges - Net ¹	$	(145	)	$	(58	)	$	(46	)	$	(249	)	Restructuring and Asset Related Charges - Net 1	$	(136)	$	(43)	$	(56)	$	(235)
Loss on Divestiture⁵	—			(53		)	—			(53		)

Total	$	(145	)	$	(111	)	$	(46	)	$	(302	)	Total	$	(136)	$	(43)	$	(56)	$	(235)

(In millions) Seed Crop Protection Corporate Total
For the Six Months Ended June 30, 2019⁷

Restructuring and Asset Related Charges - Net ¹
$ (76 ) $ (25 ) $ (20 ) $ (121 )
Integration and Separation Costs²
—
—
(430 ) (430 )
Amortization of inventory step up³
(52 ) —
—
(52 )
Loss on early extinguishment of debt⁴
—
—
(13 ) (13 )
Loss on Divestiture⁶
(24 ) —
—
(24 )
Total $ (152 ) $ (25 ) $ (463 ) $ (640 )


(In millions)	Seed		Crop Protection		Corporate		Total
For the Six Months Ended June 30, 2020
Restructuring and Asset Related Charges - Net 1	$	(145)	$	(58)	$	(46)	$	(249)
Loss on Divestiture2	—		(53)		—		(53)
Total	$	(145)	$	(111)	$	(46)	$	(302)

1.Includes Board approved restructuring plans and asset related charges as well as accelerated prepaid amortization expense. See Note 5 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements for additional information.

2.Includes a loss recorded in other income - net related to the sale of the La Porte site.


1.	Includes Board approved restructuring plans and asset related charges as well as accelerated prepaid amortization expense. See Note 5 - Restructuring and Asset Related Charges - Net, for additional information.


2.	~~Integration and separation costs include costs incurred to prepare for and close the Merger, post-Merger integration expenses, and costs incurred to prepare for the Business Separations.~~


3.	~~Includes a charge related to the amortization of the inventory that was stepped up to fair value in connection with the Merger.~~


4.	Includes a loss on early extinguishment of debt related to the difference between the redemption price and the par value of the Make Whole Notes and Term Loan Facility, partially offset by the write-off of unamortized step-up related to the fair value step-up of EID's debt.


5.	~~Includes a loss recorded in other income - net related to the expected sale of the La Porte site.~~


6.	~~Includes a loss recorded in other income - net related to DAS’s sale of a joint venture related to synergy actions.~~


7.	~~Period is presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X.~~

Table of Contents


~~Item 2.~~	~~MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statements About Forward-Looking Statements

This report contains certain estimates and forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates,” ~~"outlook,"~~“outlook,” or other words of similar meaning. All statements that address expectations or projections about the future, including statements about Corteva’s strategy for growth, product development, regulatory approval, market position, liquidity, anticipated benefits of recent acquisitions, timing of anticipated benefits from restructuring actions, outcome of contingencies, such as litigation and environmental matters, expenditures, and financial results, as well as ~~expected benefits from, the~~its expectations related to its separation of Corteva from ~~DuPont,~~DowDuPont and the agreements related thereto, are forward-looking statements.

Forward-looking statements and other estimates are based on certain assumptions and expectations of future events which may not be accurate or realized. Forward-looking statements and other estimates also involve risks and uncertainties, many of which are beyond Corteva’s control. While the list of factors presented below is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Corteva’s business, results of operations and financial condition. Some of the important factors that could cause Corteva’s actual results to differ materially from those projected in any such forward-looking statements include: (i) failure to ~~successfully develop and commercialize Corteva’s pipeline; (ii) effect of competition and consolidation in Corteva’s industry; (iii) failure to~~ obtain or maintain the necessary regulatory approvals for some of Corteva’s products; ~~(iv)~~(ii) failure to ~~enforce~~successfully develop and commercialize Corteva’s ~~intellectual property rights~~pipeline; (iii) effect of the degree of public understanding and acceptance or ~~defend against intellectual property claims asserted by others;~~perceived public acceptance of Corteva’s biotechnology and other agricultural products; (iv) effect of changes in agricultural and related policies of governments and international organizations; (v) effect of competition and consolidation in Corteva’s industry; (vi) effect of competition from manufacturers of generic products; ~~(vi) impact of Corteva’s dependence on third parties with respect to certain of its raw materials or licenses and commercialization;~~ (vii) costs of complying with evolving regulatory requirements and the effect of actual or alleged violations of environmental laws or permit requirements; (viii) effect of ~~the degree~~climate change and unpredictable seasonal and weather factors; (ix) risks related to oil and commodity markets; (x) competitor’s establishment of ~~public understanding~~an intermediary platform for distribution of Corteva's products; (xi) impact of Corteva's dependence on third parties with respect to certain of its raw materials or licenses and acceptance or perceived public acceptance of Corteva’s biotechnology and other agricultural products; (ix) effect of changes in agricultural and related policies of governments and international organizations; (x)commercialization; (xii) effect of industrial espionage and other disruptions to Corteva’s supply chain, information technology or network systems; ~~(xi) competitor’s establishment of an intermediary platform for distribution of Corteva's products; (xii)~~(xiii) effect of volatility in Corteva’s input costs; ~~(xiii) failure to raise capital through the capital markets or short-term borrowings on terms acceptable to Corteva;~~ (xiv) ~~failure of Corteva’s customers to pay their debts to Corteva, including customer financing programs; (xv)~~ failure to realize the anticipated benefits of the internal reorganizations taken by DowDuPont in connection with the spin-off of Corteva ~~including~~and other cost savings initiatives; (xv) failure to raise capital through the capital markets or short-term borrowings on terms acceptable to Corteva; (xvi) failure of Corteva’s customers to pay their debts to Corteva, including customer financing programs; (xvii) increases in pension and other post-employment benefit ~~from significant cost synergies; (xvi)~~plan funding obligations; (xviii) risks related to the indemnification obligations of legacy EID liabilities in connection with the separation of Corteva; ~~(xvii) increases in pension and other post-employment benefit plan funding obligations; (xviii)~~(xix) effect of compliance with laws and requirements and adverse judgments on litigation; ~~(xix)~~(xx) risks related to Corteva’s global operations; ~~(xx) effect of climate change and unpredictable seasonal and weather factors;~~ (xxi) ~~effect of counterfeit products; (xxii)~~ failure to effectively manage acquisitions, divestitures, alliances and other portfolio actions; (xxii) risks related to COVID-19; (xxiii) risks related to ~~non-cash charges from impairment~~activist stockholders; (xxiv) Corteva’s intellectual property rights or defend against intellectual property claims asserted by others; (xxv) effect of ~~goodwill or intangible assets; (xxiv) risks related to COVID-19; (xxv) risks related to oil and commodity markets; and~~counterfeit products; (xxvi) Corteva’s dependence on intellectual property cross-license agreements; (xxvii) other risks related to the ~~Separation~~separation from ~~DowDuPont.~~DowDuPont; (xxviii) risks related to the Biden executive order Promoting Competition in the American Economy; and (xxix) risks associated with our CEO transition, including failure to timely identify a successor CEO.

Additionally, there may be other risks and uncertainties that Corteva is unable to currently identify or that Corteva does not currently expect to have a material impact on its business. Where, in any forward-looking statement or other estimate, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of Corteva’s management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. Corteva disclaims and does not undertake any obligation to update or revise any forward-looking statement, except as required by applicable law. A detailed discussion of some of the significant risks and uncertainties which may cause results and events to differ materially from such forward-looking statements or other estimates is included in the ~~section titled~~ “Risk Factors” ~~(Part II, Item 1A~~section of ~~this quarterly report~~Corteva’s 2020 Annual Report, as modified by subsequent Quarterly Reports on Forms 10-Q and Current Reports on Form ~~10-Q).~~8-K.

Table of Contents

Recent Developments

COVID-19 Pandemic

On March 11, 2020, the World Health Organization (“WHO”) declared the novel coronavirus disease (“COVID-19”) a pandemic. Since the early days of the coronavirus outbreak, Corteva has taken steps to help protect the health and safety of its employees, customers, vendors, and stakeholders. Corteva has engaged crisis management teams at the country, regional and global level, and its Integrated Health Services Pandemic & Infectious Disease Planning Team has been monitoring the situation and developing guidelines and protocols that have been communicated to all of its employees globally.

Overwhelmingly, countries and U.S. states have considered agriculture an “essential business”; therefore, Corteva is not subject to many of the restrictions imposed by the government, particularly on non-essential businesses, which, in certain cases, includes ordering businesses to close or limit operations or people to stay at home. While the company's business has experienced some localized operating disruptions, particularly around sourcing and logistics, these disruptions have been temporary and have not materially impacted the company's financial results. Additionally, the company has implemented mitigating strategies to limit the impact of supply chain disruptions, including leveraging the company’s ability to use a multi-sourcing strategy and source key raw materials from multiple suppliers and countries. Furthermore, the company implemented remote work arrangements for non-essential employees and restricted business travel effective mid-March, and to date, these arrangements have not materially affected the company's ability to maintain its business operations, including the operation of financial reporting systems, internal control over financial reporting, and disclosure controls and procedures.

The global health crisis caused by COVID-19 and the related government actions and stay at home orders have negatively impacted economic activity and increased political instability across the globe. ~~The company~~Since the crisis began Corteva has ~~observed declining demand~~engaged its global Integrated Health Services Pandemic & Infectious Disease Team to take actions and ~~price reductions~~implement guidelines and protocols in response to the ~~oil~~COVID-19 pandemic described in its 2020 Annual Report, Part II, Item 7. Management’s Discussion and ~~gas sector as business~~Analysis of Financial Condition and ~~consumer activity decelerates across the globe, which has impacted the price~~Results of ~~corn.~~ Operations, COVID-19 Pandemic.

When COVID-19 is demonstrably contained, the company anticipates a rebound in economic activity, depending on the rate, pace, and effectiveness of the containment efforts deployed by various national, state, and local ~~governments.~~governments, vaccination rates, and the ability of COVD-19 variants to overcome containment efforts, available vaccines, and medical treatments. Corteva will continue to actively monitor the situation and may take further actions altering its business operations that it determines are in the best interests of its stakeholders, or as required by federal, state, or local authorities. It is not clear what the potential effects any such alterations or modifications may have on the company's business, including the effects on its customers, employees, and prospects, or on its financial results for ~~the remainder of fiscal 2020~~2021 and beyond. With the ~~increasing uncertainty~~ongoing volatility in global markets, the company will continue to monitor various factors that could impact ~~mid-term forecasted~~earnings and cash flows of the business, including, but not limited to the inflation of, or unavailability of raw material inputs and transportation and logistics services, currency fluctuations, expectations of future planted area (as influenced by consumer demand, ethanol markets and government policies and regulations), trade and purchasing of commodities globally and relative commodity prices. For further discussion on the estimated impact of COVID-19 on our long-term projections and recoverability of certain assets, refer to management’s discussion of Critical Accounting estimates on page 64.

~~Execute to Win Productivity Program~~2021 Restructuring Actions

~~During the first quarter of 2020,~~On February 1, 2021, Corteva approved restructuring actions designed to ~~improve productivity through optimizing certain operational~~right-size and optimize footprint and organizational ~~structures primarily related~~structure according to the ~~Execute to Win Productivity Program.~~business needs in each region with the focus on driving continued cost improvement and productivity. As a result of these actions, the company expects to record total pre-tax restructuring charges of approximately ~~$185~~$130 million to $170 million, comprised of approximately ~~$125~~$40 million ~~of asset related charges (of which $30 million relates~~ to ~~asset retirement obligations), and $60~~$50 million of severance and related benefit ~~costs.~~costs, $40 million to $60 million of asset related charges, $10 million to $15 million of asset retirement obligations and $40 million to $45 million of costs related to contract terminations (contract terminations includes early lease terminations). Future cash payments related to this charge are anticipated to be approximately $80 million to $100 million, primarily related to the payment of severance and related benefits, asset retirement obligations, and costs related to contract terminations. The restructuring actions associated with this charge are expected to be substantially complete in ~~2020.~~2021.

During the six months ended June 30, ~~2020,~~2021, the company recorded pre-tax charges of ~~$104~~$110 million, recognized in restructuring and asset related charges - net in the company's interim Consolidated Statement of Operations, ~~comprised of $58 million of asset related charges and $46 million of severance and related benefit costs.~~

~~Future cash payments related to this charge are anticipated to be $86 million,~~ primarily related to the payment of severance and related benefits and ~~asset retirement obligations.~~ contract termination charges.

The ~~company expects $130~~2021 Restructuring Actions are expected to contribute to the company’s ongoing cost and productivity improvement efforts through achieving an estimated $70 million of savings ~~to be achieved~~ on a run rate basis by 2023. See Note 5 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements for additional information.

Share Buyback Plan

On August 5, 2021, Corteva, Inc. announced that its Board of Directors authorized a $1.5 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The timing, price and volume of purchases will be based on market conditions, relevant securities laws and other factors.

On June 26, 2019, Corteva, Inc. announced that its Board of Directors authorized a $1 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The company expects to complete the share repurchase program ~~is expected to be completed~~ in ~~approximately three years.~~2021. The timing, price and volume of purchases will be based on market conditions, relevant securities laws and other factors. During the three and six months ended June 30, 2021, the company purchased and retired 4,324,000 shares and 11,970,000 shares, respectively, in the open market for a total cost of $200 million and $550 million, respectively. During the six months ended June 30, 2020, the company purchased and retired 1,865,000 shares in the open market for a total cost of $50 ~~million, with the last purchase completed on March 10, 2020.~~

million.

Table of Contents

Overview

The following is a summary of results from continuing operations for the three months ended June 30, ~~2020:~~2021:

•The company reported net sales of ~~$5,191~~$5,627 million, ~~down 7~~up 8 percent versus the same quarter last year, reflecting a 45 percent ~~decrease~~increase in volume, a 32 percent ~~decline in~~favorable impact from currency and ~~1 percent impact in portfolio, partially offset by~~ a 1 percent increase in price.

•Cost of goods sold ("COGS") totaled $3,010 million in the second quarter of 2021, up from $2,829 million in the second quarter of 2020, ~~down from $3,047~~primarily driven by increased volumes and higher input costs, freight and logistics, which are primarily market-driven, partially offset by ongoing cost and productivity actions.

•Restructuring and asset related charges - net were $135 million in the second quarter of ~~2019, primarily driven by currency benefits, lower volumes, $52~~2021, a decrease from $179 million in the second quarter of ~~amortization of inventory step-up included in~~2020. The charges for the three months ended June 30, ~~2019~~2021 primarily relate to $112 million of non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and ~~ongoing cost synergies~~Roundup Ready 2 Xtend® herbicide tolerance traits, and ~~productivity efforts.~~$21 million related to severance and related benefit costs, and asset related charges associated with 2021 Restructuring Actions.


•	Restructuring and asset related charges - net were $179 million in the second quarter of 2020, an increase from $60 million in the second quarter 2019. The three months ended June 30, 2020 included $138 million of non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield^® ~~and Roundup Ready 2 Xtend~~^® ~~herbicide tolerance traits.~~

~~There were no integration and separation costs in the second quarter of 2020, as compared to $330 million in the second quarter of 2019.~~

The provision for income taxes for the three months ended June 30, ~~2020~~2021 includes anet tax ~~benefit~~benefits of ~~$51~~$18 million ~~to provision for income taxes on continuing operations related to a return to accrual adjustment~~ associated with ~~an elective change~~changes in ~~accounting method~~accruals for ~~the 2019~~certain prior year tax ~~year impact of the 2017 Tax Cuts and Jobs Act 's (“The Act”) foreign tax provisions.~~positions in various jurisdictions.

•Income from continuing operations after income taxes was ~~$766~~$1,018 million, as compared to ~~income of $483~~$766 million in the same quarter last year.

•

~~Operating EBITDA was $1,236 million, down from $1,452 million for the three months ended June 30, 2019~~

•Operating EBITDA was $1,461 million for the three months ended June 30, 2021, up from $1,236 million for the three months ended June 30, 2020 primarily driven by volume gains and strong price execution, which more than offset cost headwinds. The company experienced cost headwinds in the quarter including higher input costs, freight and logistics, which are primarily market-driven, and higher commission expense. The headwinds are partially offset by the company's ongoing execution on its productivity programs. Refer to page 56 for further discussion of the company's Non-GAAP financial measures.

. Volume declines, higher selling, general and administrative expense ("SG&A") and the unfavorable impact of currency more than offset the positive impact of price increases and ongoing cost synergies and productivity efforts.~~Refer to page 59 for further discussion of the company's Non-GAAP financial measures.~~

The following is a summary of results from continuing operations for the six months ended June 30, ~~2020:~~2021:

•The company reported net sales of ~~$9,147~~$9,805 million, up 27 percent versus the same period last year, reflecting a 4 percent increase in volume and a 12 percent increase in local price ~~partially offset by~~and a 31 percent ~~decline~~favorable impact from currency.

•COGS totaled $5,430 million in ~~currency.~~

~~COGS totaled~~the six months ended 2021, up from $5,098 million in the six months ended 2020, ~~down from $5,258~~primarily driven by increased volumes and higher input costs, freight and logistics, which are primarily market-driven, partially offset by ongoing cost and productivity actions.

•Restructuring and asset related charges - net were $235 million in the six months ended ~~2019, primarily driven by~~2021, a decrease from $249 million in the ~~$257 million of amortization of inventory step-up included in~~six months ended 2020. The charges for the six months ended June 30, ~~2019, currency benefits~~2021 primarily relate to $119 million of non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and ~~ongoing cost synergies~~Roundup Ready 2 Xtend® herbicide tolerance traits, and ~~productivity efforts.~~$110 million relate to severance and related benefit costs and asset related charges, and contract termination charges associated with 2021 Restructuring Activities.


•	Restructuring and asset related charges - net were $249 million in the six months ended 2020, an increase from $121 million in the six months ended 2019. The six months ended June 30, 2020 included $148 million of non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield^® ~~and Roundup Ready 2 Xtend~~^® ~~herbicide tolerance traits.~~

~~There were no integration and separation costs in the six months ended 2020, as compared to $542 million in the six months ended 2019.~~

The provision for income taxes for the six months ended June 30, ~~2020~~2021 includes anet tax ~~benefit~~benefits of ~~$51~~$25 million ~~to provision for income taxes on continuing operations related to a return to accrual adjustment~~ associated with ~~an elective change~~changes in ~~accounting method~~accruals for ~~the 2019~~certain prior year tax ~~year impact of the 2017 Tax Cuts and Jobs Act 's (“The Act”) foreign tax provisions.~~positions in various jurisdictions.

•Income from continuing operations after income taxes was ~~$1,047~~$1,631 million, as compared to ~~income of $299~~$1,047 million in the same period last year.


•	Operating EBITDA was $2,030 million, up from $1,970 million for the six months ended June 30, 2019. Price and volume gains in seed and ongoing cost synergies and productivity efforts more than offset the unfavorable impacts of currency and geographic and product mix in crop protection. ~~Refer to page 59 for further discussion of the company's Non-GAAP financial measures.~~

~~The company realized cost synergies and productivity savings of approximately $130~~•Operating EBITDA was $2,365 million, ~~for the six months ended June 30, 2020.~~

~~Selected Financial Data~~

In millions, except per share amounts Three Months Ended
June 30, Six Months Ended
June 30,
2020 2019 2020 2019
Net sales $ 5,191
$ 5,556
$ 9,147
$ 8,952

Cost of goods sold $ 2,829
$ 3,047
$ 5,098
$ 5,258
Percent of net sales 54 % 55 % 56 % 59 %

Research and development expense $ 273
$ 269
$ 553
$ 568
Percent of net sales 5 % 5 % 6 % 6 %

Selling, general and administrative expenses $ 965
$ 937
$ 1,722
$ 1,672
Percent of net sales 19 % 17 % 19 % 19 %

Effective tax rate on continuing operations 9.2 % 35.9 % 16.4 % 40.4 %

Income from continuing operations after income taxes $ 766
$ 483
$ 1,047
$ 299

Income from continuing operations available to Corteva common stockholders $ 760
$ 470
$ 1,031
$ 278

Basic earnings per share of common stock from continuing operations $ 1.01
$ 0.63
$ 1.37
$ 0.37
Diluted earnings per share of common stock from continuing operations $ 1.01
$ 0.63
$ 1.37
$ 0.37

~~Results of Operations~~

~~Net Sales~~

Net sales were $5,191 million and $5,556 million for the three months ended June 30, 2020 and 2019, respectively. The decrease was primarily driven by a 4 percent decrease in volume versus the prior-year period. Volume declines were driven by earlier deliveries in North America, which shifted corn volumes into the first quarter 2020, coupled with a normalized start to the season in Latin America in crop protection as compared to the second quarter 2019. Local price increased 1 percent versus the prior-year period, with higher prices in Latin America in response to currency. Currency and portfolio represented declines of 3 percent and 1 percent, respectively.

Three Months Ended
June 30,
2020 2019

Net Sales
($ Millions)
% Net Sales
($ Millions) %
Worldwide $ 5,191
100 % $ 5,556
100 %
North America¹
3,566
69 % 3,785
68 %
EMEA²
643
12 % 667
12 %
Latin America 515
10 % 653
12 %
Asia Pacific 467
9 % 451
8 %

Q2 2020 vs. Q2 2019 Percent Change Due To:
Net Sales Change Local Price & Portfolio /
$ In millions $ % Product Mix Volume Currency Other
North America¹
$ (219 ) (6 )% — % (5 )% (1 )% — %
EMEA²
(24 ) (4 )% 3 % — % (7 )% — %
Latin America (138 ) (21 )% 4 % (11 )% (14 )% — %
Asia Pacific 16
4 % 2 % 8 % (5 )% (1 )%
Total $ (365 ) (7 )% 1 % (4 )% (3 )% (1 )%


1.	~~Represents U.S. & Canada.~~


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

~~Net sales were $9,147 million and $8,952~~up from $2,030 million for the six months ended June 30, 2020, primarily driven by strong price execution, volume gains, and ~~2019,~~favorable mix, which more than offset cost headwinds. The company experienced cost headwinds in the quarter, including higher input costs, freight and logistics, which are primarily market-driven, and higher commission expense. The headwinds are partially offset by the company’s ongoing execution on its productivity programs. Refer to page 56 for further discussion of the company's Non-GAAP financial measures.

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In addition to the financial highlights above, the following events occurred during or subsequent to the six months ended June 30, 2021:

•The company returned approximately $750 million to shareholders during the six months ended June 30, 2021 under its previously announced share repurchase program and through common stock dividends.

•On August 5, 2021, Corteva, Inc. announced that its Board of Directors authorized a $1.5 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The timing, price and volume of purchases will be based on market conditions, relevant securities laws and other factors.

•On July 21, 2021, the company's Board of Directors approved an increase in the common stock dividend of $0.13 per share to $0.14 per share.

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Selected Financial Data


In millions, except per share amounts	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
Net sales	$	5,627		$	5,191		$	9,805		$	9,147

Cost of goods sold	$	3,010		$	2,829		$	5,430		$	5,098
Percent of net sales	53		%	54		%	55		%	56		%

Research and development expense	$	293		$	273		$	574		$	553
Percent of net sales	5		%	5		%	6		%	6		%

Selling, general and administrative expenses	$	998		$	965		$	1,731		$	1,722
Percent of net sales	18		%	19		%	18		%	19		%

Effective tax rate on continuing operations	21.8		%	9.2		%	22.1		%	16.4		%

Income from continuing operations after income taxes	$	1,018		$	766		$	1,631		$	1,047

Income from continuing operations available to Corteva common stockholders	$	1,015		$	760		$	1,625		$	1,031

Basic earnings per share of common stock from continuing operations	$	1.37		$	1.01		$	2.19		$	1.37
Diluted earnings per share of common stock from continuing operations	$	1.37		$	1.01		$	2.18		$	1.37

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Results of Operations

Net Sales

Net sales were $5,627 million and $5,191 million for the three months ended June 30, 2021 and 2020, respectively. The increase was primarily driven by a 5 percent increase in volume versus the prior year period. Volume increases were driven by seasonal timing and increased soybean acres in North America, together with continued adoption of new technology in both segments. Currency and local price represented increases of 2 percent and 1 percent, respectively.


	Three Months Ended June 30,
	2021				2020
	Net Sales ($ Millions)		%		Net Sales ($ Millions)		%
Worldwide	$	5,627	100	%	$	5,191	100	%
North America1	3,842		68	%	3,566		69	%
EMEA2	710		13	%	643		12	%
Latin America	588		10	%	515		10	%
Asia Pacific	487		9	%	467		9	%


	Q2 2021 vs. Q2 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
North America1	$	276	8	%	—	%	6	%	2	%	—	%
EMEA2	67		10	%	5	%	(1)	%	6	%	—	%
Latin America	73		14	%	6	%	5	%	3	%	—	%
Asia Pacific	20		4	%	2	%	(2)	%	5	%	(1)	%
Total	$	436	8	%	1	%	5	%	2	%	—	%

1.Represents U.S. & Canada.

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

Net sales were $9,805 million and $9,147 million for the six months ended June 30, 2021 and 2020, respectively. The increase was primarily driven by a 4 percent increase in volume versus the prior-year period. Gains were driven by the ~~recovery~~continued penetration of ~~planted area in North America, record corn sales in EMEA~~new products and ~~growth in Asia Pacific.~~strong execution globally. Local price ~~increased~~and currency represented increases of 2 percent and 1 percent, ~~versus the prior-year period, reflecting higher prices in Latin America partially offsetting the impact~~respectively.


	Six Months Ended June 30,
	2021				2020
	Net Sales ($ Millions)		%		Net Sales ($ Millions)		%
Worldwide	$	9,805	100	%	$	9,147	100	%
North America1	5,585		57	%	5,331		58	%
EMEA2	2,312		24	%	2,110		23	%
Latin America	1,106		11	%	949		11	%
Asia Pacific	802		8	%	757		8	%

Table of ~~currency,~~Contents


	First Half 2021 vs. First Half 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
North America1	$	254	5	%	—	%	4	%	1	%	—	%
EMEA2	202		10	%	4	%	1	%	5	%	—	%
Latin America	157		17	%	9	%	14	%	(6)	%	—	%
Asia Pacific	45		6	%	2	%	1	%	5	%	(2)	%
Total	$	658	7	%	2	%	4	%	1	%	—	%

1.Represents U.S. & Canada.

2.Europe, Middle East, and ~~new product pricing gains in EMEA and Asia Pacific. Currency declines of 3 percent were primarily driven by the Brazilian Real and Euro.~~Africa ("EMEA").

Six Months Ended
June 30,
2020 2019

Net Sales
($ Millions)
% Net Sales
($ Millions) %
Worldwide $ 9,147
100 % $ 8,952
100 %
North America¹
5,331
58 % 5,177
58 %
EMEA²
2,110
23 % 2,031
23 %
Latin America 949
11 % 1,018
11 %
Asia Pacific 757
8 % 726
8 %

First Half 2020 vs. First Half 2019 Percent Change Due To:
Net Sales Change Local Price & Portfolio /
$ In millions $ % Product Mix Volume Currency Other
North America¹
$ 154
3 % — % 3 % — % — %
EMEA²
79
4 % 2 % 6 % (4 )% — %
Latin America (69 ) (7 )% 7 % — % (14 )% — %
Asia Pacific 31
4 % 2 % 8 % (5 )% (1 )%
Total $ 195
2 % 1 % 4 % (3 )% — %


1.	~~Represents U.S. & Canada.~~


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

Cost of Goods Sold

COGS was $3,010 million (53 percent of net sales) and $2,829 million ~~and $3,047 million~~(54 percent of net sales) for the three months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The ~~decrease~~increase was primarily driven by ~~currency benefits, lower~~higher input costs, freight and logistics, which are primarily market-driven, an increase in volumes in both crop protection and seed ~~the lack of amortization of inventory step-up for the three months ended June 30, 2020, as compared to $52 million recognized for the three months ended June 31, 2019~~ and unfavorable currency, offset by ongoing cost ~~synergies~~ and productivity ~~efforts.~~actions. The ~~decrease was partially offset by higher royalties in seed.~~market driven trends are expected to continue as global supply chains and logistics remain constrained across industries.

COGS ~~as a percentage of net sales~~ was ~~54 percent and 55 percent for the three months ended June 30, 2020 and 2019, respectively. The amortization of inventory step-up was 1~~$5,430 million (55 percent of net ~~sales for the three months ended June 30, 2019.~~

~~COGS was~~sales) and $5,098 million ~~and $5,258 million~~(56 percent of net sales) for the six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The ~~decrease~~increase was primarily driven by ~~the lack of amortization of inventory step-up for the six months ended June 30, 2020, as compared to $257 million recognized for the six months ended June 30, 2019, currency benefits,~~higher input costs, freight and ~~ongoing cost synergies~~logistics, which are primarily market-driven, an increase in volumes in both crop protection and ~~productivity efforts.~~seed and unfavorable currency. The ~~decrease was~~increases in costs are partially offset by ~~increased volumes, higher royalties in seed,~~ongoing cost and ~~higher input costs due~~productivity actions. The market-driven trends are expected to ~~lower production yields in seed.~~continue as global supply chains and logistics remain constrained across industries.

COGS as a percentage of net sales was 56 percent and 59 percent for the six months ended June 30, 2020 and 2019, respectively. The amortization of inventory step-up was 3 percent of net sales for the six months ended June 30, 2019.

Research and Development Expense

R&D expense was ~~$273~~$293 million (5 percent of net sales) and ~~$269~~$273 million (5 percent of net sales) for the three months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The increase was primarily driven by ~~a shift of spend from first quarter 2020 to second quarter 2020~~increases in variable compensation and ~~increased investments to support new products in crop protection, partially offset by currency benefits and ongoing cost synergies and productivity efforts.~~unfavorable currency.

R&D expense was ~~$553~~$574 million (6 percent of net sales) and ~~$568~~$553 million (6 percent of net sales) for the six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The ~~decrease~~increase was primarily driven ~~primarily~~ by increases in variable compensation, unfavorable currency ~~benefits~~ and ~~ongoing cost synergies and productivity efforts, partially offset by investments to support new products~~increases in ~~crop protection.~~laboratory costs.

Selling, General and Administrative Expenses

SG&A expenses were ~~$965~~$998 million ~~(19~~(18 percent of net sales) and $937 million (17 percent of net sales) for the three months ended June 30, 2020 and 2019, respectively. The increase was primarily driven by increases in selling costs and higher ERP costs and product launch costs, partially offset by currency benefits and ongoing cost synergies and productivity efforts.

~~SG&A expenses were $1,722 million (19 percent of net sales) and $1,672~~$965 million (19 percent of net sales) for the three months ended June 30, 2021 and 2020, respectively. The increase was primarily driven by increases in commission expense and ~~2019,~~unfavorable currency, partially offset by lower bad debt expense and ongoing cost and productivity actions taken to curtail spending.

SG&A expenses were $1,731 million (18 percent of net sales) and $1,722 million (19 percent of net sales) for the six months ended June 30, 2021 and 2020, respectively. The increase was primarily driven by higher ~~commissions~~commission expense, unfavorable currency, and selling expenses ~~due~~ to ~~higher volumes, higher ERP costs and product launch costs, and an increase in~~drive sales, partially offset by lower bad debt expense, ~~partially offset by currency benefits, ongoing cost synergies~~functional spend, and ~~productivity efforts, and the settlement of a legal matter~~travel expense due to COVID-19 related restrictions put into place late in the ~~prior year.~~first quarter of 2020.

Amortization of Intangibles

Intangible asset amortization was ~~$176~~$180 million and ~~$113~~$176 million for the three months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$339~~$363 million and ~~$214~~$339 million for the six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The increase was primarily driven byamortization of ~~germplasm assets, which~~the trade name asset that was changed from an indefinite lived intangible asset to definite lived ~~with a useful life of 25 years~~ in the fourth quarter of ~~2019.~~2020. See Note 1211 - Other Intangible Assets, to the interim Consolidated Financial Statements for additional information.

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Restructuring and Asset Related Charges - Net

Restructuring and asset related charges - net were ~~$179~~$135 million and ~~$60~~$179 million for the three months ended June 30, 2021 and 2020, respectively. The charges in the second quarter of 2021 primarily relate to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and ~~2019, respectively.~~Roundup Ready 2 Xtend® herbicide tolerance traits under the Execute to Win Productivity Program and severance and related benefit costs, asset related charges, and contract termination charges associated with 2021 Restructuring Actions. The charges in the second quarter of 2020 related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 ~~Yield~~^®Yield® and Roundup Ready 2 ~~Xtend~~^®Xtend® herbicide tolerance traits and severance and related benefit costs and asset related charges under the Execute to Win Productivity Program.

~~The charges in the second quarter of 2019 related to contract termination charges and asset related charges under the DowDuPont Cost Synergy Program (the "Synergy Program").~~

Restructuring and asset related charges - net were ~~$249~~$235 million and ~~$121~~$249 million for the six months ended June 30, 2021 and 2020, respectively. The charges in the first half of 2021 primarily related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and ~~2019, respectively.~~Roundup Ready 2 Xtend® herbicide tolerance traits under the Execute to Win Productivity Program and severance and related benefit costs, asset related charges, and contract termination charges associated with 2021 Restructuring Actions. The charges in the first half of 2020 primarily related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 ~~Yield~~^®Yield® and Roundup Ready 2 ~~Xtend~~^®Xtend® herbicide tolerance traits and asset related charges and severance and related benefit costs under the Execute to Win Productivity Program. ~~The charges in the first half of 2019 primarily related to contract termination charges, asset related charges, and severance and related benefit costs under the Synergy Program.~~

See Note 5 - Restructuring and Asset Related Charges, Net, to the interim Consolidated Financial Statements for additional information.

~~Integration and Separation Costs~~

Integration and separation costs were $330 million for the three months ended June 30, 2019, and $542 million for the six months ended June 30, 2019. These costs primarily consisted of financial advisory, information technology, legal, accounting, consulting, and other professional advisory fees associated with the preparation and execution of activities related to the Distributions and the integration of EID’s Pioneer and Crop Protection businesses with DAS.

Other Income - Net

Other income - net was ~~$89~~$298 million and $0$89 million for the three months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The ~~change~~increase was primarily due to an increase in non-operating pension and other ~~employment~~post-employment benefit ~~credits and~~credit, driven by the December 2020 OPEB plan amendments as discussed in the 2020 Annual Report. The increase was partially offset by a net exchange loss during the three months ended June 30, 2021 compared to a net exchange gain during the three months ended June 30, ~~2020 compared to a net exchange loss during the three months ended June 30, 2019.~~

2020.

Other income - net was ~~$90~~$635 million and ~~$31~~$90 million for the six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The ~~change~~increase was primarily due to an increase in non-operating pension and other ~~employment~~post-employment benefit ~~credits, partially offset~~credit, driven by ~~higher losses on asset sales, including a $53 million loss related to~~ the ~~expected sale of~~December 2020 OPEB plan amendments as discussed in the ~~La Porte site in~~2020 Annual Report. In addition, Other income - net for the six months ended June 30, 2020 ~~as compared to~~includes a ~~$24~~$(53) million loss ~~related to DAS’s~~on the sale of ~~a joint venture related to synergy actions in~~ the ~~six months ended June 30, 2019.~~

La Porte site.

The company routinely uses forward exchange contracts to offset its net exposures, by currency denominated monetary assets and liabilities of its operations. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes. The net pre-tax exchange gains and losses are recorded in other income - net and the related tax impact is recorded in provision for (benefit from) income taxes on continuing operations in the interim Consolidated Statement of Operations.

See Note 76 - Supplementary Information, to the interim Consolidated Financial Statements for additional information.

Interest Expense

Interest expense was ~~$14~~$7 million and ~~$34~~$14 million for the three months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively, and ~~$24~~$14 million and ~~$93~~$24 million for the six months ended June 30, ~~2020~~2021 and ~~2019,~~2020, respectively. The change was primarily driven by lower average ~~debt~~commercial paper balances as a result of the redemption/repayment transactions in the second quarter of 2019 related to paying off or retiring portions of EID’s existing debt liabilities (refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information) and lower interest rates, partially offset by higher average ~~interest rates.~~long-term borrowings.

Provision for Income Taxes on Continuing Operations

The company’s provision for income taxes on continuing operations was $284 million for the three months ended June 30, 2021 on pre-tax income from continuing operations of $1,302 million, resulting in an effective tax rate of 21.8 percent. The effective tax rate was unfavorably impacted by geographic mix of earnings. Those unfavorable impacts were partially offset by $18 million of net tax benefits associated with changes in accruals for certain prior year tax positions in various jurisdictions, as well as tax benefits related to the issuance of stock-based compensation.

The company’s provision for income taxes on continuing operations was $78 million for the three months ended June 30, 2020 on pre-tax income from continuing operations of $844 million, resulting in an effective tax rate of 9.2 percent. The effective tax rate was favorably impacted by geographic mix of earnings, $20 million of net tax benefits associated with changes in accruals for certain prior year tax positions in various jurisdictions, which includes a tax benefit of $14 million related to a return to accrual adjustment to reflect a change in estimate on the impact of a tax law enactment in a foreign jurisdiction. In addition, during the three months ended June 30, 2020, the company recognized a tax benefit of $51 million to provision for income

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taxes on continuing operations related to a return to accrual adjustment associated with an elective change in accounting method for the 2019 tax year impact of the 2017 Tax Cuts and Jobs Act's (“The Act”) foreign tax provisions.

The company’s ~~benefit from~~provision for income taxes on continuing operations was ~~$270~~$462 million for the ~~three~~six months ended June 30, ~~2019~~2021 on a pre-tax ~~loss~~income from continuing operations of ~~$753~~$2,093 million, resulting in an effective tax rate of ~~35.9~~22.1 percent. ~~During the three months ended June 30, 2019, the company recorded net tax charges of $114 million related to the U.S. state blended~~The effective tax rate ~~changes associated with~~was unfavorably impacted by the ~~Business Separations and a~~ tax ~~charge~~impact of $96 million related to application of The Act's foreign tax provisions, as well as other net unfavorable impacts related to integration and separation costs. Those unfavorable impacts were partially offset by a $21 million benefit associated with changes in accruals for certain prior year tax positions and reductions in the company’s unrecognized tax benefits due to the closure of various tax statutes of limitations, certain net exchange ~~gains~~losses recognized on the re-measurement of the net monetary asset positions which were not ~~taxable~~tax-deductible in their local jurisdictions, as well as geographic mix of earnings. Those unfavorable impacts were partially offset by $25 million of net tax benefits associated with changes in accruals for certain prior year tax positions in various jurisdictions, as well as tax benefits related to the issuance of stock-based compensation.

The company’s provision for income taxes on continuing operations was $205 million for the six months ended June 30, 2020 on pre-tax income from continuing operations of $1,252 million, resulting in an effective tax rate of 16.4%. The effective tax rate was favorably impacted by geographic mix of earnings, $18 million of net tax benefits associated with changes in accruals for certain prior year tax positions in various jurisdictions, which includes a tax benefit of $14 million related to a return to accrual adjustment to reflect a change in estimate on the impact of a tax law enactment in a foreign jurisdiction. In addition, during the six months ended June 30, 2020, the company recognized a tax benefit of $51 million to provision for income taxes on continuing operations related to a return to accrual adjustment associated with an elective change in accounting method for the 2019 tax year impact of the The Act's foreign tax provisions. The effective tax rate was unfavorably impacted by the tax impact of certain net exchange losses recognized on the re-measurement of the net monetary asset positions which were not tax-deductible in their local jurisdictions, as well as tax charges related to the issuance of stock-based compensation.

The company’s benefit from income taxes on continuing operations was $203 million for the six months ended June 30, 2019 on a pre-tax income from continuing operations of $502 million, resulting in an effective tax rate of 40.4 percent. During the six months ended June 30, 2019, the company recorded net tax charges of $146 million related to the U.S. state blended tax rate changes associated with the Business Separations and a tax charge of $96 million related to application of The Act’s foreign tax provisions, as well as other net unfavorable impacts related to integration and separation costs. Additionally, the effective tax rate was unfavorably impacted by non-tax-deductible amortization of the fair value step-up in inventories as a result of the Merger. These unfavorable impacts were partially offset by a first quarter tax benefit of $102 million related to an internal legal entity restructuring associated with the Business Separations, certain net exchange gains recognized on the re-measurement of the net monetary asset positions which were not taxable in their local jurisdictions, as well as geographic mix of earnings.

(Loss) Income from Discontinued Operations After Tax

(Loss) income from discontinued operations after tax was ~~$(1,077)~~$(45) million and $(55) million for the three ~~months ended June 30, 2019,~~ and ~~$1 million and $(717) million for the~~ six months ended June 30, ~~2020~~2021, respectively, and ~~2019, respectively.~~$0 million and $1 million for the three and six months ended June 30, 2020. The three and six months ended June 30, ~~2019~~2021 primarily reflects charges relating to PFAS environmental remediation activities for legacy operations at the ~~operations of EID ECP~~Fayetteville Works facility and the ~~EID Specialty Product Entities.~~settlement with the State of Delaware for PFAS related natural resource damage claims. Refer to Note 3 - Divestitures and Other Transactions, to the interim Consolidated Financial Statements for additional information.

EID Analysis of Operations

As discussed in Note 1 - Basis of Presentation, to the EID interim Consolidated Financial Statements, EID is a subsidiary of Corteva, Inc. and continues to be a reporting company, subject to the requirements of the Exchange Act. The below relates to EID only and is presented to provide an Analysis of Operations, only for the differences between EID and Corteva, Inc.

Interest Expense

EID’s interest expense was ~~$45~~$20 million and ~~$64~~$45 million for the three months ended June 30, ~~2020 and 2019,~~2021, respectively, and ~~$87~~$42 million and ~~$123~~$87 million for the six months ended June 30, 2021 and 2020, ~~and 2019,~~ respectively. ~~These expenses were~~The change was primarily driven by the items noted on page ~~51,~~49, under the header ~~“Interest Expense”, partially offset~~"Interest Expense," and by ~~interest expense incurred~~lower average borrowings on the related party loan between EID and Corteva, Inc. See Note 2 - Related Party Transactions, to the EID interim Consolidated Financial Statements for further information.

Provision for Income Taxes on Continuing Operations

EID’s provision for income taxes on continuing operations was $281 million for the three months ended June 30, 2021 on pre-tax income from continuing operations of $1,289 million, resulting in an effective tax rate of 21.8 percent. EID’s provision for income taxes on continuing operations was $71 million for the three months ended June 30, 2020 on pre-tax income from continuing operations of $813 million, resulting in an effective tax rate of 8.7 percent.

EID’s provision for income taxes on continuing operations was ~~$263~~$455 million for the ~~three~~six months ended June 30, ~~2019~~2021 on pre-tax income from continuing operations of ~~$723~~$2,065 million, resulting in an effective tax rate of ~~36.4~~22.0 percent.

EID’s provision for income taxes on continuing operations was $190 million for the six months ended June 30, 2020 on pre-tax income from continuing operations of $1,189 million, resulting in an effective tax rate of 16.0 percent.

EID’s ~~provision for income taxes on continuing operations was $196 million for the six months ended June 30, 2019 on pre-tax income from continuing operations of $472 million, resulting in an~~ effective tax ~~rate of 41.5 percent.~~

~~EID’s changes in the effective tax rate~~rates for the three and six months ended June 30, 2021 and 2020 ~~as compared to 2019~~ were driven by the items noted on page ~~52,~~49, under the header “Provision for Income Taxes on Continuing Operations” and a tax benefit related to the interest expense incurred on the related party loan between EID and Corteva, Inc. See Note 2 - Related Party Transactions, to the EID interim Consolidated Financial Statements for further information.

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Corporate Outlook

The company ~~continues to monitor near-term operating conditions to ensure business continuity in light of continued market volatility. The company~~is increasing its net sales outlook for 2021 and expects an approximate ~~1 to 2~~7 – 8 percent increase in net ~~sales~~sales. Additionally, the company is increasing earnings expectations for ~~the full year 2020 as compared to 2019, driven by expected price~~2021 and ~~volume gains mostly offset by unfavorable currency impacts.~~

~~The company~~ expects ~~full year 2020 Operating EBITDA in the range of down (4) percent to~~ an increase ~~of 1 percent versus 2019~~in Operating EBITDA and Operating Earnings Per Share ~~in the range~~ of ~~down (13)~~20 – 25 percent ~~to an increase of 1~~and 33 – 40 percent, ~~versus 2019, driven by the above noted unfavorable currency impacts, partially offset by higher volumes and ongoing cost synergies and productivity.~~respectively.

The above outlook does not contemplate any operational disruptions, significant changes in customers' demand or ability to pay, or further acceleration of currency impacts resulting from the COVID-19 pandemic. Corteva is not able to reconcile its forward-looking non-GAAP financial measures to its most comparable U.S. GAAP financial measures, as it is unable to predict with reasonable certainty items outside of the company’s control, such as Significant Items, without unreasonable effort (refer to page 6057 for Significant Items recorded ~~for~~in the three and six months ended June 30, ~~2020~~2021 and ~~2019)~~2020). ~~Beginning January 1, 2020,~~During 2021, the company ~~recognizes~~expects to record $130 million to $170 million for the 2021 Restructuring Actions and approximately $130 million for non-cash accelerated prepaid royalty amortization expense as a restructuring and asset related ~~charge. For further discussion of accelerated prepaid royalty amortization refer to~~charges. See Note 5 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial ~~Statements.~~

~~Supplemental Unaudited Pro Forma Financial Information~~

~~The following supplemental unaudited pro forma statements of operations (the "unaudited pro forma statements of operations")~~Statements for ~~Corteva give effect to the Merger, the debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (refer to~~additional information on the company’s ~~Annual Report on Form 10-K for the year ended December 31, 2019 for further information),~~2021 Restructuring Actions and the separation and distribution to DowDuPont stockholders of all the outstanding shares of Corteva common stock as if they had been consummated on January 1, 2016. Beginning in the second quarter 2019, results represent the consolidated balances of the company, and prior to the second quarter 2019, results consist of the combined results of operations for Historical EID and DAS. The unaudited pro forma statements of operations below were prepared in accordance with Article 11 of Regulation S-X, and events that are not expected to have a continuing impact on the combined results (e.g., inventory step-up costs) are excluded. One-time transaction-related costs incurred prior to, or concurrent with, the closing of the Merger, the debt redemptions/repayments, and the Corteva Distribution are not included in the unaudited pro forma combined statements of operations through March 31, 2019. The unaudited pro forma combined statements of operations have not been adjusted for restructuring or integration activities or other costs following the separation and distribution transactions that may be incurred to achieve cost or growth synergies of Corteva. As no assurance can be made that these costs will be incurred or the growth synergies will be achieved, no adjustment has been made.accelerated prepaid royalty amortization.

The unaudited pro forma statements of operations have been presented for informational purposes only and are not necessarily indicative of what Corteva’s results of operations actually would have been had the above transactions been completed on January 1, 2016. In addition, the unaudited pro forma statements of operations do not purport to project the future operating results of the company. The unaudited pro forma statements of operations were based on and should be read in conjunction with the audited Consolidated Financial Statements and Notes contained within the company's Annual Report on Form 10-K for the year ended December 31, 2019.

Unaudited Pro Forma Statement of Operations Six Months Ended June 30, 2019
(In millions, except per share amounts) Corteva
Merger ¹
Debt Retirement ²
Separations Related ³
Pro Forma
Net sales $ 8,952
$ —
$ —
$ —
$ 8,952
Cost of goods sold 5,258
(205 ) —
16
5,069
Research and development expense 568
—
—
—
568
Selling, general and administrative expenses 1,672
—
—
3
1,675
Amortization of intangibles 214
—
—
—
214
Restructuring and asset related charges - net 121
—
—
—
121
Integration and separation costs 542
—
—
(112 ) 430
Other income - net 31
—
—
—
31
Loss on early extinguishment of debt 13
—

—
13
Interest expense 93
—
(45 ) —
48
Income from continuing operations before income taxes 502
205
45
93
845
Provision for income taxes on continuing operations 203
36
10
1
250
Income from continuing operations after income taxes 299
169
35
92
595
Net income from continuing operations attributable to noncontrolling interests 21
—
—
—
21
Net income from continuing operations attributable to Corteva $ 278
$ 169
$ 35
$ 92
$ 574

Per share common data
Earnings per share of common stock from continuing operations - basic $ 0.77
Earnings per share of common stock from continuing operations - diluted $ 0.77

Weighted-average common shares outstanding - basic 749.4
Weighted-average common shares outstanding - diluted 749.7


1.	Represents the removal of amortization of EID’s agriculture business’ inventory step-up recognized in connection with the Merger, as the incremental amortization is directly attributable to the Merger and will not have a continuing impact.


2.	~~Represents removal of interest expense related to the debt redemptions/repayments.~~

~~Adjustments directly attributable to the separations and distributions of Corteva, Inc. includes the following: removal of Telone~~^®~~; impact from the distribution agreement entered into between Corteva and Dow that allows for Corteva to become the exclusive distributor of Telone~~^® products for Dow; elimination of one-time transaction costs directly attributable to the Corteva Distribution; the impact of certain manufacturing, leasing and supply agreements entered into in connection with the Corteva Distribution; and the related tax impacts of these items.

Recent Accounting Pronouncements

See Note 2 - Recent Accounting Guidance, to the interim Consolidated Financial Statements for a description of recent accounting pronouncements.

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Segment Reviews

The company operates in two reportable segments: Seed and Crop Protection.

Seed

The company’s seed segment is a global leader in developing and supplying advanced germplasm and traits that produce optimum yield for farms around the world. The segment is a leader in many of the company’s key seed markets, including North America corn and soybeans, Europe corn and sunflower, as well as Brazil, India, South Africa and Argentina corn. The segment offers trait technologies that improve resistance to weather, disease, insects and herbicides used to control weeds, and trait technologies that enhance food and nutritional ~~characteristics, and also~~characteristics. In addition, the segment provides digital solutions that assist farmer decision-making with a view to optimize product selection and, ultimately, help maximize yield and profitability. ~~The segment competes in a wide variety of agricultural markets.~~

Crop Protection

The crop protection segment serves the global agricultural input industry with products that protect against weeds, insects and other pests, and disease, and that improve overall crop health both above and below ground via nitrogen management and seed-applied technologies. The segment offers crop protection solutions that provide farmers the tools they need to improve productivity and profitability, and help keep fields free of weeds, insects and diseases. The segment is a leader in global herbicides, insecticides, ~~below-ground~~ nitrogen stabilizers and pasture and range management herbicides.

Summarized below are comments on individual segment net sales and segment operating EBITDA for the three and six months ended June 30, ~~2020~~2021 compared with the same period in 2019. For purposes of the six months ended June 30, 2019, segment operating EBITDA is calculated on a pro forma basis, as this is the manner in which the CODM assesses performance and allocates resources. Pro forma adjustments used in the calculation of pro forma segment operating EBITDA were determined in accordance with Article 11 of Regulation S-X. These adjustments give effect to the Merger, the debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information), and the separation and distribution to DowDuPont stockholders of all the outstanding shares of Corteva common stock as if they had been consummated on January 1, 2016 (refer to supplemental unaudited pro forma financial statements on page 54).2020. The company defines segment operating EBITDA as earnings (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating ~~(benefits) costs - net and~~costs-net, foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. Non-operating ~~(benefits) costs - net~~costs-net consists of non-operating pension and other post-employment benefit (OPEB) credits, tax indemnification adjustments and environmental remediation and legal costs associated with legacy EID businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense. Beginning January 1, 2021, the company excludes net unrealized gains or losses from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. See Note 1918 - Segment Information, to the interim Consolidated Financial Statements for details related to significant pre-tax benefits (charges) excluded from segment operating EBITDA. All references to prices are based on local price unless otherwise specified.

A reconciliation of ~~pro forma~~ segment operating EBITDA to income from continuing operations ~~before~~after income taxes for the three and six months ended June 30, ~~2020~~2021 and ~~2019~~2020 is included in Note 1918 - Segment Information, to the interim Consolidated Financial Statements.


Seed	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2021		2020		2021		2020
Net sales	$	3,780	$	3,538	$	6,272	$	5,993
Segment operating EBITDA	$	1,123	$	956	$	1,740	$	1,537


Seed	Q2 2021 vs. Q2 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
North America	$	201	7	%	—	%	6	%	1	%	—	%
EMEA	34		13	%	10	%	(1)	%	4	%	—	%
Latin America	28		14	%	10	%	—	%	4	%	—	%
Asia Pacific	(21)		(13)	%	—	%	(16)	%	3	%	—	%
Total	$	242	7	%	1	%	4	%	2	%	—	%

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Seed Three Months Ended
June 30, Six Months Ended
June 30,
In millions 2020 2019 2020 2019
Net sales $ 3,538
$ 3,699
$ 5,993
$ 5,666
Segment operating EBITDA¹
$ 956
$ 1,036
$ 1,537
$ 1,361


1.	~~The six months ended June 30, 2019 is presented on a Pro Forma Basis, prepared in accordance with Article 11 of Regulation S-X~~.


Seed	Q2 2021 vs. Q2 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
Corn	$	123	6	%	3	%	2	%	1	%	—	%
Soybeans	75		7	%	(2)	%	8	%	1	%	—	%
Other oilseeds	52		24	%	4	%	11	%	9	%	—	%
Other	(8)		(5)	%	(5)	%	(2)	%	2	%	—	%
Total	$	242	7	%	1	%	4	%	2	%	—	%

Seed Q2 2020 vs. Q2 2019 Percent Change Due To:
Net Sales Change Local Price & Portfolio /
$ In millions $ % Product Mix Volume Currency Other
North America $ (196 ) (6 )% — % (6 )% — % — %
EMEA (10 ) (4 )% 5 % — % (9 )% — %
Latin America 19
10 % 2 % 25 % (17 )% — %
Asia Pacific 26
19 % 9 % 18 % (8 )% — %
Total $ (161 ) (4 )% 1 % (3 )% (2 )% — %


Seed	First Half 2021 vs. First Half 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
North America	$	121	3	%	(1)	%	3	%	1	%	—	%
EMEA	100		9	%	5	%	1	%	3	%	—	%
Latin America	86		20	%	9	%	20	%	(9)	%	—	%
Asia Pacific	(28)		(12)	%	2	%	(15)	%	1	%	—	%
Total	$	279	5	%	1	%	3	%	1	%	—	%


Seed	First Half 2021 vs. First Half 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
Corn	$	147	4	%	3	%	1	%	—	%	—	%
Soybeans	71		6	%	(2)	%	7	%	1	%	—	%
Other oilseeds	100		21	%	4	%	14	%	3	%	—	%
Other	(39)		(12)	%	(5)	%	(7)	%	—	%	—	%
Total	$	279	5	%	1	%	3	%	1	%	—	%

Seed First Half 2020 vs. First Half 2019 Percent Change Due To:
Net Sales Change Local Price & Portfolio /
$ In millions $ % Product Mix Volume Currency Other
North America $ 181
5 % 1 % 4 % — % — %
EMEA 67
6 % 4 % 7 % (5 )% — %
Latin America 57
16 % 9 % 20 % (13 )% — %
Asia Pacific 22
10 % 8 % 9 % (7 )% — %
Total $ 327
6 % 2 % 6 % (2 )% — %

Seed

Seed net sales were $3,780 million in the second quarter of 2021, up 7 percent from $3,538 million in the second quarter of ~~2020, down from $3,699 million in the second quarter of 2019.~~2020. The ~~decrease~~increase was due to a 34 percent ~~decline~~increase in volume, ~~and~~ a 2 percent ~~decline in~~favorable impact from currency ~~partially offset by~~and a 1 percent increase in local price.

~~Lower~~Higher volumes were driven by ~~earlier deliveries~~more normalized delivery timing in North America compared to the prior-year period, coupled with increased soybean acreage in North America. In addition, the company delivered $80 million in sales in the second quarter primarily due to ~~improved weather conditions and the recovery of planted area, which shifted~~robust early demand for corn ~~volumes into the first quarter 2020. The impact of this shift was partially offset by earlier summer corn deliveries~~ in Latin ~~America and market share gains~~America. This increase was also driven by canola growth in ~~corn in Asia Pacific. Unfavorable~~Canada, which represents early settlement of the season compared to the year-ago period. Favorable currency impacts were primarily driven by the ~~Brazilian Real.~~Canadian Dollar. The increase in local price was led by ~~increases across EMEA~~strong execution in Latin America and ~~Asia Pacific, with price gains in U.S. soybean amidst competitive pressures.~~EMEA.

Segment operating EBITDA was $1,123 million in the second quarter of 2021, up 17 percent from $956 million in the second quarter of ~~2020 compared to $1,036 million in the second quarter of 2019.~~2020. Volume ~~declines, higher~~gains, lower royalties, reduced bad debt expense, ongoing cost and ~~higher selling costs~~productivity actions, and continued price execution more than offset ~~favorable mix~~higher input costs from unfavorable yields on European corn and ~~ongoing cost synergies and productivity efforts, including reductions in R&D during~~sunflower. Segment operating EBITDA margin improved by more than 260 basis points versus the prior-year period.

Seed net sales were $6,272 million for the first six months of 2021, up 5 percent from $5,993 million for the first six months of ~~2020,~~2020. The increase was due to a 3 percent increase in volume, a 1 percent increase in local price and a 1 percent favorable impact from currency.

The increase in volume was driven by higher soybean sales in North America, market share gains in the Brazil Safrinha, earlier shipments in the Brazil summer season, and canola growth in Canada. Local price gains were driven by strong adoption of new seed technology, including price execution in Latin America and EMEA, with corn price up 3 percent globally. These gains were partially offset by competitive pricing pressure in North America soybeans, where price was down 2 percent. Favorable

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currency impacts primarily from ~~$5,666~~the Canadian Dollar and the Euro more than offset unfavorable impacts from the Brazilian Real.

Segment operating EBITDA was $1,740 million infor the first six months of ~~2019.~~2021, up 13 percent from $1,537 million for the first six months of 2020. Continued price execution, lower royalties, lower bad debt expense, volume gains, and ongoing cost and productivity actions more than offset higher input costs from unfavorable yields on European corn and sunflower and higher freight costs. Segment operating EBITDA margin improved by more than 200 basis points versus the prior-year period.


Crop Protection	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2021		2020		2021		2020
Net sales	$	1,847	$	1,653	$	3,533	$	3,154
Segment Operating EBITDA	$	370	$	309	$	691	$	547


Crop Protection	Q2 2021 vs. Q2 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
North America	$	75	11	%	2	%	8	%	1	%	—	%
EMEA	33		9	%	2	%	(2)	%	9	%	—	%
Latin America	45		15	%	3	%	8	%	4	%	—	%
Asia Pacific	41		14	%	3	%	6	%	7	%	(2)	%
Total	$	194	12	%	3	%	5	%	4	%	—	%

Crop Protection	Q2 2021 vs. Q2 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
Herbicides	$	60	7	%	2	%	1	%	4	%	—	%
Insecticides	15		3	%	2	%	(3)	%	4	%	—	%
Fungicides	87		39	%	4	%	28	%	9	%	(2)	%
Other	32		43	%	6	%	34	%	3	%	—	%
Total	$	194	12	%	3	%	5	%	4	%	—	%


Crop Protection	First Half 2021 vs. First Half 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
North America	$	133	12	%	3	%	7	%	2	%	—	%
EMEA	102		11	%	2	%	2	%	7	%	—	%
Latin America	71		13	%	9	%	9	%	(5)	%	—	%
Asia Pacific	73		14	%	3	%	8	%	6	%	(3)	%
Total	$	379	12	%	4	%	6	%	3	%	(1)	%

Crop Protection	First Half 2021 vs. First Half 2020				Percent Change Due To:
	Net Sales Change				Local Price &						Portfolio /
$ In millions	$		%		Product Mix		Volume		Currency		Other
Herbicides	$	223	13	%	4	%	6	%	3	%	—	%
Insecticides	22		3	%	5	%	(3)	%	1	%	—	%
Fungicides	119		26	%	4	%	21	%	4	%	(3)	%
Other	15		10	%	3	%	8	%	(1)	%	—	%
Total	$	379	12	%	4	%	6	%	3	%	(1)	%

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Crop Protection

Crop protection net sales were $1,847 million in the second quarter of 2021, up 12 percent from $1,653 million in the second quarter of 2020. The increase was due to a 5 percent increase in volume, a 4 percent favorable impact from currency and a 3 percent increase in local price.

The increase in volume was driven by continued penetration of new products, including ArylexTM herbicide and PyraxaltTM insecticide, coupled by early demand in Latin America, which shifted approximately $50 million in sales from the third quarter. These volume gains were partially offset by an approximate $60 million impact from our decision to phase out select low-margin products. Favorable currency impacts were primarily from the Euro. The increase in local price was driven by strategic price increases in North America, coupled with strong price execution globally.

Segment operating EBITDA was $370 million in the second quarter of 2021, up 20 percent from $309 million in the second quarter of 2020. Volume gains from new products, continued pricing execution, productivity, and favorable impacts from currency more than offset higher input costs, including raw material costs. Segment operating EBITDA margin improved by more than 130 basis points versus the prior-year period.

Crop protection net sales were $3,533 million for the first six months of 2021, up 12 percent from $3,154 million for the first six months of 2020. The increase was due to a 6 percent increase in volume, ~~and~~ a 24 percent increase in local price and a 3 percent favorable impact from currency, partially offset by a 21 percent ~~decline in currency.~~unfavorable portfolio impact.

Volume gains were led by continued penetration of new products, including ArylexTM and EnlistTM herbicides and Pyraxalt™ insecticide. These volume gains were partially offset by an approximate $130 million impact from our decision to phase out select low-margin products. The increase in ~~volume~~local price was primarily driven by ~~the recovery of planted area in North America, higher Safrinha sales and earlier summer corn deliveries~~gains in Latin America and ~~market share gains in corn in EMEA. Local price gain was driven by favorable mix globally, changes in route to market in EMEA, price increases in Latin America, and holding price in~~ North America. ~~Global corn price increased 2 percent, and North America soybean price increased 1 percent for the half. Unfavorable~~Favorable currency impacts ~~were~~ primarily ~~drive by~~from the ~~Brazilian Real and the Euro.~~

Segment operating EBITDA was $1,537 million for the first six months of 2020, compared to $1,361 million in the first six months of 2019 on a pro forma basis. Volume gains, favorable mix, and ongoing cost synergies and productivity efforts were partiallyEuro more than offset ~~by higher commissions, the~~ unfavorable ~~impact of currency, higher royalties and higher input costs due to lower production yields.~~

Crop Protection Three Months Ended
June 30, Six Months Ended
June 30,
In millions 2020 2019 2020 2019
Net sales $ 1,653
$ 1,857
$ 3,154
$ 3,286
Segment Operating EBITDA¹
$ 309
$ 450
$ 547
$ 670


1.	~~The six months ended June 30, 2019 is presented on a Pro Forma Basis, prepared in accordance with Article 11 of Regulation S-X~~.

Crop Protection Q2 2020 vs. Q2 2019 Percent Change Due To:
Net Sales Change Local Price & Portfolio /
$ In millions $ % Product Mix Volume Currency Other
North America $ (23 ) (3 )% 1 % (3 )% — % (1 )%
EMEA (14 ) (4 )% 1 % — % (4 )% (1 )%
Latin America (157 ) (34 )% 5 % (25 )% (14 )% — %
Asia Pacific (10 ) (3 )% (1 )% 4 % (5 )% (1 )%
Total $ (204 ) (11 )% 2 % (7 )% (5 )% (1 )%

Crop Protection First Half 2020 vs. First Half 2019 Percent Change Due To:
Net Sales Change Local Price & Portfolio /
$ In millions $ % Product Mix Volume Currency Other
North America $ (27 ) (2 )% (1 )% — % — % (1 )%
EMEA 12
1 % 1 % 5 % (4 )% (1 )%
Latin America (126 ) (19 )% 5 % (11 )% (13 )% — %
Asia Pacific 9
2 % — % 8 % (4 )% (2 )%
Total $ (132 ) (4 )% 1 % — % (4 )% (1 )%

~~Crop Protection~~

~~Crop protection net sales were $1,653 million in the second quarter of 2020, down~~impacts from $1,857 million in the second quarter of 2019. The decrease was due to a 7 percent decline in volume, a 5 percent decline in currency, and a 1 percent impact from portfolio actions, partially offset by a 2 percent increase in local price.

The year-over-year decrease in volume was primarily driven by the effect of an earlier start to the Latin America season in the three month period ended June 30, 2019, which shifted approximately $80 million of crop protection sales from third quarter 2019 to second quarter 2019, as well as rework on Vessaraya^®fungicide due to formulation challenges. These impacts were coupled with increased competitive pressures in North America, particularly in the herbicide market. Unfavorable currency impacts were led by the Brazilian Real. The portfolio impact was driven by prior-year divestitures in ~~North America,~~ Asia ~~Pacific and EMEA. The increase in local price was driven by increases in Latin America in response to currency.~~Pacific.

Segment operating EBITDA was $309 million in the second quarter of 2020, down from $450 million in the second quarter of 2019. Gains from cost synergies and ongoing productivity actions were more than offset by volume declines in Latin America and North America, the unfavorable impact of currency and increased investments in research and development.

~~Crop protection net sales were $3,154~~$691 million for the first six months of ~~2020, down~~2021, up 26 percent from ~~$3,286 million in the first six months of 2019. The decrease was due to a 4 percent decline in currency and a 1 percent impact from portfolio, partially offset by a 1 percent increase in local price.~~

Unfavorable currency impacts were primarily due to the Brazilian Real and the Euro. The increase in local price was primarily driven by increases in Latin America in response to currency. Volume gains led by new product launches, including Rinskor™ and Arylex™ herbicides, were offset by a normalized start to the season in Latin America, resulting in flat volumes.

~~Segment operating EBITDA was~~ $547 million for the first six months of ~~2020, compared to $670 million in the first six months~~2020. Favorable mix, continued penetration of ~~2019 on a pro forma basis. The unfavorable impact of currency~~new products, and ~~geographic~~ongoing cost and ~~product mix, together with increased investment in research and development~~productivity actions more than offset ~~cost synergies and ongoing productivity actions.~~higher input costs, including raw material costs. Segment operating EBITDA margin improved by more than 220 basis points versus the prior-year period.

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Non-GAAP Financial Measures

The company presents certain financial measures that do not conform to U.S. GAAP and are considered non-GAAP measures. These measures include Operating EBITDA and operating earnings per share. Management uses these measures internally for planning and forecasting, including allocating resources and evaluating incentive compensation. Management believes that these non-GAAP measures best reflect the ongoing performance of the company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the company and a more useful comparison of year over year results. These non-GAAP measures supplement the company's U.S. GAAP disclosures and should not be viewed as an alternative to U.S. GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these non-GAAP measures to U.S. GAAP are provided below. For the six months ended June 30, 2019 information is on a pro forma basis and these non-GAAP measures are being reconciled to a pro forma GAAP financial measure prepared and presented in accordance with Article 11 of Regulation S-X, which are reconciled to the GAAP reported figures. See Article 11 Pro Forma Combined Statements of Operations on page 54.

Operating EBITDA is defined as earnings (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, non-operating (benefits) costs - net, ~~and~~ foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant ~~items (including goodwill impairment charges).~~items. Non-operating (benefits) costs - net consists of non-operating pension and OPEB credits, tax indemnification adjustments and environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense. Operating earnings per share is defined as "Earnings per common share from continuing operations - diluted" excluding the after-tax impact of significant items, ~~(including goodwill impairment charges),~~ the after-tax impact of non-operating (benefits) costs - net, ~~and~~ the after-tax impact of amortization expense associated with intangible assets existing as of the Separation from ~~DowDuPont.~~DowDuPont, and the after-tax impact of net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. Although amortization of the company's intangible assets is excluded from these non-GAAP measures, management believes it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in amortization of additional intangible assets. Net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting represents the non-cash net gain (loss) from changes in fair value of certain undesignated foreign currency derivative contracts. Upon settlement, which is within the same calendar year of execution of the contract, the realized gain (loss) from the changes in fair value of the non-qualified foreign currency derivative contracts will be reported in the relevant non-GAAP financial measures, allowing quarterly results to reflect the economic effects of the foreign currency derivative contracts without the resulting unrealized mark to fair value volatility.

Reconciliation of Income from Continuing Operations after Income Taxes to Operating EBITDA


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020

Income from continuing operations after income taxes (GAAP)	$	1,018	$	766	$	1,631	$	1,047
Provision for income taxes on continuing operations	284		78		462		205
Income from continuing operations before income taxes (GAAP)	1,302		844		2,093		1,252
Depreciation and amortization	313		300		617		583
Interest income	(18)		(9)		(39)		(27)
Interest expense	7		14		14		24
Exchange losses (gains) - net	14		(1)		49		60
Non-operating benefits - net	(315)		(91)		(626)		(164)

Mark-to-market losses on certain foreign currency contracts not designated as hedges1	23				22
Significant items charge	135		179		235		302

Operating EBITDA (Non-GAAP)	$	1,461	$	1,236	$	2,365	$	2,030

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Three Months Ended
June 30, Six Months Ended
June 30,

2020 2019 2020 2019
(In millions) As Reported As Reported As Reported Pro Forma
Income from continuing operations after income taxes $ 766
$ 483
$ 1,047
$ 595
Provision for income taxes on continuing operations 78
270
205
250
Income from continuing operations before income taxes 844
753
1,252
845
Depreciation and amortization 300
227
583
485
Interest income (9 ) (17 ) (27 ) (33 )
Interest expense 14
34
24
48
Exchange (gains) losses - net (1 ) 32
60
59
Non-operating benefits - net (91 ) (32 ) (164 ) (74 )
Significant items charge 179
455
302
640
Operating EBITDA (Non-GAAP) $ 1,236
$ 1,452
$ 2,030
$ 1,970

Significant Items

~~Significant Items~~


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Restructuring and asset related charges - net	$	(135)	$	(179)	$	(235)	$	(249)
Loss on divestiture	—		—		—		(53)
Total pretax significant items charge	(135)		(179)		(235)		(302)
Total tax benefit impact of significant items1	28		36		51		59
Tax only significant item benefit2	—		29		—		10
Total significant items charge, after tax	$	(107)	$	(114)	$	(184)	$	(233)

Three Months Ended
June 30, Six Months Ended
June 30,

2020 2019 2020 2019
(In millions) As Reported As Reported As Reported Pro Forma
Integration and separation costs $ —
$ (330 ) $ —
$ (430 )
Restructuring and asset related charges - net (179 ) (60 ) (249 ) (121 )
Loss on divestiture —
—
(53 ) (24 )
Amortization of inventory step-up —
(52 ) —
(52 )
Loss on early extinguishment of debt —
(13 ) —
(13 )
Total pretax significant items charge (179 ) (455 ) (302 ) (640 )
Total tax benefit (provision) impact of significant items¹
36
(80 ) 59
12
Tax only significant item benefit²
29
—
10
—
Total significant items charge, after tax $ (114 ) $ (535 ) $ (233 ) $ (628 )
1.Unless specifically addressed above, the income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

^1.

2.The tax only significant item benefits for the three and six months ended June 30, 2020 are primarily related to a benefit due to an elective change in accounting method that alters the 2019 impact of the business separation on The Act's foreign tax provisions and a state tax valuation allowance in the U.S. based on a change in judgment about the realizability of a deferred tax asset.

The tax benefit impact of significant items for the three months ended June 30, 2019 includes a net tax charge of $(114) million related to U.S. state blended tax rate changes associated with the Business Separations and a net tax charge of $(96) million related to application of the The Act's foreign tax provisions. In addition to the items noted above, the tax benefit impact of significant items for the six months ended June 30, 2019 includes a net tax charge of $(32) million related to U.S. state blended tax rate changes associated with the Internal Reorganizations and a tax benefit of $102 million related to an internal legal entity restructuring associated with the Internal Reorganizations. Unless specifically addressed above, the income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.


^2.	The tax only significant item benefits are primarily related to a benefit due to an elective change in accounting method that alters the 2019 impact of the business separation on The Act's foreign tax provisions and a state tax valuation allowance in the U.S. based on a change in judgment about the realizability of a deferred tax asset.

Reconciliation of Income from Continuing Operations Attributable to Corteva and Earnings Per Share of Common Stock from Continuing Operations - Diluted to Operating Earnings and Operating Earnings Per Share


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020

Income from continuing operations attributable to Corteva (GAAP)	$	1,015	$	760	$	1,625	$	1,031
Less: Non-operating benefits - net, after tax	237		67		474		124
Less: Amortization of intangibles (existing as of Separation), after tax	(140)		(137)		(283)		(251)

Less: Mark-to-market losses on certain foreign currency contracts not designated as hedges, after tax1	(18)				(17)
Less: Significant items charge, after tax	(107)		(114)		(184)		(233)
Operating Earnings (Non-GAAP)	$	1,043	$	944	$	1,635	$	1,391


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020

Earnings per share of common stock from continuing operations - diluted (GAAP)	$	1.37	$	1.01	$	2.18	$	1.37
Less: Non-operating benefits - net, after tax	0.32		0.09		0.64		0.16
Less: Amortization of intangibles (existing as of Separation), after tax	(0.19)		(0.19)		(0.38)		(0.33)

Less: Mark-to-market losses on certain foreign currency contracts not designated as hedges, after tax1	(0.02)				(0.02)
Less: Significant items charge, after tax	(0.14)		(0.15)		(0.25)		(0.31)
Operating Earnings Per Share (Non-GAAP)	$	1.40	$	1.26	$	2.19	$	1.85
Diluted Shares Outstanding (in millions)	743.3		751.6		746.4		752.0

Three Months Ended
June 30, Six Months Ended
June 30,

2020 2019 2020 2019
(In millions) As Reported As Reported As Reported Pro Forma
Income from continuing operations attributable to Corteva $ 760
$ 470
$ 1,031
$ 574
Less: Non-operating benefits - net, after tax 67
30
124
61
Less: Amortization of intangibles (existing as of Separation), after tax (137 ) (89 ) (251 ) (170 )
Less: Significant items charge, after tax (114 ) (535 ) (233 ) (628 )
Operating Earnings (Non-GAAP) $ 944
$ 1,064
$ 1,391
$ 1,311

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Three Months Ended
June 30, Six Months Ended
June 30,
2020 2019 2020 2019
As Reported As Reported As Reported Pro Forma
Earnings per share of common stock from continuing operations - diluted $ 1.01
$ 0.63
$ 1.37
$ 0.77
Less: Non-operating benefits - net, after tax 0.09
0.04
0.16
0.08
Less: Amortization of intangibles (existing as of Separation), after tax (0.19 ) (0.12 ) (0.33 ) (0.22 )
Less: Significant items charge, after tax (0.15 ) (0.71 ) (0.31 ) (0.84 )
Operating Earnings Per Share (Non-GAAP) $ 1.26
$ 1.42
$ 1.85
$ 1.75
Diluted Shares Outstanding (in millions)
751.6
750.0
752.0
749.7

Liquidity and Capital Resources

Information related to the company's liquidity and capital resources can be found in the company’s ~~2019~~2020 Annual Report, Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Liquidity & Capital Resources. The discussion below provides the updates to this information for the six months ended June 30, ~~2020.~~2021.


(In millions)	June 30, 2021		December 31, 2020		June 30, 2020
Cash, cash equivalents and marketable securities	$	2,900	$	3,795	$	2,869
Total debt	$	1,778	$	1,105	$	2,631

(Dollars in millions) June 30, 2020 December 31, 2019 June 30, 2019
Cash, cash equivalents and marketable securities $ 2,869
$ 1,769
$ 2,083
Total debt $ 2,631
$ 122
$ 2,175

The company's cash, cash equivalents and marketable securities at June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019~~2020 were ~~$2,869~~$2,900 million, ~~$1,769~~$3,795 million and ~~$2,083~~$2,869 million, respectively. Total debt at June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019~~2020 was ~~$2,631~~$1,778 million, ~~$122~~$1,105 million, and ~~$2,175~~$2,631 million, respectively. The increase in debt balances from December 31, ~~2019~~2020 was primarily due to funding the company’s seasonal working capital needs and capital ~~expenditures, and the May 2020 Debt Offering.~~expenditures. See further information in Note 1312 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities, to the interim Consolidated Financial Statements.

The company believes its ability to generate cash from operations and access to capital markets and commercial paper markets will be adequate to meet anticipated cash requirements to fund its operations, including seasonal working capital, capital spending, funding of the MOU escrow account, and pension obligations. Corteva's strong financial position, liquidity and credit ratings will provide access as needed to capital markets and commercial paper markets to fund seasonal working capital needs. The company's liquidity needs can be met through a variety of sources, including cash provided by operating activities, commercial paper, syndicated credit lines, bilateral credit lines, long-term debt markets, bank financing and committed receivable repurchase facilities. Corteva considers the borrowing costs and lending terms when selecting the source to fund its operations and working capital needs. During the six months ended June 30, 2021, the company has experienced increased operating costs for freight and raw materials. The company also has experienced increased costs for materials used in various capital expenditures and capacity expansion projects. The increases in costs have been due, in part to, inflation and the rising demand from the economic recovery from the lifting of COVID-19 pandemic restrictions and government stimulus in some regions, while the supply for certain materials have not returned to pre-pandemic levels. The company expects this trend to continue as global supply chains and logistics remain constrained across industries.

The company had access to approximately ~~$6.3~~$6.4 billion at June 30, 2021, $6.4 billion at December 31, 2020, and $6.3 billion at June 30, 2020, in committed and uncommitted unused credit ~~lines at June 30, 2020, December 31, 2019, and June 30, 2019, respectively.~~lines. In addition to the unused credit facilities, the company has a ~~$1.3~~$1 billion ~~2020~~2021 Repurchase Facility (as defined below). These facilities provide support to meet the company’s short-term liquidity needs and for general corporate purposes which may include funding of discretionary and ~~non-discretionary~~nondiscretionary contributions to certain benefit plans, severance payments, repayment and refinancing of debt, working capital, capital expenditures, repurchases and redemptions of securities, and funding Corteva's costs and expenses.

In November 2018, EID entered into a $3.0 billion five-year revolving credit facility and a $3.0 billion three-year revolving credit facility (the “Revolving Credit Facilities”). The Revolving Credit Facilities became effective May 2019 in connection with the termination of the EID $4.5 billion Term Loan Facility and the $3.0 billion Revolving Credit Facility dated May 2014. Corteva, Inc. became a party to the Revolving Credit Facilities upon the Corteva Distribution. In March 2020, ~~EID~~the company drew down $500 million under the ~~three-year~~three year revolving credit facility to finance its ~~short-term~~short term liquidity needs as a result of the volatility and increased borrowing costs of commercial paper resulting from the unstable market conditions caused by ~~COVID-19. All amounts outstanding for~~ the ~~$500 million draw down were~~COVID-19 pandemic, and repaid ~~as of~~that borrowing in full in June ~~30,~~ 2020. The Revolving Credit Facilities contain customary representations and warranties, affirmative and negative covenants and events of default that are typical for companies with similar credit ratings. The Revolving Credit Facilities also contain a financial covenant requiring that the ratio of total indebtedness to total capitalization for Corteva and its consolidated subsidiaries not exceed 0.60. At June 30, ~~2020~~2021 the company was in compliance with these covenants.

The company's indenture covenants include customary limitations on liens, sale and leaseback transactions, and mergers and consolidations affecting manufacturing plants, mineral producing properties or research facilities located in the U.S. and the consolidated subsidiaries owning such plants, properties and facilities subject to certain limitations. The outstanding long-term debt also contains customary default provisions.

The company has meaningful seasonal working capital needs based in part on providing financing to its customers. Working capital is funded through multiple methods including cash, commercial paper, ~~a receivable repurchase facility,~~the 2021 Repurchase Facility, the Revolving Credit Facilities, ~~factoring~~ and ~~cash from operations.~~factoring.

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In February ~~2020,~~2021, in line with seasonal working capital requirements, the company entered into a committed receivable repurchase agreement of up to ~~$1.3~~$1.0 billion (the ~~"2020~~"2021 Repurchase Facility"), which expires in December ~~2020.~~2021. Under the ~~2020~~2021 Repurchase Facility, Corteva may sell a portfolio of available and eligible outstanding customer notes receivables to participating institutions and simultaneously agree to repurchase at a future date. See further discussion of this facility in Note 1312 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities, to the interim Consolidated Financial Statements.

The company has factoring agreements with third-party financial institutions to sell its trade receivables under both recourse and non-recourse agreements in exchange for cash proceeds in an effort to reduce its receivables risk. For arrangements that include an element of recourse, the company provides a guarantee of the trade receivables in the event of customer default. Refer to Note 109 - Accounts and Notes Receivable - Net, to the interim Consolidated Financial Statements for more information.

The company also organizes agreements with third-party financial institutions who directly provide financing for select customers of the company's seed and crop protection products in each region. Terms of the third-party loans are less than a year and programs are renewed on an annual basis. In some cases, the company guarantees a portion of the extension of such credit to such customers. Refer to Note 1413 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements for more information on the company’s guarantees.

The company's cash, cash equivalents and marketable securities at June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019~~2020 are $2.9 billion, ~~$1.8~~$3.8 billion, and ~~$2.1~~$2.9 billion respectively, of which $2.7 billion, ~~at June 30, 2020, $1.5~~$3.1 billion, ~~at December 31, 2019,~~ and ~~$1.9~~$2.7 billion at June 30, ~~2019~~2021, December 31, 2020, and June 30, 2020, respectively, was held by subsidiaries in foreign countries, including United States territories.

The 2017 Tax Cuts and Jobs Act ("The Act") required companies to pay a one-time transition tax on the untaxed earnings of foreign subsidiaries. Upon actual repatriation, such earnings could be subject to withholding taxes, foreign and/or U.S. state income taxes, and taxes resulting from the impact of foreign currency movements. The Act also introduced a 100 percent dividends received deduction regarding earnings of foreign subsidiaries. The cash held by foreign subsidiaries is generally used to finance the subsidiaries' operational activities and future foreign investments. At June 30, ~~2020,~~2021, management believed that sufficient liquidity is available in the U.S. with global operating cash flows, borrowing capacity from existing committed credit facilities, and access to capital markets and commercial paper markets.

Summary of Cash Flows

Cash used for operating activities was ~~$0.9 billion~~$643 million for the six months ended June 30, ~~2020~~2021 compared to ~~$1.1 billion~~$869 million for the six months ended June 30, ~~2019.~~2020. The ~~decrease~~change in cash used for operating activities was driven by ~~a decrease in integration and separation costs,~~higher earnings partially offset by ~~the absence of the net impact of cash earnings and~~changes in working ~~capital from EID ECP and EID Specialty Products entities as a result of the Internal Reorganizations and Business Realignments in 2019.~~capital.

Cash used for investing activities was ~~$0.3 billion~~$17 million for the six months ended June 30, ~~2020~~2021 compared to ~~$0.7 billion~~$252 million for the six months ended June 30, ~~2019.~~2020. The change was primarily due ~~primarily~~ to lower ~~capital expenditures driven by the Internal Reorganizations and Business Realignments in 2019, partially~~purchases of investments, partly offset by higher ~~net purchases of investments~~capital expenditures. The company is increasing its expected 2021 capital expenditures to $600 - $650 million, which is primarily driven by increases in costs for materials used in various capital expenditures and ~~lower proceeds from sales of property, businesses, and consolidated companies.~~capacity expansion projects.

Cash (used for) provided by financing activities was $(27) million for the six months ended June 30, 2021 compared to $2.2 billion for the six months ended June 30, ~~2020 compared to $0.7 billion used for financing activities for the six months ended June 30, 2019.~~2020. The change was primarily due ~~primarily~~ to lower payments on long-term debt due to the 2019 debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (using a portion of the contributions from DowDuPont), the May 2020 Debt Offering, higher borrowings ~~(less than 90 days), and the absence of distributions to DowDuPont (which in 2019 were used primarily to fund a portion of DowDuPont’s dividend payments),~~ partially offset by ~~dividends to Corteva stockholders, payments for the acquisition of noncontrolling interests and~~higher repurchases of Corteva common stock. ~~In addition, during the six months ended June 30, 2019 there was a transfer of cash to DowDuPont as part of the Internal Reorganizations.~~

In ~~February 2020,~~January 2021, the company's Board of Directors authorized a common stock dividend of $0.13 per share, payable on March ~~13, 2020,~~15, 2021, to the shareholders of record on March ~~3, 2020.~~1, 2021. In April ~~2020,~~2021, the company's Board of Directors authorized a common stock dividend of $0.13 per share, payable on June 15, ~~2020,~~2021, to the shareholders of record on May ~~15, 2020.~~14, 2021. In July ~~2020,~~2021, the company’s Board of Directors approved an increase in the common stock dividend of $0.13 per share to $0.14 per share. In July 2021, the company's Board of Directors authorized a common stock dividend of ~~$0.13~~$0.14 per share, payable on September 15, ~~2020,~~2021, to the shareholders of record on August ~~14, 2020.~~13, 2021.

On August 5, 2021, the company's Board of Directors authorized a $1.5 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date.

On June 26, 2019, the company's Board of Directors authorized a $1 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The company repurchased $850 million under its share buyback plan since the Corteva Distribution and expects to complete the program in 2021.

For the full year 2021, the company expects to repurchase at least $850 million under the share buyback plans discussed above. The total amount, timing, price and volume of purchases will be based on market conditions, relevant securities laws and other market and company specific factors.

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During the three and six months ended June 30, 2021, the company purchased and retired 4,324,000 shares and 11,970,000 shares, respectively, in the open market for a total cost of $200 million and $550 million, respectively. During the six months ended June 30, 2020, the company purchased and retired 1,865,000 shares for a total cost of $50 million. See Note 1514 - Stockholders' Equity, to the interim Consolidated Financial Statements for additional information related to the share buyback plan.

EID Liquidity Discussion

As discussed in Note 1 - Basis of Presentation, to the EID interim Consolidated Financial Statements, EID is a subsidiary of Corteva, Inc. and continues to be a reporting company, subject to the requirements of the Exchange Act. The below relates to EID only and is presented to provide a Liquidity discussion for the differences between EID and Corteva, Inc.

Cash ~~provided by~~used for operating activities

EID’s cash used for operating activities was $663 million and $920 million for the six months ended June 30, 2021 and 2020, ~~was $0.9 billion compared to $1.1 billion for the six months ended June 30, 2019.~~respectively. The change was primarily driven by the items ~~noted~~ above under the header, "Summary of Cash ~~Flows," partially offset by interest incurred on the related party loan between EID and Corteva, Inc.~~Flow".

Cash ~~used for~~provided by financing activities

EID’s cash (used for) provided by financing activities was ~~$2.3 billion~~$(7) million for the six months ended June 30, ~~2020~~2021 compared to ~~$0.7 billion used~~$2,265 million for the six months ended June 30, ~~2019.~~2020. The change was due to lower payments on long-term debt due to the 2019 debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (using a portion of the contributions from DowDuPont and proceeds from related party debt), the May 2020 Debt Offering, higher borrowings (less than 90 days), the absence of distributions to DowDuPont which in 2019 were used primarily to fund a portion of DowDuPont’s dividend payments, and payments for the acquisition of noncontrolling interests. In addition, during the six months ended June 30, 2019 there was a transfer of cash to DowDuPont as part of the Internal Reorganizations. This activity was partially offsetdriven by lower proceeds from ~~related party~~issuance of long-term debt and higher payments on long-term debt on related party ~~debt during the six months ended June 30, 2020.~~debt.

See Note 2 - Related Party Transactions, to the EID interim Consolidated Financial Statements for further information on the related party loan between EID and Corteva, Inc.

Guarantees and Off-Balance Sheet Arrangements

For detailed information related to Guarantees, Indemnifications, and Obligations for Equity Affiliates and Others, see the company’s ~~2019~~2020 Annual Report, Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, Off-Balance Sheet Arrangements and Note 1413 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements.

~~Critical Accounting Estimates~~

The company's significant accounting policies are more fully described in Note 1 in the company's 2019 Annual Report. Management believes that the application of these policies on a consistent basis enables the company to provide the users of the financial statements with useful and reliable information about the company's operating results and financial condition.

~~Valuation of Assets and Impairment Considerations~~

The company tests goodwill and other indefinite-lived intangible assets for impairment annually (during the fourth quarter), or more frequently when events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit has declined below its carrying value. Goodwill is evaluated for impairment using qualitative and / or quantitative testing procedures. The company performs goodwill impairment testing at the reporting unit level which is defined as the operating segment or one level below the operating segment. One level below the operating segment, or component, is a business in which discrete financial information is available and regularly reviewed by segment management. The Company aggregates certain components into reporting units based on economic similarities.

As a result of changes in the company's long-term projections driven largely by the impacts of the COVID-19 pandemic on the mid-term forecasted cash flows of the business, including, but not limited to currency fluctuations, expectations of future planted area (as influenced by consumer demand, ethanol markets and government policies and regulations) and relative commodity prices, the company determined a triggering event had occurred during the second quarter of 2020 that required an interim impairment assessment for its seed and crop protection reporting units and its tradename indefinite lived intangible asset.

The quantitative impairment analysis for the company’s reporting units was performed using a discounted cash flow model (a form of the income approach), utilizing Level 3 unobservable inputs, and the analysis for the tradename indefinite lived intangible asset was performed using a relief from royalty valuation method. The company’s significant assumptions in these analyses include future cash flow projections, discount rates, the terminal growth rate, the royalty rate (tradename), and the tax rate. The company’s estimates of future cash flows are based on current regulatory and economic climates, recent operating results, and planned business strategy and includes an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each reporting unit. Actual results may differ from those assumed in the company’s forecasts. The company derives its discount rates using a capital asset pricing model and analyzes published rates for industries relevant to its reporting units to estimate the cost of equity financing. The company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective reporting units and in its internally developed forecasts. Discount rates used in the company’s valuations ranged from 9.5% to 10.5%.

The company believes the current assumptions and estimates utilized are both reasonable and appropriate. Based on the goodwill impairment analyses performed, the company concluded the fair value of each of the reporting units exceeded their respective carrying values by more than 15 percent, and no goodwill impairment charge was necessary.

Based on the impairment analysis performed over the company’s tradename indefinite lived intangible asset it was determined fair value approximates carrying value, and no impairment charge was necessary. However, this intangible asset is at higher risk to have impairment charges in future periods, if significant assumptions were to deteriorate.

The dynamic economic environments in which the company's diversified Seed product lines operate, and key economic and product line assumptions for the Seed business with respect to projected selling prices, product mix, market growth and inflation rates, can significantly affect the outcome of impairment tests for the tradename indefinite-lived intangible asset. Further, cost of capital and currency and tax rates are dependent on macroeconomic factors and government policies and regulations, which are outside the company’s control. Estimates based on these assumptions may differ significantly from actual results. Changes in factors, circumstances and assumptions used in assessing potential impairments can have a significant impact on the existence, magnitude and timing of impairments, if any, as well as the time in which such impairments are recognized.

Contractual Obligations

Information related to the company's contractual obligations at December 31, ~~2019~~2020 can be found on page 7173 of the company's ~~2019~~2020 Annual Report. There have been no material changes to the company’s contractual obligations outside the ordinary course of business from those reported in the company’s ~~2019~~2020 Annual Report, except for the $500 million of 1.70 percent Senior Notes due 2025 and $500 million of 2.30 percent Senior Notes due 2030 issued in the second quarter (the May 2020 Debt Offering). See Note 13 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities, to the interim Consolidated Financial Statements for additional information for further discussion of the debt issuance.

~~The company's total contractual obligations for long-term debt as of June 30, 2020 are as follows:~~

Payments Due In
(Dollars in millions) Total at June 30, 2020 Remainder 2020 2021 - 2022 2023 - 2024 2025 and beyond
Long-Term debt¹
$ 1,110
$ —
$ 1
$ —
$ 1,109
Report.

^1.

Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ~~Excludes Unamortized debt discount and issuance costs of $12 million.~~


~~Item 3.~~	~~QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK~~

See Note 1716 - Financial Instruments, to the interim Consolidated Financial Statements. See also Part II, Item 7A. Quantitative and Qualitative Disclosures About Market Risk, of the company's ~~2019~~2020 Annual Report, for information on the company's utilization of financial instruments and an analysis of the sensitivity of these instruments.

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Item 4. CONTROLS AND PROCEDURES

Corteva, Inc.

a) Evaluation of Disclosure Controls and Procedures

The company maintains a system of disclosure controls and procedures to give reasonable assurance that information required to be disclosed in the company's reports filed or submitted under the Securities Exchange Act of 1934 ("Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These controls and procedures also give reasonable assurance that information required to be disclosed in such reports is accumulated and communicated to management to allow timely decisions regarding required disclosures.

As of June 30, ~~2020,~~2021, the company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), together with management, conducted an evaluation of the effectiveness of the company's disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, the CEO and CFO concluded that these disclosure controls and procedures are effective.

b) Changes in Internal Control over Financial Reporting

There have been no changes in the company's internal control over financial reporting that occurred during the quarter ended June 30, ~~2020~~2021 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting.

E. I. du Pont de Nemours and Company

a) Evaluation of Disclosure Controls and Procedures

EID maintains a system of disclosure controls and procedures to give reasonable assurance that information required to be disclosed in their reports filed or submitted under the Securities Exchange Act of 1934 ("Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. These controls and procedures also give reasonable assurance that information required to be disclosed in such reports is accumulated and communicated to management to allow timely decisions regarding required disclosures.

As of June 30, ~~2020,~~2021, EID's CEO and CFO, together with management, conducted an evaluation of the effectiveness of EID's disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, the CEO and CFO concluded that these disclosure controls and procedures are effective.

b) Changes in Internal Control over Financial Reporting

There have been no changes in EID's internal control over financial reporting that occurred during the quarter ended June 30, ~~2020~~2021 that have materially affected, or are reasonably likely to materially affect, EID's internal control over financial reporting.

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PART II. OTHER INFORMATION


~~Item 1.~~	~~LEGAL PROCEEDINGS~~

Item 1.LEGAL PROCEEDINGS

The company is subject to various legal proceedings, including, but not limited to, product liability, intellectual property, antitrust, commercial, property damage, personal injury, environmental and regulatory matters arising out of the normal course of its current businesses or legacy EID businesses unrelated to Corteva’s current businesses but allocated to Corteva as part of the Separation of Corteva from DuPont. Often these proceedings raise complex factual and legal issues, which are subject to risks and uncertainties and which could require significant amounts of senior leadership team’s time. Litigation and other claims, along with regulatory proceedings, against the company could also materially adversely affect its operations, reputation, and/or result in the incurrence of unexpected expenses and liability. Even when the company believes liabilities are not expected to be material or the probability of loss or of an adverse unappealable final judgment is remote, the company may consider settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the company, including avoidance of future distraction and litigation defense cost, and its shareholders. Information regarding certain of these matters is set forth below and in Note 1413 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements.

Litigation related to Corteva’s current businesses

Canadian Competition Bureau Formal Inquiry

On January 30, 2020, the Canadian Competition Bureau (the “Bureau”) filed a court order for the company to produce records and information as part of a formal inquiry under civil sections of Canada’s competition laws. The inquiry is in response to allegations by the Farmers Business Network ("FBN") that Corteva and other seeds and crop protection manufacturers and wholesalers unilaterally or in coordination refused, restricted and/or impaired supply of products to FBN in western Canada. This inquiry follows an informal request for information from the Bureau pursuant to which the company voluntarily provided documents and engaged in discussions with the Bureau outlining how its conduct was and continues to be compliant with Canadian competition laws. Corteva continues to cooperate with the Bureau’s inquiries, but believes the likelihood of material liability is remote.

Federal Trade Commission Investigation

On May ~~29,~~26, 2020, Corteva received a subpoena from the Federal Trade Commission (“FTC”) directing it to submit documents pertaining to its crop protection products generally, as well as business plans, rebate programs, offers, pricing and marketing materials specifically related to its acetochlor, oxamyl and rimsulfuron and other related products in order to determine whether Corteva engaged in unfair methods of competition through anticompetitive conduct. Corteva ~~is cooperating~~has cooperated with the FTC’s subpoena, ~~but believes~~and continues to believe the likelihood of material liability is remote.

Chlorpyrifos Lawsuits

As of July 2021, there were 17 pending personal injury lawsuits filed against the former Dow Agrisciences, LLC in California, alleging injuries related to chlorpyrifos exposure, the active ingredient in Lorsban®, an insecticide used by commercial farms for field fruit, nut and vegetable crop. Corteva ended its production of Lorsban® in 2020. Chlorpyrifos products are restricted-use pesticides, which are not available for purchase or use by the general public, and may only be sold to, and used by, certified applicators or someone under the certified applicator's direct supervision. These lawsuits do not relate to Dursban®, a residential-type chlorpyrifos product that was authorized for indoor purposes, which was discontinued over two decades ago prior to the Merger and Corteva’s formation and Separation.

Currently, 10 cases filed in Monterey County allege personal injury, including autism, developmental delays and/or decreased neurologic function, resulting from farm worker exposure and bystander drift and in utero exposure to chlorpyrifos. The Monterey County cases have been consolidated for discovery purposes, but not for trial. The first trial is set to begin in March 2022. The remaining cases are from the California Central Valley and allege personal injury from occupational, in utero and post-natal exposure to chlorpyrifos oxon, as well as exposure from drinking water contaminated with chlorpyrifos. Additionally, the Central Valley cases include remediation claims due to alleged property contamination from chlorpyrifos. Discovery for the Central Valley cases only recently begun and is expected to continue through 2021. Any losses are not estimable at this time due to various reasons, including, among others, that the litigation remains in its early stages and significant factual issues remain to be resolved.

Litigation related to legacy EID businesses unrelated to Corteva’s current businesses

As discussed below and in Note 1413 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements, certain of the environmental proceedings and litigation allocated to Corteva as part of the Separation from DuPont relate to the legacy EID businesses, including their use of PFOA, which, for purposes of this report, means collectively perfluorooctanoic acid and its salts, including the ammonium salt and does not distinguish between the two forms, and PFAS, which means per- and polyfluoroalkyl substances, including PFOA, PFOS (perfluorooctanesulfonic acid), GenX and other

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perfluorinated chemicals and compounds ("PFCs"). ~~While~~Management believes that it is reasonably possible that ~~the company~~EID could incur liabilities related to ~~these actions,~~PFOA in excess of amounts accrued. However, any such ~~liabilities~~losses are not ~~expected~~estimable at this time due to various reasons, including, among others, that the underlying matters are in their early stages and have significant factual issues to be ~~material.~~resolved.

~~Pursuant to the Separation Agreements, the company is entitled to indemnification for certain liabilities related to legacy EID businesses.~~ On May 13, 2019, Chemours filed ~~a complaint~~suit in the Delaware Court of Chancery against DuPont, EID, and Corteva, ~~and EID alleging,~~seeking, among other things, ~~that~~to limit its responsibility for the litigation and environmental liabilities allocated to and assumed by Chemours under the Chemours Separation Agreement were underestimated and asking that the Court either limit the amount of Chemours’ indemnification obligations or, alternatively, order the return of the $3.91 billion dividend Chemours paid to EID prior to its separation. On June 3, 2019, the defendants moved to dismiss the complaint on the grounds that the Chemours Separation Agreement requires arbitration of all disputes relating to that agreement.(the “Delaware Litigation”). On March 30, 2020, the Court of Chancery granted ~~the~~a motion to ~~dismiss made by DuPont, Corteva, and EID. Chemours filed its appeal of the Chancery Court's decision with~~dismiss. On December 15, 2020, the Delaware Supreme Court ~~on June 4, 2020. An arbitration~~affirmed the judgment of the ~~indemnification matters is ongoing~~Court of Chancery. Meanwhile, a confidential arbitration process regarding the same and ~~proceeding in parallel with Chemours’ appeal~~other claims has proceeded (the “Pending Arbitration”). On January 22, 2021, Chemours, DuPont, Corteva and EID entered into a binding memorandum of understanding containing a settlement to resolve legal disputes originating from the ~~Chancery Court decision. The arbitration is currently scheduled~~Delaware Litigation and Pending Arbitration, and to ~~begin June 2021. The company believes the probability of liability with respect to Chemours' suit continues~~establish a cost sharing arrangement and escrow account to be ~~remote. Further information with respect~~used to ~~this proceeding is set forth in~~support and manage potential future legacy per- and polyfluoroalkyl substances (“PFAS”) liabilities arising out of pre-July 1, 2015 conduct (the “MOU”). See Note 1413 - Commitments and Contingent Liabilities, to the interim Consolidated Financial ~~Statements. The company believes the probability of liability with respect to Chemours' suit to be remote.~~Statements for further discussion.

Environmental Proceedings

The company believes it is remote that the following matters will have a material impact on its financial position, liquidity or results of operations. The ~~descriptions~~matters below involve the potential for $1 million or more in monetary fines and are included per Item ~~103(5)(c)~~103(c)(3)(iii) of Regulation S-K of the Securities Exchange Act of 1934, as amended.

Related to Corteva's current businesses

La Porte Plant, La Porte, Texas - Crop Protection - Release Incident Investigations

On November 15, 2014, there was a release of methyl mercaptan at EID's La Porte, Texas, facility. The release occurred at the site’s crop protection unit resulting in four employee fatalities inside the unit. The Chemical Safety Board (“CSB”) issued its final report on June 18, 2019, which included recommendations related to the emergency response program at La Porte. Corteva responded to the CSB on September 30, 2019 outlining the actions it has taken to date to address the recommendations for the site and providing its plan to address the CSB’s remaining recommendations. ~~Corteva continues to cooperate with~~After the ~~ongoing~~conclusion of the CSB investigation, criminal U.S. Environmental Protection Agency ("EPA") and the Department of Justice ("DOJ") investigations related to the incident continued. On January 8, 2021, EID and ~~is having discussions~~the facility's former unit operations leader were indicted by the DOJ on two felony and one misdemeanor charges of violations of the Clean Air Act related to the release. The maximum statutory penalties per charge are $500,000, or twice the gross gain or loss derived from the incident, as well as up to three years of probation and related ongoing reporting obligations. Corteva cooperated fully with the ~~DOJ regarding potential criminal charges~~government’s investigation and ~~EID's defenses under the U.S. Clean Air Act. These investigations could result in sanctions and criminal penalties~~will vigorously defend against ~~Corteva.~~these charges. The trial is currently scheduled for March 2022.

Related to legacy EID businesses unrelated to Corteva’s current businesses

Sabine Plant, Orange, Texas - EPA Multimedia Inspection

In June 2012, EID began discussions with the EPA and the DOJ related to a multimedia inspection that the EPA conducted at the Sabine facility in March 2009 and December 2015. The discussions involve the management of materials in the facility's ~~waste water~~wastewater treatment system, hazardous waste management, flare and air emissions, including leak detection and repair. These discussions continue. Under the Separation Agreement, Corteva and DuPont will share any future liabilities proportionally on the basis of 29% and 71%, respectively.

Divested Neoprene Facility, La Place, Louisiana - EPA Compliance Inspection

In 2016, the EPA conducted a focused compliance investigation at the Denka Performance Elastomer LLC (“Denka”) neoprene manufacturing facility in La Place, Louisiana. EID sold the neoprene business, including this manufacturing facility, to Denka in the fourth quarter of 2015. In the spring of 2017, the EPA, the DOJ, the Louisiana Department of Environmental Quality, EID and Denka began discussions relating to the inspection conclusions and allegations of noncompliance arising under the Clean Air Act, including leak detection and repair. These discussions, which include potential settlement options, continue. Under the Separation Agreement, DuPont is defending and indemnifying the company in this matter.

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New Jersey Directive PFAS

On March 25, 2019, the New Jersey Department of Environmental Protection (“NJDEP”) issued a Statewide PFAS Directive to several companies, including Chemours, DuPont, and EID. The Directive seeks information relating to the use and environmental release of PFAS and PFAS-replacement chemicals at and from two former EID sites in New Jersey, Chambers Works and Parlin, and a funding source for costs related to the NJDEP’s investigation of PFAS issues and PFAS testing and remediation.

~~Chemours has agreed, with reservations, to defend and indemnify EID in this matter.~~

New Jersey Directive Pompton Lakes

On March 27, 2019, the NJDEP issued to Chemours and EID a Natural Resource Damages Directive relating to chemical contamination (non-PFAS) at and around EID’s former Pompton Lakes facility in New Jersey. The Directive alleges that this contamination has harmed the natural resources of New Jersey. It seeks $125,000 as reimbursement for the cost of preparing a natural resource damages assessment, which the State will use to determine the extent of such damage and the amount it expects to seek to restore the affected natural resources to their pre-damage state.

~~Chemours has agreed, with reservations, to defend and indemnify EID in this matter.~~

Natural Resource Damage Cases

Since May 2017, several municipal water districts and state attorneys general have filed lawsuits against EID, Corteva, Chemours, 3M, and others, claiming contamination of public water systems by PFCs, including but not limited to PFOA. These actions ~~are currently pending in Alabama, New Hampshire, South Dakota, Vermont, New York, Ohio, Michigan and New Jersey~~ with the municipalities and states seeking economic impact damages for alleged harm to natural resources, punitive damages, present and future costs to cleanup PFOA contamination and the abatement of alleged nuisance with filtration systems. Further information with respect to these proceedings is set forth under "Other PFOA Matters" in Note 13 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements.

Netherlands Municipality Cases

In April 2021, four municipalities in the Netherlands filed complaints alleging contamination of land and groundwater resulting from the emission of PFOA and GenX by Corteva, DuPont and Chemours. Further information with respect to these proceedings is set forth under "Other PFOA Matters" in Note 13 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements.

Settlement with the State of Delaware

On July 13, 2021, Chemours, ~~has accepted~~DuPont, EID and Corteva entered into a settlement agreement with the ~~defense~~State of Delaware reflecting the companies’ and ~~indemnification~~the State’s agreement to settle and fully resolve claims alleged against the companies regarding their historical Delaware operations, manufacturing, use and disposal of ~~EID~~all chemical compounds, including PFAS. Further information with respect to this settlement is set forth under "Other PFOA Matters" in ~~these cases subject~~Note 13 - Commitments and Contingent Liabilities, to ~~a reservation~~the interim Consolidated Financial Statements.

Table of ~~rights as to product scope and has declined defense and indemnity to Corteva. Furthermore, Chemours declined to defend certain state law and fraudulent conveyance claims.~~Contents

Item 1A. RISK FACTORS

The significant factors known to us that could materially adversely affect our business, financial condition, or operating results are described in our most recently filed annual report on Form 10-K under Item 1A - Risk Factors, and are supplemented by the following risk factors below.

~~Global or regional health pandemics or epidemics,~~Risks Related to our Industry

A recent executive order may result in additional regulation of the agricultural industry that could result in the imposition of significant costs and restrictions on the Company’s business operations in the future.

On July 9, 2021, President Biden issued an executive order promoting competition in the American economy. The order encouraged further examination and efforts by U.S. regulatory agencies to avoid market concentrations for agricultural inputs, that could challenge the survival of family farms. The executive order also directs the U.S. Secretary of Agriculture to take action to ensure that the intellectual property system, while still incentivizing innovation, does not also unnecessarily reduce competition in seed and other agricultural input markets beyond what is reasonably contemplated by the U.S. Patent Act and propose strategies for addressing those concerns across intellectual property, antitrust, and other relevant laws. While the ultimate impact of the executive order will depend on the actions ultimately resulting from the U.S. regulatory authorities, actions taken by such authorities may increase the regulation and regulatory costs associated with our industry in the future and restrict the company from pursuing certain growth opportunities, including ~~COVID-19, could negatively impact the company's~~mergers and acquisitions.

Risks Related to our Operations

The transition in our chief executive officer position will be critical to our success and our business ~~financial condition and results of operations.~~

~~Corteva's business, financial condition, and results of operations~~ could be negatively impacted if we do not successfully manage this transition.

On June 23, 2021, the company announced that James C. Collins, Jr., chief executive officer ("CEO") will retire from all positions with the company by ~~COVID-19~~December 31, 2021. While the company is currently engaged in a search for a new CEO, any failure to timely hire a qualified CEO could hinder the company’s strategic planning, execution and future performance. The departure of key leadership personnel, such as a CEO, can take from the company significant knowledge and experience. While this loss of knowledge and experience can be mitigated through successful hiring and transition, there can be no assurance that we will be successful in such efforts. Further, if the company’s new CEO formulates different or ~~other pandemics or epidemics. The severity, magnitude~~changed views, the future strategy and ~~duration~~plans of the ~~current COVID-19 pandemic and future outbreaks is uncertain, rapidly changing and difficult~~company may differ materially from those of the past. While Mr. Collins entered into a letter agreement intended to ~~predict. To date, the COVID-19 pandemic has negatively impacted foreign currency exchange rates, as~~facilitate a ~~result of a generally stronger U.S. dollar relative to other currencies in the countries in which~~smooth transition, if the company ~~operates, which has adversely affected the company's reported results~~does not successfully manage this transition, it could be viewed negatively by our customers, employees or investors and could have an adverse impact on our business and strategic direction.

Table of ~~operations. These relative differences could widen and further adversely impact our results~~Contents

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of ~~operations and financial condition.~~

COVID-19 and the related government-imposed restrictions, including stay at home orders, has significantly impacted other economic activity and markets around the world, which could negatively impact the company's business, financial condition, and results of operations in numerous ways, including but not limited to those outlined below:

Current and future COVID-19 outbreaks and resulting illness, travel restrictions and workforce disruptions could impact Corteva's global supply chain, its operations and its routes to market or those of its suppliers, co-manufacturers, or customers/distributors. These disruptions or the company's failure to effectively respond to them could increase product or distribution costs, alter the timing of recognizing manufacturing costs, or impact the delivery of products to customers.

Government or regulatory responses to pandemics could negatively impact the company's business. Mandatory lockdowns or other restrictions on operations in certain countries have temporarily disrupted the company's ability to operate or distribute its products in these markets. Continuation or expansion of these disruptions could materially adversely impact the company's operations and results.

Reductions to the company’s forecasted profitability and continued global economic decline could trigger potential impairment of the carrying value of goodwill or other indefinite and definite-lived intangible assets.Equity Securities

The instability or unavailability of a farm workforce to harvest agricultural products could impact the company's customers’ ability to monetize their crop and potentially impact the collection of the company's customer receivables.

Continued commodity cost volatility is expected and the company's commodity hedging activities may not sufficiently offset this volatility. Depressed commodity prices may increase the insolvency risk of Corteva's customers in the longer-term, alongfollowing table summarizes information with ~~reducing the demand for Corteva's products.~~

~~Disruptions or uncertainties related to the COVID-19 outbreak for a sustained period of time could result in delays or modifications~~respect to the company's ~~strategic plans~~purchase of its common stock during the three months ended June 30, 2021:


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 Programs(1) (Dollars in millions)

April 2021	1,317,265	$	47.60	1,317,265	$	287
May 2021	1,411,685	46.75		1,411,685	221
June 2021	1,595,384	44.69		1,595,384	150
Total	4,324,334	$	46.25	4,324,334	$	150

1. On June 26, 2019, Corteva, Inc. announced that its Board of Directors authorized a $1 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The timing, price and ~~productivity initiatives.~~

~~Increased volatility and pricing in the capital and commercial paper markets may reoccur and impact the company's access to preferred sources~~volume of ~~liquidity resulting in higher borrowing costs. The company cannot assure investors that additional liquidity~~purchases will be ~~readily available or available~~based on ~~favorable terms.~~

~~Increased market volatility may bring unprecedented~~ market conditions, ~~making it difficult for the company to adequately forecast customer demand.~~relevant securities laws and other factors.

~~In addition, while Corteva experienced early demand for its products in the first quarter~~

Table of 2020, the company is unable to predict how long this sustained demand will last or how significant it will be. Therefore, the impact of the recent COVID-19 outbreak and the unprecedented economic conditions resulting from it will have on the company's consolidated results of operations is uncertain, but could still negatively impact the company's business operations, financial performance and results of operations in the future.Contents

Reduction in ethanol demand driven by declines in crude oil and gasoline consumption have negatively impacted demand for corn, which can negatively impact the company's business, financial condition and results of operations.

During 2020 global and U.S. crude oil price benchmarks suffered record declines in demand resulting from the COVID-19 pandemic stay-at-home orders and over-supply due to price disputes between Russia and Saudi Arabia. U.S. ethanol producers have shut down their facilities and declared “force majeure” on shipments for corn purchases due to depressed demand. Similar trends with respect to bio-fuels, like ethanol, are occurring globally. Approximately one-third of U.S. corn has been historically used in the production of ethanol for gasoline. However, U.S. ethanol supplied bottomed at approximately 53% of its pre-COVID-19 U.S. lockdown levels in April 2020 and had only rebounded to approximately 85% of its pre-COVID lockdown levels in July 2020. This lost corn utilization to manufacture ethanol is adding to ending corn inventory stock. Continued declines in the demand for corn, or over-supply, will negatively impact our business, financial condition, and results of operations.

Item 5.OTHER INFORMATION

None.

~~On June 1, 2019, Corteva, Inc. became an independent, publicly traded company through the previously announced separation (the “Separation”)~~

Table of the agriculture business of DowDuPont Inc. (“DowDuPont”). The separation was effectuated through a pro rata distribution of all of the then-issued and outstanding shares of common stock, par value $0.01 per share, of Corteva, Inc., which was then a wholly-owned subsidiary of DowDuPont, to holders of record of DowDuPont common stock as of the close of business on May 24, 2019. The Separation is intended to qualify as a tax-free spinoff for United States tax purposes under Section 355 of the Internal Revenue Code.Contents

Previously, DowDuPont was formed on December 9, 2015, to effect an all-stock merger of equals strategic combination between The Dow Chemical Company ("Historical Dow") and EID. On August 31, 2017 at 11:59 pm ET, Historical Dow and Historical EID each merged with wholly-owned subsidiaries of DowDuPont and became subsidiaries of DowDuPont (the “Merger”).

Item 6.EXHIBITS


~~Item 6.~~	~~EXHIBITS~~



Exhibit Number						Description

2.1						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).

3.1						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.~~2019).

3.2						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.~~2019).

3.3						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).

3.4						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).

4						Corteva agrees to provide the Commission, on request, copies of instruments defining the rights of holders of long-term debt of Corteva and its subsidiaries.

~~31.1~~10.1						Form of CFO Special RSU Agreement (incorporated by reference from the Form 8-K (Commission file number 001-38710) dated April 6, 2021).

10.2						Letter Agreement between James C. Collins, Jr. and Corteva, Inc., dated June 21, 2021 (incorporated by reference from the Form 8-K (Commission file number 001-38710) dated June 23, 2021).

31.1						Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Executive Officer.

31.2						Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Financial Officer.

32.1						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.

32.2						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)

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SIGNATURE

Corteva, Inc.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



			CORTEVA, INC.
			(Registrant)

			Date:			August 6, ~~2020~~2021


			By:			/s/ Brian Titus

						Brian Titus
						Vice President, Controller
						(Principal Accounting Officer)

E. I. du Pont de Nemours and Company

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



			E. I. du Pont de Nemours and Company
			(Registrant)

			Date:			August 6, ~~2020~~2021


			By:			/s/ Brian Titus

						Brian Titus
						Vice President, Controller
						(Principal Accounting Officer)

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CONSOLIDATED FINANCIAL STATEMENTS OF E. I. DU PONT DE NEMOURS AND COMPANY

E. I. du Pont de Nemours and Company

Consolidated Statements of Operations (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share amounts)	2021		2020		2021		2020
Net sales	$	5,627	$	5,191	$	9,805	$	9,147
Cost of goods sold	3,010		2,829		5,430		5,098
Research and development expense	293		273		574		553
Selling, general and administrative expenses	998		965		1,731		1,722
Amortization of intangibles	180		176		363		339
Restructuring and asset related charges - net	135		179		235		249
Other income - net	298		89		635		90
Interest expense	20		45		42		87
Income from continuing operations before income taxes	1,289		813		2,065		1,189
Provision for income taxes on continuing operations	281		71		455		190
Income from continuing operations after income taxes	1,008		742		1,610		999
(Loss) income from discontinued operations after income taxes	(45)		0		(55)		1
Net income	963		742		1,555		1,000
Net income attributable to noncontrolling interests	0		3		1		11
Net income attributable to E. I. du Pont de Nemours and Company	$	963	$	739	$	1,554	$	989

Three Months Ended
June 30, Six Months Ended
June 30,
(In millions, except per share amounts) 2020 2019 2020 2019
Net sales $ 5,191
$ 5,556
$ 9,147
$ 8,952
Cost of goods sold 2,829
3,047
5,098
5,258
Research and development expense 273
269
553
568
Selling, general and administrative expenses 965
937
1,722
1,672
Amortization of intangibles 176
113
339
214
Restructuring and asset related charges - net 179
60
249
121
Integration and separation costs —
330
—
542
Other income - net 89
—
90
31
Loss on early extinguishment of debt

—
13
—
13
Interest expense 45
64
87
123
Income from continuing operations before income taxes 813
723
1,189
472
Provision for income taxes on continuing operations 71
263
190
196
Income from continuing operations after income taxes 742
460
999
276
(Loss) income from discontinued operations after income taxes —
(1,077 ) 1
(717 )
Net income (loss) 742
(617 ) 1,000
(441 )
Net income attributable to noncontrolling interests 3
9
11
19
Net income (loss) attributable to E. I. du Pont de Nemours and Company $ 739
$ (626 ) $ 989
$ (460 )

See Notes to the Interim Consolidated Financial Statements beginning on page ~~78.~~75.

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E. I. du Pont de Nemours and Company

Consolidated Statements of Comprehensive Income ~~(Loss)~~ (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Net income	$	963	$	742	$	1,555	$	1,000
Other comprehensive income (loss) - net of tax:
Cumulative translation adjustments	243		97		(160)		(575)
Adjustments to pension benefit plans	8		(6)		16		(6)
Adjustments to other benefit plans	(160)		(1)		(317)		2
Unrealized gain on investments	0		0		10		0
Derivative instruments	31		(2)		96		4
Total other comprehensive income (loss)	122		88		(355)		(575)
Comprehensive income	1,085		830		1,200		425
Comprehensive income attributable to noncontrolling interests - net of tax	0		3		1		11
Comprehensive income attributable to E. I. du Pont de Nemours and Company	$	1,085	$	827	$	1,199	$	414

Three Months Ended
June 30, Six Months Ended
June 30,
(In millions) 2020 2019 2020 2019
Net income (loss) $ 742
$ (617 ) $ 1,000
$ (441 )
Other comprehensive income (loss) - net of tax:

Cumulative translation adjustments 97
(102 ) (575 ) (174 )
Adjustments to pension benefit plans (6 ) 11
(6 ) 8
Adjustments to other benefit plans (1 ) (86 ) 2
(86 )
Derivative instruments (2 ) 22
4
23
Total other comprehensive income (loss) 88
(155 ) (575 ) (229 )
Comprehensive income (loss) 830
(772 ) 425
(670 )
Comprehensive income attributable to noncontrolling interests - net of tax 3
9
11
19
Comprehensive income (loss) attributable to E. I. du Pont de Nemours and Company $ 827
$ (781 ) $ 414
$ (689 )

See Notes to the Interim Consolidated Financial Statements beginning on page ~~78.~~75.

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E. I. du Pont de Nemours and Company

~~Condensed~~ Consolidated Balance Sheets (Unaudited)


(In millions, except share amounts)	June 30, 2021		December 31, 2020		June 30, 2020
Assets
Current assets
Cash and cash equivalents	$	2,861	$	3,526	$	2,809
Marketable securities	39		269		60
Accounts and notes receivable - net	6,792		4,926		6,772
Inventories	3,541		4,882		3,589
Other current assets	1,052		1,165		1,192

Total current assets	14,285		14,768		14,422
Investment in nonconsolidated affiliates	68		66		62
Property, plant and equipment	8,343		8,253		7,858
Less: Accumulated depreciation	4,002		3,857		3,565
Net property, plant and equipment	4,341		4,396		4,293
Goodwill	10,207		10,269		10,069
Other intangible assets	10,413		10,747		11,070
Deferred income taxes	442		464		290
Other assets	1,740		1,939		1,974

Total Assets	$	41,496	$	42,649	$	42,180
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations	$	677	$	3	$	1,529
Accounts payable	3,070		3,615		2,891
Income taxes payable	234		123		369
Deferred revenue	748		2,662		431
Accrued and other current liabilities	2,525		2,148		2,312

Total current liabilities	7,254		8,551		7,532
Long-Term Debt	1,101		1,102		1,102
Long-Term Debt - Related Party	2,745		3,459		3,842
Other Noncurrent Liabilities
Deferred income tax liabilities	935		893		752
Pension and other post employment benefits - noncurrent	4,767		5,176		6,039
Other noncurrent obligations	1,816		1,867		1,957

Total noncurrent liabilities	11,364		12,497		13,692
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, without par value – cumulative; 23,000,000 shares authorized; issued at June 30, 2021, December 31, 2020, and June 30, 2020:
$4.50 Series – 1,673,000 shares (callable at $120)	169		169		169
$3.50 Series – 700,000 shares (callable at $102)	70		70		70
Common stock, $0.30 par value; 1,800,000,000 shares authorized; 200 issued at June 30, 2021, December 31, 2020, and June 30, 2020	0		0		0
Additional paid-in capital	24,131		24,049		23,981

Retained earnings / (accumulated deficit)	1,752		203		580
Accumulated other comprehensive loss	(3,245)		(2,890)		(3,845)
Total E. I. du Pont de Nemours and Company stockholders’ equity	22,877		21,601		20,955
Noncontrolling interests	1		0		1
Total equity	22,878		21,601		20,956
Total Liabilities and Equity	$	41,496	$	42,649	$	42,180

(In millions, except share amounts) June 30, 2020 December 31, 2019 June 30, 2019
Assets

Current assets

Cash and cash equivalents $ 2,809
$ 1,764
$ 2,077
Marketable securities 60
5
6
Accounts and notes receivable - net 6,772
5,528
7,441
Inventories 3,589
5,032
3,918
Other current assets 1,192
1,190
1,010
Total current assets 14,422
13,519
14,452
Investment in nonconsolidated affiliates 62
66
64
Property, plant and equipment - net of accumulated depreciation (June 30, 2020 - $3,565; December 31, 2019 - $3,326; June 30, 2019 - $3,207) 4,293
4,546
4,543
Goodwill 10,069
10,229
10,249
Other intangible assets 11,070
11,424
11,832
Deferred income taxes 290
287
325
Other assets 1,974
2,326
2,464
Total Assets $ 42,180
$ 42,397
$ 43,929
Liabilities and Equity

Current liabilities

Short-term borrowings and finance lease obligations $ 1,529
$ 7
$ 2,058
Accounts payable 2,891
3,702
3,139
Income taxes payable 369
95
282
Accrued and other current liabilities 2,743
4,440
3,048
Total current liabilities 7,532
8,244
8,527
Long-Term Debt 1,102
115
117
Long-Term Debt - Related Party 3,842
4,021
4,160
Other Noncurrent Liabilities

Deferred income tax liabilities 752
920
1,430
Pension and other post employment benefits - noncurrent 6,039
6,377
5,538
Other noncurrent obligations 1,957
2,192
2,156
Total noncurrent liabilities 13,692
13,625
13,401
Commitments and contingent liabilities
Stockholders’ equity

Preferred stock, without par value – cumulative; 23,000,000 shares authorized;
issued at June 30, 2020, December 31, 2019, and June 30, 2019:

$4.50 Series – 1,673,000 shares (callable at $120) 169
169
169
$3.50 Series – 700,000 shares (callable at $102) 70
70
70
Common stock, $0.30 par value; 1,800,000,000 shares authorized; issued at June 30, 2020 - 200, December 31, 2019 - 200, and June 30, 2019 - 200 —
—
—
Additional paid-in capital 23,981
23,958
23,947
Retained earnings / (accumulated deficit) 580
(406 ) 172
Accumulated other comprehensive loss (3,845 ) (3,270 ) (2,375 )
Total E. I. du Pont de Nemours and Company stockholders’ equity 20,955
20,521
21,983
Noncontrolling interests 1
7
18
Total equity 20,956
20,528
22,001
Total Liabilities and Equity $ 42,180
$ 42,397
$ 43,929

See Notes to the Interim Consolidated Financial Statements beginning on page ~~78.~~75.

Table of Contents

E. I. du Pont de Nemours and Company

~~Condensed~~ Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended
June 30,
(In millions) 2020
2019¹
Operating activities
Net income (loss) $ 1,000
$ (441 )
Adjustments to reconcile net income (loss) to cash used for operating activities:

Depreciation and amortization 583
1,084
Benefit from deferred income tax (136 ) (473 )
Net periodic pension benefit (202 ) (146 )
Pension contributions (39 ) (92 )
Net loss (gain) on sales of property, businesses, consolidated companies, and investments 30
(67 )
Restructuring and asset related charges - net 249
238
Amortization of inventory step-up —
257
Goodwill impairment charge —
1,102
Loss on early extinguishment of debt —
13
Other net loss 185
172
Changes in operating assets and liabilities - net (2,590 ) (2,754 )
Cash used for operating activities (920 ) (1,107 )
Investing activities

Capital expenditures (202 ) (834 )
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested 18
125
Acquisitions of businesses - net of cash acquired —
(9 )
Proceeds from sales of ownership interests in nonconsolidated affiliates —
21
Purchases of investments (361 ) (13 )
Proceeds from sales and maturities of investments 298
37
Other investing activities - net (5 ) (1 )
Cash used for investing activities (252 ) (674 )
Financing activities

Net change in borrowings (less than 90 days) 966
173
Proceeds from related party debt 67
4,160
Payments on related party debt (246 ) —
Proceeds from debt 2,434
1,001
Payments on debt (879 ) (6,803 )
Proceeds from exercise of stock options 17
39
Payment for acquisition of subsidiary's interest from the non-controlling 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 (34 ) (42 )
Cash provided by financing activities 2,265
(666 )
Effect of exchange rate changes on cash, cash equivalents and restricted cash (95 ) (64 )
Increase (decrease) in cash, cash equivalents and restricted cash 998
(2,511 )
Cash, cash equivalents and restricted cash at beginning of period 2,173
5,024
Cash, cash equivalents and restricted cash at end of period $ 3,171
$ 2,513

^1. ~~The cash flows for the six months ended June 30, 2019 includes cash flows of EID's ECP and Specialty Products Entities.~~


	Six Months Ended June 30,
(In millions)	2021		2020
Operating activities
Net income	$	1,555	$	1,000
Adjustments to reconcile net income to cash used for operating activities:
Depreciation and amortization	617		583
Provision for (benefit from) deferred income tax	124		(136)
Net periodic pension and OPEB benefit, net	(641)		(168)
Pension and OPEB contributions	(149)		(167)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments	(1)		30
Restructuring and asset related charges - net	235		249
Other net loss	143		185
Changes in assets and liabilities, net
Accounts and notes receivable	(1,957)		(1,712)
Inventories	1,334		1,271
Accounts payable	(525)		(717)
Deferred revenue	(1,931)		(2,147)
Other assets and liabilities	533		809
Cash used for operating activities	(663)		(920)
Investing activities
Capital expenditures	(269)		(202)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested	26		18
Investments in and loans to nonconsolidated affiliates	(1)		0
Purchases of investments	(56)		(361)
Proceeds from sales and maturities of investments	285		298
Other investing activities - net	(2)		(5)
Cash used for investing activities	(17)		(252)
Financing activities
Net change in borrowings (less than 90 days)	254		966
Proceeds from related party debt	29		67
Payments on related party debt	(743)		(246)
Proceeds from debt	419		2,434
Payments on debt	0		(879)
Proceeds from exercise of stock options	66		17
Payment for acquisition of subsidiary's interest from the non-controlling interest	0		(60)

Other financing activities	(32)		(34)
Cash (used for) provided by financing activities	(7)		2,265
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(14)		(95)
(Decrease) / increase in cash, cash equivalents and restricted cash	(701)		998
Cash, cash equivalents and restricted cash at beginning of period	3,873		2,173
Cash, cash equivalents and restricted cash at end of period	$	3,172	$	3,171

See Notes to the Interim Consolidated Financial Statements beginning on page ~~78.~~75.

Table of Contents

E. I. du Pont de Nemours and Company

Consolidated Statements of Equity (Unaudited)


(In millions)	Preferred Stock		Common Stock		Add. Paid-in Capital		Divisional Equity			Retained Earnings (Accumulated deficit)			Accum. Other Comp Loss			Non-controlling Interests			Total Equity			(In millions)	Preferred Stock		Common Stock		Additional Paid-in Capital "APIC"		(Accumulated Deficit) Retained Earnings		Accum. Other Comp (Loss) Income		Treasury Stock		Non-controlling Interests		Total Equity
2019
Balance at January 1, 2019	$	—	$	—	$	—	$	78,259		$	—		$	(3,360	)	$	254		$	75,153
2020																						2020
Balance at January 1, 2020																						Balance at January 1, 2020	$	239	$	0	$	23,958	$	(406)	$	(3,270)	$	—	$	7	$	20,528
Net income							166									10			176			Net income							250						8		258
Other comprehensive loss													(74		)				(74		)	Other comprehensive loss									(663)						(663)
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)							(2		)										(2		)	Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)					(2)										(2)
Distributions to DowDuPont							(317		)										(317		)
Issuance of DowDuPont stock							35												35
Issuance of Corteva stock																						Issuance of Corteva stock					14										14
Share-based compensation							18												18			Share-based compensation					2										2
Contributions from Dow							88												88
Other - net							(3		)										(3		)	Other - net					32		(2)								30
Balance at March 31, 2019	$	—	$	—	$	—	$	78,244		$	—		$	(3,434	)	$	264		$	75,074
Balance at March 31, 2020																						Balance at March 31, 2020	$	239	$	0	$	24,004	$	(158)	$	(3,933)	$	—	$	15	$	20,167
Net (loss) income							(806		)	180						9			(617		)	Net (loss) income							739						3		742
Other comprehensive loss													(155		)				(155		)	Other comprehensive loss									88						88
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)										(5		)							(5		)	Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)							(3)								(3)
Contributions from DowDuPont							3,168												3,168
Issuance of DowDuPont stock							4												4

Issuance of Corteva stock																						Issuance of Corteva stock					3										3
Share-based compensation					11		44												55			Share-based compensation					19										19
Impact of Internal Reorganizations							(56,479		)				1,214			(231		)	(55,496		)
Reclassification of Divisional Equity to APIC	239				23,936		(24,175		)										—
Acquisition of a noncontrolling interest in consolidated subsidiaries																						Acquisition of a noncontrolling interest in consolidated subsidiaries					(37)								(15)		(52)

Other - net										(3		)				(24		)	(27		)	Other - net					(8)		2						(2)		(8)
Balance at June 30, 2019	$	239	$	—	$	23,947	$	—		$	172		$	(2,375	)	$	18		$	22,001
Balance at June 30, 2020																						Balance at June 30, 2020	$	239	$	0	$	23,981	$	580	$	(3,845)	$	—	$	1	$	20,956


(In millions)	Preferred Stock		Common Stock		Additional Paid-in Capital "APIC"		Retained Earnings (Accumulated Deficit)		Accum. Other Comp (Loss) Income		Treasury Stock		Non-controlling Interests		Total Equity
2021
Balance at January 1, 2021	$	239	$	0	$	24,049	$	203	$	(2,890)	$	—	$	0	$	21,601
Net income							591						1		592
Other comprehensive loss									(477)						(477)
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)							(2)								(2)


Issuance of Corteva stock					38										38



Other - net					(4)										(4)
Balance at March 31, 2021	$	239	$	0	$	24,083	$	792	$	(3,367)	$	—	$	1	$	21,748
Net income							963								963
Other comprehensive income									122						122
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)							(3)								(3)


Issuance of Corteva stock					28										28
Share-based compensation					23		(1)								22



Other - net					(3)		1								(2)
Balance at June 30, 2021	$	239	$	0	$	24,131	$	1,752	$	(3,245)	$	—	$	1	$	22,878

(In millions) Preferred Stock Common Stock Add. Paid-in Capital Divisional Equity (Accumulated deficit) Retained Earnings Accum. Other Comp Loss Non-controlling Interests Total Equity
2020
Balance at January 1, 2020 $ 239
$ —
$ 23,958

$ (406 ) $ (3,270 ) $ 7
$ 20,528
Net income

250

8
258
Other comprehensive loss

(663 )

(663 )
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share)

(2 )

(2 )
Issuance of Corteva stock

14

14
Share-based compensation

2

2
Other - net

32

(2 )

30
Balance at March 31, 2020 $ 239
$ —
$ 24,004

$ (158 ) $ (3,933 ) $ 15
$ 20,167
Net income 739
3
742
Other comprehensive income 88
88
Preferred dividends ($4.50 Series - $1.125 per share, $3.50 Series - $0.875 per share) (3 ) (3 )
Issuance of Corteva stock 3
3
Share-based compensation 19
19
Acquisition of a noncontrolling interest in consolidated subsidiaries (37 ) (15 ) (52 )
Other - net (8 ) 2
(2 ) (8 )
Balance at June 30, 2020 $ 239
$ —
$ 23,981

$ 580
$ (3,845 ) $ 1
$ 20,956

See Notes to the Interim Consolidated Financial Statements beginning on page ~~78.~~

75.

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



			E. I. du Pont de Nemours and Company
			Notes to the Consolidated Financial Statements (Unaudited)

Table of Contents


Note		Page
1	Basis of Presentation	76
2	Related Party Transactions	77
3	Segment Information	77

Note Page
1
Basis of Presentation
79
2
Related Party Transactions
80
3
Segment Information
80

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION

As a result of the Business Realignment and the Internal Reorganization, Corteva, Inc. owns 100% of the outstanding common stock of EID. EID is a subsidiary of Corteva, Inc. and continues to be a reporting company, subject to the requirements of the Exchange Act. The primary differences between Corteva, Inc. and EID are outlined below:

•

•Preferred Stock - EID has preferred stock outstanding to third parties which is accounted for as a non-controlling 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 consolidated financial statements at the standalone level (including the associated interest).

•Capital Structure - At June 30, 2021, Corteva, Inc.'s capital structure consists of 734,421,000 issued shares of common stock, par value $0.01 per share.

- EID has preferred stock outstanding to third parties which is accounted for as a non-controlling 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 June 30, 2020, Corteva, Inc.'s capital structure consists of~~ ~~748,485,000~~ ~~issued shares of common stock, par value $0.01 per share.~~

The accompanying footnotes relate to EID only, and not to Corteva, Inc., and are presented to show differences between EID and Corteva, Inc.

For the footnotes listed below, refer to the following Corteva, Inc. footnotes:

•Note 1 - Summary of Significant Accounting Policies - refer to page 9 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 2 - Recent Accounting Guidance - refer to page 109 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 3 - Divestitures and Other Transactions - refer to page 9 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 4 - Revenue - refer to page 11 of the Corteva, Inc. interim Consolidated Financial Statements

~~Note 4 - Revenue - refer to page 14 of the Corteva, Inc. interim Consolidated Financial Statements~~

•Note 5 - Restructuring and Asset Related Charges - Net - refer to page 14 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 6 - Supplementary Information - refer to page 16 of the Corteva, Inc. interim Consolidated Financial Statements


•	~~Note 6 - Related Parties - Differences exist between Corteva, Inc. and EID; refer to EID Note~~ 2 ~~- Related Party Transactions, below~~

Note 7 - ~~Supplementary Information~~Income Taxes - refer to page 18 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 8 - ~~Income Taxes~~Earnings Per Share of Common Stock - Not applicable for EID

•Note 9 - Accounts and Notes Receivable - Net - refer to page 20 of the Corteva, Inc. interim Consolidated Financial Statements

~~Note 9 - Earnings Per Share of Common Stock - Not applicable for EID~~

•Note 10 - ~~Accounts~~Inventories - refer to page 21 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 11 - Other Intangible Assets - refer to page 21 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 12 - Short-Term Borrowings, Long-Term Debt and ~~Notes Receivable - Net~~Available Credit Facilities - refer to page 22 of the Corteva, Inc. interim Consolidated Financial ~~Statements~~Statements. In addition, EID has a related party loan payable to Corteva, Inc.; refer to EID Note 2 - Related Party Transactions, below

•Note 1113 - ~~Inventories~~Commitments and Contingent Liabilities - refer to page 23 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 1214 - ~~Other Intangible Assets~~Stockholders' Equity - refer to page 2329 of the Corteva, Inc. interim Consolidated Financial Statements


•	Note 13 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities - refer to page 24 of the Corteva, Inc. interim Consolidated Financial Statements. In addition, EID has a related party loan payable to Corteva, Inc.; refer to EID Note 2 ~~- Related Party Transactions, below~~

~~Note 14 - Commitments and Contingent Liabilities - refer to page 26 of the Corteva, Inc. interim Consolidated Financial Statements~~

Note 15 ~~- Stockholders' Equity - refer to page 31 of the Corteva, Inc. interim Consolidated Financial Statements~~

~~Note 16~~ - Pension Plans and Other Post Employment Benefits - refer to page 3432 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 1716 - Financial Instruments - refer to page 3532 of the Corteva, Inc. interim Consolidated Financial Statements

•Note 1817 - Fair Value Measurements - refer to page 4038 of the Corteva, Inc. interim Consolidated Financial Statements


•	~~Note 19 - Segment Information - Differences exist between Corteva, Inc. and EID; refer to EID Note~~ 3 ~~- Segment Information, below~~

•Note 18 - Segment Information - Differences exist between Corteva, Inc. and EID; refer to EID Note 3 - Segment Information, below

Table of Contents

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 2 - RELATED PARTY TRANSACTIONS

~~Refer to page 18 of the Corteva, Inc. interim Consolidated Financial Statements for discussion of related party transactions with Historical Dow, DowDuPont, and DuPont.~~

Transactions with Corteva

In the second quarter of 2019, EID entered into a related party revolving loan from Corteva, Inc., with a maturity date in 2024. As of June 30, ~~2020,~~2021, December 31, ~~2019,~~2020, and June 30, ~~2019,~~2020, the outstanding related party loan balance was ~~$3,842~~$2,745 million, ~~$4,021~~$3,459 million, and ~~$4,160~~$3,842 million respectively (which approximates fair value), with interest rates of ~~1.80%~~1.52%, ~~3.27%~~1.62%, and ~~4.12%~~1.80%, respectively, and is reflected as long-term debt - related party in EID's interim ~~Condensed~~ Consolidated Balance Sheets. Additionally, EID has incurred tax deductible interest expense of $13 million and $28 million for the three and six months ended June 30, 2021, respectively, and $31 million and $63 million for the three and six months ended June 30, 2020, respectively, ~~and $30 million for the three and six months ended June 30, 2019~~ associated with the related party loan from Corteva, Inc.

As of June 30, ~~2020,~~2021, EID had payables to Corteva, Inc., ~~the parent company,~~ of $57 million and $91 million included in accrued and other current liabilities and other noncurrent obligations, respectively, $92 million at December 31, 2020 included in both accrued and other current liabilities and other noncurrent obligations, respectively, and $119 million and $82 million ~~($119 million and $154 million at December 31, 2019 and $88 million and $180 million~~ at June 30, ~~2019, respectively)~~2020, included in accrued and other current liabilities and other noncurrent obligations, respectively, in the interim ~~Condensed~~ Consolidated Balance Sheets related to Corteva's indemnification liabilities to Dow and DuPont per the Separation Agreements (refer to page 119 of the Corteva, Inc. interim Consolidated Financial Statements for further details of the Separation Agreements).

NOTE 3 - SEGMENT INFORMATION

There are no differences in reporting structure or segments between Corteva, Inc. and EID. In addition, there are no differences between Corteva, Inc. and EID segment net sales, segment operating EBITDA, ~~or pro forma segment operating EBITDA,~~ segment assets, or significant items by segment; refer to page 4139 of the Corteva, Inc. interim Consolidated Financial Statements for background information on the segments as well as further details regarding segment metrics. The tables below reconcile ~~segment pro forma operating EBITDA to loss~~income from continuing operations after income taxes to segment operating EBITDA, as differences exist between Corteva, Inc. and EID.

Reconciliation to interim Consolidated Financial Statements


Income from continuing operations after income taxes to segment operating EBITDA (In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Income from continuing operations after income taxes	$	1,008	$	742	$	1,610	$	999
Provision for income taxes on continuing operations	281		71		455		190
Income from continuing operations before income taxes	1,289		813		2,065		1,189
Depreciation and amortization	313		300		617		583
Interest income	(18)		(9)		(39)		(27)
Interest expense	20		45		42		87
Exchange losses (gains) - net	14		(1)		49		60
Non-operating benefits - net	(315)		(91)		(626)		(164)

Mark-to-market losses on certain foreign currency contracts not designated as hedges1	23				22
Significant items	135		179		235		302

Corporate expenses	32		29		66		54
Segment operating EBITDA	$	1,493	$	1,265	$	2,431	$	2,084

Income (loss) from continuing operations after income taxes to segment operating EBITDA

(In millions)
Three Months Ended
June 30, Six Months Ended
June 30,
2020 2019 2020
2019¹
Income from continuing operations after income taxes $ 742
$ 460
$ 999
$ 276
Provision for income taxes on continuing operations 71
263
190
196
Income from continuing operations before income taxes 813
723
1,189
472
Depreciation and amortization 300
227
583
485
Interest income (9 ) (17 ) (27 ) (33 )
Interest expense 45
64
87
123
Exchange (gains) losses - net (1 ) 32
60
59
Non-operating benefits - net (91 ) (32 ) (164 ) (74 )
Significant items 179
455
302
640
Pro forma adjustments 298
Corporate expenses 29
34
54
61
Segment operating EBITDA $ 1,265
$ 1,486
$ 2,084
$ 2,031


1.	~~Period is presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X.~~

Segment assets to total assets (in millions)
June 30, 2020 December 31, 2019 June 30, 2019
Total segment assets $ 37,390
$ 38,879
$ 39,828
Corporate assets 4,790
3,518
4,101
Total assets $ 42,180
$ 42,397
$ 43,929

8077



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



			Page
Explanatory Note
Part I		Financial Information

Item 1.		Consolidated Financial Statements (Unaudited)
		Consolidated Statements of Operations	3
		Consolidated Statements of Comprehensive Income ~~(Loss)~~	4
		~~Condensed~~ Consolidated Balance Sheets	5
		~~Condensed~~ Consolidated Statements of Cash Flows	6
		Consolidated Statements of Equity	7
		Notes to the Interim Consolidated Financial Statements (Unaudited)	8

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	4442
		Cautionary Statements About Forward-Looking Statements	4442
		Recent Developments	4543
		Overview	4644
		Selected Financial Data	4846
		Results of Operations	4947

		~~Supplemental Unaudited Pro Forma Financial Information~~Recent Accounting Pronouncements	5451
		~~Recent Accounting Pronouncements~~Segment Reviews	5552
		~~Segment Reviews~~Non-GAAP Financial Measures	56
		~~Non-GAAP Financial Measures~~	59
	Liquidity & Capital Resources	6158

		~~Critical Accounting Estimates~~Contractual Obligations	6460
		~~Contractual Obligations~~	65

Item 3.		Quantitative and Qualitative Disclosures About Market Risk	6560
Item 4.		Controls and Procedures	6661

Part II		Other Information

Item 1.		Legal Proceedings	6762
Item 1A.		Risk Factors	6965
Item 5.2.		~~Other Information~~Unregistered Sales of Equity Securities and Use of Proceeds	7066
Item 6.5.		~~Exhibits~~Other Information	7167
~~Exhibit Index~~Item 6.		Exhibits	7168
~~Signature~~Exhibit Index			7268
Signature			69
Consolidated Financial Statements of E.I. du Pont de Nemours and Company (Unaudited)			7370



☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


1.	the April 1, 2019 transfer of the assets and liabilities aligned with EID’s material science businesses including EID’s ethylene and ethylene copolymers business, excluding its ethylene acrylic elastomers business, (“EID ECP”) to DowDuPont, which were ultimately conveyed by DowDuPont to Dow;


2.	~~the May 1, 2019 distribution of EID legal entities containing the assets and liabilities of EID’s specialty products business (the “EID Specialty Products Entities”) to DowDuPont;~~


3.	~~the May 2, 2019 conveyance of Historical Dow's agriculture business ("Dow Ag Entities") to EID; and~~


4.	~~the May 31, 2019 contribution of EID to Corteva, Inc. Refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information.~~


(In millions, except share amounts)	June 30, 2020			December 31, 2019			June 30, 2019			(In millions, except share amounts)	June 30, 2021		December 31, 2020		June 30, 2020
Assets										Assets
Current assets										Current assets
Cash and cash equivalents	$	2,809		$	1,764		$	2,077		Cash and cash equivalents	$	2,861	$	3,526	$	2,809
Marketable securities	60			5			6			Marketable securities	39		269		60
Accounts and notes receivable - net	6,772			5,528			7,434			Accounts and notes receivable - net	6,792		4,926		6,772
Inventories	3,589			5,032			3,918			Inventories	3,541		4,882		3,589
Other current assets	1,192			1,190			1,010			Other current assets	1,052		1,165		1,192

Total current assets	14,422			13,519			14,445			Total current assets	14,285		14,768		14,422
Investment in nonconsolidated affiliates	62			66			64			Investment in nonconsolidated affiliates	68		66		62
Property, plant and equipment - net of accumulated depreciation (June 30, 2020 - $3,565; December 31, 2019 - $3,326; June 30, 2019 - $3,207)	4,293			4,546			4,543
Property, plant and equipment										Property, plant and equipment	8,343		8,253		7,858
Less: Accumulated depreciation										Less: Accumulated depreciation	4,002		3,857		3,565
Net property, plant and equipment										Net property, plant and equipment	4,341		4,396		4,293
Goodwill	10,069			10,229			10,249			Goodwill	10,207		10,269		10,069
Other intangible assets	11,070			11,424			11,832			Other intangible assets	10,413		10,747		11,070
Deferred income taxes	290			287			325			Deferred income taxes	442		464		290
Other assets	1,974			2,326			2,464			Other assets	1,740		1,939		1,974

Total Assets	$	42,180		$	42,397		$	43,922		Total Assets	$	41,496	$	42,649	$	42,180
Liabilities and Equity										Liabilities and Equity
Current liabilities										Current liabilities
Short-term borrowings and finance lease obligations	$	1,529		$	7		$	2,058		Short-term borrowings and finance lease obligations	$	677	$	3	$	1,529
Accounts payable	2,891			3,702			3,139			Accounts payable	3,070		3,615		2,891
Income taxes payable	369			95			282			Income taxes payable	234		123		369
Deferred revenue										Deferred revenue	748		2,662		431
Accrued and other current liabilities	2,740			4,434			3,135			Accrued and other current liabilities	2,523		2,145		2,309

Total current liabilities	7,529			8,238			8,614			Total current liabilities	7,252		8,548		7,529
Long-Term Debt	1,102			115			117			Long-Term Debt	1,101		1,102		1,102
Other Noncurrent Liabilities										Other Noncurrent Liabilities
Deferred income tax liabilities	752			920			1,430			Deferred income tax liabilities	935		893		752
Pension and other post employment benefits - noncurrent	6,039			6,377			5,538			Pension and other post employment benefits - noncurrent	4,767		5,176		6,039
Other noncurrent obligations	1,957			2,192			2,156			Other noncurrent obligations	1,816		1,867		1,957

Total noncurrent liabilities	9,850			9,604			9,241			Total noncurrent liabilities	8,619		9,038		9,850
Commitments and contingent liabilities										Commitments and contingent liabilities
Stockholders’ equity										Stockholders’ equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at June 30, 2020 - 748,485,000; December 31, 2019 - 748,577,000; and June 30, 2019 - 748,815,000	7			7			7
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at June 30, 2021 - 734,421,000; December 31, 2020 - 743,458,000; and June 30, 2020 - 748,485,000										Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at June 30, 2021 - 734,421,000; December 31, 2020 - 743,458,000; and June 30, 2020 - 748,485,000	7		7		7
Additional paid-in capital	27,891			27,997			28,081			Additional paid-in capital	27,682		27,707		27,891
Retained earnings / (accumulated deficit)	508			(425		)	97

Retained earnings										Retained earnings	941		0		508
Accumulated other comprehensive loss	(3,845		)	(3,270		)	(2,375		)	Accumulated other comprehensive loss	(3,245)		(2,890)		(3,845)
Total Corteva stockholders’ equity	24,561			24,309			25,810			Total Corteva stockholders’ equity	25,385		24,824		24,561
Noncontrolling interests	240			246			257			Noncontrolling interests	240		239		240
Total equity	24,801			24,555			26,067			Total equity	25,625		25,063		24,801
Total Liabilities and Equity	$	42,180		$	42,397		$	43,922		Total Liabilities and Equity	$	41,496	$	42,649	$	42,180


Note		Page
1	Summary of Significant Accounting Policies	9
2	Recent Accounting Guidance	9
3	Divestitures and Other Transactions	9
4	Revenue	11
5	Restructuring and Asset Related Charges - Net	14
6	Supplementary Information	16
7	Income Taxes	18
8	Earnings Per Share of Common Stock	19
9	Accounts and Notes Receivable - Net	20
10	Inventories	21
11	Other Intangible Assets	21
12	Short-Term Borrowings, Long-Term Debt and Available Credit Facilities	22
13	Commitments and Contingent Liabilities	23
14	Stockholders' Equity	29
15	Pension Plans and Other Post Employment Benefits	32
16	Financial Instruments	32
17	Fair Value Measurements	38
18	Segment Information	39



(In millions)	Six Months Ended June 30, 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
Income from discontinued operations before income taxes	23
Provision for income taxes on discontinued operations	4
Income from discontinued operations after income taxes	$	19



(In millions)	Six Months Ended June 30, 2019
Depreciation	$	28
Amortization of intangibles	$	23
Capital expenditures	$	16



(In millions)	Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
Net sales	$	1,214		$	5,030
Cost of goods sold	817			3,352
Research and development expense	51			204
Selling, general and administrative expenses	172			573
Amortization of intangibles	66			267
Restructuring and asset related charges - net	72			115
Integration and separation costs	89			253
Goodwill impairment	1,102			1,102
Other (expense) income - net	(82		)	38
Loss from discontinued operations before income taxes	(1,237		)	(798		)
Provision for income taxes on discontinued operations	6			104
Loss from discontinued operations after income taxes	$	(1,243	)	$	(902	)


Contract Balances	June 30, 2020		December 31, 2019		June 30, 2019		Contract Balances	June 30, 2021		December 31, 2020		June 30, 2020
(In millions)	June 30, 2020		December 31, 2019		June 30, 2019		(In millions)	June 30, 2021		December 31, 2020		June 30, 2020
Accounts and notes receivable - trade¹	$	5,787	$	4,396	$	6,102	Accounts and notes receivable - trade1	$	5,763	$	3,917	$	5,787
Contract assets - current²	$	21	$	20	$	19	Contract assets - current2	$	23	$	22	$	21
Contract assets - noncurrent³	$	51	$	49	$	48	Contract assets - noncurrent3	$	56	$	54	$	51
Deferred revenue - current⁴	$	431	$	2,584	$	583
Deferred revenue - noncurrent⁵	$	109	$	108	$	118
Deferred revenue - current							Deferred revenue - current	$	748	$	2,662	$	431
Deferred revenue - noncurrent4							Deferred revenue - noncurrent4	$	111	$	116	$	109


^1. 1.Included in accounts and notes receivable - net in the interim Consolidated Balance Sheets. 2.Included in other current assets in the interim Consolidated Balance Sheets. 3.Included in other assets in the interim Consolidated Balance Sheets. 4.Included in other noncurrent obligations in the interim Consolidated Balance Sheets.	~~Included in accounts and notes receivable - net in the interim Condensed Consolidated Balance Sheets.~~


^2.	~~Included in other current assets in the interim Condensed Consolidated Balance Sheets.~~


^3.	~~Included in other assets in the interim Condensed Consolidated Balance Sheets.~~


^4.	~~Included in accrued and other current liabilities in the interim Condensed Consolidated Balance Sheets.~~


^5.	~~Included in other noncurrent obligations in the interim Condensed Consolidated Balance Sheets.~~


1.	~~Prior periods have been reclassified to conform to current period presentation.~~


	Three Months Ended June 30,		Six Months Ended June 30,
(In millions)	2021		2021
Seed	$	3	$	17
Crop Protection	9		37
Corporate expenses	9		56
Total	$	21	$	110


(In millions)	Severance and Related Benefit Costs		Asset Related1		Contract Termination2		Total
Balance at December 31, 2020	$	0	$	0	$	0	$	0
Charges to income from continuing operations	49		22		39		110
Payments	(9)		0		(23)		(32)
Asset write-offs	0		(22)		0		(22)
Balance at June 30, 2021	$	40	$	0	$	16	$	56



(In millions)	Severance and Related Benefit Costs			Asset Related			Total
Balance at December 31, 2019	$	—		$	—		$	—
Charges to income from continuing operations for the six months ended June 30, 2020	46			58			104
Payments	(2		)	(2		)	(4		)
Asset write-offs	—			(52		)	(52		)
Balance at June 30, 2020	$	44		$	4		$	48



(In millions)	Severance and Related Benefit Costs			Costs Associated with Exit and Disposal Activities¹			Total
Balance at December 31, 2019	$	29		$	40		$	69
Payments	(13		)	(1		)	(14		)
Balance at June 30, 2020	$	16		$	39		$	55


1.	The six months ended June 30, 2020 includes a loss of $(53) million relating to the expected sale of the La Porte site, for which the company signed an agreement in 2020. The six months ended June 30, 2019 includes a loss of $(24) million relating to DAS’s sale of a joint venture related to synergy actions.


2.	Includes non-service related components of net periodic benefit credits (costs) (interest cost, expected return on plan assets, amortization of unrecognized (gain) loss, amortization of prior service benefit and settlement (loss) gain).


3.	~~Miscellaneous expenses - net, includes losses related to loss on sale of receivables, bank charges and other items.~~



(In millions)
Balance at December 31, 2019	$	174
Additions charged to expenses	124
Write-offs charged against allowance	(6		)
Recoveries collected	(78		)
Other	(7		)
Balance at June 30, 2020	$	207



	As of June 30, 2020
(In millions)	Indemnification Asset		Accrual balance³		Potential exposure above amount accrued³
Environmental Remediation Stray Liabilities
Chemours related obligations - subject to indemnity^1,2	$	158	$	158	$	289
Other discontinued or divested businesses obligations¹			88		222

Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont²	34		34		62

Environmental remediation liabilities not subject to indemnity			70		47
Total	$	192	$	350	$	620



(In millions)	Cumulative Translation Adjustment¹			Derivative Instruments			Pension Benefit Plans			Other Benefit Plans			Total
2019
Balance January 1, 2019	$	(2,793	)	$	(26	)	$	(620	)	$	79		$	(3,360	)
Other comprehensive (loss) income before reclassifications	(174		)	12			6			(85		)	(241		)
Amounts reclassified from accumulated other comprehensive loss	—			11			2			(1		)	12
Net other comprehensive (loss) income	(174		)	23			8			(86		)	(229		)
Impact of Internal Reorganizations	1,113			—			101			—			1,214
Balance June 30, 2019	$	(1,854	)	$	(3	)	$	(511	)	$	(7	)	$	(2,375	)

2020
Balance January 1, 2020	$	(1,944	)	$	2		$	(1,247	)	$	(81	)	$	(3,270	)
Other comprehensive (loss) income before reclassifications	(575		)	(22		)	(9		)	2			(604		)
Amounts reclassified from accumulated other comprehensive loss	—			26			3			—			29
Net other comprehensive (loss) income	(575		)	4			(6		)	2			(575		)
Balance June 30, 2020	$	(2,519	)	$	6		$	(1,253	)	$	(79	)	$	(3,845	)


^1.	Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.


	Amount of Gain (Loss) Recognized in OCI - Pre-Tax1
	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2021		2020		2021		2020
Derivatives designated as hedging instruments:
Net investment hedges:
Foreign currency contracts	$	(7)	$	(5)	$	14	$	4
Cash flow hedges:
Foreign currency contracts	(37)		4		(6)		23
Commodity contracts	92		(26)		128		(60)
Total derivatives designated as hedging instruments	$	48	$	(27)	$	136	$	(33)