(State or other jurisdiction | (Commission | (I.R.S. Employer | ||||||||||||
of Incorporation) | File Number) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Press Release dated February 3, 2021 | |||||
Financial Statement Schedules dated February 3, 2021 | |||||
104 | The cover page from the Company’s Current Report on Form 8-K, formatted in Inline XBRL |
CORTEVA, INC. | |||||
(Registrant) | |||||
/s/ Brian Titus | |||||
Brian Titus | |||||
Vice President and Controller |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net sales | $ | 3,207 | $ | 2,983 | $ | 14,217 | $ | 13,846 | |||||||||||||||
Cost of goods sold | 2,112 | 1,968 | 8,507 | 8,575 | |||||||||||||||||||
Research and development expense | 305 | 290 | 1,142 | 1,147 | |||||||||||||||||||
Selling, general and administrative expenses | 724 | 747 | 3,043 | 3,065 | |||||||||||||||||||
Amortization of intangibles | 181 | 161 | 682 | 475 | |||||||||||||||||||
Restructuring and asset related charges - net | 37 | 55 | 335 | 222 | |||||||||||||||||||
Integration and separation costs | — | 50 | — | 744 | |||||||||||||||||||
Other income - net | 92 | 125 | 212 | 215 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 13 | |||||||||||||||||||
Interest expense | 10 | 24 | 45 | 136 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | (70) | (187) | 675 | (316) | |||||||||||||||||||
Benefit from income taxes on continuing operations | (169) | (145) | (81) | (46) | |||||||||||||||||||
Income (loss) from continuing operations after income taxes | 99 | (42) | 756 | (270) | |||||||||||||||||||
(Loss) income from discontinued operations after income taxes | (56) | 24 | (55) | (671) | |||||||||||||||||||
Net income (loss) | 43 | (18) | 701 | (941) | |||||||||||||||||||
Net income attributable to noncontrolling interests | 2 | 3 | 20 | 18 | |||||||||||||||||||
Net income (loss) attributable to Corteva | $ | 41 | $ | (21) | $ | 681 | $ | (959) | |||||||||||||||
Basic earnings (loss) per share of common stock: | |||||||||||||||||||||||
Basic earnings (loss) per share of common stock from continuing operations | $ | 0.13 | $ | (0.06) | $ | 0.98 | $ | (0.38) | |||||||||||||||
Basic (loss) earnings per share of common stock from discontinued operations | (0.08) | 0.03 | (0.07) | (0.90) | |||||||||||||||||||
Basic earnings (loss) per share of common stock | $ | 0.05 | $ | (0.03) | $ | 0.91 | $ | (1.28) | |||||||||||||||
Diluted earnings (loss) per share of common stock: | |||||||||||||||||||||||
Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.13 | $ | (0.06) | $ | 0.98 | $ | (0.38) | |||||||||||||||
Diluted (loss) earnings per share of common stock from discontinued operations | (0.08) | 0.03 | (0.07) | (0.90) | |||||||||||||||||||
Diluted earnings (loss) per share of common stock | $ | 0.05 | $ | (0.03) | $ | 0.91 | $ | (1.28) | |||||||||||||||
Average number of shares outstanding used in earnings per share (EPS) calculation (in millions) | |||||||||||||||||||||||
Basic | 746.3 | 749.6 | 748.7 | 749.5 | |||||||||||||||||||
Diluted | 749.7 | 749.6 | 751.2 | 749.5 |
December 31, 2020 | December 31, 2019 | |||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 3,526 | $ | 1,764 | ||||||||||
Marketable securities | 269 | 5 | ||||||||||||
Accounts and notes receivable, net | 4,926 | 5,528 | ||||||||||||
Inventories | 4,882 | 5,032 | ||||||||||||
Other current assets | 1,165 | 1,190 | ||||||||||||
Total current assets | 14,768 | 13,519 | ||||||||||||
Investment in nonconsolidated affiliates | 66 | 66 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation December 31, 2020 - $3,857 and December 31, 2019 - $3,326 | 4,396 | 4,546 | ||||||||||||
Goodwill | 10,269 | 10,229 | ||||||||||||
Other intangible assets | 10,747 | 11,424 | ||||||||||||
Deferred income taxes | 464 | 287 | ||||||||||||
Other assets | 1,939 | 2,326 | ||||||||||||
Total Assets | $ | 42,649 | $ | 42,397 | ||||||||||
Liabilities and Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Short-term borrowings and finance lease obligations | $ | 3 | $ | 7 | ||||||||||
Accounts payable | 3,615 | 3,702 | ||||||||||||
Income taxes payable | 123 | 95 | ||||||||||||
Accrued and other current liabilities | 4,807 | 4,434 | ||||||||||||
Total current liabilities | 8,548 | 8,238 | ||||||||||||
Long-Term Debt | 1,102 | 115 | ||||||||||||
Other Noncurrent Liabilities | ||||||||||||||
Deferred income tax liabilities | 893 | 920 | ||||||||||||
Pension and other post employment benefits - noncurrent | 5,176 | 6,377 | ||||||||||||
Other noncurrent obligations | 1,867 | 2,192 | ||||||||||||
Total noncurrent liabilities | 9,038 | 9,604 | ||||||||||||
Commitments and contingent liabilities | ||||||||||||||
Stockholders' equity | ||||||||||||||
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at December 31, 2020 - 743,458,000 and December 31, 2019 - 748,577,000 | 7 | 7 | ||||||||||||
Additional paid-in capital | 27,707 | 27,997 | ||||||||||||
Accumulated deficit | — | (425) | ||||||||||||
Accumulated other comprehensive loss | (2,890) | (3,270) | ||||||||||||
Total Corteva stockholders' equity | 24,824 | 24,309 | ||||||||||||
Noncontrolling interests | 239 | 246 | ||||||||||||
Total equity | 25,063 | 24,555 | ||||||||||||
Total Liabilities and Equity | $ | 42,649 | $ | 42,397 |
Twelve Months Ended December 31, | |||||||||||
2020 | 20191 | ||||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 701 | $ | (941) | |||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities | |||||||||||
Depreciation and amortization | 1,177 | 1,599 | |||||||||
Benefit from deferred income tax | (330) | (477) | |||||||||
Net periodic pension benefit | (409) | (264) | |||||||||
Pension contributions | (62) | (121) | |||||||||
Net loss (gain) on sales of property, businesses, consolidated companies, and investments | 3 | (142) | |||||||||
Goodwill impairment charge | — | 1,102 | |||||||||
Loss on early extinguishment of debt | — | 13 | |||||||||
Restructuring and asset related charges - net | 335 | 339 | |||||||||
Amortization of inventory step-up | — | 272 | |||||||||
Other net loss | 290 | 246 | |||||||||
Changes in operating assets and liabilities, net | 359 | (556) | |||||||||
Cash provided by operating activities | 2,064 | 1,070 | |||||||||
Investing activities | |||||||||||
Capital expenditures | (475) | (1,163) | |||||||||
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 83 | 249 | |||||||||
Acquisitions of businesses - net of cash acquired | — | (10) | |||||||||
Investments in and loans to nonconsolidated affiliates | (1) | (10) | |||||||||
Proceeds from sale of ownership interest in nonconsolidated affiliates | — | 21 | |||||||||
Purchases of investments | (995) | (138) | |||||||||
Proceeds from sales and maturities of investments | 721 | 160 | |||||||||
Other investing activities - net | (7) | (13) | |||||||||
Cash used for investing activities | (674) | (904) | |||||||||
Financing activities | |||||||||||
Net change in borrowings (less than 90 days) | — | (1,868) | |||||||||
Proceeds from debt | 2,439 | 1,001 | |||||||||
Payments on debt | (1,441) | (6,804) | |||||||||
Repurchase of common stock | (275) | (25) | |||||||||
Proceeds from exercise of stock options | 56 | 47 | |||||||||
Dividends paid to stockholders | (388) | (194) | |||||||||
Payment for acquisition of subsidiary's interest from the non-controlling interest | (60) | — | |||||||||
Distributions to DowDuPont | — | (317) | |||||||||
Contributions from Dow and DowDuPont | — | 7,396 | |||||||||
Cash transferred to DowDuPont at Internal Reorganizations | — | (2,053) | |||||||||
Debt extinguishment costs | — | (79) | |||||||||
Other financing activities, net | (28) | (33) | |||||||||
Cash provided by financing activities | 303 | (2,929) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7 | (88) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 1,700 | (2,851) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,173 | 5,024 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 3,873 | $ | 2,173 |
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 20192 | ||||||||||||||||||||
Net sales | $ | 3,207 | $ | 2,983 | $ | 14,217 | $ | 13,846 | |||||||||||||||
Cost of goods sold | 2,112 | 1,968 | 8,507 | 8,386 | |||||||||||||||||||
Research and development expense | 305 | 290 | 1,142 | 1,147 | |||||||||||||||||||
Selling, general and administrative expenses | 724 | 747 | 3,043 | 3,068 | |||||||||||||||||||
Amortization of intangibles | 181 | 161 | 682 | 475 | |||||||||||||||||||
Restructuring and asset related charges - net | 37 | 55 | 335 | 222 | |||||||||||||||||||
Integration and separation costs | — | 50 | — | 632 | |||||||||||||||||||
Other income - net | 92 | 125 | 212 | 215 | |||||||||||||||||||
Loss on early extinguishment of debt | — | — | — | 13 | |||||||||||||||||||
Interest expense | 10 | 24 | 45 | 91 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | (70) | (187) | 675 | 27 | |||||||||||||||||||
(Benefit from) provision for income taxes on continuing operations | (169) | (145) | (81) | 1 | |||||||||||||||||||
Income (loss) from continuing operations after income taxes | 99 | (42) | 756 | 26 | |||||||||||||||||||
Net income from continuing operations attributable to noncontrolling interests | 2 | 3 | 20 | 13 | |||||||||||||||||||
Net income (loss) from continuing operations attributable to Corteva | $ | 97 | $ | (45) | $ | 736 | $ | 13 | |||||||||||||||
Basic earnings (loss) per share of common stock from continuing operations | $ | 0.13 | $ | (0.06) | $ | 0.98 | $ | 0.02 | |||||||||||||||
Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.13 | $ | (0.06) | $ | 0.98 | $ | 0.02 | |||||||||||||||
Average number of shares outstanding used in earnings per share (EPS) calculation (in millions) | |||||||||||||||||||||||
Basic | 746.3 | 749.6 | 748.7 | 749.5 | |||||||||||||||||||
Diluted | 749.7 | 749.6 | 751.2 | 749.5 |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
SEGMENT NET SALES - SEED | 2020 | 20191 | 2020 | 20191 | ||||||||||||||||||||||
Corn | $ | 958 | $ | 962 | $ | 5,182 | $ | 5,126 | ||||||||||||||||||
Soybean | 63 | 74 | 1,445 | 1,387 | ||||||||||||||||||||||
Other oilseeds | 90 | 92 | 619 | 593 | ||||||||||||||||||||||
Other | 129 | 115 | 510 | 484 | ||||||||||||||||||||||
Seed | $ | 1,240 | $ | 1,243 | $ | 7,756 | $ | 7,590 | ||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
SEGMENT NET SALES - CROP PROTECTION | 2020 | 20191 | 2020 | 20191 | ||||||||||||||||||||||
Herbicides | $ | 965 | $ | 868 | $ | 3,280 | $ | 3,206 | ||||||||||||||||||
Insecticides | 546 | 494 | 1,764 | 1,652 | ||||||||||||||||||||||
Fungicides | 318 | 305 | 1,032 | 1,072 | ||||||||||||||||||||||
Other | 138 | 73 | 385 | 326 | ||||||||||||||||||||||
Crop Protection | $ | 1,967 | $ | 1,740 | $ | 6,461 | $ | 6,256 | ||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
GEOGRAPHIC NET SALES - SEED | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
North America 2 | $ | 505 | $ | 486 | $ | 4,795 | $ | 4,724 | ||||||||||||||||||
EMEA 3 | 206 | 178 | 1,468 | 1,378 | ||||||||||||||||||||||
Latin America | 449 | 494 | 1,117 | 1,130 | ||||||||||||||||||||||
Asia Pacific | 80 | 85 | 376 | 358 | ||||||||||||||||||||||
Rest of World 4 | 735 | 757 | 2,961 | 2,866 | ||||||||||||||||||||||
Net Sales | $ | 1,240 | $ | 1,243 | $ | 7,756 | $ | 7,590 | ||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
GEOGRAPHIC NET SALES - CROP PROTECTION | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
North America 2 | $ | 845 | $ | 643 | $ | 2,373 | $ | 2,205 | ||||||||||||||||||
EMEA 3 | 211 | 226 | 1,374 | 1,362 | ||||||||||||||||||||||
Latin America | 602 | 615 | 1,688 | 1,759 | ||||||||||||||||||||||
Asia Pacific | 309 | 256 | 1,026 | 930 | ||||||||||||||||||||||
Rest of World 4 | 1,122 | 1,097 | 4,088 | 4,051 | ||||||||||||||||||||||
Net Sales | $ | 1,967 | $ | 1,740 | $ | 6,461 | $ | 6,256 | ||||||||||||||||||
1. Prior periods have been reclassified to conform to current period presentation. | ||||||||||||||||||||||||||
2. Reflects U.S. & Canada | ||||||||||||||||||||||||||
3. Reflects Europe, Middle East, and Africa | ||||||||||||||||||||||||||
4. Reflects EMEA, Latin America, and Asia Pacific |
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2020 | |||||||||||||||||||||||||
As Reported | As Reported | |||||||||||||||||||||||||
Net Sales (GAAP) | $ | 3,207 | $ | 14,217 | ||||||||||||||||||||||
Less: Impacts from Currency and Portfolio | (249) | (758) | ||||||||||||||||||||||||
Organic Sales (Non-GAAP) | $ | 3,456 | $ | 14,975 | ||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
OPERATING EBITDA | As Reported | As Reported | As Reported | Pro Forma | ||||||||||||||||||||||
Seed | $ | (47) | $ | (26) | $ | 1,208 | $ | 1,040 | ||||||||||||||||||
Crop Protection | 327 | 277 | 1,004 | 1,066 | ||||||||||||||||||||||
Corporate Expenses | (44) | (27) | (125) | (119) | ||||||||||||||||||||||
Operating EBITDA (Non-GAAP) | $ | 236 | $ | 224 | $ | 2,087 | $ | 1,987 | ||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDA | As Reported | As Reported | As Reported | Pro Forma | ||||||||||||||||||||||
Income (loss) from continuing operations after income taxes (GAAP) | $ | 99 | $ | (42) | $ | 756 | $ | 26 | ||||||||||||||||||
(Benefit from) provision for income taxes on continuing operations | (169) | (145) | (81) | 1 | ||||||||||||||||||||||
(Loss) income from continuing operations before income taxes (GAAP) | (70) | (187) | 675 | 27 | ||||||||||||||||||||||
Depreciation and amortization | 309 | 289 | 1,177 | 1,000 | ||||||||||||||||||||||
Interest income | (18) | (13) | (56) | (59) | ||||||||||||||||||||||
Interest expense | 10 | 24 | 45 | 91 | ||||||||||||||||||||||
Exchange losses - net1 | 47 | 29 | 174 | 66 | ||||||||||||||||||||||
Non-operating benefits - net2 | (79) | (23) | (316) | (129) | ||||||||||||||||||||||
Significant items charge3 | 37 | 105 | 388 | 991 | ||||||||||||||||||||||
Operating EBITDA (Non-GAAP) | $ | 236 | $ | 224 | $ | 2,087 | $ | 1,987 |
PRICE - VOLUME - CURRENCY ANALYSIS | ||||||||||||||||||||||||||
REGION | ||||||||||||||||||||||||||
Q4 2020 vs. Q4 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
North America | $ | 221 | 20 | % | $ | 220 | 19 | % | 4 | % | 15 | % | 1 | % | — | % | ||||||||||
EMEA | 13 | 3 | % | 17 | 4 | % | 1 | % | 3 | % | (1) | % | — | % | ||||||||||||
Latin America | (58) | (5) | % | 194 | 17 | % | 9 | % | 8 | % | (22) | % | — | % | ||||||||||||
Asia Pacific | 48 | 14 | % | 42 | 12 | % | 2 | % | 10 | % | 2 | % | — | % | ||||||||||||
Rest of World | 3 | — | % | 253 | 14 | % | 6 | % | 8 | % | (14) | % | — | % | ||||||||||||
Total | $ | 224 | 8 | % | $ | 473 | 16 | % | 6 | % | 10 | % | (8) | % | — | % | ||||||||||
SEED | ||||||||||||||||||||||||||
Q4 2020 vs. Q4 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
North America | $ | 19 | 4 | % | $ | 18 | 4 | % | (5) | % | 9 | % | — | % | — | % | ||||||||||
EMEA | 28 | 16 | % | 37 | 21 | % | 5 | % | 16 | % | (5) | % | — | % | ||||||||||||
Latin America | (45) | (9) | % | 63 | 13 | % | 4 | % | 9 | % | (22) | % | — | % | ||||||||||||
Asia Pacific | (5) | (6) | % | (2) | (2) | % | (1) | % | (1) | % | (4) | % | — | % | ||||||||||||
Rest of World | (22) | (3) | % | 98 | 13 | % | 3 | % | 10 | % | (16) | % | — | % | ||||||||||||
Total | $ | (3) | — | % | $ | 116 | 9 | % | — | % | 9 | % | (9) | % | — | % | ||||||||||
CROP PROTECTION | ||||||||||||||||||||||||||
Q4 2020 vs. Q4 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
North America | $ | 202 | 31 | % | $ | 202 | 31 | % | 11 | % | 20 | % | — | % | — | % | ||||||||||
EMEA | (15) | (7) | % | (20) | (9) | % | (1) | % | (8) | % | 2 | % | — | % | ||||||||||||
Latin America | (13) | (2) | % | 131 | 21 | % | 14 | % | 7 | % | (23) | % | — | % | ||||||||||||
Asia Pacific | 53 | 21 | % | 44 | 17 | % | 2 | % | 15 | % | 3 | % | 1 | % | ||||||||||||
Rest of World | 25 | 2 | % | 155 | 14 | % | 8 | % | 6 | % | (12) | % | — | % | ||||||||||||
Total | $ | 227 | 13 | % | $ | 357 | 21 | % | 10 | % | 11 | % | (8) | % | — | % |
SEED PRODUCT LINE | ||||||||||||||||||||||||||
Q4 2020 vs. Q4 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
Corn2 | $ | (4) | — | % | $ | 103 | 11 | % | 2 | % | 9 | % | (11) | % | — | % | ||||||||||
Soybeans2 | (11) | (15) | % | (7) | (9) | % | 1 | % | (10) | % | (6) | % | — | % | ||||||||||||
Other oilseeds2 | (2) | (2) | % | — | — | % | (16) | % | 16 | % | (2) | % | — | % | ||||||||||||
Other2 | 14 | 12 | % | 20 | 17 | % | — | % | 17 | % | (5) | % | — | % | ||||||||||||
Total | $ | (3) | — | % | $ | 116 | 9 | % | — | % | 9 | % | (9) | % | — | % | ||||||||||
CROP PROTECTION PRODUCT LINE | ||||||||||||||||||||||||||
Q4 2020 vs. Q4 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
Herbicides2 | $ | 97 | 11 | % | $ | 130 | 15 | % | 2 | % | 13 | % | (4) | % | — | % | ||||||||||
Insecticides2 | 52 | 11 | % | 95 | 19 | % | 9 | % | 10 | % | (8) | % | — | % | ||||||||||||
Fungicides2 | 13 | 4 | % | 59 | 19 | % | 12 | % | 7 | % | (15) | % | — | % | ||||||||||||
Other2 | 65 | 89 | % | 73 | 100 | % | 91 | % | 9 | % | (10) | % | (1) | % | ||||||||||||
Total | $ | 227 | 13 | % | $ | 357 | 21 | % | 10 | % | 11 | % | (8) | % | — | % |
PRICE - VOLUME - CURRENCY ANALYSIS | ||||||||||||||||||||||||||
REGION | ||||||||||||||||||||||||||
Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
North America | $ | 239 | 3 | % | $ | 266 | 4 | % | 1 | % | 3 | % | (1) | % | — | % | ||||||||||
EMEA | 102 | 4 | % | $ | 212 | 8 | % | 2 | % | 6 | % | (4) | % | — | % | |||||||||||
Latin America | (84) | (3) | % | $ | 490 | 17 | % | 7 | % | 10 | % | (20) | % | — | % | |||||||||||
Asia Pacific | 114 | 9 | % | $ | 161 | 13 | % | 2 | % | 11 | % | (3) | % | (1) | % | |||||||||||
Rest of World | 132 | 2 | % | 863 | 12 | % | 4 | % | 8 | % | (10) | % | — | % | ||||||||||||
Total | $ | 371 | 3 | % | $ | 1,129 | 8 | % | 3 | % | 5 | % | (5) | % | — | % | ||||||||||
SEED | ||||||||||||||||||||||||||
Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
North America | $ | 71 | 2 | % | $ | 84 | 2 | % | — | % | 2 | % | — | % | — | % | ||||||||||
EMEA | 90 | 7 | % | 163 | 12 | % | 4 | % | 8 | % | (5) | % | — | % | ||||||||||||
Latin America | (13) | (1) | % | 187 | 17 | % | 4 | % | 13 | % | (18) | % | — | % | ||||||||||||
Asia Pacific | 18 | 5 | % | 35 | 10 | % | 4 | % | 6 | % | (5) | % | — | % | ||||||||||||
Rest of World | 95 | 3 | % | 385 | 13 | % | 4 | % | 9 | % | (10) | % | — | % | ||||||||||||
Total | $ | 166 | 2 | % | $ | 469 | 6 | % | 1 | % | 5 | % | (4) | % | — | % | ||||||||||
CROP PROTECTION | ||||||||||||||||||||||||||
Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
North America | $ | 168 | 8 | % | $ | 182 | 8 | % | 3 | % | 5 | % | — | % | — | % | ||||||||||
EMEA | 12 | 1 | % | 49 | 4 | % | 1 | % | 3 | % | (2) | % | (1) | % | ||||||||||||
Latin America | (71) | (4) | % | 303 | 17 | % | 9 | % | 8 | % | (21) | % | — | % | ||||||||||||
Asia Pacific | 96 | 10 | % | 126 | 14 | % | 1 | % | 13 | % | (2) | % | (2) | % | ||||||||||||
Rest of World | 37 | 1 | % | 478 | 12 | % | 5 | % | 7 | % | (10) | % | (1) | % | ||||||||||||
Total | $ | 205 | 3 | % | $ | 660 | 11 | % | 4 | % | 7 | % | (7) | % | (1) | % |
SEED PRODUCT LINE | ||||||||||||||||||||||||||
Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
Corn2 | $ | 56 | 1 | % | $ | 300 | 6 | % | 2 | % | 4 | % | (5) | % | — | % | ||||||||||
Soybeans2 | 58 | 4 | % | 83 | 6 | % | 2 | % | 4 | % | (2) | % | — | % | ||||||||||||
Other oilseeds2 | 26 | 4 | % | 46 | 8 | % | — | % | 8 | % | (4) | % | — | % | ||||||||||||
Other2 | 26 | 5 | % | 40 | 8 | % | 3 | % | 5 | % | (3) | % | — | % | ||||||||||||
Total | $ | 166 | 2 | % | $ | 469 | 6 | % | 1 | % | 5 | % | (4) | % | — | % | ||||||||||
CROP PROTECTION PRODUCT LINE | ||||||||||||||||||||||||||
Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To: | |||||||||||||||||||||||||
Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & | Portfolio / | |||||||||||||||||||||||
$ | % | $ | % | Product Mix | Volume | Currency | Other | |||||||||||||||||||
Herbicides2 | $ | 74 | 2 | % | $ | 241 | 8 | % | 1 | % | 7 | % | (5) | % | (1) | % | ||||||||||
Insecticides2 | 112 | 7 | % | 232 | 14 | % | 5 | % | 9 | % | (7) | % | — | % | ||||||||||||
Fungicides2 | (40) | (4) | % | 105 | 10 | % | 5 | % | 5 | % | (12) | % | (2) | % | ||||||||||||
Other2 | 59 | 18 | % | 82 | 25 | % | 24 | % | 1 | % | (7) | % | — | % | ||||||||||||
Total | $ | 205 | 3 | % | $ | 660 | 11 | % | 4 | % | 7 | % | (7) | % | (1) | % |
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX) | |||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
As Reported | As Reported | As Reported | Pro Forma | ||||||||||||||||||||
Seed | $ | (11) | $ | (90) | $ | (165) | $ | (304) | |||||||||||||||
Crop Protection | (11) | 1 | (162) | (23) | |||||||||||||||||||
Corporate | (15) | (16) | (61) | (664) | |||||||||||||||||||
Total significant items before income taxes | $ | (37) | $ | (105) | $ | (388) | $ | (991) | |||||||||||||||
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS | ||||||||||||||||||||||||||||||||||||||
Pre-tax | After tax9 | ($ Per Share) | ||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
1st Quarter | As Reported | Pro Forma | As Reported | Pro Forma | As Reported | Pro Forma | ||||||||||||||||||||||||||||||||
Integration costs 1 | $ | — | $ | (100) | $ | — | $ | (16) | $ | — | $ | (0.02) | ||||||||||||||||||||||||||
Restructuring and asset related charges, net 2 | (70) | (61) | (57) | (53) | (0.08) | (0.07) | ||||||||||||||||||||||||||||||||
Loss on divestiture 3 | (53) | (24) | (43) | (24) | (0.06) | (0.03) | ||||||||||||||||||||||||||||||||
Income tax items 4 | — | — | (19) | — | (0.02) | — | ||||||||||||||||||||||||||||||||
1st Quarter - Total | $ | (123) | $ | (185) | $ | (119) | $ | (93) | $ | (0.16) | $ | (0.12) | ||||||||||||||||||||||||||
2nd Quarter | As Reported | As Reported | As Reported | As Reported | As Reported | As Reported | ||||||||||||||||||||||||||||||||
Integration and separation costs 1 | $ | — | $ | (330) | $ | — | $ | (436) | $ | — | $ | (0.58) | ||||||||||||||||||||||||||
Restructuring and asset related charges, net 2 | (179) | (60) | (143) | (48) | (0.19) | (0.06) | ||||||||||||||||||||||||||||||||
Amortization of inventory step up 5 | — | (52) | — | (41) | — | (0.06) | ||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt 6 | — | (13) | — | (10) | — | (0.01) | ||||||||||||||||||||||||||||||||
Income tax items 4 | — | — | 29 | — | 0.04 | — | ||||||||||||||||||||||||||||||||
2nd Quarter - Total | $ | (179) | $ | (455) | $ | (114) | $ | (535) | $ | (0.15) | $ | (0.71) | ||||||||||||||||||||||||||
3rd Quarter | As Reported | As Reported | As Reported | As Reported | As Reported | As Reported | ||||||||||||||||||||||||||||||||
Integration and separation costs 1 | $ | — | $ | (152) | $ | — | $ | (119) | $ | — | $ | (0.16) | ||||||||||||||||||||||||||
Restructuring and asset related charges, net 2 | (49) | (46) | (27) | (34) | (0.04) | (0.04) | ||||||||||||||||||||||||||||||||
Amortization of inventory step up 5 | — | (15) | — | (15) | — | (0.02) | ||||||||||||||||||||||||||||||||
Argentina currency devaluation 7 | — | (33) | — | (38) | — | (0.05) | ||||||||||||||||||||||||||||||||
Income tax items4 | — | — | — | 38 | — | 0.05 | ||||||||||||||||||||||||||||||||
3rd Quarter - Total | $ | (49) | $ | (246) | $ | (27) | $ | (168) | $ | (0.04) | $ | (0.22) | ||||||||||||||||||||||||||
4th Quarter | As Reported | As Reported | As Reported | As Reported | As Reported | As Reported | ||||||||||||||||||||||||||||||||
Integration and separation costs 1 | $ | — | $ | (50) | $ | — | $ | 20 | $ | — | $ | 0.03 | ||||||||||||||||||||||||||
Restructuring and asset related charges, net 2 | (37) | (55) | (32) | (42) | (0.04) | (0.06) | ||||||||||||||||||||||||||||||||
Income tax items4 | — | — | 182 | 34 | 0.24 | 0.05 | ||||||||||||||||||||||||||||||||
4th Quarter - Total | $ | (37) | $ | (105) | $ | 150 | $ | 12 | $ | 0.20 | $ | 0.02 | ||||||||||||||||||||||||||
Year-to-date Total 8 | $ | (388) | $ | (991) | $ | (110) | $ | (784) | $ | (0.15) | $ | (1.04) |
Operating Earnings Per Share (Non-GAAP) | ||||||||||||||||||||||||||
Operating earnings per share is defined as earnings per share from continuing operations – diluted, excluding non-operating benefits - net, amortization of intangibles (existing as of Separation) and significant items. | ||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
$ | $ | EPS (diluted) | EPS (diluted) | |||||||||||||||||||||||
Net income (loss) from continuing operations attributable to Corteva (GAAP) | $ | 97 | $ | (45) | $ | 0.13 | $ | (0.06) | ||||||||||||||||||
Less: Non-operating benefits - net, after tax 1 | 57 | 16 | 0.08 | 0.02 | ||||||||||||||||||||||
Less: Amortization of intangibles (existing as of Separation), after tax | (141) | (126) | (0.19) | (0.17) | ||||||||||||||||||||||
Less: Significant items benefit, after tax | 150 | 12 | 0.20 | 0.02 | ||||||||||||||||||||||
Operating Earnings (Non-GAAP) | $ | 31 | $ | 53 | $ | 0.04 | $ | 0.07 |
Twelve Months Ended December 31, | ||||||||||||||||||||||||||
2020 | 20192 | 2020 | 20192 | |||||||||||||||||||||||
$ | $ | EPS (diluted) | EPS (diluted) | |||||||||||||||||||||||
Net income from continuing operations attributable to Corteva (GAAP) | $ | 736 | $ | 13 | $ | 0.98 | $ | 0.02 | ||||||||||||||||||
Less: Non-operating benefits - net, after tax 1 | 237 | 100 | 0.32 | 0.13 | ||||||||||||||||||||||
Less: Amortization of intangibles (existing as of Separation), after tax | (518) | (376) | (0.69) | (0.50) | ||||||||||||||||||||||
Less: Significant items charge, after tax | (110) | (784) | (0.15) | (1.04) | ||||||||||||||||||||||
Operating Earnings (Non-GAAP) | $ | 1,127 | $ | 1,073 | $ | 1.50 | $ | 1.43 |
Operating EBITDA to Operating Earnings Per Share | ||||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
As Reported | As Reported | As Reported | Pro Forma | |||||||||||||||||||||||
Operating EBITDA (Non-GAAP)1 | $ | 236 | $ | 224 | 2,087 | 1,987 | ||||||||||||||||||||
Depreciation | (128) | (128) | (495) | (525) | ||||||||||||||||||||||
Interest Income | 18 | 13 | 56 | 59 | ||||||||||||||||||||||
Interest Expense | (10) | (24) | (45) | (91) | ||||||||||||||||||||||
Provision for income taxes on continuing operations before significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and exchange gains/(losses), net (Non-GAAP)1 | (46) | (15) | (295) | (280) | ||||||||||||||||||||||
Base income tax rate from continuing operations (Non-GAAP)1 | 39.7 | % | 17.6 | % | 18.4 | % | 19.6 | % | ||||||||||||||||||
Exchange losses - net, after tax2 | (37) | (14) | (161) | (64) | ||||||||||||||||||||||
Net income attributable to non-controlling interests | (2) | (3) | (20) | (13) | ||||||||||||||||||||||
Operating Earnings (Non-GAAP)1 | $ | 31 | $ | 53 | $ | 1,127 | $ | 1,073 | ||||||||||||||||||
Diluted Shares (in millions) | 749.7 | 749.6 | 751.2 | 749.5 | ||||||||||||||||||||||
Operating Earnings Per Share (Non-GAAP)1 | $ | 0.04 | $ | 0.07 | $ | 1.50 | $ | 1.43 |
Reconciliation of Base Income Tax Rate to Effective Income Tax Rate | |||||||||||||||||||||||
Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), significant items, amortization of intangibles (existing as of Separation), and non-operating benefits - net. | |||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
As Reported | As Reported | As Reported | Pro Forma | ||||||||||||||||||||
(Loss) income from continuing operations before income taxes (GAAP) | $ | (70) | $ | (187) | $ | 675 | $ | 27 | |||||||||||||||
Add: Significant items - charge 1 | 37 | 105 | 388 | 991 | |||||||||||||||||||
Non-operating benefits - net | (79) | (23) | (316) | (129) | |||||||||||||||||||
Amortization of intangibles (existing as of Separation) | 181 | 161 | 682 | 475 | |||||||||||||||||||
Less: Exchange losses, net 2,3 | (47) | (29) | (174) | (66) | |||||||||||||||||||
Income from continuing operations before income taxes, significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and exchange losses, net (Non-GAAP) | $ | 116 | $ | 85 | $ | 1,603 | $ | 1,430 | |||||||||||||||
(Benefit from) provision for income taxes on continuing operations (GAAP) | $ | (169) | $ | (145) | $ | (81) | $ | 1 | |||||||||||||||
Add: Tax benefits on significant items charge1 | 187 | 117 | 278 | 207 | |||||||||||||||||||
Tax expenses on non-operating benefits - net | (22) | (7) | (79) | (29) | |||||||||||||||||||
Tax benefits on amortization of intangibles (existing as of Separation) | 40 | 35 | 164 | 99 | |||||||||||||||||||
Tax benefits on exchange losses, net2 | 10 | 15 | 13 | 2 | |||||||||||||||||||
Provision for income taxes on continuing operations before significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and exchange losses, net (Non-GAAP) | $ | 46 | $ | 15 | $ | 295 | $ | 280 | |||||||||||||||
Effective income tax rate (GAAP) | 241.4 | % | 77.5 | % | (12.0) | % | 3.7 | % | |||||||||||||||
Significant items, non-operating benefits, and amortization of intangibles (existing as of Separation) effect | (189.2) | % | (77.5) | % | 31.7 | % | 16.7 | % | |||||||||||||||
Tax rate from continuing operations before significant items, non-operating benefits - net, and amortization of intangibles (existing as of Separation) (Non-GAAP) | 52.2 | % | — | % | 19.7 | % | 20.4 | % | |||||||||||||||
Exchange losses, net effect2 | (12.5) | % | 17.6 | % | (1.3) | % | (0.8) | % | |||||||||||||||
Base income tax rate from continuing operations (Non-GAAP) | 39.7 | % | 17.6 | % | 18.4 | % | 19.6 | % | |||||||||||||||
1. See Significant Items table for further detail. | |||||||||||||||||||||||
2. See page A-17 for further details of exchange gains (losses). | |||||||||||||||||||||||
3. Pre-tax exchange gains (losses), net for the twelve months ended December 31, 2019, on an operating earnings basis (Non-GAAP), excludes a $(33) exchange loss associated with the devaluation of the Argentine peso as it is included within significant items. |
Exchange Gains/Losses | ||||||||||||||||||||||||||
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 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 on net monetary asset positions. The hedging program gains (losses) are largely taxable (tax deductible) in the United States (U.S.), whereas the offsetting exchange gains (losses) on the remeasurement of the net monetary asset positions are often not taxable (tax deductible) in their local jurisdictions. The net pre-tax exchange gains (losses) are recorded in other income (expense) - net and the related tax impact is recorded in provision for (benefit from) income taxes on continuing operations in the Consolidated Statements of Operations. | ||||||||||||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Subsidiary Monetary Position Gain (Loss) | ||||||||||||||||||||||||||
Pre-tax exchange gains (losses) | $ | 37 | $ | 18 | $ | (263) | $ | (8) | ||||||||||||||||||
Local tax (expenses) benefits | (10) | 4 | 34 | (11) | ||||||||||||||||||||||
Net after tax impact from subsidiary exchange gains (losses) | $ | 27 | $ | 22 | $ | (229) | $ | (19) | ||||||||||||||||||
Hedging Program (Loss) Gain | ||||||||||||||||||||||||||
Pre-tax exchange (losses) gains | $ | (84) | $ | (47) | $ | 89 | $ | (58) | ||||||||||||||||||
Tax benefits (expenses) | 20 | 11 | (21) | 13 | ||||||||||||||||||||||
Net after tax impact from hedging program exchange (losses) gains | $ | (64) | $ | (36) | $ | 68 | $ | (45) | ||||||||||||||||||
Total Exchange Loss | ||||||||||||||||||||||||||
Pre-tax exchange losses1 | $ | (47) | $ | (29) | $ | (174) | $ | (66) | ||||||||||||||||||
Tax benefits | 10 | 15 | 13 | 2 | ||||||||||||||||||||||
Net after tax exchange losses | $ | (37) | $ | (14) | $ | (161) | $ | (64) | ||||||||||||||||||
As shown above, the "Total Exchange Loss" is the sum of the "Subsidiary Monetary Position Loss" and the "Hedging Program (Loss) Gain." | ||||||||||||||||||||||||||
1.Pre-tax exchange (losses) gains, net for the twelve months ended December 31, 2019, on an operating earnings basis (Non-GAAP), excludes a $(33) exchange loss associated with the devaluation of the Argentine peso as it is included within significant items. |
Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||
As Reported Corteva | Adjustments | Pro Forma Corteva | |||||||||||||||||||||||||||
Merger1 | Debt Retirement2 | Separations Related3 | |||||||||||||||||||||||||||
Net sales | $ | 13,846 | $ | — | $ | — | $ | — | $ | 13,846 | |||||||||||||||||||
Cost of goods sold | 8,575 | (205) | — | 16 | 8,386 | ||||||||||||||||||||||||
Research and development expense | 1,147 | — | — | — | 1,147 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 3,065 | — | — | 3 | 3,068 | ||||||||||||||||||||||||
Amortization of intangibles | 475 | — | — | — | 475 | ||||||||||||||||||||||||
Restructuring and asset related charges - net | 222 | — | — | — | 222 | ||||||||||||||||||||||||
Integration and separation costs | 744 | — | — | (112) | 632 | ||||||||||||||||||||||||
Other income - net | 215 | — | — | — | 215 | ||||||||||||||||||||||||
Loss on early extinguishment of debt | 13 | — | — | — | 13 | ||||||||||||||||||||||||
Interest expense | 136 | — | (45) | — | 91 | ||||||||||||||||||||||||
(Loss) income from continuing operations before income taxes | (316) | 205 | 45 | 93 | 27 | ||||||||||||||||||||||||
(Benefit from) provision for income taxes on continuing operations | (46) | 36 | 10 | 1 | 1 | ||||||||||||||||||||||||
(Loss) income from continuing operations after income taxes | (270) | 169 | 35 | 92 | 26 | ||||||||||||||||||||||||
Net income from continuing operations attributable to noncontrolling interests | 13 | — | — | — | 13 | ||||||||||||||||||||||||
Net (loss) income from continuing operations attributable to Corteva | $ | (283) | $ | 169 | $ | 35 | $ | 92 | $ | 13 | |||||||||||||||||||
Basic (loss) earnings per share of common stock from continuing operations | $ | (0.38) | $ | 0.02 | |||||||||||||||||||||||||
Diluted (loss) earnings per share of common stock from continuing operations | $ | (0.38) | $ | 0.02 | |||||||||||||||||||||||||
Average number of shares outstanding used in earnings per share (EPS) calculation (in millions): | |||||||||||||||||||||||||||||
Basic | 749.5 | 749.5 | |||||||||||||||||||||||||||
Diluted | 749.5 | 749.5 |
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