EX-99.2 3 a123120enr.htm EX-99.2 Document
A-1
Corteva, Inc.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
Three Months Ended December 31,Twelve Months Ended
December 31,
2020201920202019
Net sales$3,207 $2,983 $14,217 $13,846 
Cost of goods sold2,112 1,968 8,507 8,575 
Research and development expense305 290 1,142 1,147 
Selling, general and administrative expenses724 747 3,043 3,065 
Amortization of intangibles181 161 682 475 
Restructuring and asset related charges - net37 55 335 222 
Integration and separation costs— 50 — 744 
Other income - net92 125 212 215 
Loss on early extinguishment of debt— — — 13 
Interest expense10 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 taxes99 (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 interests2 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)
  Basic746.3749.6748.7749.5
  Diluted749.7749.6751.2749.5





A-2
Corteva, Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions, except share amounts)
December 31,
2020		December 31,
2019
Assets
Current assets
Cash and cash equivalents$3,526 $1,764 
Marketable securities269 5 
Accounts and notes receivable, net4,926 5,528 
Inventories4,882 5,032 
Other current assets1,165 1,190 
Total current assets14,768 13,519 
Investment in nonconsolidated affiliates66 66 
Property, plant and equipment, net of accumulated depreciation
 December 31, 2020 - $3,857 and December 31, 2019 - $3,326
4,396 4,546 
Goodwill10,269 10,229 
Other intangible assets10,747 11,424 
Deferred income taxes464 287 
Other assets1,939 2,326 
Total Assets$42,649 $42,397 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$3 $7 
Accounts payable3,615 3,702 
Income taxes payable123 95 
Accrued and other current liabilities4,807 4,434 
Total current liabilities8,548 8,238 
Long-Term Debt1,102 115 
Other Noncurrent Liabilities
Deferred income tax liabilities893 920 
Pension and other post employment benefits - noncurrent5,176 6,377 
Other noncurrent obligations1,867 2,192 
Total noncurrent liabilities9,038 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 capital27,707 27,997 
Accumulated deficit— (425)
Accumulated other comprehensive loss(2,890)(3,270)
Total Corteva stockholders' equity24,824 24,309 
Noncontrolling interests239 246 
Total equity25,063 24,555 
Total Liabilities and Equity$42,649 $42,397 


A-3
Corteva, Inc.
Condensed Consolidated Statement of Cash Flows
(Dollars in millions, except per share amounts)

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 amortization1,177 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 investments3 (142)
Goodwill impairment charge— 1,102 
Loss on early extinguishment of debt— 13 
Restructuring and asset related charges - net335 339 
Amortization of inventory step-up— 272 
Other net loss290 246 
Changes in operating assets and liabilities, net 359 (556)
Cash provided by operating activities2,064 1,070 
Investing activities
Capital expenditures(475)(1,163)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested83 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 investments721 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 debt2,439 1,001 
Payments on debt(1,441)(6,804)
Repurchase of common stock(275)(25)
Proceeds from exercise of stock options56 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 activities303 (2,929)
Effect of exchange rate changes on cash, cash equivalents and restricted cash7 (88)
Increase (decrease) in cash, cash equivalents and restricted cash1,700 (2,851)
Cash, cash equivalents and restricted cash at beginning of period2,173 5,024 
Cash, cash equivalents and restricted cash at end of period$3,873 $2,173 
1.The cash flows for the twelve months ended December 31, 2019 includes cash flows of historical DuPont's ECP and Specialty Products Businesses.

A-4
Corteva, Inc.
Pro Forma Consolidated Statements of Operations1
(Dollars in millions, except per share amounts)
Three Months Ended December 31,Twelve Months Ended
December 31,
202020192020
20192
Net sales$3,207 $2,983 $14,217 $13,846 
Cost of goods sold2,112 1,968 8,507 8,386 
Research and development expense305 290 1,142 1,147 
Selling, general and administrative expenses724 747 3,043 3,068 
Amortization of intangibles181 161 682 475 
Restructuring and asset related charges - net37 55 335 222 
Integration and separation costs— 50 — 632 
Other income - net92 125 212 215 
Loss on early extinguishment of debt— — — 13 
Interest expense10 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 taxes99 (42)756 26 
Net income from continuing operations attributable to noncontrolling interests2 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)
  Basic746.3 749.6 748.7 749.5 
  Diluted749.7 749.6 751.2 749.5 

1.See Article 11 Pro Forma Combined Statements of Operations beginning on page A-18.
2.Period is presented on a Pro Forma Basis, prepared in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments.





A-5
Corteva, Inc.
Consolidated Segment Information
(Dollars in millions, except per share amounts)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
SEGMENT NET SALES - SEED2020
20191
2020
20191
    Corn$958 $962 $5,182 $5,126 
    Soybean63 74 1,445 1,387 
    Other oilseeds90 92 619 593 
    Other129 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 PROTECTION2020
20191
2020
20191
    Herbicides$965 $868 $3,280 $3,206 
    Insecticides546 494 1,764 1,652 
    Fungicides318 305 1,032 1,072 
    Other138 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 - SEED2020201920202019
North America 2
$505 $486 $4,795 $4,724 
EMEA 3
206 178 1,468 1,378 
Latin America449 494 1,117 1,130 
Asia Pacific80 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 PROTECTION2020201920202019
North America 2
$845 $643 $2,373 $2,205 
EMEA 3
211 226 1,374 1,362 
Latin America602 615 1,688 1,759 
Asia Pacific309 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



A-6
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
20202020
As ReportedAs Reported
Net Sales (GAAP)$3,207 $14,217 
    Less: Impacts from Currency and Portfolio(249)(758)
Organic Sales (Non-GAAP)$3,456 $14,975 
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2020201920202019
OPERATING EBITDAAs ReportedAs ReportedAs ReportedPro Forma
Seed$(47)$(26)$1,208 $1,040 
Crop Protection327 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,
2020201920202019
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDAAs ReportedAs ReportedAs ReportedPro 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 amortization309 289 1,177 1,000 
Interest income(18)(13)(56)(59)
Interest expense10 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 
1.Refer to page A-17 for pre-tax and after tax impacts of exchange losses (gains) - net. The twelve months ended December 31, 2019, on an operating basis (Non-GAAP), excludes a $(33) exchange loss associated with the devaluation of the Argentine peso, as it is included in significant items.
2.Non-operating benefits—net consists of non-operating pension and other post-employment benefit (OPEB) (benefits) costs, tax indemnification adjustments, 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.
3.Refer to page A-11 for pre-tax and after tax impacts of significant items.


A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Q4 2020 vs. Q4 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 Pacific48 14 %42 12 %2 %10 %2 %— %
Rest of World3 — %253 14 %6 %8 %(14)%— %
Total$224 8 %$473 16 %6 %10 %(8)%— %
SEED
Q4 2020 vs. Q4 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 Pacific53 21 %44 17 %2 %15 %3 %1 %
Rest of World25 2 %155 14 %8 %6 %(12)%— %
Total$227 13 %$357 21 %10 %11 %(8)%— %
















A-8
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

SEED PRODUCT LINE
Q4 2020 vs. Q4 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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)%— %


A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Twelve Months 2020 vs. Twelve Months 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 Pacific114 9 %$161 13 %2 %11 %(3)%(1)%
Rest of World132 2 %863 12 %4 %8 %(10)%— %
Total$371 3 %$1,129 8 %3 %5 %(5)%— %
SEED
Twelve Months 2020 vs. Twelve Months 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 Pacific18 5 %35 10 %4 %6 %(5)%— %
Rest of World95 3 %385 13 %4 %9 %(10)%— %
Total$166 2 %$469 6 %1 %5 %(4)%— %
CROP PROTECTION
Twelve Months 2020 vs. Twelve Months 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 Pacific96 10 %126 14 %1 %13 %(2)%(2)%
Rest of World37 1 %478 12 %5 %7 %(10)%(1)%
Total$205 3 %$660 11 %4 %7 %(7)%(1)%


A-10
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Twelve Months 2020 vs. Twelve Months 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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 2019Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Local Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
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)%

1.Organic sales is defined as price and volume and excludes currency and portfolio impacts.
2.Prior periods have been reclassified to conform to current period presentation.



A-11
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2020201920202019
As ReportedAs ReportedAs ReportedPro 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)
202020192020201920202019
1st QuarterAs ReportedPro FormaAs ReportedPro FormaAs ReportedPro 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 QuarterAs ReportedAs ReportedAs ReportedAs ReportedAs ReportedAs 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 QuarterAs ReportedAs ReportedAs ReportedAs ReportedAs ReportedAs 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 QuarterAs ReportedAs ReportedAs ReportedAs ReportedAs ReportedAs 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)

1.Integration and separation costs includes costs incurred to prepare for and close the Merger, post-Merger integration expenses, and costs incurred to prepare for the Business Separations. These costs primarily consist of financial advisory, information technology, legal, accounting, consulting and other professional advisory fees associated with the preparation and execution of these activities. For periods prior to Q2 2019, this includes only integration costs.

A-12
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)

The after-tax benefit for the fourth quarter of 2019 includes a net tax benefit of $48 related to application of the U.S. Tax Reform’s foreign tax provisions.

The after-tax charge for the third quarter of 2019 includes a net tax benefit of $13 related to application of the U.S. Tax Reform’s foreign tax provisions.

The after-tax charge for the second quarter of 2019 includes a net tax charge of $(114) related to U.S. state blended tax rate changes associated with the Internal Reorganizations and a net tax charge of $(96) related to application of the U.S. Tax Reform’s foreign tax provisions.

The after-tax charge for the first quarter of 2019 includes a net tax charge of $(32) related to U.S. state blended tax rate changes associated with the Internal Reorganizations and a tax benefit of $102 related to an internal legal entity restructuring associated with the Internal Reorganizations.

2.Fourth quarter, third quarter, second quarter, and first quarter 2020 included restructuring and asset related charges of $(37), $(49), $(179) and $(70), respectively. The charge for the fourth quarter included a $(42) charge related to the Execute to Win Productivity Program, a $(1) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $6 benefit associated with the DowDuPont Synergy Program. The charge for the third quarter included a $(30) charge related to the Execute to Win Productivity Program, a $(10) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $(9) charge associated with the DowDuPont Synergy Program. The charge for the second quarter included a $(41) charge related to the Execute to Win Productivity Program and a $(138) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charge for the first quarter included a $(63) charge related to the Execute to Win Productivity Program, a $(10) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $3 asset related benefit associated with the DowDuPont Synergy Program.

The after-tax charge for the third quarter of 2020 includes a net tax benefit of $11 related to a change in estimate on the full year impact of The Act's foreign provisions.

Fourth quarter, third quarter, second quarter, and first quarter 2019 included restructuring and asset related charges of $(55), $(46), $(60) and $(61), respectively. The charge for the fourth quarter included a $(90) non-cash intangible asset impairment charge as a result of the company’s decision to accelerate the ramp up of the Enlist E3TM trait platform in the company’s soybean portfolio mix across all brands, including Pioneer brands, over the next five years with minimal use of the Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® traits thereafter for the remainder of the Roundup Ready 2 License Agreement. This charge was partially offset by a benefit of $22 associated with the DowDuPont Cost Synergy Program and a benefit of $13 associated with the DowDuPont Agriculture Division Restructuring Program. The charge for the third quarter included a $(54) non-cash asset impairment related to certain intangible assets that primarily relate to heritage Dow AgroSciences intangibles previously acquired from Cooperativa Central de Pesquisa Agrícola's ("Coodetec"), classified as developed technology, other intangible assets and in-process research and development ("IPR&D"), partially offset by a benefit of $8 associated with the DowDuPont Cost Synergy Program. The charge for the first and second quarter is primarily related to the DowDuPont Cost Synergy Program.

3.First quarter 2020 includes a loss of $(53) included in other income - net related to the expected sale of the La Porte site, for which the company signed an agreement during the first quarter 2020.

First quarter 2019 includes a loss of $(24) included in other income - net related to DAS's sale of a joint venture related to synergy actions.

4.Fourth quarter 2020 reflects an after-tax benefit related to Swiss Tax Reform. Second quarter 2020 reflects a benefit of $29 due to an elective change in accounting method that alters the 2019 impact of the business separation on the 2017 Tax Cuts and Jobs Act's foreign tax provisions. First quarter 2020 includes an after tax charge related to the impact of a state tax valuation allowance in the U.S. based on a change in judgment about the realizability of a deferred tax asset.

Fourth quarter 2019 reflects an after-tax benefit related to the impact of the release of a tax valuation allowance recorded against the net deferred tax asset position of a Swiss legal entity.

Third quarter 2019 reflects an after-tax benefit related to Swiss Tax Reform.

5.Third quarter and second quarter 2019 includes amortization of inventory step up reflected in cost of goods sold related to the amortization of the inventory step-up in connection with the Merger.


A-13
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
6.Second quarter 2019 includes a loss on the 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.

7.Third quarter 2019 includes a $(33) loss included in other income - net associated with remeasuring the company’s Argentine Peso net monetary assets, resulting from an unexpected August primary election result in Argentina.  Throughout the three months ended September 30, 2019, the Argentine Peso dropped approximately a third of its value against the U.S. dollar and in September of 2019, the country’s central bank announced new restrictions on foreign currency transactions. The after tax charge of $(38) includes a tax valuation allowance recorded against the net deferred tax asset position of an Argentine legal entity.

8.Earnings per share for the year may not equal the sum of quarterly earnings per share due to the changes in average share calculations.

9.Unless specifically addressed in notes 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.



A-14
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
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,
2020201920202019
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$97 $(45)$0.13 $(0.06)
Less: Non-operating benefits - net, after tax 1
57 16 0.08 0.02 
Less: Amortization of intangibles (existing as of Separation), after tax(141)(126)(0.19)(0.17)
Less: Significant items benefit, after tax150 12 0.20 0.02 
Operating Earnings (Non-GAAP)$31 $53 $0.04 $0.07 
Twelve Months Ended
December 31,
2020
20192
2020
20192
$$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 
1.Non-operating benefits—net consists of non-operating pension and other post-employment benefit (OPEB) benefits (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.
2.Periods are presented on a Pro Forma Basis, prepared in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments.

A-15
Corteva, Inc.
Operating EBITDA to Operating Earnings Per Share
(Dollars in millions, except per share amounts)

Operating EBITDA to Operating Earnings Per Share
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2020201920202019
As ReportedAs ReportedAs ReportedPro Forma
Operating EBITDA (Non-GAAP)1
$236 $224 2,087 1,987 
Depreciation(128)(128)(495)(525)
Interest Income18 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 
1.     Refer to pages A-6 through A-10 for Non-GAAP reconciliations.
2.     Refer to page A-17 for pre-tax and after tax impacts of exchange gains (losses) - net.




A-16
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions)

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,
2020201920202019
As ReportedAs ReportedAs ReportedPro 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.



A-17
Corteva, Inc.
(Dollars in millions, except per share amounts)

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,
2020201920202019
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.



A-18
Corteva, Inc.
Article 11 Pro Forma Combined Statement of Operations
(Dollars in millions, except per share amounts)


Twelve Months Ended
December 31, 2019
As Reported CortevaAdjustmentsPro Forma Corteva
Merger1
Debt Retirement2
Separations Related3
Net sales$13,846 $— $— $— $13,846 
Cost of goods sold8,575 (205)— 16 8,386 
Research and development expense1,147 — — — 1,147 
Selling, general and administrative expenses3,065 — — 3 3,068 
Amortization of intangibles475 — — — 475 
Restructuring and asset related charges - net222 — — — 222 
Integration and separation costs744 — — (112)632 
Other income - net215 — — — 215 
Loss on early extinguishment of debt13 — — — 13 
Interest expense136 — (45)— 91 
(Loss) income from continuing operations before income taxes(316)205 45 93 27 
(Benefit from) provision for income taxes on continuing operations(46)36 10 1 1 
(Loss) income from continuing operations after income taxes(270)169 35 92 26 
Net income from continuing operations attributable to noncontrolling interests13 — — — 13 
Net (loss) income from continuing operations attributable to Corteva$(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):
  Basic749.5 749.5 
  Diluted749.5 749.5 
1.Related to the 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.
3.Adjustments directly attributable to the separations and distributions of Corteva, Inc. include the following: removal of Telone® Soil Fumigant business (“Telone®”) results (as Telone® did not transfer to Corteva as part of the common control combination of DAS); 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.