Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

STOCKHOLDERS' EQUITY

Common Stock

As discussed in Note 1 - Background and Basis of Presentation, on June 1, 2019, Corteva, Inc.'s common stock was distributed to DowDuPont stockholders by way of a pro rata distribution. Each DowDuPont stockholder received one share of Corteva, Inc. common stock for every three 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 (par value of $0.01 per share). Information related to the Corteva Distribution and its effect on the company's financial statements are discussed throughout these Notes to the interim Consolidated Financial Statements.

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

Shares of common stock	Issued
Balance June 1, 2019	748,815,000
Issued	399,000
Repurchased and retired	(824,000	)
Balance September 30, 2019	748,390,000

Share Buyback Plan

On June 26, 2019, Corteva, Inc. announced that the 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 months ended September 30, 2019, the company purchased and retired 824,000 shares in the open market for a total cost of $25 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. Corteva currently has an accumulated deficit balance; therefore, the excess over the par value has been applied to additional paid-in capital. Once Corteva has retained earnings, the excess will be charged entirely to retained earnings.

Noncontrolling Interest

Corteva, Inc. owns 100% of the outstanding common shares of EID. However, EID does have preferred stock outstanding to third parties which is accounted for as a non-controlling interest. 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 September 30, 2019, December 31, 2018, and September 30, 2018, which is classified as noncontrolling interests in the 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

Other Comprehensive (Loss) Income

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

(In millions)	Cumulative Translation Adjustment1			Derivative Instruments			Pension Benefit Plans			Other Benefit Plans			Total
2018
Balance January 1, 2018	$	(1,217	)	$	(2	)	$	95		$	(53	)	$	(1,177	)
Other comprehensive (loss) income before reclassifications	(1,099		)	(3		)	15			—			(1,087		)
Amounts reclassified from accumulated other comprehensive loss	—			(5		)	(2		)	—			(7		)
Net other comprehensive (loss) income	(1,099		)	(8		)	13			—			(1,094		)
Balance September 30, 2018	$	(2,316	)	$	(10	)	$	108		$	(53	)	$	(2,271	)
2019
Balance January 1, 2019	$	(2,793	)	$	(26	)	$	(620	)	$	79		$	(3,360	)
Other comprehensive (loss) income before reclassifications	(471		)	11			9			(85		)	(536		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			12			4			(1		)	15
Net other comprehensive (loss) income	(471		)	23			13			(86		)	(521		)
Impact of Internal Reorganizations	1,123			—			91			—			1,214
Balance September 30, 2019	$	(2,141	)	$	(3	)	$	(516	)	$	(7	)	$	(2,667	)

^1.  The cumulative translation adjustment loss for the nine months ended September 30, 2018 was primarily driven by the strengthening of the U.S. Dollar ("USD") against the Euro ("EUR") and the Brazilian real ("BRL"). The cumulative translation adjustment loss for the nine months ended September 30, 2019 was primarily driven by strengthening of the USD against the BRL, EUR, and the South African Rand (“ZAR”).

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

(In millions)	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
Derivative instruments	$	1	$	1		$	(6	)	$	2
Pension benefit plans - net	—		(2		)	4			(4		)
Other benefit plans - net	—		—			29			—
Provision for (benefit from) income taxes related to other comprehensive income (loss) items	$	1	$	(1	)	$	27		$	(2	)

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

(In millions)	Three Months Ended September 30,					Nine Months Ended September 30,						Income Classification
	2019		2018			2019			2018
Derivative Instruments:	$	1	$	1		$	13		$	(6	)	(1)
Tax (benefit) expense	—		(1		)	(1		)	1			(2)
After-tax	$	1	$	—		$	12		$	(5	)
Amortization of pension benefit plans:
Actuarial losses	$	1	2			$	2		1			(3)
Settlement loss (gain)	1		(1		)	2			(2		)	(3)
Total before tax	2		1			4			(1		)
Tax benefit	—		(1		)	—			(1		)	(2)
After-tax	$	2	$	—		$	4		$	(2	)
Amortization of other benefit plans:
Actuarial gain	—		—			(1		)	—			(3)
Total before tax	—		—			(1		)	—
Tax benefit	—		—			—			—			(2)
After-tax	$	—	$	—		$	(1	)	$	—
Total reclassifications for the period, after-tax	$	3	$	—		$	15		$	(7	)

^1.  Cost of goods sold.

^2.  (Benefit from) 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) cost of the company's pension and other benefit plans. See Note 20 - Pension Plans and Other Post Employment Benefits, for additional information.