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Pension Plans and Other Post Employment Benefit Plans
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block] PENSION PLANS AND OTHER POST EMPLOYMENT BENEFITS

The company offers various long-term benefits to its employees. Where permitted by applicable law, the company reserves the right to change, modify or discontinue the plans.

As a result of the Merger, the company re-measured its pension and OPEB plans. The remeasurement of the company’s pension and OPEB plans is included in the fair value measurement of EID’s assets and liabilities as a result of the application of purchase accounting in connection with the Merger. In addition, net losses and prior service benefits recognized in accumulated other comprehensive loss were eliminated. Historical Dow and EID did not merge their pension plans and OPEB plans as a result of the Merger.

In connection with the Corteva Distribution and Internal Reorganization, 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 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 of EID's pension and OPEB obligations and associated assets to DuPont. As a result of the transfer at Separation, about $5.8 billion unfunded obligations of the pension and OPEB plans remained with Corteva, of which $319 million was supported by funding under the Trust agreement.

Defined Benefit Pension Plans
The company has both funded and unfunded noncontributory defined benefit pension plans covering a majority of the U.S. employees and employees in a number of other countries. The principal U.S. pension plan is the largest pension plan held by Corteva. Most employees hired on or after January 1, 2007 are not eligible to participate in the U.S. defined benefit pension plans. The benefits under these plans are based primarily on years of service and employees' pay near retirement. In November 2016, EID announced that it will freeze the pay and service amounts used to calculate pension benefits for active employees who participate in the U.S. pension plans on November 30, 2018. Therefore, as of November 30, 2018, employees participating in the U.S. pension plans no longer accrue additional benefits for future service and eligible compensation received.

The company's funding policy is consistent with the funding requirements of federal laws and regulations. Pension coverage for employees of the company's non-U.S. consolidated subsidiaries is provided, to the extent deemed appropriate, through separate plans. Obligations under such plans are funded by depositing funds with trustees, covered by insurance contracts, or remain unfunded. The company made a discretionary contribution of $1,100 million in the third quarter of 2018 to its principal U.S. pension plan. During the period January 1 through August 31, 2017, the company made total contributions of $2,900 million to its principal U.S. pension plan funded through a debt offering; short-term borrowings, including commercial paper issuance, and cash flows from operations.

The company made total contributions of $121 million, $214 million, $69 million and $124 million to its pension plans other than the principal U.S. pension plan for the year ended December 31, 2019, the year ended December 31, 2018, the period September 1 through December 31, 2017, and the period January 1 through August 31, 2017, respectively.

Corteva expects to contribute approximately $60 million to its pension plans other than the principal U.S. pension plan in 2020. The company is evaluating potential discretionary contributions in 2020 to the principal U.S. pension plan, that could reduce a portion of the underfunded benefit obligation. Any discretionary contributions depend on various factors including market conditions and tax deductible limits.

The weighted-average assumptions used to determine pension plan obligations for all pension plans are summarized in the table below:
Weighted-Average Assumptions used to Determine Benefit Obligations
December 31, 2019
December 31, 2018
Discount rate
3.20
%
3.94
%
Rate of increase in future compensation levels
2.60
%
2.90
%


The weighted-average assumptions used to determine net periodic benefit costs for all pension plans are summarized in the table below:
Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost
Successor
Predecessor
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
For the Period September 1 through December 31, 2017
For the Period January 1 through August 31, 2017
Discount rate
4.19
%
3.38
%
3.42
%
3.80
%
Rate of increase in future compensation levels
2.84
%
4.04
%
3.80
%
3.80
%
Expected long-term rate of return on plan assets
6.24
%
6.19
%
6.24
%
7.66
%

The weighted-average assumptions used to determine net periodic benefit costs for U.S. plans are summarized in the table below:
Weighted- Average Assumptions used to Determine Net Periodic Benefit Cost
Successor
Predecessor
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
For the Period September 1 through December 31, 2017
For the Period January 1 through August 31, 2017
Discount rate
4.32
%
3.65
%
3.73
%
4.16
%
Rate of increase in future compensation levels
—
%
4.25
%
3.95
%
3.95
%
Expected long-term rate of return on plan assets
6.25
%
6.25
%
6.25
%
8.00
%


In the tables above, the rate of compensation increase represents the single annual effective salary increase that an average plan participant would receive during the participant's entire career at the company. After November 30, 2018 the rate of compensation increase excludes U.S. pension plans since the employees who participate in the U.S. pension plans no longer accrue additional benefits for future service and eligible compensation as of that date.

Other Post Employment Benefits
The company provides medical, dental and life insurance benefits to certain pensioners and survivors. The associated plans for retiree benefits are unfunded and the cost of the approved claims is paid from company funds. Substantially all of the cost and liabilities for these retiree benefit plans are attributable to the U.S. benefit plans. The non-Medicare eligible retiree medical plan is contributory with pensioners and survivors' contributions adjusted annually to achieve a 50/50 target for sharing of cost increases between the company and pensioners and survivors. In addition, limits are applied to Corteva's portion of the retiree medical cost coverage. For Medicare eligible pensioners and survivors, Corteva provides a company-funded Health Reimbursement Arrangement ("HRA"). In November 2016, the company announced that eligible employees who will be under the age of 50 as of November 30, 2018 will not receive post-retirement medical, dental and life insurance benefits. Beginning January 1, 2015, eligible employees who retire on and after that date will receive the same life insurance benefit payment, regardless of employee's age or pay. The majority of U.S. employees hired on or after January 1, 2007 are not eligible to participate in the post-retirement medical, dental and life insurance plans.

The company also provides disability benefits to employees. Employee disability benefit plans are insured in many countries. However, primarily in the U.S., such plans are generally self-insured. Obligations and expenses for self-insured plans are reflected in the change in projected benefit obligations table on page F-70.

The company's OPEB plans are unfunded and the cost of the approved claims is paid from operating cash flows. Pre-tax cash requirements to cover actual net claims costs and related administrative expenses were $202 million, $216 million, $59 million, and $166 million for the year ended December 31, 2019, the year ended December 31, 2018, the period September 1 through December 31, 2017, and the period January 1 through August 31, 2017, respectively. Changes in cash requirements reflect the net impact of higher per capita health care costs, demographic changes, plan amendments and changes in participant premiums, co-pays and deductibles. In 2020, the company expects to contribute approximately $240 million for its OPEB plans.

The weighted-average assumptions used to determine benefit obligations for OPEB plans are summarized in the table below:
Weighted-Average Assumptions used to Determine Benefit Obligations
December 31, 2019
December 31, 2018
Discount rate
3.07
%
4.23
%

The weighted-average assumptions used to determine net periodic benefit costs for the OPEB plans are summarized in the two tables below:
Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost
Successor
Predecessor
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
For the Period September 1 through December 31, 2017
For the Period January 1 through August 31, 2017
Discount rate
3.93
%
3.56
%
3.62
%
4.03
%

Assumed Health Care Cost Trend Rates
December 31, 2019
December 31, 2018
Health care cost trend rate assumed for next year
7.20
%
7.50
%
Rate to which the cost trend rate is assumed to decline (the ultimate health care trend rate)
5.00
%
5.00
%
Year that the rate reached the ultimate health care cost trend rate
2028

2028



Assumptions
Within the U.S., the company determines the expected long-term rate of return on plan assets by performing a detailed analysis of key economic and market factors driving historical returns for each asset class and formulating a projected return based on factors in the current environment. Factors considered include, but are not limited to, inflation, real economic growth, interest rate yield, interest rate spreads, and other valuation measures and market metrics. The expected long-term rate of return for each asset class is then weighted based on the strategic asset allocation approved by the governing body for the plan. The company's historical experience with the pension fund asset performance is also considered. For non-U.S. plans, assumptions reflect economic assumptions applicable to each country.

In the U.S., Corteva calculates service costs and interest costs by applying individual spot rates from a yield curve (based on high-quality corporate bond yields) to the separate expected cash flows components of service cost and interest cost. Service cost and interest cost for all other plans are determined on the basis of the single equivalent discount rates derived in determining those plan obligations.

The discount rates utilized to measure the pension and other post employment obligations are based on the yield on high-quality corporate fixed income investments at the measurement date. Future expected actuarially determined cash flows are individually discounted at the spot rates under the Aon AA_Above Median yield curve (based on high-quality corporate bond yields) to arrive at the plan’s obligations as of the measurement date. For non-U.S. benefit plans, historically the company utilized prevailing long-term high quality corporate bond indices to determine the discount rate, applicable to each country, at the measurement date.

The company adopts the most recently published mortality tables and mortality improvement scale released by the Society of Actuaries in measuring its U.S. pension and other post employment benefit obligations. The effect of these adoptions is amortized into net periodic benefit cost for the years following the adoption.

Summarized information on the company's pension and other post employment benefit plans is as follows:
Change in Projected Benefit Obligations, Plan Assets and Funded Status
 
Defined Benefit Pension Plans
 
Other Post Employment Benefits
(In millions)
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
 
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
Change in benefit obligations:
 
 
 
 
 
Benefit obligation at beginning of the period
$
23,532

$
25,683

 
$
2,514

$
2,810

Service cost
41

136

 
4

9

Interest cost
769

755

 
84

85

Plan participants' contributions
2

10

 
37

38

Actuarial (gain) loss
2,469

(1,078
)
 
211

(172
)
Benefits paid
(1,635
)
(1,763
)
 
(239
)
(254
)
Plan amendments
(76
)
17

 
—

—

Net effects of acquisitions / divestitures / other
(1
)
(12
)
 
—

—

Effect of foreign exchange rates
(60
)
(216
)
 
—

(2
)
Impact of internal reorganizations
(4,037
)
—

 
(20
)
—

Benefit obligations at end of the period
$
21,004

$
23,532

 
$
2,591

$
2,514

 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
Fair value of plan assets at beginning of the period
$
18,951

$
20,329

 
$
—

$
—

Actual return on plan assets
2,552

(781
)
 
—

—

Employer contributions
121

1,314

 
202

216

Plan participants' contributions
2

10

 
37

38

Benefits paid
(1,635
)
(1,763
)
 
(239
)
(254
)
Net effects of acquisitions / divestitures / other
(6
)
(7
)
 
—

—

Effect of foreign exchange rates
(38
)
(151
)
 
—

—

Impact of internal reorganizations
(3,006
)
—

 
—

—

Fair value of plan assets at end of the period
$
16,941

$
18,951

 
$
—

$
—

Funded status
 
 
 
 
 
U.S. plan with plan assets
$
(3,535
)
$
(2,890
)
 
$
—

$
—

Non-U.S. plans with plan assets
(90
)
(32
)
 
—

—

All other plans 1, 2
(438
)
(511
)
 
(2,591
)
(2,490
)
Plans of discontinued operations
—

(1,148
)
 
—

(24
)
Funded status at end of the period3
$
(4,063
)
$
(4,581
)
 
$
(2,591
)
$
(2,514
)
1.
As of December 31, 2019, and December 31, 2018, $294 million and $349 million, respectively, of the benefit obligations are supported by funding under the Trust agreement, defined in the "Trust Assets" section below.
2.
Includes pension plans maintained around the world where funding is not customary.
3.
Excludes $(41) million as of December 31, 2018 of DAS pension and OPEB liabilities recognized within the Consolidated Balance Sheet that did not transfer to Corteva as part of the Internal Reorganizations.




 
Defined Benefit Pension Plans
Other Post Employment Benefits
(In millions)
December 31, 2019
December 31, 2018
December 31, 2019
December 31, 2018
Amounts recognized in the Consolidated Balance Sheets:
 
 
 
 
Assets of discontinued operations - current
$
—

$
10

$
—

$
—

Other Assets
10

—

—

—

Accrued and other current liabilities
(50
)
(45
)
(237
)
(242
)
Liabilities of discontinued operations - noncurrent
—

(1,158
)
—

(24
)
Pension and other post employment benefits - noncurrent 1
(4,023
)
(3,388
)
(2,354
)
(2,248
)
Net amount recognized
$
(4,063
)
$
(4,581
)
$
(2,591
)
$
(2,514
)
 
 
 
 
 
Pretax amounts recognized in accumulated other comprehensive loss (income):
 
 
 
 
Net loss (gain)
$
1,641

$
767

$
108

$
(104
)
Prior service (benefit) cost
(10
)
17

—

—

Pretax balance in accumulated other comprehensive loss (income) at end of year
$
1,631

$
784

$
108

$
(104
)
1. Excludes $(41) million as of December 31, 2018 of DAS pension and OPEB liabilities recognized within the Consolidated Balance Sheet that did not transfer to Corteva as part of the Internal Reorganizations.

The significant loss related to the change in benefit obligations for the period ended December 31, 2019 is mainly due to a decrease in discount rates.

The accumulated benefit obligation for all pensions plans was $21.0 billion and $23.2 billion at December 31, 2019 and 2018, respectively.

Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
December 31, 2019
December 31, 2018
(In millions)
Projected benefit obligations1
$
20,788

$
23,261

Fair value of plan assets2
16,716

18,669

1. Includes $3.8 billion of discontinued operations for the period ended December 31, 2018.
2. Includes $2.6 billion of discontinued operations for the period ended December 31, 2018.

Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
December 31, 2019
December 31, 2018
(In millions)
Accumulated benefit obligations1
$
20,654

$
22,291

Fair value of plan assets2
16,620

17,934

1. Includes $2.9 billion of discontinued operations for the period ended December 31, 2018.
2. Includes $2.0 billion of discontinued operations for the period ended December 31, 2018.

 
 
Defined Benefit Pension Plans
 
Other Post Employment Benefits
(In millions)
Successor
Predecessor
 
Successor
Predecessor
Components of net periodic benefit (credit) cost and amounts recognized in other comprehensive loss
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
For the Period September 1 through December 31, 2017
For the Period January 1 through August 31, 2017
 
For the Year Ended December 31, 2019
For the Year Ended December 31, 2018
For the Period September 1 through December 31, 2017
For the Period January 1 through August 31, 2017
Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
 
Service cost
$
41

$
136

$
50

$
92

 
$
4

$
9

$
3

$
6

Interest cost
769

755

247

524

 
84

85

26

60

Expected return on plan assets
(1,078
)
(1,216
)
(411
)
(824
)
 
—

—

—

—

Amortization of unrecognized loss (gain)
3

10

1

506

 
(1
)
—

—

61

Amortization of prior service benefit
(1
)
—

—

(3
)
 
—

—

—

(46
)
Curtailment gain
(2
)
(11
)
—

—

 
—

—

—

—

Settlement loss
4

5

—

—

 
—

—

—

—

Net periodic benefit (credit) cost - Total
$
(264
)
$
(321
)
$
(113
)
$
295

 
$
87

$
94

$
29

$
81

Less: Discontinued operations1
(14
)
(42
)
(13
)
27

 
—

1

—

—

Net periodic benefit (credit) cost - Continuing operations
$
(250
)
$
(279
)
$
(100
)
$
268

 
$
87

$
93

$
29

$
81

Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
 
 
 
 
 
 
 
 
 
Net loss (gain)
$
970

$
908

$
(163
)
$
(22
)
 
$
211

$
(172
)
$
68

$
—

Amortization of unrecognized (loss) gain
(2
)
(10
)
(1
)
(506
)
 
1

—

—

(61
)
Prior service (benefit) cost
(11
)
17

—

—

 
—

—

—

—

Amortization of prior service benefit
1

—

—

3

 
—

—

—

46

Settlement loss
(4
)
(2
)
—

—

 
—

—

—

—

Effect of foreign exchange rates
(5
)
1

3

133

 
—

—

—

—

Total loss (benefit) recognized in other comprehensive loss, attributable to Corteva
$
949

$
914

$
(161
)
$
(392
)
 
$
212

$
(172
)
$
68

$
(15
)
Total recognized in net periodic benefit cost and other comprehensive loss (income)
$
685

$
593

$
(274
)
$
(97
)
 
$
299

$
(78
)
$
97

$
66

1. 
Includes non-service related components of net periodic benefit credit of $(31) million, $(97) million, $(34) million, and $(18) million for the year ended December 31, 2019, the year ended December 31, 2018, the period September 1 through December 31, 2017, and the period January 1 through August 31, 2017, respectively.

Estimated Future Benefit Payments
The estimated future benefit payments, reflecting expected future service, as appropriate, are presented in the following table:
Estimated Future Benefit Payments at December 31, 2019
Defined Benefit Pension Plans
Other Post Employment Benefits
(In millions)
2020
$
1,527

$
237

2021
1,474

228

2022
1,437

218

2023
1,403

209

2024
1,370

201

Years 2025-2029
6,314

808

Total
$
13,525

$
1,901



Plan Assets
All pension plan assets in the U.S. are invested through a single master trust fund. The strategic asset allocation for this trust fund is approved by management. The general principles guiding U.S. pension asset investment policies are those embodied in the Employee Retirement Income Security Act of 1974 ("ERISA"). These principles include discharging Corteva's investment responsibilities for the exclusive benefit of plan participants and in accordance with the "prudent expert" standard and other ERISA rules and regulations. Corteva establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. Strategic asset allocations in other countries are selected in accordance with the laws and practices of those countries. Where appropriate, asset liability studies are utilized in this process. U.S. plan assets are managed by investment professionals employed by Corteva. The remaining assets are managed by professional investment firms unrelated to the company. Corteva's pension investment professionals have discretion to manage the assets within established asset allocation ranges approved by management of the company. Additionally, pension trust funds are permitted to enter into certain contractual arrangements generally described as "derivatives." Derivatives are primarily used to reduce specific market risks, hedge currency and adjust portfolio duration and asset allocation in a cost-effective manner.

In connection with pension contributions of $2,900 million to its principal U.S. pension plan during the period of January 1, 2017 through August 31, 2017, an investment policy study was completed for the principal U.S. pension plan. The study resulted in new target asset allocations being approved for the principal U.S. pension plan with resulting changes to the expected return on plan assets. The long-term rate of return on assets decreased from 8.00 percent to 6.25 percent.

The weighted-average target allocation for plan assets of the company's pension plans is summarized as follows:
Target Allocation for Plan Assets
December 31, 2019
December 31, 2018
Asset Category
U.S. equity securities
20
%
19
%
Non-U.S. equity securities
16

16

Fixed income securities
50

50

Hedge funds
3

2

Private market securities
6

8

Real estate
3

3

Cash and cash equivalents
2

2

Total
100
%
100
%


U.S. equity investments are primarily large-cap companies. Global equity securities include varying market capitalization levels. Global fixed income investments include corporate-issued, government-issued and asset-backed securities. Corporate debt investments include a range of credit risk and industry diversification. U.S. fixed income investments are weighted heavier than non-U.S. fixed income securities. Other investments include cash and cash equivalents, hedge funds, real estate and private market securities such as interests in private equity and venture capital partnerships.

Fair value calculations may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

For pension plan assets classified as Level 1 measurements (measured using quoted prices in active markets), total fair value is either the price of the most recent trade at the time of the market close or the official close price, as defined by the exchange on which the asset is most actively traded on the last trading day of the period, multiplied by the number of units held without consideration of transaction costs.

For pension plan assets classified as Level 2 measurements, where the security is frequently traded in less active markets, fair value is based on the closing price at the end of the period; where the security is less frequently traded, fair value is based on the price a dealer would pay for the security or similar securities, adjusted for any terms specific to that asset or liability. Market inputs are obtained from well-established and recognized vendors of market data and subjected to tolerance and quality checks. For derivative assets and liabilities, standard industry models are used to calculate the fair value of the various financial instruments based on significant observable market inputs, such as foreign exchange rates, commodity prices, swap rates, interest rates and implied volatilities obtained from various market sources.

For pension plan assets classified as Level 3 measurements, total fair value is based on significant unobservable inputs including assumptions where there is little, if any, market activity for the investment. Investment managers, fund managers, or investment contract issuers provide valuations of the investment on a monthly or quarterly basis. These valuations are reviewed for reasonableness based on applicable sector, benchmark and company performance. Adjustments to valuations are made where appropriate. Where available, audited financial statements are obtained and reviewed for the investments as support for the manager’s investment valuation.

The tables below present the fair values of the company's pension assets by level within the fair value hierarchy, as described in Note 2 - Summary of Significant Accounting Policies:
Basis of Fair Value Measurements
Total
Level 1
Level 2
Level 3
For the year ended December 31, 2019
(In millions)
Cash and cash equivalents
$
1,343

$
1,343

$
—

$
—

U.S. equity securities 1
3,665

3,652

4

9

Non-U.S. equity securities
2,053

2,043

6

4

Debt – government-issued
3,693

—

3,693

—

Debt – corporate-issued
2,956

—

2,952

4

Debt – asset-backed
663

—

663

—

Private market securities
2

—

—

2

Real estate
33

—

—

33

Derivatives – asset position
2

—

2

—

Derivatives – liability position
(19
)
—

(19
)
—

Other
19

—

19

—

     Subtotal
$
14,410

$
7,038

$
7,320

$
52

Investments measured at net asset value
 
 
 
 
     Debt - government issued
37

 
 
 
     U.S. equity securities
20

 
 
 
     Non-U.S. equity securities
39

 
 
 
     Hedge funds
431

 
 
 
     Private market securities
1,371

 
 
 
     Real estate funds
516

 
 
 
Total investments measured at net asset value
$
2,414

 
 
 
Other items to reconcile to fair value of plan assets
 
 
 
 
     Pension trust receivables 2
763

 

 

 

     Pension trust payables 3
(646
)
 

 

 

Total
$
16,941

 

 

 

1.
The Corteva pension plans directly held $126 million (approximately 1 percent of total plan assets) of Corteva, Inc. common stock at December 31, 2019.
2.
Primarily receivables for investments securities sold.
3.
Primarily payables for investment securities purchased.


Basis of Fair Value Measurements
 
 
 
 
For the year ended December 31, 2018
 
 
 
 
(In millions)
Total
Level 14
Level 24
Level 34
Cash and cash equivalents
$
1,824

$
1,824

$
—

$
—

U.S. equity securities1
3,537

3,521

2

14

Non-U.S. equity securities
2,582

2,565

15

2

Debt – government-issued
3,659

211

3,448

—

Debt – corporate-issued
3,037

253

2,770

14

Debt – asset-backed
721

39

682

—

Hedge funds
162

162

—

—

Private market securities
1

—

—

1

Real estate
336

243

—

93

Derivatives – asset position
10

1

9

—

Derivatives – liability position
(18
)
—

(18
)
—

Other
233

9

18

206

     Subtotal
$
16,084

$
8,828

$
6,926

$
330

Investments measured at net asset value4
 
 
 
 
     Debt - government issued
208

 
 
 
     Hedge funds
678

 
 
 
     Private market securities
1,861

 
 
 
     Real estate funds
112

 
 
 
     Other
6

 
 
 
Total investments measured at net asset value
$
2,865

 
 
 
Other items to reconcile to fair value of plan assets
 
 
 
 
     Pension trust receivables2
210

 
 
 
     Pension trust payables3
(208
)
 

 

 

Total
$
18,951

 

 

 

1.
The Corteva pension plans directly held $684 million (approximately 4 percent of total plan assets) of DowDuPont common stock at December 31, 2018.
2.
Primarily receivables for investments securities sold.
3.
Primarily payables for investment securities purchased.
4.
Corteva's pension assets by fair value hierarchy at December 31, 2018 included approximately $1,657 million of Level 1 assets, $392 million of Level 2 assets, $259 million of Level 3 assets, and $606 million of investments measured at net asset value that were transferred to DuPont upon completion of the Separation.


The following table summarizes the changes in fair value of Level 3 pension plan assets for the years ended December 31, 2019 and 2018:
Fair Value Measurement of Level 3 Pension Plan Assets
U.S. equity securities
Non-U.S. equity securities
Debt – corporate-issued
Debt-
asset-
backed
Hedge funds
Private market securities
Real estate
Other
Total
(In millions)
Balance at January 1, 2018
$
17

$
3

$
27

$
2

$
2

$
14

$
96

$
—

$
161

Actual return on assets:
 
 
 
 
 
 
 
 
 
Relating to assets sold during the year ended December 31, 2018
(1
)
(4
)
(80
)
—

—

—

2

—

(83
)
Relating to assets held at December 31, 2018
(4
)
3

87

—

—

(3
)
—

(11
)
72

Purchases, sales and settlements, net
3

—

(15
)
—

—

—

(3
)
217

202

Transfers out of Level 3, net
(1
)
—

(5
)
(2
)
(2
)
(10
)
(2
)
—

(22
)
Balance at December 31, 2018
$
14

$
2

$
14

$
—

$
—

$
1

$
93

$
206

$
330

Actual return on assets:
 
 
 
 
 
 
 
 
 
Relating to assets sold during the year ended December 31, 2019
(2
)
1

9

—

—

—

(29
)
—

(21
)
Relating to assets held at December 31, 2019
(5
)
—

(8
)
—

—

4

25

—

16

Purchases, sales and settlements, net
2

2

(12
)
—

—

(3
)
(3
)
—

(14
)
Transfers out of Level 3, net
—

(1
)
1

—

—

—

—

—

—

Assets transferred at Separation
—

—

—

—

—

—

(53
)
(206
)
(259
)
Balance at December 31, 2019
$
9

$
4

$
4

$
—

$
—

$
2

$
33

$
—

$
52



Trust Assets
EID entered into a trust agreement in 2013 (as amended and restated in 2017) that established and requires EID to fund the Trust for cash obligations under certain non-qualified benefit and deferred compensation plans upon a change in control event as defined in the Trust agreement. Under the Trust agreement, the consummation of the Merger was a change in control event. As a result, in November 2017, EID contributed $571 million to the Trust. During the year ended December 31, 2018, $68 million was distributed to EID according to the Trust agreement and at December 31, 2018, the balance in the Trust was $500 million. At the Separation, Corteva transferred $39 million to DuPont. During the year ended December 31, 2019, $62 million was distributed to EID according to the Trust agreement and at December 31, 2019, the balance in the Trust was $409 million.

Defined Contribution Plans
Corteva provides defined contribution benefits to its employees. The most significant is the U.S. Retirement Savings Plan ("the Plan"), which covers all U.S. full-service employees. This Plan includes a non-leveraged Employee Stock Ownership Plan ("ESOP"). Employees are not required to participate in the ESOP and those who do are free to diversify out of the ESOP. The purpose of the Plan is to provide retirement savings benefits for employees and to provide employees an opportunity to become stockholders of the company. The Plan is a tax qualified contributory profit sharing plan, with cash or deferred arrangement and any eligible employee of Corteva may participate. Currently, Corteva contributes 100 percent of the first 6 percent of the employee's contribution election and also contributes 3 percent of each eligible employee's eligible compensation regardless of the employee's contribution.

Corteva's contributions to the Plan were $142 million, $183 million, $53 million and $129 million for the year ended December 31, 2019, the year ended December 31, 2018, the period September 1 through December 31, 2017, and the period January 1 through August 31, 2017, respectively. Corteva's matching contributions vest immediately upon contribution. The 3 percent nonmatching company contribution vests after employees complete three years of service. In addition, Corteva made contributions to other defined contribution plans of $46 million, $82 million, $30 million and $33 million for the year ended December 31, 2019, the year ended December 31, 2018, the period September 1 through December 31, 2017, and the period January 1 through August 31, 2017, respectively. Included in Corteva's contributions are amounts related to discontinued operations of $73 million, $148 million, $42 million, and $107 million for the year ended December 31, 2019, the year ended December 31, 2018, the period September 1 through December 31, 2017, and the period January 1 through August 31, 2017, respectively.