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Segment Reporting (Notes)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block] SEGMENT INFORMATION

In connection with the Internal Reorganizations and the Corteva Distribution, the company realigned its reporting structure and changed the manner in which the chief operating decision maker (“CODM”) allocates resources and assesses performance. As a result, new operating segments were created, seed and crop protection. The segment reporting changes were retrospectively applied to all periods presented, with the exception of the Successor and Predecessor periods of 2017 (see below for further discussion).

Segment operating EBITDA is the primary measure of segment profitability used by Corteva’s CODM. For all periods presented below, segment operating EBITDA is calculated on a pro forma basis, as this is the manner in which the CODM assesses performance and allocates resources. The company defines segment operating EBITDA as earnings (i.e., income from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating costs-net and foreign exchange gains (losses), excluding the impact of significant items (including goodwill impairment charges). Non-operating costs-net consists of non-operating pension and other post-employment benefit (OPEB) 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.

Pro forma adjustments used in the calculation of pro forma segment operating EBITDA were determined in accordance with Article 11 of Regulation S-X. These adjustments give effect to the Merger, the debt retirement transactions related to paying off or retiring portions of EID’s existing debt liabilities (as discussed in Note 17 - Short-Term Borrowings, Long-Term Debt and Available Credit Facilities, to the Consolidated Financial Statements), and the separation and distribution to DowDuPont stockholders of all the outstanding shares of Corteva common stock as if they had been consummated on January 1, 2016.

Corporate Profile
The company conducts its global operations through the following reportable segments:

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

Crop Protection
The crop protection segment serves the global agricultural input industry with products that protect against weeds, insects and other pests, and disease, and that improve overall crop health both above and below ground via nitrogen management and seed-applied technologies. The segment is a leader in global herbicides, insecticides, below-ground nitrogen stabilizers and pasture and range management herbicides.


(In millions)
Seed
Crop Protection
Total
As of and for the Year Ended December 31, 2019 (Successor)
 

 

 

Net sales
$
7,590

$
6,256

$
13,846

Pro forma segment operating EBITDA
$
1,040

$
1,066

$
2,106

Depreciation and amortization
$
628

$
372

$
1,000

Segment assets1
$
25,387

$
13,492

$
38,879

Investments in nonconsolidated affiliates
$
27

$
39

$
66

Purchases of property, plant and equipment
$
373

$
293

$
666

As of and for the Year Ended December 31, 2018 (Successor)
 

 

 

Net sales
$
7,842

$
6,445

$
14,287

Pro forma segment operating EBITDA
$
1,139

$
1,074

$
2,213

Depreciation and amortization
$
534

$
375

$
909

Segment assets
$
29,286

$
9,346

$
38,632

Investments in nonconsolidated affiliates
$
102

$
36

$
138

Purchases of property, plant and equipment
$
263

$
250

$
513

1.
On June 1, 2019, as a result of changes in reportable segments, $3,382 million of goodwill was reallocated from the seed reportable segment to the crop protection reportable segment.  This change was not reflected in segment assets prior to June 1, 2019. 

As previously noted, the Predecessor period reflects the results of operations and assets and liabilities of Historical DuPont and excludes the DAS business. As a result, the company's segment results for the Predecessor and Successor periods of 2017 do not reflect the manner in which the company's CODM assesses performance and allocates resources, therefore the company determined that presenting segment results for each standalone period in 2017 would not be meaningful to the reader. Therefore, segment metrics are not presented for the Successor and Predecessor periods of 2017.

Reconciliation to Consolidated Financial Statements
Income (loss) from continuing operations after income taxes to pro forma segment operating EBITDA1
(In millions)
For the Year Ended
December 31, 2019
For the Year Ended
December 31, 2018
Loss from continuing operations after income taxes
$
(270
)
$
(6,775
)
Benefit from income taxes on continuing operations
(46
)
(31
)
Loss from continuing operations before income taxes
(316
)
(6,806
)
Depreciation and amortization
1,000

909

Interest income
(59
)
(86
)
Interest expense
136

337

Exchange losses - net 2
66

77

Non-operating benefits - net
(129
)
(211
)
Goodwill impairment charge
—

4,503

Significant items
991

1,346

Pro forma adjustments
298

2,003

Corporate expenses
119

141

Pro forma segment operating EBITDA
$
2,106

$
2,213

1.
Segment operating EBITDA for all periods is presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X.
2.
Excludes a $(33) million foreign exchange loss for the year ended December 31, 2019 associated with the devaluation of the Argentine peso and a $(50) million foreign exchange loss for the year ended December 31, 2018 related to adjustments to foreign currency exchange contracts as a result of U.S. tax reform, as they are included within significant items. See Note 9 - Supplementary Information, for additional information.


Segment assets to total assets (in millions)
December 31, 2019
December 31, 2018
Total segment assets
$
38,879

$
38,632

Corporate assets
3,518

4,417

Assets related to discontinued operations1
—

65,634

Total assets
$
42,397

$
108,683

1.
See Note 5 - Divestitures and Other Transactions, for additional information on discontinued operations.

Other Items (in millions)
Segment Totals
Adjustments 1
Consolidated Totals
As of and For the Year Ended December 31, 2019
 
 
 
Depreciation and amortization
$
1,000

$
599

$
1,599

Investments in nonconsolidated affiliates
$
66

$
—

$
66

Purchase of property, plant, and equipment
$
666

$
497

$
1,163

As of and For the Year Ended December 31, 2018
 
 
 
Depreciation and amortization
$
909

$
1,881

$
2,790

Investments in nonconsolidated affiliates
$
138

$
—

$
138

Purchase of property, plant, and equipment
$
513

$
988

$
1,501

1.
See Note 5 - Divestitures and Other Transactions, for additional information.

Significant Pre-tax (Charges) Benefits Not Included in Pro Forma Segment Operating EBITDA
The years ended December 31, 2019 and 2018, respectively, included the following significant pro forma pre-tax (charges) benefits which are excluded from pro forma segment operating EBITDA:
(In millions)
Seed
Crop Protection
Corporate
Total
For the Year Ended December 31, 2019
 
 
 
 
Restructuring and Asset Related Charges - Net 1
$
(213
)
$
(23
)
$
14

$
(222
)
Integration and Separation Costs 2
—

—

(632
)
(632
)
Loss on Divestiture 3
(24
)
—

—

(24
)
Amortization of Inventory Step Up 4
(67
)
—

—

(67
)
Loss on Early Extinguishment of Debt 5
—

—

(13
)
(13
)
Argentina Currency Devaluation 6
—

—

(33
)
(33
)
Total
$
(304
)
$
(23
)
$
(664
)
$
(991
)
(In millions)
Seed
Crop Protection
Corporate
Total
For the Year Ended December 31, 2018
 
 
 
 
Restructuring and Asset Related Charges - Net 1
$
(368
)
$
(58
)
$
(268
)
$
(694
)
Integration Costs 2
—

—

(571
)
(571
)
Gain on Sale 7
24

—

—

24

Loss on Deconsolidation of Subsidiary 8
(53
)
—

—

(53
)
Loss on Divestiture 9
(2
)
—

—

(2
)
Income Tax Items 10
—

—

(50
)
(50
)
Total
$
(399
)
$
(58
)
$
(889
)
$
(1,346
)
1.
Includes Board approved restructuring plans and asset related charges, which includes other asset impairments. See Note 7 - Restructuring and Asset Related Charges - Net, for additional information.
2.
Integration and separation costs related to post-Merger integration and Business Separation activities. Beginning in the second quarter of 2019, this includes both integration and separation costs.
3.
Includes a loss recorded in other income (expense) - net related to Historical Dow’s sale of a joint venture related to synergy actions.
4.
Includes charges related to the amortization on the inventory that was stepped up to fair value in connection with the Merger, recognized in cost of goods sold.
5.
Includes a loss 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.
6.
Includes a charge included in other income (expense) - 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 US dollar and in September of 2019, the country’s central bank announced new restrictions on foreign currency transactions. 
7.
Includes a gain recorded in other income (expense) - net related to an asset sale.
8.
Includes a loss recorded in other income (expense) - net related to the deconsolidation of a subsidiary.
9.
Includes a loss recorded in other income (expense) - net related to an asset sale.
10.
Includes a foreign exchange loss recorded in other income (expense) - net related to adjustments to foreign currency exchange contracts as a result of U.S. tax reform.