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EID Income Taxes (Notes)
 12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Text Block] INCOME TAXES

On December 22, 2017, the Tax Cuts and Jobs Act (“The Act”) was enacted. The Act reduces the U.S. federal corporate income tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax (“transition tax”) on earnings of certain foreign subsidiaries that were previously tax deferred, creates new provisions related to foreign sourced earnings, eliminates the domestic manufacturing deduction and moves to a territorial system. At December 31, 2017, the Company had not completed its accounting for the tax effects of The Act; however, as described below, the company made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax. In accordance with Staff Accounting Bulletin 118 ("SAB 118"), income tax effects of The Act were refined upon obtaining, preparing, or analyzing additional information during the measurement period. At December 31, 2018, the company had completed its accounting for the tax effects of The Act.

•
As a result of The Act, the company remeasured its U.S. federal deferred income tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent. The company recorded a cumulative benefit of $2,847 million ($2,813 million benefit in the period September 1 through December 31, 2017 and $34 million benefit in the year ended December 31, 2018) to the provision for (benefit from) income taxes on continuing operations with respect to the remeasurement of the company's deferred tax balances. Of the $34 million benefit recorded in the year ended December 31, 2018, $114 million relates to the company's discretionary pension contribution in 2018, which was deducted on a 2017 tax return. The remaining charges relate to purchase accounting adjustments made throughout 2018.

•
The Act requires a mandatory deemed repatriation of post-1986 undistributed foreign earnings and profits (“E&P”), which results in a one-time transition tax. The company recorded a cumulative charge of $928 million ($746 million charge in the period September 1 through December 31, 2017 and $182 million charge in the year ended December 31, 2018) to the provision for (benefit from) income taxes on continuing operations with respect to the one-time transition tax.

•
In the year ended December 31, 2018, the company recorded an indirect impact of The Act related to prepaid tax on the intercompany sale of inventory. The amount recorded related to inventory was a $16 million charge to provision for income taxes on continuing operations.

•
For tax years beginning after December 31, 2017, The Act introduces new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). The company has made the policy election to record any liability associated with GILTI in the period in which it is incurred.

Geographic Allocation of (Loss) Income and Provision for (Benefit from) Income Taxes
Successor
Predecessor
(In millions)
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
(Loss) Income from continuing operations before income taxes
 
 
 
 
Domestic
$
(1,352
)
$
(5,040
)
$
(961
)
$
(519
)
Foreign
1,036

(1,766
)
500

482

Loss from continuing operations before income taxes
$
(316
)
$
(6,806
)
$
(461
)
$
(37
)
Current tax expense (benefit)
 
 
 
 
Federal
$
(11
)
$
(112
)
$
8

$
(581
)
State and local
1

(32
)
11

(117
)
Foreign
317

446

287

81

Total current tax expense (benefit)
$
307

$
302

$
306

$
(617
)
Deferred tax (benefit) expense
 
 
 
 
Federal
$
(392
)
$
(124
)
$
(2,373
)
$
188

State and local
156

(39
)
3

79

Foreign
(117
)
(170
)
(157
)
(45
)
Total deferred tax (benefit) expense
$
(353
)
$
(333
)
$
(2,527
)
$
222

Benefit from income taxes on continuing operations
(46
)
(31
)
(2,221
)
(395
)
Net (loss) income from continuing operations after taxes
$
(270
)
$
(6,775
)
$
1,760

$
358


Reconciliation to U.S. Statutory Rate
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
Statutory U.S. federal income tax rate
21.0
 %
21.0
 %
35.0
 %
35.0
 %
Equity earning effect
0.1

0.1

1.9

(2.7
)
Effective tax rates on international operations - net 1
(18.4
)
0.4

24.3

244.9

Acquisitions, divestitures and ownership restructuring activities 2, 3, 4
(10.7
)
(2.3
)
63.0

(64.7
)
U.S. research and development credit
7.0

0.1

1.4

24.4

Exchange gains/losses 5
(1.8
)
(1.3
)
(8.8
)
650.1

SAB 118 Impact of Enactment of U.S. Tax Reform6
—

(3.0
)
371.2

—

Impact of Swiss Tax Reform7
11.9

—

—

—

Excess tax benefits (tax deficiency) from stock compensation
(0.6
)
0.1

1.0

38.3

Tax settlements and expiration of statute of limitations8
3.9

(0.1
)
—

146.4

Goodwill impairment 9
—

(15.2
)
—

—

Other - net
2.2

0.7

(7.2
)
(4.1
)
Effective tax rate on income from continuing operations
14.6
 %
0.5
 %
481.8
 %
1,067.6
 %
1.
Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results.
2.
See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, for additional information.
3.
Includes a net tax charge of $50 million related to repatriation activities to facilitate the Business Separations for the year ended December 31, 2018.
4.
Includes a net tax charge of $25 million and a net tax benefit of $261 million for the year ended December 31, 2018 and the period September 1 through December 31, 2017, respectively, related to an internal legal entity restructuring associated with the Business Separations.
5.
Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 9 - Supplementary Information, and Note 22 - Financial Instruments, under the heading Foreign Currency Risk.
6.
Reflects a net tax benefit of $2,067 million and a net tax charge of $164 million associated with the company's completion of the accounting for the tax effects of The Act for the period September 1 through December 31, 2017 and the year ended December 31, 2018, respectively.
7.
Reflects tax benefits of $38 million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform").
8.
The period January 1 through August 31, 2017 includes a tax benefit of $46 million related to changes in accruals for certain prior year tax positions and the tax effect of the associated accrued interest reversals.
9.
Reflects the impact of the non-tax-deductible, non-cash impairment charge for the agriculture reporting unit and corresponding $75 million tax charge associated with a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil for the year ended December 31, 2018.

Deferred Tax Balances at December 31
2019
2018
(In millions)
Assets
Liabilities
Assets
Liabilities
Property
$
—

$
369

$
—

$
344

Tax loss and credit carryforwards1
761

—

842

—

Accrued employee benefits
1,717

—

1,392

—

Other accruals and reserves
135

—

263

—

Intangibles
—

2,738

—

2,648

Inventory
25

—

—

40

Long-term debt
—

—

24

—

Investments
53

—

7

—

Unrealized exchange gains/losses
—

39

—

140

Other – net
279

—

137

—

Subtotal
$
2,970

$
3,146

$
2,665

$
3,172

Valuation allowances2
(457
)
—

(669
)
—

Total
$
2,513

$
3,146

$
1,996

$
3,172

Net Deferred Tax Liability
$
(633
)
 
$
(1,176
)
 
1.
Primarily related to the realization of recorded tax benefits on tax loss and credit carryforwards from operations in the United States, Brazil, and Spain.    
2.
During the year ended December 31, 2019, the company released a valuation allowance against the net deferred tax asset position of a legal entity in Switzerland in connection with an internal merger, resulting in a tax benefit of $34 million. During the year ended December 31, 2018, the company established a full valuation allowance against the net deferred tax asset position of a legal entity in Brazil due to revised financial projections, resulting in tax expense of $75 million. See Note 15 - Goodwill and Other Intangible Assets, for additional information.

Operating Loss and Tax Credit Carryforwards
Deferred Tax Asset
(In millions)
2019
2018
Operating loss carryforwards
 
 
Expire within 5 years
$
131

$
78

Expire after 5 years or indefinite expiration
400

559

Total operating loss carryforwards
$
531

$
637

Tax credit carryforwards
 
 
Expire within 5 years
$
30

$
27

Expire after 5 years or indefinite expiration
200

178

Total tax credit carryforwards
$
230

$
205

Total Operating Loss and Tax Credit Carryforwards
$
761

$
842



Total Gross Unrecognized Tax Benefits
Successor
Predecessor
(In millions)
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
Total unrecognized tax benefits as of beginning of period
$
749

$
741

$
709

$
596

Decreases related to positions taken on items from prior years
(167
)
(44
)
(2
)
(19
)
Increases related to positions taken on items from prior years
77

74

9

3

Increases related to positions taken in the current year
54

9

28

49

Settlement of uncertain tax positions with tax authorities
(9
)
(13
)
1

(6
)
Impact of Internal Reorganizations
(278
)
—

—

—

Decreases due to expiration of statutes of limitations
—

(5
)
(5
)
(86
)
Exchange (gain) loss
—

(13
)
1

1

Total unrecognized tax benefits as of end of period
$
426

$
749

$
741

$
538

Total unrecognized tax benefits that, if recognized, would impact the effective tax rate
$
188

$
45

$
51

$
131

Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations
$
(4
)
$
11

$
1

$
(27
)
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period
$
24

$
45

$
47

$
40



Each year the company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the company. As a result, there is an uncertainty in income taxes recognized in the company's financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. It is reasonably possible that changes to the company’s global unrecognized tax benefits could be significant; however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of increases or decreases that may occur within the next twelve months cannot be made.

Tax years that remain subject to examination for the company’s major tax jurisdictions are shown below:
Tax Years Subject to Examination by Major Tax Jurisdiction at Dec 31,
Earliest Open Year
Jurisdiction
Argentina
2013
Brazil
2014
Canada
2013
China
2008
France
2016
India
1996
Italy
2015
Switzerland
2015
United States:
 
Federal income tax
2012
State and local income tax
2001


Undistributed earnings of foreign subsidiaries and related companies that are deemed to be permanently invested amounted to $4,614 million at December 31, 2019. In addition to the U.S. federal tax imposed by The Act on all accumulated unrepatriated earnings through December 31, 2017, The Act introduced additional U.S. federal tax on foreign earnings, effective as of January 1, 2018. The undistributed foreign earnings as of December 31, 2019 may still be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. The company is still asserting indefinite reinvestment related to certain investments in foreign subsidiaries. It is not practicable to calculate the unrecognized deferred tax liability on undistributed foreign earnings due to the complexity of the hypothetical calculation.

For periods between the Merger Effectiveness Time and the Corteva Distribution, Corteva and its subsidiaries were included in DowDuPont's consolidated federal income tax group and consolidated tax return.  Generally, the consolidated tax liability of the DowDuPont U.S. tax group for each year was apportioned among the members of the consolidated group based on each member’s separate taxable income.  Corteva, DuPont and Dow intend that to the extent Federal and/or State corporate income tax liabilities are reduced through the utilization of tax attributes of the other, settlement of any receivable and payable generated from the use of the other party’s sub-group attributes will be in accordance with a tax sharing agreement and/or tax matters agreement. See Note 5 - Divestitures and Other Transactions, for further information related to indemnifications between Corteva, Dow and DuPont.
EID [Member]  
Income Tax Disclosure [Text Block]

Refer to page F-43 of the Corteva, Inc. Consolidated Financial Statements for discussion of tax items that do not differ between Corteva, Inc. and EID.
Geographic Allocation of (Loss) Income and Provision for (Benefit from) Income Taxes
Successor
Predecessor
(In millions)
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
(Loss) Income from continuing operations before income taxes
 
 
 
 
Domestic
$
(1,458
)
$
(5,040
)
$
(961
)
$
(519
)
Foreign
1,036

(1,766
)
500

482

Loss from continuing operations before income taxes
$
(422
)
$
(6,806
)
$
(461
)
$
(37
)
Current tax expense (benefit)
 
 
 
 
Federal
$
(11
)
$
(112
)
$
8

$
(581
)
State and local
1

(32
)
11

(117
)
Foreign
317

446

287

81

Total current tax expense (benefit)
$
307

$
302

$
306

$
(617
)
Deferred tax (benefit) expense
 
 
 
 
Federal
$
(417
)
$
(124
)
$
(2,373
)
$
188

State and local
156

(39
)
3

79

Foreign
(117
)
(170
)
(157
)
(45
)
Total deferred tax (benefit) expense
$
(378
)
$
(333
)
$
(2,527
)
$
222

Benefit from income taxes on continuing operations
(71
)
(31
)
(2,221
)
(395
)
Net (loss) income from continuing operations
$
(351
)
$
(6,775
)
$
1,760

$
358



Reconciliation to U.S. Statutory Rate
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
Statutory U.S. federal income tax rate
21.0
 %
21.0
 %
35.0
 %
35.0
 %
Equity earning effect
0.1

0.1

1.9

(2.7
)
Effective tax rates on international operations - net 1
(13.8
)
0.4

24.3

244.9

Acquisitions, divestitures and ownership restructuring activities 2, 3, 4
(8.0
)
(2.3
)
63.0

(64.7
)
U.S. research and development credit
5.2

0.1

1.4

24.4

Exchange gains/losses 5
(1.3
)
(1.3
)
(8.8
)
650.1

SAB 118 Impact of Enactment of U.S. Tax Reform6
—

(3.0
)
371.2

—

Impact of Swiss Tax Reform7
8.9

—

—

—

Excess tax benefits (tax deficiency) from stock compensation
(0.5
)
0.1

1.0

38.3

Tax settlements and expiration of statute of limitations8
2.9

(0.1
)
—

146.4

Goodwill impairment 9
—

(15.2
)
—

—

Other - net
2.3

0.7

(7.2
)
(4.1
)
Effective tax rate
16.8
 %
0.5
 %
481.8
 %
1,067.6
 %
1.
Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results.
2.
See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, of the Corteva, Inc. Consolidated Financial Statements for additional information.
3.
Includes a net tax charge of $50 million related to repatriation activities to facilitate the Business Separations for the year ended December 31, 2018.
4.
Includes a net tax charge of $25 million and a net tax benefit of $261 million for the year ended December 31, 2018 and the period September 1 through December 31, 2017, respectively, related to an internal legal entity restructuring associated with the Business Separations.
5.
Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 9 - Supplementary Information, and Note 22 - Financial Instruments, of the Corteva, Inc. Consolidated Financial Statements under the heading Foreign Currency Risk.
6.
Reflects a net tax benefit of $2,067 million and a net tax charge of $164 million associated with the company's completion of the accounting for the tax effects of The Act for the period September 1 through December 31, 2017 and the year ended December 31, 2018, respectively.
7.
Reflects tax benefits of $38 million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform").
8.
The period January 1 through August 31, 2017 includes a tax benefit of $46 million related to changes in accruals for certain prior year tax positions and the tax effect of the associated accrued interest reversals.
9.
Reflects the impact of the non-tax-deductible, non-cash impairment charge for the agriculture reporting unit and corresponding $75 million tax charge associated with a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil for the year ended December 31, 2018.