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Segment Reporting (Notes)
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment operating EBITDA is the primary measure of segment profitability used by Corteva’s chief operating decision maker ("CODM"). 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 (benefits) costs - net and foreign exchange gains (losses), excluding the impact of significant items. Non-operating (benefits) costs - net consists of non-operating pension and other post-employment benefit (OPEB) 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. For purposes of the six months ended June 30, 2019, segment operating EBITDA is calculated on a pro forma basis, as this is the manner in which the CODM assesses performance and allocates resources.

Pro forma adjustments used in the calculation of pro forma segment operating EBITDA for the six months ended June 30, 2019 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 (refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information), 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.

As of and for the Three Months Ended June 30,
(In millions)
Seed
Crop Protection
Total
2020
 

 

 

Net sales
$
3,538

$
1,653

$
5,191

Segment operating EBITDA
$
956

$
309

$
1,265

Segment assets1
$
24,356

$
13,034

$
37,390

 




 
2019
 

 

 

Net sales
$
3,699

$
1,857

$
5,556

Segment operating EBITDA
$
1,036

$
450

$
1,486

Segment assets1
$
26,623

$
13,205

$
39,828

1.
Segment assets at December 31, 2019 were $25,387 million and $13,492 million for Seed and Crop Protection, respectively.
     
For the Six Months Ended June 30,
(In millions)
Seed
Crop Protection
Total
2020
 

 

 

Net sales
$
5,993

$
3,154

$
9,147

Segment operating EBITDA
$
1,537

$
547

$
2,084

 




 
2019
 

 

 

Net sales
$
5,666

$
3,286

$
8,952

Pro forma segment operating EBITDA
$
1,361

$
670

$
2,031




Reconciliation to interim Consolidated Financial Statements
Income from continuing operations after income taxes to segment operating EBITDA

(In millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020
2019
2020
2019 1
Income from continuing operations after income taxes
$
766

$
483

$
1,047

$
299

Provision for income taxes on continuing operations
78

270

205

203

Income from continuing operations before income taxes
844

753

1,252

502

Depreciation and amortization
300

227

583

485

Interest income
(9
)
(17
)
(27
)
(33
)
Interest expense
14

34

24

93

Exchange (gains) losses - net 
(1
)
32

60

59

Non-operating benefits - net
(91
)
(32
)
(164
)
(74
)
Significant items
179

455

302

640

Pro forma adjustments
 
 
 
298

Corporate expenses
29

34

54

61

Segment operating EBITDA
$
1,265

$
1,486

$
2,084

$
2,031

1.
Period is presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X.

Segment assets to total assets (in millions)
June 30, 2020
December 31, 2019
June 30, 2019
Total segment assets
$
37,390

$
38,879

$
39,828

Corporate assets
4,790

3,518

4,094

Total assets
$
42,180

$
42,397

$
43,922



Significant Pre-tax Charges Not Included in Segment Operating EBITDA
The three and six months ended June 30, 2020 and 2019, respectively, included the following significant pre-tax charges which are excluded from segment operating EBITDA:
(In millions)
Seed
Crop Protection
Corporate
Total
For the Three Months Ended June 30, 2020
 
 
 
 
Restructuring and Asset Related Charges - Net 1
$
(135
)
$
(40
)
$
(4
)
$
(179
)
Total
$
(135
)
$
(40
)
$
(4
)
$
(179
)
(In millions)
Seed
Crop Protection
Corporate
Total
For the Three Months Ended June 30, 2019
 
 
 
 
Restructuring and Asset Related Charges - Net 1
$
(49
)
$
(2
)
$
(9
)
$
(60
)
Integration and Separation Costs 2
—

—

(330
)
(330
)
Amortization of inventory step up3
(52
)
—

—

(52
)
Loss on early extinguishment of debt4
—

—

(13
)
(13
)
Total
$
(101
)
$
(2
)
$
(352
)
$
(455
)
(In millions)
Seed
Crop Protection
Corporate
Total
For the Six Months Ended June 30, 2020
 
 
 
 
Restructuring and Asset Related Charges - Net 1
$
(145
)
$
(58
)
$
(46
)
$
(249
)
Loss on Divestiture5
—

(53
)
—

(53
)
Total
$
(145
)
$
(111
)
$
(46
)
$
(302
)
(In millions)
Seed
Crop Protection
Corporate
Total
For the Six Months Ended June 30, 20197
 
 
 
 
Restructuring and Asset Related Charges - Net 1
$
(76
)
$
(25
)
$
(20
)
$
(121
)
Integration and Separation Costs 2
—

—

(430
)
(430
)
Amortization of inventory step up3
(52
)
—

—

(52
)
Loss on early extinguishment of debt4
—

—

(13
)
(13
)
Loss on Divestiture6
(24
)
—

—

(24
)
Total
$
(152
)
$
(25
)
$
(463
)
$
(640
)
1.
Includes Board approved restructuring plans and asset related charges as well as accelerated prepaid amortization expense. See Note 5 - Restructuring and Asset Related Charges - Net, for additional information.
2.
Integration and separation costs include costs incurred to prepare for and close the Merger, post-Merger integration expenses, and costs incurred to prepare for the Business Separations.
3.
Includes a charge related to the amortization of the inventory that was stepped up to fair value in connection with the Merger.
4.
Includes a loss on 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.
5.
Includes a loss recorded in other income - net related to the expected sale of the La Porte site.
6.
Includes a loss recorded in other income - net related to DAS’s sale of a joint venture related to synergy actions.
7.
Period is presented on a pro forma basis, prepared in accordance with Article 11 of Regulation S-X.