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EID Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Geographic Allocation of Income and Provision for Income Taxes


Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes	For the Year Ended December 31,
(In millions)	2021		2020		2019
Income (loss) from continuing operations before income taxes
Domestic	$	941	$	(83)	$	(1,352)
Foreign	1,405		758		1,036
Income (loss) from continuing operations before income taxes	$	2,346	$	675	$	(316)
Current tax expense (benefit)
Federal	$	(13)	$	28	$	(11)
State and local	6		9		1
Foreign	329		222		317
Total current tax expense (benefit)	$	322	$	259	$	307
Deferred tax expense (benefit)
Federal	$	164	$	(116)	$	(392)
State and local	55		27		156
Foreign	(17)		(251)		(117)
Total deferred tax expense (benefit)	$	202	$	(340)	$	(353)
Provision for (benefit from) income taxes on continuing operations	524		(81)		(46)
Net income (loss) from continuing operations after taxes	$	1,822	$	756	$	(270)

Reconciliation to US Statutory Rate


Reconciliation to U.S. Statutory Rate	For the Year Ended December 31,
	2021		2020		2019
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Effective tax rates on international operations - net 1	(2.5)		(13.9)		(18.4)
Acquisitions, divestitures and ownership restructuring activities 2	(0.1)		(0.3)		(10.7)
U.S. research and development credit	(2.4)		(2.9)		7.0
Exchange gains/losses 3	1.9		3.5		(1.8)
State and local incomes taxes - net	2.1		4.0		3.2
Impact of Swiss Tax Reform4	0.2		(27.0)		11.9
Excess tax benefits/deficiencies from stock compensation	(0.2)		1.0		(0.6)
Tax settlements and expiration of statute of limitations	—		0.4		3.9


Other - net	2.3		2.2		(0.9)
Effective tax rate on income from continuing operations	22.3	%	(12.0)	%	14.6	%

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. Includes a tax benefit of $(51) million for the year ended December 31, 2020, related to a return to accrual adjustment associated with an elective change in accounting method for the 2019 tax year impact of foreign tax provisions.

2. See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, to the Consolidated Financial Statements, for additional information.

3. 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.

4. Reflects tax benefits of $(182) million primarily driven by the recognition of an elective cantonal component of the recent enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform") for the year ended December 31, 2020. Reflects tax benefits of $(38) million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform"), for the year ended December 31, 2019.

EID [Member]

Geographic Allocation of Income and Provision for Income Taxes


Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes	For the Year Ended December 31,
(In millions)	2021		2020		2019
Income (loss) from continuing operations before income taxes
Domestic	$	892	$	(183)	$	(1,458)
Foreign	1,404		758		1,036
Income (loss) from continuing operations before income taxes	$	2,296	$	575	$	(422)
Current tax expense (benefit)
Federal	$	(23)	$	8	$	(11)
State and local	4		5		1
Foreign	329		222		317
Total current tax expense (benefit)	$	310	$	235	$	307
Deferred tax (benefit) expense
Federal	$	164	$	(116)	$	(417)
State and local	55		27		156
Foreign	(17)		(251)		(117)
Total deferred tax expense (benefit)	$	202	$	(340)	$	(378)
Provision for (benefit from) income taxes on continuing operations	512		(105)		(71)
Net income (loss) from continuing operations	$	1,784	$	680	$	(351)

Reconciliation to US Statutory Rate


Reconciliation to U.S. Statutory Rate	For the Year Ended December 31,
	2021		2020		2019
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
Effective tax rates on international operations - net 1	(2.6)		(16.4)		(13.8)
Acquisitions, divestitures and ownership restructuring activities 2	(0.1)		(0.3)		(8.0)
U.S. research and development credit	(2.5)		(3.4)		5.2
Exchange gains/losses 3	1.9		4.1		(1.3)
State and local income taxes - net	2.2		4.2		3.0
Impact of Swiss Tax Reform 4	0.2		(31.7)		8.9
Excess tax benefits/deficiencies from stock compensation	(0.2)		1.2		(0.5)
Tax settlements and expiration of statute of limitations	—		0.4		2.9

Other - net	2.3		2.6		(0.6)
Effective tax rate	22.2	%	(18.3)	%	16.8	%

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. Includes a tax benefit of $(51) million for the year ended December 31, 2020, related to a return to accrual adjustment associated with an elective change in accounting method that alters the 2019 impact of foreign tax provisions.

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.