Segment Reporting (Notes)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

Corteva’s reportable segments reflects the manner in which its chief operating decision maker ("CODM") allocates resources and assesses performance, which is at the operating segment level (seed and crop protection). For purposes of allocating resources to the segments and assessing segment performance, segment operating EBITDA is the primary measure used by Corteva’s CODM. The company defines segment operating EBITDA as earnings (loss) (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating benefits (costs), foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) benefits (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. Net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting represents the non-cash net gain (loss) from changes in fair value of certain undesignated foreign currency derivative contracts. Upon settlement, which is within the same calendar year of execution of the contract, the realized gain (loss) from the changes in fair value of the non-qualified foreign currency derivative contracts will be reported in the respective segment results to reflect the economic effects of the foreign currency derivative contracts without the resulting unrealized mark to fair value volatility.

As of and for the Three Months Ended June 30, (In millions)	Seed		Crop Protection		Total
2022
Net sales	$	3,947	$	2,305	$	6,252
Segment operating EBITDA	$	1,240	$	509	$	1,749
Segment assets1	$	22,757	$	13,532	$	36,289
2021
Net sales	$	3,780	$	1,847	$	5,627
Segment operating EBITDA	$	1,123	$	370	$	1,493
Segment assets1	$	23,804	$	12,996	$	36,800

1.    Segment assets at December 31, 2021 were $23,270 million and $12,428 million for Seed and Crop Protection, respectively.

For the Six Months Ended June 30, (In millions)	Seed		Crop Protection		Total
2022
Net Sales	$	6,471	$	4,382	$	10,853
Segment operating EBITDA	$	1,809	$	1,000	$	2,809
2021
Net sales	$	6,272	$	3,533	$	9,805
Segment operating EBITDA	$	1,740	$	691	$	2,431

Reconciliation to interim Consolidated Financial Statements

Income (loss) from continuing operations after income taxes to segment operating EBITDA (In millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Income (loss) from continuing operations after income taxes	$	1,002	$	1,018	$	1,579	$	1,631
Provision for (benefit from) income taxes on continuing operations	325		284		446		462
Income (loss) from continuing operations before income taxes	1,327		1,302		2,025		2,093
Depreciation and amortization	302		313		609		617
Interest income	(24)		(18)		(39)		(39)
Interest expense	16		7		25		14
Exchange (gains) losses	36		14		83		49
Non-operating (benefits) costs	(60)		(315)		(125)		(626)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges	(33)		23		3		22
Significant items (benefit) charge	155		135		177		235
Corporate expenses	30		32		51		66
Segment operating EBITDA	$	1,749	$	1,493	$	2,809	$	2,431

Segment assets to total assets (in millions)	June 30, 2022		December 31, 2021		June 30, 2021
Total segment assets	$	36,289	$	35,698	$	36,800
Corporate assets	4,617		6,646		4,696
Total assets	$	40,906	$	42,344	$	41,496

Significant Pre-tax (Charges) Benefits Not Included in Segment Operating EBITDA

The three and six months ended June 30, 2022, respectively, included the following significant pre-tax (charges) benefits which are excluded from segment operating EBITDA:

(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended June 30, 2022
Restructuring and Asset Related Charges - Net 1	$	(126)	$	(2)	$	(15)	$	(143)
Inventory write-offs3	(1)		—		—		(1)
Loss on exit of non-strategic asset3	(5)		—		—		(5)
Settlement costs associated with Russia Exit3	(6)		—		—		(6)
Total	$	(138)	$	(2)	$	(15)	$	(155)

(In millions)	Seed		Crop Protection		Corporate		Total
For the Three Months Ended June 30, 2021
Restructuring and Asset Related Charges - Net 1	$	(115)	$	(11)	$	(9)	$	(135)
Total	$	(115)	$	(11)	$	(9)	$	(135)

(In millions)	Seed		Crop Protection		Corporate		Total
For the Six Months Ended June 30, 2022
Restructuring and Asset Related Charges - Net 1	$	(131)	$	—	$	(17)	$	(148)
Estimated settlement expense2	—		(17)		—		(17)
Inventory write-offs3	(1)		—		—		(1)
Loss on exit of non-strategic asset3	(5)		—		—		(5)
Settlement costs associated with Russia Exit3	(6)		—		—		(6)
Total	$	(143)	$	(17)	$	(17)	$	(177)

(In millions)	Seed		Crop Protection		Corporate		Total
For the Six Months Ended June 30, 2021
Restructuring and Asset Related Charges - Net 1	$	(136)	$	(43)	$	(56)	$	(235)
Total	$	(136)	$	(43)	$	(56)	$	(235)

1.Includes Board approved restructuring plans and asset related charges as well as accelerated prepaid amortization expense. See Note 4 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements, for additional information.

2.Consists of estimated Lorsban® related reserves

3.Incremental losses associated with activities related to the 2022 Restructuring Actions.