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| Name | Symbol | Market | Type |
|---|---|---|---|
| EIDP Inc | NYSE:CTA-A | NYSE | Preference Share |
| Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 59.14 | 0 | 09:00:00 |
| (Mark One) | ||||||||
| ☒ | ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
| OR | ||||||||
| ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
| Delaware | 82-4979096 | ||||||||||||||||||||||
| (State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||
| 974 Centre Road, | Wilmington, | Delaware | 19805 | (302) | 485-3000 | ||||||||||||||||||
| (Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) | ||||||||||||||||||||||
| Delaware | 51-0014090 | ||||||||||||||||||||||
| (State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||
| 974 Centre Road, | Wilmington, | Delaware | 19805 | (302) | 485-3000 | ||||||||||||||||||
| (Address of Principal Executive Offices) (Zip Code) | (Registrant’s Telephone Number, including area code) | ||||||||||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| Common Stock, par value $0.01 per share | CTVA | New York Stock Exchange | ||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| $3.50 Series Preferred Stock | CTAPrA | New York Stock Exchange | ||||||
| $4.50 Series Preferred Stock | CTAPrB | New York Stock Exchange | ||||||
| Corteva, Inc. | Large Accelerated Filer | x |
Accelerated Filer o
|
Non-Accelerated Filer | o |
Smaller reporting company o
|
Emerging growth company o
|
||||||||||||||||
| E. I. du Pont de Nemours and Company | Large Accelerated Filer | o |
Accelerated Filer o
|
Non-Accelerated Filer | x |
Smaller reporting company o
|
Emerging growth company o
|
||||||||||||||||
| Seed Solutions Brands |
Pioneer®; Brevant™ seeds; Dairyland Seed®; Hoegemeyer®; Nutech®; Seed Consultants®; AgVenture®; Alforex®; PhytoGen®; Pannar®; VP Maxx®; HPT®; G2®; Supreme EX®; XL®; Power Plus®
|
||||
| Seed Solutions Traits and Technologies |
ENLIST E3® soybeans; ENLIST® cotton; EXZACT™ Precision Technology; HERCULEX® Insect Protection; Pioneer® brand hybrids with Leptra® insect protection technology offering protection against above ground pests; POWERCORE® Insect Trait Technology family of products; Pioneer® brand Optimum® AcreMax® family of products offering above and below ground insect protection; REFUGE ADVANCED® trait technology; SMARTSTAX® Insect Trait Technology; NEXERA™ canola; Omega-9 OilsTM; Pioneer® brand Optimum® AQUAmax® hybrids; Pioneer® brand A-Series soybeans; Pioneer® brand Plenish® high oleic soybeans; ExpressSun® herbicide tolerant trait; Pioneer® brand products with Pioneer Protector® technology for canola, sunflower and sorghum; Pioneer MAXIMUS® rapeseed hybrids; Qrome® corn products; Clearfield® canola; PROPOUND™; Conkesta™; Conkesta E3® soybeans; WideStrike® Insect Protection; WideStrike® 3 Insect Protection
|
||||
| Other |
LumiGEN® seed treatments, LUMIDERM®, LUMIVIA® and LUMIALZA™; GRANULAR®; ACREVALUE®; Granular® Insights™ (e.g. LANDVisor™)
|
||||
| Insect and Nematode Management |
CLOSER™; DELEGATE™; INTREPID®; ISOCLAST™; LANNATE™; EXALT®; PEXALON™; TRANSFORM™; VYDATE™; OPTIMUM®; RADIANT™; SENTRICON™; ENTRUST® SC; GF-120™; and TRACER™
|
||||
| Disease Management |
APROACH™ PRIMA; VESSARYA®; APROACH POWER™; TALENDO™; TALIUS®; EQUATION PRO®; EQUATION CONTACT®; ZORVEC™; DITHANE™; INATREQ™; CURZATE™; TANOS™, FONTELIS™; ACANTO®; and GALILEO®
|
||||
| Weed Control |
ARIGO®; ARYLEX®; ENLIST™ weed control system; ENLIST ONE™; BROADWAY™; RINSKOR™; ZYPAR™; MUSTANG®; GALLANT™; VERDICT™; LANCET®; KERB®; PIXXARO®; QUELEX™; GALLERY®; CENT-7®; SNAPSHOT®; TRELLIS®; CITADEL™; CLIPPER™; GRANITE®; RAINBOW™; PINDAR® GT; VIPER®; WIDEATTACK®; BELKAR®; WIDEMATCH®; PERFECTMATCH®; CLINCHER™; DURANGO™; FENCER®; GARLON™; SONIC®; TEXARO®; KEYSTONE®; PACTO®; LIGATE®; DIMENSION®; TOPSHOT™; RICER™; LOYANT™; CLASSIC®; REALM® Q; TRIVENCE®; LONTREL®; GRAZON®; PANZER®; PRIMUS®; RESICORE®; SPIDER®; STARANE®; SURESTART®; and TORDON®
|
||||
| Nitrogen Management | INSTINCT™; N-LOCK™; N-SERVE® Nitrogen Stabilizer | ||||
| Approximate U.S. | Approximate Other Countries | |||||||
| Within 5 years | 600 | 1,100 | ||||||
| 6 to 10 years | 1,300 | 3,500 | ||||||
| 11 to 16 years | 2,200 | 5,600 | ||||||
| 16 to 20 years | 1,300 | 300 | ||||||
| Total | 5,400 | 10,500 | ||||||
| Number of Sites | |||||||||||
| Crop | Seed | Total | |||||||||
|
North America1
|
6 | 43 | 49 | ||||||||
|
EMEA2
|
4 | 16 | 20 | ||||||||
| Latin America | 7 | 11 | 18 | ||||||||
| Asia Pacific | 5 | 5 | 10 | ||||||||
| Total | 22 | 75 | 97 | ||||||||
| Month | Total Number of Shares Purchased | Average Price Paid per Share |
Total Number of Shares Purchased as Part of the Company's Publicly Announced Share Buyback Program1
|
Approximate Value of Shares that May Yet Be Purchased Under the Programs1
(Dollars in millions)
|
||||||||||
| October 2020 | 2,862,214 | $ | 31.92 | 2,862,214 | $ | 801 | ||||||||
| November 2020 | 555,355 | 37.54 | 555,355 | 780 | ||||||||||
| December 2020 | 2,061,079 | 38.81 | 2,061,079 | 700 | ||||||||||
| Fourth quarter 2020 | 5,478,648 | $ | 35.08 | 5,478,648 | $ | 700 | ||||||||
| 6/3/2019 | 12/31/2019 | 12/31/2020 | |||||||||
| Corteva | $ | 100 | $ | 120 | $ | 161 | |||||
| S&P 500 Index | 100 | 119 | 141 | ||||||||
| S&P 500 Chemicals Index | 100 | 112 | 129 | ||||||||
| Successor | Predecessor | |||||||||||||||||||
| (Dollars in millions, except per share) | For the Year Ended December 31, 2020 | 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 | For the Year Ended December 31, 2016 | ||||||||||||||
| Summary of operations | ||||||||||||||||||||
| Net sales | $ | 14,217 | $ | 13,846 | $ | 14,287 | $ | 3,790 | $ | 6,894 | $ | 8,133 | ||||||||
| Income (loss) from continuing operations before income taxes | $ | 675 | $ | (316) | $ | (6,806) | $ | (461) | $ | (37) | $ | (527) | ||||||||
| Net income (loss) attributable to Corteva | $ | 681 | $ | (959) | $ | (5,065) | $ | 1,182 | $ | 1,734 | $ | 2,513 | ||||||||
| Basic earnings (loss) per share of common stock from continuing operations | $ | 0.98 | $ | (0.38) | $ | (9.08) | $ | 2.34 | $ | 0.40 | $ | (0.29) | ||||||||
| Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.98 | $ | (0.38) | $ | (9.08) | $ | 2.34 | $ | 0.40 | $ | (0.29) | ||||||||
| Financial position at year-end | ||||||||||||||||||||
|
Working capital1
|
$ | 6,220 | $ | 5,281 | $ | 3,740 | $ | 4,468 | $ | 2,916 | ||||||||||
|
Total assets2,3
|
$ | 42,649 | $ | 42,397 | $ | 108,683 | $ | 120,366 | $ | 40,041 | ||||||||||
| Borrowings and finance lease obligations | ||||||||||||||||||||
| Short-term borrowings and finance lease obligations | $ | 3 | $ | 7 | $ | 2,154 | $ | 2,752 | $ | 425 | ||||||||||
| Long-term debt | $ | 1,102 | $ | 115 | $ | 5,784 | $ | 10,299 | $ | 8,059 | ||||||||||
| Total equity | $ | 25,063 | $ | 24,555 | $ | 75,153 | $ | 79,593 | $ | 10,196 | ||||||||||
| General | ||||||||||||||||||||
| Dividends per common share | $ | 0.52 | $ | 0.26 | $ | 1.14 | $ | 1.52 | ||||||||||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Net Sales | $ | 14,217 | $ | 13,846 | $ | 14,287 | |||||
| For the Year Ended December 31, | ||||||||||||||||||||
| (In millions) | 2020 | 2019 | 2018 | |||||||||||||||||
| Net Sales | % of Net Sales | Net Sales | % of Net Sales | Net Sales | % of Net Sales | |||||||||||||||
| Worldwide | $ | 14,217 | 100 | % | $ | 13,846 | 100 | % | $ | 14,287 | 100 | % | ||||||||
|
North America
|
7,168 | 50 | % | 6,929 | 50 | % | 7,412 | 52 | % | |||||||||||
|
EMEA
|
2,842 | 20 | % | 2,740 | 20 | % | 2,765 | 19 | % | |||||||||||
| Latin America | 2,805 | 20 | % | 2,889 | 21 | % | 2,817 | 20 | % | |||||||||||
| Asia Pacific | 1,402 | 10 | % | 1,288 | 9 | % | 1,293 | 9 | % | |||||||||||
| Year Ended December 31, 2020 vs. 2019 | Percent Change Due To: | |||||||||||||||||||
| Net Sales Change | Local Price & | Portfolio / | ||||||||||||||||||
| (in millions) | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
| North America | $ | 239 | 3 | % | 1 | % | 3 | % | (1) | % | — | % | ||||||||
| EMEA | 102 | 4 | % | 2 | % | 6 | % | (4) | % | — | % | |||||||||
| Latin America | (84) | (3) | % | 7 | % | 10 | % | (20) | % | — | % | |||||||||
| Asia Pacific | 114 | 9 | % | 2 | % | 11 | % | (3) | % | (1) | % | |||||||||
| Total | $ | 371 | 3 | % | 3 | % | 5 | % | (5) | % | — | % | ||||||||
| Year Ended December 31, 2019 vs. 2018 | Percent Change Due To: | |||||||||||||||||||
| Net Sales Change | Local Price & | Portfolio / | ||||||||||||||||||
| (in millions) | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
| North America | $ | (483) | (7) | % | (2) | % | (4) | % | (1) | % | — | % | ||||||||
| EMEA | (25) | (1) | % | 2 | % | 5 | % | (8) | % | — | % | |||||||||
| Latin America | 72 | 3 | % | 4 | % | 4 | % | (5) | % | — | % | |||||||||
| Asia Pacific | (5) | — | % | 2 | % | 1 | % | (3) | % | — | % | |||||||||
| Total | $ | (441) | (3) | % | — | % | — | % | (3) | % | — | % | ||||||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| COGS | $ | 8,507 | $ | 8,575 | $ | 9,948 | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Pro Forma COGS | $ | 8,386 | $ | 8,449 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| R&D | $ | 1,142 | $ | 1,147 | $ | 1,355 | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Pro Forma R&D | $ | 1,147 | $ | 1,352 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| SG&A | $ | 3,043 | $ | 3,065 | $ | 3,041 | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Pro Forma SG&A | $ | 3,068 | $ | 3,042 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Amortization of Intangibles | $ | 682 | $ | 475 | $ | 391 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Restructuring and Asset Related Charges - Net | $ | 335 | $ | 222 | $ | 694 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Integration and Separation Costs | $ | — | $ | 744 | $ | 992 | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
|
Pro Forma Integration and Separation Costs1
|
$ | 632 | $ | 571 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Goodwill Impairment Charge | $ | — | $ | — | $ | 4,503 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Other Income - Net | $ | 212 | $ | 215 | $ | 249 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Loss on Early Extinguishment of Debt | $ | — | $ | 13 | $ | 81 | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Pro Forma Loss on Early Extinguishment of Debt | $ | 13 | $ | — | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Interest Expense | $ | 45 | $ | 136 | $ | 337 | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Pro Forma Interest Expense | $ | 91 | $ | 76 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Benefit from Income Taxes on Continuing Operations | $ | (81) | $ | (46) | $ | (31) | |||||
| Effective Tax Rate | (12.0) | % | 14.6 | % | 0.5 | % | |||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Pro Forma Provision for Income Taxes on Continuing Operations | $ | 1 | $ | 395 | ||||
| Pro Forma Effective Tax Rate | 3.7 | % | (8.7) | % | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| (Loss) Income from Discontinued Operations After Income Taxes | $ | (55) | $ | (671) | $ | 1,748 | |||||
| Unaudited Pro Forma Statement of Operations | For the Year Ended December 31, 2019 | ||||||||||||||||
| (In millions, except per share amounts) | Corteva (As Reported - GAAP) |
Merger 1
|
Debt Retirement 2
|
Separations Related 3
|
Pro Forma | ||||||||||||
| Net sales | $ | 13,846 | $ | — | $ | — | $ | — | $ | 13,846 | |||||||
|
Cost of goods sold
|
8,575 | (205) | — | 16 | 8,386 | ||||||||||||
|
Research and development expense
|
1,147 | — | — | — | 1,147 | ||||||||||||
|
Selling, general and administrative expenses
|
3,065 | — | — | 3 | 3,068 | ||||||||||||
|
Amortization of intangibles
|
475 | — | — | — | 475 | ||||||||||||
|
Restructuring and asset related charges - net
|
222 | — | — | — | 222 | ||||||||||||
|
Integration and separation costs
|
744 | — | — | (112) | 632 | ||||||||||||
|
Other income - net
|
215 | — | — | — | 215 | ||||||||||||
|
Loss on early extinguishment of debt
|
13 | — | — | — | 13 | ||||||||||||
|
Interest expense
|
136 | — | (45) | — | 91 | ||||||||||||
| (Loss) income from continuing operations before income taxes | (316) | 205 | 45 | 93 | 27 | ||||||||||||
| (Benefit from) provision for income taxes on continuing operations | (46) | 36 | 10 | 1 | 1 | ||||||||||||
| (Loss) income from continuing operations after income taxes | (270) | 169 | 35 | 92 | 26 | ||||||||||||
| Net income from continuing operations attributable to noncontrolling interests | 13 | — | — | — | 13 | ||||||||||||
| Net (loss) income attributable to Corteva | $ | (283) | $ | 169 | $ | 35 | $ | 92 | $ | 13 | |||||||
| Per share common data | |||||||||||||||||
|
Earnings per share of common stock from continuing operations - basic
|
$ | 0.02 | |||||||||||||||
|
Earnings per share of common stock from continuing operations - diluted
|
$ | 0.02 | |||||||||||||||
|
Weighted-average common shares outstanding - basic
|
749.5 | ||||||||||||||||
|
Weighted-average common shares outstanding - diluted
|
749.5 | ||||||||||||||||
| Unaudited Pro Forma Statement of Operations | For the Year Ended December 31, 2018 | ||||||||||||||||
| (In millions, except per share amounts) | Corteva (As Reported - GAAP) |
Merger 1
|
Debt Retirement 2
|
Separations Related 3
|
Pro Forma | ||||||||||||
| Net sales | $ | 14,287 | $ | — | $ | — | $ | — | $ | 14,287 | |||||||
|
Cost of goods sold
|
9,948 | (1,554) | — | 55 | 8,449 | ||||||||||||
|
Research and development expense
|
1,355 | — | — | (3) | 1,352 | ||||||||||||
|
Selling, general and administrative expenses
|
3,041 | — | — | 1 | 3,042 | ||||||||||||
|
Amortization of intangibles
|
391 | — | — | — | 391 | ||||||||||||
|
Restructuring and asset related charges - net
|
694 | — | — | — | 694 | ||||||||||||
|
Integration and separation costs
|
992 | — | — | (421) | 571 | ||||||||||||
|
Goodwill impairment charge
|
4,503 | — | — | — | 4,503 | ||||||||||||
|
Other income - net
|
249 | — | — | — | 249 | ||||||||||||
|
Loss on early extinguishment of debt
|
81 | — | (81) | — | — | ||||||||||||
|
Interest expense
|
337 | — | (261) | — | 76 | ||||||||||||
| Loss from continuing operations before income taxes | (6,806) | 1,554 | 342 | 368 | (4,542) | ||||||||||||
| (Benefit from) provision for income taxes on continuing operations | (31) | 295 | 78 | 53 | 395 | ||||||||||||
| Loss from continuing operations after income taxes | (6,775) | 1,259 | 264 | 315 | (4,937) | ||||||||||||
| Net income from continuing operations attributable to noncontrolling interests | 29 | — | — | — | 29 | ||||||||||||
| Net loss attributable to Corteva | $ | (6,804) | $ | 1,259 | $ | 264 | $ | 315 | $ | (4,966) | |||||||
| Per share common data | |||||||||||||||||
|
Loss per share of common stock from continuing operations - basic
|
$ | (6.63) | |||||||||||||||
|
Loss per share of common stock from continuing operations - diluted
|
$ | (6.63) | |||||||||||||||
|
Weighted-average common shares outstanding - basic
|
749.4 | ||||||||||||||||
|
Weighted-average common shares outstanding - diluted
|
749.4 | ||||||||||||||||
| Seed | For the Year Ended December 31, | ||||||||||
| In millions | 2020 | 2019 | 2018 | ||||||||
| Net sales | $ | 7,756 | $ | 7,590 | $ | 7,842 | |||||
|
Segment operating EBITDA 1
|
$ | 1,208 | $ | 1,040 | $ | 1,139 | |||||
| Crop Protection | For the Year Ended December 31, | ||||||||||
| In millions | 2020 | 2019 | 2018 | ||||||||
| Net sales | $ | 6,461 | $ | 6,256 | $ | 6,445 | |||||
|
Segment operating EBITDA 1
|
$ | 1,004 | $ | 1,066 | $ | 1,074 | |||||
| Crop Protection | 2020 vs. 2019 | Percent Change Due To: | ||||||||||||||||||
| Net Sales Change | Local Price & | Portfolio / | ||||||||||||||||||
| In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
|
Herbicides1
|
$ | 74 | 2 | % | 1 | % | 7 | % | (5) | % | (1) | % | ||||||||
|
Insecticides1
|
112 | 7 | % | 5 | % | 9 | % | (7) | % | — | % | |||||||||
|
Fungicides1
|
(40) | (4) | % | 5 | % | 5 | % | (12) | % | (2) | % | |||||||||
|
Other1
|
59 | 18 | % | 24 | % | 1 | % | (7) | % | — | % | |||||||||
| Total | $ | 205 | 3 | % | 4 | % | 7 | % | (7) | % | (1) | % | ||||||||
| Crop Protection | 2019 vs. 2018 | Percent Change Due To: | ||||||||||||||||||
| Net Sales Change | Local Price & | Portfolio / | ||||||||||||||||||
| In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
|
North America
|
$ | (233) | (10) | % | (3) | % | (6) | % | — | % | (1) | % | ||||||||
|
EMEA
|
5 | — | % | 2 | % | 5 | % | (7) | % | — | % | |||||||||
| Latin America | 44 | 3 | % | 1 | % | 7 | % | (5) | % | — | % | |||||||||
| Asia Pacific | (5) | (1) | % | 3 | % | — | % | (3) | % | (1) | % | |||||||||
| Total | $ | (189) | (3) | % | — | % | 1 | % | (3) | % | (1) | % | ||||||||
| Crop Protection | 2019 vs. 2018 | Percent Change Due To: | ||||||||||||||||||
| Net Sales Change | Local Price & | Portfolio / | ||||||||||||||||||
| In millions | $ | % | Product Mix | Volume | Currency | Other | ||||||||||||||
|
Herbicides1
|
$ | (207) | (6) | % | (1) | % | (2) | % | (3) | % | — | % | ||||||||
|
Insecticides1
|
146 | 10 | % | 5 | % | 9 | % | (4) | % | — | % | |||||||||
|
Fungicides1
|
(70) | (6) | % | (3) | % | 1 | % | (4) | % | — | % | |||||||||
|
Other1
|
(58) | (15) | % | (2) | % | (11) | % | (2) | % | — | % | |||||||||
| Total | $ | (189) | (3) | % | — | % | 1 | % | (3) | % | (1) | % | ||||||||
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2018 | |||||||||
| (In millions) | As Reported | Pro Forma | Pro Forma | ||||||||
| Income from continuing operations after income taxes | $ | 756 | $ | 26 | $ | (4,937) | |||||
| (Benefit from) provision for income taxes on continuing operations | (81) | 1 | 395 | ||||||||
| Income (loss) from continuing operations before income taxes | 675 | 27 | (4,542) | ||||||||
| Depreciation and amortization | 1,177 | 1,000 | 909 | ||||||||
| Interest income | (56) | (59) | (86) | ||||||||
| Interest expense | 45 | 91 | 76 | ||||||||
| Exchange losses - net | 174 | 66 | 77 | ||||||||
| Non-operating benefits - net | (316) | (129) | (211) | ||||||||
| Goodwill impairment charge | — | — | 4,503 | ||||||||
| Significant items charge | 388 | 991 | 1,346 | ||||||||
| Operating EBITDA (Non-GAAP) | $ | 2,087 | $ | 1,987 | $ | 2,072 | |||||
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2018 | |||||||||
| (In millions) | As Reported | Pro Forma | Pro Forma | ||||||||
| Integration and separation costs | $ | — | $ | 632 | $ | 571 | |||||
| Restructuring and asset related charges - net | 335 | 222 | 694 | ||||||||
| Gain on sale of assets | — | — | (24) | ||||||||
| Loss on deconsolidation of subsidiary | — | — | 53 | ||||||||
| Loss on divestiture | 53 | 24 | 2 | ||||||||
| Amortization of inventory step-up | — | 67 | — | ||||||||
| Argentina currency devaluation | — | 33 | — | ||||||||
| Loss on early extinguishment of debt | — | 13 | — | ||||||||
| Income tax related items | — | — | 50 | ||||||||
| Total pretax significant items charge | 388 | 991 | 1,346 | ||||||||
|
Total tax benefit impact of significant items1
|
(86) | (135) | (239) | ||||||||
|
Tax only significant item (benefit) charge2
|
(192) | (72) | 347 | ||||||||
| Total significant items charge, net of tax | $ | 110 | $ | 784 | $ | 1,454 | |||||
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2018 | |||||||||
| (In millions) | As Reported | Pro Forma | Pro Forma | ||||||||
| Income (loss) from continuing operations attributable to Corteva | $ | 736 | $ | 13 | $ | (4,966) | |||||
| Less: Non-operating benefits - net, after tax | 237 | 100 | 165 | ||||||||
| Less: Amortization of intangibles (existing as of Separation), after tax | (518) | (376) | (313) | ||||||||
| Less: Goodwill impairment charge, after tax | — | — | (4,503) | ||||||||
| Less: Significant items charge, after tax | (110) | (784) | (1,454) | ||||||||
| Operating Earnings (Non-GAAP) | $ | 1,127 | $ | 1,073 | $ | 1,139 | |||||
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2018 | |||||||||
| As Reported | Pro Forma | Pro Forma | |||||||||
| Earnings (loss) per share of common stock from continuing operations - diluted | $ | 0.98 | $ | 0.02 | $ | (6.63) | |||||
| Less: Non-operating benefits - net, after tax | 0.32 | 0.13 | 0.22 | ||||||||
| Less: Amortization of intangibles (existing as of Separation), after tax | (0.69) | (0.50) | (0.42) | ||||||||
| Less: Goodwill impairment charge, after tax | — | — | (6.01) | ||||||||
| Less: Significant items charge, after tax | (0.15) | (1.04) | (1.94) | ||||||||
| Operating Earnings Per Share (Non-GAAP) | $ | 1.50 | $ | 1.43 | $ | 1.52 | |||||
|
Diluted Shares Outstanding (in millions)
|
751.2 | 749.5 | 749.4 | ||||||||
| (Dollars in millions) | December 31, 2020 | December 31, 2019 | ||||||
| Cash, cash equivalents and marketable securities | $ | 3,795 | $ | 1,769 | ||||
| Total debt | $ | 1,105 | $ | 122 | ||||
| Long-term | Short-term | Outlook | |||||||||
|
Standard & Poor's1
|
A- | A-2 | Stable | ||||||||
| Moody’s Investors Service | A3 | P-2 | Stable | ||||||||
|
Fitch Ratings1
|
A | F1 | Stable | ||||||||
| (in millions) | Amount | |||||||||||||
| 4.625% Notes due 2020 | $ | 474 | ||||||||||||
| 3.625% Notes due 2021 | 296 | |||||||||||||
| 4.250% Notes due 2021 | 163 | |||||||||||||
| 2.800% Notes due 2023 | 381 | |||||||||||||
| 6.500% Debentures due 2028 | 57 | |||||||||||||
| 5.600% Senior Notes due 2036 | 42 | |||||||||||||
| 4.900% Notes due 2041 | 48 | |||||||||||||
| 4.150% Notes due 2043 | 69 | |||||||||||||
| Total | $ | 1,530 | ||||||||||||
| For the Year Ended December 31, | |||||||||||
| (Dollars in millions) | 2020 | 2019 | 2018 | ||||||||
| Cash provided by operating activities | $ | 2,064 | $ | 1,070 | $ | 483 | |||||
| For the Year Ended December 31, | |||||||||||
| (Dollars in millions) | 2020 | 2019 | 2018 | ||||||||
| Cash used for investing activities | $ | (674) | $ | (904) | $ | (505) | |||||
| For the Year Ended December 31, | |||||||||||
| (Dollars in millions) | 2020 | 2019 | 2018 | ||||||||
| Cash provided by (used for) financing activities | $ | 303 | $ | (2,929) | $ | (2,624) | |||||
| (Dollars in billions) | December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||
| Market-related value of assets | $ | 16.3 | $ | 16.4 | $ | 16.6 | |||||
|
Fair value of plan assets
|
17.5 | 16.6 | 15.7 | ||||||||
|
Pre-tax Earnings Benefit (Charge)
(Dollars in millions)
|
1/4 Percentage
Point Increase |
1/4 Percentage
Point Decrease |
||||||
| Discount rate | $ | (12) | $ | 14 | ||||
| Expected rate of return on plan assets | 40 | (40) | ||||||
| Payments Due In | |||||||||||||||||
| (Dollars in millions) |
Total at
December 31, 2020 |
2021 | 2022-2023 | 2024-2025 |
2026 and
beyond |
||||||||||||
|
Operating lease and finance lease obligations1
|
$ | 603 | $ | 153 | $ | 199 | $ | 114 | $ | 137 | |||||||
|
Expected cumulative cash requirements
for interest payments through maturity |
158 | 20 | 40 | 40 | 58 | ||||||||||||
|
Long-term debt1
|
1,110 | 1 | — | 500 | 609 | ||||||||||||
|
Purchase obligations2
|
|||||||||||||||||
|
Information technology infrastructure & services
|
52 | 32 | 20 | — | — | ||||||||||||
|
Raw material obligations
|
1,486 | 480 | 629 | 317 | 60 | ||||||||||||
|
Other
|
136 | 112 | 14 | 10 | — | ||||||||||||
| Total purchase obligations | 1,674 | 624 | 663 | 327 | 60 | ||||||||||||
|
Other liabilities1,3
|
|||||||||||||||||
|
Pension and other post employment benefits
|
5,434 | 264 | 584 | 920 | 3,666 | ||||||||||||
|
Workers' compensation
|
66 | 11 | 28 | 12 | 15 | ||||||||||||
|
Environmental remediation
|
329 | 100 | 80 | 73 | 76 | ||||||||||||
|
License agreements4
|
481 | 169 | 245 | 45 | 22 | ||||||||||||
|
Other5
|
287 | 113 | 54 | 31 | 89 | ||||||||||||
| Total other long-term liabilities | 6,597 | 657 | 991 | 1,081 | 3,868 | ||||||||||||
|
Total contractual obligations6,7
|
$ | 10,142 | $ | 1,455 | $ | 1,893 | $ | 2,062 | $ | 4,732 | |||||||
| For the Year Ended December 31, | |||||||||||
| (Dollars in millions) | 2020 | 2019 | 2018 | ||||||||
| Net periodic benefit (credit) cost - pension and OPEB | $ | (340) | $ | (163) | $ | (186) | |||||
| Defined contributions | 127 | 115 | 117 | ||||||||
| Long-term employee benefit plan (credit) charges - continuing operations | $ | (213) | $ | (48) | $ | (69) | |||||
| For the Year Ended December 31, | |||||||||||
| (Dollars in millions) | 2020 | 2019 | 2018 | ||||||||
| Environmental operating costs | $ | 138 | $ | 136 | $ | 142 | |||||
|
Environmental remediation costs1
|
63 | 29 | 48 | ||||||||
| $ | 201 | $ | 165 | $ | 190 | ||||||
| (Dollars in millions) | |||||
| Balance at December 31, 2018 | $ | 398 | |||
| Remediation payments | (49) | ||||
|
Net increase in remediation accrual 1
|
29 | ||||
|
Net change, indemnification 2
|
(42) | ||||
| Balance at December 31, 2019 | $ | 336 | |||
| Remediation payments | (57) | ||||
|
Net increase in remediation accrual 1
|
63 | ||||
|
Net change, indemnification 2
|
(13) | ||||
| Balance at December 31, 2020 | $ | 329 | |||
| As of December 31, 2020 | |||||||||||
| (In millions) | Indemnification Asset |
Accrual balance3,4
|
Potential exposure above amount accrued3
|
||||||||
| Environmental Remediation Stray Liabilities | |||||||||||
|
Chemours related obligations - subject to indemnity1,2
|
$ | 153 | $ | 154 | $ | 282 | |||||
|
Other discontinued or divested businesses obligations1
|
— | 74 | 222 | ||||||||
|
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2
|
37 | 36 | 61 | ||||||||
| Environmental remediation liabilities not subject to indemnity | — | 65 | 55 | ||||||||
| Total | $ | 190 | $ | 329 | $ | 620 | |||||
|
Fair Value
(Liability)/Asset |
Fair Value
Sensitivity |
|||||||||||||
| (Dollars in millions) | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Foreign currency contracts | $ | (80) | $ | (18) | $ | (388) | $ | (296) | ||||||
| Marketable securities | $ | 226 | $ | — | $ | (36) | $ | — | ||||||
| For the Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Accounts Receivable—Allowance for Doubtful Receivables | |||||||||||
| Balance at beginning of period | $ | 174 | $ | 127 | $ | 64 | |||||
| Additions charged to expenses | 154 | 69 | 80 | ||||||||
|
Deductions from reserves1
|
(120) | (22) | (17) | ||||||||
| Balance at end of period | $ | 208 | $ | 174 | $ | 127 | |||||
| Deferred Tax Assets—Valuation Allowance | |||||||||||
| Balance at beginning of period | $ | 457 | $ | 669 | $ | 559 | |||||
| Additions charged to expenses | 56 | 20 | 451 | ||||||||
|
Deductions from reserves2
|
(60) | (232) | (341) | ||||||||
| Balance at end of period | $ | 453 | $ | 457 | $ | 669 | |||||
|
Exhibit
Number |
Description | |||||||
| Separation and Distribution Agreement by and among DuPont Inc., Dow Inc. and Corteva, Inc. (incorporated by reference to Exhibit No. 2.1 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
| Amended and Restated Certificate of Incorporation of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019. | ||||||||
| Amended and Restated Bylaws of Corteva, Inc. (incorporated by reference to Exhibit No. 3.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on October 10, 2019. | ||||||||
| Amended and Restated Certificate of Incorporation of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.1 to E. I. du Pont de Nemours and Company’s Current Report on Form 8-K (Commission file number 1-815) dated September 1, 2017). | ||||||||
| Amended and Restated Bylaws of E.I. du Pont de Nemours and Company (incorporated by reference to Exhibit 3.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated September 1, 2017). | ||||||||
|
Description of Corteva, Inc. registered securities (incorporated by reference from Exhibit 4.1 to the Company’s Annual Report on Form 10-K (Commission file number 001-38710) filed February 14, 2020).
|
||||||||
|
Description of E.I. du Pont de Nemours and Company registered securities (incorporated by reference from Exhibit 4.2 to the Company’s Annual Report on Form 10-K (Commission file number 001-38710) filed February 14, 2020).
|
||||||||
| Amended and Restated Tax Matters Agreement, effective as of June 1, 2019 by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit 10.3 of Corteva’s Current Report on Form 8-K (Commission file number 001-38710) filed on June 3, 2019). | ||||||||
| Employee Matters Agreement by and among DowDuPont Inc., Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.2 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
| SpecCo/AgCo Intellectual Property Cross-License Agreement, effective as of June 1, 2019, by and among DowDuPont Inc., Corteva, Inc. and the other parties identified therein (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 3, 2019). | ||||||||
| Intellectual Property Cross-License Agreement by and between Corteva, Inc. and Dow Inc. (incorporated by reference to Exhibit No. 10.4 to Amendment 3 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on April 16, 2019). | ||||||||
| Corteva, Inc. 2019 Omnibus Incentive Plan. (incorporated by reference to Exhibit No. 10.5 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
| Fondation de Prevoyance en Faveur du Personnel de DuPont de Nemours International SÁRL. (incorporated by reference to Exhibit No. 10.6 to Corteva’s Registration Statement on Form 10 (Commission file number 001-38710), filed on May 6, 2019). | ||||||||
| Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
| Amendment No. 1 to Separation Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company, dated August 24, 2017 (incorporated by reference to Exhibit 2.1 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated August 25, 2017). | ||||||||
| Tax Matters Agreement by and between E. I. du Pont de Nemours and Company and The Chemours Company (incorporated by reference to Exhibit 2.2 to E. I. du Pont de Nemours and Company's Current Report on Form 8-K (Commission file number 1-815) dated July 8, 2015). | ||||||||
| Transaction Agreement, dated as of March 31, 2017, by and between E. I. du Pont de Nemours and Company and FMC Corporation (incorporated by reference to Exhibit 10.25 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended March 31, 2017). | ||||||||
| The E. I. du Pont de Nemours and Company Management Deferred Compensation Plan, incorporated by reference to Exhibit 4.3 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017. | ||||||||
| The E. I. du Pont de Nemours and Company Stock Accumulation and Deferred Compensation Plan for Directors, (incorporated by reference to Exhibit 4.4 to DowDuPont Inc. Registration Statement on Form S-8 (Commission file number 333-220324) filed September 1, 2017.) | ||||||||
| E. I. du Pont de Nemours and Company's Pension Restoration Plan, as last amended effective June 29, 2015 (incorporated by reference to Exhibit 10.3 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
| E. I. du Pont de Nemours and Company’s Rules for Lump Sum Payments, as last amended effective May 15, 2014 (incorporated by reference to Exhibit 10.4 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2015). | ||||||||
| E. I. du Pont de Nemours and Company’s Retirement Savings Restoration Plan, as last amended effective May 15, 2014. (incorporated by reference to Exhibit 10.08 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended June 30, 2014). | ||||||||
| E. I. du Pont de Nemours and Company’s Retirement Income Plan for Directors, as last amended January 2011 (incorporated by reference to Exhibit 10.9 to E. I. du Pont de Nemours and Company’s Quarterly Report on Form 10-Q (Commission file number 1-815) for the period ended March 31, 2012). | ||||||||
| E. I. du Pont de Nemours and Company's Senior Executive Severance Plan, as amended and restated effective December 10, 2015 (incorporated by reference to Exhibit 10.10 to E. I. du Pont de Nemours and Company’s Annual Report on Form 10-K (Commission file number 1-815) for the year ended December 31, 2015). | ||||||||
| Corteva, Inc. Severance Plan (incorporated by reference to Exhibit 10.1 to Corteva’s Current Report on Form 8-K (Commission file number 001-38710), filed on June 26, 2019). | ||||||||
| Letter Agreement effective as of June 1, 2019 by and between DowDuPont Inc. and Corteva, Inc. (incorporated by reference to Exhibit 10.2 to Corteva's Current Report on Form 8-K (Commission file number 001-38710) filed June 3, 2019) | ||||||||
| Memorandum of Understanding, dated January 22, 2021, by and among The Chemours Company, Corteva, Inc., E. I. du Pont de Nemours and Company and DuPont de Nemours, Inc. (incorporated by reference from the Form 8-K (Commission file number 001-38710) filed January 22, 2021) | ||||||||
| Form of Award Terms for Options granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.3 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
| Form of Award Terms for Performance Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.4 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020). | ||||||||
|
Form of Award Terms for Restricted Stock Units granted under the Corteva, Inc. 2019 Omnibus Incentive Plan for U.S. grantees (incorporated by reference from Exhibit 10.5 to the Company’s Quarterly Report Form 10-Q (Commission file number 001-38710) filed May 7, 2020).
|
||||||||
| Subsidiaries of the Registrant. | ||||||||
| Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP - Corteva, Inc. | ||||||||
| Consent of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP - E. I. du Pont de Nemours and Company. | ||||||||
| Consent of Independent Registered Public Accounting Firm, Deloitte & Touche LLP. | ||||||||
| Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Executive Officer. | ||||||||
| Rule 13a-14(a)/15d-14(a) Certification of the company’s and EID’s Principal Financial Officer. | ||||||||
| Section 1350 Certification of the company’s and EID’s Principal Executive Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
| Section 1350 Certification of the company’s and EID’s Principal Financial Officer. The information contained in this Exhibit shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the registrant under the Securities Act of 1933, as amended. | ||||||||
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File – The Cover Page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101.INS) | |||||||
|
*
|
Upon request of the U.S. Securities and Exchange Commission, (the “SEC”), Corteva hereby undertakes to furnish supplementally a copy of any omitted schedule or exhibit to such agreement; provided, however, that Corteva may omit confidential information pursuant to Item 601(b)(10) or request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any schedule or exhibit so furnished. | ||||
| February 11, 2021 | ||||||||
| Corteva, Inc. | ||||||||
| By: | /s/ Brian Titus | |||||||
|
Brian Titus
Vice President, Controller (Principal Accounting Officer) |
||||||||
| Signature | Title(s) | Date | ||||||||||||
| /s/ James C. Collins, Jr. |
Chief Executive Officer and Director
(Principal Executive Officer) |
February 11, 2021 | ||||||||||||
| James C. Collins, Jr. | ||||||||||||||
| /s/ Gregory R. Page | Non-Executive Chairman of the Board of Directors and Director | February 11, 2021 | ||||||||||||
| Gregory R. Page | ||||||||||||||
| /s/ Lamberto Andreotti | Director | February 11, 2021 | ||||||||||||
| Lamberto Andreotti | ||||||||||||||
| /s/ Robert A. Brown | Director | February 11, 2021 | ||||||||||||
| Robert A. Brown | ||||||||||||||
| /s/ Klaus Engel | Director | February 11, 2021 | ||||||||||||
| Klaus Engel | ||||||||||||||
| /s/ Michael O. Johanns | Director | February 11, 2021 | ||||||||||||
| Michael O. Johanns | ||||||||||||||
| /s/ Lois D. Juliber | Director | February 11, 2021 | ||||||||||||
| Lois D. Juliber | ||||||||||||||
| /s/ Rebecca B. Liebert | Director | February 11, 2021 | ||||||||||||
| Rebecca B. Liebert | ||||||||||||||
| /s/ Marcos M. Lutz | Director | February 11, 2021 | ||||||||||||
| Marcos M. Lutz | ||||||||||||||
| /s/ Nayaki Nayyar | Director | February 11, 2021 | ||||||||||||
| Nayaki Nayyar | ||||||||||||||
| /s/ Lee M. Thomas | Director | February 11, 2021 | ||||||||||||
| Lee M. Thomas | ||||||||||||||
| /s/ Patrick J. Ward | Director | February 11, 2021 | ||||||||||||
| Patrick J. Ward | ||||||||||||||
| /s/ Gregory R. Friedman |
Executive Vice President and Chief Financial Officer
(Principal Financial Officer) |
February 11, 2021 | ||||||||||||
| Gregory R. Friedman | ||||||||||||||
| February 11, 2021 | ||||||||
| E. I. DU PONT DE NEMOURS AND COMPANY | ||||||||
| By: | /s/ Brian Titus | |||||||
|
Brian Titus
Vice President, Controller (Principal Accounting Officer) |
||||||||
| Signature | Title(s) | Date | ||||||||||||
| /s/ James C. Collins, Jr. |
Chief Executive Officer and Director
(Principal Executive Officer) |
February 11, 2021 | ||||||||||||
| James C. Collins, Jr. | ||||||||||||||
| /s/ Gregory R. Friedman |
Executive Vice President,
Chief Financial Officer and Director (Principal Financial Officer) |
February 11, 2021 | ||||||||||||
| Gregory R. Friedman | ||||||||||||||
|
James C. Collins, Jr.
Chief Executive Officer and Director |
Gregory R. Friedman
Executive Vice President and Chief Financial Officer |
|||||||
|
/s/ Deloitte & Touche LLP
|
|||||
|
Midland, Michigan
|
|||||
|
July 12, 2019
|
|||||
| (In millions, except per share amounts) | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Net sales | $ | 14,217 | $ | 13,846 | $ | 14,287 | |||||
| Cost of goods sold | 8,507 | 8,575 | 9,948 | ||||||||
| Research and development expense | 1,142 | 1,147 | 1,355 | ||||||||
| Selling, general and administrative expenses | 3,043 | 3,065 | 3,041 | ||||||||
| Amortization of intangibles | 682 | 475 | 391 | ||||||||
| Restructuring and asset related charges - net | 335 | 222 | 694 | ||||||||
| Integration and separation costs | — | 744 | 992 | ||||||||
| Goodwill impairment charge | — | — | 4,503 | ||||||||
| Other income - net | 212 | 215 | 249 | ||||||||
| Loss on early extinguishment of debt | — | 13 | 81 | ||||||||
| Interest expense | 45 | 136 | 337 | ||||||||
| Income (loss) from continuing operations before income taxes | 675 | (316) | (6,806) | ||||||||
| Benefit from income taxes on continuing operations | (81) | (46) | (31) | ||||||||
| Income (loss) from continuing operations after income taxes | 756 | (270) | (6,775) | ||||||||
| (Loss) income from discontinued operations after income taxes | (55) | (671) | 1,748 | ||||||||
| Net income (loss) | 701 | (941) | (5,027) | ||||||||
| Net income attributable to noncontrolling interests | 20 | 18 | 38 | ||||||||
| Net income (loss) attributable to Corteva | $ | 681 | $ | (959) | $ | (5,065) | |||||
| Basic earnings (loss) per share of common stock: | |||||||||||
| Basic earnings (loss) per share of common stock from continuing operations | $ | 0.98 | $ | (0.38) | $ | (9.08) | |||||
| Basic (loss) earnings per share of common stock from discontinued operations | (0.07) | (0.90) | 2.32 | ||||||||
| Basic earnings (loss) per share of common stock | $ | 0.91 | $ | (1.28) | $ | (6.76) | |||||
| Diluted earnings (loss) per share of common stock: | |||||||||||
| Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.98 | $ | (0.38) | $ | (9.08) | |||||
| Diluted (loss) earnings per share of common stock from discontinued operations | (0.07) | (0.90) | 2.32 | ||||||||
| Diluted earnings (loss) per share of common stock | $ | 0.91 | $ | (1.28) | $ | (6.76) | |||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Net income (loss) | $ | 701 | $ | (941) | $ | (5,027) | |||||
| Other comprehensive income (loss) - net of tax: | |||||||||||
| Cumulative translation adjustments | (26) | (274) | (1,576) | ||||||||
| Adjustments to pension benefit plans | (186) | (718) | (715) | ||||||||
| Adjustments to other benefit plans | 671 | (160) | 132 | ||||||||
| Unrealized gain (loss) on investments | (10) | — | — | ||||||||
| Derivative instruments | (69) | 28 | (24) | ||||||||
| Total other comprehensive income (loss) | 380 | (1,124) | (2,183) | ||||||||
| Comprehensive income (loss) | 1,081 | (2,065) | (7,210) | ||||||||
| Comprehensive income attributable to noncontrolling interests - net of tax | 20 | 18 | 38 | ||||||||
| Comprehensive income (loss) attributable to Corteva | $ | 1,061 | $ | (2,083) | $ | (7,248) | |||||
| (In millions, except share and per share amounts) | December 31, 2020 | December 31, 2019 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,526 | $ | 1,764 | ||||
| Marketable securities | 269 | 5 | ||||||
| Accounts and notes receivable - net | 4,926 | 5,528 | ||||||
| Inventories | 4,882 | 5,032 | ||||||
| Other current assets | 1,165 | 1,190 | ||||||
| Total current assets | 14,768 | 13,519 | ||||||
| Investment in nonconsolidated affiliates | 66 | 66 | ||||||
| Property, plant and equipment | 8,253 | 7,872 | ||||||
| Less: Accumulated depreciation | 3,857 | 3,326 | ||||||
| Net property, plant and equipment | 4,396 | 4,546 | ||||||
| Goodwill | 10,269 | 10,229 | ||||||
| Other intangible assets | 10,747 | 11,424 | ||||||
| Deferred income taxes | 464 | 287 | ||||||
| Other assets | 1,939 | 2,326 | ||||||
| Total Assets | $ | 42,649 | $ | 42,397 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings and finance lease obligations | $ | 3 | $ | 7 | ||||
| Accounts payable | 3,615 | 3,702 | ||||||
| Income taxes payable | 123 | 95 | ||||||
| Accrued and other current liabilities | 4,807 | 4,434 | ||||||
| Total current liabilities | 8,548 | 8,238 | ||||||
| Long-Term Debt | 1,102 | 115 | ||||||
| Other Noncurrent Liabilities | ||||||||
| Deferred income tax liabilities | 893 | 920 | ||||||
| Pension and other post employment benefits - noncurrent | 5,176 | 6,377 | ||||||
| Other noncurrent obligations | 1,867 | 2,192 | ||||||
| Total noncurrent liabilities | 9,038 | 9,604 | ||||||
| Commitments and contingent liabilities | ||||||||
| Stockholders’ equity | ||||||||
|
Common stock, $0.01 par value; 1,666,667,000 shares authorized;
issued at December 31, 2020 - 743,458,000 and December 31, 2019 - 748,577,000 |
7 | 7 | ||||||
| Additional paid-in capital | 27,707 | 27,997 | ||||||
| Retained earnings / (accumulated deficit) | — | (425) | ||||||
| Accumulated other comprehensive loss | (2,890) | (3,270) | ||||||
| Total Corteva stockholders’ equity | 24,824 | 24,309 | ||||||
| Noncontrolling interests | 239 | 246 | ||||||
| Total equity | 25,063 | 24,555 | ||||||
| Total Liabilities and Equity | $ | 42,649 | $ | 42,397 | ||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 |
20191
|
20181
|
|||||||||
| Operating activities | |||||||||||
| Net income (loss) | $ | 701 | $ | (941) | $ | (5,027) | |||||
| Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 1,177 | 1,599 | 2,790 | ||||||||
| (Benefit from) provision for deferred income tax | (330) | (477) | 31 | ||||||||
| Net periodic pension benefit | (409) | (264) | (321) | ||||||||
| Pension contributions | (62) | (121) | (1,314) | ||||||||
| Net loss (gain) on sales of property, businesses, consolidated companies, and investments | 3 | (142) | (11) | ||||||||
| Restructuring and asset related charges - net | 335 | 339 | 803 | ||||||||
| Amortization of inventory step-up | — | 272 | 1,628 | ||||||||
| Goodwill impairment charge | — | 1,102 | 4,503 | ||||||||
| Loss on early extinguishment of debt | — | 13 | 81 | ||||||||
| Other net loss | 290 | 246 | 262 | ||||||||
| Changes in assets and liabilities, net | |||||||||||
| Accounts and notes receivable | 187 | (361) | (1,522) | ||||||||
| Inventories | 104 | 74 | (498) | ||||||||
| Accounts payable | (118) | 149 | 642 | ||||||||
| Other assets and liabilities | 186 | (418) | (1,564) | ||||||||
| Cash provided by operating activities | 2,064 | 1,070 | 483 | ||||||||
| Investing activities | |||||||||||
| Capital expenditures | (475) | (1,163) | (1,501) | ||||||||
| Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 83 | 249 | 69 | ||||||||
| Acquisitions of businesses - net of cash acquired | — | (10) | — | ||||||||
| Investments in and loans to nonconsolidated affiliates | (1) | (10) | (8) | ||||||||
| Proceeds from sale of ownership interest in non-consolidated affiliates | — | 21 | 9 | ||||||||
| Purchases of investments | (995) | (138) | (1,257) | ||||||||
| Proceeds from sales and maturities of investments | 721 | 160 | 2,186 | ||||||||
| Other investing activities - net | (7) | (13) | (3) | ||||||||
| Cash used for investing activities | (674) | (904) | (505) | ||||||||
| Financing activities | |||||||||||
| Net change in borrowings (less than 90 days) | — | (1,868) | 400 | ||||||||
| Proceeds from debt | 2,439 | 1,001 | 756 | ||||||||
| Payments on debt | (1,441) | (6,804) | (5,956) | ||||||||
| Repurchase of common stock | (275) | (25) | — | ||||||||
| Proceeds from exercise of stock options | 56 | 47 | 85 | ||||||||
| Dividends paid to stockholders | (388) | (194) | — | ||||||||
| Payment for acquisition of subsidiary's interest from the non-controlling interest | (60) | — | — | ||||||||
| Distributions to DowDuPont | — | (317) | (2,806) | ||||||||
| Cash transferred to DowDuPont at Internal Reorganizations | — | (2,053) | — | ||||||||
| Contributions from Dow and DowDuPont | — | 7,396 | 5,363 | ||||||||
| Debt extinguishment costs | — | (79) | (378) | ||||||||
| Other financing activities | (28) | (33) | (88) | ||||||||
| Cash provided by (used for) financing activities | 303 | (2,929) | (2,624) | ||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7 | (88) | (244) | ||||||||
| Increase (decrease) on cash, cash equivalents and restricted cash | 1,700 | (2,851) | (2,890) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 2,173 | 5,024 | 7,914 | ||||||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 |
20191
|
20181
|
|||||||||
|
Cash, cash equivalents and restricted cash at end of period2
|
$ | 3,873 | $ | 2,173 | $ | 5,024 | |||||
| Supplemental cash flow information | |||||||||||
| Cash paid during the period for | |||||||||||
| Interest, net of amounts capitalized | $ | 36 | $ | 263 | $ | 923 | |||||
| Income taxes | 229 | 234 | 961 | ||||||||
| (In millions) | Common Stock | Preferred Stock | Additional Paid-in Capital | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Loss | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||||
| Balance at January 1, 2018 | $ | — | $ | — | $ | 80,318 | $ | — | $ | (1,177) | $ | — | $ | 452 | $ | 79,593 | |||||||||||||
| Net (loss) income | (5,065) | 38 | (5,027) | ||||||||||||||||||||||||||
| Other comprehensive loss | (2,183) | (2,183) | |||||||||||||||||||||||||||
| Distributions to Dow and DowDuPont | (2,806) | (2,806) | |||||||||||||||||||||||||||
| Issuance of DowDuPont stock | 85 | 85 | |||||||||||||||||||||||||||
| Share-based compensation | 129 | 129 | |||||||||||||||||||||||||||
| Contributions from Dow and DowDuPont | 5,363 | 5,363 | |||||||||||||||||||||||||||
| Other | (4) | 3 | (1) | ||||||||||||||||||||||||||
| Balance at December 31, 2018 | $ | — | $ | — | $ | 78,020 | $ | — | $ | (3,360) | $ | — | $ | 493 | $ | 75,153 | |||||||||||||
| Net (loss) income | (641) | (318) | 18 | (941) | |||||||||||||||||||||||||
| Other comprehensive loss | (1,124) | (1,124) | |||||||||||||||||||||||||||
| Common dividends ($0.26 per share) | (97) | (97) | (194) | ||||||||||||||||||||||||||
| Distributions to Dow and DowDuPont | (317) | (317) | |||||||||||||||||||||||||||
| Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||||||||
| Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||||||||
| Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||||||||
| Common Stock Repurchase | (25) | (25) | |||||||||||||||||||||||||||
| Contributions from Dow and DowDuPont | 7,396 | 7,396 | |||||||||||||||||||||||||||
| Impact of Internal Reorganizations | (56,479) | 1,214 | (231) | (55,496) | |||||||||||||||||||||||||
| Reclassification of Divisional Equity to Additional Paid-in Capital | 7 | 28,070 | (28,077) | — | |||||||||||||||||||||||||
| Other | (3) | (10) | (34) | (47) | |||||||||||||||||||||||||
| Balance at December 31, 2019 | $ | 7 | $ | 27,997 | $ | (425) | $ | (3,270) | $ | — | $ | 246 | $ | 24,555 | |||||||||||||||
| Net (loss) income | 681 | 20 | 701 | ||||||||||||||||||||||||||
| Other comprehensive income ( loss) | 380 | 380 | |||||||||||||||||||||||||||
| Share-based compensation | 60 | (1) | 59 | ||||||||||||||||||||||||||
| Common dividends ($.52 per share) | (194) | (194) | (388) | ||||||||||||||||||||||||||
| Common Stock Repurchase | (216) | (59) | (275) | ||||||||||||||||||||||||||
| Issuance of Corteva stock | 56 | 56 | |||||||||||||||||||||||||||
| Acquisition of a noncontrolling interest in consolidated subsidiaries | (37) | (15) | (52) | ||||||||||||||||||||||||||
| Other - net | 41 | (2) | (12) | 27 | |||||||||||||||||||||||||
| Balance at December 31, 2020 | $ | 7 | $ | 27,707 | $ | — | $ | (2,890) | $ | — | $ | 239 | $ | 25,063 | |||||||||||||||
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| Level 1 | – | Quoted market prices in active markets for identical assets or liabilities; | ||||||
| Level 2 | – | Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); | ||||||
| Level 3 | – | Unobservable inputs for the asset or liability, which are valued based on management's estimates of assumptions that market participants would use in pricing the asset or liability. | ||||||
| For the Year Ended December 31, 2018 | ||||||||||||||
| (In millions) | Historical EID |
Discontinued Operations and Other Adjustments1
|
DAS | Corteva | ||||||||||
| Net Sales | $ | 26,279 | $ | (17,638) | $ | 5,646 | $ | 14,287 | ||||||
| (Loss) income from continuing operations before income taxes | $ | (4,793) | $ | (2,128) | $ | 115 | $ | (6,806) | ||||||
| Loss from continuing operations after income taxes | $ | (5,013) | $ | (1,753) | $ | (9) | $ | (6,775) | ||||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Net sales | $ | 362 | $ | 1,564 | ||||
|
Cost of goods sold
|
259 | 1,082 | ||||||
|
Research and development expense
|
4 | 23 | ||||||
|
Selling, general and administrative expenses
|
9 | 43 | ||||||
|
Amortization of intangibles
|
23 | 96 | ||||||
|
Restructuring and asset related charges - net
|
2 | 12 | ||||||
|
Integration and separation costs
|
44 | 135 | ||||||
|
Other income - net
|
2 | 13 | ||||||
| Income from discontinued operations before income taxes | 23 | 186 | ||||||
| Provision for income taxes on discontinued operations | 4 | 35 | ||||||
| Income from discontinued operations after income taxes | $ | 19 | $ | 151 | ||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Depreciation | $ | 28 | $ | 133 | ||||
| Amortization of intangibles | 23 | 96 | ||||||
| Capital expenditures | 16 | 77 | ||||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Net sales | $ | 5,030 | $ | 15,711 | ||||
| Cost of goods sold | 3,352 | 10,533 | ||||||
| Research and development expense | 204 | 626 | ||||||
| Selling, general and administrative expenses | 573 | 1,599 | ||||||
| Amortization of intangibles | 267 | 815 | ||||||
| Restructuring and asset related charges - net | 115 | 97 | ||||||
| Integration and separation costs | 253 | 340 | ||||||
| Goodwill impairment | 1,102 | — | ||||||
| Other income - net | 57 | 241 | ||||||
| (Loss) income from discontinued operations before income taxes | (779) | 1,942 | ||||||
| Provision for income taxes on discontinued operations | 80 | 340 | ||||||
| (Loss) income from discontinued operations after income taxes | $ | (859) | $ | 1,602 | ||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2019 | 2018 | ||||||
| Depreciation | $ | 281 | $ | 837 | ||||
| Amortization of intangibles | 267 | 815 | ||||||
|
Capital expenditures
|
481 | 911 | ||||||
| Contract Balances | December 31, 2020 | December 31, 2019 | ||||||
| (In millions) | ||||||||
|
Accounts and notes receivable - trade1
|
$ | 3,917 | $ | 4,396 | ||||
|
Contract assets - current2
|
$ | 22 | $ | 20 | ||||
|
Contract assets - noncurrent3
|
$ | 54 | $ | 49 | ||||
|
Deferred revenue - current4
|
$ | 2,662 | $ | 2,584 | ||||
|
Deferred revenue - noncurrent5
|
$ | 116 | $ | 108 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 |
20191
|
20181
|
||||||||
| Corn | $ | 5,182 | $ | 5,126 | $ | 5,220 | |||||
| Soybean | 1,445 | 1,387 | 1,497 | ||||||||
| Other oilseeds | 619 | 593 | 645 | ||||||||
| Other | 510 | 484 | 480 | ||||||||
| Seed | 7,756 | 7,590 | 7,842 | ||||||||
| Herbicides | 3,280 | 3,206 | 3,413 | ||||||||
| Insecticides | 1,764 | 1,652 | 1,506 | ||||||||
| Fungicides | 1,032 | 1,072 | 1,142 | ||||||||
| Other | 385 | 326 | 384 | ||||||||
| Crop Protection | 6,461 | 6,256 | 6,445 | ||||||||
| Total | $ | 14,217 | $ | 13,846 | $ | 14,287 | |||||
| Crop Protection | For the Year Ended December 31, | ||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
|
North America1
|
$ | 2,373 | $ | 2,205 | $ | 2,438 | |||||
|
EMEA2
|
1,374 | 1,362 | 1,357 | ||||||||
| Latin America | 1,688 | 1,759 | 1,715 | ||||||||
| Asia Pacific | 1,026 | 930 | 935 | ||||||||
| Total | $ | 6,461 | $ | 6,256 | $ | 6,445 | |||||
| (In millions) | For the Year Ended December 31, 2020 | ||||
| Seed | $ | 15 | |||
| Crop Protection | 98 | ||||
| Corporate expenses | 63 | ||||
| Total | $ | 176 | |||
| (In millions) | For the Year Ended December 31, 2020 | ||||
| Severance and related benefit costs - net | $ | 63 | |||
| Asset related charges | 113 | ||||
| Total restructuring and asset related charges - net | $ | 176 | |||
| (In millions) | Severance and Related Benefit (Credits) Costs | Asset Related Charges | Total | ||||||||
| Balance at December 31, 2019 | $ | — | $ | — | $ | — | |||||
| Charges to income from continuing operations for the year ended December 31, 2020 | 63 | 113 | 176 | ||||||||
| Payments | (10) | (5) | (15) | ||||||||
| Asset write-offs | — | (105) | (105) | ||||||||
| Balance at December 31, 2020 | $ | 53 | $ | 3 | $ | 56 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Seed | $ | (9) | $ | 66 | $ | 237 | |||||
| Crop Protection | 11 | 27 | 57 | ||||||||
| Corporate expenses | (2) | (1) | 190 | ||||||||
| Total | $ | — | $ | 92 | $ | 484 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Severance and related benefit (credits) costs - net | $ | (2) | $ | (7) | $ | 191 | |||||
| Contract termination charges | — | 69 | 84 | ||||||||
| Asset related charges | 2 | 30 | 209 | ||||||||
| Total restructuring and asset related charges - net | $ | — | $ | 92 | $ | 484 | |||||
| (In millions) | Severance and Related Benefit (Credits) Costs |
Costs Associated with Exit and Disposal Activities1
|
Asset Related Charges | Total | ||||||||||
| Balance at December 31, 2019 | $ | 29 | $ | 40 | $ | — | $ | 69 | ||||||
| (Benefits) charges to income from continuing operations for the year ended December 31, 2020 | (2) | — | 5 | 3 | ||||||||||
| Payments | (19) | (10) | 2 | (27) | ||||||||||
| Asset write-offs | — | — | (7) | (7) | ||||||||||
| Balance at December 31, 2020 | $ | 8 | $ | 30 | $ | — | $ | 38 | ||||||
| (In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||
| Seed | $ | 3 | $ | 5 | ||||
| Crop Protection | (4) | 1 | ||||||
| Corporate expenses | (13) | 78 | ||||||
| Total | $ | (14) | $ | 84 | ||||
| (In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018 | ||||||
| Severance and related benefit (credits) costs - net | $ | (17) | $ | 78 | ||||
| Asset related charges | 3 | 6 | ||||||
| Total | $ | (14) | $ | 84 | ||||
| Other Income - Net | For the Year Ended December 31, | ||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Interest income | $ | 56 | $ | 59 | $ | 86 | |||||
| Equity in losses of affiliates - net | — | (9) | (1) | ||||||||
|
Net (loss) gain on sales of businesses and other assets1
|
(2) | 64 | 62 | ||||||||
|
Net exchange losses2,3
|
(174) | (99) | (127) | ||||||||
|
Non-operating pension and other post employment benefit credit4
|
368 | 191 | 275 | ||||||||
|
Miscellaneous (expenses) income - net5
|
(36) | 9 | (46) | ||||||||
| Other income - net | $ | 212 | $ | 215 | $ | 249 | |||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Subsidiary Monetary Position (Loss) Gain | |||||||||||
| Pre-tax exchange (loss) gain | $ | (263) | $ | (41) | $ | (221) | |||||
| Local tax benefits (expenses) | 34 | 2 | (31) | ||||||||
| Net after-tax impact from subsidiary exchange loss | $ | (229) | $ | (39) | $ | (252) | |||||
| Hedging Program (Loss) Gain | |||||||||||
| Pre-tax exchange gain (loss) | $ | 89 | $ | (58) | $ | 94 | |||||
| Tax (expenses) benefits | (21) | 13 | (21) | ||||||||
| Net after-tax impact from hedging program exchange gain (loss) | $ | 68 | $ | (45) | $ | 73 | |||||
| Total Exchange (Loss) Gain | |||||||||||
| Pre-tax exchange loss | $ | (174) | $ | (99) | $ | (127) | |||||
| Tax benefits (expenses) | 13 | 15 | (52) | ||||||||
| Net after-tax exchange loss | $ | (161) | $ | (84) | $ | (179) | |||||
| (In millions) | December 31, 2020 | December 31, 2019 | ||||||
| Cash and cash equivalents | $ | 3,526 | $ | 1,764 | ||||
| Restricted cash | 347 | 409 | ||||||
| Total cash, cash equivalents and restricted cash | 3,873 | 2,173 | ||||||
| Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | For the Year Ended December 31, | ||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Income (loss) from continuing operations before income taxes | |||||||||||
| Domestic | $ | (83) | $ | (1,352) | $ | (5,040) | |||||
| Foreign | 758 | 1,036 | (1,766) | ||||||||
| Income (loss) from continuing operations before income taxes | $ | 675 | $ | (316) | $ | (6,806) | |||||
| Current tax expense (benefit) | |||||||||||
| Federal | $ | 28 | $ | (11) | $ | (112) | |||||
| State and local | 9 | 1 | (32) | ||||||||
| Foreign | 222 | 317 | 446 | ||||||||
| Total current tax expense | $ | 259 | $ | 307 | $ | 302 | |||||
| Deferred tax (benefit) expense | |||||||||||
| Federal | $ | (116) | $ | (392) | $ | (124) | |||||
| State and local | 27 | 156 | (39) | ||||||||
| Foreign | (251) | (117) | (170) | ||||||||
| Total deferred tax benefit | $ | (340) | $ | (353) | $ | (333) | |||||
| Benefit from income taxes on continuing operations | (81) | (46) | (31) | ||||||||
| Net income (loss) from continuing operations after taxes | $ | 756 | $ | (270) | $ | (6,775) | |||||
| Reconciliation to U.S. Statutory Rate | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
|
Effective tax rates on international operations - net 1
|
(13.9) | (18.4) | 0.4 | ||||||||
|
Acquisitions, divestitures and ownership restructuring activities 2, 3, 4
|
(0.3) | (10.7) | (2.3) | ||||||||
| U.S. research and development credit | (2.9) | 7.0 | 0.1 | ||||||||
|
Exchange gains/losses 5
|
3.5 | (1.8) | (1.3) | ||||||||
|
SAB 118 Impact of Enactment of U.S. Tax Reform6
|
— | — | (3.0) | ||||||||
| State and local incomes taxes - net | 4.0 | 3.2 | 0.5 | ||||||||
|
Impact of Swiss Tax Reform7
|
(27.0) | 11.9 | — | ||||||||
| Excess tax benefits/deficiencies from stock compensation | 1.0 | (0.6) | 0.1 | ||||||||
| Tax settlements and expiration of statute of limitations | 0.4 | 3.9 | (0.1) | ||||||||
|
Goodwill impairment 8
|
— | — | (15.2) | ||||||||
| Other - net | 2.2 | (0.9) | 0.3 | ||||||||
| Effective tax rate on income from continuing operations | (12.0) | % | 14.6 | % | 0.5 | % | |||||
| Deferred Tax Balances at December 31 | 2020 | 2019 | ||||||||||||
| (In millions) | Assets | Liabilities | Assets | Liabilities | ||||||||||
| Property | $ | — | $ | 170 | $ | — | $ | 369 | ||||||
|
Tax loss and credit carryforwards1
|
497 | — | 761 | — | ||||||||||
| Accrued employee benefits | 1,415 | — | 1,717 | — | ||||||||||
| Other accruals and reserves | 238 | — | 135 | — | ||||||||||
| Intangibles | — | 2,418 | — | 2,738 | ||||||||||
| Inventory | 127 | — | 25 | — | ||||||||||
| Research and development capitalization | 186 | — | 131 | — | ||||||||||
| Investments | 56 | — | 53 | — | ||||||||||
| Unrealized exchange gains/losses | 2 | — | — | 39 | ||||||||||
| Other – net | 91 | — | 148 | — | ||||||||||
| Subtotal | $ | 2,612 | $ | 2,588 | $ | 2,970 | $ | 3,146 | ||||||
|
Valuation allowances2
|
(453) | — | (457) | — | ||||||||||
| Total | $ | 2,159 | $ | 2,588 | $ | 2,513 | $ | 3,146 | ||||||
| Net Deferred Tax Liability | $ | (429) | $ | (633) | ||||||||||
| Operating Loss and Tax Credit Carryforwards | Deferred Tax Asset | |||||||
| (In millions) | 2020 | 2019 | ||||||
| Operating loss carryforwards | ||||||||
| Expire within 5 years | $ | 99 | $ | 131 | ||||
| Expire after 5 years or indefinite expiration | 343 | 400 | ||||||
| Total operating loss carryforwards | $ | 442 | $ | 531 | ||||
| Tax credit carryforwards | ||||||||
| Expire within 5 years | $ | 14 | $ | 30 | ||||
| Expire after 5 years or indefinite expiration | 41 | 200 | ||||||
| Total tax credit carryforwards | $ | 55 | $ | 230 | ||||
| Total Operating Loss and Tax Credit Carryforwards | $ | 497 | $ | 761 | ||||
| Total Gross Unrecognized Tax Benefits | For the Year Ended December 31, | ||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Total unrecognized tax benefits as of beginning of period | $ | 426 | $ | 749 | $ | 741 | |||||
| Decreases related to positions taken on items from prior years | (14) | (167) | (44) | ||||||||
| Increases related to positions taken on items from prior years | 5 | 77 | 74 | ||||||||
| Increases related to positions taken in the current year | 6 | 54 | 9 | ||||||||
| Settlement of uncertain tax positions with tax authorities | (18) | (9) | (13) | ||||||||
| Impact of Internal Reorganizations | — | (278) | — | ||||||||
| Decreases due to expiration of statutes of limitations | (7) | — | (5) | ||||||||
| Exchange loss (gain) | (3) | — | (13) | ||||||||
| Total unrecognized tax benefits as of end of period | $ | 395 | $ | 426 | $ | 749 | |||||
| Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | 156 | $ | 188 | $ | 45 | |||||
| Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations | $ | (2) | $ | (4) | $ | 11 | |||||
| Total accrual for interest and penalties associated with unrecognized tax benefits at end of period | $ | 18 | $ | 24 | $ | 45 | |||||
| Net Income (Loss) for Earnings Per Share Calculations - Basic and Diluted | For the Year Ended December 31, | ||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Income (loss) from continuing operations after income taxes | $ | 756 | $ | (270) | $ | (6,775) | |||||
| Net income attributable to continuing operations noncontrolling interests | 20 | 13 | 29 | ||||||||
| Income (loss) from continuing operations attributable to Corteva common stockholders | 736 | (283) | (6,804) | ||||||||
| (Loss) income from discontinued operations, net of tax | (55) | (671) | 1,748 | ||||||||
| Net income attributable to discontinued operations noncontrolling interests | — | 5 | 9 | ||||||||
| (Loss) income from discontinued operations attributable to Corteva common stockholders | (55) | (676) | 1,739 | ||||||||
| Net income (loss) attributable to common stockholders | $ | 681 | $ | (959) | $ | (5,065) | |||||
| Earnings (Loss) Per Share Calculations - Basic | For the Year Ended December 31, | ||||||||||
| (Dollars per share) | 2020 | 2019 | 2018 | ||||||||
| Earnings (loss) per share of common stock from continuing operations | $ | 0.98 | $ | (0.38) | $ | (9.08) | |||||
| (Loss) earnings per share of common stock from discontinued operations | (0.07) | (0.90) | 2.32 | ||||||||
| Earnings (loss) per share of common stock | $ | 0.91 | $ | (1.28) | $ | (6.76) | |||||
| Earnings (Loss) Per Share Calculations - Diluted | For the Year Ended December 31, | ||||||||||
| (Dollars per share) | 2020 | 2019 | 2018 | ||||||||
| Earnings (loss) per share of common stock from continuing operations | $ | 0.98 | $ | (0.38) | $ | (9.08) | |||||
| (Loss) earnings per share of common stock from discontinued operations | (0.07) | (0.90) | 2.32 | ||||||||
| Earnings (loss) per share of common stock | $ | 0.91 | $ | (1.28) | $ | (6.76) | |||||
| Share Count Information | For the Year Ended December 31, | ||||||||||
| (Shares in millions) | 2020 | 2019 | 2018 | ||||||||
|
Weighted-average common shares - basic1
|
748.7 | 749.5 | 749.4 | ||||||||
|
Plus dilutive effect of equity compensation plans2
|
2.5 | — | — | ||||||||
| Weighted-average common shares - diluted | 751.2 | 749.5 | 749.4 | ||||||||
|
Potential shares of common stock excluded from EPS calculations3
|
9.4 | 14.4 | — | ||||||||
| (In millions) | December 31, 2020 | December 31, 2019 | ||||||
|
Accounts receivable – trade1
|
$ | 3,754 | $ | 4,225 | ||||
|
Notes receivable – trade1,2
|
163 | 171 | ||||||
|
Other3
|
1,009 | 1,132 | ||||||
| Total accounts and notes receivable - net | $ | 4,926 | $ | 5,528 | ||||
| (In millions) | |||||
| Balance at December 31, 2019 | $ | 174 | |||
| Additions charged to expense | 154 | ||||
| Write-offs charged against allowance | (8) | ||||
| Recoveries collected | (101) | ||||
| Other | (11) | ||||
| Balance at December 31, 2020 | $ | 208 | |||
| (In millions) | December 31, 2020 | December 31, 2019 | ||||||
| Finished products | $ | 2,584 | $ | 2,684 | ||||
| Semi-finished products | 1,813 | 1,850 | ||||||
| Raw materials and supplies | 485 | 498 | ||||||
| Total inventories | $ | 4,882 | $ | 5,032 | ||||
| (In millions) | December 31, 2020 | December 31, 2019 | ||||||
| Land and land improvements | $ | 451 | $ | 459 | ||||
| Buildings | 1,525 | 1,508 | ||||||
| Machinery and equipment | 5,556 | 5,323 | ||||||
| Construction in progress | 721 | 582 | ||||||
| Total property, plant and equipment | 8,253 | 7,872 | ||||||
| Accumulated depreciation | (3,857) | (3,326) | ||||||
| Total property, plant and equipment - net | $ | 4,396 | $ | 4,546 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Depreciation expense | $ | 495 | $ | 525 | $ | 518 | |||||
| (In millions) | Agriculture | Crop Protection | Seed | Total | ||||||||||
| Balance as of December 31, 2018 | $ | 10,193 | $ | — | $ | — | $ | 10,193 | ||||||
| Currency translation adjustment | (28) | — | — | (28) | ||||||||||
|
Other goodwill adjustments and acquisitions1
|
14 | — | — | 14 | ||||||||||
| Realignment of segments | (10,179) | 4,726 | 5,453 | — | ||||||||||
| Balance as of June 1, 2019 | $ | — | $ | 4,726 | $ | 5,453 | $ | 10,179 | ||||||
| Currency translation adjustment | — | 28 | 32 | 60 | ||||||||||
|
Other goodwill adjustments and acquisitions2
|
— | (11) | 1 | (10) | ||||||||||
| Balance as of December 31, 2019 | — | 4,743 | 5,486 | 10,229 | ||||||||||
| Currency translation adjustment | — | 31 | 38 | 69 | ||||||||||
|
Other goodwill adjustments and acquisitions2
|
— | (29) | — | (29) | ||||||||||
| Balance as of December 31, 2020 | $ | — | $ | 4,745 | $ | 5,524 | $ | 10,269 | ||||||
| (In millions) | December 31, 2020 | December 31, 2019 | ||||||||||||||||||
| Gross |
Accumulated
Amortization |
Net | Gross |
Accumulated
Amortization |
Net | |||||||||||||||
|
Intangible assets subject to amortization (Definite-lived):
|
||||||||||||||||||||
|
Germplasm1
|
$ | 6,265 | $ | (317) | $ | 5,948 | $ | 6,265 | $ | (63) | $ | 6,202 | ||||||||
|
Customer-related
|
1,984 | (380) | 1,604 | 1,977 | (268) | 1,709 | ||||||||||||||
| Developed technology | 1,451 | (525) | 926 | 1,463 | (370) | 1,093 | ||||||||||||||
|
Trademarks/trade names2
|
2,019 | (99) | 1,920 | 166 | (86) | 80 | ||||||||||||||
|
Favorable supply contracts
|
475 | (302) | 173 | 475 | (207) | 268 | ||||||||||||||
|
Other3
|
405 | (239) | 166 | 404 | (213) | 191 | ||||||||||||||
|
Total other intangible assets with finite lives
|
12,599 | (1,862) | 10,737 | 10,750 | (1,207) | 9,543 | ||||||||||||||
|
Intangible assets not subject to amortization (Indefinite-lived):
|
||||||||||||||||||||
| IPR&D | 10 | — | 10 | 10 | — | 10 | ||||||||||||||
|
Trade name2
|
1,871 | — | 1,871 | |||||||||||||||||
|
Total other intangible assets
|
10 | — | 10 | 1,881 | — | 1,881 | ||||||||||||||
| Total | $ | 12,609 | $ | (1,862) | $ | 10,747 | $ | 12,631 | $ | (1,207) | $ | 11,424 | ||||||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2020 | 2019 | ||||||
| Operating lease cost | $ | 197 | $ | 166 | ||||
| Finance lease cost | ||||||||
| Amortization of right-of-use assets | 2 | 10 | ||||||
| Interest on lease liabilities | — | 1 | ||||||
| Total finance lease cost | 2 | 11 | ||||||
| Short-term lease cost | 14 | 17 | ||||||
| Variable lease cost | 7 | 7 | ||||||
| Total lease cost | $ | 220 | $ | 201 | ||||
| For the Year Ended December 31, | ||||||||
| (In millions) | 2020 | 2019 | ||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash outflows from operating leases | $ | 202 | $ | 174 | ||||
| Operating cash outflows from finance leases | $ | — | $ | 1 | ||||
| Financing cash outflows from finance leases | $ | 1 | $ | 9 | ||||
| (In millions) | December 31, 2020 | December 31, 2019 | ||||||
|
Operating Leases
|
||||||||
|
Operating lease right-of-use assets1
|
$ | 521 | $ | 555 | ||||
|
Current operating lease liabilities2
|
138 | 140 | ||||||
|
Noncurrent operating lease liabilities3
|
391 | 426 | ||||||
|
Total operating lease liabilities
|
$ | 529 | $ | 566 | ||||
|
Finance Leases
|
||||||||
|
Property, plant, and equipment, gross
|
$ | 15 | $ | 15 | ||||
|
Accumulated depreciation
|
(10) | (8) | ||||||
|
Property, plant, and equipment, net
|
5 | 7 | ||||||
| Short-term borrowings and finance lease obligations | 1 | 4 | ||||||
| Long-Term Debt | 4 | 5 | ||||||
| Total finance lease liabilities | $ | 5 | $ | 9 | ||||
| Lease Term and Discount Rate | December 31, 2020 | December 31, 2019 | ||||||
| Weighted-average remaining lease term (years) | ||||||||
| Operating leases | 7.71 | 10.80 | ||||||
| Financing leases | 4.26 | 5.10 | ||||||
| Weighted average discount rate | ||||||||
| Operating leases | 3.06 | % | 3.96 | % | ||||
| Financing leases | 3.28 | % | 3.26 | % | ||||
| Maturity of Lease Liabilities at December 31, 2020 | Operating Leases | Financing Leases | ||||||
| (In millions) | ||||||||
| 2021 | $ | 152 | $ | 1 | ||||
| 2022 | 114 | 1 | ||||||
| 2023 | 83 | 1 | ||||||
| 2024 | 61 | 1 | ||||||
| 2025 | 51 | 1 | ||||||
| 2026 and thereafter | 137 | — | ||||||
| Total lease payments | 598 | 5 | ||||||
| Less: Interest | 69 | — | ||||||
| Present value of lease liabilities | $ | 529 | $ | 5 | ||||
| Maturity of Lease Liabilities at December 31, 2019 | Operating Leases | Financing Leases | ||||||
| (In millions) | ||||||||
| 2020 | $ | 154 | $ | 4 | ||||
| 2021 | 120 | 2 | ||||||
| 2022 | 93 | 1 | ||||||
| 2023 | 67 | 1 | ||||||
| 2024 | 47 | 1 | ||||||
| 2025 and thereafter | 167 | 1 | ||||||
| Total lease payments | 648 | 10 | ||||||
| Less: Interest | 82 | 1 | ||||||
| Present value of lease liabilities | $ | 566 | $ | 9 | ||||
| Long-Term Debt | |||||||||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||
| (In millions) | Amount | Weighted Average Rate | Amount | Weighted Average Rate | |||||||||||||
| Promissory notes and debentures: | |||||||||||||||||
| Maturing in 2025 | 500 | 1.70 | % | — | — | % | |||||||||||
| Maturing in 2030 | 500 | 2.30 | % | — | — | % | |||||||||||
| Other loans: | |||||||||||||||||
| Foreign currency loans, various rates and maturities | 1 | 2 | |||||||||||||||
| Medium-term notes, varying maturities through 2041 | 109 | — | % | 109 | 1.61 | % | |||||||||||
| Finance lease obligations | 4 | 5 | |||||||||||||||
| Less: Unamortized debt discount and issuance costs | 11 | — | |||||||||||||||
| Less: Long-term debt due within one year | 1 | 1 | |||||||||||||||
| Total | $ | 1,102 | $ | 115 | |||||||||||||
| Committed and Available Credit Facilities at December 31, 2020 | |||||||||||||||||
| (In millions) | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest | ||||||||||||
| Revolving Credit Facility | May 2019 | $ | 3,000 | $ | 3,000 | May 2024 | Floating Rate | ||||||||||
| Revolving Credit Facility | May 2019 | 3,000 | 3,000 | May 2022 | Floating Rate | ||||||||||||
| Total Committed and Available Credit Facilities | $ | 6,000 | $ | 6,000 | |||||||||||||
| (in millions) | Amount | ||||
| 4.625% Notes due 2020 | $ | 474 | |||
| 3.625% Notes due 2021 | 296 | ||||
| 4.250% Notes due 2021 | 163 | ||||
| 2.800% Notes due 2023 | 381 | ||||
| 6.500% Debentures due 2028 | 57 | ||||
| 5.600% Senior Notes due 2036 | 42 | ||||
| 4.900% Notes due 2041 | 48 | ||||
| 4.150% Notes due 2043 | 69 | ||||
| Total | $ | 1,530 | |||
| As of December 31, 2020 | |||||||||||
| (In millions) | Indemnification Asset |
Accrual balance3,4
|
Potential exposure above amount accrued3
|
||||||||
| Environmental Remediation Stray Liabilities | |||||||||||
|
Chemours related obligations - subject to indemnity1,2
|
$ | 153 | $ | 154 | $ | 282 | |||||
|
Other discontinued or divested businesses obligations1
|
— | 74 | 222 | ||||||||
|
Environmental remediation liabilities primarily related to DuPont - subject to indemnity from DuPont2
|
37 | 36 | 61 | ||||||||
| Environmental remediation liabilities not subject to indemnity | — | 65 | 55 | ||||||||
| Total | $ | 190 | $ | 329 | $ | 620 | |||||
| Shares of common stock | Issued | |||||||
| Balance June 1, 2019 | 748,815,000 | |||||||
| Issued | 586,000 | |||||||
| Repurchased and retired | (824,000) | |||||||
| Balance December 31, 2019 | 748,577,000 | |||||||
| Issued | 3,384,000 | |||||||
| Repurchased and retired | (8,503,000) | |||||||
| Balance December 31, 2020 | 743,458,000 | |||||||
| (Shares in thousands) | Number of Shares | ||||
| Authorized | 23,000 | ||||
| $4.50 Series, callable at $120 | 1,673 | ||||
| $3.50 Series, callable at $102 | 700 | ||||
| (In millions) |
Cumulative Translation Adjustment1
|
Derivative Instruments | Pension Benefit Plans | Other Benefit Plans |
Unrealized Gain (Loss) on Investments2
|
Total | ||||||||||||||
| 2018 | ||||||||||||||||||||
| Balance January 1, 2018 | $ | (1,217) | $ | (2) | $ | 95 | $ | (53) | $ | — | $ | (1,177) | ||||||||
|
Other comprehensive (loss) income before reclassifications
|
(1,576) | (19) | (724) | 132 | — | (2,187) | ||||||||||||||
|
Amounts reclassified from accumulated other comprehensive income
|
— | (5) | 9 | — | — | 4 | ||||||||||||||
|
Net other comprehensive (loss) income
|
(1,576) | (24) | (715) | 132 | — | (2,183) | ||||||||||||||
| Balance December 31, 2018 | $ | (2,793) | $ | (26) | $ | (620) | $ | 79 | $ | — | $ | (3,360) | ||||||||
| 2019 | ||||||||||||||||||||
|
Other comprehensive (loss) income before reclassifications
|
$ | (274) | $ | 16 | $ | (723) | $ | (159) | $ | — | $ | (1,140) | ||||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
— | 12 | 5 | (1) | — | 16 | ||||||||||||||
|
Net other comprehensive (loss) income
|
(274) | 28 | (718) | (160) | — | (1,124) | ||||||||||||||
|
Impact of Internal Reorganizations
|
1,123 | — | 91 | — | — | 1,214 | ||||||||||||||
| Balance December 31, 2019 | $ | (1,944) | $ | 2 | $ | (1,247) | $ | (81) | $ | — | $ | (3,270) | ||||||||
| 2020 | ||||||||||||||||||||
|
Other comprehensive (loss) income before reclassifications
|
$ | (26) | $ | (81) | $ | (191) | $ | 670 | $ | (10) | $ | 362 | ||||||||
|
Amounts reclassified from accumulated other comprehensive loss
|
— | 12 | 5 | 1 | — | 18 | ||||||||||||||
|
Net other comprehensive (loss) income
|
(26) | (69) | (186) | 671 | (10) | 380 | ||||||||||||||
| Balance December 31, 2020 | $ | (1,970) | $ | (67) | $ | (1,433) | $ | 590 | $ | (10) | $ | (2,890) | ||||||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Derivative instruments | $ | 24 | $ | (8) | $ | 6 | |||||
| Pension benefit plans - net | 54 | 231 | 199 | ||||||||
| Other benefit plans - net | (211) | 52 | (40) | ||||||||
| Benefit from (provision for) income taxes related to other comprehensive income (loss) items | $ | (133) | $ | 275 | $ | 165 | |||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
|
Derivative Instruments1:
|
$ | 18 | $ | 13 | $ | (6) | |||||
|
Tax (benefit) expense2
|
(6) | (1) | 1 | ||||||||
| After-tax | $ | 12 | $ | 12 | $ | (5) | |||||
| Amortization of pension benefit plans: | |||||||||||
|
Prior service benefit3,4
|
(1) | (1) | — | ||||||||
|
Actuarial losses (gains)3,4,5
|
$ | 4 | $ | 2 | $ | 6 | |||||
|
Curtailment loss3,4,5
|
— | — | 7 | ||||||||
|
Settlement loss (gain)3,4,5
|
3 | 4 | (2) | ||||||||
| Total before tax | 6 | 5 | 11 | ||||||||
|
Tax (benefit) expense2
|
(1) | — | (2) | ||||||||
| After-tax | $ | 5 | $ | 5 | $ | 9 | |||||
| Amortization of other benefit plans: | |||||||||||
|
Prior service benefit3,4
|
$ | — | $ | — | $ | — | |||||
|
Actuarial (gains) losses3,4
|
1 | (1) | — | ||||||||
| Total before tax | 1 | (1) | — | ||||||||
|
Tax benefit2
|
— | — | — | ||||||||
| After-tax | $ | 1 | $ | (1) | $ | — | |||||
| Total reclassifications for the period, after-tax | $ | 18 | $ | 16 | $ | 4 | |||||
| Weighted-Average Assumptions used to Determine Benefit Obligations | December 31, 2020 | December 31, 2019 | ||||||
|
Discount rate
|
2.44 | % | 3.20 | % | ||||
|
Rate of increase in future compensation levels
|
2.54 | % | 2.60 | % | ||||
| Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
|
Discount rate
|
3.19 | % | 4.19 | % | 3.38 | % | |||||
|
Rate of increase in future compensation levels
|
2.60 | % | 2.84 | % | 4.04 | % | |||||
|
Expected long-term rate of return on plan assets
|
6.25 | % | 6.24 | % | 6.19 | % | |||||
| Weighted-Average Assumptions used to Determine Benefit Obligations | December 31, 2020 | December 31, 2019 | ||||||
|
Discount rate
|
2.09 | % | 3.07 | % | ||||
| Weighted-Average Assumptions used to Determine Net Periodic Benefit Cost | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
|
Discount rate
|
3.07 | % | 3.93 | % | 3.56 | % | |||||
| Assumed Health Care Cost Trend Rates | December 31, 2020 | December 31, 2019 | ||||||
| Health care cost trend rate assumed for next year | 7.00 | % | 7.20 | % | ||||
| Rate to which the cost trend rate is assumed to decline (the ultimate health care trend rate)¹ | N/A | 5.00 | % | |||||
| Year that the rate reached the ultimate health care cost trend rate¹ | N/A | 2028 | ||||||
| Change in Projected Benefit Obligations, Plan Assets and Funded Status | |||||||||||||||||
| Defined Benefit Pension Plans | Other Post Employment Benefits | ||||||||||||||||
| (In millions) | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2020 | For the Year Ended December 31, 2019 | |||||||||||||
| Change in benefit obligations: | |||||||||||||||||
| Benefit obligation at beginning of the period | $ | 21,004 | $ | 23,532 | $ | 2,591 | $ | 2,514 | |||||||||
| Service cost | 26 | 41 | 2 | 4 | |||||||||||||
| Interest cost | 559 | 769 | 66 | 84 | |||||||||||||
| Plan participants' contributions | 2 | 2 | 34 | 37 | |||||||||||||
| Actuarial (gain) loss | 1,659 | 2,469 | 59 | 211 | |||||||||||||
| Benefits paid | (1,538) | (1,635) | (241) | (239) | |||||||||||||
| Plan amendments | (3) | (76) | (939) | — | |||||||||||||
| Net effects of acquisitions / divestitures / other | — | (1) | — | — | |||||||||||||
| Effect of foreign exchange rates | (27) | (60) | (1) | — | |||||||||||||
| Impact of internal reorganizations | — | (4,037) | — | (20) | |||||||||||||
| Benefit obligations at end of the period | $ | 21,682 | $ | 21,004 | $ | 1,571 | $ | 2,591 | |||||||||
| Change in plan assets: | |||||||||||||||||
| Fair value of plan assets at beginning of the period | $ | 16,941 | $ | 18,951 | $ | — | $ | — | |||||||||
| Actual return on plan assets | 2,404 | 2,552 | — | — | |||||||||||||
| Employer contributions | 62 | 121 | 207 | 202 | |||||||||||||
| Plan participants' contributions | 2 | 2 | 34 | 37 | |||||||||||||
| Benefits paid | (1,538) | (1,635) | (241) | (239) | |||||||||||||
| Net effects of acquisitions / divestitures / other | — | (6) | — | — | |||||||||||||
| Effect of foreign exchange rates | (36) | (38) | — | — | |||||||||||||
| Impact of internal reorganizations | — | (3,006) | — | — | |||||||||||||
| Fair value of plan assets at end of the period | $ | 17,835 | $ | 16,941 | $ | — | $ | — | |||||||||
| Funded status | |||||||||||||||||
| U.S. plan with plan assets | $ | (3,301) | $ | (3,535) | $ | — | $ | — | |||||||||
| Non-U.S. plans with plan assets | (98) | (90) | — | — | |||||||||||||
|
All other plans 1, 2
|
(448) | (438) | (1,571) | (2,591) | |||||||||||||
| Funded status at end of the period | $ | (3,847) | $ | (4,063) | $ | (1,571) | $ | (2,591) | |||||||||
| Defined Benefit Pension Plans | Other Post Employment Benefits | |||||||||||||
| (In millions) | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||
|
Amounts recognized in the Consolidated Balance Sheets:
|
||||||||||||||
| Other Assets | $ | 7 | $ | 10 | $ | — | $ | — | ||||||
| Accrued and other current liabilities | (32) | (50) | (217) | (237) | ||||||||||
| Pension and other post employment benefits - noncurrent | (3,822) | (4,023) | (1,354) | (2,354) | ||||||||||
| Net amount recognized | $ | (3,847) | $ | (4,063) | $ | (1,571) | $ | (2,591) | ||||||
|
Pretax amounts recognized in accumulated other comprehensive loss (income):
|
||||||||||||||
| Net loss (gain) | $ | 1,886 | $ | 1,641 | $ | 163 | $ | 108 | ||||||
| Prior service (benefit) cost | (14) | (10) | (939) | — | ||||||||||
|
Pretax balance in accumulated other comprehensive loss (income) at end of year
|
$ | 1,872 | $ | 1,631 | $ | (776) | $ | 108 | ||||||
| Pension Plans with Projected Benefit Obligations in Excess of Plan Assets | December 31, 2020 | December 31, 2019 | ||||||
| (In millions) | ||||||||
| Projected benefit obligations | $ | 21,513 | $ | 20,788 | ||||
| Fair value of plan assets | 17,659 | 16,716 | ||||||
| Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | December 31, 2020 | December 31, 2019 | ||||||
| (In millions) | ||||||||
| Accumulated benefit obligations | $ | 21,369 | $ | 20,654 | ||||
| Fair value of plan assets | 17,550 | 16,620 | ||||||
| (In millions) | Defined Benefit Pension Plans | Other Post Employment Benefits | |||||||||||||||||||||
| For the Year Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
| Components of net periodic benefit (credit) cost and amounts recognized in other comprehensive loss | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | |||||||||||||||||
| Net Periodic Benefit Cost: | |||||||||||||||||||||||
| Service cost | $ | 26 | $ | 41 | $ | 136 | $ | 2 | $ | 4 | $ | 9 | |||||||||||
| Interest cost | 559 | 769 | 755 | 66 | 84 | 85 | |||||||||||||||||
| Expected return on plan assets | (1,000) | (1,078) | (1,216) | — | — | — | |||||||||||||||||
| Amortization of unrecognized loss (gain) | 4 | 3 | 10 | 1 | (1) | — | |||||||||||||||||
| Amortization of prior service (benefit) cost | (1) | (1) | — | — | — | — | |||||||||||||||||
| Curtailment gain | — | (2) | (11) | — | — | — | |||||||||||||||||
| Settlement loss | 3 | 4 | 5 | — | — | — | |||||||||||||||||
| Net periodic benefit (credit) cost - Total | $ | (409) | $ | (264) | $ | (321) | $ | 69 | $ | 87 | $ | 94 | |||||||||||
|
Less: Discontinued operations1
|
— | (14) | (42) | — | — | 1 | |||||||||||||||||
| Net periodic benefit (credit) cost - Continuing operations | $ | (409) | $ | (250) | $ | (279) | $ | 69 | $ | 87 | $ | 93 | |||||||||||
|
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
|
|||||||||||||||||||||||
| Net loss (gain) | $ | 247 | $ | 970 | $ | 908 | $ | 59 | $ | 211 | $ | (172) | |||||||||||
| Amortization of unrecognized (loss) gain | (4) | (2) | (10) | (1) | 1 | — | |||||||||||||||||
| Prior service (benefit) cost | (3) | (11) | 17 | (939) | — | — | |||||||||||||||||
| Amortization of prior service benefit | 1 | 1 | — | — | — | — | |||||||||||||||||
| Settlement loss | (3) | (4) | (2) | — | — | — | |||||||||||||||||
| Effect of foreign exchange rates | 2 | (5) | 1 | (1) | — | — | |||||||||||||||||
| Total loss (benefit) recognized in other comprehensive loss, attributable to Corteva | $ | 240 | $ | 949 | $ | 914 | $ | (882) | $ | 212 | $ | (172) | |||||||||||
|
Total recognized in net periodic benefit cost and other comprehensive loss (income)
|
$ | (169) | $ | 685 | $ | 593 | $ | (813) | $ | 299 | $ | (78) | |||||||||||
| Estimated Future Benefit Payments at December 31, 2020 | Defined Benefit Pension Plans | Other Post Employment Benefits | ||||||
| (In millions) | ||||||||
| 2021 | $ | 1,495 | $ | 217 | ||||
| 2022 | 1,456 | 140 | ||||||
| 2023 | 1,424 | 132 | ||||||
| 2024 | 1,390 | 124 | ||||||
| 2025 | 1,353 | 116 | ||||||
| Years 2026-2030 | 6,159 | 425 | ||||||
| Total | $ | 13,277 | $ | 1,154 | ||||
| Target Allocation for Plan Assets | December 31, 2020 | December 31, 2019 | ||||||
| Asset Category | ||||||||
| U.S. equity securities | 20 | % | 20 | % | ||||
| Non-U.S. equity securities | 16 | 16 | ||||||
| Fixed income securities | 51 | 50 | ||||||
| Hedge funds | 2 | 3 | ||||||
| Private market securities | 6 | 6 | ||||||
| Real estate | 4 | 3 | ||||||
| Cash and cash equivalents | 1 | 2 | ||||||
| Total | 100 | % | 100 | % | ||||
| Basis of Fair Value Measurements | Total | Level 1 | Level 2 | Level 3 | ||||||||||
| For the year ended December 31, 2020 | ||||||||||||||
| (In millions) | ||||||||||||||
| Cash and cash equivalents | $ | 2,616 | $ | 2,616 | $ | — | $ | — | ||||||
|
U.S. equity securities 1
|
3,905 | 3,898 | 2 | 5 | ||||||||||
| Non-U.S. equity securities | 2,194 | 2,189 | 2 | 3 | ||||||||||
| Debt – government-issued | 3,569 | — | 3,569 | — | ||||||||||
| Debt – corporate-issued | 2,579 | — | 2,576 | 3 | ||||||||||
| Debt – asset-backed | 616 | — | 616 | — | ||||||||||
| Private market securities | 3 | — | — | 3 | ||||||||||
| Real estate | 28 | — | — | 28 | ||||||||||
| Derivatives – asset position | — | — | — | — | ||||||||||
| Derivatives – liability position | — | — | — | — | ||||||||||
| Other | 76 | — | 3 | 73 | ||||||||||
| Subtotal | $ | 15,586 | $ | 8,703 | $ | 6,768 | $ | 115 | ||||||
| Investments measured at net asset value | ||||||||||||||
| Debt - government issued | 36 | |||||||||||||
| Debt - corporate issued | 7 | |||||||||||||
| U.S. equity securities | 32 | |||||||||||||
| Non-U.S. equity securities | 32 | |||||||||||||
| Hedge funds | 391 | |||||||||||||
| Private market securities | 1,381 | |||||||||||||
| Real estate funds | 590 | |||||||||||||
| Total investments measured at net asset value | $ | 2,469 | ||||||||||||
| Other items to reconcile to fair value of plan assets | ||||||||||||||
|
Pension trust receivables 2
|
214 | |||||||||||||
|
Pension trust payables 3
|
(434) | |||||||||||||
| Total | $ | 17,835 | ||||||||||||
| Basis of Fair Value Measurements | ||||||||||||||
| For the year ended December 31, 2019 | ||||||||||||||
| (In millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||
| Cash and cash equivalents | $ | 1,343 | $ | 1,343 | $ | — | $ | — | ||||||
|
U.S. equity securities1
|
3,665 | 3,652 | 4 | 9 | ||||||||||
| Non-U.S. equity securities | 2,053 | 2,043 | 6 | 4 | ||||||||||
| Debt – government-issued | 3,693 | — | 3,693 | — | ||||||||||
| Debt – corporate-issued | 2,956 | — | 2,952 | 4 | ||||||||||
| Debt – asset-backed | 663 | — | 663 | — | ||||||||||
| Private market securities | 2 | — | — | 2 | ||||||||||
| Real estate | 33 | — | — | 33 | ||||||||||
| Derivatives – asset position | 2 | — | 2 | — | ||||||||||
| Derivatives – liability position | (19) | — | (19) | — | ||||||||||
| Other | 19 | — | 19 | — | ||||||||||
| Subtotal | $ | 14,410 | $ | 7,038 | $ | 7,320 | $ | 52 | ||||||
| Investments measured at net asset value | ||||||||||||||
| Debt - government issued | 37 | |||||||||||||
| U.S. equity securities | 20 | |||||||||||||
| Non-U.S. equity securities | 39 | |||||||||||||
| Hedge funds | 431 | |||||||||||||
| Private market securities | 1,371 | |||||||||||||
| Real estate funds | 516 | |||||||||||||
| Total investments measured at net asset value | $ | 2,414 | ||||||||||||
| Other items to reconcile to fair value of plan assets | ||||||||||||||
|
Pension trust receivables2
|
763 | |||||||||||||
|
Pension trust payables3
|
(646) | |||||||||||||
| Total | $ | 16,941 | ||||||||||||
| Fair Value Measurement of Level 3 Pension Plan Assets | U.S. equity securities | Non-U.S. equity securities | Debt – corporate-issued | Private market securities | Real estate | Other | Total | ||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Balance at January 1, 2019 | $ | 14 | $ | 2 | $ | 14 | $ | 1 | $ | 93 | $ | 206 | $ | 330 | |||||||||
| Actual return on assets: | |||||||||||||||||||||||
| Relating to assets sold during the year ended December 31, 2019 | (2) | 1 | 9 | — | (29) | — | (21) | ||||||||||||||||
| Relating to assets held at December 31, 2019 | (5) | — | (8) | 4 | 25 | — | 16 | ||||||||||||||||
| Purchases, sales and settlements, net | 2 | 2 | (12) | (3) | (3) | — | (14) | ||||||||||||||||
| Transfers in or out of Level 3, net | — | (1) | 1 | — | — | — | — | ||||||||||||||||
| Assets transferred at Separation | — | — | — | — | (53) | (206) | (259) | ||||||||||||||||
| Balance at December 31, 2019 | $ | 9 | $ | 4 | $ | 4 | $ | 2 | $ | 33 | $ | — | $ | 52 | |||||||||
| Actual return on assets: | |||||||||||||||||||||||
| Relating to assets sold during the year ended December 31, 2020 | (25) | (6) | (7) | — | — | — | (38) | ||||||||||||||||
| Relating to assets held at December 31, 2020 | 21 | 5 | 5 | 1 | (5) | 7 | 34 | ||||||||||||||||
| Purchases, sales and settlements, net | — | — | — | — | — | 5 | 5 | ||||||||||||||||
| Transfers in or out of Level 3, net | — | — | 1 | — | — | 61 | 62 | ||||||||||||||||
| Balance at December 31, 2020 | $ | 5 | $ | 3 | $ | 3 | $ | 3 | $ | 28 | $ | 73 | $ | 115 | |||||||||
| Weighted-Average Assumptions | OIP | EIP | |||||||||
| For the year ended December 31, 2020 | For the year ended December 31, 2019 | For the year ended December 31, 2018 | |||||||||
| Dividend yield | 1.67 | % | 1.55 | % | 2.1 | % | |||||
| Expected volatility | 23.14 | % | 19.80 | % | 23.30 | % | |||||
| Risk-free interest rate | 1.3 | % | 2.4 | % | 2.8 | % | |||||
| Expected life of stock options granted during period (years) | 6.0 | 6.1 | 6.2 | ||||||||
| Stock Options | For the Year Ended December 31, 2020 | |||||||||||||
|
Number of Shares
(in thousands) |
Weighted Average Exercise Price (per share) | Weighted Average Remaining Contractual Term (in years) |
Aggregate Intrinsic Value
(in thousands) |
|||||||||||
| Outstanding at January 1, 2020 | 10,045 | $ | 32.47 | 4.73 | $ | 20,186 | ||||||||
| Granted | 1,459 | 31.16 | ||||||||||||
| Exercised | (2,349) | 24.96 | ||||||||||||
| Forfeited/Expired | (157) | 34.24 | ||||||||||||
| Outstanding at December 31, 2020 | 8,998 | $ | 34.21 | 5.27 | $ | 50,077 | ||||||||
| Exercisable at December 31, 2020 | 6,695 | $ | 33.96 | 4.27 | $ | 38,799 | ||||||||
| RSUs & PSUs | For the Year Ended December 31, 2020 | |||||||
|
Number of Shares
(in thousands) |
Weighted Average Grant Date Fair Value
(per share) |
|||||||
| Nonvested at January 1, 2020 | 5,438 | $ | 32.49 | |||||
| Granted | 1,970 | $ | 31.15 | |||||
| Vested | (1,400) | $ | 34.69 | |||||
| Forfeited | (125) | $ | 31.16 | |||||
| Nonvested at December 31, 2020 | 5,883 | $ | 31.54 | |||||
|
Notional Amounts
(In millions)
|
December 31, 2020 | December 31, 2019 | ||||||
| Derivatives designated as hedging instruments: | ||||||||
| Foreign currency contracts | $ | 1,164 | $ | — | ||||
|
Commodity contracts
|
$ | 383 | $ | 570 | ||||
| Derivatives not designated as hedging instruments: | ||||||||
|
Foreign currency contracts
|
$ | 647 | $ | 582 | ||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Beginning balance | $ | 2 | $ | (26) | $ | (2) | |||||
| Additions and revaluations of derivatives designated as cash flow hedges | (44) | 16 | (19) | ||||||||
| Clearance of hedge results to earnings | 26 | 12 | (5) | ||||||||
| Ending balance | $ | (16) | $ | 2 | $ | (26) | |||||
| (In millions) | For the Year Ended December 31, 2020 | |||||||||||||
| Beginning balance | $ | — | ||||||||||||
| Additions and revaluations of derivatives designated as cash flow hedges | (3) | |||||||||||||
| Clearance of hedges results to earnings | (14) | |||||||||||||
| Ending balance | $ | (17) | ||||||||||||
| December 31, 2020 | ||||||||||||||
| (In millions) | Balance Sheet Location | Gross |
Counterparty and Cash Collateral Netting1
|
Net Amounts Included in the Consolidated Balance Sheet | ||||||||||
| Asset derivatives: | ||||||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||
| Foreign currency contracts | Other current assets | $ | 15 | $ | — | $ | 15 | |||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||
|
Foreign currency contracts
|
Other current assets | 40 | (40) | — | ||||||||||
|
Total asset derivatives
|
$ | 55 | $ | (40) | $ | 15 | ||||||||
| Liability derivatives: | ||||||||||||||
| Derivatives designated as hedging instruments: | ||||||||||||||
| Foreign currency contracts | Accrued and other current liabilities | $ | 38 | $ | — | $ | 38 | |||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||
|
Foreign currency contracts
|
Accrued and other current liabilities | 97 | $ | (40) | 57 | |||||||||
|
Total liability derivatives
|
$ | 135 | $ | (40) | $ | 95 | ||||||||
| December 31, 2019 | ||||||||||||||
| (In millions) | Balance Sheet Location | Gross |
Counterparty and Cash Collateral Netting1
|
Net Amounts Included in the Consolidated Balance Sheet | ||||||||||
| Asset derivatives: | ||||||||||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||
|
Foreign currency contracts
|
Other current assets | $ | 25 | $ | (18) | $ | 7 | |||||||
|
Total asset derivatives
|
$ | 25 | $ | (18) | $ | 7 | ||||||||
| Liability derivatives: | ||||||||||||||
| Derivatives not designated as hedging instruments: | ||||||||||||||
|
Foreign currency contracts
|
Accrued and other current liabilities | $ | 43 | $ | (16) | $ | 27 | |||||||
|
Total liability derivatives
|
$ | 43 | $ | (16) | $ | 27 | ||||||||
|
Amount of Gain (Loss) Recognized in OCI1 - Pre-Tax
|
|||||||||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Net investment hedges: | |||||||||||
| Foreign currency contracts | $ | (45) | $ | — | $ | — | |||||
| Cash flow hedges: | |||||||||||
| Foreign currency contracts | (4) | — | — | ||||||||
| Commodity contracts | (62) | 23 | (24) | ||||||||
| Total derivatives designated as hedging instruments | $ | (111) | $ | 23 | $ | (24) | |||||
| (in millions) |
Amount of (Loss) Gain Recognized in Income - Pre-Tax1
|
||||||||||
| For the Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Cash flow hedges: | |||||||||||
|
Foreign currency contracts2
|
$ | 17 | $ | — | $ | — | |||||
|
Commodity contracts2
|
(35) | (13) | 6 | ||||||||
|
Total derivatives designated as hedging instruments
|
(18) | (13) | 6 | ||||||||
| Derivatives not designated as hedging instruments: | |||||||||||
|
Foreign currency contracts3
|
89 | (58) | 94 | ||||||||
|
Foreign currency contracts2
|
14 | — | — | ||||||||
|
Commodity contracts2
|
9 | 9 | 5 | ||||||||
|
Total derivatives not designated as hedging instruments
|
112 | (49) | 99 | ||||||||
| Total derivatives | $ | 94 | $ | (62) | $ | 105 | |||||
| Contractual Maturities of Debt Securities at December 31, 2020 | Amortized Cost | Fair Value | ||||||
| (In millions) | ||||||||
| Within one year | $ | 67 | $ | 67 | ||||
| One to five years | 159 | 159 | ||||||
| Total | $ | 226 | $ | 226 | ||||
| December 31, 2020 | Significant Other Observable Inputs | |||||||||||||
| (In millions) | Level 1 | Level 2 | ||||||||||||
| Assets at fair value: | ||||||||||||||
|
Marketable securities
|
$ | — | $ | 43 | ||||||||||
| Debt securities: | ||||||||||||||
|
U.S. treasuries1
|
226 | — | ||||||||||||
|
Derivatives relating to:2
|
||||||||||||||
|
Foreign currency
|
— | 55 | ||||||||||||
| Total assets at fair value | $ | 226 | $ | 98 | ||||||||||
| Liabilities at fair value: | ||||||||||||||
|
Derivatives relating to:2
|
||||||||||||||
|
Foreign currency
|
— | 135 | ||||||||||||
| Total liabilities at fair value | $ | — | $ | 135 | ||||||||||
| December 31, 2019 | Significant Other Observable Inputs (Level 2) | ||||||||||
| (In millions) | |||||||||||
| Assets at fair value: | |||||||||||
|
Marketable securities
|
$ | 5 | |||||||||
|
Derivatives relating to:2
|
|||||||||||
|
Foreign currency
|
25 | ||||||||||
| Total assets at fair value | $ | 30 | |||||||||
| Liabilities at fair value: | |||||||||||
|
Derivatives relating to:2
|
|||||||||||
|
Foreign currency
|
$ | 43 | |||||||||
| Total liabilities at fair value | $ | 43 | |||||||||
| Net Sales | |||||||||||
| For the Year Ended December 31, | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| United States | $ | 6,510 | $ | 6,255 | $ | 6,725 | |||||
| Canada | 658 | 674 | 687 | ||||||||
| EMEA | 2,842 | 2,740 | 2,765 | ||||||||
|
Latin America1
|
2,805 | 2,889 | 2,817 | ||||||||
| Asia Pacific | 1,402 | 1,288 | 1,293 | ||||||||
| Total | $ | 14,217 | $ | 13,846 | $ | 14,287 | |||||
| Net Property | |||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| United States | $ | 3,014 | $ | 3,069 | $ | 3,161 | |||||
| Canada | 122 | 125 | 88 | ||||||||
| EMEA | 601 | 566 | 546 | ||||||||
| Latin America | 510 | 608 | 568 | ||||||||
| Asia Pacific | 149 | 178 | 181 | ||||||||
| Total | $ | 4,396 | $ | 4,546 | $ | 4,544 | |||||
|
(In millions)
|
Seed | Crop Protection | Total | ||||||||
| As of and for the Year Ended December 31, 2020 | |||||||||||
| Net sales | $ | 7,756 | $ | 6,461 | $ | 14,217 | |||||
| Segment operating EBITDA | $ | 1,208 | $ | 1,004 | $ | 2,212 | |||||
| Depreciation and amortization | $ | 798 | $ | 379 | $ | 1,177 | |||||
| Segment assets | $ | 23,751 | $ | 13,099 | $ | 36,850 | |||||
| Investments in nonconsolidated affiliates | $ | 22 | $ | 44 | $ | 66 | |||||
| Purchases of property, plant and equipment | $ | 225 | $ | 250 | $ | 475 | |||||
| As of and for the Year Ended December 31, 2019 | |||||||||||
| 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 | |||||||||||
| 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 | |||||
| Purchase of property, plant and equipment | $ | 263 | $ | 250 | $ | 513 | |||||
|
Income (loss) from continuing operations after income taxes to segment operating EBITDA
|
For the Year Ended December 31, | |||||||||||||
| (In millions) | 2020 | 2019 | 2018 | |||||||||||
| Income (loss) from continuing operations after income taxes | $ | 756 | $ | (270) | $ | (6,775) | ||||||||
| Benefit from income taxes on continuing operations | (81) | (46) | (31) | |||||||||||
| Income (loss) from continuing operations before income taxes | 675 | (316) | (6,806) | |||||||||||
| Depreciation and amortization | 1,177 | 1,000 | 909 | |||||||||||
| Interest income | (56) | (59) | (86) | |||||||||||
| Interest expense | 45 | 136 | 337 | |||||||||||
|
Exchange losses - net 1
|
174 | 66 | 77 | |||||||||||
| Non-operating benefits - net | (316) | (129) | (211) | |||||||||||
| Goodwill impairment charge | — | — | 4,503 | |||||||||||
| Significant items | 388 | 991 | 1,346 | |||||||||||
| Pro forma adjustments | 298 | 2,003 | ||||||||||||
| Corporate expenses | 125 | 119 | 141 | |||||||||||
|
Segment operating EBITDA2
|
$ | 2,212 | $ | 2,106 | $ | 2,213 | ||||||||
|
Segment assets to total assets (in millions)
|
December 31, 2020 | December 31, 2019 | December 31, 2018 | ||||||||
| Total segment assets | $ | 36,850 | $ | 38,879 | $ | 38,632 | |||||
| Corporate assets | 5,799 | 3,518 | 4,417 | ||||||||
|
Assets related to discontinued operations1
|
— | — | 65,634 | ||||||||
| Total assets | $ | 42,649 | $ | 42,397 | $ | 108,683 | |||||
|
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 | |||||
| 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 | |||||
| Purchase of property, plant and equipment | $ | 513 | $ | 988 | $ | 1,501 | |||||
| (In millions) | Seed | Crop Protection | Corporate | Total | ||||||||||
| For the Year Ended December 31, 2020 | ||||||||||||||
|
Restructuring and Asset Related Charges - Net 1
|
$ | (165) | $ | (109) | $ | (61) | $ | (335) | ||||||
|
Loss on Divestiture 2
|
— | (53) | — | (53) | ||||||||||
| Total | $ | (165) | $ | (162) | $ | (61) | $ | (388) | ||||||
| (In millions) | Seed | Crop Protection | Corporate | Total | ||||||||||
|
For the Year Ended December 31, 20193
|
||||||||||||||
|
Restructuring and Asset Related Charges - Net 1
|
$ | (213) | $ | (23) | $ | 14 | $ | (222) | ||||||
|
Integration and Separation Costs 4
|
— | — | (632) | (632) | ||||||||||
|
Loss on Divestiture 5
|
(24) | — | — | (24) | ||||||||||
|
Amortization of Inventory Step Up 6
|
(67) | — | — | (67) | ||||||||||
|
Loss on Early Extinguishment of Debt 7
|
— | — | (13) | (13) | ||||||||||
|
Argentina Currency Devaluation 8
|
— | — | (33) | (33) | ||||||||||
| Total | $ | (304) | $ | (23) | $ | (664) | $ | (991) | ||||||
| (In millions) | Seed | Crop Protection | Corporate | Total | ||||||||||
|
For the Year Ended December 31, 20183
|
||||||||||||||
|
Restructuring and Asset Related Charges - Net 1
|
$ | (368) | $ | (58) | $ | (268) | $ | (694) | ||||||
|
Integration Costs 4
|
— | — | (571) | (571) | ||||||||||
|
Gain on Sale 9
|
24 | — | — | 24 | ||||||||||
|
Loss on Deconsolidation of Subsidiary 10
|
(53) | — | — | (53) | ||||||||||
|
Loss on Divestiture 11
|
(2) | — | — | (2) | ||||||||||
|
Income Tax Items 12
|
— | — | (50) | (50) | ||||||||||
| Total | $ | (399) | $ | (58) | $ | (889) | $ | (1,346) | ||||||
| For the Quarter Ended | ||||||||||||||||||||||||||
| In millions, except per share amounts | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||
| 2020 | ||||||||||||||||||||||||||
| Net sales | $ | 3,956 | $ | 5,191 | $ | 1,863 | $ | 3,207 | ||||||||||||||||||
| Cost of goods sold | 2,269 | 2,829 | 1,297 | 2,112 | ||||||||||||||||||||||
|
Restructuring and asset related charges - net1
|
70 | 179 | 49 | 37 | ||||||||||||||||||||||
| Income (loss) from continuing operations after income taxes | 281 | 3,4 | 766 | 5 | (390) | 99 | 6 | |||||||||||||||||||
|
Net income (loss) attributable to Corteva1
|
272 | 760 | (392) | 41 | ||||||||||||||||||||||
|
Earnings (loss) per common share, continuing operations - basic2
|
0.36 | 1.01 | (0.52) | 0.13 | ||||||||||||||||||||||
|
Earnings (loss) per common share, continuing operations - diluted2
|
0.36 | 1.01 | (0.52) | 0.13 | ||||||||||||||||||||||
| 2019 | ||||||||||||||||||||||||||
| Net sales | $ | 3,396 | $ | 5,556 | $ | 1,911 | $ | 2,983 | ||||||||||||||||||
|
Cost of goods sold7
|
2,211 | 3,047 | 1,349 | 1,968 | ||||||||||||||||||||||
|
Restructuring and asset related charges - net1
|
61 | 60 | 46 | 55 | ||||||||||||||||||||||
|
Integration and separation costs1
|
212 | 330 | 152 | 50 | ||||||||||||||||||||||
| (Loss) income from continuing operations after income taxes | (184) | 8 | 483 | 9 | (527) | 10, 11 | (42) | 12 | ||||||||||||||||||
|
Net income (loss) attributable to Corteva1
|
164 | (608) | (494) | (21) | ||||||||||||||||||||||
|
(Loss) earnings per common share, continuing operations - basic2
|
(0.26) | 0.63 | (0.69) | (0.06) | ||||||||||||||||||||||
|
(Loss) earnings per common share, continuing operations - diluted2
|
(0.26) | 0.63 | (0.69) | (0.06) | ||||||||||||||||||||||
|
James C. Collins, Jr.
Chief Executive Officer and Director |
Gregory R. Friedman
Executive Vice President, Chief Financial Officer and Director |
|||||||
|
/s/ Deloitte & Touche LLP
|
|||||
|
Midland, Michigan
|
|||||
|
July 12, 2019
|
|||||
| (In millions, except per share amounts) | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Net sales | $ | 14,217 | $ | 13,846 | $ | 14,287 | |||||
| Cost of goods sold | 8,507 | 8,575 | 9,948 | ||||||||
| Research and development expense | 1,142 | 1,147 | 1,355 | ||||||||
| Selling, general and administrative expenses | 3,043 | 3,065 | 3,041 | ||||||||
| Amortization of intangibles | 682 | 475 | 391 | ||||||||
| Restructuring and asset related charges - net | 335 | 222 | 694 | ||||||||
| Integration and separation costs | — | 744 | 992 | ||||||||
| Goodwill impairment | — | — | 4,503 | ||||||||
| Other income - net | 212 | 215 | 249 | ||||||||
| Loss on early extinguishment of debt | — | 13 | 81 | ||||||||
| Interest expense | 145 | 242 | 337 | ||||||||
| Income (loss) from continuing operations before income taxes | 575 | (422) | (6,806) | ||||||||
| Benefit from income taxes on continuing operations | (105) | (71) | (31) | ||||||||
| Income (loss) from continuing operations after income taxes | 680 | (351) | (6,775) | ||||||||
| (Loss) income from discontinued operations after income taxes | (55) | (671) | 1,748 | ||||||||
| Net income (loss) | 625 | (1,022) | (5,027) | ||||||||
| Net income attributable to noncontrolling interests | 10 | 8 | 28 | ||||||||
| Net income (loss) attributable to E. I. du Pont de Nemours and Company | $ | 615 | $ | (1,030) | $ | (5,055) | |||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Net income (loss) | $ | 625 | $ | (1,022) | $ | (5,027) | |||||
| Other comprehensive income (loss) - net of tax: | |||||||||||
| Cumulative translation adjustments | (26) | (274) | (1,576) | ||||||||
| Adjustments to pension benefit plans | (186) | (718) | (715) | ||||||||
| Adjustments to other benefit plans | 671 | (160) | 132 | ||||||||
| Unrealized gain (loss) on investments | (10) | — | — | ||||||||
| Derivative instruments | (69) | 28 | (24) | ||||||||
| Total other comprehensive income (loss) | 380 | (1,124) | (2,183) | ||||||||
| Comprehensive income (loss) | 1,005 | (2,146) | (7,210) | ||||||||
| Comprehensive income attributable to noncontrolling interests - net of tax | 10 | 8 | 28 | ||||||||
| Comprehensive income (loss) attributable to E. I. du Pont de Nemours and Company | $ | 995 | $ | (2,154) | $ | (7,238) | |||||
| (In millions, except share and per share amounts) | December 31, 2020 | December 31, 2019 | ||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 3,526 | $ | 1,764 | ||||
| Marketable securities | 269 | 5 | ||||||
| Accounts and notes receivable - net | 4,926 | 5,528 | ||||||
| Inventories | 4,882 | 5,032 | ||||||
| Other current assets | 1,165 | 1,190 | ||||||
| Total current assets | 14,768 | 13,519 | ||||||
| Investment in nonconsolidated affiliates | 66 | 66 | ||||||
| Property, plant and equipment | 8,253 | 7,872 | ||||||
| Less: Accumulated depreciation | 3,857 | 3,326 | ||||||
| Net property, plant and equipment | 4,396 | 4,546 | ||||||
| Goodwill | 10,269 | 10,229 | ||||||
| Other intangible assets | 10,747 | 11,424 | ||||||
| Deferred income taxes | 464 | 287 | ||||||
| Other assets | 1,939 | 2,326 | ||||||
| Total Assets | $ | 42,649 | $ | 42,397 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings and finance lease obligations | $ | 3 | $ | 7 | ||||
| Accounts payable | 3,615 | 3,702 | ||||||
| Income taxes payable | 123 | 95 | ||||||
| Accrued and other current liabilities | 4,810 | 4,440 | ||||||
| Total current liabilities | 8,551 | 8,244 | ||||||
| Long-Term Debt | 1,102 | 115 | ||||||
| Long-Term Debt - Related Party | 3,459 | 4,021 | ||||||
| Other Noncurrent Liabilities | ||||||||
| Deferred income tax liabilities | 893 | 920 | ||||||
| Pension and other post employment benefits - noncurrent | 5,176 | 6,377 | ||||||
| Other noncurrent obligations | 1,867 | 2,192 | ||||||
| Total noncurrent liabilities | 12,497 | 13,625 | ||||||
| Commitments and contingent liabilities | ||||||||
| Stockholders’ equity | ||||||||
|
Preferred stock, without par value – cumulative; 23,000,000 shares authorized;
issued at December 31, 2020, December 31, 2019: |
||||||||
| $4.50 Series – 1,673,000 shares (callable at $120) | 169 | 169 | ||||||
| $3.50 Series – 700,000 shares (callable at $102) | 70 | 70 | ||||||
|
Common stock, $0.30 par value; 1,800,000,000 shares authorized; 200
issued at December 31, 2020 and December 31, 2019 |
— | — | ||||||
| Additional paid-in capital | 24,049 | 23,958 | ||||||
| Retained earnings / (accumulated deficit) | 203 | (406) | ||||||
| Accumulated other comprehensive loss | (2,890) | (3,270) | ||||||
| Total E. I. du Pont de Nemours and Company stockholders’ equity | 21,601 | 20,521 | ||||||
| Noncontrolling interests | — | 7 | ||||||
| Total equity | 21,601 | 20,528 | ||||||
| Total Liabilities and Equity | $ | 42,649 | $ | 42,397 | ||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 |
20191
|
20181
|
|||||||||
| Operating activities | |||||||||||
| Net income (loss) | $ | 625 | $ | (1,022) | $ | (5,027) | |||||
| Adjustments to reconcile net income (loss) to cash used for operating activities: | |||||||||||
| Depreciation and amortization | 1,177 | 1,599 | 2,790 | ||||||||
| (Benefit from) provision for deferred income tax | (330) | (477) | 31 | ||||||||
| Net periodic pension benefit | (409) | (264) | (321) | ||||||||
| Pension contributions | (62) | (121) | (1,314) | ||||||||
| Net loss (gain) on sales of property, businesses, consolidated companies, and investments | 3 | (142) | (11) | ||||||||
| Restructuring and asset related charges - net | 335 | 339 | 803 | ||||||||
| Amortization of inventory step-up | — | 272 | 1,628 | ||||||||
| Goodwill impairment charge | — | 1,102 | 4,503 | ||||||||
| Loss on early extinguishment of debt | — | 13 | 81 | ||||||||
| Other net loss | 290 | 246 | 262 | ||||||||
| Changes in assets and liabilities, net | |||||||||||
| Accounts and notes receivable | 187 | (361) | (1,522) | ||||||||
| Inventories | 104 | 74 | (498) | ||||||||
| Accounts payable | (118) | 149 | 642 | ||||||||
| Other assets and liabilities | 184 | (411) | (1,564) | ||||||||
| Cash provided by operating activities | 1,986 | 996 | 483 | ||||||||
| Investing activities | |||||||||||
| Capital expenditures | (475) | (1,163) | (1,501) | ||||||||
| Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 83 | 249 | 69 | ||||||||
| Acquisitions of businesses - net of cash acquired | — | (10) | — | ||||||||
| Investments in and loans to nonconsolidated affiliates | (1) | (10) | (8) | ||||||||
| Proceeds from sale of ownership interest in nonconsolidated affiliates | — | 21 | 9 | ||||||||
| Purchases of investments | (995) | (138) | (1,257) | ||||||||
| Proceeds from sales and maturities of investments | 721 | 160 | 2,186 | ||||||||
| Other investing activities - net | (7) | (13) | (3) | ||||||||
| Cash used for investing activities | (674) | (904) | (505) | ||||||||
| Financing activities | |||||||||||
| Net change in borrowings (less than 90 days) | — | (1,868) | 400 | ||||||||
| Proceeds from related party debt | 103 | 4,240 | — | ||||||||
| Payments on related party debt | (665) | (219) | — | ||||||||
| Proceeds from debt | 2,439 | 1,001 | 756 | ||||||||
| Payments on debt | (1,441) | (6,804) | (5,956) | ||||||||
| Proceeds from exercise of stock options | 56 | 47 | 85 | ||||||||
| Payment for acquisition of subsidiary's interest from the non-controlling interest | (60) | — | — | ||||||||
| Distributions to DowDuPont | — | (317) | (2,806) | ||||||||
| Cash transferred to DowDuPont at Internal Reorganization | — | (2,053) | — | ||||||||
| Contributions from Dow and DowDuPont | — | 3,255 | 5,363 | ||||||||
| Debt extinguishment costs | — | (79) | (378) | ||||||||
| Other financing activities | (51) | (58) | (88) | ||||||||
| Cash provided by (used for) financing activities | 381 | (2,855) | (2,624) | ||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7 | (88) | (244) | ||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 1,700 | (2,851) | (2,890) | ||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 2,173 | 5,024 | 7,914 | ||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,873 | $ | 2,173 | $ | 5,024 | |||||
| Supplemental cash flow information | |||||||||||
| Cash paid during the period for | |||||||||||
| (In millions) | For the Year Ended December 31, | ||||||||||
| 2020 |
20191
|
20181
|
|||||||||
|
Interest, net of amounts capitalized2
|
$ | 36 | $ | 263 | $ | 923 | |||||
| Income taxes | 229 | 234 | 961 | ||||||||
| (In millions) | Preferred Stock | Common Stock | Additional Paid-in Capital | Divisional Equity | Retained Earnings (Accum Deficit) | Accumulated Other Comp Loss | Treasury Stock | Non-controlling Interests | Total Equity | ||||||||||||||||||||
| Balance at January 1, 2018 | $ | — | $ | — | $ | — | $ | 80,557 | $ | — | $ | (1,177) | $ | — | $ | 213 | $ | 79,593 | |||||||||||
| Net (loss) income | (5,055) | 28 | (5,027) | ||||||||||||||||||||||||||
| Other comprehensive loss | (2,183) | (2,183) | |||||||||||||||||||||||||||
| Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (10) | (10) | |||||||||||||||||||||||||||
| Distributions to Dow and DowDuPont | (2,806) | (2,806) | |||||||||||||||||||||||||||
| Issuance of DowDuPont stock | 85 | 85 | |||||||||||||||||||||||||||
| Share-based compensation | 129 | 129 | |||||||||||||||||||||||||||
| Contributions from Dow and DowDuPont | 5,363 | 5,363 | |||||||||||||||||||||||||||
| Other | (4) | 13 | 9 | ||||||||||||||||||||||||||
| Balance at December 31, 2018 | $ | — | $ | — | $ | — | $ | 78,259 | $ | — | $ | (3,360) | $ | — | $ | 254 | $ | 75,153 | |||||||||||
| Net (loss) income | (640) | (390) | 8 | (1,022) | |||||||||||||||||||||||||
| Other comprehensive loss | (1,124) | (1,124) | |||||||||||||||||||||||||||
| Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (2) | (2) | (6) | (10) | |||||||||||||||||||||||||
| Distributions to Dow and DowDuPont | (317) | (317) | |||||||||||||||||||||||||||
| Contributions from DowDuPont | 3,255 | 3,255 | |||||||||||||||||||||||||||
| Issuance of DowDuPont stock | 39 | 39 | |||||||||||||||||||||||||||
| Issuance of Corteva stock | 8 | 8 | |||||||||||||||||||||||||||
| Share-based compensation | 41 | 62 | 103 | ||||||||||||||||||||||||||
| Impact of Internal Reorganizations | (56,479) | 1,214 | (231) | (55,496) | |||||||||||||||||||||||||
| Reclassification of Divisional Equity to Additional Paid-in Capital | 239 | 23,936 | (24,175) | — | |||||||||||||||||||||||||
| Other | (25) | (2) | (10) | (24) | (61) | ||||||||||||||||||||||||
| Balance at December 31, 2019 | $ | 239 | $ | — | $ | 23,958 | $ | (406) | $ | (3,270) | $ | — | $ | 7 | $ | 20,528 | |||||||||||||
| Net (loss) income | 615 | 10 | 625 | ||||||||||||||||||||||||||
| Other comprehensive loss | 380 | 380 | |||||||||||||||||||||||||||
| Issuance of Corteva Stock | 56 | 56 | |||||||||||||||||||||||||||
| Preferred dividends ($4.50 Series - $4.50 per share, $3.50 Series - $3.50 per share) | (5) | (5) | (10) | ||||||||||||||||||||||||||
| Share-based compensation | 60 | (1) | 59 | ||||||||||||||||||||||||||
| Acquisition of noncontrolling interest in consolidated subsidiaries | (37) | (15) | (52) | ||||||||||||||||||||||||||
| Other | 17 | (2) | 15 | ||||||||||||||||||||||||||
| Balance at December 31, 2020 | $ | 239 | $ | — | $ | 24,049 | $ | 203 | $ | (2,890) | $ | — | $ | — | $ | 21,601 | |||||||||||||
| Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | For the Year Ended December 31, | ||||||||||
| (In millions) | 2020 | 2019 | 2018 | ||||||||
| Income (loss) from continuing operations before income taxes | |||||||||||
| Domestic | $ | (183) | $ | (1,458) | $ | (5,040) | |||||
| Foreign | 758 | 1,036 | (1,766) | ||||||||
| Income (loss) from continuing operations before income taxes | $ | 575 | $ | (422) | $ | (6,806) | |||||
| Current tax expense (benefit) | |||||||||||
| Federal | $ | 8 | $ | (11) | $ | (112) | |||||
| State and local | 5 | 1 | (32) | ||||||||
| Foreign | 222 | 317 | 446 | ||||||||
| Total current tax expense | $ | 235 | $ | 307 | $ | 302 | |||||
| Deferred tax (benefit) expense | |||||||||||
| Federal | $ | (116) | $ | (417) | $ | (124) | |||||
| State and local | 27 | 156 | (39) | ||||||||
| Foreign | (251) | (117) | (170) | ||||||||
| Total deferred tax benefit | $ | (340) | $ | (378) | $ | (333) | |||||
| Benefit from income taxes on continuing operations | (105) | (71) | (31) | ||||||||
| Net income (loss) from continuing operations | $ | 680 | $ | (351) | $ | (6,775) | |||||
| Reconciliation to U.S. Statutory Rate | For the Year Ended December 31, | ||||||||||
| 2020 | 2019 | 2018 | |||||||||
| Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||
|
Effective tax rates on international operations - net 1
|
(16.4) | (13.8) | 0.4 | ||||||||
|
Acquisitions, divestitures and ownership restructuring activities 2, 3, 4
|
(0.3) | (8.0) | (2.3) | ||||||||
| U.S. research and development credit | (3.4) | 5.2 | 0.1 | ||||||||
|
Exchange gains/losses 5
|
4.1 | (1.3) | (1.3) | ||||||||
| State and local income taxes - net | 4.2 | 3.0 | 0.5 | ||||||||
|
SAB 118 Impact of Enactment of U.S. Tax Reform6
|
— | — | (3.0) | ||||||||
|
Impact of Swiss Tax Reform7
|
(31.7) | 8.9 | — | ||||||||
| Excess tax benefits/deficiencies from stock compensation | 1.2 | (0.5) | 0.1 | ||||||||
| Tax settlements and expiration of statute of limitations | 0.4 | 2.9 | (0.1) | ||||||||
|
Goodwill impairment 8
|
— | — | (15.2) | ||||||||
| Other - net | 2.6 | (0.6) | 0.3 | ||||||||
| Effective tax rate | (18.3) | % | 16.8 | % | 0.5 | % | |||||
|
Income (loss) from continuing operations after income taxes to segment operating EBITDA
(In millions)
|
For the Year Ended December 31, | |||||||||||||
| 2020 | 2019 | 2018 | ||||||||||||
| Income (loss) from continuing operations after income taxes | $ | 680 | $ | (351) | $ | (6,775) | ||||||||
| Benefit from income taxes on continuing operations | (105) | (71) | (31) | |||||||||||
| Income (loss) from continuing operations before income taxes | 575 | (422) | (6,806) | |||||||||||
| Depreciation and amortization | 1,177 | 1,000 | 909 | |||||||||||
| Interest income | (56) | (59) | (86) | |||||||||||
| Interest expense | 145 | 242 | 337 | |||||||||||
|
Exchange losses - net1
|
174 | 66 | 77 | |||||||||||
| Non-operating benefits - net | (316) | (129) | (211) | |||||||||||
| Goodwill impairment charge | — | — | 4,503 | |||||||||||
| Significant items | 388 | 991 | 1,346 | |||||||||||
| Pro forma adjustments | 298 | 2,003 | ||||||||||||
| Corporate expenses | 125 | 119 | 141 | |||||||||||
|
Segment operating EBITDA2
|
$ | 2,212 | $ | 2,106 | $ | 2,213 | ||||||||
| For the Quarter Ended | ||||||||||||||
| In millions (unaudited) | March 31, | June 30, | September 30, | December 31, | ||||||||||
| 2020 | ||||||||||||||
| Income (loss) from continuing operations after income taxes | $ | 257 | $ | 742 | $ | (404) | $ | 85 | ||||||
| Net income (loss) attributable to EID | $ | 250 | $ | 739 | $ | (404) | $ | 30 | ||||||
| 2019 | ||||||||||||||
| (Loss) income from continuing operations after income taxes | $ | (184) | $ | 460 | $ | (557) | $ | (70) | ||||||
| Net income (loss) attributable to EID | $ | 166 | $ | (626) | $ | (524) | $ | (46) | ||||||
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