EX-99.2 3 a123121enr.htm EX-99.2 Document
A-1
Corteva, Inc.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)
Three Months Ended December 31,Twelve Months Ended
December 31,
2021202020212020
Net sales$3,479 $3,207 $15,655 $14,217 
Cost of goods sold2,232 2,112 9,220 8,507 
Research and development expense316 305 1,187 1,142 
Selling, general and administrative expenses806 724 3,209 3,043 
Amortization of intangibles179 181 722 682 
Restructuring and asset related charges - net28 37 289 335 
Other income - net335 92 1,348 212 
Interest expense8 10 30 45 
Income (loss) from continuing operations before income taxes245 (70)2,346 675 
Provision for (benefit from) from income taxes on continuing operations90 (169)524 (81)
Income (loss) from continuing operations after income taxes155 99 1,822 756 
Income (loss) from discontinued operations after income taxes6 (56)(53)(55)
Net income (loss)161 43 1,769 701 
Net income (loss) attributable to noncontrolling interests2 2 10 20 
Net income (loss) attributable to Corteva$159 $41 $1,759 $681 
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock from continuing operations$0.21 $0.13 $2.46 $0.98 
Basic earnings (loss) per share of common stock from discontinued operations0.01 (0.08)(0.07)(0.07)
Basic earnings (loss) per share of common stock$0.22 $0.05 $2.39 $0.91 
Diluted earnings (loss) per share of common stock:
Diluted earnings (loss) per share of common stock from continuing operations$0.21 $0.13 $2.44 $0.98 
Diluted earnings (loss) per share of common stock from discontinued operations0.01 (0.08)(0.07)(0.07)
Diluted earnings (loss) per share of common stock$0.22 $0.05 $2.37 $0.91 
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions)
  Basic729.2746.3735.9748.7
  Diluted735.1749.7741.6751.2




A-2
Corteva, Inc.
Consolidated Balance Sheets
(Dollars in millions, except share amounts)
December 31,
2021		December 31,
2020
Assets
Current assets
Cash and cash equivalents$4,459 $3,526 
Marketable securities86 269 
Accounts and notes receivable, net4,811 4,926 
Inventories5,180 4,882 
Other current assets1,010 1,165 
Total current assets15,546 14,768 
Investment in nonconsolidated affiliates76 66 
Property, plant and equipment8,364 8,253 
Less: Accumulated depreciation4,035 3,857 
Net property, plant and equipment4,329 4,396 
Goodwill10,107 10,269 
Other intangible assets10,044 10,747 
Deferred income taxes438 464 
Other assets1,804 1,939 
Total Assets$42,344 $42,649 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$17 $3 
Accounts payable4,126 3,615 
Income taxes payable146 123 
Deferred revenue3,201 2,662 
Accrued and other current liabilities2,068 2,145 
Total current liabilities9,558 8,548 
Long-term debt1,100 1,102 
Other noncurrent liabilities
Deferred income tax liabilities1,220 893 
Pension and other post employment benefits - noncurrent3,124 5,176 
Other noncurrent obligations1,719 1,867 
Total noncurrent liabilities7,163 9,038 
Commitments and contingent liabilities
Stockholders' equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized;
issued at December 31, 2021 - 726,527,000 and December 31, 2020 - 743,458,000		7 7 
Additional paid-in capital27,751 27,707 
Retained earnings (accumulated deficit)524 — 
Accumulated other comprehensive income (loss)(2,898)(2,890)
Total Corteva stockholders' equity25,384 24,824 
Noncontrolling interests239 239 
Total equity25,623 25,063 
Total Liabilities and Equity$42,344 $42,649 

A-3
Corteva, Inc.
Consolidated Statements of Cash Flows
(Dollars in millions, except per share amounts)

Twelve Months Ended
December 31,
20212020
Operating activities
Net income (loss)$1,769 $701 
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities
Depreciation and amortization1,243 1,177 
Provision for (benefit from) deferred income tax174 (330)
Net periodic pension and OPEB benefit, net(1,292)(340)
Pension and OPEB contributions(247)(269)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments(21)3 
Restructuring and asset related charges - net289 335 
Other net loss156 290 
Changes in operating assets and liabilities, net
         Accounts and notes receivable(113)187 
         Inventories(422)104 
         Accounts payable524 (118)
         Deferred revenue574 71 
         Other assets and liabilities93 253 
Cash provided by (used for) operating activities2,727 2,064 
Investing activities
Capital expenditures(573)(475)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested75 83 
Investments in and loans to nonconsolidated affiliates(4)(1)
Purchases of investments(204)(995)
Proceeds from sales and maturities of investments345 721 
Other investing activities, net(1)(7)
Cash provided by (used for) investing activities(362)(674)
Financing activities
Net change in borrowings (less than 90 days)13 — 
Proceeds from debt419 2,439 
Payments on debt(421)(1,441)
Repurchase of common stock(950)(275)
Proceeds from exercise of stock options100 56 
Dividends paid to stockholders(397)(388)
Payment for acquisition of subsidiary's interest from the non-controlling interest— (60)
Other financing activities, net(30)(28)
Cash provided by (used for) financing activities(1,266)303 
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents(136)7 
Increase (decrease) in cash, cash equivalents and restricted cash equivalents963 1,700 
Cash, cash equivalents and restricted cash equivalents at beginning of period3,873 2,173 
Cash, cash equivalents and restricted cash equivalents at end of period$4,836 $3,873 


A-4
Corteva, Inc.
Consolidated Segment Information
(Dollars in millions, except per share amounts)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
SEGMENT NET SALES - SEED2021202020212020
    Corn$1,113 $958 $5,618 $5,182 
    Soybean74 63 1,568 1,445 
    Other oilseeds91 90 752 619 
    Other114 129 464 510 
Seed$1,392 $1,240 $8,402 $7,756 
Three Months Ended
December 31,		Twelve Months Ended
December 31,
SEGMENT NET SALES - CROP PROTECTION2021202020212020
    Herbicides$1,078 $965 $3,815 $3,280 
    Insecticides469 546 1,730 1,764 
    Fungicides399 318 1,310 1,032 
    Other141 138 398 385 
Crop Protection$2,087 $1,967 $7,253 $6,461 
Three Months Ended
December 31,		Twelve Months Ended
December 31,
GEOGRAPHIC NET SALES - SEED2021202020212020
North America 1
$522 $505 $5,004 $4,795 
EMEA 2
201 206 1,599 1,468 
Latin America578 449 1,420 1,117 
Asia Pacific91 80 379 376 
Rest of World 3
870 735 3,398 2,961 
Net Sales$1,392 $1,240 $8,402 $7,756 
Three Months Ended
December 31,		Twelve Months Ended
December 31,
GEOGRAPHIC NET SALES - CROP PROTECTION2021202020212020
North America 1
$839 $845 $2,532 $2,373 
EMEA 2
220 211 1,524 1,374 
Latin America764 602 2,125 1,688 
Asia Pacific264 309 1,072 1,026 
Rest of World 3
1,248 1,122 4,721 4,088 
Net Sales$2,087 $1,967 $7,253 $6,461 
1. Reflects U.S. & Canada
2. Reflects Europe, Middle East, and Africa
3. Reflects EMEA, Latin America, and Asia Pacific



A-5
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
20212021
Net Sales (GAAP)$3,479 $15,655 
    Less: Impacts from Currency and Portfolio(8)154 
Organic Sales (Non-GAAP)$3,487 $15,501 
Three Months Ended
December 31,		Twelve Months Ended
December 31,
OPERATING EBITDA2021202020212020
Seed$(11)$(47)$1,512 $1,208 
Crop Protection305 327 1,202 1,004 
Corporate Expenses(32)(44)(138)(125)
Operating EBITDA (Non-GAAP)$262 $236 $2,576 $2,087 
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME (LOSS) TAXES TO OPERATING EBITDAThree Months Ended
December 31,		Twelve Months Ended
December 31,
2021202020212020
Income (loss) from continuing operations after income taxes (GAAP)$155 $99 $1,822 $756 
Provision for (benefit from) income taxes on continuing operations90 (169)524 (81)
Income (loss) from continuing operations before income taxes (GAAP)245 (70)2,346 675 
Depreciation and amortization317 309 1,243 1,177 
Interest income(19)(18)(77)(56)
Interest expense8 10 30 45 
Exchange (gains) losses - net1
7 47 54 174 
Non-operating (benefits) costs2
(315)(79)(1,256)(316)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges3
(3)— 
Significant items (benefits) charge4
22 37 236 388 
Operating EBITDA (Non-GAAP)$262 $236 $2,576 $2,087 
1.Refer to page A-15 for pre-tax and after tax impacts of exchange losses (gains) - net.
2.Non-operating (benefits) costs consists of non-operating pension and other post-employment benefit (OPEB) (benefits) costs, tax indemnification adjustments, environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont, and the 2021 officer indemnification payment. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the Company as pre-tax income or expense.
3.Effective January 1, 2021, on a prospective basis, the Company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and twelve months ended December 31, 2020, the unrealized mark-to-market loss was $19 and $0, respectively.
4.Refer to page A-10 for pre-tax and after tax impacts of significant items.


A-6
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Q4 2021 vs. Q4 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$11 1 %$11 1 %9 %(8)%— %— %
EMEA
4 1 %(1)— %3 %(3)%1 %— %
Latin America291 28 %294 28 %11 %17 %— %— %
Asia Pacific(34)(9)%(23)(6)%1 %(7)%— %(3)%
Rest of World261 14 %270 15 %7 %8 %— %(1)%
Total$272 8 %$281 9 %8 %1 %— %(1)%
SEED
Q4 2021 vs. Q4 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$17 3 %$16 3 %5 %(2)%— %— %
EMEA
(5)(2)%(11)(5)%5 %(10)%3 %— %
Latin America129 29 %133 30 %20 %10 %(1)%— %
Asia Pacific11 14 %10 13 %5 %8 %1 %— %
Rest of World135 18 %132 18 %14 %4 %— %— %
Total$152 12 %$148 12 %10 %2 %— %— %
CROP PROTECTION
Q4 2021 vs. Q4 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$(6)(1)%$(5)(1)%11 %(12)%— %— %
EMEA
9 4 %10 5 %1 %4 %(1)%— %
Latin America162 27 %161 27 %5 %22 %— %— %
Asia Pacific(45)(15)%(33)(11)%— %(11)%— %(4)%
Rest of World126 11 %138 12 %3 %9 %— %(1)%
Total$120 6 %$133 7 %6 %1 %— %(1)%
















A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

SEED PRODUCT LINE
Q4 2021 vs. Q4 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$155 16 %$154 16 %11 %5 %— %— %
Soybeans11 17 %9 14 %16 %(2)%3 %— %
Other oilseeds1 1 %— — %10 %(10)%1 %— %
Other(15)(12)%(15)(12)%4 %(16)%— %— %
Total $152 12 %$148 12 %10 %2 %— %— %
CROP PROTECTION PRODUCT LINE
Q4 2021 vs. Q4 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$113 12 %$116 12 %15 %(3)%— %— %
Insecticides(77)(14)%(74)(14)%(2)%(12)%— %— %
Fungicides81 25 %88 28 %5 %23 %— %(3)%
Other3 2 %3 2 %(18)%20 %— %— %
Total$120 6 %$133 7 %6 %1 %— %(1)%


A-8
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Twelve Months 2021 vs. Twelve Months 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$368 5 %$307 4 %2 %2 %1 %— %
EMEA
281 10 %$168 6 %3 %3 %4 %— %
Latin America740 26 %$767 27 %10 %17 %(1)%— %
Asia Pacific49 3 %$43 3 %2 %1 %2 %(2)%
Rest of World1,070 15 %978 14 %6 %8 %2 %(1)%
Total$1,438 10 %$1,285 9 %4 %5 %1 %— %
SEED
Twelve Months 2021 vs. Twelve Months 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$209 4 %$164 3 %1 %2 %1 %— %
EMEA
131 9 %86 6 %5 %1 %3 %— %
Latin America303 27 %336 30 %16 %14 %(3)%— %
Asia Pacific3 1 %(1)— %2 %(2)%1 %— %
Rest of World437 15 %421 14 %9 %5 %1 %— %
Total$646 8 %$585 8 %4 %4 %— %— %
CROP PROTECTION
Twelve Months 2021 vs. Twelve Months 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$159 7 %$143 6 %6 %— %1 %— %
EMEA
150 11 %82 6 %2 %4 %5 %— %
Latin America437 26 %431 26 %7 %19 %— %— %
Asia Pacific46 4 %44 4 %1 %3 %3 %(3)%
Rest of World633 15 %557 14 %4 %10 %2 %(1)%
Total$792 12 %$700 11 %5 %6 %2 %(1)%


A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Twelve Months 2021 vs. Twelve Months 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$436 8 %$413 8 %5 %3 %— %— %
Soybeans123 9 %104 7 %— %7 %2 %— %
Other oilseeds133 21 %117 19 %5 %14 %2 %— %
Other(46)(9)%(49)(10)%(2)%(8)%1 %— %
Total $646 8 %$585 8 %4 %4 %— %— %
CROP PROTECTION PRODUCT LINE
Twelve Months 2021 vs. Twelve Months 2020Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$535 16 %$465 14 %7 %7 %2 %— %
Insecticides(34)(2)%(50)(3)%2 %(5)%1 %— %
Fungicides278 27 %272 26 %4 %22 %3 %(2)%
Other13 3 %13 3 %(8)%11 %— %— %
Total$792 12 %$700 11 %5 %6 %2 %(1)%

1.Organic sales is defined as price and volume and excludes currency and portfolio impacts.


A-10
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2021202020212020
Seed$— $(11)$(98)$(165)
Crop Protection(9)(11)(60)(162)
Corporate(13)(15)(78)(61)
Total significant items before income taxes$(22)$(37)$(236)$(388)
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS
Pre-tax
After tax8
($ Per Share)
202120202021202020212020
1st Quarter
Restructuring and asset related charges, net 1
(100)(70)(77)(57)(0.10)(0.08)
Loss on divestiture 2
— (53)— (43)— (0.06)
Income tax items 3
— — — (19)— (0.02)
1st Quarter – Total
$(100)$(123)$(77)$(119)$(0.10)$(0.16)
2nd Quarter
Restructuring and asset related charges, net 1
(135)(179)(107)(143)(0.14)(0.19)
Income tax items 3
— — — 29 — 0.04 
2nd Quarter – Total
$(135)$(179)$(107)$(114)$(0.14)$(0.15)
3rd Quarter
Restructuring and asset related charges, net 1
(26)(49)(18)(27)(0.03)(0.04)
Equity securities mark-to-market gain 4
47 — 35 — 0.05 — 
3rd Quarter – Total
$21 $(49)$17 $(27)$0.02 $(0.04)
4th Quarter
Restructuring and asset related charges, net 1
(28)(37)(23)(32)(0.03)(0.04)
Employee retention credit 5
60 — 45 — 0.06 — 
Contract termination 6
(54)— (40)— (0.05)0.24 
Income tax items 3
— — 9 182 0.01 — 
4th Quarter – Total
$(22)$(37)$(9)$150 $(0.01)$0.20 
Annual Total 7
$(236)$(388)$(176)$(110)$(0.24)$(0.15)

1.Fourth quarter, third quarter, second quarter, and first quarter 2021 included restructuring and asset related (charges), net of $(28), $(26), $(135) and $(100), respectively. The charges for the fourth quarter primarily relate to a $(40) charge associated with the 2021 Restructuring Actions, and a $13 benefit associated with other restructuring programs. The charges for the third quarter primarily relate to a $(17) charge associated with the 2021 Restructuring Actions and a $(5) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charges for the second quarter primarily relate to a $(21) charge associated with the 2021 Restructuring Actions and a $(112) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charges for the first quarter primarily relate to a $(89) charge associated with the 2021 Restructuring Actions and a $(7) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.

Fourth quarter, third quarter, second quarter and first quarter 2020 included restructuring and asset related charges of $(37), $(49), $(179) and $(70), respectively. The charge for the fourth quarter included a $(42) charge related to the Execute to Win Productivity Program, a $(1) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and

A-11
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
Roundup Ready 2 Xtend® herbicide tolerance traits, and a $6 benefit associated with the DowDuPont Synergy Program. The charge for the third quarter included a $(30) charge related to the Execute to Win Productivity Program, a $(10) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $(9) charge associated with the DowDuPont Synergy Program. The charge for the second quarter included a $(41) charge related to the Execute to Win Productivity Program and a $(138) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charge for the first quarter included a $(63) charge related to the Execute to Win Productivity Program, a $(10) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $3 asset related benefit associated with the DowDuPont Synergy Program.

2.First quarter 2020 included a loss of $(53) included in other income - net related to the sale of the La Porte site, for which the Company signed an agreement during the first quarter 2020, and closed during the first quarter of 2021.

3.Fourth quarter 2021 included a net benefit for the impact of changes in valuation allowances recorded against the net deferred tax asset positions of two legal entities in Brazil in the amounts of $57 and $(44), as well as an adjustment related to the impacts of Swiss Tax Reform of $(4). Second quarter 2020 reflected a benefit of $29 due to an elective change in accounting method that altered the 2019 impact of the business separation on the 2017 Tax Cuts and Jobs Act's foreign tax provisions. First quarter 2020 included an after tax charge related to the impact of a state tax valuation allowance in the U.S. based on a change in judgment about the realizability of a deferred tax asset.

4.Third quarter 2021 included a benefit relating to a $47 mark-to-market gain on equity securities.

5.Fourth quarter 2021 included a benefit of $60 relating to the Employee Retention Credit that the Company earned pursuant to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act as enhanced by the Consolidated Appropriations Act (“CAA”) and American Rescue Plan Act (“ARPA”).

6.Fourth quarter 2021 included a charge of $(54) relating to a contract termination with a third-party service provider.
7.Earnings per share for the year may not equal the sum of quarterly earnings per share due to the changes in average share calculations.
8.Unless specifically addressed in notes above, the income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.



A-12
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
Operating Earnings (Loss) Per Share (Non-GAAP)
Operating earnings (loss) per share is defined as earnings (loss) per share from continuing operations – diluted, excluding non-operating (benefits) costs, amortization of intangibles (existing as of Separation) and significant items.
Three Months Ended
December 31,
2021202020212020
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$153 $97 $0.21 $0.13 
Less: Non-operating benefits (costs), after tax 1
239 57 0.33 0.08 
Less: Amortization of intangibles (existing as of Separation), after tax(139)(141)(0.19)(0.19)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax 2
2 — 
Less: Significant items benefit (charge), after tax(9)150 (0.01)0.20 
Operating Earnings (Loss) (Non-GAAP)$60 $31 $0.08 $0.04 
Twelve Months Ended
December 31,
2021202020212020
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$1,812 $736 $2.44 $0.98 
Less: Non-operating benefits (costs), after tax 1
955 237 1.29 0.32 
Less: Amortization of intangibles (existing as of Separation), after tax(562)(518)(0.76)(0.69)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax 2
— — 
Less: Significant items benefit (charge), after tax(176)(110)(0.24)(0.15)
Operating Earnings (Loss) (Non-GAAP)$1,595 $1,127 $2.15 $1.50 
1.Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) benefits (costs), tax indemnification adjustments, environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont, and the 2021 officer indemnification payment. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the Company as pre-tax income or expense.
2.Effective January 1, 2021, on a prospective basis, the Company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and twelve months ended December 31, 2020, the unrealized mark-to-market loss was $19 and $0, respectively.

A-13
Corteva, Inc.
Operating EBITDA to Operating Earnings (Loss) Per Share
(Dollars in millions, except per share amounts)

Operating EBITDA to Operating Earnings (Loss) Per Share
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2021202020212020
Operating EBITDA (Non-GAAP)1
$262 $236 2,576 2,087 
Depreciation(138)(128)(521)(495)
Interest Income19 18 77 56 
Interest Expense(8)(10)(30)45 
Provision for income taxes on continuing operations before significant items, non-operating (benefits) charges, amortization of intangibles (existing as of Separation), mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges, and exchange gains (losses) (Non-GAAP)1
(43)(46)(409)(295)
Base income tax rate from continuing operations (Non-GAAP)1
31.9 %39.7 %19.5 %18.4 %
Exchange gains (losses), after tax2
(30)(37)(88)(161)
Net income (loss) attributable to non-controlling interests(2)(2)(10)(20)
Operating Earnings (Loss) (Non-GAAP)1
$60 $31 $1,595 $1,217 
Diluted Shares (in millions)735.1 749.7 741.6 751.2 
Operating Earnings (Loss) Per Share (Non-GAAP)1
$0.08 $0.04 $2.15 $1.50 
1.     Refer to pages A-5 through A-9, and A-12 and A-14 for Non-GAAP reconciliations.
2.     Refer to page A-15 for pre-tax and after tax impacts of exchange gains (losses) - net.




A-14
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions)

Reconciliation of Base Income Tax Rate to Effective Income Tax Rate
Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), significant items, amortization of intangibles (existing as of Separation), and non-operating benefits (costs).
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2021202020212020
Income (loss) from continuing operations before income taxes (GAAP)
$245 $(70)$2,346 $675 
Add: Significant items (benefit) charge 1
22 37 236 388 
           Non-operating (benefits) costs(315)(79)(1,256)(316)
           Amortization of intangibles (existing as of Separation)179 181 722 682 
           Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges 2
(3)— 
Less: Exchange gains (losses) 3
(7)(47)(54)(174)
Income (loss) from continuing operations before income taxes, significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges, and exchange losses, net (Non-GAAP)
$135 $116 $2,102 $1,603 
Provision for (benefit from) provision for income taxes on continuing operations (GAAP)
$90 $(169)$524 $(81)
Add: Tax benefits on significant items charge1
13 187 60 278 
          Tax expenses on non-operating benefits - net(76)(22)(301)(79)
          Tax benefits on amortization of intangibles (existing as of Separation)40 40 160 164 
          Tax benefits on mark-to-market gains on certain foreign currency contracts not designated as hedges2
(1)— 
          Tax benefits on exchange losses, net2
(23)10 (34)13 
Provision for (benefit from) income taxes on continuing operations before significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges, and exchange losses, net (Non-GAAP)
$43 $46 $409 $295 
Effective income tax rate (GAAP)
36.7 %241.4 %22.3 %(12.0)%
Significant items, non-operating benefits, and amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges effect14.4 %(189.2)%(0.7)%31.7 %
Tax rate from continuing operations before significant items, non-operating benefits - net, and amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges (Non-GAAP)
51.1 %52.2 %21.6 %19.7 %
Exchange losses, net effect3
(19.3)%(12.5)%(2.2)%(1.3)%
Base income tax rate from continuing operations (Non-GAAP)
31.9 %39.7 %19.5 %18.4 %
1. See page A-10 for further detail on the Significant Items table.
2. Effective January 1, 2021, on a prospective basis, the Company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and twelve months ended December 31, 2020, the unrealized mark-to-market loss was $19 and $0, respectively.
3. See page A-15 for further details of exchange gains (losses).



A-15
Corteva, Inc.
(Dollars in millions, except per share amounts)

Exchange Gains/Losses
The Company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The hedging program gains (losses) are largely taxable (tax deductible) in the United States (U.S.), whereas the offsetting exchange gains (losses) on the remeasurement of the net monetary asset positions are often not taxable (tax deductible) in their local jurisdictions. The net pre-tax exchange gains (losses) are recorded in other income - net and the related tax impact is recorded in provision for (benefit from) income taxes on continuing operations in the Consolidated Statements of Operations.
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2021202020212020
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains (losses)$(25)$37 $(72)$(263)
Local tax (expenses) benefits(19)(10)(30)34 
Net after tax impact from subsidiary exchange gains (losses)$(44)$27 $(102)$(229)
Hedging Program (Loss) Gain
Pre-tax exchange (losses) gains$18 $(84)$18 $89 
Tax benefits (expenses) (4)20 (4)(21)
Net after tax impact from hedging program exchange (losses) gains$14 $(64)$14 $68 
Total Exchange Gain (Loss)
Pre-tax exchange gains (losses)$(7)$(47)$(54)$(174)
Tax benefits (expenses)(23)10 (34)13 
Net after tax exchange gains (losses)$(30)$(37)$(88)$(161)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary Position Gain (Loss)" and the "Hedging Program (Loss) Gain."