EX-99.2 3 cortevaq22022enr.htm EX-99.2 Document

A-1
Corteva, Inc.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)


Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Net sales$6,252 $5,627 $10,853 $9,805 
Cost of goods sold3,323 3,010 6,047 5,430 
Research and development expense296 293 564 574 
Selling, general and administrative expenses1,017 998 1,752 1,731 
Amortization of intangibles179 180 358 363 
Restructuring and asset related charges - net143 135 148 235 
Other income - net49 298 66 635 
Interest expense16 7 25 14 
Income (loss) from continuing operations before income taxes1,327 1,302 2,025 2,093 
Provision for (benefit from) income taxes on continuing operations325 284 446 462 
Income (loss) from continuing operations after income taxes1,002 1,018 1,579 1,631 
Income (loss) from discontinued operations after income taxes(30)(45)(40)(55)
Net income (loss)972 973 1,539 1,576 
Net income (loss) attributable to noncontrolling interests3 3 6 6 
Net income (loss) attributable to Corteva$969 $970 $1,533 $1,570 
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock from continuing operations$1.38 $1.37 $2.17 $2.19 
Basic earnings (loss) per share of common stock from discontinued operations(0.04)(0.06)(0.06)(0.07)
Basic earnings (loss) per share of common stock$1.34 $1.31 $2.11 $2.12 
Diluted earnings (loss) per share of common stock:
Diluted earnings (loss) per share of common stock from continuing operations$1.37 $1.37 $2.16 $2.18 
Diluted earnings (loss) per share of common stock from discontinued operations(0.04)(0.06)(0.05)(0.07)
Diluted earnings (loss) per share of common stock$1.33 $1.31 $2.11 $2.11 
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions)
  Basic723.0737.3724.9740.3
  Diluted726.7743.3728.6746.4





A-2
Corteva, Inc.
Consolidated Balance Sheets
(Dollars in millions, except share amounts)
June 30, 2022December 31, 2021June 30, 2021
Assets
Current assets
Cash and cash equivalents$2,401 $4,459 $2,861 
Marketable securities254 86 39 
Accounts and notes receivable – net
6,947 4,811 6,792 
Inventories4,184 5,180 3,541 
Other current assets978 1,010 1,052 
Total current assets14,764 15,546 14,285 
Investment in nonconsolidated affiliates93 76 68 
Property, plant and equipment8,532 8,364 8,343 
Less: Accumulated depreciation4,232 4,035 4,002 
Net property, plant and equipment4,300 4,329 4,341 
Goodwill9,987 10,107 10,207 
Other intangible assets9,673 10,044 10,413 
Deferred income taxes449 438 442 
Other assets1,640 1,804 1,740 
Total Assets$40,906 $42,344 $41,496 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$712 $17 $677 
Accounts payable3,567 4,126 3,070 
Income taxes payable383 146 234 
Deferred revenue740 3,201 748 
Accrued and other current liabilities2,454 2,068 2,523 
Total current liabilities7,856 9,558 7,252 
Long-term debt1,283 1,100 1,101 
Other noncurrent liabilities
Deferred income tax liabilities1,165 1,220 935 
Pension and other post employment benefits - noncurrent2,838 3,124 4,767 
Other noncurrent obligations1,693 1,719 1,816 
Total noncurrent liabilities6,979 7,163 8,619 
Commitments and contingent liabilities
Stockholders' equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized;
issued at June 30, 2022 - 719,320,000; December 31, 2021 - 726,527,000; and June 30, 2021 - 734,421,000		7 7 7 
Additional paid-in capital27,795 27,751 27,682 
Retained earnings 1,252 524 941 
Accumulated other comprehensive income (loss)(3,223)(2,898)(3,245)
Total Corteva stockholders' equity25,831 25,384 25,385 
Noncontrolling interests240 239 240 
Total equity26,071 25,623 25,625 
Total Liabilities and Equity$40,906 $42,344 $41,496 

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

Six Months Ended June 30,
20222021
Operating activities
Net income (loss)$1,539 $1,576 
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
Depreciation and amortization609 617 
Provision for (benefit from) deferred income tax(79)124 
Net periodic pension and OPEB benefit, net
(138)(641)
Pension and OPEB contributions(113)(149)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments(1)(1)
Restructuring and asset related charges - net148 235 
Other net loss99 143 
Changes in assets and liabilities, net
Accounts and notes receivable(2,331)(1,957)
Inventories905 1,334 
Accounts payable(488)(525)
Deferred revenue(2,450)(1,931)
Other assets and liabilities679 532 
Cash provided by (used for) operating activities(1,621)(643)
Investing activities
Capital expenditures(318)(269)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested12 26 
Investments in and loans to nonconsolidated affiliates(6)(1)
Purchases of investments(236)(56)
Proceeds from sales and maturities of investments93 285 
Other investing activities, net20 (2)
Cash provided by (used for) investing activities(435)(17)
Financing activities
Net change in borrowings (less than 90 days) 325 254 
Proceeds from debt772 419 
Payments on debt(204)— 
Repurchase of common stock(600)(550)
Proceeds from exercise of stock options62 66 
Dividends paid to stockholders(203)(192)
Other financing activities, net(46)(24)
Cash provided by (used for) financing activities106 (27)
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents(116)(14)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents(2,066)(701)
Cash, cash equivalents and restricted cash equivalents at beginning of period4,836 3,873 
Cash, cash equivalents and restricted cash equivalents at end of period$2,770 $3,172 

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

Three Months Ended June 30,Six Months Ended June 30,
SEGMENT NET SALES - SEED2022202120222021
    Corn$2,222 $2,180 $4,152 $4,068 
    Soybean1,308 1,160 1,480 1,337 
    Other oilseeds246 271 523 567 
    Other171 169 316 300 
Seed$3,947 $3,780 $6,471 $6,272 
Three Months Ended June 30,Six Months Ended June 30,
SEGMENT NET SALES - CROP PROTECTION2022202120222021
    Herbicides$1,224 $969 $2,429 $1,955 
    Insecticides494 460 912 845 
    Fungicides448 311 752 572 
    Other139 107 289 161 
Crop Protection$2,305 $1,847 $4,382 $3,533 
Three Months Ended June 30,Six Months Ended June 30,
GEOGRAPHIC NET SALES - SEED2022202120222021
North America 1
$3,235 $3,104 $4,419 $4,314 
EMEA 2
359 298 1,285 1,245 
Latin America
206 234 529 508 
Asia Pacific
147 144 238 205 
Rest of World 3
712 676 2,052 1,958 
Net Sales$3,947 $3,780 $6,471 $6,272 
Three Months Ended June 30,Six Months Ended June 30,
GEOGRAPHIC NET SALES - CROP PROTECTION2022202120222021
North America 1
$843 $738 $1,664 $1,271 
EMEA 2
499 412 1,155 1,067 
Latin America
627 354 954 598 
Asia Pacific
336 343 609 597 
Rest of World 3
1,462 1,109 2,718 2,262 
Net Sales$2,305 $1,847 $4,382 $3,533 
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 June 30,Six Months Ended June 30,
20222022
Net Sales (GAAP)$6,252 $10,853 
Less: Impacts from Currency and Portfolio(102)(339)
Organic Sales (Non-GAAP)$6,354 $11,192 
Three Months Ended June 30,Six Months Ended June 30,
OPERATING EBITDA2022202120222021
Seed$1,240 $1,123 $1,809 $1,740 
Crop Protection509 370 1,000 691 
Corporate Expenses(30)(32)(51)(66)
Operating EBITDA (Non-GAAP)$1,719 $1,461 $2,758 $2,365 
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDAThree Months Ended June 30,Six Months Ended June 30,
2022202120222021
Income (loss) from continuing operations after income taxes (GAAP)$1,002 $1,018 $1,579 $1,631 
Provision for (benefit from) income taxes on continuing operations325 284 446 462 
Income (loss) from continuing operations before income taxes (GAAP)1,327 1,302 2,025 2,093 
Depreciation and amortization302 313 609 617 
Interest income(24)(18)(39)(39)
Interest expense16 7 25 14 
Exchange (gains) losses1
36 14 83 49 
Non-operating (benefits) costs2
(60)(315)(125)(626)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges(33)23 3 22 
Significant items (benefit) charge3
155 135 177 235 
Operating EBITDA (Non-GAAP)$1,719 $1,461 $2,758 $2,365 

1.Refer to page A-14 for pre-tax and after tax impacts of exchange (gains) losses.
2.Non-operating (benefits) costs consists of non-operating pension and other post-employment benefit (OPEB) (benefits) costs, tax indemnification adjustments, and environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont. 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.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
Q2 2022 vs. Q2 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$236 6 %$243 6 %8 %(2)%— %— %
EMEA
148 21 %243 34 %9 %25 %(13)%— %
Latin America
245 42 %207 35 %13 %22 %7 %— %
Asia Pacific
(4)(1)%34 7 %7 %— %(5)%(3)%
Rest of World389 22 %484 27 %10 %17 %(4)%(1)%
Total$625 11 %$727 13 %9 %4 %(2)%— %
SEED
Q2 2022 vs. Q2 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$131 4 %$135 4 %6 %(2)%— %— %
EMEA
61 20 %101 34 %15 %19 %(14)%— %
Latin America
(28)(12)%(31)(13)%— %(13)%1 %— %
Asia Pacific
3 2 %14 9 %12 %(3)%(7)%— %
Rest of World36 5 %84 12 %9 %3 %(7)%— %
Total$167 4 %$219 6 %7 %(1)%(2)%— %
CROP PROTECTION
Q2 2022 vs. Q2 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$105 14 %$108 15 %20 %(5)%(1)%— %
EMEA
$87 21 %142 34 %5 %29 %(13)%— %
Latin America
$273 77 %238 67 %21 %46 %10 %— %
Asia Pacific
$(7)(2)%20 6 %4 %2 %(4)%(4)%
Rest of World$353 32 %400 36 %10 %26 %(3)%(1)%
Total$458 25 %$508 28 %14 %14 %(2)%(1)%

A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Q2 2022 vs. Q2 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$42 2 %$72 3 %6 %(3)%(1)%— %
Soybeans148 13 %151 13 %8 %5 %— %— %
Other oilseeds(25)(9)%(12)(4)%5 %(9)%(5)%— %
Other2 1 %8 5 %3 %2 %(4)%— %
Total $167 4 %$219 6 %7 %(1)%(2)%— %
CROP PROTECTION PRODUCT LINE
Q2 2022 vs. Q2 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$255 26 %$268 28 %21 %7 %(2)%— %
Insecticides34 7 %49 11 %6 %5 %(4)%— %
Fungicides137 44 %156 50 %6 %44 %(2)%(4)%
Other32 30 %35 32 %2 %30 %(2)%— %
Total$458 25 %$508 28 %14 %14 %(2)%(1)%

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

A-8
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

PRICE - VOLUME - CURRENCY ANALYSIS
REGION
First Half 2022 vs. First Half 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$498 9 %$506 9 %8 %1 %— %— %
EMEA
128 6 %433 19 %9 %10 %(13)%— %
Latin America
377 34 %344 31 %13 %18 %3 %— %
Asia Pacific
45 6 %104 13 %6 %7 %(4)%(3)%
Rest of World550 13 %881 21 %10 %11 %(7)%(1)%
Total$1,048 11 %$1,387 14 %9 %5 %(3)%— %
SEED
First Half 2022 vs. First Half 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$105 2 %$109 3 %6 %(3)%(1)%— %
EMEA
40 3 %209 17 %12 %5 %(14)%— %
Latin America
21 4 %25 5 %5 %— %(1)%— %
Asia Pacific
33 16 %50 24 %11 %13 %(8)%— %
Rest of World94 5 %284 14 %10 %4 %(9)%— %
Total$199 3 %$393 6 %7 %(1)%(3)%— %
CROP PROTECTION
First Half 2022 vs. First Half 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$393 31 %$397 31 %18 %13 %— %— %
EMEA
$88 8 %224 21 %6 %15 %(13)%— %
Latin America
$356 60 %319 53 %19 %34 %7 %— %
Asia Pacific
$12 2 %54 9 %4 %5 %(3)%(4)%
Rest of World$456 20 %597 26 %9 %17 %(5)%(1)%
Total$849 24 %$994 28 %12 %16 %(3)%(1)%


A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
First Half 2022 vs. First Half 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$84 2 %$213 5 %7 %(2)%(3)%— %
Soybeans143 11 %148 11 %7 %4 %— %— %
Other oilseeds(44)(8)%6 1 %7 %(6)%(9)%— %
Other16 5 %26 9 %4 %5 %(4)%— %
Total $199 3 %$393 6 %7 %(1)%(3)%— %
CROP PROTECTION PRODUCT LINE
First Half 2022 vs. First Half 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$474 24 %$524 27 %17 %10 %(3)%— %
Insecticides67 8 %112 13 %7 %6 %(5)%— %
Fungicides180 31 %226 39 %6 %33 %(4)%(4)%
Other128 80 %132 82 %12 %70 %(2)%— %
Total$849 24 %$994 28 %12 %16 %(3)%(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 June 30,Six Months Ended June 30,
2022202120222021
Seed$(138)$(115)$(143)$(136)
Crop Protection(2)(11)(17)(43)
Corporate(15)(9)(17)(56)
Total significant items before income taxes$(155)$(135)$(177)$(235)
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS
Pre-tax
After tax5
($ Per Share)
202220212022202120222021
1st Quarter
Restructuring and asset related charges, net 1
$(5)$(100)$(3)$(77)$— $(0.10)
Estimated settlement expense 2
(17)— (13)— (0.02)— 
1st Quarter — Total
$(22)$(100)$(16)$(77)$(0.02)$(0.10)
2nd Quarter
Restructuring and asset related charges, net 1
$(143)$(135)$(116)$(107)$(0.16)$(0.14)
Inventory write-offs 3
(1)— (1)— — — 
Loss on exit of non-strategic asset 3
(5)— (4)— (0.01)— 
Settlement costs associated with Russia Exit 3
(6)— (6)— (0.01)— 
2nd Quarter — Total
$(155)$(135)$(127)$(107)$(0.18)$(0.14)
Year-to-date Total 4
$(177)$(235)$(143)$(184)$(0.20)$(0.24)


1.Second and first quarter 2022 includes restructuring and asset related benefits (charges) of $(143) and $(5), respectively. The charges for the second quarter primarily relate to a $(56) charge associated with the 2022 Restructuring Actions and a $(93) 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 related to a $(6) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.

First and second quarter 2021 included restructuring and asset related charges of $(100) and $(135), respectively. The charges for the second quarter primarily related 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 related 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.

2.First quarter 2022 included a $(17) charge for estimated Lorsban® related reserves.

3.Second quarter 2022 includes a $(1), $(5) and $(6) charge associated with activities related to the 2022 Restructuring Actions relating to inventory write-offs associated with the Russia Exit, loss on the exit of a non-strategic asset and settlement costs associated with the Russia Exit, respectively.

4.Earnings per share for the year may not equal the sum of quarterly earnings per share due to the changes in average share calculations.

5.Unless specifically addressed in the notes above, the income tax effect on significant items was calculated based upon the enacted laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

A-11
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), net unrealized gain or loss from mark-to-market activity on certain foreign currency derivative instruments that do not qualify for hedge accounting, and significant items.
Three Months Ended June 30,
2022202120222021
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$999 $1,015 $1.37 $1.37 
Less: Non-operating benefits (costs), after tax 1
43 237 0.06 0.32 
Less: Amortization of intangibles (existing as of Separation), after tax(138)(140)(0.19)(0.19)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax26 (18)0.04 (0.02)
Less: Significant items benefit (charge), after tax(127)(107)(0.18)(0.14)
Operating Earnings (Loss) (Non-GAAP)$1,195 $1,043 $1.64 $1.40 
Six Months Ended June 30,
2022202120222021
$$EPS (diluted)EPS (diluted)
Net income from continuing operations attributable to Corteva (GAAP)$1,573 $1,625 $2.16 $2.18 
Less: Non-operating benefits - net, after tax 1
92 474 0.13 0.64 
Less: Amortization of intangibles (existing as of Separation), after tax(277)(283)(0.38)(0.38)
Less: Mark-to-market losses on certain foreign currency contracts not designated as hedges, after tax(2)(17)— (0.02)
Less: Significant items benefit (charge), after tax(143)(184)(0.20)(0.25)
Operating Earnings (Non-GAAP)$1,903 $1,635 $2.61 $2.19 

1.Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) benefits (costs), tax indemnification adjustments, and environmental remediation and legal costs associated with legacy businesses and sites of Historical DuPont. 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.



A-12
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
June 30,		Six Months Ended
June 30,
2022202120222021
Operating EBITDA (Non-GAAP)1
$1,719 $1,461 $2,758 $2,365 
Depreciation(123)(133)(251)(254)
Amortization of intangibles (post Separation)(2)— (2)— 
Interest Income24 18 39 39 
Interest Expense(16)(7)(25)(14)
(Provision for) benefit from income taxes on continuing operations before significant items, non-operating benefits (costs), 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
(348)(278)(516)(440)
Base income tax rate from continuing operations (Non-GAAP)1
21.7 %20.8 %20.5 %20.6 %
Exchange gains (losses), after tax2
(56)(15)(94)(55)
Net (income) loss attributable to non-controlling interests(3)(3)(6)(6)
Operating Earnings (Loss) (Non-GAAP)1
$1,195 $1,043 $1,903 $1,635 
Diluted Shares (in millions)726.7 743.3 728.6 746.4 
Operating Earnings (Loss) Per Share (Non-GAAP)1
$1.64 $1.40 $2.61 $2.19 

1.     Refer to pages A-5 through A-9 and A-11 for Non-GAAP reconciliations.
2.     Refer to page A-14 for pre-tax and after tax impacts of exchange gains (losses).




A-13
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

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), mark-to-market gains on certain foreign currency contracts not designated as hedges, and non-operating (benefits) costs.
Three Months Ended June 30,Six Months Ended
June 30,
2022202120222021
Income (loss) from continuing operations before income taxes (GAAP)
$1,327 $1,302 $2,025 $2,093 
Add: Significant items (benefit) charge 1
155 135 177 235 
           Non-operating (benefits) costs(60)(315)(125)(626)
           Amortization of intangibles (existing as of Separation)177 180 356 363 
  Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges(33)23 3 22 
Less: Exchange gains (losses)2
(36)(14)(83)(49)
Income (loss) from continuing operations before income taxes, significant items, non-operating (benefits) costs, 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)
$1,602 $1,339 $2,519 $2,136 
Provision for (benefit from) income taxes on continuing operations (GAAP)
$325 $284 $446 $462 
Add: Tax benefits on significant items (benefit) charge1
28 28 34 51 
          Tax expenses on non-operating (benefits) costs(17)(78)(33)(152)
          Tax benefits on amortization of intangibles (existing as of Separation)39 40 79 80 
  Tax benefits on mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges(7)5 1 5 
          Tax benefits on exchange gains (losses)2
(20)(1)(11)(6)
Provision for (benefit from) income taxes on continuing operations before significant items, non-operating (benefits) costs, 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)
$348 $278 $516 $440 
Effective income tax rate (GAAP)
24.5 %21.8 %22.0 %22.1 %
Significant items, non-operating (benefits) costs, amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges effect(1.1)%(0.8)%(0.4)%(0.7)%
Tax rate from continuing operations before significant items, non-operating (benefits) costs, amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges23.4 %21.0 %21.6 %21.4 %
Exchange gains (losses), net effect2
(1.7)%(0.2)%(1.1)%(0.8)%
Base income tax rate from continuing operations (Non-GAAP)
21.7 %20.8 %20.5 %20.6 %
1. See page A-10 for further detail on the Significant Items.
2. See page A-14 for further details of exchange gains (losses).



A-14
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
June 30,		Six Months Ended
June 30,
2022202120222021
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains (losses)$(46)$36 $(40)$(15)
Local tax (expenses) benefits(17)(13)(21)(14)
Net after tax impact from subsidiary exchange gains (losses)$(63)$23 $(61)$(29)
Hedging Program Gain (Loss)
Pre-tax exchange gains (losses)$10 $(50)$(43)$(34)
Tax (expenses) benefits(3)12 10 8 
Net after tax impact from hedging program exchange gains (losses) $7 $(38)$(33)$(26)
Total Exchange Gain (Loss)
Pre-tax exchange gains (losses) $(36)$(14)$(83)$(49)
Tax (expenses) benefits(20)(1)(11)(6)
Net after tax exchange gains (losses)$(56)$(15)$(94)$(55)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary Position Gain (Loss)" and the "Hedging Program Gain (Loss)."