EX-99.2 3 cortevaq32022enr.htm EX-99.2 Document

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


Three Months Ended
September 30,		Nine Months Ended
September 30,
2022202120222021
Net sales$2,777 $2,371 $13,630 $12,176 
Cost of goods sold1,879 1,558 7,926 6,988 
Research and development expense312 297 876 871 
Selling, general and administrative expenses657 672 2,409 2,403 
Amortization of intangibles178 180 536 543 
Restructuring and asset related charges - net152 26 300 261 
Other income - net23 378 89 1,013 
Interest expense18 8 43 22 
Income (loss) from continuing operations before income taxes(396)8 1,629 2,101 
Provision for (benefit from) income taxes on continuing operations(74)(28)372 434 
Income (loss) from continuing operations after income taxes(322)36 1,257 1,667 
Income (loss) from discontinued operations after income taxes(6)(4)(46)(59)
Net income (loss)(328)32 1,211 1,608 
Net income (loss) attributable to noncontrolling interests3 2 9 8 
Net income (loss) attributable to Corteva$(331)$30 $1,202 $1,600 
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock from continuing operations$(0.45)$0.05 $1.73 $2.25 
Basic earnings (loss) per share of common stock from discontinued operations(0.01)(0.01)(0.06)(0.08)
Basic earnings (loss) per share of common stock$(0.46)$0.04 $1.67 $2.17 
Diluted earnings (loss) per share of common stock:
Diluted earnings (loss) per share of common stock from continuing operations$(0.45)$0.05 $1.72 $2.23 
Diluted earnings (loss) per share of common stock from discontinued operations(0.01)(0.01)(0.06)(0.08)
Diluted earnings (loss) per share of common stock$(0.46)$0.04 $1.66 $2.15 
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions)
Basic718.7733.8722.8738.1
Diluted718.7739.5726.4744.0





A-2
Corteva, Inc.
Consolidated Balance Sheets
(Dollars in millions, except share amounts)
September 30, 2022December 31, 2021September 30, 2021
Assets
Current assets
Cash and cash equivalents$2,199 $4,459 $2,779 
Marketable securities119 86 103 
Accounts and notes receivable – net
6,273 4,811 5,818 
Inventories5,415 5,180 4,417 
Other current assets1,039 1,010 1,029 
Total current assets15,045 15,546 14,146 
Investment in nonconsolidated affiliates91 76 67 
Property, plant and equipment8,444 8,364 8,270 
Less: Accumulated depreciation4,259 4,035 3,960 
Net property, plant and equipment4,185 4,329 4,310 
Goodwill9,791 10,107 10,130 
Other intangible assets9,461 10,044 10,225 
Deferred income taxes407 438 448 
Other assets1,671 1,804 1,796 
Total Assets$40,651 $42,344 $41,122 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$1,576 $17 $1,372 
Accounts payable4,140 4,126 3,512 
Income taxes payable227 146 95 
Deferred revenue860 3,201 692 
Accrued and other current liabilities2,115 2,068 2,134 
Total current liabilities8,918 9,558 7,805 
Long-term debt1,277 1,100 1,101 
Other noncurrent liabilities
Deferred income tax liabilities1,123 1,220 930 
Pension and other post employment benefits - noncurrent2,628 3,124 4,583 
Other noncurrent obligations1,621 1,719 1,724 
Total noncurrent liabilities6,649 7,163 8,338 
Commitments and contingent liabilities
Stockholders' equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at September 30, 2022 - 716,225,000; December 31, 2021 - 726,527,000; and September 30, 2021 - 730,267,0007 7 7 
Additional paid-in capital27,815 27,751 27,712 
Retained earnings 614 524 666 
Accumulated other comprehensive income (loss)(3,592)(2,898)(3,645)
Total Corteva stockholders' equity24,844 25,384 24,740 
Noncontrolling interests240 239 239 
Total equity25,084 25,623 24,979 
Total Liabilities and Equity$40,651 $42,344 $41,122 

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

Nine Months Ended September 30,
20222021
Operating activities
Net income (loss)$1,211 $1,608 
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
Depreciation and amortization919 926 
Provision for (benefit from) deferred income tax(149)151 
Net periodic pension and OPEB benefit, net
(155)(959)
Pension and OPEB contributions(147)(202)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments(17)(1)
Restructuring and asset related charges - net300 261 
Other net loss181 117 
Changes in assets and liabilities, net
Accounts and notes receivable(1,814)(1,116)
Inventories(466)375 
Accounts payable202 (41)
Deferred revenue(2,311)(1,945)
Other assets and liabilities100 7 
Cash provided by (used for) operating activities(2,146)(819)
Investing activities
Capital expenditures(460)(413)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested46 53 
Investments in and loans to nonconsolidated affiliates(9)(3)
Purchases of investments(314)(147)
Proceeds from sales and maturities of investments274 310 
Other investing activities, net24 (1)
Cash provided by (used for) investing activities(439)(201)
Financing activities
Net change in borrowings (less than 90 days) 777 949 
Proceeds from debt1,335 419 
Payments on debt(355)(1)
Repurchase of common stock(800)(750)
Proceeds from exercise of stock options66 71 
Dividends paid to stockholders(311)(295)
Other financing activities, net(49)(28)
Cash provided by (used for) financing activities663 365 
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents(295)(78)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents(2,217)(733)
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$2,619 $3,140 

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

Three Months Ended
September 30,		Nine Months Ended September 30,
SEGMENT NET SALES - SEED2022202120222021
    Corn$469 $437 $4,621 $4,505 
    Soybean205 157 1,685 1,494 
    Other oilseeds124 94 647 661 
    Other64 50 380 350 
Seed$862 $738 $7,333 $7,010 
Three Months Ended
September 30,		Nine Months Ended September 30,
SEGMENT NET SALES - CROP PROTECTION2022202120222021
    Herbicides$1,043 $782 $3,472 $2,737 
    Insecticides363 416 1,275 1,261 
    Fungicides421 339 1,173 911 
    Other88 96 377 257 
Crop Protection$1,915 $1,633 $6,297 $5,166 
Three Months Ended
September 30,		Nine Months Ended September 30,
GEOGRAPHIC NET SALES - SEED2022202120222021
North America 1
$218 $168 $4,637 $4,482 
EMEA 2
157 153 1,442 1,398 
Latin America
383 334 912 842 
Asia Pacific
104 83 342 288 
Rest of World 3
644 570 2,696 2,528 
Net Sales$862 $738 $7,333 $7,010 
Three Months Ended
September 30,		Nine Months Ended September 30,
GEOGRAPHIC NET SALES - CROP PROTECTION2022202120222021
North America 1
$521 $422 $2,185 $1,693 
EMEA 2
297 237 1,452 1,304 
Latin America
898 763 1,852 1,361 
Asia Pacific
199 211 808 808 
Rest of World 3
1,394 1,211 4,112 3,473 
Net Sales$1,915 $1,633 $6,297 $5,166 
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
September 30,		Nine Months Ended September 30,
20222022
Net Sales (GAAP)$2,777 $13,630 
Less: Impacts from Currency and Portfolio(104)(443)
Organic Sales (Non-GAAP)$2,881 $14,073 
Three Months Ended
September 30,		Nine Months Ended September 30,
OPERATING EBITDA2022202120222021
Seed$(224)$(217)$1,585 $1,523 
Crop Protection352 206 1,352 897 
Corporate Expenses(32)(40)(83)(106)
Operating EBITDA (Non-GAAP)$96 $(51)$2,854 $2,314 
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDAThree Months Ended
September 30,		Nine Months Ended September 30,
2022202120222021
Income (loss) from continuing operations after income taxes (GAAP)$(322)$36 $1,257 $1,667 
Provision for (benefit from) income taxes on continuing operations(74)(28)372 434 
Income (loss) from continuing operations before income taxes (GAAP)(396)8 1,629 2,101 
Depreciation and amortization310 309 919 926 
Interest income(36)(19)(75)(58)
Interest expense18 8 43 22 
Exchange (gains) losses1
13 (2)96 47 
Non-operating (benefits) costs2
(9)(315)(134)(941)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges(6)(19)(3)3 
Significant items (benefit) charge3
202 (21)379 214 
Operating EBITDA (Non-GAAP)$96 $(51)$2,854 $2,314 

1.Refer to page A-15 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
Q3 2022 vs. Q3 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$149 25 %$157 27 %13 %14 %(1)%(1)%
EMEA
64 16 %129 33 %10 %23 %(17)%— %
Latin America
184 17 %194 18 %16 %2 %(1)%— %
Asia Pacific
9 3 %30 10 %7 %3 %(7)%— %
Rest of World257 14 %353 20 %13 %7 %(6)%— %
Total$406 17 %$510 22 %13 %9 %(4)%(1)%
SEED
Q3 2022 vs. Q3 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$50 30 %$52 31 %3 %28 %(1)%— %
EMEA
4 3 %25 16 %7 %9 %(13)%— %
Latin America
49 15 %51 15 %14 %1 %— %— %
Asia Pacific
21 25 %27 33 %12 %21 %(8)%— %
Rest of World74 13 %103 18 %12 %6 %(5)%— %
Total$124 17 %$155 21 %10 %11 %(4)%— %
CROP PROTECTION
Q3 2022 vs. Q3 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$99 23 %$105 25 %17 %8 %(1)%(1)%
EMEA
60 25 %104 44 %12 %32 %(19)%— %
Latin America
135 18 %143 19 %17 %2 %(1)%— %
Asia Pacific
(12)(6)%3 1 %5 %(4)%(6)%(1)%
Rest of World183 15 %250 21 %14 %7 %(6)%— %
Total$282 17 %$355 22 %15 %7 %(4)%(1)%

A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Q3 2022 vs. Q3 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$32 7 %$47 11 %5 %6 %(4)%— %
Soybeans48 31 %49 31 %28 %3 %— %— %
Other oilseeds30 32 %43 46 %7 %39 %(14)%— %
Other14 28 %16 32 %(2)%34 %(4)%— %
Total $124 17 %$155 21 %10 %11 %(4)%— %
CROP PROTECTION PRODUCT LINE
Q3 2022 vs. Q3 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$261 33 %$299 38 %22 %16 %(5)%— %
Insecticides(53)(13)%(32)(8)%6 %(14)%(4)%(1)%
Fungicides82 24 %92 27 %11 %16 %(3)%— %
Other(8)(8)%(4)(4)%3 %(7)%(4)%— %
Total$282 17 %$355 22 %15 %7 %(4)%(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
Nine Months 2022 vs. Nine Months 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$647 10 %$663 11 %9 %2 %(1)%— %
EMEA
192 7 %562 21 %9 %12 %(14)%— %
Latin America
561 25 %538 24 %14 %10 %1 %— %
Asia Pacific
54 5 %134 12 %6 %6 %(5)%(2)%
Rest of World807 13 %1,234 21 %11 %10 %(7)%(1)%
Total$1,454 12 %$1,897 16 %10 %6 %(4)%— %
SEED
Nine Months 2022 vs. Nine Months 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$155 3 %$161 4 %6 %(2)%(1)%— %
EMEA
44 3 %234 17 %12 %5 %(14)%— %
Latin America
70 8 %76 9 %8 %1 %(1)%— %
Asia Pacific
54 19 %77 27 %12 %15 %(8)%— %
Rest of World168 7 %387 15 %10 %5 %(8)%— %
Total$323 5 %$548 8 %7 %1 %(3)%— %
CROP PROTECTION
Nine Months 2022 vs. Nine Months 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$492 29 %$502 30 %18 %12 %(1)%— %
EMEA
148 11 %328 25 %7 %18 %(14)%— %
Latin America
491 36 %462 34 %18 %16 %2 %— %
Asia Pacific
— — %57 7 %5 %2 %(4)%(3)%
Rest of World639 18 %847 24 %10 %14 %(5)%(1)%
Total$1,131 22 %$1,349 26 %13 %13 %(4)%— %


A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Nine Months 2022 vs. Nine Months 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn$116 3 %$260 6 %7 %(1)%(3)%— %
Soybeans191 13 %197 13 %9 %4 %— %— %
Other oilseeds(14)(2)%49 7 %7 %— %(9)%— %
Other30 9 %42 12 %3 %9 %(3)%— %
Total $323 5 %$548 8 %7 %1 %(3)%— %
CROP PROTECTION PRODUCT LINE
Nine Months 2022 vs. Nine Months 2021Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$735 27 %$823 30 %18 %12 %(3)%— %
Insecticides14 1 %80 6 %7 %(1)%(5)%— %
Fungicides262 29 %318 35 %8 %27 %(3)%(3)%
Other120 47 %128 50 %9 %41 %(3)%— %
Total$1,131 22 %$1,349 26 %13 %13 %(4)%— %

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 September 30,Nine Months Ended September 30,
2022202120222021
Seed$(94)$38 $(237)$(98)
Crop Protection(42)(8)(59)(51)
Corporate(66)(9)(83)(65)
Total significant items before income taxes$(202)$21 $(379)$(214)
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS
Pre-tax
After tax8
($ 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)
3rd Quarter
Restructuring and asset related charges, net 1
$(152)$(26)$(126)$(18)$(0.18)$(0.03)
Estimated settlement expense 2
(40)— (30)— (0.04)— 
Inventory write-offs 3
(32)— (24)— (0.03)— 
Settlement cost associated with Russia Exit 3
(2)— (2)— — — 
Gain on sale of business 3
15 — 10 — 0.01 — 
Equity securities mark-to-market gain 4
— 47 — 35 — 0.05 
Employee Retention Credit 5
9 — 7 — 0.01 — 
Income tax items 6
— — 55 — 0.08 — 
3rd Quarter - Total$(202)$21 $(110)$17 $(0.15)$0.02 
Year-to-date Total 7
$(379)$(214)$(253)$(167)$(0.35)$(0.22)

1.Third, second and first quarter 2022 includes restructuring and asset related benefits (charges) of $(152), $(143) and $(5), respectively. The charges primarily relate to a $(145), and $(56) charge for the third and second quarter, respectively, associated with the 2022 Restructuring Actions and a $(5), $(93), and $(6) charge for the third, second and first quarter, respectively, related to non-cash accelerated prepaid royalty amortization expense related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.

Third, second and first quarter 2021 included restructuring and asset related benefits (charges) of $(26), $(135) and $(100), respectively. The charges primarily relate to a $(17), $(21) and $(89) charge, respectively, associated with the 2021 Restructuring Actions and a $(5), $(112) and $(7) charge, respectively, related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.
2.Third and first quarter 2022 included a $(40) and $(17) charge, respectively, for estimated Lorsban® related reserves.

3.Third quarter 2022 includes a benefit (charge) of $(32), $15 and $(2) associated with activities related to 2022 Restructuring Actions consisting of inventory write-offs, gain on the sale of a business, and settlement costs associated with the Russia Exit, respectively. Second quarter 2022 includes a $(1), $(5) and $(6) charge associated with activities related to the 2022 Restructuring Actions consisting

A-11
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
of 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.Third quarter 2021 included a benefit relating to a $47 mark-to-market gain on equity securities.
5.Third quarter 2022 includes a pre-tax benefit of $9 relating to an adjustment due to a change in estimate related 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”), which was initially recognized in the fourth quarter 2021.

6.Third quarter 2022 includes a tax benefit of $55 relating to the establishment of deferred taxes due to the impact of a change in a U.S. legal entity's tax characterization.

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 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-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), 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 September 30,
2022202120222021
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$(325)$34 $(0.45)$0.05 
Less: Non-operating benefits (costs), after tax 1
4 242 — 0.33 
Less: Amortization of intangibles (existing as of Separation), after tax(137)(140)(0.19)(0.18)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax4 15 0.01 0.02 
Less: Significant items benefit (charge), after tax(110)17 (0.15)0.02 
Operating Earnings (Loss) (Non-GAAP)$(86)$(100)$(0.12)$(0.14)
Nine Months Ended September 30,
2022202120222021
$$EPS (diluted)EPS (diluted)
Net income from continuing operations attributable to Corteva (GAAP)$1,248 $1,659 $1.72 $2.23 
Less: Non-operating benefits - net, after tax 1
96 716 0.13 0.96 
Less: Amortization of intangibles (existing as of Separation), after tax(414)(423)(0.57)(0.57)
Less: Mark-to-market losses on certain foreign currency contracts not designated as hedges, after tax2 (2)0.01 — 
Less: Significant items benefit (charge), after tax(253)(167)(0.35)(0.22)
Operating Earnings (Non-GAAP)$1,817 $1,535 $2.50 $2.06 

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-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
September 30,		Nine Months Ended
September 30,
2022202120222021
Operating EBITDA (Non-GAAP)1
$96 $(51)$2,854 $2,314 
Depreciation(132)(129)(383)(383)
Amortization of intangibles (post Separation)(1)— (3)— 
Interest Income36 19 75 58 
Interest Expense(18)(8)(43)(22)
(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
4 74 (512)(366)
Base income tax rate from continuing operations (Non-GAAP)1
21.1 %43.8 %20.5 %18.6 %
Exchange gains (losses), after tax2
(68)(3)(162)(58)
Net (income) loss attributable to non-controlling interests(3)(2)(9)(8)
Operating Earnings (Loss) (Non-GAAP)1
$(86)$(100)$1,817 $1,535 
Diluted Shares (in millions)718.7 739.5 726.4 744.0 
Operating Earnings (Loss) Per Share (Non-GAAP)1
$(0.12)$(0.14)$2.50 $2.06 

1.     Refer to pages A-5 through A-9 and A-12 for Non-GAAP reconciliations.
2.     Refer to page A-15 for pre-tax and after tax impacts of exchange gains (losses).




A-14
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 September 30,Nine Months Ended
September 30,
2022202120222021
Income (loss) from continuing operations before income taxes (GAAP)
$(396)$8 $1,629 $2,101 
Add: Significant items (benefit) charge 1
202 (21)379 214 
           Non-operating (benefits) costs(9)(315)(134)(941)
           Amortization of intangibles (existing as of Separation)177 180 533 543 
  Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges(6)(19)(3)3 
Less: Exchange gains (losses)2
(13)2 (96)(47)
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)
$(19)$(169)$2,500 $1,967 
Provision for (benefit from) income taxes on continuing operations (GAAP)
$(74)$(28)$372 $434 
Add: Tax benefits on significant items (benefit) charge1
92 (4)126 47 
          Tax expenses on non-operating (benefits) costs(5)(73)(38)(225)
          Tax benefits on amortization of intangibles (existing as of Separation)40 40 119 120 
 Tax benefits on mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges(2)(4)(1)1 
          Tax benefits on exchange gains (losses)2
(55)(5)(66)(11)
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)
$(4)$(74)$512 $366 
Effective income tax rate (GAAP)
18.7 %(350.0)%22.8 %20.7 %
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(222.5)%393.9 %1.3 %(1.1)%
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 hedges(203.8)%43.9 %24.1 %19.6 %
Exchange gains (losses), net effect2
224.9 %(0.1)%(3.6)%(1.0)%
Base income tax rate from continuing operations (Non-GAAP)
21.1 %43.8 %20.5 %18.6 %
1. See page A-10 for further detail on the Significant Items.
2. 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
September 30,		Nine Months Ended
September 30,
2022202120222021
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains (losses)$(80)$(32)$(120)$(47)
Local tax (expenses) benefits(40)3 (61)(11)
Net after tax impact from subsidiary exchange gains (losses)$(120)$(29)$(181)$(58)
Hedging Program Gain (Loss)
Pre-tax exchange gains (losses)$67 $34 $24 $— 
Tax (expenses) benefits(15)(8)(5)— 
Net after tax impact from hedging program exchange gains (losses) $52 $26 $19 $— 
Total Exchange Gain (Loss)
Pre-tax exchange gains (losses) $(13)$2 $(96)$(47)
Tax (expenses) benefits(55)(5)(66)(11)
Net after tax exchange gains (losses)$(68)$(3)$(162)$(58)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary Position Gain (Loss)" and the "Hedging Program Gain (Loss)."