EX-99.2 3 cortevaq12023enrschedules.htm EX-99.2 Document

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


Three Months Ended
March 31,
20232022
Net sales$4,884 $4,601 
Cost of goods sold2,771 2,724 
Research and development expense316 268 
Selling, general and administrative expenses726 735 
Amortization of intangibles160 179 
Restructuring and asset related charges - net33 5 
Other income (expense) - net(71)17 
Interest expense31 9 
Income (loss) from continuing operations before income taxes776 698 
Provision for (benefit from) income taxes on continuing operations169 121 
Income (loss) from continuing operations after income taxes607 577 
Income (loss) from discontinued operations after income taxes(8)(10)
Net income (loss)599 567 
Net income (loss) attributable to noncontrolling interests4 3 
Net income (loss) attributable to Corteva$595 $564 
Basic earnings (loss) per share of common stock:
Basic earnings (loss) per share of common stock from continuing operations$0.85 $0.79 
Basic earnings (loss) per share of common stock from discontinued operations(0.01)(0.01)
Basic earnings (loss) per share of common stock$0.84 $0.78 
Diluted earnings (loss) per share of common stock:
Diluted earnings (loss) per share of common stock from continuing operations$0.84 $0.79 
Diluted earnings (loss) per share of common stock from discontinued operations(0.01)(0.01)
Diluted earnings (loss) per share of common stock$0.83 $0.78 
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions)
Basic712.9727.0
Diluted716.2730.9





A-2
Corteva, Inc.
Consolidated Balance Sheets
(Dollars in millions, except share amounts)
March 31, 2023December 31, 2022March 31, 2022
Assets
Current assets
Cash and cash equivalents$1,646 $3,191 $2,031 
Marketable securities85 124 290 
Accounts and notes receivable – net
8,678 5,701 7,275 
Inventories6,585 6,811 4,986 
Other current assets1,335 968 1,296 
Total current assets18,329 16,795 15,878 
Investment in nonconsolidated affiliates87 102 91 
Property, plant and equipment8,633 8,551 8,483 
Less: Accumulated depreciation4,362 4,297 4,150 
Net property, plant and equipment4,271 4,254 4,333 
Goodwill10,508 9,962 10,109 
Other intangible assets10,137 9,339 9,865 
Deferred income taxes508 479 471 
Other assets1,660 1,687 1,886 
Total Assets$45,500 $42,618 $42,633 
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations$3,787 $24 $1,018 
Accounts payable3,957 4,895 3,685 
Income taxes payable298 183 180 
Deferred revenue2,712 3,388 2,435 
Accrued and other current liabilities2,477 2,254 2,335 
Total current liabilities13,231 10,744 9,653 
Long-term debt1,241 1,283 1,154 
Other noncurrent liabilities
Deferred income tax liabilities1,255 1,119 1,203 
Pension and other post employment benefits - noncurrent2,242 2,255 2,983 
Other noncurrent obligations1,692 1,676 1,704 
Total noncurrent liabilities6,430 6,333 7,044 
Commitments and contingent liabilities
Stockholders' equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at March 31, 2023 - 710,678,000; December 31, 2022 - 713,419,000; and March 31, 2022 - 725,320,0007 7 7 
Additional paid-in capital27,844 27,851 27,760 
Retained earnings 487 250 750 
Accumulated other comprehensive income (loss)(2,739)(2,806)(2,821)
Total Corteva stockholders' equity25,599 25,302 25,696 
Noncontrolling interests240 239 240 
Total equity25,839 25,541 25,936 
Total Liabilities and Equity$45,500 $42,618 $42,633 

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

Three Months Ended March 31,
20232022
Operating activities
Net income (loss)$599 $567 
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
Depreciation and amortization287 307 
Provision for (benefit from) deferred income tax(85)(37)
Net periodic pension and OPEB benefit, net
36 (71)
Pension and OPEB contributions(50)(55)
Net (gain) loss on sales of property, businesses, consolidated companies, and investments1 3 
Restructuring and asset related charges - net33 5 
Other net loss48 104 
Changes in assets and liabilities, net
Accounts and notes receivable(2,708)(2,372)
Inventories324 234 
Accounts payable(908)(406)
Deferred revenue(685)(782)
Other assets and liabilities(203)(227)
Cash provided by (used for) operating activities(3,311)(2,730)
Investing activities
Capital expenditures(151)(179)
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested21 5 
Acquisitions of businesses - net of cash acquired(1,463)— 
Investments in and loans to nonconsolidated affiliates— (6)
Purchases of investments— (234)
Proceeds from sales and maturities of investments40 10 
Proceeds from settlement of net investment hedge42 — 
Cash provided by (used for) investing activities(1,511)(404)
Financing activities
Net change in borrowings (less than 90 days) 3,084 744 
Proceeds from debt626 311 
Payments on debt(56)— 
Repurchase of common stock(252)(235)
Proceeds from exercise of stock options7 40 
Dividends paid to stockholders(107)(102)
Other financing activities, net(28)(44)
Cash provided by (used for) financing activities3,274 714 
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents(2)(31)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents(1,550)(2,451)
Cash, cash equivalents and restricted cash equivalents at beginning of period3,618 4,836 
Cash, cash equivalents and restricted cash equivalents at end of period$2,068 $2,385 

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

Three Months Ended
March 31,
SEGMENT NET SALES - SEED20232022
    Corn$1,979 $1,930 
    Soybean269 172 
    Other oilseeds301 277 
    Other146 145 
Seed$2,695 $2,524 
Three Months Ended
March 31,
SEGMENT NET SALES - CROP PROTECTION20232022
    Herbicides$1,242 $1,205 
    Insecticides409 418 
    Fungicides359 304 
    Other179 150 
Crop Protection$2,189 $2,077 
Three Months Ended
March 31,
GEOGRAPHIC NET SALES - SEED20232022
North America 1
$1,323 $1,184 
EMEA 2
1,012 926 
Latin America
259 323 
Asia Pacific
101 91 
Rest of World 3
1,372 1,340 
Net Sales$2,695 $2,524 
Three Months Ended
March 31,
GEOGRAPHIC NET SALES - CROP PROTECTION20232022
North America 1
$879 $821 
EMEA 2
801 656 
Latin America
293 327 
Asia Pacific
216 273 
Rest of World 3
1,310 1,256 
Net Sales$2,189 $2,077 
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
March 31,
2023
Net Sales (GAAP)$4,884 
Add: Impacts from Currency and Portfolio / Other4
175 
Organic Sales (Non-GAAP)$5,059 
Three Months Ended
March 31,
OPERATING EBITDA20232022
Seed$652 $569 
Crop Protection603 491 
Corporate Expenses(24)(21)
Operating EBITDA (Non-GAAP)$1,231 $1,039 
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDAThree Months Ended
March 31,
20232022
Income (loss) from continuing operations after income taxes (GAAP)$607 $577 
Provision for (benefit from) income taxes on continuing operations169 121 
Income (loss) from continuing operations before income taxes (GAAP)776 698 
Depreciation and amortization287 307 
Interest income(40)(15)
Interest expense31 9 
Exchange (gains) losses1
36 47 
Non-operating (benefits) costs2
43 (65)
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges15 36 
Significant items (benefit) charge3
83 22 
Operating EBITDA (Non-GAAP)$1,231 $1,039 

1.Refer to page A-12 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) credits (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-8 for pre-tax and after tax impacts of significant items.
4.Other includes the revenue recognized relating to seed sales associated with the Russia Exit. Refer to schedule A-8 for further detail on significant items.

A-6
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

PRICE - VOLUME - CURRENCY ANALYSIS
REGION
Q1 2023 vs. Q1 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$197 10 %$206 10 %7 %3 %— %— %
EMEA2
231 15 %403 25 %25 %— %(13)%3 %
Latin America
(98)(15)%(135)(21)%9 %(30)%3 %3 %
Asia Pacific
(47)(13)%(16)(4)%9 %(13)%(9)%— %
Rest of World86 3 %252 10 %19 %(9)%(9)%2 %
Total$283 6 %$458 10 %14 %(4)%(5)%1 %
SEED
Q1 2023 vs. Q1 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$139 12 %$142 12 %7 %5 %— %— %
EMEA2
86 9 %173 19 %29 %(10)%(14)%4 %
Latin America
(64)(20)%(78)(24)%17 %(41)%4 %— %
Asia Pacific
10 11 %23 25 %17 %8 %(14)%— %
Rest of World32 2 %118 9 %25 %(16)%(10)%3 %
Total$171 7 %$260 10 %17 %(7)%(5)%2 %
CROP PROTECTION
Q1 2023 vs. Q1 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
North America$58 7 %$64 8 %8 %— %(1)%— %
EMEA
145 22 %230 35 %20 %15 %(13)%— %
Latin America
(34)(10)%(57)(17)%1 %(18)%1 %6 %
Asia Pacific
(57)(21)%(39)(14)%6 %(20)%(6)%(1)%
Rest of World54 4 %134 11 %12 %(1)%(8)%1 %
Total$112 5 %$198 10 %11 %(1)%(5)%— %

A-7
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)
SEED PRODUCT LINE
Q1 2023 vs. Q1 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Corn2
$49 3 %$127 7 %17 %(10)%(5)%1 %
Soybeans97 56 %98 57 %1 %56 %(1)%— %
Other oilseeds2
24 9 %35 13 %29 %(16)%(14)%10 %
Other1 1 %— — %16 %(16)%1 %— %
Total $171 7 %$260 10 %17 %(7)%(5)%2 %
CROP PROTECTION PRODUCT LINE
Q1 2023 vs. Q1 2022Percent Change Due To:
Net Sales Change (GAAP)
Organic Change 1 (Non-GAAP)
Price &Portfolio /
$%$%Product MixVolumeCurrencyOther
Herbicides$37 3 %$88 7 %9 %(2)%(4)%— %
Insecticides(9)(2)%27 6 %13 %(7)%(7)%(1)%
Fungicides55 18 %81 27 %14 %13 %(9)%— %
Other29 19 %2 1 %3 %(2)%(1)%19 %
Total$112 5 %$198 10 %11 %(1)%(5)%— %

1.Organic sales is defined as price and volume and excludes currency and portfolio and other impacts, including significant items.
2.Other includes the revenue recognized relating to seed sales associated with the Russia Exit. Refer to schedule A-8 for further detail on significant items.

A-8
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX)
Three Months Ended
 March 31,
20232022
Seed$(6)$(5)
Crop Protection(71)(15)
Corporate(6)(2)
Total significant items before income taxes$(83)$(22)
SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS
Pre-tax
After tax5
($ Per Share)
202320222023202220232022
1st Quarter
Restructuring and asset related charges, net1
$(33)$(5)$(25)$(3)$(0.03)$— 
Estimated settlement expense2
(49)(17)(37)(13)(0.05)(0.02)
Inventory write-offs3
(4)— (4)— (0.01)— 
Gain (loss) on sale of assets and equity investments3
3 — 1 — — — 
Seed sale associated with Russia Exit3
19 — 14 — 0.02 
Acquisition-related costs4
(19)— (17)— (0.02)— 
1st Quarter — Total
$(83)$(22)$(68)$(16)$(0.09)$(0.02)

1.First quarter 2023 includes restructuring and asset related benefits (charges) of $(33). The charges primarily relate to a $(11) charge associated with the 2022 Restructuring Actions and a $(16) 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 quarter 2022 includes restructuring and asset related benefits (charges) of $(5). The charges primarily relate 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.

2.First quarter 2023 and 2022 included estimated Lorsban® related charges of $(49) and $(17) charge, respectively.

3.First quarter 2023 includes a benefit of $19 relating to the sale of seeds already under production in Russia when the decision to exit the country was made and that the Company was contractually required to purchase, which consisted of $41 of net sales and $22 of cost of goods sold. First quarter 2023 also includes a benefit (charge) of $(11) and $(4) associated with activities related to the 2022 Restructuring Actions consisting of a loss on the sale of the Company's interest in an equity investment and inventory write-offs.

4.First quarter 2023 includes acquisition-related costs, including transaction and third-party integration costs associated with the completed acquisitions of Stoller and Symborg as well as the recognition of the inventory fair value step-up.

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-9
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 March 31,
2023202220232022
$$EPS (diluted)EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP)$603 $574 $0.84 $0.79 
Less: Non-operating benefits (costs), after tax 1
(33)49 (0.05)0.07 
Less: Amortization of intangibles (existing as of Separation), after tax(118)(139)(0.16)(0.19)
Less: Mark-to-market gains (losses) on certain foreign currency contracts not designated as hedges, after tax(11)(28)(0.02)(0.04)
Less: Significant items benefit (charge), after tax(68)(16)(0.09)(0.02)
Operating Earnings (Loss) (Non-GAAP)$833 $708 $1.16 $0.97 

1.Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) credits (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-10
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
March 31,
20232022
Operating EBITDA (Non-GAAP)1
$1,231 $1,039 
Depreciation(127)(128)
Amortization of intangibles (post Separation)(6)— 
Interest Income40 15 
Interest Expense(31)(9)
(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
(245)(168)
Base income tax rate from continuing operations (Non-GAAP)1
22.1 %18.3 %
Exchange gains (losses), after tax2
(25)(38)
Net (income) loss attributable to non-controlling interests(4)(3)
Operating Earnings (Loss) (Non-GAAP)1
$833 $708 
Diluted Shares (in millions)716.2 730.9 
Operating Earnings (Loss) Per Share (Non-GAAP)1
$1.16 $0.97 

1.     Refer to pages A-5 through A-7, A-9 and A-11 for Non-GAAP reconciliations.
2.     Refer to page A-12 for pre-tax and after tax impacts of exchange gains (losses).




A-11
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) losses on certain foreign currency contracts not designated as hedges, and non-operating (benefits) costs.
Three Months Ended March 31,
20232022
Income (loss) from continuing operations before income taxes (GAAP)
$776 $698 
Add: Significant items (benefit) charge 1
83 22 
           Non-operating (benefits) costs43 (65)
           Amortization of intangibles (existing as of Separation)154 179 
  Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges15 36 
Less: Exchange gains (losses)2
(36)(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)
$1,107 $917 
Provision for (benefit from) income taxes on continuing operations (GAAP)
$169 $121 
Add: Tax benefits on significant items (benefit) charge1
15 6 
          Tax expenses on non-operating (benefits) costs10 (16)
          Tax benefits on amortization of intangibles (existing as of Separation)36 40 
 Tax benefits on mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges4 8 
          Tax benefits on exchange gains (losses)2
11 9 
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)
$245 $168 
Effective income tax rate (GAAP)
21.8 %17.3 %
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— %0.8 %
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 hedges21.8 %18.1 %
Exchange gains (losses), net effect2
0.4 %0.2 %
Base income tax rate from continuing operations (Non-GAAP)
22.1 %18.3 %
1. See page A-8 for further detail on the Significant Items.
2. See page A-12 for further details of exchange gains (losses).



A-12
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 (expense) - 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
March 31,
20232022
Subsidiary Monetary Position Gain (Loss)
Pre-tax exchange gains (losses)$(30)$6 
Local tax (expenses) benefits9 (4)
Net after tax impact from subsidiary exchange gains (losses)$(21)$2 
Hedging Program Gain (Loss)
Pre-tax exchange gains (losses)$(6)$(53)
Tax (expenses) benefits2 13 
Net after tax impact from hedging program exchange gains (losses) $(4)$(40)
Total Exchange Gain (Loss)
Pre-tax exchange gains (losses) $(36)$(47)
Tax (expenses) benefits11 9 
Net after tax exchange gains (losses)$(25)$(38)
As shown above, the "Total Exchange Gain (Loss)" is the sum of the "Subsidiary Monetary Position Gain (Loss)" and the "Hedging Program Gain (Loss)."