Corteva Earnings 2021-03-31

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

dd-20210331

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-38710

Corteva, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

82-4979096

(State or other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

974 Centre Road,

Wilmington,

Delaware

19805

(302)

485-3000

(Address of Principal Executive Offices) (Zip Code)

(Registrant’s Telephone Number, including area code)

Commission File Number 1-815

E. I. du Pont de Nemours and Company

(Exact Name of Registrant as Specified in Its Charter)

Delaware

51-0014090

(State or other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

974 Centre Road,

Wilmington,

Delaware

19805

(302)

485-3000

(Address of Principal Executive Offices) (Zip Code)

(Registrant’s Telephone Number, including area code)

Securities registered pursuant to Section 12(b) of the Act for Corteva, Inc.:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	CTVA	New York Stock Exchange

Securities registered pursuant to Section 12(b) of the Act for E. I. du Pont de Nemours and Company:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
$3.50 Series Preferred Stock	CTAPrA	New York Stock Exchange
$4.50 Series Preferred Stock	CTAPrB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Corteva, Inc. Yes x No o

E. I. du Pont de Nemours and Company Yes x No o

Table of Contents

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)

Corteva, Inc. Yes x No o

E. I. du Pont de Nemours and Company Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Corteva, Inc.

Large Accelerated Filer

Accelerated Filer o

Non-Accelerated Filer

Smaller reporting company o

Emerging growth company o

E. I. du Pont de Nemours and Company

Large Accelerated Filer

Accelerated Filer o

Non-Accelerated Filer

Smaller reporting company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Corteva, Inc. ☐

E. I. du Pont de Nemours and Company ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Corteva, Inc. Yes ☐ No x

E. I. du Pont de Nemours and Company Yes ☐ No x

Corteva, Inc. had 737,101,000 shares of common stock, par value $0.01 per share, outstanding at April 30, 2021.

E. I. du Pont de Nemours and Company had 200 shares of common stock, par value $0.30 per share, outstanding at April 30, 2021, all of which are held by Corteva, Inc.

E. I. du Pont de Nemours and Company meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q (as modified by a grant of no-action relief dated February 12, 2018) and is therefore filing this form with reduced disclosure format.

Table of Contents

CORTEVA, INC.

E. I. DU PONT DE NEMOURS AND COMPANY

Table of Contents


		Page
Explanatory Note
Part I	Financial Information

Item 1.	Consolidated Financial Statements (Unaudited)
	Consolidated Statements of Operations	3
	Consolidated Statements of Comprehensive (Loss) Income	4
	Condensed Consolidated Balance Sheets	5
	Consolidated Statements of Cash Flows	6
	Consolidated Statements of Equity	7
	Notes to the Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
	Cautionary Statements About Forward-Looking Statements	38
	Recent Developments	39
	Overview	39
	Selected Financial Data	41
	Results of Operations	42

	Recent Accounting Pronouncements	44
	Segment Reviews	44
	Non-GAAP Financial Measures	47
	Liquidity & Capital Resources	50

	Contractual Obligations	52

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	53

Part II	Other Information

Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 5.	Other Information	58
Item 6.	Exhibits	59
Exhibit Index		59
Signature		60
Consolidated Financial Statements of E.I. du Pont de Nemours and Company (Unaudited)		61

Table of Contents

Explanatory Note

Corteva owns 100% of the outstanding common stock of EID (defined below), and EID owns, directly or indirectly, 100% of DAS (defined below). EID is a subsidiary of Corteva, Inc. and continues to be a reporting company, subject to the requirements of the Securities Exchange Act of 1934, as amended.

Unless otherwise indicated or the context otherwise requires, references in this Quarterly Report on Form 10-Q to:

• "Corteva" or "the company" refers to Corteva, Inc. and its consolidated subsidiaries (including EID);

• "EID" refers to E. I. du Pont de Nemours and Company and its consolidated subsidiaries or E. I. du Pont de Nemours and Company excluding its consolidated subsidiaries, as the context may indicate;

• "DowDuPont" refers to DowDuPont Inc., and its subsidiaries prior to the Separation of Corteva (defined below);

• "Historical Dow" refers to the Dow Chemical Company and its consolidated subsidiaries prior to the Internal Reorganization (defined below);

• "Historical DuPont" refers to EID prior to the Internal Reorganization (defined below);

• "Internal Reorganizations" refers to the series of internal reorganization and realignment steps undertaken by Historical DuPont and Historical Dow to realign its business into three groups: agriculture, materials science and specialty products. These steps include:

1.the April 1, 2019 transfer of the assets and liabilities aligned with EID’s material science businesses including EID’s ethylene and ethylene copolymers business, excluding its ethylene acrylic elastomers business, (“EID ECP”) to DowDuPont, which were ultimately conveyed by DowDuPont to Dow;

2.the May 1, 2019 distribution of EID legal entities containing the assets and liabilities of EID’s specialty products business (the “EID Specialty Products Entities”) to DowDuPont;

3.the May 2, 2019 conveyance of Historical Dow's agriculture business ("Dow Ag Entities") to EID; and

4.the May 31, 2019 contribution of EID to Corteva, Inc. Refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2020 for further information.

• "Dow Distribution" refers to the separation of DowDuPont's materials science business into a separate and independent public company, effective as of 5:00 pm ET on April 1, 2019, by way of a distribution of Dow Inc. through a pro rata dividend in-kind of all of the then-issued and outstanding shares of Dow’s common stock, par value $0.01 per share, to holders of DowDuPont's common stock, as of the close of business on March 21, 2019;

• "Distributions" refers to the Dow Distribution and the Corteva Distribution;

• "Merger” refers to the all-stock merger of equals strategic combination between Historical Dow and Historical DuPont;

• "Merger Effectiveness Time” refers to August 31, 2017 at 11:59 pm ET;

• "Dow" refers to Dow Inc. after the Dow Distribution;

• "DuPont" refers to DuPont de Nemours, Inc. after the Separation of Corteva (on June 1, 2019, DowDuPont Inc. changed its registered name to DuPont de Nemours, Inc.);

• "DAS" refers to the agriculture business of Historical Dow AgroSciences; and

• "Separation" or "Separation of Corteva" refers to June 1, 2019, when Corteva, Inc. became an independent, publicly
traded company.

This Quarterly Report on Form 10-Q is a combined report being filed separately by Corteva, Inc. and EID. The information in this Quarterly Report on Form 10-Q is equally applicable to Corteva, Inc. and EID, except where otherwise indicated.

The separate EID financial statements and footnotes for areas that differ from Corteva, are included within this Quarterly Report on Form 10-Q and begin on page 61. Footnotes of EID that are identical to that of Corteva are cross-referenced accordingly.

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.CONSOLIDATED FINANCIAL STATEMENTS

Corteva, Inc.

Consolidated Statements of Operations (Unaudited)


(In millions, except per share amounts)	Three Months Ended March 31,
	2021		2020
Net sales	$	4,178	$	3,956
Cost of goods sold	2,420		2,269
Research and development expense	281		280
Selling, general and administrative expenses	733		757
Amortization of intangibles	183		163
Restructuring and asset related charges - net	100		70
Other income - net	337		1
Interest expense	7		10
Income from continuing operations before income taxes	791		408
Provision for income taxes on continuing operations	178		127
Income from continuing operations after income taxes	613		281
(Loss) income from discontinued operations after income taxes	(10)		1
Net income	603		282
Net income attributable to noncontrolling interests	3		10
Net income attributable to Corteva	$	600	$	272
Basic earnings per share of common stock:
Basic earnings per share of common stock from continuing operations	$	0.82	$	0.36
Basic loss per share of common stock from discontinued operations	(0.01)		—
Basic earnings per share of common stock	$	0.81	$	0.36
Diluted earnings per share of common stock:
Diluted earnings per share of common stock from continuing operations	$	0.81	$	0.36
Diluted loss per share of common stock from discontinued operations	(0.01)		—
Diluted earnings per share of common stock	$	0.80	$	0.36

See Notes to the interim Consolidated Financial Statements beginning on page 8.

Table of Contents

Corteva, Inc.

Consolidated Statements of Comprehensive (Loss) Income (Unaudited)


(In millions)	Three Months Ended March 31,
	2021		2020
Net income	$	603	$	282
Other comprehensive income (loss) - net of tax:
Cumulative translation adjustments	(403)		(672)
Adjustments to pension benefit plans	8		—
Adjustments to other benefit plans	(157)		3
Unrealized gain on investments	10		—
Derivative instruments	65		6
Total other comprehensive loss	(477)		(663)
Comprehensive income (loss)	126		(381)
Comprehensive income attributable to noncontrolling interests - net of tax	3		10
Comprehensive income (loss) attributable to Corteva	$	123	$	(391)

See Notes to the interim Consolidated Financial Statements beginning on page 8.

Table of Contents

Corteva, Inc.

Condensed Consolidated Balance Sheets (Unaudited)


(In millions, except share amounts)	March 31, 2021		December 31, 2020		March 31, 2020
Assets
Current assets
Cash and cash equivalents	$	2,404	$	3,526	$	1,963
Marketable securities	114		269		10
Accounts and notes receivable - net	6,792		4,926		6,775
Inventories	4,321		4,882		4,401
Other current assets	1,405		1,165		1,530

Total current assets	15,036		14,768		14,679
Investment in nonconsolidated affiliates	64		66		64
Property, plant and equipment - net of accumulated depreciation (March 31, 2021 - $3,874; December 31, 2020 - $3,857; March 31, 2020 - $3,406)	4,299		4,396		4,358
Goodwill	10,146		10,269		10,027
Other intangible assets	10,584		10,747		11,241
Deferred income taxes	433		464		273
Other assets	1,987		1,939		2,336

Total Assets	$	42,549	$	42,649	$	42,978
Liabilities and Equity
Current liabilities
Short-term borrowings and finance lease obligations	$	1,250	$	3	$	1,996
Accounts payable	3,098		3,615		3,021
Income taxes payable	165		123		143
Deferred revenue	2,247		2,662		1,996
Accrued and other current liabilities	2,239		2,145		2,043

Total current liabilities	8,999		8,548		9,199
Long-Term Debt	1,102		1,102		614
Other Noncurrent Liabilities
Deferred income tax liabilities	902		893		911
Pension and other post employment benefits - noncurrent	4,954		5,176		6,186
Other noncurrent obligations	1,814		1,867		1,989

Total noncurrent liabilities	8,772		9,038		9,700
Commitments and contingent liabilities
Stockholders’ equity
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at March 31, 2021 - 738,321,000; December 31, 2020 - 743,458,000; and March 31, 2020 - 748,369,000	7		7		7
Additional paid-in capital	27,630		27,707		27,906

Retained earnings / (accumulated deficit)	268		—		(155)
Accumulated other comprehensive loss	(3,367)		(2,890)		(3,933)
Total Corteva stockholders’ equity	24,538		24,824		23,825
Noncontrolling interests	240		239		254
Total equity	24,778		25,063		24,079
Total Liabilities and Equity	$	42,549	$	42,649	$	42,978

See Notes to the interim Consolidated Financial Statements beginning on page 8.

Table of Contents

Corteva, Inc.

Consolidated Statements of Cash Flows (Unaudited)


(In millions)	Three Months Ended March 31,
	2021		2020
Operating activities
Net income	$	603	$	282
Adjustments to reconcile net income to cash used for operating activities:
Depreciation and amortization	304		283
Provision for deferred income tax	47		26
Net periodic pension and OPEB benefit, net	(318)		(85)
Pension and OPEB contributions	(84)		(95)
Net loss on sales of property, businesses, consolidated companies and investments	—		46
Restructuring and asset related charges - net	100		70
Other net loss	54		138
Changes in assets and liabilities, net
Accounts and notes receivable	(2,012)		(1,685)
Inventories	467		398
Accounts payable	(448)		(557)
Deferred revenue	(401)		(575)
Other assets and liabilities	(262)		(176)
Cash used for operating activities	(1,950)		(1,930)
Investing activities
Capital expenditures	(137)		(128)
Proceeds from sales of property, businesses and consolidated companies - net of cash divested	20		11



Purchases of investments	(40)		(67)
Proceeds from sales and maturities of investments	194		58
Other investing activities - net	(1)		(4)
Cash provided by (used for) investing activities	36		(130)
Financing activities
Net change in borrowings (less than 90 days)	828		1,619
Proceeds from debt	419		875
Payments on debt	—		(1)
Repurchase of common stock	(350)		(50)
Proceeds from exercise of stock options	38		14
Dividends paid to stockholders	(97)		(97)





Other financing activities	(17)		(16)
Cash provided by financing activities	821		2,344
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(50)		(117)
(Decrease)/increase in cash, cash equivalents and restricted cash	(1,143)		167
Cash, cash equivalents and restricted cash at beginning of period	3,873		2,173
Cash, cash equivalents and restricted cash at end of period1	$	2,730	$	2,340

1. See page 15 for reconciliation of cash and cash equivalents and restricted cash presented in interim Condensed Consolidated Balance Sheets to total cash, cash equivalents and restricted cash presented in the interim Consolidated Statements of Cash Flows.

See Notes to the interim Consolidated Financial Statements beginning on page 8.

Table of Contents

Corteva, Inc.

Consolidated Statements of Equity (Unaudited)


(In millions, except per share amounts)	Common Stock		Additional Paid-in Capital "APIC"		(Accumulated deficit) Retained Earnings		Accumulated Other Comp (Loss) Income		Treasury Stock		Non-controlling Interests		Total Equity
2020
Balance at January 1, 2020	$	7	$	27,997	$	(425)	$	(3,270)	$	—	$	246	$	24,555
Net income					272						10		282
Other comprehensive loss							(663)						(663)
Common dividends ($.13 per share)			(97)										(97)
Issuance of Corteva stock			14										14
Share-based compensation			2										2
Repurchase of common stock			(50)										(50)
Other - net			40		(2)						(2)		36
Balance at March 31, 2020	$	7	$	27,906	$	(155)	$	(3,933)	$	—	$	254	$	24,079


(In millions, except per share amounts)	Common Stock		Additional Paid-in Capital "APIC"		(Accumulated deficit) Retained Earnings		Accumulated Other Comp (Loss) Income		Treasury Stock		Non-controlling Interests		Total Equity
2021
Balance at January 1, 2021	$	7	$	27,707	$	—	$	(2,890)	$	—	$	239	$	25,063
Net income					600						3		603
Other comprehensive loss							(477)						(477)
Common dividends ($0.13 per share)			(97)										(97)
Issuance of Corteva stock			38										38

Repurchase of common stock			(18)		(332)								(350)
Other - net											(2)		(2)
Balance at March 31, 2021	$	7	$	27,630	$	268	$	(3,367)	$	—	$	240	$	24,778

See Notes to the interim Consolidated Financial Statements beginning on page 8.

Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


			Corteva, Inc.
			Notes to the Consolidated Financial Statements (Unaudited)

Table of Contents

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included. Results for interim periods should not be considered indicative

Price	-0.00	EPS	-1
Shares	750	P/E	0
MCap	-0	P/FCF	0
Net Debt	-2,284	EBIT	-873
TEV	-2,284	TEV/EBIT	3
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-05-05
10-Q	2020-03-31	Filed 2020-05-07
10-Q	2019-03-31	Filed 2019-05-31

8-K	2021-02-04
8-K	2021-02-01
8-K	2021-01-21
8-K	2021-01-21
8-K	2020-11-04
8-K	2020-08-05
8-K	2020-05-13
8-K	2020-05-06
8-K	2020-04-28
8-K	2020-02-21
8-K	2020-02-21
8-K	2020-02-17
8-K	2020-01-30
8-K	2019-10-31
8-K	2019-10-10
8-K	2019-08-15
8-K	2019-08-01
8-K	2019-08-01
8-K	2019-06-25
8-K	2019-06-01
8-K	2019-05-31
8-K	2019-05-31
8-K	2019-05-09

EX-10.1	a101.htm
EX-10.2	a102.htm
EX-31.1	corteva-3312021xex3111.htm
EX-31.2	corteva-3312021xex3121.htm
EX-32.1	corteva-3312021xex3211.htm
EX-32.2	corteva-3312021xex3221.htm


Note		Page
1	Summary of Significant Accounting Policies	9
2	Recent Accounting Guidance	9
3	Divestitures and Other Transactions	9
4	Revenue	10
5	Restructuring and Asset Related Charges - Net	13
6	Supplementary Information	14
7	Income Taxes	16
8	Earnings Per Share of Common Stock	17
9	Accounts and Notes Receivable - Net	18
10	Inventories	19
11	Other Intangible Assets	19
12	Short-Term Borrowings, Long-Term Debt and Available Credit Facilities	20
13	Commitments and Contingent Liabilities	20
14	Stockholders' Equity	26
15	Pension Plans and Other Post Employment Benefits	29
16	Financial Instruments	29
17	Fair Value Measurements	35
18	Segment Information	36

CTVA 10Q Quarterly Report

Corteva Earnings 2021-03-31