EX-99.2 3 a123120enr.htm EX-99.2
A-1
Corteva, Inc.
Consolidated Statements of Operations
(Dollars in millions, except per share amounts)

| Three Months Ended December 31, |  | Twelve Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Net sales | $ | 3,207 |  |  | $ | 2,983 |  |  | $ | 14,217 |  |  | $ | 13,846 |
Cost of goods sold | 2,112 |  |  | 1,968 |  |  | 8,507 |  |  | 8,575 |
Research and development expense | 305 |  |  | 290 |  |  | 1,142 |  |  | 1,147 |
Selling, general and administrative expenses | 724 |  |  | 747 |  |  | 3,043 |  |  | 3,065 |
Amortization of intangibles | 181 |  |  | 161 |  |  | 682 |  |  | 475 |
Restructuring and asset related charges - net | 37 |  |  | 55 |  |  | 335 |  |  | 222 |
Integration and separation costs | — |  |  | 50 |  |  | — |  |  | 744 |
Other income - net | 92 |  |  | 125 |  |  | 212 |  |  | 215 |
Loss on early extinguishment of debt | — |  |  | — |  |  | — |  |  | 13 |
Interest expense | 10 |  |  | 24 |  |  | 45 |  |  | 136 |
(Loss) income from continuing operations before income taxes | (70) |  |  | (187) |  |  | 675 |  |  | (316) |
Benefit from income taxes on continuing operations | (169) |  |  | (145) |  |  | (81) |  |  | (46) |
Income (loss) from continuing operations after income taxes | 99 |  |  | (42) |  |  | 756 |  |  | (270) |
(Loss) income from discontinued operations after income taxes | (56) |  |  | 24 |  |  | (55) |  |  | (671) |
Net income (loss) | 43 |  |  | (18) |  |  | 701 |  |  | (941) |
Net income attributable to noncontrolling interests | 2 |  |  | 3 |  |  | 20 |  |  | 18 |
Net income (loss) attributable to Corteva | $ | 41 |  |  | $ | (21) |  |  | $ | 681 |  |  | $ | (959) |
Basic earnings (loss) per share of common stock: |  |  |  |  |  |  |
Basic earnings (loss) per share of common stock from continuing operations | $ | 0.13 |  |  | $ | (0.06) |  |  | $ | 0.98 |  |  | $ | (0.38) |
Basic (loss) earnings per share of common stock from discontinued operations | (0.08) |  |  | 0.03 |  |  | (0.07) |  |  | (0.90) |
Basic earnings (loss) per share of common stock | $ | 0.05 |  |  | $ | (0.03) |  |  | $ | 0.91 |  |  | $ | (1.28) |
Diluted earnings (loss) per share of common stock: |  |  |  |  |  |  |
Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.13 |  |  | $ | (0.06) |  |  | $ | 0.98 |  |  | $ | (0.38) |
Diluted (loss) earnings per share of common stock from discontinued operations | (0.08) |  |  | 0.03 |  |  | (0.07) |  |  | (0.90) |
Diluted earnings (loss) per share of common stock | $ | 0.05 |  |  | $ | (0.03) |  |  | $ | 0.91 |  |  | $ | (1.28) |
Average number of shares outstanding used in earnings per share (EPS) calculation (in millions) |  |  |  |  |  |  |
Basic | 746.3 |  | 749.6 |  | 748.7 |  | 749.5
Diluted | 749.7 |  | 749.6 |  | 751.2 |  | 749.5

A-2
Corteva, Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions, except share amounts)

|  | December 31, 2020 |  | December 31, 2019
Assets |  |  |  |
Current assets |  |  |  |
Cash and cash equivalents |  | $ | 3,526 |  |  | $ | 1,764 |
Marketable securities |  | 269 |  |  | 5 |
Accounts and notes receivable, net |  | 4,926 |  |  | 5,528 |
Inventories |  | 4,882 |  |  | 5,032 |
Other current assets |  | 1,165 |  |  | 1,190 |
Total current assets |  | 14,768 |  |  | 13,519 |
Investment in nonconsolidated affiliates |  | 66 |  |  | 66 |
Property, plant and equipment, net of accumulated depreciation December 31, 2020 - $3,857 and December 31, 2019 - $3,326 |  | 4,396 |  |  | 4,546 |
Goodwill |  | 10,269 |  |  | 10,229 |
Other intangible assets |  | 10,747 |  |  | 11,424 |
Deferred income taxes |  | 464 |  |  | 287 |
Other assets |  | 1,939 |  |  | 2,326 |
Total Assets |  | $ | 42,649 |  |  | $ | 42,397 |
Liabilities and Equity |  |  |  |
Current liabilities |  |  |  |
Short-term borrowings and finance lease obligations |  | $ | 3 |  |  | $ | 7 |
Accounts payable |  | 3,615 |  |  | 3,702 |
Income taxes payable |  | 123 |  |  | 95 |
Accrued and other current liabilities |  | 4,807 |  |  | 4,434 |
Total current liabilities |  | 8,548 |  |  | 8,238 |
Long-Term Debt |  | 1,102 |  |  | 115 |
Other Noncurrent Liabilities |  |  |  |
Deferred income tax liabilities |  | 893 |  |  | 920 |
Pension and other post employment benefits - noncurrent |  | 5,176 |  |  | 6,377 |
Other noncurrent obligations |  | 1,867 |  |  | 2,192 |
Total noncurrent liabilities |  | 9,038 |  |  | 9,604 |
Commitments and contingent liabilities |  |  |  |
Stockholders' equity |  |  |  |
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at December 31, 2020 - 743,458,000 and December 31, 2019 - 748,577,000 |  | 7 |  |  | 7 |
Additional paid-in capital |  | 27,707 |  |  | 27,997 |
Accumulated deficit |  | — |  |  | (425) |
Accumulated other comprehensive loss |  | (2,890) |  |  | (3,270) |
Total Corteva stockholders' equity |  | 24,824 |  |  | 24,309 |
Noncontrolling interests |  | 239 |  |  | 246 |
Total equity |  | 25,063 |  |  | 24,555 |
Total Liabilities and Equity |  | $ | 42,649 |  |  | $ | 42,397 |

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

| Twelve Months Ended December 31,
| 2020 |  | 2019 1
Operating activities |  |  |
Net income (loss) | $ | 701 |  |  | $ | (941) |
Adjustments to reconcile net income (loss) to cash provided by operating activities |  |  |
Depreciation and amortization | 1,177 |  |  | 1,599 |
Benefit from deferred income tax | (330) |  |  | (477) |
Net periodic pension benefit | (409) |  |  | (264) |
Pension contributions | (62) |  |  | (121) |
Net loss (gain) on sales of property, businesses, consolidated companies, and investments | 3 |  |  | (142) |
Goodwill impairment charge | — |  |  | 1,102 |
Loss on early extinguishment of debt | — |  |  | 13 |
Restructuring and asset related charges - net | 335 |  |  | 339 |
Amortization of inventory step-up | — |  |  | 272 |
Other net loss | 290 |  |  | 246 |
Changes in operating assets and liabilities, net | 359 |  |  | (556) |
Cash provided by operating activities | 2,064 |  |  | 1,070 |
Investing activities |  |  |
Capital expenditures | (475) |  |  | (1,163) |
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 83 |  |  | 249 |
Acquisitions of businesses - net of cash acquired | — |  |  | (10) |
Investments in and loans to nonconsolidated affiliates | (1) |  |  | (10) |
Proceeds from sale of ownership interest in nonconsolidated affiliates | — |  |  | 21 |
Purchases of investments | (995) |  |  | (138) |
Proceeds from sales and maturities of investments | 721 |  |  | 160 |
Other investing activities - net | (7) |  |  | (13) |
Cash used for investing activities | (674) |  |  | (904) |
Financing activities |  |  |
Net change in borrowings (less than 90 days) | — |  |  | (1,868) |
Proceeds from debt | 2,439 |  |  | 1,001 |
Payments on debt | (1,441) |  |  | (6,804) |
Repurchase of common stock | (275) |  |  | (25) |
Proceeds from exercise of stock options | 56 |  |  | 47 |
Dividends paid to stockholders | (388) |  |  | (194) |
Payment for acquisition of subsidiary's interest from the non-controlling interest | (60) |  |  | — |
Distributions to DowDuPont | — |  |  | (317) |
Contributions from Dow and DowDuPont | — |  |  | 7,396 |
Cash transferred to DowDuPont at Internal Reorganizations | — |  |  | (2,053) |
Debt extinguishment costs | — |  |  | (79) |
Other financing activities, net | (28) |  |  | (33) |
Cash provided by financing activities | 303 |  |  | (2,929) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7 |  |  | (88) |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,700 |  |  | (2,851) |
Cash, cash equivalents and restricted cash at beginning of period | 2,173 |  |  | 5,024 |
Cash, cash equivalents and restricted cash at end of period | $ | 3,873 |  |  | $ | 2,173 |

1.The cash flows for the twelve months ended December 31, 2019 includes cash flows of historical DuPont's ECP and Specialty Products Businesses.

A-4
Corteva, Inc.
Pro Forma Consolidated Statements of Operations 1
(Dollars in millions, except per share amounts)

| Three Months Ended December 31, |  | Twelve Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019 2
Net sales | $ | 3,207 |  |  | $ | 2,983 |  |  | $ | 14,217 |  |  | $ | 13,846 |
Cost of goods sold | 2,112 |  |  | 1,968 |  |  | 8,507 |  |  | 8,386 |
Research and development expense | 305 |  |  | 290 |  |  | 1,142 |  |  | 1,147 |
Selling, general and administrative expenses | 724 |  |  | 747 |  |  | 3,043 |  |  | 3,068 |
Amortization of intangibles | 181 |  |  | 161 |  |  | 682 |  |  | 475 |
Restructuring and asset related charges - net | 37 |  |  | 55 |  |  | 335 |  |  | 222 |
Integration and separation costs | — |  |  | 50 |  |  | — |  |  | 632 |
Other income - net | 92 |  |  | 125 |  |  | 212 |  |  | 215 |
Loss on early extinguishment of debt | — |  |  | — |  |  | — |  |  | 13 |
Interest expense | 10 |  |  | 24 |  |  | 45 |  |  | 91 |
(Loss) income from continuing operations before income taxes | (70) |  |  | (187) |  |  | 675 |  |  | 27 |
(Benefit from) provision for income taxes on continuing operations | (169) |  |  | (145) |  |  | (81) |  |  | 1 |
Income (loss) from continuing operations after income taxes | 99 |  |  | (42) |  |  | 756 |  |  | 26 |
Net income from continuing operations attributable to noncontrolling interests | 2 |  |  | 3 |  |  | 20 |  |  | 13 |
Net income (loss) from continuing operations attributable to Corteva | $ | 97 |  |  | $ | (45) |  |  | $ | 736 |  |  | $ | 13 |
Basic earnings (loss) per share of common stock from continuing operations | $ | 0.13 |  |  | $ | (0.06) |  |  | $ | 0.98 |  |  | $ | 0.02 |
Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.13 |  |  | $ | (0.06) |  |  | $ | 0.98 |  |  | $ | 0.02 |
Average number of shares outstanding used in earnings per share (EPS) calculation (in millions) |  |  |  |  |  |  |
Basic | 746.3 |  |  | 749.6 |  |  | 748.7 |  |  | 749.5 |
Diluted | 749.7 |  |  | 749.6 |  |  | 751.2 |  |  | 749.5 |

1.See Article 11 Pro Forma Combined Statements of Operations beginning on page A-18.
2.Period is presented on a Pro Forma Basis, prepared in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments.

A-5
Corteva, Inc.
Consolidated Segment Information
(Dollars in millions, except per share amounts)

|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
SEGMENT NET SALES - SEED |  | 2020 |  | 2019 1 |  | 2020 |  | 2019 1
Corn |  | $ | 958 |  |  | $ | 962 |  |  | $ | 5,182 |  |  | $ | 5,126 |
Soybean |  | 63 |  |  | 74 |  |  | 1,445 |  |  | 1,387 |
Other oilseeds |  | 90 |  |  | 92 |  |  | 619 |  |  | 593 |
Other |  | 129 |  |  | 115 |  |  | 510 |  |  | 484 |
Seed |  | $ | 1,240 |  |  | $ | 1,243 |  |  | $ | 7,756 |  |  | $ | 7,590 |
|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
SEGMENT NET SALES - CROP PROTECTION |  | 2020 |  | 2019 1 |  | 2020 |  | 2019 1
Herbicides |  | $ | 965 |  |  | $ | 868 |  |  | $ | 3,280 |  |  | $ | 3,206 |
Insecticides |  | 546 |  |  | 494 |  |  | 1,764 |  |  | 1,652 |
Fungicides |  | 318 |  |  | 305 |  |  | 1,032 |  |  | 1,072 |
Other |  | 138 |  |  | 73 |  |  | 385 |  |  | 326 |
Crop Protection |  | $ | 1,967 |  |  | $ | 1,740 |  |  | $ | 6,461 |  |  | $ | 6,256 |
|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
GEOGRAPHIC NET SALES - SEED |  | 2020 |  | 2019 |  | 2020 |  | 2019
North America 2 |  | $ | 505 |  |  | $ | 486 |  |  | $ | 4,795 |  |  | $ | 4,724 |
EMEA 3 |  | 206 |  |  | 178 |  |  | 1,468 |  |  | 1,378 |
Latin America |  | 449 |  |  | 494 |  |  | 1,117 |  |  | 1,130 |
Asia Pacific |  | 80 |  |  | 85 |  |  | 376 |  |  | 358 |
Rest of World 4 |  | 735 |  |  | 757 |  |  | 2,961 |  |  | 2,866 |
Net Sales |  | $ | 1,240 |  |  | $ | 1,243 |  |  | $ | 7,756 |  |  | $ | 7,590 |
|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
GEOGRAPHIC NET SALES - CROP PROTECTION |  | 2020 |  | 2019 |  | 2020 |  | 2019
North America 2 |  | $ | 845 |  |  | $ | 643 |  |  | $ | 2,373 |  |  | $ | 2,205 |
EMEA 3 |  | 211 |  |  | 226 |  |  | 1,374 |  |  | 1,362 |
Latin America |  | 602 |  |  | 615 |  |  | 1,688 |  |  | 1,759 |
Asia Pacific |  | 309 |  |  | 256 |  |  | 1,026 |  |  | 930 |
Rest of World 4 |  | 1,122 |  |  | 1,097 |  |  | 4,088 |  |  | 4,051 |
Net Sales |  | $ | 1,967 |  |  | $ | 1,740 |  |  | $ | 6,461 |  |  | $ | 6,256 |
1. Prior periods have been reclassified to conform to current period presentation.
2. Reflects U.S. & Canada |  |  |  |  |  |  |  |
3. Reflects Europe, Middle East, and Africa |  |  |  |  |  |  |  |
4. Reflects EMEA, Latin America, and Asia Pacific |  |  |  |  |  |  |  |

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

|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
|  | 2020 |  | 2020
|  | As Reported |  | As Reported
Net Sales (GAAP) |  | $ | 3,207 |  |  | $ | 14,217 |
Less: Impacts from Currency and Portfolio |  | (249) |  |  | (758) |
Organic Sales (Non-GAAP) |  | $ | 3,456 |  |  | $ | 14,975 |
|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
OPERATING EBITDA |  | As Reported |  | As Reported |  | As Reported |  | Pro Forma
Seed |  | $ | (47) |  |  | $ | (26) |  |  | $ | 1,208 |  |  | $ | 1,040 |
Crop Protection |  | 327 |  |  | 277 |  |  | 1,004 |  |  | 1,066 |
Corporate Expenses |  | (44) |  |  | (27) |  |  | (125) |  |  | (119) |
Operating EBITDA (Non-GAAP) |  | $ | 236 |  |  | $ | 224 |  |  | $ | 2,087 |  |  | $ | 1,987 |
|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDA |  | As Reported |  | As Reported |  | As Reported |  | Pro Forma
Income (loss) from continuing operations after income taxes (GAAP) |  | $ | 99 |  |  | $ | (42) |  |  | $ | 756 |  |  | $ | 26 |
(Benefit from) provision for income taxes on continuing operations |  | (169) |  |  | (145) |  |  | (81) |  |  | 1 |
(Loss) income from continuing operations before income taxes (GAAP) |  | (70) |  |  | (187) |  |  | 675 |  |  | 27 |
Depreciation and amortization |  | 309 |  |  | 289 |  |  | 1,177 |  |  | 1,000 |
Interest income |  | (18) |  |  | (13) |  |  | (56) |  |  | (59) |
Interest expense |  | 10 |  |  | 24 |  |  | 45 |  |  | 91 |
Exchange losses - net 1 |  | 47 |  |  | 29 |  |  | 174 |  |  | 66 |
Non-operating benefits - net 2 |  | (79) |  |  | (23) |  |  | (316) |  |  | (129) |
Significant items charge 3 |  | 37 |  |  | 105 |  |  | 388 |  |  | 991 |
Operating EBITDA (Non-GAAP) |  | $ | 236 |  |  | $ | 224 |  |  | $ | 2,087 |  |  | $ | 1,987 |

1.Refer to page A-17 for pre-tax and after tax impacts of exchange losses (gains) - net. The twelve months ended December 31, 2019, on an operating basis (Non-GAAP), excludes a $(33) exchange loss associated with the devaluation of the Argentine peso, as it is included in significant items.
2.Non-operating benefits—net consists of non-operating pension and other post-employment benefit (OPEB) (benefits) costs, tax indemnification adjustments, environmental remediation and legal costs associated with legacy EID businesses and sites. 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-11 for pre-tax and after tax impacts of significant items.

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

PRICE - VOLUME - CURRENCY ANALYSIS
REGION |  |
| Q4 2020 vs. Q4 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 221 |  | 20 | % | $ | 220 |  | 19 | % | 4 | % | 15 | % | 1 | % | — | %
EMEA | 13 |  | 3 | % | 17 |  | 4 | % | 1 | % | 3 | % | (1) | % | — | %
Latin America | (58) |  | (5) | % | 194 |  | 17 | % | 9 | % | 8 | % | (22) | % | — | %
Asia Pacific | 48 |  | 14 | % | 42 |  | 12 | % | 2 | % | 10 | % | 2 | % | — | %
Rest of World | 3 |  | — | % | 253 |  | 14 | % | 6 | % | 8 | % | (14) | % | — | %
Total | $ | 224 |  | 8 | % | $ | 473 |  | 16 | % | 6 | % | 10 | % | (8) | % | — | %
SEED |  |  |  |  |  |  |  |
| Q4 2020 vs. Q4 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 19 |  | 4 | % | $ | 18 |  | 4 | % | (5) | % | 9 | % | — | % | — | %
EMEA | 28 |  | 16 | % | 37 |  | 21 | % | 5 | % | 16 | % | (5) | % | — | %
Latin America | (45) |  | (9) | % | 63 |  | 13 | % | 4 | % | 9 | % | (22) | % | — | %
Asia Pacific | (5) |  | (6) | % | (2) |  | (2) | % | (1) | % | (1) | % | (4) | % | — | %
Rest of World | (22) |  | (3) | % | 98 |  | 13 | % | 3 | % | 10 | % | (16) | % | — | %
Total | $ | (3) |  | — | % | $ | 116 |  | 9 | % | — | % | 9 | % | (9) | % | — | %
CROP PROTECTION
| Q4 2020 vs. Q4 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 202 |  | 31 | % | $ | 202 |  | 31 | % | 11 | % | 20 | % | — | % | — | %
EMEA | (15) |  | (7) | % | (20) |  | (9) | % | (1) | % | (8) | % | 2 | % | — | %
Latin America | (13) |  | (2) | % | 131 |  | 21 | % | 14 | % | 7 | % | (23) | % | — | %
Asia Pacific | 53 |  | 21 | % | 44 |  | 17 | % | 2 | % | 15 | % | 3 | % | 1 | %
Rest of World | 25 |  | 2 | % | 155 |  | 14 | % | 8 | % | 6 | % | (12) | % | — | %
Total | $ | 227 |  | 13 | % | $ | 357 |  | 21 | % | 10 | % | 11 | % | (8) | % | — | %

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

SEED PRODUCT LINE |  |  |  |  |  |  |
| Q4 2020 vs. Q4 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Corn 2 | $ | (4) |  | — | % | $ | 103 |  | 11 | % | 2 | % | 9 | % | (11) | % | — | %
Soybeans 2 | (11) |  | (15) | % | (7) |  | (9) | % | 1 | % | (10) | % | (6) | % | — | %
Other oilseeds 2 | (2) |  | (2) | % | — |  | — | % | (16) | % | 16 | % | (2) | % | — | %
Other 2 | 14 |  | 12 | % | 20 |  | 17 | % | — | % | 17 | % | (5) | % | — | %
Total | $ | (3) |  | — | % | $ | 116 |  | 9 | % | — | % | 9 | % | (9) | % | — | %
CROP PROTECTION PRODUCT LINE
| Q4 2020 vs. Q4 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Herbicides 2 | $ | 97 |  | 11 | % | $ | 130 |  | 15 | % | 2 | % | 13 | % | (4) | % | — | %
Insecticides 2 | 52 |  | 11 | % | 95 |  | 19 | % | 9 | % | 10 | % | (8) | % | — | %
Fungicides 2 | 13 |  | 4 | % | 59 |  | 19 | % | 12 | % | 7 | % | (15) | % | — | %
Other 2 | 65 |  | 89 | % | 73 |  | 100 | % | 91 | % | 9 | % | (10) | % | (1) | %
Total | $ | 227 |  | 13 | % | $ | 357 |  | 21 | % | 10 | % | 11 | % | (8) | % | — | %

A-9
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

PRICE - VOLUME - CURRENCY ANALYSIS
REGION |  |
| Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 239 |  | 3 | % | $ | 266 |  | 4 | % | 1 | % | 3 | % | (1) | % | — | %
EMEA | 102 |  | 4 | % | $ | 212 |  | 8 | % | 2 | % | 6 | % | (4) | % | — | %
Latin America | (84) |  | (3) | % | $ | 490 |  | 17 | % | 7 | % | 10 | % | (20) | % | — | %
Asia Pacific | 114 |  | 9 | % | $ | 161 |  | 13 | % | 2 | % | 11 | % | (3) | % | (1) | %
Rest of World | 132 |  | 2 | % | 863 |  | 12 | % | 4 | % | 8 | % | (10) | % | — | %
Total | $ | 371 |  | 3 | % | $ | 1,129 |  | 8 | % | 3 | % | 5 | % | (5) | % | — | %
SEED |  |  |  |  |  |  |  |
| Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 71 |  | 2 | % | $ | 84 |  | 2 | % | — | % | 2 | % | — | % | — | %
EMEA | 90 |  | 7 | % | 163 |  | 12 | % | 4 | % | 8 | % | (5) | % | — | %
Latin America | (13) |  | (1) | % | 187 |  | 17 | % | 4 | % | 13 | % | (18) | % | — | %
Asia Pacific | 18 |  | 5 | % | 35 |  | 10 | % | 4 | % | 6 | % | (5) | % | — | %
Rest of World | 95 |  | 3 | % | 385 |  | 13 | % | 4 | % | 9 | % | (10) | % | — | %
Total | $ | 166 |  | 2 | % | $ | 469 |  | 6 | % | 1 | % | 5 | % | (4) | % | — | %
CROP PROTECTION
| Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 168 |  | 8 | % | $ | 182 |  | 8 | % | 3 | % | 5 | % | — | % | — | %
EMEA | 12 |  | 1 | % | 49 |  | 4 | % | 1 | % | 3 | % | (2) | % | (1) | %
Latin America | (71) |  | (4) | % | 303 |  | 17 | % | 9 | % | 8 | % | (21) | % | — | %
Asia Pacific | 96 |  | 10 | % | 126 |  | 14 | % | 1 | % | 13 | % | (2) | % | (2) | %
Rest of World | 37 |  | 1 | % | 478 |  | 12 | % | 5 | % | 7 | % | (10) | % | (1) | %
Total | $ | 205 |  | 3 | % | $ | 660 |  | 11 | % | 4 | % | 7 | % | (7) | % | (1) | %

A-10
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions, except per share amounts)

SEED PRODUCT LINE |  |  |  |  |  |  |
| Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Corn 2 | $ | 56 |  | 1 | % | $ | 300 |  | 6 | % | 2 | % | 4 | % | (5) | % | — | %
Soybeans 2 | 58 |  | 4 | % | 83 |  | 6 | % | 2 | % | 4 | % | (2) | % | — | %
Other oilseeds 2 | 26 |  | 4 | % | 46 |  | 8 | % | — | % | 8 | % | (4) | % | — | %
Other 2 | 26 |  | 5 | % | 40 |  | 8 | % | 3 | % | 5 | % | (3) | % | — | %
Total | $ | 166 |  | 2 | % | $ | 469 |  | 6 | % | 1 | % | 5 | % | (4) | % | — | %
CROP PROTECTION PRODUCT LINE
| Twelve Months 2020 vs. Twelve Months 2019 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Local Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Herbicides 2 | $ | 74 |  | 2 | % | $ | 241 |  | 8 | % | 1 | % | 7 | % | (5) | % | (1) | %
Insecticides 2 | 112 |  | 7 | % | 232 |  | 14 | % | 5 | % | 9 | % | (7) | % | — | %
Fungicides 2 | (40) |  | (4) | % | 105 |  | 10 | % | 5 | % | 5 | % | (12) | % | (2) | %
Other 2 | 59 |  | 18 | % | 82 |  | 25 | % | 24 | % | 1 | % | (7) | % | — | %
Total | $ | 205 |  | 3 | % | $ | 660 |  | 11 | % | 4 | % | 7 | % | (7) | % | (1) | %

1.Organic sales is defined as price and volume and excludes currency and portfolio impacts.
2.Prior periods have been reclassified to conform to current period presentation.

A-11
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)

SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX) |  |  |  |  |  |  |
| Three Months Ended December 31, |  | Twelve Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
| As Reported |  | As Reported |  | As Reported |  | Pro Forma
Seed | $ | (11) |  |  | $ | (90) |  |  | $ | (165) |  |  | $ | (304) |
Crop Protection | (11) |  |  | 1 |  |  | (162) |  |  | (23) |
Corporate | (15) |  |  | (16) |  |  | (61) |  |  | (664) |
Total significant items before income taxes | $ | (37) |  |  | $ | (105) |  |  | $ | (388) |  |  | $ | (991) |

SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS |  |  |  |  |  |  |  |
|  | Pre-tax |  | After tax 9 |  | ($ Per Share)
|  | 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
1st Quarter | As Reported |  | Pro Forma |  | As Reported |  | Pro Forma |  | As Reported |  | Pro Forma
Integration costs 1 | $ | — |  |  | $ | (100) |  |  | $ | — |  |  | $ | (16) |  |  | $ | — |  |  | $ | (0.02) |
Restructuring and asset related charges, net 2 | (70) |  |  | (61) |  |  | (57) |  |  | (53) |  |  | (0.08) |  |  | (0.07) |
Loss on divestiture 3 | (53) |  |  | (24) |  |  | (43) |  |  | (24) |  |  | (0.06) |  |  | (0.03) |
Income tax items 4 | — |  |  | — |  |  | (19) |  |  | — |  |  | (0.02) |  |  | — |
1st Quarter - Total | $ | (123) |  |  | $ | (185) |  |  | $ | (119) |  |  | $ | (93) |  |  | $ | (0.16) |  |  | $ | (0.12) |
2nd Quarter | As Reported |  | As Reported |  | As Reported |  | As Reported |  | As Reported |  | As Reported
Integration and separation costs 1 | $ | — |  |  | $ | (330) |  |  | $ | — |  |  | $ | (436) |  |  | $ | — |  |  | $ | (0.58) |
Restructuring and asset related charges, net 2 | (179) |  |  | (60) |  |  | (143) |  |  | (48) |  |  | (0.19) |  |  | (0.06) |
Amortization of inventory step up 5 | — |  |  | (52) |  |  | — |  |  | (41) |  |  | — |  |  | (0.06) |
Loss on early extinguishment of debt 6 | — |  |  | (13) |  |  | — |  |  | (10) |  |  | — |  |  | (0.01) |
Income tax items 4 | — |  |  | — |  |  | 29 |  |  | — |  |  | 0.04 |  |  | — |
2nd Quarter - Total | $ | (179) |  |  | $ | (455) |  |  | $ | (114) |  |  | $ | (535) |  |  | $ | (0.15) |  |  | $ | (0.71) |
3rd Quarter | As Reported |  | As Reported |  | As Reported |  | As Reported |  | As Reported |  | As Reported
Integration and separation costs 1 | $ | — |  |  | $ | (152) |  |  | $ | — |  |  | $ | (119) |  |  | $ | — |  |  | $ | (0.16) |
Restructuring and asset related charges, net 2 | (49) |  |  | (46) |  |  | (27) |  |  | (34) |  |  | (0.04) |  |  | (0.04) |
Amortization of inventory step up 5 | — |  |  | (15) |  |  | — |  |  | (15) |  |  | — |  |  | (0.02) |
Argentina currency devaluation 7 | — |  |  | (33) |  |  | — |  |  | (38) |  |  | — |  |  | (0.05) |
Income tax items 4 | — |  |  | — |  |  | — |  |  | 38 |  |  | — |  |  | 0.05 |
3rd Quarter - Total | $ | (49) |  |  | $ | (246) |  |  | $ | (27) |  |  | $ | (168) |  |  | $ | (0.04) |  |  | $ | (0.22) |
4th Quarter | As Reported |  | As Reported |  | As Reported |  | As Reported |  | As Reported |  | As Reported
Integration and separation costs 1 | $ | — |  |  | $ | (50) |  |  | $ | — |  |  | $ | 20 |  |  | $ | — |  |  | $ | 0.03 |
Restructuring and asset related charges, net 2 | (37) |  |  | (55) |  |  | (32) |  |  | (42) |  |  | (0.04) |  |  | (0.06) |
Income tax items 4 | — |  |  | — |  |  | 182 |  |  | 34 |  |  | 0.24 |  |  | 0.05 |
4th Quarter - Total | $ | (37) |  |  | $ | (105) |  |  | $ | 150 |  |  | $ | 12 |  |  | $ | 0.20 |  |  | $ | 0.02 |
Year-to-date Total 8 | $ | (388) |  |  | $ | (991) |  |  | $ | (110) |  |  | $ | (784) |  |  | $ | (0.15) |  |  | $ | (1.04) |

1.Integration and separation costs includes costs incurred to prepare for and close the Merger, post-Merger integration expenses, and costs incurred to prepare for the Business Separations. These costs primarily consist of financial advisory, information technology, legal, accounting, consulting and other professional advisory fees associated with the preparation and execution of these activities. For periods prior to Q2 2019, this includes only integration costs.

A-12
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
The after-tax benefit for the fourth quarter of 2019 includes a net tax benefit of $48 related to application of the U.S. Tax Reform’s foreign tax provisions.
The after-tax charge for the third quarter of 2019 includes a net tax benefit of $13 related to application of the U.S. Tax Reform’s foreign tax provisions.
The after-tax charge for the second quarter of 2019 includes a net tax charge of $(114) related to U.S. state blended tax rate changes associated with the Internal Reorganizations and a net tax charge of $(96) related to application of the U.S. Tax Reform’s foreign tax provisions.
The after-tax charge for the first quarter of 2019 includes a net tax charge of $(32) related to U.S. state blended tax rate changes associated with the Internal Reorganizations and a tax benefit of $102 related to an internal legal entity restructuring associated with the Internal Reorganizations.
2.Fourth quarter, third quarter, second quarter, and first quarter 2020 included restructuring and asset related charges of $(37), $(49), $(179) and $(70), respectively. The charge for the fourth quarter included a $(42) charge related to the Execute to Win Productivity Program, a $(1) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $6 benefit associated with the DowDuPont Synergy Program. The charge for the third quarter included a $(30) charge related to the Execute to Win Productivity Program, a $(10) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $(9) charge associated with the DowDuPont Synergy Program. The charge for the second quarter included a $(41) charge related to the Execute to Win Productivity Program and a $(138) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charge for the first quarter included a $(63) charge related to the Execute to Win Productivity Program, a $(10) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits, and a $3 asset related benefit associated with the DowDuPont Synergy Program.
The after-tax charge for the third quarter of 2020 includes a net tax benefit of $11 related to a change in estimate on the full year impact of The Act's foreign provisions.
Fourth quarter, third quarter, second quarter, and first quarter 2019 included restructuring and asset related charges of $(55), $(46), $(60) and $(61), respectively. The charge for the fourth quarter included a $(90) non-cash intangible asset impairment charge as a result of the company’s decision to accelerate the ramp up of the Enlist E3 TM trait platform in the company’s soybean portfolio mix across all brands, including Pioneer brands, over the next five years with minimal use of the Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® traits thereafter for the remainder of the Roundup Ready 2 License Agreement. This charge was partially offset by a benefit of $22 associated with the DowDuPont Cost Synergy Program and a benefit of $13 associated with the DowDuPont Agriculture Division Restructuring Program. The charge for the third quarter included a $(54) non-cash asset impairment related to certain intangible assets that primarily relate to heritage Dow AgroSciences intangibles previously acquired from Cooperativa Central de Pesquisa Agrícola's ("Coodetec"), classified as developed technology, other intangible assets and in-process research and development ("IPR&D"), partially offset by a benefit of $8 associated with the DowDuPont Cost Synergy Program. The charge for the first and second quarter is primarily related to the DowDuPont Cost Synergy Program.
3.First quarter 2020 includes a loss of $(53) included in other income - net related to the expected sale of the La Porte site, for which the company signed an agreement during the first quarter 2020.
First quarter 2019 includes a loss of $(24) included in other income - net related to DAS's sale of a joint venture related to synergy actions.
4.Fourth quarter 2020 reflects an after-tax benefit related to Swiss Tax Reform. Second quarter 2020 reflects a benefit of $29 due to an elective change in accounting method that alters the 2019 impact of the business separation on the 2017 Tax Cuts and Jobs Act's foreign tax provisions. First quarter 2020 includes an after tax charge related to the impact of a state tax valuation allowance in the U.S. based on a change in judgment about the realizability of a deferred tax asset.
Fourth quarter 2019 reflects an after-tax benefit related to the impact of the release of a tax valuation allowance recorded against the net deferred tax asset position of a Swiss legal entity.
Third quarter 2019 reflects an after-tax benefit related to Swiss Tax Reform.
5.Third quarter and second quarter 2019 includes amortization of inventory step up reflected in cost of goods sold related to the amortization of the inventory step-up in connection with the Merger.

A-13
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
6.Second quarter 2019 includes a loss on the early extinguishment of debt related to the difference between the redemption price and the par value of the Make Whole Notes and Term Loan Facility, partially offset by the write-off of unamortized step-up related to the fair value step-up of EID's debt.
7.Third quarter 2019 includes a $(33) loss included in other income - net associated with remeasuring the company’s Argentine Peso net monetary assets, resulting from an unexpected August primary election result in Argentina. Throughout the three months ended September 30, 2019, the Argentine Peso dropped approximately a third of its value against the U.S. dollar and in September of 2019, the country’s central bank announced new restrictions on foreign currency transactions. The after tax charge of $(38) includes a tax valuation allowance recorded against the net deferred tax asset position of an Argentine legal entity.
8.Earnings per share for the year may not equal the sum of quarterly earnings per share due to the changes in average share calculations.
9.Unless specifically addressed in notes above, the income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.

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

Operating Earnings Per Share (Non-GAAP) |  |  |  |  |  |  |  |
Operating earnings per share is defined as earnings per share from continuing operations – diluted, excluding non-operating benefits - net, amortization of intangibles (existing as of Separation) and significant items.
|  | Three Months Ended December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
|  | $ |  | $ |  | EPS (diluted) |  | EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP) |  | $ | 97 |  |  | $ | (45) |  |  | $ | 0.13 |  |  | $ | (0.06) |
Less: Non-operating benefits - net, after tax 1 |  | 57 |  |  | 16 |  |  | 0.08 |  |  | 0.02 |
Less: Amortization of intangibles (existing as of Separation), after tax |  | (141) |  |  | (126) |  |  | (0.19) |  |  | (0.17) |
Less: Significant items benefit, after tax |  | 150 |  |  | 12 |  |  | 0.20 |  |  | 0.02 |
Operating Earnings (Non-GAAP) |  | $ | 31 |  |  | $ | 53 |  |  | $ | 0.04 |  |  | $ | 0.07 |

|  | Twelve Months Ended December 31,
|  | 2020 |  | 2019 2 |  | 2020 |  | 2019 2
|  | $ |  | $ |  | EPS (diluted) |  | EPS (diluted)
Net income from continuing operations attributable to Corteva (GAAP) |  | $ | 736 |  |  | $ | 13 |  |  | $ | 0.98 |  |  | $ | 0.02 |
Less: Non-operating benefits - net, after tax 1 |  | 237 |  |  | 100 |  |  | 0.32 |  |  | 0.13 |
Less: Amortization of intangibles (existing as of Separation), after tax |  | (518) |  |  | (376) |  |  | (0.69) |  |  | (0.50) |
Less: Significant items charge, after tax |  | (110) |  |  | (784) |  |  | (0.15) |  |  | (1.04) |
Operating Earnings (Non-GAAP) |  | $ | 1,127 |  |  | $ | 1,073 |  |  | $ | 1.50 |  |  | $ | 1.43 |

1.Non-operating benefits—net 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 EID businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense.
2.Periods are presented on a Pro Forma Basis, prepared in accordance with Article 11 of Regulation S-X that was in effect prior to recent amendments.

A-15
Corteva, Inc.
Operating EBITDA to Operating Earnings Per Share
(Dollars in millions, except per share amounts)

Operating EBITDA to Operating Earnings Per Share
|  | Three Months Ended December 31, |  | Twelve Months Ended December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
|  | As Reported |  | As Reported |  | As Reported |  | Pro Forma
Operating EBITDA (Non-GAAP)1 |  | $ | 236 |  |  | $ | 224 |  |  | 2,087 |  |  | 1,987 |
Depreciation |  | (128) |  |  | (128) |  |  | (495) |  |  | (525) |
Interest Income |  | 18 |  |  | 13 |  |  | 56 |  |  | 59 |
Interest Expense |  | (10) |  |  | (24) |  |  | (45) |  |  | (91) |
Provision for income taxes on continuing operations before significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and exchange gains/(losses), net (Non-GAAP)1 |  | (46) |  |  | (15) |  |  | (295) |  |  | (280) |
Base income tax rate from continuing operations (Non-GAAP)1 |  | 39.7 | % |  | 17.6 | % |  | 18.4 | % |  | 19.6 | %
Exchange losses - net, after tax 2 |  | (37) |  |  | (14) |  |  | (161) |  |  | (64) |
Net income attributable to non-controlling interests |  | (2) |  |  | (3) |  |  | (20) |  |  | (13) |
Operating Earnings (Non-GAAP)1 |  | $ | 31 |  |  | $ | 53 |  |  | $ | 1,127 |  |  | $ | 1,073 |
Diluted Shares (in millions) |  | 749.7 |  |  | 749.6 |  |  | 751.2 |  |  | 749.5 |
Operating Earnings Per Share (Non-GAAP)1 |  | $ | 0.04 |  |  | $ | 0.07 |  |  | $ | 1.50 |  |  | $ | 1.43 |

1. Refer to pages A-6 through A-10 for Non-GAAP reconciliations.
2. Refer to page A-17 for pre-tax and after tax impacts of exchange gains (losses) - net.

A-16
Corteva, Inc.
Reconciliation of Non-GAAP Measures
(Dollars in millions)

Reconciliation of Base Income Tax Rate to Effective Income Tax Rate
Base income tax rate is defined as the effective income tax rate less the effect of exchange gains (losses), significant items, amortization of intangibles (existing as of Separation), and non-operating benefits - net.
| Three Months Ended December 31, |  | Twelve Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
| As Reported |  | As Reported |  | As Reported |  | Pro Forma
(Loss) income from continuing operations before income taxes (GAAP) | $ | (70) |  |  | $ | (187) |  |  | $ | 675 |  |  | $ | 27 |
Add: Significant items - charge 1 | 37 |  |  | 105 |  |  | 388 |  |  | 991 |
Non-operating benefits - net | (79) |  |  | (23) |  |  | (316) |  |  | (129) |
Amortization of intangibles (existing as of Separation) | 181 |  |  | 161 |  |  | 682 |  |  | 475 |
Less: Exchange losses, net 2,3 | (47) |  |  | (29) |  |  | (174) |  |  | (66) |
Income from continuing operations before income taxes, significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and exchange losses, net (Non-GAAP) | $ | 116 |  |  | $ | 85 |  |  | $ | 1,603 |  |  | $ | 1,430 |
(Benefit from) provision for income taxes on continuing operations (GAAP) | $ | (169) |  |  | $ | (145) |  |  | $ | (81) |  |  | $ | 1 |
Add: Tax benefits on significant items charge 1 | 187 |  |  | 117 |  |  | 278 |  |  | 207 |
Tax expenses on non-operating benefits - net | (22) |  |  | (7) |  |  | (79) |  |  | (29) |
Tax benefits on amortization of intangibles (existing as of Separation) | 40 |  |  | 35 |  |  | 164 |  |  | 99 |
Tax benefits on exchange losses, net 2 | 10 |  |  | 15 |  |  | 13 |  |  | 2 |
Provision for income taxes on continuing operations before significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and exchange losses, net (Non-GAAP) | $ | 46 |  |  | $ | 15 |  |  | $ | 295 |  |  | $ | 280 |
Effective income tax rate (GAAP) | 241.4 | % |  | 77.5 | % |  | (12.0) | % |  | 3.7 | %
Significant items, non-operating benefits, and amortization of intangibles (existing as of Separation) effect | (189.2) | % |  | (77.5) | % |  | 31.7 | % |  | 16.7 | %
Tax rate from continuing operations before significant items, non-operating benefits - net, and amortization of intangibles (existing as of Separation) (Non-GAAP) | 52.2 | % |  | — | % |  | 19.7 | % |  | 20.4 | %
Exchange losses, net effect 2 | (12.5) | % |  | 17.6 | % |  | (1.3) | % |  | (0.8) | %
Base income tax rate from continuing operations (Non-GAAP) | 39.7 | % |  | 17.6 | % |  | 18.4 | % |  | 19.6 | %
1. See Significant Items table for further detail.
2. See page A-17 for further details of exchange gains (losses). |  |  |  |  |  |  |
3. Pre-tax exchange gains (losses), net for the twelve months ended December 31, 2019, on an operating earnings basis (Non-GAAP), excludes a $(33) exchange loss associated with the devaluation of the Argentine peso as it is included within significant items.

A-17
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 December 31, |  | Twelve Months Ended December 31,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Subsidiary Monetary Position Gain (Loss) |  |  |  |  |  |  |  |
Pre-tax exchange gains (losses) |  | $ | 37 |  |  | $ | 18 |  |  | $ | (263) |  |  | $ | (8) |
Local tax (expenses) benefits |  | (10) |  |  | 4 |  |  | 34 |  |  | (11) |
Net after tax impact from subsidiary exchange gains (losses) |  | $ | 27 |  |  | $ | 22 |  |  | $ | (229) |  |  | $ | (19) |
Hedging Program (Loss) Gain |  |  |  |  |  |  |  |
Pre-tax exchange (losses) gains |  | $ | (84) |  |  | $ | (47) |  |  | $ | 89 |  |  | $ | (58) |
Tax benefits (expenses) |  | 20 |  |  | 11 |  |  | (21) |  |  | 13 |
Net after tax impact from hedging program exchange (losses) gains |  | $ | (64) |  |  | $ | (36) |  |  | $ | 68 |  |  | $ | (45) |
Total Exchange Loss |  |  |  |  |  |  |  |
Pre-tax exchange losses 1 |  | $ | (47) |  |  | $ | (29) |  |  | $ | (174) |  |  | $ | (66) |
Tax benefits |  | 10 |  |  | 15 |  |  | 13 |  |  | 2 |
Net after tax exchange losses |  | $ | (37) |  |  | $ | (14) |  |  | $ | (161) |  |  | $ | (64) |
As shown above, the "Total Exchange Loss" is the sum of the "Subsidiary Monetary Position Loss" and the "Hedging Program (Loss) Gain."
1.Pre-tax exchange (losses) gains, net for the twelve months ended December 31, 2019, on an operating earnings basis (Non-GAAP), excludes a $(33) exchange loss associated with the devaluation of the Argentine peso as it is included within significant items.

A-18
Corteva, Inc.
Article 11 Pro Forma Combined Statement of Operations
(Dollars in millions, except per share amounts)

| Twelve Months Ended December 31, 2019
| As Reported Corteva |  | Adjustments |  | Pro Forma Corteva
|  | Merger 1 |  | Debt Retirement 2 |  | Separations Related 3 |
Net sales | $ | 13,846 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 13,846 |
Cost of goods sold | 8,575 |  |  | (205) |  |  | — |  |  | 16 |  |  | 8,386 |
Research and development expense | 1,147 |  |  | — |  |  | — |  |  | — |  |  | 1,147 |
Selling, general and administrative expenses | 3,065 |  |  | — |  |  | — |  |  | 3 |  |  | 3,068 |
Amortization of intangibles | 475 |  |  | — |  |  | — |  |  | — |  |  | 475 |
Restructuring and asset related charges - net | 222 |  |  | — |  |  | — |  |  | — |  |  | 222 |
Integration and separation costs | 744 |  |  | — |  |  | — |  |  | (112) |  |  | 632 |
Other income - net | 215 |  |  | — |  |  | — |  |  | — |  |  | 215 |
Loss on early extinguishment of debt | 13 |  |  | — |  |  | — |  |  | — |  |  | 13 |
Interest expense | 136 |  |  | — |  |  | (45) |  |  | — |  |  | 91 |
(Loss) income from continuing operations before income taxes | (316) |  |  | 205 |  |  | 45 |  |  | 93 |  |  | 27 |
(Benefit from) provision for income taxes on continuing operations | (46) |  |  | 36 |  |  | 10 |  |  | 1 |  |  | 1 |
(Loss) income from continuing operations after income taxes | (270) |  |  | 169 |  |  | 35 |  |  | 92 |  |  | 26 |
Net income from continuing operations attributable to noncontrolling interests | 13 |  |  | — |  |  | — |  |  | — |  |  | 13 |
Net (loss) income from continuing operations attributable to Corteva | $ | (283) |  |  | $ | 169 |  |  | $ | 35 |  |  | $ | 92 |  |  | $ | 13 |
Basic (loss) earnings per share of common stock from continuing operations | $ | (0.38) |  |  |  |  |  |  |  |  | $ | 0.02 |
Diluted (loss) earnings per share of common stock from continuing operations | $ | (0.38) |  |  |  |  |  |  |  |  | $ | 0.02 |
Average number of shares outstanding used in earnings per share (EPS) calculation (in millions): |  |  |  |  |  |  |  |  |
Basic | 749.5 |  |  |  |  |  |  |  |  | 749.5 |
Diluted | 749.5 |  |  |  |  |  |  |  |  | 749.5 |

1.Related to the amortization of EID’s agriculture business’ inventory step-up recognized in connection with the Merger, as the incremental amortization is directly attributable to the Merger and will not have a continuing impact.
2.Represents removal of interest expense related to the debt redemptions/repayments.
3.Adjustments directly attributable to the separations and distributions of Corteva, Inc. include the following: removal of Telone® Soil Fumigant business (“Telone®”) results (as Telone® did not transfer to Corteva as part of the common control combination of DAS); impact from the distribution agreement entered into between Corteva and Dow that allows for Corteva to become the exclusive distributor of Telone® products for Dow; elimination of one-time transaction costs directly attributable to the Corteva Distribution; the impact of certain manufacturing, leasing and supply agreements entered into in connection with the Corteva Distribution; and the related tax impacts of these items.