EX-99.2 3 cortevaq32021enr.htm EX-99.2
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,
| 2021 |  | 2020 |  | 2021 |  | 2020
Net sales | $ | 2,371 |  |  | $ | 1,863 |  |  | $ | 12,176 |  |  | $ | 11,010 |
Cost of goods sold | 1,558 |  |  | 1,297 |  |  | 6,988 |  |  | 6,395 |
Research and development expense | 297 |  |  | 284 |  |  | 871 |  |  | 837 |
Selling, general and administrative expenses | 672 |  |  | 597 |  |  | 2,403 |  |  | 2,319 |
Amortization of intangibles | 180 |  |  | 162 |  |  | 543 |  |  | 501 |
Restructuring and asset related charges - net | 26 |  |  | 49 |  |  | 261 |  |  | 298 |
Other income — net | 378 |  |  | 30 |  |  | 1,013 |  |  | 120 |
Interest expense | 8 |  |  | 11 |  |  | 22 |  |  | 35 |
Income (loss) from continuing operations before income taxes | 8 |  |  | (507) |  |  | 2,101 |  |  | 745 |
(Benefit from) provision for income taxes on continuing operations | (28) |  |  | (117) |  |  | 434 |  |  | 88 |
Income (loss) from continuing operations after income taxes | 36 |  |  | (390) |  |  | 1,667 |  |  | 657 |
(Loss) income from discontinued operations after income taxes | (4) |  |  | — |  |  | (59) |  |  | 1 |
Net income (loss) | 32 |  |  | (390) |  |  | 1,608 |  |  | 658 |
Net income attributable to noncontrolling interests | 2 |  |  | 2 |  |  | 8 |  |  | 18 |
Net income (loss) attributable to Corteva | $ | 30 |  |  | $ | (392) |  |  | $ | 1,600 |  |  | $ | 640 |
Basic earnings (loss) per share of common stock: |  |  |  |  |  |  |
Basic earnings (loss) per share of common stock from continuing operations | $ | 0.05 |  |  | $ | (0.52) |  |  | $ | 2.25 |  |  | $ | 0.85 |
Basic loss per share of common stock from discontinued operations | (0.01) |  |  | — |  |  | (0.08) |  |  | — |
Basic earnings (loss) per share of common stock | $ | 0.04 |  |  | $ | (0.52) |  |  | $ | 2.17 |  |  | $ | 0.85 |
Diluted earnings (loss) per share of common stock: |  |  |  |  |  |  |
Diluted earnings (loss) per share of common stock from continuing operations | $ | 0.05 |  |  | $ | (0.52) |  |  | $ | 2.23 |  |  | $ | 0.85 |
Diluted loss per share of common stock from discontinued operations | (0.01) |  |  | — |  |  | (0.08) |  |  | — |
Diluted earnings (loss) per share of common stock | $ | 0.04 |  |  | $ | (0.52) |  |  | $ | 2.15 |  |  | $ | 0.85 |
Average number of shares outstanding used in earnings (loss) per share (EPS) calculation (in millions) |  |  |  |  |  |  |
Basic | 733.8 |  | 749.5 |  | 738.1 |  | 749.5
Diluted | 739.5 |  | 749.5 |  | 744.0 |  | 752.0

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

|  | September 30, 2021 |  | December 31, 2020 |  | September 30, 2020
Assets |  |  |  |  |  |
Current assets |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,779 |  |  | $ | 3,526 |  |  | $ | 2,768 |
Marketable securities |  | 103 |  |  | 269 |  |  | 152 |
Accounts and notes receivable, net |  | 5,818 |  |  | 4,926 |  |  | 5,627 |
Inventories |  | 4,417 |  |  | 4,882 |  |  | 4,374 |
Other current assets |  | 1,029 |  |  | 1,165 |  |  | 1,167 |
Total current assets |  | 14,146 |  |  | 14,768 |  |  | 14,088 |
Investment in nonconsolidated affiliates |  | 67 |  |  | 66 |  |  | 62 |
Property, plant and equipment |  | 8,270 |  |  | 8,253 |  |  | 7,985 |
Less: Accumulated depreciation |  | 3,960 |  |  | 3,857 |  |  | 3,712 |
Net property, plant and equipment |  | 4,310 |  |  | 4,396 |  |  | 4,273 |
Goodwill |  | 10,130 |  |  | 10,269 |  |  | 10,110 |
Other intangible assets |  | 10,225 |  |  | 10,747 |  |  | 10,914 |
Deferred income taxes |  | 448 |  |  | 464 |  |  | 289 |
Other assets |  | 1,796 |  |  | 1,939 |  |  | 1,954 |
Total Assets |  | $ | 41,122 |  |  | $ | 42,649 |  |  | $ | 41,690 |
Liabilities and Equity |  |  |  |  |  |
Current liabilities |  |  |  |  |  |
Short-term borrowings and finance lease obligations |  | $ | 1,372 |  |  | $ | 3 |  |  | $ | 2,142 |
Accounts payable |  | 3,512 |  |  | 3,615 |  |  | 2,994 |
Income taxes payable |  | 95 |  |  | 123 |  |  | 168 |
Deferred revenue |  | 692 |  |  | 2,662 |  |  | 402 |
Accrued and other current liabilities |  | 2,134 |  |  | 2,145 |  |  | 2,028 |
Total current liabilities |  | 7,805 |  |  | 8,548 |  |  | 7,734 |
Long-Term Debt |  | 1,101 |  |  | 1,102 |  |  | 1,102 |
Other Noncurrent Liabilities |  |  |  |  |  |
Deferred income tax liabilities |  | 930 |  |  | 893 |  |  | 740 |
Pension and other post employment benefits - noncurrent |  | 4,583 |  |  | 5,176 |  |  | 5,904 |
Other noncurrent obligations |  | 1,724 |  |  | 1,867 |  |  | 1,864 |
Total noncurrent liabilities |  | 8,338 |  |  | 9,038 |  |  | 9,610 |
Commitments and contingent liabilities |  |  |  |  |  |
Stockholders' equity |  |  |  |  |  |
Common stock, $0.01 par value; 1,666,667,000 shares authorized; issued at September 30, 2021 - 730,267,000; December 31, 2020 - 743,458,000; and September 30, 2020 - 747,492,000 |  | 7 |  |  | 7 |  |  | 7 |
Additional paid-in capital |  | 27,712 |  |  | 27,707 |  |  | 27,895 |
Retained earnings |  | 666 |  |  | — |  |  | — |
Accumulated other comprehensive loss |  | (3,645) |  |  | (2,890) |  |  | (3,796) |
Total Corteva stockholders' equity |  | 24,740 |  |  | 24,824 |  |  | 24,106 |
Noncontrolling interests |  | 239 |  |  | 239 |  |  | 240 |
Total equity |  | 24,979 |  |  | 25,063 |  |  | 24,346 |
Total Liabilities and Equity |  | $ | 41,122 |  |  | $ | 42,649 |  |  | $ | 41,690 |

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

| Nine Months Ended September 30,
| 2021 |  | 2020
Operating activities |  |  |
Net income | $ | 1,608 |  |  | $ | 658 |
Adjustments to reconcile net income to cash used for operating activities: |  |  |
Depreciation and amortization | 926 |  |  | 868 |
Provision for (benefit from) deferred income tax | 151 |  |  | (153) |
Net periodic pension and OPEB benefit, net | (959) |  |  | (255) |
Pension and OPEB contributions | (202) |  |  | (222) |
Net (gain) loss on sales of property, businesses, consolidated companies, and investments | (1) |  |  | 29 |
Restructuring and asset related charges - net | 261 |  |  | 298 |
Other net loss | 117 |  |  | 240 |
Changes in assets and liabilities - net |  |  |
Accounts and notes receivable | (1,116) |  |  | (619) |
Inventories | 375 |  |  | 481 |
Accounts Payable | (41) |  |  | (629) |
Deferred revenue | (1,945) |  |  | (2,169) |
Other assets and liabilities | 7 |  |  | 236 |
Cash used for operating activities | (819) |  |  | (1,237) |
Investing activities |  |  |
Capital expenditures | (413) |  |  | (301) |
Proceeds from sales of property, businesses, and consolidated companies - net of cash divested | 53 |  |  | 22 |
Investments in and loans to nonconsolidated affiliates | (3) |  |  | (1) |
Purchases of investments | (147) |  |  | (656) |
Proceeds from sales and maturities of investments | 310 |  |  | 498 |
Other investing activities - net | (1) |  |  | (7) |
Cash used for investing activities | (201) |  |  | (445) |
Financing activities |  |  |
Net change in borrowings (less than 90 days) | 949 |  |  | 1,582 |
Proceeds from debt | 419 |  |  | 2,434 |
Payments on debt | (1) |  |  | (879) |
Repurchase of common stock | (750) |  |  | (83) |
Proceeds from exercise of stock options | 71 |  |  | 19 |
Dividends paid to stockholders | (295) |  |  | (291) |
Payments for acquisition of subsidiary's interest from the non-controlling interest | — |  |  | (60) |
Other financing activities | (28) |  |  | (27) |
Cash provided by financing activities | 365 |  |  | 2,695 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash equivalents | (78) |  |  | (64) |
(Decrease)/increase in cash, cash equivalents and restricted cash equivalents | (733) |  |  | 949 |
Cash, cash equivalents and restricted cash equivalents at beginning of period | 3,873 |  |  | 2,173 |
Cash, cash equivalents and restricted cash equivalents at end of period | $ | 3,140 |  |  | $ | 3,122 |

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 - SEED |  | 2021 |  | 2020 |  | 2021 |  | 2020
Corn |  | $ | 437 |  |  | $ | 303 |  |  | $ | 4,505 |  |  | $ | 4,224 |
Soybean |  | 157 |  |  | 116 |  |  | 1,494 |  |  | 1,382 |
Other oilseeds |  | 94 |  |  | 62 |  |  | 661 |  |  | 529 |
Other |  | 50 |  |  | 42 |  |  | 350 |  |  | 381 |
Seed |  | $ | 738 |  |  | $ | 523 |  |  | $ | 7,010 |  |  | $ | 6,516 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
SEGMENT NET SALES - CROP PROTECTION |  | 2021 |  | 2020 |  | 2021 |  | 2020
Herbicides |  | $ | 782 |  |  | $ | 583 |  |  | $ | 2,737 |  |  | $ | 2,315 |
Insecticides |  | 416 |  |  | 395 |  |  | 1,261 |  |  | 1,218 |
Fungicides |  | 339 |  |  | 261 |  |  | 911 |  |  | 714 |
Other |  | 96 |  |  | 101 |  |  | 257 |  |  | 247 |
Crop Protection |  | $ | 1,633 |  |  | $ | 1,340 |  |  | $ | 5,166 |  |  | $ | 4,494 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
GEOGRAPHIC NET SALES - SEED |  | 2021 |  | 2020 |  | 2021 |  | 2020
North America 1 |  | $ | 168 |  |  | $ | 97 |  |  | $ | 4,482 |  |  | $ | 4,290 |
EMEA 2 |  | 153 |  |  | 117 |  |  | 1,398 |  |  | 1,262 |
Latin America |  | 334 |  |  | 246 |  |  | 842 |  |  | 668 |
Asia Pacific |  | 83 |  |  | 63 |  |  | 288 |  |  | 296 |
Rest of World 3 |  | 570 |  |  | 426 |  |  | 2,528 |  |  | 2,226 |
Net Sales |  | $ | 738 |  |  | $ | 523 |  |  | $ | 7,010 |  |  | $ | 6,516 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
GEOGRAPHIC NET SALES - CROP PROTECTION |  | 2021 |  | 2020 |  | 2021 |  | 2020
North America 1 |  | $ | 422 |  |  | $ | 390 |  |  | $ | 1,693 |  |  | $ | 1,528 |
EMEA 2 |  | 237 |  |  | 198 |  |  | 1,304 |  |  | 1,163 |
Latin America |  | 763 |  |  | 559 |  |  | 1,361 |  |  | 1,086 |
Asia Pacific |  | 211 |  |  | 193 |  |  | 808 |  |  | 717 |
Rest of World 3 |  | 1,211 |  |  | 950 |  |  | 3,473 |  |  | 2,966 |
Net Sales |  | $ | 1,633 |  |  | $ | 1,340 |  |  | $ | 5,166 |  |  | $ | 4,494 |
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,
|  | 2021 |  | 2021
Net Sales (GAAP) |  | $ | 2,371 |  |  | $ | 12,176 |
Less: Impacts from Currency and Portfolio |  | 57 |  |  | 162 |
Organic Sales (Non-GAAP) |  | $ | 2,314 |  |  | $ | 12,014 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
OPERATING EBITDA |  | 2021 |  | 2020 |  | 2021 |  | 2020
Seed |  | $ | (217) |  |  | $ | (282) |  |  | $ | 1,523 |  |  | $ | 1,255 |
Crop Protection |  | 206 |  |  | 130 |  |  | 897 |  |  | 677 |
Corporate Expenses |  | (40) |  |  | (27) |  |  | (106) |  |  | (81) |
Operating EBITDA (Non-GAAP) |  | $ | (51) |  |  | $ | (179) |  |  | $ | 2,314 |  |  | $ | 1,851 |
RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO OPERATING EBITDA |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Income (loss) from continuing operations after income taxes (GAAP) |  | $ | 36 |  |  | $ | (390) |  |  | $ | 1,667 |  |  | $ | 657 |
(Benefit from) provision for income taxes on continuing operations |  | (28) |  |  | (117) |  |  | 434 |  |  | 88 |
Income (loss) from continuing operations before income taxes (GAAP) |  | 8 |  |  | (507) |  |  | 2,101 |  |  | 745 |
Depreciation and amortization |  | 309 |  |  | 285 |  |  | 926 |  |  | 868 |
Interest income |  | (19) |  |  | (11) |  |  | (58) |  |  | (38) |
Interest expense |  | 8 |  |  | 11 |  |  | 22 |  |  | 35 |
Exchange (gains) losses - net 1 |  | (2) |  |  | 67 |  |  | 47 |  |  | 127 |
Non-operating benefits - net 2 |  | (315) |  |  | (73) |  |  | (941) |  |  | (237) |
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges 3 |  | (19) |  |  |  |  | 3 |  |  |
Significant items (benefit) charge 4 |  | (21) |  |  | 49 |  |  | 214 |  |  | 351 |
Operating EBITDA (Non-GAAP) |  | $ | (51) |  |  | $ | (179) |  |  | $ | 2,314 |  |  | $ | 1,851 |

1.Refer to page A-15 for pre-tax and after tax impacts of exchange losses - net.
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.Effective January 1, 2021, on a prospective basis, the company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and nine months ended September 30, 2020, the unrealized mark-to-market (loss) gain was $(8) million and $19 million, respectively.
4.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 2021 vs. Q3 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 103 |  | 21 | % | $ | 99 |  | 20 | % | 9 | % | 11 | % | 1 | % | — | %
EMEA | 75 |  | 24 | % | 60 |  | 19 | % | 2 | % | 17 | % | 5 | % | — | %
Latin America | 292 |  | 36 | % | 252 |  | 31 | % | 11 | % | 20 | % | 5 | % | — | %
Asia Pacific | 38 |  | 15 | % | 40 |  | 16 | % | — | % | 16 | % | 1 | % | (2) | %
Rest of World | 405 |  | 29 | % | 352 |  | 26 | % | 7 | % | 19 | % | 4 | % | (1) | %
Total | $ | 508 |  | 27 | % | $ | 451 |  | 24 | % | 7 | % | 17 | % | 3 | % | — | %
SEED |  |  |  |  |  |  |  |
| Q3 2021 vs. Q3 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 71 |  | 73 | % | $ | 69 |  | 71 | % | 38 | % | 33 | % | 2 | % | — | %
EMEA | 36 |  | 31 | % | 26 |  | 22 | % | 4 | % | 18 | % | 9 | % | — | %
Latin America | 88 |  | 36 | % | 79 |  | 32 | % | 23 | % | 9 | % | 4 | % | — | %
Asia Pacific | 20 |  | 32 | % | 20 |  | 32 | % | (1) | % | 33 | % | — | % | — | %
Rest of World | 144 |  | 34 | % | 125 |  | 30 | % | 15 | % | 15 | % | 4 | % | — | %
Total | $ | 215 |  | 41 | % | $ | 194 |  | 37 | % | 19 | % | 18 | % | 4 | % | — | %
CROP PROTECTION
| Q3 2021 vs. Q3 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 32 |  | 8 | % | $ | 30 |  | 8 | % | 2 | % | 6 | % | — | % | — | %
EMEA | 39 |  | 20 | % | 34 |  | 17 | % | 1 | % | 16 | % | 3 | % | — | %
Latin America | 204 |  | 36 | % | 173 |  | 31 | % | 5 | % | 26 | % | 5 | % | — | %
Asia Pacific | 18 |  | 9 | % | 20 |  | 10 | % | — | % | 10 | % | 2 | % | (3) | %
Rest of World | 261 |  | 27 | % | 227 |  | 24 | % | 3 | % | 21 | % | 4 | % | (1) | %
Total | $ | 293 |  | 22 | % | $ | 257 |  | 19 | % | 3 | % | 16 | % | 3 | % | — | %

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

SEED PRODUCT LINE |  |  |  |  |  |  |
| Q3 2021 vs. Q3 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Corn | $ | 134 |  | 44 | % | $ | 120 |  | 40 | % | 23 | % | 17 | % | 4 | % | — | %
Soybeans | 41 |  | 35 | % | 36 |  | 31 | % | 20 | % | 11 | % | 4 | % | — | %
Other oilseeds | 32 |  | 52 | % | 31 |  | 50 | % | 6 | % | 44 | % | 2 | % | — | %
Other | 8 |  | 19 | % | 7 |  | 17 | % | 8 | % | 9 | % | 2 | % | — | %
Total | $ | 215 |  | 41 | % | $ | 194 |  | 37 | % | 19 | % | 18 | % | 4 | % | — | %
CROP PROTECTION PRODUCT LINE
| Q3 2021 vs. Q3 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Herbicides | $ | 199 |  | 34 | % | $ | 183 |  | 31 | % | 7 | % | 24 | % | 3 | % | — | %
Insecticides | 21 |  | 5 | % | 11 |  | 3 | % | — | % | 3 | % | 2 | % | — | %
Fungicides | 78 |  | 30 | % | 69 |  | 26 | % | 3 | % | 23 | % | 5 | % | (1) | %
Other | (5) |  | (5) | % | (6) |  | (6) | % | (10) | % | 4 | % | 1 | % | — | %
Total | $ | 293 |  | 22 | % | $ | 257 |  | 19 | % | 3 | % | 16 | % | 3 | % | — | %

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

PRICE - VOLUME - CURRENCY ANALYSIS
REGION |  |
| Nine Months 2021 vs. Nine Months 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 357 |  | 6 | % | $ | 296 |  | 5 | % | 1 | % | 4 | % | 1 | % | — | %
EMEA | 277 |  | 11 | % | 169 |  | 7 | % | 4 | % | 3 | % | 4 | % | — | %
Latin America | 449 |  | 26 | % | 473 |  | 27 | % | 10 | % | 17 | % | (1) | % | — | %
Asia Pacific | 83 |  | 8 | % | 66 |  | 7 | % | 2 | % | 5 | % | 3 | % | (2) | %
Rest of World | 809 |  | 16 | % | 708 |  | 14 | % | 5 | % | 9 | % | 2 | % | — | %
Total | $ | 1,166 |  | 11 | % | $ | 1,004 |  | 9 | % | 3 | % | 6 | % | 2 | % | — | %
SEED |  |  |  |  |  |  |  |
| Nine Months 2021 vs. Nine Months 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 192 |  | 4 | % | $ | 148 |  | 3 | % | — | % | 3 | % | 1 | % | — | %
EMEA | 136 |  | 11 | % | 97 |  | 8 | % | 5 | % | 3 | % | 3 | % | — | %
Latin America | 174 |  | 26 | % | 203 |  | 30 | % | 14 | % | 16 | % | (4) | % | — | %
Asia Pacific | (8) |  | (3) | % | (11) |  | (4) | % | 1 | % | (5) | % | 1 | % | — | %
Rest of World | 302 |  | 14 | % | 289 |  | 13 | % | 7 | % | 6 | % | 1 | % | — | %
Total | $ | 494 |  | 8 | % | $ | 437 |  | 7 | % | 3 | % | 4 | % | 1 | % | — | %
CROP PROTECTION
| Nine Months 2021 vs. Nine Months 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
North America | $ | 165 |  | 11 | % | $ | 148 |  | 10 | % | 3 | % | 7 | % | 1 | % | — | %
EMEA | 141 |  | 12 | % | 72 |  | 6 | % | 2 | % | 4 | % | 6 | % | — | %
Latin America | 275 |  | 25 | % | 270 |  | 25 | % | 7 | % | 18 | % | — | % | — | %
Asia Pacific | 91 |  | 13 | % | 77 |  | 11 | % | 2 | % | 9 | % | 5 | % | (3) | %
Rest of World | 507 |  | 17 | % | 419 |  | 14 | % | 4 | % | 10 | % | 4 | % | (1) | %
Total | $ | 672 |  | 15 | % | $ | 567 |  | 13 | % | 4 | % | 9 | % | 3 | % | (1) | %

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

SEED PRODUCT LINE |  |  |  |  |  |  |
| Nine Months 2021 vs. Nine Months 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Corn | $ | 281 |  | 7 | % | $ | 259 |  | 6 | % | 4 | % | 2 | % | 1 | % | — | %
Soybeans | 112 |  | 8 | % | 95 |  | 7 | % | — | % | 7 | % | 1 | % | — | %
Other oilseeds | 132 |  | 25 | % | 117 |  | 22 | % | 4 | % | 18 | % | 3 | % | — | %
Other | (31) |  | (8) | % | (34) |  | (9) | % | (4) | % | (5) | % | 1 | % | — | %
Total | $ | 494 |  | 8 | % | $ | 437 |  | 7 | % | 3 | % | 4 | % | 1 | % | — | %
CROP PROTECTION PRODUCT LINE
| Nine Months 2021 vs. Nine Months 2020 | Percent Change Due To:
| Net Sales Change (GAAP) | Organic Change 1 (Non-GAAP) | Price & |  |  | Portfolio /
| $ | % | $ | % | Product Mix | Volume | Currency | Other
Herbicides | $ | 422 |  | 18 | % | $ | 349 |  | 15 | % | 4 | % | 11 | % | 3 | % | — | %
Insecticides | 43 |  | 4 | % | 24 |  | 2 | % | 3 | % | (1) | % | 2 | % | — | %
Fungicides | 197 |  | 28 | % | 184 |  | 26 | % | 4 | % | 22 | % | 5 | % | (3) | %
Other | 10 |  | 4 | % | 10 |  | 4 | % | (3) | % | 7 | % | — | % | — | %
Total | $ | 672 |  | 15 | % | $ | 567 |  | 13 | % | 4 | % | 9 | % | 3 | % | (1) | %

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

A-10
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)

SIGNIFICANT ITEMS BY SEGMENT (PRE-TAX) |  |  |  |  |  |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Seed | $ | 38 |  |  | $ | (9) |  |  | $ | (98) |  |  | $ | (154) |
Crop Protection | (8) |  |  | (40) |  |  | (51) |  |  | (151) |
Corporate | (9) |  |  | — |  |  | (65) |  |  | (46) |
Total significant items before income taxes | $ | 21 |  |  | $ | (49) |  |  | $ | (214) |  |  | $ | (351) |

SIGNIFICANT ITEMS - PRE-TAX, AFTER TAX, AND EPS IMPACTS |  |  |  |  |  |  |  |
|  | Pre-tax |  | After tax 6 |  | ($ Per Share)
|  | 2021 |  | 2020 |  | 2021 |  | 2020 |  | 2021 |  | 2020
1st Quarter |  |  |  |  |  |  |  |  |  |  |
Restructuring and asset related charges, net 1 | $ | (100) |  |  | $ | (70) |  |  | $ | (77) |  |  | $ | (57) |  |  | $ | (0.10) |  |  | $ | (0.08) |
Loss on divestiture 2 | — |  |  | (53) |  |  | — |  |  | (43) |  |  | — |  |  | (0.06) |
Income tax items 3 | — |  |  | — |  |  | — |  |  | (19) |  |  | — |  |  | (0.02) |
1st Quarter — Total | $ | (100) |  |  | $ | (123) |  |  | $ | (77) |  |  | $ | (119) |  |  | $ | (0.10) |  |  | $ | (0.16) |
2nd Quarter |  |  |  |  |  |  |  |  |  |  |
Restructuring and asset related charges, net 1 | $ | (135) |  |  | $ | (179) |  |  | $ | (107) |  |  | $ | (143) |  |  | $ | (0.14) |  |  | $ | (0.19) |
Income tax items 3 | — |  |  | — |  |  | — |  |  | 29 |  |  | — |  |  | 0.04 |
2nd Quarter — Total | $ | (135) |  |  | $ | (179) |  |  | $ | (107) |  |  | $ | (114) |  |  | $ | (0.14) |  |  | $ | (0.15) |
3rd Quarter |  |  |  |  |  |  |  |  |  |  |
Restructuring and asset related charges, net 1 | $ | (26) |  |  | $ | (49) |  |  | $ | (18) |  |  | $ | (27) |  |  | $ | (0.03) |  |  | $ | (0.04) |
Equity securities mark-to-market gain 4 | 47 |  |  | — |  |  | 35 |  |  | — |  |  | 0.05 |  |  | — |
3rd Quarter - Total | $ | 21 |  |  | $ | (49) |  |  | $ | 17 |  |  | $ | (27) |  |  | $ | 0.02 |  |  | $ | (0.04) |
Year-to-date Total 5 | $ | (214) |  |  | $ | (351) |  |  | $ | (167) |  |  | $ | (260) |  |  | $ | (0.22) |  |  | $ | (0.35) |

1.Third quarter, second quarter, and first quarter 2021 included restructuring and asset related benefits (charges) of $(26), $(135) and $(100), respectively. The charges for the third quarter primarily relate to a $(21) charge associated with the 2021 Restructuring Actions and a $(5) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charges for the second quarter primarily relate to a $(23) charge associated with the 2021 Restructuring Actions and a $(112) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. The charges for the first quarter primarily relate to a $(89) charge associated with the 2021 Restructuring Actions and a $(7) charge related to non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits.
Third quarter, second quarter and first quarter 2020 included restructuring and asset related charges of $(49), $(179) and $(70), respectively. 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.
2.First quarter 2020 included a loss of $(53) included in other income - net related to the sale of the La Porte site, for which the company signed an agreement during the first quarter 2020, and closed during the first quarter of 2021.

A-11
Corteva, Inc.
Significant Items
(Dollars in millions, except per share amounts)
3.Second quarter 2020 reflected a benefit of $29 due to an elective change in accounting method that altered the 2019 impact of the business separation on the 2017 Tax Cuts and Jobs Act's foreign tax provisions. First quarter 2020 included 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.
4.Third quarter 2021 included a benefit relating to a $47 mark-to-market gain on equity securities.
5.Earnings per share for the year may not equal the sum of quarterly earnings per share due to the changes in average share calculations.
6.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-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 - net, 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,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
|  | $ |  | $ |  | EPS (diluted) |  | EPS (diluted)
Net income (loss) from continuing operations attributable to Corteva (GAAP) |  | $ | 34 |  |  | $ | (392) |  |  | $ | 0.05 |  |  | $ | (0.52) |
Less: Non-operating benefits - net, after tax 1 |  | 242 |  |  | 56 |  |  | 0.33 |  | 0.08 |
Less: Amortization of intangibles (existing as of Separation), after tax |  | (140) |  |  | (126) |  |  | (0.18) |  |  | (0.17) |
Less: Mark-to-market gains on certain foreign currency contracts not designated as hedges, after tax 2 |  | 15 |  |  |  |  | 0.02 |  |  |
Less: Significant items benefit (charge), after tax |  | 17 |  |  | (27) |  |  | 0.02 |  |  | (0.04) |
Operating Loss (Non-GAAP) |  | $ | (100) |  |  | $ | (295) |  |  | $ | (0.14) |  |  | $ | (0.39) |
|  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
|  | $ |  | $ |  | EPS (diluted) |  | EPS (diluted)
Net income from continuing operations attributable to Corteva (GAAP) |  | $ | 1,659 |  |  | $ | 639 |  |  | $ | 2.23 |  |  | $ | 0.85 |
Less: Non-operating benefits - net, after tax 1 |  | 716 |  |  | 180 |  |  | 0.96 |  |  | 0.24 |
Less: Amortization of intangibles (existing as of Separation), after tax |  | (423) |  |  | (377) |  |  | (0.57) |  |  | (0.50) |
Less: Mark-to-market losses on certain foreign currency contracts not designated as hedges, after tax 2 |  | (2) |  |  |  |  | — |  |  |
Less: Significant items charge, after tax |  | (167) |  |  | (260) |  |  | (0.22) |  |  | (0.35) |
Operating Earnings (Non-GAAP) |  | $ | 1,535 |  |  | $ | 1,096 |  |  | $ | 2.06 |  |  | $ | 1.46 |

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.Effective January 1, 2021, on a prospective basis, the company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and nine months ended September 30, 2020, the unrealized mark-to-market (loss) gain was $(8) million and $19 million, respectively.

A-13
Corteva, Inc.
Operating EBITDA to Operating Earnings 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,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Operating EBITDA (Non-GAAP)1 |  | $ | (51) |  |  | $ | (179) |  |  | $ | 2,314 |  |  | $ | 1,851 |
Depreciation |  | (129) |  |  | (123) |  |  | (383) |  |  | (367) |
Interest Income |  | 19 |  |  | 11 |  |  | 58 |  |  | 38 |
Interest Expense |  | (8) |  |  | (11) |  |  | (22) |  |  | (35) |
Benefit from (provision for) income taxes on continuing operations before significant items, non-operating benefits - net, 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), net (Non-GAAP)1 |  | 74 |  |  | 58 |  |  | (366) |  |  | (249) |
Base income tax rate from continuing operations (Non-GAAP)1 |  | 43.8 | % |  | 19.2 | % |  | 18.6 | % |  | 16.7 | %
Exchange losses - net, after tax 2 |  | (3) |  |  | (49) |  |  | (58) |  |  | (124) |
Net (income) loss attributable to non-controlling interests |  | (2) |  |  | (2) |  |  | (8) |  |  | (18) |
Operating (Loss) Earnings (Non-GAAP)1 |  | $ | (100) |  |  | $ | (295) |  |  | $ | 1,535 |  |  | $ | 1,096 |
Diluted Shares (in millions) |  | 739.5 |  |  | 749.5 |  |  | 744.0 |  |  | 752.0 |
Operating (Loss) Earnings Per Share (Non-GAAP)1 |  | $ | (0.14) |  |  | $ | (0.39) |  |  | $ | 2.06 |  |  | $ | 1.46 |

1. Refer to pages A-5 through A-9, A-12 and A-14 for Non-GAAP reconciliations.
2. Refer to page A-15 for pre-tax and after tax impacts of exchange (losses) gains - net.

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 (losses) gains, 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 - net.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Income (loss) from continuing operations before income taxes (GAAP) | $ | 8 |  |  | $ | (507) |  |  | $ | 2,101 |  |  | $ | 745 |
Add: Significant items - (benefit) charge 1 | (21) |  |  | 49 |  |  | 214 |  |  | 351 |
Non-operating benefits - net | (315) |  |  | (73) |  |  | (941) |  |  | (237) |
Amortization of intangibles (existing as of Separation) | 180 |  |  | 162 |  |  | 543 |  |  | 501 |
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges 2 | (19) |  |  |  |  | 3 |  |  |
Less: Exchange gains (losses), net 3 | 2 |  |  | (67) |  |  | (47) |  |  | (127) |
(Loss) income from continuing operations before income taxes, significant items, non-operating benefits - net, 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), net (Non-GAAP) | $ | (169) |  |  | $ | (302) |  |  | $ | 1,967 |  |  | $ | 1,487 |
(Benefit from) provision for income taxes on continuing operations (GAAP) | $ | (28) |  |  | $ | (117) |  |  | $ | 434 |  |  | $ | 88 |
Add: Tax (expenses) benefits on significant items charge 1 | (4) |  |  | 22 |  |  | 47 |  |  | 91 |
Tax expenses on non-operating benefits - net | (73) |  |  | (17) |  |  | (225) |  |  | (57) |
Tax benefits on amortization of intangibles (existing as of Separation) | 40 |  |  | 36 |  |  | 120 |  |  | 124 |
Tax (expenses) benefits on mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges 2 | (4) |  |  |  |  | 1 |  |  |
Tax (expenses) benefits on exchange gains (losses), net 3 | (5) |  |  | 18 |  |  | (11) |  |  | 3 |
(Benefit from) provision for income taxes on continuing operations before significant items, non-operating benefits - net, 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), net (Non-GAAP) | $ | (74) |  |  | $ | (58) |  |  | $ | 366 |  |  | $ | 249 |
Effective income tax rate (GAAP) | (350.0) | % |  | 23.1 | % |  | 20.7 | % |  | 11.8 | %
Significant items, non-operating benefits, amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges effect | 393.9 | % |  | (2.5) | % |  | (1.1) | % |  | 6.3 | %
Tax rate from continuing operations before significant items, non-operating benefits - net, amortization of intangibles (existing as of Separation), and mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges | 43.9 | % |  | 20.6 | % |  | 19.6 | % |  | 18.1 | %
Exchange gains (losses), net effect 3 | (0.1) | % |  | (1.4) | % |  | (1.0) | % |  | (1.4) | %
Base income tax rate from continuing operations (Non-GAAP) | 43.8 | % |  | 19.2 | % |  | 18.6 | % |  | 16.7 | %
1. See Significant Items table for further detail.
2. Effective January 1, 2021, on a prospective basis, the company excludes net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting. For the three and nine months ended September 30, 2020, the unrealized mark-to-market (loss) gain was $(8) million and $19 million, respectively.
3. See page A-15 for further details of exchange (losses) gains.

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 (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 September 30, |  | Nine Months Ended September 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Subsidiary Monetary Position Loss |  |  |  |  |  |  |  |
Pre-tax exchange losses |  | $ | (32) |  |  | $ | (61) |  |  | $ | (47) |  |  | $ | (300) |
Local tax benefits (expenses) |  | 3 |  |  | 16 |  |  | (11) |  |  | 44 |
Net after tax impact from subsidiary exchange losses |  | $ | (29) |  |  | $ | (45) |  |  | $ | (58) |  |  | $ | (256) |
Hedging Program Gain (Loss) |  |  |  |  |  |  |  |
Pre-tax exchange gains (losses) |  | $ | 34 |  |  | $ | (6) |  |  | $ | — |  |  | $ | 173 |
Tax (expenses) benefits |  | (8) |  |  | 2 |  |  | — |  |  | (41) |
Net after tax impact from hedging program exchange gains (losses) |  | $ | 26 |  |  | $ | (4) |  |  | $ | — |  |  | $ | 132 |
Total Exchange Loss |  |  |  |  |  |  |  |
Pre-tax exchange gains (losses) |  | $ | 2 |  |  | $ | (67) |  |  | $ | (47) |  |  | $ | (127) |
Tax (expenses) benefits |  | (5) |  |  | 18 |  |  | (11) |  |  | 3 |
Net after tax exchange losses |  | $ | (3) |  |  | $ | (49) |  |  | $ | (58) |  |  | $ | (124) |
As shown above, the "Total Exchange Loss" is the sum of the "Subsidiary Monetary Position Loss" and the "Hedging Program Gain (Loss)."