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Short-Term Borrowings, Long-Term Debt and Available Credit Facilities | 9 Months Ended
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Sep. 30, 2019
Debt Disclosure [Abstract] |
Debt Disclosure [Text Block] | SHORT-TERM BORROWINGS, LONG-TERM DEBT AND AVAILABLE CREDIT FACILITIES The following tables summarize Corteva's short-term borrowings and finance lease obligations and long-term debt:
Short-term borrowings and finance lease obligations |  |  |
(In millions) | September 30, 2019 | December 31, 2018 | September 30, 2018
Commercial paper | $ | 2,432 |  | $ | 1,847 |  | $ | 2,518 |
Repurchase facility | 1,129 |  | — |  | 1,300 |
Other loans - various currencies | 35 |  | 19 |  | 39 |
Long-term debt payable within one year | 4 |  | 263 |  | 508 |
Finance lease obligations payable within one year | 4 |  | 25 |  | 6 |
Total short-term borrowings and finance lease obligations | $ | 3,604 |  | $ | 2,154 |  | $ | 4,371 |
The estimated fair value of the company's short-term borrowings, including interest rate financial instruments, was determined using Level 2 inputs within the fair value hierarchy. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's short-term borrowings and finance lease obligations was approximately carrying value.
Long-Term Debt |
| September 30, 2019 | December 31, 2018 | September 30, 2018
(In millions) | Amount | Weighted Average Rate | Amount | Weighted Average Rate | Amount | Weighted Average Rate
Promissory notes and debentures 1: |  |  |  |  |  |
Final maturity 2019 | $ | — |  | — | % | $ | 263 |  | 2.23 | % | $ | 508 |  | 2.23 | %
Final maturity 2020 | — |  | — | % | 2,496 |  | 2.14 | % | 3,046 |  | 2.03 | %
Final maturity 2021 | — |  | — | % | 475 |  | 2.08 | % | 1,562 |  | 2.07 | %
Final maturity 2023 | — |  | — | % | 386 |  | 2.48 | % | 1,267 |  | 2.48 | %
Final maturity 2024 and thereafter | — |  | — | % | 249 |  | 3.69 | % | 2,211 |  | 3.80 | %
Other facilities: |  |  |  |  |  |
Term loan due 2020 2 | — |  | — | % | 2,000 |  | 3.46 | % | 2,000 |  | 3.12 | %
Other loans: |  |  |  |  |  |
Foreign currency loans, various rates and maturities | 4 |  |  |  | 3 |  |  |  | 13 |  |  |
Medium-term notes, varying maturities through 2041 | 110 |  | 1.88 | % | 110 |  | 2.37 | % | 110 |  | 2.04 | %
Finance lease obligations | 6 |  |  |  | 67 |  |  |  | 9 |  |  |
Less: Unamortized debt discount and issuance costs | — |  |  |  | 2 |  |  |  | 3 |  |  |
Less: Long-term debt due within one year | 4 |  |  |  | 263 |  |  |  | 508 |  |  |
Total | $ | 116 |  |  |  | $ | 5,784 |  |  |  | $ | 10,215 |  |  |
1. | See discussion of debt redemptions/repayments that follows.
2. | The Term Loan Facility was amended in 2018 to extend the maturity date to June 2020 and, subsequently, the facility was repaid and terminated in May 2019.
There are no material principal payments of long-term debt over the next five years. The estimated fair value of the company's long-term borrowings was determined using Level 2 inputs within the fair value hierarchy. Based on quoted market prices for the same or similar issues, or on current rates offered to the company for debt of the same remaining maturities, the fair value of the company's long-term borrowings, not including long-term debt due within one year, was $115 million, $5,775 million, and $9,883 million at September 30, 2019, December 31, 2018, and September 30, 2018, respectively. Available Committed Credit Facilities The following table summarizes the company's credit facilities:
Committed and Available Credit Facilities at September 30, 2019
(In millions) | Effective Date | Committed Credit | Credit Available | Maturity Date | Interest
Revolving Credit Facility | May 2019 | $ | 3,000 |  | $ | 3,000 |  | May 2024 | Floating Rate
Revolving Credit Facility | May 2019 | 3,000 |  | 2,971 |  | May 2022 | Floating Rate
2019 Repurchase Facility | February 2019 | 1,300 |  | 171 |  | December 2019 | Floating Rate
Total Committed and Available Credit Facilities |  | $ | 7,300 |  | $ | 6,142 |  |  |
Revolving Credit Facilities In November 2018, EID entered into a $3.0 billion 5-year revolving credit facility and a $3.0 billion 3-year revolving credit facility (the “2018 Revolving Credit Facilities”). The 2018 Revolving Credit Facilities became effective May 2019 in connection with the termination of the EID $4.5 billion Term Loan Facility and the $3.0 billion Revolving Credit Facility dated May 2014. Corteva, Inc. became a party at the time of the Corteva Distribution. The 2018 Revolving Credit Facilities contain customary representations and warranties, affirmative and negative covenants and events of default that are typical for companies with similar credit ratings. Additionally, the 2018 Revolving Credit Facilities contain a financial covenant requiring that the ratio of total indebtedness to total capitalization for Corteva and its consolidated subsidiaries not exceed 0.60. Repurchase Facility In February 2019, EID entered into a new committed receivable repurchase facility of up to $1.3 billion (the "2019 Repurchase Facility") which expires in December 2019. From time to time, EID and the banks modify the monthly commitment amounts to better align with working capital requirements. Under the 2019 Repurchase Facility, EID may sell a portfolio of available and eligible outstanding customer notes receivables to participating institutions and simultaneously agree to repurchase at a future date. The 2019 Repurchase Facility is considered a secured borrowing with the customer notes receivable inclusive of those that are sold and repurchased, equal to 105 percent of the outstanding amounts borrowed utilized as collateral. Borrowings under the 2019 Repurchase Facility have an interest rate of LIBOR + 0.75 percent. As of September 30, 2019, $1,186 million of notes receivable, recorded in accounts and notes receivable - net, were pledged as collateral against outstanding borrowings under the 2019 Repurchase Facility of $1,129 million, recorded in short-term borrowings and finance lease obligations on the interim Condensed Consolidated Balance Sheet. Debt Redemptions/Repayments In July 2018, the company fully repaid $1.25 billion of 6.0 percent coupon bonds at maturity. In the fourth quarter of 2018, the company offered to purchase for cash approximately $6.2 billion of outstanding debt securities from each registered holder of the applicable series of debt securities (the “Tender Offers”). The company retired $4.4 billion aggregate principal amount of such debt securities in connection with the Tender Offers, which expired on December 11, 2018. The retirement of these debt securities was funded with cash contributions from DowDuPont. On March 22, 2019, EID issued notices of redemption in full of all of its outstanding notes (the “Make Whole Notes”) listed in the table below:
(in millions) | Amount
4.625% Notes due 2020 | $ | 474 |
3.625% Notes due 2021 | 296 |
4.250% Notes due 2021 | 163 |
2.800% Notes due 2023 | 381 |
6.500% Debentures due 2028 | 57 |
5.600% Senior Notes due 2036 | 42 |
4.900% Notes due 2041 | 48 |
4.150% Notes due 2043 | 69 |
Total | $ | 1,530 |
The Make Whole Notes were redeemed on April 22, 2019 at the make-whole redemption prices set forth in the respective Make Whole Notes. On and after the date of redemption, the Make Whole Notes were no longer deemed outstanding, interest on the Make Whole Notes ceased to accrue and all rights of the holders of the Make Whole Notes were terminated. In March 2016, EID entered into a credit agreement that provided for a 3-year, senior unsecured term loan facility in the aggregate principal amount of $4.5 billion (as amended, from time to time, the "Term Loan Facility") under which EID could make up to seven term loan borrowings and amounts repaid or prepaid were not available for subsequent borrowings. On May 2, 2019, EID terminated its Term Loan Facility and repaid the aggregate outstanding principal amount of $3 billion plus accrued and unpaid interest through and including May 1, 2019. In connection with the repayment of the Make Whole Notes and the Term Loan Facility, EID paid a total of $4.6 billion in the second quarter 2019, which included breakage fees and accrued and unpaid interest on the Make Whole Notes and Term Loan Facility. The repayment of the Make Whole Notes and Term Loan Facility was funded with cash from operations and a contribution from DowDuPont. On May 7, 2019, DowDuPont publicly announced the record date in connection with the Corteva Distribution. In connection with such announcement, EID was required to redeem $1.25 billion aggregate principal amount of 2.200% Notes due 2020 and $750 million aggregate principal amount of Floating Rate Notes due 2020 (collectively, the Special Mandatory Redemption, or “SMR Notes”) setting forth the date of redemption of the SMR Notes. On May 17, 2019 EID redeemed and paid a total of $2.0 billion, which included accrued and unpaid interest on the SMR Notes. EID funded the payment with a contribution from DowDuPont. Following the redemption, the SMR Notes are no longer outstanding and no longer bear interest, and all rights of the holders of the SMR Notes have terminated. For the nine months ended September 30, 2019, EID recorded a loss on the early extinguishment of debt of $13 million related to the difference between the redemption price and the par value of the Make Whole Notes, the Term Loan Facility, and the SMR Notes, partially offset by the write-off of unamortized step-up related to the fair value step-up of EID’s debt. Uncommitted Credit Facilities and Outstanding Letters of Credit Unused bank credit lines on uncommitted credit facilities were $401 million at September 30, 2019. These lines are available to support short-term liquidity needs and general corporate purposes, including letters of credit. Outstanding letters of credit were $100 million at September 30, 2019. These letters of credit support commitments made in the ordinary course of business.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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