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Short-Term Borrowings, Long-Term Debt and Available Credit Facilities | 9 Months Ended
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Sep. 30, 2020
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, 2020 | December 31, 2019 | September 30, 2019
Commercial paper | $ | 926 |  | $ | — |  | $ | 2,432 |
Repurchase facility | 1,175 |  | — |  | 1,129 |
Other loans - various currencies | 39 |  | 2 |  | 35 |
Long-term debt payable within one year | 1 |  | 1 |  | 4 |
Finance lease obligations payable within one year | 1 |  | 4 |  | 4 |
Total short-term borrowings and finance lease obligations | $ | 2,142 |  | $ | 7 |  | $ | 3,604 |
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. The weighted-average interest rate on short-term borrowings outstanding at September 30, 2020, December 31, 2019, and September 30, 2019 was 0.9%, 6.7% and 2.6%, respectively. The change in the weighted-average interest rate was primarily due to lower Commercial Paper and Repurchase Facility interest.
Long-Term Debt |
(In millions) | September 30, 2020 | December 31, 2019 | September 30, 2019
Amount | Weighted Average Rate | Amount | Weighted Average Rate | Amount | Weighted Average Rate
Promissory notes and debentures: |  |  |  |  |  |
Maturing in 2025 | $ | 500 |  | 1.70 | % | $ | — |  | — | % | $ | — |  | — | %
Maturing in 2030 | 500 |  | 2.30 | % | $ | — |  | — | % | $ | — |  | — | %
Other loans: |  |  |  |  |  |
Foreign currency loans, various rates and maturities | 1 |  |  | 2 |  |  | 4 |  |
Medium-term notes, varying maturities through 2041 | 109 |  | — | % | 109 |  | 1.61 | % | 110 |  | 1.88 | %
Finance lease obligations | 4 |  |  | 5 |  |  | 6 |  |
Less: Unamortized debt discount and issuance costs | 11 |  |  | — |  |  | — |  |
Less: Long-term debt due within one year | 1 |  |  | 1 |  |  | 4 |  |
Total | $ | 1,102 |  |  | $ | 115 |  |  | $ | 116 |  |
The fair value of the company’s long-term borrowings, including debt due within one year, was $1,164 million, $119 million, and $123 million as of September 30, 2020, December 31, 2019, and September 30, 2019, respectively, and was determined using quoted market prices for the same or similar issues, or current rates offered to the company for debt of the same remaining maturities (Level 2 inputs). Debt Offering In May 2020, EID issued $500 million of 1.70 percent Senior Notes due 2025 and $500 million of 2.30 percent Senior Notes due 2030 (the May 2020 Debt Offering). The proceeds of this offering are intended to be used for general corporate purposes, which may include discretionary contributions to the company’s U.S. principal pension plan and repayment of other indebtedness. Repurchase Facility In February 2020, the company entered into a new committed receivable repurchase facility of up to $1.3 billion (the "2020 Repurchase Facility") which expires in December 2020. Under the 2020 Repurchase Facility, Corteva 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 2020 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 2020 Repurchase Facility have an interest rate of LIBOR + 0.75 percent. As of September 30, 2020, $1,234 million of notes receivable, recorded in accounts and notes receivable - net, were pledged as collateral against outstanding borrowings under the 2020 Repurchase Facility of $1,175 million, recorded in short-term borrowings and finance lease obligations on the interim Condensed Consolidated Balance Sheet. 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 “Revolving Credit Facilities”). The Revolving Credit Facilities became effective May 2019. Corteva, Inc. became a party at the time of the Corteva Distribution. The Revolving Credit Facilities may serve as a substitute to the company's commercial paper program, and can be used, from time to time, for general corporate purposes including, but not limited to, the funding of seasonal working capital needs. The 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 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. In March 2020, the company drew down $500 million under the $3.0 billion 3-year revolving credit facility as a result of the volatility and increased borrowing costs of commercial paper resulting from the unstable market conditions caused by the COVID-19 pandemic and repaid that borrowing in full in June 2020. There were no additional borrowings and the unused commitments under the 3-year revolving credit facility were $3.0 billion as of September 30, 2020.

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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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