XML 38 R16.htm IDEA: XBRL DOCUMENT
v3.20.4

Restructuring and Asset Related Charges | 12 Months Ended
--- | ---
Dec. 31, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING AND ASSET RELATED CHARGES - NET Execute to Win Productivity Program During the first quarter of 2020, Corteva approved restructuring actions designed to improve productivity through optimizing certain operational and organizational structures primarily related to the Execute to Win Productivity Program. The company recorded net pre-tax restructuring charges in 2020 under the Execute to Win Program, as disclosed in the tables below. Future cash payments related to this charge are anticipated to be $77 million, primarily related to the payment of severance and related benefits and asset retirement obligations. The company does not anticipate any additional material charges from the Execute to Win Program as actions associated with this charge are substantially complete. The Execute to Win Productivity Program charges related to the segments, as well as corporate expenses, were as follows:
(In millions) | For the Year Ended December 31, 2020
Seed | $ | 15 |
Crop Protection | 98 |
Corporate expenses | 63 |
Total | $ | 176 |
The below is a summary of charges incurred related to the Execute to Win Productivity Program for the year ended December 31, 2020:
(In millions) | For the Year Ended December 31, 2020
Severance and related benefit costs - net | $ | 63 |
Asset related charges | 113 |
Total restructuring and asset related charges - net | $ | 176 |
A reconciliation of the December 31, 2019 to the December 31, 2020 liability balances related to the Execute to Win Productivity Program is summarized below:
(In millions) | Severance and Related Benefit (Credits) Costs | Asset Related Charges | Total
Balance at December 31, 2019 | $ | — |  | $ | — |  | $ | — |
Charges to income from continuing operations for the year ended December 31, 2020 | 63 |  | 113 |  | 176 |
Payments | (10) |  | (5) |  | (15) |
Asset write-offs | — |  | (105) |  | (105) |
Balance at December 31, 2020 | $ | 53 |  | $ | 3 |  | $ | 56 |
In addition to the above, the company has recorded asset retirement obligations of $21 million as of December 31, 2020. The asset retirement obligations relate to the company’s required demolition and removal for buildings and equipment, primarily at third party leased sites and will be recognized as asset related charges over the remaining useful lives of the related assets. The company’s leases require these assets be removed from leased land within 12-24 months of operations being ceased. The company ceased substantially all operations in 2020 and the assets are expected to be removed within the contractual timeframe. DowDuPont Cost Synergy Program In September and November 2017, DowDuPont and EID approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the “Synergy Program”), adopted at the time by the DowDuPont Board of Directors. The Synergy Program was designed to integrate and optimize the organization following the Merger and in preparation for the Business Separations. The company recorded net pre-tax restructuring charges of $845 million from inception-to-date under the Synergy Program, consisting of severance and related benefit costs of $317 million, contract termination costs of $193 million, and asset related charges of $335 million. Actions associated with the Synergy Program, including employee separations, were substantially complete by the end of 2019. The Synergy Program net charges (benefits) related to the segments, as well as corporate expenses, were as follows:
| For the Year Ended December 31,
(In millions) | 2020 | 2019 | 2018
Seed | $ | (9) |  | $ | 66 |  | $ | 237 |
Crop Protection | 11 |  | 27 |  | 57 |
Corporate expenses | (2) |  | (1) |  | 190 |
Total | $ | — |  | $ | 92 |  | $ | 484 |
The below is a summary of net charges (benefits) incurred related to the Synergy Program for the years ended December 31, 2020, 2019 and 2018:
| For the Year Ended December 31,
(In millions) | 2020 | 2019 | 2018
Severance and related benefit (credits) costs - net | $ | (2) |  | $ | (7) |  | $ | 191 |
Contract termination charges | — |  | 69 |  | 84 |
Asset related charges | 2 |  | 30 |  | 209 |
Total restructuring and asset related charges - net | $ | — |  | $ | 92 |  | $ | 484 |
Account balances and activity for the Synergy Program are summarized below:
(In millions) | Severance and Related Benefit (Credits) Costs | Costs Associated with Exit and Disposal Activities 1 | Asset Related Charges | Total
Balance at December 31, 2019 | $ | 29 |  | $ | 40 |  | $ | — |  | $ | 69 |
(Benefits) charges to income from continuing operations for the year ended December 31, 2020 | (2) |  | — |  | 5 |  | 3 |
Payments | (19) |  | (10) |  | 2 |  | (27) |
Asset write-offs | — |  | — |  | (7) |  | (7) |
Balance at December 31, 2020 | $ | 8 |  | $ | 30 |  | $ | — |  | $ | 38 |
1.Relates primarily to contract terminations charges. DowDuPont Agriculture Division Restructuring Program During the fourth quarter of 2018 and in connection with the ongoing integration activities, DowDuPont approved restructuring actions to simplify and optimize certain organizational structures in preparation for the Business Separations. The company recorded net pre-tax restructuring charges, from inception-to-date, as disclosed in the tables below. The actions related to this program were completed in 2019. The DowDuPont Agriculture Division Restructuring Program (benefits) charges related to the segments, as well as corporate expenses, were as follows:
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018
Seed | $ | 3 |  | $ | 5 |
Crop Protection | (4) |  | 1 |
Corporate expenses | (13) |  | 78 |
Total | $ | (14) |  | $ | 84 |
The below is a summary of net (benefits) charges incurred related to the DowDuPont Agriculture Division Restructuring Program for the years ended December 31, 2019 and 2018:
(In millions) | For the Year Ended December 31, 2019 | For the Year Ended December 31, 2018
Severance and related benefit (credits) costs - net | $ | (17) |  | $ | 78 |
Asset related charges | 3 |  | 6 |
Total | $ | (14) |  | $ | 84 |
Other Asset Related Charges For the year ended December 31, 2020, the company recognized $159 million, in restructuring and asset related charges, net in the Consolidated Statement of Operations, from non-cash accelerated prepaid royalty amortization expense related to Roundup Ready 2 Yield® and Roundup Ready 2 Xtend® herbicide tolerance traits. Asset Impairment During the third and fourth quarters of 2019, the company recognized non-cash impairment charges of $54 million pre-tax ($41 million after-tax) and $90 million pre-tax ($69 million after-tax), respectively, in restructuring and asset related charges - net in the company's Consolidated Statements of Operations related to certain in-process research and development ("IPR&D") assets within the seed segment. Refer to Note 15 - Goodwill and Other Intangible Assets, and Note 23 - Fair Value Measurements, for further information. During the third quarter of 2018, the company recognized an $85 million pre-tax ($66 million after-tax) non-cash impairment charge in restructuring and asset related charges - net in the company's Consolidated Statements of Operations related to certain IPR&D within the seed segment. Refer to Note 15 - Goodwill and Other Intangible Assets, and Note 23 - Fair Value Measurements, for further information. In addition, in 2018, based on updated projections for the company’s investments in nonconsolidated affiliates in China related to the seed segment, management determined the fair values of the investments in nonconsolidated affiliates were below the carrying values and had no expectation the fair values would recover due to the continuing unfavorable regulatory environment including lack of intellectual property protection, uncertain product registration timing and limited freedom to operate. As a result, management concluded the impairment was other than temporary and in the third quarter of 2018 recorded a non-cash impairment charge of $41 million in restructuring and asset related charges - net in the company's Consolidated Statements of Operations, none of which is tax-deductible. Refer to Note 23 - Fair Value Measurements, for further information.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration