Stockholders' Equity

3 Months Ended

Mar. 31, 2021

Stockholders' Equity Note Disclosure [Text Block]

STOCKHOLDERS' EQUITY

Share Buyback Plan

On June 26, 2019, Corteva, Inc. announced that the Board of Directors of Corteva, Inc. authorized a $1 billion share repurchase program to purchase Corteva, Inc.'s common stock, par value $0.01 per share, without an expiration date. The timing, price and volume of purchases will be based on market conditions, relevant securities laws and other factors.

During the three months ended March 31, 2021, the company purchased and retired 7,646,000 shares in the open market for a total cost of $350 million. During the three months ended March 31, 2020, the company purchased and retired 1,865,000 shares in the open market for a total cost of $50 million.

Shares repurchased pursuant to Corteva's share buyback plan are immediately retired upon purchase. Repurchased common stock is reflected as a reduction of stockholders' equity. The company's accounting policy related to its share repurchases is to reduce its common stock based on the par value of the shares and to reduce its retained earnings for the excess of the repurchase price over the par value. When Corteva has an accumulated deficit balance, the excess over the par value is applied to additional paid-in capital. When Corteva has retained earnings, the excess is charged entirely to retained earnings.

Noncontrolling Interest

Corteva, Inc. owns 100% of the outstanding common shares of EID. However, EID has preferred stock outstanding to third parties which is accounted for as a non-controlling interest in Corteva's interim Condensed Consolidated Balance Sheets. Each share of EID Preferred Stock - $4.50 Series and EID Preferred Stock - $3.50 Series issued and outstanding at the effective date of the Corteva Distribution remains issued and outstanding as to EID and was unaffected by the Corteva Distribution.

Below is a summary of the EID Preferred Stock at March 31, 2021, December 31, 2020, and March 31, 2020, which is classified as noncontrolling interests in Corteva's interim Condensed Consolidated Balance Sheets.


Shares in thousands			Number of Shares
Authorized			23,000
$4.50 Series, callable at $120			1,673
$3.50 Series, callable at $102			700

Other Comprehensive (Loss) Income

The changes and after-tax balances of components comprising accumulated other comprehensive loss are summarized below:


(In millions)	Cumulative Translation Adjustment1		Derivative Instruments		Pension Benefit Plans		Other Benefit Plans		Unrealized Gain (Loss) on Investments		Total






2020
Balance January 1, 2020	$	(1,944)	$	2	$	(1,247)	$	(81)	$	—	$	(3,270)
Other comprehensive (loss) income before reclassifications	(672)		1		(2)		3		—		(670)
Amounts reclassified from accumulated other comprehensive loss	—		5		2		—		—		7
Net other comprehensive (loss) income	(672)		6		—		3		—		(663)
Balance March 31, 2020	$	(2,616)	$	8	$	(1,247)	$	(78)	$	—	$	(3,933)

2021
Balance January 1, 2021	$	(1,970)	$	(67)	$	(1,433)	$	590	$	(10)	$	(2,890)
Other comprehensive (loss) income before reclassifications	(403)		71		(4)		1		4		(331)
Amounts reclassified from accumulated other comprehensive loss	—		(6)		12		(158)		6		(146)
Net other comprehensive (loss) income	(403)		65		8		(157)		10		(477)

Balance March 31, 2021	$	(2,373)	$	(2)	$	(1,425)	$	433	$	—	$	(3,367)

1.The cumulative translation adjustment loss for the three months ended March 31, 2020 was primarily driven by the strengthening of the USD against the Brazilian Real (“BRL”) and the South African Rand ("ZAR"). The cumulative translation adjustment loss for the three months ended March 31, 2021 was primarily driven by strengthening of the USD against the Swiss Franc ("CHF"), Brazilian Real ("BRL") and European Euro.

The tax benefit (expense) on the net activity related to each component of other comprehensive (loss) income was as follows:


(In millions)	Three Months Ended March 31,
	2021		2020
Derivative instruments	$	(18)	$	5
Pension benefit plans - net	(2)		(4)
Other benefit plans - net	49		—

Benefit from income taxes related to other comprehensive (loss) income items	$	29	$	1

A summary of the reclassifications out of accumulated other comprehensive loss is provided as follows:


(In millions)	Three Months Ended March 31,
	2021		2020
Derivative Instruments1:	$	(5)	$	7
Tax benefit2	(1)		(2)
After-tax	$	(6)	$	5
Amortization of pension benefit plans:

Actuarial losses3,4	$	14	$	1

Settlement loss3,4	1		2
Total before tax	$	15	$	3
Tax benefit2	(3)		(1)
After-tax	$	12	$	2
Amortization of other benefit plans:
Prior service benefit3,4	$	(230)	$	—
Actuarial gains3,4	23		—

Total before tax	$	(207)	$	—
Tax benefit2	49		—
After-tax	$	(158)	$	—



Unrealized Loss on Investments4	$	6	$	—
Tax benefit2	—		—
After-tax	$	6	$	—
Total reclassifications for the period, after-tax	$	(146)	$	7

1.Reflected in cost of goods sold.

2.Reflected in provision for (benefit from) income taxes from continuing operations.

3.These accumulated other comprehensive (loss) income components are included in the computation of net periodic benefit credit of the company's pension and other benefit plans. See Note 15 - Pension Plans and Other Post Employment Benefits, for additional information.

4.Reflected in other income - net.