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EID Income Taxes (Notes) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Text Block] | INCOME TAXES Domestic and foreign components of the income (loss) from continuing operations before income taxes and the provision for (benefit from) current and deferred tax expense (benefit) are shown below:
Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | For the Year Ended December 31,
(In millions) | 2021 | 2020 | 2019
Income (loss) from continuing operations before income taxes |  |  |
Domestic | $ | 941 |  | $ | (83) |  | $ | (1,352) |
Foreign | 1,405 |  | 758 |  | 1,036 |
Income (loss) from continuing operations before income taxes | $ | 2,346 |  | $ | 675 |  | $ | (316) |
Current tax expense (benefit) |  |  |
Federal | $ | (13) |  | $ | 28 |  | $ | (11) |
State and local | 6 |  | 9 |  | 1 |
Foreign | 329 |  | 222 |  | 317 |
Total current tax expense (benefit) | $ | 322 |  | $ | 259 |  | $ | 307 |
Deferred tax expense (benefit) |  |  |
Federal | $ | 164 |  | $ | (116) |  | $ | (392) |
State and local | 55 |  | 27 |  | 156 |
Foreign | (17) |  | (251) |  | (117) |
Total deferred tax expense (benefit) | $ | 202 |  | $ | (340) |  | $ | (353) |
Provision for (benefit from) income taxes on continuing operations | 524 |  | (81) |  | (46) |
Net income (loss) from continuing operations after taxes | $ | 1,822 |  | $ | 756 |  | $ | (270) |
The effective income tax rate applicable to income (loss) from continuing operations before income taxes was different from the statutory U.S. federal income tax rate due to the factors listed in the following table:
Reconciliation to U.S. Statutory Rate | For the Year Ended December 31,
| 2021 | 2020 | 2019
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | %
Effective tax rates on international operations - net 1 | (2.5) |  | (13.9) |  | (18.4) |
Acquisitions, divestitures and ownership restructuring activities 2 | (0.1) |  | (0.3) |  | (10.7) |
U.S. research and development credit | (2.4) |  | (2.9) |  | 7.0 |
Exchange gains/losses 3 | 1.9 |  | 3.5 |  | (1.8) |
State and local incomes taxes - net | 2.1 |  | 4.0 |  | 3.2 |
Impact of Swiss Tax Reform 4 | 0.2 |  | (27.0) |  | 11.9 |
Excess tax benefits/deficiencies from stock compensation | (0.2) |  | 1.0 |  | (0.6) |
Tax settlements and expiration of statute of limitations | — |  | 0.4 |  | 3.9 |
Other - net | 2.3 |  | 2.2 |  | (0.9) |
Effective tax rate on income from continuing operations | 22.3 | % | (12.0) | % | 14.6 | %
1. Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results. Includes a tax benefit of $(51) million for the year ended December 31, 2020, related to a return to accrual adjustment associated with an elective change in accounting method for the 2019 tax year impact of foreign tax provisions. 2. See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, to the Consolidated Financial Statements, for additional information. 3. Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 9 - Supplementary Information, and Note 22 - Financial Instruments, under the heading Foreign Currency Risk. 4. Reflects tax benefits of $(182) million primarily driven by the recognition of an elective cantonal component of the recent enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform") for the year ended December 31, 2020. Reflects tax benefits of $(38) million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform"), for the year ended December 31, 2019. Significant components of our net deferred tax asset (liability) were attributable to:
Deferred Tax Balances at December 31, | 2021 | 2020
(In millions) | Assets | Liabilities | Assets | Liabilities
Property 1 | $ | — |  | $ | 341 |  | $ | — |  | $ | 297 |
Tax loss and credit carryforwards 2,3 | 464 |  | — |  | 497 |  | — |
Accrued employee benefits | 904 |  | — |  | 1,415 |  | — |
Other accruals and reserves 1 | 309 |  | — |  | 365 |  | — |
Intangibles | — |  | 2,260 |  | — |  | 2,418 |
Inventory | 153 |  | — |  | 127 |  | — |
Research and development capitalization | 224 |  | — |  | 186 |  | — |
Investments | 36 |  | — |  | 56 |  | — |
Unrealized exchange gains/losses | — |  | 10 |  | 2 |  | — |
Other – net | 105 |  | — |  | 91 |  | — |
Subtotal | $ | 2,195 |  | $ | 2,611 |  | $ | 2,739 |  | $ | 2,715 |
Valuation allowances 3 | (366) |  | — |  | (453) |  | — |
Total | $ | 1,829 |  | $ | 2,611 |  | $ | 2,286 |  | $ | 2,715 |
Net Deferred Tax Asset (Liability) | $ | (782) |  |  | $ | (429) |  |
1. Prior year classifications in property and other accruals and reserves have been adjusted from their previous presentation. Adjustments did not impact the amount of the net deferred tax asset (liability) recorded in the Consolidated Balance Sheets. 2. Primarily related to the realization of recorded tax benefits on tax loss and credit carryforwards from operations in the United States, Brazil, and Spain. 3. In connection with the company's 2021 internal legal entity restructuring, the company reduced various state net operating loss carryforwards and corresponding full valuation allowances by $61 million. There was no impact on the statement of operations. During the year ended December 31, 2020, the company established a $19 million state tax valuation allowance in the U.S. based on a change in judgement about the realizability of a deferred tax asset. Details of the company’s operating loss and tax credit carryforwards are shown in the following table:
Operating Loss and Tax Credit Carryforwards | Deferred Tax Asset
(In millions) | 2021 | 2020
Operating loss carryforwards |  |
Expire within 5 years | $ | 123 |  | $ | 99 |
Expire after 5 years or indefinite expiration | 210 |  | 343 |
Total operating loss carryforwards | $ | 333 |  | $ | 442 |
Tax credit carryforwards |  |
Expire within 5 years | $ | 14 |  | $ | 14 |
Expire after 5 years or indefinite expiration | 117 |  | 41 |
Total tax credit carryforwards | $ | 131 |  | $ | 55 |
Total Operating Loss and Tax Credit Carryforwards | $ | 464 |  | $ | 497 |
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
Total Gross Unrecognized Tax Benefits | For the Year Ended December 31,
(In millions) | 2021 | 2020 | 2019
Total unrecognized tax benefits as of beginning of period | $ | 395 |  | $ | 426 |  | $ | 749 |
Decreases related to positions taken on items from prior years | (7) |  | (14) |  | (167) |
Increases related to positions taken on items from prior years | 13 |  | 5 |  | 77 |
Increases related to positions taken in the current year | 9 |  | 6 |  | 54 |
Settlement of uncertain tax positions with tax authorities | (17) |  | (18) |  | (9) |
Impact of Internal Reorganizations | — |  | — |  | (278) |
Decreases due to expiration of statutes of limitations | (16) |  | (7) |  | — |
Exchange (gain) loss | — |  | (3) |  | — |
Total unrecognized tax benefits as of end of period | $ | 377 |  | $ | 395 |  | $ | 426 |
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate | $ | 157 |  | $ | 156 |  | $ | 188 |
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations | $ | 1 |  | $ | (2) |  | $ | (4) |
Total accrual for interest and penalties associated with unrecognized tax benefits at end of period | $ | 11 |  | $ | 18 |  | $ | 24 |
Each year the company files hundreds of tax returns in the various national, state and local income taxing jurisdictions in which it operates. These tax returns are subject to examination and possible challenge by the tax authorities. Positions challenged by the tax authorities may be settled or appealed by the company. As a result, there is an uncertainty in income taxes recognized in the company's financial statements in accordance with accounting for income taxes and accounting for uncertainty in income taxes. It is reasonably possible that changes to the company’s global unrecognized tax benefits could be significant; however, due to the uncertainty regarding the timing of completion of audits and possible outcomes, a current estimate of the range of increases or decreases that may occur within the next twelve months cannot be made. As of December 31, 2021, the company has made advance deposits of approximately $102 million to a foreign taxing authority, partially as a prerequisite to petition the court related to an open tax examination. These payments are accounted for as a prepaid asset, included in other assets in the Consolidated Balance Sheets. Tax years that remain subject to examination for the company’s major tax jurisdictions are shown below:
Tax Years Subject to Examination by Major Tax Jurisdiction at December 31, 2021 | Earliest Open Year
Jurisdiction
Argentina | 2015
Brazil | 2014
Canada | 2012
China | 2014
France | 2019
India | 2015
Italy | 2016
Switzerland | 2016
United States: |
Federal income tax | 2012
State and local income tax | 2008
Undistributed earnings of foreign subsidiaries and related companies that are deemed to be indefinitely invested amounted to $3,681 million at December 31, 2021. Distributions of profits from non-U.S. subsidiaries are not expected to cause a significant incremental U.S. tax impact in the future; however, those distributions may still be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. The company is asserting indefinite reinvestment related to certain investments in foreign subsidiaries. Determination of the amount of unrecognized deferred tax liability related to indefinitely reinvested profits is not feasible primarily due to our legal entity structure and the complexity of U.S. and local tax laws. For periods between the Merger Effectiveness Time and the Corteva Distribution, Corteva and its subsidiaries were included in DowDuPont's consolidated federal income tax group and consolidated tax return. Generally, the consolidated tax liability of the DowDuPont U.S. tax group for each year was apportioned among the members of the consolidated group based on each member’s separate taxable income. Corteva, DuPont and Dow intend that to the extent Federal and/or State corporate income tax liabilities are reduced through the utilization of tax attributes of the other, settlement of any receivable and payable generated from the use of the other party’s sub-group attributes will be in accordance with a tax sharing agreement and/or tax matters agreement. See Note 5 - Divestitures and Other Transactions, to the Consolidated Financial Statements for further information related to indemnifications between Corteva, Dow and DuPont.
EID [Member] |
Income Tax Disclosure [Text Block] | Refer to page F-31 of the Corteva, Inc. Consolidated Financial Statements for discussion of tax items that do not differ between Corteva, Inc. and EID.
Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes | For the Year Ended December 31,
(In millions) | 2021 | 2020 | 2019
Income (loss) from continuing operations before income taxes |  |  |
Domestic | $ | 892 |  | $ | (183) |  | $ | (1,458) |
Foreign | 1,404 |  | 758 |  | 1,036 |
Income (loss) from continuing operations before income taxes | $ | 2,296 |  | $ | 575 |  | $ | (422) |
Current tax expense (benefit) |  |  |
Federal | $ | (23) |  | $ | 8 |  | $ | (11) |
State and local | 4 |  | 5 |  | 1 |
Foreign | 329 |  | 222 |  | 317 |
Total current tax expense (benefit) | $ | 310 |  | $ | 235 |  | $ | 307 |
Deferred tax (benefit) expense |  |  |
Federal | $ | 164 |  | $ | (116) |  | $ | (417) |
State and local | 55 |  | 27 |  | 156 |
Foreign | (17) |  | (251) |  | (117) |
Total deferred tax expense (benefit) | $ | 202 |  | $ | (340) |  | $ | (378) |
Provision for (benefit from) income taxes on continuing operations | 512 |  | (105) |  | (71) |
Net income (loss) from continuing operations | $ | 1,784 |  | $ | 680 |  | $ | (351) |
Reconciliation to U.S. Statutory Rate | For the Year Ended December 31,
| 2021 | 2020 | 2019
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | %
Effective tax rates on international operations - net 1 | (2.6) |  | (16.4) |  | (13.8) |
Acquisitions, divestitures and ownership restructuring activities 2 | (0.1) |  | (0.3) |  | (8.0) |
U.S. research and development credit | (2.5) |  | (3.4) |  | 5.2 |
Exchange gains/losses 3 | 1.9 |  | 4.1 |  | (1.3) |
State and local income taxes - net | 2.2 |  | 4.2 |  | 3.0 |
Impact of Swiss Tax Reform 4 | 0.2 |  | (31.7) |  | 8.9 |
Excess tax benefits/deficiencies from stock compensation | (0.2) |  | 1.2 |  | (0.5) |
Tax settlements and expiration of statute of limitations | — |  | 0.4 |  | 2.9 |
Other - net | 2.3 |  | 2.6 |  | (0.6) |
Effective tax rate | 22.2 | % | (18.3) | % | 16.8 | %
1. Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results. Includes a tax benefit of $(51) million for the year ended December 31, 2020, related to a return to accrual adjustment associated with an elective change in accounting method that alters the 2019 impact of foreign tax provisions. 2. See Notes 4 - Common Control Business Combination, and Note 5 - Divestitures and Other Transactions, of the Corteva, Inc. Consolidated Financial Statements for additional information. 3. Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 9 - Supplementary Information, and Note 22 - Financial Instruments, of the Corteva, Inc. Consolidated Financial Statements under the heading Foreign Currency Risk. 4. Reflects tax benefits of $(182) million primarily driven by the recognition of an elective cantonal component of the recent enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform") for the year ended December 31, 2020. Reflects tax benefits of $(38) million associated with the enactment of the Federal Act on Tax Reform and AHV Financing ("Swiss Tax Reform"), for the year ended December 31, 2019.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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