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Restructuring and Asset Related Charges | 9 Months Ended
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Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING AND ASSET RELATED CHARGES - NET 2022 Restructuring Actions In connection with the company’s shift to a global business unit model, the company has assessed its business priorities and operational structure to maximize the customer experience and deliver on growth and earnings potential. As a result of this assessment, the company has committed to restructuring actions that, combined with the impact of the company’s separate announcement to withdraw from Russia (“Russia Exit”) (collectively the “2022 Restructuring Actions”), is expected to result in total net pre-tax restructuring and other charges of $350 million to $420 million comprised of $105 million to $120 million of severance and related benefit costs, $155 million to $180 million of asset related charges, $65 million to $80 million of costs related to contract terminations (contract terminations includes early lease terminations) and $25 million to $40 million of other charges. Future cash payments related to these charges are anticipated to be $150 million to $175 million, primarily related to the payment of severance and related benefits, contract terminations and other charges. The restructuring actions associated with these charges are expected to be substantially complete in 2023. The total net pre-tax restructuring and other charges included $47 million associated with the Russia Exit for the nine months ended September 30, 2022. The Russia Exit net pre-tax restructuring charges consisted of $6 million of severance and related benefit costs, $3 million of asset related charges, and $28 million of costs related to contract terminations (contract terminations includes early lease terminations). The company also recorded other pre-tax charges associated with the Russia Exit to cost of goods sold and other income – net in the interim Consolidated Statement of Operations, relating to inventory write-offs of $2 million and settlement costs of $8 million, respectively. Additional pre-tax charges up to $20 million associated with the Russia Exit are possible, primarily associated with government receivables. The charges related to the 2022 Restructuring Actions related to the segments, as well as corporate expenses, for the three and nine months ended September 30, 2022 were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30,
(In millions) | 2022 | 2022
Seed | $ | 61 |  | $ | 94 |
Crop Protection | 19 |  | 20 |
Corporate expenses | 66 |  | 88 |
Total 1 | $ | 146 |  | $ | 202 |
1.This amount excludes the pre-tax charges impacting Seed recorded to cost of goods sold and other income - net in the company's interim Consolidated Statement of Operations, relating to inventory write-offs of $33 million, and a gain on sale of a business of $15 million, settlement costs associated with the Russia Exit, and charges associated with the exit of a non-strategic asset of $5 million, respectively. The following table is a summary of charges incurred related to 2022 Restructuring Actions for the three and nine months ended September 30, 2022:
| Three Months Ended September 30, | Nine Months Ended September 30,
(In millions) | 2022 | 2022
Severance and related benefit costs | $ | 66 |  | $ | 88 |
Asset related charges | 66 |  | 70 |
Contract termination charges 1 | 14 |  | 44 |
Total restructuring and asset related charges - net 2 | $ | 146 |  | $ | 202 |
1.Contract terminations includes early lease terminations. 2.This amount excludes the pre-tax charges recorded to the cost of goods sold and other income - net in the interim Consolidated Statement of Operations, relating to inventory write-offs of $33 million, and a gain on sale of a business of $15 million, settlement costs associated with the Russia Exit and charges associated with the exit of a non-strategic asset of $5 million, respectively. A reconciliation of the December 31, 2021 to the September 30, 2022 liability balances related to the 2022 Restructuring Actions is summarized below:
(in millions) | Severance and Related Benefit Costs | Asset Related | Contract Termination 1 | Total
Balance at December 31, 2021 | $ | — |  | $ | — |  | $ | — |  | $ | — |
Charges to income (loss) from continuing operations | 88 |  | 70 |  | 44 |  | 202 |
Payments | (19) |  | — |  | (5) |  | (24) |
Asset write-offs | — |  | (70) |  | — |  | (70) |
Balance at September 30, 2022 | $ | 69 |  | $ | — |  | $ | 39 |  | $ | 108 |
1.The liability for contract terminations includes lease obligations. The cash impact of these obligations will be substantially complete by the end of 2022. 2021 Restructuring Actions During the first quarter of 2021, Corteva approved restructuring actions designed to right-size and optimize its footprint and organizational structure according to the business needs in each region with the focus on driving continued cost improvement and productivity. Through the third quarter of 2022, the company recorded net pre-tax restructuring charges of $166 million inception-to-date under the 2021 Restructuring Actions, consisting of $77 million of severance and related benefit costs, $44 million of asset related charges, $6 million of asset retirement obligations and $39 million of costs related to contract terminations (contract terminations includes early lease terminations). The company does not anticipate any additional material charges from the 2021 Restructuring Actions as actions associated with this charge were substantially complete by the end of 2021. The charges related to the 2021 Restructuring Actions related to the segments, as well as corporate expenses, for the three and nine months ended September 30, 2022 and 2021 were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30,
(In millions) | 2022 | 2021 | 2022 | 2021
Seed | $ | 1 |  | $ | 4 |  | $ | (1) |  | $ | 21 |
Crop Protection | (1) |  | 4 |  | (3) |  | 41 |
Corporate expenses | — |  | 9 |  | 3 |  | 65 |
Total | $ | — |  | $ | 17 |  | $ | (1) |  | $ | 127 |
The following table is a summary of charges incurred related to 2021 Restructuring Actions for the three and nine months ended September 30, 2022 and 2021:
| Three Months Ended September 30, | Nine Months Ended September 30,
(In millions) | 2022 | 2021 | 2022 | 2021
Severance and related benefit costs | $ | — |  | $ | 9 |  | $ | 3 |  | $ | 58 |
Asset related charges | — |  | 7 |  | (1) |  | 29 |
Contract termination charges | — |  | 1 |  | (3) |  | 40 |
Total restructuring and asset related charges - net | $ | — |  | $ | 17 |  | $ | (1) |  | $ | 127 |
A reconciliation of the December 31, 2021 to the September 30, 2022 liability balances related to the 2021 Restructuring Actions is summarized below:
(In millions) | Severance and Related Benefit Costs | Asset Related 1 | Contract Termination | Total
Balance at December 31, 2021 | $ | 52 |  | $ | — |  | $ | 12 |  | $ | 64 |
Charges to income (loss) from continuing operations | 3 |  | (1) |  | (3) |  | (1) |
Payments | (35) |  | — |  | (8) |  | (43) |
Asset write-offs | — |  | 1 |  | — |  | 1 |
Balance at September 30, 2022 | $ | 20 |  | $ | — |  | $ | 1 |  | $ | 21 |
1.In addition, the company has a liability recorded for asset retirement obligations of $3 million as of September 30, 2022. Other Asset Related Charges The company recognized $5 million and $104 million for the three and nine months ended September 30, 2022, respectively, and $5 million and $124 million for the three and nine months ended September 30, 2021, respectively, in restructuring and asset related charges - net in the interim 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.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI http://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
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