Corteva Inc
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
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Segment Information
NOTE 17 -SEGMENT INFORMATION
Corteva’s reportable segments reflects the manner in which its chief operating decision maker ("CODM") allocates resources and assesses performance, which is at the operating segment level (Seed and Crop Protection). The company's CODM is the Chief Executive Officer. The primary measure used by Corteva's CODM for purposes of allocating resources to the segments and assessing segment performance is segment operating EBITDA.
Segment operating EBITDA is primarily utilized in the annual planning and monthly forecasting processes. On a monthly basis, the CODM considers variances between comparable prior year actual results and current year actual or forecasted results when evaluating the company's success in delivering its innovative proprietary technology to farmers and monitoring of expected savings from cost and productivity actions. The CODM also utilizes segment operating EBITDA when evaluating the impacts of market-driven trends on segment performance, such as input costs and inflationary and currency impacts.
The company defines segment operating EBITDA as earnings (loss) (i.e., income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, corporate expenses, non-operating benefits (costs), foreign exchange gains (losses), and net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting, excluding the impact of significant items. Non-operating benefits (costs) consists of non-operating pension and other post-employment benefit (OPEB) credits (costs), tax indemnification adjustments and environmental remediation and legal costs associated with legacy businesses and sites. Tax indemnification adjustments relate to changes in indemnification balances, as a result of the application of the terms of the Tax Matters Agreement, between Corteva and Dow and/or DuPont that are recorded by the company as pre-tax income or expense. Net unrealized gain or loss from mark-to-market activity for certain foreign currency derivative instruments that do not qualify for hedge accounting represents the non-cash net gain (loss) from changes in fair value of certain undesignated foreign currency derivative contracts. Upon settlement, which is within the same calendar year of execution of the contract, the realized gain (loss) from the changes in fair value of the non-qualified foreign currency derivative contracts will be reported in the respective segment results to reflect the economic effects of the foreign currency derivative contracts without the resulting unrealized mark to fair value volatility.
| As of and for the Three Months Ended March 31,(In millions) | Seed | Crop Protection | Total |
|---|---|---|---|
| Net sales | $2,707 | $1,710 | $4,417 |
| Segment operating EBITDA | 842 | 377 | 1,219 |
| Depreciation and amortization | 191 | 105 | 296 |
| Segment assets1 | 22,485 | 15,465 | 37,950 |
| Investments in nonconsolidated affiliates | 59 | 77 | 136 |
| Purchases of property, plant and equipment | 47 | 47 | 94 |
| Net sales | $2,751 | $1,741 | $4,492 |
| Segment operating EBITDA | 748 | 310 | 1,058 |
| Depreciation and amortization | 203 | 104 | 307 |
| Segment assets1 | 23,532 | 16,077 | 39,609 |
| Investments in nonconsolidated affiliates | 47 | 76 | 123 |
| Purchases of property, plant and equipment | 87 | 61 | 148 |
- Segment assets at December 31, 2024 were $21,246 million and $14,241 million for Seed and Crop Protection, respectively.
Reconciliation of Segment Profitability
| (In millions) | Seed | Crop Protection | Total |
|---|---|---|---|
| Net sales | $2,707 | $1,710 | $4,417 |
| Cost of good sold | 1,275 | 1,018 | 2,293 |
| Other expenses1 | 590 | 315 | 905 |
| Segment operating EBITDA | $842 | $377 | $1,219 |
| (In millions) | Seed | Crop Protection | Total |
| Net sales | $2,751 | $1,741 | $4,492 |
| Cost of good sold | 1,440 | 1,109 | 2,549 |
| Other expenses1 | 563 | 322 | 885 |
| Segment operating EBITDA | $748 | $310 | $1,058 |
- Other expenses consisted primarily of selling, general and administrative expenses and research and development expense, net of depreciation add-back.
Reconciliation to interim Consolidated Financial Statements
| Income (loss) from continuing operations after income taxes to segment operating EBITDA | Three Months Ended March 31, | |
|---|---|---|
| (In millions) | 2025 | 2024 |
| Income (loss) from continuing operations after income taxes | $667 | $376 |
| Provision for (benefit from) income taxes on continuing operations | 117 | 106 |
| Income (loss) from continuing operations before income taxes | $784 | $482 |
| Depreciation and amortization | 296 | 307 |
| Interest income | (32) | (35) |
| Interest expense | 36 | 41 |
| Exchange (gains) losses - net | 27 | 59 |
| Non-operating (benefits) costs - net | 10 | 52 |
| Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges | 9 | 1 |
| Significant items (benefit) charge | 59 | 127 |
| Corporate expenses | 30 | 24 |
| Segment operating EBITDA | $1,219 | $1,058 |
| Segment assets to total assets (In millions) | March 31, 2025 | December 31, 2024 | March 31, 2024 |
|---|---|---|---|
| Total segment assets | $37,950 | $35,487 | $39,609 |
| Corporate assets | 4,173 | 5,338 | 4,016 |
| Total assets | $42,123 | $40,825 | $43,625 |
Significant Pre-tax (Charges) Benefits Not Included in Segment Operating EBITDA
The three months ended March 31, 2025 and 2024, respectively, included the following significant pre-tax (charges) benefits which are excluded from segment operating EBITDA:
| (In millions) | Seed | Crop Protection | Corporate | Total |
|---|---|---|---|---|
| Restructuring and asset related charges - net1 | $(3) | $(14) | $(5) | $(22) |
| AltEn facility remediation charges2 | (37) | — | — | (37) |
| Total | $(40) | $(14) | $(5) | $(59) |
| (In millions) | Seed | Crop Protection | Corporate | Total |
|---|---|---|---|---|
| Restructuring and asset related charges - net1 | $(20) | $(41) | $(14) | $(75) |
| Estimated settlement expense3 | — | (54) | — | (54) |
| Gain (loss) on sale of assets4 | 4 | — | — | 4 |
| Acquisition-related costs5 | — | (2) | — | (2) |
| Total | $(16) | $(97) | $(14) | $(127) |
Includes restructuring plans and asset related charges, as well as accelerated prepaid amortization expense for the three months ended March 31, 2024. See Note 4 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements, for additional information.
Relates to a charge to increase the remediation accrual at the AltEn facility relating to Corteva's estimated voluntary contribution to the solid waste and wastewater remedial action plans. See Note 12 - Commitments and Contingent Liabilities, to the interim Consolidated Financial Statements, for additional information.
Consists of estimated Lorsban® related charges.
Incremental gains (losses) associated with activities related to the 2022 Restructuring Actions. For additional information, refer to Note 6 - Restructuring and Asset Related Charges - Net, to the Consolidated Financial Statements, in the company's 2024 Annual Report.
Relates to acquisition-related costs, including third-party integration costs associated with the completed acquisitions of Stoller and Symborg.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.