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EIDP Inc

For the period ended Sep 30, 2024. Filed Nov 7, 2024.

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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.

Sep 30, 2024 · Filed Nov 7, 2024

CTVA$11.90-1.2%Stored close · as of Nov 6, 2026

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Segment Information

NOTE 18 -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). For purposes of allocating resources to the segments and assessing segment performance, segment operating EBITDA is the primary measure used by Corteva’s CODM. 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 EIDP 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 September 30,(In millions)SeedCrop ProtectionTotal
Net sales$691$1,635$2,326
Segment operating EBITDA(320)246(74)
Segment assets122,19214,89537,087
Net sales$878$1,712$2,590
Segment operating EBITDA(138)18446
Segment assets122,82915,44638,275
  1. Segment assets at December 31, 2023 were $22,732 million and $15,004 million for Seed and Crop Protection, respectively.
As of and for the Nine Months Ended September 30,(In millions)SeedCrop ProtectionTotal
Net sales$7,773$5,157$12,930
Segment operating EBITDA2,1268112,937
Net sales$7,837$5,682$13,519
Segment operating EBITDA1,9721,1073,079

Reconciliation to interim Consolidated Financial Statements

Income (loss) from continuing operations after income taxes to segment operating EBITDAThree Months Ended September 30,Nine Months Ended September 30,
(In millions)2024202320242023
Income (loss) from continuing operations after income taxes$(519)$(315)$913$1,172
Provision for (benefit from) income taxes on continuing operations(114)(129)274244
Income (loss) from continuing operations before income taxes$(633)$(444)$1,187$1,416
Depreciation and amortization306306925899
Interest income(33)(59)(93)(153)
Interest expense6658173171
Exchange (gains) losses97102234242
Non-operating (benefits) costs5028132115
Mark-to-market (gains) losses on certain foreign currency contracts not designated as hedges14(44)(4)34
Significant items (benefit) charge3371297271
Corporate expenses26288684
Segment operating EBITDA$(74)$46$2,937$3,079
Segment assets to total assets (In millions)September 30, 2024December 31, 2023September 30, 2023
Total segment assets$37,087$37,736$38,275
Corporate assets4,8215,2604,835
Total assets$41,908$42,996$43,110

Significant Pre-tax (Charges) Benefits Not Included in Segment Operating EBITDA

The three and nine months ended September 30, 2024 and 2023, respectively, included the following significant pre-tax (charges) benefits which are excluded from segment operating EBITDA:

(In millions)SeedCrop ProtectionCorporateTotal
Restructuring and asset related charges - net1$(3)$(10)$(19)$(32)
Acquisition-related costs4—(1)—(1)
Total$(3)$(11)$(19)$(33)
(In millions)SeedCrop ProtectionCorporateTotal
Restructuring and asset related charges - net1$1$—$(3)$(2)
Estimated settlement expense2—(66)—(66)
Gain (loss) on sale of business, assets and equity investments34——4
Acquisition-related costs4—(7)—(7)
Total$5$(73)$(3)$(71)
(In millions)SeedCrop ProtectionCorporateTotal
Restructuring and asset related charges - net1$(56)$(83)$(60)$(199)
Estimated settlement expense2—(101)—(101)
Inventory write-offs32——2
Gain (loss) on sale of assets343—7
Acquisition-related costs4—(6)—(6)
Total$(50)$(187)$(60)$(297)
(In millions)SeedCrop ProtectionCorporateTotal
Restructuring and asset related charges - net1$(74)$(11)$(10)$(95)
Estimated settlement expense2—(156)—(156)
Inventory write-offs3(7)——(7)
Gain (loss) on sale of business, assets and equity investments343—7
Seed sale associated with Russia Exit3,518——18
Acquisition-related costs4—(41)—(41)
Employee Retention Credit—3—3
Total$(59)$(202)$(10)$(271)
  1. Includes restructuring plans and asset related charges as well as accelerated prepaid amortization expense. See Note 5 - Restructuring and Asset Related Charges - Net, to the interim Consolidated Financial Statements, for additional information.

  2. Consists of estimated Lorsban® related charges.

  3. Incremental gains (losses) associated with activities related to the 2022 Restructuring Actions. The nine months ended September 30, 2024 includes a $2 million benefit associated with sales of inventory previously reserved for in association with the 2022 Restructuring Actions.

  4. Relates to acquisition-related costs, including transaction and third-party integration costs associated with the completed acquisitions of Stoller and Symborg as well as the recognition of the inventory fair value step-up. See Note 3 - Business Combinations, to the interim Consolidated Financial Statements, for additional information.

  5. Includes a benefit (charge) of $18 million for the nine months ended September 30, 2023, relating to the sale of seeds already under production in Russia when the decision to exit the country was made and that the company was contractually required to purchase. It consists of $71 million of net sales and $53 million of cost of goods sold for the nine months ended September 30, 2023.

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