The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for interim periods have been included.  Results for interim periods should not be considered indicative of results for a full year.  These interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2018,2019, collectively referred to as the “2018“2019 Annual Report.”  The interim Consolidated Financial Statements include the accounts of the company and all of its subsidiaries in which a controlling interest is maintained.

DowDuPont Inc. ("DowDuPont") was formed on December 9, 2015Certain reclassifications of prior year's data have been made to effect an all-stock, merger of equals strategic combination between The Dow Chemical Company ("Historical Dow") and Historical DuPont (the "Merger Transaction").conform to current year's presentation.  On August 31, 2017 at 11:59 pm ET, (the "Merger Effectiveness Time") pursuant toApril 1, 2019, EID completed the Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017 (the "Merger Agreement"), Historical Dow and Historical DuPont each merged with wholly owned subsidiaries of DowDuPont ("Mergers") and, as a resulttransference of the Mergers, Historical Dowassets and Historical DuPont became subsidiariesliabilities aligned with EID’s materials science business, including EID’s ethylene and ethylene copolymers business, excluding its ethylene acrylic elastomers business, (“EID ECP”) to separate legal entities (the “Materials Science Entities”) that were ultimately conveyed by DowDuPont to Dow. On May 1, 2019, EID completed the transfer of DowDuPont (collectively, the "Merger"). Prior to the Merger, DowDuPont did not conduct any business activities other than those required for its formationassets and matters contemplated by the Merger Agreement. DowDuPont intends to pursue, subject to certain customary conditions, including, among others, the effectiveness of registration statements filedliabilities aligned with the U.S. Securities and Exchange Commission ("SEC") and approval by the Board of Directors of DowDuPont, the separation of the combined company's agriculture business,EID’s specialty products business to separate legal entities (“EID Specialty Products Entities”), which were then distributed to DowDuPont.

In accordance with GAAP, the financial position and materials science business through a seriesresults of tax-efficient transactions (collectively, the "Intended Business Separations"operations of EID ECP and the transactions to accomplish the Intended Business Separations, the "separations").

The company has updatedcompany's Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019 consist of Corteva, Inc. and its leasing policy since the issuance of its 2018 Annual Report as a resultconsolidated subsidiaries. The company's Condensed Consolidated Balance Sheet at March 31, 2019 consists of the adoptioncombined balances of ASU No. 2016-02, Leases (Topic 842) inHistorical EID and DAS. The Balance Sheets will be referred to as the first quarter 2019. See Notes 2 and 11 for additional information. See Note 1, "Summary of Significant Accounting Policies," in the 2018 Annual Report for more information on Historical DuPont's other significant accounting policies."Condensed Consolidated Balance Sheets" throughout this document.

The company determines whether an arrangement is a lease at the inception of the arrangement based on the terms and conditions in the contract. A contract contains a lease if there is an identified asset and the company has the right to control the asset. Operating lease right-of-use ("ROU") assets are included in other assets on the company’s Consolidated Balance Sheets. Operating lease liabilities are included in accrued and other current liabilities and other noncurrent obligations on the company’s Consolidated Balance Sheets. Finance lease assets are included in property, plant and equipment on the company’s Consolidated Balance Sheets. Finance lease liabilities are included in short-term borrowings and finance lease obligations and long-term debt on the company’s Consolidated Balance Sheets.  

During the ROU asset is amortized overfirst quarter 2020, the lease term.company recorded an increase of $40 million to Additional Paid-in Capital relating to net assets recorded as transferred as part of the 2019 Internal Reorganizations that were retained. 

In FebruaryJune 2016, the FASB issued ASU 2016-02, Leases2016-13, Financial Instruments (Topic 842), and associated ASUs related to Topic 842,326): Credit Losses - Measurement of Credit Losses on Financial Statements, which requires organizations that leasefinancial assets measured at amortized cost basis to recognize on their balance sheetbe presented at the net amount expected to be collected. The amortized cost basis of financial assets and liabilities forshould be reduced by expected credit losses to present the rights and obligations created by those leases. The new guidance requires that a lessee recognize assets and liabilities for leases, and recognition, presentation and measurementnet carrying value in the financial statements will depend on its classification as a finance or operating lease. In addition, the new guidance requires disclosures to help investors and other financial statement users better understandat the amount timingexpected to be collected. The measurement of expected credit losses is based on past events, historical experience, current conditions and uncertaintyforecasts that affect the collectability of cash flows arising from leases. Lessor accounting remains largely unchanged from previous U.S. GAAP but does contain some targeted improvementsthe financial assets. Additionally, credit losses relating to align with the new revenue recognition guidance issued in 2014 (Topic 606).available-for-sale debt securities should be recorded through an allowance for credit losses.

The company adopted this standardthe guidance in the first quarter of 2019,2020. The primary impact of adoption related to the credit losses on accounts and notes receivable, which allows foris applied using a modified retrospective transition approach, applying the new standard to all leases existing at the date of initial adoption. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statement as its date of initial application. The company has elected to apply the transition requirements at the January 1, 2019 effective date rather than at the beginning of the earliest comparative period presented. This approach allows for a cumulative effectcumulative-effect adjustment in the period of adoption, and prior periods are not restatedrestated. The adoption of ASU 2016-13 did not have a material impact on the company’s financial position, results of operations or cash flows. See Note 10 - Accounts and continueNotes Receivable - Net, to the Consolidated Financial Statements for additional information.

In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, which provides guidance on whether certain transactions between collaborative arrangement participants should be reportedaccounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in accordance with historic accounting under ASC 840 (Leases).the context of a unit of account. Accordingly, this amendment added unit of account guidance in Topic 606 when an entity is assessing whether the collaborative arrangement, or a part of the arrangement, is within the scope of Topic 606. In addition, the amendment provides certain guidance on presenting the collaborative arrangement transaction together with Topic 606. ASU 2018-18 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years and early adoption is permitted. This ASU is to be applied retrospectively to the date of initial application of Topic 606. The company has electedadopted this guidance on January 1, 2020 and it did not have a material impact on the packagecompany’s financial position, results of practical expedients permitted underoperations or cash flows.

In March 2020, the transition guidance withinFASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848), which provides companies with optional financial reporting alternatives to reduce the cost and complexity associated with the accounting for contracts and hedging relationships affected by reference rate reform. The amendments in this Update are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not have a material impact on the company's financial position, results of operations or cash flows, and will apply to future changes.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which was part of the FASB’s Simplification Initiative to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced, while maintaining or improving the usefulness of the information provided to users of financial statements. This ASU amends ASC 740, Income Taxes, by removing certain exceptions to the general principles, and clarifying and amending current guidance. The new standard which among other things, does not require reassessmentis effective for fiscal years, and periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted, however all amended guidance must be adopted in the same period and should be reflected as of prior conclusions related to contracts containing a lease, lease classification,the beginning of the annual period if initially adopted and initial direct lease costs. Asapplied during an accounting policy election,interim period. The company is currently evaluating the company chose to not apply the standard to certain existing land easements, excluded short-term leases (termimpact of 12 months or less) from the balance sheet and will account for nonlease and lease components in a contract as a single component for all asset classes.adopting this guidance.

Pursuant to the Chemours Separation Agreement, as discussed below, ChemoursAgreements, DuPont and Corteva indemnifies Historical DuPontthe other against certain litigation, environmental, tax, workers' compensation and other liabilities that arose prior to the distribution.Corteva Distribution. The term of this indemnification is generally indefinite and includes defense costs and expenses, as well as monetary and non-monetary settlements and judgments. In 2017, Historical DuPont and Chemours amended the Chemours Separation Agreement to provide for a limited sharing of potential future perfluorooctanoic acid (“PFOA”) liabilities for a period of five years beginning July 6, 2017. In connection with the recognition of liabilities related to these matters, the company records an indemnification asset when recovery is deemed probable. At March 31, 2019,2020, the indemnification assets are $84$25 million within accounts and notes receivable - net and $289$54 million within other assets along within the correspondinginterim Condensed Consolidated Balance Sheet. At March 31, 2020, the indemnification liabilities of $84are $8 million within accrued and other current liabilities and $289$69 million within other noncurrent obligations in the interim Condensed Consolidated Balance Sheet. See

As discussed in Note 13 for further discussion1 - Summary of Significant Accounting Policies, on April 1, 2019, EID completed the transfer of the amendmententities and related assets and liabilities of EID ECP to Dow.

The following table presents the depreciation, amortization of intangibles, and capital expenditures of the discontinued operations related to the Chemours Separation AgreementEID Specialty Products Entities:

The carrying amount of major classes of assets and certain litigationliabilities classified as assets and environmental matters indemnified by Chemours.liabilities of discontinued operations at March 31, 2019 related to the EID Specialty Products Entities consist of the following:

Substantially all of Historical DuPont'sCorteva's revenue is derived from product sales. Product sales consist of sales of Historical DuPont'sCorteva's products to supply manufacturers,farmers, distributors, and farmers. Historical DuPontmanufacturers. Corteva considers purchase orders, which in some cases are governed by master supply agreements, to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year. However, the company has some long-term contracts which can span multiple years.

Historical DuPontCorteva enters into licensing arrangements with customers under which it licenses its intellectual property, such as patents and trademarks.property. Revenue from the majority of intellectual property licenses is derived from sales-based royalties. The company estimates the expected amount of sales-based royalties based on historical sales by customer. Revenue for licensing agreements that contain sales-based royalties is recognized at the later of (i) when the subsequent sale occurs or (ii) when the performance obligation to which some or all of the royalty has been allocated is satisfied.

Contract liabilities primarily reflect deferred revenue from prepayments under agriculture product line contracts with customers where the company receives advance payments for products to be delivered in future periods. Historical DuPontCorteva classifies deferred revenue as current or noncurrent based on the timing of when the company expects to recognize revenue. Contract assets primarily include amounts related to contractual rights to consideration for completed performance not yet invoiced within the industrial biosciences product line.invoiced. Accounts receivable are recorded when the right to consideration becomes unconditional.

Sales are attributed to geographic regions based on customer location. Net sales by geographic region and segment are included below:

In September and November 2017, DowDuPont and the companyEID approved post-merger restructuring actions under the DowDuPont Cost Synergy Program (the “Synergy Program”), adopted at the time by the DowDuPont Board of Directors. The Synergy Program iswas designed to integrate and optimize the organization following the Merger and in preparation for the Intended Business Separations. Based on all actions approved to dateDistributions. The company recorded pre-tax restructuring charges of $842 million inception-to-date under the Synergy Program, Historical DuPont expects to record total pre-tax restructuring charges of $695 million to $755 million, comprised of approximately $420 million to $440 millionconsisting of severance and related benefits costs; $125benefit costs of $319 million, to $145contract termination costs of $193 million, and asset write-downs and write-offs of costs$330 million. The company does not anticipate any additional material charges under the Synergy Program. Actions associated with the Synergy Program, including employee separations, were substantially complete by the end of 2019.

The below is a summary of (benefits) charges incurred related to the Synergy Program for the three months ended March 31, 20192020 and 2018:2019:

Following the Merger Historical DuPontand prior to the Dow Distribution, Corteva reports transactions with Historical Dow and its affiliates as related party transactions. Historical DuPont sells to and procures from Historical Dow and its affiliates certain feedstocks and raw materials that are consumed in each company's manufacturing process, as well as finished goods. Historical DuPont also provides to Historical Dow and its affiliates certain seed production and distribution services.  The following table presents amounts due to or due from Historical Dow and its affiliates at March 31, 2019 and December 31, 2018:

In November 2017, DowDuPont's Board of Directors authorized an initial $4,000 million share repurchase program to buy back shares of DowDuPont common stock. The $4,000 million share repurchase program was completed in the third quarter of 2018. In February 2019, and 2018, the DowDuPont Board declared first quarter dividends per share of DowDuPont common stock payable on March 15, 20192019. EID declared and March 15, 2018, respectively. Forpaid distributions to DowDuPont of $317 million for the three months ended March 31, 2019, and 2018, Historical DuPont declared and paid distributions to DowDuPont of about $317 million and $830 million, respectively, primarily to fund a portion of DowDuPont's dividend payments for these periods, and, specific to 2018, to fund a portion of DowDuPont's share repurchases.payment.

In addition, at March 31, 2019, and December 31, 2018, Historical DuPontEID had a payable to DowDuPont of $103 million included in accounts payable in the interim Condensed Consolidated Balance SheetsSheet related to its estimated tax liability for the period beginning with the Merger through the date of the Dow Distribution, during which time the parties filed a consolidated USUnited States ("U.S.") tax return. See Note 8 - Income Taxes, for additional information.

The following table summarizes the impacts of the company's foreign currency hedging program on the company's results of operations. The company routinely uses foreign currency exchange contracts to offset its net exposures, by currency, related to the foreign currency-denominated monetary assets and liabilities. The objective of this program is to maintain an approximately balanced position in foreign currencies in order to minimize, on an after-tax basis, the effects of exchange rate changes on net monetary asset positions. The hedging program gains (losses) are largely taxable (tax deductible) in the United States ("U.S."), whereas the offsetting exchange gains (losses) on the remeasurement of the net monetary asset positions are often not taxable (tax deductible) in their local jurisdictions. The net pre-tax exchange gains (losses) are recorded in sundryother income - net and the related tax impact is recorded in (benefit from) provision for income taxes on continuing operations in the interim Consolidated Statements of Operations.