Corteva, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations. The company operates in the agriculture business through two key segments: Seed and Crop Protection. The Seed segment focuses on developing and supplying advanced germplasm and traits to optimize farm yield, while the Crop Protection segment offers products that protect against weeds, insects, and diseases. Corteva operates in various regions, including the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa.
In ITEM 7, "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS," Corteva has integrated processes to identify, assess, and manage climate-related risks into its enterprise risk management program. The company is working to reduce its greenhouse gas emissions and invests in innovation to create a more resilient agriculture value chain. Additionally, Corteva engages with stakeholders and partners globally to develop actionable ideas for safeguarding the health of the planet and its people.
In ITEM 7A, "QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK," Corteva's global operations are exposed to financial market risks related to fluctuations in foreign currency exchange rates, commodity prices, and interest rates. The company uses derivative instruments and other financial instruments to manage exposure to financial market risks and minimize volatility of financial results. Corteva enters into derivative instruments to hedge its exposure to foreign currency and commodity price risks, considering factors such as the amount and duration of the exposure, market volatility, and economic trends.
The primary currencies for which Corteva has exchange rate exposure are the Brazilian real, Euro, Swiss franc, Canadian dollar, and Argentine peso. The company uses foreign exchange contracts to offset net exposures related to foreign currency-denominated monetary assets and liabilities, forecasted transactions, investments in foreign subsidiaries, and the translation of foreign currency-denominated earnings. Corteva also enters into foreign currency exchange contracts to establish the U.S. dollar amount of future firm commitments denominated in a foreign currency.
Corteva maintains cash and cash equivalents, marketable securities, derivatives, and other financial instruments with various highly-rated and geographically dispersed financial institutions. The company has policies in place to limit credit exposure with any one institution and continuously evaluates the relative credit standing of these institutions. Furthermore, the company's sales are not materially dependent on any single customer, and credit risk associated with its receivables balance is representative of global product line diversity. As a result of these announcements, the company's shares have moved 1.7% on the market, and are now trading at a price of $63.96. For more information, read the company's full 10-K submission here.
