Corteva(CTVA) - 2023 Q4 - Annual Report

Inventory Management - As of December 31, 2023, approximately 60% of the company's inventories were accounted for under the FIFO method, up from 55% in 2022[649]. Acquisitions - The company completed the acquisitions of Stoller and Symborg in March 2023, which represent approximately 1% of total assets and 2% of net sales[640]. Financial Risk Management - The company has established various programs to manage financial market risks, including the use of derivative instruments to hedge exposure to foreign currency and commodity price risks[629]. - The fair value of outstanding foreign currency contracts was reported at $25 million as of December 31, 2023, with a potential loss sensitivity of$492 million under a hypothetical 10% adverse change in exchange rates[657]. - The company uses foreign exchange contracts to offset net exposures related to foreign currency-denominated monetary assets and liabilities[656]. - The company has significant international operations, with primary currency exposure to the Brazilian Real, Euro, Swiss Franc, Canadian Dollar, and Argentine Peso[656]. Credit Risk Management - The company has not sustained credit losses from instruments held at financial institutions, indicating strong credit risk management[658]. - The company maintains a diverse customer base, with sales not materially dependent on any single customer, reducing credit risk[633]. Asset Management - The company evaluates the carrying value of long-lived assets and recognizes impairment losses when projected undiscounted cash flows are less than the carrying value[663]. Revenue Recognition - The company recognizes revenue when the customer obtains control of promised goods or services, following a five-step process for revenue recognition[665]. Internal Controls - The company's disclosure controls and procedures were evaluated as effective by the CEO and CFO as of December 31, 2023[639]. - PricewaterhouseCoopers LLP audited the effectiveness of the company's internal control over financial reporting as of December 31, 2023[666]. - EIDP maintains a system of disclosure controls and procedures to ensure timely reporting of required information under the Securities Exchange Act of 1934[667]. - There have been no changes in EIDP's internal control over financial reporting during the quarter ended December 31, 2023, that materially affected its internal control[668].