Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of:


	For the Years Ended December 31,
	2025		2024		2023
	(in millions)
Earnings/(losses) from continuing operations before income taxes:
United States	$	750	$	1,688	$	1,500
Outside United States	2,264		4,573		4,380
	$	3,014	$	6,261	$	5,880
Provision for income taxes:
United States federal:
Current	$	102	$	268	$	667
Deferred	54		98		(167)
	156		366		500
State and local:
Current	(3)		83		123
Deferred	8		28		(50)
	5		111		73
Total United States	161		477		573

Outside United States:
Current	667		861		784
Deferred	(46)		131		180
Total outside United States	621		992		964
Total provision for income taxes	$	782	$	1,469	$	1,537

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows:


	For the Year Ended December 31,
	2025
	(in millions)


U.S. federal statutory rate	$	633	21.0	%
State and local income taxes, net of federal tax effect	37		1.2	%
Foreign tax effects:
Brazil:
Nontaxable or nondeductible items	(34)		(1.1)	%
Other - Brazil	10		0.3	%
China	55		1.8	%
Germany:
Nontaxable or nondeductible items	(44)		(1.5)	%
Other - Germany	7		0.2	%
Russia:
Cross-border tax laws - withholding tax	33		1.1	%
Other - Russia	24		0.8	%
Singapore	(37)		(1.2)	%
Switzerland:


Changes in valuation allowances	45		1.5	%
Other - Switzerland	(44)		(1.5)	%
Other foreign jurisdictions	162		5.4	%
Effects of changes in tax laws or rates enacted in the current period	—		—	%
Effects of cross-border tax laws (net of foreign tax credits):
Global intangible low-taxed income	57		1.9	%
Other	(64)		(2.1)	%
Tax credits	(17)		(0.6)	%
Changes in valuation allowances	35		1.2	%
Nontaxable or nondeductible items	10		0.3	%
Changes in unrecognized tax benefits	(88)		(2.9)	%

Other	2		0.1	%
Effective tax rate	$	782	25.9	%

The following states make up more than 50% of state income tax expense: California, Illinois, Texas, New Jersey and Pennsylvania.


	For the Years Ended December 31,
	2024	2023
U.S. federal statutory rate	21.0%	21.0%
Increase/(decrease) resulting from:
State and local income taxes, net of federal tax benefit	1.2%	(0.1)%
Foreign rate differences	3.0%	2.0%
Changes in judgment on realizability of deferred tax assets	(0.2)%	(0.1)%
Net change in tax accruals	0.5%	(0.2)%
Tax accrual on investment in KDP (including tax impact of share sales)	—%	2.8%
Excess tax benefits from equity compensation	(0.4)%	(0.4)%
Tax legislation	0.2%	1.4%
Business sales	—%	(0.5)%
Tax benefit from legal entity reorganization	(2.3)%	—%
Foreign tax provisions under TCJA (GILTI, FDII and BEAT) (1)	0.5%	0.6%
Tax impacts from the European Commission legal matter	—%	(0.4)%
Effective tax rate	23.5%	26.1%

(1)The Tax Cuts and Jobs Act of 2017 (“TCJA”) established the Global Intangible Low-Tax Income (“GILTI”) provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income (“FDII”) provision, which allows a deduction against certain types of U.S. taxable income resulting in a lower effective U.S. tax rate on such income; and the Base Erosion Anti-abuse Tax (“BEAT”), which is a minimum tax based on cross-border service payments by U.S. entities.

Schedule of Cash Flow, Supplemental Disclosures

Cash taxes paid, net of refunds, were as follows:


	For the Year Ended December 31,
		2025
		(in millions)
U.S. Federal		$	338
U.S. State		45
Total U.S.		383
Foreign:
China		91
Russia		69
Switzerland		63
Other foreign		468
Total foreign		691
Total		$	1,074

Schedule of Deferred Tax Assets and Liabilities Temporary Differences

Tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of:


	As of December 31,
	2025		2024
	(in millions)
Deferred income tax assets:
Accrued postretirement and postemployment benefits	$	44	$	50
Other employee benefits	168		154
Accrued expenses	629		647
Loss carryforwards	752		681
Tax credit carryforwards	773		736
Other	763		527
Total deferred income tax assets	3,129		2,795
Valuation allowance	(1,448)		(1,291)
Net deferred income tax assets	$	1,681	$	1,504
Deferred income tax liabilities:
Intangible assets	$	(3,310)	$	(3,083)
Property, plant and equipment	(875)		(777)
Accrued pension costs	(10)		(74)
Other	(680)		(662)
Total deferred income tax liabilities	(4,875)		(4,596)
Net deferred income tax liabilities	$	(3,194)	$	(3,092)

Schedule of Changes in Unrecognized Tax Benefits

The changes in our unrecognized tax benefits were:


	For the Years Ended December 31,
	2025		2024		2023
	(in millions)
January 1	$	436	$	442	$	424
Increases from positions taken during prior periods	37		25		33
Decreases from positions taken during prior periods	(54)		(7)		(35)
Increases from positions taken during the current period	27		40		55
Decreases relating to settlements with taxing authorities	(58)		(20)		(11)
Reductions resulting from the lapse of the applicable statute of limitations	(14)		(20)		(29)
Currency/other	26		(24)		5
December 31	$	400	$	436	$	442