EIDP Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Geographic Allocation of Income and Provision for Income Taxes


Geographic Allocation of Income (Loss) and Provision for (Benefit from) Income Taxes	For the Year Ended December 31,
(In millions)	2025		2024		2023
Income (loss) from continuing operations before income taxes
Domestic	$	325	$	324	$	(414)
Foreign	1,363		951		1,507
Income (loss) from continuing operations before income taxes	$	1,688	$	1,275	$	1,093
Current tax expense (benefit)
Federal	$	87	$	285	$	143
State and local	26		45		40
Foreign	412		447		407
Total current tax expense (benefit)	$	525	$	777	$	590
Deferred tax expense (benefit)
Federal	$	(139)	$	(300)	$	(326)
State and local	(24)		(28)		(50)
Foreign	122		(37)		(62)
Total deferred tax expense (benefit)	$	(41)	$	(365)	$	(438)
Provision for (benefit from) income taxes on continuing operations	484		412		152
Net income (loss) from continuing operations after taxes	$	1,204	$	863	$	941

Reconciliation to US Statutory Rate


Reconciliation to U.S. Statutory Rate	For the Year Ended December 31,
	2025
($ In millions)	$		%
U.S. Federal statutory tax rate	$	354	21.0	%
State and local income tax, net of federal (national) income tax effect 1	5		0.3	%
Foreign tax effects
Argentina
Statutory tax rate differential	(17)		(1.0)	%
Withholding tax	18		1.1	%
Exchange gains/losses	(31)		(1.8)	%
Changes in valuation allowances	73		4.3	%
Other	(3)		(0.2)	%
Brazil

Withholding tax	37		2.2	%
Changes in valuation allowances 2	153		9.1	%
Other	(4)		(0.2)	%
India
Statutory tax rate differential	17		1.0	%
Agriculture exemption	(41)		(2.4)	%
Withholding tax	31		1.8	%
Other	1		0.1	%
Switzerland
Statutory tax rate differential	(91)		(5.4)	%
Cantonal income tax, net	59		3.5	%
Other	(1)		(0.1)	%
Other foreign jurisdictions	49		2.9	%
Effect of cross-border tax laws (net of related foreign tax credits)
Global Intangible Low-Taxed Income (GILTI)	24		1.4	%
Other	12		0.7	%
Tax credits
U.S. research and development credit	(47)		(2.8)	%
Other foreign tax credits	(52)		(3.1)	%
Changes in valuation allowances 3	74		4.4	%
Nontaxable or nondeductible items	31		1.8	%
Changes in unrecognized tax benefits	(19)		(1.1)	%
Other
Capital loss 3	(77)		(4.6)	%
Legal entity tax characterization 4	(49)		(2.9)	%
Other	(22)		(1.3)	%
Effective tax rate	$	484	28.7	%

1.State taxes in Minnesota made up the majority (greater than 50%) of the tax effect in this category.

2.For the year ended December 31, 2025, the company established a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil (Crop Protection business) in the amount of $132 million.

3.For the year ended December 31, 2025, a U.S. federal tax benefit of $(27) million, net of valuation allowance, was recorded to recognize a capital loss in a wholly owned foreign investment.

4.For the year ended December 31, 2025, a U.S. federal deferred tax benefit was recorded associated with a change in a legal entity's U.S. tax characterization in the amount of $(49) million.

As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:


Reconciliation to U.S. Statutory Rate	For the Year Ended December 31,
	2024		2023
Statutory U.S. federal income tax rate	21.0	%	21.0	%
Effective tax rates on international operations - net 1	4.8		(1.8)
Acquisitions, divestitures and ownership restructuring activities 2	(1.1)		3.6
U.S. research and development credit	(4.7)		(5.9)
Exchange gains/losses 3	1.7		2.0
State and local incomes taxes - net	1.3		0.9
Impact of Swiss Tax Changes 4	—		(7.9)
Excess tax benefits/deficiencies from stock compensation	(0.2)		(0.5)
Tax settlements and expiration of statute of limitations	(1.7)		(0.3)

Impact of Brazil valuation allowance 6	9.4		—
Repatriation of foreign earnings 5	1.7		2.9
Other – net	0.1		(0.1)
Effective tax rate on income from continuing operations	32.3	%	13.9	%

1. Includes the effects of local and U.S. taxes related to earnings of non-U.S. subsidiaries, changes in the amount of unrecognized tax benefits associated with these earnings, losses at non-U.S. subsidiaries without local tax benefits due to valuation allowances, and other permanent differences between tax and U.S. GAAP results.

2. Includes net tax charge of $46 million for the year ended December 31, 2023, associated with intellectual property realignment.

3. Principally reflects the impact of foreign exchange gains and losses on net monetary assets for which no corresponding tax impact is realized. Further information about the company's foreign currency hedging program is included in Note 6 - Supplementary Information, and Note 19 - Financial Instruments, to the Consolidated Financial Statements, under the heading "Foreign Currency Risk."

4. Includes net tax benefits of $(62) million and $(24) million for the year ended December 31, 2023, related to changes in deferred taxes and a tax currency change, respectively.

5. Includes the effect of withholding tax on distribution of foreign earnings to the U.S., net of U.S. foreign tax credits.

6. For the year ended December 31, 2024, a charge of $120 million was recorded to establish a valuation allowance against the net deferred tax asset position of

a legal entity in Brazil (Seed business).

EIDP