v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
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)202420232022
Income (loss) from continuing operations before income taxes
Domestic$324 $(414)$(1)
Foreign951 1,507 1,427 
Income (loss) from continuing operations before income taxes$1,275 $1,093 $1,426 
Current tax expense (benefit)
Federal$285 $143 $65 
State and local45 40 21 
Foreign447 407 403 
Total current tax expense (benefit)$777 $590 $489 
Deferred tax expense (benefit)
Federal$(300)$(326)$(170)
State and local(28)(50)(39)
Foreign(37)(62)(70)
Total deferred tax expense (benefit)$(365)$(438)$(279)
Provision for (benefit from) income taxes on continuing operations412 152 210 
Net income (loss) from continuing operations after taxes$863 $941 $1,216 
Reconciliation to US Statutory Rate
Reconciliation to U.S. Statutory RateFor the Year Ended December 31,
202420232022
Statutory U.S. federal income tax rate21.0 %21.0 %21.0 %
Effective tax rates on international operations - net1,6
4.8 (1.8)(1.0)
Acquisitions, divestitures and ownership restructuring activities2
(1.1)3.6 (5.4)
U.S. research and development credit(4.7)(5.9)(2.2)
Exchange gains/losses3
1.7 2.0 3.7 
State and local incomes taxes - net1.3 0.9 0.3 
Impact of Swiss Tax Changes4
— (7.9)— 
Excess tax benefits/deficiencies from stock compensation(0.2)(0.5)(0.7)
Tax settlements and expiration of statute of limitations(1.7)(0.3)0.1 
Impact of Brazil valuation allowance6, 7
9.4 — (2.5)
Repatriation of foreign earnings5
1.7 2.9 1.7 
Other – net0.1 (0.1)(0.3)
Effective tax rate on income from continuing operations32.3 %13.9 %14.7 %
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. Includes net tax benefits of $(55) million and $(42) million for the year ended December 31, 2022, related to deferred tax assets established upon change in a U.S. entity's tax characterization, and a worthless stock deduction on Company's investment in a subsidiary after a change in the entity's legal structure, respectively.
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 7 - Supplementary Information, and Note 20 - Financial Instruments, 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. Classification in "Effective tax rates on international operations-net" and "Impact of Brazil valuation allowance" for the year ended December 31, 2022 have been adjusted from their previous presentation to conform to the current year's presentation.
7. 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). For the year ended December 31, 2022, a benefit of $(36) million was recorded to release a valuation allowance against the net deferred tax asset position of a legal entity in Brazil (Crop Protection business).
Deferred Tax Balances
Deferred Tax Balances at December 31,20242023
(In millions)AssetsLiabilitiesAssetsLiabilities
Property$— $278 $— $353 
Operating loss and tax credit carryforwards1
552 — 539 — 
Accrued employee benefits671 — 703 — 
Other accruals and reserves590 — 603 — 
Intangibles— 1,950 — 2,153 
Inventory184 — 193 — 
Research and development capitalization761 — 607 — 
Investments69 — 39 — 
Unrealized exchange gains/losses— 50 — 38 
Other – net40 — 55 — 
Subtotal$2,867 $2,278 $2,739 $2,544 
Valuation allowances2
(666)— (510)— 
Total$2,201 $2,278 $2,229 $2,544 
Net deferred tax asset (liability)$(77)$(315)
1.    Primarily related to tax loss and credit carryforwards from operations in the United States, Argentina, Brazil, Switzerland, and Spain.
2.    During the year ended December 31, 2024, the company established a valuation allowance recorded against the net deferred tax asset position of a legal entity in Brazil.
Operating Loss and Tax Credit Carryforwards
Operating Loss and Tax Credit CarryforwardsDeferred Tax Asset
(In millions)20242023
Operating loss carryforwards
Expire within 5 years$222 $103 
Expire after 5 years or indefinite expiration226 303 
Total operating loss carryforwards$448 $406 
Tax credit carryforwards
Expire within 5 years$13 $59 
Expire after 5 years or indefinite expiration91 74 
Total tax credit carryforwards$104 $133 
Total operating loss and tax credit carryforwards$552 $539 
Total Gross Unrecognized Tax Benefits
Total Gross Unrecognized Tax BenefitsFor the Year Ended December 31,
(In millions)202420232022
Total unrecognized tax benefits as of beginning of period$390 $357 $377 
Decreases related to positions taken on items from prior years(4)— (3)
Increases related to positions taken on items from prior years13 23 4 
Increases related to positions taken in the current year12 16 11 
Settlement of uncertain tax positions with tax authorities(140)(4)(24)
Decreases due to expiration of statutes of limitations(5)(2)(5)
Exchange (gain) loss(3)— (3)
Total unrecognized tax benefits as of end of period$263 $390 $357 
Total unrecognized tax benefits that, if recognized, would impact the effective tax rate$176 $173 $139 
Total amount of interest and penalties (benefits) recognized in provision for (benefit from) income taxes on continuing operations$(4)$1 $1 
Total accrual (receivable) for interest and penalties associated with unrecognized tax benefits at end of period$(2)$11 $13 
Tax Year Subject to Examination
Tax Years Subject to Examination by Major Tax Jurisdiction at December 31, 2024Earliest Open Year
Jurisdiction
Argentina2017
Brazil2015
Canada2017
China2014
France2021
India2023
Italy2019
Spain2020
Switzerland2020
United States:
Federal income tax2012
State and local income tax2012