EMN · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

EASTMAN CHEMICAL CO · 2026-10-30 · Importance 34 · Surprise 42

Third quarter and first nine months 2026 income tax results included a $61 million reduction in unrecognized tax benefits, inclusive of related interest, following evaluation of new external information. The periods also included the impact of transitional provisions of the One Big Beautiful Bill Act, primarily concerning the deductibility of previously capitalized research and development expenditures. Third quarter and first nine months 2025 tax provision included a $22 million increase driven by the Act, and first nine months 2025 included a further $35 million increase related to unrecognized tax benefits.

Key facts

• A $61 million reduction in unrecognized tax benefits, including related interest, was reflected in Eastman's income tax provision for third quarter and the first nine months of 2026. source
• Eastman's first-nine-months 2025 income tax provision included a $35 million increase related to unrecognized tax benefits. source
• Eastman’s forecasted full-year effective tax rates were 14.5% for the first nine months of 2026 and 15.5% for the first nine months of 2025. source
• Eastman’s first-nine-months 2026 other (income) charges, excluding non-core items, were unfavorable year over year partly due to increased indirect taxes. source