2026-08-26T13:02:20+00:00 2025-12-31 135381590 BDO USA 421 FAYETTEVILLE ST STE 300 RALEIGH NC 276011776 990 2025-01-01 620786018 COTTON INCORPORATED COTT 9196782220 6399 WESTON PARKWAY CARY NC 27513 TIMOTHY JOHNSON VP & CFO 9196782220 2026-08-26 true SANDRA L FEINSMITH P01064157 9197549370 2026-08-26 2025 2025-03-06 01:10:19Z TIMOTHY JOHNSON 6399 WESTON PARKWAY CARY NC 27513 86904598 false X WWW.COTTONINC.COM X 1967 TN SEE SCHEDULE O. 107 107 151 107 0 89064927 86904598 0 0 0 0 0 0 89064927 86904598 274085 394834 0 0 23190542 24292115 0 0 0 63957922 61722077 87422549 86409026 1642378 495572 28431643 29773650 19401472 20247907 9030171 9525743 COTTON INCORPORATED, FUNDED BY U.S. GROWERS OF UPLAND COTTON AND IMPORTERS OF COTTON AND COTTON TEXTILE PRODUCTS, IS THE RESEARCH AND MARKETING COMPANY REPRESENTING UPLAND COTTON. 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1305397 GRAPHIC ARTS 1271019 MAINTENANCE 1046239 1760734 86409026 1782 1783 5538753 5501827 0 0 8622862 9437527 0 0 0 0 0 0 0 0 1731499 1948604 25557636 22885066 3070071 2672570 0 0 0 0 0 0 9466676 10211339 28431643 29773650 16225178 17236204 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3176294 3011703 19401472 20247907 X 9030171 9525743 0 0 9030171 9525743 28431643 29773650 495572 0 0 0 0 0 X X false true true false RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 6740901 6020274 720627 16880095 15173492 1706603 1936640 1691300 245340 2672570 RIGHT-OF-USE ASSETS 2499824 ACCRUED PENSION ASSET 7711515 10211339 FEDERAL INCOME TAXES OPERATING LEASE LIABILITIES 3011703 3011703 X 91186390 4281792 0 4281792 86904598 0 0 86904598 90690818 4281792 0 4281792 86409026 0 0 86409026 SCHEDULE D, PART X, LINE 2 FIN 48 (ASC 740) FOOTNOTE THE COMPANY IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE, EXCEPT FOR ANY UNRELATED BUSINESS INCOME. THE COMPANY IS REQUIRED TO FILE A RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX (FORM 990) WITH THE INTERNAL REVENUE SERVICE (IRS) ANNUALLY. THE COMPANY IS ALSO EXEMPT FROM STATE INCOME TAXES WITH THE EXCEPTION FOR ANY UNRELATED BUSINESS INCOME. THERE WAS NO UNRELATED BUSINESS INCOME EARNED DURING THE YEARS ENDED DECEMBER 31, 2025 AND 2024. THE COMPANY ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES USING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. THE COMPANY'S TAX RETURNS ARE OPEN FOR EXAMINATION FOR YEARS 2022 THROUGH 2024. EAST ASIA AND THE PACIFIC 2 18 PROGRAM SERVICES INFORMATION SUPPORT 5512926 NORTH AMERICA (CANADA & MEXICO ONLY) 1 4 PROGRAM SERVICES INFORMATION SUPPORT 1266500 EUROPE (INCLUDING ICELAND AND GREENLAND) 0 1 PROGRAM SERVICES INFORMATION SUPPORT 757467 CENTRAL AMERICA AND THE CARIBBEAN 0 1 PROGRAM SERVICES INFORMATION SUPPORT 99519 SOUTH AMERICA 0 0 PROGRAM SERVICES INFORMATION SUPPORT 114584 SOUTH ASIA 0 2 PROGRAM SERVICES INFORMATION SUPPORT 47669 NORTH AMERICA (CANADA & MEXICO ONLY) 0 0 PROGRAM SERVICES AGRICULTURAL RSCH 21097 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES INFORMATION SUPPORT 21945 3 26 0 0 3 26 7841707 0 7841707 false false false false false false SCHEDULE F, PART I, LINE 3 METHOD USED TO ACCOUNT FOR EXPENDITURES ON ORG'S FINANCIAL STATEMENTS CENTRAL AMERICA AND THE CARIBBEAN-ACCRUAL; EAST ASIA AND THE PACIFIC-ACCRUAL; EUROPE (INCLUDING ICELAND AND GREENLAND)-ACCRUAL; NORTH AMERICA (CANADA & MEXICO ONLY)-ACCRUAL; SOUTH AMERICA-ACCRUAL; SOUTH ASIA-ACCRUAL; SUB-SAHARAN AFRICA-ACCRUAL true SUPPORT FOR STUDENTS IN BREEDING/GENETICS STUDIES. 6 394834 SCHEDULE I, PART I, LINE 2 PROCEDURES FOR MONITORING USE OF GRANT FUNDS GRANTS ARE OVERSEEN BY OUR AGRICULTURAL AND ENVIRONMENTAL RESEARCH EMPLOYEES. THESE EMPLOYEES MONITOR THE PROGRESS OF THOSE RECEIVING GRANTS, INCLUDING REQUIRED COMMUNICATIONS OF THEIR PROGRESS AND SITE VISITS. X X true true X X true true false WILLIAM KIMBRELL PRESIDENT & CEO 394653 0 40000 0 21981 0 88500 0 44533 0 589667 0 0 0 TIMOTHY JOHNSON VP & CFO 222956 0 24093 0 24367 0 49783 0 41406 0 362605 0 0 0 JOHN KUCMIERZ VP, ADMINISTRATION 199196 0 19333 0 18585 0 73358 0 34218 0 344690 0 0 0 RYAN KURTZ VP, AGRICULTURAL & ENVIRONMENTAL RESEARCH 224599 0 21061 0 3782 0 52353 0 15365 0 317160 0 0 0 KIMBERLY S KITCHINGS SENIOR VP, CONSUMER MARKETING (THRU 07/2025) 168614 0 26840 0 160379 0 56282 0 37564 0 449679 0 0 0 MARK MESSURA SENIOR VP, GLOBAL SUPPLY CHAIN MARKETING (THRU 07/2025) 197012 0 29877 0 190114 0 87006 0 47363 0 551372 0 0 0 MIKE SHEN VP & MANAGING DIRECTOR, PDI 248517 0 22062 0 19159 0 61103 0 15399 0 366240 0 0 0 JOHN CHIAVACCI VP, INFORMATION TECHNOLOGY & CTO 224960 0 22498 0 12339 0 93388 0 38936 0 392121 0 0 0 BONNY KWAN DIRECTOR, ACCOUNT MANAGEMENT - ASIA 203393 0 11765 0 0 0 2301 0 3780 0 221239 0 0 0 MARY ANKENY VP, PDI OPERATIONS 211568 0 20666 0 16920 0 73765 0 37966 0 360885 0 0 0 JESSE DAYSTAR VP & CHIEF SUSTAINABILITY OFFICER 234615 0 24008 0 19950 0 39480 0 14990 0 333043 0 0 0 VIKKI MARTIN VP, FIBER COMPETITION 225145 0 23270 0 11318 0 73230 0 27841 0 360804 0 0 0 SCHEDULE J, PART I, LINE 1A FIRST-CLASS OR CHARTER TRAVEL THE COMPANY PROVIDES FOR BUSINESS CLASS TICKETS FOR ALL EMPLOYEES ON SELECT INTERNATIONAL TRIPS, WHICH INCLUDE FIRST-CLASS TICKETS WHEN DOMESTIC TRAVEL IS INVOLVED ON THOSE ITINERARIES. THE COMPANY MAY ALSO ALLOW FIRST-CLASS TICKETS FOR CERTAIN EMPLOYEES WITH HEALTH REASONS OR SEAT AVAILABILITY. SCHEDULE J, PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS TAX GROSS-UP PAYMENTS ARE MADE FOR SELECT EXECUTIVES TO REIMBURSE MEDICAL EXPENSES. SCHEDULE J, PART I, LINE 4A SEVERANCE OR CHANGE-OF-CONTROL PAYMENT DURING 2025, THE COMPANY SEPARATED FROM MARK MESSURA, FORMER SENIOR VP, GLOBAL SUPPLY CHAIN MARKETING, AND KIMBERLY KITCHINGS, FORMER SENIOR VP, CONSUMER MARKETING. THE COMPANY ENTERED INTO A SEVERANCE AGREEMENT WITH EACH INDIVIDUAL, PURSUANT TO WHICH MR. MESSURA AND MS. KITCHINGS ARE ENTITLED TO RECEIVE SEVERANCE PAYMENTS TOTALING $336,020 AND $287,136, RESPECTIVELY. THE SEVERANCE PAYMENTS ARE PAYABLE IN BI-WEEKLY INSTALLMENTS THROUGH JULY 3, 2026. IN ADDITION, THE COMPANY WILL CONTINUE TO PAY MEDICAL INSURANCE PREMIUMS ON BEHALF OF EACH INDIVIDUAL THROUGH JULY 31, 2026. MS. KITCHINGS IS ALSO ELIGIBLE TO RECEIVE UP TO $10,000 IN TAXABLE REIMBURSEMENTS THROUGH THE COMPANY'S MEDICAL REIMBURSEMENT PROGRAM. THE SEVERANCE PAYMENTS AND BENEFITS WERE CONDITIONED UPON EACH INDIVIDUAL'S EXECUTION OF A SEPARATION AND RELEASE AGREEMENT. SCHEDULE J, PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN WILLIAM KIMBRELL IS THE PARTICIPANT IN A SUPPLEMENTAL NON-QUALIFIED PLAN. FORM 990, PART I, LINE 1 BRIEF MISSION COTTON INCORPORATED, FUNDED BY U.S. GROWERS OF UPLAND COTTON AND IMPORTERS OF COTTON AND COTTON TEXTILE PRODUCTS, IS THE RESEARCH AND MARKETING COMPANY REPRESENTING UPLAND COTTON. THE PROGRAM IS DESIGNED AND OPERATED TO IMPROVE THE DEMAND FOR AND PROFITABILITY OF COTTON. FORM 990, PART III, LINE 4D DESCRIPTION OF OTHER PROGRAM SERVICES OTHER PROGRAM SERVICES INCLUDE RESEARCH AND DEVELOPMENT AND CORPORATE SERVICES. FORM 990, PART III, LINE 4A PROGRAM SERVICE DESCRIPTION CONSUMER MARKETING COMMITTEE THE ADVERTISING DEPARTMENT CONTINUED INTO YEAR TWO OF THE BRAND PLATFORM, THE FABRIC OF NOW. THIS FULL SCALE 360 EFFORT LAUNCHED IN APRIL 2025 WITH :15 SECOND AND :06 SECOND VIDEOS (COMMERCIALS). THIS CAMPAIGN HAS BEEN LIVE SINCE ITS LAUNCH ON APRIL 1 ACROSS BOTH LINEAR TELEVISION (ABC & FOX) AND STREAMING PLATFORMS TO DRIVE AWARENESS OF THE CAMPAIGN. THE LINEAR PORTION (ABC & FOX) RAN FOR A SIX-WEEK FLIGHT IN THE SECOND QUARTER OF 2025 AND DID NOT RESUME IN 2025. THE SECOND QUARTER LINEAR TV OVERALL SAW 21,370,000 IMPRESSIONS (WOMEN AND MEN AGES 18-49) AS OF MAY 31. ABC & FOX WERE ELIMINATED FOR THE SECOND HALF OF THE 2025 CALENDAR YEAR AFTER CAREFUL EVALUATION OF COST VERSUS RETURN ON INVESTMENT (COTTON INCORPORATED HAS SHIFTED AWAY FROM LINEAR TELEVISION COMPLETELY IN 2026). THE STREAMING PORTION OF THE CAMPAIGN IS ALWAYS-ON THROUGH THE END OF THE FOURTH QUARTER ACROSS AMAZON, DISCOVERY+, HULU, DISNEY STUDIO EXPERIENCE (DSE), MAX, NETFLIX, PARAMOUNT+, PEACOCK, ROKU, AND YOUTUBE SELECT. STREAMING IS PROJECTED TO DELIVER 326,485,528 IMPRESSIONS (WOMEN AND MEN AGES 18-34). DIGITAL CAMPAIGNS EXTEND ACROSS VIDEO AD SERVING NETWORKS, DIGITAL BANNERS, SITE TAKEOVERS, GAMING ACTIVATIONS, AND CUSTOM PARTNERSHIPS. CAMPAIGNS ARE INCLUSIVE OF :15 SECOND AND :06 SECOND VIDEO ASSETS THROUGH DIGITAL VIDEO PARTNERS, STATIC ASSETS FOR DIGITAL BANNERS, SITE TAKEOVERS, AND CUSTOM CONTENT DEVELOPED BY SELECT DIGITAL PARTNERS. THE DIGITAL CAMPAIGN IS PROJECTED TO DELIVER MORE THAN 131,913,354 IMPRESSIONS. FOR THE FIRST TIME, THE DEPARTMENT CONTINUED THE 2024 PAID SOCIAL MEDIA CAMPAIGN INTO THE FIRST QUARTER OF 2025 ON META (FACEBOOK AND INSTAGRAM), TIKTOK, AND PINTEREST TO MAINTAIN BRAND CONSIDERATION. THE NEW 2025 THE FABRIC OF OUR LIVES CAMPAIGNS PICKED UP IN APRIL ON META (FACEBOOK AND INSTAGRAM), TIKTOK, PINTEREST, YOUTUBE, AND SNAPCHAT, WITH REDDIT ADDED IN MAY. OVER 250 UNIQUE PIECES OF CONTENT WERE BUILT FOR THIS EFFORT AND ARE PROJECTED TO DELIVER 524,015,442 IMPRESSIONS. PUBLIC RELATIONS AND INFLUENCER OUTREACH CONTINUE TO BE A KEY PIECE OF THE MEDIA MODEL. IN 2025, COTTON STRATEGICALLY PARTNERED WITH INFLUENCERS AND CONTENT CREATORS TO SUPPORT BRAND INITIATIVES AND ENHANCE PAID MEDIA EFFORTS. THESE PARTNERSHIPS HAVE BEEN INSTRUMENTAL IN GENERATING CONTENT THAT DROVE AWARENESS, ENGAGEMENT, AND CONSIDERATION ACROSS PAID AND ORGANIC SOCIAL. BY LEVERAGING CREATORS WHO ALIGN WITH THE BRAND'S VALUES AND AUDIENCE, COTTON PRODUCED RELATABLE, HIGH-QUALITY ASSETS THAT FOSTERED AUTHENTIC CONNECTIONS WITH ITS TARGET DEMOGRAPHIC. INFLUENCER POSTS (ORGANIC AND PAID) WILL HAVE DRIVEN 160,417,747 IMPRESSIONS. TO FURTHER AMPLIFY COTTON AS A CULTURALLY RESONANT BRAND, CONTINUED PUBLIC RELATION EFFORTS FOR COTTON CONCENTRATED ON ENHANCING BRAND VISIBILITY THROUGH EVERGREEN PITCHING, TENTPOLE MOMENTS, AND EDUCATIONAL TOPICS SUCH AS SUSTAINABILITY/MICROPLASTICS. CONTINUED CONSUMER PUBLIC RELATION EFFORTS SUPPORT BOTH RETAIL PARTNERSHIPS AND ADVERTISING'S SELECT COLLABORATIONS. COMBINED EARNED IMPRESSIONS ARE ALMOST 7B, WITH 254 ARTICLES WRITTEN AND 2,159 COTTON MENTIONS. IN 2025 (JANUARY THROUGH DECEMBER), THE CORPORATE COMMUNICATIONS DEPARTMENT ESTIMATES OVER 3,140 NEWS ITEMS ABOUT COTTON INCORPORATED, REPRESENTING A REACH OF OVER 17.7B. THESE INCLUDE NEWS ITEMS ABOUT COMPANY MENTIONS, EXPERT QUOTES, COMPANY ACTIVITIES, AND SATELLITE MEDIA TOUR ACTIVITIES HIGHLIGHTING COTTON'S BENEFITS. CORPORATE COMMUNICATIONS HAS ALSO REVIEWED COMPANY-WIDE EXTERNAL MARKETING AND COMMUNICATION MATERIALS FOR BRAND REPUTATION AND MESSAGE ALIGNMENT. TO DATE, CORPORATE COMMUNICATIONS HAS REVIEWED OVER 850 SUBMISSIONS FROM MARKETING, FIBER COMPETITION, PRODUCT DEVELOPMENT, SUSTAINABILITY AND AGRICULTURAL RESEARCH. CONTENT INCLUDES ADS, SOCIAL CONTENT, EMAILS, BLOG POSTS, WEB CONTENT FOR OWNED CHANNELS AND PRESENTATIONS. NOTABLE AMONG THE CORPORATE COMMUNICATIONS DEPARTMENT'S ACCOMPLISHMENTS WERE ACTIVITIES IN SUPPORT OF THE SUSTAINABILITY OF U.S. COTTON, INCLUDING CORPORATE STRATEGY & INSIGHTS (CSI) DEPARTMENT AND ITS CONSUMER AND RETAIL TRENDS DATA, CONSUMER-FACING CORPORATE INITIATIVES SUCH AS THE BLUE JEANS GO GREEN DENIM RECYCLING PROGRAM, AND FURTHER AMPLIFICATION OF THE COTTONSEED AND COTTONSEED OIL INDUSTRY. THE DEPARTMENT ALSO WORKED CLOSELY WITH THE GLOBAL SUPPLY CHAIN MARKETING DEPARTMENT THROUGHOUT THE YEAR TO PROMOTE THE WORK BEING DONE IN THE INDUSTRY. DURING THIS TIME, CORPORATE COMMUNICATIONS SUPPORTED INITIATIVES FROM BRAND PARTNERSHIPS, ADVERTISING, CORPORATE STRATEGY & INSIGHTS, FIBER COMPETITION AND PRODUCT DEVELOPMENT & IMPLEMENTATION. THE TEAM ALSO SECURED COVERAGE OF TRADE-FOCUSED INITIATIVES FROM MARKETING, SUSTAINABILITY AND CORPORATE STRATEGY & INSIGHTS AND PRODUCT DEVELOPMENT & IMPLEMENTATION. THE BLUE JEANS GO GREEN (BJGG) PROGRAM STARTED 2025 WITH RETURNING CONSUMER-FACING RETAIL PROGRAM PARTICIPANTS, INCLUDING ANTHROPOLOGIE, ARIAT, AMERICAN EAGLE OUTFITTERS, CARHARTT, MADEWELL, MUJI, PAIGE, RAG & BONE, WILCO AND ZAPPOS, ALONG WITH INTEREST FROM POTENTIAL NEW RETAILER PARTICIPANTS TO LEARN MORE ABOUT THE PROGRAM AND THEIR PARTICIPATION LATER IN THE YEAR. THE RECYCLING PROGRAM CONTINUES TO THRIVE DUE TO ITS UNWAVERING COMMITMENT TO SUSTAINABILITY, CREATING ACTIONABLE OPPORTUNITIES AS WELL AS PROVIDING INFORMATION TO CONSUMERS, BRANDS AND RETAILERS, BUSINESSES, AND ORGANIZATIONS ABOUT COTTON'S CIRCULARITY. THE BLUE JEANS GO GREEN PROGRAM OFFERS DIGESTIBLE INFORMATION ON THE COMPLEX SUBJECT OF SUSTAINABILITY, INCREASING APPEAL FOR COTTON'S ENDEMIC BRANDS, RETAILERS, AND NON-ENDEMIC BUSINESSES AND ORGANIZATIONS TO CONTINUE TO PARTICIPATE AND MEET THEIR SOCIAL RESPONSIBILITY GOALS WHILE EDUCATING AND ENGAGING CONSUMERS. THE SECOND HALF OF 2025 CONTINUED TO SEE STRONG PARTICIPATION FROM BRANDS AND RETAILERS RETURNING FOR ANNUAL FALL TAKEBACK PROGRAMS INCLUDING THEISEN'S AND KIMES RANCH AS WELL AS A NEW CONSUMER-FACING RETAIL PARTICIPANT, VERONICA BEARD. IN DECEMBER, CONTEMPORARY RETAILER RAILS ALSO JOINED BJGG FOR THEIR FIRST TIME WITH AN IN-STORE PROMOTION. ADDITIONALLY, THROUGHOUT THE YEAR VIA INFLUENCER PARTNERSHIPS, SOCIAL CONTENT AND DEDICATED CAMPAIGNS THE PROGRAM WORKED TO INCREASE ENGAGEMENT AND GROW AUDIENCES BY INCREASING BRAND VISIBILITY AND EDUCATING ON COTTON SUSTAINABILITY AND PROGRAM IMPACT. THE STRATEGIC AND RETAIL PARTNERSHIPS INCLUDED A DIVERSE RETAIL PROGRAM LINE-UP FOR 2025, WHICH INCLUDED HIGH PERFORMING BRANDS WITH RELEVANCY IN THE MARKETPLACE. THE FIRST HALF OF THE YEAR KICKED-OFF WITH PROGRAM LAUNCHES WITH REVOLVE AND LOVESHACKFANCY. THE TEAM ALSO WORKED ON PLANS FOR A FALL PROGRAM WITH INFLUENCER FOUNDED BRAND WEWOREWHAT FOR THE SECOND HALF OF THE YEAR WITH AN EARLY NOVEMBER RELEASE. THE FINAL PROGRAM OF THE YEAR CONCLUDES WITH POWERHOUSE, VICTORIA'S SECRET, WHO THE TEAM ONBOARDED FOR A HOLIDAY PROGRAM FEATURING COTTON PAJAMAS AND LOUNGEWEAR. THE VERSATILITY OF THE RETAIL PARTNERS FOR 2025 ENSURED THAT THE SEAL OF COTTON WAS HIGHLY VISIBLE TO AN EXTENSIVE CONSUMER SET, ENSURING TARGETED COTTON BENEFIT MESSAGING CUSTOM TO EACH RETAILER'S AUDIENCE. TIGHTENING BUDGETS, INFLATION, AND COMPETITION FROM SYNTHETIC FIBERS HAS PUSHED THE TEAM TO BE RESOURCEFUL AND TO CONTINUE TO BE INNOVATIVE AND CREATE NEWNESS IN DEVELOPING UNIQUE COTTON EXPERIENCES AT RETAIL. ONE OF THE MOST NOTABLE, MEDIA-WORTHY EXECUTIONS OF THE YEAR WAS COTTON'S LOVESHACKFANCY SUMMER PROGRAM FEATURING THE DALLAS COWBOYS CHEERLEADERS WHICH GARNERED APPROXIMATELY 1.47B PRESS IMPRESSIONS. IN 2025, CORPORATE STRATEGY & INSIGHTS LED EFFORTS TO IDENTIFY OPPORTUNITIES AND THREATS FOR COTTON USING MARKET INTELLIGENCE, INCLUDING ONGOING RESEARCH OF U.S. CONSUMERS' ATTITUDES FROM THE LIFESTYLE MONITOR SURVEY, ASSESSMENTS OF COTTON'S SHARE THROUGH IMPORT DATA, AND THE RETAIL MONITOR STUDY, AS WELL AS GLOBAL MARKET AND ECONOMIC RESEARCH AND ANALYSIS. CORPORATE STRATEGY & INSIGHTS PROVIDED OVER 150 INFORMATION REQUESTS; PARTICIPATED IN OVER 120 MEETINGS AND PRESENTATIONS; AUTHORED 234 PUBLICATIONS, VIDEOS, TV/RADIO SEGMENTS, AND PODCASTS; AND WORKED ON 30 PROJECTS. WORK COMPLETED BY CORPORATE STRATEGY & INSIGHTS IN 2025 INCLUDES, BUT IS NOT LIMITED TO: THE COLLECTION AND EXAMINATION OF DATA ON MORE THAN 12M PRODUCTS OFFERED AT RETAIL IN THE U.S.; THE EVALUATION OF JUST OVER 20K U.S. AND 48K GLOBAL CONSUMERS; THE UPDATE OF A COMPREHENSIVE DATABASE OF MONTHLY APPAREL AND HOME FURNISHING IMPORTS TO ASSESS SOURCING PATTERNS AND TARIFF IMPACTS; AND THE DELIVERY OF CONSUMER AND ECONOMIC OUTLOOK PRESENTATIONS, WEBINARS, AND INTERVIEWS. FORM 990, PART III, LINE 4B PROGRAM SERVICE DESCRIPTION GLOBAL SUPPLY CHAIN MARKETING COMMITTEE THE GLOBAL SUPPLY CHAIN MARKETING (GSCM) DIVISION WORKS WITH MANUFACTURERS, BRANDS, AND RETAILERS WORLDWIDE TO INFLUENCE THE USE OF COTTON IN PRODUCTS. IN 2025, THERE WERE AN ADDITIONAL 13.5 MILLION PRODUCTS IN STORES CARRYING THE SEAL OF COTTON TRADEMARK. WE HAD 29 NEW SEAL OF COTTON TRADEMARK LICENSEES IN 2025. THERE WAS MORE THAN $240M IN COTTON UTILIZED. MORE THAN 40 MILLION COTTON PRODUCTS WERE INFLUENCED BY TECHNOLOGY MARKETING. MORE THAN 2.8M BALES OF COTTON WERE CONSUMED THROUGH LICENSED AND TECHNOLOGY-DRIVEN PRODUCTS. THE MEXICO CITY STAFF HOSTED ITS MAJOR IN-PERSON ANNUAL PROMOTIONAL EVENT, THE SOURCING & INNOVATION FORUM 2025 IN MEXICO CITY. THE EVENT GATHERED 180 EXECUTIVES FROM 95 KEY MEXICAN BRANDS, RETAILERS, GARMENT MANUFACTURERS, AND TEXTILE MILLS. THIS EVENT INCLUDED AN INNOVATIVE SOURCING DISPLAY EXHIBITING OVER 550 COTTON-RICH FABRICS AND 115 GARMENTS FROM 47 LATIN AMERICAN MANUFACTURERS. THE PURPOSE WAS TO SUPPORT THE SALES OF COTTON PRODUCTS BY CONNECTING BUYERS AND PRODUCERS IN RESPONSE TO A POTENTIAL NEW SOURCING LANDSCAPE IN THE REGION. ADDITIONALLY, OTHER MAJOR RESOURCES SUCH AS THE FABRICAST COLLECTION, DIGITAL PRODUCT CREATION, COLOR AND TREND INFORMATION, AND TECHNOLOGY INNOVATIONS WERE ALSO EXHIBITED. THE PROGRAM WAS COMPRISED OF PRESENTATIONS ON PRODUCT DEVELOPMENT, THE MEXICAN APPAREL CONSUMER BEHAVIOR, THE ANALYSIS OF COTTON ECONOMICS, AND THE COTTON STRATEGIC ADVANTAGE. THE EVENT WAS FRAMED UNDER THE "COTTON CAN" AD CAMPAIGN, THE COTTONWORKS WEBSITE PROMOTION AND EMPHASIZED THE NATURAL BENEFITS OF COTTON. A ONE-DAY EVENT WAS ORGANIZED IN HONG KONG TO SHOWCASE AND PROMOTE COTTON RESOURCES TO COMPANIES IN THE ASIAN REGION. THE EVENT ALSO CREATED A PLATFORM FOR BRANDS, RETAILERS, AND SOURCING COMPANIES TO NETWORK AND CREATE BUSINESS OPPORTUNITIES WITH REGIONAL TEXTILE/GARMENT MILLS. A TOTAL OF 255 PARTICIPANTS FROM 124 COMPANIES FROM 12 COUNTRIES ATTENDED THE EVENT. HIGHLIGHTS OF THE EVENT INCLUDED; 1) PRESENTATIONS ON THE LATEST COTTON MARKET INFORMATION, SUSTAINABLE DYES/FINISHING, EU REGULATIONS, LATEST FASHION TRENDS, FABRIC DEVELOPMENTS, ETC. 2) 48 COMPANIES EXHIBITED THEIR LATEST COTTON INNOVATIVE PRODUCTS, 3) COTTON PERFORMANCE TECHNOLOGY DISPLAYS AND TECHNICAL EXPERTS DISCUSSION SESSIONS, 4) DISPLAYS INCLUDED; LAUNCH OF THE COTTONWORKS WEBSITE, "COTTON CAN AD CAMPAIGN "WORDS FROM OUR PRODUCERS", 5) PRESENTATION OF SUPPLY CHAIN PARTNER AWARDS TO FOUR REGIONAL COMPANIES, CONSISTING OF THREE TEXTILE MILLS AND ONE BRAND, AND 6) THE EVENT ENDED WITH A NETWORKING RECEPTION WHICH CREATED MUCH INTERACTION AS WELL AS BUSINESS OPPORTUNITIES. THE EVENT ATTRACTED STRONG MEDIA COVERAGE, INCLUDING FEATURES IN SOURCING JOURNAL, YAHOO FINANCE, THE INTERLINE, HOME TEXTILES TODAY, ECOTEXTILE NEWS, ETEXTILECOMMUNICATIONS, AND SPORTS TEXTILES. U.S. STAFF ATTENDED AND MANAGED A BOOTH AT THE KINGPINS SHOW IN NEW YORK CITY IN JANUARY AND JULY. STAFF MET WITH MORE THAN 100 VISITORS AND 91 FABRICS WERE REQUESTED. U.S. STAFF ATTENDED AND MANAGED A BOOTH AT THE FUNCTIONAL FABRIC FAIR SHOW IN PORTLAND, OR IN APRIL AND NOVEMBER. STAFF MET WITH MORE THAN 171 VISITORS AND 354 FABRICS WERE REQUESTED. U.S. STAFF HOSTED AN ECONOMIC PRESENTATION AND A SUSTAINABILITY PRESENTATION AT THE NOVEMBER FUNCTIONAL FABRIC FAIR, IN ADDITION TO SUPPORTING A COTTON FORUM AT THE SHOW. U.S. STAFF ATTENDED THE INTERWOVEN SHOW IN HIGH POINT, NC IN MAY AND HOSTED A PANEL DISCUSSION CENTERED AROUND NATURAL FIBERS AND HAD MORE THAN 45 PEOPLE IN ATTENDANCE. TO DATE IN 2025, 26 IN PERSON AND 34 VIRTUAL TECHNICAL EDUCATION WORKSHOPS WERE EXECUTED IN SUPPORT OF COTTON USE. OVER 2,000 DECISION MAKERS ATTENDED THE IN-PERSON AND VIRTUAL WORKSHOPS. THE 2025 COTTON IN THE CURRICULUM PROGRAM IS UNDERWAY WITH 15 GRANTS FROM 15 U.S. UNIVERSITIES. STAFF HOSTED THE ANNUAL BRAND AND RETAILER FARM TOURS DESIGNED TO CONNECT THE PEOPLE WHO BUY COTTON WITH THE PEOPLE WHO GROW IT. THESE TOURS SERVE AS AN ESSENTIAL LINK IN EDUCATING BRANDS AND RETAILERS ABOUT THE ORIGINS OF U.S. COTTON AND THE SCIENCE, TECHNOLOGY, AND SUSTAINABILITY PRACTICES THAT DRIVE ITS PRODUCTION. THIS YEAR'S TOURS WERE HELD OCTOBER 6-10, BRINGING TOGETHER OVER 65 PARTICIPANTS REPRESENTING 36 COMPANIES. STAFF IS FOCUSED ON CREATING AND PROMOTING RELEVANT, UP-TO-DATE, AND NEW CONTENT FOR THE COTTONWORKS WEBSITE, PARTICULARLY TARGETING MICROPLASTICS, RECYCLING COTTON, AND TRACEABILITY. SEARCH ENGINE MARKETING AND DIGITAL MARKETING CONTINUE TO BE GOOD TACTICS TO DRIVE DECISION MAKERS TO THE NEW CONTENT. MICROPLASTICS CONTINUES TO BE A MARKETING OPPORTUNITY FOR COTTON IN THE SUPPLY CHAIN. LAUNCHED A NEW INITIATIVE TO PROMOTE SUPPLIER-READY COTTON LEGGINGS AND BOTTOMWEIGHT FABRICS TO BRANDS AND RETAILERS, WITH A GOAL TO INCREASE COTTON USE IN THE BOTTOMS CATEGORY. A SWATCH BOOK AND FABRIC HEADERS WERE CREATED TO ASSIST IN PROMOTION. LAUNCHED COTTONWORKS YOUTUBE CHANNEL TO TARGET DECISION MAKERS LOOKING FOR MORE EDUCATIONAL, HOW-TO VIDEOS. SOCIAL MEDIA CONTINUES TO BE A PUSH FOR THE DIVISION, INCLUDING A NEW SOCIAL MEDIA STRATEGY THAT IS IN THE EARLY STAGES OF EXECUTION. EXECUTED A TRADE-FOCUSED ADVERTISING CAMPAIGN "COTTON CAN." THE CAMPAIGN CHALLENGES INDUSTRY PROFESSIONALS AND DECISION-MAKERS IN THE APPAREL, HOME, AND NONWOVEN MARKETS WITH THE QUESTION, "WHAT WILL YOU CREATE?" THIS INITIATIVE EXTENDS INTO HUNDREDS OF PRINT, DIGITAL, SOCIAL, AND TRADESHOW PLACEMENTS. MESSAGING AIMS TO SHOWCASE THE VERSATILE ATTRIBUTES OF COTTON, FROM ITS SUSTAINABILITY AND PERFORMANCE TO ITS INNOVATIVE DESIGN CAPABILITIES. THE CAMPAIGN ALSO SPOTLIGHTS THE SEAL OF COTTON AND COTTONWORKS AS A PREMIUM RESOURCE TO THE INDUSTRY. MESSAGES WERE TESTED WITH 250 TEXTILE DECISION MAKERS THROUGH THIRD-PARTY RESEARCH. OVER 90% OF RESPONDENTS INDICATED THE MESSAGE WOULD DRIVE THEM TO USE MORE COTTON. MOST RECENTLY, A NEW AD WAS DEVELOPED ON MICROPLASTICS. LAUNCHED THE REIMAGINED COTTONWORKS WEBSITE, A BOLD DIGITAL TRANSFORMATION DESIGNED TO BETTER SERVE TODAY'S TEXTILE PROFESSIONALS. THE NEW PLATFORM OFFERS AN INTUITIVE, FASHION-FORWARD EXPERIENCE, PACKED WITH TOOLS TO SUPPORT COMPLIANCE, PRODUCT DEVELOPMENT, SOURCING, AND EDUCATION. OVER THE SPAN OF 10 MONTHS IN 2025, WE HAD MORE THAN 651K PAGEVIEWS, 260K USERS, 338K SESSIONS AND 161K ENGAGED SESSIONS WITH AN AVERAGE TIME ON SITE OF 3 MINUTES. FORM 990, PART III, LINE 4C PROGRAM SERVICE DESCRIPTION AGRICULTURAL RESEARCH COMMITTEE THE AGRICULTURAL AND ENVIRONMENTAL RESEARCH DEPARTMENT (AERD) MANAGES THE PROGRAM AREA THAT MOST DIRECTLY INFLUENCES U.S. COTTON PRODUCERS. ITS UNIQUE MISSION IS TO IMPROVE THE PROFITABILITY OF U.S. COTTON PRODUCTION BY FUNDING THE CREATION OF AGRICULTURAL INNOVATIONS AND THEIR ADOPTION BY COTTON PRODUCERS. AERD HAS FIVE KEY STRATEGIC AREAS FOR 2025: PEST MANAGEMENT, COTTONSEED, SUSTAINABILITY SUPPORT, EMERGING TECHNOLOGIES, AND GENOMICS. FOR PEST MANAGEMENT, AERD STAFF FUNDED RESEARCH TO ADDRESS RESISTANT WEEDS AND INTEGRATE OTHER MECHANICAL, NON-HERBICIDAL CONTROL OPTIONS. PATHOLOGY RESEARCH FOCUSED ON EXPANDING OUR UNDERSTANDING OF ENVIRONMENTAL DRIVERS OF DISEASE AS WELL AS TO BETTER UNDERSTAND THE IMPACTS ON YIELD LOSS BY STATE ACROSS THE BELT. THIS YEAR, ENTOMOLOGY FOCUSED ON PESTS DRIVING HIGHEST LOSSES, COSTS AND EMERGING THREATS TO PRODUCTION SUCH AS DEER AND COTTON JASSID. THE COTTONSEED PROGRAM FOCUSED ON UNDERSTANDING THE DOSE NECESSARY THE BENEFITS TO HUMAN HEALTH AND ANIMAL NUTRITION WITH AN EMPHASIS ON PUBLISHING RECENT DAIRY TRIALS UTILIZING WHOLE COTTONSEED IN RATIONS. FOR EMERGING TECHNOLOGIES RESEARCH ON ALTERNATIVE HARVEST SYSTEMS CONTINUED. SUSTAINABILITY SUPPORT SPANS ALL AREAS OF AERD RESEARCH. OPTIMIZING MANAGEMENT STRATEGIES FOR SOIL HEALTH, NUTRIENT USE EFFICIENCY AND WATER LIMITED PRODUCTION SYSTEMS WERE PRIORITIES THIS PAST YEAR. FINALLY, GENOMICS PROJECTS TO IDENTIFY GENES FOR IMPORTANT AGRONOMIC TRAITS SUCH AS YIELD, FIBER QUALITY, AND PEST RESISTANCE WERE PROGRESSED IN 2025. IN 2025, THE SUSTAINABILITY DIVISION REMAINED FOCUSED ON STRENGTHENING THE REPUTATION OF U.S. COTTON BY IMPROVING THE QUALITY, CREDIBILITY, AND VISIBILITY OF SUSTAINABILITY DATA USED ACROSS THE VALUE CHAIN. THIS WORK SUPPORTS COTTON INCORPORATED'S MISSION TO INCREASE DEMAND AND PROFITABILITY FOR COTTON BY ENSURING ENVIRONMENTAL PERFORMANCE IS ACCURATELY REPRESENTED THROUGH SOUND SCIENCE, CREDIBLE LIFE CYCLE DATA, AND CLEAR COMMUNICATION. ACTIVITIES WERE FOCUSED ACROSS THREE CORE AREAS: SUPPORT FOR THE U.S. COTTON TRUST PROTOCOL, RESEARCH AND LIFE CYCLE ASSESSMENT, AND COMMUNICATIONS AND ENGAGEMENT. SUPPORT FOR THE U.S. COTTON TRUST PROTOCOL REMAINED A FOUNDATIONAL PRIORITY. MORE THAN 1,674 PRODUCER ENTITIES REPRESENTING APPROXIMATELY 924,000 PLANTED ACRES WERE ENROLLED IN THE PROGRAM IN 2025. THROUGH THE ADVANCING MARKETS FOR PRODUCERS INITIATIVE, $37 MILLION IN PAYMENTS WERE DELIVERED TO GROWERS, SUPPORTING PARTICIPATION AND CONTINUED ADOPTION OF SUSTAINABILITY PRACTICES ACROSS U.S. COTTON PRODUCTION. AT THE RESEARCH LEVEL, THE DIVISION ADVANCED PROJECTS TO STRENGTHEN THE SCIENTIFIC FOUNDATION USED TO ASSESS COTTON SUSTAINABILITY. THE LIFE CYCLE INVENTORY AND ASSESSMENT OF U.S. COTTON PRODUCTION FROM SEED TO BALE WAS COMPLETED, WITH UPDATED DATASETS SUBMITTED TO CASCALE (HIGG MSI) AND GLIMPACT. PEER-REVIEWED PUBLICATIONS REINFORCED COTTON'S ENVIRONMENTAL CHARACTERISTICS, INCLUDING THE NATURAL BIODEGRADABILITY OF CELLULOSE FIBERS AND COMPARATIVE IMPACTS ASSOCIATED WITH OPEN BURNING OF COTTON AND POLYESTER TEXTILE WASTE. LIFE CYCLE ASSESSMENT WORK GENERATED UPDATED, FIBER-SPECIFIC END-OF-LIFE DATA FOR COTTON, POLYESTER, AND BLENDS ACROSS MAJOR DISPOSAL PATHWAYS, SUPPORTING MORE COMPLETE AND TRANSPARENT EVALUATION OF TEXTILE MATERIALS ACROSS THE LIFE CYCLE. APPLIED RESEARCH WITH RELEVANCE TO GROWER OUTCOMES AND CIRCULARITY ALSO PROGRESSED. SOIL HEALTH AND SOIL CARBON RESEARCH CONTINUED ACROSS THE SOUTHEASTERN U.S. AND TEXAS TO IMPROVE UNDERSTANDING OF MANAGEMENT IMPACTS ON SOIL ORGANIC CARBON. CONSERVATION AND HABITAT INITIATIVES ADVANCED THROUGH THE QUAIL FOREVER COLLABORATION. CIRCULARITY RESEARCH PROGRESSED THROUGH NATIONAL MATERIAL FLOW ANALYSIS OF DISCARDED TEXTILES, LARGE SCALE COMPOSTING RESEARCH OF COTTON TEXTILES, AND CONTINUED DEVELOPMENT OF PLASTICFADE, A FRAMEWORK FOR MODELING PLASTIC FRAGMENTATION AND DEGRADATION IN LIFE CYCLE ASSESSMENTS. COMMUNICATION AND ENGAGEMENT EFFORTS WERE ALIGNED WITH RESEARCH ACTIVITIES TO IMPROVE AWARENESS AND UNDERSTANDING OF COTTON SUSTAINABILITY. IN COLLABORATION WITH THE CORPORATE COMMUNICATIONS AND MARKETING DIVISIONS, THE SUSTAINABILITY DIVISION SUPPORTED EARNED MEDIA, DIGITAL OUTREACH, COTTONTODAY, AND COTTONWORKS CONTENT FOCUSED ON COTTON'S NATURAL FIBER CHARACTERISTICS AND BIODEGRADABILITY. ENGAGEMENT THROUGH NGOS, STANDARD DEVELOPMENT ORGANIZATIONS, ACADEMIC COLLABORATORS, CONFERENCES, AND WORKSHOPS REINFORCED COTTON'S REPUTATION AS A SCIENCE-BASED, CREDIBLE MATERIAL GROUNDED IN TRANSPARENT DATA AND ONGOING RESEARCH. FORM 990, PART VI, LINE 15 PROCESS TO ESTABLISH COMPENSATION AN INDEPENDENT COMPENSATION COMMITTEE DETERMINES COMPENSATION FOR ALL EMPLOYEES OF THE COMPANY. THE COMPENSATION COMMITTEE ENGAGES AN OUTSIDE CONSULTANT TO PROVIDE RECOMMENDATIONS BASED ON COMPARABLE PAY INFORMATION AS WELL. FORM 990, PART VI, LINE 1A DELEGATE BROAD AUTHORITY TO A COMMITTEE IN ABSENCE OF THE FULL BOARD OF DIRECTORS BEING AVAILABLE, THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS MAY VOTE ON ISSUES THAT ARISE. THE RESULTS OF ANY ACTION BROUGHT FORTH ARE VOTED ON AND RECOGNIZED IN THE MINUTES. UPON THE NEXT MEETING OF THE BOARD OF DIRECTORS, THE EXECUTIVE COMMITTEE WILL PROVIDE A SUMMARY OF SUCH ACTION AND NOTIFY OF THE OUTCOME. THE VOTING MEMBERS OF THE EXECUTIVE COMMITTEE ARE COMPRISED SOLELY OF MEMBERS OF THE BOARD OF DIRECTORS AND ITS COMPOSITION IS VOTED UPON BY THE FULL BOARD OF DIRECTORS ANNUALLY. FORM 990, PART VI, LINE 2 FAMILY/BUSINESS RELATIONSHIPS AMONGST INTERESTED PERSONS JONATHAN ISBELL AND TYLER ISBELL - FAMILY RELATIONSHIP FORM 990, PART VI, LINE 11B REVIEW OF FORM 990 BY GOVERNING BODY THE FORM 990 IS REVIEWED IN DETAIL WITH THE COMPANY'S AUDIT COMMITTEE AT THE AUGUST BOARD OF DIRECTORS MEETING FOR APPROVAL PRIOR TO FILING. SUBSEQUENT TO REVIEW, THE CHAIRMAN OF THE AUDIT COMMITTEE WILL INFORM THE COMPLETE BOARD OF DIRECTORS OF THE PROCEEDINGS AND OUTCOME. FORM 990, PART VI, LINE 12C CONFLICT OF INTEREST POLICY ALL DIRECTORS ARE REQUESTED TO ATTEST THAT THEY ARE FREE OF ANY CONFLICTS OF INTEREST. FORM 990, PART VI, LINE 19 REQUIRED DOCUMENTS AVAILABLE TO THE PUBLIC THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST BY AN APPROPRIATE PARTY. FORM 990, PART XII, LINE 2C CHANGE OF OVERSIGHT PROCESS OR SELECTION PROCESS THERE HAVE BEEN NO CHANGES DURING THE YEAR IN THE PROCESS FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS.