Inventories

3 Months Ended

Mar. 31, 2026

Inventories consisted of:


($ in millions)	March 31, 2026		December 31, 2025
Finished goods	$	734	$	751
Raw materials	13		14
Work in process	800		791
Supplies	74		81
Total (approximates current cost)	$	1,621	$	1,637
Increase (Decrease) to last in, first out (“LIFO”) costs	4		5
	$	1,625	$	1,642
Recognized as:
Inventories	$	1,373	$	1,406
Other assets	252		236

Inventories valued under the LIFO method	135		114

In connection with the Jada divestiture in January 2026, $8 million of inventory was reclassified to Assets held for sale on the Consolidated Balance Sheet as of December 31, 2025.

As part of the Dermavant acquisition in 2024, the Company acquired $97 million of inventory, which included a $63 million purchase accounting inventory fair value adjustment. As of March 31, 2026 the amount has been fully amortized. As of December 31, 2025, there was $7 million remaining in inventory related to the fair value adjustment.

Amounts recognized as Other assets are comprised primarily of raw materials and work in process inventories and are not expected to be converted to finished goods that will be sold within one year. The Company has long-term vendor supply contracts that include certain annual minimum purchase commitments.