v3.26.1
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Financial Instruments Recorded at Estimated Fair Value
The following financial instruments were recorded at their estimated fair value. The recurring fair value measurement of the assets and liabilities was as follows:

($ in millions)Fair Value Measurement Level March 31, 2026December 31, 2025
Other current assets:
Forward contracts2$20 $12 
Contingent consideration(a)
39 — 
Accrued and other current liabilities:
Forward contracts219 11 
Other noncurrent liabilities:
Contingent consideration3264 269 
Cross-currency swap255 82 
(a) As part of the divestiture of the Jada System in January 2026, the Company is eligible to receive potential contingent consideration based on the achievement of certain net sales targets for the Jada System during 2026. See Note 3. “Acquisitions and Licensing Arrangements” for further information.
Schedule of Long-term Debt Instruments
Foreign currency gain (loss) due to spot rate fluctuations on the euro-denominated debt instruments and the change in fair value of the cross-currency swaps resulting from hedge designation were included within Cumulative translation adjustment in Other comprehensive income (loss), net of taxes:

Three Months Ended
March 31,
($ in millions)20262025
Euro-denominated debt instruments gain (loss)$49 $(70)
Cross-currency swaps gain (loss)27 (25)
Schedule of (Gain) Loss on Derivative Instruments
The Condensed Consolidated Statements of Income include the impact of net (gains) losses of Organon’s derivative financial instruments:

Three Months Ended
March 31,
($ in millions)20262025
Derivative loss (gain) in Exchange losses (gains)
$12 $(2)
Derivative gain in Interest expense
(2)(4)
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents a reconciliation of contingent consideration measured on a recurring basis using significant unobservable inputs (Level 3):

($ in millions)March 31, 2026
Beginning balance $269 
Fair value adjustment (12)
Accretion and changes in fair value in Other (income) expense, net
7 
Ending balance $264