INVENTORIES, NET

6 Months Ended

Jun. 30, 2026

Inventories are stated at the lower of cost or estimated net realizable value. Cost is primarily determined based on the first-in, first-out inventory method ("FIFO") or average cost methods, which approximates current replacement cost. However, certain subsidiaries use the last-in, first-out inventory method ("LIFO").

Inventories, net consisted of the following:


(In millions)	June 30, 2026		December 31, 2025
Raw materials	$	690	$	666
Work-in-process	276		245
Finished goods	1,793		1,572

Inventories, net	$	2,759	$	2,483

The Company performs periodic assessments utilizing customer demand, production requirements and historical usage rates to determine the existence of excess and obsolete inventory and records necessary provisions to reduce such inventories to the lower of cost or estimated net realizable value. Raw materials, work-in-process and finished goods are net of valuation reserves of $328 million and $337 million as of June 30, 2026 and December 31, 2025, respectively.