Inventories

6 Months Ended

Jun. 30, 2026

Inventories consisted of:


($ in millions)	June 30, 2026		December 31, 2025
Finished goods	$	686	$	751
Raw materials	12		14
Work in process	845		791
Supplies	78		81
Total (approximates current cost)	$	1,621	$	1,637
Increase (Decrease) to last in, first out (“LIFO”) costs	3		5
	$	1,624	$	1,642
Recognized as:
Inventories	$	1,351	$	1,406
Other assets	273		236

Inventories valued under the LIFO method	155		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 June 30, 2026, the amount has been fully expensed. 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.