v3.26.1
Inventories
6 Months Ended
Jun. 30, 2026
Inventory Disclosure [Abstract]  
Inventories

NOTE E. INVENTORIES

Inventories consisted of the following components (dollars in millions):

 

 

June 30,
2026

 

 

December 31,
2025

 

Purchased parts and raw materials

 

$

327

 

 

$

168

 

Work in progress

 

 

241

 

 

 

19

 

Finished goods and service parts

 

 

272

 

 

 

129

 

Total inventories

 

$

840

 

 

$

316

 

 

Inventory components shipped to third parties, primarily cores, parts to re-manufacturers, and parts to contract manufacturers, which the Company has an obligation to buy back, are included in Purchased parts and raw materials, with an offsetting liability in Other current liabilities. See "Note M. Other Current Liabilities” for more information.