Inventories

9 Months Ended

Sep. 30, 2026

5. INVENTORIES

Inventories are stated at the lower of cost (“FIFO”) and net realizable value. The components of inventories were as follows (dollars in millions):


	As of
	September 30, 2026			December 31, 2025
Raw materials	$	484		$	481
Work in progress		305			293
Finished products		320			304
Inventories		1,109			1,078
Inventory valuation reserve		(90	)		(86	)
Total inventories, net of reserve	$	1,020		$	992