Organon & Co.
For the period ended Dec 31, 2025. Filed Feb 24, 2026.
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FY2025 · Filed Feb 24, 2026
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Inventories
- Inventories
Inventories consisted of:
| ($ in millions) | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Finished goods | $751 | $764 |
| Raw materials | 14 | 25 |
| Work in process | 791 | 675 |
| Supplies | 81 | 79 |
| Total (approximates current cost) | $1,637 | $1,543 |
| Increase (Decrease) to last in, first out (“LIFO”) costs | 5 | (7) |
| $1,642 | $1,536 | |
| Recognized as: | ||
| Inventories | $1,406 | $1,321 |
| Other assets | 236 | 215 |
| Inventories valued under the LIFO method | 114 | 133 |
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 December 31, 2025 and December 31, 2024, there was $7 million and $56 million, respectively, 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.
As of December 31, 2025, total inventory purchase obligations are $947 million and extend through 2033. Inventory purchase obligations due within the next twelve months amount to $240 million.
During 2025, the Company recorded $7 million due to estimated unavoidable losses associated with a long-term vendor supply contract. The charge was recognized as a component of Cost of sales.
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