Inventories

12 Months Ended

Dec. 31, 2024

We use the last-in, first-out (LIFO) method for the majority of our inventories located in the continental U.S. Other inventories are valued by the first-in, first-out (FIFO) method. FIFO cost approximates current replacement cost. Inventories measured using LIFO must be valued at the lower of cost or market. Inventories measured using FIFO must be valued at the lower of cost or net realizable value.

Inventories at December 31 consisted of the following:


	2024		2023
Finished products	$	1,220.8	$	791.7
Work in process	3,979.5		3,248.6
Raw materials and supplies	2,326.0		1,630.1
Total (approximates replacement cost)	7,526.3		5,670.4
Increase to LIFO cost	62.9		102.4
Inventories	$	7,589.2	$	5,772.8

Inventories valued under the LIFO method comprised $2.70 billion and $1.77 billion of total inventories at December 31, 2024 and 2023, respectively.

When we believe that future commercialization is probable and the future economic benefit is expected to be realized, we capitalize pre-launch inventory prior to regulatory approval. A number of factors are considered, including the current status in the regulatory approval process, potential impediments to the approval process such as safety or efficacy, viability of commercialization, and marketplace trends. Pre-launch inventory capitalized as of December 31, 2024 was $548.1 million, primarily related to orforglipron.