Organon & Co. (OGN) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40235
Entity Registrant Name	Organon & Co.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4838035
Entity Address, Address Line One	30 Hudson Street, Floor 33
Entity Address, City or Town	Jersey City,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07302
City Area Code	(551)
Local Phone Number	430-6900
Title of 12(b) Security	Common Stock ($0.01 par value)
Trading Symbol	OGN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		255,061,747
Entity Central Index Key	0001821825
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 1,538	$ 1,567
Costs, Expenses and Other
Cost of sales	580	561
Selling, general and administrative	435	371
Research and development	129	96
Acquired in-process research and development and milestones	8	0
Restructuring costs	4	0
Interest expense	132	97
Exchange losses (gains)	9	(4)
Other expense, net	6	4
Costs, Expenses and Other	1,303	1,125
Income From Operations Before Income Taxes	235	442
Taxes on Income	58	94
Net Income	$ 177	$ 348
Earnings per Share:
Basic (in dollar per share)	$ 0.70	$ 1.37
Diluted (in dollar per share)	$ 0.69	$ 1.36
Weighted Average Shares Outstanding:
Basic (in shares)	254,392	253,583
Diluted (in shares)	256,170	255,052

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net Income	$ 177	$ 348
Other Comprehensive Income (Loss), Net of Taxes:
Benefit plan net loss and prior service credit, net of amortization	0	(1)
Cumulative translation adjustment	30	(15)
Other comprehensive income (loss)	30	(16)
Comprehensive Income	$ 207	$ 332

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 459	$ 706
Accounts receivable (net of allowance for doubtful accounts of $9 in 2023 and $9 in 2022)	1,445	1,475
Inventories (excludes inventories of $87 in 2023 and $148 in 2022 classified in Other assets)	1,121	1,003
Other current assets	755	747
Total current assets	3,780	3,931
Property, plant and equipment, net	1,055	1,018
Goodwill	4,603	4,603
Intangibles, net	621	649
Other assets	704	754
Assets	10,763	10,955
Current Liabilities
Current portion of long-term debt	8	8
Trade accounts payable	996	1,132
Accrued and other current liabilities	1,150	1,188
Income taxes payable	192	184
Total current liabilities	2,346	2,512
Long-term debt	8,703	8,905
Deferred income taxes	30	19
Other noncurrent liabilities	421	411
Contingencies (Note 15)
Organon & Co. Stockholders' Deficit
Common stock, $0.01 par value Authorized - 500,000 Issued and outstanding - 254,432 in 2023 and 254,370 in 2022	3	3
Accumulated deficit	(206)	(331)
Accumulated other comprehensive loss	(534)	(564)
Total Stockholders' Deficit	(737)	(892)
Liabilities and Equity	$ 10,763	$ 10,955

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 9	$ 9
Inventories classified in Other Assets	$ 87	$ 148
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	254,432,000	254,370,000
Common stock, shares outstanding	254,432,000	254,370,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
Beginning balance, shares at Dec. 31, 2021		253,550,000
Beginning balance at Dec. 31, 2021	$ (1,508)	$ 3	$ 0	$ (998)	$ (513)
Stockholders' Equity [Roll Forward]
Net income	348			348
Other comprehensive loss, net of taxes	(16)				(16)
Cash dividends declared on common stock	(71)			(71)
Stock-based compensation plans and other (in shares)		87,000
Stock-based compensation plans and other	15			15
Net transfers to Merck & Co., Inc. including Separation Adjustments	(18)			(18)	0
Ending balance, shares at Mar. 31, 2022		253,637,000
Ending balance at Mar. 31, 2022	(1,250)	$ 3	0	(724)	(529)
Beginning balance, shares at Dec. 31, 2022		254,370,000
Beginning balance at Dec. 31, 2022	(892)	$ 3	0	(331)	(564)
Stockholders' Equity [Roll Forward]
Net income	177			177
Other comprehensive loss, net of taxes	30				30
Cash dividends declared on common stock	(73)			(73)
Stock-based compensation plans and other (in shares)		62,000
Stock-based compensation plans and other	21			21
Ending balance, shares at Mar. 31, 2023		254,432,000
Ending balance at Mar. 31, 2023	$ (737)	$ 3	$ 0	$ (206)	$ (534)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Common stock dividends declared (in dollars per share)	$ 0.28	$ 0.28

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities
Net income	$ 177	$ 348
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation	28	25
Amortization	29	28
Acquired in-process research and development and milestones	8	0
Deferred income taxes	3	(4)
Stock-based compensation	22	15
Unrealized foreign exchange loss (gain)	2	(6)
Other	8	6
Net changes in assets and liabilities
Accounts receivable	39	54
Inventories	(38)	14
Other current assets	(3)	(37)
Trade accounts payable	(139)	(298)
Accrued and other current liabilities	(47)	(45)
Income taxes payable	6	30
Other	19	(7)
Net Cash Flows Provided by Operating Activities	114	123
Cash Flows from Investing Activities
Capital expenditures	(46)	(33)
Acquired in-process research and development and milestones	(8)	0
Purchase of product rights and asset acquisition, net of cash acquired	0	(30)
Net Cash Flows Used in Investing Activities	(54)	(63)
Cash Flows from Financing Activities
Repayments of debt	(252)	(2)
Net transfers to Merck & Co., Inc.	0	(18)
Employee withholding taxes related to stock-based awards	(1)	0
Dividend payments	(73)	(71)
Net Cash Flows Used in Financing Activities	(326)	(91)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	19	(12)
Net Decrease in Cash and Cash Equivalents	(247)	(43)
Cash and Cash Equivalents, Beginning of Period	706	737
Cash and Cash Equivalents, End of Period	$ 459	$ 694

Background and Nature of Operat

Background and Nature of Operations	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Nature of Operations	Background and Nature of Operations Organon & Co. ("Organon" or the "Company") is a global health care company with a focus on improving the health of women throughout their lives. Organon develops and delivers innovative health solutions through a portfolio of prescription therapies and medical devices within women's health, biosimilars and established brands (the "Organon Products"). Organon has a portfolio of more than 60 medicines and products across a range of therapeutic areas. The Company sells these products through various channels including drug wholesalers and retailers, hospitals, government agencies and managed health care providers such as health maintenance organizations, pharmacy benefit managers and other institutions. The Company operates six manufacturing facilities, which are located in Belgium, Brazil, Indonesia, Mexico, the Netherlands and the United Kingdom. Unless otherwise indicated, trademarks appearing in italics throughout this document are trademarks of, or are used under license by, the Organon group of companies. The Company's operations include the following product portfolios: • Women's Health : Organon's women's health products are sold by prescription primarily in two therapeutic areas, contraception, with key brands such as Nexplanon® (etonogestrel implant) (sold as Implanon NXT ™ in some countries outside the United States) and NuvaRing® (etonogestrel / ethinyl estradiol vaginal ring), and fertility, with key brands such as Follistim AQ® (follitropin beta injection) (marketed in most countries outside the United States as Puregon ™). Nexplanon ® is a long-acting reversible contraceptive, which is a class of contraceptives that is recognized as one of the most effective types of hormonal contraception available to patients with a low long-term average cost. Other women’s health products include the Jada ® System, which is intended to provide control and treatment of abnormal postpartum uterine bleeding or hemorrhage when conservative management is warranted and a license from Daré Biosciences for the global commercial rights to Xaciato ™ (clindamycin phosphate vaginal gel, 2%), an FDA-approved medication for the treatment of bacterial vaginosis ("BV") in females 12 years of age and older. • Biosimilars : Organon's current portfolio spans across immunology and oncology treatments. Organon's oncology biosimilars have been launched in more than 20 countries and Organon's immunology biosimilars have been launched in five countries. All five biosimilars in Organon's portfolio have launched in Canada, and two biosimilars; Ontruzant® (trastuzumab-dttb) and Renflexis® (infliximab-abda) have been launched in the United States. • Established Brands : Organon has a portfolio of established brands, which generally are beyond market exclusivity, including leading brands in cardiovascular, respiratory, dermatology and non-opioid pain management. A number of Organon's established brands lost exclusivity years ago and have faced generic competition for some time.

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by GAAP for complete consolidated financial statements are not included herein. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. In the Company's opinion, all adjustments necessary for a fair statement of these interim statements have been included and are of a normal and recurring nature. All intercompany transactions and accounts within Organon have been eliminated. These interim statements should be read in conjunction with the audited financial statements and notes thereto included in Organon's Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The presentation of these Condensed Consolidated Financial Statements and accompanying notes in conformity with U.S. GAAP require management to make estimates and assumptions that affect the amounts reported, as further described in our Form 10-K for the year ended December 31, 2022. Accordingly, actual results could differ materially from management's estimates and assumptions. The Company continues to experience uncertainty relative to the duration and overall impact of COVID-19, specifically, in the Company's operations in China. The future operating performance in that region, particularly in the short-term, may be subject to volatility. The assessment of certain accounting matters and specifically its effect on the Company's results require consideration of forecasted financial information in the context of the information reasonably available to the Company and the future impacts of COVID-19 on the Company's operations in China as of March 31, 2023 and through the date of this report which are difficult to predict. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , guidance to improve the accounting for contract assets and contract liabilities from acquired revenue contracts with customers in a business combination. The guidance addresses diversity in practice and inconsistency related to the recognition of an acquired contract liability, payment terms and their effect on subsequent revenue recognized by an acquirer. The guidance became effective for the Company on January 1, 2023 and its amendments will be applied prospectively to business combinations occurring on or after the effective date of the guidance. The adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations. Recently Issued Accounting Standards Not Yet Adopted The following summarizes recent Accounting Standards Updates ("ASUs") issued by the FASB that could have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 and December 31, 2022, the sunset date was subsequently deferred to December 31, 2024 based on the amendment issued in December 2022 under ASU 2022-06, Reference Rate Reform (Topic 848) . The Company is still evaluating the impact to its LIBOR-based debt. Based on the evaluation thus far, the Company does not anticipate a material impact to the Consolidated Financial Statements as a result of reference rate reform.

Acquisitions and Licensing Arra

Acquisitions and Licensing Arrangements	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions and Licensing Arrangements	Acquisitions and Licensing ArrangementsClaria Medical, Inc. ("Claria") In January 2023, the Company made a strategic investment in Claria, a privately-held company developing an investigational medical device being studied for use during minimally invasive laparoscopic hysterectomy. Under the terms of the agreement, Organon paid $8 million upfront and has the option to acquire Claria for an additional $47 million, payable if and when the option is exercised. The $8 million was expensed as Acquired in-process research and development and milestones

Earnings per Share ("EPS")

Earnings per Share ("EPS")	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings per Share ("EPS")	Earnings per Share ("EPS") The calculations of basic and diluted earnings per common share are as follows: Three Months Ended ($ in millions and shares in thousands, except per share amounts) 2023 2022 Net income $ 177 $ 348 Basic weighted average number of shares outstanding 254,392 253,583 Stock awards and equity units (share equivalent) 1,778 1,469 Diluted weighted average common shares outstanding 256,170 255,052 EPS: Basic $ 0.70 $ 1.37 Diluted $ 0.69 $ 1.36 Anti-dilutive shares excluded from the calculation of EPS 6,495 4,860

Product and Geographic Informat

Product and Geographic Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Product and Geographic Information	Product and Geographic Information The Company's operations include the following product portfolios, which constitute one operating segment engaged in developing and delivering innovative health solutions through its portfolio of prescription therapies within women's health, biosimilars and established brands. Revenues of the Company's products were as follows: Three Months Ended March 31, 2023 2022 ($ in millions) U.S. Int'l Total U.S. Int'l Total Women's Health Nexplanon/Implanon NXT $ 114 $ 52 $ 165 $ 116 $ 55 $ 171 Follistim AQ 26 29 55 30 31 61 NuvaRing 15 24 40 16 24 41 Ganirelix Acetate Injection 6 23 30 8 22 30 Marvelon/Mercilon — 37 37 — 24 24 Other Women's Health ( 1) 26 28 54 27 26 52 Biosimilars Renflexis 55 7 62 42 4 46 Ontruzant 13 8 21 7 15 22 Brenzys — 19 19 — 14 14 Aybintio — 10 10 — 10 10 Hadlima — 5 5 — 6 6 Established Brands Cardiovascular Zetia 2 81 83 3 96 99 Vytorin 2 28 29 2 36 38 Atozet — 128 128 — 119 119 Rosuzet — 18 18 — 22 22 Cozaar/Hyzaar 2 83 85 8 86 93 Other Cardiovascular (1) 1 40 41 1 38 39 Respiratory Singulair 3 117 120 3 127 130 Nasonex — 69 69 9 65 75 Dulera 38 8 46 31 9 40 Clarinex 1 39 39 1 37 38 Other Respiratory (1) 12 5 17 12 11 22 Non-Opioid Pain, Bone and Dermatology Arcoxia — 71 71 — 60 60 Fosamax — 37 38 1 40 41 Diprospan — 14 14 — 31 31 Other Non-Opioid Pain, Bone and Dermatology (1) 4 59 63 3 66 69 Other Proscar — 27 27 — 24 24 Propecia 2 31 33 1 29 30 Other (1) 4 76 80 8 74 83 Other (2) — 39 39 — 37 37 Revenues $ 326 $ 1,212 $ 1,538 $ 329 $ 1,238 $ 1,567 Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies. (1) Includes sales of products not listed separately. Revenues from Marvelon/Mercilon were previously reported as part of Other Women's Health. Revenue from an arrangement for the sale of generic etonogestrel/ethinyl estradiol vaginal ring is included in Other Women's Health. (2) Includes manufacturing sales to Merck and third parties for current and prior periods. Revenues by geographic area where derived are as follows: Three Months Ended ($ in millions) 2023 2022 Europe and Canada $ 400 $ 436 United States 326 329 Asia Pacific and Japan 324 314 China 225 236 Latin America, Middle East, Russia and Africa 214 209 Other (1) 49 43 Revenues $ 1,538 $ 1,567 (1) Primarily reflects manufacturing sales to Merck and third parties for current and prior periods.

Stock-Based Compensation Plans

Stock-Based Compensation Plans	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation Plans	Stock-Based Compensation Plans The Company grants stock option awards, performance share units ("PSUs") and restricted share units ("RSUs") pursuant to its 2021 Incentive Stock Plan. Employee stock options are granted to purchase shares of Company stock at the fair market value at the time of grant. Generally, stock options have a contractual term of ten years and vest one-third each year over a three-year period, subject to limited exceptions. RSUs are stock awards that are granted to employees and entitle the holder to shares of common stock as the awards vest. RSU awards generally vest one-third each year over a three-year period. The fair value of the stock option and RSU awards is determined and fixed on the grant date based on the Company's stock price. The terms of the Company's PSU awards allow the recipients of such awards to earn a variable number of common shares based on the cumulative results of specified performance factors. The Company has PSU awards based on the following performance factors: • total stockholder return of the Company relative to an index of peer companies ("relative TSR") specified in the awards • the results of the cumulative free cash flow ("FCF") of the Company over a three year period For FCF and relative TSR awards, the Company recognizes compensation costs ratably over the performance period. The PSU awards will generally vest at the end of the three year performance period, however, the number of shares delivered will vary based upon the attained level of performance. For PSUs with a performance-based FCF goal, stock-based compensation expense is recognized based on the probability of the achievement of the financial performance metric for the respective vesting period and is assessed at each reporting date. For PSUs with a market-based relative TSR goal, stock-based compensation expense is recognized based on the estimated fair value of the award at the grant date regardless of the actual number of shares earned. PSU awards generally vest after three years. For RSUs and PSUs, dividends declared during the vesting period are payable to the employees only upon vesting. RSU and PSU distributions will be in shares of Company stock after the end of the vesting or performance period, subject to the terms applicable to such awards. Stock-based compensation expenses incurred by the Company were as follows: Three Months Ended ($ in millions) 2023 2022 Stock-based compensation expense recognized in: Cost of sales $ 4 $ 3 Selling, general and administrative 15 10 Research and development 3 2 Total $ 22 $ 15 Income tax benefits $ 5 $ 3 The weighted average fair value of options was determined using the following assumptions: Three Months Ended 2023 2022 Expected dividend yield 4.82 % 3.12 % Risk-free interest rate 3.56 2.47 Expected volatility 42.30 43.43 Expected life (years) 5.89 5.89 A summary of the equity award transactions for the three months ended March 31, 2023 are as follows: Stock Options Restricted Share Units Performance Share Units (shares in thousands) Shares Weighted average exercise price Weighted average grant date fair value Shares Weighted average grant date fair value Shares Weighted average grant date fair value Outstanding as of January 1, 2023 4,729 $ 34.34 $ 8.91 5,048 $ 33.27 486 $ 46.72 Granted 1,124 23.52 6.55 3,730 23.56 — — Vested/Exercised — — — (1,080) 32.00 — — Forfeited/Cancelled (82) 36.12 8.70 (221) 34.54 — — Outstanding as of March 31, 2023 5,771 $ 32.21 $ 8.45 7,477 $ 28.57 486 $ 46.72 The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable as of March 31, 2023: Equity Awards Vested and Expected to Vest Equity Awards That are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Weighted Average Exercise Price Aggregate Intrinsic Value Remaining Term Awards Weighted Average Exercise Price Aggregate Intrinsic Value Remaining Term Stock Options 5,517 $ 32.21 $ — 7.55 2,536 $ 33.03 $ — 5.90 Restricted Share Units 6,809 176 2.36 Performance Share Units 291 8 1.67 The amount of unrecognized compensation costs as of March 31, 2023 was $211 million, which will be recognized in operating expense ratably over the weighted average vesting period of 2.28 years.

Restructuring

Restructuring	3 Months Ended
	Mar. 31, 2023
Restructuring and Related Activities [Abstract]
Restructuring	RestructuringIn 2022, Organon initiated restructuring activities to optimize its internal operations by reducing headcount through selected markets and functions. As a result of this program, the Company intends to restructure approximately 130 positions, with the majority of the position eliminations occurring in selected markets outside of the U.S. in our commercial organizations. During the three months ended March 31, 2023, $5 million of restructuring charges have been paid, with the majority of the severance payments expected to be paid by the end of the 2023 fiscal year. For the three months ended March 31, 2023, the Company recorded restructuring charges of $4 million, which relate to severance costs for eliminated positions. Liabilities for costs associated with restructuring activities were $19 million and $20 million at March 31, 2023 and December 31, 2022, respectively, and are included primarily in Accrued and other current liabilities

Taxes on Income

Taxes on Income	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Taxes on Income	Taxes on Income The effective income tax rates were 24.6% and 21.3% for the three months ended March 31, 2023 and 2022, respectively. These effective income tax rates reflect the beneficial impact of foreign earnings, offset by the impact of U.S. inclusions under the Global Intangible Low-Taxed Income regime and a partial valuation allowance recorded against non-deductible US interest expense. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022. Provisions of the bill that relate to tax include the minimum tax on book income, a 1% excise tax on stock buybacks and certain tax incentives to promote clean energy. There are no impacts of the legislation to the first quarter 2023 results. The Company will continue to assess future impacts of this legislation.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of: ($ in millions) March 31, 2023 December 31, 2022 Finished goods $ 479 $ 482 Raw materials 58 44 Work in process 631 601 Supplies 56 44 Total (approximates current cost) $ 1,224 $ 1,171 Decrease to LIFO costs (16) (20) $ 1,208 $ 1,151 Recognized as: Inventories $ 1,121 $ 1,003 Other assets 87 148 Inventories valued under the last in, first out ("LIFO") method 85 77 Amounts recognized as Other assets

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Financial Instruments	Financial Instruments Foreign Currency Risk Management The Company has a balance sheet risk management and a net investment hedging program to mitigate against volatility of changes in foreign exchange rates. The Company uses a balance sheet risk management program to partially mitigate the exposure of net monetary assets of its subsidiaries that are denominated in a currency other than a subsidiary's functional currency from the effects of volatility in foreign exchange. In these instances, Organon principally utilizes forward exchange contracts to partially offset the effects of exchange on exposures denominated in developed country currencies, primarily the euro, Swiss franc and Japanese yen. For exposures in developing country currencies, the Company enters into forward contracts to partially offset the effects of exchange on exposures when it is deemed economical to do so based on a cost-benefit analysis that considers the magnitude of the exposure, the volatility of the exchange rate and the cost of the hedging instrument. Monetary assets and liabilities denominated in a currency other than the functional currency of a given subsidiary are remeasured at spot rates in effect on the balance sheet date with the effects of changes in spot rates reported in Exchange losses (gains). The forward contracts are not designated as hedges and are marked to market through Exchange losses (gains). Accordingly, fair value changes in the forward contracts help mitigate the changes in the value of the remeasured assets and liabilities attributable to changes in foreign currency exchange rates, except to the extent of the spot-forward differences. These differences are not significant due to the short-term nature of the contracts, which typically have average maturities at inception of less than one year. The notional amount of forward contracts was $1.5 billion as of March 31, 2023 and December 31, 2022, respectively. The cash flows from these contracts are reported as operating activities in the Condensed Consolidated Statements of Cash Flows. The Company measures fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following financial instruments were recorded at their estimated fair value. The recurring fair value measurement of our assets and liabilities were as follows: ($ in millions) Fair Value Measurement Level March 31, 2023 December 31, 2022 Forward contracts in Other current assets 2 $ 12 $ 6 Forward contracts in Accrued and other current liabilities 2 6 24 Foreign exchange risk is also managed through the use of economic hedges on foreign currency balances. See Note 11 "Long- Term Debt" for additional details. €1.987 billion in the aggregate of both the euro-denominated term loan (€737 million) and the 2.875% euro-denominated secured notes (€1.25 billion) has been designated and is effective as an economic hedge of the net investment in euro-denominated subsidiaries. Foreign currency (losses) gains due to spot rate fluctuations on the euro-denominated debt instruments included in foreign currency translation adjustments resulting from hedge designation were as follows: Three Months Ended ($ in millions) 2023 2022 Foreign currency (losses) gains in Other comprehensive income $ (42) $ 37 The Condensed Consolidated Statements of Income include the impact of actual net (gains) and losses of Organon's derivative financial instruments: Three Months Ended ($ in millions) 2023 2022 Foreign exchange loss (gain) in Exchange losses (gains) 9 (4) Organon has established accounts receivable factoring agreements with financial institutions in certain countries to sell accounts receivable. Under these agreements, Organon factored $68 million and $43 million of accounts receivable as of March 31, 2023 and December 31, 2022, respectively, which reduced outstanding accounts receivable. The cash received from the financial institutions is reported within operating activities in the Condensed Consolidated Statements of Cash Flows.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long- Term Debt	Long- Term Debt The following is a summary of Organon's total debt: ($ in millions) March 31, 2023 December 31, 2022 Term Loan B Facility: LIBOR plus 300 bps term loan due 2028 $ 2,543 $ 2,793 LIBOR plus 300 bps euro-denominated term loan due 2028 (€750 million) 800 787 4.125% secured notes due 2028 2,100 2,100 2.875% euro-denominated secured notes due 2028 (€1.25 billion) 1,357 1,331 5.125% notes due 2031 2,000 2,000 Other borrowings 8 7 Other (discounts and debt issuance costs) (97) (105) Total principal long-term debt $ 8,711 $ 8,913 Less: Current portion of long-term debt 8 8 Total Long-term debt, net of current portion $ 8,703 $ 8,905 The nature and terms of our Term Loan B Facility, Notes and Other borrowings are described in detail in Note 11 "Long-Term Debt and Leases" in our 2022 Annual Report on Form 10-K. Long-term debt was recorded at the carrying amount. The estimated fair value of long-term debt (including current portion) is as follows: ($ in millions) March 31, 2023 December 31, 2022 Long-term debt $ 8,236 $ 8,294 Fair value was estimated using inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability and would be considered Level 2 in the fair value hierarchy. The Company made interest payments related to its debt instruments of $65 million for the three months ended March 31, 2023. The average maturity of the Company's long-term debt as of March 31, 2023 is approximately 5.7 years and the weighted-average interest rate on total borrowings as of March 31, 2023 is 5.4%. On March 30, 2023, the Company made a discretionary prepayment of $250 million on the U.S. Dollar-denominated term loan. The schedule of principal payments required on long-term debt for the next five years and thereafter is as follows: ($ in millions) 2023 $ 6 2024 9 2025 9 2026 9 2027 9 Thereafter 8,766

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Changes in Accumulated other comprehensive income (loss) by component are as follows: ($ in millions) Employee Cumulative Accumulated Other Balance at January 1, 2022, net of taxes $ (13) $ (500) $ (513) Other comprehensive loss, pretax (1) (15) (16) Tax — — — Other comprehensive loss, net of taxes (1) (15) (16) Balance at March 31, 2022, net of taxes $ (14) $ (515) $ (529) Balance at January 1, 2023, net of taxes $ 10 $ (574) $ (564) Other comprehensive income, pretax — 30 30 Tax — — — Other comprehensive income, net of taxes — 30 30 Balance at March 31, 2023, net of taxes $ 10 $ (544) $ (534)

Samsung Collaboration

Samsung Collaboration	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Samsung Collaboration	Samsung Collaboration The Company has an agreement with Samsung Bioepis Co., Ltd. ("Samsung Bioepis") to develop and commercialize multiple pre-specified biosimilar candidates, which have since launched and are part of the Company's product portfolio. Under the agreement, Samsung Bioepis is responsible for preclinical and clinical development, process development and manufacturing, clinical trials and registration of product candidates, and the Company has an exclusive license for worldwide commercialization with certain geographic exceptions specified on a product-by-product basis. The Company's access rights to each product under the agreement last for 10 years from each product's launch date on a market-by-market basis. Gross profits are shared equally in all markets with the exception of certain markets in Brazil where gross profits are shared 65% to Samsung Bioepis and 35% to the Company. Since the Company is the principal on sales transactions with third parties, the Company recognizes sales, cost of sales and selling, general and administrative expenses on a gross basis. Generally, profit sharing adjustments are recorded either to Cost of sales (after commercialization) or Selling, general and administrative expenses (prior to commercialization). Samsung Bioepis is eligible for additional payments associated with pre-specified clinical and regulatory milestones. As of March 31, 2023, potential future regulatory milestone payments of $25 million remain under the agreement. Summarized information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Sales $ 116 $ 99 Cost of sales 84 65 Selling, general and administrative 18 18 ($ in millions) March 31, 2023 December 31, 2022 Receivables from Samsung included in Other current assets $ 20 $ 21 Payables to Samsung included in Trade accounts payable 28 72

Third-Party Arrangements

Third-Party Arrangements	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Third-Party Arrangements	Third-Party Arrangements On June 2, 2021, Organon and Merck & Co., Inc. ("Merck") entered into a Separation and Distribution Agreement (the "Separation and Distribution Agreement"). Pursuant to the Separation and Distribution Agreement, Merck agreed to spin off the Organon Products into Organon, a new, publicly-traded company (the "Separation"). The Separation was completed pursuant to the Separation and Distribution Agreement and other agreements with Merck related to the Separation, including, but not limited to a tax matters agreement (the "Tax Matters Agreement" or "TMA"), an employee matters agreement (the "Employee Matters Agreement" or "EMA"), Interim Operating Model Agreements ("IOM Agreements"), Manufacturing and Supply Agreements, Intellectual Property License Agreements, Regulatory Agreements and a transition services agreement (the "Transition Service Agreement" or "TSA"). Following the Separation, certain functions continue to be provided by Merck under the TSA or are being performed using the Company's own resources or third-party service providers. Under the TSA, Merck is providing Organon various services and, similarly, Organon is providing Merck various services. The provision of services under the TSA generally will terminate within 25 months following the spin-off; however, the provision of certain services has been extended to at least 35 months. Additionally, under manufacturing and supply agreements, the Company manufactures certain products for Merck, or its applicable affiliate, and Merck manufactures certain products for the Company, or its applicable affiliate. For details on the rights and responsibilities of the parties under the agreements, refer to Note 18 to the audited Consolidated Financial Statements in the Company's 2022 Form 10-K. For the three months ended March 31, 2023, material transactions occurred in connection with the IOM agreements. The amounts due under such agreements were: ($ in millions) March 31, 2023 December 31, 2022 Due from Merck in Accounts receivable $ 344 $ 374 Due to Merck in Accounts payable 521 543 Sales and cost of sales resulting from the manufacturing and supply agreements with Merck were: Three Months Ended ($ in millions) 2023 2022 Sales $ 30 $ 33 Cost of sales 28 29

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Organon is involved in various claims and legal proceedings of a nature considered normal to its business, including product liability, intellectual property, and commercial litigation, as well as certain additional matters including governmental and environmental matters. Organon records accruals for contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. Individually significant contingent losses are accrued when probable and reasonably estimable. Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. Given the nature of the litigation discussed in this note and the complexities involved in these matters, Organon is unable to reasonably estimate a possible loss or range of possible loss for such matters until Organon knows, among other factors, (i) what claims, if any, will survive dispositive motion practice, (ii) the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate, (iii) how the discovery process will affect the litigation, (iv) the settlement posture of the other parties to the litigation, and (v) any other factors that may have a material effect on the litigation. Organon's decision to obtain insurance coverage is dependent on market conditions, including cost and availability, existing at the time such decisions are made. Organon has evaluated its risks and has determined that the cost of obtaining product liability insurance outweighs the likely benefits of the coverage that is available and, as such, has no insurance for most product liabilities. Reference is made below to certain litigation in which Merck, but not Organon, is named as a defendant. Pursuant to the Separation and Distribution Agreement, Organon is required to indemnify Merck for liabilities relating to, arising from, or resulting from such litigation. Product Liability Litigation Fosamax Merck is a defendant in product liability lawsuits in the United States involving Fosamax® (alendronate sodium) (the "Fosamax Litigation"). As of March 31, 2023, approximately 3,245 cases comprising the Fosamax Litigation are pending against Merck in either federal or state court. Plaintiffs in the vast majority of these cases generally allege that they sustained femur fractures and/or other bone injuries ("Femur Fractures") in association with the use of Fosamax . All federal cases involving allegations of Femur Fractures have been or will be transferred to a multidistrict litigation in the District of New Jersey ("Femur Fracture MDL"). In the only bellwether case tried to date in the Femur Fracture MDL, Glynn v. Merck , the jury returned a verdict in Merck's favor. In addition, in June 2013, the Femur Fracture MDL court granted Merck's motion for judgment as a matter of law in the Glynn case and held that the plaintiff's failure to warn claim was preempted by federal law. In August 2013, the Femur Fracture MDL court entered an order requiring plaintiffs in the Femur Fracture MDL to show cause why those cases asserting claims for a femur fracture injury that took place prior to September 14, 2010, should not be dismissed based on the court's preemption decision in the Glynn case. Pursuant to the show cause order, in March 2014, the Femur Fracture MDL court dismissed with prejudice approximately 650 cases on preemption grounds. Plaintiffs in approximately 515 of those cases appealed that decision to the U.S. Court of Appeals for the Third Circuit ("Third Circuit"). In March 2017, the Third Circuit issued a decision reversing the Femur Fracture MDL court's preemption ruling and remanding the appealed cases back to the Femur Fracture MDL court. In May 2019, the U.S. Supreme Court decided that the Third Circuit had incorrectly concluded that the issue of preemption should be resolved by a jury, and accordingly vacated the judgment of the Third Circuit and remanded the proceedings back to the Third Circuit to address the issue in a manner consistent with the Supreme Court's opinion. In November 2019, the Third Circuit remanded the cases back to the District Court in order to allow that court to determine in the first instance whether the plaintiffs' state law claims are preempted by federal law under the standards described by the Supreme Court in its opinion. On March 23, 2022, the District Court granted Merck's motion and ruled that plaintiffs' failure to warn claims are preempted as a matter of law to the extent they assert that Merck should have added a Warning or Precaution regarding atypical femur fractures prior to October 2010. On July 11, 2022, the District Court entered an Order to Show Cause as to why the Court should not dismiss either with prejudice or conditionally all of plaintiffs' claims that are not dependent on the preempted failure to warn claims. On November 18, 2022, as a result of the Order to Show Cause, the District Court entered a Final Judgment resulting in the dismissal with prejudice of all plaintiffs in the MDL. On December 16, 2022, those plaintiffs filed their Notice of Appeal to the Third Circuit challenging the District Court's preemption ruling. 974 of the 975 cases previously pending in the Femur Fracture MDL have either been dismissed or are on appeal to the Third Circuit. Plaintiff's motion to remand one case back to its transferor court is pending. As of March 31, 2023, approximately 1,990 cases alleging Femur Fractures have been filed in New Jersey state court and are pending in Middlesex County. The parties selected an initial group of cases to be reviewed through fact discovery, and Merck continued to select additional cases to be reviewed. As of March 31, 2023, approximately 275 cases alleging Femur Fractures have been filed and are pending in California state court. All of the Femur Fracture cases filed in California state court have been coordinated before a single judge in Orange County, California. Additionally, there are four Femur Fracture cases pending in other state courts. Discovery is presently stayed in the Femur Fracture MDL and in the state court in California. Nexplanon/Implanon Merck is a defendant in lawsuits brought by individuals relating to the use of Nexplanon and Implanon™ (etonogestrel implant). There are two filed product liability actions involving Implanon , both of which are pending in the Northern District of Ohio as well as 56 unfiled cases involving Implanon alleging similar injuries, which have been tolled under a written tolling agreement. As of March 31, 2023, Merck had 18 cases pending outside the United States, of which 12 relate to Implanon and six relate to Nexplanon . Propecia/Proscar As of March 31, 2023, one case remains pending in the United States, a matter involving Proscar® (finasteride) in the United States District Court for the Eastern District of California in which Merck's motion to dismiss was granted by the District Court, but the plaintiff can appeal the decision. The Company is also defending 15 product liability cases outside the United States, two of which are class actions and three of which are putative class actions. Governmental Proceedings From time to time, Organon's subsidiaries may receive inquiries and may be the subject of preliminary investigation activities from competition and/or other governmental authorities, including in markets outside the United States. These authorities may include regulators, administrative authorities, and law enforcement and other similar officials, and these preliminary investigation activities may include site visits, formal or informal requests or demands for documents or materials, inquiries or interviews and similar matters. Certain of these preliminary inquiries or activities may lead to the commencement of formal proceedings. Should those proceedings be determined adversely to Organon, monetary fines and/or remedial undertakings may be required. Subject to certain exceptions specified in the Separation and Distribution Agreement, Organon assumed liability for all pending and threatened legal matters related to products transferred to Organon, including competition investigations resulting from enforcement activity concerning Merck's conduct involving Organon's products. Organon could be obligated to indemnify Merck for fines or penalties, or a portion thereof, resulting from such investigations. In one such enforcement matter in Spain concerning NuvaRing , the National Commission on Markets and Competition ("CNMC") recently imposed a fine on Merck in the amount of €39 million for abuse of a dominant position in the market for contraceptive vaginal rings from June 2017 to April 2018. The CNMC decision to impose the fine has been appealed to the National High Court in Spain. If the fine ultimately stands, Organon could be obligated to indemnify Merck for a portion thereof. Hadlima In July 2021, Organon received a Civil Investigation Demand ("CID") from the Office of the Attorney General for the State of Washington. The CID requests answers to interrogatories, as well as various documents, regarding certain activities related to adalimumab and adalimumab biosimilars. Organon is cooperating with the government's investigation and has produced information in response to the CID. Patent Litigation From time to time, generic manufacturers of pharmaceutical products file Abbreviated New Drug Applications with the FDA seeking to market generic forms of Organon's products prior to the expiration of relevant patents owned by Organon. To protect its patent rights, Organon may file patent infringement lawsuits against such generic companies. Similar lawsuits defending Organon's patent rights may exist in other countries. Organon intends to vigorously defend its patents, which it believes are valid, against infringement by companies attempting to market products prior to the expiration of such patents. As with any litigation, there can be no assurance of the outcomes, which, if adverse, could result in significantly shortened periods of exclusivity for these products, potential payment of damages and legal fees, and, with respect to products acquired through acquisitions, potentially significant intangible asset impairment charges. Nexplanon In June 2017, Microspherix LLC ("Microspherix") sued Organon in the U.S. District Court for the District of New Jersey asserting that the manufacturing, use, sale and importation of Nexplanon infringed several of Microspherix's patents that claim radio-opaque, implantable drug delivery devices. Microspherix is claiming damages from September 2014 until the patents expired in May 2021. Organon brought Inter Partes Review proceedings in the United States Patent and Trademark Office ("USPTO") and successfully stayed the district court action. The USPTO invalidated some, but not all, of the claims asserted against Organon. Organon appealed the decisions that found claims valid, and the Court of Appeals for the Federal Circuit affirmed the USPTO's decisions. The matter is no longer stayed in the district court, and Organon is currently litigating the invalidity and non-infringement of the remaining asserted claims. A claim construction hearing was held on March 2, 2022, and a claim construction order issued on February 27, 2023. This case is scheduled for trial before a jury in Camden, New Jersey starting on October 16, 2023. Other Litigation In addition to the matters described above, there are various other pending legal proceedings involving Organon, principally product liability and intellectual property lawsuits. While it is not feasible to predict the outcome of such proceedings, in the opinion of Organon as of March 31, 2023, either the likelihood of loss is remote or any reasonably possible loss associated with the resolution of such proceedings is not expected to be material to Organon's financial condition, results of operations or cash flows either individually or in the aggregate. Legal Defense Reserves Legal defense costs expected to be incurred in connection with a loss contingency are accrued when probable and reasonably estimable. Some of the significant factors considered in the review of these legal defense reserves are as follows: the actual costs incurred by Organon; the development of Organon's legal defense strategy and structure in light of the scope of its litigation; the number of cases being brought against Organon; and the costs and outcomes of completed trials and the most current information regarding anticipated timing, progression, and related costs of pre-trial activities and trials in the associated litigation. The legal defense reserve as of March 31, 2023 and December 31, 2022 was $22 million and $17 million, respectively, and represented Organon's best estimate of the minimum amount of defense costs to be incurred in connection with its outstanding litigation; however, events such as additional trials and other events that could arise in the course of its litigation could affect the ultimate amount of legal defense costs to be incurred by Organon. Organon will continue to monitor its legal defense costs and review the adequacy of the associated reserves and may determine to increase the reserves at any time in the future if, based upon the factors set forth, it believes it would be appropriate to do so.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The accompanying unaudited financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and disclosures required by GAAP for complete consolidated financial statements are not included herein. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. In the Company's opinion, all adjustments necessary for a fair statement of these interim statements have been included and are of a normal and recurring nature. All intercompany transactions and accounts within Organon have been eliminated. These interim statements should be read in conjunction with the audited financial statements and notes thereto included in Organon's Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates The presentation of these Condensed Consolidated Financial Statements and accompanying notes in conformity with U.S. GAAP require management to make estimates and assumptions that affect the amounts reported, as further described in our Form 10-K for the year ended December 31, 2022. Accordingly, actual results could differ materially from management's estimates and assumptions. The Company continues to experience uncertainty relative to the duration and overall impact of COVID-19, specifically, in the Company's operations in China. The future operating performance in that region, particularly in the short-term, may be subject to volatility. The assessment of certain accounting matters and specifically its effect on the Company's results require consideration of forecasted financial information in the context of the information reasonably available to the Company and the future impacts of COVID-19 on the Company's operations in China as of March 31, 2023 and through the date of this report which are difficult to predict.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , guidance to improve the accounting for contract assets and contract liabilities from acquired revenue contracts with customers in a business combination. The guidance addresses diversity in practice and inconsistency related to the recognition of an acquired contract liability, payment terms and their effect on subsequent revenue recognized by an acquirer. The guidance became effective for the Company on January 1, 2023 and its amendments will be applied prospectively to business combinations occurring on or after the effective date of the guidance. The adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements for prior acquisitions; however, the impact in future periods will be dependent upon the contract assets and contract liabilities acquired in future business combinations. Recently Issued Accounting Standards Not Yet Adopted The following summarizes recent Accounting Standards Updates ("ASUs") issued by the FASB that could have a material impact on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and subsequently issued clarifying amendments. The guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The optional guidance is effective upon issuance and can be applied on a prospective basis at any time between January 1, 2020 and December 31, 2022, the sunset date was subsequently deferred to December 31, 2024 based on the amendment issued in December 2022 under ASU 2022-06, Reference Rate Reform (Topic 848) . The Company is still evaluating the impact to its LIBOR-based debt. Based on the evaluation thus far, the Company does not anticipate a material impact to the Consolidated Financial Statements as a result of reference rate reform.

Earnings per Share ("EPS") (Tab

Earnings per Share ("EPS") (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The calculations of basic and diluted earnings per common share are as follows: Three Months Ended ($ in millions and shares in thousands, except per share amounts) 2023 2022 Net income $ 177 $ 348 Basic weighted average number of shares outstanding 254,392 253,583 Stock awards and equity units (share equivalent) 1,778 1,469 Diluted weighted average common shares outstanding 256,170 255,052 EPS: Basic $ 0.70 $ 1.37 Diluted $ 0.69 $ 1.36 Anti-dilutive shares excluded from the calculation of EPS 6,495 4,860

Product and Geographic Inform_2

Product and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of Sales of Company's Products	Revenues of the Company's products were as follows: Three Months Ended March 31, 2023 2022 ($ in millions) U.S. Int'l Total U.S. Int'l Total Women's Health Nexplanon/Implanon NXT $ 114 $ 52 $ 165 $ 116 $ 55 $ 171 Follistim AQ 26 29 55 30 31 61 NuvaRing 15 24 40 16 24 41 Ganirelix Acetate Injection 6 23 30 8 22 30 Marvelon/Mercilon — 37 37 — 24 24 Other Women's Health ( 1) 26 28 54 27 26 52 Biosimilars Renflexis 55 7 62 42 4 46 Ontruzant 13 8 21 7 15 22 Brenzys — 19 19 — 14 14 Aybintio — 10 10 — 10 10 Hadlima — 5 5 — 6 6 Established Brands Cardiovascular Zetia 2 81 83 3 96 99 Vytorin 2 28 29 2 36 38 Atozet — 128 128 — 119 119 Rosuzet — 18 18 — 22 22 Cozaar/Hyzaar 2 83 85 8 86 93 Other Cardiovascular (1) 1 40 41 1 38 39 Respiratory Singulair 3 117 120 3 127 130 Nasonex — 69 69 9 65 75 Dulera 38 8 46 31 9 40 Clarinex 1 39 39 1 37 38 Other Respiratory (1) 12 5 17 12 11 22 Non-Opioid Pain, Bone and Dermatology Arcoxia — 71 71 — 60 60 Fosamax — 37 38 1 40 41 Diprospan — 14 14 — 31 31 Other Non-Opioid Pain, Bone and Dermatology (1) 4 59 63 3 66 69 Other Proscar — 27 27 — 24 24 Propecia 2 31 33 1 29 30 Other (1) 4 76 80 8 74 83 Other (2) — 39 39 — 37 37 Revenues $ 326 $ 1,212 $ 1,538 $ 329 $ 1,238 $ 1,567 Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies. (1) Includes sales of products not listed separately. Revenues from Marvelon/Mercilon were previously reported as part of Other Women's Health. Revenue from an arrangement for the sale of generic etonogestrel/ethinyl estradiol vaginal ring is included in Other Women's Health. (2) Includes manufacturing sales to Merck and third parties for current and prior periods.
Schedule of Consolidated Revenues by Geographic Area	Revenues by geographic area where derived are as follows: Three Months Ended ($ in millions) 2023 2022 Europe and Canada $ 400 $ 436 United States 326 329 Asia Pacific and Japan 324 314 China 225 236 Latin America, Middle East, Russia and Africa 214 209 Other (1) 49 43 Revenues $ 1,538 $ 1,567 (1) Primarily reflects manufacturing sales to Merck and third parties for current and prior periods.

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-based Payment Arrangement, Expensed and Capitalized, Amount	Stock-based compensation expenses incurred by the Company were as follows: Three Months Ended ($ in millions) 2023 2022 Stock-based compensation expense recognized in: Cost of sales $ 4 $ 3 Selling, general and administrative 15 10 Research and development 3 2 Total $ 22 $ 15 Income tax benefits $ 5 $ 3
Schedule of Stock Option Valuation Assumptions	The weighted average fair value of options was determined using the following assumptions: Three Months Ended 2023 2022 Expected dividend yield 4.82 % 3.12 % Risk-free interest rate 3.56 2.47 Expected volatility 42.30 43.43 Expected life (years) 5.89 5.89
Share-based Payment Arrangement, Performance Shares, Activity	A summary of the equity award transactions for the three months ended March 31, 2023 are as follows: Stock Options Restricted Share Units Performance Share Units (shares in thousands) Shares Weighted average exercise price Weighted average grant date fair value Shares Weighted average grant date fair value Shares Weighted average grant date fair value Outstanding as of January 1, 2023 4,729 $ 34.34 $ 8.91 5,048 $ 33.27 486 $ 46.72 Granted 1,124 23.52 6.55 3,730 23.56 — — Vested/Exercised — — — (1,080) 32.00 — — Forfeited/Cancelled (82) 36.12 8.70 (221) 34.54 — — Outstanding as of March 31, 2023 5,771 $ 32.21 $ 8.45 7,477 $ 28.57 486 $ 46.72
Share-based Payment Arrangement, Activity	The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable as of March 31, 2023: Equity Awards Vested and Expected to Vest Equity Awards That are Exercisable (shares in thousands; aggregate intrinsic value in millions) Awards Weighted Average Exercise Price Aggregate Intrinsic Value Remaining Term Awards Weighted Average Exercise Price Aggregate Intrinsic Value Remaining Term Stock Options 5,517 $ 32.21 $ — 7.55 2,536 $ 33.03 $ — 5.90 Restricted Share Units 6,809 176 2.36 Performance Share Units 291 8 1.67

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of: ($ in millions) March 31, 2023 December 31, 2022 Finished goods $ 479 $ 482 Raw materials 58 44 Work in process 631 601 Supplies 56 44 Total (approximates current cost) $ 1,224 $ 1,171 Decrease to LIFO costs (16) (20) $ 1,208 $ 1,151 Recognized as: Inventories $ 1,121 $ 1,003 Other assets 87 148 Inventories valued under the last in, first out ("LIFO") method 85 77
Schedule of Inventory, Noncurrent	Inventories consisted of: ($ in millions) March 31, 2023 December 31, 2022 Finished goods $ 479 $ 482 Raw materials 58 44 Work in process 631 601 Supplies 56 44 Total (approximates current cost) $ 1,224 $ 1,171 Decrease to LIFO costs (16) (20) $ 1,208 $ 1,151 Recognized as: Inventories $ 1,121 $ 1,003 Other assets 87 148 Inventories valued under the last in, first out ("LIFO") method 85 77

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Financial Instruments Recorded at Estimated Fair Value	The following financial instruments were recorded at their estimated fair value. The recurring fair value measurement of our assets and liabilities were as follows: ($ in millions) Fair Value Measurement Level March 31, 2023 December 31, 2022 Forward contracts in Other current assets 2 $ 12 $ 6 Forward contracts in Accrued and other current liabilities 2 6 24
Schedule of Foreign Exchange Contracts, Statement of Financial Position	Foreign currency (losses) gains due to spot rate fluctuations on the euro-denominated debt instruments included in foreign currency translation adjustments resulting from hedge designation were as follows: Three Months Ended ($ in millions) 2023 2022 Foreign currency (losses) gains in Other comprehensive income $ (42) $ 37
Schedule of (Gain) Loss Derivative Instruments	The Condensed Consolidated Statements of Income include the impact of actual net (gains) and losses of Organon's derivative financial instruments: Three Months Ended ($ in millions) 2023 2022 Foreign exchange loss (gain) in Exchange losses (gains) 9 (4)

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	The following is a summary of Organon's total debt: ($ in millions) March 31, 2023 December 31, 2022 Term Loan B Facility: LIBOR plus 300 bps term loan due 2028 $ 2,543 $ 2,793 LIBOR plus 300 bps euro-denominated term loan due 2028 (€750 million) 800 787 4.125% secured notes due 2028 2,100 2,100 2.875% euro-denominated secured notes due 2028 (€1.25 billion) 1,357 1,331 5.125% notes due 2031 2,000 2,000 Other borrowings 8 7 Other (discounts and debt issuance costs) (97) (105) Total principal long-term debt $ 8,711 $ 8,913 Less: Current portion of long-term debt 8 8 Total Long-term debt, net of current portion $ 8,703 $ 8,905
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	Long-term debt was recorded at the carrying amount. The estimated fair value of long-term debt (including current portion) is as follows: ($ in millions) March 31, 2023 December 31, 2022 Long-term debt $ 8,236 $ 8,294
Schedule of Maturities of Long-term Debt	The schedule of principal payments required on long-term debt for the next five years and thereafter is as follows: ($ in millions) 2023 $ 6 2024 9 2025 9 2026 9 2027 9 Thereafter 8,766

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Changes of AOCI by Component	Changes in Accumulated other comprehensive income (loss) by component are as follows: ($ in millions) Employee Cumulative Accumulated Other Balance at January 1, 2022, net of taxes $ (13) $ (500) $ (513) Other comprehensive loss, pretax (1) (15) (16) Tax — — — Other comprehensive loss, net of taxes (1) (15) (16) Balance at March 31, 2022, net of taxes $ (14) $ (515) $ (529) Balance at January 1, 2023, net of taxes $ 10 $ (574) $ (564) Other comprehensive income, pretax — 30 30 Tax — — — Other comprehensive income, net of taxes — 30 30 Balance at March 31, 2023, net of taxes $ 10 $ (544) $ (534)

Samsung Collaboration (Tables)

Samsung Collaboration (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Collaborative Arrangement and Arrangement Other than Collaborative	Summarized information related to this collaboration is as follows: Three Months Ended ($ in millions) 2023 2022 Sales $ 116 $ 99 Cost of sales 84 65 Selling, general and administrative 18 18 ($ in millions) March 31, 2023 December 31, 2022 Receivables from Samsung included in Other current assets $ 20 $ 21 Payables to Samsung included in Trade accounts payable 28 72

Third-Party Arrangements (Table

Third-Party Arrangements (Tables)	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The amounts due under such agreements were: ($ in millions) March 31, 2023 December 31, 2022 Due from Merck in Accounts receivable $ 344 $ 374 Due to Merck in Accounts payable 521 543 Sales and cost of sales resulting from the manufacturing and supply agreements with Merck were: Three Months Ended ($ in millions) 2023 2022 Sales $ 30 $ 33 Cost of sales 28 29

Background and Nature of Oper_2

Background and Nature of Operations (Details)	Mar. 31, 2023 product country manufacturingFacility segment
Product Information [Line Items]
Number of medicines and products | segment	60
Number of manufacturing facilities | manufacturingFacility	6
CANADA
Product Information [Line Items]
Number of biosimilar products | product	5
U.S.
Product Information [Line Items]
Number of biosimilar products | product	2
Oncology Biosimilar
Product Information [Line Items]
Number of countries product sold in | country	20
Immunology Biosimilar
Product Information [Line Items]
Number of countries product sold in | country	5

Acquisitions and Licensing Ar_2

Acquisitions and Licensing Arrangements (Details) - Claria Medical, Inc. - USD ($) $ in Millions	Mar. 31, 2023	Jan. 31, 2023
Asset Acquisition [Line Items]
Upfront payments		$ 8
Commercial milestone payments	$ 47

Earnings per Share ("EPS") - Ca

Earnings per Share ("EPS") - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net Income	$ 177	$ 348
Basic weighted average number of shares outstanding (in shares)	254,392	253,583
Stock awards and equity units (share equivalent) (in shares)	1,778	1,469
Diluted weighted average common shares outstanding (in shares)	256,170	255,052
Earnings per Share:
Basic (in dollar per share)	$ 0.70	$ 1.37
Earnings per Share - Diluted:
Diluted (in dollar per share)	$ 0.69	$ 1.36
Share-based compensation plans
Earnings per Share - Diluted:
Anti-dilutive shares excluded from the calculation of EPS (in shares)	6,495	4,860

Product and Geographic Inform_3

Product and Geographic Information - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	1

Product and Geographic Inform_4

Product and Geographic Information - Sales of Company's Products (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Revenues	$ 1,538	$ 1,567
Nexplanon/Implanon NXT
Revenue from External Customer [Line Items]
Revenues	165	171
Follistim AQ
Revenue from External Customer [Line Items]
Revenues	55	61
NuvaRing
Revenue from External Customer [Line Items]
Revenues	40	41
Ganirelix Acetate Injection
Revenue from External Customer [Line Items]
Revenues	30	30
Marvelon/Mercilon
Revenue from External Customer [Line Items]
Revenues	37	24
Other Womens Health
Revenue from External Customer [Line Items]
Revenues	54	52
Renflexis
Revenue from External Customer [Line Items]
Revenues	62	46
Ontruzant
Revenue from External Customer [Line Items]
Revenues	21	22
Brenzys
Revenue from External Customer [Line Items]
Revenues	19	14
Aybintio
Revenue from External Customer [Line Items]
Revenues	10	10
Hadlima
Revenue from External Customer [Line Items]
Revenues	5	6
Zetia
Revenue from External Customer [Line Items]
Revenues	83	99
Vytorin
Revenue from External Customer [Line Items]
Revenues	29	38
Atozet
Revenue from External Customer [Line Items]
Revenues	128	119
Rosuzet
Revenue from External Customer [Line Items]
Revenues	18	22
Cozaar/Hyzaar
Revenue from External Customer [Line Items]
Revenues	85	93
Other Cardiovascular
Revenue from External Customer [Line Items]
Revenues	41	39
Singulair
Revenue from External Customer [Line Items]
Revenues	120	130
Nasonex
Revenue from External Customer [Line Items]
Revenues	69	75
Dulera
Revenue from External Customer [Line Items]
Revenues	46	40
Clarinex
Revenue from External Customer [Line Items]
Revenues	39	38
Other Respiratory
Revenue from External Customer [Line Items]
Revenues	17	22
Arcoxia
Revenue from External Customer [Line Items]
Revenues	71	60
Fosamax
Revenue from External Customer [Line Items]
Revenues	38	41
Diprospan
Revenue from External Customer [Line Items]
Revenues	14	31
Other Non-Opiod Pain, Bone and Dermatology
Revenue from External Customer [Line Items]
Revenues	63	69
Proscar
Revenue from External Customer [Line Items]
Revenues	27	24
Propecia
Revenue from External Customer [Line Items]
Revenues	33	30
Other
Revenue from External Customer [Line Items]
Revenues	80	83
Other
Revenue from External Customer [Line Items]
Revenues	39	37
U.S.
Revenue from External Customer [Line Items]
Revenues	326	329
U.S. | Nexplanon/Implanon NXT
Revenue from External Customer [Line Items]
Revenues	114	116
U.S. | Follistim AQ
Revenue from External Customer [Line Items]
Revenues	26	30
U.S. | NuvaRing
Revenue from External Customer [Line Items]
Revenues	15	16
U.S. | Ganirelix Acetate Injection
Revenue from External Customer [Line Items]
Revenues	6	8
U.S. | Marvelon/Mercilon
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Other Womens Health
Revenue from External Customer [Line Items]
Revenues	26	27
U.S. | Renflexis
Revenue from External Customer [Line Items]
Revenues	55	42
U.S. | Ontruzant
Revenue from External Customer [Line Items]
Revenues	13	7
U.S. | Brenzys
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Aybintio
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Hadlima
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Zetia
Revenue from External Customer [Line Items]
Revenues	2	3
U.S. | Vytorin
Revenue from External Customer [Line Items]
Revenues	2	2
U.S. | Atozet
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Rosuzet
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Cozaar/Hyzaar
Revenue from External Customer [Line Items]
Revenues	2	8
U.S. | Other Cardiovascular
Revenue from External Customer [Line Items]
Revenues	1	1
U.S. | Singulair
Revenue from External Customer [Line Items]
Revenues	3	3
U.S. | Nasonex
Revenue from External Customer [Line Items]
Revenues	0	9
U.S. | Dulera
Revenue from External Customer [Line Items]
Revenues	38	31
U.S. | Clarinex
Revenue from External Customer [Line Items]
Revenues	1	1
U.S. | Other Respiratory
Revenue from External Customer [Line Items]
Revenues	12	12
U.S. | Arcoxia
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Fosamax
Revenue from External Customer [Line Items]
Revenues	0	1
U.S. | Diprospan
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Other Non-Opiod Pain, Bone and Dermatology
Revenue from External Customer [Line Items]
Revenues	4	3
U.S. | Proscar
Revenue from External Customer [Line Items]
Revenues	0	0
U.S. | Propecia
Revenue from External Customer [Line Items]
Revenues	2	1
U.S. | Other
Revenue from External Customer [Line Items]
Revenues	4	8
U.S. | Other
Revenue from External Customer [Line Items]
Revenues	0	0
International
Revenue from External Customer [Line Items]
Revenues	1,212	1,238
International | Nexplanon/Implanon NXT
Revenue from External Customer [Line Items]
Revenues	52	55
International | Follistim AQ
Revenue from External Customer [Line Items]
Revenues	29	31
International | NuvaRing
Revenue from External Customer [Line Items]
Revenues	24	24
International | Ganirelix Acetate Injection
Revenue from External Customer [Line Items]
Revenues	23	22
International | Marvelon/Mercilon
Revenue from External Customer [Line Items]
Revenues	37	24
International | Other Womens Health
Revenue from External Customer [Line Items]
Revenues	28	26
International | Renflexis
Revenue from External Customer [Line Items]
Revenues	7	4
International | Ontruzant
Revenue from External Customer [Line Items]
Revenues	8	15
International | Brenzys
Revenue from External Customer [Line Items]
Revenues	19	14
International | Aybintio
Revenue from External Customer [Line Items]
Revenues	10	10
International | Hadlima
Revenue from External Customer [Line Items]
Revenues	5	6
International | Zetia
Revenue from External Customer [Line Items]
Revenues	81	96
International | Vytorin
Revenue from External Customer [Line Items]
Revenues	28	36
International | Atozet
Revenue from External Customer [Line Items]
Revenues	128	119
International | Rosuzet
Revenue from External Customer [Line Items]
Revenues	18	22
International | Cozaar/Hyzaar
Revenue from External Customer [Line Items]
Revenues	83	86
International | Other Cardiovascular
Revenue from External Customer [Line Items]
Revenues	40	38
International | Singulair
Revenue from External Customer [Line Items]
Revenues	117	127
International | Nasonex
Revenue from External Customer [Line Items]
Revenues	69	65
International | Dulera
Revenue from External Customer [Line Items]
Revenues	8	9
International | Clarinex
Revenue from External Customer [Line Items]
Revenues	39	37
International | Other Respiratory
Revenue from External Customer [Line Items]
Revenues	5	11
International | Arcoxia
Revenue from External Customer [Line Items]
Revenues	71	60
International | Fosamax
Revenue from External Customer [Line Items]
Revenues	37	40
International | Diprospan
Revenue from External Customer [Line Items]
Revenues	14	31
International | Other Non-Opiod Pain, Bone and Dermatology
Revenue from External Customer [Line Items]
Revenues	59	66
International | Proscar
Revenue from External Customer [Line Items]
Revenues	27	24
International | Propecia
Revenue from External Customer [Line Items]
Revenues	31	29
International | Other
Revenue from External Customer [Line Items]
Revenues	76	74
International | Other
Revenue from External Customer [Line Items]
Revenues	$ 39	$ 37

Product and Geographic Inform_5

Product and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Revenues	$ 1,538	$ 1,567
Europe and Canada
Revenue from External Customer [Line Items]
Revenues	400	436
United States
Revenue from External Customer [Line Items]
Revenues	326	329
Asia Pacific and Japan
Revenue from External Customer [Line Items]
Revenues	324	314
China
Revenue from External Customer [Line Items]
Revenues	225	236
Latin America, Middle East, Russia and Africa
Revenue from External Customer [Line Items]
Revenues	214	209
Other
Revenue from External Customer [Line Items]
Revenues	$ 49	$ 43

Stock-Based Compensation Plan_2

Stock-Based Compensation Plans - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Amount of unrecognized compensation costs	$ 211
Amount of unrecognized compensation costs period for recognition	2 years 3 months 10 days
Options | 2021 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period	10 years
Award vesting rights, percentage	33.30%
Award vesting rights	3 years
Restricted Stock Units (RSUs) | 2021 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage	33.30%
Award vesting rights	3 years
TSR PSU's | 2021 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights	3 years
FCF PSU's | 2021 Incentive Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights	3 years

Stock-Based Compensation Plan_3

Stock-Based Compensation Plans - Summary of Transactions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 22	$ 15
Income tax benefits	5	3
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	4	3
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	15	10
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3	$ 2

Stock-Based Compensation Plan_4

Stock-Based Compensation Plans - Stock Option Valuation Assumptions (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Expected dividend yield	4.82%	3.12%
Risk-free interest rate	3.56%	2.47%
Expected volatility	42.30%	43.43%
Expected life (years)	5 years 10 months 20 days	5 years 10 months 20 days

Stock-Based Compensation Plan_5

Stock-Based Compensation Plans - Summary of Transactions (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Stock Options
Outstanding at December 31, 2021 (in shares) | shares	4,729,000
Grants (in shares) | shares	1,124,000
Vested/Exercised (in shares) | shares	0
Forfeited/Cancelled (in shares) | shares	(82,000)
Outstanding at March 31, 2022 (in shares) | shares	5,771,000
Stock Options Weighted Average Exercise Price
Options outstanding, Weighted average exercise price per share - December 31, 2021 (in usd per share)	$ 34.34
Options Granted, Weighted average exercise price per share (in usd per share)	23.52
Options Vested/Exercised, Weighted average exercise price per share (in usd per share)	0
Options Forfeited/Cancelled, Weighted average exercise price per share (in usd per share)	36.12
Options outstanding, Weighted average exercise price per share - March 31, 2022 (in usd per share)	32.21
Stock Options Weighted Average Grant Date Fair Value
Options outstanding, Weighted average grant date fair value price per share - December 31, 2021 (in usd per share)	8.91
Granted, Weighted average grant date fair value price per share (in usd per share)	6.55
Vested/Exercised, Weighted average grant date fair value price per share (in usd per share)	0
Forfeited/Cancelled, Weighted average grant date fair value price per share (in usd per share)	8.70
Options outstanding, Weighted average grant date fair value price per share - March 31, 2022 (in usd per share)	$ 8.45
Restricted Share Units
Outstanding Share Awards
Outstanding as of December 31, 2021 (in shares) | shares	5,048,000
Granted (in shares) | shares	3,730,000
Vested/ Exercised (in shares) | shares	(1,080,000)
Forfeited/Cancelled (in shares) | shares	(221,000)
Outstanding at March 31, 2022 (in shares) | shares	7,477,000
Weighted Average Grant Date Fair Value
Outstanding, Weighted average grant date fair value at December 31, 2021 (in USD per share)	$ 33.27
Granted, Weighted average grant date fair value (in USD per share)	23.56
Vested/Exercised, Weighted average grant date fair value (in USD per share)	32
Forfeited/Cancelled, Weighted average grant date fair value (in USD per share)	34.54
Outstanding, Weighted average grant date fair value at March 31, 2022 (in USD per share)	$ 28.57
Performance Share Units
Outstanding Share Awards
Outstanding as of December 31, 2021 (in shares) | shares	486,000
Granted (in shares) | shares	0
Vested/ Exercised (in shares) | shares	0
Forfeited/Cancelled (in shares) | shares	0
Outstanding at March 31, 2022 (in shares) | shares	486,000
Weighted Average Grant Date Fair Value
Outstanding, Weighted average grant date fair value at December 31, 2021 (in USD per share)	$ 46.72
Granted, Weighted average grant date fair value (in USD per share)	0
Vested/Exercised, Weighted average grant date fair value (in USD per share)	0
Forfeited/Cancelled, Weighted average grant date fair value (in USD per share)	0
Outstanding, Weighted average grant date fair value at March 31, 2022 (in USD per share)	$ 46.72

Stock-Based Compensation Plan_6

Stock-Based Compensation Plans - Equity Awards Outstanding (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Equity Awards Vested and Expected to Vest
Stock Options, Awards (in shares) | shares	5,517,000,000
Stock Options, Average Price (in usd per share) | $ / shares	$ 32.21
Stock Options, Aggregate Intrinsic Value | $	$ 0
Stock Options, Remaining Term (in years)	7 years 6 months 18 days
Equity Awards That are Exercisable
Stock Options, Awards (in shares) | shares	2,536,000,000
Stock Options, Average Price (in usd per share) | $ / shares	$ 33.03
Stock Options, Aggregate Intrinsic Value | $	$ 0
Stock Options, Remaining Term	5 years 10 months 24 days
Restricted Share Units
Equity Awards Vested and Expected to Vest
Restricted Stock, Awards (in shares) | shares	6,809,000,000
Restricted Stock, Aggregate Intrinsic Value | $	$ 176
Restricted Stock, Remaining Term	2 years 4 months 9 days
Performance Share Units
Equity Awards Vested and Expected to Vest
Restricted Stock, Awards (in shares) | shares	291,000,000
Restricted Stock, Aggregate Intrinsic Value | $	$ 8
Restricted Stock, Remaining Term	1 year 8 months 1 day

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) position	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Restructuring and Related Activities [Abstract]
Number of positions | position	130
Payments for Restructuring	$ 5
Restructuring costs	4	$ 0
Restructuring activities	$ 19		$ 20

Taxes on Income - Narrative (De

Taxes on Income - Narrative (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	24.60%	21.30%

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Finished goods	$ 479	$ 482
Raw materials	58	44
Work in process	631	601
Supplies	56	44
Total (approximates current cost)	1,224	1,171
Decrease to LIFO costs	(16)	(20)
Inventory	1,208	1,151
Recognized as:
Inventories	1,121	1,003
Other assets	87	148
Inventories valued under LIFO	$ 85	$ 77

Financial Instruments - Narrati

Financial Instruments - Narrative (Details) € in Millions, $ in Millions	Mar. 31, 2023 USD ($)	Mar. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Accounts receivables factored | $	$ 68		$ 43
Euro Denominated Term Loan | Senior Notes
Derivative Instruments, Gain (Loss) [Line Items]
Face amount of debt		€ 1,987
Term Loan B Facility | Senior Notes
Derivative Instruments, Gain (Loss) [Line Items]
Face amount of debt		737
2.875% Senior Secured Notes Due 2028 | Senior Notes | Organon Finance 1 LLC
Derivative Instruments, Gain (Loss) [Line Items]
Face amount of debt		€ 1,250
Stated interest rate	2.875%	2.875%
Foreign Exchange Forward
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount | $	$ 1,500		$ 1,500

Financial Instruments - Schedul

Financial Instruments - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Level 2 - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Forward contracts in Other current assets	$ 12	$ 6
Forward contracts in Accrued and other current liabilities	$ 6	$ 24

Financial Instruments - Sched_2

Financial Instruments - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
DerivativeGainStatementOfIncomeOrComprehensiveIncomeExtensibleEnumerationNotDisclosedFlag	Foreign currency (losses) gains in Other comprehensive income	Foreign currency (losses) gains in Other comprehensive income
Euro Denominated Term Loan | Senior Notes
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gains on derivatives	$ (42)	$ 37

Financial Instruments - Impact

Financial Instruments - Impact of Actual Net Gains and Losses on Derivative Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Exchange losses (gains)	$ (9)	$ 4
Other (income) expense
Derivative Instruments, Gain (Loss) [Line Items]
Exchange losses (gains)	$ 9	$ (4)

Long-Term Debt - Summary of Deb

Long-Term Debt - Summary of Debt (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)	Mar. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Other (discounts and debt issuance costs)	$ (97)		$ (105)
Total principal long-term debt	8,711		8,913
Less: Current portion of long-term debt	8		8
Total Long-term debt, net of current portion	8,703		8,905
Notes Payable, Other Payables
Debt Instrument [Line Items]
Long-term debt	8		7
Term Loan B Facility | Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 2,543		2,793
Term Loan B Facility | Senior Notes | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Spread on variable rate	3%
Euro Denominated Term Loan B | Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 800		787
Face amount of debt | €		€ 750
Euro Denominated Term Loan B | Senior Notes | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Spread on variable rate	3%
4.125% Senior Secured Notes Due 2028 | Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 2,100		2,100
4.125% Senior Secured Notes Due 2028 | Senior Notes | Organon Finance 1 LLC
Debt Instrument [Line Items]
Stated interest rate	4.125%	4.125%
2.875% Senior Secured Notes Due 2028 | Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 1,357		1,331
2.875% Senior Secured Notes Due 2028 | Senior Notes | Organon Finance 1 LLC
Debt Instrument [Line Items]
Stated interest rate	2.875%	2.875%
Face amount of debt | €		€ 1,250
5.125% Senior Unsecured Notes Due 2031 | Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 2,000		$ 2,000
5.125% Senior Unsecured Notes Due 2031 | Senior Notes | Organon Finance 1 LLC
Debt Instrument [Line Items]
Stated interest rate	5.125%	5.125%

Long-Term Debt - Estimated Fair

Long-Term Debt - Estimated Fair Value of Long-term Debt (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Long-term debt	$ 8,236	$ 8,294

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) € in Millions, $ in Millions		3 Months Ended
	Mar. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 EUR (€)
Debt Instrument [Line Items]
Debt instrument interest payments | $		$ 65
Average maturity of long-term debt		5 years 8 months 12 days
Weighted average interest rate of debt		5.40%
Term Loan B Facility | Senior Notes
Debt Instrument [Line Items]
Early repayment of senior debt | $	$ 250
Euro Denominated Term Loan B | Senior Notes
Debt Instrument [Line Items]
Face amount of debt | €			€ 750
2.875% Senior Secured Notes Due 2028 | Senior Notes | Organon Finance 1 LLC
Debt Instrument [Line Items]
Face amount of debt | €			€ 1,250
Stated interest rate			2.875%
4.125% Senior Secured Notes Due 2028 | Senior Notes | Organon Finance 1 LLC
Debt Instrument [Line Items]
Stated interest rate			4.125%
5.125% Senior Unsecured Notes Due 2031 | Senior Notes | Organon Finance 1 LLC
Debt Instrument [Line Items]
Stated interest rate			5.125%

Long-Term Debt - Schedule of De

Long-Term Debt - Schedule of Debt Principal Payments (Details) $ in Millions	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2023	$ 6
2024	9
2025	9
2026	9
2027	9
Thereafter	$ 8,766

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ (892)	$ (1,508)
Other comprehensive loss, pretax	30	(16)
Tax	0	0
Other comprehensive loss, net of taxes	30	(16)
Ending balance	(737)	(1,250)
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(564)	(513)
Ending balance	(534)	(529)
Employee Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	10	(13)
Other comprehensive loss, pretax	0	(1)
Tax	0	0
Other comprehensive loss, net of taxes	0	(1)
Ending balance	10	(14)
Cumulative Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(574)	(500)
Other comprehensive loss, pretax	30	(15)
Tax	0	0
Other comprehensive loss, net of taxes	30	(15)
Ending balance	$ (544)	$ (515)

Samsung Collaboration - Narrati

Samsung Collaboration - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Brazil
Disaggregation of Revenue [Line Items]
Gross profit sharing arrangement percentage	35%
Samsung Bioepis
Disaggregation of Revenue [Line Items]
Collaboration agreement period	10 years
Potential future regulatory milestone payments	$ 25
Samsung Bioepis | Brazil
Disaggregation of Revenue [Line Items]
Gross profit sharing arrangement percentage	65%

Samsung Collaboration - Summari

Samsung Collaboration - Summarization of Collaboration Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Sales	$ 1,538	$ 1,567
Cost of sales	580	561
Selling, general and administrative	435	371
Receivables from Samsung included in Other current assets	1,445		$ 1,475
Payables to Samsung included in Trade accounts payable	996		1,132
Samsung Bioepis
Disaggregation of Revenue [Line Items]
Sales	116	99
Cost of sales	84	65
Selling, general and administrative	18	$ 18
Receivables from Samsung included in Other current assets	20		21
Payables to Samsung included in Trade accounts payable	$ 28		$ 72

Third-Party Arrangements - Acco

Third-Party Arrangements - Accounts Receivables (Details) - USD ($) $ in Millions	Jun. 03, 2021	Mar. 31, 2023	Dec. 31, 2022
Related Party Transactions [Abstract]
Provision of services period	25 months
Provision of services extension period	35 months
Due from Merck in Accounts receivable		$ 344	$ 374
Due to Merck in Accounts payable		$ 521	$ 543

Third-Party Arrangements - Sale

Third-Party Arrangements - Sales and Cost of Sales Resulting From The Manufacturing and Supply Agreements (Details) - Related Party - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transaction [Line Items]
Sales	$ 30	$ 33
Cost of sales	$ 28	$ 29

Contingencies (Details)

Contingencies (Details) € in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2014 case	Mar. 31, 2023 EUR (€) case	Mar. 31, 2023 USD ($) case	Dec. 31, 2022 USD ($)	Dec. 16, 2022 case	Dec. 15, 2022 case
Loss Contingencies [Line Items]
Amount of legal defense reserves | $			$ 22	$ 17
Spain
Loss Contingencies [Line Items]
Governmental fine | €		€ 39
Fosamax
Loss Contingencies [Line Items]
Number of pending claims			3,245
Fosamax | Femur Fracture Litigation | Federal
Loss Contingencies [Line Items]
Number of pending claims					974	975
Number of claims dismissed	650
Number of claims on appeal		515
Fosamax | Femur Fracture Litigation | New Jersey State Court
Loss Contingencies [Line Items]
Number of pending claims			1,990
Fosamax | Femur Fracture Litigation | California State Court
Loss Contingencies [Line Items]
Number of pending claims			275
Fosamax | Femur Fracture Litigation | Other State Courts
Loss Contingencies [Line Items]
Number of pending claims			4
Implanon | International
Loss Contingencies [Line Items]
Number of pending claims			12
Implanon | Northern District of Ohio
Loss Contingencies [Line Items]
Number of pending claims			2
Number of unfiled claims			56
Nexplanon/Implanon NXT | International
Loss Contingencies [Line Items]
Number of pending claims			18
Nexplanon | International
Loss Contingencies [Line Items]
Number of pending claims			6
Propecia/ Proscar | U.S.
Loss Contingencies [Line Items]
Number of pending claims			1
Propecia/ Proscar | International
Loss Contingencies [Line Items]
Number of pending claims			15
Number of pending class actions			2
Number of pending putative class actions			3