Oceaneering International OII Offshore Projects Group — Increase (Decrease) in Inventories

Inventory. Inventory is valued at the lower of cost or net realizable value. We determine cost using the weighted-average method. We periodically review the value of items in inventory and record write-downs or write-offs of inventory based on our assessment of market conditions. Write-downs and write-offs are charged to cost of services and products. In the year ended December 31, 2025, we recorded increases to our inventory reserve of $12 million related primarily to $13 million in write-downs associated with our theme park ride business in our Manufactured Products segment and $2.6 million related to write-downs of inventory deemed to be obsolete in our OPG and Manufactured Products segments. We did not record any write-downs or write-offs of inventory in the years ended December 31, 2024 or 2023. Our inventory reserve was $48 million and $36 million as of December 31, 2025 and 2024, respectively.