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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION
SEGMENT INFORMATION
Reportable Segments
As previously announced on August 9, 2016, the Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), commenced managing the business differently in the third quarter of 2016 through changes in and reorganizations to the Company’s business structure, including changes to its operating and reportable segments, which necessitated a realignment of the Company's historical segment structure. Pursuant to this change, which was effective in the third quarter of 2016, the Company now operates in three operating and reportable segments: (i) Bausch + Lomb / International, (ii) Branded Rx, and (iii) U.S. Diversified Products. The following is a brief description of the Company’s segments as of September 30, 2016:
•
The Bausch + Lomb / International segment consists of (i) sales in the U.S. of pharmaceutical products, OTC products and medical device products in the area of eye health, primarily comprised of Bausch + Lomb products, with a focus on four product offerings (Vision Care, Surgical, Consumer and Ophthalmology Rx), and (ii) branded pharmaceutical products, branded generic pharmaceutical products, OTC products, medical device products, and Bausch + Lomb products sold in Europe, Asia, Australia and New Zealand, Latin America, Africa and the Middle East.
•
The Branded Rx segment consists of sales of pharmaceutical products related to (i) the Salix product portfolio in the U.S., (ii) the Dermatological product portfolio in the U.S., (iii) the Canadian product portfolio, and (iv) product portfolios in the U.S. in the areas of oncology, dentistry and women’s health.
•
The U.S. Diversified Products segment consists of (i) sales in the U.S. of pharmaceutical products, OTC products and medical device products in the areas of neurology and certain other therapeutic classes, including aesthetics (which includes the Solta and Obagi businesses), and (ii) sales of generic products in the U.S.
Segment profit is based on operating income after the elimination of intercompany transactions. Certain costs, such as restructuring and acquisition-related costs, other (income) expense, and in-process research and development impairments and other charges, are not included in the measure of segment profit, as management excludes these items in assessing financial performance.
Corporate includes the finance, treasury, certain research and development programs, tax and legal operations of the Company’s businesses and maintains and/or incurs certain assets, liabilities, expenses, gains and losses related to the overall management of the Company, which are not allocated to the other business segments. In addition, a portion of share-based compensation is considered a corporate cost, since the amount of such expense depends on Company-wide performance rather than the operating performance of any single segment.
Prior period segment financial information has been recast to conform to current segment presentation.
Segment Revenues and Profit
Segment revenues and profit for the three-month and nine-month periods ended September 30, 2016 and 2015 were as follows:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
(restated)
Revenues:
 
 
 
 
 
 
 
The Bausch + Lomb / International segment(1)
$
1,161.8

 
$
1,118.9

 
$
3,431.4

 
$
3,416.3

The Branded Rx segment(2)
847.3

 
1,104.3

 
2,318.5

 
2,579.3

The U.S. Diversified Products segment(3)
470.5

 
563.6

 
1,521.5

 
1,693.7

Total revenues
2,479.6

 
2,786.8

 
7,271.4

 
7,689.3

 
 
 
 
 
 
 
 
Segment profit:
 
 
 
 
 
 
 
The Bausch + Lomb / International segment(4)
345.6

 
382.5

 
979.5

 
1,187.5

The Branded Rx segment(5)
520.1

 
671.0

 
1,170.8

 
1,504.2

The U.S. Diversified Products segment(6)
378.3

 
447.5

 
1,226.5

 
1,329.5

Total segment profit
1,244.0

 
1,501.0

 
3,376.8

 
4,021.2

 
 
 
 
 
 
 
 
Corporate(7)
(184.1
)
 
(161.6
)
 
(524.3
)
 
(382.8
)
Amortization and impairments of finite-lived intangible assets
(807.1
)
 
(679.2
)
 
(2,389.2
)
 
(1,629.8
)
Goodwill impairment
(1,049.0
)
 
—

 
(1,049.0
)
 
—

Restructuring and integration costs
(20.7
)
 
(75.6
)
 
(78.2
)
 
(274.0
)
In-process research and development impairments and other charges
(36.0
)
 
(95.8
)
 
(53.9
)
 
(108.1
)
Acquisition-related costs
—

 
(7.0
)
 
(1.8
)
 
(30.4
)
Acquisition-related contingent consideration
(9.0
)
 
(3.8
)
 
(18.3
)
 
(22.6
)
Other (expense) income
(1.1
)
 
(30.2
)
 
21.6

 
(213.2
)
Operating (loss) income
(863.0
)
 
447.8

 
(716.3
)
 
1,360.3

Interest income
2.5

 
0.7

 
5.5

 
2.5

Interest expense
(469.6
)
 
(420.2
)
 
(1,368.7
)
 
(1,130.7
)
Loss on extinguishment of debt
—

 
—

 
—

 
(20.0
)
Foreign exchange (loss) gain and other
(2.3
)
 
(34.0
)
 
4.6

 
(99.5
)
(Loss) income before (recovery of) provision for income taxes
$
(1,332.4
)
 
$
(5.7
)
 
$
(2,074.9
)
 
$
112.6

____________________________________
(1)
The Bausch + Lomb / International segment revenues reflect incremental product sales revenue in the three-month and nine-month periods ended September 30, 2016 mainly from 2015 acquisitions of $67 million and $226 million, respectively, in the aggregate, primarily from the Amoun Acquisition.
(2)
The Branded Rx segment revenues reflect incremental product sales revenue in the nine-month period ended September 30, 2016 from 2015 acquisitions of $383 million, in the aggregate, primarily from the Salix Acquisition and the acquisition of certain assets of Dendreon.
(3)
The U.S. Diversified Products segment revenues reflect incremental product sales revenue in the three-month and nine-month periods ended September 30, 2016 from 2015 acquisitions of $2 million and $113 million, respectively, in the aggregate, primarily from the Salix Acquisition (Zegerid® authorized generic product sales) and the acquisition of certain assets of Marathon.
(4)
The Bausch + Lomb / International segment profit in the three-month and nine-month periods ended September 30, 2016 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to identifiable intangible assets of $255 million and $587 million, respectively, in the aggregate, compared with $161 million and $478 million in the corresponding periods of 2015.
(5)
The Branded Rx segment profit in the three-month and nine-month periods ended September 30, 2016 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to identifiable intangible assets and inventory of $421 million and $1.49 billion, respectively, in the aggregate, primarily from the Salix Acquisition, compared with $422 million and $907 million in the corresponding periods of 2015.
(6)
The U.S. Diversified Products segment profit in the three-month and nine-month periods ended September 30, 2016 reflects the impact of acquisition accounting adjustments related to the fair value adjustments to identifiable intangible assets of $133 million and $341 million, respectively, in the aggregate, compared with $121 million and $300 million in the corresponding periods of 2015.
(7)
Corporate reflects research and development expenses of $56 million and $173 million in the three-month and nine-month periods ended September 30, 2016, respectively, and non-restructuring-related share-based compensation expense of $23 million and $93 million in the three-month and nine-month periods ended September 30, 2016, respectively. This compares with research and development expenses of $72 million and $162 million in the corresponding periods of 2015, respectively, and non-restructuring-related share-based compensation expense of $40 million and $78 million in the corresponding periods of 2015, respectively. The non-restructuring-related share-based compensation expense in the nine-month period ended September 30, 2016 included a charge relating to the acceleration of vesting of the performance-based RSUs held by the Company's former Chief Executive Officer. See Note 12 for additional information.
Segment Assets
Total assets by segment as of September 30, 2016 and December 31, 2015 were as follows:
 
As of
September 30,
2016
 
As of
December 31,
2015
Assets:
 
 
 
The Bausch + Lomb / International segment
$
16,455.5

 
$
16,886.7

The Branded Rx segment
22,524.6

 
24,900.5

The U.S. Diversified Products segment
6,302.6

 
6,758.5

 
45,282.7

 
48,545.7

Corporate
478.5

 
418.8

Total assets
$
45,761.2

 
$
48,964.5