XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.2
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Reportable Segments
The Company’s Chief Executive Officer ("CEO"), who is the Company’s Chief Operating Decision Maker, manages the business through operating and reportable segments consistent with how the Company’s CEO: (i) assesses operating performance on a regular basis, (ii) makes resource allocation decisions and (iii) designates responsibilities of his direct reports. The Company operates in the following reportable segments: (i) Bausch + Lomb/International segment, (ii) Salix segment, (iii) Ortho Dermatologics segment and (iv) Diversified Products segment.
The following is a brief description of the Company’s segments:
•The Bausch + Lomb/International segment consists of: (i) sales in the U.S. of pharmaceutical products, OTC products and medical device products, primarily comprised of Bausch + Lomb products, with a focus on the Vision Care, Surgical, Consumer and Ophthalmology Rx products and (ii) with the exception of sales of Solta products, sales in Canada, Europe, Asia, Australia, Latin America, Africa and the Middle East of branded pharmaceutical products, branded generic pharmaceutical products, OTC products, medical device products and Bausch + Lomb products.
•The Salix segment consists of sales in the U.S. of GI products.
•The Ortho Dermatologics segment consists of: (i) sales in the U.S. of Ortho Dermatologics (dermatological) products and (ii) global sales of Solta medical aesthetic devices.
•The Diversified Products segment consists of sales in the U.S. of: (i) pharmaceutical products in the areas of neurology and certain other therapeutic classes, (ii) generic products and (iii) dentistry products.
Segment profit is based on operating income after the elimination of intercompany transactions. Certain costs, such as Amortization of intangible assets, Asset impairments, Acquired in-process research and development costs, Restructuring, integration and separation costs, Acquisition-related contingent consideration costs and Other expense (income), net, are not included in the measure of segment profit, as management excludes these items in assessing segment financial performance.
Corporate includes the finance, treasury, certain research and development programs, tax and legal operations of the Company’s businesses and incurs certain expenses, gains and losses related to the overall management of the Company, which are not allocated to the other business segments. In assessing segment performance and managing operations, management does not review segment assets. Furthermore, 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.
In connection with the planned separation of its eye-health business into an independent publicly traded entity from the remainder of Bausch Health Companies Inc., the Company has begun addressing the internal organizational design and structure of the new entity, which it anticipates having substantially complete in late 2021. As of the date of the issuance of these financial statements, these matters are in the planning phase. In connection with the Separation, the Company expects to realign and begin managing its operations in a manner consistent with the organizational structure of the two separate entities as proposed by the Separation during the first quarter of 2021. Accordingly, the Company expects to begin reporting its segment results to reflect the proposed realignment of its operating segments on a retrospective basis beginning with its first quarter of 2021.
Segment Revenues and Profits
Segment revenues and profits were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2020201920202019
Revenues:
Bausch + Lomb/International$1,169 $1,175 $3,166 $3,501 
Salix496 551 1,377 1,505 
Ortho Dermatologics144 147 393 407 
Diversified Products329 336 878 964 
$2,138 $2,209 $5,814 $6,377 
Segment profits:
Bausch + Lomb/International$336 $333 $830 $989 
Salix360 375 968 995 
Ortho Dermatologics70 58 156 156 
Diversified Products248 246 634 714 
1,014 1,012 2,588 2,854 
Corporate(141)(158)(442)(435)
Amortization of intangible assets(391)(475)(1,263)(1,452)
Asset impairments(2)(33)(17)(49)
Restructuring, integration and separation costs(2)(4)(13)(28)
Acquisition-related contingent consideration(2)(3)(26)(2)
Other expense, net(16)(10)(146)(15)
Operating income460 329 681 873 
Interest income2 2 11 9 
Interest expense(374)(406)(1,155)(1,221)
Loss on extinguishment of debt— — (51)(40)
Foreign exchange and other(13)9 (26)12 
Income (loss) before (provision for) benefit from income taxes$75 $(66)$(540)$(367)
Revenues by Segment and Product Category
Revenues by segment and product category were as follows:
Three Months Ended September 30, 2020Three Months Ended September 30, 2019
(in millions)Bausch + Lomb/ InternationalSalixOrtho DermatologicsDiversified ProductsTotalBausch + Lomb/ InternationalSalixOrtho DermatologicsDiversified ProductsTotal
Pharmaceuticals$200 $494 $65 $217 $976 $217 $551 $97 $207 $1,072 
Devices360 — 72 — 432 375 — 46 — 421 
OTC374 — — — 374 371 — — — 371 
Branded and Other Generics 219 — — 110 329 197 — — 119 316 
Other revenues16 2 7 2 27 15 — 4 10 29 
$1,169 $496 $144 $329 $2,138 $1,175 $551 $147 $336 $2,209 
Nine Months Ended September 30, 2020Nine Months Ended September 30, 2019
(in millions)Bausch + Lomb/ InternationalSalixOrtho DermatologicsDiversified ProductsTotalBausch + Lomb/ InternationalSalixOrtho DermatologicsDiversified ProductsTotal
Pharmaceuticals$552 $1,374 $213 $557 $2,696 $670 $1,505 $265 $617 $3,057 
Devices921 — 165 — 1,086 1,127 — 130 — 1,257 
OTC1,043 — — — 1,043 1,063 — — — 1,063 
Branded and Other Generics597 — — 312 909 582 — — 332 914 
Other revenues53 3 15 9 80 59 — 12 15 86 
$3,166 $1,377 $393 $878 $5,814 $3,501 $1,505 $407 $964 $6,377 
The top ten products for the nine months ended September 30, 2020 and 2019 represented 41% and 38% of total revenues for the nine months ended September 30, 2020 and 2019, respectively.
Geographic Information
Revenues are attributed to a geographic region based on the location of the customer and were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2020201920202019
U.S. and Puerto Rico$1,301 $1,369 $3,522 $3,851 
China94 85 231 275 
Canada87 85 244 252 
Mexico68 58 157 164 
Egypt59 55 175 157 
Poland57 53 168 168 
Japan57 67 159 181 
France42 45 131 156 
Germany32 33 108 119 
Russia32 47 89 124 
Spain21 18 53 62 
United Kingdom21 28 58 86 
Other267 266 719 782 
$2,138 $2,209 $5,814 $6,377 
Major Customers
Customers that accounted for 10% or more of total revenues were as follows:
Nine Months Ended September 30,
20202019
AmerisourceBergen Corporation17%17%
McKesson Corporation (including McKesson Specialty)17%17%
Cardinal Health, Inc.13%14%