XML 38 R26.htm IDEA: XBRL DOCUMENT v3.22.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Reportable Segments
In connection with the planned separation of its Solta business into an independent publicly traded entity from the remainder of Bausch Health Companies Inc., the Company has begun managing its operations in a manner which is consistent with the organizational structure of the two separate entities as proposed by the Solta IPO. As a result, during the first quarter of 2022, the Company’s Chief Executive Officer (“CEO”), who is the Company’s Chief Operating Decision Maker, commenced managing the business differently through changes in its operating and reportable segments, which necessitated a realignment of the Company’s historical segment structure. This realignment is consistent with how the Company’s CEO currently: (i) assesses operating performance on a regular basis, (ii) makes resource allocation decisions and (iii) designates responsibilities of his direct reports. Pursuant to these changes, effective in the first quarter of 2022, the Company operates in the following reportable segments: (i) Bausch + Lomb, (ii) Salix, (iii) International (formerly International Rx), (iv) Solta Medical and (v) Diversified Products. The new segment structure does not impact the Company’s reporting units but realigns the two reporting units of the former Ortho Dermatologics segment whereby its medical dermatology reporting unit (Ortho Dermatologics) is now part of the current Diversified Products segment and the Solta reporting unit is now the sole reporting unit of the new Solta Medical segment. Prior period presentation of segment revenues and segment profits has been recast to conform to the current segment reporting structure.
The following is a brief description of the Company’s segments:
•The Bausch + Lomb segment consists of global sales of Bausch + Lomb Vision Care, Consumer, Surgical and Ophthalmic Pharmaceuticals products.
•The Salix segment consists of sales in the U.S. of GI products.
•The International segment consists of sales, with the exception of sales of Bausch + Lomb products and Solta aesthetic medical devices, outside the U.S. and Puerto Rico of branded pharmaceutical products, branded generic pharmaceutical products and OTC products.
•The Solta Medical segment consists of global sales of Solta aesthetic medical 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, (iii) Ortho Dermatologics (dermatological) products and (iv) 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, separation and IPO costs and Other (income) expense, 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.
Segment Revenues and Profits
Segment revenues and profits were as follows:
Three Months Ended March 31,
(in millions)20222021
Revenues:
Bausch + Lomb$889 $881 
Salix464 472 
International244 306 
Solta Medical72 72 
Diversified Products249 296 
$1,918 $2,027 
Segment profits:
Bausch + Lomb$206 $239 
Salix322 327 
International91 109 
Solta Medical35 41 
Diversified Products158 200 
812 916 
Corporate(194)(181)
Amortization of intangible assets(310)(357)
Goodwill impairments— (469)
Asset impairments, including loss on assets held for sale(8)(148)
Restructuring, integration, separation and IPO costs(13)(12)
Other income (expense), net(2)30 
Operating income (loss)285 (221)
Interest income2 2 
Interest expense(362)(368)
Loss on extinguishment of debt— (5)
Foreign exchange and other(7)1 
Loss before provision for income taxes$(82)$(591)
Revenues by Segment and Product Category
Revenues by segment and product category were as follows:
(in millions)Bausch + LombSalixInternationalSolta MedicalDiversified ProductsTotal
Three Months Ended March 31, 2022
Pharmaceuticals$110 $464 $65 $— $205 $844 
Devices386 — — 72 — 458 
OTC335 — 38 — 2 375 
Branded and Other Generics 52 — 133 — 36 221 
Other revenues6 — 8 6 20 
$889 $464 $244 $72 $249 $1,918 
Three Months Ended March 31, 2021
Pharmaceuticals$121 $470 $59 $— $242 $892 
Devices382 — — 72 — 454 
OTC320 — 25 — 2 347 
Branded and Other Generics51 — 212 — 47 310 
Other revenues7 2 10 — 5 24 
$881 $472 $306 $72 $296 $2,027 
The top ten products for the three months ended March 31, 2022 and 2021 represented 44% and 40% of total revenues for the three months ended March 31, 2022 and 2021, respectively.
Geographic Information
Revenues are attributed to a geographic region based on the location of the customer and were as follows:
Three Months Ended March 31,
(in millions)20222021
U.S. and Puerto Rico$1,115 $1,162 
China103 110 
Canada78 76 
Poland76 62 
Mexico61 69 
France57 54 
Japan51 60 
Germany45 42 
United Kingdom28 25 
Russia25 31 
Spain21 19 
Italy20 17 
South Korea19 20 
Other219 280 
$1,918 $2,027 
Certain reclassifications have been made and are reflected in the table above.
Major Customers
Customers that accounted for 10% or more of total revenues were as follows:
Three Months Ended March 31,
20222021
AmerisourceBergen Corporation18%18%
McKesson Corporation (including McKesson Specialty)14%16%
Cardinal Health, Inc.13%12%