SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

Reportable Segments

The following is a brief description of the Company’s segments:

•The Salix segment consists of sales in the U.S. of GI products. Sales of the Xifaxan® product line represented approximately 80% of the Salix segment’s revenues.

•The International segment consists of sales, with the exception of sales of Bausch + Lomb products and Solta Medical 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 Medical aesthetic medical devices.

•The Diversified (formerly 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) dermatology products, (iii) generic pharmaceutical products and (iv) dentistry products.

•The Bausch + Lomb segment consists of global sales of Bausch + Lomb Vision Care, Surgical and Ophthalmic Pharmaceuticals products.

Segment profit is based on operating income after the elimination of intercompany transactions, including between Bausch + Lomb and other segments. Certain costs, such as Amortization of intangible assets, Asset impairments, Goodwill impairments, Restructuring, integration, separation and IPO costs and Other 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)	2023		2022
Revenues:
Salix	$	496	$	464
International	247		244
Solta Medical	73		72
Diversified	197		249
Bausch + Lomb	931		889
	$	1,944	$	1,918
Segment profits:
Salix	$	314	$	322
International	77		91
Solta Medical	36		35
Diversified	107		158
Bausch + Lomb	211		206
	745		812
Corporate	(251)		(194)
Amortization of intangible assets	(273)		(310)
Asset impairments	(13)		(8)
Restructuring, integration, separation and IPO costs	(10)		(13)
Other expense, net	(23)		(2)
Operating income	175		285
Interest income	6		2
Interest expense	(307)		(362)
Foreign exchange and other	(10)		(7)
Loss before income taxes	$	(136)	$	(82)

Revenues by Segment and Product Category

Revenues by segment and product category were as follows:

(in millions)	Salix		International		Solta Medical		Diversified		Bausch + Lomb		Total
	Three Months Ended March 31, 2023
Pharmaceuticals	$	496	$	57	$	—	$	162	$	108	$	823
Devices	—		—		73		—		406		479
OTC	—		39		—		2		353		394
Branded and Other Generics	—		138		—		27		61		226
Other revenues	—		13		—		6		3		22
	$	496	$	247	$	73	$	197	$	931	$	1,944
	Three Months Ended March 31, 2022
Pharmaceuticals	$	464	$	58	$	—	$	205	$	107	$	834
Devices	—		—		72		—		386		458
OTC	—		38		—		2		336		376
Branded and Other Generics	—		133		—		36		54		223
Other revenues	—		15		—		6		6		27
	$	464	$	244	$	72	$	249	$	889	$	1,918

The top ten products for the three months ended March 31, 2023 and 2022 represented 48% and 47% of total revenues for the three months ended March 31, 2023 and 2022, 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)	2023		2022
U.S. and Puerto Rico	$	1,111	$	1,115
China	88		103
Canada	84		78
Poland	75		76
Mexico	69		61
France	57		57
Japan	50		51
Germany	43		45
United Kingdom	30		28
Russia	34		25
Spain	22		21
Italy	21		20
South Korea	22		19
Other	238		219
	$	1,944	$	1,918

Major Customers

Customers that accounted for 10% or more of total revenues were as follows:

	Three Months Ended March 31,
	2023	2022
AmerisourceBergen Corporation	19%	18%
McKesson Corporation (including McKesson Specialty)	14%	14%
Cardinal Health, Inc.	13%	13%