SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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 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 (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 June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Revenues:
Salix	$	557	$	501	$	1,053	$	965
International	259		233		506		477
Solta Medical	88		57		161		129
Diversified	228		235		425		484
Bausch + Lomb	1,035		941		1,966		1,830
	$	2,167	$	1,967	$	4,111	$	3,885
Segment profits:
Salix	$	386	$	354	$	700	$	676
International	68		66		145		157
Solta Medical	45		20		81		55
Diversified	138		141		245		299
Bausch + Lomb	244		208		455		414
	881		789		1,626		1,601
Corporate	(230)		(202)		(481)		(396)
Amortization of intangible assets	(269)		(302)		(542)		(612)
Goodwill impairments	—		(83)		—		(83)
Asset impairments	(37)		(6)		(50)		(14)
Restructuring, integration, separation and IPO costs	(16)		(35)		(26)		(48)
Other income (expense), net	83		—		60		(2)
Operating income	412		161		587		446
Interest income	7		3		13		5
Interest expense	(319)		(410)		(626)		(772)
Gain on extinguishment of debt	—		113		—		113
Foreign exchange and other	(21)		4		(31)		(3)
Income (loss) before income taxes	$	79	$	(129)	$	(57)	$	(211)

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 June 30, 2023
Pharmaceuticals	$	558	$	60	$	—	$	194	$	134	$	946
Devices	—		—		88		—		408		496
OTC	—		39		—		1		421		461
Branded and Other Generics	—		148		—		27		68		243
Other revenues	(1)		12		—		6		4		21
	$	557	$	259	$	88	$	228	$	1,035	$	2,167
	Three Months Ended June 30, 2022
Pharmaceuticals	$	501	$	67	$	—	$	196	$	114	$	878
Devices	—		—		57		—		393		450
OTC	—		34		—		1		366		401
Branded and Other Generics	—		122		—		31		62		215
Other revenues	—		10		—		7		6		23
	$	501	$	233	$	57	$	235	$	941	$	1,967
	Six Months Ended June 30, 2023
Pharmaceuticals	$	1,054	$	117	$	—	$	356	$	242	$	1,769
Devices	—		—		161		—		814		975
OTC	—		78		—		3		774		855
Branded and Other Generics	—		286		—		54		129		469
Other revenues	(1)		25		—		12		7		43
	$	1,053	$	506	$	161	$	425	$	1,966	$	4,111
	Six Months Ended June 30, 2022
Pharmaceuticals	$	965	$	125	$	—	$	401	$	221	$	1,712
Devices	—		—		129		—		779		908
OTC	—		72		—		3		702		777
Branded and Other Generics	—		255		—		67		116		438
Other revenues	—		25		—		13		12		50
	$	965	$	477	$	129	$	484	$	1,830	$	3,885

The top ten products for the six months ended June 30, 2023 and 2022 represented 47% and 48% of total revenues for the six months ended June 30, 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 June 30,				Six Months Ended June 30, 2023
(in millions)	2023		2022		2023		2022
U.S. and Puerto Rico	$	1,269	$	1,190	$	2,380	$	2,305
China	114		74		202		177
Canada	92		88		176		166
Poland	75		63		150		139
Mexico	75		69		144		130
France	63		58		120		115
Japan	48		50		98		101
Germany	42		35		85		80
United Kingdom	30		29		60		57
Russia	36		38		70		63
Spain	25		23		47		44
Italy	23		23		44		43
South Korea	23		20		45		39
Other	252		207		490		426
	$	2,167	$	1,967	$	4,111	$	3,885

Major Customers

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

	Six Months Ended June 30, 2023
	2023	2022
AmerisourceBergen Corporation	18%	16%
McKesson Corporation (including McKesson Specialty)	14%	13%
Cardinal Health, Inc.	13%	11%