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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable Segments The Company’s 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: (i) in the U.S. of pharmaceutical products in the areas of neurology and certain other therapeutic classes, (ii) in the U.S. of generic products, (iii) in the U.S. of dentistry products and (iv) of certain other businesses divested during 2017 that were not core to the Company's operations, including the Company's equity interests in Dendreon (June 28, 2017) and Sprout (December 20, 2017). As a result of the divestitures of Dendreon and Sprout, the Company exited the oncology and women's health businesses, respectively.
Effective in the first quarter of 2019, one product historically included in the reported results of the Ortho Dermatologics business unit in the Ortho Dermatologics segment is now included in the reported results of the Generics business unit in the Diversified Products segment and another product historically included in the reported results of the Ortho Dermatologics business unit in the Ortho Dermatologics segment is now included in the reported results of the Dentistry business unit in the Diversified Products segment as management believes the products better align with the new respective business units. These changes in product alignment are not material. Prior period presentations of business unit and segment revenues and profits have been conformed to current segment and business unit reporting structures. Segment profit is based on operating income after the elimination of intercompany transactions. Certain costs, such as Amortization of intangible assets, Asset impairments, In-process research and development costs, Restructuring and integration 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. Segment Revenues and Profit Segment revenues and profits for the years 2019, 2018 and 2017 were as follows:
(in millions) | 2019 |  | 2018 |  | 2017
Revenues: |  |  |  |  |
Bausch + Lomb/International | $ | 4,739 |  |  | $ | 4,664 |  |  | $ | 4,795 |
Salix | 2,022 |  |  | 1,749 |  |  | 1,566 |
Ortho Dermatologics | 565 |  |  | 617 |  |  | 721 |
Diversified Products | 1,275 |  |  | 1,350 |  |  | 1,642 |
Total revenues | $ | 8,601 |  |  | $ | 8,380 |  |  | $ | 8,724 |
Segment profit: |  |  |  |  |
Bausch + Lomb/International | $ | 1,332 |  |  | $ | 1,330 |  |  | $ | 1,412 |
Salix | 1,349 |  |  | 1,149 |  |  | 935 |
Ortho Dermatologics | 222 |  |  | 257 |  |  | 333 |
Diversified Products | 932 |  |  | 1,012 |  |  | 1,115 |
Total segment profit | 3,835 |  |  | 3,748 |  |  | 3,795 |
Corporate | (609 | ) |  | (605 | ) |  | (562 | )
Amortization of intangible assets | (1,897 | ) |  | (2,644 | ) |  | (2,690 | )
Goodwill impairments | — |  |  | (2,322 | ) |  | (312 | )
Asset impairments | (75 | ) |  | (568 | ) |  | (714 | )
Restructuring and integration costs | (31 | ) |  | (22 | ) |  | (52 | )
Acquisition-related contingent consideration | (12 | ) |  | 9 |  |  | 289 |
Other expense (income), net | (1,414 | ) |  | 20 |  |  | 348 |
Operating (loss) income | (203 | ) |  | (2,384 | ) |  | 102 |
Interest income | 12 |  |  | 11 |  |  | 12 |
Interest expense | (1,612 | ) |  | (1,685 | ) |  | (1,840 | )
Loss on extinguishment of debt | (42 | ) |  | (119 | ) |  | (122 | )
Foreign exchange and other | 8 |  |  | 23 |  |  | 107 |
Loss before benefit from income taxes | $ | (1,837 | ) |  | $ | (4,154 | ) |  | $ | (1,741 | )
Capital Expenditures Capital expenditures by segment for the years 2019, 2018 and 2017 were as follows:
(in millions) | 2019 |  | 2018 |  | 2017
Capital expenditures: |  |  |  |  |
Bausch + Lomb/International | $ | 225 |  |  | $ | 139 |  |  | $ | 159 |
Salix | 2 |  |  | 2 |  |  | 3 |
Ortho Dermatologics | 1 |  |  | 1 |  |  | 2 |
Diversified Products | 2 |  |  | 2 |  |  | 4 |
| 230 |  |  | 144 |  |  | 168 |
Corporate | 40 |  |  | 13 |  |  | 3 |
Total capital expenditures | $ | 270 |  |  | $ | 157 |  |  | $ | 171 |
Revenues by Product and by Product Category The top ten products represented 39%, 36% and 32% of total product sales for the years 2019, 2018 and 2017, respectively. Revenues by segment and product category were as follows:
(in millions) | Bausch + Lomb/ International |  | Salix |  | Ortho Dermatologics |  | Diversified Products |  | Total
| 2019 | 2018 | 2017 |  | 2019 | 2018 | 2017 |  | 2019 | 2018 | 2017 |  | 2019 | 2018 | 2017 |  | 2019 | 2018 | 2017
Pharmaceuticals | $ | 885 |  | $ | 892 |  | $ | 956 |  |  | $ | 2,022 |  | $ | 1,752 |  | $ | 1,564 |  |  | $ | 355 |  | $ | 457 |  | $ | 567 |  |  | $ | 810 |  | $ | 927 |  | $ | 1,290 |  |  | $ | 4,072 |  | $ | 4,028 |  | $ | 4,377 |
Devices | 1,524 |  | 1,505 |  | 1,421 |  |  | — |  | — |  | — |  |  | 193 |  | 135 |  | 111 |  |  | — |  | — |  | — |  |  | 1,717 |  | 1,640 |  | 1,532 |
OTC | 1,452 |  | 1,412 |  | 1,529 |  |  | — |  | — |  | — |  |  | — |  | — |  | — |  |  | — |  | — |  | — |  |  | 1,452 |  | 1,412 |  | 1,529 |
Branded and Other Generics | 801 |  | 784 |  | 819 |  |  | — |  | — |  | — |  |  | — |  | — |  | — |  |  | 447 |  | 407 |  | 338 |  |  | 1,248 |  | 1,191 |  | 1,157 |
Other revenues | 77 |  | 71 |  | 70 |  |  | — |  | (3 | ) | 2 |  |  | 17 |  | 25 |  | 43 |  |  | 18 |  | 16 |  | 14 |  |  | 112 |  | 109 |  | 129 |
| $ | 4,739 |  | $ | 4,664 |  | $ | 4,795 |  |  | $ | 2,022 |  | $ | 1,749 |  | $ | 1,566 |  |  | $ | 565 |  | $ | 617 |  | $ | 721 |  |  | $ | 1,275 |  | $ | 1,350 |  | $ | 1,642 |  |  | $ | 8,601 |  | $ | 8,380 |  | $ | 8,724 |
Geographic Information Revenues are attributed to a geographic region based on the location of the customer for the years 2019, 2018 and 2017 were as follows:
(in millions) | 2019 |  | 2018 |  | 2017
U.S. and Puerto Rico | $ | 5,164 |  |  | $ | 5,011 |  |  | $ | 5,225 |
China | 368 |  |  | 361 |  |  | 331 |
Canada | 339 |  |  | 319 |  |  | 326 |
Japan | 241 |  |  | 226 |  |  | 223 |
Poland | 231 |  |  | 218 |  |  | 201 |
Mexico | 228 |  |  | 211 |  |  | 201 |
Egypt | 218 |  |  | 178 |  |  | 152 |
France | 201 |  |  | 205 |  |  | 188 |
Russia | 180 |  |  | 154 |  |  | 200 |
Germany | 150 |  |  | 170 |  |  | 157 |
United Kingdom | 115 |  |  | 117 |  |  | 108 |
Spain | 86 |  |  | 83 |  |  | 77 |
Italy | 85 |  |  | 85 |  |  | 78 |
Other | 995 |  |  | 1,042 |  |  | 1,257 |
| $ | 8,601 |  |  | $ | 8,380 |  |  | $ | 8,724 |
Long-lived assets consisting of property, plant and equipment, net of accumulated depreciation, are attributed to geographic regions based on their physical location as of December 31, 2019 and 2018 were as follows:
(in millions) | 2019 |  | 2018
U.S. and Puerto Rico | $ | 656 |  |  | $ | 593 |
Ireland | 255 |  |  | 217 |
Canada | 103 |  |  | 99 |
Poland | 90 |  |  | 94 |
Germany | 68 |  |  | 66 |
Egypt | 62 |  |  | 50 |
Mexico | 50 |  |  | 48 |
France | 30 |  |  | 31 |
China | 27 |  |  | 25 |
Serbia | 27 |  |  | 28 |
Italy | 22 |  |  | 23 |
Other | 76 |  |  | 79 |
| $ | 1,466 |  |  | $ | 1,353 |
Major Customers Customers that accounted for 10% or more of total revenues were as follows:
| 2019 |  | 2018 |  | 2017
McKesson Corporation | 17% |  | 18% |  | 19%
AmerisourceBergen Corporation | 16% |  | 18% |  | 15%
Cardinal Health, Inc. | 14% |  | 13% |  | 13%

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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