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SEGMENT INFORMATION | 6 Months Ended
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Jun. 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, 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 Profits Segment revenues and profits were as follows:
| Three Months Ended June 30, |  |  |  | Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Revenues: |  |  |  |  |  |  |
Bausch + Lomb/International | $ | 883 |  |  | $ | 1,208 |  |  | $ | 1,997 |  |  | $ | 2,326 |
Salix | 404 |  |  | 509 |  |  | 881 |  |  | 954 |
Ortho Dermatologics | 116 |  |  | 122 |  |  | 249 |  |  | 260 |
Diversified Products | 261 |  |  | 313 |  |  | 549 |  |  | 628 |
| $ | 1,664 |  |  | $ | 2,152 |  |  | $ | 3,676 |  |  | $ | 4,168 |
Segment profits: |  |  |  |  |  |  |
Bausch + Lomb/International | $ | 169 |  |  | $ | 337 |  |  | $ | 494 |  |  | $ | 656 |
Salix | 289 |  |  | 332 |  |  | 608 |  |  | 620 |
Ortho Dermatologics | 38 |  |  | 41 |  |  | 86 |  |  | 98 |
Diversified Products | 184 |  |  | 232 |  |  | 386 |  |  | 468 |
| 680 |  |  | 942 |  |  | 1,574 |  |  | 1,842 |
Corporate | (145) |  |  | (152) |  |  | (301) |  |  | (277) |
Amortization of intangible assets | (436) |  |  | (488) |  |  | (872) |  |  | (977) |
Asset impairments | (1) |  |  | (13) |  |  | (15) |  |  | (16) |
Restructuring and integration costs | (7) |  |  | (4) |  |  | (11) |  |  | (24) |
Acquisition-related contingent consideration | (11) |  |  | (20) |  |  | (24) |  |  | 1 |
Other expense, net | (107) |  |  | (8) |  |  | (130) |  |  | (5) |
Operating (loss) income | (27) |  |  | 257 |  |  | 221 |  |  | 544 |
Interest income | 2 |  |  | 3 |  |  | 9 |  |  | 7 |
Interest expense | (385) |  |  | (409) |  |  | (781) |  |  | (815) |
Loss on extinguishment of debt | (27) |  |  | (33) |  |  | (51) |  |  | (40) |
Foreign exchange and other | — |  |  | 3 |  |  | (13) |  |  | 3 |
Loss before benefit from income taxes | $ | (437) |  |  | $ | (179) |  |  | $ | (615) |  |  | $ | (301) |
Revenues by Segment and Product Category Revenues by segment and product category were as follows:
| Three Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  | Three Months Ended June 30, 2019 |  |  |  |  |  |  |  |
(in millions) | Bausch + Lomb/ International |  | Salix |  | Ortho Dermatologics |  | Diversified Products |  | Total |  | Bausch + Lomb/ International |  | Salix |  | Ortho Dermatologics |  | Diversified Products |  | Total
Pharmaceuticals | $ | 151 |  |  | $ | 403 |  |  | $ | 71 |  |  | $ | 158 |  |  | $ | 783 |  |  | $ | 235 |  |  | $ | 509 |  |  | $ | 75 |  |  | $ | 199 |  |  | $ | 1,018 |
Devices | 220 |  |  | — |  |  | 42 |  |  | — |  |  | 262 |  |  | 387 |  |  | — |  |  | 45 |  |  | — |  |  | 432 |
OTC | 318 |  |  | — |  |  | — |  |  | — |  |  | 318 |  |  | 367 |  |  | — |  |  | — |  |  | — |  |  | 367 |
Branded and Other Generics | 175 |  |  | — |  |  | — |  |  | 99 |  |  | 274 |  |  | 194 |  |  | — |  |  | — |  |  | 111 |  |  | 305 |
Other revenues | 19 |  |  | 1 |  |  | 3 |  |  | 4 |  |  | 27 |  |  | 25 |  |  | — |  |  | 2 |  |  | 3 |  |  | 30 |
| $ | 883 |  |  | $ | 404 |  |  | $ | 116 |  |  | $ | 261 |  |  | $ | 1,664 |  |  | $ | 1,208 |  |  | $ | 509 |  |  | $ | 122 |  |  | $ | 313 |  |  | $ | 2,152 |
| Six Months Ended June 30, 2020 |  |  |  |  |  |  |  |  |  | Six Months Ended June 30, 2019 |  |  |  |  |  |  |  |
(in millions) | Bausch + Lomb/ International |  | Salix |  | Ortho Dermatologics |  | Diversified Products |  | Total |  | Bausch + Lomb/ International |  | Salix |  | Ortho Dermatologics |  | Diversified Products |  | Total
Pharmaceuticals | $ | 352 |  |  | $ | 880 |  |  | $ | 148 |  |  | $ | 340 |  |  | $ | 1,720 |  |  | $ | 452 |  |  | $ | 954 |  |  | $ | 170 |  |  | $ | 410 |  |  | $ | 1,986 |
Devices | 561 |  |  | — |  |  | 93 |  |  | — |  |  | 654 |  |  | 753 |  |  | — |  |  | 83 |  |  | — |  |  | 836 |
OTC | 669 |  |  | — |  |  | — |  |  | — |  |  | 669 |  |  | 691 |  |  | — |  |  | — |  |  | — |  |  | 691 |
Branded and Other Generics | 378 |  |  | — |  |  | — |  |  | 202 |  |  | 580 |  |  | 385 |  |  | — |  |  | — |  |  | 213 |  |  | 598 |
Other revenues | 37 |  |  | 1 |  |  | 8 |  |  | 7 |  |  | 53 |  |  | 45 |  |  | — |  |  | 7 |  |  | 5 |  |  | 57 |
| $ | 1,997 |  |  | $ | 881 |  |  | $ | 249 |  |  | $ | 549 |  |  | $ | 3,676 |  |  | $ | 2,326 |  |  | $ | 954 |  |  | $ | 260 |  |  | $ | 628 |  |  | $ | 4,168 |
The top ten products for the six months ended June 30, 2020 and 2019 represented 40% and 38% of total revenues for the six months ended June 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 June 30, |  |  |  | Six Months Ended June 30, |  |
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
U.S. and Puerto Rico | $ | 1,009 |  |  | $ | 1,282 |  |  | $ | 2,221 |  |  | $ | 2,482 |
China | 79 |  |  | 101 |  |  | 137 |  |  | 190 |
Canada | 67 |  |  | 88 |  |  | 157 |  |  | 167 |
Egypt | 58 |  |  | 49 |  |  | 116 |  |  | 102 |
Japan | 48 |  |  | 59 |  |  | 102 |  |  | 114 |
Mexico | 48 |  |  | 60 |  |  | 89 |  |  | 106 |
France | 42 |  |  | 58 |  |  | 89 |  |  | 111 |
Poland | 37 |  |  | 53 |  |  | 111 |  |  | 115 |
Germany | 32 |  |  | 41 |  |  | 76 |  |  | 86 |
Russia | 24 |  |  | 41 |  |  | 57 |  |  | 77 |
South Korea | 16 |  |  | 18 |  |  | 33 |  |  | 35 |
Other | 204 |  |  | 302 |  |  | 488 |  |  | 583 |
| $ | 1,664 |  |  | $ | 2,152 |  |  | $ | 3,676 |  |  | $ | 4,168 |
Major Customers Customers that accounted for 10% or more of total revenues were as follows:
| Six Months Ended June 30, |  |
| 2020 |  | 2019
AmerisourceBergen Corporation | 18% |  | 16%
McKesson Corporation (including McKesson Specialty) | 17% |  | 17%
Cardinal Health, Inc. | 13% |  | 14%

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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