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SEGMENT INFORMATION | 6 Months Ended
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Jun. 30, 2021
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable Segments In connection with the planned separation of its eye health 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 consistent with the organizational structure of the separate entities as proposed by the B+L Separation. As a result, during the first quarter of 2021, 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 2021, the Company operates in the following reportable segments: (i) Bausch + Lomb, (ii) Salix, (iii) International Rx, (iv) Ortho Dermatologics and (v) Diversified Products. In addition, as part of this realignment of segment structure, certain products historically included in certain segments are now included in their new respective segments based on the organizational structure of the two separate entities as proposed by the B+L Separation. 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 Ophthalmology Rx products. •The Salix segment consists of sales in the U.S. of GI products. •The International Rx segment consists of sales, with the exception of sales of Bausch + Lomb products and Solta medical aesthetic devices, outside the U.S. and Puerto Rico of branded pharmaceutical products, branded generic pharmaceutical products and OTC 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, Acquired in-process research and development costs, Restructuring, integration and separation 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 June 30, |  | Six Months Ended June 30,
(in millions) | 2021 |  | 2020 |  | 2021 |  | 2020
Revenues: |  |  |  |  |  |  |
Bausch + Lomb | $ | 934 |  |  | $ | 677 |  |  | $ | 1,815 |  |  | $ | 1,552 |
Salix | 516 |  |  | 404 |  |  | 988 |  |  | 881 |
International Rx | 313 |  |  | 249 |  |  | 619 |  |  | 540 |
Ortho Dermatologics | 137 |  |  | 117 |  |  | 278 |  |  | 248 |
Diversified Products | 200 |  |  | 217 |  |  | 427 |  |  | 455 |
| $ | 2,100 |  |  | $ | 1,664 |  |  | $ | 4,127 |  |  | $ | 3,676 |
Segment profits: |  |  |  |  |  |  |
Bausch + Lomb | $ | 213 |  |  | $ | 124 |  |  | $ | 452 |  |  | $ | 387 |
Salix | 370 |  |  | 289 |  |  | 697 |  |  | 608 |
International Rx | 103 |  |  | 75 |  |  | 212 |  |  | 173 |
Ortho Dermatologics | 61 |  |  | 38 |  |  | 131 |  |  | 85 |
Diversified Products | 140 |  |  | 154 |  |  | 311 |  |  | 321 |
| 887 |  |  | 680 |  |  | 1,803 |  |  | 1,574 |
Corporate | (199) |  |  | (145) |  |  | (380) |  |  | (301) |
Amortization of intangible assets | (360) |  |  | (436) |  |  | (717) |  |  | (872) |
Goodwill impairments | — |  |  | — |  |  | (469) |  |  | — |
Asset impairments | (47) |  |  | (1) |  |  | (195) |  |  | (15) |
Restructuring, integration and separation costs | (9) |  |  | (7) |  |  | (21) |  |  | (11) |
Other expense, net | (542) |  |  | (118) |  |  | (512) |  |  | (154) |
Operating (loss) income | (270) |  |  | (27) |  |  | (491) |  |  | 221 |
Interest income | 2 |  |  | 2 |  |  | 4 |  |  | 9 |
Interest expense | (364) |  |  | (385) |  |  | (732) |  |  | (781) |
Loss on extinguishment of debt | (45) |  |  | (27) |  |  | (50) |  |  | (51) |
Foreign exchange and other | 7 |  |  | — |  |  | 8 |  |  | (13) |
Loss before benefit from income taxes | $ | (670) |  |  | $ | (437) |  |  | $ | (1,261) |  |  | $ | (615) |
Revenues by Segment and Product Category Revenues by segment and product category were as follows:
(in millions) | Bausch + Lomb |  | Salix |  | International Rx |  | Ortho Dermatologics |  | Diversified Products |  | Total
| Three Months Ended June 30, 2021
Pharmaceuticals | $ | 134 |  |  | $ | 514 |  |  | $ | 67 |  |  | $ | 59 |  |  | $ | 164 |  |  | $ | 938 |
Devices | 397 |  |  | — |  |  | — |  |  | 73 |  |  | — |  |  | 470 |
OTC | 329 |  |  | — |  |  | 32 |  |  | — |  |  | 2 |  |  | 363 |
Branded and Other Generics | 68 |  |  | — |  |  | 206 |  |  | — |  |  | 31 |  |  | 305 |
Other revenues | 6 |  |  | 2 |  |  | 8 |  |  | 5 |  |  | 3 |  |  | 24 |
| $ | 934 |  |  | $ | 516 |  |  | $ | 313 |  |  | $ | 137 |  |  | $ | 200 |  |  | $ | 2,100 |
| Three Months Ended June 30, 2020
Pharmaceuticals | $ | 96 |  |  | $ | 403 |  |  | $ | 55 |  |  | $ | 70 |  |  | $ | 161 |  |  | $ | 785 |
Devices | 220 |  |  | — |  |  | — |  |  | 42 |  |  | — |  |  | 262 |
OTC | 295 |  |  | — |  |  | 20 |  |  | — |  |  | 2 |  |  | 317 |
Branded and Other Generics | 57 |  |  | — |  |  | 161 |  |  | — |  |  | 55 |  |  | 273 |
Other revenues | 9 |  |  | 1 |  |  | 13 |  |  | 5 |  |  | (1) |  |  | 27 |
| $ | 677 |  |  | $ | 404 |  |  | $ | 249 |  |  | $ | 117 |  |  | $ | 217 |  |  | $ | 1,664 |
| Six Months Ended June 30, 2021
Pharmaceuticals | $ | 259 |  |  | $ | 984 |  |  | $ | 126 |  |  | $ | 124 |  |  | $ | 341 |  |  | $ | 1,834 |
Devices | 779 |  |  | — |  |  | — |  |  | 145 |  |  | — |  |  | 924 |
OTC | 645 |  |  | — |  |  | 57 |  |  | — |  |  | 4 |  |  | 706 |
Branded and Other Generics | 119 |  |  | — |  |  | 418 |  |  | — |  |  | 78 |  |  | 615 |
Other revenues | 13 |  |  | 4 |  |  | 18 |  |  | 9 |  |  | 4 |  |  | 48 |
| $ | 1,815 |  |  | $ | 988 |  |  | $ | 619 |  |  | $ | 278 |  |  | $ | 427 |  |  | $ | 4,127 |
| Six Months Ended June 30, 2020
Pharmaceuticals | $ | 234 |  |  | $ | 880 |  |  | $ | 121 |  |  | $ | 146 |  |  | $ | 343 |  |  | $ | 1,724 |
Devices | 561 |  |  | — |  |  | — |  |  | 93 |  |  | — |  |  | 654 |
OTC | 616 |  |  | — |  |  | 46 |  |  | — |  |  | 4 |  |  | 666 |
Branded and Other Generics | 125 |  |  | — |  |  | 349 |  |  | — |  |  | 105 |  |  | 579 |
Other revenues | 16 |  |  | 1 |  |  | 24 |  |  | 9 |  |  | 3 |  |  | 53 |
| $ | 1,552 |  |  | $ | 881 |  |  | $ | 540 |  |  | $ | 248 |  |  | $ | 455 |  |  | $ | 3,676 |
The top ten products for the six months ended June 30, 2021 and 2020 represented 40% and 40% of total revenues for the six months ended June 30, 2021 and 2020, 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) | 2021 |  | 2020 |  | 2021 |  | 2020
U.S. and Puerto Rico | $ | 1,216 |  |  | $ | 1,009 |  |  | $ | 2,378 |  |  | $ | 2,221 |
China | 119 |  |  | 79 |  |  | 229 |  |  | 137 |
Canada | 87 |  |  | 67 |  |  | 163 |  |  | 157 |
Egypt | 68 |  |  | 58 |  |  | 134 |  |  | 116 |
Poland | 71 |  |  | 37 |  |  | 133 |  |  | 111 |
Mexico | 56 |  |  | 48 |  |  | 125 |  |  | 89 |
Japan | 55 |  |  | 48 |  |  | 115 |  |  | 102 |
France | 56 |  |  | 42 |  |  | 110 |  |  | 89 |
Germany | 28 |  |  | 32 |  |  | 70 |  |  | 76 |
Russia | 33 |  |  | 24 |  |  | 64 |  |  | 57 |
United Kingdom | 27 |  |  | 14 |  |  | 52 |  |  | 37 |
Spain | 23 |  |  | 12 |  |  | 42 |  |  | 32 |
South Korea | 20 |  |  | 16 |  |  | 40 |  |  | 33 |
Other | 241 |  |  | 178 |  |  | 472 |  |  | 419 |
| $ | 2,100 |  |  | $ | 1,664 |  |  | $ | 4,127 |  |  | $ | 3,676 |
Major Customers Customers that accounted for 10% or more of total revenues were as follows:
| Six Months Ended June 30,
| 2021 |  | 2020
AmerisourceBergen Corporation | 17% |  | 18%
McKesson Corporation (including McKesson Specialty) | 16% |  | 17%
Cardinal Health, Inc. | 12% |  | 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://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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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=123359005&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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