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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION Reportable Segments In connection with the Company’s previously announced plan to separate its Solta business into an independent publicly traded entity from the remainder of Bausch Health Companies Inc., the Company had begun managing its operations in a manner which was consistent with the organizational structure of the two separate entities as proposed by the Solta IPO. As a result, during the first quarter of 2022, the Company’s 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 2022, the Company operates in the following reportable segments: (i) Salix, (ii) International (formerly International Rx), (iii) Solta Medical, (iv) Diversified Products and (v) Bausch + Lomb. The new segment structure does not impact the Company’s reporting units but realigns the two reporting units of the former Ortho Dermatologics segment whereby its medical dermatology reporting unit (Ortho Dermatologics) is now part of the current Diversified Products segment and the Solta reporting unit is now the sole reporting unit of the new Solta Medical segment. Prior period presentation of segment revenues and segment profits has been recast to conform to the current segment reporting structure. On June 16, 2022, the Company announced it was suspending plans for the Solta IPO; however, the Company is continuing to manage and operate the business in its current reportable segment structure. See Note 2, “SIGNIFICANT ACCOUNTING POLICIES” for additional information. 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 for each of the three and nine month periods ended September 30, 2022. •The International segment consists of sales, with the exception of sales of Bausch + Lomb products and Solta 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 aesthetic medical 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, (iii) Ortho Dermatologics (dermatological) 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 (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 September 30, |  | Nine Months Ended September 30,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Revenues: |  |  |  |  |  |  |
Salix | $ | 544 |  |  | $ | 527 |  |  | $ | 1,509 |  |  | $ | 1,515 |
International | 250 |  |  | 271 |  |  | 727 |  |  | 890 |
Solta Medical | 72 |  |  | 74 |  |  | 201 |  |  | 219 |
Diversified Products | 238 |  |  | 290 |  |  | 722 |  |  | 850 |
Bausch + Lomb | 942 |  |  | 949 |  |  | 2,772 |  |  | 2,764 |
| $ | 2,046 |  |  | $ | 2,111 |  |  | $ | 5,931 |  |  | $ | 6,238 |
Segment profits: |  |  |  |  |  |  |
Salix | $ | 391 |  |  | $ | 377 |  |  | $ | 1,067 |  |  | $ | 1,074 |
International | 85 |  |  | 92 |  |  | 242 |  |  | 304 |
Solta Medical | 33 |  |  | 40 |  |  | 88 |  |  | 120 |
Diversified Products | 151 |  |  | 185 |  |  | 450 |  |  | 547 |
Bausch + Lomb | 226 |  |  | 247 |  |  | 640 |  |  | 699 |
| 886 |  |  | 941 |  |  | 2,487 |  |  | 2,744 |
Corporate | (218) |  |  | (186) |  |  | (614) |  |  | (566) |
Amortization of intangible assets | (290) |  |  | (338) |  |  | (902) |  |  | (1,055) |
Goodwill impairments | (119) |  |  | — |  |  | (202) |  |  | (469) |
Asset impairments, including loss on assets held for sale | (1) |  |  | (18) |  |  | (15) |  |  | (213) |
Restructuring, integration, separation and IPO costs | (10) |  |  | (8) |  |  | (58) |  |  | (29) |
Other income (expense), net | (4) |  |  | 183 |  |  | (6) |  |  | (329) |
Operating income | 244 |  |  | 574 |  |  | 690 |  |  | 83 |
Interest income | 3 |  |  | 2 |  |  | 8 |  |  | 6 |
Interest expense | (385) |  |  | (351) |  |  | (1,157) |  |  | (1,083) |
Gain (loss) on extinguishment of debt | 570 |  |  | (12) |  |  | 683 |  |  | (62) |
Foreign exchange and other | 7 |  |  | 3 |  |  | 4 |  |  | 11 |
Income (loss) before income taxes | $ | 439 |  |  | $ | 216 |  |  | $ | 228 |  |  | $ | (1,045) |
Revenues by Segment and Product Category Revenues by segment and product category were as follows:
(in millions) | Salix |  | International |  | Solta Medical |  | Diversified Products |  | Bausch + Lomb |  | Total
| Three Months Ended September 30, 2022
Pharmaceuticals | $ | 543 |  |  | $ | 72 |  |  | $ | — |  |  | $ | 206 |  |  | $ | 121 |  |  | $ | 942 |
Devices | — |  |  | — |  |  | 72 |  |  | — |  |  | 390 |  |  | 462 |
OTC | — |  |  | 38 |  |  | — |  |  | 2 |  |  | 362 |  |  | 402 |
Branded and Other Generics | — |  |  | 131 |  |  | — |  |  | 24 |  |  | 65 |  |  | 220 |
Other revenues | 1 |  |  | 9 |  |  | — |  |  | 6 |  |  | 4 |  |  | 20 |
| $ | 544 |  |  | $ | 250 |  |  | $ | 72 |  |  | $ | 238 |  |  | $ | 942 |  |  | $ | 2,046 |
| Three Months Ended September 30, 2021
Pharmaceuticals | $ | 525 |  |  | $ | 61 |  |  | $ | — |  |  | $ | 234 |  |  | $ | 121 |  |  | $ | 941 |
Devices | — |  |  | — |  |  | 74 |  |  | — |  |  | 395 |  |  | 469 |
OTC | — |  |  | 41 |  |  | — |  |  | 3 |  |  | 365 |  |  | 409 |
Branded and Other Generics | — |  |  | 161 |  |  | — |  |  | 47 |  |  | 61 |  |  | 269 |
Other revenues | 2 |  |  | 8 |  |  | — |  |  | 6 |  |  | 7 |  |  | 23 |
| $ | 527 |  |  | $ | 271 |  |  | $ | 74 |  |  | $ | 290 |  |  | $ | 949 |  |  | $ | 2,111 |
| Nine Months Ended September 30, 2022
Pharmaceuticals | $ | 1,508 |  |  | $ | 206 |  |  | $ | — |  |  | $ | 608 |  |  | $ | 348 |  |  | $ | 2,670 |
Devices | — |  |  | — |  |  | 201 |  |  | — |  |  | 1,168 |  |  | 1,369 |
OTC | — |  |  | 111 |  |  | — |  |  | 5 |  |  | 1,061 |  |  | 1,177 |
Branded and Other Generics | — |  |  | 386 |  |  | — |  |  | 91 |  |  | 178 |  |  | 655 |
Other revenues | 1 |  |  | 24 |  |  |  |  | 18 |  |  | 17 |  |  | 60 |
| $ | 1,509 |  |  | $ | 727 |  |  | $ | 201 |  |  | $ | 722 |  |  | $ | 2,772 |  |  | $ | 5,931 |
| Nine Months Ended September 30, 2021
Pharmaceuticals | $ | 1,509 |  |  | $ | 187 |  |  | $ | — |  |  | $ | 699 |  |  | $ | 380 |  |  | $ | 2,775 |
Devices | — |  |  | — |  |  | 219 |  |  | — |  |  | 1,174 |  |  | 1,393 |
OTC | — |  |  | 98 |  |  | — |  |  | 7 |  |  | 1,010 |  |  | 1,115 |
Branded and Other Generics | — |  |  | 579 |  |  | — |  |  | 125 |  |  | 180 |  |  | 884 |
Other revenues | 6 |  |  | 26 |  |  | — |  |  | 19 |  |  | 20 |  |  | 71 |
| $ | 1,515 |  |  | $ | 890 |  |  | $ | 219 |  |  | $ | 850 |  |  | $ | 2,764 |  |  | $ | 6,238 |
The top ten products for the nine months ended September 30, 2022 and 2021 represented 48% and 45% of total revenues for the nine months ended September 30, 2022 and 2021, respectively. Geographic Information Revenues are attributed to a geographic region based on the location of the customer and were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2022 |  | 2021 |  | 2022 |  | 2021
U.S. and Puerto Rico | $ | 1,219 |  |  | $ | 1,251 |  |  | $ | 3,524 |  |  | $ | 3,629 |
China | 116 |  |  | 121 |  |  | 293 |  |  | 350 |
Canada | 92 |  |  | 84 |  |  | 258 |  |  | 247 |
Poland | 65 |  |  | 70 |  |  | 204 |  |  | 203 |
Mexico | 70 |  |  | 66 |  |  | 200 |  |  | 191 |
France | 44 |  |  | 50 |  |  | 159 |  |  | 160 |
Japan | 47 |  |  | 57 |  |  | 148 |  |  | 172 |
Germany | 55 |  |  | 64 |  |  | 112 |  |  | 116 |
United Kingdom | 22 |  |  | 19 |  |  | 85 |  |  | 83 |
Russia | 42 |  |  | 36 |  |  | 122 |  |  | 106 |
Spain | 17 |  |  | 20 |  |  | 61 |  |  | 62 |
Italy | 17 |  |  | 20 |  |  | 60 |  |  | 58 |
South Korea | 19 |  |  | 18 |  |  | 58 |  |  | 58 |
Other | 221 |  |  | 235 |  |  | 647 |  |  | 803 |
| $ | 2,046 |  |  | $ | 2,111 |  |  | $ | 5,931 |  |  | $ | 6,238 |
Certain reclassifications have been made and are reflected in the table above. Major Customers Customers that accounted for 10% or more of total revenues were as follows:
| Nine Months Ended September 30,
| 2022 |  | 2021
AmerisourceBergen Corporation | 16% |  | 18%
McKesson Corporation (including McKesson Specialty) | 13% |  | 16%
Cardinal Health, Inc. | 11% |  | 12%

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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