Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-14956 | ||
Entity Registrant Name | Bausch Health Companies Inc. | ||
Entity Incorporation, State or Country Code | A1 | ||
Entity Address, Country | CA | ||
Entity Tax Identification Number | 98-0448205 | ||
Entity Address, Address Line One | 2150 St. Elzéar Blvd. West | ||
Entity Address, City or Town | Laval | ||
Entity Address, State or Province | QC | ||
Entity Address, Postal Zip Code | H7L 4A8 | ||
City Area Code | 514 | ||
Local Phone Number | 744-6792 | ||
Title of 12(b) Security | Common Shares, No Par Value | ||
Trading Symbol | BHC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Smaller Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,507,122,217 | ||
Entity Common Stock, Shares Outstanding (in shares) | 362,037,191 | ||
Documents Incorporated by Reference | Part III incorporates certain information by reference from the registrant’s proxy statement for the 2023 Annual Meeting of Shareholders. Such proxy statement will be filed no later than 120 days after the close of the registrant’s fiscal year ended December 31, 2022. | ||
Entity Central Index Key | 0000885590 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Florham Park, New Jersey |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 564 | $ 582 |
Restricted cash and other settlement deposits | 27 | 1,537 |
Trade receivables, net | 1,790 | 1,775 |
Inventories, net | 1,090 | 993 |
Prepaid expenses and other current assets | 776 | 720 |
Total current assets | 4,247 | 5,607 |
Property, plant and equipment, net | 1,600 | 1,598 |
Intangible assets, net | 5,800 | 6,948 |
Goodwill | 11,547 | 12,457 |
Deferred tax assets, net | 2,166 | 2,252 |
Other non-current assets | 326 | 340 |
Total assets | 25,686 | 29,202 |
Current liabilities: | ||
Accounts payable | 521 | 407 |
Accrued and other current liabilities | 2,988 | 4,791 |
Current portion of long-term debt | 432 | 0 |
Total current liabilities | 3,941 | 5,198 |
Acquisition-related contingent consideration | 208 | 202 |
Non-current portion of long-term debt | 20,334 | 22,654 |
Deferred tax liabilities, net | 202 | 529 |
Other non-current liabilities | 741 | 653 |
Total liabilities | 25,426 | 29,236 |
Commitments and contingencies (Notes 20 and 21) | ||
Equity (Deficit) | ||
Common shares, no par value, unlimited shares authorized, 361,898,846 and 359,405,748 issued and outstanding at December 31, 2022 and 2021, respectively | 10,391 | 10,317 |
Additional paid-in capital | 159 | 462 |
Accumulated deficit | (9,186) | (8,961) |
Accumulated other comprehensive loss | (2,056) | (1,924) |
Total Bausch Health Companies Inc. shareholders’ deficit | (692) | (106) |
Noncontrolling interest | 952 | 72 |
Total equity (deficit) | 260 | (34) |
Total liabilities and equity (deficit) | $ 25,686 | $ 29,202 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 361,898,846 | 359,405,748 |
Common stock, shares outstanding (in shares) | 361,898,846 | 359,405,748 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues | $ 8,124 | $ 8,434 | $ 8,027 |
Expenses | |||
Selling, general and administrative | 2,625 | 2,624 | 2,367 |
Research and development | 529 | 465 | 452 |
Amortization of intangible assets | 1,215 | 1,375 | 1,645 |
Goodwill impairments | 824 | 469 | 0 |
Asset impairments, including loss on assets held for sale | 15 | 234 | 114 |
Restructuring, integration, separation and IPO costs | 63 | 50 | 22 |
Other expense, net | 35 | 373 | 502 |
Total Expenses | 7,670 | 7,984 | 7,351 |
Operating income | 454 | 450 | 676 |
Interest income | 14 | 7 | 13 |
Interest expense | (1,464) | (1,426) | (1,534) |
Gain (loss) on extinguishment of debt | 875 | (62) | (59) |
Foreign exchange and other | (8) | 7 | (30) |
Loss before income taxes | (129) | (1,024) | (934) |
(Provision for) benefit from income taxes | (83) | 87 | 375 |
Net loss | (212) | (937) | (559) |
Net income attributable to noncontrolling interest | (13) | (11) | (1) |
Net loss attributable to Bausch Health Companies Inc. | $ (225) | $ (948) | $ (560) |
Basic loss per share attributable to Bausch Health Companies Inc. (in dollars per share) | $ (0.62) | $ (2.64) | $ (1.58) |
Diluted loss per share attributable to Bausch Health Companies Inc. (in dollars per share) | $ (0.62) | $ (2.64) | $ (1.58) |
Basic weighted-average common shares (in shares) | 362,000 | 358,900 | 355,000 |
Diluted weighted-average common shares (in shares) | 362,000 | 358,900 | 355,000 |
Product sales | |||
Revenues | |||
Revenues | $ 8,046 | $ 8,342 | $ 7,924 |
Expenses | |||
Cost of goods sold (excluding amortization and impairments of intangible assets) and Cost of other revenues | 2,336 | 2,361 | 2,202 |
Other revenues | |||
Revenues | |||
Revenues | 78 | 92 | 103 |
Expenses | |||
Cost of goods sold (excluding amortization and impairments of intangible assets) and Cost of other revenues | $ 28 | $ 33 | $ 47 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (212) | $ (937) | $ (559) |
Pension and postretirement benefit plan adjustments: | |||
Net actuarial gain (loss) arising during the year | (4) | 24 | (15) |
Amortization of prior service credit | (3) | (4) | (4) |
Amortization or settlement recognition of net loss | 10 | 10 | 1 |
Income tax (expense) benefit | (3) | 1 | 2 |
Foreign currency impact | 1 | (3) | 0 |
Net pension and postretirement benefit plan adjustments | 1 | 28 | (16) |
Foreign currency translation adjustment | (257) | (158) | (29) |
Other comprehensive loss | (256) | (130) | (45) |
Comprehensive loss | (468) | (1,067) | (604) |
Comprehensive income attributable to noncontrolling interest | (26) | (12) | (3) |
Comprehensive loss attributable to Bausch Health Companies Inc. | $ (494) | $ (1,079) | $ (607) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Bausch Health Companies Inc. Shareholders’ Equity (Deficit) | Bausch Health Companies Inc. Shareholders’ Equity (Deficit) Cumulative Effect, Period of Adoption, Adjustment | Common Shares | Additional Paid-In Capital | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Beginning Balance (in shares) at Dec. 31, 2019 | 352,600,000 | |||||||||
Beginning Balance at Dec. 31, 2019 | $ 1,136 | $ (1) | $ 1,063 | $ (1) | $ 10,172 | $ 429 | $ (7,452) | $ (1) | $ (2,086) | $ 73 |
Increase (Decrease) in Shareholders' Equity | ||||||||||
Common shares issued under share-based compensation plans (in shares) | 2,800,000 | |||||||||
Common shares issued under share-based compensation plans | 5 | 5 | $ 55 | (50) | ||||||
Share-based compensation | 105 | 105 | 105 | |||||||
Employee withholding taxes related to share-based awards | (30) | (30) | (30) | |||||||
Noncontrolling interest distributions | (6) | (6) | ||||||||
Net (loss) income | (559) | (560) | (560) | 1 | ||||||
Other comprehensive income (loss) | (45) | (47) | (47) | 2 | ||||||
Ending Balance (in shares) at Dec. 31, 2020 | 355,400,000 | |||||||||
Ending Balance at Dec. 31, 2020 | 605 | 535 | $ 10,227 | 454 | (8,013) | (2,133) | 70 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Common shares issued under share-based compensation plans (in shares) | 4,000,000 | |||||||||
Common shares issued under share-based compensation plans | 22 | 22 | $ 90 | (68) | ||||||
Share-based compensation | 128 | 128 | 128 | |||||||
Employee withholding taxes related to share-based awards | (52) | (52) | (52) | |||||||
Release of foreign currency translation losses upon disposal of assets held for sale | 340 | 340 | 340 | |||||||
Noncontrolling interest distributions | (10) | (10) | ||||||||
Net (loss) income | (937) | (948) | (948) | 11 | ||||||
Other comprehensive income (loss) | $ (130) | (131) | (131) | 1 | ||||||
Ending Balance (in shares) at Dec. 31, 2021 | 359,405,748 | 359,400,000 | ||||||||
Ending Balance at Dec. 31, 2021 | $ (34) | (106) | $ 10,317 | 462 | (8,961) | (1,924) | 72 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||||
Proceeds from B+L initial public offering, net of costs (Note 2) | 675 | (190) | (327) | 137 | 865 | |||||
Common shares issued under share-based compensation plans (in shares) | 2,500,000 | |||||||||
Common shares issued under share-based compensation plans | 3 | 3 | $ 74 | (71) | ||||||
Share-based compensation | 126 | 126 | 126 | |||||||
Employee withholding taxes related to share-based awards | (31) | (31) | (31) | |||||||
Noncontrolling interest distributions | (11) | (11) | ||||||||
Net (loss) income | (212) | (225) | (225) | 13 | ||||||
Other comprehensive income (loss) | $ (256) | (269) | (269) | 13 | ||||||
Ending Balance (in shares) at Dec. 31, 2022 | 361,898,846 | 361,900,000 | ||||||||
Ending Balance at Dec. 31, 2022 | $ 260 | $ (692) | $ 10,391 | $ 159 | $ (9,186) | $ (2,056) | $ 952 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Cash Flows From Operating Activities | |||
Net loss | $ (212) | $ (937) | $ (559) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization of intangible assets | 1,394 | 1,552 | 1,825 |
Amortization and write-off of debt discounts and debt issuance costs | 99 | 55 | 61 |
Asset impairments, including loss on assets held for sale | 15 | 234 | 114 |
Goodwill impairment | 824 | 469 | 0 |
Acquisition-related contingent consideration | 29 | 11 | 48 |
Allowances for losses on trade receivables and inventories | 51 | 60 | 60 |
Deferred income taxes | (176) | (225) | (475) |
Net gain on sale of assets | (5) | (2) | (1) |
Additions to accrued legal settlements | 9 | 569 | 442 |
Payments of accrued legal settlements | (1,572) | (351) | (168) |
Share-based compensation | 126 | 128 | 105 |
Gain excluded from hedge effectiveness | (6) | (20) | (23) |
(Gain) loss on extinguishment of debt | (875) | 62 | 59 |
Third party fees paid in connection with the Exchange Offer | (34) | 0 | 0 |
Payments of contingent consideration adjustments, including accretion | (2) | (16) | (1) |
Foreign exchange and other | 3 | (35) | (10) |
Changes in operating assets and liabilities: | |||
Trade receivables | (57) | (229) | 170 |
Inventories | (198) | (16) | (77) |
Prepaid expenses and other current assets | (66) | (4) | 12 |
Accounts payable, accrued and other liabilities | (75) | 121 | (471) |
Net cash (used in) provided by operating activities | (728) | 1,426 | 1,111 |
Cash Flows From Investing Activities | |||
Acquisition of businesses, net of cash acquired | (45) | 0 | 0 |
Acquisition of intangible assets and other assets | (50) | (14) | (7) |
Purchases of property, plant and equipment | (218) | (269) | (302) |
Purchases of marketable securities | (17) | (19) | (4) |
Proceeds from sale of marketable securities | 22 | 15 | 8 |
Proceeds from sale of assets and businesses, net of costs to sell | 5 | 669 | 21 |
Interest settlements from cross-currency swaps | 0 | 27 | 23 |
Net cash (used in) provided by investing activities | (303) | 409 | (261) |
Cash Flows From Financing Activities | |||
Issuance of long-term debt, net of discounts | 6,836 | 2,100 | 3,455 |
Repayments of long-term debt | (7,846) | (3,440) | (5,642) |
Proceeds from B+L initial public offering, net of costs | 675 | 0 | 0 |
Payment of employee withholding taxes related to share-based awards | (31) | (52) | (30) |
Payments of acquisition-related contingent consideration | (26) | (83) | (35) |
Payments of financing costs | (71) | (48) | (39) |
Other | (11) | 10 | (3) |
Net cash used in financing activities | (474) | (1,513) | (2,294) |
Effect of exchange rate changes on cash and cash equivalents | (23) | (19) | 16 |
Net (decrease) increase in cash, cash equivalents, restricted cash and other settlement deposits | (1,528) | 303 | (1,428) |
Cash, cash equivalents, restricted cash and other settlement deposits, beginning of period | 2,119 | 1,816 | 3,244 |
Cash, cash equivalents, restricted cash and other settlement deposits, end of period | 591 | 2,119 | 1,816 |
Cash and cash equivalents, end of year | 564 | 582 | 605 |
Restricted cash and other settlement deposits | 27 | 1,537 | 1,211 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Total | $ 591 | $ 2,119 | $ 1,816 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESSBausch Health Companies Inc. (the “Company” or “Bausch Health”) is a multinational, specialty pharmaceutical and medical device company that develops, manufactures and markets, primarily in the therapeutic areas of gastroenterology (“GI”) and dermatology, a broad range of branded, generic and branded generic pharmaceuticals, over-the-counter (“OTC”) products and medical aesthetic devices and, through its approximately 89% ownership of Bausch + Lomb Corporation (“Bausch + Lomb”), branded, and branded generic pharmaceuticals, OTC products and medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment) in the therapeutic area of eye health. The Company’s products are marketed directly or indirectly in approximately 100 countries. Effective August 9, 2013, the Company continued from the federal jurisdiction of Canada to the Province of British Columbia, meaning that the Company became a company registered under the laws of the Province of British Columbia as if it had been incorporated under the laws of the Province of British Columbia. As a result of this continuance, the legal domicile of the Company became the Province of British Columbia, the Canada Business Corporations Act ceased to apply to the Company and the Company became subject to the British Columbia Business Corporations Act. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Use of Estimates The Consolidated Financial Statements have been prepared by the Company in United States (“U.S.”) dollars and in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), applied on a consistent basis. The Consolidated Financial Statements include the accounts of the Company and those of its subsidiaries and any variable interest entities for which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated. Separation of the Bausch + Lomb Eye Health Business On August 6, 2020, the Company announced its intentions to separate its eye health business into an independent publicly traded entity from the remainder of Bausch Health (the “B+L Separation”). In January 2022, the Company completed the internal organizational design and structure of the new eye health entity, Bausch + Lomb, as previously announced. The registration statement related to the initial public offering (“IPO”) of Bausch + Lomb (the “B+L IPO”) was declared effective on May 5, 2022, and Bausch + Lomb’s common stock began trading on the New York Stock Exchange and the Toronto Stock Exchange, in each case under the ticker symbol “BLCO” on May 6, 2022. Prior to the effectiveness of the registration statement, Bausch + Lomb was an indirect wholly-owned subsidiary of the Company. On May 10, 2022, a wholly owned subsidiary of the Company (the “Selling Shareholder”) sold 35,000,000 common shares of Bausch + Lomb, at an offering price of $18.00 per share, pursuant to the B+L IPO. In addition, the Selling Shareholder granted the underwriters an option for a period of 30 days from the date of the B+L IPO to purchase up to an additional 5,250,000 common shares to cover over-allotments at the IPO price less underwriting commissions. On May 31, 2022, the underwriters partially exercised the over-allotment option granted by the Selling Shareholder and, on June 1, 2022, the Selling Shareholder sold an additional 4,550,357 common shares of Bausch + Lomb at an offering price of $18.00 per share (less applicable underwriting discount). The remainder of the over-allotment option granted to the underwriters expired. Upon the closing of the B+L IPO and after giving effect to the partial exercise of the over-allotment option, Bausch Health indirectly holds 310,449,643 Bausch + Lomb common shares, which represent approximately 89% of Bausch + Lomb’s outstanding common shares. The aggregate net proceeds from the B+L IPO and the partial exercise of the over-allotment option by the underwriters, after deducting underwriting commissions were approximately $675 million. The Company continues to believe that completing the B+L Separation makes strategic sense. The completion of the B+L Separation is subject to the achievement of targeted debt leverage ratios and the receipt of applicable shareholder and other necessary approvals. The Company continues to evaluate all factors and considerations related to completing the B+L Separation, including the effect of the Norwich Legal Decision (see “ Xifaxan ® Paragraph IV Proceedings ” of Note 20, “LEGAL PROCEEDINGS”) on the B+L Separation. The B+L IPO established two separate companies that include: (i) a diversified pharmaceutical company which includes the Company’s Salix, International, Diversified (dentistry, neurology, medical dermatology and generic pharmaceutical) products, and Solta aesthetic medical device businesses and (ii) a fully integrated eye health company which consists of the Bausch + Lomb Vision Care, Surgical and Ophthalmic Pharmaceuticals businesses. Other than the effects of the B+L IPO described above, these audited Consolidated Financial Statements do not include any adjustments to give effect to the B+L Separation. Suspended Initial Public Offering of Solta Medical Business On August 3, 2021, the Company announced its intentions to conduct an IPO of its aesthetic medical device business, Solta Medical (formerly Global Solta) (the “Solta IPO”). In January 2022, the Company completed the internal organizational design and structure of the new Solta Medical entity, Solta Medical Corporation (“Solta” or “Solta Medical”). On June 16, 2022, as a result of challenging market conditions and other factors, the Company announced it was suspending its plans for the Solta IPO. Solta will remain part of Bausch Health, as the Company plans to revisit alternate paths for its Solta medical aesthetic devices business. Impacts of COVID-19 Pandemic The unprecedented nature of the COVID-19 pandemic has had, and continues to have, an adverse impact on the global economy. The COVID-19 pandemic and the reactions of governments, private sector participants and the public in an effort to contain the spread of the COVID-19 virus and/or address its impacts have had significant direct and indirect effects on businesses and commerce. This includes, but is not limited to, disruption to supply chains, employee base and transactional activity, facilities closures and production suspensions. The extent to which these events may continue to impact the Company’s business, financial condition, cash flows and results of operations, in particular, will depend on future developments which are highly uncertain and many of which are outside the Company’s control. Such developments include the availability and effectiveness of vaccines for the COVID-19 virus, the ultimate geographic spread and duration of the pandemic, COVID-19 vaccine immunization rates, the extent and duration of a resurgence of the COVID-19 virus and variant strains thereof, such as the delta and omicron variants, new information concerning the severity of the COVID-19 virus, the effectiveness and intensity of measures to contain the COVID-19 virus, and the economic impact of the pandemic and the reactions to it. Such developments, among others, depending on their nature, duration and intensity, could have a significant adverse effect on the Company’s business, financial condition, cash flows and results of operations. To date, the Company has been able to continue its operations with limited disruptions in supply and manufacturing. Although it is difficult to predict the broad macroeconomic effects that the COVID-19 pandemic will have on industries or individual companies, the Company has assessed the possible effects and outcomes of the pandemic on, among other things, its supply chain, customers and distributors, discounts and rebates, employee base, product sustainability, research and development efforts, product pipeline and consumer demand and currently believes that its estimates are reasonable. Use of Estimates In preparing the Company’s Consolidated Financial Statements, management is required to make estimates and assumptions. This includes estimates and assumptions regarding the nature, timing and extent of the impacts that the COVID-19 pandemic will have on its operations and cash flows. The estimates and assumptions used by the Company affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include: provisions for product returns, rebates, chargebacks, discounts and allowances and distribution fees paid to certain wholesalers; useful lives of amortizable intangible assets and property, plant and equipment; expected future cash flows used in evaluating intangible assets for impairment, assessing compliance with debt covenants and making going concern assessments; reporting unit fair values for testing goodwill for impairment and allocating goodwill to new reporting unit structure on a relative fair value basis; provisions for loss contingencies; provisions for income taxes, uncertain tax positions and realizability of deferred tax assets; fair value of cross-currency swaps; fair value of foreign currency exchange contracts; and the recognition of the fair value of assets and liabilities acquired in a business combination, including the fair value of contingent consideration. Under certain product manufacturing and supply agreements, management uses information from the Company’s commercialization counterparties to arrive at estimates for future returns, rebates and chargebacks. On an ongoing basis, management reviews its estimates to ensure that these estimates appropriately reflect changes in the Company’s business and new information as it becomes available. If historical experience and other factors used by management to make these estimates do not reasonably reflect future activity, the Company’s Consolidated Financial Statements could be materially impacted. Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. Acquisitions Acquired businesses are accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recorded at fair value, with limited exceptions. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Consolidated Financial Statements after the date of acquisition. Acquired in-process research and development (“IPR&D”) is recognized at fair value and initially characterized as an indefinite-lived intangible asset, irrespective of whether the acquired IPR&D has an alternative future use. If the acquired net assets do not constitute a business, the transaction is accounted for as an asset acquisition and no goodwill is recognized. In an asset acquisition, the amount allocated to acquired IPR&D with no alternative future use is charged to expense at the acquisition date and any future contingent consideration is not recorded until it becomes probable. Fair Value of Financial Instruments The estimated fair values of cash and cash equivalents, trade receivables, accounts payable and accrued liabilities approximate their carrying values due to their short maturity periods. The fair value of acquisition-related contingent consideration is based on estimated discounted future cash flows or Monte Carlo Simulation (when appropriate) analyses and assessment of the probability of occurrence of potential future events. Fair Value of Derivative Instruments The accounting for changes in the fair value of a derivative instrument depends on whether the instrument has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. For derivative instruments designated and qualifying as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of the foreign currency exposure of a net investment in a foreign operation. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the Consolidated Statements of Operations during the current period. Bausch + Lomb’s cross-currency swaps qualified for and have been designated as an accounting hedge of the foreign currency exposure of a net investment in a foreign operation and are remeasured at each reporting date to reflect changes in their fair values. The fair value was determined via a mark-to-market analysis, using observable (Level 2) inputs. These inputs included: (i) the foreign currency exchange spot rate between the euro and U.S. dollar, (ii) the interest rate yield curves in the euro and U.S. dollar and (iii) the credit risk rating for each applicable counterparty. The net change in fair value of cross-currency swaps is reported as a gain or loss in the Consolidated Statements of Comprehensive Income (Loss) as part of Foreign currency translation adjustment to the extent they are effective, and remain in Accumulated other comprehensive loss until either the sale or complete, or substantially complete, liquidation of the subsidiary. No portion of the cross-currency swaps was ineffective. Bausch + Lomb uses the spot method of assessing hedge effectiveness. Bausch + Lomb has elected to amortize amounts excluded from the assessment of effectiveness over the term of its cross-currency swaps as a reduction of Interest expense in the Consolidated Statements of Operations. The Company uses foreign currency exchange contracts to economically hedge the foreign exchange exposure on certain of the Company’s intercompany and third party balances. The Company’s foreign currency exchange contracts are remeasured at each reporting date to reflect changes in their fair values determined using forward rates, which are observable market inputs, multiplied by the notional amount. These contracts have not been designated as an accounting hedge, and therefore the net change in their fair value is reported as a gain or loss in the Consolidated Statements of Operations as part of Foreign exchange and other. Settlements of the Company’s foreign currency exchange contracts are reported as a gain or loss in the Consolidated Statements of Operations as part of Foreign exchange and other and reported as operating activities in the Consolidated Statements of Cash Flows. Cash and Cash Equivalents Cash and cash equivalents consist of cash in bank accounts and highly liquid investments with maturities of three months or less when purchased. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, trade receivables, cross-currency swaps and foreign currency exchange contracts. The Company invests its excess cash in high-quality, money market instruments and term deposits with varying maturities, but typically less than three months. Cash deposited at banks may exceed the amount of insurance provided on such deposits. Generally, these cash deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company seeks to mitigate such risks by spreading its risk across multiple counterparties and monitoring the risk profiles of these counterparties. The Company’s trade receivables primarily represent amounts due from wholesale distributors, retail pharmacies, government entities and group purchasing organizations. Outside of the U.S., concentrations of credit risk with respect to trade receivables, which are typically unsecured, are limited due to the number of customers using the Company’s products, as well as their dispersion across many different geographic regions. The Company performs periodic credit evaluations of customers and does not require collateral. The Company monitors economic conditions, including volatility associated with international economies, and related impacts on the relevant financial markets and its business, especially in light of sovereign credit issues. The credit and economic conditions within Argentina, Belarus, Brazil, Greece, Russia, Serbia, South Africa, Turkey, Ukraine and Venezuela have been weak in recent years. These conditions have increased, and may continue to increase, the average length of time that it takes to collect on the Company’s trade receivables outstanding in these countries. As of December 31, 2022, the Company’s three largest U.S. wholesaler customers accounted for approximately 46% of net trade receivables. In addition, as of December 31, 2022 and 2021, the Company’s net trade receivable balance from Argentina, Belarus, Brazil, Greece, Russia, Serbia, South Africa, Turkey, Ukraine and Venezuela amounted to $136 million and $78 million, respectively, the majority of which is current or less than 90 days past due. The portion of the net trade receivable from these countries that is past due more than 90 days amounted to $2 million, as of December 31, 2022, a portion of which is comprised of public hospitals. Based on an analysis of credit risk, including an analysis of bad debt experience and assessment of historical payment patterns for such customers, the Company has established a reserve covering more than half of the balance past due more than 90 days for such countries. Over the three-year period ended December 31, 2022, the Company has not experienced any material losses from uncollectible accounts in excess of the established reserves. The Company does not enter into financial instruments for trading or speculative purposes. Further, the Company has a policy of only entering into contracts with parties that have at least an investment grade credit rating. The Company enters into cross-currency swaps and foreign currency exchange contracts with high credit quality financial institutions. The counter-parties to the Company’s cross-currency swaps and foreign currency exchange contracts are major financial institutions, and there is no significant concentration of exposure with any one counter-party. To date, no counterparty has failed to meet its obligations to the Company and management believes the risk of loss associated with these contracts is remote. See Note 5, “FAIR VALUE MEASUREMENTS” for additional details regarding the Company’s cross-currency swaps and foreign currency exchange contracts. Allowance for Credit Losses An allowance is maintained for potential credit losses. The Company estimates the current expected credit loss on its receivables based on various factors, including historical credit loss experience, customer credit worthiness, value of collaterals (if any), and any relevant current and reasonably supportable future economic factors. Additionally, the Company generally estimates the expected credit loss on a pool basis when customers are deemed to have similar risk characteristics. Trade receivable balances are written off against the allowance when it is deemed probable that the trade receivable will not be collected. Trade receivables, net are stated net of certain sales provisions and the allowance for credit losses. Allowance for credit losses were $33 million, $35 million and $39 million as of December 31, 2022, 2021 and 2020, respectively. The activity in the allowance for credit losses for trade receivables was as follows: (in millions) 2022 2021 2020 Balance, beginning of period $ 35 $ 39 $ 48 Retrospective effect of application of new accounting standard — — 1 Provision for expected credit losses 5 (2) 2 Write-offs charged against the allowance (6) (3) (12) Recoveries of amounts previously written off 2 2 3 Foreign exchange and other (3) (1) (3) Balance, end of period $ 33 $ 35 $ 39 Inventories Inventories comprise raw materials, work in process and finished goods, which are valued at the lower of cost or net realizable value, on a first-in, first-out basis. The cost value for work in process and finished goods inventories includes materials, direct labor and an allocation of overheads. The Company evaluates the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared with quantities on hand, the price the Company expects to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand. Property, Plant and Equipment Property, plant and equipment are reported at cost, less accumulated depreciation. Costs incurred on assets under construction are capitalized as construction in progress. Depreciation is calculated using the straight-line method, commencing when the assets become available for productive use, based on the following estimated useful lives: Land improvements 15 - 30 years Buildings and improvements Up to 40 years Machinery and equipment 3 - 20 years Other equipment 3 - 10 years Equipment on operating lease Up to 5 years Leasehold improvements Lesser of term of lease or 10 years Intangible Assets Intangible assets are reported at cost, less accumulated amortization and impairments. Intangible assets with finite lives are amortized over their estimated useful lives. Amortization is calculated primarily using the straight-line method based on the following estimated useful lives: Product brands 1 - 20 years Corporate brands 9 - 20 years Product rights/patents 4 - 15 years Partner relationships 7 - 9 years Out-licensed technology and other 8 - 9 years Divestitures of Products The net proceeds on the divestiture of products and the carrying amount of the related assets is recorded as a gain/loss on sale within Other expense, net. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when realizable. IPR&D The fair value of IPR&D acquired through a business combination is capitalized as an indefinite-lived intangible asset until the completion or abandonment of the related research and development activities. When the related research and development is completed, the asset will be assigned a useful life and amortized. Acquired IPR&D assets are tested for impairment at least annually or when triggering events are identified. The fair value of an acquired IPR&D intangible asset is typically determined using an income approach. This approach starts with a forecast of the net cash flows expected to be generated by the asset over its estimated useful life. The net cash flows reflect the asset’s stage of completion, the probability of technical success, the projected costs to complete, expected market competition and an assessment of the asset’s life-cycle. The net cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the expected cash flow streams. Impairment of Long-Lived Assets Long-lived assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If indicators of impairment are present, the asset is tested for recoverability by comparing the carrying value of the asset to the related estimated undiscounted future cash flows expected to be derived from the asset, which include the amount and timing of the projected future cash flows. If the expected undiscounted cash flows are less than the carrying value of the asset, then the asset is considered to be impaired and its carrying value is written down to fair value, based on the related estimated discounted future cash flows. Indefinite-lived intangible assets, which includes acquired IPR&D and the corporate trademark acquired in the acquisition of Bausch & Lomb Holdings Incorporated (the “B&L Trademark”), are tested for impairment annually or more frequently if events or changes in circumstances between annual tests indicate that the asset may be impaired. Impairment losses on indefinite-lived intangible assets are recognized based on a comparison of the fair value of the asset to its carrying value. Goodwill Goodwill is recorded with the acquisition of a business and is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. Goodwill is not amortized but is tested for impairment at least annually as of October 1st at the reporting unit level. Goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value. A reporting unit is the same as, or one level below, an operating segment. A n entity is permitted to first assess qualitatively whether it is necessary to perform a quantitative impairment test for any of its reporting units. The quantitative impairment test is required only when the Company concludes that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company considers the totality of all relevant events or circumstances that affect the fair value or carrying amount of a reporting unit. An interim goodwill impairment test in advance of the annual impairment assessment may be required if events occur that indicate an impairment might be present. For example, a substantial decline in the Company’s market capitalization, changes in reportable segments, unexpected adverse business conditions, economic factors, including rising interest rates and unanticipated competitive activities may signal that an interim impairment test is needed. Accordingly, among other factors, the Company monitors changes in its share price between annual impairment tests. The Company considers a decline in its share price that corresponds to an overall deterioration in stock market conditions to be less of an indicator of goodwill impairment than a unilateral decline in its share price reflecting adverse changes in its underlying operating performance, cash flows, financial condition and/or liquidity. In the event that the Company’s market capitalization does decline below its book value, the Company would consider the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists. The Company believes that short-term fluctuations in share prices may not necessarily reflect underlying values. Debt Discounts and Premiums, Issuance Costs and Deferred Financing Costs Debt discounts and issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from or addition to the carrying amount of the related debt and are amortized or accreted, using the effective interest method, as interest expense over the contractual lives of the related credit facilities or notes. Deferred financing costs associated with revolving credit facility arrangements are included in the balances of Prepaid expenses and other current assets and Other non-current assets in the Consolidated Balance Sheets and are amortized as interest expense over the contractual life of the related revolving credit facility. The carrying value of modified debt accounted for as a troubled debt restructuring consists of all future undiscounted cash flows, both principal and contractual future interest, associated with such debt. The excess of the carrying value over the principal amount of such debt is recorded as a premium and is reduced as stated interest payments are made on such debt. Foreign Currency Translation The assets and liabilities of the Company’s foreign operations having a functional currency other than the U.S. dollar are translated into U.S. dollars at the exchange rate prevailing at the balance sheet date, and at the average exchange rate for the reporting period for revenue and expense accounts. The cumulative foreign currency translation adjustment is recorded as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. Foreign currency exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are recognized as a component of Foreign exchange and other in the Consolidated Statements of Operations. Revenue Recognition The Company’s revenues are primarily generated from product sales, primarily in the therapeutic areas of eye health, gastroenterology (“GI”) and dermatology that consist of: (i) branded pharmaceuticals, (ii) generic and branded generic pharmaceuticals, (iii) OTC products and (iv) medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment and aesthetics devices). Other revenues include alliance and service revenue from the licensing and co-promotion of products and contract service revenue primarily in the areas of dermatology and topical medication. Contract service revenue is derived primarily from contract manufacturing for third parties and is not material. See Note 22, “SEGMENT INFORMATION” for the disaggregation of revenues which depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by the economic factors of each category of customer contracts. The Company recognizes revenue when the customer obtains control of promised goods or services and in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, the Company applies the five-step revenue model to contracts within its scope: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Product Sales A contract with the Company’s customers exists for each product sale. Where a contract with a customer contains more than one performance obligation, the Company allocates the transaction price to each distinct performance obligation based on its relative standalone selling price. The transaction price is adjusted for variable consideration which is discussed below. The Company generally recognizes revenue for product sales at a point in time, when the customer obtains control of the products. Product Sales Provisions As is customary in the pharmaceutical industry, gross product sales are subject to a variety of deductions in arriving at reported net product sales. The transaction price for product sales is typically adjusted for variable consideration, which may be in the form of cash discounts, allowances, returns, rebates, chargebacks and distribution fees paid to customers. Provisions for variable consideration are established to reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in the future period. Provisions for these deductions are recorded concurrently with the recognition of gross product sales revenue and include cash discounts and allowances, chargebacks, and distribution fees, which are paid to direct customers, as well as rebates and returns, which can be paid to direct and indirect customers. Returns provision balances and volume discounts to direct customers are included in Accrued and other current liabilities. All other provisions related to direct customers are included in Trade receivables, net, while provision balances related to indirect customers are included in Accrued and other current liabilities. The following table presents the activity and ending balances of the Company’s variable consideration provisions the years 2022 and 2021. (in millions) Discounts Returns Rebates Chargebacks Distribution Total Reserve balance, January 1, 2021 $ 190 $ 575 $ 779 $ 184 $ 85 $ 1,813 Current period provision 625 131 2,462 1,999 211 5,428 Payments and credits (593) (224) (2,297) (2,013) (251) (5,378) Reserve balance, December 31, 2021 222 482 944 170 45 1,863 Current period provision 571 131 2,587 2,064 218 5,571 Payments and credits (605) (186) (2,508) (2,038) (187) (5,524) Reserve balance, December 31, 2022 $ 188 $ 427 $ 1,023 $ 196 $ 76 $ 1,910 Included in Rebates in the table above are cooperative advertising credits due to customers of approximately $40 million and $36 million as of December 31, 2022 and 2021, respectively, which are reflected as a reduction of Trade accounts receivable, net in the Consolidated Balance Sheets. The Company continually monitors its variable consideration provisions and evaluates the estimates used as additional information becomes available. Adjustments will be made to these provisions periodically to reflect new facts and circumstances that may indicate that historical experience may not be indicative of current and/or future results. The Company is required to make subjective judgments based primarily on its evaluation of current market conditions and trade inventory levels related to the Company’s products. These judgments include the potential impact of the COVID-19 pandemic on, among other things, unemployment and related changes in customer health insurance levels, customer behaviors during the COVID-19 pandemic and government stimulus bills that focus on ensuring availability and access to lifesaving drugs during a public health crisis. This evaluation may r |
ACQUISITIONS, LICENSING AGREEME
ACQUISITIONS, LICENSING AGREEMENTS AND DIVESTITURE | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS, LICENSING AGREEMENTS AND DIVESTITURE | ACQUISITIONS, LICENSING AGREEMENTS AND DIVESTITURE Licensing Agreements In the normal course of business, the Company may enter into select licensing and collaborative agreements for the commercialization and/or development of unique products. These products are sometimes investigational treatments in early stage development that target unique conditions. The ultimate outcome, including whether the product will be: (i) fully developed, (ii) approved by regulatory agencies, (iii) covered by third-party payors or (iv) profitable for distribution, is highly uncertain. The commitment periods under these agreements vary and include customary termination provisions. Expenses arising from commitments, if any, to fund the development and testing of these products and their promotion are recognized as incurred. Royalties due are recognized when earned and milestone payments are accrued when each milestone has been achieved and payment is probable and can be reasonably estimated. Acquisitions Paragon BioTeck, Inc. On November 21, 2022, Bausch + Lomb acquired Paragon BioTeck, Inc., an eye-care focused drug development company, having a primary emphasis on the early detection of ocular diseases. The acquisition of Paragon Bioteck has been accounted for as an asset acquisition. The primary assets in the transaction, the trademarks, represented substantially all of the fair value of the gross assets acquired. There are no future sales milestones associated with this transaction. Total Titanium On December 12, 2022, Bausch + Lomb acquired Total Titanium, Inc., a privately held ophthalmic microsurgical instrument and machined parts manufacturing company. The transaction was completed to assist in driving revenue growth as well as increasing manufacturing capacity. The fair value of the acquisition has been accounted for as a business combination. Additional contingent payments may be payable upon reaching key future milestone achievements related to sales and employee retention. As a result of these transactions, recorded within the Consolidated Balance Sheet are Trade receivables, net of $1 million, Inventories, net of $1 million, Property, plant and equipment of $2 million, Intangibles, net of $43 million, Goodwill of $5 million and Deferred tax liabilities, net of $11 million. Supplemental pro forma information related to revenue and earnings for 2022 were not provided for the aforementioned transaction as they did not have a material impact on the Company’s operations. Refer to Note 21, “COMMITMENTS AND CONTINGENCIES” for further detail regarding potential future milestone payments related to previously entered transactions and agreements. Divestiture On March 31, 2021, the Company announced that it and certain of its affiliates had entered into a definitive agreement to sell all of its equity interests in Amoun Pharmaceutical Company S.A.E. (“Amoun”) for total gross consideration of approximately $740 million (including the assignment to the purchasing entity of an intercompany loan granted by the Company to Amoun), subject to certain adjustments (the “Amoun Sale”). The Amoun Sale closed on July 26, 2021. As part of the Amoun Sale, cash generated by Amoun during the period from the locked-box date of January 1, 2021 through closing was for the benefit of the purchasing entity, subject to working capital during such period. Amoun manufactures, markets and distributes branded generics of human and animal health products. The Amoun business was part of the International Rx segment (previously included within the former Bausch + Lomb/International segment) and was reclassified as held for sale as of December 31, 2020. As a result of meeting the criteria for held for sale classification, the carrying value of the Amoun business, was adjusted to its estimated fair value, less costs to sell, and the Company recognized an impairment loss of $96 million during the three months ended December 31, 2020 and an additional impairment loss of $88 million during 2021, included within Asset impairments, including loss on assets held for sale in the Consolidated Statements of Operations. In connection with completing the Amoun Sale, the Company recognized an additional loss of $26 million during 2021, included within Other (income) expense, net in the Consolidated Statements of Operations. The total loss of $210 million includes the release of non-cash cumulative foreign currency translation losses of $340 million, which were included as part of the carrying value of the Amoun business when measuring for impairment. |
RESTRUCTURING, INTEGRATION, SEP
RESTRUCTURING, INTEGRATION, SEPARATION AND IPO COSTS | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING, INTEGRATION, SEPARATION AND IPO COSTS | RESTRUCTURING, INTEGRATION, SEPARATION AND IPO COSTS Restructuring and integration costs The Company evaluates opportunities to improve its operating results and implements cost savings programs to streamline its operations and eliminate redundant processes and expenses. Restructuring and integration costs are expenses associated with the implementation of these cost savings programs and include expenses associated with: (i) reducing headcount, (ii) eliminating real estate costs associated with unused or under-utilized facilities and (iii) implementing contribution margin improvement and other cost reduction initiatives. The liability associated with restructuring and integration costs as of December 31, 2022 was $12 million. The Company incurred $30 million, $18 million and $11 million of restructuring and integration-related costs and made payments of $41 million, $19 million and $18 million during 2022, 2021 and 2020, respectively. Separation costs, Separation-related costs, IPO Costs and IPO-related Costs The Company has incurred, and will incur, costs associated with activities relating to the B+L Separation. In 2022 and 2021, the Company also incurred costs associated with activities relating to the Solta IPO, which was suspended in June 2022. These B+L Separation and Solta IPO activities include: (i) separating the Bausch + Lomb and Solta Medical businesses from the remainder of the Company, (ii) completing the B+L IPO and preparing for the suspended Solta IPO and (iii) the actions necessary for Bausch + Lomb to become an independent publicly traded entity. Separation and IPO costs are incremental costs directly related to the B+L Separation and the suspended Solta IPO and include, but are not limited to: (i) legal, audit and advisory fees, (ii) talent acquisition costs and (iii) costs associated with establishing a new board of directors and related board committees for Bausch + Lomb. Included in Restructuring, integration, separation and IPO costs for the years ended December 31, 2022 and 2021 are Separation and IPO costs of $33 million and $32 million, respectively. The Company has also incurred, and expects to continue to incur with respect to the B+L Separation, separation-related and IPO-related costs which are incremental costs indirectly related to the B+L Separation and the suspended Solta IPO including, but are not limited to: (i) IT infrastructure and software licensing costs, (ii) rebranding costs and (iii) costs associated with facility relocation and/or modification. Included in Selling, general and administrative for years ended December 31, 2022 and 2021 are Separation-related and IPO-related costs of $94 million and $132 million, respectively. The extent and timing of future charges for these costs cannot be reasonably estimated at this time and could be material. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value measurements are estimated based on valuation techniques and inputs categorized as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities; • Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 — Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using discounted cash flow methodologies, pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following fair value hierarchy table presents the components and classification of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of: December 31, 2022 December 31, 2021 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 94 $ 85 $ 9 $ — $ 76 $ 58 $ 18 $ — Restricted cash and other settlement deposits $ 27 $ 27 $ — $ — $ 1,537 $ 1,537 $ — $ — Foreign currency exchange contracts $ 6 $ — $ 6 $ — $ 1 $ — $ 1 $ — Liabilities: Acquisition-related contingent consideration $ 241 $ — $ — $ 241 $ 241 $ — $ — $ 241 Cross-currency swaps $ 39 $ — $ 39 $ — $ — $ — $ — $ — Foreign currency exchange contracts $ 4 $ — $ 4 $ — $ — $ — $ — $ — Cash equivalents consist of highly liquid investments, primarily money market funds, with maturities of three months or less when purchased, and are reflected in the Consolidated Balance Sheets at carrying value, which approximates fair value due to their short-term nature. Cash, cash equivalents and restricted cash and other settlements as presented in the Consolidated Balance Sheet as of December 31, 2022 includes $380 million of cash, cash equivalents and restricted cash held by legal entities of Bausch + Lomb. Cash held by Bausch + Lomb legal entities and any future cash from the operations, investing and financing activities of Bausch + Lomb, is expected to be retained by Bausch + Lomb entities and are generally not available to support the operations, investing and financing activities of other legal entities, including Bausch Health unless paid as a dividend which would be determined by the Board of Directors of Bausch + Lomb and paid pro rata to Bausch + Lomb’s shareholders. As of December 31, 2021, Restricted cash and other settlement deposits included $1,510 million of payments into escrow funds under the terms of settlement agreements regarding certain U.S. securities litigation, which was subject to one objector’s appeal of the final court approval and the Glumetza Antitrust Litigation. With respect to the U.S. Securities Litigation, the period to file a petition for an appeal with the U.S. Supreme Court expired on August 10, 2022 and the objector did not file such a petition. The expiration of this deadline means the securities litigation settlement and judgment have become “final”, as no more appeals can be filed. As a result, the Company’s rights to the funds in escrow were extinguished and the Company reduced Restricted cash and other settlement deposits with a corresponding reduction to liabilities for legal settlements, included in Accrued and other current liabilities on the Company’s Consolidated Balance Sheets, by $1,210 million during the third quarter of 2022. See “U.S. Securities Litigation - Opt -Out Litigation” of Note 20, “LEGAL PROCEEDINGS” for additional details. There were no transfers into or out of Level 3 during 2022 and 2021. Cross-currency Swaps During 2019, the Company entered into cross-currency swaps, with aggregate notional amounts of $1,250 million, to mitigate fluctuation in the value of a portion of its euro-denominated net investment in its consolidated financial statements from adverse movements in exchange rates. The euro-denominated net investment being hedged was the Company’s investment in certain euro-denominated subsidiaries. During November 2021, the Company entered into a transaction to unwind its cross-currency swaps and received net proceeds of $4 million, which included interest income of $6 million, offset by the amount owed by the Company upon the unwinding of $2 million. The gain arising from the transaction of the swaps has been included as a component of Other comprehensive loss. As of December 31, 2021, there were no cross-currency swaps. During the third quarter of 2022, Bausch + Lomb entered into cross-currency swaps (the “2022 Cross-Currency Swaps”), with aggregate notional amounts of $1,000 million, to mitigate fluctuation in the value of a portion of its euro-denominated net investment in its consolidated financial statements from fluctuation in exchange rates. The euro-denominated net investment being hedged is Bausch + Lomb’s investment in certain Bausch + Lomb euro-denominated subsidiaries. The assets and liabilities associated with the Company’s cross-currency swaps as included in the Consolidated Balance Sheets as of December 31, 2022 and 2021 are as follows: (in millions) 2022 2021 Other non-current liabilities $ 45 $ — Prepaid expenses and other current assets $ 6 $ — Net fair value $ 39 $ — The following table presents the effect of hedging instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss for 2022 and 2021: (in millions) 2022 2021 Gain (loss) recognized in Other comprehensive loss $ (45) $ 77 Gain excluded from assessment of hedge effectiveness $ 6 $ 20 Location of gain of excluded component Interest Expense Interest settlement of the 2022 Cross-Currency Swaps occurs in January and July each year, with the first settlement in January 2023. Future settlements of the 2022 Cross-Currency Swaps will be reported as investing activities in the Consolidated Statements of Cash Flows. For the years ended December 31, 2022 and 2021, the Company received $0 and $27 million, respectively, in settlements of its cross-currency swaps which are reported as Investing activities in the Consolidated Statements of Cash Flows. Foreign Currency Exchange Contracts During 2022 and 2021, the Company entered into foreign currency exchange contracts. As of December 31, 2022, these contracts had an aggregate outstanding notional amount of $455 million. The assets and liabilities associated with the Company’s foreign exchange contracts as included in the Consolidated Balance Sheets as of December 31, 2022 and 2021 are as follows: (in millions) 2022 2021 Accrued and other current liabilities $ (4) $ — Prepaid expenses and other current assets $ 6 $ 1 Net fair value $ 2 $ 1 The following table presents the effect of the Company’s foreign exchange contracts on the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows for 2022 and 2021: (in millions) 2022 2021 Gain related to changes in fair value $ 2 $ 9 Loss related to settlements $ (20) $ (17) Acquisition-related Contingent Consideration Obligations The fair value measurement of contingent consideration obligations arising from business combinations is determined via a probability-weighted discounted cash flow analysis, using unobservable (Level 3) inputs. These inputs may include: (i) the estimated amount and timing of projected cash flows, (ii) the probability of the achievement of the factor(s) on which the contingency is based and (iii) the risk-adjusted discount rate used to present value the probability-weighted cash flows. Significant increases or decreases in any of those inputs in isolation could result in a significantly higher or lower fair value measurement. At December 31, 2022, the fair value measurements of acquisition-related contingent consideration were determined using risk-adjusted discount rates ranging from 6% to 18%, and a weighted average risk-adjusted discount rate of 7%. The weighted average risk-adjusted discount rate was calculated by weighting each contract’s relative fair value at December 31, 2022. The following table presents a reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs (Level 3) for the years 2022 and 2021: (in millions) 2022 2021 Beginning balance, January 1, $ 241 $ 328 Adjustments to Acquisition-related contingent consideration: Accretion for the time value of money $ 16 $ 17 Fair value adjustments 12 (6) Acquisition-related contingent consideration adjustments 28 11 Payments / Settlements (28) (99) Foreign currency translation adjustment included in other comprehensive loss — 1 Ending balance, December 31, 241 241 Current portion 34 39 Non-current portion $ 207 $ 202 Fair Value of Long-term Debt The fair value of long-term debt as of December 31, 2022 and 2021 was $14,011 million and $22,689 million, respectively, and was estimated using the quoted market prices for the same or similar debt issuances (Level 2). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories, net, as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Raw materials $ 326 $ 279 Work in process 98 112 Finished goods 666 602 $ 1,090 $ 993 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The major components of property, plant and equipment as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Land $ 71 $ 74 Buildings and improvements 798 675 Machinery and equipment 1,951 1,678 Other equipment and leasehold improvements 342 342 Equipment on operating lease 78 73 Construction in progress 280 576 3,520 3,418 Accumulated depreciation (1,920) (1,820) $ 1,600 $ 1,598 Depreciation expense was $179 million, $177 million and $180 million for 2022, 2021 and 2020, respectively. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The major components of intangible assets as of December 31, 2022 and 2021 consist of: Weighted- 2022 2021 (in millions) Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Product brands 5 $ 20,840 $ (17,196) $ 3,644 $ 20,842 $ (16,169) $ 4,673 Corporate brands 5 899 (542) 357 902 (473) 429 Product rights/patents 4 3,347 (3,251) 96 3,321 (3,174) 147 Partner relationships 0 149 (149) — 158 (158) — Technology and other 8 201 (196) 5 207 (206) 1 Total finite-lived intangible assets 25,436 (21,334) 4,102 25,430 (20,180) 5,250 B&L Trademark NA 1,698 — 1,698 1,698 — 1,698 $ 27,134 $ (21,334) $ 5,800 $ 27,128 $ (20,180) $ 6,948 Long-lived assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company continues to monitor the recoverability of its finite-lived intangible assets and tests the intangible assets for impairment if indicators of impairment are present. The Company estimates the fair values of long-lived assets with finite lives using an undiscounted cash flow model which utilizes Level 3 unobservable inputs. The undiscounted cash flow model relies on assumptions regarding revenue growth rates, gross profit, selling, general and administrative expenses, research and development expenses. Impairment charges associated with these assets are included in Asset impairments, including loss on assets held for sale in the Consolidated Statement of Operations. Asset impairments, including loss on assets held for sale in 2022 were $15 million and included: (i) impairments of $10 million, in aggregate, due to decreases in forecasted sales of certain product lines and (ii) impairments of $5 million, in aggregate, related to the discontinuance of certain product lines. On August 10, 2022, a court held, that among other findings, that certain U.S. patents protecting the composition and use of Xifaxan ® for treating inflammatory bowel syndrome with diarrhea (“IBS-D”) were invalid (the “Norwich Legal Decision”). On August 16, 2022, the Company appealed the Norwich Legal Decision and intends to vigorously defend its Xifaxan ® intellectual property. See “ Xifaxan ® Paragraph IV Proceedings ” of Note 20, “LEGAL PROCEEDINGS” for details of this litigation matter and the Company’s response. Xifaxan ® revenues were $1,216 million and $1,194 million for the nine months ended September 30, 2022 and 2021, respectively. As the ultimate outcome of the Norwich Legal Decision and other potential future related developments, including a competitor’s ability to launch a successful generic version to Xifaxan ® , could impact the timing and extent of future revenues and cash flows associated with Xifaxan ® , the Company determined that the ruling in the Norwich Legal Decision constituted an event requiring assessment of the Xifaxan ® finite-lived intangible assets for potential impairment. The Company performed this assessment using a probability-weighted undiscounted cash flow analysis, with a base case representing the Company’s most recent cash flow projections as revised in the third quarter of 2022, as well as different scenarios representing a range of different outcomes which address, among other things, the timing of when a competitor or competitors will be able to successfully launch a generic version to Xifaxan ® , if they are able to launch one at all. This assessment resulted in no impairment of the carrying value of the Xifaxan ® finite-lived intangible assets as of September 30, 2022. During the fourth quarter of 2022 there were no material changes to the facts and circumstances of the Norwich Legal Decision or to actual or expected business performance for Xifaxan ® . Based on these factors, no impairment to the carrying value of the Xifaxan ® finite-lived intangible assets was identified as of December 31, 2022. The Company also determined that no change to the remaining useful lives of its Xifaxan ® finite-lived intangible assets was required. Xifaxan ® finite-lived intangible assets included in the audited Consolidated Balance Sheets had a carrying value of $2,693 million and an estimated remaining useful life of 60 months as of December 31, 2022. It is possible that the Norwich Legal Decision and other potential future developments: (i) may adversely impact the estimated future cash flows associated with these products, which could result in an impairment of the value of these intangible assets in one or more future periods and (ii) may result in shortened useful lives of the Xifaxan ® finite-lived intangible assets, which would increase amortization expense in future periods. Any such impairment or shortening of the useful lives of Xifaxan ® could be material to the results of operations of the Company in the period or periods in which they were to occur. Asset impairments, including loss on assets held for sale in 2021 included: (i) impairments of $105 million, in aggregate, due to decreases in forecasted sales of certain product lines, (ii) an $88 million loss on assets held for sale in connection with the Amoun Sale as discussed in Note 3, “ACQUISITIONS, LICENSING AGREEMENTS AND DIVESTITURE”, (iii) impairments of $23 million, in aggregate, related to the discontinuance of certain product lines and (iv) $18 million related to a portion of an IT infrastructure improvement project no longer being utilized. Asset impairments, including loss on assets held for sale in 2020 included impairments of: (i) $96 million to reduce the carrying value of the Amoun business to its estimated fair value less costs to sell due to classifying the business as held for sale, (ii) $16 million in aggregate, due to decreases in forecasted sales of certain product lines, (iii) $1 million in aggregate, related to the discontinuance of certain product lines not aligned with the focus of the Company’s core businesses and (iv) $1 million related to Acquired IPR&D not in service. The impairments to assets reclassified as held for sale were measured as the difference of the carrying value of these assets as compared to the estimated fair values of these assets less costs to sell determined using a discounted cash flow analysis which utilized Level 3 unobservable inputs. The other impairments and adjustments to finite-lived intangible assets were measured as the difference of the historical carrying value of these finite-lived assets as compared to the estimated fair value as determined using a discounted cash flow analysis using Level 3 unobservable inputs. Periodically, the Company’s products face the expiration of their patent or regulatory exclusivity. The Company anticipates that product sales for such product would decrease shortly following a loss of exclusivity (“LOE”), due to the possible entry of a generic competitor. Where the Company has the rights, it may elect to launch an authorized generic of such product (either as the Company’s own branded generic or through a third-party). This may occur prior to, upon or following generic entry, which may mitigate the anticipated decrease in product sales; however, even with launch of an authorized generic, the decline in product sales of such product could still be significant, and the effect on future revenues could be material. Management continually assesses the useful lives related to the Company’s long-lived assets to reflect the most current assumptions. Estimated amortization expense of finite-lived intangible assets for the five years ending December 31 and thereafter are as follows: (in millions) 2023 2024 2025 2026 2027 Thereafter Total Amortization $ 1,027 $ 904 $ 798 $ 670 $ 633 $ 70 $ 4,102 Goodwill The changes in the carrying amounts of goodwill during the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) Bausch + Bausch + Salix International Ortho Dermatologics Solta Medical Diversified Products Total Balance, January 1, 2020 $ 5,786 $ — $ 3,159 $ — $ 1,267 $ — $ 2,914 13,126 Assets held for sale reclassified to goodwill 18 — — — — — — 18 Goodwill reclassified to assets held for sale (Note 3) (217) — — — — — — (217) Foreign exchange and other 117 — — — — — — 117 Balance, December 31, 2020 5,704 — 3,159 — 1,267 — 2,914 13,044 Realignment of segment goodwill (5,704) 5,395 — 887 — — (578) — Impairment — — — — (469) — — (469) Foreign exchange and other — (77) — (62) — — 21 (118) Balance, December 31, 2021 — 5,318 3,159 825 798 — 2,357 12,457 Realignment of segment goodwill — — — — (798) 115 683 — Additions — 5 — — — — — 5 Impairment — — — — — — (824) (824) Foreign exchange and other — (77) — (36) — — 22 (91) Balance, December 31, 2022 $ — $ 5,246 $ 3,159 $ 789 $ — $ 115 $ 2,238 $ 11,547 Goodwill is not amortized but is tested for impairment at least annually on October 1st at the reporting unit level. A reporting unit is the same as, or one level below, an operating segment. The Company performs its annual impairment test by first assessing qualitative factors. Where the qualitative assessment suggests that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative fair value test is performed for that reporting unit (Step 1). The fair value of a reporting unit refers to the price that would be received to sell the unit as a whole in an orderly transaction between market participants. The Company estimates the fair values of a reporting unit using a discounted cash flow model which utilizes Level 3 unobservable inputs. The discounted cash flow model relies on assumptions regarding revenue growth rates, gross profit, projected working capital needs, selling, general and administrative expenses, research and development expenses, capital expenditures, income tax rates, discount rates and terminal growth rates. To estimate fair value, the Company discounts the forecasted cash flows of each reporting unit. The discount rate the Company uses represents the estimated weighted average cost of capital, which reflects the overall level of inherent risk involved in its reporting unit operations and the rate of return a market participant would expect to earn. The quantitative fair value test is performed utilizing long-term growth rates and discount rates applied to the estimated cash flows in estimation of fair value. To estimate cash flows beyond the final year of its model, the Company estimates a terminal value by applying an in-perpetuity growth assumption and discount factor to determine the reporting unit’s terminal value. To forecast a reporting unit’s cash flows the Company takes into consideration economic conditions and trends, estimated future operating results, management’s and a market participant’s view of growth rates and product lives, and anticipates future economic conditions. Revenue growth rates inherent in these forecasts are based on input from internal and external market research that compare factors such as growth in global economies, recent industry trends and product life-cycles. Macroeconomic factors such as changes in economies, changes in the competitive landscape including the unexpected LOE to the Company’s product portfolio, changes in government legislation, product life-cycles, industry consolidations and other changes beyond the Company’s control could have a positive or negative impact on achieving its targets. Accordingly, if market conditions deteriorate, or if the Company is unable to execute its strategies, it may be necessary to record impairment charges in the future. 2020 2020 Interim Impairment Assessment The negative impacts of the COVID-19 pandemic on the global economy led to significant volatility in the global equity markets and the Company was able to continue its operations with limited disruptions. In performing its assessment during 2020, the Company considered the possible effects and outcomes of the COVID-19 pandemic on, among other things, its supply chain, customers and distributors, employee base, product sustainability, research and development activities, product pipeline and consumer demand and related rebates and discounts and made adjustments to the long-term forecasts used in previous goodwill impairment assessments, for these and other matters. After completing this assessment, the Company believed that, with the exception of the Ortho Dermatologics reporting unit, its long-term forecasted cash flows, as adjusted for the possible outcome of the COVID-19 pandemic and other matters, did not indicate that the fair value of any reporting unit may be below its carrying value. During the interim periods of 2020, after giving consideration to the nature and timing of the negative impacts of the COVID-19 pandemic on the Company’s forecasted cash flows, with the exception of the Ortho Dermatologics reporting unit, no events occurred, or circumstances changed that would indicate that the fair value of any other reporting unit might be below its carrying value and therefore, no impairments were recorded. During the three months ended March 31, 2020 and June 30, 2020, the operating results for the Ortho Dermatologics reporting unit were less than forecasted primarily due to certain products experiencing longer launch cycles than originally anticipated as a result of the COVID-19 pandemic. The Company revised its long-term forecasts as of March 31, 2020 and as of June 30, 2020 for these matters. Management believed that these events were indicators that there was less headroom as of March 31, 2020 and June 30, 2020 as compared to the headroom calculated on the date Ortho Dermatologics goodwill was previously tested for impairment. Therefore, a quantitative fair value test for impairment to the goodwill of the Ortho Dermatologics reporting unit was performed at March 31, 2020 and at June 30, 2020. The quantitative fair value tests utilized the Company’s most recent cash flow projections for the Ortho Dermatologics reporting unit as revised in the then respective quarter of 2020 which reflected current market conditions and current trends in business performance. Based on the quantitative fair value tests, the fair value of the Ortho Dermatologics reporting unit continued to be greater than its carrying value and as a result there was no impairment to the goodwill of the reporting unit at March 31, 2020 and at June 30, 2020. 2020 Annual Impairment Test The Company conducted its annual goodwill impairment test as of October 1, 2020 by first assessing qualitative factors. Based on its qualitative assessment as of October 1, 2020, management believed that, with the exception of the Ortho Dermatologics reporting unit, it was more likely than not that the carrying amounts of its reporting units were less than their respective fair values and therefore concluded that a quantitative fair value test for those reporting units was not required. As part of its qualitative assessment of the Ortho Dermatologics reporting unit as of October 1, 2020, the Company considered, among other matters, a range of potential impacts of COVID-19 pandemic related matters and the limited headroom calculated on the date Ortho Dermatologics goodwill was last tested for impairment (June 30, 2020). The Company believed that these factors may suggest that it was more likely than not that the fair value of the Ortho Dermatologics reporting unit was less than its carrying amount, and therefore a quantitative fair value test was performed for the reporting unit. The Company performed a quantitative fair value test for the Ortho Dermatologics reporting unit as of October 1, 2020. The quantitative fair value test utilized the Company’s most recent cash flow projections as revised in the fourth quarter of 2020 which reflected current market conditions and current trends in business performance. The quantitative fair value test utilized a long-term growth rate of 2.0% and a range of discount rates between 9.50% and 9.75%, in estimation of the fair value of this reporting unit. Based on the quantitative fair value test, the fair value of the Ortho Dermatologics reporting unit was approximately 10% greater than its carrying value and as a result there was no impairment to the goodwill of the reporting unit. 2021 First Quarter 2021 - Realignment of Segments Commencing in the first quarter of 2021, the Company began operating in the following reportable segments: (i) Bausch + Lomb, (ii) Salix, (iii) International Rx, (iv) Ortho Dermatologics and (v) Diversified Products. The Bausch + Lomb segment consisted of the: (i) U.S. Bausch + Lomb and (ii) International Bausch + Lomb reporting units. The Salix segment consisted of the Salix reporting unit. The International Rx segment consisted of the International Rx reporting unit. The Ortho Dermatologics segment consisted of the: (i) Ortho Dermatologics and (ii) Global Solta reporting units. The Diversified Products segment consisted of the: (i) Neurology and Other, (ii) Generics and (iii) Dentistry reporting units. This realignment in segment structure resulted in a change in the Company’s former International reporting unit, which was divided between the International Bausch + Lomb reporting unit and International Rx reporting unit. In addition, as part of this realignment of segment structure, certain products historically included in the Generics reporting unit were included in the U.S. Bausch + Lomb reporting unit. As a result of this realignment, goodwill was reassigned to each of the aforementioned reporting units using a relative fair value approach. Goodwill previously reported in the former International reporting unit was reassigned to the International Bausch + Lomb and International Rx reporting units, and a portion of goodwill previously reported in the former Generics reporting unit was reassigned to the U.S. Bausch + Lomb reporting unit. Immediately prior to the change in reporting units, the Company performed a qualitative fair value assessment for its former: (i) International and (ii) Generics reporting units. Based on the qualitative fair value assessment performed, management believed that it was more likely than not that the carrying values of its former: (i) International and (ii) Generics reporting units were less than their respective fair values and therefore, concluded a quantitative assessment was not required. Immediately following the change in reporting units, as a result of the change in composition of the net assets for its current: (i) International Bausch + Lomb, (ii) International Rx and (iii) Generics reporting units, the Company performed a quantitative fair value test. The quantitative fair value test utilized the Company’s most recent cash flow projections as revised in the first quarter of 2021 which reflected current market conditions and current trends in business performance. The quantitative fair value test utilized a range of long-term growth rates of 1.0% to 3.0% and a range of discount rates between 11.0% and 12.25%, in estimation of the fair value of the reporting units. After completing the testing, the fair value of each of these reporting units exceeded its carrying value by more than 40%, and, therefore, there was no impairment to goodwill. In addition, as the U.S. Bausch + Lomb reporting unit had a change in composition of its net assets related to certain products historically included in the Generics reporting unit now being included in the U.S. Bausch + Lomb reporting unit, the Company performed a qualitative assessment of this reporting unit. Based on the qualitative fair value assessment performed, management believed that it was more likely than not that the carrying value of its current U.S. Bausch + Lomb reporting unit was less than its fair value and therefore, concluded a quantitative assessment was not required. March 31, 2021 Impairment During the three months ended March 31, 2021, management identified launches of certain Ortho Dermatologics products which were not going to achieve their trajectories as forecasted once the social restrictions associated with the COVID-19 pandemic began to ease in the U.S. and offices of health care professionals could reopen. In addition, insurance coverage pressures within the U.S. continued to persist limiting patient access to topical acne and psoriasis products. In light of these developments, during the first quarter of 2021, the Company began taking steps to: (i) redirect its R&D spend to eliminate projects it has identified as high cost and high risk, (ii) redirect a portion of its marketing and product development outside the U.S. to geographies where there is better patient access and (iii) reduce its cost structure to be more competitive. As a result, during the three months ended March 31, 2021, the Company revised its long-term forecasts for the Ortho Dermatologics reporting unit. Management believed that these events were indicators that there is less headroom as of March 31, 2021 as compared to the headroom calculated on the date goodwill was last tested for impairment (October 1, 2020). Therefore, a quantitative fair value test for the Ortho Dermatologics reporting unit was performed. The quantitative fair value test utilized the Company’s most recent cash flow projections as revised in the first quarter of 2021 to reflect the business changes previously discussed, including a range of potential outcomes, along with a long-term growth rate of 1.0% and a range of discount rates between 9.0% and 10.0%. Based on the quantitative fair value test, the carrying value of the Ortho Dermatologics reporting unit exceeded its fair value as of March 31, 2021, and the Company recognized a goodwill impairment of $469 million. Second Quarter 2021 - Realignment of Bausch + Lomb Reporting Units Commencing in the second quarter of 2021, the Company changed the way it reviews the financial information of its Bausch + Lomb segment. Beginning in the second quarter of 2021, management no longer reviews the financial information of its Bausch + Lomb segment on a geographic basis, but instead reviews this financial information on a business line basis. This change created a change in the reporting units of the Bausch + Lomb segment. After the change, under its business line view, the Bausch + Lomb segment consists of the global: (i) Vision Care / Consumer Products, (ii) Ophthalmic Pharmaceuticals and (iii) Surgical reporting units. Prior to the second quarter of 2021, under the geographic view, the Bausch + Lomb segment consisted of the former: (i) U.S. Bausch + Lomb and (ii) International Bausch + Lomb reporting units. As a result of this realignment, goodwill was reassigned to each of the aforementioned reporting units using a relative fair value approach. The change in Bausch + Lomb reporting units does not impact the reported revenues and segment profits of the Bausch + Lomb segment for any prior periods. Immediately prior to the change in its Bausch + Lomb reporting units, the Company performed a qualitative fair value assessment for its former reporting units. Based on the qualitative fair value assessment, management believed that it was more likely than not that the carrying values of its former: (i) U.S. Bausch + Lomb and (ii) International Bausch + Lomb reporting units were less than their respective fair values and, therefore, concluded a quantitative assessment was not required. As a result of the change in composition of net assets, the Company performed a quantitative fair value test of its new: (i) Vision Care / Consumer Products, (ii) Ophthalmic Pharmaceuticals and (iii) Surgical reporting units immediately following the change in the Bausch + Lomb segment. The quantitative fair value test utilized the Company’s most recent cash flow projections as revised in the second quarter of 2021 which reflected current market conditions and current trends in business performance. The quantitative fair value test utilized long-term growth rates of 2.0% and 3.0% and a range of discount rates between 7.0% and 10.0%, in estimation of the fair value of the reporting units. After completing the testing, the fair value of each of these reporting units exceeded its carrying value by more than 45%, and, therefore, there was no impairment to goodwill. June 30, 2021 and September 30, 2021 Interim Assessment The Company continued to monitor the market conditions impacting the Ortho Dermatologics reporting unit. The Company’s latest forecasts for the Ortho Dermatologics reporting unit included a range of potential outcomes for, among other matters: (i) the impacts of the COVID-19 pandemic on operations, (ii) the impact of the loss of exclusivity of certain products, (iii) the impact of longer launch cycles for certain new products, (iv) progress of its product pipeline and (v) ongoing pricing pressures, which could negatively impact the reporting unit’s results over the long term. The changes in the amounts and timing of revenues and expenses in the latest forecast as compared to the forecast used at March 31, 2021 (the last time goodwill of the Ortho Dermatologics reporting unit was tested), were not substantial enough to materially adversely affect the recoverability of the Ortho Dermatologics reporting unit’s assets and were not material enough to indicate that the fair value of the Ortho Dermatologics reporting unit might be below its carrying value as last tested at March 31, 2021. No other events occurred or circumstances changed during the period October 1, 2020 (the earliest date goodwill was tested for all other reporting units) through December 31, 2021 that indicated that the fair value of any reporting unit, other than the Ortho Dermatologics reporting unit, might be below its carrying value. 2021 Annual Impairment Test The Company conducted its annual goodwill impairment test as of October 1, 2021 by first assessing qualitative factors. Based on its qualitative assessment as of October 1, 2021, management believed that, with the exception of the Ortho Dermatologics reporting unit, it was more likely than not that the carrying amounts of its reporting units were less than their respective fair values and therefore concluded that a quantitative fair value test for those reporting units was not required. As part of its qualitative assessment of the Ortho Dermatologics reporting unit as of October 1, 2021, the Company considered, among other matters, the limited headroom as a result of the impairment to the goodwill of the Ortho Dermatologics reporting unit when last tested (March 31, 2021) and macroeconomic factors such as higher than expected inflation for many commodities, volatility in many of the equity markets and pressures on market interest rates. The Company believed that these facts and circumstances may suggest that it was more likely than not that the fair value of the Ortho Dermatologics reporting unit was less than its carrying amount, and therefore a quantitative fair value test was performed for the reporting unit. The quantitative fair value test utilized the Company’s most recent cash flow projections as revised in the fourth quarter of 2021 which reflected current market conditions and current trends in business performance. The quantitative fair value test utilized a long-term growth rate of 1.0% and a discount rate of 9.0%, in estimation of the fair value of this reporting unit. Based on the quantitative fair value test, the fair value of the Ortho Dermatologics reporting unit was approximately 10% greater than its carrying value and as a result there was no impairment to the goodwill of the reporting unit. 2022 First Quarter 2022 - Realignment of Segments Commencing in the first quarter of 2022, the Company began operating in the following reportable segments: (i) Salix, (ii) International, (iii) Diversified Products, (iv) Solta Medical and (v) Bausch + Lomb. The Salix segment consists of the Salix reporting unit. The International segment consists of the International reporting unit. The Diversified Products segment consists of the: (i) Neurology and Other, (ii) Generics, (iii) Ortho Dermatologics and (iv) Dentistry reporting units. The Solta Medical segment consists of the Solta reporting unit. The Bausch + Lomb segment consists of the: (i) Vision Care (formerly Vision Care / Consumer Products), (ii) Ophthalmic Pharmaceuticals and (iii) Surgical reporting units. As such, 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 the Ortho Dermatologics reporting unit is now part of the current Diversified Products segment and the Solta reporting unit is now its own operating and reportable segment, and therefore management concluded that a quantitative fair value test was not required. March 31, 2022 Interim Assessment During the three months ended March 31, 2022, macroeconomic factors had impacted interest rates and the U.S. inflation rate was higher than previously expected. Given the limited headroom of the Ortho Dermatologics reporting unit as calculated on October 1, 2021, the Company believed that these facts and circumstances suggested the fair value of the Ortho Dermatologics reporting unit could be less than its carrying amount, and therefore a quantitative fair value test was performed for the reporting unit. The quantitative fair value test utilized the Company’s most recent cash flow projections as revised in the fourth quarter of 2022 which reflected current market conditions and current trends in business performance. The quantitative fair value test utilized a long-term growth rate of 1% and a discount rate of 9%. The discount rate contemplated changes in the current macroeconomic conditions noting certain inputs such as the risk-free rate increased over the three months ended March 31, 2022, and was offset by decreases in other reporting unit specific risks during the same period. Based on the quantitative fair value test, the fair value of the Ortho Dermatologics reporting unit was less than 2% greater than its carrying value and as a result there was no impairment to the goodwill of the reporting unit. June 30, 2022 Interim Assessment Ortho Dermatologics During the three months ended June 30, 2022, increases in interest rates and, to a lesser extent, higher than expected inflation in the U.S. and other macroeconomic factors impacted key assumptions used to value the Ortho Dermatologics reporting unit as of March 31, 2022. Given the limited headroom of the Ortho Dermatologics reporting unit as calculated on March 31, 2022, the Company believed that these facts and circumstances suggested the fair value of the Ortho Dermatologics reporting unit could be less than its carrying amount, and therefore a quantitative fair value test was performed for the reporting unit. The quantitative fair value test utilized the Company’s most recent cash flow projections for the Ortho Dermatologics reporting unit as revised in the second quarter of 2022 which reflected current market conditions and current trends in business performance. The Company’s discounted cash flow model for the Ortho Dermatologics reporting unit included a range of potential outcomes for, among other matters, macroeconomic factors such as higher than expected inflation for many commodities, volatility in many of the equity markets and pressures on market interest rates. The quantitative fair value test utilized a long-term growth rate of 1% and a discount rate of 10%. The discount rate had increased 1% since the assessment performed as of March 31, 2022, as a result of changes in macroeconomic conditions, including an increase in the risk-free rate during the three months ended June 30, 2022. Based on the quantitative fair value test, the carrying value of the Ortho Dermatologics reporting unit exceeded its fair value as of June 30, 2022, and the Company recognized a goodwill impairment of $83 million. Bausch + Lomb Reporting Units During the period May 6, 2022 (the time Bausch + Lomb’s stock began trading publicly) through June 30, 2022, equity and bond markets were negatively impacted by various macroeconomic and geopolitical factors including, but not limited to: rising inflation rates in the U.S. and abroad, uncertainties created by the Russia/Ukraine conflict, interest rate volatility, COVID-19 related lockdowns and supply issues. The equity markets negatively impacted the market price for Bausch + Lomb’s common stock which as of June 30, 2022 was trading below its IPO offering price. The Company believed that these facts and circumstances suggest the fair value of the three reporting units of the Bausch + L |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES | ACCRUED AND OTHER CURRENT LIABILITIES Accrued and other current liabilities as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Legal matters and related fees $ 326 $ 1,890 Product rebates 983 908 Product returns 427 482 Employee compensation and benefit costs 300 336 Interest 208 328 Income taxes payable 30 98 Other 714 749 $ 2,988 $ 4,791 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Principal amounts of debt obligations and principal amounts of debt obligations net of premiums, discounts and issuance costs as of December 31, 2022 and 2021 consists of the following: 2022 2021 (in millions) Maturity Principal Amount Net of Premiums, Discounts and Issuance Costs Principal Amount Net of Premiums, Discounts and Issuance Costs Senior Secured Credit Facilities: 2018 Restated Credit Agreement 2023 Revolving Credit Facility June 2023 $ — $ — $ 285 $ 285 June 2025 Term Loan B Facility June 2025 — — 2,829 2,772 November 2025 Term Loan B Facility November 2025 — — 994 984 2022 Amended Credit Agreement 2027 Revolving Credit Facility February 2027 470 470 — — February 2027 Term Loan B Facility February 2027 2,437 2,392 — — B+L Credit Facilities B+L Revolving Credit Facility May 2027 — — — — B+L Term Facility May 2027 2,488 2,439 — — Senior Secured Notes: 5.500% Secured Notes November 2025 1,680 1,672 1,750 1,739 6.125% Secured Notes February 2027 1,000 987 — — 5.750% Secured Notes August 2027 500 496 500 495 4.875% Secured Notes June 2028 1,600 1,583 1,600 1,580 11.00% First Lien Secured Notes September 2028 1,774 2,826 — — 14.00% Second Lien Secured Notes October 2030 352 711 — — 9.00% Intermediate Holdco Secured Notes January 2028 999 1,423 — — Senior Unsecured Notes: 6.125% April 2025 — — 2,650 2,640 9.000% December 2025 959 951 1,500 1,482 9.250% April 2026 741 737 1,500 1,489 8.500% January 2027 643 644 1,750 1,754 7.000% January 2028 171 170 750 743 5.000% January 2028 433 429 1,250 1,238 6.250% February 2029 821 813 1,500 1,483 5.000% February 2029 452 448 1,000 990 7.250% May 2029 337 334 750 742 5.250% January 2030 779 771 1,250 1,237 5.250% February 2031 462 458 1,000 989 Other Various 12 12 12 12 Total long-term debt and other $ 19,110 20,766 $ 22,870 22,654 Less: Current portion of long-term debt and other 432 — Non-current portion of long-term debt $ 20,334 $ 22,654 Covenant Compliance The Senior Secured Credit Facilities (as defined below), the B+L Credit Facilities (as defined below) and the indentures governing the Senior Secured Notes (as defined and described in the table above), the 9.00% Intermediate Holdco Secured Notes (as defined below) and Senior Unsecured Notes (as defined and described in the table above) contain customary affirmative and negative covenants and specified events of default. These affirmative and negative covenants include, among other things, and subject to certain qualifications and exceptions, covenants that restrict the Company’s ability and the ability of its subsidiaries to: incur or guarantee additional indebtedness; create or permit liens on assets; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; make certain investments and other restricted payments; engage in mergers, acquisitions, consolidations and amalgamations; transfer and sell certain assets; and engage in transactions with affiliates. As of December 31, 2022, the amount available for restricted payments under the “builder basket” in the Company’s most restrictive indentures (as defined by those indentures) was approximately $9,600 million (although such availability is subject to the Company’s compliance with a 2.00:1.00 fixed charge coverage ratio). The 2027 Revolving Credit Facility (as defined below) also contains a financial maintenance covenant that, requires the Company to maintain a first lien net leverage ratio of not greater than 4.00:1.00. The financial maintenance covenant may be waived or amended without the consent of the term loan facility lenders and contains a customary term loan facility standstill. As of December 31, 2022, the Company was in compliance with its financial maintenance covenant related to its debt obligations. The Company, based on its current forecast for the next twelve months from the date of issuance of these financial statements, expects to remain in compliance with its financial maintenance covenant and meet its debt service obligations over that same period. On November 29, 2022, the Company designated 1261229 B.C. Ltd., the entity that directly or indirectly holds 89% of the issued and outstanding shares of Bausch + Lomb, as an unrestricted subsidiary of the Company in accordance with the terms of the Company’s indentures. In connection therewith, Bausch + Lomb and its subsidiaries, are now unrestricted subsidiaries of the Company and, as a result, are no longer subject to the covenants under the relevant Bausch Health indentures, and the earnings and debt of Bausch + Lomb, as defined in the relevant indentures, are also not included in the calculation of the Company’s financial maintenance covenant. The Company continues to take steps to ensure compliance with its financial maintenance covenant and may take other actions to reduce its debt levels to align with the Company’s long-term strategy, including divesting other businesses, refinancing debt and issuing equity or equity-linked securities as deemed appropriate. Exchange Offer On September 30, 2022, the Company closed a series of transactions whereby it exchanged (the “Exchange Offer”) validly tendered senior unsecured notes with an aggregate outstanding principal balance of $5,594 million as set forth in the table below (collectively, the “Existing Unsecured Senior Notes”) for $3,125 million in aggregate principal balance of newly issued secured notes, a reduction of outstanding principal of $2,469 million. The secured notes issued in the Exchange Offer consist of: (i) $1,774 million in aggregate principal amount of new 11.00% First Lien Secured Notes due 2028 (the “11.00% First Lien Secured Notes”) issued by the Company, (ii) $352 million in aggregate principal amount of new 14.00% Second Lien Secured Notes due 2030 (the “14.00% Second Lien Secured Notes” and, together with the 11.00% First Lien Secured Notes, the “New BHC Secured Notes”) issued by the Company and (iii) $999 million in aggregate principal amount of new 9.00% Senior Secured Notes due 2028 (the “9.00% Intermediate Holdco Secured Notes” and, together with the New BHC Secured Notes, the “New Secured Notes”) issued by 1375209 B.C. Ltd. (“Intermediate Holdco”), an existing indirect wholly-owned unrestricted subsidiary of the Company that holds 38.6% of the issued and outstanding common shares of Bausch + Lomb. The aggregate principal amounts of the Existing Unsecured Senior Notes that were validly tendered and accepted by the Company in the Exchange Offer are set forth below: (in millions) 9.00% Senior Notes due 2025 $ 541 9.25% Senior Notes due 2026 752 8.50% Senior Notes due 2027 1,099 7.00% Senior Notes due 2028 540 5.00% Senior Notes due 2028 710 7.25% Senior Notes due 2029 373 6.25% Senior Notes due 2029 540 5.00% Senior Notes due 2029 371 5.25% Senior Notes due 2030 332 5.25% Senior Notes due 2031 336 Total $ 5,594 In connection with the Exchange Offer and following receipt of the requisite number of consents from noteholders, the Company and the applicable notes trustee, executed supplemental indentures to amend each of the indentures governing the 9.25% Senior Notes due 2026, 8.50% Senior Notes due 2027, 5.00% Senior Notes due 2028, 7.00% Senior Notes due 2028 and 7.25% Senior Notes due 2029, which amendments eliminate substantially all of the restrictive covenants as well as certain events of default and related provisions applicable to such series of notes. The Company performed an assessment of the Exchange Offer and determined that it met the criteria to be accounted for as a troubled debt restructuring under Accounting Standards Codification 470-60. For each series of the Existing Unsecured Senior Notes exchanged, the undiscounted cash flows associated with the New Secured Notes issued were compared to the carrying value of the Existing Unsecured Senior Notes exchanged for such New Secured Notes and the applicable exchange was accounted for as follows: (i) to the extent the undiscounted cash flows of the New Secured Notes in question were lower than the carrying value of the applicable Existing Unsecured Senior Notes exchanged, the carrying value of the applicable New Secured Notes was established at the total of these undiscounted cash flows, with a gain recorded for the remaining difference between this value and the carrying value of the applicable Existing Senior Unsecured Notes (as such, no interest expense will be recorded for the applicable New Secured Notes prospectively) and (ii) to the extent the undiscounted cash flows of the New Secured Notes in question exceeded the carrying value of the applicable Existing Unsecured Senior Notes exchanged, the carrying value of the applicable New Secured Notes was established at the carrying value of the applicable Existing Senior Unsecured Notes, and the Company established new effective interest rates based on the carrying value of the applicable Existing Unsecured Senior Notes prior to the Exchange Offer. The difference between the principal amount of the New Secured Notes and their carrying value was recorded as a premium and is included in long-term debt on the Company’s Consolidated Balance Sheet. For the three months ended September 30, 2022, the Company recorded a gain of $570 million, net of third party fees of $25 million, in connection with the Exchange Offer. The premium recorded on the New Secured Notes was $1,835 million, which will be reduced as contractual interest payments are made on the New Secured Notes. Further details of the New Secured Notes are discussed below. Senior Secured Credit Facilities Senior Secured Credit Facilities under the 2018 Restated Credit Agreement On June 1, 2018, the Company and certain of its subsidiaries as guarantors entered into the “Senior Secured Credit Facilities” under the Company’s Fourth Amended and Restated Credit and Guaranty Agreement, as amended by the First Incremental Amendment to the Restated Credit Agreement, dated as of November 27, 2018 (the “2018 Restated Credit Agreement”) with a syndicate of financial institutions and investors as lenders. Prior to the 2022 Amended Credit Agreement (as defined below), the 2018 Restated Credit Agreement provided for a revolving credit facility of $1,225 million, maturing on the earlier of June 1, 2023 and the date that is 91 calendar days prior to the scheduled maturity of indebtedness for borrowed money of the Company and Bausch Health Americas, Inc. (“BHA”) in an aggregate principal amount in excess of $1,000 million (the “2023 Revolving Credit Facility”) and term loan facilities of original principal amounts of $4,565 million and $1,500 million, maturing in June 2025 (the “June 2025 Term Loan B Facility”) and November 2025 (the “November 2025 Term Loan B Facility”), respectively. Senior Secured Credit Facilities under the 2022 Amended Credit Agreement On May 10, 2022, the Company and certain of its subsidiaries as guarantors entered into a Second Amendment (the “Second Amendment”) to the Fourth Amended and Restated Credit and Guaranty Agreement (as amended by the Second Amendment, the “2022 Amended Credit Agreement”). The 2022 Amended Credit Agreement provides for a new term loan facility with an aggregate principal amount of $2,500 million (the “2027 Term Loan B Facility”) maturing on February 1, 2027 and a new revolving credit facility of $975 million (the “2027 Revolving Credit Facility”) that will mature on the earlier of February 1, 2027 and the date that is 91 calendar days prior to the scheduled maturity of indebtedness for borrowed money of the Company and BHA in an aggregate principal amount in excess of $1,000 million. Borrowings under the 2027 Revolving Credit Facility can be made in U.S. dollars, Canadian dollars or Euros. After giving effect to the Second Amendment, the 2023 Revolving Credit Facility, June 2025 Term Loan B Facility and November 2025 Term Loan B Facility were refinanced (such refinancing, the “Credit Agreement Refinancing”), along with certain of the Company’s existing senior notes, using net proceeds from the borrowings under the 2027 Term Loan B Facility, the B+L IPO and the B+L Debt Financing (as defined below) and available cash on hand. As of December 31, 2022, the Company had drawn $470 million and $25 million of issued and outstanding letters of credit on the 2027 Revolving Credit Facility. Borrowings under the 2027 Term Loan B Facility bear interest at a rate per annum equal to, at the Company’s option, either: (a) a forward-looking term rate determined by reference to the financing rate for borrowing U.S. dollars overnight collateralized by U.S. Treasury securities (“term SOFR rate”) for the interest period relevant to such borrowing or (b) a base rate determined by reference to the highest of: (i) the prime rate (as defined in the 2022 Amended Credit Agreement), (ii) the federal funds effective rate plus 1/2 of 1.00% and (iii) the term SOFR rate for a period of one month plus 1.00% (or if such rate shall not be ascertainable, 1.50%) (provided, however that the term SOFR rate with respect to the 2027 Term Loan B Facility shall at no time be less than 0.50% per annum), in each case, plus an applicable margin. Borrowings under the 2027 Revolving Credit Facility in: (i) U.S. dollars bear interest at a rate per annum equal to, at the Company’s option, either: (a) the term SOFR rate (subject to a floor of 0.00% per annum) or (b) a U.S. dollar base rate, (ii) Canadian dollars bear interest at a rate per annum equal to, at the Company’s option, either: (a) a Canadian dollar offer rate or (b) a Canadian dollar prime and (iii) euros bear interest at a rate per annum equal to a term benchmark rate determined by reference to the cost of funds for euro deposits (“EURIBOR”) for the interest period relevant to such borrowing (subject to a floor of 0.00% per annum), in each case, plus an applicable margin. Term SOFR rate loans are subject to a credit spread adjustment ranging from 0.10%-0.25%. The applicable interest rate margin for borrowings under the 2027 Term Loan B Facility is 5.25% for term SOFR rate loans and 4.25% for U.S. dollar base rate loans. The applicable interest rate margin for borrowings under the 2027 Revolving Credit Facility ranges from 4.75% to 5.25% for term SOFR rate loans, BA rate loans and EURIBOR loans and 3.75% to 4.25% for U.S. dollar base rate loans and Canadian prime rate loans. In addition, the Company is required to pay commitment fees of 0.25%-0.50% per annum with respect to the unutilized commitments under the 2027 Revolving Credit Facility, payable quarterly in arrears. The Company also is required to pay: (i) letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on term SOFR rate borrowings under the 2027 Revolving Credit Facility on a per annum basis, payable quarterly in arrears, (ii) customary fronting fees for the issuance of letters of credit and (iii) agency fees. Subject to certain exceptions and customary baskets set forth in the 2022 Amended Credit Agreement, the Company is required to make mandatory prepayments of the loans under the Senior Secured Credit Facilities under certain circumstances, including from: (i) 100% of the net cash proceeds of insurance and condemnation proceeds for property or asset losses (subject to reinvestment rights and net proceeds thresholds), (ii) 100% of the net cash proceeds from the incurrence of debt (other than permitted debt as described in the 2022 Amended Credit Agreement), (iii) 50% of Excess Cash Flow (as defined in the 2022 Amended Credit Agreement) subject to decrease based on leverage ratios and subject to a threshold amount and (iv) 100% of net cash proceeds from asset sales (subject to reinvestment rights and net proceeds thresholds). These mandatory prepayments may be used to satisfy future amortization. The amortization rate for the 2027 Term Loan B Facility is 5.00% per annum, or $125 million, payable in quarterly installments beginning on September 30, 2022. The Company may direct that prepayments be applied to such amortization payments in order of maturity. As of December 31, 2022, the remaining mandatory quarterly amortization payments for the 2027 Term Loan B Facility were $500 million through December 2026. The 2022 Amended Credit Agreement permits the incurrence of incremental credit facility borrowings up to the greater of $1,000 million and 40% of Consolidated Adjusted EBITDA (non-GAAP) (as defined in the 2022 Amended Credit Agreement), subject to customary terms and conditions, as well as the incurrence of additional incremental credit facility borrowings subject to, in the case of secured debt, a secured leverage ratio of not greater than 3.50:1.00, and, in the case of unsecured debt, either a total leverage ratio of not greater than 6.50:1.00 or an interest coverage ratio of not less than 2.00:1.00. The 2022 Amended Credit Agreement provides that Bausch + Lomb shall initially be a “restricted” subsidiary subject to the terms of the 2022 Amended Credit Agreement covenants, but does not require Bausch + Lomb to guarantee the obligations under the 2022 Amended Credit Agreement. The 2022 Amended Credit Agreement permits the Company to designate Bausch + Lomb as an “unrestricted” subsidiary under the 2022 Amended Credit Agreement and no longer subject to the terms of the covenants thereunder provided that no event of default is continuing or will result from such designation and the total leverage ratio of Remainco (as defined in the 2022 Amended Credit Agreement) will not be greater than 7.60:1.00 on a pro forma basis. The Credit Agreement Refinancing contains provisions designed to facilitate the B+L Separation. On November 29, 2022, the Company designated 1261229 B.C. Ltd., the entity that directly or indirectly holds approximately 89% of the issued and outstanding shares of Bausch + Lomb, as an unrestricted subsidiary of the Company in accordance with the terms of the Company’s debt documents. In connection therewith, all of the subsidiaries of 1261229 B.C. Ltd., including Bausch + Lomb and its subsidiaries, are also now unrestricted subsidiaries of the Company and, as a result, are no longer subject to the covenants under the Bausch Health debt documents, and the earnings and debt of Bausch + Lomb, as defined in the relevant debt documents, are also not included in the calculation of the Company’s financial maintenance covenant. Senior Secured Credit Facilities under the B+L Credit Agreement On May 10, 2022, Bausch + Lomb entered into a credit agreement (the “B+L Credit Agreement”, and the credit facilities thereunder, the “B+L Credit Facilities”) providing for a term loan of $2,500 million with a five-year term to maturity (the “B+L Term Facility”) and a five-year revolving credit facility of $500 million (the “B+L Revolving Credit Facility” and such financing, the “B+L Debt Financing”). The B+L Credit Facilities are secured by substantially all of the assets of Bausch + Lomb and its material, wholly-owned Canadian, U.S., Dutch and Irish subsidiaries, subject to certain exceptions. The term loan is denominated in U.S. dollars, and borrowings under the revolving credit facility may be made available in U.S. dollars, euros, pounds sterling and Canadian dollars. As of December 31, 2022, the principal amount outstanding under the B+L Term Facility was $2,488 million and $2,439 million net of issuance costs. As of December 31, 2022, Bausch + Lomb had no outstanding borrowings, $24 million of issued and outstanding letters of credit and remaining availability of $476 million under its Revolving Credit Facility. The B+L Revolving Credit Facility is a source of funding for Bausch + Lomb and its subsidiaries only. Absent the payment of a dividend, which would be determined by the Board of Directors of Bausch + Lomb and paid pro rata to Bausch + Lomb’s shareholders, proceeds from the B+L Revolving Credit Facility are not available to fund the operations, investing and financing activities of Bausch Health. Borrowings under the B+L Revolving Credit Facility in: (i) U.S. dollars bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either: (a) a term Secured Overnight Financing Rate (“SOFR”)-based rate or (b) a U.S. dollar base rate, (ii) Canadian dollars bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either: (a) a Canadian Dollar Offered Rate (“CDOR”) or (b) a Canadian dollar prime rate, (iii) euros bear interest at a rate per annum equal to EURIBOR and (iv) pounds sterling bear interest at a rate per annum equal to Sterling Overnight Index Average (“SONIA”) (provided, however, that the term SOFR-based rate, CDOR, EURIBOR and SONIA shall be no less than 0.00% per annum at any time and the U.S. dollar base rate and the Canadian dollar prime rate shall be no less than 1.00% per annum at any time), in each case, plus an applicable margin. Term SOFR-based loans are subject to a credit spread adjustment of 0.10%. The applicable interest rate margins for borrowings under the B+L Revolving Credit Facility are: (i) between 0.75% to 1.75% with respect to U.S. dollar base rate or Canadian dollar prime rate borrowings and between 1.75% to 2.75% with respect to SOFR, EURIBOR, SONIA or CDOR borrowings based on Bausch + Lomb’s total net leverage ratio and (ii) after: (x) Bausch + Lomb’s senior unsecured non-credit-enhanced long term indebtedness for borrowed money receives an investment grade rating from at least two of S&P, Moody’s and Fitch and (y) the B+L Term Facility has been repaid in full in cash (the “IG Trigger”), between 0.015% to 0.475% with respect to U.S. dollar base rate or Canadian dollar prime rate borrowings and between 1.015% to 1.475% with respect to SOFR, EURIBOR, SONIA or CDOR borrowings based on Bausch + Lomb’s debt rating. In addition, Bausch + Lomb is required to pay commitment fees of 0.25% per annum in respect of the unutilized commitments under the B+L Revolving Credit Facility, payable quarterly in arrears until the IG Trigger and a facility fee between 0.110% to 0.275% of the total revolving commitments, whether used or unused, based on Bausch + Lomb’s debt rating and payable quarterly in arrears. Bausch + Lomb is also required to pay letter of credit fees on the maximum amount available to be drawn under all outstanding letters of credit in an amount equal to the applicable margin on SOFR borrowings under the B+L Revolving Credit Facility on a per annum basis, payable quarterly in arrears, as well as customary fronting fees for the issuance of letters of credit and agency fees. Borrowings under the B+L Term Facility bear interest at a rate per annum equal to, at Bausch + Lomb’s option, either (i) a term SOFR-based rate, plus an applicable margin of 3.25% or (ii) a U.S. dollar base rate, plus an applicable margin of 2.25% (provided, however, that the term SOFR-based rate shall be no less than 0.50% per annum at any time and the U.S. dollar base rate shall not be lower than 1.50% per annum at any time). Term SOFR-based loans are subject to a credit spread adjustment of 0.10%. The stated rate of interest under the Term Facility at December 31, 2022 was 7.84% per annum. Subject to certain exceptions and customary baskets set forth in the B+L Credit Agreement, Bausch + Lomb is required to make mandatory prepayments of the loans under the B+L Term Facility under certain circumstances, including from: (i) 100% of the net cash proceeds of insurance and condemnation proceeds for property or asset losses (subject to reinvestment rights, decrease based on leverage ratios and net proceeds threshold), (ii) 100% of the net cash proceeds from the incurrence of debt (other than permitted debt as described in the B+L Credit Agreement), (iii) 50% of Excess Cash Flow (as defined in the B+L Credit Agreement) subject to decrease based on leverage ratios and subject to a threshold amount and (iv) 100% of net cash proceeds from asset sales (subject to reinvestment rights, decrease based on leverage ratios and net proceeds threshold). These mandatory prepayments may be used to satisfy future amortization. The amortization rate for the B+L Term Facility is 1.00% per annum, or $25 million, and the first installment was paid on September 30, 2022. Bausch + Lomb may direct that prepayments be applied to such amortization payments in order of maturity. As of December 31, 2022, the remaining mandatory quarterly amortization payments for the B+L Term Facility were $106 million through March 2027, with the remaining term loan balance being due in May 2027. Senior Secured Notes The Senior Secured Notes are guaranteed by each of the Company’s subsidiaries that is a guarantor under the 2022 Amended Credit Agreement and existing Senior Unsecured Notes (together, the “Note Guarantors”). In connection with the closing of the B+L IPO, the redemption of the Company’s 6.125% Senior Unsecured Notes due 2025 (the “April 2025 Unsecured Notes” and the related indenture, the “April 2025 Unsecured Notes Indenture”) (as discussed below) and the related release in respect of the 2018 Restated Credit Agreement, the guarantees and related security provided by Bausch + Lomb and its subsidiaries in respect of the existing senior notes of the Company and BHA were released. The Senior Secured Notes and the guarantees related thereto are senior obligations and are secured, subject to permitted liens and certain other exceptions, by the same first priority liens that secure the Company’s obligations under the 2022 Amended Credit Agreement under the terms of the indentures governing the Senior Secured Notes. The Senior Secured Notes and the guarantees rank equally in right of repayment with all of the Company’s and Note Guarantors’ respective existing and future unsubordinated indebtedness and senior to the Company’s and Note Guarantors’ respective future subordinated indebtedness. The Senior Secured Notes and the guarantees related thereto are effectively pari passu with the Company’s and the Note Guarantors’ respective existing and future indebtedness secured by a first priority lien on the collateral securing the Senior Secured Notes and effectively senior to the Company’s and the Note Guarantors’ respective existing and future indebtedness that is unsecured, including the existing Senior Unsecured Notes, or that is secured by junior liens, in each case to the extent of the value of the collateral. In addition, the Senior Secured Notes are structurally subordinated to: (i) all liabilities of any of the Company’s subsidiaries that do not guarantee the Senior Secured Notes and (ii) any of the Company’s debt that is secured by assets that are not collateral. Upon the occurrence of a change in control (as defined in the indentures governing the Senior Secured Notes), unless the Company has exercised its right to redeem all of the notes of a series, holders of the Senior Secured Notes may require the Company to repurchase such holder’s notes, in whole or in part, at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest. 6.500% Senior Secured Notes due 2022 and 7.00% Senior Secured Notes due 2024 In March 2017, the Company issued $1,250 million aggregate principal amount of 6.500% senior secured notes due March 15, 2022 (the “March 2022 Secured Notes”) and $2,000 million aggregate principal amount of 7.000% senior secured notes due March 15, 2024 (the “March 2024 Secured Notes”), in a private placement. Interest on these notes is payable semi-annually in arrears on each March 15 and September 15. The March 2022 Secured Notes were repaid in full as part of the May 2020 Refinancing Transactions (as defined below). The March 2024 Secured Notes were repaid in full during 2021 with cash on hand and as part of the June 2021 Refinancing Transactions (as defined below). 5.500% Senior Secured Notes due 2025 On October 17, 2017, the Company issued $1,000 million, and, on November 21, 2017, the Company issued $750 million, aggregate principal amount of 5.500% Senior Secured Notes due November 2025 (the “November 2025 Secured Notes”), in a private placement. Interest on the November 2025 Secured Notes is payable semi-annually in arrears on each May 1 and November 1. The November 2025 Secured Notes are redeemable at the option of the Company, in whole or in part, at any time, at the redemption prices set forth in the indenture. 5.750% Senior Secured Notes due 2027 On March 8, 2019, BHA and the Company issued: (i) $1,000 million aggregate principal amount of 8.500% Senior Unsecured Notes due 2027 (the “January 2027 Unsecured Notes”) and (ii) $500 million aggregate principal amount of 5.750% Senior Secured Notes due August 2027 (the “August 2027 Secured Notes”), respectively, in a private placement. Interest on the August 2027 Secured Notes is payable semi-annually in arrears on each February 15 and August 15. The August 2027 Secured Notes are redeemable at the option of the Company, in whole or in part, at the redemption prices set forth in the indenture, plus accrued and unpaid interest to the date of redemption. 4.875% Senior Secured Notes due 2028 - June 2021 Refinancing Transactions On June 8, 2021, the Company issued $1,600 million aggregate principal amount of 4.875% Senior Secured Notes due June 2028 (the “June 2028 Secured Notes”) in a private placement. The proceeds and cash on hand were used to: (i) repurchase a portion and redeem the remainder of $1,600 million of the March 2024 Secured Notes, representing the remaining outstanding principal balance of the March 2024 Secured Notes and (ii) pay all fees and expenses associated with these transactions (collectively, the “June 2021 Refinancing Transactions”). The June 2021 Refinancing Transactions were accounted for as an extinguishment of debt and the Company incurred a loss on extinguishment of debt of $38 million representing the difference between the amount paid to settle the extinguished debt and the extinguished debt’s carrying value. Interest on the June 2028 Secured Notes is payable semi-annually in arrears on each June 1 and December 1. The June 2028 Secured Notes are redeemable at the option of the Company, in whole or in part, at any time on or after June 1, 2024, at the redemption prices set forth in the June 2028 Secured Notes indenture. The Company may redeem some or all of the June 2028 Secured Notes prior to June 1, 2024 at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the date of the redemption plus a “make-whole” premium. In addition, at any time prior to June 1, 2024, the Company may redeem up to 40% of the aggregate principal amount of the June 2028 Secured Notes using the net proceeds of certain equity offerings at the redemption price set forth in the June 2028 Secured Notes indenture. 6.125% Senior Secured Notes due 2027 - February 2022 Financing On February 10, 2022, the Company issued $1,000 million aggregate principal amount of 6.125% Senior Secured Notes due February 2027 (the “February 2027 Secured Notes”). The proceeds from the February 2027 Secured Notes, along with proceeds from the B+L IPO, the 2027 Term Loans and the B+L Debt Financing and cash on hand, were used to redeem the April 2025 Unsecured Notes and the Credit Agreement Refinancing as discussed below. The February 2027 Secured Notes accrue interest at a rate of 6.125% per year, payable semi-annually in arrears on each February and August. The February 2027 Secured Notes are redeemable at the option of the Company, in whole or in part, at any time on or after February 2024, at the redemption prices set forth in the indenture. The Company may redeem some or all of the February 2027 Secured Notes prior to February 2024 at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. Prior to February 2024, the Company may redeem up to 40% of the aggregate principal amount of the February 2027 Secured Notes using the proceeds of certain equity offerings at the redemption price set forth in the indenture. New BHC Secured Notes The 11.00% First Lien Secured Notes mature on September 30, 2028, and have a stated interest of 11.00% per year that is payable semi-annually in arrears on each March 30 and September 30. The 11.00% First Lien Secured Notes are redeemable, in whole or in part, at any time at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the date of redemption plus a “make-whole” premium as described in the 11.00% First Lien Secured Notes indenture. The 14.00% Second Lien Secured Notes |
PENSION AND POSTRETIREMENT EMPL
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS | PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS The Company has defined benefit plans and a participatory defined benefit postretirement medical and life insurance plan, which covers a closed grandfathered group of legacy Bausch & Lomb Holdings Incorporated (“B&L”) U.S. employees and employees in certain other countries. The U.S. defined benefit accruals were frozen as of December 31, 2004 and benefits that were earned up to December 31, 2004 were preserved. Participants continue to earn interest credits on their cash balance at an interest crediting rate that is equal to the greater of: (i) the average annual yield on 10-year treasury bonds in effect for the November preceding the plan year or (ii) 4.50%. The most significant non-U.S. plans are two defined benefit plans in Ireland. In 2011, both Ireland defined benefit plans were closed to future service benefit accruals; however, additional accruals related to annual salary increases continued. In December 2014, one of the Ireland defined benefit plans was amended effective August 2014 to eliminate future benefit accruals related to salary increases. All of the pension benefits accrued through the plan amendment date were preserved. As a result of the plan amendment, there are no active plan participants accruing benefits under the amended Ireland defined benefit plan. The U.S. postretirement benefit plan was amended effective January 1, 2005 to eliminate employer contributions after age 65 for participants who did not meet the minimum requirements of age and service on that date. The employer contributions for medical and prescription drug benefits for participants retiring after March 1, 1989 were frozen effective January 1, 2010. Effective January 1, 2014, the Company no longer offers medical and life insurance coverage to new retirees. In addition to the B&L benefit plans, outside of the U.S., a limited group of the Company’s employees are covered by defined benefit pension plans. The Company uses December 31 as the year-end measurement date for all of its defined benefit pension plans and the postretirement benefit plan. Accounting for Pension Benefit Plans and Postretirement Benefit Plan The Company recognizes in its Consolidated Balance Sheets an asset or liability equal to the over- or under-funded benefit obligation of each defined benefit pension plan and postretirement benefit plan. Actuarial gains or losses and prior service costs or credits that arise during the period but are not recognized as components of net periodic benefit cost are recognized, net of tax, as a component of Other comprehensive income (loss). The amounts included in Accumulated other comprehensive loss as of December 31, 2022 and 2021 were as follows: Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2022 2021 2022 2021 Unrecognized actuarial (losses) gains $ (35) $ (18) $ (21) $ (42) $ 3 $ (2) Unrecognized prior service credits $ — $ — $ 23 $ 25 $ 6 $ 8 Net Periodic (Benefit) Cost The table below provides the components of net periodic (benefit) cost for the Company’s defined benefit pension plans and postretirement benefit plan in 2022, 2021 and 2020: Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ 1 $ 1 $ 1 $ 4 $ 3 $ 3 $ — $ — $ — Interest cost 5 4 6 4 4 4 1 1 1 Expected return on plan assets (10) (11) (13) (4) (5) (5) — — — Amortization of net loss — — — 1 2 2 — — — Amortization of prior service credit — — — (1) (1) (1) (2) (3) (3) Settlement loss recognized 1 — — 8 8 — — — — Net periodic (benefit) cost $ (3) $ (6) $ (6) $ 12 $ 11 $ 3 $ (1) $ (2) $ (2) Benefit Obligation, Change in Plan Assets and Funded Status The table below presents components of the change in projected benefit obligation, change in plan assets and funded status for 2022 and 2021: Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2022 2021 2022 2021 Change in Projected Benefit Obligation Projected benefit obligation, beginning of year $ 220 $ 236 $ 228 $ 294 $ 35 $ 39 Service cost 1 1 4 3 — — Interest cost 5 4 4 4 1 1 Settlements (7) (4) (50) (43) — — Benefits paid (11) (11) (4) (4) (4) (3) Actuarial gain (36) (6) (54) (8) (5) (2) Currency translation adjustments — — (15) (18) — — Projected benefit obligation, end of year 172 220 113 228 27 35 Change in Plan Assets Fair value of plan assets, beginning of year 224 231 175 189 — — Actual return on plan assets (44) 8 (41) 18 — — Company contributions — — 25 28 4 3 Settlements (7) (4) (50) (43) — — Benefits paid (11) (11) (4) (4) (4) (3) Currency translation adjustments — — (12) (13) — — Fair value of plan assets, end of year 162 224 93 175 — — Funded status, end of year $ (10) $ 4 $ (20) $ (53) $ (27) $ (35) Recognized as: Other non-current assets $ — $ 4 $ 22 $ — $ — $ — Accrued and other current liabilities $ — $ — $ 3 $ 2 $ 4 $ 4 Other non-current liabilities $ 10 $ — $ 38 $ 51 $ 23 $ 31 Included in Settlement loss recognized and Settlements in the tables above are the costs and payments associated with the conversion of a portion of the Company’s defined benefit plan in Ireland to a defined contribution plan. A number of the Company’s pension benefit plans were underfunded as of December 31, 2022 and 2021, having accumulated benefit obligations exceeding the fair value of plan assets. Information for the underfunded pension benefit plans is as follows: U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2022 2021 Projected benefit obligation $ 172 $ — $ 48 $ 228 Accumulated benefit obligation 172 — 40 219 Fair value of plan assets 162 — 7 175 The Company’s policy for funding its pension benefit plans is to make contributions that meet or exceed the minimum statutory funding requirements. These contributions are determined based upon recommendations made by the actuary under accepted actuarial principles. In 2023, the Company expects to contribute $0, $4 million and $4 million to the U.S. pension benefit plan, the non-U.S. pension benefit plans and the U.S. postretirement benefit plan, respectively. The Company plans to use postretirement benefit plan assets and cash on hand, as necessary, to fund the U.S. postretirement benefit plan benefit payments in 2023. Estimated Future Benefit Payments Future benefit payments over the next 10 years for the pension benefit plans and the postretirement benefit plan, which reflect expected future service, as appropriate, are expected to be paid as follows: (in millions) Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans 2023 $ 14 $ 7 $ 4 2024 18 6 3 2025 17 6 3 2026 16 6 3 2027 17 6 3 2028-2032 70 37 10 Assumptions The weighted-average assumptions used to determine net periodic benefit costs and benefit obligations for 2022, 2021 and 2020 were as follows: Pension Benefit Plans U.S. Postretirement Benefit Plan 2022 2021 2020 2022 2021 2020 For Determining Net Periodic (Benefit) Cost U.S. Plans: Discount rate 2.69 % 2.25 % 3.16 % 2.57 % 2.09 % 3.04 % Expected rate of return on plan assets 4.50 % 5.00 % 6.25 % — — — Rate of compensation increase — — — — — — Interest crediting rate 4.75 % 4.75 % 4.75 % Non-U.S. Plans: Discount rate 4.60 % 1.37 % 1.68 % Expected rate of return on plan assets 5.23 % 2.74 % 2.98 % Rate of compensation increase 3.53 % 2.60 % 3.05 % Interest crediting rate — — — Pension Benefit Plans U.S. Postretirement Benefit Plan 2022 2021 2022 2021 For Determining Benefit Obligation U.S. Plans: Discount rate 5.41 % 2.69 % 5.39 % 2.57 % Rate of compensation increase — — — — Interest crediting rate 4.75 % 4.75 % Non-U.S. Plans: Discount rate 6.67 % 1.72 % Rate of compensation increase 3.71 % 2.63 % Interest crediting rate — — The expected long-term rate of return on plan assets was developed based on a capital markets model that uses expected asset class returns, variance and correlation assumptions. The expected asset class returns were developed starting with current Treasury (for the U.S. pension plan) or Eurozone (for the Ireland pension plans) government yields and then adding corporate bond spreads and equity risk premiums to develop the return expectations for each asset class. The expected asset class returns are forward-looking. The variance and correlation assumptions are also forward-looking. They take into account historical relationships, but are adjusted to reflect expected capital market trends. The expected return on plan assets for the Company’s U.S. pension plan for 2022 was 4.50%. The expected return on plan assets for the Company’s Ireland pension plans was 2.75% for 2022. The discount rate used to determine benefit obligations represents the current rate at which the benefit plan liabilities could be effectively settled considering the timing of expected payments for plan participants. The 2023 expected rate of return for the U.S. pension benefit plan will be 6.00%. The 2023 expected rate of return for the Ireland pension benefit plans will be 4.25%. Pension Benefit Plan Assets Pension benefit plan assets are invested in several asset categories. The following presents the actual asset allocation as of December 31, 2022 and 2021: 2022 2021 U.S. Plan Cash and cash equivalents 1 % 1 % Equity securities 40 % 30 % Fixed income securities 59 % 69 % Non-U.S. Plans Cash and cash equivalents 6 % 9 % Equity securities 23 % 31 % Fixed income securities 45 % 39 % Other 26 % 21 % The investment strategy underlying pension plan asset allocation is to manage the assets of the plan to provide for the non-current liabilities while maintaining sufficient liquidity to pay current benefits. Pension plan assets are diversified to protect against large investment losses and to reduce the probability of excessive performance volatility. Diversification of assets is achieved by allocating funds to various asset classes and investment styles within asset classes, and retaining investment management firm(s) with complementary investment philosophies, styles and approaches. The Company’s pension plan assets are managed by outside investment managers using a total return investment approach, whereby a mix of equity and debt securities investments are used to maximize the long-term rate of return on plan assets. A significant portion of the assets of the U.S. and Ireland pension plans have been invested in equity securities, as equity portfolios have historically provided higher returns than debt and other asset classes over extended time horizons. Correspondingly, equity investments also entail greater risks than other investments. Equity risks are balanced by investing a significant portion of plan assets in broadly diversified fixed income securities. Fair Value of Plan Assets The Company measured the fair value of plan assets based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 5, “FAIR VALUE MEASUREMENTS” for details on the Company’s fair value measurements based on a three-tier hierarchy. The table below presents total plan assets by investment category as of December 31, 2022 and 2021 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value. There were no transfers between Level 1 and Level 2 during 2022 and 2021. Pension Benefit Plans - U.S. Plans December 31, 2022 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 2 $ — $ — $ 2 $ 1 $ — $ — $ 1 Commingled funds: Equity securities: U.S. broad market — 34 — 34 — 36 — 36 Emerging markets — 7 — 7 — 6 — 6 Worldwide developed markets — 14 — 14 — 16 — 16 Other assets — 10 — 10 — 10 — 10 Fixed income securities: Investment grade — 95 — 95 — 155 — 155 $ 2 $ 160 $ — $ 162 $ 1 $ 223 $ — $ 224 Pension Benefit Plans - Non-U.S. Plans December 31, 2022 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 6 $ — $ 6 $ — $ 15 $ — $ 15 Commingled funds: Equity securities: Emerging markets — 1 — 1 — 3 — 3 Worldwide developed markets — 21 — 21 — 51 — 51 Fixed income securities: Investment grade — 2 — 2 — 3 — 3 Government bond funds 1 39 — 40 1 65 — 66 Other assets — 12 12 24 — 35 2 37 $ 1 $ 81 $ 12 $ 94 $ 1 $ 172 $ 2 $ 175 Cash equivalents consisted primarily of term deposits and money market instruments. The fair value of the term deposits approximates their carrying amounts due to their short term maturities. The money market instruments also have short maturities and are valued using a market approach based on the quoted market prices of identical instruments. Commingled funds are not publicly traded. The underlying assets in these funds are publicly traded on the exchanges and have readily available price quotes. The Ireland pension plans held approximately 92% and 95% of the non-U.S. commingled funds in 2022 and 2021, respectively. The commingled funds held by the U.S. and Ireland pension plans are primarily invested in index funds. The underlying assets in the fixed income funds are generally valued using the net asset value per fund share, which is derived using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. Defined Contribution Plans The Company sponsors defined contribution plans in the U.S., Ireland and certain other countries. Under these plans, employees are allowed to contribute a portion of their salaries to the plans and the Company matches a portion of the employee contributions. The Company contributed $47 million, $44 million and $43 million to these plans during the years ended December 31, 2022, 2021 and 2020, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES Right-of-use assets and lease liabilities associated with the Company’s operating leases are included in the Consolidated Balance Sheet as of December 31, 2022 and 2021 as follows: (in millions) 2022 2021 Right-of-use assets included in: Other non-current assets $ 221 $ 247 Lease liabilities included in: Accrued and other current liabilities $ 50 $ 50 Other non-current liabilities 184 214 Total lease liabilities $ 234 $ 264 As of December 31, 2022, 2021 and 2020 the Company’s finance leases were not material and for the years 2022, 2021 and 2020 sub-lease income and short-term lease expense were not material. Lease expense for the years 2022, 2021 and 2020 include: (in millions) 2022 2021 2020 Operating lease costs $ 62 $ 67 $ 65 Variable operating lease costs $ 15 $ 12 $ 12 Other information related to operating leases for 2022, 2021 and 2020 is as follows: (dollars in millions) 2022 2021 2020 Cash paid from operating cash flows for amounts included in the measurement of lease liabilities $ 70 $ 76 $ 74 Right-of-use assets obtained in exchange for new operating lease liabilities $ 28 $ 46 $ 39 Weighted-average remaining lease term 6.4 years 7.2 years 7.6 years Weighted-average discount rate 6.5 % 6.1 % 6.2 % As of December 31, 2022, future payments under noncancelable operating leases for each of the five succeeding years ending December 31 and thereafter are as follows: (in millions) 2023 $ 63 2024 49 2025 42 2026 36 2027 34 Thereafter 63 Total 287 Less: Imputed interest 53 Present value of remaining lease payments 234 Less: Current portion 50 Non-current portion $ 184 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Bausch Health’s Long-Term Incentive Plan In May 2014, shareholders approved Bausch Health’s 2014 Omnibus Incentive Plan (the “2014 Plan”), which replaced the Company’s 2011 Omnibus Incentive Plan (the “2011 Plan”) for future equity awards granted by the Company. The Company transferred the common shares available under the 2011 Plan to the 2014 Plan. The maximum number of common shares that may be issued to participants under the 2014 Plan was equal to 18,000,000 common shares, plus the number of common shares under the 2011 Plan reserved but unissued and not underlying outstanding awards and the number of common shares becoming available for reuse after awards are terminated, forfeited, cancelled, exchanged or surrendered under the 2011 Plan and the Company’s 2007 Equity Compensation Plan. The Company registered 20,000,000 common shares of common stock for issuance under the 2014 Plan. The 2014 Plan was amended and restated effective April 30, 2018 to, among other things, increase the number of common shares authorized for issuance under the 2014 Plan. Effective April 28, 2020, Bausch Health further amended and restated the Amended and Restated 2014 Plan (the “Further Amended and Restated 2014 Plan”). The Further Amended and Restated 2014 Plan includes the following amendments: (i) the number of common shares authorized for issuance under the Further Amended and Restated 2014 Plan has been increased by an additional 13,500,000 common shares, as approved by the requisite number of shareholders at the Company’s annual general meeting held on April 28, 2020, (ii) the exercise price of stock options and share appreciation rights (“SARs”) will be based on the closing price of the underlying common shares on the date such stock options or SARs are granted (rather than on the last preceding trading date), (iii) additional provisions clarifying that: (a) stock options and SARs will not be eligible for the payment of dividend or dividend equivalents and (b) the Talent and Compensation Committee of the Board of Directors of the Company cannot, without shareholder approval, seek to effect any repricing of any previously granted “underwater” stock option or SAR and (iv) other housekeeping and/or clerical changes. Effective June 21, 2022, Bausch Health further amended and restated the 2014 Plan, as subsequently amended and restated (the “Amended and Restated 2014 Plan”). Such amendment and restatement increased the number of common shares authorized for issuance under the Amended and Restated 2014 Plan by an additional 11,500,000 common shares, among other things. Approximately 18,226,000 common shares were available for future grants as of December 31, 2022. The Company uses reserved and unissued common shares to satisfy its obligation under its share-based compensation plans. Bausch Health has a long-term incentive program with the objective of aligning the share-based awards granted to senior management with the Company’s focus on improving its tangible capital usage and allocation, while maintaining focus on improving total shareholder return over the long-term. The share-based awards granted under this long-term incentive program consist of time-based stock options, time-based RSUs and performance-based RSUs. Performance-based RSUs are comprised of: (i) awards that vest upon achievement of certain share price appreciation conditions that are based on total shareholder return (“TSR”), (ii) awards that vest upon attainment of certain performance targets that are based on the Company’s return on tangible capital (“ROTC”) and (iii) vest fully or partially upon attainment of certain goals that are linked to the B+L Separation. In order to retain and incentivize certain members of Bausch Health’s senior leadership team, on September 5, 2022, the Talent and Compensation Committee of the Board of Directors approved a retention program for certain executive officers and other members of leadership. Under the retention program, certain executive officers and other members of leadership were granted a one-time award of restricted stock units (the “Retention RSU Grant”) under the Amended and Restated 2014 Plan. The Retention RSU Grants will generally vest in 1/3 installments on each of the first three The following table summarizes the components and classification of the Company’s share-based compensation expense related to stock options and RSUs for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Stock options $ 15 $ 15 $ 15 RSUs 111 113 90 Share-based compensation expense $ 126 $ 128 $ 105 Research and development expenses $ 12 $ 10 $ 11 Selling, general and administrative expenses 114 118 94 Share-based compensation expense $ 126 $ 128 $ 105 Stock Options Stock options granted under the 2011 Plan and the Amended and Restated 2014 Plan generally expire on ten The fair values of all stock options granted for the years 2022, 2021 and 2020 were estimated as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: 2022 2021 2020 Expected stock option life (years) 3.0 3.0 3.0 Expected volatility 37.8 % 50.2 % 38.7 % Risk-free interest rate 1.8 % 0.4 % 1.2 % Expected dividend yield — % — % — % The expected stock option life was determined based on historical exercise and forfeiture patterns. The expected volatility was determined based on implied volatility in the market traded options of the Company’s common stock. The risk-free interest rate was determined based on the rate at the time of grant for zero-coupon U.S. government bonds with maturity dates equal to the expected life of the stock option. The expected dividend yield was determined based on the stock option’s exercise price and expected annual dividend rate at the time of grant. The Black-Scholes option-pricing model used by the Company to calculate stock option values was developed to estimate the fair value of freely tradeable, fully transferable stock options without vesting restrictions, which significantly differ from the Company’s stock option awards. This model also requires highly subjective assumptions, including future stock price volatility and expected time until exercise, which greatly affect the calculated values. The following table summarizes stock option activity during 2022: (in millions, except per share amounts) Options Weighted- Weighted- Aggregate Outstanding, January 1, 2022 8.9 $ 27.65 Granted 2.6 $ 23.95 Exercised (0.1) $ 19.57 Expired or forfeited (0.6) $ 28.29 Outstanding, December 31, 2022 10.8 $ 26.83 6.0 $ — Vested and expected to vest, December 31, 2022 10.3 $ 26.86 5.9 $ — Vested and exercisable, December 31, 2022 6.9 $ 27.39 4.5 $ — The weighted-average fair values of all stock options granted in 2022, 2021 and 2020 were $6.60, $10.92 and $6.60, respectively. The total intrinsic values of stock options exercised in 2022, 2021 and 2020 were $1 million, $15 million and $2 million, respectively. Proceeds received on the exercise of stock options in 2022, 2021 and 2020 were $3 million, $22 million and $5 million, respectively. As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested stock options amounted to $14 million, which will be amortized over the weighted-average remaining requisite service period of approximately 1.5 years. The total fair value of stock options vested in 2022, 2021 and 2020 were $15 million, $15 million and $15 million, respectively. RSUs RSUs generally vest on the first or third anniversary date from the date of grant or 33% a year over a three-year period. Annual RSUs granted to non-management directors vest immediately prior to the next Annual Meeting of Shareholders. Pursuant to the applicable unit agreement, certain RSUs may be subject to the attainment of any applicable performance goals specified by the Board of Directors. If the vesting of the RSUs is conditional upon the attainment of performance goals, any RSUs that do not vest as a result of a determination that the prescribed performance goals failed to be attained will be forfeited immediately upon such determination. RSUs are credited with dividend equivalents, in the form of additional RSUs, when dividends are paid on the Company’s common shares. Such additional RSUs will have the same vesting dates and will vest under the same terms as the RSUs in respect of which such additional RSUs are credited. To the extent provided for in a RSU agreement, the Company may, in lieu of all or a portion of the common shares which would otherwise be provided to a holder, elect to pay a cash amount equivalent to the market price of the Company’s common shares on the vesting date for each vested RSU. The amount of cash payment will be determined based on the average market price of the Company’s common shares on the vesting date. The Company’s current intent is to settle vested RSUs through the issuance of common shares. Time-Based RSUs Each vested time-based RSU represents the right of a holder to receive one of the Company’s common shares. The fair value of each RSU granted is estimated based on the trading price of the Company’s common shares on the date of grant. The following table summarizes non-vested time-based RSU activity during 2022: (in millions, except per share amounts) Time-Based Weighted- Non-vested, January 1, 2022 5.4 $ 28.16 Granted 6.4 $ 11.44 Vested (3.0) $ 26.55 Forfeited (0.5) $ 24.63 Non-vested, December 31, 2022 8.3 $ 15.97 As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested time-based RSUs amounted to $94 million, which will be amortized over the weighted-average remaining requisite service period of approximately 1.7 years. The total fair value of time-based RSUs vested in 2022, 2021 and 2020 were $80 million, $69 million and $66 million, respectively. Performance-Based RSUs Each vested performance-based RSU represents the right of a holder to receive a number of the Company’s common shares up to a specified maximum. Performance-based RSUs vest upon achievement of certain share price appreciation conditions or attainment of certain performance targets. If the Company’s performance is below a specified performance level, no common shares will be paid. The fair value of each TSR performance-based RSU granted during 2022, 2021 and 2020 was estimated using a Monte Carlo Simulation model, which utilizes multiple input variables to estimate the probability that the performance condition will be achieved. The fair value of the ROTC performance-based RSUs is estimated based on the trading price of the Company’s common shares on the date of grant. Expense recognized for the ROTC performance-based RSUs in each reporting period reflects the Company’s latest estimate of the number of ROTC performance-based RSUs that are expected to vest. If the ROTC performance-based RSUs do not ultimately vest due to the ROTC targets not being met, no compensation expense is recognized and any previously recognized compensation expense is reversed. There were no TSR performance-based RSUs granted in 2022. The fair values of TSR performance-based RSUs granted during 2021 and 2020 were estimated with the following assumptions: 2022 2021 2020 Contractual term (years) N/A 3.0 3.0 Expected Company share volatility N/A 52% 38.6% Risk-free interest rate N/A 0.4% 1.2% The expected company share volatility was determined based on implied volatility in the market traded options of the Company’s common stock. The risk-free interest rate was determined based on the rate at the time of grant for zero-coupon U.S. government bonds with maturity dates equal to the contractual term of the performance-based RSUs. The following table summarizes non-vested performance-based RSU activity during 2022: (in millions, except per share amounts) Performance-based Weighted- Non-vested, January 1, 2022 2.3 $ 33.92 Granted 0.4 $ 9.40 Vested (1.0) $ 30.89 Forfeited (0.1) $ 34.32 Non-vested, December 31, 2022 1.6 $ 29.83 During 2022, the Company granted approximately 369,000 performance-based RSUs, consisting of ROTC performance-based RSUs with a weighted-average grant date fair value of $9.40 per RSU. As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested performance-based RSUs amounted to $7 million, which will be amortized over the weighted-average remaining requisite service period of approximately 0.4 years. A maximum of approximately 1,104,000 common shares could be issued upon vesting of the performance-based RSUs outstanding as of December 31, 2022. The total fair value of performance-based RSUs vested in 2022 was $31 million. Bausch + Lomb Long-Term Incentive Plan Prior to May 5, 2022, Bausch + Lomb participated in Bausch Health’s long-term incentive program. Effective May 5, 2022, Bausch + Lomb established the Bausch + Lomb Corporation 2022 Omnibus Incentive Plan (the “B+L Plan”). A total of 28,000,000 common shares of Bausch + Lomb are authorized under the B+L Plan. The B+L Plan provides for the grant of various types of awards including RSUs, stock appreciation rights, stock options, performance-based awards and cash awards. Under the Plan, the exercise price of awards, if any, is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock options have a term of ten years and a three-year vesting period, subject to limited exceptions. On May 5, 2022, in connection with the B+L IPO, Bausch + Lomb granted certain awards to certain eligible recipients (the “IPO Founder Grants”). Eligible recipients are individuals employed by Bausch + Lomb or employed by an affiliate of Bausch + Lomb. Approximately 3,900,000 IPO Founder Grants were issued to Bausch + Lomb executive officers and were awarded 50% in the form of stock options and 50% in the form of RSUs. Additionally, Bausch + Lomb granted approximately 5,700,000 stock options and RSUs to non-executive eligible recipients, of which approximately 4,300,000 were B+L IPO Founder Grants. The IPO Founder grants in the form of stock options have a three-year graded vesting period and the IPO Founder RSUs vest 50% in the second year and 50% in the third year after the grant. With the exception of the separation agreement and retention program, as discussed below, vesting of the IPO Founder Grants are linked to the completion of the B+L Separation and expense recognition will begin near the time of the B+L Separation. On July 19, 2022, Bausch + Lomb entered into a separation agreement in connection with the departure of its Chief Executive Officer (“CEO”). Under the terms of the separation agreement, the CEO’s IPO Founder Grants in the form of RSUs will vest upon his termination of service date (pro rated based on his period of service relative to the original three-year vesting period associated with such grants), but the shares received upon settlement will remain fully restricted and nontransferable until the earliest to occur of the distribution date, a change in control, the date the Board determines that Bausch Health will no longer pursue a distribution, and the two-year anniversary of the CEO’s termination of service date (such applicable date, the “Unrestricted Date”). Under the terms of the separation agreement, the CEO’s IPO Founder Grants in the form of stock options will vest and become exercisable (pro-rated based on his period of service relative to the original three-year vesting period associated with such grants) upon the Unrestricted Date and will remain exercisable for two years following this date. On December 22, 2022, Bausch + Lomb entered into an Amended and Restated Separation Agreement (the “A&R Separation Agreement”) in connection with the departure of Bausch + Lomb’s CEO. Under the A&R Separation Agreement, Bausch + Lomb’s CEO agreed to continue serving as CEO until at least March 4, 2023 and lasting until such date as the Board determines in its discretion or his successor is appointed, but no later than June 30, 2023. On the CEO’s termination date, in lieu of pro-rated vesting, partial vesting of a set number of the CEO’s IPO Founder Grants, in the amount of: (a) 315,592 of the CEO’s IPO Founder Grants in the form of restricted stock units will accelerate and vest, but the shares received upon settlement will still remain fully restricted and nontransferable until the Unrestricted Date and (b) 1,248,496 of the CEO’s IPO Founder Grants in the form of stock options will remain eligible to vest upon the Unrestricted Date and remain exercisable for two years following the Unrestricted Date. During the third quarter of 2022, the Talent and Compensation Committee of the Bausch + Lomb Board of Directors approved a retention program that includes Bausch + Lomb’s named executive officers (other than the CEO) and certain other employees. This program provides these Executive Officers (other than the CEO), among other benefits, pro-rata vesting of the IPO Founder Grants previously issued to these named executives, subject to certain restrictions, in the event of an involuntary termination of employment by Bausch + Lomb without “cause” or the executive’s resignation for “good reason”, in each case within the one-year anniversary of Bausch + Lomb’s appointment of the successor to the CEO (pro-rated based on the period of service relative to the original three-year vesting period associated with such grants). However, the IPO Founder Grants in the form of RSUs (while settled in connection with the termination of employment) will not be transferrable until, and the IPO Founder Grants in the form of stock options will not be exercisable until, the earliest to occur of: (i) the date the spinoff distribution is completed, (ii) a “change in control” (as defined in the applicable retention award letter), (iii) the date the Board of Directors of the Company determines that it will no longer pursue the spinoff distribution and (iv) the two-year anniversary of the executive’s termination of employment and the IPO Founder Grants in the form of stock options will be exercisable for two years following the later of this date and the termination date Additionally, these named executive officers (other than the CEO) and certain other employees were granted a one-time award of approximately 850,000 RSUs under the retention program pursuant to Bausch + Lomb’s 2022 Omnibus Incentive Plan. The retention grant will generally vest in 1/3 installments on each of the first three Approximately 17,500,000 Bausch + Lomb common shares were available for future grants as of December 31, 2022 under the B+L Plan. Bausch + Lomb uses reserved and unissued common shares to satisfy its obligations under its share-based compensation plans. Stock Options Stock options granted under the B+L Plan generally expire on the ten The fair values of all stock options granted under the Bausch + Lomb Corporation 2022 Omnibus Incentive Plan for the year 2022 were estimated as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: 2022 Expected stock option life (years) 3.0 Expected volatility 31.5 % Risk-free interest rate 3.1 % Expected dividend yield — % The expected stock option life was determined based on historical exercise and forfeiture patterns associated with historical stock options granted to Bausch + Lomb employees under BHC’s long-term incentive plan. The expected volatility was determined based on implied and historical volatility of Bausch + Lomb’s selected peer companies. Bausch + Lomb will continue to leverage BHC’s historical stock option experience and peer company data until it has sufficient experience with its own equity awards and market data. The risk-free interest rate was determined based on the rate at the time of grant for zero-coupon U.S. government bonds with maturity dates equal to the expected life of the stock option. The expected dividend yield was determined based on the stock option’s exercise price and expected Bausch + Lomb annual dividend rate at the time of grant. The Black-Scholes option-pricing model used by the Company to calculate stock option values was developed to estimate the fair value of freely tradable, fully transferable stock options without vesting restrictions, which significantly differ from Bausch + Lomb’s stock option awards. This model also requires highly subjective assumptions, including future stock price volatility and expected time until exercise, which greatly affect the calculated values. The following table summarizes stock option activity under Bausch + Lomb’s Plan during 2022: (in millions, except per share amounts) Options Weighted- Weighted- Aggregate Outstanding, January 1, 2022 — $ — Granted 6.4 $ 18.00 Exercised — $ — Expired or forfeited (0.1) $ 18.00 Outstanding, December 31, 2022 6.3 $ 18.00 9.4 $ — Vested and expected to vest, December 31, 2022 1.2 $ 18.00 4.5 $ — Vested and exercisable, December 31, 2022 — $ — 0 $ — The weighted-average fair values of all stock options granted in 2022 were $3.84. There were no stock options exercised in 2022. As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested stock options amounted to $4 million, which will be amortized over the weighted-average remaining requisite service period of approximately 0.7 years. Unrecognized compensation does not include IPO Founder Grants as they are linked to the completion of the Separation and expense recognition will begin near the time of the separation. There were no stock options that vested during 2022. RSUs RSUs under the Bausch + Lomb Corporation 2022 Omnibus Incentive Plan generally vest 33% a year over a three-year period with the exception of IPO Founder RSUs which vest 50% in the second year and 50% in the third year after the grant. RSUs are credited with dividend equivalents, in the form of additional RSUs, when dividends are paid on the Bausch + Lomb’s common shares. Such additional RSUs will have the same vesting dates and will vest under the same terms as the RSUs in respect of which such additional RSUs are credited. To the extent provided for in a RSU agreement, Bausch + Lomb may, in lieu of all or a portion of the common shares which would otherwise be provided to a holder, elect to pay a cash amount equivalent to the market price of the Company’s common shares on the vesting date for each vested RSU. The amount of cash payment will be determined based on the average market price of the Company’s common shares on the vesting date. The Company’s current intent is to settle vested RSUs through the issuance of common shares. Each vested RSU represents the right of a holder to receive one of the Company’s common shares. The fair value of each RSU granted is estimated based on the trading price of the Company’s common shares on the date of grant. The following table summarizes non-vested time-based RSU activity under Bausch + Lomb’s Plan during 2022: (in millions, except per share amounts) Performance-based Weighted- Non-vested, January 1, 2022 — $ — Granted 4.3 $ 16.70 Vested — $ — Forfeited (0.1) $ 17.93 Non-vested, December 31, 2022 4.2 $ 16.67 As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested time-based RSUs amounted to $41 million, which will be amortized over the weighted-average remaining requisite service period of approximately 1.5 years. Unrecognized compensation does not include IPO Founder Grants as they are linked to the completion of the Separation and expense recognition will begin near the time of the separation. The total fair value of time-based RSUs vested in 2022 was not material. In addition, while Bausch + Lomb did not grant performance-based RSUs during 2022, certain Bausch + Lomb employees continued to participate in BHC’s performance-based RSUs granted prior to May 5, 2022. As of December 31, 2022, the total remaining unrecognized compensation expense related to non-vested performance-based RSUs amounted to $4 million, which will be amortized over the weighted-average remaining requisite service period of approximately 0.2 years. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss as of December 31, 2022 and 2021 consists of: (in millions) 2022 2021 Foreign currency translation adjustment $ (2,038) $ (1,905) Pension adjustment, net of tax (18) (19) Accumulated other comprehensive loss $ (2,056) $ (1,924) Income taxes are not provided for foreign currency translation adjustments arising on the translation of the Company’s operations having a functional currency other than the U.S. dollar, except to the extent of translation adjustments related to the Company’s retained earnings for foreign jurisdictions in which the Company is not considered to be permanently reinvested. As a result of the change in the Company’s ownership interest in Bausch + Lomb, the carrying amount of accumulated other comprehensive income was adjusted to reflect the change in the ownership interest in Bausch + Lomb through a corresponding credit of $137 million to equity attributable to the Company. |
RESEARCH AND DEVELOPMENT
RESEARCH AND DEVELOPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Research and Development [Abstract] | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT Included in Research and development are costs related to product development and quality assurance programs. Quality assurance are the costs incurred to meet evolving customer and regulatory standards. Research and development costs for the years 2022, 2021 and 2020 consists of: (in millions) 2022 2021 2020 Product related research and development $ 500 $ 440 $ 420 Quality assurance 29 25 32 Research and development $ 529 $ 465 $ 452 |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE, NET | OTHER EXPENSE, NET Other expense, net for the years 2022, 2021 and 2020 consists of: (in millions) 2022 2021 2020 Litigation and other matters $ 9 $ 356 $ 422 Acquired in-process research and development costs 1 8 32 Net gain on sale of assets (5) (2) (1) Acquisition-related contingent consideration 29 11 48 Other, net 1 — 1 Other expense, net $ 35 $ 373 $ 502 In 2021, Litigation and other matters of $356 million includes adjustments related to the Glumetza Antitrust Litigation, partially offset by insurance recoveries related to certain litigation matters. In 2020, Litigation and other matters of $422 million includes net charges related to the U.S. Securities Litigation, the SEC Investigation and the Canadian Securities Litigation and related opt-outs. In 2020, Litigation and other matters also includes an insurance recovery related to a certain litigation matter. Certain of these matters and other significant matters are discussed in further detail in Note 20, “LEGAL PROCEEDINGS”. Net gain on sales of assets includes $25 million related to the achievement of a milestone related to a certain product and a $26 million loss upon completion of the Amoun Sale during 2021. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of Loss before income taxes for 2022, 2021 and 2020 consist of: (in millions) 2022 2021 2020 Domestic $ 64 $ (323) $ (410) Foreign (193) (701) (524) $ (129) $ (1,024) $ (934) The components of (Provision for) benefit from income taxes for 2022, 2021 and 2020 consist of: (in millions) 2022 2021 2020 Current: Domestic $ (15) $ (23) $ (8) Foreign (256) 74 (216) (271) 51 (224) Deferred: Domestic 14 20 9 Foreign 174 16 590 188 36 599 $ (83) $ 87 $ 375 The (Provision for) benefit from income taxes differs from the expected amount calculated by applying the Company’s Canadian statutory rate of 26.9% to Loss before income taxes for 2022, 2021 and 2020 as follows: (in millions) 2022 2021 2020 Loss before income taxes $ (129) $ (1,024) $ (934) (Provision for) benefit from income taxes Expected benefit from income taxes at Canadian statutory rate $ 35 $ 275 $ 251 Non-deductible amount of share-based compensation (19) (9) (9) Adjustments to tax attributes 53 (59) 26 Change in valuation allowance related to foreign tax credits and NOLs 100 28 62 Change in valuation allowance on Canadian deferred tax assets and tax rate changes 24 40 687 Change in uncertain tax positions (50) 112 (163) Foreign tax rate differences (57) (198) (128) Non-deductible portion of Goodwill impairments (175) (99) — Tax benefit on intra-entity transfers — — (338) Other 6 (3) (13) $ (83) $ 87 $ 375 Other consists of immaterial adjustments affecting the tax provision such as those related to the filing of tax returns. Deferred tax assets and liabilities as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Deferred tax assets: Tax loss carryforwards $ 2,872 $ 2,973 Provisions 859 991 Debt discounts and deferred financing costs 370 — Research and development tax credits 140 173 Scientific Research and Experimental Development pool 48 52 Tax credit carryforwards 14 14 Deferred revenue 2 3 Prepaid expenses 26 26 Share-based compensation 22 17 Other 24 38 Total deferred tax assets 4,377 4,287 Less valuation allowance (2,023) (2,222) Deferred tax assets net of valuation allowance 2,354 2,065 Deferred tax liabilities: Intangible assets 191 188 Plant, equipment and technology 74 44 Outside basis differences 125 110 Total deferred tax liabilities 390 342 Net deferred tax asset $ 1,964 $ 1,723 The following table presents a reconciliation of the deferred tax asset valuation allowance for 2022, 2021 and 2020: (in millions) 2022 2021 2020 Balance, beginning of year $ 2,222 $ 2,252 $ 2,831 Charged to Benefit from income taxes (124) (63) (773) Charged to other accounts (75) 33 194 Balance, end of year $ 2,023 $ 2,222 $ 2,252 The Company’s U.S. interest expense is subject to limitation rules which limit U.S. interest expense to 30% of adjusted taxable income, defined similar to EBITDA through 2021 and EBIT thereafter. Disallowed interest can be carried forward indefinitely and any unused interest deduction assessed for recoverability. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act also amended the annual limitation on the deduction of interest in the following respects: (i) increasing the limitation to 50% of adjusted taxable income (“ATI”), (ii) providing a rule for a partnership’s 2019 section 163(j)-disallowed interest expense and (iii) allowing an election to apply 2019 ATI to the 2020 section 163(j) computation. For corporations, the increase to 50% of ATI applies to all taxable years beginning in 2019 or 2020 and permits taxpayers whose 2020 income will decrease from its 2019 level, an election to apply their 2019 ATI, rather than their 2020 ATI, to their 2020 computation. The Company considered such provisions and expects to fully utilize any interest carry forwards in future periods. The Company has provided for income taxes in accordance with guidance issued by accounting regulatory bodies, the U.S. Internal Revenue Service and state and local governments through the date of the issuance of these Consolidated Financial Statements. Additional guidance and interpretations can be expected and such guidance, if any, could impact future results. While management continues to monitor these matters, the ultimate impact, if any, as a result of the application of any guidance issued in the future cannot be determined at this time. The realization of deferred tax assets is dependent on the Company generating sufficient domestic and foreign taxable income in the years that the temporary differences become deductible. A valuation allowance has been provided for the portion of the deferred tax assets that the Company determined is more likely than not to remain unrealized based on estimated future taxable income and tax planning strategies. In 2022, the valuation allowance decreased $199 million primarily due to book taxable income in Canada and the expiration of tax losses in the United States. In 2021, the valuation allowance decreased by $30 million primarily due to book taxable income in Canada, the change in deferred tax assets in Canada and the use of deferred tax assets in the U.S. in connection with internal restructurings. As of December 31, 2022 and 2021, the Company had accumulated taxable losses available to offset future years’ federal and provincial taxable income in Canada of approximately $5,878 million and $6,669 million, respectively. As of December 31, 2022 and 2021, unclaimed ITCs available to offset future federal taxes in Canada were approximately $27 million and $31 million, respectively, which expire in the years 2023 through 2043. In addition, as of December 31, 2022 and 2021, pooled SR&ED expenditures available to offset against future taxable income in Canada were approximately $188 million and $196 million, respectively, which may be carried forward indefinitely. As of December 31, 2022 and 2021, a full valuation allowance against the net Canadian deferred tax assets on the parent company has been provided of $1,869 million and $1,965 million, respectively. As of December 31, 2022 and 2021, the Company had accumulated taxable losses available to offset future years’ federal taxable income in the U.S. of approximately $241 million and $266 million, respectively, including acquired losses which expire in the years 2023 through 2033. While the remaining taxable losses are subject to multiple annual loss limitations as a result of previous ownership changes, the Company believes that the recoverability of the deferred tax assets associated with these taxable losses are more likely than not to be realized. As of December 31, 2022 and 2021 U.S. research and development credits available to offset future years’ federal income taxes in the U.S. were approximately $75 million and $119 million, respectively, which includes acquired research and development credits and which expire in the years 2023 through 2042. As of December 31, 2022 and 2021, the Company had accumulated taxable losses available to offset future years’ taxable income in Ireland of approximately $10,691 million and $10,040 million, respectively. As of December 31, 2022, the Company continues to have a capital loss which is offset by a valuation allowance on the portion of the loss for which a benefit is not expected to be realized. The Company provides for income taxes on the unremitted earnings of its direct foreign affiliates except for its direct U.S. subsidiaries. The Company continues to assert that the unremitted earnings of its U.S. subsidiaries will be permanently reinvested and not repatriated. As of December 31, 2022, the Company estimates that there will be no tax liability attributable to unremitted earnings of its U.S. subsidiaries. However, future distributions could be subject to U.S. withholding tax. As of December 31, 2022 and 2021, unrecognized tax benefits (including interest and penalties) were $881 million and $927 million, of which $384 million and $217 million would affect the effective income tax rate, respectively. In 2022 and 2021, the remaining unrecognized tax benefits would not impact the effective tax rate as the tax positions are offset against existing tax attributes or are timing in nature. In 2022 and 2021, the Company recognized net increases to unrecognized tax benefits for current year tax positions of $156 million and $79 million, respectively. The Company recognized a net reduction of $203 million during 2022 and a net reduction of $177 million during 2021 in the unrecognized tax benefits related to tax positions taken in the prior years. The Company provides for interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of December 31, 2022 and 2021, accrued interest and penalties related to unrecognized tax benefits were approximately $32 million and $41 million, respectively. In 2022, the Company recognized a net decrease of approximately $9 million and, in 2021, recognized an increase of $8 million of interest and penalties, respectively. The Company and one or more of its subsidiaries file federal income tax returns in Canada, the U.S., and other foreign jurisdictions, as well as various provinces and states in Canada and the U.S. The Company and its subsidiaries have open tax years, primarily from 2013 to 2021, with significant taxing jurisdictions, respectively, including Canada and the U.S. These open years contain certain matters that could be subject to differing interpretations of applicable tax laws and regulations and tax treaties, as they relate to the amount, timing, or inclusion of revenues and expenses, or the sustainability of income tax positions of the Company and its subsidiaries. Certain of these tax years are expected to remain open indefinitely. Jurisdiction: Open Years United States - Federal 2015 - 2021 Canada 2012 - 2021 Germany 2014 - 2021 France 2013 - 2021 Ireland 2018 - 2021 Australia 2018 - 2021 Luxembourg 2017 - 2021 The Internal Revenue Service (the “IRS”) completed its examinations of the Company’s U.S. consolidated federal income tax returns for the years 2013 and 2014. There were no material adjustments to the Company’s taxable income as a result of these examinations. However, the 2014 tax year remains open to the extent of a 2017 capital loss carried back to that year. The Company’s annual tax filings for 2015 and 2016 and short period tax return for the period ended September 8, 2017, which was filed as a result of the Company’s internal restructuring efforts during 2017 is currently under IRS examination. As part of its examination, the Company received a notice of proposed adjustment from the IRS that would disallow the 2017 Capital Loss resulting from its internal restructuring. The Company has contested this proposed tax deficiency through the IRS administrative appeals process, and if necessary, will continue to contest any proposed tax deficiency through appropriate litigation. Accordingly, no income tax provision has been recorded as of December 31, 2022. If the Company were ultimately unsuccessful in defending its position, and all or a substantial portion of the 2017 capital loss deduction were disallowed, the Company estimates, in a worst-case scenario, that it could be liable for additional income taxes (excluding penalties and interest) of up to $2,100 million, which could have an adverse effect on the Company’s financial condition and results of operations. In January 2023, as part of an alternative dispute resolution process with the IRS, the Company has reached a tentative settlement on the 2017 Capital Loss. This tentative settlement is subject to further review and approvals before it is finalized. The Company expects that the tentative settlement, if finalized without further modification, will affect the Company’s 2023 income tax provision, and while such settlement may be material to the Company’s results of operations or cash flows in the quarter in which it is recorded, will not be material to its results of operations or cash flows for the year ended December 31, 2023. The Company is currently under examination by the Canada Revenue Agency (“CRA”) for three separate cycles: (a) years 2012 through 2013 (b) years 2014 through 2015, and (c) years 2016 through 2017. The Company believes that the CRA will open an audit cycle for the years 2018 – 2019 in 2023. The Company settled the tax years from 2005 through 2009 with the CRA. The Company had previously filed a Notice of Objection related to the assessment of these years and reduced net operating losses with a full valuation allowance by CAD 44 million to close these years. The adjustment did not result in a material change to the provision for income taxes. The CRA audits of the 2010 and 2011 tax years were closed in 2016 and resulted in no material adjustments. The Company received an assessment for certain transfer pricing matters in 2012 and 2013 for CAD 85 million and CAD 90 million, respectively. The Company disagrees with the adjustments and has filed a Notice of Objection for 2012 and 2013. The Company settled certain transfer pricing matters relating the 2015 and 2016 tax years resulting in a reduction to its NOLs of approximately CAD 21 million for 2015 and CAD 23 million for 2016. The adjustments for 2015 and 2016 will reduce NOLs currently offset by a full valuation allowance. The Company’s subsidiaries in Germany are under audit for tax years 2014 through 2016. At this time, the Company does not expect that proposed adjustments, if any, would be material to the Company’s Consolidated Financial Statements. On November 8, 2022 the Company’s affiliate in Netherlands received an assessment from the Luxembourg Tax Authorities as successor in interest to its affiliate in Luxembourg for tax years 2018 – 2019 for €271.7 million. The Company is vigorously defending its position and no reserves have been recorded. The Company’s subsidiaries in Australia were under audit by the Australian Tax Office for various years beginning in 2010. On August 8, 2017, the Australian Taxation Office (“ATO”) issued a notice of assessment for the tax years 2011 through 2017 in the aggregate amount of $117 million, which includes penalties and interest. On April 13, 2022, the Company and the ATO entered into a settlement agreement resulting in an immaterial income tax provision. The Company’s U.S. affiliates remain under examination for various state tax audits in the U.S. for years 2015 through 2021. Certain affiliates of the Company in regions outside of Canada, the U.S., Germany, Luxembourg and Australia are currently under examination by relevant taxing authorities, and all necessary accruals have been recorded, including uncertain tax benefits. At this time, the Company does not expect that proposed adjustments, if any, would be material to the Company’s Consolidated Financial Statements. The following table presents a reconciliation of the unrecognized tax benefits for 2022, 2021 and 2020: (in millions) 2022 2021 2020 Balance, beginning of year $ 927 $ 1,025 $ 1,002 Additions based on tax positions related to the current year 156 79 66 Additions for tax positions of prior years 10 121 171 Reductions for tax positions of prior years (127) (129) (209) Lapse of statute of limitations (85) (169) (5) Balance, end of year $ 881 $ 927 $ 1,025 The Company believes it is reasonably possible that the total amount of unrecognized tax benefits at December 31, 2022 could decrease by approximately $4 million in the next twelve months as a result of the resolution of certain tax and transfer pricing audits and other events. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | LOSS PER SHARE Basic and diluted loss per share attributable to Bausch Health Companies Inc. for 2022, 2021 and 2020 was calculated as follows: (in millions, except per share amounts) 2022 2021 2020 Net loss attributable to Bausch Health Companies Inc. $ (225) $ (948) $ (560) Basic and diluted weighted-average common shares outstanding 362.0 358.9 355.0 Basic and diluted loss per share attributable to Bausch Health Companies Inc. $ (0.62) $ (2.64) $ (1.58) In 2022, 2021 and 2020, all potential common shares issuable for stock options and RSUs were excluded from the calculation of diluted loss per share, as the effect of including them would have been anti-dilutive. The dilutive effect of potential common shares issuable for stock options and RSUs on the weighted-average number of common shares outstanding would have been approximately 1,851,000, 4,932,000 and 3,154,000 common shares for 2022, 2021 and 2020, respectively. Additionally, in 2022, 2021 and 2020, stock options, time-based RSUs and performance-based RSUs to purchase approximately 14,396,000, 3,428,000 and 9,551,000 common shares of the Company, respectively, were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive under the treasury stock method. During 2022 and 2021, an additional 156,000 performance-based RSUs were not included in the computation of diluted earnings per share as the required performance conditions had not been met. |
SUPPLEMENTAL CASH FLOW DISCLOSU
SUPPLEMENTAL CASH FLOW DISCLOSURES | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | SUPPLEMENTAL CASH FLOW DISCLOSURES Supplemental cash flow disclosures for 2022, 2021 and 2020 are as follows: (in millions) 2022 2021 2020 Other payments Interest paid $ 1,540 $ 1,419 $ 1,474 Income taxes paid $ 266 $ 240 $ 162 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS | LEGAL PROCEEDINGS From time to time, the Company becomes involved in various legal and administrative proceedings, which include product liability, intellectual property, commercial, tax, antitrust, governmental and regulatory investigations, related private litigation and ordinary course employment-related issues. From time to time, the Company also initiates actions or files counterclaims. The Company could be subject to counterclaims or other suits in response to actions it may initiate. The Company believes that the prosecution of these actions and counterclaims is important to preserve and protect the Company, its reputation and its assets. Certain of these proceedings and actions are described below. Going forward, in the Company’s subsequent Quarterly Reports on Form 10-Q, the Company will only include a description of these matters to the extent there has been a material update with respect thereto during the applicable quarter or to the extent otherwise required by law. On a quarterly basis, the Company evaluates developments in legal proceedings, potential settlements and other matters that could increase or decrease the amount of the liability accrued. As of December 31, 2022, the Company’s Consolidated Balance Sheets includes accrued current loss contingencies of $326 million related to matters which are both probable and reasonably estimable. For all other matters, unless otherwise indicated, the Company cannot reasonably predict the outcome of these legal proceedings, nor can it estimate the amount of loss, or range of loss, if any, that may result from these proceedings. An adverse outcome in certain of these proceedings could have a material adverse effect on the Company’s business, financial condition and results of operations, and could cause the market value of its common shares and/or debt securities to decline. Governmental and Regulatory Inquiries Investigation by the U.S. Attorney’s Office for the District of Massachusetts - re OraPharma In August 2019, the Company received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts (Department of Justice), requesting materials including documents concerning the sales, marketing, coverage and reimbursement of Arestin ® , including related support services, and other matters. In February 2023, the Company’s subsidiary OraPharma, Inc. entered into a civil settlement agreement with the Department of Justice fully resolving this investigation. Under the terms of the settlement, OraPharma, Inc. has paid a settlement payment of $100,000, plus payment of additional immaterial amounts in applicable interest and other related costs, to resolve the civil False Claims Act (“FCA”) investigation. A related complaint brought by a former OraPharma employee pursuant to the FCA and certain state statutes will be dismissed. Investigation by the U.S. Attorney’s Office for the District of Iowa – re OrthoDerm The Company received a Civil Investigative Demand in May 2021 from the Civil Division of the United States Department of Justice and the United States Attorney’s Office for the District of Iowa, requesting documents and other information concerning the sales and marketing of Bryhali ® , Duobrii ® , Jublia ® , and Siliq ® . The Company is cooperating with this investigation. The Company cannot predict the outcome or the duration of this investigation or any other legal proceedings or any enforcement actions or other remedies that may be imposed on the Company arising out of this investigation. Securities and RICO Class Actions and Related Matters U.S. Securities Litigation - Opt-Out Litigation On December 16, 2019, the Company announced that it had agreed to settle, subject to final court approval, the consolidated securities class action filed in the U.S. District Court for the District of New Jersey (In re Valeant Pharmaceuticals International, Inc. Securities Litigation, Case No. 15-cv-07658) (the “Securities Class Action Settlement”). On January 31, 2021, the District Court issued an order granting final approval of this settlement. On February 4, 2021, Timber Hill LLC (“Timber Hill”) filed a notice of appeal of the Court’s final approval order, which overruled its objections to the allocation of settlement proceeds as between common stock and options. On March 1, 2021, Cathy Lochridge filed a notice of appeal of the Court’s final approval order, which overruled her objections as to the attorneys’ fees awarded to class counsel. On October 14, 2021, Timber Hill dismissed its appeal of the final approval order. On December 20, 2021, the Third Circuit denied Lochridge’s appeal. On January 3, 2022, Lochridge filed a petition for rehearing of the appeal en banc. On May 12, 2022, the Third Circuit denied Lochridge’s petition for rehearing en banc. The deadline for Lochridge to file a petition for a writ of certiorari with the U.S. Supreme Court was August 10, 2022 and no petition was filed. As such, the deadline for further appeals has passed and the settlement has become final pursuant to the stipulation of settlement. The matter is now concluded with respect to the Company and all claims have been resolved and discharged as to the Company and its current/former officers and directors. In October 2015, four putative securities class actions were filed in the U.S. District Court for the District of New Jersey against the Company and certain current or former officers and directors. The allegations related to, among other things, allegedly false and misleading statements and/or failures to disclose information about the Company’s business and prospects, including relating to drug pricing, the Company’s use of specialty pharmacies, and the Company’s relationship with Philidor Rx Services, LLC (“Philidor”). On May 31, 2016, the court entered an order consolidating the four actions under the caption In re Valeant Pharmaceuticals International, Inc. Securities Litigation, Case No. 15-cv-07658. On December 16, 2019, the Company, the current or former officers and directors, ValueAct, and the underwriters announced that they agreed to resolve the securities action for $1,210 million, subject to final court approval. This settlement received final approval from the court on January 31, 2021 and resolved and discharged all claims against the Company in the class action. As part of the settlement, the Company and the other settling defendants admitted no liability as to the claims against it and deny all allegations of wrongdoing. The settlement was subject to appeal of the final court approval (as such appeal is further described above). In order to qualify for a settlement payment all persons and entities that purchased or otherwise acquired the Company securities during the class period must have submitted a proof of claim and release form by May 6, 2020. The settlement payments were paid into an escrow account in accordance with the payment schedule outlined in the settlement agreement. During 2022, the Company’s rights to the funds previously paid into the escrow account have been extinguished in accordance with the settlement agreement. On June 6, 2018, a putative class action was filed in the U.S. District Court for the District of New Jersey against the Company and certain current or former officers and directors. This action, captioned Timber Hill LLC, v. Valeant Pharmaceuticals International, Inc., et al., (Case No. 18-cv-10246), asserts securities fraud claims under Sections 10(b) and 20(a) of the Exchange Act on behalf of a putative class of persons who purchased call options or sold put options on the Company’s common stock during the period January 4, 2013 through August 11, 2016. On June 11, 2018, this action was consolidated with In re Valeant Pharmaceuticals International, Inc. Securities Litigation, (Case No. 15-cv-07658). On January 14, 2019, the defendants filed a motion to dismiss the Timber Hill complaint. Briefing on that motion was completed on February 13, 2019. On August 15, 2019, the Court denied the motion to dismiss the Timber Hill action, holding that this complaint was a legal nullity as a result of the June 11, 2018 consolidation order. In addition to the consolidated putative class action, thirty-seven groups of individual investors in the Company’s stock and debt securities have chosen to opt out of the consolidated putative class action and filed securities actions in the U.S. District Court for the District of New Jersey against the Company and certain current or former officers and directors. These actions are captioned: T. Rowe Price Growth Stock Fund, Inc. v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-5034) (“T. Rowe.”); Equity Trustees Limited as Responsible Entity for T. Rowe Price Global Equity Fund v. Valeant Pharmaceuticals International Inc. (Case No. 16-cv-6127) (“Equity Trustees”); Principal Funds, Inc. v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-6128) (“Principal Funds”); BloombergSen Partners Fund LP v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7212) (“Bloombergsen”); Discovery Global Citizens Master Fund, Ltd. v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7321); MSD Torchlight Partners, L.P. v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7324); BlueMountain Foinaven Master Fund, L.P. v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7328) (“BlueMountain”); Incline Global Master LP v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7494); VALIC Company I v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7496); Janus Aspen Series v. Valeant Pharmaceuticals International, Inc. (Case No. 16-cv-7497) (“Janus Aspen”); Okumus Opportunistic Value Fund, LTD v. Valeant Pharmaceuticals International, Inc. (Case No. 17-cv-6513); Lord Abbett Investment Trust- Lord Abbett Short Duration Income Fund, v. Valeant Pharmaceuticals International, Inc. (Case No. 17-cv-6365) (“Lord Abbett”); Pentwater Equity Opportunities Master Fund LTD v. Valeant Pharmaceuticals International, Inc., et al. (Case No. 17-cv-7552) (“Pentwater”); Public Employees’ Retirement System of Mississippi v. Valeant Pharmaceuticals International Inc. (Case No. 17-cv-7625) (“Mississippi”); The Boeing Company Employee Retirement Plans Master Trust v. Valeant Pharmaceuticals International Inc., et al., (Case No. 17-cv-7636); State Board of Administration of Florida v. Valeant Pharmaceuticals International Inc. (Case No. 17-cv-12808); The Regents of the University of California v. Valeant Pharmaceuticals International, Inc. (Case No. 17-cv-13488) (“UC Regents”); GMO Trust v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-0089); Första AP Fonden v. Valeant Pharmaceuticals International, Inc. (Case No. 17-cv-12088); New York City Employees’ Retirement System v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-0032) (“NYCERS”); Hound Partners Offshore Fund, LP v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-08705) (“Hound Partners”); Blackrock Global Allocation Fund, Inc. v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-0343); Colonial First State Investments Limited As Responsible Entity for Commonwealth Global Shares Fund 1 v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-0383); Bharat Ahuja v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-0846); Brahman Capital Corp. v. Valeant Pharmaceuticals International, Inc (Case No. 18-cv-0893); The Prudential Insurance Company of America v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-01223); Senzar Healthcare Master Fund LP v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-02286) (“Senzar”); 2012 Dynasty UC LLC v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-08595); Catalyst Dynamic Alpha Fund v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-12673) (“Catalyst”); Northwestern Mutual Life Insurance Co., v. Valeant Pharmaceuticals International, Inc. (Case No. 18-cv-15286); Bahaa Aly, et al. v. Valeant Pharmaceuticals International, Inc., (Case No. 18-cv-17393) (“Aly”); Office of the Treasurer as Trustee for the Connecticut Retirement Plans and Trust Funds v. Valeant Pharmaceuticals International, Inc. (Case No. 19-cv-18473) (“Connecticut”); Delaware Public Employees’ Retirement System v. Valeant Pharmaceuticals International, Inc. (Case No. 19-cv-18475) (“Delaware”); Maverick Neutral Levered Fund v. Valeant Pharmaceuticals International, Inc. (Case No. 20-cv-02190); Templeton v. Valeant Pharmaceuticals International, Inc. (Case No. 20-cv-05478); USAA Mutual Funds Trust, et al. v. Valeant Pharmaceuticals International, Inc., et al., (Case No. 20-cv-07462); and GIC Private Ltd. v. Valeant Pharmaceuticals International, Inc., (Case No. 20-cv-07460). Sixteen of the thirty-seven opt-out actions have been dismissed; and the total number of remaining opt-out actions pending in the District of New Jersey is twenty-one actions. These individual shareholder actions assert claims under Sections 10(b) and 20(a) of the Exchange Act. Certain of these individual actions assert additional claims, including claims under Section 18 of the Exchange Act, Sections 11, 12(a)(2) and 15 of the Securities Act, common law fraud, negligent misrepresentation, and claims under the New Jersey Racketeer Influenced and Corrupt Organizations Act. These claims are based on alleged purchases of Company stock, options, and/or debt at various times between January 3, 2013 and August 10, 2016. The allegations in the complaints are similar to those made by plaintiffs in the putative class action. Motions to dismiss were filed in many of these individual actions and the Court has dismissed state law claims including New Jersey Racketeer Influenced and Corrupt Organizations Act, common law fraud, and negligent misrepresentation claims in certain cases. On January 7, 2019, the Court entered a stipulation of voluntary dismissal in the Senzar opt-out action, closing the case. On September 10, 2019, the Court granted defendants’ motion to dismiss all claims in the Aly opt-out action. On October 9, 2019, the Aly Plaintiffs filed a notice of appeal to the United States Court of Appeals for the Third Circuit. On June 16, 2021, the Court of Appeals granted plaintiffs’ appeal in the Aly action. This action has been remanded to the District Court. On June 19, 2020, the Court entered stipulations of voluntary dismissal in the Catalyst, Mississippi, Connecticut and Delaware actions. On July 13, 2020, the Court entered a stipulation of voluntary dismissal in the NYCERS action. On December 30, 2020, the Court entered a stipulation of voluntary dismissal in the BlueMountain action. On February 18, 2021, and March 10, 2021, the Court entered stipulations of voluntary dismissal in the T. Rowe, BloombergSen, Principal Funds, Pentwater, Lord Abbett, Equity Trustees and UC Regents actions. On April 30, 2021, the Court entered a stipulation of voluntary dismissal in the Florida SBA action. On July 20, 2021, the Court entered a stipulation of voluntary dismissal in the Janus action. Discovery in the opt-out actions has concluded. Motions for summary judgment were filed on August 1, 2022. Trial dates have not been set in any of the opt-out actions. The Company disputes the claims against it in the remaining individual opt-out complaints and intends to defend itself vigorously. Canadian Securities Litigation In 2015, six putative class actions were filed and served against the Company and certain current or former officers and directors in Canada in the provinces of British Columbia, Ontario and Quebec. These actions are captioned: (a) Alladina v. Valeant, et al. (Case No. S-1594B6) (Supreme Court of British Columbia) (filed November 17, 2015); (b) Kowalyshyn v. Valeant, et al. (CV-15-540593-00CP) (Ontario Superior Court) (filed November 16, 2015); (c) Kowalyshyn et al. v. Valeant, et al. (CV-15-541082-00CP) (Ontario Superior Court) (filed November 23, 2015); (d) O’Brien v. Valeant et al. (CV-15-543678-00CP) (Ontario Superior Court) (filed December 30, 2015); (e) Catucci v. Valeant, et al. (Court File No. 540-17-011743159, then Court File No. 500-06-000783-163) (Quebec Superior Court) (filed October 26, 2015) and (f) Rousseau-Godbout v. Valeant, et al. (Court File No. 500-06-000770-152) (Quebec Superior Court) (filed October 27, 2015). The Company is also aware of two additional putative class actions that were filed with the applicable court but which have not been served on the Company and the factual allegations made in these actions are substantially similar to those outlined herein. These actions are captioned: (i) Okeley v. Valeant, et al. (Case No. S-159991) (Supreme Court of British Columbia) (filed December 2, 2015) and (ii) Sukenaga v Valeant et al. (CV-15-540567-00CP) (Ontario Superior Court) (filed November 16, 2015). The actions generally allege violations of Canadian provincial securities legislation on behalf of putative classes of persons who purchased or otherwise acquired securities of the Company for periods commencing as early as January 1, 2013 and ending as late as November 16, 2015. The alleged violations relate to the same matters described in the U.S. Securities Litigation description above. Each of these putative class actions, other than the Catucci action in the Quebec Superior Court, was discontinued. In the Catucci action, on August 29, 2017, the judge granted the plaintiffs leave to proceed with their claims under the Quebec Securities Act and authorized the class proceeding. On October 26, 2017, the plaintiffs issued their Judicial Application Originating Class Proceedings. After a hearing on November 11, 2019, the court approved a settlement in the Catucci action between the class members and the Company’s auditors and the action was dismissed as against them. On August 4, 2020, the Company entered into a settlement agreement with the plaintiffs in Catucci, on behalf of the class, pursuant to which it agreed to resolve the Catucci action for the amount of CAD 94,000,000 plus payment of an additional amount to cover notice and settlement administration costs and disbursements. As part of the settlement, the Company and the other defendants admitted no liability as to the claims against it and deny all allegations of wrongdoing. Court approval of the settlement was granted after a hearing on November 16, 2020. The Catucci action has now been dismissed against the Company, its current and former directors and officers, its underwriters and its insurers. In addition to the class proceedings described above, on April 12, 2018, the Company was served with an application for leave filed in the Quebec Superior Court of Justice to pursue an action under the Quebec Securities Act against the Company and certain current or former officers and directors. This proceeding is captioned BlackRock Asset Management Canada Limited et al. v. Valeant, et al. (Court File No. 500-11-054155-185). The allegations in the proceeding are similar to those made by plaintiffs in the Catucci class action. On June 18, 2018, the same BlackRock entities filed an originating application (Court File No. 500-17-103749-183) against the same defendants asserting claims under the Quebec Civil Code in respect of the same alleged misrepresentations. The Company is aware that certain other members of the Catucci class exercised their opt-out rights prior to the June 19, 2018 deadline. On February 15, 2019, one of the entities which exercised its opt-out rights, the California State Teachers’ Retirement System (“CalSTRS”), served the Company with an application in the Quebec Superior Court of Justice for leave to pursue an action under the Quebec Securities Act against the Company, certain current or former officers and directors of the Company and its auditor. That proceeding is captioned California State Teachers’ Retirement System v. Bausch Health Companies Inc. et al. (Court File No. 500-11-055722-181). The allegations in the proceeding are similar to those made by the plaintiffs in the Catucci class action and in the BlackRock opt-out proceedings. On that same date, CalSTRS also served the Company with proceedings (Court File No. 500-17-106044-186) against the same defendants asserting claims under the Quebec Civil Code in respect of the same alleged misrepresentations. On February 3, 2020, the Quebec Superior Court granted the applications of CalSTRS and BlackRock for leave to pursue their respective actions asserting claims under the Quebec Securities Act. On June 16, 2020, the Quebec Court of Appeal granted the defendants leave to appeal that decision. The appeal was heard on September 29, 2021 and, by judgment dated October 29, 2021, the appeals were dismissed. On October 8 and 9, 2020, respectively, CalSTRS amended its proceedings to, among other things, include a new alleged misrepresentation concerning the accounting treatment of “price appreciation credits” in respect of Glumetza ® during the period covered by the claims. A hearing was held on February 17, 2021 with respect to whether CalSTRS would be permitted to file the proposed amended proceedings. On June 9, 2021, the Quebec Superior Court granted the Company’s application to strike the new allegations from its Quebec Securities Act claim, but permitted the amendments to its claim under the Quebec Civil Code. On December 8, 2021, CalSTRS delivered its amended pleadings. On March 17, 2021, four additional opt-outs from the Catucci class issued a Statement of Claim in the Ontario Superior Court of Justice. That proceeding is captioned The Bank of Korea et al. v. Valeant Pharmaceuticals International Inc. et al. (Court File No. 21-006589666-0000). In addition, these plaintiffs also served and filed a motion for leave to pursue claims under the Ontario Securities Act. The allegations in this proceeding are similar to those made by the plaintiffs in the Catucci class action and the plaintiffs in the opt-out actions described above. The Company believes that it has viable defenses in each of these actions. In each case, the Company intends to defend itself vigorously. RICO Class Actions Between May 27, 2016 and September 16, 2016, three actions were filed in the U.S. District Court for the District of New Jersey against the Company and various third-parties (these actions were subsequently consolidated), alleging claims under the federal Racketeer Influenced Corrupt Organizations Act (“RICO”) on behalf of a putative class of certain third-party payors that paid claims submitted by Philidor for certain Company-branded drugs between January 2, 2013 and November 9, 2015. The consolidated complaint alleges, among other things, that the defendants committed predicate acts of mail and wire fraud by submitting or causing to be submitted prescription reimbursement requests that misstated or omitted facts regarding: (1) the identity and licensing status of the dispensing pharmacy; (2) the resubmission of previously denied claims; (3) patient co-pay waivers; (4) the availability of generic alternatives; and (5) the insured’s consent to renew the prescription. The complaint further alleges that these acts constitute a pattern of racketeering or a racketeering conspiracy in violation of the RICO statute and caused plaintiffs and the putative class unspecified damages, which may be trebled under the RICO statute. On August 4, 2021, the Company executed a stipulation of settlement for this action and, on August 17, 2021, the Court preliminarily approved the settlement. On December 6, 2021 the Special Master overseeing this litigation issued a report and recommendation recommending final approval of the settlement, and on February 22, 2022 the settlement was approved by the district court. The time to appeal the district court’s final approval order expired on March 24, 2022, and the settlement has resolved and discharged all claims against the Company in this action. Insurance Coverage Lawsuit On December 7, 2017, the Company filed a lawsuit against its insurance companies that issued insurance policies covering claims made against the Company, its subsidiaries, and its directors and officers during two distinct policy periods, (i) 2013-14 and (ii) 2015-16. The lawsuit is currently pending in the United States District Court for the District of New Jersey (Valeant Pharmaceuticals International, Inc., et al. v. AIG Insurance Company of Canada, et al.; Case No. 3:18-CV-00493). In the lawsuit, the Company seeks coverage for: (i) the costs of defending and resolving claims brought by former shareholders and debtholders of Allergan, Inc. in In re Allergan, Inc. Proxy Violation Securities Litigation and Timber Hill LLC, individually and on behalf of all others similarly situated v. Pershing Square Capital Management, L.P., et al. (the “Allergan Securities Litigation”) (under the 2013-2014 coverage period) and (ii) costs incurred and to be incurred in connection with the securities class actions and opt-out cases described in this section and the SEC Investigation and certain of the other investigations described under “Complete or Inactive Matters” in Note 20, “LEGAL PROCEEDINGS,” to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC and the CSA on February 24, 2021 and under “Governmental and Regulatory Inquiries” and “Complete or Inactive Matters” in Note 21, “LEGAL PROCEEDINGS,” to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC and the CSA on February 19, 2020 (under the 2015-2016 coverage period). On July 20, 2021, the Company entered into settlement agreements with the insurers in the 2015-2016 coverage period in which the Company agreed to resolve its claims for insurance coverage in connection with the U.S. Securities Litigation and the Canadian Securities Litigation and related opt-out litigation and related investigations matters described above. On that same day, the Company entered into settlement agreements with two of its insurers in the 2013-2014 coverage period in which the Company agreed to resolve its claims against those two insurers only for insurance coverage in connection with the Allergan Securities Litigation. As a result of all of the settlement agreements entered into with the insurers on July 20, 2021, the Company has received an aggregate sum of $213 million. The Company’s insurance claims with respect to the Allergan Securities Litigation against the remaining insurers in the 2013-2014 coverage period remain pending. Hound Partners Lawsuit In October 2018, Hound Partners Offshore Fund, LP, Hound Partners Long Master, LP and Hound Partners Concentrated Master, LP, filed a lawsuit against the Company in the Superior Court of New Jersey Law Division/Mercer County that asserts claims for common law fraud, negligent misrepresentation, and violations of the New Jersey Racketeer Influenced and Corrupt Organizations Act. The Company disputes the claims and intends to vigorously defend this matter. Antitrust Glumetza Antitrust Litigation Between August 2019 and July 2020, eight (8) putative antitrust class actions and four (4) non-class complaints naming the Company, Salix Pharmaceuticals, Ltd., Salix Pharmaceuticals, Inc. and Santarus, Inc. (for purposes of this subsection, collectively, the “Company”), among other defendants, were filed or transferred to the Northern District of California. Three (3) of the class actions were filed by plaintiffs seeking to represent a class of direct purchasers. The purported classes of direct purchasers filed a consolidated first amended complaint and a motion for class certification in April 2020. The court certified a direct purchaser class in August 2020. The putative class action complaints filed by end payer purchasers have all been voluntarily dismissed. Three (3) of the non-class complaints were filed by direct purchasers. The fourth non-class complaint, asserting claims based on both direct and indirect purchases, was filed by an insurer plaintiff in July 2020 and subsequently amended in September 2020. In December 2020, the court denied the Company’s motion to dismiss as to the insurer plaintiff’s direct claims but dismissed the insurer plaintiff’s indirect claims. On February 2, 2021, the insurer plaintiff’s motion for leave to amend its complaint was denied. These actions were consolidated and coordinated in In re Glumetza Antitrust Litigation , Case No. 3:19-cv-05822-WHA (the “ In re Glumetza Antitrust Litigation ”). The lawsuits alleged that a 2012 settlement of a patent litigation regarding Glumetza ® delayed generic entry in exchange for an agreement not to launch an authorized generic of Glumetza ® or grant any other company a license to do so. The complaints alleged that the settlement agreement resulted in higher prices for Glumetza ® and its generic equivalent both prior to and after generic entry. Both the class and non-class plaintiffs sought damages under federal antitrust laws for claims based on direct purchases. On February 8, 2021, the insurer plaintiff filed an action asserting its indirect (state law) claims in the Superior Court of Alameda County, California against the Company and others (the “State Court Action”) (discussed in further detail below, see Glumetza State-Law Insurer Litigations ). On July 26, 2021, the Company reached an agreement in principle and, thereafter, on September 14, 2021, executed a final settlement agreement to resolve the class plaintiffs’ claims for $300 million, subject to court approval. On August 1, 2021, the Company also reached an agreement in principle to resolve the non-class direct purchaser plaintiffs’ claims, described above, for additional consideration. A final settlement agreement with the non-class direct purchaser plaintiffs was executed on August 6, 2021. As part of the settlements, the Company admitted no liability as to the claims against it and denied all allegations of wrongdoing. On September 20, 2021, the insurer plaintiff voluntarily dismissed its claims in the consolidated federal action. By stipulation, the insurer plaintiff has asserted its direct opt-out claims in the State Court Action, resulting in the consolidation of all of its opt-out claims in the State Court Action. On September 22, 2021, the court granted preliminary approval of the class settlement agreement and vacated the October 2021 trial date and all other pre-trial deadlines in the consolidated actions. On February 3, 2022, the court granted final approval of the class settlement and ordered dismissal of the class plaintiffs’ claims. The deadline to appeal the final approval of the class settlement has now passed, and the settlements have resolved and discharged all asserted class and direct purchaser non-class claims against the Company in the In re Glumetza Antitrust Litigation . Generic Pricing Antitrust Litigation The Company’s subsidiaries, Oceanside Pharmaceuticals, Inc. (“Oceanside”), Bausch Health US, LLC (formerly Valeant Pharmaceuticals North America LLC) (“Bausch Health US”) and Bausch Health Americas, Inc. (formerly Valeant Pharmaceuticals International) (“Bausch Health Americas”) (for the purposes of this paragraph, collectively, the “Company”), are defendants in multidistrict antitrust litigation (“MDL”) entitled In re: Generic Pharmaceuticals Pricing Antitrust Litigation, pending in the United States District Court for the Eastern District of Pennsylvania (MDL 2724, 16- MD-2724). The lawsuits seek damages under federal and state antitrust laws, state consumer protection and unjust enrichment laws and allege that the Company’s subsidiaries entered into a conspiracy to fix, stabilize, and raise prices, rig bids and engage in market and customer allocation for generic pharmaceuticals. The lawsuits, which have been brought as putative class actions by direct purchasers, end payers, and indirect resellers, and as direct actions by direct purchasers, end payers, insurers, States, and various Counties, Cities, and Towns, have been consolidated into the MDL. There are also additional, separate complaints which have been consolidated in the same MDL that do not name the Company or any of its subsidiaries as a defendant. There are cases pending in the Court of Common Pleas of Philadelphia County against the Company and other defendants related to the multidistrict litigation, but no complaint has been filed in the cases. The cases have been placed in deferred status. The Company disputes |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company has commitments related to capital expenditures of approximately $42 million as of December 31, 2022. Under certain agreements, the Company may be required to make payments contingent upon the achievement of specific developmental, regulatory, or commercial milestones. As of December 31, 2022, the Company believes it is reasonably possible that it may potentially make milestone and license fee payments, including sales-based milestone payments, of approximately $250 million over time, in the aggregate, to third parties for products currently under development or being marketed, primarily consisting of the following: • Under the terms of a June 2013 distribution and supply agreement with Mylan Pharmaceuticals Inc. (as assignee of Spear Pharmaceuticals, Inc and Spear Dermatology Products Inc.), the Company may be required to make sales-based milestone payments. The Company believes it is reasonably possible that these payments over time may approximate $35 million, in the aggregate. • Under the terms of an April 2019 agreement with Mitsubishi Tanabe Pharma Corporation, the Company has acquired an exclusive license to develop and commercialize MT-1303 (amiselimod), a late-stage oral compound that targets the sphingosine 1-phosphate receptor that plays a role in autoimmune diseases, such as Inflammatory Bowel Disease and ulcerative colitis. The Company may be required to make development and sales-based milestone payments over time of up to $60 million, in the aggregate, as well as royalties on future sales. • Under the terms of a December 2019 agreement with Novaliq GmbH, Bausch + Lomb has acquired an exclusive license for the commercialization and development in the U.S. and Canada of NOV03 (perfluorohexyloctane), an investigational drug to treat Dry Eye Disease associated with Meibomian gland dysfunction and may be required to make sales-based milestone payments. The Company believes it is reasonably possible that these payments over time may approximate $48 million, in the aggregate, as well as royalties on future sales. • Under the terms of an October 2020 agreement with Eyenovia, Inc., Bausch + Lomb has acquired an exclusive license in the U.S. and Canada for the development and commercialization of an investigational microdose formulation of atropine ophthalmic solution, which is being investigated for the reduction of pediatric myopia progression, also known as nearsightedness, in children ages 3-12. Under the terms of the agreement, the Company may be required to make development and sales-based milestone payments. The Company believes it is reasonably possible that these payments over time may approximate $35 million, in the aggregate. • Under the terms of a May 2020 agreement with STADA Arzneimittel AG and its development partner, Xbrane Biopharma AB, to commercialize in the U.S. and Canada a biosimilar candidate to Lucentis (ranibizumab), Bausch + Lomb may be required to make development and sales-based milestone payments. Due to the nature of these arrangements, the future potential payments related to the attainment of the specified milestones over a period of several years are inherently uncertain. As of December 31, 2022, no accruals related to the aforementioned agreements exist because the milestone targets are not yet probable of being achieved. Indemnification Provisions In the normal course of business, the Company enters into agreements that include indemnification provisions for product liability and other matters. These provisions are generally subject to maximum amounts, specified claim periods and other conditions and limits. In addition, the Company is obligated to indemnify its officers and directors in respect of any legal claims or actions initiated against them in their capacity as officers and directors of the Company in accordance with applicable law. Pursuant to such indemnities, the Company is indemnifying certain former officers and directors in respect of certain litigation and regulatory matters. As of December 31, 2022 and 2021, no material amounts were accrued for the Company’s obligations under these indemnification provisions. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
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 aesthetic medical devices, outside the U.S and Puerto Rico of branded pharmaceutical products, branded generic pharmaceutical and OTC products. • The Solta Medical segment consists of global sales of Solta Medical (“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. Certain costs, such as Amortization of intangible assets, Asset impairments, including loss on assets held for sale, Restructuring, integration, separation and IPO 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 Profit Segment revenues and profits for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Revenues: Salix $ 2,090 $ 2,074 $ 1,904 International 988 1,166 1,181 Solta Medical 300 308 253 Diversified Products 978 1,121 1,274 Bausch + Lomb 3,768 3,765 3,415 Total revenues $ 8,124 $ 8,434 $ 8,027 Segment profit: Salix $ 1,489 $ 1,493 $ 1,338 International 324 403 386 Solta Medical 135 167 131 Diversified Products 612 722 814 Bausch + Lomb 874 958 909 Total 3,434 3,743 3,578 Corporate (828) (792) (619) Amortization of intangible assets (1,215) (1,375) (1,645) Goodwill impairments (824) (469) — Asset impairments, including loss on assets held for sale (15) (234) (114) Restructuring, integration, separation and IPO costs (63) (50) (22) Other expense, net (35) (373) (502) Operating income 454 450 676 Interest income 14 7 13 Interest expense (1,464) (1,426) (1,534) Gain (loss) on extinguishment of debt 875 (62) (59) Foreign exchange and other (8) 7 (30) Loss before income taxes $ (129) $ (1,024) $ (934) Certain reclassifications have been made to segment revenue and profit in order for the prior years to conform to current year presentation. These reclassifications are not material. Capital Expenditures Capital expenditures by segment for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Capital expenditures: Salix $ 3 $ 2 $ 3 International 21 22 29 Solta Medical 3 2 4 Diversified Products 1 — — Bausch + Lomb 178 201 253 206 227 289 Corporate 14 42 13 Total capital expenditures $ 220 $ 269 $ 302 Revenues by Product and by Product Category Revenues for the Company’s top ten products for the years 2022, 2021 and 2020 represented 49%, 43% and 41% of total product sales, respectively. Revenues by segment and product category were as follows: Salix International Solta Medical Diversified Products Bausch + Lomb Total (in millions) For the year ended December 31, 2022 Pharmaceuticals $ 2,090 $ 279 $ — $ 826 $ 481 $ 3,676 Devices — — 300 — 1,572 1,872 OTC — 151 — 7 1,453 1,611 Branded and Other Generics — 527 — 120 240 887 Other revenues — 31 — 25 22 78 $ 2,090 $ 988 $ 300 $ 978 $ 3,768 $ 8,124 Salix International Solta Medical Diversified Products Bausch + Lomb Total For the year ended December 31, 2021 Pharmaceuticals $ 2,066 $ 259 $ — $ 924 $ 514 $ 3,763 Devices — — 308 — 1,595 1,903 OTC — 136 — 7 1,389 1,532 Branded and Other Generics — 738 — 167 239 1,144 Other revenues 8 33 — 23 28 92 $ 2,074 $ 1,166 $ 308 $ 1,121 $ 3,765 $ 8,434 Salix International Solta Medical Diversified Products Bausch + Lomb Total For the year ended December 31, 2020 Pharmaceuticals $ 1,899 $ 255 $ — $ 1,020 $ 506 $ 3,680 Devices — — 253 — 1,313 1,566 OTC — 112 — 7 1,311 1,430 Branded and Other Generics — 775 — 219 254 1,248 Other revenues 5 39 — 28 31 103 $ 1,904 $ 1,181 $ 253 $ 1,274 $ 3,415 $ 8,027 Geographic Information Revenues are attributed to a geographic region based on the location of the customer for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 U.S. and Puerto Rico $ 4,836 $ 4,887 $ 4,791 China 413 490 341 Canada 351 343 331 Poland 278 280 238 Mexico 276 256 225 Japan 200 230 226 France 203 208 179 Russia 181 160 137 Germany 147 154 144 United Kingdom 115 116 86 Spain 84 88 78 South Korea 77 76 68 Italy 76 80 71 Other 887 1,066 1,112 $ 8,124 $ 8,434 $ 8,027 Certain reclassifications have been made and are reflected in the table above. 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, 2022 and 2021 were as follows: (in millions) 2022 2021 U.S. and Puerto Rico $ 725 $ 743 Ireland 363 336 Canada 126 123 Germany 89 87 Poland 65 75 Mexico 46 45 France 44 39 China 26 30 Serbia 23 25 Italy 20 21 Other 73 74 $ 1,600 $ 1,598 Major Customers Customers that accounted for 10% or more of total revenues were as follows: 2022 2021 2020 AmerisourceBergen Corporation 18% 18% 17% McKesson Corporation 15% 16% 17% Cardinal Health, Inc. 13% 12% 13% |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Use of Estimates The Consolidated Financial Statements have been prepared by the Company in United States (“U.S.”) dollars and in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), applied on a consistent basis. The Consolidated Financial Statements include the accounts of the Company and those of its subsidiaries and any variable interest entities for which the Company is the primary beneficiary. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates In preparing the Company’s Consolidated Financial Statements, management is required to make estimates and assumptions. This includes estimates and assumptions regarding the nature, timing and extent of the impacts that the COVID-19 pandemic will have on its operations and cash flows. The estimates and assumptions used by the Company affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management include: provisions for product returns, rebates, chargebacks, discounts and allowances and distribution fees paid to certain wholesalers; useful lives of amortizable intangible assets and property, plant and equipment; expected future cash flows used in evaluating intangible assets for impairment, assessing compliance with debt covenants and making going concern assessments; reporting unit fair values for testing goodwill for impairment and allocating goodwill to new reporting unit structure on a relative fair value basis; provisions for loss contingencies; provisions for income taxes, uncertain tax positions and realizability of deferred tax assets; fair value of cross-currency swaps; fair value of foreign currency exchange contracts; and the recognition of the fair value of assets and liabilities acquired in a business combination, including the fair value of contingent consideration. Under certain product manufacturing and supply agreements, management uses information from the Company’s commercialization counterparties to arrive at estimates for future returns, rebates and chargebacks. On an ongoing basis, management reviews its estimates to ensure that these estimates appropriately reflect changes in the Company’s business and new information as it becomes available. If historical experience and other factors used by management to make these estimates do not reasonably reflect future activity, the Company’s Consolidated Financial Statements could be materially impacted. |
Reclassifications | Reclassifications Certain reclassifications have been made to prior year amounts to conform to the current year presentation. |
Acquisitions and Acquisition-Related Contingent Consideration | Acquisitions Acquired businesses are accounted for using the acquisition method of accounting, which requires that assets acquired and liabilities assumed be recorded at fair value, with limited exceptions. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in the Consolidated Financial Statements after the date of acquisition. Acquired in-process research and development (“IPR&D”) is recognized at fair value and initially characterized as an indefinite-lived intangible asset, irrespective of whether the acquired IPR&D has an alternative future use. If the acquired net assets do not constitute a business, the transaction is accounted for as an asset acquisition and no goodwill is recognized. In an asset acquisition, the amount allocated to acquired IPR&D with no alternative future use is charged to expense at the acquisition date and any future contingent consideration is not recorded until it becomes probable. Acquisition-Related Contingent Consideration Acquisition-related contingent consideration, which primarily consists of potential milestone payments and royalty obligations, is recorded in the Consolidated Balance Sheets at its acquisition date estimated fair value, in accordance with the acquisition method of accounting. The fair value of the acquisition-related contingent consideration is remeasured each reporting period, with changes in fair value recorded in the Consolidated Statements of Operations. The fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in fair value measurement accounting. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe estimated fair values of cash and cash equivalents, trade receivables, accounts payable and accrued liabilities approximate their carrying values due to their short maturity periods. The fair value of acquisition-related contingent consideration is based on estimated discounted future cash flows or Monte Carlo Simulation (when appropriate) analyses and assessment of the probability of occurrence of potential future events. |
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments The accounting for changes in the fair value of a derivative instrument depends on whether the instrument has been designated and qualifies as part of a hedging relationship and on the type of hedging relationship. For derivative instruments designated and qualifying as hedging instruments, the hedging instrument must be designated, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of the foreign currency exposure of a net investment in a foreign operation. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the Consolidated Statements of Operations during the current period. Bausch + Lomb’s cross-currency swaps qualified for and have been designated as an accounting hedge of the foreign currency exposure of a net investment in a foreign operation and are remeasured at each reporting date to reflect changes in their fair values. The fair value was determined via a mark-to-market analysis, using observable (Level 2) inputs. These inputs included: (i) the foreign currency exchange spot rate between the euro and U.S. dollar, (ii) the interest rate yield curves in the euro and U.S. dollar and (iii) the credit risk rating for each applicable counterparty. The net change in fair value of cross-currency swaps is reported as a gain or loss in the Consolidated Statements of Comprehensive Income (Loss) as part of Foreign currency translation adjustment to the extent they are effective, and remain in Accumulated other comprehensive loss until either the sale or complete, or substantially complete, liquidation of the subsidiary. No portion of the cross-currency swaps was ineffective. Bausch + Lomb uses the spot method of assessing hedge effectiveness. Bausch + Lomb has elected to amortize amounts excluded from the assessment of effectiveness over the term of its cross-currency swaps as a reduction of Interest expense in the Consolidated Statements of Operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash in bank accounts and highly liquid investments with maturities of three months or less when purchased. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, trade receivables, cross-currency swaps and foreign currency exchange contracts. The Company invests its excess cash in high-quality, money market instruments and term deposits with varying maturities, but typically less than three months. Cash deposited at banks may exceed the amount of insurance provided on such deposits. Generally, these cash deposits may be redeemed upon demand and are maintained with financial institutions with |
Allowance for Credit Losses | Allowance for Credit LossesAn allowance is maintained for potential credit losses. The Company estimates the current expected credit loss on its receivables based on various factors, including historical credit loss experience, customer credit worthiness, value of collaterals (if any), and any relevant current and reasonably supportable future economic factors. Additionally, the Company generally estimates the expected credit loss on a pool basis when customers are deemed to have similar risk characteristics. Trade receivable balances are written off against the allowance when it is deemed probable that the trade receivable will not be collected. Trade receivables, net are stated net of certain sales provisions and the allowance for credit losses. |
Inventories | Inventories Inventories comprise raw materials, work in process and finished goods, which are valued at the lower of cost or net realizable value, on a first-in, first-out basis. The cost value for work in process and finished goods inventories includes materials, direct labor and an allocation of overheads. The Company evaluates the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared with quantities on hand, the price the Company expects to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are reported at cost, less accumulated depreciation. Costs incurred on assets under construction are capitalized as construction in progress. Depreciation is calculated using the straight-line method, commencing when the assets become available for productive use, based on the following estimated useful lives: Land improvements 15 - 30 years Buildings and improvements Up to 40 years Machinery and equipment 3 - 20 years Other equipment 3 - 10 years Equipment on operating lease Up to 5 years Leasehold improvements Lesser of term of lease or 10 years |
Intangible Assets | Intangible Assets Intangible assets are reported at cost, less accumulated amortization and impairments. Intangible assets with finite lives are amortized over their estimated useful lives. Amortization is calculated primarily using the straight-line method based on the following estimated useful lives: Product brands 1 - 20 years Corporate brands 9 - 20 years Product rights/patents 4 - 15 years Partner relationships 7 - 9 years Out-licensed technology and other 8 - 9 years |
Divestitures of Products | Divestitures of Products The net proceeds on the divestiture of products and the carrying amount of the related assets is recorded as a gain/loss on sale within Other expense, net. Any contingent payments that are potentially due to the Company as a result of these divestitures are recorded when realizable. |
IPR&D | IPR&D The fair value of IPR&D acquired through a business combination is capitalized as an indefinite-lived intangible asset until the completion or abandonment of the related research and development activities. When the related research and development is completed, the asset will be assigned a useful life and amortized. Acquired IPR&D assets are tested for impairment at least annually or when triggering events are identified. The fair value of an acquired IPR&D intangible asset is typically determined using an income approach. This approach starts with a forecast of the net cash flows expected to be generated by the asset over its estimated useful life. The net cash flows reflect the asset’s stage of completion, the probability of technical success, the projected costs to complete, expected market competition and an assessment of the asset’s life-cycle. The net cash flows are then adjusted to present value by applying an appropriate discount rate that reflects the risk factors associated with the expected cash flow streams. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If indicators of impairment are present, the asset is tested for recoverability by comparing the carrying value of the asset to the related estimated undiscounted future cash flows expected to be derived from the asset, which include the amount and timing of the projected future cash flows. If the expected undiscounted cash flows are less than the carrying value of the asset, then the asset is considered to be impaired and its carrying value is written down to fair value, based on the related estimated discounted future cash flows. |
Goodwill | Goodwill Goodwill is recorded with the acquisition of a business and is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. Goodwill is not amortized but is tested for impairment at least annually as of October 1st at the reporting unit level. Goodwill impairment is measured as the amount by which a reporting unit’s carrying value exceeds its fair value. A reporting unit is the same as, or one level below, an operating segment. A n entity is permitted to first assess qualitatively whether it is necessary to perform a quantitative impairment test for any of its reporting units. The quantitative impairment test is required only when the Company concludes that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. In evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company considers the totality of all relevant events or circumstances that affect the fair value or carrying amount of a reporting unit. An interim goodwill impairment test in advance of the annual impairment assessment may be required if events occur that indicate an impairment might be present. For example, a substantial decline in the Company’s market capitalization, changes in reportable segments, unexpected adverse business conditions, economic factors, including rising interest rates and unanticipated competitive activities may signal that an interim impairment test is needed. Accordingly, among other factors, the Company monitors changes in its share price between annual impairment tests. The Company considers a decline in its share price that corresponds to an overall deterioration in stock market conditions to be less of an indicator of goodwill impairment than a unilateral decline in its share price reflecting adverse changes in its underlying operating performance, cash flows, financial condition and/or liquidity. In the event that the Company’s market capitalization does decline below its book value, the Company would consider the length and severity of the decline and the reason for the decline when assessing whether potential goodwill impairment exists. The Company believes that short-term fluctuations in share prices may not necessarily reflect underlying values. |
Debt Discounts and Premiums, Issuance Costs and Deferred Financing Costs | Debt Discounts and Premiums, Issuance Costs and Deferred Financing Costs Debt discounts and issuance costs are presented in the Consolidated Balance Sheets as a direct deduction from or addition to the carrying amount of the related debt and are amortized or accreted, using the effective interest method, as interest expense over the contractual lives of the related credit facilities or notes. Deferred financing costs associated with revolving credit facility arrangements are included in the balances of Prepaid expenses and other current assets and Other non-current assets in the Consolidated Balance Sheets and are amortized as interest expense over the contractual life of the related revolving credit facility. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of the Company’s foreign operations having a functional currency other than the U.S. dollar are translated into U.S. dollars at the exchange rate prevailing at the balance sheet date, and at the average exchange rate for the reporting period for revenue and expense accounts. The cumulative foreign currency translation adjustment is recorded as a component of Accumulated other comprehensive loss in the Consolidated Balance Sheets. Foreign currency exchange gains and losses on transactions occurring in a currency other than an operation’s functional currency are recognized as a component of Foreign exchange and other in the Consolidated Statements of Operations. |
Revenue Recognition | Revenue Recognition The Company’s revenues are primarily generated from product sales, primarily in the therapeutic areas of eye health, gastroenterology (“GI”) and dermatology that consist of: (i) branded pharmaceuticals, (ii) generic and branded generic pharmaceuticals, (iii) OTC products and (iv) medical devices (contact lenses, intraocular lenses, ophthalmic surgical equipment and aesthetics devices). Other revenues include alliance and service revenue from the licensing and co-promotion of products and contract service revenue primarily in the areas of dermatology and topical medication. Contract service revenue is derived primarily from contract manufacturing for third parties and is not material. See Note 22, “SEGMENT INFORMATION” for the disaggregation of revenues which depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by the economic factors of each category of customer contracts. The Company recognizes revenue when the customer obtains control of promised goods or services and in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, the Company applies the five-step revenue model to contracts within its scope: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Product Sales A contract with the Company’s customers exists for each product sale. Where a contract with a customer contains more than one performance obligation, the Company allocates the transaction price to each distinct performance obligation based on its relative standalone selling price. The transaction price is adjusted for variable consideration which is discussed below. The Company generally recognizes revenue for product sales at a point in time, when the customer obtains control of the products. Product Sales Provisions As is customary in the pharmaceutical industry, gross product sales are subject to a variety of deductions in arriving at reported net product sales. The transaction price for product sales is typically adjusted for variable consideration, which may be in the form of cash discounts, allowances, returns, rebates, chargebacks and distribution fees paid to customers. Provisions for variable consideration are established to reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in the future period. Provisions for these deductions are recorded concurrently with the recognition of gross product sales revenue and include cash discounts and allowances, chargebacks, and distribution fees, which are paid to direct customers, as well as rebates and returns, which can be paid to direct and indirect customers. Returns provision balances and volume discounts to direct customers are included in Accrued and other current liabilities. All other provisions related to direct customers are included in Trade receivables, net, while provision balances related to indirect customers are included in Accrued and other current liabilities. The following table presents the activity and ending balances of the Company’s variable consideration provisions the years 2022 and 2021. (in millions) Discounts Returns Rebates Chargebacks Distribution Total Reserve balance, January 1, 2021 $ 190 $ 575 $ 779 $ 184 $ 85 $ 1,813 Current period provision 625 131 2,462 1,999 211 5,428 Payments and credits (593) (224) (2,297) (2,013) (251) (5,378) Reserve balance, December 31, 2021 222 482 944 170 45 1,863 Current period provision 571 131 2,587 2,064 218 5,571 Payments and credits (605) (186) (2,508) (2,038) (187) (5,524) Reserve balance, December 31, 2022 $ 188 $ 427 $ 1,023 $ 196 $ 76 $ 1,910 Included in Rebates in the table above are cooperative advertising credits due to customers of approximately $40 million and $36 million as of December 31, 2022 and 2021, respectively, which are reflected as a reduction of Trade accounts receivable, net in the Consolidated Balance Sheets. The Company continually monitors its variable consideration provisions and evaluates the estimates used as additional information becomes available. Adjustments will be made to these provisions periodically to reflect new facts and circumstances that may indicate that historical experience may not be indicative of current and/or future results. The Company is required to make subjective judgments based primarily on its evaluation of current market conditions and trade inventory levels related to the Company’s products. These judgments include the potential impact of the COVID-19 pandemic on, among other things, unemployment and related changes in customer health insurance levels, customer behaviors during the COVID-19 pandemic and government stimulus bills that focus on ensuring availability and access to lifesaving drugs during a public health crisis. This evaluation may result in an increase or decrease in the experience rate that is applied to current and future sales, or require an adjustment related to past sales, or both. If the trend in actual amounts of variable consideration varies from the Company’s prior estimates, the Company adjusts these estimates when such trend is believed to be sustainable. At that time, the Company would record the necessary adjustments which would affect net product revenue and earnings reported in the current period. The Company applies this method consistently for contracts with similar characteristics. The following describes the major sources of variable consideration in the Company’s customer arrangements and the methodology, estimates and judgments applied to estimate each type of variable consideration. Cash Discounts and Allowances Cash discounts are offered for prompt payment and allowances for volume purchases. Provisions for cash discounts and allowances are estimated at the time of sale and recorded as direct reductions to trade receivables and revenue. Management estimates the provisions for cash discounts and allowances based on contractual sales terms with customers, an analysis of unpaid invoices and historical payment experience. Estimated cash discounts and allowances have historically been predictable and less subjective, due to the limited number of assumptions involved, the consistency of historical experience and the fact that these amounts are generally settled within one month of incurring the liability. Returns Consistent with industry practice, customers are generally allowed to return a product within a specified period of time before and after its expiration date, excluding European businesses which generally do not provide a right of return. The returns provision is estimated utilizing historical sales and return rates over the period during which customers have a right of return, taking into account available information on competitive products and contract changes. The information utilized to estimate the returns provision includes: (i) historical return and exchange levels, (ii) external data with respect to inventory levels in the distribution channel, (iii) external data with respect to prescription demand for products, (iv) remaining shelf lives of products at the date of sale and (v) estimated returns liability to be processed by year of sale based on an analysis of lot information related to actual historical returns. In determining the estimate for returns, management is required to make certain assumptions regarding the timing of the introduction of new products and the potential of these products to capture market share. In addition, certain assumptions with respect to the extent and pattern of decline associated with generic competition are necessary. These assumptions are formulated using market data for similar products, past experience and other available information. These assumptions are continually reassessed, and changes to the estimates and assumptions are made as new information becomes available. The estimate for returns may be impacted by a number of factors, but the principal factor relates to the inventory levels in the distribution channel. When management becomes aware of an increase in such inventory levels, it considers whether the increase may be temporary or other-than-temporary. Temporary increases in wholesaler inventory levels will not warrant revision to the provision for returns. Other-than-temporary increases in wholesaler inventory levels, however, may be an indication that future product returns could be higher than originally anticipated, and, as a result, estimates for returns may need to be adjusted. Factors that suggest increases in wholesaler inventory levels are temporary include: (i) recently implemented or announced price increases for certain products, (ii) new product launches or expanded indications for existing products and (iii) timing of purchases by wholesale customers. Conversely, factors that suggest increases in wholesaler inventory levels are other-than-temporary include: (i) declining sales trends based on prescription demand, (ii) introduction of new products or generic competition, (iii) increasing price competition from generic competitors and (iv) changes to the U.S. National Drug Codes (“NDC”) of products. Changes in the NDC of products could result in a period of higher returns related to products with the old NDC, as U.S. customers generally permit only one NDC per product for identification and tracking within their inventory systems. Over the last several years, the Company increased its focus on maximizing operational efficiencies and continues to take actions to reduce product returns, including but not limited to: (i) monitoring and reducing customer inventory levels, (ii) instituting disciplined pricing policies and (iii) improving contracting. These actions have had the effect of improving sales return experience, primarily related to branded and generic products. Sales return provisions for 2022 and 2021 were $131 million in each period, and include reductions in variable consideration for sales return provisions related to past sales of approximately $21 million and $28 million, respectively. Rebates and Chargebacks Product sales made under governmental and managed-care pricing programs in the U.S. are subject to rebates. The Company participates in state government-managed Medicaid programs, as well as certain other qualifying federal and state government programs whereby rebates are provided to participating government entities. Medicaid rebates are generally billed 45 days to 270 days after the quarter in which the product is dispensed to the Medicaid participant. As a result, the Medicaid rebate reserve includes an estimate of outstanding claims for end-customer sales that occurred, but for which the related claim has not been billed and/or paid, and an estimate for future claims that will be made when inventory in the distribution channel is sold through to plan participants. The calculation of the Medicaid rebate reserve also requires other estimates, such as estimates of sales mix, to determine which sales are subject to rebates and the amount of such rebates. Quarterly, the Medicaid rebate reserve is adjusted based on actual claims paid. Due to the delay in billing, adjustments to actual claims paid may incorporate revisions of that reserve for several periods. Managed Care rebates relate to contractual agreements to sell products to managed care organizations and pharmacy benefit managers at contractual rebate percentages in exchange for volume and/or market share. Chargebacks relate to contractual agreements to sell products to government agencies, group purchasing organizations and other indirect customers at contractual prices that are lower than the list prices the Company charges wholesalers. When these group purchasing organizations or other indirect customers purchase products through wholesalers at these reduced prices, the wholesaler charges the Company for the difference between the prices they paid the Company and the prices at which they sold the products to the indirect customers. In estimating provisions for rebates and chargebacks, management considers relevant statutes with respect to governmental pricing programs and contractual sales terms with managed-care providers and group purchasing organizations. Management estimates the amount of product sales subject to these programs based on historical utilization levels. Changes in the level of utilization of products through private or public benefit plans and group purchasing organizations will affect the amount of rebates and chargebacks that the Company is obligated to pay. Management continually updates these factors based on new contractual or statutory requirements, and any significant changes in sales trends that may impact the percentage of products subject to rebates or chargebacks. The amount of Managed Care, Medicaid and other rebates and chargebacks has become more significant as a result of a combination of deeper discounts implemented in each of the last three years, changes in the Company’s product mix and increased Medicaid utilization due to expansion of government funding for these programs. Management’s estimate for rebates and chargebacks may be impacted by a number of factors, but the principal factor relates to the level of inventory in the distribution channel. Rebate provisions are based on factors such as timing and terms of plans under contract, time to process rebates, product pricing, sales volumes, amount of inventory in the distribution channel and prescription trends. Adjustments to actual for the years 2022 and 2021 were not material to the Company’s revenues or earnings. Patient Co-Pay Assistance programs, Consumer Rebates and Loyalty Programs are rebates offered on many of the Company’s products. Patient Co-Pay Assistance Programs are patient discount programs offered in the form of coupon cards or point of sale discounts, with which patients receive certain discounts off their prescription at participating pharmacies, as defined by the specific product program. An accrual for these programs is established, equal to management’s estimate of the discount, rebate and loyalty incentives attributable to a sale. That estimate is based on historical experience and other relevant factors. The accrual is adjusted throughout each quarter based on actual experience and changes in other factors, if any. Distribution Fees The Company sells products primarily to wholesalers, and in some instances to large pharmacy chains such as CVS and Walmart. The Company has Distribution Services Agreements (“DSAs”) with several large wholesale customers such as McKesson Corporation, AmerisourceBergen Corporation, Cardinal Health, Inc. and McKesson Specialty. Under the DSAs, the wholesalers agree to provide services, and the Company pays the contracted DSA distribution service fees for these services based on product volumes. Additionally, price appreciation credits are generated when the Company increases a product’s wholesaler acquisition cost (“WAC”) under contracts with certain wholesalers. Under such contracts, the Company is entitled to credits from such wholesalers for the impact of that WAC increase on inventory currently on hand at the wholesalers. Such credits are offset against the total distribution service fees paid to each such wholesaler. The variable consideration associated with price appreciation credits is reflected in the transaction price of products sold when it is determined to be probable that a significant reversal will not occur. Included as a reduction of current period provisions for Distribution Fees in the table above are price appreciation credits of $10 million and $17 million for the years 2022 and 2021, respectively. Contract Assets and Contract Liabilities There are no contract assets for any period presented. Contract liabilities consist of deferred revenue, the balance of which is not material to any period presented. Sales Commissions Sales commissions are generally attributed to periods shorter than one year and therefore are expensed when incurred. Sales commissions are included in selling, general and administrative expenses. Financing Component |
Research and Development Expenses | Research and Development Expenses Costs related to internal research and development programs, including costs associated with the development of acquired IPR&D, are expensed as goods are delivered or services are performed. Under certain research and development arrangements with third parties, the Company may be required to make payments that are contingent on the achievement of specific developmental, regulatory and/or commercial milestones. Milestone payments made to third parties before a product receives regulatory approval, but after the milestone is determined to be probable, are expensed and included in Research and development expenses . Milestone payments made to third parties after regulatory approval is received are capitalized and amortized over the estimated useful life of the approved product. |
Legal Costs | Legal Costs Legal fees and other costs related to litigation and other legal proceedings or services are expensed as incurred and are included in Selling, general and administrative expenses. Certain legal costs associated with acquisitions are included in Acquisition-related costs and certain legal costs associated with divestitures, legal settlements and other business development activities are included in Litigation and other matters or Net gain on sale of assets within Other expense (income), net, as appropriate. Legal costs expensed are reported net of expected insurance recoveries. A claim for insurance recovery is recognized when realization becomes probable. |
Advertising Costs | Advertising CostsAdvertising costs comprise product samples, print media, promotional materials and television advertising and are expensed on the first use of the advertisement. |
Share-Based Compensation | Share-Based Compensation The Company recognizes all share-based payments to employees, including grants of employee stock options and restricted share units (“RSUs”), at estimated fair value. The Company amortizes the fair value of stock option or RSU grants on a straight-line basis over the requisite service period of the individual stock option or RSU grant, which generally equals the vesting period. Stock option and RSU forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Share-based compensation is recorded in Research and development expenses and Selling, general and administrative expenses, as appropriate. |
Interest Expense | Interest Expense Interest expense includes standby fees, the amortization of debt discounts and deferred financing costs, accretion of debt premiums and the amortization of amounts excluded from the assessment of effectiveness related to the Company’s cross-currency swaps. Interest costs are expensed as incurred, except to the extent such interest is related to construction in progress, in which case interest is capitalized. |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Deferred tax assets and liabilities are recognized for the temporary differences between the financial statement and income tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. A valuation allowance is provided for the portion of deferred tax assets that is more likely than not to remain unrealized. Deferred tax assets and liabilities are measured using enacted tax rates and laws. Deferred tax assets for outside basis differences in investments in subsidiaries are only recognized if the difference will be realized in the foreseeable future. The tax benefit from an uncertain tax position is recognized only if it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority, based on the technical merits of the position. The tax benefits recognized from such position are measured based on the amount for which there is a greater than 50% likelihood of being realized upon settlement. Liabilities associated with uncertain tax positions are classified as long-term unless expected to be paid within one year. Interest and penalties related to uncertain tax positions, if any, are recorded in the provision for income taxes and classified with the related liability on the consolidated balance sheets. |
Loss Per Share Attributable to Bausch Health Companies Inc. | Loss Per Share Attributable to Bausch Health Companies Inc. Basic loss per share attributable to Bausch Health Companies Inc. is calculated by dividing Net loss attributable to Bausch Health Companies Inc. by the weighted-average number of common shares outstanding during the reporting period. |
Comprehensive loss | Comprehensive loss Comprehensive loss comprises Net loss and Other comprehensive loss. Other comprehensive loss includes items such as foreign currency translation adjustments, unrealized holding gains and losses on available-for-sale and other investments and certain pension and other postretirement benefit plan adjustments. Accumulated other comprehensive loss is recorded as a component of shareholders’ equity. |
Contingencies | Contingencies In the normal course of business, the Company is subject to loss contingencies, such as claims and assessments arising from litigation and other legal proceedings, contractual indemnities, product and environmental liabilities and tax matters. Accruals for loss contingencies are recorded when the Company determines that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. If the estimate of the amount of the loss is a range and some amount within the range appears to be a better estimate than any other amount within the range, that amount is accrued as a liability. If no amount within the range is a better estimate than any other amount, the minimum amount of the range is accrued as a liability. These accruals are adjusted periodically as assessments change or additional information becomes available. |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors various retirement and pension plans, including defined benefit pension plans, defined contribution plans and a participatory defined benefit postretirement plan. The determination of defined benefit pension and postretirement plan obligations and their associated expenses requires the use of actuarial valuations to estimate the benefits employees earn while working, as well as the present value of those benefits. Net actuarial gains and losses that exceed 10 percent of the greater of the plan’s projected benefit obligations or the market-related value of assets are amortized to earnings over the shorter of the estimated average future service period of the plan participants (or the estimated average future lifetime of the plan participants if the majority of plan participants are inactive) or the period until any anticipated final plan settlements. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance on the impairment of financial instruments requiring an impairment model based on expected losses rather than incurred losses. Under this guidance, an entity recognizes as an allowance its estimate of expected credit losses. The guidance was effective for the Company beginning January 1, 2020 and was applied using a modified retrospective approach through a cumulative-effect adjustment to accumulated deficit, which resulted in an increase to Accumulated deficit of less than $1 million. The application of this guidance did not have a material effect on the Company’s results of operations and cash flows. In August 2018, the FASB issued guidance modifying the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The guidance was effective for annual periods ending after December 15, 2020. The application of this guidance did not have a material effect on the Company’s disclosures. In December 2019, the FASB issued guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance was effective for the Company beginning January 1, 2021. The application of this guidance did not have a material effect on the Company’s financial position, results of operations and cash flows. In March 2020, the FASB issued guidance providing optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or a reference rate that is expected to be discontinued as a result of reference rate reform. Optional expedients are provided for contract modification accounting within the areas of receivables, debt, leases, derivatives and hedging. The optional amendments are effective for all entities |
Segment Reporting | 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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of activity in allowance for credit losses | The activity in the allowance for credit losses for trade receivables was as follows: (in millions) 2022 2021 2020 Balance, beginning of period $ 35 $ 39 $ 48 Retrospective effect of application of new accounting standard — — 1 Provision for expected credit losses 5 (2) 2 Write-offs charged against the allowance (6) (3) (12) Recoveries of amounts previously written off 2 2 3 Foreign exchange and other (3) (1) (3) Balance, end of period $ 33 $ 35 $ 39 |
Schedule of estimated useful lives of property, plant and equipment | Depreciation is calculated using the straight-line method, commencing when the assets become available for productive use, based on the following estimated useful lives: Land improvements 15 - 30 years Buildings and improvements Up to 40 years Machinery and equipment 3 - 20 years Other equipment 3 - 10 years Equipment on operating lease Up to 5 years Leasehold improvements Lesser of term of lease or 10 years |
Schedule of estimated useful lives of intangible assets | Amortization is calculated primarily using the straight-line method based on the following estimated useful lives: Product brands 1 - 20 years Corporate brands 9 - 20 years Product rights/patents 4 - 15 years Partner relationships 7 - 9 years Out-licensed technology and other 8 - 9 years |
Summary of variable consideration provisions | The following table presents the activity and ending balances of the Company’s variable consideration provisions the years 2022 and 2021. (in millions) Discounts Returns Rebates Chargebacks Distribution Total Reserve balance, January 1, 2021 $ 190 $ 575 $ 779 $ 184 $ 85 $ 1,813 Current period provision 625 131 2,462 1,999 211 5,428 Payments and credits (593) (224) (2,297) (2,013) (251) (5,378) Reserve balance, December 31, 2021 222 482 944 170 45 1,863 Current period provision 571 131 2,587 2,064 218 5,571 Payments and credits (605) (186) (2,508) (2,038) (187) (5,524) Reserve balance, December 31, 2022 $ 188 $ 427 $ 1,023 $ 196 $ 76 $ 1,910 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of components and classification of financial assets and liabilities measured at fair value on a recurring basis | The following fair value hierarchy table presents the components and classification of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of: December 31, 2022 December 31, 2021 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets: Cash equivalents $ 94 $ 85 $ 9 $ — $ 76 $ 58 $ 18 $ — Restricted cash and other settlement deposits $ 27 $ 27 $ — $ — $ 1,537 $ 1,537 $ — $ — Foreign currency exchange contracts $ 6 $ — $ 6 $ — $ 1 $ — $ 1 $ — Liabilities: Acquisition-related contingent consideration $ 241 $ — $ — $ 241 $ 241 $ — $ — $ 241 Cross-currency swaps $ 39 $ — $ 39 $ — $ — $ — $ — $ — Foreign currency exchange contracts $ 4 $ — $ 4 $ — $ — $ — $ — $ — |
Schedule of assets and liabilities associated with derivatives, included in the Consolidated Balance Sheets | The assets and liabilities associated with the Company’s cross-currency swaps as included in the Consolidated Balance Sheets as of December 31, 2022 and 2021 are as follows: (in millions) 2022 2021 Other non-current liabilities $ 45 $ — Prepaid expenses and other current assets $ 6 $ — Net fair value $ 39 $ — The assets and liabilities associated with the Company’s foreign exchange contracts as included in the Consolidated Balance Sheets as of December 31, 2022 and 2021 are as follows: (in millions) 2022 2021 Accrued and other current liabilities $ (4) $ — Prepaid expenses and other current assets $ 6 $ 1 Net fair value $ 2 $ 1 |
Schedule of effect of hedging instruments on financial statements | The following table presents the effect of hedging instruments on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Loss for 2022 and 2021: (in millions) 2022 2021 Gain (loss) recognized in Other comprehensive loss $ (45) $ 77 Gain excluded from assessment of hedge effectiveness $ 6 $ 20 Location of gain of excluded component Interest Expense |
Schedule of foreign exchange contracts on the Consolidated Statements of Operations and Consolidated Statements of Cash Flows | The following table presents the effect of the Company’s foreign exchange contracts on the Consolidated Statements of Operations and the Consolidated Statements of Cash Flows for 2022 and 2021: (in millions) 2022 2021 Gain related to changes in fair value $ 2 $ 9 Loss related to settlements $ (20) $ (17) |
Schedule of reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs | The following table presents a reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs (Level 3) for the years 2022 and 2021: (in millions) 2022 2021 Beginning balance, January 1, $ 241 $ 328 Adjustments to Acquisition-related contingent consideration: Accretion for the time value of money $ 16 $ 17 Fair value adjustments 12 (6) Acquisition-related contingent consideration adjustments 28 11 Payments / Settlements (28) (99) Foreign currency translation adjustment included in other comprehensive loss — 1 Ending balance, December 31, 241 241 Current portion 34 39 Non-current portion $ 207 $ 202 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of the components of inventories | Inventories, net, as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Raw materials $ 326 $ 279 Work in process 98 112 Finished goods 666 602 $ 1,090 $ 993 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | The major components of property, plant and equipment as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Land $ 71 $ 74 Buildings and improvements 798 675 Machinery and equipment 1,951 1,678 Other equipment and leasehold improvements 342 342 Equipment on operating lease 78 73 Construction in progress 280 576 3,520 3,418 Accumulated depreciation (1,920) (1,820) $ 1,600 $ 1,598 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of finite-lived intangible assets | The major components of intangible assets as of December 31, 2022 and 2021 consist of: Weighted- 2022 2021 (in millions) Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Product brands 5 $ 20,840 $ (17,196) $ 3,644 $ 20,842 $ (16,169) $ 4,673 Corporate brands 5 899 (542) 357 902 (473) 429 Product rights/patents 4 3,347 (3,251) 96 3,321 (3,174) 147 Partner relationships 0 149 (149) — 158 (158) — Technology and other 8 201 (196) 5 207 (206) 1 Total finite-lived intangible assets 25,436 (21,334) 4,102 25,430 (20,180) 5,250 B&L Trademark NA 1,698 — 1,698 1,698 — 1,698 $ 27,134 $ (21,334) $ 5,800 $ 27,128 $ (20,180) $ 6,948 |
Schedule of components of indefinite-lived intangible assets | The major components of intangible assets as of December 31, 2022 and 2021 consist of: Weighted- 2022 2021 (in millions) Gross Accumulated Net Gross Accumulated Net Finite-lived intangible assets: Product brands 5 $ 20,840 $ (17,196) $ 3,644 $ 20,842 $ (16,169) $ 4,673 Corporate brands 5 899 (542) 357 902 (473) 429 Product rights/patents 4 3,347 (3,251) 96 3,321 (3,174) 147 Partner relationships 0 149 (149) — 158 (158) — Technology and other 8 201 (196) 5 207 (206) 1 Total finite-lived intangible assets 25,436 (21,334) 4,102 25,430 (20,180) 5,250 B&L Trademark NA 1,698 — 1,698 1,698 — 1,698 $ 27,134 $ (21,334) $ 5,800 $ 27,128 $ (20,180) $ 6,948 |
Schedule of estimated aggregate amortization expense for each of the five succeeding years | Estimated amortization expense of finite-lived intangible assets for the five years ending December 31 and thereafter are as follows: (in millions) 2023 2024 2025 2026 2027 Thereafter Total Amortization $ 1,027 $ 904 $ 798 $ 670 $ 633 $ 70 $ 4,102 |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amounts of goodwill during the years ended December 31, 2022, 2021 and 2020 were as follows: (in millions) Bausch + Bausch + Salix International Ortho Dermatologics Solta Medical Diversified Products Total Balance, January 1, 2020 $ 5,786 $ — $ 3,159 $ — $ 1,267 $ — $ 2,914 13,126 Assets held for sale reclassified to goodwill 18 — — — — — — 18 Goodwill reclassified to assets held for sale (Note 3) (217) — — — — — — (217) Foreign exchange and other 117 — — — — — — 117 Balance, December 31, 2020 5,704 — 3,159 — 1,267 — 2,914 13,044 Realignment of segment goodwill (5,704) 5,395 — 887 — — (578) — Impairment — — — — (469) — — (469) Foreign exchange and other — (77) — (62) — — 21 (118) Balance, December 31, 2021 — 5,318 3,159 825 798 — 2,357 12,457 Realignment of segment goodwill — — — — (798) 115 683 — Additions — 5 — — — — — 5 Impairment — — — — — — (824) (824) Foreign exchange and other — (77) — (36) — — 22 (91) Balance, December 31, 2022 $ — $ 5,246 $ 3,159 $ 789 $ — $ 115 $ 2,238 $ 11,547 |
ACCRUED AND OTHER CURRENT LIA_2
ACCRUED AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of accrued and other current liabilities | Accrued and other current liabilities as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Legal matters and related fees $ 326 $ 1,890 Product rebates 983 908 Product returns 427 482 Employee compensation and benefit costs 300 336 Interest 208 328 Income taxes payable 30 98 Other 714 749 $ 2,988 $ 4,791 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Principal amounts of debt obligations and principal amounts of debt obligations net of premiums, discounts and issuance costs as of December 31, 2022 and 2021 consists of the following: 2022 2021 (in millions) Maturity Principal Amount Net of Premiums, Discounts and Issuance Costs Principal Amount Net of Premiums, Discounts and Issuance Costs Senior Secured Credit Facilities: 2018 Restated Credit Agreement 2023 Revolving Credit Facility June 2023 $ — $ — $ 285 $ 285 June 2025 Term Loan B Facility June 2025 — — 2,829 2,772 November 2025 Term Loan B Facility November 2025 — — 994 984 2022 Amended Credit Agreement 2027 Revolving Credit Facility February 2027 470 470 — — February 2027 Term Loan B Facility February 2027 2,437 2,392 — — B+L Credit Facilities B+L Revolving Credit Facility May 2027 — — — — B+L Term Facility May 2027 2,488 2,439 — — Senior Secured Notes: 5.500% Secured Notes November 2025 1,680 1,672 1,750 1,739 6.125% Secured Notes February 2027 1,000 987 — — 5.750% Secured Notes August 2027 500 496 500 495 4.875% Secured Notes June 2028 1,600 1,583 1,600 1,580 11.00% First Lien Secured Notes September 2028 1,774 2,826 — — 14.00% Second Lien Secured Notes October 2030 352 711 — — 9.00% Intermediate Holdco Secured Notes January 2028 999 1,423 — — Senior Unsecured Notes: 6.125% April 2025 — — 2,650 2,640 9.000% December 2025 959 951 1,500 1,482 9.250% April 2026 741 737 1,500 1,489 8.500% January 2027 643 644 1,750 1,754 7.000% January 2028 171 170 750 743 5.000% January 2028 433 429 1,250 1,238 6.250% February 2029 821 813 1,500 1,483 5.000% February 2029 452 448 1,000 990 7.250% May 2029 337 334 750 742 5.250% January 2030 779 771 1,250 1,237 5.250% February 2031 462 458 1,000 989 Other Various 12 12 12 12 Total long-term debt and other $ 19,110 20,766 $ 22,870 22,654 Less: Current portion of long-term debt and other 432 — Non-current portion of long-term debt $ 20,334 $ 22,654 |
Schedule of aggregate principal amounts of debt validly tendered and subsequently accepted | The aggregate principal amounts of the Existing Unsecured Senior Notes that were validly tendered and accepted by the Company in the Exchange Offer are set forth below: (in millions) 9.00% Senior Notes due 2025 $ 541 9.25% Senior Notes due 2026 752 8.50% Senior Notes due 2027 1,099 7.00% Senior Notes due 2028 540 5.00% Senior Notes due 2028 710 7.25% Senior Notes due 2029 373 6.25% Senior Notes due 2029 540 5.00% Senior Notes due 2029 371 5.25% Senior Notes due 2030 332 5.25% Senior Notes due 2031 336 Total $ 5,594 |
Schedule of aggregate maturities of long-term debt | Maturities and mandatory payments of debt obligations for the five succeeding years ending December 31 and thereafter are as follows: (in millions) 2023 $ 150 2024 150 2025 2,789 2026 891 2027 6,938 Thereafter 8,192 Total debt obligations 19,110 Unamortized premiums, discounts and issuance costs 1,656 Total long-term debt and other $ 20,766 |
PENSION AND POSTRETIREMENT EM_2
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of amounts recognized in accumulated other comprehensive loss | The amounts included in Accumulated other comprehensive loss as of December 31, 2022 and 2021 were as follows: Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2022 2021 2022 2021 Unrecognized actuarial (losses) gains $ (35) $ (18) $ (21) $ (42) $ 3 $ (2) Unrecognized prior service credits $ — $ — $ 23 $ 25 $ 6 $ 8 |
Components of net periodic benefit cost | The table below provides the components of net periodic (benefit) cost for the Company’s defined benefit pension plans and postretirement benefit plan in 2022, 2021 and 2020: Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2020 2022 2021 2020 2022 2021 2020 Service cost $ 1 $ 1 $ 1 $ 4 $ 3 $ 3 $ — $ — $ — Interest cost 5 4 6 4 4 4 1 1 1 Expected return on plan assets (10) (11) (13) (4) (5) (5) — — — Amortization of net loss — — — 1 2 2 — — — Amortization of prior service credit — — — (1) (1) (1) (2) (3) (3) Settlement loss recognized 1 — — 8 8 — — — — Net periodic (benefit) cost $ (3) $ (6) $ (6) $ 12 $ 11 $ 3 $ (1) $ (2) $ (2) |
Components of the change in projected benefit obligations, change in plan assets and funded status | The table below presents components of the change in projected benefit obligation, change in plan assets and funded status for 2022 and 2021: Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2022 2021 2022 2021 Change in Projected Benefit Obligation Projected benefit obligation, beginning of year $ 220 $ 236 $ 228 $ 294 $ 35 $ 39 Service cost 1 1 4 3 — — Interest cost 5 4 4 4 1 1 Settlements (7) (4) (50) (43) — — Benefits paid (11) (11) (4) (4) (4) (3) Actuarial gain (36) (6) (54) (8) (5) (2) Currency translation adjustments — — (15) (18) — — Projected benefit obligation, end of year 172 220 113 228 27 35 Change in Plan Assets Fair value of plan assets, beginning of year 224 231 175 189 — — Actual return on plan assets (44) 8 (41) 18 — — Company contributions — — 25 28 4 3 Settlements (7) (4) (50) (43) — — Benefits paid (11) (11) (4) (4) (4) (3) Currency translation adjustments — — (12) (13) — — Fair value of plan assets, end of year 162 224 93 175 — — Funded status, end of year $ (10) $ 4 $ (20) $ (53) $ (27) $ (35) Recognized as: Other non-current assets $ — $ 4 $ 22 $ — $ — $ — Accrued and other current liabilities $ — $ — $ 3 $ 2 $ 4 $ 4 Other non-current liabilities $ 10 $ — $ 38 $ 51 $ 23 $ 31 |
Schedule of underfunded plans | Information for the underfunded pension benefit plans is as follows: U.S. Plan Non-U.S. Plans (in millions) 2022 2021 2022 2021 Projected benefit obligation $ 172 $ — $ 48 $ 228 Accumulated benefit obligation 172 — 40 219 Fair value of plan assets 162 — 7 175 |
Future benefit payments for the pension benefit plans | Future benefit payments over the next 10 years for the pension benefit plans and the postretirement benefit plan, which reflect expected future service, as appropriate, are expected to be paid as follows: (in millions) Pension Benefit Plans U.S. Postretirement U.S. Plan Non-U.S. Plans 2023 $ 14 $ 7 $ 4 2024 18 6 3 2025 17 6 3 2026 16 6 3 2027 17 6 3 2028-2032 70 37 10 |
Weighted-average assumptions used to determine net periodic benefit costs and benefit obligations | The weighted-average assumptions used to determine net periodic benefit costs and benefit obligations for 2022, 2021 and 2020 were as follows: Pension Benefit Plans U.S. Postretirement Benefit Plan 2022 2021 2020 2022 2021 2020 For Determining Net Periodic (Benefit) Cost U.S. Plans: Discount rate 2.69 % 2.25 % 3.16 % 2.57 % 2.09 % 3.04 % Expected rate of return on plan assets 4.50 % 5.00 % 6.25 % — — — Rate of compensation increase — — — — — — Interest crediting rate 4.75 % 4.75 % 4.75 % Non-U.S. Plans: Discount rate 4.60 % 1.37 % 1.68 % Expected rate of return on plan assets 5.23 % 2.74 % 2.98 % Rate of compensation increase 3.53 % 2.60 % 3.05 % Interest crediting rate — — — Pension Benefit Plans U.S. Postretirement Benefit Plan 2022 2021 2022 2021 For Determining Benefit Obligation U.S. Plans: Discount rate 5.41 % 2.69 % 5.39 % 2.57 % Rate of compensation increase — — — — Interest crediting rate 4.75 % 4.75 % Non-U.S. Plans: Discount rate 6.67 % 1.72 % Rate of compensation increase 3.71 % 2.63 % Interest crediting rate — — |
Actual asset allocations | The following presents the actual asset allocation as of December 31, 2022 and 2021: 2022 2021 U.S. Plan Cash and cash equivalents 1 % 1 % Equity securities 40 % 30 % Fixed income securities 59 % 69 % Non-U.S. Plans Cash and cash equivalents 6 % 9 % Equity securities 23 % 31 % Fixed income securities 45 % 39 % Other 26 % 21 % |
Fair value of pension and postretirement benefit plan assets assumed in connection with the Acquisition | The table below presents total plan assets by investment category as of December 31, 2022 and 2021 and the classification of each investment category within the fair value hierarchy with respect to the inputs used to measure fair value. There were no transfers between Level 1 and Level 2 during 2022 and 2021. Pension Benefit Plans - U.S. Plans December 31, 2022 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 2 $ — $ — $ 2 $ 1 $ — $ — $ 1 Commingled funds: Equity securities: U.S. broad market — 34 — 34 — 36 — 36 Emerging markets — 7 — 7 — 6 — 6 Worldwide developed markets — 14 — 14 — 16 — 16 Other assets — 10 — 10 — 10 — 10 Fixed income securities: Investment grade — 95 — 95 — 155 — 155 $ 2 $ 160 $ — $ 162 $ 1 $ 223 $ — $ 224 Pension Benefit Plans - Non-U.S. Plans December 31, 2022 December 31, 2021 (in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents $ — $ 6 $ — $ 6 $ — $ 15 $ — $ 15 Commingled funds: Equity securities: Emerging markets — 1 — 1 — 3 — 3 Worldwide developed markets — 21 — 21 — 51 — 51 Fixed income securities: Investment grade — 2 — 2 — 3 — 3 Government bond funds 1 39 — 40 1 65 — 66 Other assets — 12 12 24 — 35 2 37 $ 1 $ 81 $ 12 $ 94 $ 1 $ 172 $ 2 $ 175 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of right-of-use assets and right-of-use liabilities | Right-of-use assets and lease liabilities associated with the Company’s operating leases are included in the Consolidated Balance Sheet as of December 31, 2022 and 2021 as follows: (in millions) 2022 2021 Right-of-use assets included in: Other non-current assets $ 221 $ 247 Lease liabilities included in: Accrued and other current liabilities $ 50 $ 50 Other non-current liabilities 184 214 Total lease liabilities $ 234 $ 264 |
Summary of lease expenses | Lease expense for the years 2022, 2021 and 2020 include: (in millions) 2022 2021 2020 Operating lease costs $ 62 $ 67 $ 65 Variable operating lease costs $ 15 $ 12 $ 12 |
Summary of other operating lease information | Other information related to operating leases for 2022, 2021 and 2020 is as follows: (dollars in millions) 2022 2021 2020 Cash paid from operating cash flows for amounts included in the measurement of lease liabilities $ 70 $ 76 $ 74 Right-of-use assets obtained in exchange for new operating lease liabilities $ 28 $ 46 $ 39 Weighted-average remaining lease term 6.4 years 7.2 years 7.6 years Weighted-average discount rate 6.5 % 6.1 % 6.2 % |
Summary of operating lease future payments | As of December 31, 2022, future payments under noncancelable operating leases for each of the five succeeding years ending December 31 and thereafter are as follows: (in millions) 2023 $ 63 2024 49 2025 42 2026 36 2027 34 Thereafter 63 Total 287 Less: Imputed interest 53 Present value of remaining lease payments 234 Less: Current portion 50 Non-current portion $ 184 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the components and classification of share-based compensation expense | The following table summarizes the components and classification of the Company’s share-based compensation expense related to stock options and RSUs for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Stock options $ 15 $ 15 $ 15 RSUs 111 113 90 Share-based compensation expense $ 126 $ 128 $ 105 Research and development expenses $ 12 $ 10 $ 11 Selling, general and administrative expenses 114 118 94 Share-based compensation expense $ 126 $ 128 $ 105 |
Schedule of weighted-average assumption as of the date of grant using the Black Scholes option-pricing model | The fair values of all stock options granted for the years 2022, 2021 and 2020 were estimated as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions: 2022 2021 2020 Expected stock option life (years) 3.0 3.0 3.0 Expected volatility 37.8 % 50.2 % 38.7 % Risk-free interest rate 1.8 % 0.4 % 1.2 % Expected dividend yield — % — % — % 2022 Expected stock option life (years) 3.0 Expected volatility 31.5 % Risk-free interest rate 3.1 % Expected dividend yield — % |
Summary of stock option activity | The following table summarizes stock option activity during 2022: (in millions, except per share amounts) Options Weighted- Weighted- Aggregate Outstanding, January 1, 2022 8.9 $ 27.65 Granted 2.6 $ 23.95 Exercised (0.1) $ 19.57 Expired or forfeited (0.6) $ 28.29 Outstanding, December 31, 2022 10.8 $ 26.83 6.0 $ — Vested and expected to vest, December 31, 2022 10.3 $ 26.86 5.9 $ — Vested and exercisable, December 31, 2022 6.9 $ 27.39 4.5 $ — The following table summarizes stock option activity under Bausch + Lomb’s Plan during 2022: (in millions, except per share amounts) Options Weighted- Weighted- Aggregate Outstanding, January 1, 2022 — $ — Granted 6.4 $ 18.00 Exercised — $ — Expired or forfeited (0.1) $ 18.00 Outstanding, December 31, 2022 6.3 $ 18.00 9.4 $ — Vested and expected to vest, December 31, 2022 1.2 $ 18.00 4.5 $ — Vested and exercisable, December 31, 2022 — $ — 0 $ — |
Summary of non-vested time-based RSU activity | The following table summarizes non-vested time-based RSU activity during 2022: (in millions, except per share amounts) Time-Based Weighted- Non-vested, January 1, 2022 5.4 $ 28.16 Granted 6.4 $ 11.44 Vested (3.0) $ 26.55 Forfeited (0.5) $ 24.63 Non-vested, December 31, 2022 8.3 $ 15.97 The following table summarizes non-vested time-based RSU activity under Bausch + Lomb’s Plan during 2022: (in millions, except per share amounts) Performance-based Weighted- Non-vested, January 1, 2022 — $ — Granted 4.3 $ 16.70 Vested — $ — Forfeited (0.1) $ 17.93 Non-vested, December 31, 2022 4.2 $ 16.67 |
Schedule of assumptions used to calculate the fair values of performance-based RSUs | The fair values of TSR performance-based RSUs granted during 2021 and 2020 were estimated with the following assumptions: 2022 2021 2020 Contractual term (years) N/A 3.0 3.0 Expected Company share volatility N/A 52% 38.6% Risk-free interest rate N/A 0.4% 1.2% |
Summary of non-vested performance-based RSU activity | The following table summarizes non-vested performance-based RSU activity during 2022: (in millions, except per share amounts) Performance-based Weighted- Non-vested, January 1, 2022 2.3 $ 33.92 Granted 0.4 $ 9.40 Vested (1.0) $ 30.89 Forfeited (0.1) $ 34.32 Non-vested, December 31, 2022 1.6 $ 29.83 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of the components of accumulated other comprehensive loss | Accumulated other comprehensive loss as of December 31, 2022 and 2021 consists of: (in millions) 2022 2021 Foreign currency translation adjustment $ (2,038) $ (1,905) Pension adjustment, net of tax (18) (19) Accumulated other comprehensive loss $ (2,056) $ (1,924) |
RESEARCH AND DEVELOPMENT (Table
RESEARCH AND DEVELOPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Research and Development [Abstract] | |
Summary of research and development | Research and development costs for the years 2022, 2021 and 2020 consists of: (in millions) 2022 2021 2020 Product related research and development $ 500 $ 440 $ 420 Quality assurance 29 25 32 Research and development $ 529 $ 465 $ 452 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of other expense, net | Other expense, net for the years 2022, 2021 and 2020 consists of: (in millions) 2022 2021 2020 Litigation and other matters $ 9 $ 356 $ 422 Acquired in-process research and development costs 1 8 32 Net gain on sale of assets (5) (2) (1) Acquisition-related contingent consideration 29 11 48 Other, net 1 — 1 Other expense, net $ 35 $ 373 $ 502 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of loss before income taxes | The components of Loss before income taxes for 2022, 2021 and 2020 consist of: (in millions) 2022 2021 2020 Domestic $ 64 $ (323) $ (410) Foreign (193) (701) (524) $ (129) $ (1,024) $ (934) |
Components of (provision for) benefit from income taxes | The components of (Provision for) benefit from income taxes for 2022, 2021 and 2020 consist of: (in millions) 2022 2021 2020 Current: Domestic $ (15) $ (23) $ (8) Foreign (256) 74 (216) (271) 51 (224) Deferred: Domestic 14 20 9 Foreign 174 16 590 188 36 599 $ (83) $ 87 $ 375 |
Reconciliation of (provision for) benefit from income taxes from the expected amount calculated by applying the Canadian statutory rate to income (loss) before income taxes | The (Provision for) benefit from income taxes differs from the expected amount calculated by applying the Company’s Canadian statutory rate of 26.9% to Loss before income taxes for 2022, 2021 and 2020 as follows: (in millions) 2022 2021 2020 Loss before income taxes $ (129) $ (1,024) $ (934) (Provision for) benefit from income taxes Expected benefit from income taxes at Canadian statutory rate $ 35 $ 275 $ 251 Non-deductible amount of share-based compensation (19) (9) (9) Adjustments to tax attributes 53 (59) 26 Change in valuation allowance related to foreign tax credits and NOLs 100 28 62 Change in valuation allowance on Canadian deferred tax assets and tax rate changes 24 40 687 Change in uncertain tax positions (50) 112 (163) Foreign tax rate differences (57) (198) (128) Non-deductible portion of Goodwill impairments (175) (99) — Tax benefit on intra-entity transfers — — (338) Other 6 (3) (13) $ (83) $ 87 $ 375 |
Schedule of tax effect of major items recorded as deferred tax assets and liabilities and valuation allowance | Deferred tax assets and liabilities as of December 31, 2022 and 2021 consist of: (in millions) 2022 2021 Deferred tax assets: Tax loss carryforwards $ 2,872 $ 2,973 Provisions 859 991 Debt discounts and deferred financing costs 370 — Research and development tax credits 140 173 Scientific Research and Experimental Development pool 48 52 Tax credit carryforwards 14 14 Deferred revenue 2 3 Prepaid expenses 26 26 Share-based compensation 22 17 Other 24 38 Total deferred tax assets 4,377 4,287 Less valuation allowance (2,023) (2,222) Deferred tax assets net of valuation allowance 2,354 2,065 Deferred tax liabilities: Intangible assets 191 188 Plant, equipment and technology 74 44 Outside basis differences 125 110 Total deferred tax liabilities 390 342 Net deferred tax asset $ 1,964 $ 1,723 The following table presents a reconciliation of the deferred tax asset valuation allowance for 2022, 2021 and 2020: (in millions) 2022 2021 2020 Balance, beginning of year $ 2,222 $ 2,252 $ 2,831 Charged to Benefit from income taxes (124) (63) (773) Charged to other accounts (75) 33 194 Balance, end of year $ 2,023 $ 2,222 $ 2,252 |
Summary of open tax years by jurisdiction | Jurisdiction: Open Years United States - Federal 2015 - 2021 Canada 2012 - 2021 Germany 2014 - 2021 France 2013 - 2021 Ireland 2018 - 2021 Australia 2018 - 2021 Luxembourg 2017 - 2021 |
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | The following table presents a reconciliation of the unrecognized tax benefits for 2022, 2021 and 2020: (in millions) 2022 2021 2020 Balance, beginning of year $ 927 $ 1,025 $ 1,002 Additions based on tax positions related to the current year 156 79 66 Additions for tax positions of prior years 10 121 171 Reductions for tax positions of prior years (127) (129) (209) Lapse of statute of limitations (85) (169) (5) Balance, end of year $ 881 $ 927 $ 1,025 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of loss per share | Basic and diluted loss per share attributable to Bausch Health Companies Inc. for 2022, 2021 and 2020 was calculated as follows: (in millions, except per share amounts) 2022 2021 2020 Net loss attributable to Bausch Health Companies Inc. $ (225) $ (948) $ (560) Basic and diluted weighted-average common shares outstanding 362.0 358.9 355.0 Basic and diluted loss per share attributable to Bausch Health Companies Inc. $ (0.62) $ (2.64) $ (1.58) |
SUPPLEMENTAL CASH FLOW DISCLO_2
SUPPLEMENTAL CASH FLOW DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow disclosures | Supplemental cash flow disclosures for 2022, 2021 and 2020 are as follows: (in millions) 2022 2021 2020 Other payments Interest paid $ 1,540 $ 1,419 $ 1,474 Income taxes paid $ 266 $ 240 $ 162 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment revenues and profit | Segment revenues and profits for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Revenues: Salix $ 2,090 $ 2,074 $ 1,904 International 988 1,166 1,181 Solta Medical 300 308 253 Diversified Products 978 1,121 1,274 Bausch + Lomb 3,768 3,765 3,415 Total revenues $ 8,124 $ 8,434 $ 8,027 Segment profit: Salix $ 1,489 $ 1,493 $ 1,338 International 324 403 386 Solta Medical 135 167 131 Diversified Products 612 722 814 Bausch + Lomb 874 958 909 Total 3,434 3,743 3,578 Corporate (828) (792) (619) Amortization of intangible assets (1,215) (1,375) (1,645) Goodwill impairments (824) (469) — Asset impairments, including loss on assets held for sale (15) (234) (114) Restructuring, integration, separation and IPO costs (63) (50) (22) Other expense, net (35) (373) (502) Operating income 454 450 676 Interest income 14 7 13 Interest expense (1,464) (1,426) (1,534) Gain (loss) on extinguishment of debt 875 (62) (59) Foreign exchange and other (8) 7 (30) Loss before income taxes $ (129) $ (1,024) $ (934) |
Schedule of capital expenditures, depreciation and amortization by segment | Capital expenditures by segment for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 Capital expenditures: Salix $ 3 $ 2 $ 3 International 21 22 29 Solta Medical 3 2 4 Diversified Products 1 — — Bausch + Lomb 178 201 253 206 227 289 Corporate 14 42 13 Total capital expenditures $ 220 $ 269 $ 302 |
Schedule of revenues by segment and by product category | Revenues by segment and product category were as follows: Salix International Solta Medical Diversified Products Bausch + Lomb Total (in millions) For the year ended December 31, 2022 Pharmaceuticals $ 2,090 $ 279 $ — $ 826 $ 481 $ 3,676 Devices — — 300 — 1,572 1,872 OTC — 151 — 7 1,453 1,611 Branded and Other Generics — 527 — 120 240 887 Other revenues — 31 — 25 22 78 $ 2,090 $ 988 $ 300 $ 978 $ 3,768 $ 8,124 Salix International Solta Medical Diversified Products Bausch + Lomb Total For the year ended December 31, 2021 Pharmaceuticals $ 2,066 $ 259 $ — $ 924 $ 514 $ 3,763 Devices — — 308 — 1,595 1,903 OTC — 136 — 7 1,389 1,532 Branded and Other Generics — 738 — 167 239 1,144 Other revenues 8 33 — 23 28 92 $ 2,074 $ 1,166 $ 308 $ 1,121 $ 3,765 $ 8,434 Salix International Solta Medical Diversified Products Bausch + Lomb Total For the year ended December 31, 2020 Pharmaceuticals $ 1,899 $ 255 $ — $ 1,020 $ 506 $ 3,680 Devices — — 253 — 1,313 1,566 OTC — 112 — 7 1,311 1,430 Branded and Other Generics — 775 — 219 254 1,248 Other revenues 5 39 — 28 31 103 $ 1,904 $ 1,181 $ 253 $ 1,274 $ 3,415 $ 8,027 |
Schedule of revenues by geographic region | Revenues are attributed to a geographic region based on the location of the customer for the years 2022, 2021 and 2020 were as follows: (in millions) 2022 2021 2020 U.S. and Puerto Rico $ 4,836 $ 4,887 $ 4,791 China 413 490 341 Canada 351 343 331 Poland 278 280 238 Mexico 276 256 225 Japan 200 230 226 France 203 208 179 Russia 181 160 137 Germany 147 154 144 United Kingdom 115 116 86 Spain 84 88 78 South Korea 77 76 68 Italy 76 80 71 Other 887 1,066 1,112 $ 8,124 $ 8,434 $ 8,027 |
Schedule of long-lived assets by geographic region | 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, 2022 and 2021 were as follows: (in millions) 2022 2021 U.S. and Puerto Rico $ 725 $ 743 Ireland 363 336 Canada 126 123 Germany 89 87 Poland 65 75 Mexico 46 45 France 44 39 China 26 30 Serbia 23 25 Italy 20 21 Other 73 74 $ 1,600 $ 1,598 |
Schedule of external customers that accounted for 10% or more of total revenues | Customers that accounted for 10% or more of total revenues were as follows: 2022 2021 2020 AmerisourceBergen Corporation 18% 18% 17% McKesson Corporation 15% 16% 17% Cardinal Health, Inc. 13% 12% 13% |
DESCRIPTION OF BUSINESS - Narra
DESCRIPTION OF BUSINESS - Narrative (Details) | Dec. 31, 2022 country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates | 100 |
Bausch + Lomb | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Ownership percentage by parent | 89% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 01, 2022 | May 10, 2022 | Dec. 31, 2022 | Dec. 31, 2021 |
Subsidiary, Sale of Stock [Line Items] | ||||
Common shares, outstanding (in shares) | 361,898,846 | 359,405,748 | ||
Bausch + Lomb | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Common shares, outstanding (in shares) | 310,449,643 | |||
Percentage of shares held | 89% | |||
IPO and Over-Allotment Option | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold, net proceeds | $ 675 | |||
B+L IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold (in shares) | 35,000,000 | |||
Price of shares sold (in usd per share) | $ 18 | |||
Over-Allotment | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold (in shares) | 4,550,357 | |||
Price of shares sold (in usd per share) | $ 18 | |||
Underwriters option to purchase additional shares, term | 30 days | |||
Number of additional shares available for issuance (in shares) | 5,250,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Concentrations of Credit Risk (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) wholesaler | Dec. 31, 2021 USD ($) | |
Concentrations of Credit Risk | ||
Maximum term of original maturity to classify instruments as cash and cash equivalents (less than) | 3 months | |
Percentage of net trade receivables accounted for by largest wholesale customers | 46% | |
Argentina, Belarus, Brazil, Greece, Russia, Serbia, South Africa, Turkey, Ukraine and Venezuela | ||
Concentrations of Credit Risk | ||
Net trade receivable | $ 136 | $ 78 |
Past due period for receivables to be negligible (less than) | 90 days | |
Period net trade receivable balance outstanding (more than) | 90 days | |
Portion of net trade receivables that is past due | $ 2 | |
Trade receivables | Three largest U.S. wholesaler customers | Credit concentration | ||
Concentrations of Credit Risk | ||
Number of largest wholesale customers | wholesaler | 3 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Allowance for doubtful accounts | $ 33 | $ 35 | $ 39 |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of period | 35 | 39 | 48 |
Retrospective effect of application of new accounting standard | 0 | 0 | 1 |
Provision for expected credit losses | 5 | (2) | 2 |
Write-offs charged against the allowance | (6) | (3) | (12) |
Recoveries of amounts previously written off | 2 | 2 | 3 |
Foreign exchange and other | (3) | (1) | (3) |
Balance, end of period | $ 33 | $ 35 | $ 39 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | Land improvements | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 15 years |
Minimum | Machinery and equipment | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 3 years |
Minimum | Other equipment | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum | Land improvements | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 30 years |
Maximum | Buildings and improvements | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 40 years |
Maximum | Machinery and equipment | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 20 years |
Maximum | Other equipment | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 10 years |
Maximum | Equipment on operating lease | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 5 years |
Maximum | Leasehold improvements | |
Property, plant and equipment [Line Items] | |
Estimated useful lives | 10 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Product brands | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Corporate brands | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Product rights/patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years |
Partner relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 0 years |
Out-licensed technology and other | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 8 years |
Minimum | Product brands | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Minimum | Corporate brands | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 9 years |
Minimum | Product rights/patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years |
Minimum | Partner relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
Minimum | Out-licensed technology and other | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 8 years |
Maximum | Product brands | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Maximum | Corporate brands | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 20 years |
Maximum | Product rights/patents | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Maximum | Partner relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 9 years |
Maximum | Out-licensed technology and other | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 9 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Variable Consideration Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | $ 1,863 | $ 1,813 |
Current period provision | 5,571 | 5,428 |
Payments and credits | (5,524) | (5,378) |
Balance, end of year | 1,910 | 1,863 |
Discounts and Allowances | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | 222 | 190 |
Current period provision | 571 | 625 |
Payments and credits | (605) | (593) |
Balance, end of year | 188 | 222 |
Returns | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | 482 | 575 |
Current period provision | 131 | 131 |
Payments and credits | (186) | (224) |
Balance, end of year | 427 | 482 |
Rebates | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | 944 | 779 |
Current period provision | 2,587 | 2,462 |
Payments and credits | (2,508) | (2,297) |
Balance, end of year | 1,023 | 944 |
Chargebacks | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | 170 | 184 |
Current period provision | 2,064 | 1,999 |
Payments and credits | (2,038) | (2,013) |
Balance, end of year | 196 | 170 |
Distribution Fees | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | 45 | 85 |
Current period provision | 218 | 211 |
Payments and credits | (187) | (251) |
Balance, end of year | $ 76 | $ 45 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Cooperative advertising credits included in rebates | $ 1,910 | $ 1,863 | $ 1,813 |
Settlement period for cash discounts and allowances | 1 month | ||
Sales return provisions | $ 5,571 | 5,428 | |
Total revenues | 8,124 | 8,434 | 8,027 |
Price Appreciation Credit | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Total revenues | $ 10 | 17 | |
Minimum | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Payment terms | 30 days | ||
Maximum | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Payment terms | 90 days | ||
Rebates, Advertising Credits Portion | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Cooperative advertising credits included in rebates | $ 40 | 36 | |
Returns | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Cooperative advertising credits included in rebates | 427 | 482 | $ 575 |
Sales return provisions | 131 | 131 | |
Reduction in variable consideration provision, adjustment | $ 21 | $ 28 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) | Dec. 31, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Lease renewal term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Lease renewal term | 5 years |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 518 | $ 515 | $ 451 |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Capitalized interest | $ 66 | $ 60 |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Tax benefit recognition, measurement percentage (greater than) | 50% |
Minimum period to classify uncertain tax position liabilities as long term liabilities | 1 year |
SIGNIFICANT ACCOUNTING POLIC_15
SIGNIFICANT ACCOUNTING POLICIES - Employee Benefit Plans (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Threshold percentage for amortization of net actuarial gains and losses | 10% |
SIGNIFICANT ACCOUNTING POLIC_16
SIGNIFICANT ACCOUNTING POLICIES - Adoption of New Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to accumulated deficit (less than) | $ (260) | $ 34 | $ (605) | $ (1,136) |
Accumulated Deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to accumulated deficit (less than) | $ 9,186 | $ 8,961 | $ 8,013 | 7,452 |
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to accumulated deficit (less than) | 1 | |||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to accumulated deficit (less than) | $ 1 |
ACQUISITIONS, LICENSING AGREE_2
ACQUISITIONS, LICENSING AGREEMENTS AND DIVESTITURE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2019 | |
Asset Acquisition And Business Combination [Line Items] | ||||||
Trade receivables, net | $ 1,775 | $ 1,775 | $ 1,790 | |||
Inventories, net | 993 | 993 | 1,090 | |||
Property, plant and equipment, net | 1,598 | 1,598 | 1,600 | |||
Intangible assets, net | 6,948 | 6,948 | 5,800 | |||
Goodwill | $ 13,044 | 12,457 | 12,457 | 11,547 | $ 13,126 | |
Deferred tax liabilities, net | 529 | 529 | 202 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Amoun | ||||||
Asset Acquisition And Business Combination [Line Items] | ||||||
Cash proceeds from divestiture | $ 740 | |||||
Impairment of long-lived assets | 26 | 210 | ||||
Noncash cumulative foreign currency translation loss | $ 340 | |||||
Asset Impairments | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Amoun | ||||||
Asset Acquisition And Business Combination [Line Items] | ||||||
Impairment of long-lived assets | $ 96 | 88 | ||||
Other (Income) Expense | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Amoun | ||||||
Asset Acquisition And Business Combination [Line Items] | ||||||
Impairment of long-lived assets | $ 26 | |||||
Bausch + Lomb | Paragon Bio Teck Inc. Asset Acquisition and Total Titanium Inc. Business Combination | ||||||
Asset Acquisition And Business Combination [Line Items] | ||||||
Trade receivables, net | 1 | |||||
Inventories, net | 1 | |||||
Property, plant and equipment, net | 2 | |||||
Intangible assets, net | 43 | |||||
Goodwill | 5 | |||||
Deferred tax liabilities, net | $ 11 |
RESTRUCTURING, INTEGRATION, S_2
RESTRUCTURING, INTEGRATION, SEPARATION AND IPO COSTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cost-rationalization and integration initiatives | |||
Restructuring Incurred Cost, Statement Of Income Or Comprehensive Income, Extensible Enumeration, Not Disclosed Flag | restructuring and integration-related costs | ||
Selling, general and administrative | $ 2,625 | $ 2,624 | $ 2,367 |
Restructuring and Integration Costs | |||
Cost-rationalization and integration initiatives | |||
Remaining restructuring liabilities | 12 | ||
Restructuring costs | 30 | 18 | 11 |
Restructuring payments | 41 | 19 | $ 18 |
Separation and IPO Costs | |||
Cost-rationalization and integration initiatives | |||
Restructuring, integration, separation and IPO costs | 33 | 32 | |
Selling, general and administrative | $ 94 | $ 132 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Foreign currency exchange contracts | Not Designated as Hedging Instrument | ||
Liabilities: | ||
Derivative liabilities | $ 2 | $ 1 |
Recurring basis | ||
Assets: | ||
Cash equivalents | 94 | 76 |
Restricted cash and other settlement deposits | 27 | 1,537 |
Liabilities: | ||
Acquisition-related contingent consideration | 241 | 241 |
Recurring basis | Foreign currency exchange contracts | Not Designated as Hedging Instrument | ||
Assets: | ||
Derivative assets | 6 | 1 |
Liabilities: | ||
Derivative liabilities | 4 | 0 |
Recurring basis | Net Investment Hedging | Cross-currency swaps | Designated as Hedging Instrument | Bausch + Lomb | ||
Liabilities: | ||
Derivative liabilities | 39 | 0 |
Recurring basis | Level 1 | ||
Assets: | ||
Cash equivalents | 85 | 58 |
Restricted cash and other settlement deposits | 27 | 1,537 |
Liabilities: | ||
Acquisition-related contingent consideration | 0 | 0 |
Recurring basis | Level 1 | Foreign currency exchange contracts | Not Designated as Hedging Instrument | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Level 1 | Net Investment Hedging | Cross-currency swaps | Designated as Hedging Instrument | Bausch + Lomb | ||
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Level 2 | ||
Assets: | ||
Cash equivalents | 9 | 18 |
Restricted cash and other settlement deposits | 0 | 0 |
Liabilities: | ||
Acquisition-related contingent consideration | 0 | 0 |
Recurring basis | Level 2 | Foreign currency exchange contracts | Not Designated as Hedging Instrument | ||
Assets: | ||
Derivative assets | 6 | 1 |
Liabilities: | ||
Derivative liabilities | 4 | 0 |
Recurring basis | Level 2 | Net Investment Hedging | Cross-currency swaps | Designated as Hedging Instrument | Bausch + Lomb | ||
Liabilities: | ||
Derivative liabilities | 39 | 0 |
Recurring basis | Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Restricted cash and other settlement deposits | 0 | 0 |
Liabilities: | ||
Acquisition-related contingent consideration | 241 | 241 |
Recurring basis | Level 3 | Foreign currency exchange contracts | Not Designated as Hedging Instrument | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Level 3 | Net Investment Hedging | Cross-currency swaps | Designated as Hedging Instrument | Bausch + Lomb | ||
Liabilities: | ||
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis, Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 16, 2019 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) appeal | Dec. 31, 2020 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Highly liquid investments, maturity period (or less) | 3 months | ||||
Cash and cash equivalents | $ 564 | $ 582 | $ 605 | ||
Valeant US Securities Litigation | Settled Litigation | New Jersey | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Litigation, amount paid | $ 1,210 | $ 1,510 | |||
Settlement, escrow fund included in restricted cash, number of objectors' appeals | appeal | 1 | ||||
Decrease in restricted cash and other settlement deposits | $ 1,210 | ||||
Decrease in accrued and other current liabilities | $ 1,210 | ||||
Bausch + Lomb | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 380 |
FAIR VALUE MEASUREMENTS - Cross
FAIR VALUE MEASUREMENTS - Cross-currency Swaps, Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2022 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest income | $ 14,000,000 | $ 7,000,000 | $ 13,000,000 | |||
Cross-currency swaps | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net proceeds, cross-currency swaps | $ 4,000,000 | |||||
Interest income | 6,000,000 | |||||
Net proceeds, settlement of cross-currency swaps | $ 0 | $ 27,000,000 | ||||
Cross-currency swaps | Net Investment Hedging | Designated as Hedging Instrument | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aggregate notional amounts | $ 1,250,000,000 | |||||
Cross-currency swaps | Net Investment Hedging | Designated as Hedging Instrument | Bausch + Lomb | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aggregate notional amounts | $ 1,000,000,000 | |||||
Cross-currency swaps, final settlement | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Net proceeds, settlement of cross-currency swaps | $ 2,000,000 |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Cross-currency Swaps Included in Consolidated Balance Sheets (Details) - Cross-currency swaps - Net Investment Hedging - Designated as Hedging Instrument - Bausch + Lomb - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value | $ 39 | $ 0 |
Other non-current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value | 45 | 0 |
Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value | $ 6 | $ 0 |
FAIR VALUE MEASUREMENTS - Cro_2
FAIR VALUE MEASUREMENTS - Cross-currency Swaps, Effect of Hedging Instruments on Financial Instruments (Details) - Cross-currency swaps - Net Investment Hedging - Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in Other comprehensive loss | $ (45) | $ 77 |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain excluded from assessment of hedge effectiveness | $ 6 | $ 20 |
FAIR VALUE MEASUREMENTS - Forei
FAIR VALUE MEASUREMENTS - Foreign Currency Exchange Contracts, Narrative (Details) | Dec. 31, 2022 USD ($) |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Aggregate notional amounts | $ 455,000,000 |
FAIR VALUE MEASUREMENTS - For_2
FAIR VALUE MEASUREMENTS - Foreign Exchange Contracts Included in Consolidated Balance Sheets (Details) - Foreign currency exchange contracts - Not Designated as Hedging Instrument - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net fair value | $ 2 | $ 1 |
Accrued and other current liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accrued and other current liabilities | (4) | 0 |
Prepaid expenses and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepaid expenses and other current assets | $ 6 | $ 1 |
FAIR VALUE MEASUREMENTS - For_3
FAIR VALUE MEASUREMENTS - Foreign Exchange Contracts Included on Consolidated Statements of Operations and Consolidated Statements of Cash Flows (Details) - Foreign currency exchange contracts - Not Designated as Hedging Instrument - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain related to changes in fair value | $ 2 | $ 9 |
Loss related to settlements | $ (20) | $ (17) |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Acquisition-related Contingent Consideration Obligations, Narrative (Details) - Recurring basis - Level 3 | Dec. 31, 2022 rate |
Measurement Input, Discount Rate | Minimum | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, contingent consideration obligations, discount rate | 0.06 |
Measurement Input, Discount Rate | Maximum | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, contingent consideration obligations, discount rate | 0.18 |
Measurement Input, Weighted-Average Discount Rate | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair value, contingent consideration obligations, discount rate | 0.07 |
FAIR VALUE MEASUREMENTS - Ass_2
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level3) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 241 | $ 328 |
Acquisition-related contingent consideration adjustments | $ 28 | $ 11 |
Fair Value, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement Of Income, Extensible List Not Disclosed Flag | Acquisition-related contingent consideration adjustments | Acquisition-related contingent consideration adjustments |
Payments / Settlements | $ (28) | $ (99) |
Foreign currency translation adjustment included in other comprehensive loss | 0 | 1 |
Ending balance | 241 | 241 |
Current portion | 34 | 39 |
Non-current portion | 207 | 202 |
Accretion for the time value of money | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Acquisition-related contingent consideration adjustments | 16 | 17 |
Fair value adjustments | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Acquisition-related contingent consideration adjustments | $ 12 | $ (6) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | $ 14,011 | $ 22,689 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 326 | $ 279 |
Work in process | 98 | 112 |
Finished goods | 666 | 602 |
Inventories, net | $ 1,090 | $ 993 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Major Components of Property, Plant, and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,520 | $ 3,418 |
Accumulated depreciation | (1,920) | (1,820) |
Property, plant and equipment, net | 1,600 | 1,598 |
Land | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | 71 | 74 |
Buildings and improvements | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | 798 | 675 |
Machinery and equipment | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | 1,951 | 1,678 |
Other equipment and leasehold improvements | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | 342 | 342 |
Equipment on operating lease | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | 78 | 73 |
Construction in progress | ||
Property, plant and equipment [Line Items] | ||
Property, plant and equipment, gross | $ 280 | $ 576 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 179 | $ 177 | $ 180 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 25,436 | $ 25,430 |
Accumulated Amortization and Impairments | (21,334) | (20,180) |
Net Carrying Amount | 4,102 | 5,250 |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,134 | 27,128 |
Intangible Assets, Net (Excluding Goodwill) | 5,800 | 6,948 |
B&L Trademark | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 1,698 | 1,698 |
Product brands | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Lives (Years) | 5 years | |
Gross Carrying Amount | $ 20,840 | 20,842 |
Accumulated Amortization and Impairments | (17,196) | (16,169) |
Net Carrying Amount | $ 3,644 | 4,673 |
Corporate brands | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Lives (Years) | 5 years | |
Gross Carrying Amount | $ 899 | 902 |
Accumulated Amortization and Impairments | (542) | (473) |
Net Carrying Amount | $ 357 | 429 |
Product rights/patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Lives (Years) | 4 years | |
Gross Carrying Amount | $ 3,347 | 3,321 |
Accumulated Amortization and Impairments | (3,251) | (3,174) |
Net Carrying Amount | $ 96 | 147 |
Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Lives (Years) | 0 years | |
Gross Carrying Amount | $ 149 | 158 |
Accumulated Amortization and Impairments | (149) | (158) |
Net Carrying Amount | $ 0 | 0 |
Technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Lives (Years) | 8 years | |
Gross Carrying Amount | $ 201 | 207 |
Accumulated Amortization and Impairments | (196) | (206) |
Net Carrying Amount | $ 5 | $ 1 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||||||||||||||
Oct. 01, 2022 USD ($) | Oct. 01, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Oct. 01, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Jun. 30, 2022 USD ($) reporting_unit | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) reporting_unit | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Asset impairments, including loss on assets held for sale | $ 15,000,000 | $ 234,000,000 | $ 114,000,000 | ||||||||||||||||
Impairment of Intangible Asset, Finite Lived, Statement of Income or Comprehensive Income, Extensible Enumeration, Not Disclosed Flag | impairments | impairments | |||||||||||||||||
Revenues | $ 8,124,000,000 | $ 8,434,000,000 | 8,027,000,000 | ||||||||||||||||
Finite-lived intangible assets | $ 4,102,000,000 | 4,102,000,000 | 5,250,000,000 | $ 5,250,000,000 | |||||||||||||||
Goodwill impairments | $ 0 | $ 0 | 824,000,000 | 469,000,000 | |||||||||||||||
Percentage of fair value in excess of carrying value | 45% | 40% | |||||||||||||||||
Goodwill | 11,547,000,000 | 11,547,000,000 | 12,457,000,000 | 13,044,000,000 | 12,457,000,000 | $ 13,126,000,000 | |||||||||||||
Salix | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Revenues | 2,090,000,000 | 2,074,000,000 | 1,904,000,000 | ||||||||||||||||
Goodwill impairments | 0 | 0 | |||||||||||||||||
Goodwill | 3,159,000,000 | 3,159,000,000 | 3,159,000,000 | 3,159,000,000 | 3,159,000,000 | 3,159,000,000 | |||||||||||||
Ortho Dermatologics | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Goodwill impairments | 0 | 469,000,000 | |||||||||||||||||
Number of reporting units | reporting_unit | 2 | ||||||||||||||||||
Goodwill | 0 | 0 | 798,000,000 | 1,267,000,000 | 798,000,000 | $ 1,267,000,000 | |||||||||||||
Xifaxan Branded Products | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of intangible assets | 0 | $ 0 | |||||||||||||||||
Revenues | $ 1,216,000,000 | $ 1,194,000,000 | |||||||||||||||||
Finite-lived intangible assets | 2,693,000,000 | $ 2,693,000,000 | |||||||||||||||||
Finite lived intangible assets, useful life | 60 months | ||||||||||||||||||
Xifaxan Branded Products | Revenue from Contract with Customer, Segment Benchmark | Product Concentration Risk | Salix | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Concentration risk, percentage | 80% | 80% | 80% | ||||||||||||||||
Bausch + Lomb | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Number of reporting units | reporting_unit | 3 | ||||||||||||||||||
Ortho Dermatologics Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Goodwill impairments | $ 0 | $ 469,000,000 | $ 0 | $ 0 | $ 0 | $ 119,000,000 | $ 83,000,000 | $ 0 | |||||||||||
Reporting unit, impairment test, long-term growth rates | 1% | 1% | 2% | 1% | 1% | 1% | 1% | 1% | |||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 9% | 10% | 10.50% | 10% | 9% | 10.50% | |||||||||||||
Percentage of fair value in excess of carrying value | 10% | 10% | 2% | ||||||||||||||||
Reporting unit, impairment test, estimated cash flows, change in discount rate | 1% | 1% | |||||||||||||||||
Goodwill | $ 480,000,000 | $ 480,000,000 | |||||||||||||||||
Reporting Units Excluding Ortho Dermatologics | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Goodwill impairments | 0 | ||||||||||||||||||
Vision Care, Surgical And Ophthalmic Reporting Units | Bausch + Lomb | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Goodwill impairments | $ 0 | $ 0 | |||||||||||||||||
Percentage of fair value in excess of carrying value | 25% | 25% | 25% | 25% | |||||||||||||||
Salix Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Goodwill impairments | $ 0 | ||||||||||||||||||
Reporting unit, impairment test, long-term growth rates | 2.50% | 2.50% | |||||||||||||||||
Percentage of fair value in excess of carrying value | 5% | 5% | |||||||||||||||||
Neurology and Other Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Goodwill impairments | $ 622,000,000 | ||||||||||||||||||
Reporting unit, impairment test, long-term growth rates | (2.50%) | (2.50%) | |||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 10.25% | 10.25% | |||||||||||||||||
Goodwill | $ 1,439,000,000 | $ 1,439,000,000 | |||||||||||||||||
Surgical Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Accumulated goodwill impairment charges to date | $ 5,004,000,000 | $ 5,004,000,000 | |||||||||||||||||
Minimum | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, long-term growth rates | 2% | 1% | |||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 7% | 11% | |||||||||||||||||
Minimum | Ortho Dermatologics Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 9% | 9.50% | |||||||||||||||||
Minimum | Vision Care, Surgical And Ophthalmic Reporting Units | Bausch + Lomb | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, long-term growth rates | 2% | 2% | 2% | 2% | |||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 9% | 9.50% | 9% | 9.50% | |||||||||||||||
Minimum | Salix Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 9.75% | 9.75% | |||||||||||||||||
Maximum | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, long-term growth rates | 3% | 3% | |||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 10% | 12.25% | |||||||||||||||||
Maximum | Ortho Dermatologics Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 10% | 9.75% | |||||||||||||||||
Maximum | Vision Care, Surgical And Ophthalmic Reporting Units | Bausch + Lomb | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, long-term growth rates | 3% | 3% | 3% | 3% | |||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 11.50% | 12.25% | 11.50% | 12.25% | |||||||||||||||
Maximum | Salix Reporting Unit | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Reporting unit, impairment test, estimated cash flows, discount rate | 10% | 10% | |||||||||||||||||
Acquired IPR&D | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of indefinite-lived intangible assets | 1,000,000 | ||||||||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Amoun | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of intangible assets | 88,000,000 | ||||||||||||||||||
Impairment of long-lived assets | 26,000,000 | 210,000,000 | |||||||||||||||||
Held For Sale | A Certain International Business | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of long-lived assets | 96,000,000 | ||||||||||||||||||
Product brands | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of intangible assets | $ 10,000,000 | 105,000,000 | 16,000,000 | ||||||||||||||||
Finite-lived intangible assets | $ 3,644,000,000 | $ 3,644,000,000 | 4,673,000,000 | $ 4,673,000,000 | |||||||||||||||
Finite lived intangible assets, useful life | 5 years | ||||||||||||||||||
Product brands | Minimum | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Finite lived intangible assets, useful life | 1 year | ||||||||||||||||||
Product brands | Maximum | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Finite lived intangible assets, useful life | 20 years | ||||||||||||||||||
Discontinued Product Lines | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of intangible assets | $ 5,000,000 | 23,000,000 | $ 1,000,000 | ||||||||||||||||
Unutilized IT Infrastructure Improvement Project | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Impairment of intangible assets | $ 18,000,000 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated aggregate amortization expense | ||
2023 | $ 1,027 | |
2024 | 904 | |
2025 | 798 | |
2026 | 670 | |
2027 | 633 | |
Thereafter | 70 | |
Net Carrying Amount | $ 4,102 | $ 5,250 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | $ 12,457,000,000 | $ 13,044,000,000 | $ 13,126,000,000 | ||
Assets held for sale reclassified to goodwill | 18,000,000 | ||||
Goodwill reclassified to assets held for sale (Note 3) | (217,000,000) | ||||
Foreign exchange and other | (91,000,000) | (118,000,000) | 117,000,000 | ||
Realignment of segment goodwill | 0 | 0 | |||
Additions | 5,000,000 | ||||
Impairment | $ 0 | $ 0 | (824,000,000) | (469,000,000) | |
Balance at the end of the period | 11,547,000,000 | 12,457,000,000 | 13,044,000,000 | ||
Bausch + Lomb/ International | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 0 | 5,704,000,000 | 5,786,000,000 | ||
Assets held for sale reclassified to goodwill | 18,000,000 | ||||
Goodwill reclassified to assets held for sale (Note 3) | (217,000,000) | ||||
Foreign exchange and other | 0 | 0 | 117,000,000 | ||
Realignment of segment goodwill | 0 | (5,704,000,000) | |||
Additions | 0 | ||||
Impairment | 0 | 0 | |||
Balance at the end of the period | 0 | 0 | 5,704,000,000 | ||
Bausch + Lomb | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 5,318,000,000 | 0 | 0 | ||
Assets held for sale reclassified to goodwill | 0 | ||||
Goodwill reclassified to assets held for sale (Note 3) | 0 | ||||
Foreign exchange and other | (77,000,000) | (77,000,000) | 0 | ||
Realignment of segment goodwill | 0 | 5,395,000,000 | |||
Additions | 5,000,000 | ||||
Impairment | 0 | 0 | |||
Balance at the end of the period | 5,246,000,000 | 5,318,000,000 | 0 | ||
Salix | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 3,159,000,000 | 3,159,000,000 | 3,159,000,000 | ||
Assets held for sale reclassified to goodwill | 0 | ||||
Goodwill reclassified to assets held for sale (Note 3) | 0 | ||||
Foreign exchange and other | 0 | 0 | 0 | ||
Realignment of segment goodwill | 0 | 0 | |||
Additions | 0 | ||||
Impairment | 0 | 0 | |||
Balance at the end of the period | 3,159,000,000 | 3,159,000,000 | 3,159,000,000 | ||
International | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 825,000,000 | 0 | 0 | ||
Assets held for sale reclassified to goodwill | 0 | ||||
Goodwill reclassified to assets held for sale (Note 3) | 0 | ||||
Foreign exchange and other | (36,000,000) | (62,000,000) | 0 | ||
Realignment of segment goodwill | 0 | 887,000,000 | |||
Additions | 0 | ||||
Impairment | 0 | 0 | |||
Balance at the end of the period | 789,000,000 | 825,000,000 | 0 | ||
Ortho Dermatologics | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 798,000,000 | 1,267,000,000 | 1,267,000,000 | ||
Assets held for sale reclassified to goodwill | 0 | ||||
Goodwill reclassified to assets held for sale (Note 3) | 0 | ||||
Foreign exchange and other | 0 | 0 | 0 | ||
Realignment of segment goodwill | (798,000,000) | 0 | |||
Additions | 0 | ||||
Impairment | 0 | (469,000,000) | |||
Balance at the end of the period | 0 | 798,000,000 | 1,267,000,000 | ||
Solta Medical | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 0 | 0 | 0 | ||
Assets held for sale reclassified to goodwill | 0 | ||||
Goodwill reclassified to assets held for sale (Note 3) | 0 | ||||
Foreign exchange and other | 0 | 0 | 0 | ||
Realignment of segment goodwill | 115,000,000 | 0 | |||
Additions | 0 | ||||
Impairment | 0 | 0 | |||
Balance at the end of the period | 115,000,000 | 0 | 0 | ||
Diversified Products | |||||
Change in the carrying amount of goodwill | |||||
Balance at the beginning of the period | 2,357,000,000 | 2,914,000,000 | 2,914,000,000 | ||
Assets held for sale reclassified to goodwill | 0 | ||||
Goodwill reclassified to assets held for sale (Note 3) | 0 | ||||
Foreign exchange and other | 22,000,000 | 21,000,000 | 0 | ||
Realignment of segment goodwill | 683,000,000 | (578,000,000) | |||
Additions | 0 | ||||
Impairment | (824,000,000) | 0 | |||
Balance at the end of the period | $ 2,238,000,000 | $ 2,357,000,000 | $ 2,914,000,000 |
ACCRUED AND OTHER CURRENT LIA_3
ACCRUED AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Legal matters and related fees | $ 326 | $ 1,890 |
Product rebates | 983 | 908 |
Product returns | 427 | 482 |
Employee compensation and benefit costs | 300 | 336 |
Interest | 208 | 328 |
Income taxes payable | 30 | 98 |
Other | 714 | 749 |
Accrued and other current liabilities | $ 2,988 | $ 4,791 |
FINANCING ARRANGEMENTS - Summar
FINANCING ARRANGEMENTS - Summary of Consolidated Long-term Debt (Details) - USD ($) | Dec. 31, 2022 | Feb. 10, 2022 | Dec. 31, 2021 | Jun. 08, 2021 | Dec. 03, 2020 | May 26, 2020 | Mar. 08, 2019 | Oct. 17, 2017 |
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | $ 19,110,000,000 | $ 22,870,000,000 | ||||||
Total long-term debt and other | 20,766,000,000 | 22,654,000,000 | ||||||
Less: Current portion of long-term debt and other | 432,000,000 | 0 | ||||||
Non-current portion of long-term debt | 20,334,000,000 | 22,654,000,000 | ||||||
Term Loan B Facility Due June 2025 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 0 | 2,829,000,000 | ||||||
Total long-term debt and other | 0 | 2,772,000,000 | ||||||
Term Loan B Facility Due November 2025 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 0 | 994,000,000 | ||||||
Total long-term debt and other | 0 | 984,000,000 | ||||||
Term Loan B Facility Due February 2027 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 2,437,000,000 | 0 | ||||||
Total long-term debt and other | $ 2,392,000,000 | 0 | ||||||
Term Facility Due May 2027 | Bausch + Lomb | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 7.84% | |||||||
Principal Amount | $ 2,488,000,000 | 0 | ||||||
Total long-term debt and other | $ 2,439,000,000 | 0 | ||||||
Senior Secured Notes | 5.500% Senior Notes Due November 2025 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | ||||||
Principal Amount | $ 1,680,000,000 | 1,750,000,000 | ||||||
Total long-term debt and other | $ 1,672,000,000 | 1,739,000,000 | ||||||
Senior Secured Notes | Senior Secured 6.125% Notes Due February 2027 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 6.125% | 6.125% | ||||||
Principal Amount | $ 1,000,000,000 | 0 | ||||||
Total long-term debt and other | $ 987,000,000 | 0 | ||||||
Senior Secured Notes | 5.750% Senior Notes Due August 2027 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 5.75% | 5.75% | ||||||
Principal Amount | $ 500,000,000 | 500,000,000 | ||||||
Total long-term debt and other | $ 496,000,000 | 495,000,000 | ||||||
Senior Secured Notes | 4.875% Senior Notes Due June 2028 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 4.875% | 4.875% | ||||||
Principal Amount | $ 1,600,000,000 | 1,600,000,000 | ||||||
Total long-term debt and other | $ 1,583,000,000 | 1,580,000,000 | ||||||
Senior Secured Notes | 11.00% First Lien Senior Notes Due September 2028 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 11% | |||||||
Principal Amount | $ 1,774,000,000 | 0 | ||||||
Total long-term debt and other | $ 2,826,000,000 | 0 | ||||||
Senior Secured Notes | 14.00% Second Lien Senior Notes2 Due October 2030 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 14% | |||||||
Principal Amount | $ 352,000,000 | 0 | ||||||
Total long-term debt and other | $ 711,000,000 | 0 | ||||||
Senior Secured Notes | 9.00% Intermediate Holdco Senior Notes Due January 2028 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 9% | |||||||
Principal Amount | $ 999,000,000 | 0 | ||||||
Total long-term debt and other | $ 1,423,000,000 | 0 | ||||||
Senior Unsecured Notes | 6.125% Senior Notes Due April 2025 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 6.125% | |||||||
Principal Amount | $ 0 | 2,650,000,000 | ||||||
Total long-term debt and other | $ 0 | 2,640,000,000 | ||||||
Senior Unsecured Notes | 9.00% Senior Notes Due December 2025 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 9% | |||||||
Principal Amount | $ 959,000,000 | 1,500,000,000 | ||||||
Total long-term debt and other | $ 951,000,000 | 1,482,000,000 | ||||||
Senior Unsecured Notes | 9.250% Senior Notes Due April 2026 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 9.25% | |||||||
Principal Amount | $ 741,000,000 | 1,500,000,000 | ||||||
Total long-term debt and other | $ 737,000,000 | 1,489,000,000 | ||||||
Senior Unsecured Notes | 8.50% Senior Notes Due January 2027 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 8.50% | |||||||
Principal Amount | $ 643,000,000 | 1,750,000,000 | ||||||
Total long-term debt and other | $ 644,000,000 | 1,754,000,000 | ||||||
Senior Unsecured Notes | 7.00% Senior Notes Due January 2028 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 7% | |||||||
Principal Amount | $ 171,000,000 | 750,000,000 | ||||||
Total long-term debt and other | $ 170,000,000 | 743,000,000 | ||||||
Senior Unsecured Notes | 5.00% Senior Notes Due January 2028 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 5% | |||||||
Principal Amount | $ 433,000,000 | 1,250,000,000 | ||||||
Total long-term debt and other | $ 429,000,000 | 1,238,000,000 | ||||||
Senior Unsecured Notes | 6.25% Senior Notes Due February 2029 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | ||||||
Principal Amount | $ 821,000,000 | 1,500,000,000 | ||||||
Total long-term debt and other | $ 813,000,000 | 1,483,000,000 | ||||||
Senior Unsecured Notes | 5.00% Senior Notes Due February 2029 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 5% | 5% | ||||||
Principal Amount | $ 452,000,000 | 1,000,000,000 | ||||||
Total long-term debt and other | $ 448,000,000 | 990,000,000 | ||||||
Senior Unsecured Notes | 7.25% Senior Notes Due May 2029 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 7.25% | |||||||
Principal Amount | $ 337,000,000 | 750,000,000 | ||||||
Total long-term debt and other | $ 334,000,000 | 742,000,000 | ||||||
Senior Unsecured Notes | 5.25% Senior Notes Due January 2030 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 5.25% | |||||||
Principal Amount | $ 779,000,000 | 1,250,000,000 | ||||||
Total long-term debt and other | $ 771,000,000 | 1,237,000,000 | ||||||
Senior Unsecured Notes | 5.25% Senior Notes Due February 2031 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | ||||||
Principal Amount | $ 462,000,000 | 1,000,000,000 | ||||||
Total long-term debt and other | 458,000,000 | 989,000,000 | ||||||
Senior Unsecured Notes | Other | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 12,000,000 | 12,000,000 | ||||||
Total long-term debt and other | 12,000,000 | 12,000,000 | ||||||
Revolving credit facility | 2023 Revolving Credit Facility Due June 2023 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 0 | 285,000,000 | ||||||
Total long-term debt and other | 0 | 285,000,000 | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 470,000,000 | 0 | ||||||
Total long-term debt and other | 470,000,000 | 0 | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | Bausch + Lomb | ||||||||
Long-term debt, net of unamortized debt discount | ||||||||
Principal Amount | 0 | 0 | ||||||
Total long-term debt and other | $ 0 | $ 0 |
FINANCING ARRANGEMENTS - Covena
FINANCING ARRANGEMENTS - Covenant Compliance (Details) - USD ($) $ in Millions | Nov. 29, 2022 | Jun. 01, 2022 | Dec. 31, 2022 |
Bausch + Lomb | |||
Debt Instrument [Line Items] | |||
Percentage of shares held | 89% | ||
1261229 B.C. Ltd. | Bausch + Lomb | |||
Debt Instrument [Line Items] | |||
Percentage of shares held | 89% | ||
9.00% Intermediate Holdco Senior Notes Due January 2028 | Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 9% | ||
Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Amount available for restricted payments | $ 9,600 | ||
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio | 2 | ||
Secured leverage ratio | 4 |
FINANCING ARRANGEMENTS - Exchan
FINANCING ARRANGEMENTS - Exchange Offer (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||
May 10, 2022 | Jun. 08, 2021 | May 26, 2020 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Extinguishment of Debt [Line Items] | |||||||||
Gain (loss) on extinguishment of debt | $ (64,000,000) | $ (38,000,000) | $ (27,000,000) | $ 875,000,000 | $ (62,000,000) | $ (59,000,000) | |||
Bausch + Lomb | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Ownership percentage | 89% | 89% | |||||||
Bausch + Lomb | Intermediate Holdco | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Ownership percentage | 38.60% | 38.60% | |||||||
Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Gain (loss) on extinguishment of debt | $ 570,000,000 | ||||||||
Third party fees | $ 25,000,000 | ||||||||
Exchange Offer | Bausch + Lomb | Intermediate Holdco | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Ownership percentage | 38.60% | 38.60% | |||||||
Senior Unsecured Notes | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | $ 927,000,000 | $ 927,000,000 | |||||||
Gain (loss) on extinguishment of debt | $ 570,000,000 | $ 369,000,000 | |||||||
Senior Unsecured Notes | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | 5,594,000,000 | $ 5,594,000,000 | |||||||
Senior Unsecured Notes | 9.25% Senior Notes due 2026 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 9.25% | 9.25% | |||||||
Senior Unsecured Notes | 9.25% Senior Notes due 2026 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | $ 752,000,000 | $ 752,000,000 | |||||||
Stated interest rate on debt (as a percent) | 9.25% | 9.25% | |||||||
Senior Unsecured Notes | 8.50% Senior Notes due 2027 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 8.50% | 8.50% | |||||||
Senior Unsecured Notes | 8.50% Senior Notes due 2027 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | $ 1,099,000,000 | $ 1,099,000,000 | |||||||
Stated interest rate on debt (as a percent) | 8.50% | 8.50% | |||||||
Senior Unsecured Notes | 5.00% Senior Notes due 2028 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 5% | 5% | |||||||
Senior Unsecured Notes | 5.00% Senior Notes due 2028 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | $ 710,000,000 | $ 710,000,000 | |||||||
Stated interest rate on debt (as a percent) | 5% | 5% | |||||||
Senior Unsecured Notes | 7.00% Senior Notes due 2028 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 7% | 7% | |||||||
Senior Unsecured Notes | 7.00% Senior Notes due 2028 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | $ 540,000,000 | $ 540,000,000 | |||||||
Stated interest rate on debt (as a percent) | 7% | 7% | |||||||
Senior Unsecured Notes | 7.25% Senior Notes due 2029 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 7.25% | 7.25% | |||||||
Senior Unsecured Notes | 7.25% Senior Notes due 2029 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount of debt exchanged | $ 373,000,000 | $ 373,000,000 | |||||||
Stated interest rate on debt (as a percent) | 7.25% | 7.25% | |||||||
Senior Secured Notes | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount | $ 3,125,000,000 | $ 3,125,000,000 | |||||||
Reduction of outstanding principal | 2,469,000,000 | 2,469,000,000 | |||||||
Debt instrument, premium | 1,835,000,000 | 1,835,000,000 | |||||||
Senior Secured Notes | 11.00% First Lien Senior Notes Due September 2028 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 11% | 11% | |||||||
Senior Secured Notes | 11.00% First Lien Senior Notes Due September 2028 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount | $ 1,774,000,000 | $ 1,774,000,000 | |||||||
Stated interest rate on debt (as a percent) | 11% | 11% | |||||||
Senior Secured Notes | 14.00% Second Lien Senior Notes2 Due October 2030 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 14% | 14% | |||||||
Senior Secured Notes | 14.00% Second Lien Senior Notes2 Due October 2030 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount | $ 352,000,000 | $ 352,000,000 | |||||||
Stated interest rate on debt (as a percent) | 14% | 14% | |||||||
Senior Secured Notes | 9.00% Intermediate Holdco Senior Notes Due January 2028 | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Stated interest rate on debt (as a percent) | 9% | 9% | |||||||
Senior Secured Notes | 9.00% Intermediate Holdco Senior Notes Due January 2028 | Exchange Offer | |||||||||
Extinguishment of Debt [Line Items] | |||||||||
Aggregate principal amount | $ 999,000,000 | $ 999,000,000 | |||||||
Stated interest rate on debt (as a percent) | 9% | 9% |
FINANCING ARRANGEMENTS - Summ_2
FINANCING ARRANGEMENTS - Summary of Aggregate Principal Amounts Validly Tendered and Accepted (Details) - Existing Unsecured Senior Notes - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 03, 2020 | May 26, 2020 |
Extinguishment of Debt [Line Items] | ||||
Total | $ 927,000,000 | |||
Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 5,594,000,000 | |||
9.00% Senior Notes due 2025 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 9% | |||
9.00% Senior Notes due 2025 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 541,000,000 | |||
Stated interest rate on debt (as a percent) | 9% | |||
9.25% Senior Notes due 2026 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 9.25% | |||
9.25% Senior Notes due 2026 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 752,000,000 | |||
Stated interest rate on debt (as a percent) | 9.25% | |||
8.50% Senior Notes due 2027 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 8.50% | |||
8.50% Senior Notes due 2027 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 1,099,000,000 | |||
Stated interest rate on debt (as a percent) | 8.50% | |||
7.00% Senior Notes due 2028 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 7% | |||
7.00% Senior Notes due 2028 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 540,000,000 | |||
Stated interest rate on debt (as a percent) | 7% | |||
5.00% Senior Notes due 2028 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 5% | |||
5.00% Senior Notes due 2028 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 710,000,000 | |||
Stated interest rate on debt (as a percent) | 5% | |||
7.25% Senior Notes due 2029 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 7.25% | |||
7.25% Senior Notes due 2029 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 373,000,000 | |||
Stated interest rate on debt (as a percent) | 7.25% | |||
6.25% Senior Notes due 2029 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 6.25% | 6.25% | ||
6.25% Senior Notes due 2029 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 540,000,000 | |||
Stated interest rate on debt (as a percent) | 6.25% | |||
5.00% Senior Notes due 2029 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 5% | 5% | ||
5.00% Senior Notes due 2029 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 371,000,000 | |||
Stated interest rate on debt (as a percent) | 5% | |||
5.25% Senior Notes due 2030 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 5.25% | |||
5.25% Senior Notes due 2030 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 332,000,000 | |||
Stated interest rate on debt (as a percent) | 5.25% | |||
5.25% Senior Notes due 2031 | ||||
Extinguishment of Debt [Line Items] | ||||
Stated interest rate on debt (as a percent) | 5.25% | 5.25% | ||
5.25% Senior Notes due 2031 | Exchange Offer | ||||
Extinguishment of Debt [Line Items] | ||||
Total | $ 336,000,000 | |||
Stated interest rate on debt (as a percent) | 5.25% |
FINANCING ARRANGEMENTS - Senior
FINANCING ARRANGEMENTS - Senior Secured Credit Facilities (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2022 | Nov. 29, 2022 | Jun. 01, 2022 | May 10, 2022 | Jun. 01, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||
Amount drawn under credit facility | $ 20,766,000,000 | $ 20,766,000,000 | $ 22,654,000,000 | ||||
Principal amount outstanding | 19,110,000,000 | 19,110,000,000 | 22,870,000,000 | ||||
Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of shares held | 89% | ||||||
1261229 B.C. Ltd. | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of shares held | 89% | ||||||
Term Loan B Facility Due June 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 4,565,000,000 | ||||||
Amount drawn under credit facility | 0 | 0 | 2,772,000,000 | ||||
Principal amount outstanding | 0 | 0 | 2,829,000,000 | ||||
Term Loan B Facility Due November 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | 1,500,000,000 | ||||||
Amount drawn under credit facility | 0 | 0 | 984,000,000 | ||||
Principal amount outstanding | 0 | 0 | 994,000,000 | ||||
Term Loan B Facility Due February 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 2,500,000,000 | ||||||
Amount drawn under credit facility | 2,392,000,000 | 2,392,000,000 | 0 | ||||
Annual amortization rate, percentage | 5% | ||||||
Remaining mandatory quarterly amortization payments | $ 125,000,000 | ||||||
Remaining quarterly amortization payments | 500,000,000 | ||||||
Principal amount outstanding | 2,437,000,000 | 2,437,000,000 | 0 | ||||
Term Loan B Facility Due February 2027 | Federal Funds Effective Swap Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.50% | ||||||
Term Loan B Facility Due February 2027 | Base Rate Factor, SOFR | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1% | ||||||
Term Loan B Facility Due February 2027 | SOFR Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 5.25% | ||||||
Variable rate, if rate not ascertainable (as a percent) | 1.50% | ||||||
Term Loan B Facility Due February 2027 | SOFR Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.50% | ||||||
Term Loan B Facility Due February 2027 | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 4.25% | ||||||
New Restated Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Total leverage ratio | 7.60 | ||||||
Senior Credit Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of net cash proceeds of insurance and condemnation proceeds for property or asset losses | 100% | ||||||
Percentage of cash proceeds from incurrence of debt | 100% | ||||||
Percentage of annual excess cash flow | 50% | ||||||
Percentage of cash proceeds from asset sales outside the ordinary course of business payable as mandatory prepayments | 100% | ||||||
Term Facility Due May 2027 | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 2,500,000,000 | ||||||
Amount drawn under credit facility | 2,439,000,000 | 2,439,000,000 | 0 | ||||
Annual amortization rate, percentage | 1% | ||||||
Remaining mandatory quarterly amortization payments | $ 25,000,000 | ||||||
Remaining quarterly amortization payments | 106,000,000 | ||||||
Debt instrument, term | 5 years | ||||||
Principal amount outstanding | $ 2,488,000,000 | $ 2,488,000,000 | 0 | ||||
Stated interest rate on debt (as a percent) | 7.84% | 7.84% | |||||
Term Facility Due May 2027 | Base Rate Factor, SOFR | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.50% | ||||||
Term Facility Due May 2027 | SOFR Rate | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 3.25% | ||||||
Credit spread adjustment (as a percent) | 0.10% | ||||||
Term Facility Due May 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.015% | ||||||
Term Facility Due May 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Maximum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.475% | ||||||
Term Facility Due May 2027 | Base Rate | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 2.25% | ||||||
Term Facility Due May 2027 | Base Rate | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.50% | ||||||
Term Facility Due May 2027 | SOFR, CDOR, EURIBOR and SONIA Rates | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.015% | ||||||
Term Facility Due May 2027 | SOFR, CDOR, EURIBOR and SONIA Rates | Maximum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.475% | ||||||
Revolving credit facility | 2023 Revolving Credit Facility Due June 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,225,000,000 | ||||||
Alternate term, number of days prior to scheduled maturity in excess of principal amount threshold | 91 days | ||||||
Alternate term, principal amount maturity threshold | $ 1,000,000,000 | ||||||
Amount drawn under credit facility | $ 0 | $ 0 | 285,000,000 | ||||
Principal amount outstanding | 0 | 0 | 285,000,000 | ||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 975,000,000 | ||||||
Alternate term, number of days prior to scheduled maturity in excess of principal amount threshold | 91 days | ||||||
Alternate term, principal amount maturity threshold | $ 1,000,000,000 | ||||||
Amount drawn under credit facility | 470,000,000 | 470,000,000 | 0 | ||||
Incremental credit facility borrowings | $ 1,000,000,000 | ||||||
Incremental borrowings interest rate | 40% | ||||||
Interest coverage ratio (not less than) | 2 | ||||||
Principal amount outstanding | 470,000,000 | 470,000,000 | 0 | ||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | Senior Secured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Secured leverage ratio | 3.50 | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Total leverage ratio (not greater than) | 6.50 | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee, unutilized commitments, percentage | 0.25% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee, unutilized commitments, percentage | 0.50% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | SOFR Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0% | ||||||
Credit spread adjustment (as a percent) | 0.10% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | SOFR Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Credit spread adjustment (as a percent) | 0.25% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | EURIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 3.75% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 4.25% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | SOFR, CDOR and EURIBOR Rates | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 4.75% | ||||||
Revolving credit facility | Revolving Credit Facility Due February 2027 | SOFR, CDOR and EURIBOR Rates | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 5.25% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||
Amount drawn under credit facility | 0 | 0 | 0 | ||||
Percentage of net cash proceeds of insurance and condemnation proceeds for property or asset losses | 100% | ||||||
Percentage of cash proceeds from incurrence of debt | 100% | ||||||
Percentage of annual excess cash flow | 50% | ||||||
Percentage of cash proceeds from asset sales outside the ordinary course of business payable as mandatory prepayments | 100% | ||||||
Debt instrument, term | 5 years | ||||||
Principal amount outstanding | 0 | 0 | $ 0 | ||||
Facility fee (as a percent) | 0.25% | ||||||
Remaining availability | 476,000,000 | 476,000,000 | |||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee, unutilized commitments, percentage | 0.11% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | Maximum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee, unutilized commitments, percentage | 0.275% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | SOFR Rate | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Credit spread adjustment (as a percent) | 0.10% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0.75% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | U.S. Dollar Base Rate and Canadian Dollar Prime Rate | Maximum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.75% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | SOFR, CDOR, EURIBOR and SONIA Rates | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 0% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | SOFR, CDOR, EURIBOR and SONIA Rates | Minimum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 1.75% | ||||||
Revolving credit facility | Revolving Credit Facility Due May 2027 | SOFR, CDOR, EURIBOR and SONIA Rates | Maximum | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Variable interest rate | 2.75% | ||||||
Letter of Credit | Revolving Credit Facility Due February 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Amount drawn under credit facility | 25,000,000 | 25,000,000 | |||||
Letter of Credit | Revolving Credit Facility Due May 2027 | Bausch + Lomb | |||||||
Debt Instrument [Line Items] | |||||||
Amount drawn under credit facility | $ 24,000,000 | $ 24,000,000 |
FINANCING ARRANGEMENTS - Seni_2
FINANCING ARRANGEMENTS - Senior Secured Notes (Details) - USD ($) | 1 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||
May 10, 2022 | Feb. 10, 2022 | Jun. 08, 2021 | May 26, 2020 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2019 | Mar. 08, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Nov. 21, 2017 | Oct. 17, 2017 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price percentage due to change in control (as a percent) | 101% | |||||||||||||||
Repayments of long-term debt | $ 7,846,000,000 | $ 3,440,000,000 | $ 5,642,000,000 | |||||||||||||
Loss on extinguishment of debt | $ 64,000,000 | $ 38,000,000 | $ 27,000,000 | $ (875,000,000) | 62,000,000 | $ 59,000,000 | ||||||||||
Bausch + Lomb | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Ownership percentage by parent | 89% | 89% | ||||||||||||||
Bausch + Lomb | Intermediate Holdco | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Ownership percentage by parent | 38.60% | 38.60% | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price percentage due to change in control (as a percent) | 101% | |||||||||||||||
Repayments of long-term debt | $ 550,000,000 | |||||||||||||||
Loss on extinguishment of debt | $ (570,000,000) | $ (369,000,000) | ||||||||||||||
6.125% Senior Notes Due April 2025 | Senior Unsecured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 6.125% | 6.125% | ||||||||||||||
Redemption price percentage (as a percent) | 101.021% | |||||||||||||||
Repayments of long-term debt | $ 600,000,000 | |||||||||||||||
6.50% Senior Notes Due March 2022 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 6.50% | |||||||||||||||
Aggregate principal amount | $ 1,250,000,000 | |||||||||||||||
7.000 % Senior Notes Due March 2024 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 7% | |||||||||||||||
Aggregate principal amount | $ 2,000,000,000 | |||||||||||||||
5.500% Senior Notes Due November 2025 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 5.50% | 5.50% | 5.50% | |||||||||||||
Aggregate principal amount | $ 750,000,000 | $ 1,000,000,000 | ||||||||||||||
5.750% Senior Notes Due August 2027 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 5.75% | 5.75% | 5.75% | |||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
8.50% Senior Unsecured Notes Due January 2027 | Senior Unsecured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 8.50% | 8.50% | 8.50% | |||||||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 750,000,000 | ||||||||||||||
4.875% Senior Notes Due June 2028 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 4.875% | 4.875% | 4.875% | |||||||||||||
Aggregate principal amount | $ 1,600,000,000 | |||||||||||||||
4.875% Senior Notes Due June 2028 | Senior Secured Notes | Debt Instrument, Redemption, Period One | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price percentage (as a percent) | 100% | |||||||||||||||
4.875% Senior Notes Due June 2028 | Senior Secured Notes | Debt Instrument, Redemption, Period Two | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum percentage of principal amount that can be redeemed | 40% | |||||||||||||||
7.00% Senior Notes Due March 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of long-term debt | $ 1,600,000,000 | |||||||||||||||
6.125% Senior Notes Due February 2027 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 6.125% | 6.125% | 6.125% | |||||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||||||||
6.125% Senior Notes Due February 2027 | Senior Secured Notes | Debt Instrument, Redemption, Period One | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price percentage (as a percent) | 100% | |||||||||||||||
6.125% Senior Notes Due February 2027 | Senior Secured Notes | Debt Instrument, Redemption, Period Two | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum percentage of principal amount that can be redeemed | 40% | |||||||||||||||
11.00% First Lien Senior Notes Due September 2028 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 11% | 11% | ||||||||||||||
11.00% First Lien Senior Notes Due September 2028 | Senior Secured Notes | Debt Instrument, Redemption, Period One | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price percentage (as a percent) | 100% | |||||||||||||||
14.00% Second Lien Senior Notes2 Due October 2030 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 14% | 14% | ||||||||||||||
14.00% Second Lien Senior Notes2 Due October 2030 | Senior Secured Notes | Debt Instrument, Redemption, Period One | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Redemption price percentage (as a percent) | 100% | |||||||||||||||
14.00% Second Lien Senior Notes2 Due October 2030 | Senior Secured Notes | Debt Instrument, Redemption, Period Two | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum percentage of principal amount that can be redeemed | 40% | |||||||||||||||
9.00% Intermediate Holdco Senior Notes Due January 2028 | Senior Secured Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Stated interest rate on debt (as a percent) | 9% | 9% |
FINANCING ARRANGEMENTS - Seni_3
FINANCING ARRANGEMENTS - Senior Unsecured Notes (Details) | 1 Months Ended | 3 Months Ended | 7 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||||||||||
May 10, 2022 USD ($) | Jun. 08, 2021 USD ($) | Dec. 03, 2020 USD ($) | May 26, 2020 USD ($) | Dec. 30, 2019 USD ($) | May 23, 2019 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 18, 2022 USD ($) | Dec. 03, 2020 EUR (€) | Jan. 16, 2020 USD ($) | Mar. 31, 2019 USD ($) | Mar. 08, 2019 | Dec. 31, 2018 | Jun. 30, 2018 USD ($) | Mar. 26, 2018 USD ($) | Dec. 18, 2017 USD ($) | Mar. 31, 2017 USD ($) | Mar. 27, 2015 USD ($) | Mar. 27, 2015 EUR (€) | Jan. 30, 2015 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Redemption price percentage due to change in control (as a percent) | 101% | ||||||||||||||||||||||||||
Repayments of long-term debt | $ 7,846,000,000 | $ 3,440,000,000 | $ 5,642,000,000 | ||||||||||||||||||||||||
Loss on extinguishment of debt | $ 64,000,000 | $ 38,000,000 | $ 27,000,000 | $ (875,000,000) | 62,000,000 | 59,000,000 | |||||||||||||||||||||
Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (570,000,000) | ||||||||||||||||||||||||||
Term Loan B Facility Due June 2025 and November 2025 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repayment, outstanding debt | $ 303,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Redemption price percentage due to change in control (as a percent) | 101% | ||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 927,000,000 | $ 927,000,000 | |||||||||||||||||||||||||
Repayments of long-term debt | 550,000,000 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (570,000,000) | $ (369,000,000) | |||||||||||||||||||||||||
Senior Unsecured Notes | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 5,594,000,000 | 5,594,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 5.50% Senior Unsecured Notes Due March 2023 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5.50% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||||||||||||||
Repayments of long-term debt | $ 233,000,000 | $ 169,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 5.375% Senior Notes Due March 2020 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5.375% | 5.375% | |||||||||||||||||||||||||
Aggregate principal amount | $ 2,000,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 5.875% Senior Unsecured Notes Due May 2023 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5.875% | 5.875% | |||||||||||||||||||||||||
Aggregate principal amount | $ 3,250,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 4.50% Senior Unsecured Notes euro-denominated debt Due May 2023 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | € | € 1,500,000,000 | ||||||||||||||||||||||||||
Stated interest rate | 4.50% | 4.50% | |||||||||||||||||||||||||
Aggregate principal amount | € | € 1,500,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 6.125% Senior Unsecured Notes due April 2025 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 6.125% | 6.125% | |||||||||||||||||||||||||
Aggregate principal amount | $ 3,250,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | Senior Unsecured Notes due 2023 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 1,240,000,000 | ||||||||||||||||||||||||||
Repayments of long-term debt | $ 208,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 6.125% Senior Notes Due April 2025 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 6.125% | 6.125% | |||||||||||||||||||||||||
Redemption price percentage (as a percent) | 101.021% | ||||||||||||||||||||||||||
Repayments of long-term debt | $ 600,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 9.00% Senior Unsecured Notes Due December 2025 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 370,000,000 | ||||||||||||||||||||||||||
Stated interest rate | 9% | 9% | |||||||||||||||||||||||||
Debt covenant, redemption and discharge condition, amount, if circumstances met | $ 7,000,000,000 | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 9.00% Senior Unsecured Notes Due December 2025 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 541,000,000 | 541,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 9.25% Senior Unsecured Notes Due April 2026 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||
Stated interest rate | 9.25% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 9.25% Senior Unsecured Notes Due April 2026 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 752,000,000 | 752,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 8.50% Senior Unsecured Notes Due January 2027 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 8.50% | 8.50% | 8.50% | ||||||||||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | $ 750,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 8.50% Senior Unsecured Notes Due January 2027 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 1,099,000,000 | 1,099,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 7.00% Senior Unsecured Notes Due 2028 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 7% | ||||||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 750,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 7.00% Senior Unsecured Notes Due 2028 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 540,000,000 | 540,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 7.25% Senior Unsecured Notes Due 2029 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 7.25% | ||||||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 750,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 7.25% Senior Unsecured Notes Due 2029 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 373,000,000 | 373,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 5.00% Senior Unsecured Notes Due January 2028 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5% | ||||||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,250,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 5.00% Senior Unsecured Notes Due January 2028 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 710,000,000 | 710,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 5.25% Senior Unsecured Notes Due January 2030 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5.25% | ||||||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,250,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 5.25% Senior Unsecured Notes Due January 2030 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | 332,000,000 | 332,000,000 | |||||||||||||||||||||||||
Senior Unsecured Notes | 6.25% Senior Notes Due February 2029 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 6.25% | 6.25% | 6.25% | ||||||||||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||
Senior Unsecured Notes | 6.25% Senior Notes Due February 2029 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 540,000,000 | $ 540,000,000 | |||||||||||||||||||||||||
Stated interest rate | 6.25% | 6.25% | |||||||||||||||||||||||||
Senior Unsecured Notes | 6.25% Senior Notes Due February 2029 | Debt Instrument, Redemption, Period One | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Senior Unsecured Notes | 6.25% Senior Notes Due February 2029 | Debt Instrument, Redemption, Period Two | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Maximum percentage of the aggregate principal amount that may be redeemed with the net proceeds of certain equity offerings | 40% | ||||||||||||||||||||||||||
Senior Unsecured Notes | 5.00% Senior Notes Due February 2029 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5% | 5% | 5% | 5% | |||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||||||||||||||
Maximum percentage of the aggregate principal amount that may be redeemed with the net proceeds of certain equity offerings | 40% | ||||||||||||||||||||||||||
Senior Unsecured Notes | 5.00% Senior Notes Due February 2029 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 371,000,000 | $ 371,000,000 | |||||||||||||||||||||||||
Stated interest rate | 5% | 5% | |||||||||||||||||||||||||
Senior Unsecured Notes | 5.25% Senior Notes Due February 2031 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Stated interest rate | 5.25% | 5.25% | 5.25% | 5.25% | |||||||||||||||||||||||
Redemption price percentage (as a percent) | 100% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||||||||||||||
Maximum percentage of the aggregate principal amount that may be redeemed with the net proceeds of certain equity offerings | 40% | ||||||||||||||||||||||||||
Senior Unsecured Notes | 5.25% Senior Notes Due February 2031 | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 336,000,000 | $ 336,000,000 | |||||||||||||||||||||||||
Stated interest rate | 5.25% | 5.25% | |||||||||||||||||||||||||
Senior Unsecured Notes | 5.50% Senior Notes Due March 2023 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 233,000,000 | ||||||||||||||||||||||||||
Loss on extinguishment of debt | $ 7,000,000 | ||||||||||||||||||||||||||
Senior Secured Notes | Exchange Offer | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Aggregate principal amount | $ 3,125,000,000 | $ 3,125,000,000 | |||||||||||||||||||||||||
Senior Secured Notes | 6.50% Senior Notes Due March 2022 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Repurchased aggregate principal amount | $ 1,250,000,000 | ||||||||||||||||||||||||||
Stated interest rate | 6.50% | ||||||||||||||||||||||||||
Aggregate principal amount | $ 1,250,000,000 |
FINANCING ARRANGEMENTS - Weight
FINANCING ARRANGEMENTS - Weighted Average Stated Rate of Interest (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate | 7.74% | 5.88% |
FINANCING ARRANGEMENTS - Gain (
FINANCING ARRANGEMENTS - Gain (Loss) on Extinguishment of Debt (Details) - USD ($) | 1 Months Ended | 7 Months Ended | 12 Months Ended | |||||
May 10, 2022 | Jun. 08, 2021 | May 26, 2020 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||||
Repayments of long-term debt | $ 7,846,000,000 | $ 3,440,000,000 | $ 5,642,000,000 | |||||
Gain (loss) on extinguishment of debt | $ (64,000,000) | $ (38,000,000) | $ (27,000,000) | 875,000,000 | $ (62,000,000) | $ (59,000,000) | ||
Senior Unsecured Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchased aggregate principal amount | $ 927,000,000 | $ 927,000,000 | ||||||
Repayments of long-term debt | 550,000,000 | |||||||
Gain (loss) on extinguishment of debt | $ 570,000,000 | $ 369,000,000 |
FINANCING ARRANGEMENTS - Aggreg
FINANCING ARRANGEMENTS - Aggregate Maturities of Long-Term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 150 | |
2024 | 150 | |
2025 | 2,789 | |
2026 | 891 | |
2027 | 6,938 | |
Thereafter | 8,192 | |
Total debt obligations | 19,110 | $ 22,870 |
Unamortized premiums, discounts and issuance costs | 1,656 | |
Total long-term debt and other | $ 20,766 | $ 22,654 |
PENSION AND POSTRETIREMENT EM_3
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 defined_benefit_plan | Dec. 31, 2023 | Dec. 31, 2022 USD ($) defined_benefit_plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Future benefit payments period | 10 years | ||||
Contributions recognized | $ 47 | $ 44 | $ 43 | ||
Non-U.S. Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Underfunded pension benefit plans | 7 | 175 | |||
United States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Underfunded pension benefit plans | $ 162 | $ 0 | |||
Pension Benefit Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Benefit accrual, interest percentage earned on cash balance | 4.50% | ||||
Pension Benefit Plans | Non-U.S. Plans | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated company contributions in next fiscal year | $ 4 | ||||
Percentage of expected return on plan assets | 5.23% | 2.74% | 2.98% | ||
Pension Benefit Plans | Ireland | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Number of defined benefit plans | defined_benefit_plan | 2 | ||||
Number of defined benefit plans amended | defined_benefit_plan | 1 | ||||
Percentage of expected return on plan assets | 2.75% | ||||
Percentage allocation of fund | 92% | 95% | |||
Pension Benefit Plans | Ireland | Scenario, Forecast | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Percentage of expected return on plan assets | 4.25% | ||||
Pension Benefit Plans | United States | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Estimated company contributions in next fiscal year | $ 0 | ||||
Percentage of expected return on plan assets | 4.50% | 5% | 6.25% | ||
Pension Benefit Plans | United States | Scenario, Forecast | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Percentage of expected return on plan assets | 6% | ||||
Postretirement Benefit Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution maximum age | 65 years | ||||
Estimated company contributions in next fiscal year | $ 4 | ||||
Percentage of expected return on plan assets | 0% | 0% | 0% |
PENSION AND POSTRETIREMENT EM_4
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
U.S. Postretirement Benefit Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial (losses) gains | $ 3 | $ (2) |
Unrecognized prior service credits | 6 | 8 |
United States | Pension Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial (losses) gains | (35) | (18) |
Unrecognized prior service credits | 0 | 0 |
Non-U.S. Plans | Pension Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized actuarial (losses) gains | (21) | (42) |
Unrecognized prior service credits | $ 23 | $ 25 |
PENSION AND POSTRETIREMENT EM_5
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service credit | (2) | (3) | (3) |
Settlement loss recognized | 0 | 0 | 0 |
Net periodic (benefit) cost | (1) | (2) | (2) |
United States | Pension Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 1 |
Interest cost | 5 | 4 | 6 |
Expected return on plan assets | (10) | (11) | (13) |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 |
Settlement loss recognized | 1 | 0 | 0 |
Net periodic (benefit) cost | (3) | (6) | (6) |
Non-U.S. Plans | Pension Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4 | 3 | 3 |
Interest cost | 4 | 4 | 4 |
Expected return on plan assets | (4) | (5) | (5) |
Amortization of net loss | 1 | 2 | 2 |
Amortization of prior service credit | (1) | (1) | (1) |
Settlement loss recognized | 8 | 8 | 0 |
Net periodic (benefit) cost | $ 12 | $ 11 | $ 3 |
PENSION AND POSTRETIREMENT EM_6
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation, Plan Assets and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Postretirement Benefit Plan | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation, beginning of year | $ 35 | $ 39 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 1 | 1 | 1 |
Settlements | 0 | 0 | |
Benefits paid | (4) | (3) | |
Actuarial gain | (5) | (2) | |
Currency translation adjustments | 0 | 0 | |
Projected benefit obligation, end of year | 27 | 35 | 39 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 4 | 3 | |
Settlements | 0 | 0 | |
Benefits paid | (4) | (3) | |
Currency translation adjustments | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Funded status, end of year | (27) | (35) | |
Recognized as: | |||
Other non-current assets | 0 | 0 | |
Accrued and other current liabilities | 4 | 4 | |
Other non-current liabilities | 23 | 31 | |
United States | Pension Benefit Plans | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation, beginning of year | 220 | 236 | |
Service cost | 1 | 1 | 1 |
Interest cost | 5 | 4 | 6 |
Settlements | (7) | (4) | |
Benefits paid | (11) | (11) | |
Actuarial gain | (36) | (6) | |
Currency translation adjustments | 0 | 0 | |
Projected benefit obligation, end of year | 172 | 220 | 236 |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 224 | 231 | |
Actual return on plan assets | (44) | 8 | |
Company contributions | 0 | 0 | |
Settlements | (7) | (4) | |
Benefits paid | (11) | (11) | |
Currency translation adjustments | 0 | 0 | |
Fair value of plan assets, end of year | 162 | 224 | 231 |
Funded status, end of year | (10) | 4 | |
Recognized as: | |||
Other non-current assets | 0 | 4 | |
Accrued and other current liabilities | 0 | 0 | |
Other non-current liabilities | 10 | 0 | |
Non-U.S. Plans | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation, end of year | 113 | ||
Change in Plan Assets | |||
Fair value of plan assets, end of year | 93 | ||
Non-U.S. Plans | Pension Benefit Plans | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation, beginning of year | 228 | 294 | |
Service cost | 4 | 3 | 3 |
Interest cost | 4 | 4 | 4 |
Settlements | (50) | (43) | |
Benefits paid | (4) | (4) | |
Actuarial gain | (54) | (8) | |
Currency translation adjustments | (15) | (18) | |
Projected benefit obligation, end of year | 228 | 294 | |
Change in Plan Assets | |||
Fair value of plan assets, beginning of year | 175 | 189 | |
Actual return on plan assets | (41) | 18 | |
Company contributions | 25 | 28 | |
Settlements | (50) | (43) | |
Benefits paid | (4) | (4) | |
Currency translation adjustments | (12) | (13) | |
Fair value of plan assets, end of year | 175 | $ 189 | |
Funded status, end of year | (20) | (53) | |
Recognized as: | |||
Other non-current assets | 22 | 0 | |
Accrued and other current liabilities | 3 | 2 | |
Other non-current liabilities | $ 38 | $ 51 |
PENSION AND POSTRETIREMENT EM_7
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Underfunded Plans (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
United States | ||
Underfunded plans having accumulated benefit obligations exceeding the fair value of plan assets | ||
Projected benefit obligation | $ 172 | $ 0 |
Accumulated benefit obligation | 172 | 0 |
Fair value of plan assets | 162 | 0 |
Non-U.S. Plans | ||
Underfunded plans having accumulated benefit obligations exceeding the fair value of plan assets | ||
Projected benefit obligation | 48 | 228 |
Accumulated benefit obligation | 40 | 219 |
Fair value of plan assets | $ 7 | $ 175 |
PENSION AND POSTRETIREMENT EM_8
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Future Benefit Payments for the Pension Benefit Plans (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension Benefit Plans | United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | $ 14 |
2024 | 18 |
2025 | 17 |
2026 | 16 |
2027 | 17 |
2028-2032 | 70 |
Pension Benefit Plans | Non-U.S. Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 7 |
2024 | 6 |
2025 | 6 |
2026 | 6 |
2027 | 6 |
2028-2032 | 37 |
U.S. Postretirement Benefit Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023 | 4 |
2024 | 3 |
2025 | 3 |
2026 | 3 |
2027 | 3 |
2028-2032 | $ 10 |
PENSION AND POSTRETIREMENT EM_9
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Costs and Benefit Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Benefit Plans | United States | |||
For Determining Net Periodic (Benefit) Cost | |||
Discount rate | 2.69% | 2.25% | 3.16% |
Expected rate of return on plan assets | 4.50% | 5% | 6.25% |
Rate of compensation increase | 0% | 0% | 0% |
Interest crediting rate | 4.75% | 4.75% | 4.75% |
For Determining Benefit Obligation | |||
Discount rate | 5.41% | 2.69% | |
Rate of compensation increase | 0% | 0% | |
Interest crediting rate | 4.75% | 4.75% | |
Pension Benefit Plans | Non-U.S. Plans | |||
For Determining Net Periodic (Benefit) Cost | |||
Discount rate | 4.60% | 1.37% | 1.68% |
Expected rate of return on plan assets | 5.23% | 2.74% | 2.98% |
Rate of compensation increase | 3.53% | 2.60% | 3.05% |
Interest crediting rate | 0% | 0% | 0% |
For Determining Benefit Obligation | |||
Discount rate | 6.67% | 1.72% | |
Rate of compensation increase | 3.71% | 2.63% | |
Interest crediting rate | 0% | 0% | |
U.S. Postretirement Benefit Plan | |||
For Determining Net Periodic (Benefit) Cost | |||
Discount rate | 2.57% | 2.09% | 3.04% |
Expected rate of return on plan assets | 0% | 0% | 0% |
Rate of compensation increase | 0% | 0% | 0% |
For Determining Benefit Obligation | |||
Discount rate | 5.39% | 2.57% | |
Rate of compensation increase | 0% | 0% |
PENSION AND POSTRETIREMENT E_10
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Actual Asset Allocations (Details) - Pension Benefit Plans | Dec. 31, 2022 | Dec. 31, 2021 |
United States | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 1% | 1% |
United States | Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 40% | 30% |
United States | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 59% | 69% |
Non-U.S. Plans | Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 6% | 9% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 23% | 31% |
Non-U.S. Plans | Fixed income securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 45% | 39% |
Non-U.S. Plans | Other | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan, percentage of actual plan asset allocations | 26% | 21% |
PENSION AND POSTRETIREMENT E_11
PENSION AND POSTRETIREMENT EMPLOYEE BENEFIT PLANS - Fair Value of Pension and Postretirement Benefit Plan Assets Assumed in Connection with the Acquisition (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 93 | ||
Pension Benefit Plans | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 162 | $ 224 | $ 231 |
Pension Benefit Plans | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 175 | $ 189 | |
Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 162 | 224 | |
Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 94 | 175 | |
Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 160 | 223 | |
Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 81 | 172 | |
Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 12 | 2 | |
Cash and cash equivalents | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Cash and cash equivalents | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 6 | 15 | |
Cash and cash equivalents | Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 1 | |
Cash and cash equivalents | Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 6 | 15 | |
Cash and cash equivalents | Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. broad market | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 34 | 36 | |
U.S. broad market | Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. broad market | Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 34 | 36 | |
U.S. broad market | Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 7 | 6 | |
Emerging markets | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
Emerging markets | Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets | Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets | Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 7 | 6 | |
Emerging markets | Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | 3 | |
Emerging markets | Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Emerging markets | Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Worldwide developed markets | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 14 | 16 | |
Worldwide developed markets | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 21 | 51 | |
Worldwide developed markets | Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Worldwide developed markets | Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Worldwide developed markets | Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 14 | 16 | |
Worldwide developed markets | Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 21 | 51 | |
Worldwide developed markets | Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Worldwide developed markets | Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 10 | 10 | |
Other assets | Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets | Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 10 | 10 | |
Other assets | Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment grade | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 95 | 155 | |
Investment grade | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 3 | |
Investment grade | Level 1 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment grade | Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment grade | Level 2 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 95 | 155 | |
Investment grade | Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2 | 3 | |
Investment grade | Level 3 | Pension Benefit Plans | Recurring basis | United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment grade | Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Government bond funds | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 40 | 66 | |
Government bond funds | Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 1 | 1 | |
Government bond funds | Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 39 | 65 | |
Government bond funds | Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 24 | 37 | |
Other assets | Level 1 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Other assets | Level 2 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 12 | 35 | |
Other assets | Level 3 | Pension Benefit Plans | Recurring basis | Non-U.S. Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 12 | $ 2 |
LEASES - Right-of-use Assets an
LEASES - Right-of-use Assets and Right-of-use Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Right-of-use assets included in: | ||
Other non-current assets | $ 221 | $ 247 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Lease liabilities included in: | ||
Accrued and other current liabilities | $ 50 | $ 50 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued and other current liabilities | Accrued and other current liabilities |
Other non-current liabilities | $ 184 | $ 214 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Present value of remaining lease payments | $ 234 | $ 264 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Finance leases | $ 0 | $ 0 | $ 0 |
Sub-lease income | 0 | 0 | 0 |
Short-term lease expense | $ 0 | $ 0 | $ 0 |
LEASES - Lease Expenses (Detail
LEASES - Lease Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 62 | $ 67 | $ 65 |
Variable operating lease costs | $ 15 | $ 12 | $ 12 |
LEASES - Lease Additional Infor
LEASES - Lease Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Cash paid from operating cash flows for amounts included in the measurement of lease liabilities | $ 70 | $ 76 | $ 74 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 28 | $ 46 | $ 39 |
Weighted-average remaining lease term | 6 years 4 months 24 days | 7 years 2 months 12 days | 7 years 7 months 6 days |
Weighted-average discount rate | 6.50% | 6.10% | 6.20% |
LEASES - Lease Future Payments
LEASES - Lease Future Payments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 63 | |
2024 | 49 | |
2025 | 42 | |
2026 | 36 | |
2027 | 34 | |
Thereafter | 63 | |
Total | 287 | |
Less: Imputed interest | 53 | |
Present value of remaining lease payments | 234 | $ 264 |
Less: Current portion | 50 | 50 |
Non-current portion | $ 184 | $ 214 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 05, 2022 | Jul. 19, 2022 | Jun. 21, 2022 | May 05, 2022 | Apr. 28, 2020 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 22, 2022 | May 31, 2014 | |
Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 4 years | ||||||||||
Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Number of shares available for future grant (in shares) | 17,500,000 | ||||||||||
Stock options | |||||||||||
Share-based compensation | |||||||||||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 6.60 | $ 10.92 | $ 6.60 | ||||||||
Intrinsic value of stock options exercised in the period | $ 1 | $ 15 | $ 2 | ||||||||
Proceeds from exercise of stock options | 3 | 22 | 5 | ||||||||
Remaining unrecognized compensation expense related to non-vested awards | $ 14 | ||||||||||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 1 year 6 months | ||||||||||
Fair value of stock options vested | $ 15 | 15 | 15 | ||||||||
Incentive stock plan, term | 10 years | ||||||||||
Exercised (in shares) | 100,000 | ||||||||||
Stock options | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of stock options that will vest on the anniversaries from the date of grant | 33% | ||||||||||
Stock options | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of stock options that will vest on the anniversaries from the date of grant | 25% | ||||||||||
Stock options | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 3.84 | ||||||||||
Remaining unrecognized compensation expense related to non-vested awards | $ 4 | ||||||||||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 8 months 12 days | ||||||||||
Exercised (in shares) | 0 | ||||||||||
RSUs | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
Vesting period | 3 years | ||||||||||
Time-Based RSUs | |||||||||||
Share-based compensation | |||||||||||
Remaining unrecognized compensation expense related to non-vested awards | $ 94 | ||||||||||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 1 year 8 months 12 days | ||||||||||
Total fair value | $ 80 | $ 69 | $ 66 | ||||||||
Granted, one-time award (in shares) | 6,400,000 | ||||||||||
Granted (in dollars per share) | $ 11.44 | ||||||||||
Time-Based RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Remaining unrecognized compensation expense related to non-vested awards | $ 41 | ||||||||||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 1 year 6 months | ||||||||||
Granted, one-time award (in shares) | 4,300,000 | ||||||||||
Granted (in dollars per share) | $ 16.70 | ||||||||||
Performance-Based Restricted Stock Units | |||||||||||
Share-based compensation | |||||||||||
Remaining unrecognized compensation expense related to non-vested awards | $ 7 | ||||||||||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 4 months 24 days | ||||||||||
Total fair value | $ 31 | ||||||||||
Granted, one-time award (in shares) | 369,000 | ||||||||||
Granted (in dollars per share) | $ 9.40 | ||||||||||
Maximum common shares issuable upon vesting (in shares) | 1,104,000 | ||||||||||
ROTC Performance-Based Restricted Stock Units | |||||||||||
Share-based compensation | |||||||||||
Granted (in dollars per share) | $ 9.40 | ||||||||||
TSR Performance-Based Restricted Stock Units | |||||||||||
Share-based compensation | |||||||||||
Granted, one-time award (in shares) | 0 | ||||||||||
Non-Executive Eligible Recipients | Options and RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Incentive stock plan, grants in period (in shares) | 5,700,000 | ||||||||||
Certain Employees | Performance-Based Restricted Stock Units | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Remaining unrecognized compensation expense related to non-vested awards | $ 4 | ||||||||||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 2 months 12 days | ||||||||||
2014 Plan | |||||||||||
Share-based compensation | |||||||||||
Maximum shares authorized (in shares) | 18,000,000 | ||||||||||
Common shares available for issuance (in shares) | 20,000,000 | ||||||||||
Number of additional shares available for issuance (in shares) | 11,500,000 | 13,500,000 | |||||||||
Number of shares available for future grant (in shares) | 18,226,000 | ||||||||||
2014 Plan, Retention RSU Grant | Certain Executive Officers and Other Members of Leadership | RSUs | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
2014 Plan, Retention RSU Grant | Certain Executive Officers and Other Members of Leadership | RSUs | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33.33% | ||||||||||
2014 Plan, Retention RSU Grant | Certain Executive Officers and Other Members of Leadership | RSUs | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33.33% | ||||||||||
2014 Plan, Retention RSU Grant | Certain Executive Officers and Other Members of Leadership | RSUs | Vesting Period Three | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33.33% | ||||||||||
IPO Founders Grants | RSUs | Bausch + Lomb | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 50% | ||||||||||
IPO Founders Grants | RSUs | Bausch + Lomb | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 50% | ||||||||||
IPO Founders Grants | Executive Officer, Excluding The Chief Executive Officer | Options and RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
Involuntary termination, program criteria, if circumstances met, anniversary period | 1 year | ||||||||||
IPO Founders Grants | Executive Officer | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Granted, one-time award (in shares) | 3,900,000 | ||||||||||
IPO Founders Grants | Executive Officer | Stock options | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Incentive stock plan, award type, percent | 50% | ||||||||||
IPO Founders Grants | Executive Officer | RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Incentive stock plan, award type, percent | 50% | ||||||||||
IPO Founders Grants | Chief Executive Officer | Stock options | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
Involuntary termination, program criteria, if circumstances met, anniversary period | 2 years | ||||||||||
Involuntary termination, program criteria, if circumstances met, exercisable period following the anniversary period | 2 years | 2 years | |||||||||
Involuntary termination program criteria, if circumstances met, number of shares that will remain eligible to vest (in shares) | 1,248,496 | ||||||||||
IPO Founders Grants | Chief Executive Officer | RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
Involuntary termination, program criteria, if circumstances met, anniversary period | 2 years | ||||||||||
Involuntary termination program criteria, if circumstances met, number of shares that will vest (in shares) | 315,592 | ||||||||||
IPO Founders Grants | Non-Executive Eligible Recipients | Options and RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Incentive stock plan, grants in period (in shares) | 4,300,000 | ||||||||||
IPO Founders Grants | Non-Executive Eligible Recipients | Stock options | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
IPO Founders Grants | Non-Executive Eligible Recipients | RSUs | Bausch + Lomb | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 50% | ||||||||||
IPO Founders Grants | Non-Executive Eligible Recipients | RSUs | Bausch + Lomb | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 50% | ||||||||||
2022 Omnibus Incentive Plan | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Maximum shares authorized (in shares) | 28,000,000 | ||||||||||
2022 Omnibus Incentive Plan | Stock options | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
Incentive stock plan, term | 10 years | ||||||||||
2022 Omnibus Incentive Plan | Stock options | Bausch + Lomb | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
2022 Omnibus Incentive Plan | Stock options | Bausch + Lomb | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
2022 Omnibus Incentive Plan | Stock options | Bausch + Lomb | Vesting Period Three | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
2022 Omnibus Incentive Plan | RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
2022 Omnibus Incentive Plan | RSUs | Bausch + Lomb | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
2022 Omnibus Incentive Plan | RSUs | Bausch + Lomb | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
2022 Omnibus Incentive Plan | RSUs | Bausch + Lomb | Vesting Period Three | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33% | ||||||||||
2022 Omnibus Incentive Plan, Retention Program | Executive Officer And Certain Other Employees, Excluding The Chief Executive Officer | RSUs | Bausch + Lomb | |||||||||||
Share-based compensation | |||||||||||
Vesting period | 3 years | ||||||||||
Granted, one-time award (in shares) | 850,000 | ||||||||||
2022 Omnibus Incentive Plan, Retention Program | Executive Officer And Certain Other Employees, Excluding The Chief Executive Officer | RSUs | Bausch + Lomb | Vesting Period One | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33.33% | ||||||||||
2022 Omnibus Incentive Plan, Retention Program | Executive Officer And Certain Other Employees, Excluding The Chief Executive Officer | RSUs | Bausch + Lomb | Vesting Period Two | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33.33% | ||||||||||
2022 Omnibus Incentive Plan, Retention Program | Executive Officer And Certain Other Employees, Excluding The Chief Executive Officer | RSUs | Bausch + Lomb | Vesting Period Three | |||||||||||
Share-based compensation | |||||||||||
Percentage of vesting rights | 33.33% |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components and classification of share-based compensation expense | |||
Share-based compensation | $ 126 | $ 128 | $ 105 |
Research and development expenses | |||
Components and classification of share-based compensation expense | |||
Share-based compensation | 12 | 10 | 11 |
Selling, general and administrative expenses | |||
Components and classification of share-based compensation expense | |||
Share-based compensation | 114 | 118 | 94 |
Stock options | |||
Components and classification of share-based compensation expense | |||
Share-based compensation | 15 | 15 | 15 |
RSUs | |||
Components and classification of share-based compensation expense | |||
Share-based compensation | $ 111 | $ 113 | $ 90 |
Vesting period | 3 years |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options | |||
Method and assumptions on valuation of stock options | |||
Expected stock option life (years) | 3 years | 3 years | 3 years |
Expected volatility | 37.80% | 50.20% | 38.70% |
Risk-free interest rate | 1.80% | 0.40% | 1.20% |
Expected dividend yield | 0% | 0% | 0% |
Options | |||
Beginning of the period (in shares) | 8,900,000 | ||
Granted (in shares) | 2,600,000 | ||
Exercised (in shares) | (100,000) | ||
Expired or forfeited (in shares) | (600,000) | ||
End of the period (in shares) | 10,800,000 | 8,900,000 | |
Vested and expected to vest at the end of the period (in shares) | 10,300,000 | ||
Vested and exercisable at the end of the period (in shares) | 6,900,000 | ||
Weighted- Average Exercise Price Per Share | |||
Beginning of the period (in dollars per share) | $ 27.65 | ||
Granted (in dollars per share) | 23.95 | ||
Exercised (in dollars per share) | 19.57 | ||
Expired or forfeited (in dollars per share) | 28.29 | ||
End of the period (in dollars per share) | 26.83 | $ 27.65 | |
Vested and expected to vest at the end of the period (in dollars per share) | 26.86 | ||
Vested and exercisable at the end of the period (in dollars per share) | $ 27.39 | ||
Weighted- Average Remaining Contractual Term (Years) | |||
Outstanding at the end of the period | 6 years | ||
Vested and expected to vest at the end of the period | 5 years 10 months 24 days | ||
Vested and exercisable at the end of the period | 4 years 6 months | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ 0 | ||
Vested and expected to vest at the end of the period | 0 | ||
Vested and exercisable at the end of the period | $ 0 | ||
Additional disclosures | |||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 6.60 | $ 10.92 | $ 6.60 |
Intrinsic value of stock options exercised in the period | $ 1 | $ 15 | $ 2 |
Proceeds from exercise of stock options | 3 | $ 22 | $ 5 |
Remaining unrecognized compensation expense related to non-vested awards | $ 14 | ||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 1 year 6 months | ||
Stock options | Bausch + Lomb | |||
Method and assumptions on valuation of stock options | |||
Expected stock option life (years) | 3 years | ||
Expected volatility | 31.50% | ||
Risk-free interest rate | 3.10% | ||
Expected dividend yield | 0% | ||
Options | |||
Beginning of the period (in shares) | 0 | ||
Granted (in shares) | 6,400,000 | ||
Exercised (in shares) | 0 | ||
Expired or forfeited (in shares) | (100,000) | ||
End of the period (in shares) | 6,300,000 | 0 | |
Vested and expected to vest at the end of the period (in shares) | 1,200,000 | ||
Vested and exercisable at the end of the period (in shares) | 0 | ||
Weighted- Average Exercise Price Per Share | |||
Beginning of the period (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 18 | ||
Exercised (in dollars per share) | 0 | ||
Expired or forfeited (in dollars per share) | 18 | ||
End of the period (in dollars per share) | 18 | $ 0 | |
Vested and expected to vest at the end of the period (in dollars per share) | 18 | ||
Vested and exercisable at the end of the period (in dollars per share) | $ 0 | ||
Weighted- Average Remaining Contractual Term (Years) | |||
Outstanding at the end of the period | 9 years 4 months 24 days | ||
Vested and expected to vest at the end of the period | 4 years 6 months | ||
Vested and exercisable at the end of the period | 0 years | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ 0 | ||
Vested and expected to vest at the end of the period | 0 | ||
Vested and exercisable at the end of the period | $ 0 | ||
Additional disclosures | |||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 3.84 | ||
Remaining unrecognized compensation expense related to non-vested awards | $ 4 | ||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 8 months 12 days | ||
Vesting Period One | |||
Share-based compensation | |||
Vesting period | 3 years | ||
Vesting Period One | Stock options | |||
Share-based compensation | |||
Percentage of stock options that will vest on each of the first, second, third and fourth anniversaries from the date of grant | 33% | ||
Vesting Period Two | |||
Share-based compensation | |||
Vesting period | 4 years | ||
Vesting Period Two | Stock options | |||
Share-based compensation | |||
Percentage of stock options that will vest on each of the first, second, third and fourth anniversaries from the date of grant | 25% |
SHARE-BASED COMPENSATION - RSUs
SHARE-BASED COMPENSATION - RSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RSUs | |||
Share-based compensation | |||
Percentage of vesting rights | 33% | ||
Vesting period | 3 years | ||
Time-Based RSUs | |||
Share-based compensation | |||
Remaining unrecognized compensation expense related to non-vested awards | $ 94 | ||
Total fair value | $ 80 | $ 69 | $ 66 |
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 1 year 8 months 12 days | ||
RSUs | |||
Beginning of the period (in shares) | 5,400,000 | ||
Granted (in shares) | 6,400,000 | ||
Vested (in shares) | (3,000,000) | ||
Forfeited (in shares) | (500,000) | ||
End of the period (in shares) | 8,300,000 | 5,400,000 | |
Weighted- Average Grant-Date Fair Value Per Share | |||
Beginning of the period (in dollars per share) | $ 28.16 | ||
Granted (in dollars per share) | 11.44 | ||
Vested (in dollars per share) | 26.55 | ||
Forfeited (in dollars per share) | 24.63 | ||
End of the period (in dollars per share) | $ 15.97 | $ 28.16 | |
Time-Based RSUs | Bausch + Lomb | |||
Share-based compensation | |||
Remaining unrecognized compensation expense related to non-vested awards | $ 41 | ||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 1 year 6 months | ||
RSUs | |||
Beginning of the period (in shares) | 0 | ||
Granted (in shares) | 4,300,000 | ||
Vested (in shares) | 0 | ||
Forfeited (in shares) | (100,000) | ||
End of the period (in shares) | 4,200,000 | 0 | |
Weighted- Average Grant-Date Fair Value Per Share | |||
Beginning of the period (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 16.70 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 17.93 | ||
End of the period (in dollars per share) | $ 16.67 | $ 0 | |
Performance-Based Restricted Stock Units | |||
Share-based compensation | |||
Remaining unrecognized compensation expense related to non-vested awards | $ 7 | ||
Total fair value | $ 31 | ||
Weighted-average remaining requisite service period over which unrecognized compensation cost is expected to be amortized | 4 months 24 days | ||
Maximum common shares issuable upon vesting (in shares) | 1,104,000 | ||
RSUs | |||
Beginning of the period (in shares) | 2,300,000 | ||
Granted (in shares) | 369,000 | ||
Vested (in shares) | (1,000,000) | ||
Forfeited (in shares) | (100,000) | ||
End of the period (in shares) | 1,600,000 | 2,300,000 | |
Weighted- Average Grant-Date Fair Value Per Share | |||
Beginning of the period (in dollars per share) | $ 33.92 | ||
Granted (in dollars per share) | 9.40 | ||
Vested (in dollars per share) | 30.89 | ||
Forfeited (in dollars per share) | 34.32 | ||
End of the period (in dollars per share) | $ 29.83 | $ 33.92 | |
TSR Performance-Based Restricted Stock Units | |||
RSUs | |||
Granted (in shares) | 0 | ||
Method and assumptions on valuation of stock options | |||
Contractual term (years) | 3 years | 3 years | |
Expected Company share volatility | 52% | 38.60% | |
Risk-free interest rate | 0.40% | 1.20% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 260 | $ (34) | $ 605 | $ 1,136 |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (2,038) | (1,905) | ||
Pension adjustment, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (18) | (19) | ||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (2,056) | $ (1,924) | $ (2,133) | $ (2,086) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Issuance of common shares | $ 675 | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Issuance of common shares | $ 137 | $ 137 |
RESEARCH AND DEVELOPMENT - Sche
RESEARCH AND DEVELOPMENT - Schedule of Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Research and Development [Abstract] | |||
Product related research and development | $ 500 | $ 440 | $ 420 |
Quality assurance | 29 | 25 | 32 |
Research and development | $ 529 | $ 465 | $ 452 |
OTHER EXPENSE, NET - Schedule o
OTHER EXPENSE, NET - Schedule of Other Expense, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Litigation and other matters | $ 9 | $ 356 | $ 422 |
Acquired in-process research and development costs | 1 | 8 | 32 |
Net gain on sale of assets | (5) | (2) | (1) |
Acquisition-related contingent consideration | 29 | 11 | 48 |
Other, net | 1 | 0 | 1 |
Other expense, net | $ 35 | $ 373 | $ 502 |
OTHER EXPENSE, NET - Narrative
OTHER EXPENSE, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Schedule Of Other Income And Expenses [Line Items] | ||||
Litigation and other matters | $ 9 | $ 356 | $ 422 | |
Milestone achievement, included in net (loss) gain on sale of assets | 5 | 2 | 1 | |
Acquired in-process research and development costs | $ 1 | 8 | $ 32 | |
Amoun | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Schedule Of Other Income And Expenses [Line Items] | ||||
Impairment write-down | 26 | $ 210 | ||
Milestone Payment Related To Certain Product | ||||
Schedule Of Other Income And Expenses [Line Items] | ||||
Milestone achievement, included in net (loss) gain on sale of assets | $ 25 |
INCOME TAXES - Components of Be
INCOME TAXES - Components of Benefit from Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Components of loss before benefit of income taxes | |||
Domestic | $ 64 | $ (323) | $ (410) |
Foreign | (193) | (701) | (524) |
Loss before income taxes | (129) | (1,024) | (934) |
Current: | |||
Domestic | (15) | (23) | (8) |
Foreign | (256) | 74 | (216) |
Total | (271) | 51 | (224) |
Deferred: | |||
Domestic | 14 | 20 | 9 |
Foreign | 174 | 16 | 590 |
Total | 188 | 36 | 599 |
(Provision for) benefit from income taxes | $ (83) | $ 87 | $ 375 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Canadian statutory rate | 26.90% | 26.90% | 26.90% |
Loss before income taxes | $ (129) | $ (1,024) | $ (934) |
(Provision for) benefit from income taxes | |||
Expected benefit from income taxes at Canadian statutory rate | 35 | 275 | 251 |
Non-deductible amount of share-based compensation | (19) | (9) | (9) |
Adjustments to tax attributes | 53 | (59) | 26 |
Change in valuation allowance related to foreign tax credits and NOLs | 100 | 28 | 62 |
Change in valuation allowance on Canadian deferred tax assets and tax rate changes | 24 | 40 | 687 |
Change in uncertain tax positions | (50) | 112 | (163) |
Foreign tax rate differences | (57) | (198) | (128) |
Non-deductible portion of Goodwill impairments | (175) | (99) | 0 |
Tax benefit on intra-entity transfers | 0 | 0 | (338) |
Other | 6 | (3) | (13) |
(Provision for) benefit from income taxes | $ (83) | $ 87 | $ 375 |
INCOME TAXES - Tax Effect of Ma
INCOME TAXES - Tax Effect of Major Items Recorded as Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Tax loss carryforwards | $ 2,872 | $ 2,973 |
Provisions | 859 | 991 |
Debt discounts and deferred financing costs | 370 | 0 |
Research and development tax credits | 140 | 173 |
Scientific Research and Experimental Development pool | 48 | 52 |
Tax credit carryforwards | 14 | 14 |
Deferred revenue | 2 | 3 |
Prepaid expenses | 26 | 26 |
Share-based compensation | 22 | 17 |
Other | 24 | 38 |
Total deferred tax assets | 4,377 | 4,287 |
Less valuation allowance | (2,023) | (2,222) |
Deferred tax assets net of valuation allowance | 2,354 | 2,065 |
Deferred tax liabilities: | ||
Intangible assets | 191 | 188 |
Plant, equipment and technology | 74 | 44 |
Outside basis differences | 125 | 110 |
Total deferred tax liabilities | 390 | 342 |
Net deferred tax asset | $ 1,964 | $ 1,723 |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of year | $ 1,863 | $ 1,813 | |
Charged to other accounts | 5,571 | 5,428 | |
Balance, end of year | 1,910 | 1,863 | $ 1,813 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, beginning of year | 2,222 | 2,252 | 2,831 |
Charged to Benefit from income taxes | (124) | (63) | (773) |
Charged to other accounts | (75) | 33 | 194 |
Balance, end of year | $ 2,023 | $ 2,222 | $ 2,252 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Nov. 08, 2022 EUR (€) | Aug. 08, 2017 USD ($) | Dec. 31, 2022 USD ($) subsidiary | Dec. 31, 2022 CAD ($) subsidiary | Dec. 31, 2021 USD ($) | Dec. 31, 2022 CAD ($) | |
Income Tax [Line Items] | ||||||
Valuation allowance against deferred tax assets | $ 2,023 | $ 2,222 | ||||
Unrecognized tax benefits including interest and penalties | 881 | 927 | ||||
Portion of unrecognized tax benefits, if recognized, would affect the Company's effective tax rate | 384 | 217 | ||||
Unrecognized tax benefits, net increase for tax positions of current year | 156 | 79 | ||||
Unrecognized tax benefits, net decrease for tax positions of prior years | 203 | |||||
Unrecognized tax benefits, net increase for tax positions of prior years | 177 | |||||
Accrued interest and penalties related to unrecognized tax benefits | 32 | 41 | ||||
Net increase (decrease) recognized in interest and penalties | $ (9) | 8 | ||||
Number of subsidiaries file federal income tax returns in Canada, U.S., and other foreign jurisdictions (or more) | subsidiary | 1 | 1 | ||||
Estimate of possible loss, income tax examination (up to) | $ 2,100 | |||||
Possible decrease in unrecognized tax benefits realized in next twelve months | 4 | |||||
Tax Year 2013 | ||||||
Income Tax [Line Items] | ||||||
Estimate of possible loss, income tax examination (up to) | $ 90 | |||||
Canadian Federal and Provincial | ||||||
Income Tax [Line Items] | ||||||
Decrease in valuation allowance | 199 | 30 | ||||
Accumulated losses available for federal and provincial purposes | 5,878 | 6,669 | ||||
Unclaimed investment tax credits and research and development credits | 27 | 31 | ||||
Valuation allowance against deferred tax assets | 1,869 | 1,965 | ||||
Canadian Federal and Provincial | Pooled Scientific Research and Experimental Development | ||||||
Income Tax [Line Items] | ||||||
Tax credit carryforward | 188 | 196 | ||||
United States - Federal | ||||||
Income Tax [Line Items] | ||||||
Accumulated losses available for federal and provincial purposes | 241 | 266 | ||||
Unclaimed investment tax credits and research and development credits | 75 | 119 | ||||
Ireland | Revenue Commissioners, Ireland | ||||||
Income Tax [Line Items] | ||||||
Accumulated losses available for federal and provincial purposes | $ 10,691 | $ 10,040 | ||||
Ireland | Australian Taxation Office | ||||||
Income Tax [Line Items] | ||||||
Estimate of possible loss, income tax examination (up to) | $ 117 | |||||
Ireland | Tax Year 2005 through Tax Year 2009 | Canada Revenue Agency | ||||||
Income Tax [Line Items] | ||||||
Reduction in NOLs | $ 44 | |||||
Ireland | Tax Year 2012 | Canada Revenue Agency | ||||||
Income Tax [Line Items] | ||||||
Estimate of possible loss, income tax examination (up to) | $ 85 | |||||
Ireland | Tax Year 2015 | Canada Revenue Agency | ||||||
Income Tax [Line Items] | ||||||
Reduction in NOLs | 21 | |||||
Ireland | Tax Year 2016 | Canada Revenue Agency | ||||||
Income Tax [Line Items] | ||||||
Reduction in NOLs | $ 23 | |||||
Luxembourg | Tax Year 2018 and 2019 | ||||||
Income Tax [Line Items] | ||||||
Estimate of possible loss, income tax examination (up to) | € | € 271.7 |
INCOME TAXES - Federal Income T
INCOME TAXES - Federal Income Tax Returns by Jurisdiction (Details) | 12 Months Ended |
Dec. 31, 2022 | |
United States - Federal | Minimum | |
Income Taxes | |
Open Years | 2015 |
United States - Federal | Maximum | |
Income Taxes | |
Open Years | 2021 |
Canada | Minimum | |
Income Taxes | |
Open Years | 2012 |
Canada | Maximum | |
Income Taxes | |
Open Years | 2021 |
Germany | Minimum | |
Income Taxes | |
Open Years | 2014 |
Germany | Maximum | |
Income Taxes | |
Open Years | 2021 |
France | Minimum | |
Income Taxes | |
Open Years | 2013 |
France | Maximum | |
Income Taxes | |
Open Years | 2021 |
Ireland | Minimum | |
Income Taxes | |
Open Years | 2018 |
Ireland | Maximum | |
Income Taxes | |
Open Years | 2021 |
Australia | Minimum | |
Income Taxes | |
Open Years | 2018 |
Australia | Maximum | |
Income Taxes | |
Open Years | 2021 |
Luxembourg | Minimum | |
Income Taxes | |
Open Years | 2017 |
Luxembourg | Maximum | |
Income Taxes | |
Open Years | 2021 |
INCOME TAXES - Reconciliation S
INCOME TAXES - Reconciliation Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 927 | $ 1,025 | $ 1,002 |
Additions based on tax positions related to the current year | 156 | 79 | 66 |
Additions for tax positions of prior years | 10 | 121 | 171 |
Reductions for tax positions of prior years | (127) | (129) | (209) |
Lapse of statute of limitations | (85) | (169) | (5) |
Balance, end of year | $ 881 | $ 927 | $ 1,025 |
LOSS PER SHARE - Schedule of Ca
LOSS PER SHARE - Schedule of Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net loss attributable to Bausch Health Companies Inc. | $ (225) | $ (948) | $ (560) |
Basic weighted-average common shares outstanding (in shares) | 362,000 | 358,900 | 355,000 |
Diluted weighted-average common shares (in shares) | 362,000 | 358,900 | 355,000 |
Basic loss per share attributable to Bausch Health Companies Inc. (in dollars per share) | $ (0.62) | $ (2.64) | $ (1.58) |
Diluted loss per share attributable to Bausch Health Companies Inc. (in dollars per share) | $ (0.62) | $ (2.64) | $ (1.58) |
LOSS PER SHARE - Narrative (Det
LOSS PER SHARE - Narrative (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Compensation Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per share, effect anti-dilutive (in shares) | 1,851 | 4,932 | 3,154 |
Stock options, Time-based RSUs, Performance-based RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per share, effect anti-dilutive (in shares) | 14,396 | 3,428 | 9,551 |
Performance-Based Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from computation of diluted earnings per share, effect anti-dilutive (in shares) | 156 | 156 |
SUPPLEMENTAL CASH FLOW DISCLO_3
SUPPLEMENTAL CASH FLOW DISCLOSURES - Schedule of Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other payments | |||
Interest paid | $ 1,540 | $ 1,419 | $ 1,474 |
Income taxes paid | $ 266 | $ 240 | $ 162 |
LEGAL PROCEEDINGS - Narrative (
LEGAL PROCEEDINGS - Narrative (Details) $ in Thousands, $ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Feb. 23, 2023 defendant | Feb. 17, 2023 | Jul. 21, 2022 | Feb. 02, 2022 | Sep. 10, 2021 | Jul. 26, 2021 USD ($) | Jul. 20, 2021 USD ($) insured | Aug. 28, 2020 | Aug. 04, 2020 CAD ($) | May 01, 2020 | Mar. 26, 2020 | Dec. 16, 2019 USD ($) | Jan. 28, 2019 USD ($) | Dec. 07, 2017 insurance_policy_period | Feb. 23, 2023 USD ($) | Jan. 31, 2023 | Dec. 31, 2021 USD ($) | Nov. 30, 2021 | Apr. 30, 2021 | Mar. 31, 2021 defendant proceeding | Apr. 30, 2018 USD ($) | Oct. 31, 2015 case | Sep. 16, 2016 action | Dec. 31, 2022 USD ($) defendant group case action lawsuit | Dec. 31, 2021 USD ($) | Jul. 30, 2020 case | Dec. 31, 2016 case | Mar. 17, 2021 number_business | Feb. 15, 2019 entity | |
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Legal matters and related fees | $ | $ 1,890,000 | $ 326,000 | $ 1,890,000 | ||||||||||||||||||||||||||
Investigation by the U.S. Attorney’s Office for the District of Massachusetts-OraPharma Litigation | Settled Litigation | Subsequent Event | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Litigation, amount paid | $ | $ 100 | ||||||||||||||||||||||||||||
Valeant US Securities Litigation | New Jersey | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of groups of investors | group | 37 | ||||||||||||||||||||||||||||
Number of cases dismissed | 16 | ||||||||||||||||||||||||||||
Number of groups of investors filing action, remain pending | group | 21 | ||||||||||||||||||||||||||||
Valeant US Securities Litigation | New Jersey | Settled Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Litigation, amount paid | $ | $ 1,210,000 | $ 1,510,000 | |||||||||||||||||||||||||||
Valeant US Securities Litigation | New Jersey | Unfavorable Regulatory Action | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | 4 | ||||||||||||||||||||||||||||
Canadian Securities Litigation | Canada | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | 6 | ||||||||||||||||||||||||||||
Canadian Securities Litigation | Canada | Violation of Canadian Provincial Securities Legislation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of additional suits filed, but not served | action | 2 | ||||||||||||||||||||||||||||
Number of entities, exercised opt-out right, pursuing action | 4 | 1 | |||||||||||||||||||||||||||
Canadian Securities Litigation | Canada | Violation of Canadian Provincial Securities Legislation | Settled Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Litigation, amount paid | $ | $ 94 | ||||||||||||||||||||||||||||
RICO Class Actions Litigation | New Jersey | Unfavorable Regulatory Action | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | action | 3 | ||||||||||||||||||||||||||||
Insurance Coverage Lawsuit | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of distinct insurance policy periods | insurance_policy_period | 2 | ||||||||||||||||||||||||||||
Insurance Coverage Lawsuit | Settled Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Settlement agreements, number of insurers | insured | 2 | ||||||||||||||||||||||||||||
Aggregate amount received | $ | $ 213,000 | ||||||||||||||||||||||||||||
Perrigo Israel Pharmaceuticals, Ltd. Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 months | ||||||||||||||||||||||||||||
Glumetza Antitrust Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | 8 | ||||||||||||||||||||||||||||
Glumetza Antitrust Litigation | Plaintiffs, Direct Purchasers | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | 3 | ||||||||||||||||||||||||||||
Glumetza Antitrust Litigation | Pending Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Litigation, amount paid | $ | $ 300,000 | ||||||||||||||||||||||||||||
Glumetza Antitrust Litigation, Non-Class Complaints | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | 4 | ||||||||||||||||||||||||||||
Glumetza Antitrust Litigation, Non-Class Complaints | Plaintiffs, Direct Purchasers | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Recent suits filed | 3 | ||||||||||||||||||||||||||||
Norwich Pharmaceuticals Inc. Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 months | ||||||||||||||||||||||||||||
Taro Pharmaceuticals Inc. Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 days | ||||||||||||||||||||||||||||
Padagis Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 days | ||||||||||||||||||||||||||||
MSN Laboratories Private Ltd. Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 months | ||||||||||||||||||||||||||||
Aurobindo Pharma Limited Litigation | Subsequent Event | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 months | ||||||||||||||||||||||||||||
PreserVision® AREDS Patent Litigation | Bausch + Lomb | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of defendants | defendant | 19 | ||||||||||||||||||||||||||||
Number of proceedings | proceeding | 16 | ||||||||||||||||||||||||||||
PreserVision® AREDS Patent Litigation | Pending Litigation | Subsequent Event | Bausch + Lomb | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of defendants | defendant | 2 | ||||||||||||||||||||||||||||
PreserVision® AREDS Patent Litigation | Settled Litigation | Bausch + Lomb | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of defendants | defendant | 12 | ||||||||||||||||||||||||||||
PreserVision® AREDS Patent Litigation | Default Judgement | Bausch + Lomb | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of defendants | defendant | 2 | ||||||||||||||||||||||||||||
Lumify Paragraph I V Proceedings Slayback ANDA Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 months | ||||||||||||||||||||||||||||
Lumify Paragraph I V Proceedings Lupin ANDA Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, period | 30 months | ||||||||||||||||||||||||||||
Apotex Inc. Litigation | Canada | Pending Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Patents allegedly infringed upon, number | lawsuit | 3 | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of the approval period | 60 days | ||||||||||||||||||||||||||||
Stay of approval, motion to extend, period | 60 days | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation | Pending Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of cases | 26 | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation | Pending Litigation, Agreed Stipulations Of Dismissal Submitted | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of cases | 3 | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation | Canada | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of cases | 2 | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation | British Columbia | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of cases | 1 | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation | Quebec | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of cases | 1 | ||||||||||||||||||||||||||||
Shower To Shower Product Liability Litigation Alleging Caused Ovarian Cancer Mesothelioma Or Breast Cancer | Pending Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Number of cases | 25 | ||||||||||||||||||||||||||||
Doctors Allergy Formula, LLC Litigation | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Damages sought | $ | $ 23,000 | ||||||||||||||||||||||||||||
Litigation with Former Salix CEO | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Damages sought | $ | $ 30,000 | ||||||||||||||||||||||||||||
California Proposition 65 Related Matter Litigation | Subsequent Event | |||||||||||||||||||||||||||||
Legal proceedings and other matters | |||||||||||||||||||||||||||||
Stay of approval, motion to extend, period one | 60 days | ||||||||||||||||||||||||||||
Stay of approval, motion to extend, period two | 7 days |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | Dec. 31, 2022 USD ($) |
Other commitments | |
Capital expenditures | $ 42,000,000 |
Milestone payments in terms of collaboration and license agreements, aggregate | 250,000,000 |
Spear Pharmaceuticals, Inc. And Spear Dermatology Products Inc. | |
Other commitments | |
Milestone payments in terms of collaboration and license agreements, aggregate | 35,000,000 |
Mitsubishi Tanabe Pharma Corporation | |
Other commitments | |
Milestone payments in terms of collaboration and license agreements, aggregate | 60,000,000 |
Novaliq GmbH | |
Other commitments | |
Milestone payments in terms of collaboration and license agreements, aggregate | 48,000,000 |
Eyenovia, Inc. | |
Other commitments | |
Milestone payments in terms of collaboration and license agreements, aggregate | $ 35,000,000 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Salix | Xifaxan Branded Products | Revenue from Contract with Customer, Segment Benchmark | Product Concentration Risk | |||
Segment reporting information | |||
Concentration risk, percentage | 80% | 80% | 80% |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Revenues and Profit (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
May 10, 2022 | Jun. 08, 2021 | May 26, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment reporting information | ||||||
Total revenues | $ 8,124 | $ 8,434 | $ 8,027 | |||
Operating income | 454 | 450 | 676 | |||
Amortization of intangible assets | (1,215) | (1,375) | (1,645) | |||
Goodwill impairments | (824) | (469) | 0 | |||
Asset impairments, including loss on assets held for sale | (15) | (234) | (114) | |||
Restructuring, integration, separation and IPO costs | (63) | (50) | (22) | |||
Other expense, net | (35) | (373) | (502) | |||
Interest income | 14 | 7 | 13 | |||
Interest expense | (1,464) | (1,426) | (1,534) | |||
Gain (loss) on extinguishment of debt | $ (64) | $ (38) | $ (27) | 875 | (62) | (59) |
Foreign exchange and other | (8) | 7 | (30) | |||
Loss before income taxes | (129) | (1,024) | (934) | |||
Salix | ||||||
Segment reporting information | ||||||
Total revenues | 2,090 | 2,074 | 1,904 | |||
International | ||||||
Segment reporting information | ||||||
Total revenues | 988 | 1,166 | 1,181 | |||
Solta Medical | ||||||
Segment reporting information | ||||||
Total revenues | 300 | 308 | 253 | |||
Diversified Products | ||||||
Segment reporting information | ||||||
Total revenues | 978 | 1,121 | 1,274 | |||
Bausch + Lomb | ||||||
Segment reporting information | ||||||
Total revenues | 3,768 | 3,765 | 3,415 | |||
Operating Segments | ||||||
Segment reporting information | ||||||
Total revenues | 8,124 | 8,434 | 8,027 | |||
Operating income | 3,434 | 3,743 | 3,578 | |||
Operating Segments | Salix | ||||||
Segment reporting information | ||||||
Total revenues | 2,090 | 2,074 | 1,904 | |||
Operating income | 1,489 | 1,493 | 1,338 | |||
Operating Segments | International | ||||||
Segment reporting information | ||||||
Total revenues | 988 | 1,166 | 1,181 | |||
Operating income | 324 | 403 | 386 | |||
Operating Segments | Solta Medical | ||||||
Segment reporting information | ||||||
Total revenues | 300 | 308 | 253 | |||
Operating income | 135 | 167 | 131 | |||
Operating Segments | Diversified Products | ||||||
Segment reporting information | ||||||
Total revenues | 978 | 1,121 | 1,274 | |||
Operating income | 612 | 722 | 814 | |||
Operating Segments | Bausch + Lomb | ||||||
Segment reporting information | ||||||
Total revenues | 3,768 | 3,765 | 3,415 | |||
Operating income | 874 | 958 | 909 | |||
Corporate | ||||||
Segment reporting information | ||||||
Operating income | $ (828) | $ (792) | $ (619) |
SEGMENT INFORMATION - Capital E
SEGMENT INFORMATION - Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capital expenditures: | |||
Total capital expenditures | $ 220 | $ 269 | $ 302 |
Operating Segments | |||
Capital expenditures: | |||
Total capital expenditures | 206 | 227 | 289 |
Operating Segments | Salix | |||
Capital expenditures: | |||
Total capital expenditures | 3 | 2 | 3 |
Operating Segments | International | |||
Capital expenditures: | |||
Total capital expenditures | 21 | 22 | 29 |
Operating Segments | Solta Medical | |||
Capital expenditures: | |||
Total capital expenditures | 3 | 2 | 4 |
Operating Segments | Diversified Products | |||
Capital expenditures: | |||
Total capital expenditures | 1 | 0 | 0 |
Operating Segments | Bausch + Lomb | |||
Capital expenditures: | |||
Total capital expenditures | 178 | 201 | 253 |
Corporate | |||
Capital expenditures: | |||
Total capital expenditures | $ 14 | $ 42 | $ 13 |
SEGMENT INFORMATION - Revenues
SEGMENT INFORMATION - Revenues by Product Category (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) product | Dec. 31, 2021 USD ($) product | Dec. 31, 2020 USD ($) product | |
Revenue from External Customer [Line Items] | |||
Number of products represented of total revenue | product | 10 | 10 | 10 |
Revenues | $ 8,124 | $ 8,434 | $ 8,027 |
Pharmaceuticals | |||
Revenue from External Customer [Line Items] | |||
Revenues | 3,676 | 3,763 | 3,680 |
Devices | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,872 | 1,903 | 1,566 |
OTC | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,611 | 1,532 | 1,430 |
Branded and Other Generics | |||
Revenue from External Customer [Line Items] | |||
Revenues | 887 | 1,144 | 1,248 |
Other revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | 78 | 92 | 103 |
Salix | |||
Revenue from External Customer [Line Items] | |||
Revenues | 2,090 | 2,074 | 1,904 |
Salix | Pharmaceuticals | |||
Revenue from External Customer [Line Items] | |||
Revenues | 2,090 | 2,066 | 1,899 |
Salix | Devices | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Salix | OTC | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Salix | Branded and Other Generics | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Salix | Other revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 8 | 5 |
International | |||
Revenue from External Customer [Line Items] | |||
Revenues | 988 | 1,166 | 1,181 |
International | Pharmaceuticals | |||
Revenue from External Customer [Line Items] | |||
Revenues | 279 | 259 | 255 |
International | Devices | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
International | OTC | |||
Revenue from External Customer [Line Items] | |||
Revenues | 151 | 136 | 112 |
International | Branded and Other Generics | |||
Revenue from External Customer [Line Items] | |||
Revenues | 527 | 738 | 775 |
International | Other revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | 31 | 33 | 39 |
Solta Medical | |||
Revenue from External Customer [Line Items] | |||
Revenues | 300 | 308 | 253 |
Solta Medical | Pharmaceuticals | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Solta Medical | Devices | |||
Revenue from External Customer [Line Items] | |||
Revenues | 300 | 308 | 253 |
Solta Medical | OTC | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Solta Medical | Branded and Other Generics | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Solta Medical | Other revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Diversified Products | |||
Revenue from External Customer [Line Items] | |||
Revenues | 978 | 1,121 | 1,274 |
Diversified Products | Pharmaceuticals | |||
Revenue from External Customer [Line Items] | |||
Revenues | 826 | 924 | 1,020 |
Diversified Products | Devices | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | 0 |
Diversified Products | OTC | |||
Revenue from External Customer [Line Items] | |||
Revenues | 7 | 7 | 7 |
Diversified Products | Branded and Other Generics | |||
Revenue from External Customer [Line Items] | |||
Revenues | 120 | 167 | 219 |
Diversified Products | Other revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | 25 | 23 | 28 |
Bausch + Lomb | |||
Revenue from External Customer [Line Items] | |||
Revenues | 3,768 | 3,765 | 3,415 |
Bausch + Lomb | Pharmaceuticals | |||
Revenue from External Customer [Line Items] | |||
Revenues | 481 | 514 | 506 |
Bausch + Lomb | Devices | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,572 | 1,595 | 1,313 |
Bausch + Lomb | OTC | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,453 | 1,389 | 1,311 |
Bausch + Lomb | Branded and Other Generics | |||
Revenue from External Customer [Line Items] | |||
Revenues | 240 | 239 | 254 |
Bausch + Lomb | Other revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 22 | $ 28 | $ 31 |
Revenues | Product Concentration Risk | Customer, Top Ten Products | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage | 49% | 43% | 41% |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographic Information, Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues and long-lived assets by geographic region | |||
Revenues | $ 8,124 | $ 8,434 | $ 8,027 |
U.S. and Puerto Rico | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 4,836 | 4,887 | 4,791 |
China | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 413 | 490 | 341 |
Canada | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 351 | 343 | 331 |
Poland | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 278 | 280 | 238 |
Mexico | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 276 | 256 | 225 |
Japan | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 200 | 230 | 226 |
France | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 203 | 208 | 179 |
Russia | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 181 | 160 | 137 |
Germany | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 147 | 154 | 144 |
United Kingdom | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 115 | 116 | 86 |
Spain | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 84 | 88 | 78 |
South Korea | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 77 | 76 | 68 |
Italy | |||
Revenues and long-lived assets by geographic region | |||
Revenues | 76 | 80 | 71 |
Other | |||
Revenues and long-lived assets by geographic region | |||
Revenues | $ 887 | $ 1,066 | $ 1,112 |
SEGMENT INFORMATION - Geograp_2
SEGMENT INFORMATION - Geographical Information, Long-Lived Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues and long-lived assets by geographic region | ||
Long-lived assets | $ 1,600 | $ 1,598 |
U.S. and Puerto Rico | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 725 | 743 |
Ireland | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 363 | 336 |
Canada | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 126 | 123 |
Germany | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 89 | 87 |
Poland | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 65 | 75 |
Mexico | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 46 | 45 |
France | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 44 | 39 |
China | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 26 | 30 |
Serbia | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 23 | 25 |
Italy | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | 20 | 21 |
Other | ||
Revenues and long-lived assets by geographic region | ||
Long-lived assets | $ 73 | $ 74 |
SEGMENT INFORMATION - Major Cus
SEGMENT INFORMATION - Major Customers (Details) - Customer concentration - Revenues | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AmerisourceBergen Corporation | |||
Segment reporting information | |||
Concentration risk, percentage | 18% | 18% | 17% |
McKesson Corporation | |||
Segment reporting information | |||
Concentration risk, percentage | 15% | 16% | 17% |
Cardinal Health, Inc. | |||
Segment reporting information | |||
Concentration risk, percentage | 13% | 12% | 13% |
Uncategorized Items - bhc-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |