Company: BLCO
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001860742-25-000023
Chunk: 73

Company: Bausch & Lomb Corp
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 73
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 credited to direct customers, as well as rebates and returns, which can be paid or credited to direct and indirect customers. Provision balances relating to amounts payable to direct customers are netted against trade receivables and balances relating to indirect customers are included in accrued liabilities.We actively manage these offerings, focusing on the incremental costs of our patient assistance programs, the level of discounting to non-retail accounts and identifying opportunities to minimize product returns. We also concentrate on managing our relationships with our payors and wholesalers, reviewing the ranges of our offerings and being disciplined as to the amount and type of incentives we negotiate. Provisions recorded to reduce gross product sales to net product sales and revenues for the three months ended September 30, 2025 and 2024 were as follows:

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Three Months Ended September 30,20252024(in millions)AmountPct.AmountPct.Gross product sales$2,114 100.0 %$1,853 100.0 %Provisions to reduce gross product sales to net product salesDiscounts and allowances121 5.70 %107 5.80 %Returns21 1.00 %26 1.40 %Rebates514 24.30 %358 19.30 %Chargebacks156 7.40 %150 8.10 %Distribution fees25 1.20 %20 1.10 %Total provisions837 39.60 %661 35.70 %Net product sales1,277 60.40 %1,192 64.30 %Other revenues4 4 Revenues$1,281 $1,196 Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 39.6% and 35.7% for the three months ended September 30, 2025 and 2024, respectively, an increase of 3.9% percentage points, and is primarily attributable to the increase in rebates from our dry eye portfolio, including XIIDRA® and MIEBO®.Operating ExpensesCost of Goods Sold (exclusive of amortization and impairments of intangible assets)Cost of goods sold primarily includes: manufacturing and packaging; the cost of products we purchase from third parties; royalty payments we make to third parties; depreciation of manufacturing facilities and equipment; and lower of cost or market adjustments to inventories. Cost of goods sold typically vary