Company: BLCO
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001860742-25-000023
Chunk: 74

Company: Bausch & Lomb Corp
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 74
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 between periods as a result of product mix, volume, royalties, changes in foreign currency and inflation. Cost of goods sold excludes the amortization and impairments of intangible assets. Cost of goods sold was $509 million and $464 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $45 million, or 10%. The increase was primarily driven by: (i) higher volumes and (ii) the unfavorable impact of foreign currencies.Contribution (product sales revenue less cost of goods sold, exclusive of amortization and impairments of intangible assets) increased by $40 million, primarily driven by: (i) product mix and (ii) the favorable impact of foreign currencies, partially offset by the impact of the voluntary recall of certain enVista IOL products.Cost of goods sold as a percentage of Product sales was 39.9% and 38.9% for the three months ended September 30, 2025 and 2024, respectively. The unfavorable change was primarily driven by product mix.Selling, General and Administrative ExpensesSelling, general and administrative (“SG&A”) expenses primarily include: employee compensation associated with sales and marketing, finance, legal, information technology, human resources and other administrative functions; certain outside legal fees and consultancy costs; product promotion expenses; overhead and occupancy costs; depreciation of corporate facilities and equipment; and other general and administrative costs.SG&A expenses were $528 million and $511 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $17 million, or 3%. The increase was primarily attributable to: (i) higher selling costs within our Pharmaceuticals segment, primarily attributable to MIEBO® and our consumer eye care business and (ii) higher general and administrative costs.Research and Development ExpensesIncluded in R&D are costs related to our product development and quality assurance programs. Expenses related to product development include: employee compensation costs; overhead and occupancy costs; depreciation of research and development facilities and equipment; clinical trial costs; clinical manufacturing and scale-up costs; and other third-party 

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development costs. Quality assurance are the costs incurred to meet evolving customer and regulatory standards and include: employee compensation costs; overhead and occupancy costs; amortization of software; and other third-party costs.R&D expenses were $95 million and $84 million for the three months ended September 30, 2025 and 2024, respectively, an increase of $11 million,