Company: BLCO
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001860742-25-000008
Chunk: 62

Company: Bausch & Lomb Corp
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 62
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 decrease in net realized pricing of $22 million and (ii) the unfavorable impact of foreign currencies of $2 million.Surgical Segment RevenueThe Surgical segment revenue was $214 million and $197 million for the three months ended March 31, 2025 and 2024, respectively, an increase of $17 million, or 9%. The increase was primarily driven by: (i) increased demand of implantables, driven by our premium IOL portfolio, (ii) increased demand of consumables and (iii) increased equipment sales. This increase included: (i) an increase in volumes of $14 million, (ii) incremental sales from acquisitions of $6 million and (iii) an increase in net realized pricing of $1 million, partially offset by the unfavorable effect of foreign currencies of $4 million.Cash Discounts and Allowances, Chargebacks and Distribution FeesAs is customary in the health care industry, gross product sales are subject to a variety of deductions in arriving at net product sales. Provisions for these deductions are recognized concurrently with the recognition of gross product sales. These provisions include cash discounts and allowances, chargebacks and distribution fees, which are paid or 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 March 31, 2025 and 2024 were as follows:

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Three Months Ended March 31,20252024(in millions)AmountPct.AmountPct.Gross product sales$1,866 100.0 %$1,727 100.0 %Provisions to reduce gross product sales to net product salesDiscounts and allowances106 5.70 %99 5.70 %Returns11 0.60 %24 1.40 %Rebates445 23.90 %333 19.30 %Chargebacks146 7.80 %160 9.30