Company: BLCO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001860742-25-000004
Chunk: 16

Company: Bausch & Lomb Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 16
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 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 2024 and 2023 were as follows:

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Years Ended December 31,20242023(in millions)AmountPct.AmountPct.Gross product sales$7,492 100.0 %$5,899 100.0 %Provisions to reduce gross product sales to net product salesDiscounts and allowances420 5.60 %368 6.20 %Returns98 1.30 %84 1.40 %Rebates1,487 19.90 %729 12.40 %Chargebacks631 8.40 %559 9.50 %Distribution fees82 1.10 %28 0.50 %Total provisions2,718 36.30 %1,768 30.00 %Net product sales4,774 63.70 %4,131 70.00 %Other revenues17 15 Revenues$4,791 $4,146 Cash discounts and allowances, returns, rebates, chargebacks and distribution fees as a percentage of gross product sales were 36.3% and 30.0% for 2024 and 2023, respectively, an increase of 6.3% percentage points, and is primarily attributable to the increase in rebates from 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 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 $1,868 million and $1,640 million for 2024 and 2023, respectively, an increase of $228 million, or 14%. The increase was primarily driven by: (i) higher volumes and (ii) costs of sales associated with acquisitions entered into in 2023