Company: BLCO
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001860742-25-000023
Chunk: 14

Company: Bausch & Lomb Corp
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 14
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 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.

8

The following tables present the activity and ending balances of the Company’s variable consideration provisions for the nine months ended September 30, 2025 and 2024: Nine Months Ended September 30, 2025(in millions)DiscountsandAllowancesReturnsRebatesChargebacksDistributionFeesTotalReserve balance, January 1, 2025$120 $88 $497 $74 $26 $805 Current period provision346 53 1,446 451 72 2,368 Payments and credits(353)(67)(1,375)(464)(67)(2,326)Reserve balance, September 30, 2025$113 $74 $568 $61 $31 $847 Included in Rebates in the table above are cooperative advertising credits due to customers of approximately $33 million and $32 million as of September 30, 2025 and January 1, 2025, respectively, which are reflected as a reduction of Trade receivables, net in the Condensed Consolidated Balance Sheets. For the nine months ended September 30, 2025, included in Payments and credits in the table above, are payments made, or to be made, by Novartis, on behalf of the Company for Rebates, in accordance with the agreements associated with the 2023 acquisition of XIIDRA® (lifitegrast ophthalmic solution) and certain other ophthalmology assets (the “XIIDRA Acquisition”).Nine Months Ended September 30, 2024(in millions)DiscountsandAllowancesReturnsRebatesChargebacksDistributionFeesTotalReserve balance, January 1, 2024$141 $66 $226 $67 $18 $518 Current period provision315 74 1,046 468 57 1,