Bausch+Lomb Results Presentation Deck
Non-GAAP Appendix
Organic Revenue Growth/Change and Organic Growth/Change
Organic revenue growth/change, a non-GAAP ratio, is defined as a change on a period-
over-period basis in revenues on a constant currency basis (if applicable) excluding the
impact of recent acquisitions, divestitures and discontinuations (if applicable). Organic
revenue growth/change is a change in GAAP Revenue (its most directly comparable
GAAP financial measure) adjusted for certain items, as further described below, of
businesses that have been owned for one or more years. Similarly, organic revenue, a
non-GAAP measure, is GAAP revenue (its most directly comparable GAAP financial
measure) adjusted for these same items. Organic revenue growth/change is impacted by
changes in product volumes and price. The price component is made up of two key
vers: (i) changes in product gross selling price and (ii) changes in sales deductions.
The Company uses organic revenue growth/change and organic revenue to assess the
performance of its reportable segments, and the Company in total, without the impact of
foreign currency exchange fluctuations and recent acquisitions, divestitures and product
discontinuations. The Company believes that such measures are useful to investors as
they provide a supplemental period-to-period comparison.
Organic revenue growth/change and organic revenue reflect adjustments for: (i) the
impact of period-over-period changes in foreign currency exchange rates on revenues
and (ii) the revenues associated with acquisitions, divestitures and discontinuations of
businesses divested and/or discontinued. These adjustments are determined as follows:
Foreign currency exchange rates: Although changes in foreign currency exchange
rates are part of our business, they are not within management's control. Changes in
foreign currency exchange rates, however, can mask positive or negative trends in
business. The impact of changes in foreign currency exchange rates is
determined as the difference in the current period reported revenues at their current
period currency exchange rates and the current period reported revenues revalued
using the monthly average currency exchange rates during the comparable prior
period.
Acquisitions, divestitures and discontinuations: In order to present period-over-
period organic revenue (non-GAAP) growth/change on a comparable basis, revenues
associated with acquisitions, divestitures and discontinuations are adjusted to include
only revenues from those businesses and assets owned during both periods.
Accordingly, organic revenue and organic growth/change exclude from the current
period, revenues attributable to each acquisition for twelve months subsequent to the
day of acquisition, as there are no revenues from those businesses and assets
included in the comparable prior period. Organic revenue and organic growth/change
exclude from the prior period, all revenues attributable to each divestiture and
discontinuance during the twelve months prior to the day of divestiture or
discontinuance, as there are no revenues from those businesses and assets included
in the comparable current period.
Constant Currency
Changes in the relative values of non-U.S. currencies to the U.S. dollar may affect the
Company's financial results and financial position. To assist investors in evaluating the
Company's performance, we have adjusted for foreign currency effects. Constant
currency impact is determined by comparing 2022 reported amounts adjusted to exclude
currency impact, calculated using 2021 monthly average exchange rates, to the actual
2021 reported amounts.
46View entire presentation