Company: BLCO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001860742-25-000004
Chunk: 371

Company: Bausch & Lomb Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 1A
Chunk 371
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 or less when purchased, and are reflected in the Consolidated Balance Sheets at carrying value, which approximates fair value due to their short-term nature.There were no transfers into or out of Level 3 during 2024 and 2023.

F-30

Cross-currency SwapsThe Company uses cross-currency swaps to mitigate fluctuation in the value of a portion of its euro-denominated net investment in its Consolidated Financial Statements from fluctuation in exchange rates. The euro-denominated net investment being hedged is the Company’s investment in certain euro-denominated subsidiaries. As of December 31, 2024, these swaps had an aggregate notional value of $1,000 million.The assets and liabilities associated with the Company's cross-currency swaps as included in the Consolidated Balance Sheets are as follows:(in millions)December 31, 2024December 31, 2023Other non-current liabilities$40 $90 Prepaid expenses and other current assets$6 $6 Net fair value$34 $84 The following table presents the effect of hedging instruments on the Consolidated Statements of Comprehensive Loss and the Consolidated Statements of Operations as of December 31, 2024 and 2023:(in millions)20242023Gain (loss) recognized in Other comprehensive loss$50 $(45)Gain excluded from assessment of hedge effectiveness$13 $13 Location of gain of excluded componentInterest ExpenseInterest ExpenseNo portion of the cross-currency swaps were ineffective for 2024 and 2023. For each of the years 2024 and 2023, the Company received $13 million in interest settlements, which are reported as investing activities in the Consolidated Statements of Cash Flows.Foreign Currency Exchange ContractsThe Company enters into foreign currency exchange contracts to economically hedge the foreign exchange exposure on certain of the Company's intercompany balances. As of December 31, 2024, these contracts had an aggregate notional amount of $332 million.The assets and liabilities associated with the Company’s foreign exchange contracts as included in the Consolidated Balance Sheets December 31, 2024 and December 31, 2023 are as follows:(in millions)December 31,2024December 31,2023Accrued and other current liabilities$(3)$(4)Prepaid expenses and other current assets$7 $1 Net fair value$4 $(3)The following table presents the effect of the Company’s foreign exchange contracts on