Company: BLCO
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001860742-25-000008
Chunk: 20

Company: Bausch & Lomb Corp
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 20
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 inputs that are supported by little or no market activity and that are financial instruments whose values are determined using discounted cash flow methodologies, pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

11

Assets and Liabilities Measured at Fair Value on a Recurring BasisThe following fair value hierarchy table presents the components and classification of the Company’s financial assets and liabilities measured at fair value on a recurring basis:  March 31, 2025December 31, 2024 (in millions)CarryingValueLevel 1Level 2Level 3CarryingValueLevel 1Level 2Level 3Assets:        Cash equivalents$17 $7 $10 $— $60 $50 $10 $— Foreign currency exchange contracts$1 $— $1 $— $7 $— $7 $— Liabilities:Acquisition-related contingent consideration$114 $— $— $114 $123 $— $— $123 Foreign currency exchange contracts$1 $— $1 $— $3 $— $3 $— Cross-currency swaps$73 $— $73 $— $34 $— $34 $— Cash equivalents consist of highly liquid investments, primarily money market funds, with maturities of three months or less when purchased, and are reflected in the Condensed 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 the three months ended March 31, 2025 and 2024.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 Condensed 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 March 31, 2025, 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