Company: BLCO
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001860742-25-000023
Chunk: 21

Company: Bausch & Lomb Corp
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 21
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 hedging instruments on the Condensed Consolidated Statements of Comprehensive  (Loss) Income and the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024:Three Months EndedSeptember 30,Nine Months Ended September 30,(in millions)2025202420252024Gain (loss) recognized in Other comprehensive (loss) income$12 $(33)$(116)$(7)Gain excluded from assessment of hedge effectiveness$2 $3 $8 $10 Location of gain of excluded componentInterest expenseInterest ExpenseNo portion of the cross-currency swaps were ineffective for the nine months ended September 30, 2025 and 2024. The Company received $12 million and $13 million in interest settlements for the nine months ended September 30, 2025 and 2024, respectively, which are reported as investing activities in the Condensed 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 September 30, 2025, these contracts had an aggregate notional amount of $288 million.The assets and liabilities associated with the Company’s foreign exchange contracts as included in the Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 are as follows:(in millions)September 30,2025December 31,2024Accrued and other current liabilities$(1)$(3)Prepaid expenses and other current assets$2 $7 Net fair value$1 $4 The following table presents the effect of the Company’s foreign exchange contracts on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2025 and 2024:Three Months EndedSeptember 30,Nine Months Ended September 30,(in millions)2025202420252024Gain (loss) related to changes in fair value$4 $(3)$(3)$— Loss related to settlements$(3)$(1)$(10)$— Acquisition-related Contingent Consideration ObligationsAcquisition-related contingent consideration, which primarily consists of potential milestone payments, is recorded in the Condensed Consolidated Balance Sheets at its acquisition date estimated fair value, in accordance with the acquisition 

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method of accounting. The