Company: BLCO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001860742-25-000004
Chunk: 532

Company: Bausch & Lomb Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 2
Chunk 532
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 the acquisition method of accounting. The total aggregate acquisition consideration was approximately $188 million and is calculated as follows:(in millions)Cash consideration paid$99 Estimated fair value of contingent consideration89 Aggregate purchase consideration$188 Contingent consideration included as part of the aggregate purchase consideration relates to potential future milestone obligations, including: (i) regulatory approval milestones, ranging from $50 million and up to an aggregate of $145 million, depending on the timing of regulatory approval and (ii) sales-based milestones, ranging from $75 million and up to an aggregate of $375 million, related to the achievement of annual net sales targets.  The estimated fair value of the contingent consideration recognized on the acquisition date, related to the above noted potential future milestone obligations, was $89 million, of which $11 million was recorded as a current liability. The estimated fair value of the contingent consideration  was estimated by using the inputs disclosed in Note 5, “FAIR VALUE MEASUREMENTS”. The Company reassesses its acquisition-related contingent consideration liabilities each quarter for changes in fair value.The following table summarizes the estimated fair values of the assets acquired and liabilities assumed related to the acquisition of Elios Vision, as of the acquisition date:(in millions)Intangible assets, net$177 Trade receivables, net2 Inventories, net4 Property, plant and equipment, net7 Other non-current assets1 Accrued and other current liabilities(7)Other non-current liabilities(23)Total identifiable net assets161 Goodwill27 Total fair value of consideration transferred$188 The fair value of the identifiable intangible assets is determined primarily using the “income approach,” which requires a forecast of the expected future cash flows (including revenue growth rates, cost of goods sold, operating expenses and discount rates). The intangible assets acquired related to the acquisition of Elios Vision, as well as their fair values and estimated useful life consist of the following:

F-25

(in millions)Fair ValueEstimated Useful Life (In Years)Acquired in-process research and development intangible asset$95 N/AProduct brands63 13Corporate brands17 10Other2 9Total Intangible assets, net$177 The assets acquired and liabilities assumed are included within the Company's Surgical segment. Goodwill associated with the Elios Vision acquisition represents deferred taxes, as well as an acquired workforce and potential future synergies. Goodwill associated with the Elios Vision acquisition is not deductible for