Company: BLCO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001860742-25-000004
Chunk: 129

Company: Bausch & Lomb Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7A
Chunk 129
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%2.57 %Expected rate of return on plan assets6.00 %6.00 %4.50 %— — — Rate of compensation increase— — — — — — Interest crediting rate4.75 %4.75 %4.75 %Non-U.S. Plans:Discount rate3.60 %3.83 %1.44 %Expected rate of return on plan assets4.37 %4.10 %2.70 %Rate of compensation increase2.94 %2.92 %2.55 % Pension Benefit PlansU.S. Postretirement Benefit Plan202420232022202420232022For Determining Benefit ObligationU.S. Plans:Discount rate5.53 %5.11 %5.41 %5.44 %5.08 %5.39 %Rate of compensation increase— — — — — — Interest crediting rate4.75 %4.75 %4.75 %Non-U.S. Plans:Discount rate3.47 %3.60 %3.83 %Rate of compensation increase3.00 %2.94 %2.92 %The expected long-term rate of return on plan assets was developed based on a capital markets model that uses expected asset class returns, variance and correlation assumptions. The expected asset class returns were developed starting with current Treasury (for the U.S. pension plan) or Eurozone (for the Ireland pension plans) government yields and then adding corporate bond spreads and equity risk premiums to develop the return expectations for each asset class. The expected asset class returns are forward-looking. The variance and correlation assumptions are also forward-looking. They take into account historical relationships but are adjusted to reflect expected capital market trends.The discount rate used to determine benefit obligations represents the current rate at which the benefit plan liabilities could be effectively settled considering the timing of expected payments for plan participants.

F-42

The 2025 expected rate of return for the U.S. pension benefit plan will be 5.50%. The 2025 expected rate of return for the Ireland pension benefit plans will be 4.50%.Pension Benefit Plans AssetsPension benefit plan assets are invested in several asset categories. The following presents the actual asset allocation as of December 31, 2024 and 2023:20242023U