Company: BLCO
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001860742-25-000023
Chunk: 20

Company: Bausch & Lomb Corp
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 20
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 one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.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:  September 30, 2025December 31, 2024 (in millions)CarryingValueLevel 1Level 2Level 3CarryingValueLevel 1Level 2Level 3Assets:        Cash equivalents$40 $36 $4 $— $60 $50 $10 $— Foreign currency exchange contracts$2 $— $2 $— $7 $— $7 $— Liabilities:Acquisition-related contingent consideration$73 $— $— $73 $123 $— $— $123 Foreign currency exchange contracts$1 $— $1 $— $3 $— $3 $— Cross-currency swaps$154 $— $154 $— $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 nine months ended September 30, 2025 and 2024.

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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 September 30, 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 Condensed Consolidated Balance Sheets are as follows:(in millions)September 30,2025December 31,2024Other non-current liabilities$156 $40 Prepaid expenses and other current assets$2 $6 Net fair value$154 $34 The following table presents the effect of