Company: BLCO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001860742-25-000004
Chunk: 540

Company: Bausch & Lomb Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 2
Chunk 540
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 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 as of December 31, 2024 and 2023:  December 31, 2024December 31, 2023 (in millions)CarryingValueLevel 1Level 2Level 3CarryingValueLevel 1Level 2Level 3Assets:        Cash equivalents$60 $50 $10 $— $44 $36 $8 $— Foreign currency exchange contracts$7 $— $7 $— $1 $— $1 $— Liabilities:Acquisition-related contingent consideration$123 $— $— $123 $44 $— $— $44 Foreign currency exchange contracts$3 $— $3 $— $4 $— $4 $— Cross-currency swaps$34 $— $34 $— $84 $— $84 $— 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 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 2024 and 2023.

F-30

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 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 December 31, 2024, 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 Consolidated Balance Sheets are as follows:(in millions)December 31, 2024December 31, 2023Other non-current liabilities$40 $90 Prepaid expenses and other current assets$6 $6 Net fair value$34 $84 The following table presents the effect of