Company: BLCO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001860742-25-000004
Chunk: 565

Company: Bausch & Lomb Corp
Filing Date: 2025-02-19
Form: 10-K
Item: Item 2
Chunk 565
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-Scholes option-pricing model with the following weighted-average assumptions:202420232022Expected stock option life (years)3.03.03.0Expected volatility35.1 %35.3 %31.5 %Risk-free interest rate4.5 %4.6 %3.1 %Expected dividend yield— %— %— %The expected stock option life was determined based on historical exercise and forfeiture patterns associated with historical stock options granted to Bausch + Lomb employees under BHC’s long-term incentive plan. The expected volatility was determined based on implied and historical volatility of Bausch + Lomb’s selected peer companies. Bausch + Lomb will continue to leverage BHC’s historical stock option experience and peer company data until it has sufficient experience with its own equity awards and market data. The risk-free interest rate was determined based on the rate at the time of grant for zero-coupon U.S. government bonds with maturity dates equal to the expected life of the stock option. The expected dividend yield was determined based on the stock option’s exercise price and expected Bausch + Lomb annual dividend rate at the time of grant. The Black-Scholes option-pricing model used by the Company to calculate stock option values was developed to estimate the fair value of freely tradable, fully transferable stock options without vesting restrictions, which significantly differ from Bausch + Lomb's stock option awards. This model also requires highly subjective assumptions, including future stock price volatility and expected time until exercise, which greatly affect the calculated values.The following table summarizes stock option activity under the Plan during 2024: (in millions, except per share amounts)OptionsWeighted-AverageExercisePrice Per ShareWeighted-AverageRemainingContractualTerm(Years)AggregateIntrinsicValueOutstanding, January 1, 20248.0$18.07   Granted1.3 $16.96   Exercised— $17.96   Expired or forfeited(0.3)$17.99   Outstanding, December 31, 20249.0 $17.90 6.9$2.3 Vested and expected to vest, December 31, 20248.4 $17.90 6.3$2.1 Vested and exercisable, December 31, 20241.1 $18.15 7.3$0.1 The weighted-average fair values of