v3.26.1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Schedule of components and classification of financial assets and liabilities measured at fair value
The 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:
 June 30, 2026December 31, 2025
(in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Assets:        
Cash equivalents$934 $924 $10 $— $587 $574 $13 $— 
Restricted cash$13 $13 $— $— $16 $16 $— $— 
Cross-currency swaps$3 $— $3 $— $5 $— $5 $— 
Foreign currency exchange contracts$1 $— $1 $— $1 $— $1 $— 
Liabilities:     
Acquisition-related contingent consideration$293 $— $— $293 $292 $— $— $292 
Cross-currency swaps$136 $— $136 $— $158 $— $158 $— 
Foreign currency exchange contracts$2 $— $2 $— $5 $— $5 $— 
Schedule of assets and liabilities associated with derivatives, included in the consolidated balance sheets
The assets and liabilities associated with Bausch + Lomb’s cross-currency swaps as included in the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 are as follows:
(in millions)June 30,
2026		December 31,
2025
Other non-current liabilities$(136)$(158)
Prepaid expenses and other current assets$3 $5 
Net fair value$(133)$(153)
The assets and liabilities associated with the Company’s foreign exchange contracts as included in the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 are as follows:
(in millions)June 30,
2026		December 31,
2025
Accrued and other current liabilities$(2)$(5)
Prepaid expenses and other current assets$1 $1 
Net fair value$(1)$(4)
Schedule of effect of hedging instruments on financial statements
The following table presents the effect of hedging instruments on the Condensed Consolidated Statements of Comprehensive income (loss) and the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025:
Three Months Ended
June 30,		Six Months Ended June 30,
(in millions)2026202520262025
Gain (loss) recognized in Other comprehensive income (loss)$2 $(92)$22 $(128)
Gain excluded from assessment of hedge effectiveness$1 $3 $4 $6 
Location of gain of excluded componentInterest ExpenseInterest Expense
Schedule of foreign exchange contracts on the consolidated statements of operations and consolidated statements of cash flows
The following table presents the effect of the Company’s foreign exchange contracts on the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2026 and 2025:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in millions)2026202520262025
Gain (loss) related to changes in fair value$1 $(4)$2 $(9)
Loss related to settlements$(6)$(11)$(11)$(13)
Schedule of reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs (Level 3)
The following table presents a reconciliation of contingent consideration obligations measured on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2026 and 2025:
June 30,
(in millions)20262025
Balance, beginning of period$292 $359 
Adjustments to Acquisition-related contingent consideration:
Accretion for the time value of money$12 $14 
Fair value adjustments due to changes in estimates of future payments6 (54)
Acquisition-related contingent consideration (Note 4)18 (40)
Additions2 — 
Payments/Settlements(19)(16)
Balance, end of period293 303 
Current portion included in Accrued and other current liabilities83 39 
Non-current portion included in Other non-current liabilities$210 $264