Financial Analysis

FINANCING ARRANGEMENTS Principal amounts of debt obligations and principal amounts of debt obligations net of issuance costs consist of the following: June 30, 2026 December 31, 2025 (in millions) Maturity Principal Amount Net of Premiums, Discounts and Issuance Costs Principal Amount Net of Premiums, Discounts and Issuance Costs Senior Secured Credit Facilities September 2028 Term Facility September 2028 $ $ $ 489 $ 483 June 2030 Revolving Credit Facility June 2030 150 150 100 100 January 2031 Term Facility January 2031 2,313 2,282 January 2031 Refinancing Term Facility January 2031 2,795 2,763 Senior Secured Notes October 2028 Secured Notes October 2028 1,400 1,389 1,400 1,387 January 2031 Secured Notes January 2031 771 761 793 782 Other Various 12 14 12 14 Total long-term debt $ 5,128 5,077 $ 5,107 5,048 Less: Current portion of long-term debt 28 28 Non-current portion of long-term debt $ 5,049 $ 5,020 Senior Secured Credit Facilities and Notes On May 10, 2022, Bausch + Lomb entered into a credit agreement (the Original Credit Agreement), providing for a term loan of $2,500 million (the May 2027 Term Facility) and a revolving credit facility of $500 million (the May 2027 Revolving Credit Facility). On September 29, 2023, Bausch + Lomb entered into an incremental term loan facility in the form of an incremental amendment (the September 2023 Credit Facility Amendment) to the credit agreement and consisted of borrowings of $500 million in new term B loans with a five-year ter …

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SHARE-BASED COMPENSATION Bausch + Lomb Corporation 2022 Omnibus Incentive Plan Effective May 5, 2022, Bausch + Lomb established the Bausch + Lomb Corporation 2022 Omnibus Incentive Plan (the Plan) and a total of 28,000,000 common shares of Bausch + Lomb were originally authorized for issuance under the Plan. The Plan was amended and restated effective April 24, 2023 and further amended and restated on May 29, 2024, to increase the number of shares authorized for issuance (the Amended and Restated Plan), resulting in an aggregate 52,000,000 common shares of Bausch + Lomb authorized for issuance under the Amended and Restated Plan. The Amended and Restated Plan provides for the grant of various types of awards, including restricted stock units (RSUs), restricted stock, stock appreciation rights, stock options, performance-based awards and cash awards. Under the Amended and Restated Plan, the exercise price of awards, if any, is set on the grant date and may not be less than the fair market value per share on that date. Generally, stock options have a term of ten years and a three-year vesting period, subject to limited exceptions. Share-based awards granted to senior management align with the Companys focus on enhancing its revenue growth while maintaining focus on total shareholder return over the long term. The share-based awards granted under this long-term incentive program consist of time-based stock options, time-based RSUs and performance-based RSUs (PSUs). The PSUs are …

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FAIR VALUE MEASUREMENTS Fair value measurements are estimated based on valuation techniques and inputs categorized as follows: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and Level 3 Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using discounted cash flow methodologies, pricing models, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. If the inputs used to measure the financial assets and liabilities fall within more than 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 Basis The following fair value hierarchy table presents the components and classification of the Companys financial assets and liabilities measured at fair value on a recurring basis: June 30, 2026 December 31, 2025 (in millions) Carrying Value Level 1 Level 2 Level 3 Carrying Value Level 1 Level 2 Level 3 Assets: Cash equivalents $ 59 $ 50 $ 9 $ $ 62 $ 50 $ 12 $ Liabilities: Acquisition-related con …

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INTANGIBLE ASSETS AND GOODWILL Intangible Assets The major components of intangible assets consist of: June 30, 2026 December 31, 2025 (in millions) Gross Carrying Amount Accumulated Amortization and Impairments Net Carrying Amount Gross Carrying Amount Accumulated Amortization and Impairments Net Carrying Amount Finite-lived intangible assets: Product brands $ 4,386 $ (3,114) $ 1,272 $ 4,441 $ (3,064) $ 1,377 Corporate brands 103 (31) 72 102 (26) 76 Product rights/patents 998 (988) 10 999 (988) 11 Other 87 (70) 17 87 (68) 19 Total finite-lived intangible assets 5,574 (4,203) 1,371 5,629 (4,146) 1,483 Acquired in-process research and development intangible asset 100 100 100 100 B&L Trademark 1,698 1,698 1,698 1,698 $ 7,372 $ (4,203) $ 3,169 $ 7,427 $ (4,146) $ 3,281 Long-lived assets with finite lives are tested for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Impairment charges associated with these assets are included in Other expense, net in the Condensed Consolidated Statements of Operations. Bausch + Lomb continues to monitor the recoverability of its finite-lived intangible assets and tests the intangible assets for impairment if indicators of impairment are present. Asset impairments during the six months ended June 30, 2026 were approximately $9 million related to a change in a product's future forecasted revenue. There were no asset impairments during the six months ended June 30, 2025 …

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"INCOME TAXES For interim financial statement purposes, U.S. GAAP income tax expense/benefit related to ordinary income is determined by applying an estimated annual effective income tax rate against a companys ordinary income, subject to certain limitations on the benefit of losses. Income tax expense/benefit related to items not characterized as ordinary income is recognized as a discrete item when incurred. The estimation of Bausch + Lombs income tax provision requires the use of management forecasts and other estimates, application of statutory income tax rates and an evaluation of valuation allowances. The Companys estimated annual effective income tax rate may be revised, if necessary, in each interim period. Provision for income taxes for the six months ended June 30, 2026 was $5 million. The difference between the statutory tax rate and the effective tax rate is primarily attributable to jurisdictional mix of earnings and the discrete tax effects of: (a) a reduction of deferred tax assets resulting from a third-party sale of Intellectual Property (""IP""), (b) the tax effects of acquired tax intangibles and net operating losses, (c) a benefit related to a favorable settlement in a foreign jurisdiction, (d) the filing of certain tax returns and (e) a one-time tax assessment of a foreign subsidiary. Benefit from income taxes for the six months ended June 30, 2025 was $58 million. The difference between the statutory tax rate and the effective tax rate was primarily attr …

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LEGAL PROCEEDINGS Bausch + Lomb is involved, and, from time to time, may become involved, in various legal and administrative proceedings, which include or may include product liability, intellectual property, commercial, tax, antitrust, governmental and regulatory investigations, related private litigation and ordinary course employment-related issues. From time to time, Bausch + Lomb also initiates or may initiate actions or file counterclaims. Bausch + Lomb could be subject to counterclaims or other suits in response to actions it may initiate. Bausch + Lomb believes that the prosecution of these actions and counterclaims is important to preserve and protect Bausch + Lomb, its reputation and its assets. On a quarterly basis, Bausch + Lomb evaluates developments in legal proceedings, potential settlements and other matters that could increase or decrease the amount of the liability accrued. As of June 30, 2026, Bausch + Lombs Condensed Consolidated Balance Sheets includes accrued current loss contingencies of $13 million related to matters which are both probable and reasonably estimable. For all other matters, unless otherwise indicated, Bausch + Lomb cannot reasonably predict the outcome of these legal proceedings, nor can it estimate the amount of loss, or range of loss, if any, that may result from these proceedings. An adverse outcome in certain of these proceedings could have a material adverse effect on Bausch + Lombs business, financial condition and results of oper …

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Adoption of New Accounting Standards In July 2025, the Financial Accounting Standards Board (the FASB) issued Accounting Standards Update (ASU) 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides guidance for estimating credit losses under the current expected credit losses (CECL) model for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification 606. As of January 1, 2026, the Company has adopted this ASU on a prospective-basis, and it did not have a material impact on its consolidated financial statements and related disclosures. Recently Issued Accounting Standards, Not Adopted as of June 30, 2026 In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of specified information about certain costs and expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting this ASU on its disclosures. In September 2025, the FASB issued ASU 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-U …

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RELATED PARTIES Prior to May 10, 2022, Bausch + Lomb had been managed and operated in the ordinary course of business with other affiliates of BHC. On May 10, 2022, Bausch + Lomb became an independent publicly traded company. As of July 22, 2026, BHC directly or indirectly held 310,449,643 common shares of Bausch + Lomb, which represented approximately 87% of the issued and outstanding common shares of Bausch + Lomb. Additionally, there have been no sales made to related parties for all periods presented. Accounts Receivable and Payable Certain transactions between Bausch + Lomb and BHC and affiliate businesses are cash-settled on a current basis and, therefore, are reflected in the Condensed Consolidated Balance Sheets. Amounts payable to BHC and its affiliates related to related party transactions were $7 million and $14 million as of June 30, 2026 and December 31, 2025, respectively, and are included within Accounts payable in the Condensed Consolidated Balance Sheets. Amounts due from BHC and its affiliates related to related party transactions were $8 million as of both June 30, 2026 and December 31, 2025, of which $1 million are included within Prepaid expenses and other current assets and $7 million are included within Other non-current assets on the Condensed Consolidated Balance Sheets as of both June 30, 2026 and December 31, 2025. These amounts are inclusive of the receivables and payables associated with the separation agreements entered into in connection with th …

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REVENUE RECOGNITION Revenue Recognition The Companys revenues are primarily generated from product sales in the therapeutic areas of eye health that consist of: (i) branded prescription eye-medications and pharmaceuticals, (ii) generic and branded generic prescription eye medications and pharmaceuticals, (iii) OTC vitamin and supplement products and (iv) medical devices (contact lenses, IOLs and ophthalmic surgical equipment). Other revenues include alliance and service revenue from the licensing and co-promotion of products and contract service revenue. Contract service revenue is derived primarily from contract manufacturing for third parties and is not material. See Note 17, SEGMENT INFORMATION for the disaggregation of revenues. The Company recognizes revenue when the customer obtains control of promised goods or services and in an amount that reflects the consideration to which the Company expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, the Company applies the five-step revenue model to contracts within its scope: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Product Sales A contract with the Companys customers exists for each product sale. Where a co …

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SEGMENT INFORMATION Reportable Segments The Companys CEO, who is the Companys Chief Operating Decision Maker, manages the business through three operating segments, consistent with how the Companys CEO: (i) assesses operating performance on a regular basis, (ii) makes resource allocation decisions and (iii) designates responsibilities of his direct reports. The Company operates in the following operating segments, which also qualify as reportable segments: (i) Vision Care, (ii) Pharmaceuticals and (iii) Surgical. These segments are generally determined based on the decision-making structure of Bausch + Lomb and the grouping of similar products and services. The Vision Care segment consists of: (i) sales of contact lenses that span the spectrum of wearing modalities, including daily disposable and frequently replaced contact lenses, and (ii) sales of contact lens care products, OTC eye drops that address various conditions, including eye allergies, conjunctivitis, dry eye and redness relief, and eye vitamin and mineral supplements. The Pharmaceuticals segment consists of sales of a broad line of proprietary and generic pharmaceutical products for post-operative treatments and the treatment of a number of eye conditions, such as glaucoma, eye inflammation, ocular hypertension, dry eyes and retinal diseases. The Surgical segment consists of sales of medical device equipment, consumables and technologies for the treatment of cataracts, corneal, vitreous, retinal and refractive ey …

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SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited financial statements for all periods presented are referred to as Condensed Consolidated Financial Statements, and have been prepared by the Company in United States (U.S.) dollars and in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial reporting and pursuant to the rules and regulations for reporting on Form 10-Q, which do not conform in all respects to the requirements of U.S. GAAP for annual financial statements. Accordingly, certain information and disclosures required by U.S. GAAP for complete Consolidated Financial Statements are not included herein. Accordingly, these notes to the unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements prepared in accordance with U.S. GAAP that are contained in the Companys Annual Report on Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC) and the Canadian Securities Administrators (the CSA) on February 18, 2026. The unaudited Condensed Consolidated Financial Statements have been prepared using accounting policies that are consistent with the policies used in preparing the Companys audited Consolidated Financial Statements for the year ended December 31, 2025. The unaudited Condensed Consolidated Financial Statements reflect all normal and recurring adjustments necessary for a fair state …

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