Company: BSX
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000885725-25-000050
Chunk: 49

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 49
---
 recurring Level 3 fair value measurements of our contingent consideration liability that we expect to be required to settle include the following significant unobservable inputs:Contingent Consideration LiabilityFair Value as of September 30, 2025Valuation TechniqueUnobservable InputRangeWeighted Average(1)Revenue-based Payments and Commercialization Milestones$136 millionDiscounted Cash FlowDiscount Rate6%-15%8%Probability of Payment15%-100%97%Projected Year of Payment2026-20322028Clinical-based, Regulatory and Other Milestones$241 millionDiscounted Cash FlowDiscount Rate4%-5%5%Probability of Payment74%-86%80%Projected Year of Payment2026-20292028(1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.Projected contingent payment amounts related to our clinical, regulatory and revenue-based payments and commercialization milestones are discounted back to the current period, primarily using a discounted cash flow model. Significant increases or decreases in projected revenues, probabilities of payment, discount rates or the time until payment is made would have resulted in a significantly lower or higher fair value measurement as of September 30, 2025. Strategic InvestmentsThe aggregate carrying amount of our strategic investments was comprised of the following:As of(in millions)September 30, 2025December 31, 2024Equity method investments$334 $278 Measurement alternative investments(1, 2)310 277 $643 $555 (1) Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, recognized in Other, net within our accompanying unaudited consolidated statements of operations.(2) Includes publicly-held equity securities measured at fair value with changes in fair value recognized in Other, net within our accompanying unaudited consolidated statements of operations.These investments are classified as Other long-term assets within our accompanying unaudited consolidated balance sheets, in accordance with GAAP and our accounting policies. 

As of September 30, 2025, the cost of our aggregated equity method investments exceeded our share of the underlying equity in net assets by $375 million, which represents amortizable intangible assets, in-process research and development (IPR&D), goodwill and deferred tax liabilities. 

13