Company: BSX
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000885725-25-000011
Chunk: 170

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 170
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 Assets and Prepaid on Intercompany Profit$3,807 $4,022 As of December 31, 2024 and 2023, we had U.S. federal and state tax net operating loss carryforwards and tax credits, the tax effect of which was $558 million and $540 million, respectively. In addition, we had foreign tax net operating loss carryforwards and tax credits, the tax effect of which was $216 million as of December 31, 2024, and $203 million as of December 31, 2023. These tax attributes expire periodically beginning in 2025.After consideration of all positive and negative evidence, we believe that it is more likely than not that a portion of our deferred tax assets will not be realized. As a result, we recorded a valuation allowance of $1.268 billion as of December 31, 2024, and $1.220 billion as of December 31, 2023. The increase in the valuation allowance as of December 31, 2024, compared to 

103

December 31, 2023, is primarily due to maintaining valuation allowances on certain foreign deferred tax assets which increased during the year and acquisition of deferred tax assets which required a valuation allowance, offset by release of valuation allowances on certain U.S. state net operating losses. The income tax impact of the unrealized gain or loss component of other comprehensive income and stockholders' equity was a charge of $30 million in 2024, a benefit of $39 million in 2023 and a charge of $56 million in 2022. We obtain tax incentive rates through the Free Trade Zone Regime offered in Costa Rica which allows 100 percent exemption from income tax in the first eight years of operations, which will expire in 2027, and 50 percent exemption in the following four years, which will expire in 2031. This tax incentive resulted in income tax savings of $316 million, $212 million and $162 million in 2024, 2023 and 2022, respectively, and impacted Net income (loss) per common share - diluted by $0.21, $0.15 and $0.11 for 2024, 2023 and 2022, respectively. We also benefit from tax rate incentives in Puerto Rico through a Grant of Industrial Tax Exemption which will expire in 2034, with an option to extend for an additional 15 years. This incentive resulted in income tax savings of