Company: BSX
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000885725-25-000041
Chunk: 117

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 expense (benefit)0 Contingent consideration payments(62)Balance as of June 30, 2025$367 The maximum amount we could be required to pay for certain contingent consideration is not determinable as it is uncapped and based on a percent of certain sales. As of June 30, 2025, the fair value of such uncapped contingent consideration is estimated at $106 million. As of June 30, 2025, the maximum amount that we could be required to pay under our other capped contingent consideration arrangements (undiscounted) is approximately $671 million. Refer to Note B – Acquisitions and Strategic Investments to our audited financial statements contained in Item 8. Financial Statements and Supplementary Data of our most recent Annual Report on Form 10-K for additional information.

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The 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 June 30, 2025Valuation TechniqueUnobservable InputRangeWeighted Average(1)Revenue-based Payments and Commercialization Milestones$129 millionDiscounted Cash FlowDiscount Rate6%-15%9%Probability of Payment30%-100%95%Projected Year of Payment2026-20312028Clinical-based, Regulatory and Other Milestones$238 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 June 30, 2025. Strategic InvestmentsThe aggregate carrying amount of our strategic investments was comprised of the following:As of(in millions)June 30, 2025December 31, 2024Equity method investments$334 $278 Measurement alternative investments(1, 2)292 277 $626 $555 (1) Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured