Company: BSX
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000885725-25-000011
Chunk: 181

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 181
---
108

Non-qualified options issued to employees are generally granted with an exercise price equal to the market price of our stock on the grant date, vest over a three or four-year service period and have a ten-year contractual life. In the case of qualified options, if the recipient owns more than ten percent of the voting power of all classes of stock, the option granted will be at an exercise price of 110 percent of the fair market value of our common stock on the date of grant and will expire over a period not to exceed five years. Non-vested stock awards, including restricted stock awards (RSAs) and RSUs issued to employees are generally granted with an exercise price of zero and typically vest in four equal annual installments. These awards represent our commitment to issue shares to recipients after the vesting period. Upon each vesting date, such awards are no longer subject to risk of forfeiture and we issue shares of our common stock to the recipient.The following presents the impact of stock-based compensation on our consolidated statements of operations: Year Ended December 31,(in millions, except per share data)202420232022Cost of products sold$14 $12 $12 Selling, general and administrative expenses206 179 167 Research and development expenses46 42 41  266 233 220 Income tax (benefit) expense(39)(35)(32) $227 $198 $188 Net impact per common share - basic$0.15 $0.14 $0.13 Net impact per common share - assuming dilution$0.15 $0.14 $0.13 Stock OptionsWe use the Black-Scholes option-pricing model to calculate the grant-date fair value of stock options granted to employees under our stock incentive plans. We calculated the fair value for options granted using the following estimated weighted-average assumptions: Year Ended December 31, 202420232022Options granted (in thousands)2,443 2,934 3,287 Weighted-average exercise price$65.00 $47.43 $44.02 Weighted-average grant-date fair value$23.30 $16.83 $13.64 Black-Scholes Assumptions   Expected volatility24 %26 %28 %Expected term (in years, weighted)6.36.36.1Risk-free interest rate4.16%-4.20%3.62