Company: BSX
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000885725-25-000011
Chunk: 158

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 158
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 not subject to material gains and losses from the licensing arrangement. 

92

The recurring Level 3 fair value measurements of our licensing arrangements recognized within our consolidated balance sheets as of December 31, 2024 include the following significant unobservable inputs:Licensing ArrangementsFair Value as of December 31, 2024Valuation TechniqueUnobservable InputRangeWeighted Average(1)Financial Asset$24 millionDiscounted Cash FlowDiscount Rate15%15%Projected Year of Payment2025-20252025Financial Liability$33 millionDiscounted Cash FlowDiscount Rate12%-15%13%Projected Year of Payment2025-20262025(1) Unobservable inputs relate to a single financial asset and liability. As such, unobservable inputs were not weighted by the relative fair value of the instruments. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.Changes in the fair value of our licensing arrangements' financial asset were as follows:(in millions)Balance as of December 31, 2022$127 Proceeds from royalty rights(61)Fair value adjustment (expense) benefit11 Balance as of December 31, 2023$77 Proceeds from royalty rights(40)Fair value adjustment (expense) benefit(13)Balance as of December 31, 2024$24 Changes in the fair value of our licensing arrangements' financial liability were as follows:(in millions)Balance as of December 31, 2022$159 Payments for royalty rights(80)Fair value adjustment expense (benefit)12 Balance as of December 31, 2023$90 Payments for royalty rights(45)Fair value adjustment expense (benefit)(12)Balance as of December 31, 2024$33 Non-Recurring Fair Value MeasurementsWe hold certain assets and liabilities that are measured at fair value on a non-recurring basis in periods after initial recognition. The fair value of a measurement alternative investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Refer to Note B – Acquisitions and Strategic Investments for a discussion of our strategic investments and Note C – Goodwill and Other Intangible Assets for a discussion of the fair values of our intangible assets including goodwill.The fair value of our outstanding debt obligations, excluding finance leases, was $10.330 billion as of December 31, 2024 and $8.735 billion as