Company: BSX
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000885725-25-000041
Chunk: 15

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 2
Chunk 15
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 the second quarter and first six months of 2025 compared to the prior year period primarily due to increased debt from the registered public offering of €1.500 billion in aggregate principal amount of euro-denominated senior notes (the 2025 Eurobonds) during the first quarter of 2025. Our average borrowing rate increased during the second quarter and first six months of 2025 compared to the prior year period. Refer to Liquidity and Capital Resources and Note E – Contractual Obligations and Commitments to our unaudited consolidated financial statements contained in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information regarding our debt obligations.

Tax Rate

The following table provides a reconciliation of our reported tax rate to the rate from continuing operations:Three Months Ended June 30,Six Months Ended June 30,2025202420252024Reported tax rate15.5 %23.4 %16.0 %20.7 %Impact of certain receipts/charges(1)2.9 %(4.6)%2.2 %(2.0)%Rate from continuing operations18.4 %18.8 %18.2 %18.7 %

(1)These receipts/charges are taxed at different rates than our rate from continuing operations.

Our reported tax rate is affected by recurring items such as the amount of our earnings subject to differing tax rates in foreign jurisdictions and the impact of certain receipts and charges that are taxed at rates that differ from our rate from continuing operations. 

In the second quarter and first six months of 2025, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relates to certain acquisition-related net charges, and discrete tax benefits primarily related to stock-based compensation.

In the second quarter of 2024, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relates to impairment charges. Additionally, there were certain discrete tax benefits primarily related to stock-based compensation as well as charges for unrecognized tax benefits. In the first six months of 2024, the principal reasons for the difference between the rate from continuing operations and our reported tax rate relates to certain acquisition-related net charges as well as impairment charges. Additionally, there were certain discrete tax benefits primarily related to stock-based compensation.

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. It includes significant changes to corporate income taxes including extending