Company: BSX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000885725-25-000026
Chunk: 97

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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, a form of the income approach, to derive the fair value of the technology-related intangible assets and are amortizing them on a straight-line basis over their assigned estimated useful lives.Contingent ConsiderationChanges in the fair value of our contingent consideration liability during the first quarter of 2025 associated with prior period acquisitions were as follows:(in millions)Balance as of December 31, 2024$171 Amount recorded related to current year acquisitions38 Contingent consideration net expense (benefit)5 Balance as of March 31, 2025$214 There were no payments made during the first quarter of 2025. 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 March 31, 2025, the fair value of such uncapped contingent consideration is estimated at $151 million. As of March 31, 2025, the maximum amount that we could be required to pay under our other capped contingent consideration arrangements (undiscounted) is approximately $270 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.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 March 31, 2025Valuation TechniqueUnobservable InputRangeWeighted Average(1)Revenue-based Payments and Commercialization Milestones$176 millionDiscounted Cash FlowDiscount Rate6%-15%7%Probability of Payment40%-100%96%Projected Year of Payment2025-20292027Clinical-based and Other Milestones$38 millionDiscounted Cash FlowDiscount Rate5%5%Probability of Payment81%81%Projected Year of Payment20262026(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 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 March