Company: BSX
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0000885725-25-000050
Chunk: 124

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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-Adjusted Discount Rates used in Purchase Price AllocationAmortizable intangible assets:Technology-related$447 1213%Customer relationships61 1213%$507 Contingent ConsiderationChanges in the fair value of our contingent consideration liability during the first nine months of 2025 associated with current and prior period acquisitions were as follows:(in millions)Balance as of December 31, 2024$171 Amount recorded related to current year acquisitions258 Contingent consideration net expense (benefit)11 Contingent consideration payments(62)Balance as of September 30, 2025$378 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 September 30, 2025, the fair value of such uncapped contingent consideration is estimated at $115 million. As of September 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 

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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 September 30, 2025Valuation TechniqueUnobservable InputRangeWeighted Average(1)Revenue-based Payments and Commercialization Milestones$136 millionDiscounted Cash FlowDiscount Rate6%-15%8%Probability of Payment15%-100%97%Projected Year of Payment2026-20322028Clinical-based, Regulatory and Other Milestones$241 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