Company: BSX
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000885725-25-000011
Chunk: 147

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 147
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 to pay under our other capped contingent consideration arrangements (undiscounted) is approximately $220 million. 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 December 31, 2024Valuation TechniqueUnobservable InputRangeWeighted Average(1)Revenue-based Payments and Commercialization Milestones$171 millionDiscounted Cash FlowDiscount Rate6 %-15%7%Probability of Payment40%-100%96%Projected Year of Payment2025-20292027(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 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 December 31, 2024.Strategic InvestmentsThe aggregate carrying amount of our strategic investments was comprised of the following:As of December 31,(in millions)20242023Equity method investments$278 $219 Measurement alternative investments(1, 2)277 194 $555 $413 (1) Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, recognized in Other, net within our accompanying consolidated statements of operations.(2) Includes publicly-held equity securities and convertible notes measured at fair value with changes in fair value recognized in Other, net within our consolidated statements of operations.These investments are classified as Other long-term assets within our consolidated balance sheets, in accordance with GAAP and our accounting policies.

In 2024, the cost of our aggregated equity method investments exceeded our share of the underlying equity in net assets by $333 million, which represents amortizable intangible assets, IPR&D, goodwill and deferred tax liabilities. 

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NOTE C – GOODWILL AND OTHER INTANGIBLE ASSETS The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated goodwill impairment charges are as follows: