Company: BSX
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000885725-25-000041
Chunk: 45

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 respect to products and processes that we intend to leverage in future products or processes. We used the multi-period excess earnings method, 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 six 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)0 Contingent consideration payments(62)Balance as of June 30, 2025$367 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 June 30, 2025, the fair value of such uncapped contingent consideration is estimated at $106 million. As of June 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 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.

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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 June 30, 2025Valuation TechniqueUnobservable InputRangeWeighted Average(1)Revenue-based Payments and Commercialization Milestones$129 millionDiscounted Cash FlowDiscount Rate6%-15%9%Probability of Payment30%-100%95%Projected Year of Payment2026-20312028Clinical-based, Regulatory and Other Milestones$238 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