Company: BSX
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000885725-25-000026
Chunk: 34

Company: BOSTON SCIENTIFIC CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 with FASB ASC Topic 805. (in millions)CortexGoodwill$205 Amortizable intangible assets69 Other assets acquired1 Net deferred tax assets11 Liabilities assumed(10)$277 Goodwill was primarily established due to synergies expected to be gained from leveraging our existing operations, as well as revenue and cash flow projections associated with future technologies, none of which is deductible for tax purposes.We allocated a portion of the purchase price to the specific intangible asset categories as follows:Amount Assigned(in millions)Weighted Average Amortization Period(in years)Risk-Adjusted Discount Rates used in Purchase Price AllocationAmortizable intangible assets:Technology-related$69 1318%$69 

10

Our technology-related intangible assets consist of technical processes, intellectual property and institutional understanding with 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 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