- Announced initial U.S. commercial performance results of the
WATCHMAN™ Left Atrial Appendage Closure (LAAC) Device collected
during 3,822 consecutive LAAC procedures, demonstrating a nearly 96
percent implant success rate. The overall rate of complications
evaluated within these data, presented at the Transcatheter
Cardiovascular Therapeutics (TCT) Scientific Sessions, was 1.63%,
and compared favorably to the clinical trial data leading to device
approval, validating the rigorous process for selecting and
training new operators.
- Announced positive results from the 900-patient MultiSENSE
study evaluating the performance of the HeartLogic™ Heart Failure
Diagnostic Service** to predict impending heart failure (HF)
decompensation in a late-breaking clinical trial session at the
American Heart Association Scientific Sessions 2016. The trial data
demonstrated the HeartLogic alert could successfully notify
clinicians of an associated HF event*** with a 34-day median alert
window.
- Closed the acquisition of EndoChoice, enabling Boston
Scientific to offer its infection control products, pathology
services and single-use devices to specialists treating a wide
range of gastrointestinal (GI) conditions.
- Closed the acquisition of certain manufacturing assets and
capabilities of Neovasc, Inc. (Neovasc), which will be integrated
into the Boston Scientific structural heart business, and acquired
a 15 percent equity stake in Neovasc, which is developing a novel
mitral valve replacement device.
- Expanded the portfolio of its Urology and Pelvic Health
business with the acquisition of the Resectr™ Tissue Resection
Device, a single-use solution designed to remove uterine polyps,
and added the LumenR™ Tissue Retractor System, which is currently
in development for use during endoscopic resection of lesions in
the colon, esophagus or colon, to its Endoscopy business.
- Launched the Dakota™ Nitinol Stone Retrieval Device with
Opensure™ Handle, designed to allow physicians to release and
capture kidney stones of multiple sizes.
*We define Emerging Markets as including certain countries that
we believe have strong growth potential based on their economic
conditions, healthcare sectors, and our global capabilities.
Currently, we include 20 countries in our definition of Emerging
Markets.
**The HeartLogic Heart Failure Diagnostic Service is not currently
available for use or sale.
***Associated heart failure event is defined as hospitalizations
with HF as the primary diagnosis and HF outpatient treatment with
intravenous therapy.
Worldwide sales for the fourth quarter:
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Change
|
|
|
|
December
31,
|
|
As
Reported
Basis
|
|
Less: Impact
of
Foreign Currency
|
|
Constant
Currency
Basis
|
|
|
in
millions
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interventional Cardiology
|
$
|
585
|
|
$
|
525
|
|
|
12
|
|
%
|
|
$
|
(9)
|
|
0
|
|
%
|
|
12
|
|
%
|
|
|
Peripheral Interventions
|
255
|
|
231
|
|
|
10
|
|
%
|
|
(3)
|
|
0
|
|
%
|
|
10
|
|
%
|
|
|
Cardiovascular
|
840
|
|
756
|
|
|
11
|
|
%
|
|
(12)
|
|
0
|
|
%
|
|
11
|
|
%
|
|
|
Cardiac
Rhythm Management
|
473
|
|
440
|
|
|
7
|
|
%
|
|
(3)
|
|
(1)
|
|
%
|
|
8
|
|
%
|
|
|
Electrophysiology
|
63
|
|
61
|
|
|
4
|
|
%
|
|
(1)
|
|
(1)
|
|
%
|
|
5
|
|
%
|
|
|
Rhythm
Management
|
536
|
|
501
|
|
|
7
|
|
%
|
|
(4)
|
|
0
|
|
%
|
|
7
|
|
%
|
|
|
Endoscopy
|
380
|
|
343
|
|
|
11
|
|
%
|
|
(2)
|
|
1
|
|
%
|
|
10
|
|
%
|
*
|
|
Urology
and Pelvic Health
|
274
|
|
237
|
|
|
15
|
|
%
|
|
1
|
|
1
|
|
%
|
|
14
|
|
%
|
|
|
Neuromodulation
|
161
|
|
141
|
|
|
15
|
|
%
|
|
(3)
|
|
(1)
|
|
%
|
|
16
|
|
%
|
|
|
MedSurg
|
815
|
|
721
|
|
|
13
|
|
%
|
|
(4)
|
|
1
|
|
%
|
|
12
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
2,191
|
|
$
|
1,978
|
|
|
11
|
|
%
|
|
$
|
(20)
|
|
0
|
|
%
|
|
11
|
|
%
|
|
|
|
|
*Endoscopy grew 8%
on an organic basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth rates are
based on actual, non-rounded amounts and may not recalculate
precisely.
|
|
|
|
|
Sales growth rates
that exclude the impact of changes in foreign currency exchange
rates are not prepared in accordance with
U.S. GAAP. An explanation of the company's use of these non-GAAP
financial measures is included in the exhibits attached to this
news release.
|
|
On a consolidated GAAP basis, net income for the fourth quarter
of 2016 was $124 million, or
$0.09 per share. These results
included intangible asset impairment charges, acquisition-,
litigation-, and restructuring and restructuring-related net
charges, and amortization expense of $291
million (after-tax) or $0.21
per share. Adjusted net income for the fourth quarter of 2016,
excluding these net charges, was $415
million, or $0.30 per
share.
On a consolidated GAAP basis, net loss for the fourth quarter of
2015 was $142 million, or
$(0.11) per share. These results
included acquisition-, litigation-, and restructuring and
restructuring-related net charges, discrete tax items and
amortization expense, of $504 million
(after-tax) or $0.37 per share.
Adjusted net income for the fourth quarter of 2015, excluding these
net charges, was $362 million, or
$0.26 per share.
Worldwide sales for the full year:
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
Change
|
|
|
|
December
31,
|
|
As
Reported
Basis
|
|
Less: Impact
of
Foreign Currency
|
|
Constant
Currency
Basis
|
|
|
in
millions
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interventional Cardiology
|
$
|
2,281
|
|
$
|
2,033
|
|
|
12
|
|
%
|
|
$
|
(34)
|
|
(1)
|
|
%
|
|
13
|
|
%
|
|
|
Peripheral Interventions
|
1,011
|
|
904
|
|
|
12
|
|
%
|
|
(11)
|
|
0
|
|
%
|
|
12
|
|
%
|
|
|
Cardiovascular
|
3,292
|
|
2,937
|
|
|
12
|
|
%
|
|
(45)
|
|
0
|
|
%
|
|
12
|
|
%
|
|
|
Cardiac
Rhythm Management
|
1,850
|
|
1,807
|
|
|
2
|
|
%
|
|
(17)
|
|
(1)
|
|
%
|
|
3
|
|
%
|
|
|
Electrophysiology
|
243
|
|
233
|
|
|
4
|
|
%
|
|
(3)
|
|
(1)
|
|
%
|
|
5
|
|
%
|
|
|
Rhythm
Management
|
2,093
|
|
2,040
|
|
|
3
|
|
%
|
|
(20)
|
|
0
|
|
%
|
|
3
|
|
%
|
|
|
Endoscopy
|
1,440
|
|
1,306
|
|
|
10
|
|
%
|
|
(9)
|
|
0
|
|
%
|
|
10
|
|
%
|
*
|
|
Urology
and Pelvic Health
|
1,005
|
|
693
|
|
|
45
|
|
%
|
|
(18)
|
|
0
|
|
%
|
|
45
|
|
%
|
**
|
|
Neuromodulation
|
556
|
|
501
|
|
|
11
|
|
%
|
|
(7)
|
|
(1)
|
|
%
|
|
12
|
|
%
|
|
|
MedSurg
|
3,001
|
|
2,500
|
|
|
20
|
|
%
|
|
(34)
|
|
0
|
|
%
|
|
20
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Sales
|
$
|
8,386
|
|
$
|
7,477
|
|
|
12
|
|
%
|
|
$
|
(99)
|
|
0
|
|
%
|
|
12
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Endoscopy sales
grew 9% on an organic basis
|
|
|
**Urology and
Pelvic Health sales grew 14% on an organic basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth rates are
based on actual, non-rounded amounts and may not recalculate
precisely.
|
|
|
|
|
Sales growth rates
that exclude the impact of changes in foreign currency exchange
rates are not prepared in accordance with
U.S. GAAP. An explanation of the company's use of these non-GAAP
financial measures is included in the exhibits attached to this
news release.
|
|
On a consolidated GAAP basis, net income for the full year 2016
was $347 million, or $0.25 per share. These results included
intangible asset impairment charges, acquisition-, litigation-,
restructuring and restructuring-related charges, and amortization
expense, of $1.187 billion
(after-tax) or $0.86 per share.
Adjusted net income for the full year 2016, excluding these net
charges, was $1.534 billion, or
$1.11 per share.
On a consolidated GAAP basis, net loss for the full year 2015
was $239 million, or $(0.18) per share. These results included
intangible asset impairment charges, acquisition-, litigation-,
restructuring and restructuring-related charges, pension
termination charges, debt extinguishment charges, discrete tax
items and amortization expense, of $1.506
billion (after-tax) or $1.11
per share. Adjusted net income for the full year 2015, excluding
these net charges, was $1.267
billion, or $0.93 per
share.
Guidance for Full Year and First Quarter 2017
The company estimates revenue for the full year 2017 to be in a
range of $8.675 to $8.875 billion,
which versus the prior year period, represents a growth range of
approximately 3 to 6 percent on a reported basis, a growth range of
approximately 5 to 7 percent on an operational basis including
contribution of approximately 70 basis points from EndoChoice. The
company estimates income on a GAAP basis in a range of $0.86 to $0.91 per share, and adjusted earnings,
excluding acquisition-, restructuring- and restructuring-related
charges, and amortization expense, in a range of $1.22 to $1.26 per share.
The company estimates sales for the first quarter of 2017 in a
range of $2.050 to $2.100 billion.
The company estimates earnings on a GAAP basis in a range of
$0.18 to $0.21 per share. Adjusted
earnings, excluding acquisition-, restructuring- and
restructuring-related charges, and amortization expense, are
estimated in a range of $0.29 to
$0.31 per share.
Conference Call Information
Boston Scientific management will be discussing these results
with analysts on a conference call today at 8:00 a.m. (ET). The company will webcast the call
to interested parties through its website:
www.bostonscientific.com. Please see the website for details on how
to access the webcast. The webcast will be available for
approximately one year on the Boston Scientific website.
About Boston Scientific
Boston Scientific transforms
lives through innovative medical solutions that improve the health
of patients around the world. As a global medical technology leader
for more than 35 years, we advance science for life by providing a
broad range of high performance solutions that address unmet
patient needs and reduce the cost of healthcare. For more
information, visit www.bostonscientific.com and connect on Twitter
and Facebook.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements may be identified by words like
"anticipate," "expect," "project," "believe," "plan," "estimate,"
"intend" and similar words. These forward-looking statements are
based on our beliefs, assumptions and estimates using information
available to us at the time and are not intended to be guarantees
of future events or performance. These forward-looking statements
include, among other things, statements regarding our expected net
sales, GAAP, operational and organic revenue growth rates, GAAP
earnings and adjusted earnings for the first quarter and full year
2017; our financial performance; our business plans; and our
positioning for revenue and earnings growth. If our underlying
assumptions turn out to be incorrect, or if certain risks or
uncertainties materialize, actual results could vary materially
from the expectations and projections expressed or implied by our
forward-looking statements. These risks and uncertainties, in some
cases, have affected and in the future could affect our ability to
implement our business strategy and may cause actual results to
differ materially from those contemplated by the statements
expressed in this press release. As a result, readers are cautioned
not to place undue reliance on any of our forward-looking
statements.
Risks and uncertainties that may cause such differences include,
among other things: future economic, political, competitive,
reimbursement and regulatory conditions; new product introductions
and the market acceptance of those products; markets for our
products; expected pricing environment; expected procedural
volumes; the closing and integration of acquisitions; clinical
trial results; demographic trends; intellectual property rights;
litigation; financial market conditions; the execution and effect
of our restructuring program; the execution and effect of our
business strategy, including our cost-savings and growth
initiatives; and future business decisions made by us and our
competitors. New risks and uncertainties may arise from time
to time and are difficult to predict. All of these factors are
difficult or impossible to predict accurately and many of them are
beyond our control. For a further list and description of these and
other important risks and uncertainties that may affect our future
operations, see Part I, Item IA - Risk Factors in our
most recent Annual Report on Form 10-K filed with the Securities
and Exchange Commission, which we may update in Part II, Item 1A
- Risk Factors in Quarterly Reports on Form 10-Q we have
filed or will file hereafter. We disclaim any intention or
obligation to publicly update or revise any forward-looking
statement to reflect any change in our expectations or in events,
conditions, or circumstances on which those expectations may be
based, or that may affect the likelihood that actual results will
differ from those contained in the forward-looking statements. This
cautionary statement is applicable to all forward-looking
statements contained in this press release.
Use of Non-GAAP Financial Information
A
reconciliation of the company's non-GAAP financial measures to the
corresponding GAAP measures, and an explanation of the company's
use of these non-GAAP financial measures, is included in the
exhibits attached to this news release.
|
CONTACT:
|
|
Media:
|
Tom
Keppeler
|
|
508-683-6585
(office)
|
|
Media
Relations
|
|
Boston Scientific
Corporation
|
|
tom.keppeler@bsci.com
|
|
|
|
Investors:
|
Susan Lisa,
CFA
|
|
508-683-5565
(office)
|
|
Investor
Relations
|
|
Boston Scientific
Corporation
|
|
investor_relations@bsci.com
|
|
BOSTON SCIENTIFIC
CORPORATION
CONDENSED
CONSOLIDATED GAAP RESULTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
in millions,
except per share data
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,191
|
|
$
|
1,978
|
|
|
$
|
8,386
|
|
$
|
7,477
|
|
|
Cost of products
sold
|
619
|
|
573
|
|
|
2,424
|
|
2,173
|
|
|
Gross
profit
|
1,572
|
|
1,405
|
|
|
5,962
|
|
5,304
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
831
|
|
777
|
|
|
3,099
|
|
2,873
|
|
|
Research and
development expenses
|
256
|
|
244
|
|
|
920
|
|
876
|
|
|
Royalty
expense
|
20
|
|
17
|
|
|
79
|
|
70
|
|
|
Amortization
expense
|
138
|
|
135
|
|
|
545
|
|
495
|
|
|
Intangible asset
impairment charges
|
4
|
|
—
|
|
|
11
|
|
19
|
|
|
Contingent
consideration expense (benefit)
|
5
|
|
37
|
|
|
29
|
|
123
|
|
|
Restructuring
charges
|
6
|
|
10
|
|
|
28
|
|
26
|
|
|
Litigation-related
charges (credits)
|
172
|
|
456
|
|
|
804
|
|
1,105
|
|
|
Pension termination
charges
|
—
|
|
—
|
|
|
—
|
|
44
|
|
|
1,432
|
|
1,676
|
|
|
5,515
|
|
5,631
|
|
|
Operating income
(loss)
|
140
|
|
(271)
|
|
|
447
|
|
(327)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Interest
expense
|
(58)
|
|
(59)
|
|
|
(233)
|
|
(284)
|
|
|
Other, net
|
7
|
|
(8)
|
|
|
(37)
|
|
(39)
|
|
|
Income
(loss) before income taxes
|
89
|
|
(338)
|
|
|
177
|
|
(650)
|
|
|
Income tax expense
(benefit)
|
(35)
|
|
(196)
|
|
|
(170)
|
|
(411)
|
|
|
Net income
(loss)
|
$
|
124
|
|
$
|
(142)
|
|
|
$
|
347
|
|
$
|
(239)
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share - basic
|
$
|
0.09
|
|
$
|
(0.11)
|
|
|
$
|
0.26
|
|
$
|
(0.18)
|
|
|
Net income (loss)
per common share - assuming dilution
|
$
|
0.09
|
|
$
|
(0.11)
|
|
|
$
|
0.25
|
|
$
|
(0.18)
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding
|
|
|
|
|
|
|
Basic
|
1,361.9
|
|
1,345.9
|
|
|
1,357.6
|
|
1,341.2
|
|
|
Assuming
dilution
|
1,381.2
|
|
1,345.9
|
|
|
1,377.2
|
|
1,341.2
|
|
|
BOSTON SCIENTIFIC
CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
As
of
|
|
December
31,
|
|
December
31,
|
|
in millions,
except share data
|
2016
|
|
2015
|
|
(unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
196
|
|
|
$
|
319
|
|
|
Trade accounts
receivable, net
|
1,472
|
|
|
1,275
|
|
|
Inventories
|
955
|
|
|
1,016
|
|
|
Deferred and prepaid
income taxes
|
75
|
|
|
496
|
|
|
Other current
assets
|
541
|
|
|
365
|
|
|
Total current
assets
|
3,239
|
|
|
3,471
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
1,630
|
|
|
1,490
|
|
|
Goodwill
|
6,678
|
|
|
6,473
|
|
|
Other intangible
assets, net
|
5,883
|
|
|
6,194
|
|
|
Other long-term
assets
|
666
|
|
|
505
|
|
|
TOTAL
ASSETS
|
$
|
18,096
|
|
|
$
|
18,133
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current debt
obligations
|
$
|
64
|
|
|
$
|
3
|
|
|
Accounts
payable
|
447
|
|
|
209
|
|
|
Accrued
expenses
|
2,312
|
|
|
1,970
|
|
|
Other current
liabilities
|
764
|
|
|
248
|
|
|
Total current
liabilities
|
3,587
|
|
|
2,430
|
|
|
|
|
|
|
Long-term
debt
|
5,420
|
|
|
5,674
|
|
|
Deferred income
taxes
|
18
|
|
|
735
|
|
|
Other long-term
liabilities
|
2,338
|
|
|
2,974
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Preferred stock, $.01
par value - authorized 50,000,000 shares,
|
|
|
|
|
none issued and
outstanding
|
|
|
|
|
Common stock, $.01
par value - authorized 2,000,000,000 shares -
|
|
|
|
|
issued 1,609,670,817
shares as of December 31, 2016 and
|
|
|
|
|
1,594,213,786 shares
as of December 31, 2015
|
19
|
|
|
16
|
|
|
Treasury stock, at
cost - 247,566,270 shares as of December 31, 2016
|
|
|
|
|
and as of December
31, 2015
|
(1,717)
|
|
|
(1,717)
|
|
|
Additional paid-in
capital
|
17,013
|
|
|
16,860
|
|
|
Accumulated
deficit
|
(8,583)
|
|
|
(8,927)
|
|
|
Accumulated other
comprehensive income (loss), net of tax
|
1
|
|
|
88
|
|
|
Total stockholders'
equity
|
6,733
|
|
|
6,320
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
18,096
|
|
|
$
|
18,133
|
|
|
BOSTON SCIENTIFIC
CORPORATION
NON-GAAP NET INCOME AND NET INCOME PER COMMON SHARE
RECONCILIATIONS
(Unaudited)
|
|
|
|
Three Months Ended
December 31, 2016
|
|
|
in millions,
except per share data
|
|
Pre-Tax
|
|
Tax
Impact
(a)
|
|
After-Tax
|
|
Impact per
Share
|
|
|
GAAP net income
(loss)
|
|
$
|
89
|
|
|
$
|
35
|
|
|
$
|
124
|
|
|
$
|
0.09
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
impairment charges
|
|
4
|
|
|
—
|
|
|
4
|
|
|
0.00
|
|
|
|
Acquisition-related
net charges (b)
|
|
41
|
|
|
(7)
|
|
|
34
|
|
|
0.02
|
|
|
|
Restructuring and
restructuring-related net charges (c)
|
|
23
|
|
|
(4)
|
|
|
19
|
|
|
0.01
|
|
|
|
Litigation-related
net charges
|
|
172
|
|
|
(62)
|
|
|
110
|
|
|
0.09
|
|
|
|
Amortization
expense
|
|
138
|
|
|
(14)
|
|
|
124
|
|
|
0.09
|
|
|
|
Adjusted net
income
|
|
$
|
467
|
|
|
$
|
(52)
|
|
|
$
|
415
|
|
|
$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
in millions,
except per share data
|
|
Pre-Tax
|
|
Tax
Impact (a)
|
|
After-Tax
|
|
Impact per
Share
|
|
|
GAAP net income
(loss)
|
|
$
|
(338)
|
|
|
$
|
196
|
|
|
$
|
(142)
|
|
|
$
|
(0.11)
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
net charges (d)
|
|
83
|
|
|
(16)
|
|
|
67
|
|
|
0.05
|
|
*
|
|
Restructuring and
restructuring-related net charges (e)
|
|
26
|
|
|
(4)
|
|
|
22
|
|
|
0.02
|
|
*
|
|
Litigation-related
net charges
|
|
456
|
|
|
(165)
|
|
|
291
|
|
|
0.21
|
|
*
|
|
Discrete tax
items
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.01)
|
|
*
|
|
Amortization
expense
|
|
135
|
|
|
(2)
|
|
|
133
|
|
|
0.10
|
|
*
|
|
Adjusted net
income
|
|
362
|
|
|
—
|
|
|
$
|
362
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Assumes dilution of
21.3 million shares for the three months ended December 31,
2015 for all or a portion of these non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts are tax
effected at the company's effective tax rate, unless the amount is
a significant unusual or infrequently occurring item in accordance
with FASB Accounting Standards Codification section 740-270-30,
"General Methodology and Use of Estimated Annual Effective Tax
Rate."
|
|
(b) In the three
months ended December 31, 2016, pre-tax acquisition-related net
charges were $41 million, of which $4 million was recorded in cost
of products sold, $27 million was recorded in selling, general and
administrative expenses, $5 million was recorded in research and
development, and $5 million was recorded as contingent
consideration expense.
|
|
(c) In the three
months ended December 31, 2016, pre-tax restructuring charges were
$6 million and pre-tax restructuring- related charges were $17
million, of which $14 million was recorded in cost of products sold
and $3 million was recorded in selling, general and administrative
expenses.
|
|
(d) In the three
months ended December 31, 2015, pre-tax acquisition-related net
charges were $83 million, of which $25 million was recorded in cost
of products sold, $15 million was recorded in selling, general and
administrative expenses, $6 million was recorded in research and
development, and $37 million was recorded as contingent
consideration expense.
|
|
(e) In the three
months ended December 31, 2015, pre-tax restructuring charges were
$10 million and pre-tax restructuring- related charges were $16
million, of which $11 million was recorded in cost of products sold
and $5 million was recorded in selling, general and administrative
expenses.
|
|
An explanation of the
company's use of these non-GAAP financial measures is provided at
the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
NON-GAAP NET INCOME AND NET INCOME PER COMMON
SHARE RECONCILIATIONS
(Unaudited)
|
|
|
|
Year Ended
December 31, 2016
|
|
|
in millions,
except per share data
|
|
Pre-Tax
|
|
Tax
Impact
(a)
|
|
After-Tax
|
|
Impact per
Share
|
|
|
GAAP net income
(loss)
|
|
$
|
177
|
|
|
$
|
170
|
|
|
$
|
347
|
|
|
$
|
0.25
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
impairment charges
|
|
11
|
|
|
(1)
|
|
|
10
|
|
|
0.01
|
|
|
|
Acquisition-related
net charges (b)
|
|
136
|
|
|
(10)
|
|
|
126
|
|
|
0.09
|
|
|
|
Restructuring and
restructuring-related net charges (c)
|
|
78
|
|
|
(17)
|
|
|
61
|
|
|
0.04
|
|
|
|
Litigation-related
net charges
|
|
804
|
|
|
(292)
|
|
|
512
|
|
|
0.37
|
|
|
|
Amortization
expense
|
|
545
|
|
|
(67)
|
|
|
478
|
|
|
0.35
|
|
|
|
Adjusted net
income
|
|
$
|
1,751
|
|
|
$
|
(217)
|
|
|
$
|
1,534
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2015
|
|
|
in millions,
except per share data
|
|
Pre-Tax
|
|
Tax
Impact
(a)
|
|
After-Tax
|
|
Impact per
Share
|
|
|
GAAP net income
(loss)
|
|
$
|
(650)
|
|
|
$
|
411
|
|
|
$
|
(239)
|
|
|
$
|
(0.18)
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
Intangible asset
impairment charges
|
|
19
|
|
|
(3)
|
|
|
16
|
|
|
0.01
|
|
*
|
|
Acquisition-related
net charges (d)
|
|
255
|
|
|
(33)
|
|
|
222
|
|
|
0.17
|
|
*
|
|
Restructuring and
restructuring-related net charges (e)
|
|
83
|
|
|
(14)
|
|
|
69
|
|
|
0.05
|
|
*
|
|
Litigation-related
net charges
|
|
1,105
|
|
|
(400)
|
|
|
705
|
|
|
0.52
|
|
*
|
|
Pension termination
charges
|
|
44
|
|
|
(16)
|
|
|
28
|
|
|
0.02
|
|
*
|
|
Debt extinguishment
charges (f)
|
|
45
|
|
|
(16)
|
|
|
29
|
|
|
0.02
|
|
*
|
|
Discrete tax
items
|
|
—
|
|
|
(9)
|
|
|
(9)
|
|
|
(0.01)
|
|
*
|
|
Amortization
expense
|
|
495
|
|
|
(49)
|
|
|
446
|
|
|
0.33
|
|
*
|
|
Adjusted net
income
|
|
$
|
1,396
|
|
|
$
|
(129)
|
|
|
$
|
1,267
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Assumes dilution of
21.5 million shares for the twelve months ended December 31,
2015 for all or a portion of these non-GAAP Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts are tax
effected at the company's effective tax rate, unless the amount is
a significant unusual or infrequently occurring item in accordance
with FASB Accounting Standards Codification section 740-270-30,
"General Methodology and Use of Estimated Annual Effective Tax
Rate."
|
|
(b) In the twelve
months ended December 31, 2016, pre-tax acquisition-related net
charges were $136 million, of which $43 million was recorded in
cost of products sold, $58 million was recorded in selling, general
and administrative expenses, $6 million was recorded in research
and development and $29 million was recorded as contingent
consideration expense.
|
|
(c) In the twelve
months ended December 31, 2016, pre-tax restructuring charges were
$28 million and pre-tax restructuring- related charges were $50
million, of which $34 million was recorded in cost of products sold
and $16 million was recorded in selling, general and administrative
expenses.
|
|
(d) In the twelve
months ended December 31, 2015, pre-tax acquisition-related net
charges were $255 million, of which $49 million was recorded in
cost of products sold, $53 million was recorded in selling, general
and administrative expenses, $26 million was recorded in research
and development, $123 million was recorded as contingent
consideration expense, and $4 million was recorded as interest
expense.
|
|
(e) In the twelve
months ended December 31, 2015, pre-tax restructuring charges were
$26 million and pre-tax restructuring- related charges were $57
million, of which $31 million was recorded in cost of products sold
and $26 million was recorded in selling, general and administrative
expenses.
|
|
(f) Debt
extinguishment charges are recorded in interest expense.
|
|
An explanation of the
company's use of these non-GAAP financial measures is provided at
the end of this document.
|
|
BOSTON SCIENTIFIC
CORPORATION
SEGMENT INFORMATION
(Unaudited)
|
|
|
SEGMENT NET
SALES*
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
in
millions
|
|
2016
|
2015
|
|
Change
|
|
2016
|
2015
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interventional Cardiology
|
|
$
|
653
|
|
$
|
584
|
|
|
12
|
|
%
|
|
$
|
2,524
|
|
$
|
2,242
|
|
|
13
|
|
%
|
|
Peripheral
Interventions
|
|
279
|
|
252
|
|
|
10
|
|
%
|
|
1,093
|
|
975
|
|
|
12
|
|
%
|
|
Cardiovascular
|
|
932
|
|
836
|
|
|
11
|
|
%
|
|
3,617
|
|
3,217
|
|
|
12
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cardiac
Rhythm Management
|
|
513
|
|
477
|
|
|
8
|
|
%
|
|
1,994
|
|
1,934
|
|
|
3
|
|
%
|
|
Electrophysiology
|
|
69
|
|
66
|
|
|
5
|
|
%
|
|
261
|
|
248
|
|
|
5
|
|
%
|
|
Rhythm
Management
|
|
582
|
|
543
|
|
|
7
|
|
%
|
|
2,255
|
|
2,182
|
|
|
3
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endoscopy
|
|
417
|
|
378
|
|
|
10
|
|
%
|
|
1,565
|
|
1,422
|
|
|
10
|
|
%
|
|
Urology
and Pelvic Health
|
|
292
|
|
256
|
|
|
14
|
|
%
|
|
1,065
|
|
735
|
|
|
45
|
|
%
|
|
Neuromodulation
|
|
167
|
|
144
|
|
|
16
|
|
%
|
|
574
|
|
512
|
|
|
12
|
|
%
|
|
MedSurg
|
|
876
|
|
778
|
|
|
12
|
|
%
|
|
3,204
|
|
2,669
|
|
|
20
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Core
Businesses
|
|
2,390
|
|
2,157
|
|
|
11
|
|
%
|
|
9,076
|
|
8,068
|
|
|
12
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
Currency
|
|
(199)
|
|
(179)
|
|
|
N/A
|
|
|
(690)
|
|
(591)
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Net
Sales
|
|
$
|
2,191
|
|
$
|
1,978
|
|
|
11
|
|
%
|
|
$
|
8,386
|
|
$
|
7,477
|
|
|
12
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Growth rates are
based on actual, non-rounded amounts and may not recalculate
precisely.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT OPERATING
INCOME*
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
in
millions
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Segment operating
income
|
|
|
|
|
|
|
|
|
|
Cardiovascular
|
|
$
|
251
|
|
|
$
|
240
|
|
|
$
|
1,137
|
|
|
$
|
972
|
|
|
Rhythm
Management
|
|
104
|
|
|
76
|
|
|
404
|
|
|
328
|
|
|
MedSurg
|
|
282
|
|
|
266
|
|
|
1,045
|
|
|
856
|
|
|
Operating income
allocated to reportable segments
|
|
637
|
|
|
582
|
|
|
2,586
|
|
|
2,156
|
|
|
Corporate expenses
and currency exchange
|
|
(119)
|
|
|
(153)
|
|
|
(565)
|
|
|
(486)
|
|
|
Intangible asset
impairment charges; acquisition-related net charges; restructuring-
and restructuring-related net charges; litigation-related net
charges; and pension termination charges
|
|
(240)
|
|
|
(565)
|
|
|
(1,029)
|
|
|
(1,502)
|
|
|
Amortization
expense
|
|
(138)
|
|
|
(135)
|
|
|
(545)
|
|
|
(495)
|
|
|
Operating income
(loss)
|
|
$
|
140
|
|
|
$
|
(271)
|
|
|
$
|
447
|
|
|
$
|
(327)
|
|
|
|
|
|
|
|
|
|
|
|
*We measure and
evaluate our reportable segments based on segment net sales and
operating income, excluding the impact of changes in foreign
currency. Sales generated from reportable segments, as well as
operating results of reportable segments and corporate expenses,
are based on internally-derived standard currency exchange rates,
which may differ from year to year, and do not include intersegment
profits. We exclude from segment operating income certain
corporate-related expenses and certain transactions or adjustments
that our chief operating decision maker considers to be
non-operational, such as amounts related to intangible asset
impairment charges; acquisition-related net charges; restructuring-
and restructuring-related net charges; litigation-related net
charges; pension termination charges; and amortization expense.
Although we exclude these amounts from segment operating income,
they are included in reported consolidated operating income
(loss) and are included in the reconciliation
above.
|
|
BOSTON SCIENTIFIC
CORPORATION
WORLDWIDE CARDIAC RHYTHM MANAGEMENT (CRM)
SALES
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
Year
Ended
|
|
(in
millions)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
Defibrillator
systems
|
|
$
|
319
|
|
|
$
|
316
|
|
|
$
|
1,274
|
|
|
$
|
1,313
|
|
|
Pacemaker
systems
|
|
154
|
|
|
124
|
|
|
576
|
|
|
494
|
|
|
CRM
products
|
|
$
|
473
|
|
|
$
|
440
|
|
|
$
|
1,850
|
|
|
$
|
1,807
|
|
|
BOSTON SCIENTIFIC
CORPORATION
SEGMENT AND REGIONAL NET SALES
(Unaudited)
|
|
|
Q4 2016 Segment
Revenue Growth as compared to Q4 2015
|
|
|
MedSurg
|
Cardiovascular
|
Rhythm
Management
|
Total
BSC
|
|
Percentage change
in net sales, as reported
|
13
|
%
|
11
|
%
|
7
|
%
|
11
|
%
|
|
Less: Impact of
foreign currency fluctuations
|
1
|
%
|
0
|
%
|
0
|
%
|
0
|
%
|
|
Percentage change
in net sales, constant currency
|
12
|
%
|
11
|
%
|
7
|
%
|
11
|
%
|
|
Less: Impact of
EndoChoice acquisition
|
1
|
%
|
0
|
%
|
0
|
%
|
1
|
%
|
|
Percentage change
in net sales, organic
|
11
|
%
|
11
|
%
|
7
|
%
|
10
|
%
|
|
Q4 2016 Regional
Revenue Growth as compared to Q4 2015
|
|
|
U.S.
|
Europe
|
AMEA
|
Emerging
Markets
|
|
Percentage change
in net sales, as reported
|
11
|
%
|
3
|
%
|
17
|
%
|
9
|
%
|
|
Less: Impact of
foreign currency fluctuations
|
0
|
%
|
(4)
|
%
|
4
|
%
|
(8)
|
%
|
|
Percentage change
in net sales, constant currency
|
11
|
%
|
7
|
%
|
13
|
%
|
17
|
%
|
|
Less: Impact of
EndoChoice acquisition
|
0
|
%
|
0
|
%
|
0
|
%
|
0
|
%
|
|
Percentage change
in net sales, organic
|
11
|
%
|
7
|
%
|
13
|
%
|
17
|
%
|
|
Q4 2016 Endoscopy
Net Sales as compared to Q4 2015
|
|
|
Endoscopy
|
|
Percentage change
in net sales, as reported
|
11
|
%
|
|
Less: Impact of
foreign currency fluctuations
|
1
|
%
|
|
Percentage change
in net sales, constant currency
|
10
|
%
|
|
Less: Impact of
EndoChoice acquisition
|
2
|
%
|
|
Percentage change
in net sales, organic
|
8
|
%
|
|
YTD 2016 Endoscopy
and Urology and Pelvic Health Net Sales as compared to YTD
2015
|
|
|
Endoscopy
|
Urology and
Pelvic Health
|
|
Percentage change
in net sales, as reported
|
10
|
%
|
45
|
%
|
|
Less: Impact of
foreign currency fluctuations
|
0
|
%
|
0
|
%
|
|
Percentage change
in net sales, constant currency
|
10
|
%
|
45
|
%
|
|
Less: Impact of
significant acquisition
|
1
|
%
|
31
|
%
|
|
Percentage change
in net sales, organic
|
9
|
%
|
14
|
%
|
An explanation of the company's use of these non-GAAP financial
measures is provided at the end of this document.
|
BOSTON SCIENTIFIC
CORPORATION
ESTIMATED REVENUE NON-GAAP GROWTH RATES AND
NON-GAAP NET INCOME PER COMMON SHARE RECONCILIATIONS
(Unaudited)
|
|
|
Full Year 2017
Estimated Revenue Growth Rates
|
|
|
Full Year 2017
Estimate
|
|
(Low)
|
(High)
|
|
Estimated GAAP
sales growth
|
3
|
%
|
6
|
%
|
|
Less: Estimated
impact of foreign currency fluctuations
|
(2)
|
%
|
(1)
|
%
|
|
Estimated sales
growth, constant currency*
|
5
|
%
|
7
|
%
|
|
|
|
|
*Includes
contribution of approximately 70 basis points from
EndoChoice.
|
|
Q1 and Full Year
2017 EPS Guidance
|
|
|
Q1 2017
Estimate
|
|
Full Year 2017
Estimate
|
|
(Low)
|
(High)
|
|
(Low)
|
(High)
|
|
GAAP
EPS
|
$
|
0.18
|
|
$
|
0.21
|
|
|
$
|
0.86
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
Estimated
acquisition-related net charges
|
0.02
|
|
0.01
|
|
|
0.05
|
|
0.04
|
|
|
Estimated
restructuring and restructuring-related net charges
|
0.02
|
|
0.02
|
|
|
0.03
|
|
0.03
|
|
|
Estimated
amortization expense
|
0.07
|
|
0.07
|
|
|
0.28
|
|
0.28
|
|
|
|
|
|
|
|
|
Adjusted
EPS
|
$
|
0.29
|
|
$
|
0.31
|
|
|
$
|
1.22
|
|
$
|
1.26
|
|
|
|
|
|
|
|
An explanation of the company's use of these non-GAAP financial
measures is provided at the end of this document.
Use of Non-GAAP Financial Measures
To supplement our financial statements presented on a GAAP
basis, we disclose certain non-GAAP financial measures, including
adjusted net income (earnings) and adjusted net income (earnings)
per share that exclude certain amounts, and adjusted net sales that
exclude the impact of changes in foreign currency exchange rates
and/or the impact of recent acquisitions with significant sales.
These non-GAAP financial measures are not in accordance with
generally accepted accounting principles in the United States.
The GAAP financial measure most directly comparable to adjusted
net income is GAAP net income and the GAAP financial measure most
directly comparable to adjusted net income per share is GAAP net
income per share. To calculate adjusted net sales that exclude the
impact of changes in foreign currency exchange rates, we convert
actual net sales from local currency to U.S. dollars using constant
foreign currency exchange rates in the current and prior period.
The GAAP financial measure most directly comparable to this
constant currency growth rate and/or growth rates excluding the
impacts of recent acquisitions with significant sales is growth
rate percentages using net sales on a GAAP basis. Reconciliations
of each of these non-GAAP financial measures to the corresponding
GAAP financial measure are included in the accompanying
schedules.
Management uses these supplemental non-GAAP financial measures
to evaluate performance period over period, to analyze the
underlying trends in our business, to assess our performance
relative to our competitors, and to establish operational goals and
forecasts that are used in allocating resources. In addition,
management uses these non-GAAP financial measures to further its
understanding of the performance of our operating segments. With
the exception of the impact of recent acquisitions with significant
sales, the adjustments excluded from our non-GAAP financial
measures are consistent with those excluded from our operating
segments' measures of net sales and profit or loss. These
adjustments are excluded from the segment measures that are
reported to our chief operating decision maker that are used to
make operating decisions and assess performance.
We believe that presenting adjusted net income and adjusted net
income per share that exclude certain amounts, and adjusted net
sales that exclude the impact of changes in foreign currency
exchange rates and/or the impact of recent acquisitions with
significant sales, in addition to the corresponding GAAP financial
measures, provides investors greater transparency to the
information used by management for its operational decision-making
and allows investors to see our results "through the eyes" of
management. We further believe that providing this information
assists our investors in understanding our operating performance
and the methodology used by management to evaluate and measure such
performance.
The following is an explanation of each of the adjustments that
management excluded as part of these non-GAAP financial measures
for the three and twelve months ended December 31, 2016 and
2015, and for the forecasted three month period ending March 31, 2017 and for the forecasted full year
ending December 31, 2017, as well as reasons for excluding
each of these individual items:
Adjusted Net Income and Adjusted Net Income per
Share:
- Intangible asset impairment charges - This amount represent
write-downs of certain intangible asset balances during 2016 and
2015. We review intangible assets subject to amortization quarterly
to determine if any adverse conditions exist or a change in
circumstances has occurred that would indicate impairment and test
our indefinite-lived intangible assets at least annually for
impairment. If we determine the carrying value of the amortizable
intangible asset is not recoverable or we conclude that it is more
likely than not that the indefinite-live asset is impaired,
we will write the carrying value down to fair value in the period
identified. We exclude the impact of impairment charges from
management's assessment of operating performance and from our
operating segments' measures of profit and loss used for making
operating decisions and assessing performance. Accordingly,
management has excluded intangible asset impairment charges for
purposes of calculating these non-GAAP financial measures to
facilitate an evaluation of our current operating performance and a
comparison to our past operating performance.
- Acquisition-related net charges (credits) - These adjustments
may consist of (a) contingent consideration fair value adjustments;
(b) gains on previously held investments; (c) purchased and/or
funded in-process research and development expenses incurred
outside of a business combination; and (d) due diligence, other
fees, inventory step-up amortization, and integration and exit
costs. The contingent consideration adjustments represent
accounting adjustments to state contingent consideration
liabilities at their estimated fair value. These adjustments can be
highly variable depending on the assessed likelihood and amount of
future contingent consideration payments. Due diligence, other
fees, inventory step-up amortization, and integration and exit
costs include legal, tax, severance and other expenses associated
with prior and potential future acquisitions and divestitures that
can be highly variable and not representative of ongoing
operations. Accordingly, management excluded these amounts for
purposes of calculating these non-GAAP financial measures to
facilitate an evaluation of our current operating performance and a
comparison to our past operating performance.
- Restructuring and restructuring-related net charges (credits) -
These adjustments represent severance and other direct costs
associated with our restructuring plans. These restructuring plans
each consist of distinct initiatives that are fundamentally
different from our ongoing, core cost reduction initiatives in
terms of, among other things, the frequency with which each action
is performed and the required planning, resourcing, cost and
timing. Examples of such initiatives include the movement of
business activities, facility consolidations and closures, and the
transfer of product lines between manufacturing facilities, which,
due to the highly regulated nature of our industry, requires a
significant investment in time and cost to create duplicate
manufacturing lines, run product validations, and seek regulatory
approvals. Restructuring initiatives generally take approximately
two years to complete and have a distinct project timeline that
begins subsequent to approval by our Board of Directors. In
contrast to our ongoing cost reduction initiatives, restructuring
initiatives typically result in duplicative cost and exit costs
over this period of time, are one-time shut downs or transfers, and
are not considered part of our core, ongoing operations. Because
these restructuring plans are incremental to the core activities
that arise in the ordinary course of our business, management
excluded these costs for purposes of calculating these non-GAAP
financial measures to facilitate an evaluation of our current
operating performance and a comparison to our past operating
performance.
- Litigation-related net charges (credits) - These adjustments
include certain significant product liability and other
litigation-related charges and credits. We record these charges and
credits, which we consider to be unusual or infrequent and
significant, within the litigation-related charges line in our
consolidated statement of operations; all other legal and product
liability charges, credits and costs are recorded within selling
general and administrative expenses. These amounts are excluded by
management in assessing our operating performance, as well as from
our operating segments' measures of profit and loss used for making
operating decisions and assessing performance. Accordingly,
management excluded these amounts for purposes of calculating these
non-GAAP financial measures to facilitate an evaluation of our
current operating performance and a comparison to our past
operating performance.
- Debt extinguishment charges - This item represents premiums,
accelerated amortization of debt issuance costs and investor
discount costs net of interest rate hedge gains related to the
early extinguishment of $1.0 billion
of senior notes during the second quarter of 2015. These
adjustments are not expected to recur and do not reflect expected
ongoing operating results. Accordingly, management excluded these
amounts for purposes of calculating these non-GAAP financial
measures to facilitate an evaluation of our current operating
performance and a comparison to our past operating
performance.
- Pension termination charges - This item represents charges
associated with the termination of the Guidant Retirement Plan, a
frozen defined benefit plan. These charges are not expected to
recur after 2015 and do not reflect expected ongoing operating
results. Accordingly, management has excluded these amounts for
purposes of calculating these non-GAAP financial measures to
facilitate an evaluation of our current operating performance and a
comparison to our past operating performance.
- Amortization expense - We record intangible assets at
historical cost and amortize them over their estimated useful
lives. Amortization expense is excluded from management's
assessment of operating performance and is also excluded from our
operating segments' measures of profit and loss used for making
operating decisions and assessing performance. Accordingly,
management has excluded amortization expense for purposes of
calculating these non-GAAP financial measures to facilitate an
evaluation of our current operating performance and a comparison to
our past operating performance.
- Discrete tax items - These items represent adjustments of
certain tax positions, which were initially established in prior
periods in conjunction with the purchase accounting for an
acquisition or as a result of intangible asset impairment charges;
acquisition-, divestiture-, restructuring- or litigation-related
charges or credits. These adjustments do not reflect expected
on-going operating results. Accordingly, management excluded these
amounts for purposes of calculating these non-GAAP financial
measures to facilitate an evaluation of our current operating
performance and a comparison to our past operating
performance.
Adjusted Net Sales Excluding the Impact of Changes in Foreign
Currency Exchange Rates and/or the Impact of Recent Acquisitions
with Significant Sales
- The impact of changes in foreign currency exchange rates is
highly variable and difficult to predict. The impact of recent
acquisitions with significant sales in the current period and no
prior period equivalent may distort our presentation of organic
growth. Accordingly, management excludes the impact of changes in
foreign currency exchange rates and/or the impacts of recent
acquisitions with significant sales for purposes of reviewing the
net sales and growth rates to facilitate an evaluation of our
current operating performance and a comparison to our past
operating performance.
Adjusted net income and adjusted net income per share that
exclude certain amounts, and adjusted net sales that exclude the
impact of changes in foreign currency exchange rates and/or the
impacts of recent acquisitions with significant sales, are not in
accordance with U.S. GAAP and should not be considered in isolation
from or as a replacement for the most directly comparable GAAP
financial measures. Further, other companies may calculate these
non-GAAP financial measures differently than we do, which may limit
the usefulness of those measures for comparative purposes.
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SOURCE Boston Scientific Corporation