000088572512/312024Q1false31531434135925400008857252024-01-012024-03-310000885725us-gaap:CommonStockMember2024-01-012024-03-310000885725bsx:SeniorNotedue2027Member2024-01-012024-03-31iso4217:USDxbrli:shares00008857252024-04-29xbrli:sharesiso4217:USD00008857252023-01-012023-03-3100008857252024-03-3100008857252023-12-310000885725us-gaap:CommonStockMember2024-03-310000885725us-gaap:PreferredStockMember2023-12-310000885725us-gaap:PreferredStockMember2022-12-310000885725us-gaap:PreferredStockMember2024-01-012024-03-310000885725us-gaap:PreferredStockMember2023-01-012023-03-310000885725us-gaap:PreferredStockMember2024-03-310000885725us-gaap:PreferredStockMember2023-03-310000885725us-gaap:CommonStockMember2023-12-310000885725us-gaap:CommonStockMember2022-12-310000885725us-gaap:CommonStockMember2024-01-012024-03-310000885725us-gaap:CommonStockMember2023-01-012023-03-310000885725us-gaap:CommonStockMember2023-03-310000885725us-gaap:TreasuryStockCommonMember2023-12-310000885725us-gaap:TreasuryStockCommonMember2022-12-310000885725us-gaap:TreasuryStockCommonMember2024-01-012024-03-310000885725us-gaap:TreasuryStockCommonMember2023-01-012023-03-310000885725us-gaap:TreasuryStockCommonMember2024-03-310000885725us-gaap:TreasuryStockCommonMember2023-03-310000885725us-gaap:AdditionalPaidInCapitalMember2023-12-310000885725us-gaap:AdditionalPaidInCapitalMember2022-12-310000885725us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000885725us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310000885725us-gaap:AdditionalPaidInCapitalMember2024-03-310000885725us-gaap:AdditionalPaidInCapitalMember2023-03-310000885725us-gaap:RetainedEarningsMember2023-12-310000885725us-gaap:RetainedEarningsMember2022-12-310000885725us-gaap:RetainedEarningsMember2024-01-012024-03-310000885725us-gaap:RetainedEarningsMember2023-01-012023-03-310000885725us-gaap:RetainedEarningsMember2024-03-310000885725us-gaap:RetainedEarningsMember2023-03-310000885725us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000885725us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000885725us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000885725us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310000885725us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000885725us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100008857252023-03-310000885725us-gaap:NoncontrollingInterestMember2023-12-310000885725us-gaap:NoncontrollingInterestMember2022-12-310000885725us-gaap:NoncontrollingInterestMember2024-01-012024-03-310000885725us-gaap:NoncontrollingInterestMember2023-01-012023-03-310000885725us-gaap:NoncontrollingInterestMember2024-03-310000885725us-gaap:NoncontrollingInterestMember2023-03-3100008857252022-12-310000885725bsx:AxonicsMember2024-01-08xbrli:pure0000885725bsx:AxonicsMember2024-01-082024-01-080000885725bsx:AcotecMember2023-02-200000885725bsx:AcotecMember2023-02-202023-02-20iso4217:HKD0000885725bsx:AcotecMember2024-01-012024-03-310000885725bsx:AcotecMember2024-03-310000885725bsx:AcotecMember2023-02-200000885725bsx:AcotecMemberus-gaap:TechnologyBasedIntangibleAssetsMember2024-03-310000885725bsx:AcotecMemberus-gaap:TechnologyBasedIntangibleAssetsMember2024-01-012024-03-310000885725srt:WeightedAverageMemberbsx:AcotecMemberus-gaap:TechnologyBasedIntangibleAssetsMember2024-03-310000885725bsx:AcotecMemberus-gaap:CustomerRelationshipsMember2024-03-310000885725bsx:AcotecMemberus-gaap:CustomerRelationshipsMember2024-01-012024-03-310000885725srt:WeightedAverageMemberbsx:AcotecMemberus-gaap:CustomerRelationshipsMember2024-03-310000885725us-gaap:OtherIntangibleAssetsMemberbsx:AcotecMember2024-03-310000885725us-gaap:OtherIntangibleAssetsMemberbsx:AcotecMember2024-01-012024-03-310000885725us-gaap:OtherIntangibleAssetsMembersrt:WeightedAverageMemberbsx:AcotecMember2024-03-310000885725bsx:AllBusinessAcquisitionsMember2024-03-310000885725bsx:RevenueBasedPaymentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-310000885725srt:MinimumMemberbsx:RevenueBasedPaymentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-31utr:Rate0000885725srt:MaximumMemberbsx:RevenueBasedPaymentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-310000885725srt:WeightedAverageMemberbsx:RevenueBasedPaymentsMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-03-310000885725us-gaap:TechnologyBasedIntangibleAssetsMember2024-03-310000885725us-gaap:TechnologyBasedIntangibleAssetsMember2023-12-310000885725us-gaap:PatentsMember2024-03-310000885725us-gaap:PatentsMember2023-12-310000885725us-gaap:OtherIntangibleAssetsMember2024-03-310000885725us-gaap:OtherIntangibleAssetsMember2023-12-310000885725us-gaap:GoodwillMember2024-03-310000885725us-gaap:GoodwillMember2023-12-310000885725us-gaap:InProcessResearchAndDevelopmentMember2024-03-310000885725us-gaap:InProcessResearchAndDevelopmentMember2023-12-310000885725us-gaap:TechnologyBasedIntangibleAssetsMember2024-03-310000885725us-gaap:TechnologyBasedIntangibleAssetsMember2023-12-310000885725bsx:MedsurgMember2023-12-310000885725bsx:CardiovascularMember2023-12-310000885725bsx:MedsurgMember2024-01-012024-03-310000885725bsx:CardiovascularMember2024-01-012024-03-310000885725bsx:MedsurgMember2024-03-310000885725bsx:CardiovascularMember2024-03-310000885725bsx:December2027NotesMember2024-03-31iso4217:EUR0000885725bsx:December2027NotesMember2023-12-310000885725us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2024-01-012024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-12-31bsx:derivative_instrument0000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberus-gaap:ForeignExchangeContractMember2023-12-310000885725bsx:ForeigncurrencydenominatedindebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2024-03-310000885725bsx:ForeigncurrencydenominatedindebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMember2023-12-310000885725us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2024-03-31bsx:units0000885725us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2024-01-012024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2024-01-012024-03-310000885725bsx:ForeigncurrencydenominatedindebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMember2024-01-012024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2024-01-012024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2023-01-012023-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2023-01-012023-03-310000885725bsx:ForeigncurrencydenominatedindebtMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMember2023-01-012023-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2023-01-012023-03-310000885725us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310000885725us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:ForeignExchangeContractMemberus-gaap:CostOfSalesMember2024-03-310000885725us-gaap:NetInvestmentHedgingMemberus-gaap:InterestExpenseMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:InterestRateContractMember2024-03-310000885725us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMember2024-01-012024-03-310000885725us-gaap:OtherNonoperatingIncomeExpenseMemberus-gaap:NondesignatedMember2023-01-012023-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:ForeignExchangeContractMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMember2023-12-310000885725us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-03-310000885725us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2024-03-310000885725us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2023-12-310000885725us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMember2024-03-310000885725us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:ForeignExchangeContractMember2023-12-310000885725us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-03-310000885725us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000885725us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310000885725us-gaap:FairValueMeasurementsRecurringMember2024-03-310000885725us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310000885725us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000885725us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310000885725us-gaap:FairValueMeasurementsRecurringMember2023-12-310000885725us-gaap:FairValueInputsLevel3Member2024-03-310000885725bsx:LicensingarrangementassetsMember2024-03-310000885725bsx:LicensingarrangementassetsMembersrt:WeightedAverageMember2024-03-310000885725bsx:LicensingarrangementliabilitiesMembersrt:MinimumMember2024-03-310000885725srt:MaximumMemberbsx:LicensingarrangementliabilitiesMember2024-03-310000885725bsx:LicensingarrangementliabilitiesMembersrt:WeightedAverageMember2024-03-310000885725bsx:LicensingarrangementassetsMember2024-01-012024-03-310000885725bsx:LicensingarrangementliabilitiesMember2024-01-012024-03-310000885725bsx:March2025NotesMember2024-03-310000885725bsx:March2025NotesMember2023-12-310000885725bsx:June2025NotesMember2024-03-310000885725bsx:June2025NotesMember2023-12-310000885725bsx:March2026NotesMember2024-03-310000885725bsx:March2026NotesMember2023-12-310000885725bsx:March2028SeniorNotesMember2024-03-310000885725bsx:March2028SeniorNotesMember2023-12-310000885725bsx:March2028NotesMember2024-03-310000885725bsx:March2028NotesMember2023-12-310000885725bsx:March2029NotesMember2024-03-310000885725bsx:March2029NotesMember2023-12-310000885725bsx:March2029EuroSeniorNotesMember2024-03-310000885725bsx:March2029EuroSeniorNotesMember2023-12-310000885725bsx:June2030NotesMember2024-03-310000885725bsx:June2030NotesMember2023-12-310000885725bsx:March2031NotesMember2024-03-310000885725bsx:March2031NotesMember2023-12-310000885725bsx:March2032EuroSeniorNotesMember2024-03-310000885725bsx:March2032EuroSeniorNotesMember2023-12-310000885725bsx:March2034NotesMember2024-03-310000885725bsx:March2034NotesMember2023-12-310000885725bsx:November2035NotesMember2024-03-310000885725bsx:November2035NotesMember2023-12-310000885725bsx:March2039NotesMember2024-03-310000885725bsx:March2039NotesMember2023-12-310000885725bsx:January2040NotesMember2024-03-310000885725bsx:January2040NotesMember2023-12-310000885725bsx:March2049NotesMember2024-03-310000885725bsx:March2049NotesMember2023-12-310000885725us-gaap:SeniorNotesMember2024-03-310000885725us-gaap:SeniorNotesMember2023-12-310000885725us-gaap:CapitalLeaseObligationsMember2024-03-310000885725us-gaap:CapitalLeaseObligationsMember2023-12-310000885725bsx:CreditRatingAOrA3OrHigherMemberbsx:November2035NotesMember2024-03-310000885725us-gaap:RevolvingCreditFacilityMember2021-05-100000885725us-gaap:RevolvingCreditFacilityMember2021-05-102021-05-100000885725us-gaap:RevolvingCreditFacilityMember2024-03-310000885725us-gaap:RevolvingCreditFacilityMember2023-12-310000885725bsx:CurrentRequirementMember2024-03-310000885725bsx:ActualCovenantMember2024-03-310000885725bsx:RequirementAsOfDecember312021AndThroughRemainingTermOfFacilityMember2024-03-310000885725bsx:RequirementFourSucceedingQuartersFollowingQualifiedAcquisitionMember2024-03-310000885725bsx:RequirementfifthquarterfollowingqualifiedacquisitionMember2024-03-310000885725bsx:RequirementSixthQuarterFollowingQualifiedAcquisitionMember2024-03-310000885725bsx:RequirementSeventhQuarterFollowingQualifiedAcquisitionMember2024-03-310000885725bsx:RequirementEighthQuarterFollowingQualifiedAcquisitionAndThroughRemainingTermOfFacilityMember2024-03-310000885725us-gaap:CommercialPaperMember2023-12-310000885725us-gaap:CommercialPaperMember2024-03-310000885725bsx:TheOfferingAggregatePrincipalAmountMember2024-02-220000885725bsx:March2029EuroSeniorNotesMember2024-02-220000885725bsx:March2032EuroSeniorNotesMember2024-02-220000885725bsx:March2024NotesMember2024-03-310000885725bsx:AMSEuropeMember2024-01-012024-03-310000885725bsx:EuroDenominatedFactoringArrangementsMember2024-03-310000885725bsx:EuroDenominatedFactoringArrangementsMember2024-01-012024-03-310000885725bsx:EuroDenominatedFactoringArrangementsMember2023-12-310000885725bsx:EuroDenominatedFactoringArrangementsMember2023-01-012023-12-310000885725bsx:YenDenominatedFactoringArrangementsMember2024-03-310000885725bsx:YenDenominatedFactoringArrangementsMember2024-01-012024-03-310000885725bsx:YenDenominatedFactoringArrangementsMember2023-12-310000885725bsx:YenDenominatedFactoringArrangementsMember2023-01-012023-12-310000885725bsx:RenminbiDenominatedFactoringArrangementsMember2024-03-310000885725bsx:RenminbiDenominatedFactoringArrangementsMember2024-01-012024-03-310000885725bsx:RenminbiDenominatedFactoringArrangementsMember2023-12-310000885725bsx:RenminbiDenominatedFactoringArrangementsMember2023-01-012023-12-3100008857252023-01-312023-01-310000885725bsx:A550MCPSSeriesAMember2020-05-270000885725bsx:A550MCPSSeriesAMember2020-05-272020-05-270000885725bsx:A550MCPSSeriesAMember2023-06-010000885725us-gaap:EmployeeStockOptionMember2024-01-012024-03-310000885725us-gaap:EmployeeStockOptionMember2023-01-012023-03-310000885725bsx:A550MCPSSeriesAMember2024-01-012024-03-310000885725bsx:A550MCPSSeriesAMember2023-01-012023-03-3100008857252020-12-14bsx:reportablesegments0000885725bsx:MedsurgMember2023-01-012023-03-310000885725bsx:CardiovascularMember2023-01-012023-03-310000885725bsx:BSXReportableSegmentsMember2024-01-012024-03-310000885725bsx:BSXReportableSegmentsMember2023-01-012023-03-310000885725bsx:TotalAllocatedToReportableSegmentsMember2024-01-012024-03-310000885725bsx:TotalAllocatedToReportableSegmentsMember2023-01-012023-03-310000885725bsx:CorporateExpensesincludinghedgingactivitiesMember2024-01-012024-03-310000885725bsx:CorporateExpensesincludinghedgingactivitiesMember2023-01-012023-03-310000885725bsx:SpecialChargesMember2024-01-012024-03-310000885725bsx:SpecialChargesMember2023-01-012023-03-31bsx:business0000885725country:USbsx:GlobalEndoscopyEndoReportingUnitMember2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:GlobalEndoscopyEndoReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalEndoscopyEndoReportingUnitMember2024-01-012024-03-310000885725country:USbsx:GlobalEndoscopyEndoReportingUnitMember2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:GlobalEndoscopyEndoReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalEndoscopyEndoReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalUrologyandPelvicHealthReportingUnitMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:GlobalUrologyandPelvicHealthReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalUrologyandPelvicHealthReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalUrologyandPelvicHealthReportingUnitMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:GlobalUrologyandPelvicHealthReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalUrologyandPelvicHealthReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalNeuromodulationNmReportingUnitMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:GlobalNeuromodulationNmReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalNeuromodulationNmReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalNeuromodulationNmReportingUnitMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:GlobalNeuromodulationNmReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalNeuromodulationNmReportingUnitMember2023-01-012023-03-310000885725bsx:MedsurgMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:MedsurgMember2024-01-012024-03-310000885725bsx:MedsurgMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:MedsurgMember2023-01-012023-03-310000885725bsx:InterventionalCardiologyTherapiesMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:InterventionalCardiologyTherapiesMember2024-01-012024-03-310000885725bsx:InterventionalCardiologyTherapiesMember2024-01-012024-03-310000885725bsx:InterventionalCardiologyTherapiesMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:InterventionalCardiologyTherapiesMember2023-01-012023-03-310000885725bsx:InterventionalCardiologyTherapiesMember2023-01-012023-03-310000885725bsx:WatchmanMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:WatchmanMember2024-01-012024-03-310000885725bsx:WatchmanMember2024-01-012024-03-310000885725bsx:WatchmanMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:WatchmanMember2023-01-012023-03-310000885725bsx:WatchmanMember2023-01-012023-03-310000885725bsx:CardiacRhythmManagementMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:CardiacRhythmManagementMember2024-01-012024-03-310000885725bsx:CardiacRhythmManagementMember2024-01-012024-03-310000885725bsx:CardiacRhythmManagementMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:CardiacRhythmManagementMember2023-01-012023-03-310000885725bsx:CardiacRhythmManagementMember2023-01-012023-03-310000885725bsx:ElectrophysiologyEPMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:ElectrophysiologyEPMember2024-01-012024-03-310000885725bsx:ElectrophysiologyEPMember2024-01-012024-03-310000885725bsx:ElectrophysiologyEPMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:ElectrophysiologyEPMember2023-01-012023-03-310000885725bsx:ElectrophysiologyEPMember2023-01-012023-03-310000885725bsx:GlobalCardiologyReportingUnitMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:GlobalCardiologyReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalCardiologyReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalCardiologyReportingUnitMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:GlobalCardiologyReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalCardiologyReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalPeripheralInterventionsPiReportingUnitMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:GlobalPeripheralInterventionsPiReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalPeripheralInterventionsPiReportingUnitMember2024-01-012024-03-310000885725bsx:GlobalPeripheralInterventionsPiReportingUnitMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:GlobalPeripheralInterventionsPiReportingUnitMember2023-01-012023-03-310000885725bsx:GlobalPeripheralInterventionsPiReportingUnitMember2023-01-012023-03-310000885725bsx:CardiovascularMembercountry:US2024-01-012024-03-310000885725us-gaap:NonUsMemberbsx:CardiovascularMember2024-01-012024-03-310000885725bsx:CardiovascularMembercountry:US2023-01-012023-03-310000885725us-gaap:NonUsMemberbsx:CardiovascularMember2023-01-012023-03-310000885725country:US2024-01-012024-03-310000885725us-gaap:NonUsMember2024-01-012024-03-310000885725country:US2023-01-012023-03-310000885725us-gaap:NonUsMember2023-01-012023-03-310000885725bsx:BSXReportableSegmentsMembercountry:US2024-01-012024-03-310000885725bsx:BSXReportableSegmentsMembercountry:US2023-01-012023-03-310000885725bsx:BSXReportableSegmentsMemberus-gaap:EMEAMember2024-01-012024-03-310000885725bsx:BSXReportableSegmentsMemberus-gaap:EMEAMember2023-01-012023-03-310000885725bsx:BSXReportableSegmentsMembersrt:AsiaPacificMember2024-01-012024-03-310000885725bsx:BSXReportableSegmentsMembersrt:AsiaPacificMember2023-01-012023-03-310000885725bsx:LatinAmericaandCanadaMemberbsx:BSXReportableSegmentsMember2024-01-012024-03-310000885725bsx:LatinAmericaandCanadaMemberbsx:BSXReportableSegmentsMember2023-01-012023-03-310000885725bsx:EmergingMarketsMember2024-01-012024-03-310000885725bsx:EmergingMarketsMember2023-01-012023-03-310000885725us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000885725us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000885725us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000885725us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-03-310000885725us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-03-310000885725us-gaap:AccumulatedTranslationAdjustmentMember2024-03-310000885725us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-03-310000885725us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-03-310000885725us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310000885725us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310000885725us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-12-310000885725us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310000885725us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-01-012023-03-310000885725us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310000885725us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310000885725us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-03-310000885725bsx:VanceRBrownMember2024-01-012024-03-310000885725bsx:VanceRBrownMember2024-03-310000885725bsx:DanielBrennanMember2024-01-012024-03-310000885725bsx:DanielBrennanMemberbsx:DanielBrennanRuleTradingArrangementCommonStockMember2024-03-310000885725bsx:DanielBrennanMemberbsx:DanielBrennanRuleTradingArrangementStockOptionsMember2024-03-310000885725bsx:JonathanMonsonMember2024-01-012024-03-310000885725bsx:JonathanMonsonMemberbsx:JonathanMonsonRuleTradingArrangementCommonStockMember2024-03-310000885725bsx:JonathanMonsonMemberbsx:JonathanMonsonRuleTradingArrangementStockOptionsMember2024-03-310000885725bsx:JeffreyBMirvissMember2024-01-012024-03-310000885725bsx:JeffreyBMirvissMemberbsx:JeffreyB.MirvissRuleTradingArrangementCommonStockMember2024-03-310000885725bsx:JeffreyB.MirvissRuleTradingArrangementVestingOfPerformanceUnitsAndRestrictedUnitsMemberbsx:JeffreyBMirvissMember2024-03-310000885725bsx:JeffreyBMirvissMemberbsx:JeffreyB.MirvissRuleTradingArrangementStockOptionsMember2024-03-310000885725bsx:MichaelF.MahoneyMember2024-01-012024-03-310000885725bsx:MichaelF.MahoneyMemberbsx:MichaelF.MahoneyRuleTradingArrangementCommonStockMember2024-03-310000885725bsx:MichaelF.MahoneyMemberbsx:MichaelF.MahoneyRuleTradingArrangementStockOptionsMember2024-03-31

(Exact name of registrant as specified in its charter)

    300 Boston Scientific Way, Marlborough, Massachusetts                    01752-1234

        (Address of Principal Executive Offices)                         (Zip Code)

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

The number of shares outstanding of Common Stock, $0.01 par value per share, as of April 29, 2024 was 1,470,179,843.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

(SUPPLEMENTAL INFORMATION)

The accompanying unaudited consolidated financial statements of Boston Scientific Corporation have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and with the instructions to Form 10-Q and Article 10 of Regulation S-X, and they do not include all of the information and footnotes required by GAAP for complete financial statements. When used in this report, the terms, "we," "us," "our," and "the Company" mean Boston Scientific Corporation and its divisions and subsidiaries. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for fair presentation have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. Accordingly, our unaudited consolidated financial statements and footnotes thereto should be read in conjunction with our audited consolidated financial statements and footnotes thereto included in Item 8 of our most recent Annual Report on Form 10-K.

The accompanying unaudited consolidated financial statements include the accounts of the Company's wholly owned- subsidiaries and entities for which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.

Amounts reported in millions within this Quarterly Report on Form 10-Q are computed based on the amounts in thousands. As a result, the sum of the components may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.

We evaluate events occurring after the date of our accompanying unaudited consolidated balance sheet for potential recognition or disclosure within our financial statements. Those items requiring recognition in the financial statements have been recorded and disclosed accordingly.

Those items requiring disclosure (non-recognized subsequent events) in the financial statements have been disclosed accordingly. Refer to Note H – Commitments and Contingencies for further details.

Our accompanying unaudited consolidated financial statements include the operating results for acquired entities from the respective dates of acquisition. We have not presented supplemental pro forma financial information for completed acquisitions or divestitures given their results are not material to our accompanying unaudited consolidated financial statements. Further, transaction costs were immaterial to our accompanying unaudited consolidated financial statements and were expensed as incurred.

On January 8, 2024, we announced our entry into a definitive agreement to acquire 100 percent of Axonics, Inc. (Axonics), a publicly traded medical technology company primarily focused on the development and commercialization of devices to treat urinary and bowel dysfunction. The purchase price is $71.00 in cash per share, or approximately $3.670 billion for 100% of the fully diluted equity. On April 3, 2024, we and Axonics each received a request for additional information (Second Request) from the United States Federal Trade Commission (FTC) in connection with the FTC's review of the transaction. The issuance of the Second Request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act), until 30 days after both we and Axonics have substantially complied with the Second Request, unless the waiting period is extended voluntarily by the parties or terminated earlier by the FTC. We and Axonics expect to promptly respond to the Second Request and to continue to work cooperatively with the FTC in its review. The transaction is expected to be completed in the second half of 2024, subject to the expiration or termination of the waiting period under the HSR Act and the satisfaction (or waiver) of other customary closing conditions. The Axonics business will be integrated into our Urology division.

2023 Acquisition

On February 20, 2023, we completed the acquisition of a majority stake investment in Acotec Scientific Holdings Limited (Acotec), a publicly traded Chinese manufacturer of drug-coated balloons and other products used in the treatment of vascular and other diseases. We consolidated this majority stake investment in Acotec based on the conclusion we control the entity, and recorded a noncontrolling interest for the portion we do not own.

We acquired approximately 65 percent of the outstanding shares of Acotec, for an upfront cash payment of HK$20.00 per share, or $519 million at foreign currency exchange rates at closing. The Acotec portfolio complements our existing Peripheral Interventions portfolio.

We accounted for our majority stake investment in Acotec as a business combination in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations (FASB ASC Topic 805). The final purchase price was comprised of the amount presented below:

(1) Excludes approximately $140 million of cash on hand at the closing of the transaction

We recorded the assets acquired, liabilities assumed and the noncontrolling interest at their respective fair values as of the closing date of the transaction. The final purchase price allocation was comprised of the components presented below, with the excess of the purchase price over the fair value of net assets acquired recorded to goodwill:

The fair value of Acotec's noncontrolling interest was based on the publicly traded market value of the remaining 35 percent of the outstanding shares we did not acquire as of the transaction date and is presented in Stockholders' equity within our accompanying unaudited consolidated balance sheets. Goodwill was primarily established for Acotec due to opportunities for collaboration in research and development, manufacturing and commercial strategies and was not deductible for tax purposes.

We allocated a portion of the purchase price to the specific intangible asset categories as follows:

Contingent Consideration

Changes in the fair value of our contingent consideration liability during the first quarter of 2024 associated with prior period acquisitions were as follows:

The payments made during the first quarter of 2024 primarily related to our acquisition of Farapulse, Inc (Farapulse) following the achievement of revenue-based earnouts as a result of over-performance. 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, 2024, the fair value of such uncapped contingent consideration is estimated at $164 million. As of March 31, 2024, the maximum amount that we could be required to pay under our other contingent consideration arrangements (undiscounted) is approximately $275 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:

(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 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 March 31, 2024.

Strategic Investments

The aggregate carrying amount of our strategic investments was comprised of the following:

(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 unaudited consolidated statements of operations.

(2) Includes publicly-held securities and convertible notes measured at fair value with changes in fair value recognized in Other, net within our accompanying unaudited consolidated statements of operations.

These investments are classified as Other long-term assets within our accompanying unaudited consolidated balance sheets, in accordance with GAAP and our accounting policies.

As of March 31, 2024, the cost of our aggregated equity method investments exceeded our share of the underlying equity in net assets by $237 million, which represents amortizable intangible assets, in-process research and development (IPR&D), goodwill and deferred tax liabilities.

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:

The following represents a roll-forward of our goodwill balance by reportable segment:

We did not record any goodwill or intangible asset impairment charges in the first quarter of 2024 or 2023. Refer to Note A – Significant Accounting Policies 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 further discussion of our annual goodwill and intangible asset impairment testing.

We address market risk from changes in foreign currency exchange rates and interest rates through risk management programs which include the use of derivative and nonderivative financial instruments. We manage concentration of counterparty credit risk by limiting acceptable counterparties to major financial institutions with investment grade credit ratings, limiting the amount of credit exposure to individual counterparties and by actively monitoring counterparty credit ratings and the amount of individual credit exposure. We also employ master netting arrangements that limit the risk of counterparty non-payment on a particular settlement date to the net gain that would have otherwise been received from the counterparty. Although not completely eliminated, we do not consider the risk of counterparty default to be significant as a result of these protections. Further, none of our derivative instruments are subject to collateral or other security arrangements, nor do they contain provisions that are dependent on our credit ratings from any credit rating agency.

Currency Hedging Instruments

Our risk from changes in currency exchange rates consists primarily of monetary assets and liabilities; forecasted intercompany and third-party transactions; and net investments in certain subsidiaries. We manage currency exchange rate risk at a consolidated level to reduce the cost of hedging by taking advantage of offsetting transactions. We employ derivative and nonderivative instruments, primarily forward currency contracts, to reduce the risk to our earnings and cash flows associated with changes in currency exchange rates.

The success of our currency risk management program depends, in part, on forecasted transactions denominated primarily in euro, Chinese renminbi, Japanese yen, British pound sterling, Australian dollar and Swiss franc. We may experience unanticipated currency exchange gains or losses to the extent the actual activity is different than forecasted. In addition, changes in currency exchange rates related to any unhedged transactions may impact our earnings and cash flows.

Certain of our currency derivative instruments are designated as cash flow hedges under FASB ASC Topic 815, Derivatives and Hedging (FASB ASC Topic 815), and are intended to protect the U.S. dollar value of forecasted transactions. The gain or loss on a derivative instrument designated as a cash flow hedge is recorded in the Net change in derivative financial instruments component of Other comprehensive income (loss), net of tax (OCI) within our unaudited consolidated statements of comprehensive income (loss) until the underlying third-party transaction occurs. When the underlying third-party transaction occurs, we recognize the gain or loss in earnings within Cost of products sold within our unaudited consolidated statements of operations. In the event the hedging relationship is no longer effective, or if the occurrence of the hedged forecast transaction becomes no longer probable, we reclassify the gains or losses within Accumulated other comprehensive income (loss), net of tax (AOCI) to earnings at that time. The cash flows related to the derivative instruments designated as cash flow hedges are reported as operating activities within our unaudited consolidated statements of cash flows.

We also designate certain forward currency contracts as net investment hedges to hedge a portion of our net investments in certain of our entities with functional currencies denominated in the Chinese renminbi and Japanese yen. For these derivative instruments, we elected to use the spot method to assess hedge effectiveness. We also elected to exclude the spot-forward difference, referred to as the excluded component, from the assessment of hedge effectiveness and are amortizing this amount separately, as calculated at the date of designation, on a straight-line basis over the term of the currency forward contracts. As such, we defer recognition of foreign currency gains and losses within the Foreign currency translation adjustment (CTA) component of OCI, and we reclassify amortization of the excluded component from AOCI to current period earnings within Interest expense within our unaudited consolidated statements of operations.

We designate certain euro-denominated debt as net investment hedges to hedge a portion of our net investments in certain of our entities with functional currencies denominated in the euro. As of March 31, 2024 and December 31, 2023, we designated as a net investment hedge our €900 million in aggregate principal amount of 0.625% senior notes issued in November 2019 and due in 2027 (2027 Notes). For these nonderivative instruments, we defer recognition of the foreign currency remeasurement gains and losses within the CTA component of OCI. We reclassify these gains and losses to current period earnings within Other, net within our accompanying unaudited consolidated statements of operations only when the hedged item affects earnings, which would occur upon disposal or substantial liquidation of the underlying foreign subsidiary.

We also use forward currency contracts that are not part of designated hedging relationships as a part of our strategy to manage our exposure to currency exchange rate risk related to monetary assets and liabilities and related forecast transactions. These non-designated currency forward contracts have an original time to maturity consistent with the hedged currency transaction exposures, generally less than one year, and are marked-to-market with changes in fair value recorded to earnings within Other, net within our accompanying unaudited consolidated statements of operations.

Interest Rate Hedging Instruments

Our interest rate risk relates primarily to U.S. dollar and euro-denominated borrowings partially offset by U.S. dollar cash investments. We use interest rate derivative instruments to mitigate the risk to our earnings and cash flows associated with exposure to changes in interest rates. Under these agreements, we and the counterparty, at specified intervals, exchange the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. We designate these derivative instruments either as fair value or cash flow hedges in accordance with FASB ASC Topic 815.

We had no interest rate derivative instruments designated as cash flow hedges outstanding as of March 31, 2024 or December 31, 2023. In the event that we designate outstanding interest rate derivative instruments as cash flow hedges, we record the changes in the fair value of the derivatives within OCI until the underlying hedged transaction occurs.

We had no interest rate derivative instruments designated as fair value hedges outstanding as of March 31, 2024 or December 31, 2023. In the event that we designate outstanding interest rate derivative instruments as fair value hedges, we record the changes in the fair values of interest-rate derivatives designated as fair value hedges and of the underlying hedged debt instruments in Interest expense, which generally offset.

The following table presents the contractual amounts of our hedging instruments outstanding:

(1) Foreign currency-denominated debt is the €900 million debt principal associated with our 2027 Notes designated as a net investment hedge.

The remaining time to maturity as of March 31, 2024 is within 36 months for all forward currency contracts designated as cash flow hedges and generally less than one year for all non-designated forward currency contracts. The forward currency contracts designated as net investment hedges generally mature between one and two years. The euro-denominated debt principal designated as a net investment hedge has a contractual maturity of December 1, 2027.

The following presents the effect of our derivative and nonderivative instruments designated as cash flow and net investment hedges under FASB ASC Topic 815 within our accompanying unaudited consolidated statements of operations. Refer to Note M – Changes in Other Comprehensive Income for the total amounts relating to derivative and nonderivative instruments presented within our accompanying unaudited consolidated statements of comprehensive income (loss).

(1) In all periods presented in the table above, the pre-tax (gain) loss amounts reclassified from AOCI to earnings represent the effect of the hedging relationships on earnings.

(2) For our outstanding forward currency contracts designated as net investment hedges, the net gain or loss reclassified from AOCI to earnings as a reduction of Interest expense represents the straight-line amortization of the excluded component as calculated at the date of designation. This initial value of the excluded component has been excluded from the assessment of effectiveness in accordance with FASB ASC Topic 815. In the current and prior periods, we did not recognize any gains or losses on the components included in the assessment of hedge effectiveness in earnings.

(3) For our outstanding euro-denominated debt principal designated as a net investment hedge, the change in fair value attributable to changes in the spot rate is recorded in the CTA component of OCI. No amounts were reclassified from AOCI to current period earnings.

As of March 31, 2024, pre-tax net gains or losses for our derivative instruments designated, or previously designated, as cash flow and net investment hedges under FASB ASC Topic 815 that may be reclassified from AOCI to earnings within the next twelve months are presented below (in millions):

Net gains and losses on currency hedge contracts not designated as hedging instruments offset by net gains and losses from currency transaction exposures are presented below:

FASB ASC Topic 815 requires all derivative and nonderivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative and nonderivative instruments using the framework prescribed by FASB ASC Topic 820, Fair Value Measurements and Disclosures (FASB ASC Topic 820), and considering the estimated amount we would receive or pay to transfer these instruments at the reporting date with respect to current currency exchange rates, interest rates, the creditworthiness of the counterparty for unrealized gain positions and our own creditworthiness for unrealized loss positions. In certain instances, we may utilize financial models to measure fair value of our derivative and nonderivative instruments. In doing so, we use inputs that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, other observable inputs for the asset or liability and inputs derived principally from, or corroborated by, observable market data by correlation or other means. The following are the balances of our derivative and nonderivative assets and liabilities:

(1) We classify derivative and nonderivative assets and liabilities as current when the settlement date of the contract is one year or less.

(2) Foreign currency-denominated debt is the €900 million debt principal associated with our 2027 Notes designated as a net investment hedge. A portion of this notional is subject to de-designation and re-designation based on changes in the underlying hedged item.

Recurring Fair Value Measurements

On a recurring basis, we measure certain financial assets and financial liabilities at fair value based upon quoted market prices. Where quoted market prices or other observable inputs are not available, we apply valuation techniques to estimate fair value. FASB ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The category of a financial asset or a financial liability within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows:

•Level 1 – Inputs to the valuation methodology are quoted market prices for identical assets or liabilities.

•Level 2 – Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs.

•Level 3 – Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk.

Assets and liabilities measured at fair value on a recurring basis consist of the following:

Our investments in money market funds and time deposits are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. These investments are classified as Cash and cash equivalents or Other current assets within our accompanying unaudited consolidated balance sheets, in accordance with GAAP and our accounting policies. In addition to $1.979 billion invested in money market funds and time deposits as of March 31, 2024 and $454 million as of December 31, 2023, we held $384 million in interest-bearing and non-interest-bearing bank accounts as of March 31, 2024 and $411 million as of December 31, 2023.

Our recurring fair value measurements using Level 3 inputs include those related to our contingent consideration liability. Refer to Note B – Acquisitions and Strategic Investments for a discussion of the changes in the fair value of our contingent consideration liability. In addition, our recurring fair value measurements using Level 3 inputs related to our licensing arrangements, including the contractual right to receive future royalty payments related to the Zytiga™ Drug. We maintain a financial asset and associated liability for our licensing arrangements measured at fair value within our unaudited consolidated balance sheets in accordance with FASB ASC Topic 825, Financial Instruments. We elected the fair value option to measure the financial asset and associated liability as it provides for consistency and comparability of these financial instruments with others. Refer to Note D – Hedging Activities and Fair Value Measurements 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 licensing arrangements recognized within our accompanying unaudited consolidated balance sheets as of March 31, 2024 include the following significant unobservable inputs:

(1) Unobservable inputs relate to a single financial asset and liability. As such, unobservable inputs were not weighted by the relative fair value of the instruments. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.

Changes in the fair value of our licensing arrangements' financial asset were as follows:

Changes in the fair value of our licensing arrangements' financial liability were as follows:

Non-Recurring Fair Value Measurements

We hold certain assets and liabilities that are measured at fair value on a non-recurring basis in periods after initial recognition. The fair value of a measurement alternative investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. Refer to Note B – Acquisitions and Strategic Investments for a discussion of our strategic investments and Note C – Goodwill and Other Intangible Assets for a discussion of the fair values of our intangible assets including goodwill.

The fair value of our outstanding debt obligations, excluding finance leases, was $10.224 billion as of March 31, 2024 and $8.735 billion as of December 31, 2023. We determined fair value by using quoted market prices for our publicly registered senior notes, classified as Level 1 within the fair value hierarchy, and face value for commercial paper, term loans and credit facility borrowings outstanding. Refer to Note E – Contractual Obligations and Commitments for a discussion of our debt obligations.

We had total debt outstanding of $10.619 billion as of March 31, 2024 and $9.102 billion as of December 31, 2023, with current obligations of $1.085 billion as of March 31, 2024 and $531 million as of December 31, 2023. The debt maturity schedule for our long-term debt obligations is presented below: