BOSTON SCIENTIFIC CORPBSX
BOSTON SCIENTIFIC CORP Segments Disclosure
NOTE M – SEGMENT REPORTING
We aggregate our core businesses into two reportable segments: MedSurg and Cardiovascular, each of which generates revenues from the sale of medical devices. In accordance with FASB ASC Topic 280, Segment Reporting, we identified our reportable segments based on the nature of our products, production processes, type of customer, selling and distribution methods and regulatory environment, as well as the economic characteristics of each of our operating segments. Our chief operating decision maker (CODM) is our President and Chief Executive Officer.
We measure and evaluate our reportable segments based on their respective net sales, cost of goods sold, selling, general and administrative expenses, research and development expenses, operating income, excluding intersegment profits, and operating income as a percentage of net sales, all based on internally-derived standard currency exchange rates to exclude the impact of foreign currency, which may be updated from year to year. We exclude from segment expenses and segment operating income certain corporate-related expenses and certain transactions or adjustments that our CODM considers to be non-operational, such as amounts related to amortization expense, goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and European Union (EU) Medical Device Regulation (MDR) implementation costs. Although we exclude these amounts from segment expenses and segment operating income, they are included in reported Income (loss) before income taxes within our consolidated statements of operations and are included in the reconciliation below. The CODM uses segment operating income in the budget and forecasting process and to monitor budget versus actual results, which are used in assessing the performance of the reportable segments and to allocate resources across our reportable segments. Refer to Note N – Revenue for net sales by reportable segment presented in accordance with GAAP.
A reconciliation of sales and operating income for the reportable segments to the applicable line items within our accompanying consolidated statements of operations is as follows (in millions, except percentages). Prior period amounts have been restated at constant currency to conform to the current year presentation.
| Year Ended December 31, 2024 | |||||||||||||||||
| MedSurg | % of net sales | Cardiovascular | % of net sales | Total | |||||||||||||
| Net sales of reportable segments | $ | 5,973 | $ | 10,711 | $ | 16,683 | |||||||||||
| Impact of foreign currency fluctuations | 64 | ||||||||||||||||
| Total net sales | 16,747 | ||||||||||||||||
| Segment expenses: | |||||||||||||||||
| Cost of products sold | 1,649 | 27.6 | % | 3,404 | 31.8 | % | 5,053 | ||||||||||
| Selling, general and administrative expenses | 1,801 | 30.2 | % | 3,166 | 29.6 | % | 4,967 | ||||||||||
| Research and development expenses | 462 | 7.7 | % | 975 | 9.1 | % | 1,437 | ||||||||||
Other segment items(1) | 14 | 0.2 | % | 19 | 0.2 | % | 33 | ||||||||||
Segment operating income(2) | 2,046 | 34.3 | % | 3,147 | 29.4 | % | 5,193 | ||||||||||
| Unallocated amounts: | |||||||||||||||||
| Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments | (663) | ||||||||||||||||
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU MDR implementation costs | (1,070) | ||||||||||||||||
| Amortization expense | (856) | ||||||||||||||||
| Operating income (loss) | 2,603 | ||||||||||||||||
| Other income (expense), net | (321) | ||||||||||||||||
| Income (loss) before income taxes | $ | 2,282 | |||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| MedSurg | % of net sales | Cardiovascular | % of net sales | Total | |||||||||||||
| Net sales of reportable segments | $ | 5,378 | $ | 8,714 | $ | 14,091 | |||||||||||
| Impact of foreign currency fluctuations | 149 | ||||||||||||||||
| Total net sales | 14,240 | ||||||||||||||||
| Segment expenses: | |||||||||||||||||
| Cost of products sold | 1,470 | 27.3 | % | 2,805 | 32.2 | % | 4,276 | ||||||||||
| Selling, general and administrative expenses | 1,626 | 30.2 | % | 2,749 | 31.5 | % | 4,375 | ||||||||||
| Research and development expenses | 427 | 7.9 | % | 855 | 9.8 | % | 1,282 | ||||||||||
Other segment items(1) | 20 | 0.4 | % | 23 | 0.3 | % | 43 | ||||||||||
Segment operating income(2) | 1,834 | 34.1 | % | 2,281 | 26.2 | % | 4,115 | ||||||||||
| Unallocated amounts: | |||||||||||||||||
| Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments | (377) | ||||||||||||||||
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU MDR implementation costs | (567) | ||||||||||||||||
| Amortization expense | (828) | ||||||||||||||||
| Operating income (loss) | 2,343 | ||||||||||||||||
| Other income (expense), net | (358) | ||||||||||||||||
| Income (loss) before income taxes | $ | 1,985 | |||||||||||||||
| Year Ended December 31, 2022 | |||||||||||||||||
| MedSurg | % of net sales | Cardiovascular | % of net sales | Total | |||||||||||||
| Net sales of reportable segments | $ | 4,855 | $ | 7,679 | $ | 12,535 | |||||||||||
Other(3) | (60) | ||||||||||||||||
| Impact of foreign currency fluctuations | 208 | ||||||||||||||||
| Total net sales | 12,682 | ||||||||||||||||
| Segment expenses: | |||||||||||||||||
| Cost of products sold | 1,401 | 28.9 | % | 2,637 | 34.3 | % | 4,038 | ||||||||||
| Selling, general and administrative expenses | 1,510 | 31.1 | % | 2,454 | 32.0 | % | 3,965 | ||||||||||
| Research and development expenses | 432 | 8.9 | % | 782 | 10.2 | % | 1,214 | ||||||||||
Other segment items(1) | 23 | 0.5 | % | 22 | 0.3 | % | 45 | ||||||||||
Segment operating income(2) | 1,489 | 30.7 | % | 1,784 | 23.2 | % | 3,272 | ||||||||||
| Unallocated amounts: | |||||||||||||||||
| Corporate expenses, including hedging activities and impact of foreign currency fluctuations on operating income of reportable segments | 29 | ||||||||||||||||
Goodwill and other intangible asset impairment charges, acquisition/divestiture-related net charges (credits), restructuring and restructuring-related net charges (credits), certain litigation-related net charges (credits) and EU MDR implementation costs | (789) | ||||||||||||||||
| Amortization expense | (803) | ||||||||||||||||
Other(3) | (60) | ||||||||||||||||
| Operating income (loss) | 1,649 | ||||||||||||||||
| Other income (expense), net | (508) | ||||||||||||||||
| Income (loss) before income taxes | $ | 1,141 | |||||||||||||||
(1) Includes royalty expense.
(2) Calculated as Net sales of reportable segments less Segment expenses.
(3) In 2022, amounts reflect sales reserves established for Italian government payback provisions, which are being disputed in the Italian court system. These amounts were not allocated to our reportable segments or considered by our CODM for resource allocation and decision-making purposes.
| Year Ended December 31, | |||||||||||||||||
Depreciation expense (in millions) | 2024 | 2023 | 2022 | ||||||||||||||
| MedSurg | $ | 110 | $ | 103 | $ | 88 | |||||||||||
| Cardiovascular | 302 | 263 | 245 | ||||||||||||||
| Consolidated depreciation expense | $ | 412 | $ | 367 | $ | 333 | |||||||||||
| As of December 31, | |||||||||||
Total assets (in millions) | 2024 | 2023 | |||||||||
| MedSurg | $ | 3,093 | $ | 2,888 | |||||||
| Cardiovascular | 7,084 | 5,988 | |||||||||
| Total assets of reportable segments | 10,177 | 8,876 | |||||||||
| Goodwill | 17,089 | 14,387 | |||||||||
| Other intangible assets, net | 6,684 | 6,003 | |||||||||
| All other corporate assets | 5,446 | 5,869 | |||||||||
| $ | 39,395 | $ | 35,136 | ||||||||
| As of December 31, | |||||||||||
Long-lived assets (in millions) | 2024 | 2023 | |||||||||
| U.S. | $ | 1,461 | $ | 1,300 | |||||||
| Ireland | 631 | 598 | |||||||||
| Costa Rica | 530 | 373 | |||||||||
| Other countries | 672 | 587 | |||||||||
| Property, plant and equipment, net | 3,294 | 2,859 | |||||||||
| Goodwill | 17,089 | 14,387 | |||||||||
| Other intangible assets, net | 6,684 | 6,003 | |||||||||
Operating lease right-of-use assets in Other long-term assets | 449 | 439 | |||||||||
| $ | 27,516 | $ | 23,688 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 18, 2025 | Showing above |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.