XML 40 R33.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Fair Value Measurements (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] |
Assets and liabilities measured at fair value on a recurring basis | Changes in the fair value of our licensing arrangements' financial asset was as follows:
(in millions) |
Balance as of December 31, 2018 | $ | — |
Amounts recorded related to current year acquisition | 567 |
Proceeds from royalty rights | (52 | )
Fair value adjustment (expense) benefit | 3 |
Balance as of December 31, 2019 | $ | 518 |
Changes in the fair value of our licensing arrangements' financial liability was as follows:
(in millions) |
Balance as of December 31, 2018 | $ | — |
Amounts recorded related to current year acquisition | 315 |
Proceeds from secured borrowings relating to royalty arrangements | 256 |
Balance as of December 31, 2019 | $ | 571 |
The recurring Level 3 fair value measurements of our licensing arrangements recognized in our consolidated balance sheets as of December 31, 2019 include the following significant unobservable inputs:
Licensing Arrangements | Fair Value as of December 31, 2019 | Valuation Technique | Unobservable Input | Range | Weighted Average (1)
Financial Asset | $518 million | Discounted Cash Flow | Discount Rate | 11 | % | - | 19% | 19%
Projected Year of Payment | 2020 |  | - | 2028 | 2024
Financial Liability | $571 million | Discounted Cash Flow | Discount Rate | 19% | 19%
Projected Year of Payment | 2020 |  | - | 2027 | 2023
(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. Assets and liabilities measured at fair value on a recurring basis consist of the following:
| As of
| December 31, 2019 |  | December 31, 2018
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market and government funds | $ | 50 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |  |  | $ | 13 |  |  | $ | — |  |  | $ | — |  |  | $ | 13 |
Publicly-held securities | 1 |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |
Hedging instruments | — |  |  | 321 |  |  | — |  |  | 321 |  |  | — |  |  | 304 |  |  | — |  |  | 304 |
Licensing arrangements | — |  |  | — |  |  | 518 |  |  | 518 |  |  | — |  |  | — |  |  | — |  |  | — |
| $ | 51 |  |  | $ | 321 |  |  | $ | 518 |  |  | $ | 890 |  |  | $ | 14 |  |  | $ | 304 |  |  | $ | — |  |  | $ | 318 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedging instruments | $ | — |  |  | $ | 1,037 |  |  | $ | — |  |  | $ | 1,037 |  |  | $ | — |  |  | $ | 80 |  |  | $ | — |  |  | $ | 80 |
Contingent consideration liability | — |  |  | — |  |  | 354 |  |  | 354 |  |  | — |  |  | — |  |  | 347 |  |  | 347 |
Licensing arrangements | — |  |  | — |  |  | 571 |  |  | 571 |  |  | — |  |  | — |  |  | — |  |  | — |
| $ | — |  |  | $ | 1,037 |  |  | $ | 925 |  |  | $ | 1,963 |  |  | $ | — |  |  | $ | 80 |  |  | $ | 347 |  |  | $ | 427 |
Classification of derivative assets and liabilities within level 2 | The following are the balances of our derivative and nonderivative assets and liabilities:
(in millions) |  | Location on Consolidated Balance Sheets (1) |  | As of December 31,
| 2019 |  | 2018
Derivative and Nonderivative Assets: |  |  |  |  |  |
Designated Hedging Instruments |  |  |  |  |  |
Forward currency contracts |  | Other current assets |  | $ | 72 |  |  | $ | 55 |
Forward currency contracts |  | Other long-term assets |  | 216 |  |  | 183 |
|  |  |  | 288 |  |  | 237 |
Non-Designated Hedging Instruments |  |  |  |  |  |
Forward currency contracts |  | Other current assets |  | 33 |  |  | 67 |
Total Derivative and Nonderivative Assets |  |  |  | $ | 321 |  |  | $ | 304 |
Derivative and Nonderivative Liabilities: |  |  |  |  |  |
Designated Hedging Instruments |  |  |  |  |  |
Forward currency contracts |  | Other current liabilities |  | $ | 3 |  |  | $ | 2 |
Forward currency contracts |  | Other long-term liabilities |  | 8 |  |  | 3 |
Foreign currency-denominated debt |  | Other long-term liabilities |  | 998 |  |  | — |
Interest rate contracts |  | Other current liabilities |  | — |  |  | 44 |
|  |  |  | 1,009 |  |  | 49 |
Non-Designated Hedging Instruments |  |  |  |  |  |
Forward currency contracts |  | Other current liabilities |  | 29 |  |  | 31 |
Total Derivative and Nonderivative Liabilities |  | $ | 1,037 |  |  | $ | 80 |
(1) We classify derivative and nonderivative assets and liabilities as current when the settlement date of the contract is one year or less.
Derivative Instruments, Gain (Loss) that may be Reclassified from AOCI to Earnings within Twelve Months [Table Text Block] | As of December 31, 2019, 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):
Designated Hedging Instrument |  | FASB ASC Topic 815 Designation |  | Location on Consolidated Statements of Operations |  | Amount of Pre-Tax Gain (Loss) that may be Reclassified to Earnings
Forward currency contracts |  | Cash flow hedge |  | Cost of products sold |  | $ | 77 |
Forward currency contracts |  | Net investment hedge |  | Interest expense |  | 24 |
Interest rate derivative contracts |  | Cash flow hedge |  | Interest expense |  | (5 | )
Gains (losses) recognized in earnings for derivatives designed as hedging instruments | The following presents the effect of our derivative and nonderivative instruments designated as cash flow and net investment hedges under FASB ASC Topic 815 on our accompanying consolidated statements of operations. Refer to Note P – Changes in Other Comprehensive Income for the total amounts relating to derivative and nonderivative instruments presented within the consolidated statements of comprehensive income (loss).
| Effect of Hedging Relationships on Accumulated Other Comprehensive Income
| Amount Recognized in OCI on Hedges |  | Consolidated Statements of Operations (1) |  | Amount Reclassified from AOCI into Earnings
| Pre-Tax Gain (Loss) | Tax Benefit (Expense) | Gain (Loss) Net of Tax |  | Location of Amount Reclassified | Total Amount of Line Item Presented |  | Pre-Tax (Gain) Loss | Tax (Benefit) Expense | (Gain) Loss Net of Tax
Year Ended December 31, 2019
Forward currency contracts |  |  |  |  |  |  |
Cash flow hedges | $ | 150 |  | $ | (34 | ) | $ | 117 |  |  | Cost of products sold | $ | 3,116 |  |  | $ | (73 | ) | $ | 16 |  | $ | (56 | )
Net investment hedges (2) | 68 |  | (15 | ) | 53 |  |  | Interest expense | 473 |  |  | (43 | ) | 10 |  | (33 | )
Foreign currency-denominated debt |  |  |  |  |  |  |
Net investment hedges | (14 | ) | 3 |  | (11 | ) |  | Interest expense | 473 |  |  | — |  | — |  | — |
Interest rate derivative contracts |  |  |  |  |  |  |
Cash flow hedges | — |  | — |  | — |  |  | Interest expense | 473 |  |  | 3 |  | (1 | ) | 2 |
Year Ended December 31, 2018
Forward currency contracts |  |  |  |  |  |  |
Cash flow hedges | $ | 167 |  | $ | (38 | ) | $ | 130 |  |  | Cost of products sold | $ | 2,813 |  |  | $ | 19 |  | $ | (4 | ) | $ | 15 |
Net investment hedges (2) | 56 |  | (13 | ) | 43 |  |  | Interest expense | 241 |  |  | (27 | ) | 6 |  | (21 | )
Interest rate derivative contracts |  |  |  |  |  |  |
Cash flow hedges | (44 | ) | 10 |  | (34 | ) |  | Interest expense | 241 |  |  | (1 | ) | — |  | (1 | )
Year Ended December 31, 2017
Forward currency contracts |  |  |  |  |  |  |
Cash flow hedges | $ | (101 | ) | $ | 37 |  | $ | (65 | ) |  | Cost of products sold | $ | 2,593 |  |  | $ | (64 | ) | $ | 23 |  | $ | (41 | )
Interest rate derivative contracts |  |  |  |  |  |  |
Cash flow hedges | — |  | — |  | — |  |  | Interest expense | 229 |  |  | (1 | ) | — |  | (1 | )
(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. All other amounts included in earnings related to hedging relationships were immaterial.
(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 period, we did not recognize any gains or losses on the components included in the assessment of hedge effectiveness in earnings.
Schedule of Derivative Instruments [Table Text Block] | The following table presents the contractual amounts of our hedging instruments outstanding:
(in millions) |  | FASB ASC Topic 815 Designation |  | As of December 31,
| 2019 |  | 2018
Forward currency contracts |  | Cash flow hedge |  | $ | 3,891 |  |  | $ | 3,962 |
Forward currency contracts |  | Net investment hedge |  | 953 |  |  | 1,483 |
Foreign currency-denominated debt(1) |  | Net investment hedge |  | 997 |  |  | — |
Forward currency contracts |  | Non-designated |  | 4,377 |  |  | 5,880 |
Interest rate derivative contracts |  | Cash flow hedge |  | — |  |  | 1,000 |
Total Notional Outstanding |  |  |  | $ | 10,218 |  |  | $ | 12,326 |
(1) | The €900 million (approximately $1.000 billion) debt principal is a nonderivative instrument designated as a net investment hedge of our net investments in certain of our Euro functional subsidiaries.
Net foreign currency gain (loss) [Table Text Block] | 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:
(in millions) |  | Location on Consolidated Statements of Operations |  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Net gain (loss) on currency hedge contracts |  | Other, net |  | $ | (343 | ) |  | $ | 41 |  |  | $ | (25 | )
Net gain (loss) on currency transaction exposures |  | Other, net |  | (15 | ) |  | (30 | ) |  | 10 |
Net currency exchange gain (loss) |  |  |  | $ | (358 | ) |  | $ | 11 |  |  | $ | (15 | )

X
- Definition Derivative Instruments, Gain (Loss) that may be Reclassified from AOCI to Earnings within Twelve Months [Table Text Block] + References No definition available. + Details
Name: | bsx_DerivativeInstrumentsGainLossthatmaybeReclassifiedfromAOCItoEarningswithinTwelveMonthsTableTextBlock
Namespace Prefix: | bsx_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition [Table Text Block] for Net foreign currency gain (loss) [Table] + References No definition available. + Details
Name: | bsx_NetForeignCurrencyGainLossTableTextBlock
Namespace Prefix: | bsx_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=109250915&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration