EX-12 2 exhibit12-ratioofearningst.htm EXHIBIT 12 - FY2016 Exhibit
EXHIBIT 12


BOSTON SCIENTIFIC CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (unaudited)

 
Year Ended December 31,
in millions
2016
2015
2014
2013
2012
Fixed charges
 
 
 
 
 
Interest expense and amortization of debt issuance costs (a)
$
233

$
284

$
216

$
324

$
261

Interest portion of rental expense
27

25

25

25

27

Total fixed charges
$
260

$
309

$
241

$
349

$
288

 
 
 
 
 
 
Earnings
 
 
 
 
 
Income (loss) before income taxes
$
177

$
(650
)
$
(509
)
$
(223
)
$
(4,107
)
Fixed charges, per above
260

309

241

349

288

Total earnings (deficit), adjusted
$
437

$
(341
)
$
(268
)
$
126

$
(3,819
)
 
 
 
 
 

Ratio of earnings to fixed charges (b)
1.68





0.36



 
 
 

 


a) The interest expense included in fixed charges above reflects only interest on third party indebtedness and excludes any interest expense accrued on uncertain tax positions, as permitted by Financial Accounting Standards Board Accounting Standards Codification™ Topic 740, Income Taxes.

b) Earnings were deficient by $341 million in 2015, $268 million in 2014, and $3.819 billion in 2012.


The ratio of earnings to fixed charges for the year ended December 31, 2016, is not necessarily indicative of results that may be expected in future years.  The data above include certain charges (credits) recorded in conjunction with goodwill and intangible asset impairments, acquisitions, divestitures, restructuring-related activities, pension termination charges, debt extinguishment charges, amortization, and/or litigation-related charges. The ratios above should be read in conjunction with our consolidated financial statements, including the notes thereto, included in Item 8 of this Annual Report on Form 10-K.