Full Press Release Details
MARLBOROUGH, Mass. , Feb. 1, 2018 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX ) generated sales of $2.408 billion during the fourth quarter ended December 31, 2017. This represents growth of 9.9 percent on a reported basis and 8.1 percent on an operational basis (excludes the impact of changes in foreign currency exchange rates), all compared to the prior year period. The company reported a GAAP loss of $615 million or ($0.45) per share, primarily related to its estimate 1 of a one-time net income tax charge resulting from the enactment of the Tax Cuts and Jobs Act (TCJA), compared to GAAP earnings of $124 million or $0.09 per share a year ago, and achieved adjusted earnings per share of $0.34 for the period, compared to $0.30 a year ago.
For the year ended December 31, 2017, the company achieved full year sales of $9.048 billion , representing 7.9 percent revenue growth on a reported basis and 7.8 percent on an operational basis. The company reported GAAP earnings of $0.08 per share, compared to $0.25 in the prior year period and delivered full year adjusted earnings per share of $1.26 , compared to $1.11 in 2016.
"Our team delivered excellent fourth quarter and full year results, fueled by the strength of our diversified portfolio and global commercial execution," said Mike Mahoney , chairman and chief executive officer, Boston Scientific. "We look forward to building on our momentum and continuing to make a meaningful difference for patients in 2018."
Fourth quarter financial results and recent developments:
| 1. Preliminary as of January 29, 2018. GAAP net income and net income per share include the estimated impact of the TCJA enacted in December 2017. The final impact of the TCJA may differ from these estimates due to, among other things, additional guidance that may be issued by the U.S. Department of the Treasury, changes in interpretations and assumptions made by the company, and actions that the company may take. |
| 2. 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. |
| 3. Al-Khatib SM, Stevenson WG, Ackerman MJ, Bryant WJ, Callans DJ, Curtis AB, Deal BJ, Dickfeld T, Field ME, Fonarow GC, Gillis AM, Hlatky MA, Granger CB, Hammill SC, Joglar JA, Kay GN, Matlock DD, Myerburg RJ, Page RL, 2017 AHA/ACC/HRS Guideline for Management of Patients With Ventricular Arrhythmias and the Prevention of Sudden Cardiac Death, Heart Rhythm (2017), doi: 10.1016/j.hrthm.2017.10.036. |
| 4. CE Marked. The ACURATE neo valve system is not available for use or sale in the U.S. |
| 5. Under development. Not available for sale. |
Net sales for the fourth quarter:
| Three Months Ended | Change | ||||||||||||||||
| December 31, | As Reported | Less: Impact of Foreign Currency | Operational Basis | ||||||||||||||
| (in millions) | 2017 | 2016 | |||||||||||||||
| Interventional Cardiology | $ | 636 | $ | 585 | 8.8 | % | 1.9 | % | 6.9 | % | * | ||||||
| Peripheral Interventions | 277 | 255 | 8.4 | % | 1.7 | % | 6.7 | % | |||||||||
| Cardiovascular | 913 | 840 | 8.7 | % | 1.9 | % | 6.8 | % | |||||||||
| Cardiac Rhythm Management | 488 | 473 | 3.3 | % | 2.1 | % | 1.2 | % | |||||||||
| Electrophysiology | 77 | 63 | 20.7 | % | 3.0 | % | 17.7 | % | |||||||||
| Rhythm Management | 565 | 536 | 5.4 | % | 2.2 | % | 3.2 | % | |||||||||
| Endoscopy | 436 | 380 | 14.8 | % | 1.7 | % | 13.1 | % | * | ||||||||
| Urology and Pelvic Health | 308 | 274 | 12.7 | % | 1.4 | % | 11.3 | % | |||||||||
| Neuromodulation | 186 | 161 | 15.5 | % | 0.9 | % | 14.6 | % | |||||||||
| MedSurg | 931 | 815 | 14.2 | % | 1.4 | % | 12.8 | % | |||||||||
| Net Sales | $ | 2,408 | $ | 2,191 | 9.9 | % | 1.8 | % | 8.1 | % | |||||||
| *Interventional Cardiology grew 4.1% on an organic basis and Endoscopy grew 9.6% on an organic basis. | |||||||||||||||||
| Amounts may not add due to rounding. Growth rates are based on non-rounded amounts and may not recalculate precisely. | |||||||||||||||||
| Sales growth rates that exclude the impact of changes in foreign currency exchange rates and/or the impact of recent acquisitions with significant sales are not prepared in accordance with U.S. GAAP. |
Net sales for the full year:
| Twelve Months Ended | Change | ||||||||||||||||
| December 31, | As Reported | Less: Impact of Foreign Currency | Operational Basis | ||||||||||||||
| (in millions) | 2017 | 2016 | |||||||||||||||
| Interventional Cardiology | $ | 2,419 | $ | 2,281 | 6.1 | % | 0.0 | % | 6.1 | % | * | ||||||
| Peripheral Interventions | 1,081 | 1,011 | 6.8 | % | 0.2 | % | 6.6 | % | |||||||||
| Cardiovascular | 3,500 | 3,292 | 6.3 | % | 0.0 | % | 6.3 | % | |||||||||
| Cardiac Rhythm Management | 1,895 | 1,850 | 2.5 | % | 0.2 | % | 2.3 | % | |||||||||
| Electrophysiology | 278 | 243 | 14.5 | % | 0.1 | % | 14.4 | % | |||||||||
| Rhythm Management | 2,173 | 2,093 | 3.9 | % | 0.2 | % | 3.7 | % | |||||||||
| Endoscopy | 1,619 | 1,440 | 12.4 | % | 0.1 | % | 12.3 | % | * | ||||||||
| Urology and Pelvic Health | 1,124 | 1,005 | 11.8 | % | 0.2 | % | 11.6 | % | |||||||||
| Neuromodulation | 635 | 556 | 14.2 | % | 0.1 | % | 14.1 | % | |||||||||
| MedSurg | 3,377 | 3,001 | 12.5 | % | 0.1 | % | 12.4 | % | |||||||||
| Net Sales | $ | 9,048 | $ | 8,386 | 7.9 | % | 0.1 | % | 7.8 | % | |||||||
| *Interventional Cardiology grew 4.4% on an organic basis and Endoscopy grew 7.8% on an organic basis. | |||||||||||||||||
| Amounts may not add due to rounding. Growth rates are based on non-rounded amounts and may not recalculate precisely. | |||||||||||||||||
| Sales growth rates that exclude the impact of changes in foreign currency exchange rates and/or the impact of recent acquisitions with significant sales are not prepared in accordance with U.S. GAAP. |
Guidance for Full Year and First Quarter 2018
The company estimates revenue for the full year 2018 to be in a range of $9.650 to $9.800 billion , which versus the prior year period represents a growth range of approximately 7 to 8 percent on a reported basis and a growth range of approximately 5 to 6 percent on an organic basis excluding the impact of changes in foreign currency exchange rates and contribution of approximately 30 basis points from Symetis. The company estimates income on a GAAP basis in a range of $0.93 to $0.98 per share and adjusted earnings, excluding amortization expense, acquisition-related, and restructuring- and restructuring-related net credits (charges) in a range of $1.35 to $1.39 per share.
The company estimates sales for the first quarter of 2018 in a range of $2.320 to $2.350 billion , which versus the prior year period represents a growth range of approximately 7 to 9 percent on a reported basis and a growth range of approximately 4 to 5 percent on an organic basis excluding the impact of changes in foreign currency exchange rates and contribution of approximately 80 basis points from Symetis. The company estimates earnings on a GAAP basis in a range of $0.19 to $0.22 per share and adjusted earnings, excluding amortization expense, acquisition-related, and restructuring- and restructuring-related net credits (charges) in a range of $0.30 to $0.32 per share.
Conference Call Information
Boston Scientific management will be discussing these results with analysts on a conference call today at 7:30 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," "aiming" 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 2018, 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.
Note : Amounts reported in millions within this press release are computed based on the amounts in thousands. As a result, the sum of the components reported in millions 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 numbers in dollars. Prior year balances were subject to rounding.
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 press release.
| CONTACT: | ||||
| Media: | Kate Haranis | Investors: | Susie Lisa, CFA | |
| 508-683-6585 (office) | 508-683-5565 (office) | |||
| Media Relations | Investor Relations | |||
| Boston Scientific Corporation | Boston Scientific Corporation | |||
| [email protected] | [email protected] |
| 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 | 2017 | 2016 | 2017 | 2016 | |||||||||
| Net sales | $ | 2,408 | $ | 2,191 | $ | 9,048 | $ | 8,386 | |||||
| Cost of products sold | 673 | 619 | 2,593 | 2,424 | |||||||||
| Gross profit | 1,735 | 1,572 | 6,455 | 5,962 | |||||||||
| Operating expenses: | |||||||||||||
| Selling, general and administrative expenses | 886 | 831 | 3,294 | 3,099 | |||||||||
| Research and development expenses | 264 | 256 | 997 | 920 | |||||||||
| Royalty expense | 18 | 20 | 68 | 79 | |||||||||
| Amortization expense | 142 | 138 | 565 | 545 | |||||||||
| Intangible asset impairment charges | — | 4 | 4 | 11 | |||||||||
| Contingent consideration expense (benefit) | (3) | 5 | (80) | 29 | |||||||||
| Restructuring charges | 21 | 6 | 37 | 28 | |||||||||
| Litigation-related charges (credits) | 89 | 172 | 285 | 804 | |||||||||
| 1,416 | 1,432 | 5,170 | 5,515 | ||||||||||
| Operating income (loss) | 319 | 140 | 1,285 | 447 | |||||||||
| Other income (expense): | |||||||||||||
| Interest expense | (56) | (58) | (229) | (233) | |||||||||
| Other, net | (36) | 7 | (124) | (37) | |||||||||
| Income (loss) before income taxes | 227 | 89 | 933 | 177 | |||||||||
| Income tax expense (benefit) | 842 | (35) | 828 | (170) | |||||||||
| Net income (loss) | $ | (615) | $ | 124 | $ | 104 | $ | 347 | |||||
| Net income (loss) per common share - basic | $ | (0.45) | $ | 0.09 | $ | 0.08 | $ | 0.26 | |||||
| Net income (loss) per common share - assuming dilution | $ | (0.45) | $ | 0.09 | $ | 0.08 | $ | 0.25 | |||||
| Weighted-average shares outstanding | |||||||||||||
| Basic | 1,373.3 | 1,361.9 | 1,370.1 | 1,357.6 | |||||||||
| Assuming dilution | 1,373.3 | 1,381.2 | 1,392.7 | 1,377.2 |
| BOSTON SCIENTIFIC CORPORATION NON-GAAP NET INCOME AND NET INCOME PER COMMON SHARE RECONCILIATIONS (Unaudited) | |||||||||||||||||
| Three Months Ended December 31, 2017 | |||||||||||||||||
| in millions, except per share data | Pre-Tax | Tax Impact (a) | After-Tax | Impact per Share | |||||||||||||
| GAAP net income (loss) | $ | 227 | $ | (842) | $ | (615) | $ | (0.45) | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Amortization expense | 142 | (15) | 127 | 0.09 | * | ||||||||||||
| Acquisition-related net charges (credits) (b) | 35 | (6) | 29 | 0.02 | * | ||||||||||||
| Restructuring and restructuring-related net charges (credits) (c) | 34 | (8) | 26 | 0.02 | * | ||||||||||||
| Litigation-related net charges (credits) | 89 | (39) | 50 | 0.04 | * | ||||||||||||
| Investment impairment charges (d) | 3 | (1) | 2 | 0.00 | * | ||||||||||||
| TCJA net charges (e) | — | 861 | 861 | 0.62 | * | ||||||||||||
| Adjusted net income | $ | 530 | $ | (50) | $ | 480 | $ | 0.34 | |||||||||
| *Assumes dilution of 22.1 million shares for the three months ended December 31, 2017 for all or a portion of these non-GAAP adjustments. | |||||||||||||||||
| 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: | |||||||||||||||||
| Amortization expense | 138 | (14) | 124 | 0.09 | |||||||||||||
| Intangible asset impairment charges | 4 | — | 4 | 0.00 | |||||||||||||
| Acquisition-related net charges (credits) (f) | 41 | (7) | 34 | 0.02 | |||||||||||||
| Restructuring and restructuring-related net charges (credits) (g) | 23 | (4) | 19 | 0.01 | |||||||||||||
| Litigation-related net charges (credits) | 172 | (62) | 110 | 0.09 | |||||||||||||
| Adjusted net income | $ | 467 | $ | (52) | $ | 415 | $ | 0.30 | |||||||||
| (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, 2017, pre-tax acquisition-related net charges were $35 million, of which $5 million was recorded in cost of products sold, $24 million was recorded in selling, general and administrative expenses, $8 million was recorded in research and development, $3 million was recorded as a benefit to contingent consideration and $2 million of expense was recorded to other, net. (c) In the three months ended December 31, 2017, pre-tax restructuring charges were $21 million and pre-tax restructuring- related charges were $14 million, of which $10 million was recorded in cost of products sold and $4 million was recorded in selling, general and administrative expenses. (d) Investment impairment charges are recorded in other, net. (e) In the three months ended December 31, 2017, a $861 million tax expense was recorded as our estimated one-time net income tax charge resulting from the enactment of the TCJA. (f) 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. (g) 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. | |||||||||||||||||
| Year Ended December 31, 2017 | |||||||||||||||||
| in millions, except per share data | Pre-Tax | Tax Impact (a) | After-Tax | Impact per Share | |||||||||||||
| GAAP net income (loss) | $ | 933 | $ | (828) | $ | 104 | $ | 0.08 | |||||||||
| Non-GAAP adjustments: | |||||||||||||||||
| Amortization expense | 565 | (74) | 492 | 0.35 | |||||||||||||
| Intangible asset impairment charges | 4 | — | 4 | 0.00 | |||||||||||||
| Acquisition-related net charges (credits) (b) | 34 | (25) | 9 | 0.01 | |||||||||||||
| Restructuring and restructuring-related net charges (credits) (c) | 95 | (21) | 75 | 0.05 | |||||||||||||
| Litigation-related net charges (credits) | 285 | (113) | 172 | 0.12 | |||||||||||||
| Investment impairment charges (d) | 56 | (20) | 36 | 0.03 | |||||||||||||
| TCJA net charges (e) | — | 861 | 861 | 0.62 | |||||||||||||
| Adjusted net income | $ | 1,972 | $ | (220) | $ | 1,752 | $ | 1.26 | |||||||||
| 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: | |||||||||||||||||
| Amortization expense | 545 | (67) | 478 | 0.35 | |||||||||||||
| Intangible asset impairment charges | 11 | (1) | 10 | 0.01 | |||||||||||||
| Acquisition-related net charges (credits) (f) | 136 | (10) | 126 | 0.09 | |||||||||||||
| Restructuring and restructuring-related net charges (credits) (g) | 78 | (17) | 61 | 0.04 | |||||||||||||
| Litigation-related net charges (credits) | 804 | (292) | 512 | 0.37 | |||||||||||||
| Adjusted net income | $ | 1,751 | $ | (217) | $ | 1,534 | $ | 1.11 | |||||||||
| (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, 2017, pre-tax acquisition-related net charges were $34 million, of which $22 million was recorded in cost of products sold, $58 million was recorded in selling, general and administrative expenses, $23 million was recorded in research and development, $80 million was recorded as a benefit to contingent consideration and $11 million of expense was recorded in other, net. (c) In the twelve months ended December 31, 2017, pre-tax restructuring charges were $37 million and pre-tax restructuring- related charges were $58 million, of which $45 million was recorded in cost of products sold and $13 million was recorded in selling, general and administrative expenses. (d) Investment impairment charges are recorded in other, net. (e) In the twelve months ended December 31, 2017, a $861 million tax expense was recorded as our estimated one-time net income tax charge resulting from the enactment of the TCJA. (f) 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. (g) 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. |
| BOSTON SCIENTIFIC CORPORATION CARDIAC RHYTHM MANAGEMENT (CRM) SALES BY COMPONENT (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| (in millions) | December 31, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||
| Defibrillator systems | $ | 346 | $ | 319 | $ | 1,305 | $ | 1,274 | ||||||||
| Pacemaker systems | 143 | 154 | 590 | 576 | ||||||||||||
| CRM products | $ | 488 | $ | 473 | $ | 1,895 | $ | 1,850 |
| BOSTON SCIENTIFIC CORPORATION SEGMENT, REGIONAL AND BUSINESS NET SALES (Unaudited) | ||||||||
| Q4 2017 Segment Net Sales as compared to Q4 2016 | ||||||||
| MedSurg | Cardiovascular | Rhythm Management | Total BSC | |||||
| Percentage change in net sales, as reported | 14.2 | % | 8.7 | % | 5.4 | % | 9.9 | % |
| Less: Impact of foreign currency fluctuations | 1.4 | % | 1.9 | % | 2.2 | % | 1.8 | % |
| Percentage change in net sales, operational | 12.8 | % | 6.8 | % | 3.2 | % | 8.1 | % |
| Less: Impact of significant acquisitions | 1.6 | % | 1.9 | % | — | % | 1.3 | % |
| Percentage change in net sales, organic | 11.2 | % | 4.9 | % | 3.2 | % | 6.8 | % |
| Q4 2017 Regional Net Sales as compared to Q4 2016 | ||||||||
| U.S. | Europe | AMEA | Emerging Markets | |||||
| Percentage change in net sales, as reported | 8.5 | % | 17.1 | % | 7.7 | % | 15.4 | % |
| Less: Impact of foreign currency fluctuations | — | % | 9.1 | % | — | % | 2.3 | % |
| Percentage change in net sales, operational | 8.5 | % | 8.0 | % | 7.7 | % | 13.1 | % |
| Less: Impact of significant acquisitions | 1.0 | % | 3.6 | % | 0.1 | % | 0.2 | % |
| Percentage change in net sales, organic | 7.5 | % | 4.4 | % | 7.6 | % | 12.9 | % |
| Q4 2017 Endoscopy and Interventional Cardiology Net Sales as compared to Q4 2016 | ||||||||
| Endoscopy | Interventional Cardiology | |||||||
| Percentage change in net sales, as reported | 14.8 | % | 8.8 | % | ||||
| Less: Impact of foreign currency fluctuations | 1.7 | % | 1.9 | % | ||||
| Percentage change in net sales, operational | 13.1 | % | 6.9 | % | ||||
| Less: Impact of significant acquisitions | 3.5 | % | 2.8 | % | ||||
| Percentage change in net sales, organic | 9.6 | % | 4.1 | % | ||||
| YTD 2017 Endoscopy and Interventional Cardiology Net Sales as compared to YTD 2016 | ||||||||
| Endoscopy | Interventional Cardiology | |||||||
| Percentage change in net sales, as reported | 12.4 | % | 6.1 | % | ||||
| Less: Impact of foreign currency fluctuations | 0.1 | % | — | % | ||||
| Percentage change in net sales, operational | 12.3 | % | 6.1 | % | ||||
| Less: Impact of significant acquisitions | 4.5 | % | 1.7 | % | ||||
| Percentage change in net sales, organic | 7.8 | % | 4.4 | % |
| BOSTON SCIENTIFIC CORPORATION ESTIMATED REVENUE NON-GAAP GROWTH RATES AND NON-GAAP NET INCOME PER COMMON SHARE RECONCILIATIONS (Unaudited) | |||||||||
| Q1 and Full Year 2018 Estimated Revenue Growth Rates | |||||||||
| Q1 2018 Estimate | Full Year 2018 Estimate | ||||||||
| (Low) | (High) | (Low) | (High) | ||||||
| Estimated GAAP sales growth | 7 | % | 9 | % | 7 | % | 8 | % | |
| Less: Estimated impact of foreign currency fluctuations and significant acquisitions | 3 | % | 4 | % | 2 | % | 2 | % | |
| Estimated sales growth, organic* | 4 | % | 5 | % | 5 | % | 6 | % | |
| *Excludes contribution of approximately 80 basis points for the first quarter and 30 basis points for the full year from Symetis. |
| Q1 and Full Year 2018 Earnings per Share Guidance | |||||||||||||
| Q1 2018 Estimate | Full Year 2018 Estimate | ||||||||||||
| (Low) | (High) | (Low) | (High) | ||||||||||
| GAAP earnings per share | $ | 0.19 | $ | 0.22 | $ | 0.93 | $ | 0.98 | |||||
| Estimated acquisition-related net charges | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||
| Estimated restructuring and restructuring-related net charges | 0.02 | 0.01 | 0.07 | 0.06 | |||||||||
| Estimated amortization expense | 0.08 | 0.08 | 0.33 | 0.33 | |||||||||
| Adjusted earnings per share | $ | 0.30 | $ | 0.32 | $ | 1.35 | $ | 1.39 |
Use of Non-GAAP Financial Measures
To supplement our consolidated 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, operational net sales, which exclude the impact of changes in foreign currency exchange rates and organic net sales, which exclude the impact of changes in foreign currency exchange rates and 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 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.
To calculate adjusted net income (earnings) and adjusted net income (earnings) per share we exclude certain charges (credits) from GAAP net income, including amortization expense, intangible asset impairment charges, acquisition-related net charges (credits), restructuring and restructuring-related net charges (credits), litigation-related net charges (credits), certain investment impairment charges and the estimated one-time net income tax charge resulting from the enactment of the TCJA in December 2017 . Please refer to Part I, Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Quarterly Report filed on Form 10-Q with the Securities and Exchange Commission and Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our most recent Annual Report filed on Form 10-K for an explanation of each of these adjustments and the reasons for excluding each item. An explanation of adjustments not previously described in the aforementioned filings are included below:
The GAAP financial measures most directly comparable to adjusted net income and adjusted net income per share is GAAP net income and GAAP net income per share.
To calculate operational net sales, which 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. To calculate organic net sales, we remove the impact of recent acquisitions with significant sales from operational net sales. The GAAP financial measure most directly comparable to operational net sales and organic net sales growth rate percentages 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.
SOURCE Boston Scientific Corporation