Boston Scientific estimates $861M tax bill on foreign earnings
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Medical device maker Boston Scientific's Marlborough office.
Marlborough medical device maker Boston Scientific is reporting a fourth-quarter loss of $615 million, primarily due to an $861-million tax charge to bring the company’s foreign earnings back to the U.S.
The charge, a one-time tax to repatriate foreign earnings as part of the Trump Administration’s signature tax bill, is a max of 15.5 percent. The company is estimating an income tax charge of $861 million.
The law also reduced the U.S. corporate tax from 35 percent to 21 percent and introduces a territorial-based system for multinational companies like Boston Scientific, resulting in an overall reduced tax rate.
That tax reduced per share earnings by 45 cents.
Last year’s fourth quarter saw net income of $124 million and a 9 cent per share increase.
The company reported its revenue increased by nearly 10 percent to $2.4 billion, and revenue grew in all segments and regions, the company said.
The company’s medical surgery unit saw revenue grow by 14.2 percent, cardiovascular grew by 8.7 percent and rhythm management grew by 5.4 percent.
The company saw big gains in Europe with an 17.1 percent revenue jump.
"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, the company’s chairman and CEO. "We look forward to building on our momentum and continuing to make a meaningful difference for patients in 2018."
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