Summary
Boston Scientific Corporation (BSX) filed an 8-K on April 24, 2013, reporting financial results for the first quarter ended March 31, 2013, and a significant goodwill impairment charge. The company announced a non-cash goodwill impairment charge of approximately $422 million related to its global Cardiac Rhythm Management (CRM) reporting unit. This charge is a result of a business reorganization from geographic regions to global business units, effective January 1, 2013, which necessitated interim goodwill impairment testing. While the company also announced its Q1 2013 financial results, the details of these results are contained in a press release furnished as an exhibit. Investors should note that the goodwill impairment charge is an estimated, non-cash amount that is subject to finalization. The company also included a cautionary statement regarding forward-looking statements, highlighting various risks and uncertainties that could impact future performance and cause actual results to differ materially from expectations.
Key Highlights
- 1Boston Scientific recorded an estimated $422 million non-cash goodwill impairment charge for its global Cardiac Rhythm Management (CRM) reporting unit.
- 2The impairment charge is a result of a business reorganization into global business units and subsequent interim goodwill impairment testing.
- 3The company announced its first-quarter 2013 financial results, detailed in an accompanying press release (Exhibit 99.1).
- 4The goodwill impairment charge is an estimated amount and is subject to finalization.
- 5The filing includes standard cautionary language regarding forward-looking statements and associated risks and uncertainties.
- 6The reorganization into global business units became effective as of January 1, 2013.