Download the most recent financial statements of Medtronic and Boston Scientific.From the attached ratio sheet pick 6 relevant ratios and compare the two companies.Then from the ratios you selected consolidate the two values from each firm and compute the ratio again after consolidation.For example once you complete the current ratio for Medtronic and Boston Scientific add the current assets of each company and the current liability and calculate the current ration for the consolidated amounts.

Your analysis should have three columns Medtronic, Boston Scientific, Combined.

The last step is to determine if the two firms should merge, write a briefanalysis(not summary) of your conclusion, approx 200 - 250 words.

The Boston Scientific file was repaired.

Boston Scientific is honored to receive the following awards in recognition of our commitment to meaningful innovation, service to global stakeholders, strong workplace culture and contributions to communities around the world. Disability Equality Index achieved top score of 100% Human Rights Campaign's Corporate Equality Index perfect score for LGBT Inclusiveness for the third consecutive year Equal Opportunity Magazine Readers' Choice Top 50 Employers List, ranked #29 Medical Design Excellence Awards (silver) for the WATCHMAN Left Atrial Appendage Closure (LAAC) Device in the Implant and TissueReplacement Product category and the SpyGlass DS Direct Visualization System in the Radiological and Electromechanical Devices category Edison Award (silver) in the Surgical Tools category for the WATCHMAN Device BOSTON SCIENTIFIC 2016 ANNUAL REPORT FORTUNE World's Most Admired Companies for the second consecutive year Clarivate Analytics Top 100 Global Innovators, honoring the most innovative corporations and institutions in the world Shingo Prize for operational excellence, the organization's top honor, awarded to the Boston Scientific Cork, Ireland plant Forbes list of America's Best Large Employers, based on a survey of 30,000 U.S. employees Newsweek Global 2016 Green Rankings moved up eight slots from prior year to rank #21 FTSE4Good Index certified for the 13th consecutive year Transforming Lives. Boston Scientific Corporation 300 Boston Scientific Way Marlborough, MA 01752-1234 bostonscientific.com 10 2017 Boston Scientific Corporation or its affiliates. All rights reserved. AR2016 BOSTON SCIENTIFIC 2016 ANNUAL REPORT 2016 Growth $2,524 1,093 13% 12% Cardiovascular Interventional Cardiology Peripheral Interventions Rhythm Management Cardiac Rhythm Management Electrophysiology 1,994 261 3% 5% MedSurg Endoscopy Urology and Pelvic Health Neuromodulation 1,565 1,065 574 10% 45% 12% $9,076 12% 2016 Growth $4,759 1,951 1,852 514 13% 10% 15% 15% $9,076 12% 2016 Operational Sales by Region1 (Dollars in millions) U.S. Europe Asia-Pacific, Middle East and Africa (AMEA) Other 2014 (Dollars in billions) Operational revenue growth Organic revenue growth Excludes foreign exchange impact ( $0.10 in 2015 and $0.06 in 2016) Includes foreign exchange impact 2014 26%, 20% 23%, 11% 15% 2016 24.1% 22.3% 20.2% 2015 $9.1: 12%, 10% $8.1: 8%, 5% $7.5: 6%, 4% 2016 Adjusted EPS Growth 3 2015 Adjusted Operating Margin3 2014 Operational Revenue Growth1,2 2016 2016 Operational Sales by Product Category1 (Dollars in millions) 2015 FINANCIAL HIGHLIGHTS 5-Year Cumulative Total Return* $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 *$100 invested on 12/31/11 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. 12/11 12/12 12/13 12/14 12/15 12/16 Throughout this Annual Report, unless otherwise noted, all revenue and other growth rates represent 2016 growth compared to 2015. Information on or connected to our website (or the website of any third party) referenced in this Annual Report is in addition to and not a part of or incorporated by reference into this Annual Report. 1 Operational sales/revenues and growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates; see reconciliation of GAAP sales/ revenues and growth rates on pages 11 and 12. 2 Organic growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates and the sales from the acquisitions of the interventional business of Bayer AG, the American Medical Systems male urology portfolio and EndoChoice Holdings, Inc. over the prior year period; see reconciliation of GAAP sales/revenues and growth rates on pages 11 and 12. 3 Adjusted operating margin, adjusted earnings per share and their related growth rates are non-GAAP measures that exclude the impact of goodwill and intangible asset impairment charges, acquisition- and divestiture-related net charges and credits, restructuring and restructuring-related net charges, litigation-related net charges, pension termination charges, debt extinguishment charges, discrete tax items and amortization expense. LETTER TO STOCKHOLDERS Dear Stockholders: I am often struck by the strong sense of purpose our Boston Scientific employees share for advancing science for life. Like many on our team, I became fascinated by the wonders of both healthcare and technology when I was young. I was fortunate to have a grandfather who was a pediatric cardiac surgeon, and I grew up admiring his dedication to his work and how he helped children suffering from heart disease. The science of repairing wounded hearts amazed me then, and it still does. While I didn't grow up to be a surgeon, I found my passion in healthcare and at Boston Scientific where we work to develop medical devices for heart disease and many other life threatening and debilitating conditions. Today, I am more inspired than ever by our mission to transform lives through innovative medical solutions that improve the health of patients around the world. Our work is guided by core values that define the Boston Scientific culture and empower our employees. These values of caring, meaningful innovation, high performance, global collaboration and diversity are all anchored in a winning spirit that reflects our passion, as well as our commitment to leadership and pursuit of excellence in all that we do. Guided by our values, Boston Scientific achieved outstanding financial results in 2016, marked by strong growth and exciting milestones across our businesses and regions, including more than 450 regulatory product approvals and clearances worldwide, 135 active clinical trials enrolling 131,000 patients, the introduction of 93 products and, most importantly, helping improve the lives of 24 million patients.4 Our sharp focus on expanding category leadership and driving growth in emerging markets is working. More than 27,000 talented and dedicated Boston Scientific employees are collaborating with customers worldwide to identify unmet needs, provide access to meaningful innovation and address the economic pressures experienced by many stakeholders delivering healthcare. While I am proud of what we've accomplished, we know that working in the healthcare industry carries significant responsibility, and that means we must always be curious, we must always be courageous, and we can never be satisfied. Our mission and values will continue to guide us as we adapt to ongoing changes in markets globally. We will do so by being agile and responsive to the needs of our customers and the patients whom we serve together. 2016 Business Results We are committed to delivering high performance and fulfilling our promises to patients, customers and shareholders. In 2016, our momentum continued across our businesses and regions with accelerated revenue growth, improved profitability and strong double-digit adjusted earnings per share growth: We achieved full-year sales of $8.386 billion, representing 12 percent revenue growth on both a reported and operational basis, and 10 percent organic revenue growth.1,2 Our 2016 sales growth was faster than the average revenue growth in 2016 for our peer group.5 1 Operational sales/revenues and growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates; see reconciliation of GAAP sales/revenues and growth rates on pages 11 and 12. 2 Organic growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates and the sales from the acquisitions of the interventional business of Bayer AG, the American Medical Systems male urology portfolio and EndoChoice Holdings, Inc. over the prior year period; see reconciliation of GAAP sales/revenues and growth rates on pages 11 and 12. 4 Rounded average based on company sales and estimated usage patterns as of December 31, 2016. 5 Our peer group includes the companies listed under \"Competitive Market Analysis\" in our proxy statement for the 2017 annual meeting of stockholders. 1 TRANSFORMING LIVES \"I feel really lively, like I'm young again. I have my life back. I now have huge expectations for the future. I still have a lot to do.\" PEDRO CURY 2 A Life Transformed Retired architect Pedro Cury loved to paint and draw, but when his Parkinson's disease progressed he could no longer draw a straight line. Unable to walk and confined to a wheelchair, he consulted a neurosurgeon who suggested he might be a candidate for deep brain stimulation (DBS). After a series of preoperative tests, Pedro decided to move ahead with the surgery. Following a successful procedure, Pedro is living his life again walking, painting and spending time with his family. Vercise PC Deep Brain Stimulation System 6 The Vercise PC System is a non-rechargeable treatment option that targets specific areas in the brain with electrical current, allowing physicians to adapt therapy to fit the needs of patients with Parkinson's disease, primary and secondary dystonia and tremor. The Vercise platform is the only DBS solution that is designed to finely control the stimulation field through multiple independent current control (MICC) technology, which is intended to offer greater precision, flexibility and options with neural targeting for improved patient outcomes. We grew full-year adjusted earnings per share to $1.11 cents.3 This 20 percent adjusted EPS growth includes a significant six cent negative foreign exchange impact.3 We were able to overcome this foreign exchange headwind and still deliver on our commitment for double-digit adjusted EPS growth.3 The 2016 total return on our common stock of 17 percent exceeded the return of the S&P 500 index. The Boston Scientific five- and three-year total shareholder return have consistently outpaced the S&P 500 index growing 305% and 80% over those time frames, respectively. We continued to drive global expansion with emerging market organic sales growth of 19 percent in 2016, representing approximately $1 billion in revenue or 12 percent of our total annual sales. This growth was led by strong results across many countries, most notably our business in China, which grew organic revenue 22 percent.2 We invested $920 million, or 11 percent of sales, in research and development to fuel meaningful innovation. We made strategic acquisitions of Cosman Medical, EndoChoice Holdings, the gynecology and urology portfolio of Distal Access, the LumenR Tissue Retractor System and manufacturing assets and capabilities of the Neovasc advanced biological tissue business. We continued to improve the profitability of the company by expanding our adjusted operating margin from 22.3 percent in 2015 to 24.1 percent in 2016, an improvement of 180 basis points.3 We have improved adjusted operating margin by more than 600 basis points since 2012.3 As a result of these improvements, we delivered differentiated adjusted earnings per share growth while simultaneously fueling our innovation pipeline. With our performance in 2016, we continue to be on track to expand our stated adjusted operating margin expansion goals of 25 percent in 2017 and 28 percent by 2020. Our teams across Boston Scientific continue to focus on improving productivity and reducing costs so that we can redirect savings into high-growth technologies, strategic investments and our future portfolio. 2 Organic growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates and the sales from the acquisitions of the interventional business of Bayer AG, the American Medical Systems male urology portfolio and EndoChoice Holdings, Inc. over the prior year period; see reconciliation of GAAP sales/revenues and growth rates on pages 11 and 12. 3 Adjusted operating margin, adjusted earnings per share and their related growth rates are non-GAAP measures that exclude the impact of goodwill and intangible asset impairment charges, acquisition- and divestiture-related net charges and credits, restructuring and restructuring-related net charges, litigation-related net charges, pension termination charges, debt extinguishment charges, discrete tax items and amortization expense. 6 CE Marked. Not available for use or sale in the U.S. 3 Our products are used to help diagnose or treat a wide range of complex diseases and conditions across cardiovascular, respiratory, digestive, neurological, urological and pelvic health. Our company is organized into our Cardiovascular, Rhythm Management and MedSurg segments. The CARDIOVASCULAR segment delivered strong results with operational and organic revenue growth of 12 percent in 2016 and improved adjusted operating margin by more than 130 basis points year-overyear.1,2,3 Our Interventional Cardiology and Peripheral Interventions businesses are leading the market with double-digit growth. Strong sales of our SYNERGY Bioabsorbable Polymer Drug-Eluting Stent System, for the treatment of coronary artery disease, boosted Interventional Cardiology performance, and our Peripheral Interventions business grew share as the only company investing in both a drug-coated balloon and drug-eluting stent portfolio to treat peripheral artery disease. We received CE Mark for the Eluvia Drug-Eluting Vascular Stent,7 the first polymer-based, drug-eluting stent designed to treat peripheral lesions above the knee, and we expect to bring this innovation to the U.S. in the coming years. Our Structural Heart franchise offers a differentiated portfolio and is an important growth driver for the company. We further solidified our position in the market by helping to secure Medicare coverage for the WATCHMAN Left Atrial Appendage Closure Device intended for stroke risk reduction in eligible patients with a heart arrhythmia called non-valvular atrial fibrillation - a truly differentiated technology (see more about the WATCHMAN Device on page 7). The RHYTHM MANAGEMENT segment, made up of the Cardiac Rhythm Management (CRM) and Electrophysiology businesses, grew operational and organic revenue 3 percent in 2016, while adjusted operating margin improved nearly 300 basis points year-over-year.1,2,3 We continued to deliver worldwide CRM market share gains with strong growth across our pacemaker and Subcutaneous Implantable Defibrillator (S-ICD) franchises. We received regulatory approval in the U.S., Europe, Japan and New Zealand for the EMBLEM MRI S-ICD System, with magnetic resonance (MR) conditional labeling for all previously implanted EMBLEM S-ICD Systems that are used to treat patients at risk of sudden cardiac arrest. We also received U.S. regulatory approval for our portfolio of MR conditional pacemakers and leads, which are designed to treat bradycardia, a condition in which the heart beats too slowly. In Electrophysiology, we continued the expansion of our product offerings with a number of new navigationenabled catheters and software to enhance the capabilities of our high-definition RHYTHMIA Mapping System for use during procedures to diagnose or treat a variety of conditions in which the heart beats abnormally. The MEDSURG segment, comprised of Endoscopy, Urology and Pelvic Health and Neuromodulation, grew operational revenue 20 percent and organic revenue 11 percent in 2016, and adjusted operating margin improved approximately 50 basis points year-overyear.1,2,3 We have invested in our MedSurg businesses over the past five years and made a number of acquisitions in 2016 to expand our category leadership and to expand our therapeutic offerings. Endoscopy and Urology and Pelvic Health are clear category leaders in many markets, and Neuromodulation has moved from the number three share position five years ago to number one in the U.S., and we have made great progress growing share globally. In Endoscopy, our next-generation SpyGlass DS Direct Visualization System, used for the diagnosis and treatment of complex disorders of the pancreas and bile ducts, continues to be a market differentiator. In Urology and Pelvic Health, we are recognizing synergies from the acquisition of the AMS Men's Health business and organic product launches. In Neuromodulation, we received U.S. regulatory approval for the Precision Montage MRI Spinal Cord Stimulator System, which provides full-body MRI access, expands our spinal cord stimulation offering and brings customized therapy to more patients suffering from chronic pain. We are also seeing great momentum in Europe with our Vercise Primary Cell (PC) Deep Brain Stimulation 1 Operational sales/revenues and growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates; see reconciliation of GAAP sales/revenues and growth rates on pages 11 and 12. 2 Organic growth rates are non-GAAP measures that exclude the impact of changes in foreign currency exchange rates and the sales from the acquisitions of the interventional business of Bayer AG, the American Medical Systems male urology portfolio and EndoChoice Holdings, Inc. over the prior year period; see reconciliation of GAAP sales/revenues and growth rates on pages 11 and 12. 3 Adjusted operating margin, adjusted earnings per share and their related growth rates are non-GAAP measures that exclude the impact of goodwill and intangible asset impairment charges, acquisition- and divestiture-related net charges and credits, restructuring and restructuring-related net charges, litigation-related net charges, pension termination charges, debt extinguishment charges, discrete tax items and amortization expense. 7 Caution: Eluvia Drug-Eluting Vascular Stent System is CE Marked. It is an investigational device in the U.S. and is not available for sale. 4 (DBS) System6 designed to assist in the treatment of Parkinson's disease, dystonia and essential tremor, and are looking forward to bringing this therapy to the U.S. in 2018, pending regulatory approval. Pursuit of Excellence Driving category leadership and delivering solutions in today's healthcare environment requires us to challenge the status quo, understand market needs and push ourselves to deliver increasing value to both customers and patients. We aim to offer customers the deepest, most innovative and costeffective portfolio of products and solutions within our served markets, and are expanding our offerings to clinicians through product development and strategic investments. Within our Endoscopy business, the addition of EndoChoice Holdings in 2016 enables us to offer a comprehensive array of gastrointestinal (GI) services and solutions for physicians in group practice settings, as well as hospitals and ambulatory surgery centers. We can also better reach growing areas within the GI continuum of care, including infection control and pathology lab services. The recently acquired LumenR Tissue Retractor System is in development for use during endoscopic resection of lesions As we look to the future, we believe our continued high performance and strong shareholder value will be driven by growing revenue faster than the markets we serve, improving our operating margins and achieving double-digit adjusted EPS growth. in the colon, esophagus and stomach, which we expect someday will help more physicians treat patients successfully through less invasive endoscopic procedures. Additionally, the 2016 full launch of the AXIOS Stent and Electrocautery Enhanced Delivery System can help physicians manage serious complications from pancreatitis by using a minimally invasive endoscopic approach. The Urology and Pelvic Health business introduced the LithoVue Single-Use Digital Flexible Ureteroscope for visualization and navigation during minimally invasive endoscopic procedures to diagnose and treat kidney stones and other conditions of the kidney, ureter and bladder. This platform eliminates many of the inefficiencies and financial costs of ownership for reusable ureteroscopes and has the potential to disrupt the scope market in both developed and emerging markets. Urology and Pelvic Health also continues to focus on growth beyond the U.S. with rapid double-digit expansion in Asian markets such as China, Korea and Taiwan, as well as in Latin American markets like Brazil, Colombia and Mexico. Solutions That Matter Most Our research and development, strategic collaborations and equity investments in innovative early stage companies help us advance science by addressing unmet needs and emerging challenges in healthcare. We focus on the toughest problems and create tailored solutions that will make the greatest difference to patients and the healthcare system. We work with our customers to address increasing needs to deliver the best possible care at lower costs by providing solutions beyond devices, so that more people in more places around the world can live longer, healthier lives. The Centers for Medicare and Medicaid Services established national coverage in the U.S. for our WATCHMAN Left Atrial Appendage Closure Device in 2016. This technology provides a stroke risk reduction option for high-risk patients with non-valvular atrial fibrillation who are seeking an alternative to long-term oral anticoagulant therapy. 6 CE Marked. Not available for use or sale in the U.S. 5 M E A N I N G F U L I N N O VAT I O N We are committed to building a deep understanding of the unique needs of our patients and customers, and delivering truly transformative solutions to their most pressing concerns. The LithoVueTM Single-Use S Digital Flexible U Ureteroscope requires no repairs, maintenance e saving hospitals or reprocessing, savi s time and money during certain endoscopic minimally invasive endo procedures so physicians can patients focus on treating more pa with kidney stones. A study recently published in the Journal of the American College of Cardiology adds to the strong body of evidence demonstrating a high rate of procedural success and low rate of complications for this device. Today, more than 200 centers in the U.S. have been trained on the WATCHMAN Device and can offer the technology to patients. We are excited about our transcatheter aortic valve implantation/replacement (TAVI/R) technology program, and our differentiated LOTUS Edge Valve System.8 We look forward to our planned commercial introduction of the LOTUS Edge Valve System in the U.S. in 2018. We completed the first clinical trial gathering data to evaluate the performance of the HeartLogic Heart Failure Diagnostic Service.9 The HeartLogic Alert is based on a composite score of multiple sensor measurements evaluating different aspects of physiology to predict heart failure (HF) events with The AXIOSTM Stent and Electrocautery Enhanced Delivery System is the first stent nt designed to drain symptomatic pancreatic pseudocysts endoscopically, enabling physicians to reduce procedure time,11 potentially saving labor costs and reducing anesthesia time exposure for and radiation expo patients and staff. The AngioJet ZelanteDVT Thrombectomy Catheter, the most powerful thrombectomy catheter in the AngioJet portfolio, provides the power and flexibility to remove large venous clot burdens and restore blood flow in patients with deep vein thrombosis (DVT). the goal of helping physicians proactively manage a patient's HF treatment. Data collected from the 900-patient Multisensor Chronic Evaluations in Ambulatory Heart Failure Patients (MultiSENSE) study, presented as a late-breaking clinical trial session at the 2016 American Heart Association Scientific Sessions and published in the Journal of the American College of Cardiology: Heart Failure, demonstrated the HeartLogic Alert could successfully notify clinicians of an associated HF event with a 34-day median alert window.10 The successful results from this study and the development of the HeartLogic Service are foundational to our continued development of differentiated solutions for the management of heart failure. With the completion of the acquisition of the Cosman Medical Radiofrequency Ablation (RFA) systems, we also have the opportunity to provide physicians and patients with more options to address chronic pain with non-opioid therapeutic treatments. 8 Caution: The Lotus Edge Valve System is an Investigational Device. Limited by Federal (or US) law to investigational use only. Not available for sale. 9 The HeartLogic Heart Failure Diagnostic Service is not currently available for use or sale. 10 Associated heart failure event is defined as hospitalizations with HF as the primary diagnosis and HF outpatient treatment with intravenous therapy. 11 Data from the AXIOS Stent and Electrocautery Enhanced Delivery System IDE Clinical Study and compared to the non-electrocautery enhanced system. 6 The LOTUS Edge Valve System,8 our next-generation transcatheter aortic valve replacement (TAVR) technology, y, is designed to offer an effective ve alternative for treating patients s with severe aortic stenosis and d who are considered at high risk k for surgical valve replacement. The EMBLEM MRI Subcutaneous Implantable Defibrillator (S-ICD) System is a treatment option with magnetic resonance (MR) conditional labeling for patients at risk of sudden cardiac arrest that leaves the heart and vasculature untouched. Deepest Collaboration The way that we advance science is by listening to our customers, understanding the clinical challenges they face and working together to solve them. We are evolving our capabilities to meet the changing needs of the healthcare landscape by enhancing the balance of our portfolio mix, moving into faster growth segments and innovating to expand the range of solutions that we provide to our customers. We are collaborating with customers to accelerate growth and contribute to their success as they transition to value-based care. Through our ADVANTICS portfolio of solutions, we are tailoring programs to reduce costs, improve productivity and achieve more standardized care for patients with cardiovascular disease. These solutions are improving patient access to care and delivering double-digit improvements in lab turnaround time, staff engagement, patient satisfaction and supply chain operating costs.12 The RHYTHMIA HDx Mapping and Navigation System13 uses increased density, refined resolution and automation to create high-definition mapping that allows physicians to better diagnose and treat arrhythmias. The WATCHMAN Left Atrial Appendage Closure (LAAC) Device is the first and only device approved by the U.S. Food and Drug Administration (FDA) offering stroke risk reduction for patients with non-valvular atrial fibrillation (AF) who are seeking an alternative to long-term warfarin therapy. To support our global growth, we are committed to training clinicians, increasing patient access, and globalizing research and development with centers in Shanghai; Gurugram, India; Heredia, Costa Rica; and Galway, Ireland. Our Institutes for Advancing Science in Maple Grove and Arden Hills, Minnesota; Miyazaki and Tokyo, Japan; Paris; Istanbul; Shanghai; Johannesburg; and Gurugram enable us to offer healthcare professionals hands-on, multidisciplinary training programs for our products and procedures that are geared to local needs and preferences, produced efficiently and informed by the insights of global thought leaders. A great example of this is the Boston Scientific Navigation Express, a stateof-the-art mobile exhibition van that went on a six-month journey across 11 states, 55 cities and 161 hospitals in India to provide awareness of the latest medical solutions in underserved populations. 8 Caution: The Lotus Edge Valve System is an Investigational Device. Limited by Federal (or US) law to investigational use only. Not available for sale. Actual results may vary. Data on file. 13 The RHYTHMIA HDx Mapping and Navigation System is not available for sale in the U.S. 12 Real results from programs. 7 The Boston Scientific Navigation Express is a STOCKHOLDER state-of-the-art mobile exhibition I N F O R M AT I O Nvan that went on a six-month journey across 11 states, 55 cities and 161 hospitals in India to provide awareness of the latest medical solutions in underserved populations. We are also working with leading research organizations and local governments to advance science. Our continuing collaboration with leading hospital systems allows our organizations to share intellectual property and stimulate the rapid development of medical devices to address unmet clinical needs. Our teams have been working together to develop new medical technologies in areas that include interventional cardiology, peripheral interventions, heart rhythm management, endoscopy, neuromodulation, urology and pelvic health. In Israel, Boston Scientific was among a few companies selected to run an innovation incubator focused on cultivating early-stage companies that are creating medical devices and digital health solutions. By combining the strengths of the public and private sectors through this incubator, we believe we can drive the creation of new technologies and accelerate the pace at which we can deliver them to our customers. We are taking on a leadership role in raising awareness of the needs of underserved patient communities across the country through our Close the Gap initiative. As part of the commitment to support health equity for all patients, Boston Scientific sponsored the PLATINUM Diversity study, to evaluate the clinical outcomes of the Promus PREMIER Everolimus-Eluting Platinum Chromium Coronary Stent System in women and minorities. This is the first of many analyses that we believe will provide valuable insights into the social, behavioral and economic determinants of health of women and minorities. Our hope is that these \"real-world\" results from the PLATINUM Diversity study will help clinicians, researchers and advocates better understand how we can work collaboratively to close the gender, race and ethnicity gap when treating cardiovascular disease. 8 Looking Ahead We are continuing our strategy of category leadership in key markets and diversification into high-growth adjacencies and investment in innovative medical technologies. As we look to the future, we believe our continued high performance and strong shareholder value will be driven by growing revenue faster than the markets we serve, improving our operating margins and achieving double-digit adjusted EPS growth. We have a talented Board of Directors comprised of leading experts with deep and diverse experience who further enrich our strategic thinking and longterm planning. Ellen M. Zane and Yoshiaki Fujimori joined our board in 2016. Both are accomplished business leaders with valuable insights on how large companies plan, execute and compete in today's dynamic healthcare environment. We thank all of our board members for their commitment and service to Boston Scientific. We also thank you, our stockholders, for your continued support, and our employees for their strong commitment and unwavering winning spirit. Together, we have created significant opportunity to help others, and can look forward to continuing our journey to advance science for life and improve the health of patients around the world. Sincerely, MICHAEL MAHONEY, Chairman and Chief Executive Officer March 17, 2017 C O R P O R AT E A N D S T O C K H O L D E R I N F O R M AT I O N Executive Officers Stockholder Information Nelda J. Connors Director; Founder, Chairwoman and Chief Executive Officer, Pine Grove Holdings, LLC Kevin J. Ballinger Executive Vice President and President, Interventional Cardiology Stock Listing Boston Scientific Corporation common stock is traded on the NYSE under the symbol \"BSX.\" Charles J. Dockendorff 1,4 Director; Former Executive Vice President and Chief Financial Officer, Covidien plc Supratim Bose Executive Vice President and President, Asia-Pacific, Middle East and Africa (AMEA) Yoshiaki Fujimori 4 Director; Former President and CEO of the LIXIL Group Corporation Daniel J. Brennan Executive Vice President and Chief Financial Officer Transfer Agent Inquiries concerning the transfer or exchange of shares, lost stock certificates, duplicate mailings, or changes of address should be directed to the Company's Transfer Agent at: Board of Directors 2,4 Donna A. James 2,3 Director; Founder and Managing Director, Lardon & Associates LLC Kristina M. Johnson, Ph.D.2,4 Director; Chief Executive Officer, Enduring Hydro, LLC Edward J. Ludwig 1,2 Director; Former Chief Executive Officer, President and Chairman, Becton, Dickinson and Company Stephen P. MacMillan 2,3 Director; Chairman, President and Chief Executive Officer, Hologic, Inc. Michael F. Mahoney Director; Chairman of the Board; President and Chief Executive Officer David J. Roux 1,4 Director; Co-Founder and Senior Director, Silver Lake John E. Sununu 1,3 Director; Former U.S. Senator Ellen M. Zane 1,3 Director; CEO Emeritus and Vice Chair of the Board of Trustees at Tufts Medical Center & Floating Hospital for Children Director Emeritus John E. Abele Director Emeritus; Co-Founder Information is accurate as of March 1, 2017. 1 Member of the Audit Committee 2 Member of the Executive Compensation and Human Resources Committee 3 Member of the Nominating and Governance Committee 4 Member of the Finance Committee 5 Retiring effective May 31, 2017 Computershare Inc. P.O. Box 30170 College Station, TX 77842-3170 Arthur C. Butcher Senior Vice President and President, Endoscopy Shareholder website: www. computershare.com/investor Wendy Carruthers Senior Vice President, Human Resources 5 Keith D. Dawkins, M.D. Executive Vice President and Global Chief Medical Officer Joseph M. Fitzgerald Executive Vice President and President, Rhythm Management Edward F. Mackey Executive Vice President, Operations Michael F. Mahoney Director; Chairman of the Board; President and Chief Executive Officer Professor Ian T. Meredith AM Executive Vice President and Global Chief Medical Officer Jeffrey B. Mirviss Senior Vice President and President, Peripheral Interventions Maulik Nanavaty Senior Vice President and President, Neuromodulation Michael P. Phalen Executive Vice President and President, MedSurg David A. Pierce Senior Vice President and President, Urology and Pelvic Health Shareholder online inquiries: https://www-us.computershare. com/investor/contact Independent Registered Public Accounting Firm Ernst & Young LLP Boston, Massachusetts Annual Meeting The 2017 annual meeting of stockholders will take place on Tuesday, May 9, 2017, beginning at 8:00 a.m. Eastern Time at Boston Scientific Corporate Headquarters located at 300 Boston Scientific Way, Marlborough, MA 01752-1234. Other Information Copies of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports are available free of charge on our website at www.bostonscientific.com. Our Corporate Governance Guidelines and our Code of Conduct which applies to all our directors, officers and employees, including our Chief Executive Officer and Chief Financial Officer are also available on our website. Certifications of the Chief Executive Officer and Chief Financial Officer certifying the accuracy of the Company's public disclosures have been filed with the Securities and Exchange Commission as exhibits to the Company's Annual Report on Form 10-K for the year ended December 31, 2016. Copies of these reports are also available by directing requests to: Investor Relations Boston Scientific Corporation 300 Boston Scientific Way Marlborough, MA 01752-1234 508-683-4000 508-647-2200 (Facsimile) Investor_Relations@bsci.com Investor Information Requests Investors, stockholders and security analysts seeking information about Boston Scientific should refer to our website at www.bostonscientific.com or contact Investor Relations at 508-683-4000, or by email at Investor_Relations@bsci.com. Corporate Headquarters Boston Scientific Corporation 300 Boston Scientific Way Marlborough, MA 01752-1234 508-683-4000 Investor Relations Facsimile: 508-647-2200 www.bostonscientific.com Information on or connected to our website (or the website of any third party) referenced in this Annual Report is in addition to and not a part of or incorporated by reference into this Annual Report. Such additional information speaks as of the date thereof and is not intended to be confirmed or updated by reference to it herein. Boston Scientific disclaims any liability or responsibility for or endorsement of the information on or connected to the website of a third party. Timothy A. Pratt Executive Vice President, Chief Administrative Officer, General Counsel and Secretary John B. Sorenson Senior Vice President, Manufacturing and Supply Chain Eric Thpaut Senior Vice President, and President, Europe 9 N O N - G A A P R E C O N C I L I AT I O N S Safe Harbor for Forward-Looking Statements This Annual Report contains forward-looking statements within the meaning of the federal securities laws. See the discussion under \"Safe Harbor for Forward-Looking Statements\" in the Annual Report on Form 10-K for the year ended December 31, 2016 for matters to be considered in this regard. As Reported Less: Impact of Constant Year ended December 31, Currency Foreign Currency Currency NET SALES (dollars in millions) 2016 2015\tBasis Fluctuations\tBasis Interventional Cardiology Peripheral Interventions $2,281 $2,033\t12% -1%\t13% 1,011 904\t12% 0%\t12% CARDIOVASCULAR 3,292\t2,937\t12% 0%\t12% Cardiac Rhythm Management Electrophysiology 1,850 1,807 2% -1% 3% 243\t233\t4%\t-1%\t5% RHYTHM MANAGEMENT 2,093 2,040\t3%\t0%\t3% Endoscopy Urology and Pelvic Health Neuromodulation 1,440\t1,306\t10% 0%\t10% 1,005 693 45% 0% 45% 556 501\t11% -1%\t12% MEDSURG 3,001\t2,500\t20% 0%\t20% Net sales, reported $8,386 $7,477\t12% 0%\t12% 2016\t2015\t2014 Net sales, reported $8,386\t$7,477\t$7,380 Less: Impact of foreign currency fluctuations and divestitures (690) (591) (82) Net sales, operational $9,076\t$8,068\t$7,462 Revenue growth, reported 12%\t1%\t3% Less: Impact of foreign currency fluctuations and divestitures 0% -7% -3% Revenue growth, operational 12%\t8%\t6% Less: Impact of significant acquisitions 2% 3% 2% Revenue growth, organic 10%\t5%\t4% Rhythm MedSurg Cardiovascular Management Total BSC Revenue growth, reported 20%\t12% 3%\t12% Less: Impact of foreign currency fluctuations 0% 0% 0% 0% Revenue growth, operational 20%\t12% 3%\t12% Less: Impact of significant acquisitions 9% 0% 0% 2% Revenue growth, organic 11%\t12% 3%\t10% OPERATING MARGIN 2016\t2015\t2014\t2012 Operating margin, reported 5.3%\t-4.4%\t-4.1%\t-53.4% Less: Goodwill and intangible asset impairment charges, restructuring and \u0007restructuring-related net charges, acquisition- and divestiture-related net charges, litigation-related net charges, pension termination charges, and amortization expense -18.8%\t-26.7%\t-24.3%\t-72.2% Less: Estimated 2012 impact of Medical Device Tax based on actual 2013 impact n/a n/a n/a 1.0% Operating margin, adjusted 24.1%\t22.3%\t20.2%\t17.8% Change in basis points from 2015 180 Change in basis points from 2012 630 REVENUE GROWTH RATES (2016 VS 2015) Emerging Markets China Revenue growth, reported 9% 15% Less: Impact of foreign currency fluctuations -11% -7% Revenue growth, operational 20%\t22% Less: Impact of significant acquisitions 1% 0% Revenue growth, organic 19%\t22% 11 N O N - G A A P R E C O N C I L I AT I O N S ( C O N T I N U E D ) 2016 NET SALES Emerging Markets Net sales, reported Less: Impact of foreign currency fluctuations $ 799 (241) Net sales, operational 1,040 Less: Impact of significant acquisitions 6 Net sales, organic $1,034 EARNINGS PER DILUTED SHARE 2016\t2015\t2014\t2013 GAAP net income (loss) per share $0.25 $(0.18) Non-GAAP adjustments: Goodwill and intangible asset impairment charges 0.01 0.01a Acquisition- and divestiture-related net charges (credits) 0.09 0.17a Restructuring and restructuring-related net charges 0.04 0.05a Litigation-related net charges 0.37 0.52a Pension termination charges n/a 0.02a Debt extinguishment charges n/a 0.02a Discrete tax items n/a (0.01)a Amortization expense 0.35\t0.33a $ (0.09) $(0.09) 0.12b (0.03)b 0.07b 0.49b n/a n/a (0.01)b 0.29b 0.35c 0.00c 0.07c 0.11c n/a 0.03c (0.01)c 0.27c Adjusted net income (loss) per share $ 0.84 Less: Impact of foreign currency fluctuations in 2016 Adjusted net income (loss) per share, excluding foreign currency impact $1.11 0.06 $ 0.93 - $1.17 $ 0.93 Adjusted net income (loss) per share $ 0.93 $ 0.84 Less: Impact of foreign currency fluctuations in 2015 $0.10 - Adjusted net income (loss) per share, excluding foreign currency impact $ 1.03 $ 0.84 11% 23% 15% Adjusted EPS growth from prior year Adjusted EPS growth from prior year, excluding foreign currency impact 20% 26% $0.73 a Assumes dilution of 21.5 million shares for the year ended December 31, 2015 for all or a portion of these non-GAAP adjustments. b Assumes dilution of 23.7 million shares for the year ended December 31, 2014 for all or a portion of these non-GAAP adjustments. c Assumes dilution of 19.5 million shares for the year ended December 31, 2013 for all or a portion of these non-GAAP adjustments. OPERATING INCOME (LOSS) Cardiovascular Rhythm Management MedSurg 2016 2016\t2015 2015 Adjusted Adjusted Adjusted Adjusted Operating\tOperating\tOperating\tOperating\tChange in Income\tMargin\tIncome\tMargin basis points $ 1,137 404 1,045 31.5% 17.9% 32.6% $ 972 328 856 30.2% 15.0% 32.1% 130 290 50 Operating income allocated to reportable segments Corporate expenses and currency exchange 2,586 (565) 2,156 (486) Adjusted operating income Intangible asset impairment charges, acquisition- and litigation-related charges, and restructuring and restructuring-related charges and amortization expense 2,021 1,670 (1,574) (1,997) Operating income (loss) $ 447 $ (327) REGIONAL SALES IN 2016 U.S.\tEurope AMEA Other Net sales, reported $4,759\t$1,669\t$1,625 $ 333 Less: Impact of foreign currency fluctuations - (282) (227) (181) Net sales, operational $4,759\t$1,951\t$1,852 $ 514 REGIONAL SALES GROWTH IN 2016 U.S.\tEurope AMEA Other Revenue growth, reported 13% 8%\t17% 4% Less: Impact of foreign currency fluctuations 0% -2% 2% -11% Revenue growth, operational 13%\t10%\t15%\t15% 12 2016 Form 10-k BOSTON SCIENTIFIC 2016 ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT EXCHANGE ACT OF 1934, or TO SECTION 13 OR 15(d) OF THE SECURITIES For the fiscal year ended December 31, 2016 ' TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-11083 BOSTON SCIENTIFIC CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 04-2695240 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH, MASSACHUSETTS 01752-1234 (Address of principal executive offices) (zip code) (508) 683-4000 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: COMMON STOCK, $.01 PAR VALUE PER SHARE NEW YORK STOCK EXCHANGE (Title of each class) (Name of exchange on which registered) Securities registered pursuant to Section 12(g) of the Act: NONE Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes: No ' Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes: ' No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes: No ' Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorted period that the registrant was required to submit and post such files). Yes: No ' Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ' Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of \"large accelerated filer,\" \"accelerated filer\" and \"smaller reporting company\" in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer Accelerated filer ' Non-accelerated filer ' Smaller reporting company ' (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes: ' No The aggregate market value of the registrant's common stock held by non-affiliates was approximately $31.6 billion based on the last reported sale price of $23.37 of the registrant's common stock on the New York Stock Exchange on June 30, 2016, the last business day of the registrant's most recently completed second fiscal quarter. (For this computation, the registrant has excluded the market value of all shares of common stock of the registrant reported as beneficially owned by executive officers, directors and the director emeritus of the registrant; such exclusion shall not be deemed to constitute an admission that any such person is an affiliate of the registrant.) The number of shares outstanding of the registrant's common stock as of January 31, 2017 was 1,363,488,640. Documents Incorporated by Reference Portions of the registrant's definitive proxy statement to be filed with the Securities and Exchange Commission in connection with its 2017 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. TABLE OF CONTENTS PART I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 1. BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 1A. RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 1B. UNRESOLVED STAFF COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 2. PROPERTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 3. LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 4. MINE SAFETY DISCLOSURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 16 29 29 29 29 PART II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ITEM 6. SELECTED FINANCIAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . 33 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA . . . . . . . . . 56 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE . . . . . . . . . . . . . . . . . . 109 ITEM 9A. CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 ITEM 9B. OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 PART III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 11. EXECUTIVE COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS . . . . . . . ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES . . . . . . . . . . . . . . . . 110 110 110 110 110 110 PART IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES . . . . . . . . . . . 111 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 BOSTON SCIENTIFIC AND SUBSIDIARIES PART I ITEM 1. BUSINESS Business Strategy The Company We operate following five strategic imperatives: Strengthen Execution to Grow Share, Expand into High Growth Adjacencies, Boston Scientific Corporation is a worldwide developer, manufacturer and marketer of medical devices that are used in a broad range of interventional medical specialties. Our mission is to transform lives through innovative medical solutions that improve the health of patients around the world. When used in this report, the terms \"we,\" \"us,\" \"our\" and \"the Company\" mean Boston Scientific Corporation and its divisions and subsidiaries. Drive Global Expansion, Fund the Journey to Fuel Growth, and Develop Key Capabilities. We believe that our execution of these strategic imperatives will drive innovation, accelerate profitable revenue growth and increase stockholder value. Our approach to innovation combines internally-developed products and technologies with those we may obtain externally through strategic acquisitions and alliances. Our research and development efforts Our history began in the late 1960s when our co-founder, John are focused largely on the development of next-generation and Abele, acquired an equity interest in Medi-tech, Inc., a research novel technology offerings across multiple programs and divi- and development company focused on developing alternatives to sions. In addition, we have undertaken several strategic surgery. In 1969, Medi-tech introduced a family of steerable acquisitions to help us to continue to be a leader in the medical catheters used in some of the first less-invasive procedures device industry. We expect to continue to invest in our core performed. In 1979, John Abele joined with Pete Nicholas to form franchises, and also investigate opportunities to further expand Boston Scientific Corporation, which indirectly acquired Medi- our presence in, and diversify into, strategic growth adjacencies tech. This acquisition began a period of active and focused new and new global markets. During the last several years, we have product development, innovation, market development and organ- completed multiple acquisitions to strengthen our core franchises izational growth. Since then, we have advanced the practice of and expand into high growth adjacencies and global markets. To less-invasive medicine by helping physicians and other medical support the achievement of our strategic and organizational professionals diagnose and treat a wide range of diseases and objectives, we have an Enterprise Risk Management program medical conditions and improve patients' quality of life by that coordinates a consolidated view of the key risks inherent in providing alternatives to surgery and other medical procedures achieving our business strategies so we can anticipate and adapt that are typically traumatic to the body. to potential challenges to preserve and grow shareholder value. Our net sales have increased substantially since our formation. Our growth has been fueled in part by strategic acquisitions designed to improve our ability to take advantage of growth opportunities in the medical device industry and to build depth of portfolio within our focus businesses. Our strategic acquisitions have helped us to add promising new technologies to our pipeline and to offer one of the broadest product portfolios in the world for use in less-invasive procedures in our target areas of Cardiovascular, Rhythm Management, and Medical Surgical. We believe that the depth and breadth of our product portfolio has also enabled us to compete more effectively in the current healthcare environment that seeks to improve outcomes and lower costs. Our strategy of category leadership also enables us to compete in a changing contracting landscape and position our products with physicians, managed care, large buying groups, governments, and consolidation among hospitals, while also expanding internationally and managing the complexities of the global healthcare market. Our Board of Directors oversees risk management and focuses on the most significant risks facing the Company including strategic, operational, financial and legal and compliance risks. Products During 2016, our products were offered for sale by seven core businesses: Interventional Cardiology, Cardiac Rhythm Management, Endoscopy, Peripheral Interventions, Urology and Pelvic Health, Neuromodulation, and Electrophysiology. During 2016, we derived 27 percent of our sales from our Interventional Cardiology business, 22 percent of our sales from our Cardiac Rhythm Management business, 17 percent of our sales from our Endoscopy business, 12 percent of our sales from our Peripheral Interventions business, 12 percent of our sales from our Urology and Pelvic Health business, seven percent of our sales from our Neuromodulation business, and three percent of our sales from our Electrophysiology business. The following section describes certain of our product offerings. In addition, see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Annual Report for further information on our core businesses and products. 1 BOSTON SCIENTIFIC AND SUBSIDIARIES PART I Cardiovascular product, the COMET Pressure Guidewire, in the U.S., Europe, Interventional Cardiology and Japan in 2016. The iLab Ultrasound Imaging System with Drug-Eluting Coronary Stent Systems Polaris Software continues as our flagship console and is compatible with our full line of imaging catheters and FFR devices and Our broad, innovative product offerings have enabled us to are designed to enhance the diagnosis and treatment of blocked become a leader in the global interventional cardiology market. vessels and heart disorders. These systems have been placed in This leadership is due in large part to our drug-eluting coronary cardiology labs worldwide and provided an installed base through stent product offerings. Coronary stents are tiny, mesh tubes which we expect to continue to pull through products, including used in the treatment of coronary artery disease, which are the ongoing launch of our COMET FFR Pressure Guidewire. implanted in patients to prop open arteries and facilitate blood flow to and from the heart. We believe we have further enhanced Structural Heart Therapies the outcomes associated with the use of coronary stents, partic- Structural heart therapy is one of the fastest growing segments ularly the processes that lead to restenosis (the growth of of the medical technology market and is highly synergistic with neointimal tissue within an artery after angioplasty and stenting), our Interventional Cardiology and Rhythm Management busi- through scientific research and product development of drug- nesses. Through the acquisition of Sadra Medical, Inc. (Sadra) in eluting stent systems. January 2011, we have developed a fully repositionable and We market the SYNERGY Everolimus-Eluting Platinum Chro- retrievable device, the Lotus Valve System, for transcatheter mium Coronary Stent System featuring an ultra-thin abluminal aortic valve replacement (TAVR) to treat patients with severe (outer) bioabsorbable polymer coating. The SYNERGY Stent is aortic stenosis. The Lotus Valve System employs a unique unique in that both its proprietary polymer and everolimus drug Adaptive Seal feature designed to minimize the incidence of coating dissipate by three months. This innovation has the poten- paravalvular regurgitation, a predictor of mortality. The Lotus tial to improve post-implant vessel healing and will eliminate long- Valve System is CE-marked in the European Union (EU). In the term polymer exposure, which is a possible cause of late adverse U.S. it is an investigational device and not available for commer- events. In addition, we market the Promus PREMIER, cial sale. At the end of 2015, we completed enrollment in our Promus Element and Promus Element Plus Everolimus- REPRISE III pivotal clinical trial. We have three valve sizes CE Eluting Stents. marked: 23, 25 and 27mm, and we are developing 21 and 29mm size valves to complete our size matrix. In September 2016, we Other Coronary Therapies commenced a limited launch of our next generation catheter and We market a broad line of products used to treat patients with atherosclerosis, a principal cause of coronary artery obstructive disease, which is characterized by a thickening of the walls of the coronary arteries and a narrowing of arterial openings caused by the progressive development of deposits of plaque. Our product offerings include balloon catheters, rotational atherectomy systems, guide wires, guide catheters, embolic protection devices, crossing and re-entry devices for the treatment of chronically occluded coronary vessels and diagnostic catheters used in percutaneous transluminal coronary angioplasty (PTCA) procedures. 2016, we suspended our limited launch and initiated a voluntary removal of field inventory of the Lotus EDGE system due to reports that, in some cases, the device could not be fully locked during the procedure due to premature release of a pin connecting the Lotus EDGE Valve to the delivery system. In February 2017, we initiated a voluntary removal of all Lotus Valve devices, including Lotus with Depth Guard, from global commercial and clinical sites due to reports of premature release of a pin connecting the Lotus Valve to the delivery system. As with the prior announced suspension of our Lotus Edge Valve System device, we believe that the issue is caused by excess tension PCI Guidance We market a family of intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve (FFR) devices, and systems for use in coronary arteries and heart chambers as well as certain peripheral vessels. Our Intravascular Ultrasound Imaging catheter, OptiCross, has been launched in all major markets worldwide. We initiated the launch of our first FFR BOSTON SCIENTIFIC AND SUBSIDIARIES sheath, the Lotus EDGE Valve System, in Europe. In October in the pin mechanism introduced during the manufacturing process. We expect to bring the Lotus Valve platform back to market in Europe and other regions in the fourth quarter of 2017. We anticipate filing the U.S. PMA submission for the Lotus Edge Valve System, the next generation platform, in the fourth quarter of 2017, with a U.S. launch planned for mid-2018. 2 PART I Through the acquisition of Atritech, Inc. (Atritech) in March 2011, dilatation as well as conventional balloon angioplasty to open we have developed a novel device, the Watchman Left Atrial blocked peripheral arteries. With our Coyote, Mustang and Appendage Closure (LAAC) Device, designed to close the left Charger Devices, we offer balloons across all size platforms. Our atrial appendage to reduce the risk of ischemic stroke in patients peripheral stent technology includes our EPIC Self-Expanding with atrial fibrillation (AF). Watchman Device has been commer- Nitinol Stent System, our Carotid WALLSTENT Stent System, cially available internationally since 2009 and is the leading device and our Innova Self-Expanding Stent System. In addition, we in percutaneous LAAC globally. In March of 2015, Watchman market our 0.035\" Rubicon Support Catheter in both the U.S. Device received FDA approval to treat patients who are at an and Europe. We are currently conducting a pivotal study designed elevated risk of stroke, deemed suitable for warfarin, and have to evaluate the safety and performance of the Eluvia Drug- appropriate rationale to seek a non-pharmacologic alternative to Eluting Vascular Stent System, which received CE Mark in warfarin. We believe that Watchman Device will be the only February 2016 and is designed to treat patients with narrowing or LAAC technology commercially available in the U.S. for multiple blockages in the SFA or proximal popliteal artery (PPA). We are years, and in November 2015, we received CE Mark for our next also conducting an additional study on the safety and effective- generation device, Watchman FLX LAAC Device. Shortly after ness of our RANGER Drug-Coated Balloon. approval, we began a European initial market release of Watchman FLX Device. The initial market release was suspended near the end of the first quarter of 2016 due to a higher than expected rate of device embolization. Following an extensive data evaluation, we have decided to pursue certain design enhancements prior to returning a next generation device to market. In August 2014, we acquired the Interventional Division of Bayer AG (Bayer). The addition of Bayer innovative technologies supports our strategy to provide a comprehensive portfolio of leading solutions to treat peripheral vascular disease, including venous disease. The transaction included the leading AngioJet Thrombectomy System which is used in endovascular procedures to remove blood clots from blocked arteries and veins, and the On December 12, 2016, we completed the acquisition of certain JetStream Atherectomy System, used to remove plaque and manufacturing assets and capabilities of the Neovasc, Inc. thrombi from diseased arteries. We have since launched the advanced biological tissue business and made a 15 percent equity AngioJet ZelanteDVT Thrombectomy Catheter to treat deep investment in Neovasc. With this acquisition, we will integrate vein thrombosis (DVT) in large-diameter upper and lower limb certain manufacturing assets and biologic tissue capabilities into peripheral veins, in the U.S. and Europe. our structural heart business for use in the manufacturing of the Lotus Valve System and future heart valve technologies within our Interventional Cardiology business. We began the process of integrating Neovasc into our Interventional Cardiology business in the fourth quarter of 2016 and expect to be substantially complete by the end of 2018. We also sell products designed to treat patients with non-vascular disease (disease that appears outside the blood system), primarily in interventional oncology. Our non-vascular suite of products includes biliary stents, drainage catheters and micro-puncture sets designed to treat, diagnose and ease various forms of benign and malignant tumors. We market our Direxion Torqueable Microcatheter in both the U.S. and Europe. In addition, we con- Peripheral Interventions tinue to market our extensive line of interventional oncology We sell various products designed to treat patients with periph- product solutions, including the Renegade HI-FLO Fathom eral arterial disease (disease which appears in blood vessels other Microcatheter and guidewire system and Interlock35 Fibered than in the heart and in the biliary tree), including a broad line of IDC and 18 Fibered IDC Occlusion System for peripheral medical devices used in percutaneous transluminal angioplasty embolization. (PTA) and peripheral vascular stenting. Our peripheral product offerings include stents, balloon catheters, wires, peripheral On December 31, 2015, we completed the acquisition of the inter- embolization devices and vena cava filters. Our peripheral angio- ventional radiology business of CeloNo