-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AMzkMDR3kD4fkd2gNcJ7zpirvkwOIOpyNFAAZhfgctRXREeL9BMqWvg5tVEVtQth rGGhHR40Fxdzn2jUw1/YHg== 0000950135-99-003383.txt : 19990701 0000950135-99-003383.hdr.sgml : 19990701 ACCESSION NUMBER: 0000950135-99-003383 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990630 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOSTON SCIENTIFIC CORP CENTRAL INDEX KEY: 0000885725 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 042695240 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-11083 FILM NUMBER: 99657150 BUSINESS ADDRESS: STREET 1: ONE BOSTON SCIENTIFIC PL CITY: NATICK STATE: MA ZIP: 01760-1537 BUSINESS PHONE: 5086508000 11-K 1 BOSTON SCIENTIFIC CORPORATION 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One): [X] Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required) For the fiscal year ended December 31, 1998 OR [ ] Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required) For the transition period from ________________ to ________________ Commission file number: 1-11083 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Boston Scientific Corporation 401(k) Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Boston Scientific Corporation One Boston Scientific Place Natick, MA 01760-1537 2 AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES BOSTON SCIENTIFIC CORPORATION 401(k) SAVINGS PLAN YEARS ENDED DECEMBER 31, 1998 AND 1997 3 BOSTON SCIENTIFIC CORPORATION 401(K) SAVINGS PLAN AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES YEARS ENDED DECEMBER 31, 1998 AND 1997 CONTENTS Report of Ernst & Young LLP Independent Auditors........................... 1 Audited Financial Statements Statements of Net Assets Available for Plan Benefits....................... 2 Statements of Changes in Net Assets Available for Plan Benefits............ 3-4 Notes to Financial Statements.............................................. 5-7 Supplemental Schedules Line 27a - Schedule of Assets Held for Investment Purposes................. 8 Line 27d - Schedule of Reportable Transactions ............................ 9 4 REPORT OF ERNST & YOUNG LLP INDEPENDENT AUDITORS 401(k) Plan Committee Boston Scientific Corporation 401(k) Savings Plan We have audited the accompanying statements of net assets available for plan benefits of the Boston Scientific Corporation 401(k) Savings Plan (the Plan) as of December 31, 1998 and 1997, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits at December 31, 1998 and 1997, and the changes in its net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1998, and reportable transactions for the year then ended, are presented for purpose of additional analysis and are not a required part of the financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The Fund Information in the statements of changes in net assets available for plan benefits is presented for the purpose of additional analysis rather than to present the changes in net assets available for plan benefits of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in our audit of the 1998 financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. Ernst & Young LLP Boston, Massachusetts June 17, 1999 1 5 Boston Scientific Corporation 401(k) Savings Plan Statements of Net Assets Available for Plan Benefits
DECEMBER 31 1998 1997 ----------------------------- Assets Investments, at fair value Registered investment companies: Vanguard Bond Index Fund $ 2,189,449 $ 334,948 Vanguard Index Trust 500 Portfolio 44,021,032 31,398,044 Vanguard International Growth Portfolio 12,783,403 11,050,434 Vanguard U.S. Growth Portfolio 47,633,348 30,981,760 Vanguard Wellington Fund 14,477,989 9,394,773 Vanguard Windsor II Fund 3,962,398 1,135,188 Warburg Pincus Emerging Growth Fund 4,167,651 689,207 ------------ ------------ 129,235,270 84,984,354 BSC Stock Fund 51,666,674 34,502,333 Pfizer Stock Fund 49,563,851 -- Participants' notes receivable 9,248,682 5,762,196 ------------ ------------ 110,479,207 40,264,529 Investments, at contract value Income Fund 15,088,490 13,897,195 Receivables: Contributions receivable from participants 1,234,353 808,474 Contributions receivable from Plan Sponsor 294,056 182,580 ------------ ------------ 1,528,409 991,054 ------------ ------------ Net assets available for plan benefits $256,331,376 $140,137,132 ============ ============
See accompanying notes. 2 6 BOSTON SCIENTIFIC CORPORATION 401(k) SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ================================================================================
For the Year Ended December 31, 1998 ------------------------------------------------------------------------------------------------- Vanguard Vanguard Vanguard Vanguard Vanguard Income Index Trust Bond Index International U.S. Growth Wellington Total Fund 500 Portfolio Fund Growth Portfolio Portfolio Fund ------------ ----------- ------------- ---------- ---------------- ------------ ----------- Additions to net assets attributed to: Investment income: Interest and dividend income $ 7,350,040 $ 806,265 $ 673,037 $ 109,538 $ 257,558 $ 2,927,786 $ 1,583,360 Contributions: Contributions and rollovers from participants 83,324,143 2,497,442 6,180,683 709,067 2,629,423 5,271,214 5,282,845 Contributions from Plan Sponsor 6,284,549 470,531 1,215,514 86,327 462,974 1,159,266 444,494 ------------ ----------- ----------- ---------- ----------- ------------ ----------- 89,608,692 2,967,973 7,396,197 795,394 3,092,397 6,430,480 5,727,339 ------------ ----------- ----------- ---------- ----------- ------------ ----------- Total additions 96,958,732 3,774,238 8,069,234 904,932 3,349,955 9,358,266 7,310,699 ------------ ----------- ----------- ---------- ----------- ------------ ----------- Deductions from net assets attributed to: Benefits paid to participants 12,738,301 1,976,500 2,946,100 121,786 1,056,392 2,390,465 1,362,331 ------------ ----------- ----------- ---------- ----------- ------------ ----------- Net increase (decrease) prior to loans, transfers and other activity 84,220,431 1,797,738 5,123,134 783,146 2,293,563 6,967,801 5,948,368 Loans, transfers and other activity, net -- (606,443) (1,224,837) 1,038,090 (2,202,659) (423,943) (813,922) Net realized and unrealized gain (loss) on investments 31,973,813 -- 8,724,691 33,265 1,642,065 10,107,730 (51,230) ------------ ----------- ----------- ---------- ----------- ------------ ----------- Net increase 116,194,244 1,191,295 12,622,988 1,854,501 1,732,969 16,651,588 5,083,216 Net assets available for plan benefits: Beginning Balance, January 1, 1998 140,137,132 13,897,195 31,398,044 334,948 11,050,434 30,981,760 9,394,773 ------------ ----------- ----------- ---------- ----------- ------------ ----------- Ending Balance, December 31, 1998 $256,331,376 $15,088,490 $44,021,032 $2,189,449 $12,783,403 $ 47,633,348 $14,477,989 ============ =========== =========== ========== =========== ============ =========== For the Year Ended December 31, 1998 ---------------------------------------------------------------------------------------------- Vanguard Warburg Pincus BSC Pfizer Participant Windsor II Emerging Growth Stock Stock Notes Contributions Fund Fund Fund Fund Receivable Receivable ---------- --------------- ----------- ----------- ----------- ------------- Additions to net assets attributed to: Investment income: Interest and dividend income $ 386,165 $ 6,046 $ -- $ -- $ 600,285 $ -- Contributions: Contributions and rollovers from participants 1,407,013 4,262,234 7,655,981 44,213,962 1,979,926 1,234,353 Contributions from Plan Sponsor 214,121 216,691 1,720,575 -- -- 294,056 ---------- ---------- ----------- ----------- ---------- ---------- 1,621,134 4,478,925 9,376,556 44,213,962 1,979,926 1,528,409 ---------- ---------- ----------- ----------- ---------- ---------- Total additions 2,007,299 4,484,971 9,376,556 44,213,962 2,580,211 1,528,409 ---------- ---------- ----------- ----------- ---------- ---------- Deductions from net assets attributed to: Benefits paid to participants 97,950 534,940 1,626,677 -- 625,160 -- ---------- ---------- ----------- ----------- ---------- ---------- Net increase (decrease) prior to loans, transfers and other activity 1,909,349 3,950,031 7,749,879 44,213,962 1,955,051 1,528,409 Loans, transfers and other activity, net 926,428 (616,806) 3,383,711 -- 1,531,435 (991,054) Net realized and unrealized gain (loss) on investments (8,567) 145,219 6,030,751 5,349,889 -- -- ---------- ---------- ----------- ----------- ---------- ---------- Net increase 2,827,210 3,478,444 17,164,341 49,563,851 3,486,486 537,355 Net assets available for plan benefits: Beginning Balance, January 1, 1998 1,135,188 689,207 34,502,333 -- 5,762,196 991,054 ---------- ---------- ----------- ----------- ---------- ---------- Ending Balance, December 31, 1998 $3,962,398 $4,167,651 $51,666,674 $49,563,851 $9,248,682 $1,528,409 ========== ========== =========== =========== ========== ==========
See accompanying notes. 3 7 BOSTON SCIENTIFIC CORPORATION 401(k) SAVINGS PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION ================================================================================
For the Year Ended December 31, 1997 ------------------------------------------------------------------------------------------------- Fidelity Fidelity Scudder Vanguard Vanguard Income Balanced Magellan Global Index Trust Bond Index Total Fund Fund Fund Fund 500 Portfolio Fund ------------ ----------- ----------- ----------- ----------- ------------- ---------- Additions to net assets attributed to: Investment income: Interest and dividend income $ 4,982,647 $ 649,910 $ 144,460 $ 714,672 $ -- $ 648,689 $ 4,552 Contributions: Contributions and rollovers from participants 39,295,971 5,774,770 1,745,612 4,703,934 3,309,916 9,441,847 85,339 Contributions from Plan Sponsor 4,386,070 407,810 119,340 460,377 202,498 885,310 5,165 ------------ ----------- ----------- ----------- ----------- ----------- -------- 43,682,041 6,182,580 1,864,952 5,164,311 3,512,414 10,327,157 90,504 ------------ ----------- ----------- ----------- ----------- ----------- -------- Total additions 48,664,688 6,832,490 2,009,412 5,878,983 3,512,414 10,975,846 95,056 ------------ ----------- ----------- ----------- ----------- ----------- -------- Deductions from net assets attributed to: Benefits paid to participants 7,851,963 2,303,494 321,347 569,201 544,025 1,664,754 750 ------------ ----------- ----------- ----------- ----------- ----------- -------- Net increase (decrease) prior to loans, transfers and other activity 40,812,725 4,528,996 1,688,065 5,309,782 2,968,389 9,311,092 94,306 Loans, transfers and other activity, net -- (1,758,465) (8,137,233) (32,611,427) (13,772,534) (1,989,965) 238,274 Net realized and unrealized gain (loss) on investments 3,233,194 -- 808,366 3,465,283 2,007,832 7,005,363 2,368 ------------ ----------- ----------- ----------- ----------- ----------- -------- Net increase 44,045,919 2,770,531 (5,640,802) (23,836,362) (8,796,313) 14,326,490 334,948 Net assets available for plan benefits: Beginning Balance, January 1, 1997 96,091,213 11,126,664 5,640,802 23,836,362 8,796,313 17,071,554 -- ------------ ----------- ----------- ----------- ----------- ----------- -------- Ending Balance, December 31, 1997 $140,137,132 $13,897,195 $ -- $ -- $ -- $31,398,044 $334,948 ============ =========== =========== =========== =========== =========== ======== For the Year Ended December 31, 1997 ------------------------------------------------------------------------------------------------------ Vanguard Warburg Pincus International Vanguard Vanguard Vanguard Emerging BSC Participant Growth U.S. Growth Wellington Windsor II Growth Stock Notes Receivables Portfolio Portfolio Fund Fund Fund Fund Receivable and Other ------------- ----------- ---------- ---------- ------------- ---------- ----------- ----------- Additions to net assets attributed to: Investment income: Interest and dividend income $ 470,806 $ 1,204,653 $ 671,336 $ 81,562 35,178 $ -- $ 356,829 $ -- Contributions: Contributions and rollovers from participants 1,104,890 2,279,088 800,254 211,634 194,397 8,226,326 609,491 808,473 Contributions from Plan Sponsor 222,872 522,225 152,280 18,826 15,937 1,190,849 -- 182,581 ----------- ----------- ---------- ---------- -------- ----------- ---------- ---------- 1,327,762 2,801,313 952,534 230,460 210,334 9,417,175 609,491 991,054 ----------- ----------- ---------- ---------- -------- ----------- ---------- ---------- Total additions 1,798,568 4,005,966 1,623,870 312,022 245,512 9,417,175 966,320 991,054 ----------- ----------- ---------- ---------- -------- ----------- ---------- ---------- Deductions from net assets attributed to: Benefits paid to participants 245,641 813,283 219,156 4,933 279 986,720 178,380 -- ----------- ----------- ---------- ---------- -------- ----------- ---------- ---------- Net increase (decrease) prior to loans, transfers and other activity 1,552,927 3,192,683 1,404,714 307,089 245,233 8,430,455 787,940 991,054 Loans, transfers and other activity, net 11,356,203 26,952,608 7,974,278 875,361 485,512 9,928,974 1,648,262 (1,189,848) Net realized and unrealized gain (loss) on investments (1,858,696) 836,469 15,781 (47,262) (41,538) (8,960,772) -- -- ----------- ----------- ---------- ---------- -------- ----------- ---------- ---------- Net increase 11,050,434 30,981,760 9,394,773 1,135,188 689,207 9,398,657 2,436,202 (198,794) Net assets available for plan benefits: Beginning Balance, January 1, 1997 -- -- -- -- -- 25,103,676 3,325,994 1,189,848 ----------- ----------- ---------- ---------- -------- ----------- ---------- ---------- Ending Balance, December 31, 1997 $11,050,434 $30,981,760 $9,394,773 $1,135,188 $689,207 $34,502,333 $5,762,196 $ 991,054 =========== =========== ========== ========== ======== =========== ========== ==========
4 8 Boston Scientific Corporation 401(k) Savings Plan Notes To Financial Statements Years Ended December 31, 1998 and 1997 1. DESCRIPTION OF THE PLAN The Boston Scientific Corporation 401(k) Savings Plan (the Plan) was amended and restated effective January 1, 1997. Administrative responsibilities transferred from New York Life Benefit Services to The Vanguard Group (the plan administrator) effective July 1, 1997. Plan funds upon conversion transferred to similar funds under the Vanguard administration. Participants were given the opportunity to self direct these transfers if desired. The Plan is a defined contribution plan covering all eligible employees who have completed 30 days of service and have attained 21 years of age. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). A participant may contribute between 1% and 15% of his or her pretax annual compensation each year. Boston Scientific Corporation's (the Company) matching contribution is the lesser of 50% of the participant's elective contribution or 2% of eligible compensation, as defined. The Plan was amended, effective January 1, 1998, to include other employer contributions. The Company shall contribute to the Plan such amounts as determined by the Board of Directors (the Board) on behalf of certain eligible participants. The Plan was amended effective September 11, 1998, to include a special matching contribution by the Company on behalf of participants who were employed by certain subsidiaries of Pfizer, Inc. which were acquired by the Company on September 10, 1998. The special matching contribution shall be equal to (i) 50% of the elective contributions made on behalf of such eligible participant with respect to each applicable period which do not exceed 2% of the eligible participant's compensation for such period, and (ii) 50% of the elective contributions which exceed 4% but do not exceed 6% of such eligible participant's compensation for such period. This will be in effect through September 10, 2000. The September 11, 1998 amendment also established an investment fund to hold shares of Pfizer Inc. common stock transferred from the Pfizer Savings and Investment Plan for Schneider employees. No contributions can be made to this fund and any earnings on this fund will be allocated to a participant's current investment elections under the Plan. A participant can transfer amounts out of the Pfizer stock fund to other investment funds within the Plan. The plan was amended effective November 16, 1998 allowing withdrawals from a rollover account for any reason and allowing totally disabled participants, as defined in the long term disability contract, to take withdrawals at any time regardless of age. For the two Plan years beginning January 1, 1999 and January 1, 2000, the Company shall contribute on behalf of each Schneider Participant, 3% of such eligible participant's compensation. At the discretion of the Board, the Company may also make an additional discretionary contribution. Employees with three or more years of credited service on December 31, 1992 will be fully vested in such amounts and all other employees will become fully vested in such amounts after five years of credited service. No additional discretionary contribution was made in 1998 or 1997. 5 9 Boston Scientific Corporation 401(k) Savings Plan Notes To Financial Statements (continued) 1. DESCRIPTION OF THE PLAN (CONTINUED) A participant can allocate his or her account among various investment funds. Each participant's account is credited with the participant's contribution, the Company's contribution and an allocation of Plan earnings. The allocations of earnings are based upon each participant's account balance by fund in relation to all participants' account balances by fund. Each participant is fully vested in his or her account, except as discussed above regarding discretionary contributions. The benefit to which a participant is entitled is the benefit included in the participant's account. A participant may borrow from his or her fund account a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of his or her account balance. Loan terms range up to 5 years or up to 10 years for the purchase of a primary residence. However, participants of the defined contribution plans of the acquired companies (refer to Note 2) may retain the loan terms granted under their former plans. Loan terms related to these participants range up to 5 years or up to 10 years for the purchase of a primary residence. The loan is secured by the balance in the participant's account and bears interest at a rate commensurate with local prevailing rates as determined by the Plan Administrator. Interest rates on loans outstanding at December 31, 1998 ranged from 6.3% to 12.0%. Principal and interest are paid ratably through payroll deductions. Upon retirement or termination of service, a participant either receives a lump-sum amount equal to the value of his or her account, a variable or a fixed installment option. If a participant's balance is greater than a preset amount, he or she has the option of leaving the funds invested in the Plan. A participant may withdraw all or a portion of his or her contributions to the extent necessary to meet a financial hardship. Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. The foregoing description of the Plan provides only general information. Participants should refer to the "Summary Plan Description" and the Plan document for a more complete description of the Plan's provisions. Copies are available from the 401(k) Administrative Committee. 2. BOSTON SCIENTIFIC CORPORATION MERGERS AND ACQUISITIONS During 1995, the Company completed five strategic acquisitions. The Company merged one of the defined contribution plans of the acquired companies into the Plan during 1995, one during 1996, and two in 1997. The defined contribution plan of the other acquired company was terminated in 1996. During 1996, the Company completed two additional strategic acquisitions. The Company merged the defined contribution plan of one of the acquired companies into the Plan in May, 1996. The defined contribution plan of the other acquired company was merged into the Plan in January, 1997. During 1997, the Company completed a strategic acquisition. The Company merged the defined contribution plan of the acquired company into the Plan in January, 1998. During 1998, the Company completed a strategic acquisition. The Company merged the participant's loan fund of the defined contribution plan of the acquired company into the Plan in October 1998, the Pfizer stock fund in November 1998 and the remaining funds in January 1999. 6 10 Boston Scientific Corporation 401(k) Savings Plan Notes To Financial Statements (continued) 3. SIGNIFICANT ACCOUNTING POLICIES The accounting records of the Plan are maintained on the accrual basis. Investments are stated at fair value. Shares of mutual funds are valued at quoted market prices which represent the net asset value of shares held by the fund. Securities listed on a registered stock exchange are valued by the Plan Administrator at the last reported sales price on the last business day of the Plan year. The participant notes receivable are valued at cost which approximates fair value. The income fund includes guaranteed investment contracts issued by banks, insurance companies or other financial institutions pursuant to amounts deposited and interest at such fixed, variable or other rates specified under the terms of the agreement. Assets are valued at fair market value. A unit method is used to determine the equitable share of each participating trust in the fund and the fund is intended to maintain a share value of one dollar. The crediting interest rate as of December 31, 1998 and the average yield for the year then ended was 5.3%. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. 4. TRANSACTIONS WITH PARTIES-IN-INTEREST Fees for legal, accounting and other services rendered during the year by parties-in-interest were paid by the Company. On November 30, 1998 a two-for-one stock split in the form of a 100% stock dividend was paid by the Company to stockholders of record as of November 13, 1998. Accordingly, the Plan received a common stock dividend as a result of its investment in the BSC Stock Fund. During 1997, the Company did not declare or pay any dividends. 5. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated February 20, 1998, stating that the Plan is qualified under Section 401 (a) of the Internal Revenue Code (the "Code") and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. 6. YEAR 2000 ISSUE (UNAUDITED) The Company's new global information system is Year 2000 compliant and it is assessing other internal programs to determine if they are Year 2000 compliant. The project also includes determining whether third party service providers have reasonable plans in place to become year 2000 ready. Costs related to the Year 2000 project will be borne by the Company and third party service providers. The Company does not expect this project to have significant effect on Plan operations. 7 11 Boston Scientific Corporation 401(k) Savings Plan EIN #04-2695240 Plan #001 Line 27a - Schedule of Assets Held for Investment Purposes December 31, 1998
Current Identity of Issue Shares or Units Cost Value - ----------------- --------------- ------------ ------------ Bankers Trust: Income Fund 7,759,638 $ 7,759,638 $ 7,759,638 Warburg Pincus: Emerging Growth Fund 104,269 3,963,979 4,167,651 Vanguard Group:* Index Trust 500 Portfolio 386,319 31,573,179 44,021,032 Money Market Reserves Prime Portfolio 7,328,852 7,328,852 7,328,852 Bond Index Fund 213,189 2,175,628 2,189,449 International Growth Portfolio 681,055 12,643,492 12,783,403 U.S. Growth Portfolio 1,270,561 37,857,379 47,633,348 Wellington Fund 493,288 14,685,552 14,477,989 Windsor II 132,744 4,041,727 3,962,398 Boston Scientific Corporation:* Stock Fund 1,926,962 50,313,387 51,666,674 Pfizer Stock Fund 395,128 4,901,407 49,563,851 Participant notes receivable 6.3% to 12.0% -- 9,248,682 ------------ ------------ $177,244,220 $254,802,967 ============ ============ * Indicates party-in-interest to the Plan.
8 12 Boston Scientific Corporation 401(k) Savings Plan EIN #04-2695240 Plan #001 Line 27d - Schedule of Reportable Transactions Year Ended December 31, 1998
Total Number of Transactions Made by the Plan Total Dollar Total Dollar During the Year Value of Value of Net Identity of Party Involved Description of Assets Purchases Sales Purchases Sales Gain(Loss) - -------------------------- --------------------- --------- ----- ------------ ------------ --------- Category (iii)--Series of transactions in excess of 5% of plan assets Vanguard Money Market Reserves Prime Portfolio Income Fund 143 128 $ 9,375,752 $ 8,579,692 $ -- Vanguard Group*: Index Trust 500 Portfolio 236 250 20,052,073 16,153,167 3,973,277 Bond Index Fund 198 126 5,554,797 3,936,151 21,768 International Growth Portfolio 178 247 4,211,713 4,761,576 (205,204) U.S. Growth Portfolio 230 250 15,939,048 9,401,127 1,013,331 Wellington Fund 180 245 6,097,345 3,979,548 140,223 Windsor II Fund 189 160 5,961,729 3,126,829 24,961 Boston Scientific Corporation* Stock Fund 245 252 41,302,599 30,164,632 7,233,002
* Indicates party-in-interest to the Plan. THERE WERE NO CATEGORY (i), (ii), OR (iv) REPORTABLE TRANSACTIONS DURING 1998. 9 13 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustee (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. Boston Scientific Corporation 401(k) Savings Plan Date: June 30, 1999 By: /s/ Lawrence C. Best --------------------------------- Lawrence C. Best Plan Administrator and Senior Vice President - Finance and Administration and Chief Financial Officer of Boston Scientific Corporation EX-23.1 2 CONSENT OF ERNST & YOUNG LLP 1 Exhibit 23.1 Consent of Independent Auditors We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-89772) pertaining to the Boston Scientific Corporation 401(k) Savings Plan of our report dated June 17, 1999, with respect to the financial statements and schedules of the Boston Scientific Corporation 401(k) Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1998. ERNST & YOUNG LLP Boston, Massachusetts June 25, 1999 -----END PRIVACY-ENHANCED MESSAGE-----