EXHIBIT 12.1
BOSTON SCIENTIFIC CORPORATION
STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (Unaudited)
(In thousands)
Year Ended December 31,
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1998 1997 1996 1995 1994
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Fixed charges:
Interest expense $67,573 $14,285 $11,518 $9,591 $8,378
Capitalized interest 4,460 4,976
Debt issuance costs 1,675 65 501
Interest portion of rental expense 16,361 14,354 8,534 5,802 5,370
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Total fixed charges $90,069 $33,680 $20,553 $15,393 $13,748
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Earnings:
Income (loss) before income taxes
and cumulative effect of
change in accounting $(275,314) $215,131 $303,330 $62,678 $219,703
Fixed charges per above 90,069 33,680 20,553 15,393 13,748
Less: capitalized interest 4,460 4,976
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Total earnings, as adjusted $(189,705) $243,835 $323,883 $78,071 $233,451
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Ratio of earnings to fixed charges 7.24 15.76 5.07 16.98
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Coverage deficiency (1) $(279,774)
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Supplemental pro forma coverage deficiency (2) $(345,507)
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(1) Includes noncash special charges of $646 million recorded in connection
with the acquisition of Schneider Worldwide and other merger-related
initiatives.
(2) Reflects the coverage deficiency as if the acquisition of Schneider
Worldwide occurred at the beginning of 1998, with pro forma adjustments to
give effect to amortization of intangibles, an increase in interest expense
on acquisition financing and certain other adjustments.