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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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2000 1999 1998 1997 1996
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Fixed charges:
Interest expense $ 69,502 $ 117,567 $ 67,573 $ 14,285 $ 11,518
Capitalized interest 650 4,460 4,976
Debt issuance costs 1,300 3,521 1,675 65 501
Interest portion of rental expense 14,748 15,126 16,361 14,354 8,534
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Total fixed charges $ 85,550 $ 136,864 $ 90,069 $ 33,680 $ 20,553
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Earnings:
Income (loss) before income taxes and cumulative
effect of change in accounting $526,751 $ 562,468 ($275,314) $215,131 $303,330
Fixed charges per above 85,550 136,864 90,069 33,680 20,553
Net distributed/(undistributed) equity in earnings of
equity investees 12,926 (1,375)
Less: capitalized interest 650 4,460 4,976
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Total earnings, as adjusted $625,227 $ 697,307 ($189,705) $243,835 $323,883
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Ratio of earnings to fixed charges 7.31 5.09 7.24 15.76
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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.