Boston Scientific Corp. (BSX)
Analysis of Inventory
Accounting Policy on Inventory
Boston Scientific states inventories at the lower of first-in, first-out cost or net realizable value. Boston Scientific bases the provisions for excess, expired and obsolete inventory primarily on the estimates of forecasted net sales. A significant change in the timing or level of demand for Boston Scientific’s products as compared to forecasted amounts may result in recording additional provisions for excess, expired and obsolete inventory in the future. Further, the industry in which Boston Scientific participates is characterized by rapid product development and frequent new product introductions. Uncertain timing of next-generation product approvals, variability in product launch strategies, product recalls and variation in product utilization all affect Boston Scientific’s estimates related to excess, expired and obsolete inventory. Approximately 40 percent of Boston Scientific’s finished goods inventory as of both December 31, 2018 and December 31, 2017 was at customer locations pursuant to consignment arrangements or held by sales representatives.
Source: 10-K (filing date: 2019-02-19).
Boston Scientific Corp., balance sheet: inventory
US$ in millions
|Dec 31, 2018||Dec 31, 2017||Dec 31, 2016||Dec 31, 2015||Dec 31, 2014|
|Inventories||Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.||Boston Scientific Corp.’s inventories increased from 2016 to 2017 and from 2017 to 2018.|