Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Boston Scientific Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net sales	12,682)	11,888)	9,913)	10,735)	9,823)
Cost of products sold	(3,955)	(3,711)	(3,465)	(3,115)	(2,812)
Gross profit	8,727)	8,177)	6,448)	7,620)	7,011)
Selling, general and administrative expenses	(4,519)	(4,358)	(3,788)	(3,941)	(3,570)
Research and development expenses	(1,323)	(1,204)	(1,143)	(1,174)	(1,113)
Royalty expense	(47)	(49)	(45)	(65)	(70)
Amortization expense	(803)	(741)	(789)	(699)	(599)
Goodwill impairment charges	—)	—)	(73)	—)	—)
Intangible asset impairment charges	(132)	(370)	(460)	(105)	(35)
Contingent consideration net (expense) benefit	(35)	136)	100)	35)	21)
Restructuring net charges	(24)	(40)	(52)	(38)	(36)
Litigation-related net charges	(173)	(430)	(278)	(115)	(103)
Gain (loss) on disposal of businesses and assets	(22)	78)	—)	—)	—)
Operating expenses	(7,078)	(6,978)	(6,528)	(6,102)	(5,505)
Operating income (loss)	1,649)	1,199)	(80)	1,518)	1,506)
Interest expense	(470)	(341)	(361)	(473)	(241)
Other, net	(38)	218)	362)	(358)	157)
Other income (expense)	(508)	(123)	1)	(831)	(84)
Income (loss) before income taxes	1,141)	1,076)	(79)	687)	1,422)
Income tax (expense) benefit	(443)	(35)	(3)	4,013)	249)
Net income (loss)	698)	1,041)	(82)	4,700)	1,671)
Preferred stock dividends	(56)	(56)	(33)	—)	—)
Net income (loss) available to common stockholders	642)	985)	(115)	4,700)	1,671)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial performance from 2018 to 2022 is characterized by consistent top-line growth offset by significant operational volatility and non-recurring charges, particularly during the 2020 fiscal year.

Revenue and Gross Profit Trends: Net sales grew from US$ 9,823 million in 2018 to US$ 12,682 million in 2022. While a temporary decline was noted in 2020, where sales dropped to US$ 9,913 million, the subsequent recovery was robust, with a compound growth trajectory resuming in 2021 and 2022. Gross profit mirrored this trend, reaching US$ 8,727 million by 2022, though it suffered a significant contraction in 2020 to US$ 6,448 million.
Operating Expense Analysis: Operating expenses increased steadily from US$ 5,505 million in 2018 to US$ 7,078 million in 2022. Selling, general and administrative (SG&A) expenses grew from US$ 3,570 million to US$ 4,519 million over the period. Research and development (R&D) spending also trended upward, rising from US$ 1,113 million to US$ 1,323 million, indicating a continuous investment in innovation despite fluctuating profitability.
Operational Stability and Impairments: Operating income experienced severe volatility, transitioning from a profit of US$ 1,506 million in 2018 to an operating loss of US$ 80 million in 2020. This loss was heavily influenced by non-cash charges, specifically a US$ 460 million intangible asset impairment and a US$ 73 million goodwill impairment in 2020. Litigation-related charges also acted as a persistent drag on operating results, peaking at US$ 430 million in 2021 before receding to US$ 173 million in 2022.
Net Income and Tax Anomalies: Net income figures were highly irregular due to non-operating factors. In 2019, net income spiked to US$ 4,700 million, an increase primarily attributable to a massive income tax benefit of US$ 4,013 million rather than organic operational growth. The subsequent year, 2020, resulted in a net loss of US$ 82 million. By 2022, net income available to common stockholders stood at US$ 642 million, representing a decline from the US$ 985 million reported in 2021, despite the increase in net sales.

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Boston Scientific Corp. (NYSE:BSX)

Income Statement