Boston Scientific Announces Results for Fourth Quarter and Year Ended Decembe...(/p evaluation of the Company's curr...)

evaluation of the Company's current operating performance and

comparison to the Company's past operating performance.

Material Limitations Associated with the Use of Non-GAAP Financial

Measures

Non-GAAP net income, non-GAAP net income per diluted share, and regional

and divisional revenue growth rates that exclude the impact of foreign

exchange may have limitations as analytical tools, and these non-GAAP

measures should not be considered in isolation or as a replacement for

GAAP financial measures. Some of the limitations associated with the use

of these non-GAAP financial measures are:

-- Items such as purchased research and development, the step-up value of

acquired Guidant inventory sold during the period, the CRM technology

offering charge, the loss on assets held for sale, and the fair value

adjustment related to the sharing of proceeds feature of the Abbott

stock purchase reflect economic costs to the Company and are not

reflected in non-GAAP net income and non-GAAP net income per diluted

share.

-- Items such as Guidant integration costs, facility and severance costs,

employee-related costs associated with certain business optimization

initiatives, the charitable contribution, and restructuring and

litigation-related expenses that are excluded from non-GAAP net income

and non-GAAP net income per diluted share can have a material impact on

cash flows and GAAP net income and net income per diluted share.

-- Items such as amortization of purchased intangible assets, though not

directly affecting Boston Scientific's cash flow position, represent a

reduction in value of intangible assets over time. The expense

associated with this reduction in value is not included in Boston

Scientific's non-GAAP net income or non-GAAP net income per diluted