<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
[X] Annual report pursuant to Section 15(d) of the Securities Exchange Act
of 1934 (No Fee Required)
For the fiscal year ended December 31, 1998
OR
[ ] Transition report pursuant to Section 15(d) of the Securities Exchange
Act of 1934 (No Fee Required)
For the transition period from ________________ to ________________
Commission file number: 1-11083
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
Boston Scientific Corporation
401(k) Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
Boston Scientific Corporation
One Boston Scientific Place
Natick, MA 01760-1537
<PAGE> 2
AUDITED FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
BOSTON SCIENTIFIC CORPORATION
401(k) SAVINGS PLAN
YEARS ENDED DECEMBER 31, 1998 AND 1997
<PAGE> 3
BOSTON SCIENTIFIC CORPORATION 401(K) SAVINGS PLAN
AUDITED FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
YEARS ENDED DECEMBER 31, 1998 AND 1997
CONTENTS
Report of Ernst & Young LLP Independent Auditors........................... 1
Audited Financial Statements
Statements of Net Assets Available for Plan Benefits....................... 2
Statements of Changes in Net Assets Available for Plan Benefits............ 3-4
Notes to Financial Statements.............................................. 5-7
Supplemental Schedules
Line 27a - Schedule of Assets Held for Investment Purposes................. 8
Line 27d - Schedule of Reportable Transactions ............................ 9
<PAGE> 4
REPORT OF ERNST & YOUNG LLP INDEPENDENT AUDITORS
401(k) Plan Committee
Boston Scientific Corporation
401(k) Savings Plan
We have audited the accompanying statements of net assets available for plan
benefits of the Boston Scientific Corporation 401(k) Savings Plan (the Plan) as
of December 31, 1998 and 1997, and the related statements of changes in net
assets available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits at December
31, 1998 and 1997, and the changes in its net assets available for plan benefits
for the years then ended, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purpose of additional
analysis and are not a required part of the financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of the
Plan's management. The Fund Information in the statements of changes in net
assets available for plan benefits is presented for the purpose of additional
analysis rather than to present the changes in net assets available for plan
benefits of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in our audit of the 1998 financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
Ernst & Young LLP
Boston, Massachusetts
June 17, 1999
1
<PAGE> 5
Boston Scientific Corporation 401(k) Savings Plan
Statements of Net Assets Available for Plan Benefits
<TABLE>
<CAPTION>
DECEMBER 31
1998 1997
-----------------------------
<S> <C> <C>
Assets
Investments, at fair value
Registered investment companies:
Vanguard Bond Index Fund $ 2,189,449 $ 334,948
Vanguard Index Trust 500 Portfolio 44,021,032 31,398,044
Vanguard International Growth Portfolio 12,783,403 11,050,434
Vanguard U.S. Growth Portfolio 47,633,348 30,981,760
Vanguard Wellington Fund 14,477,989 9,394,773
Vanguard Windsor II Fund 3,962,398 1,135,188
Warburg Pincus Emerging Growth Fund 4,167,651 689,207
------------ ------------
129,235,270 84,984,354
BSC Stock Fund 51,666,674 34,502,333
Pfizer Stock Fund 49,563,851 --
Participants' notes receivable 9,248,682 5,762,196
------------ ------------
110,479,207 40,264,529
Investments, at contract value
Income Fund 15,088,490 13,897,195
Receivables:
Contributions receivable from participants 1,234,353 808,474
Contributions receivable from Plan Sponsor 294,056 182,580
------------ ------------
1,528,409 991,054
------------ ------------
Net assets available for plan benefits $256,331,376 $140,137,132
============ ============
</TABLE>
See accompanying notes.
2
<PAGE> 6
BOSTON SCIENTIFIC CORPORATION 401(k) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
For the Year Ended December 31, 1998
-------------------------------------------------------------------------------------------------
Vanguard Vanguard Vanguard Vanguard Vanguard
Income Index Trust Bond Index International U.S. Growth Wellington
Total Fund 500 Portfolio Fund Growth Portfolio Portfolio Fund
------------ ----------- ------------- ---------- ---------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest and
dividend income $ 7,350,040 $ 806,265 $ 673,037 $ 109,538 $ 257,558 $ 2,927,786 $ 1,583,360
Contributions:
Contributions and
rollovers from
participants 83,324,143 2,497,442 6,180,683 709,067 2,629,423 5,271,214 5,282,845
Contributions from
Plan Sponsor 6,284,549 470,531 1,215,514 86,327 462,974 1,159,266 444,494
------------ ----------- ----------- ---------- ----------- ------------ -----------
89,608,692 2,967,973 7,396,197 795,394 3,092,397 6,430,480 5,727,339
------------ ----------- ----------- ---------- ----------- ------------ -----------
Total additions 96,958,732 3,774,238 8,069,234 904,932 3,349,955 9,358,266 7,310,699
------------ ----------- ----------- ---------- ----------- ------------ -----------
Deductions from net assets
attributed to:
Benefits paid to
participants 12,738,301 1,976,500 2,946,100 121,786 1,056,392 2,390,465 1,362,331
------------ ----------- ----------- ---------- ----------- ------------ -----------
Net increase (decrease)
prior to loans, transfers
and other activity 84,220,431 1,797,738 5,123,134 783,146 2,293,563 6,967,801 5,948,368
Loans, transfers and
other activity, net -- (606,443) (1,224,837) 1,038,090 (2,202,659) (423,943) (813,922)
Net realized and
unrealized gain (loss)
on investments 31,973,813 -- 8,724,691 33,265 1,642,065 10,107,730 (51,230)
------------ ----------- ----------- ---------- ----------- ------------ -----------
Net increase 116,194,244 1,191,295 12,622,988 1,854,501 1,732,969 16,651,588 5,083,216
Net assets available
for plan benefits:
Beginning Balance,
January 1, 1998 140,137,132 13,897,195 31,398,044 334,948 11,050,434 30,981,760 9,394,773
------------ ----------- ----------- ---------- ----------- ------------ -----------
Ending Balance,
December 31, 1998 $256,331,376 $15,088,490 $44,021,032 $2,189,449 $12,783,403 $ 47,633,348 $14,477,989
============ =========== =========== ========== =========== ============ ===========
<CAPTION>
For the Year Ended December 31, 1998
----------------------------------------------------------------------------------------------
Vanguard Warburg Pincus BSC Pfizer Participant
Windsor II Emerging Growth Stock Stock Notes Contributions
Fund Fund Fund Fund Receivable Receivable
---------- --------------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest and
dividend income $ 386,165 $ 6,046 $ -- $ -- $ 600,285 $ --
Contributions:
Contributions and
rollovers from
participants 1,407,013 4,262,234 7,655,981 44,213,962 1,979,926 1,234,353
Contributions from
Plan Sponsor 214,121 216,691 1,720,575 -- -- 294,056
---------- ---------- ----------- ----------- ---------- ----------
1,621,134 4,478,925 9,376,556 44,213,962 1,979,926 1,528,409
---------- ---------- ----------- ----------- ---------- ----------
Total additions 2,007,299 4,484,971 9,376,556 44,213,962 2,580,211 1,528,409
---------- ---------- ----------- ----------- ---------- ----------
Deductions from net assets
attributed to:
Benefits paid to
participants 97,950 534,940 1,626,677 -- 625,160 --
---------- ---------- ----------- ----------- ---------- ----------
Net increase (decrease)
prior to loans, transfers
and other activity 1,909,349 3,950,031 7,749,879 44,213,962 1,955,051 1,528,409
Loans, transfers and
other activity, net 926,428 (616,806) 3,383,711 -- 1,531,435 (991,054)
Net realized and
unrealized gain (loss)
on investments (8,567) 145,219 6,030,751 5,349,889 -- --
---------- ---------- ----------- ----------- ---------- ----------
Net increase 2,827,210 3,478,444 17,164,341 49,563,851 3,486,486 537,355
Net assets available
for plan benefits:
Beginning Balance,
January 1, 1998 1,135,188 689,207 34,502,333 -- 5,762,196 991,054
---------- ---------- ----------- ----------- ---------- ----------
Ending Balance,
December 31, 1998 $3,962,398 $4,167,651 $51,666,674 $49,563,851 $9,248,682 $1,528,409
========== ========== =========== =========== ========== ==========
</TABLE>
See accompanying notes.
3
<PAGE> 7
BOSTON SCIENTIFIC CORPORATION 401(k) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
WITH FUND INFORMATION
================================================================================
<TABLE>
<CAPTION>
For the Year Ended December 31, 1997
-------------------------------------------------------------------------------------------------
Fidelity Fidelity Scudder Vanguard Vanguard
Income Balanced Magellan Global Index Trust Bond Index
Total Fund Fund Fund Fund 500 Portfolio Fund
------------ ----------- ----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest and
dividend income $ 4,982,647 $ 649,910 $ 144,460 $ 714,672 $ -- $ 648,689 $ 4,552
Contributions:
Contributions and
rollovers from
participants 39,295,971 5,774,770 1,745,612 4,703,934 3,309,916 9,441,847 85,339
Contributions from
Plan Sponsor 4,386,070 407,810 119,340 460,377 202,498 885,310 5,165
------------ ----------- ----------- ----------- ----------- ----------- --------
43,682,041 6,182,580 1,864,952 5,164,311 3,512,414 10,327,157 90,504
------------ ----------- ----------- ----------- ----------- ----------- --------
Total additions 48,664,688 6,832,490 2,009,412 5,878,983 3,512,414 10,975,846 95,056
------------ ----------- ----------- ----------- ----------- ----------- --------
Deductions from net assets
attributed to:
Benefits paid to
participants 7,851,963 2,303,494 321,347 569,201 544,025 1,664,754 750
------------ ----------- ----------- ----------- ----------- ----------- --------
Net increase (decrease)
prior to loans, transfers
and other activity 40,812,725 4,528,996 1,688,065 5,309,782 2,968,389 9,311,092 94,306
Loans, transfers and
other activity, net -- (1,758,465) (8,137,233) (32,611,427) (13,772,534) (1,989,965) 238,274
Net realized and
unrealized gain (loss)
on investments 3,233,194 -- 808,366 3,465,283 2,007,832 7,005,363 2,368
------------ ----------- ----------- ----------- ----------- ----------- --------
Net increase 44,045,919 2,770,531 (5,640,802) (23,836,362) (8,796,313) 14,326,490 334,948
Net assets available
for plan benefits:
Beginning Balance,
January 1, 1997 96,091,213 11,126,664 5,640,802 23,836,362 8,796,313 17,071,554 --
------------ ----------- ----------- ----------- ----------- ----------- --------
Ending Balance,
December 31, 1997 $140,137,132 $13,897,195 $ -- $ -- $ -- $31,398,044 $334,948
============ =========== =========== =========== =========== =========== ========
<CAPTION>
For the Year Ended December 31, 1997
------------------------------------------------------------------------------------------------------
Vanguard Warburg Pincus
International Vanguard Vanguard Vanguard Emerging BSC Participant
Growth U.S. Growth Wellington Windsor II Growth Stock Notes Receivables
Portfolio Portfolio Fund Fund Fund Fund Receivable and Other
------------- ----------- ---------- ---------- ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Interest and
dividend income $ 470,806 $ 1,204,653 $ 671,336 $ 81,562 35,178 $ -- $ 356,829 $ --
Contributions:
Contributions and
rollovers from
participants 1,104,890 2,279,088 800,254 211,634 194,397 8,226,326 609,491 808,473
Contributions from
Plan Sponsor 222,872 522,225 152,280 18,826 15,937 1,190,849 -- 182,581
----------- ----------- ---------- ---------- -------- ----------- ---------- ----------
1,327,762 2,801,313 952,534 230,460 210,334 9,417,175 609,491 991,054
----------- ----------- ---------- ---------- -------- ----------- ---------- ----------
Total additions 1,798,568 4,005,966 1,623,870 312,022 245,512 9,417,175 966,320 991,054
----------- ----------- ---------- ---------- -------- ----------- ---------- ----------
Deductions from net assets
attributed to:
Benefits paid to
participants 245,641 813,283 219,156 4,933 279 986,720 178,380 --
----------- ----------- ---------- ---------- -------- ----------- ---------- ----------
Net increase (decrease)
prior to loans, transfers
and other activity 1,552,927 3,192,683 1,404,714 307,089 245,233 8,430,455 787,940 991,054
Loans, transfers and
other activity, net 11,356,203 26,952,608 7,974,278 875,361 485,512 9,928,974 1,648,262 (1,189,848)
Net realized and
unrealized gain (loss)
on investments (1,858,696) 836,469 15,781 (47,262) (41,538) (8,960,772) -- --
----------- ----------- ---------- ---------- -------- ----------- ---------- ----------
Net increase 11,050,434 30,981,760 9,394,773 1,135,188 689,207 9,398,657 2,436,202 (198,794)
Net assets available
for plan benefits:
Beginning Balance,
January 1, 1997 -- -- -- -- -- 25,103,676 3,325,994 1,189,848
----------- ----------- ---------- ---------- -------- ----------- ---------- ----------
Ending Balance,
December 31, 1997 $11,050,434 $30,981,760 $9,394,773 $1,135,188 $689,207 $34,502,333 $5,762,196 $ 991,054
=========== =========== ========== ========== ======== =========== ========== ==========
</TABLE>
4
<PAGE> 8
Boston Scientific Corporation 401(k) Savings Plan
Notes To Financial Statements
Years Ended December 31, 1998 and 1997
1. DESCRIPTION OF THE PLAN
The Boston Scientific Corporation 401(k) Savings Plan (the Plan) was amended and
restated effective January 1, 1997.
Administrative responsibilities transferred from New York Life Benefit Services
to The Vanguard Group (the plan administrator) effective July 1, 1997. Plan
funds upon conversion transferred to similar funds under the Vanguard
administration. Participants were given the opportunity to self direct these
transfers if desired.
The Plan is a defined contribution plan covering all eligible employees who have
completed 30 days of service and have attained 21 years of age. It is subject to
the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). A
participant may contribute between 1% and 15% of his or her pretax annual
compensation each year. Boston Scientific Corporation's (the Company) matching
contribution is the lesser of 50% of the participant's elective contribution or
2% of eligible compensation, as defined.
The Plan was amended, effective January 1, 1998, to include other employer
contributions. The Company shall contribute to the Plan such amounts as
determined by the Board of Directors (the Board) on behalf of certain eligible
participants.
The Plan was amended effective September 11, 1998, to include a special matching
contribution by the Company on behalf of participants who were employed by
certain subsidiaries of Pfizer, Inc. which were acquired by the Company on
September 10, 1998. The special matching contribution shall be equal to (i) 50%
of the elective contributions made on behalf of such eligible participant with
respect to each applicable period which do not exceed 2% of the eligible
participant's compensation for such period, and (ii) 50% of the elective
contributions which exceed 4% but do not exceed 6% of such eligible
participant's compensation for such period. This will be in effect through
September 10, 2000.
The September 11, 1998 amendment also established an investment fund to hold
shares of Pfizer Inc. common stock transferred from the Pfizer Savings and
Investment Plan for Schneider employees. No contributions can be made to this
fund and any earnings on this fund will be allocated to a participant's current
investment elections under the Plan. A participant can transfer amounts out of
the Pfizer stock fund to other investment funds within the Plan.
The plan was amended effective November 16, 1998 allowing withdrawals from a
rollover account for any reason and allowing totally disabled participants, as
defined in the long term disability contract, to take withdrawals at any time
regardless of age.
For the two Plan years beginning January 1, 1999 and January 1, 2000, the
Company shall contribute on behalf of each Schneider Participant, 3% of such
eligible participant's compensation.
At the discretion of the Board, the Company may also make an additional
discretionary contribution. Employees with three or more years of credited
service on December 31, 1992 will be fully vested in such amounts and all other
employees will become fully vested in such amounts after five years of credited
service. No additional discretionary contribution was made in 1998 or 1997.
5
<PAGE> 9
Boston Scientific Corporation 401(k) Savings Plan
Notes To Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
A participant can allocate his or her account among various investment funds.
Each participant's account is credited with the participant's contribution, the
Company's contribution and an allocation of Plan earnings. The allocations of
earnings are based upon each participant's account balance by fund in relation
to all participants' account balances by fund. Each participant is fully vested
in his or her account, except as discussed above regarding discretionary
contributions. The benefit to which a participant is entitled is the benefit
included in the participant's account.
A participant may borrow from his or her fund account a minimum of $1,000 up to
a maximum equal to the lesser of $50,000 or 50% of his or her account balance.
Loan terms range up to 5 years or up to 10 years for the purchase of a primary
residence. However, participants of the defined contribution plans of the
acquired companies (refer to Note 2) may retain the loan terms granted under
their former plans. Loan terms related to these participants range up to 5 years
or up to 10 years for the purchase of a primary residence. The loan is secured
by the balance in the participant's account and bears interest at a rate
commensurate with local prevailing rates as determined by the Plan
Administrator. Interest rates on loans outstanding at December 31, 1998 ranged
from 6.3% to 12.0%. Principal and interest are paid ratably through payroll
deductions.
Upon retirement or termination of service, a participant either receives a
lump-sum amount equal to the value of his or her account, a variable or a fixed
installment option. If a participant's balance is greater than a preset amount,
he or she has the option of leaving the funds invested in the Plan. A
participant may withdraw all or a portion of his or her contributions to the
extent necessary to meet a financial hardship.
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA.
The foregoing description of the Plan provides only general information.
Participants should refer to the "Summary Plan Description" and the Plan
document for a more complete description of the Plan's provisions. Copies are
available from the 401(k) Administrative Committee.
2. BOSTON SCIENTIFIC CORPORATION MERGERS AND ACQUISITIONS
During 1995, the Company completed five strategic acquisitions. The Company
merged one of the defined contribution plans of the acquired companies into the
Plan during 1995, one during 1996, and two in 1997. The defined contribution
plan of the other acquired company was terminated in 1996.
During 1996, the Company completed two additional strategic acquisitions. The
Company merged the defined contribution plan of one of the acquired companies
into the Plan in May, 1996. The defined contribution plan of the other acquired
company was merged into the Plan in January, 1997.
During 1997, the Company completed a strategic acquisition. The Company merged
the defined contribution plan of the acquired company into the Plan in January,
1998.
During 1998, the Company completed a strategic acquisition. The Company merged
the participant's loan fund of the defined contribution plan of the acquired
company into the Plan in October 1998, the Pfizer stock fund in November 1998
and the remaining funds in January 1999.
6
<PAGE> 10
Boston Scientific Corporation 401(k) Savings Plan
Notes To Financial Statements (continued)
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting records of the Plan are maintained on the accrual basis.
Investments are stated at fair value. Shares of mutual funds are valued at
quoted market prices which represent the net asset value of shares held by the
fund. Securities listed on a registered stock exchange are valued by the Plan
Administrator at the last reported sales price on the last business day of the
Plan year. The participant notes receivable are valued at cost which
approximates fair value.
The income fund includes guaranteed investment contracts issued by banks,
insurance companies or other financial institutions pursuant to amounts
deposited and interest at such fixed, variable or other rates specified under
the terms of the agreement. Assets are valued at fair market value. A unit
method is used to determine the equitable share of each participating trust in
the fund and the fund is intended to maintain a share value of one dollar. The
crediting interest rate as of December 31, 1998 and the average yield for the
year then ended was 5.3%.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from these estimates.
4. TRANSACTIONS WITH PARTIES-IN-INTEREST
Fees for legal, accounting and other services rendered during the year by
parties-in-interest were paid by the Company.
On November 30, 1998 a two-for-one stock split in the form of a 100% stock
dividend was paid by the Company to stockholders of record as of November 13,
1998. Accordingly, the Plan received a common stock dividend as a result of its
investment in the BSC Stock Fund. During 1997, the Company did not declare or
pay any dividends.
5. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated February 20, 1998, stating that the Plan is qualified under Section 401
(a) of the Internal Revenue Code (the "Code") and, therefore, the related trust
is exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
6. YEAR 2000 ISSUE (UNAUDITED)
The Company's new global information system is Year 2000 compliant and it is
assessing other internal programs to determine if they are Year 2000 compliant.
The project also includes determining whether third party service providers have
reasonable plans in place to become year 2000 ready. Costs related to the Year
2000 project will be borne by the Company and third party service providers. The
Company does not expect this project to have significant effect on Plan
operations.
7
<PAGE> 11
Boston Scientific Corporation 401(k) Savings Plan
EIN #04-2695240
Plan #001
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Current
Identity of Issue Shares or Units Cost Value
- ----------------- --------------- ------------ ------------
<S> <C> <C> <C>
Bankers Trust:
Income Fund 7,759,638 $ 7,759,638 $ 7,759,638
Warburg Pincus:
Emerging Growth Fund 104,269 3,963,979 4,167,651
Vanguard Group:*
Index Trust 500 Portfolio 386,319 31,573,179 44,021,032
Money Market Reserves Prime Portfolio 7,328,852 7,328,852 7,328,852
Bond Index Fund 213,189 2,175,628 2,189,449
International Growth Portfolio 681,055 12,643,492 12,783,403
U.S. Growth Portfolio 1,270,561 37,857,379 47,633,348
Wellington Fund 493,288 14,685,552 14,477,989
Windsor II 132,744 4,041,727 3,962,398
Boston Scientific Corporation:*
Stock Fund 1,926,962 50,313,387 51,666,674
Pfizer Stock Fund 395,128 4,901,407 49,563,851
Participant notes receivable 6.3% to 12.0% -- 9,248,682
------------ ------------
$177,244,220 $254,802,967
============ ============
* Indicates party-in-interest to the Plan.
</TABLE>
8
<PAGE> 12
Boston Scientific Corporation 401(k) Savings Plan
EIN #04-2695240
Plan #001
Line 27d - Schedule of Reportable Transactions
Year Ended December 31, 1998
<TABLE>
<CAPTION>
Total Number
of Transactions
Made by the Plan Total Dollar Total Dollar
During the Year Value of Value of Net
Identity of Party Involved Description of Assets Purchases Sales Purchases Sales Gain(Loss)
- -------------------------- --------------------- --------- ----- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C>
Category (iii)--Series of
transactions in excess
of 5% of plan assets
Vanguard Money Market
Reserves Prime Portfolio Income Fund 143 128 $ 9,375,752 $ 8,579,692 $ --
Vanguard Group*: Index Trust 500 Portfolio 236 250 20,052,073 16,153,167 3,973,277
Bond Index Fund 198 126 5,554,797 3,936,151 21,768
International Growth Portfolio 178 247 4,211,713 4,761,576 (205,204)
U.S. Growth Portfolio 230 250 15,939,048 9,401,127 1,013,331
Wellington Fund 180 245 6,097,345 3,979,548 140,223
Windsor II Fund 189 160 5,961,729 3,126,829 24,961
Boston Scientific
Corporation* Stock Fund 245 252 41,302,599 30,164,632 7,233,002
</TABLE>
* Indicates party-in-interest to the Plan.
THERE WERE NO CATEGORY (i), (ii), OR (iv) REPORTABLE TRANSACTIONS DURING 1998.
9
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustee (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
Boston Scientific Corporation
401(k) Savings Plan
Date: June 30, 1999 By: /s/ Lawrence C. Best
---------------------------------
Lawrence C. Best
Plan Administrator and
Senior Vice President - Finance
and Administration and
Chief Financial Officer
of Boston Scientific Corporation
<PAGE> 1
Exhibit 23.1
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-89772) pertaining to the Boston Scientific Corporation 401(k) Savings
Plan of our report dated June 17, 1999, with respect to the financial statements
and schedules of the Boston Scientific Corporation 401(k) Savings Plan included
in this Annual Report (Form 11-K) for the year ended December 31, 1998.
ERNST & YOUNG LLP
Boston, Massachusetts
June 25, 1999
