QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State of incorporation) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) | (Zip Code) | ||||||
(Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act: | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
☒ | Accelerated filer | ☐ | Emerging growth company | ||||
Non-accelerated filer | ☐ | Small reporting company |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
ITEM 1. | FINANCIAL STATEMENTS |
Three Months | Six Months | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | $ | $ | $ | |||||||||||
Cost of sales | |||||||||||||||
Gross profit | $ | $ | $ | $ | |||||||||||
Research, development and engineering expenses | |||||||||||||||
Selling, general and administrative expenses | |||||||||||||||
Recall charges | ( | ) | |||||||||||||
Amortization of intangible assets | |||||||||||||||
Total operating expenses | $ | $ | $ | $ | |||||||||||
Operating income (loss) | $ | ( | ) | $ | $ | $ | |||||||||
Other income (expense), net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Earnings (loss) before income taxes | $ | ( | ) | $ | $ | $ | |||||||||
Income taxes | ( | ) | |||||||||||||
Net earnings (loss) | $ | ( | ) | $ | $ | $ | |||||||||
Net earnings (loss) per share of common stock: | |||||||||||||||
Basic | $ | ( | ) | $ | $ | $ | |||||||||
Diluted | $ | ( | ) | $ | $ | $ | |||||||||
Weighted-average shares outstanding (in millions): | |||||||||||||||
Basic | |||||||||||||||
Effect of dilutive employee stock compensation | |||||||||||||||
Diluted | |||||||||||||||
Cash dividends declared per share of common stock | $ | $ | $ | $ |
Three Months | Six Months | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net earnings (loss) | $ | ( | ) | $ | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Marketable securities | |||||||||||||||
Pension plans | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Unrealized gains (losses) on designated hedges | ( | ) | ( | ) | ( | ) | |||||||||
Financial statement translation | ( | ) | ( | ) | ( | ) | |||||||||
Total other comprehensive income (loss), net of tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | |||||
Comprehensive income (loss) | $ | ( | ) | $ | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 1 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
June 30 | December 31 | ||||||
2020 | 2019 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | $ | |||||
Marketable securities | |||||||
Accounts receivable, less allowance of $114 ($88 in 2019) | |||||||
Inventories: | |||||||
Materials and supplies | |||||||
Work in process | |||||||
Finished goods | |||||||
Total inventories | $ | $ | |||||
Prepaid expenses and other current assets | |||||||
Total current assets | $ | $ | |||||
Property, plant and equipment: | |||||||
Land, buildings and improvements | |||||||
Machinery and equipment | |||||||
Total property, plant and equipment | $ | $ | |||||
Less accumulated depreciation | |||||||
Property, plant and equipment, net | $ | $ | |||||
Goodwill | |||||||
Other intangibles, net | |||||||
Noncurrent deferred income tax assets | |||||||
Other noncurrent assets | |||||||
Total assets | $ | $ | |||||
Liabilities and shareholders' equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | $ | |||||
Accrued compensation | |||||||
Income taxes | |||||||
Dividends payable | |||||||
Accrued expenses and other liabilities | |||||||
Current maturities of debt | |||||||
Total current liabilities | $ | $ | |||||
Long-term debt, excluding current maturities | |||||||
Income taxes | |||||||
Other noncurrent liabilities | |||||||
Total liabilities | $ | $ | |||||
Shareholders' equity | |||||||
Common stock, $0.10 par value | |||||||
Additional paid-in capital | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||
Total shareholders' equity | $ | $ | |||||
Total liabilities and shareholders' equity | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 2 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Three Months | Six Months | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Common stock shares outstanding (in millions) | |||||||||||||||
Beginning | |||||||||||||||
Issuance of common stock under stock compensation and benefit plans | |||||||||||||||
Repurchase of common stock | ( | ) | |||||||||||||
Ending | |||||||||||||||
Common stock | |||||||||||||||
Beginning | $ | $ | $ | $ | |||||||||||
Issuance of common stock under stock compensation and benefit plans | — | — | |||||||||||||
Ending | $ | $ | $ | $ | |||||||||||
Additional paid-in capital | |||||||||||||||
Beginning | $ | $ | $ | $ | |||||||||||
Issuance of common stock under stock compensation and benefit plans | — | ( | ) | ( | ) | ||||||||||
Repurchase of common stock | — | — | — | ( | ) | ||||||||||
Share-based compensation | |||||||||||||||
Ending | $ | $ | $ | $ | |||||||||||
Retained earnings | |||||||||||||||
Beginning | $ | $ | $ | $ | |||||||||||
Net earnings (loss) | ( | ) | |||||||||||||
Repurchase of common stock | — | — | — | ( | ) | ||||||||||
Cash dividends declared | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Ending | $ | $ | $ | $ | |||||||||||
Accumulated other comprehensive (loss) income | |||||||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | |||||||||
Ending | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Total Stryker shareholders' equity | $ | $ | $ | $ | |||||||||||
Non-controlling interest | |||||||||||||||
Total shareholders' equity | $ | $ | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 3 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Six Months | |||||||
2020 | 2019 | ||||||
Operating activities | |||||||
Net earnings | $ | $ | |||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation | |||||||
Amortization of intangible assets | |||||||
Asset impairments | |||||||
Share-based compensation | |||||||
Recall charges | ( | ) | |||||
Sale of inventory stepped-up to fair value at acquisition | |||||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | ( | ) | |||||
Inventories | ( | ) | ( | ) | |||
Accounts payable | ( | ) | ( | ) | |||
Accrued expenses and other liabilities | ( | ) | ( | ) | |||
Recall-related payments | ( | ) | ( | ) | |||
Income taxes | ( | ) | ( | ) | |||
Other, net | ( | ) | |||||
Net cash provided by operating activities | $ | $ | |||||
Investing activities | |||||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | |||
Purchases of marketable securities | ( | ) | ( | ) | |||
Proceeds from sales of marketable securities | |||||||
Purchases of property, plant and equipment | ( | ) | ( | ) | |||
Other investing, net | ( | ) | |||||
Net cash used in investing activities | $ | ( | ) | $ | ( | ) | |
Financing activities | |||||||
Proceeds (payments) on short-term borrowings, net | |||||||
Proceeds from issuance of long-term debt | |||||||
Payments on long-term debt | ( | ) | ( | ) | |||
Dividends paid | ( | ) | ( | ) | |||
Repurchases of common stock | ( | ) | |||||
Cash paid for taxes from withheld shares | ( | ) | ( | ) | |||
Other financing, net | ( | ) | |||||
Net cash provided by (used in) financing activities | $ | $ | ( | ) | |||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | |||
Change in cash and cash equivalents | $ | $ | ( | ) | |||
Cash and cash equivalents at beginning of period | |||||||
Cash and cash equivalents at end of period | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 4 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Net Sales by Product Line | |||||||||||||
Three Months | Six Months | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Orthopaedics: | |||||||||||||
Knees | $ | $ | $ | $ | |||||||||
Hips | |||||||||||||
Trauma and Extremities | |||||||||||||
Other | |||||||||||||
$ | $ | $ | $ | ||||||||||
MedSurg: | |||||||||||||
Instruments | $ | $ | $ | $ | |||||||||
Endoscopy | |||||||||||||
Medical | |||||||||||||
Sustainability | |||||||||||||
$ | $ | $ | $ | ||||||||||
Neurotechnology and Spine: | |||||||||||||
Neurotechnology | $ | $ | $ | $ | |||||||||
Spine | |||||||||||||
$ | $ | $ | $ | ||||||||||
Total | $ | $ | $ | $ |
Net Sales by Geography | |||||||||||||
Three Months 2020 | Three Months 2019 | ||||||||||||
United States | International | United States | International | ||||||||||
Orthopaedics: | |||||||||||||
Knees | $ | $ | $ | $ | |||||||||
Hips | |||||||||||||
Trauma and Extremities | |||||||||||||
Other | |||||||||||||
$ | $ | $ | $ | ||||||||||
MedSurg: | |||||||||||||
Instruments | $ | $ | $ | $ | |||||||||
Endoscopy | |||||||||||||
Medical | |||||||||||||
Sustainability | |||||||||||||
$ | $ | $ | $ | ||||||||||
Neurotechnology and Spine: | |||||||||||||
Neurotechnology | $ | $ | $ | $ | |||||||||
Spine | |||||||||||||
$ | $ | $ | $ | ||||||||||
Total | $ | $ | $ | $ |
Net Sales by Geography | |||||||||||||
Six Months 2020 | Six Months 2019 | ||||||||||||
United States | International | United States | International | ||||||||||
Orthopaedics: | |||||||||||||
Knees | $ | $ | $ | $ | |||||||||
Hips | |||||||||||||
Trauma and Extremities | |||||||||||||
Other | |||||||||||||
$ | $ | $ | $ | ||||||||||
MedSurg: | |||||||||||||
Instruments | $ | $ | $ | $ | |||||||||
Endoscopy | |||||||||||||
Medical | |||||||||||||
Sustainability | |||||||||||||
$ | $ | $ | $ | ||||||||||
Neurotechnology and Spine: | |||||||||||||
Neurotechnology | $ | $ | $ | $ | |||||||||
Spine | |||||||||||||
$ | $ | $ | $ | ||||||||||
Total | $ | $ | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 5 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Three Months 2020 | Marketable Securities | Pension Plans | Hedges | Financial Statement Translation | Total | ||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||
OCI | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Income taxes | |||||||||||||||
Reclassifications to: | |||||||||||||||
Cost of sales | ( | ) | ( | ) | |||||||||||
Other (income) expense | ( | ) | ( | ) | ( | ) | |||||||||
Income taxes | ( | ) | |||||||||||||
Net OCI | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Ending | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months 2019 | Marketable Securities | Pension Plans | Hedges | Financial Statement Translation | Total | ||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||
OCI | ( | ) | ( | ) | ( | ) | |||||||||
Income taxes | |||||||||||||||
Reclassifications to: | |||||||||||||||
Cost of sales | |||||||||||||||
Other (income) expense | |||||||||||||||
Income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Net OCI | $ | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||
Ending | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
Six Months 2020 | Marketable Securities | Pension Plans | Hedges | Financial Statement Translation | Total | ||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||
OCI | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Income taxes | |||||||||||||||
Reclassifications to: | |||||||||||||||
Cost of sales | |||||||||||||||
Other (income) expense | ( | ) | ( | ) | ( | ) | |||||||||
Income taxes | ( | ) | |||||||||||||
Net OCI | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||
Ending | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Six Months 2019 | Marketable Securities | Pension Plans | Hedges | Financial Statement Translation | Total | ||||||||||
Beginning | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||
OCI | ( | ) | ( | ) | ( | ) | |||||||||
Income taxes | ( | ) | |||||||||||||
Reclassifications to: | |||||||||||||||
Cost of sales | ( | ) | ( | ) | |||||||||||
Other (income) expense | |||||||||||||||
Income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Net OCI | $ | $ | ( | ) | $ | ( | ) | $ | $ | ||||||
Ending | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) |
June 2020 | Cash Flow | Net Investment | Non-Designated | Total | ||||||||
Gross notional amount | $ | $ | $ | $ | ||||||||
Maximum term in days | ||||||||||||
Fair value: | ||||||||||||
Other current assets | $ | $ | $ | $ | ||||||||
Other noncurrent assets | ||||||||||||
Other current liabilities | ( | ) | ( | ) | ( | ) | ||||||
Other noncurrent liabilities | ||||||||||||
Total fair value | $ | $ | $ | ( | ) | $ |
December 2019 | Cash Flow | Net Investment | Non-Designated | Total | ||||||||
Gross notional amount | $ | $ | $ | $ | ||||||||
Maximum term in days | ||||||||||||
Fair value: | ||||||||||||
Other current assets | $ | $ | $ | $ | ||||||||
Other noncurrent assets | ||||||||||||
Other current liabilities | ( | ) | ( | ) | ( | ) | ||||||
Other noncurrent liabilities | ( | ) | ( | ) | ||||||||
Total fair value | $ | ( | ) | $ | $ | $ |
Three Months | Six Months | |||||||||||||
Derivative instrument | Recorded in: | 2020 | 2019 | 2020 | 2019 | |||||||||
Cash Flow | Cost of sales | $ | $ | $ | $ | |||||||||
Net Investment | Other income (expense), net | |||||||||||||
Non-Designated | Other income (expense), net | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Total | $ | $ | ( | ) | $ | $ | ( | ) |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 6 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Assets Measured at Fair Value | June | December | ||||
2020 | 2019 | |||||
Cash and cash equivalents | $ | $ | ||||
Trading marketable securities | ||||||
Level 1 - Assets | $ | $ | ||||
Available-for-sale marketable securities: | ||||||
Corporate and asset-backed debt securities | $ | $ | ||||
United States agency debt securities | ||||||
United States Treasury debt securities | ||||||
Certificates of deposit | ||||||
Total available-for-sale marketable securities | $ | $ | ||||
Foreign currency exchange forward contracts | ||||||
Interest rate swap asset | ||||||
Level 2 - Assets | $ | $ | ||||
Total assets measured at fair value | $ | $ |
Liabilities Measured at Fair Value | June | December | ||||
2020 | 2019 | |||||
Deferred compensation arrangements | $ | $ | ||||
Level 1 - Liabilities | $ | $ | ||||
Foreign currency exchange forward contracts | $ | $ | ||||
Interest rate swap liability | ||||||
Level 2 - Liabilities | $ | $ | ||||
Contingent consideration: | ||||||
Beginning | $ | $ | ||||
Additions | ||||||
Change in estimate | ( | ) | ||||
Settlements | ( | ) | ( | ) | ||
Ending | $ | $ | ||||
Level 3 - Liabilities | $ | $ | ||||
Total liabilities measured at fair value | $ | $ |
Fair Value of Available for Sale Securities by Maturity | ||||||
June 2020 | December 2019 | |||||
Due in one year or less | $ | $ | ||||
Due after one year through three years | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 7 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Leases | June | December | |||||
2020 | 2019 | ||||||
Right-of-use assets | $ | $ | |||||
Lease liabilities, current | $ | $ | |||||
Lease liabilities, non-current | $ | $ | |||||
Other information | |||||||
Weighted-average remaining lease term | |||||||
Weighted-average discount rate | % | % |
Three Months | Six Months | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Operating lease cost | $ |
Purchase Price Allocation of Acquired Net Assets | |||||||
2019 | |||||||
Mobius | OrthoSpace | ||||||
Tangible assets: | |||||||
Accounts receivable | $ | $ | |||||
Inventory | |||||||
Other assets | |||||||
Contingent consideration | ( | ) | |||||
Other liabilities | ( | ) | ( | ) | |||
Intangible assets: | |||||||
Customer relationship | |||||||
Developed technology and patents | |||||||
In-process research and development | |||||||
Non-compete agreements | |||||||
Goodwill | |||||||
Purchase price, net of cash acquired | $ | $ | |||||
Weighted-average life of intangible assets |
Estimated Amortization Expense | ||||||||||||||
Remainder of 2020 | 2021 | 2022 | 2023 | 2024 | ||||||||||
$ | $ | $ | $ | $ |
Summary of Total Debt | June 2020 | December 2019 | ||||||||
Senior unsecured notes: | ||||||||||
Rate | Due | |||||||||
$ | $ | |||||||||
Variable | ||||||||||
Other | ||||||||||
Total debt | $ | $ | ||||||||
Less current maturities of debt | ||||||||||
Total long-term debt | $ | $ | ||||||||
Dollar amounts are in millions except per share amounts or as otherwise specified. | 8 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
June 2020 | December 2019 | |||||||||
Unamortized debt issuance costs | $ | $ | ||||||||
Available secured borrowing capacity | $ | $ | ||||||||
Fair value of senior unsecured notes | $ | $ |
Three Months | Six Months | ||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Orthopaedics | $ | $ | $ | $ | |||||||||
MedSurg | |||||||||||||
Neurotechnology and Spine | |||||||||||||
Net sales | $ | $ | $ | $ | |||||||||
Orthopaedics | $ | $ | $ | $ | |||||||||
MedSurg | |||||||||||||
Neurotechnology and Spine | |||||||||||||
Segment operating income | $ | $ | $ | $ | |||||||||
Items not allocated to segments: | |||||||||||||
Corporate and other | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Acquisition and integration-related charges | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Amortization of intangible assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Restructuring-related and other charges | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Medical device regulations | ( | ) | ( | ) | ( | ) | ( | ) | |||||
Recall-related matters | ( | ) | ( | ) | |||||||||
Regulatory and legal matters | ( | ) | ( | ) | ( | ) | |||||||
Consolidated operating income (loss) | $ | ( | ) | $ | $ | $ |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 9 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 10 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Three Months | Six Months | ||||||||||||||||||||||||
Percent Net Sales | Percentage | Percent Net Sales | Percentage | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Change | 2020 | 2019 | 2020 | 2019 | Change | ||||||||||||||||
Net sales | $ | 2,764 | $ | 3,650 | 100.0 | % | 100.0 | % | (24.3 | )% | $ | 6,352 | $ | 7,166 | 100.0 | % | 100.0 | % | (11.4 | )% | |||||
Gross profit | 1,548 | 2,380 | 56.0 | 65.2 | (35.0 | ) | 3,879 | 4,663 | 61.1 | 65.1 | (16.8 | ) | |||||||||||||
Research, development and engineering expenses | 233 | 246 | 8.4 | 6.7 | (5.3 | ) | 487 | 471 | 7.7 | 6.6 | 3.4 | ||||||||||||||
Selling, general and administrative expenses | 1,225 | 1,282 | 44.3 | 35.1 | (4.4 | ) | 2,555 | 2,685 | 40.2 | 37.5 | (4.8 | ) | |||||||||||||
Recall charges | — | 117 | — | 3.2 | (100.0 | ) | (6 | ) | 130 | (0.1 | ) | 1.8 | nm | ||||||||||||
Amortization of intangible assets | 110 | 122 | 4.0 | 3.3 | (9.8 | ) | 228 | 236 | 3.6 | 3.3 | (3.4 | ) | |||||||||||||
Other income (expense), net | (67 | ) | (48 | ) | (2.4 | ) | (1.3 | ) | 39.6 | (112 | ) | (96 | ) | (1.8 | ) | (1.3 | ) | 16.7 | |||||||
Income taxes | (4 | ) | 85 | nm | nm | (104.7 | ) | 93 | 153 | nm | nm | (39.2 | ) | ||||||||||||
Net earnings (loss) | $ | (83 | ) | $ | 480 | (3.0 | )% | 13.2 | % | (117.3 | )% | $ | 410 | $ | 892 | 6.5 | % | 12.4 | % | (54.0 | )% | ||||
Net earnings (loss) per diluted share | $ | (0.22 | ) | $ | 1.26 | (117.5 | )% | $ | 1.08 | $ | 2.35 | (54.0 | )% | ||||||||||||
Adjusted net earnings per diluted share(1) | $ | 0.64 | $ | 1.98 | (67.7 | )% | $ | 2.48 | $ | 3.86 | (35.8 | )% |
Geographic and Segment Net Sales | Three Months | Six Months | |||||||||||||||||||
Percentage Change | Percentage Change | ||||||||||||||||||||
2020 | 2019 | As Reported | Constant Currency | 2020 | 2019 | As Reported | Constant Currency | ||||||||||||||
Geographic: | |||||||||||||||||||||
United States | $ | 1,966 | $ | 2,695 | (27.0 | )% | (27.0 | )% | $ | 4,609 | $ | 5,274 | (12.6 | )% | (12.6 | )% | |||||
International | 798 | 955 | (16.5 | ) | (13.6 | ) | 1,743 | 1,892 | (7.9 | ) | (4.8 | ) | |||||||||
Total | $ | 2,764 | $ | 3,650 | (24.3 | )% | (23.5 | )% | $ | 6,352 | $ | 7,166 | (11.4 | )% | (10.6 | )% | |||||
Segment: | |||||||||||||||||||||
Orthopaedics | $ | 894 | $ | 1,273 | (29.9 | )% | (29.3 | )% | $ | 2,116 | $ | 2,523 | (16.2 | )% | (15.4 | )% | |||||
MedSurg | 1,324 | 1,601 | (17.3 | ) | (16.4 | ) | 2,946 | 3,128 | (5.8 | ) | (5.0 | ) | |||||||||
Neurotechnology and Spine | 546 | 776 | (29.6 | ) | (28.9 | ) | 1,290 | 1,515 | (14.8 | ) | (14.1 | ) | |||||||||
Total | $ | 2,764 | $ | 3,650 | (24.3 | )% | (23.5 | )% | $ | 6,352 | $ | 7,166 | (11.4 | )% | (10.6 | )% |
Supplemental Net Sales Growth Information | |||||||||||||||||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||||||||||||||||
Percentage Change | Percentage Change | ||||||||||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||||||||||
2020 | 2019 | As Reported | Constant Currency | As Reported | As Reported | Constant Currency | 2020 | 2019 | As Reported | Constant Currency | As Reported | As Reported | Constant Currency | ||||||||||||||||||||
Orthopaedics: | |||||||||||||||||||||||||||||||||
Knees | $ | 241 | $ | 440 | (45.2 | )% | (44.7 | )% | (44.8 | )% | (46.2 | )% | (44.6 | )% | $ | 673 | $ | 879 | (23.5 | )% | (22.8 | )% | (22.3 | )% | (26.8 | )% | (24.4 | )% | |||||
Hips | 216 | 343 | (37.1 | ) | (36.3 | ) | (35.9 | ) | (39.2 | ) | (37.1 | ) | 532 | 679 | (21.7 | ) | (20.7 | ) | (20.9 | ) | (22.9 | ) | (20.4 | ) | |||||||||
Trauma and Extremities | 330 | 394 | (16.4 | ) | (15.6 | ) | (17.8 | ) | (13.9 | ) | (11.8 | ) | 722 | 790 | (8.6 | ) | (7.7 | ) | (7.5 | ) | (10.4 | ) | (8.1 | ) | |||||||||
Other | 107 | 96 | 10.2 | 10.4 | 21.3 | (41.3 | ) | (40.3 | ) | 189 | 175 | 7.7 | 8.1 | 16.0 | (28.3 | ) | (26.5 | ) | |||||||||||||||
$ | 894 | $ | 1,273 | (29.9 | )% | (29.3 | )% | (28.8 | )% | (32.4 | )% | (30.4 | )% | $ | 2,116 | $ | 2,523 | (16.2 | )% | (15.4 | )% | (14.5 | )% | (19.8 | )% | (17.4 | )% | ||||||
MedSurg: | |||||||||||||||||||||||||||||||||
Instruments | $ | 328 | $ | 504 | (34.8 | )% | (34.2 | )% | (37.3 | )% | (25.1 | )% | (22.3 | )% | $ | 841 | $ | 965 | (12.8 | )% | (12.2 | )% | (13.7 | )% | (9.4 | )% | (6.3 | )% | |||||
Endoscopy | 316 | 480 | (34.2 | ) | (33.7 | ) | (34.1 | ) | (34.7 | ) | (32.4 | ) | 771 | 950 | (18.9 | ) | (18.3 | ) | (18.7 | ) | (19.6 | ) | (16.7 | ) | |||||||||
Medical | 632 | 542 | 16.6 | 18.4 | 5.4 | 60.3 | 69.1 | 1,219 | 1,073 | 13.6 | 15.0 | 7.2 | 37.4 | 44.3 | |||||||||||||||||||
Sustainability | 48 | 75 | (35.7 | ) | (35.7 | ) | (35.7 | ) | nm | nm | 115 | 140 | (17.8 | ) | (17.8 | ) | (17.7 | ) | nm | nm | |||||||||||||
$ | 1,324 | $ | 1,601 | (17.3 | )% | (16.4 | )% | (22.0 | )% | 2.1 | % | 6.8 | % | $ | 2,946 | $ | 3,128 | (5.8 | )% | (5.0 | )% | (8.4 | )% | 4.5 | % | 8.9 | % | ||||||
Neurotechnology and Spine: | |||||||||||||||||||||||||||||||||
Neurotechnology | $ | 369 | $ | 484 | (23.8 | )% | (23.0 | )% | (32.4 | )% | (8.1 | )% | (5.8 | )% | $ | 852 | $ | 953 | (10.6 | )% | (9.8 | )% | (16.5 | )% | — | % | 2.4 | % | |||||
Spine | 177 | 292 | (39.1 | ) | (38.7 | ) | (42.1 | ) | (29.7 | ) | (27.8 | ) | 438 | 562 | (22.0 | ) | (21.4 | ) | (24.4 | ) | (14.2 | ) | (11.8 | ) | |||||||||
$ | 546 | $ | 776 | (29.6 | )% | (28.9 | )% | (36.4 | )% | (14.4 | )% | (12.2 | )% | $ | 1,290 | $ | 1,515 | (14.8 | )% | (14.1 | )% | (19.7 | )% | (4.0 | )% | (1.6 | )% | ||||||
Total | $ | 2,764 | $ | 3,650 | (24.3 | )% | (23.5 | )% | (27.0 | )% | (16.5 | )% | (13.6 | )% | $ | 6,352 | $ | 7,166 | (11.4 | )% | (10.6 | )% | (12.6 | )% | (7.9 | )% | (4.8 | )% |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 11 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Percent Net Sales | ||||||||||
Three Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 1,548 | $ | 2,380 | 56.0 | % | 65.2 | % | ||
Inventory stepped-up to fair value | 3 | 14 | 0.1 | 0.4 | ||||||
Restructuring-related and other charges | 32 | 6 | 1.2 | 0.2 | ||||||
Medical device regulations | — | 1 | — | — | ||||||
Adjusted | $ | 1,583 | $ | 2,401 | 57.3 | % | 65.8 | % |
Percent Net Sales | ||||||||||
Six Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 3,879 | $ | 4,663 | 61.1 | % | 65.1 | % | ||
Inventory stepped-up to fair value | 9 | 38 | 0.1 | 0.5 | ||||||
Restructuring-related and other charges | 36 | 11 | 0.6 | 0.2 | ||||||
Medical device regulations | 1 | 1 | — | — | ||||||
Adjusted | $ | 3,925 | $ | 4,713 | 61.8 | % | 65.8 | % |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 12 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Percent Net Sales | ||||||||||
Three Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 233 | $ | 246 | 8.4 | % | 6.7 | % | ||
Medical device regulations | (23 | ) | (11 | ) | (0.8 | ) | (0.3 | ) | ||
Adjusted | $ | 210 | $ | 235 | 7.6 | % | 6.4 | % |
Percent Net Sales | ||||||||||
Six Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 487 | $ | 471 | 7.7 | % | 6.6 | % | ||
Medical device regulations | (46 | ) | (18 | ) | (0.8 | ) | (0.3 | ) | ||
Adjusted | $ | 441 | $ | 453 | 6.9 | % | 6.3 | % |
Percent Net Sales | ||||||||||
Three Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 1,225 | $ | 1,282 | 44.3 | % | 35.1 | % | ||
Other acquisition and integration-related | (16 | ) | (39 | ) | (0.6 | ) | (1.0 | ) | ||
Restructuring-related and other charges | (178 | ) | (36 | ) | (6.4 | ) | (1.0 | ) | ||
Regulatory and legal matters | (5 | ) | 15 | (0.2 | ) | 0.4 | ||||
Adjusted | $ | 1,026 | $ | 1,222 | 37.1 | % | 33.5 | % |
Percent Net Sales | ||||||||||
Six Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 2,555 | $ | 2,685 | 40.2 | % | 37.5 | % | ||
Other acquisition and integration-related | (47 | ) | (153 | ) | (0.7 | ) | (2.2 | ) | ||
Restructuring-related and other charges | (227 | ) | (88 | ) | (3.6 | ) | (1.2 | ) | ||
Regulatory and legal matters | (5 | ) | (10 | ) | (0.1 | ) | (0.1 | ) | ||
Adjusted | $ | 2,276 | $ | 2,434 | 35.8 | % | 34.0 | % |
Percent Net Sales | ||||||||||
Three Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | (20 | ) | $ | 613 | (0.7 | )% | 16.8 | % | |
Inventory stepped-up to fair value | 3 | 14 | 0.1 | 0.4 | ||||||
Other acquisition and integration-related | 16 | 39 | 0.6 | 1.1 | ||||||
Amortization of purchased intangible assets | 110 | 122 | 4.0 | 3.3 | ||||||
Restructuring-related and other charges | 209 | 42 | 7.5 | 1.2 | ||||||
Medical device regulations | 22 | 12 | 0.8 | 0.3 | ||||||
Recall-related matters | — | 117 | — | 3.2 | ||||||
Regulatory and legal matters | 5 | (15 | ) | 0.2 | (0.4 | ) | ||||
Adjusted | $ | 345 | $ | 944 | 12.5 | % | 25.9 | % |
Percent Net Sales | ||||||||||
Six Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 615 | $ | 1,141 | 9.7 | % | 15.9 | % | ||
Inventory stepped-up to fair value | 9 | 38 | 0.1 | 0.5 | ||||||
Other acquisition and integration-related | 47 | 153 | 0.7 | 2.1 | ||||||
Amortization of purchased intangible assets | 228 | 236 | 3.7 | 3.4 | ||||||
Restructuring-related and other charges | 263 | 98 | 4.1 | 1.4 | ||||||
Medical device regulations | 46 | 19 | 0.7 | 0.3 | ||||||
Recall-related matters | (6 | ) | 130 | (0.1 | ) | 1.8 | ||||
Regulatory and legal matters | 5 | 10 | 0.1 | 0.1 | ||||||
Tax matters | — | — | — | — | ||||||
Adjusted | $ | 1,207 | $ | 1,825 | 19.0 | % | 25.5 | % |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 13 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Percent Net Sales | ||||||||||
Three Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | (83 | ) | $ | 480 | (3.0 | )% | 13.2 | % | |
Inventory stepped-up to fair value | 1 | 10 | — | 0.3 | ||||||
Other acquisition and integration-related | 12 | 30 | 0.4 | 0.8 | ||||||
Amortization of purchased intangible assets | 88 | 98 | 3.2 | 2.7 | ||||||
Restructuring-related and other charges | 170 | 32 | 6.2 | 0.9 | ||||||
Medical device regulations | 18 | 9 | 0.7 | 0.2 | ||||||
Recall-related matters | — | 106 | — | 2.9 | ||||||
Regulatory and legal matters | 6 | (14 | ) | 0.2 | (0.4 | ) | ||||
Tax matters | 33 | 1 | 1.2 | — | ||||||
Adjusted | $ | 245 | $ | 752 | 8.9 | % | 20.6 | % |
Percent Net Sales | ||||||||||
Six Months | 2020 | 2019 | 2020 | 2019 | ||||||
Reported | $ | 410 | $ | 892 | 6.5 | % | 12.4 | % | ||
Inventory stepped-up to fair value | 6 | 29 | 0.1 | 0.4 | ||||||
Other acquisition and integration-related | 36 | 118 | 0.6 | 1.7 | ||||||
Amortization of purchased intangible assets | 184 | 189 | 2.9 | 2.6 | ||||||
Restructuring-related and other charges | 212 | 82 | 3.3 | 1.2 | ||||||
Medical device regulations | 36 | 15 | 0.6 | 0.2 | ||||||
Recall-related matters | (4 | ) | 116 | (0.1 | ) | 1.6 | ||||
Regulatory and legal matters | 6 | 5 | 0.1 | 0.1 | ||||||
Tax matters | 58 | 20 | 0.9 | 0.3 | ||||||
Adjusted | $ | 944 | $ | 1,466 | 14.9 | % | 20.5 | % |
1. | Acquisition and integration-related costs. Costs related to integrating recently acquired businesses and specific costs (e.g., inventory step-up and deal costs) related to the consummation of the acquisition process. |
2. | Amortization of purchased intangible assets. Periodic amortization expense related to purchased intangible assets. |
3. | Restructuring-related and other charges. Costs associated with the termination of sales relationships in certain countries, workforce reductions, elimination of product lines, certain long-lived asset impairments and associated costs and other restructuring-related activities. |
4. | Medical Device Regulations. Costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the European Union and China regulations for medical devices. |
5. | Recall-related matters. Our best estimate of the minimum of the range of probable loss to resolve the Rejuvenate, LFIT V40 and other product recalls. |
6. | Regulatory and legal matters. Our best estimate of the minimum of the range of probable loss to resolve certain regulatory matters and other legal settlements. |
7. | Tax matters. Charges represent the impact of accounting for certain significant and discrete tax items. |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 14 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures | |||||||||||||||||||||||
Three Months 2020 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income (Loss) | Other income (expense), net | Net Earnings (Loss) | Effective Tax Rate | Diluted EPS | |||||||||||||||
Reported | $ | 1,548 | $ | 1,225 | $ | 233 | $ | (20 | ) | $ | (67 | ) | $ | (83 | ) | 4.6 | % | $ | (0.22 | ) | |||
Reported percent net sales | 56.0 | % | 44.3 | % | 8.4 | % | (0.7 | )% | (2.4 | )% | (3.0 | )% | |||||||||||
Acquisition and integration-related charges: | |||||||||||||||||||||||
Inventory stepped-up to fair value | 3 | — | — | 3 | — | 1 | (0.5 | ) | — | ||||||||||||||
Other acquisition and integration-related | — | (16 | ) | — | 16 | — | 12 | (2.0 | ) | 0.03 | |||||||||||||
Amortization of purchased intangible assets | — | — | — | 110 | — | 88 | (7.0 | ) | 0.23 | ||||||||||||||
Restructuring-related and other charges | 32 | (178 | ) | — | 209 | — | 170 | (10.7 | ) | 0.45 | |||||||||||||
Medical device regulations | — | — | (23 | ) | 22 | — | 18 | (2.4 | ) | 0.05 | |||||||||||||
Recall-related matters | — | — | — | — | — | — | — | — | |||||||||||||||
Regulatory and legal matters | — | (5 | ) | — | 5 | — | 6 | 2.3 | 0.02 | ||||||||||||||
Tax matters | — | — | — | — | 7 | 33 | 30.1 | 0.08 | |||||||||||||||
Adjusted | $ | 1,583 | $ | 1,026 | $ | 210 | $ | 345 | $ | (60 | ) | $ | 245 | 14.4 | % | $ | 0.64 | ||||||
Adjusted percent net sales | 57.3 | % | 37.1 | % | 7.6 | % | 12.5 | % | (2.2 | )% | 8.9 | % |
Three Months 2019 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other income (expense), net | Net Earnings | Effective Tax Rate | Diluted EPS | |||||||||||||||
Reported | $ | 2,380 | $ | 1,282 | $ | 246 | $ | 613 | $ | (48 | ) | $ | 480 | 15.0 | % | $ | 1.26 | ||||||
Reported percent net sales | 65.2 | % | 35.1 | % | 6.7 | % | 16.8 | % | (1.3 | )% | 13.2 | % | |||||||||||
Acquisition and integration-related charges: | |||||||||||||||||||||||
Inventory stepped-up to fair value | 14 | — | — | 14 | — | 10 | 0.3 | 0.03 | |||||||||||||||
Other acquisition and integration-related | — | (39 | ) | — | 39 | — | 30 | 0.6 | 0.08 | ||||||||||||||
Amortization of purchased intangible assets | — | — | — | 122 | — | 98 | 0.9 | 0.26 | |||||||||||||||
Restructuring-related and other charges | 6 | (36 | ) | — | 42 | — | 32 | 0.4 | 0.08 | ||||||||||||||
Medical device regulations | 1 | — | (11 | ) | 12 | — | 9 | 0.2 | 0.03 | ||||||||||||||
Recall-related matters | — | — | — | 117 | — | 106 | (1.4 | ) | 0.28 | ||||||||||||||
Regulatory and legal matters | — | 15 | — | (15 | ) | — | (14 | ) | 0.2 | (0.04 | ) | ||||||||||||
Tax matters | — | — | — | — | — | 1 | (0.2 | ) | — | ||||||||||||||
Adjusted | $ | 2,401 | $ | 1,222 | $ | 235 | $ | 944 | $ | (48 | ) | $ | 752 | 16.0 | % | $ | 1.98 | ||||||
Adjusted percent net sales | 65.8 | % | 33.5 | % | 6.4 | % | 25.9 | % | (1.3 | )% | 20.6 | % |
Six Months 2020 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other income (expense), net | Net Earnings | Effective Tax Rate | Diluted EPS | |||||||||||||||
Reported | $ | 3,879 | $ | 2,555 | $ | 487 | $ | 615 | $ | (112 | ) | $ | 410 | 18.5 | % | $ | 1.08 | ||||||
Reported percent net sales | 61.1 | % | 40.2 | % | 7.7 | % | 9.7 | % | (1.8 | )% | 6.5 | % | |||||||||||
Acquisition and integration-related charges: | |||||||||||||||||||||||
Inventory stepped-up to fair value | 9 | — | — | 9 | — | 6 | 0.2 | 0.02 | |||||||||||||||
Other acquisition and integration-related | — | (47 | ) | — | 47 | — | 36 | 0.7 | 0.09 | ||||||||||||||
Amortization of purchased intangible assets | — | — | — | 228 | — | 184 | 2.4 | 0.48 | |||||||||||||||
Restructuring-related and other charges | 36 | (227 | ) | — | 263 | — | 212 | 2.6 | 0.56 | ||||||||||||||
Medical device regulations | 1 | — | (46 | ) | 46 | — | 36 | 0.8 | 0.09 | ||||||||||||||
Recall-related matters | — | — | — | (6 | ) | — | (4 | ) | (0.1 | ) | (0.01 | ) | |||||||||||
Regulatory and legal matters | — | (5 | ) | — | 5 | — | 6 | (0.4 | ) | 0.02 | |||||||||||||
Tax matters | — | — | — | — | 7 | 58 | (10.4 | ) | 0.15 | ||||||||||||||
Adjusted | $ | 3,925 | $ | 2,276 | $ | 441 | $ | 1,207 | $ | (105 | ) | $ | 944 | 14.3 | % | $ | 2.48 | ||||||
Adjusted percent net sales | 61.8 | % | 35.8 | % | 6.9 | % | 19.0 | % | (1.7 | )% | 14.9 | % |
Six Months 2019 | Gross Profit | Selling, General & Administrative Expenses | Research, Development & Engineering Expenses | Operating Income | Other income (expense), net | Net Earnings | Effective Tax Rate | Diluted EPS | |||||||||||||||
Reported | $ | 4,663 | $ | 2,685 | $ | 471 | $ | 1,141 | $ | (96 | ) | $ | 892 | 14.6 | % | $ | 2.35 | ||||||
Reported percent net sales | 65.1 | % | 37.5 | % | 6.6 | % | 15.9 | % | (1.3 | )% | 12.4 | % | |||||||||||
Acquisition and integration-related charges: | |||||||||||||||||||||||
Inventory stepped-up to fair value | 38 | — | — | 38 | — | 29 | 0.3 | 0.08 | |||||||||||||||
Other acquisition and integration-related | — | (153 | ) | — | 153 | — | 118 | 1.2 | 0.31 | ||||||||||||||
Amortization of purchased intangible assets | — | — | — | 236 | — | 189 | 1.1 | 0.50 | |||||||||||||||
Restructuring-related and other charges | 11 | (88 | ) | — | 98 | — | 82 | 0.1 | 0.21 | ||||||||||||||
Medical device regulations | 1 | — | (18 | ) | 19 | — | 15 | 0.1 | 0.04 | ||||||||||||||
Recall-related matters | — | — | — | 130 | — | 116 | (0.6 | ) | 0.31 | ||||||||||||||
Regulatory and legal matters | — | (10 | ) | — | 10 | — | 5 | 0.3 | 0.01 | ||||||||||||||
Tax matters | — | — | — | — | — | 20 | (1.9 | ) | 0.05 | ||||||||||||||
Adjusted | $ | 4,713 | $ | 2,434 | $ | 453 | $ | 1,825 | $ | (96 | ) | $ | 1,466 | 15.2 | % | $ | 3.86 | ||||||
Adjusted percent net sales | 65.8 | % | 34.0 | % | 6.3 | % | 25.5 | % | (1.3 | )% | 20.5 | % |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 15 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
Six Months | 2020 | 2019 | ||||
Net cash provided by operating activities | $ | 1,211 | $ | 827 | ||
Net cash used in investing activities | (280 | ) | (550 | ) | ||
Net cash provided by (used in) financing activities | 1,288 | (2,135 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (17 | ) | (4 | ) | ||
Change in cash and cash equivalents | $ | 2,202 | $ | (1,862 | ) |
Six Months | 2020 | 2019 | ||||
Total dividends paid to common shareholders | $ | 431 | $ | 390 | ||
Total amount paid to repurchase common stock | $ | — | $ | 307 | ||
Shares of repurchased common stock (in millions) | — | 1.9 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 16 |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
4(i) | |
4(ii) | |
4(iii) | |
10(i)* | |
31(i)* | |
31(ii)* | |
32(i)* | |
32(ii)* | |
101.INS | iXBRL Instance Document |
101.SCH | iXBRL Schema Document |
101.CAL | iXBRL Calculation Linkbase Document |
101.DEF | iXBRL Definition Linkbase Document |
101.LAB | iXBRL Label Linkbase Document |
101.PRE | iXBRL Presentation Linkbase Document |
104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document) |
† Filed with this Form 10-Q | |
* Furnished with this Form 10-Q |
Dollar amounts are in millions except per share amounts or as otherwise specified. | 17 |
STRYKER CORPORATION | 2020 Second Quarter Form 10-Q |
STRYKER CORPORATION | |||
(Registrant) | |||
Date: | July 31, 2020 | /s/ KEVIN A. LOBO | |
Kevin A. Lobo | |||
Chairman and Chief Executive Officer | |||
Date: | July 31, 2020 | /s/ GLENN S. BOEHNLEIN | |
Glenn S. Boehnlein | |||
Vice President, Chief Financial Officer |
18 |
a) | The starting date of the offer will be the grant date, and this offer conforms to General Ruling no. 336 of the Chilean Commission for the Financial Markets (“CMF”); |
b) | The offer deals with securities not registered in the registry of securities or in the registry of foreign securities of the CMF, and therefore such securities are not subject to its oversight; |
c) | The Company, as the issuer, is not obligated to provide public information in Chile regarding the foreign securities, as such securities are not registered with the CMF; and |
d) | The Shares, as foreign securities, shall not be subject to public offering as long as they are not registered with the corresponding registry of securities in Chile. |
a) | La fecha de inicio de la oferta será el de la fecha de otorgamiento y esta oferta se acoge a la norma de Carácter General n° 336 de la Comisión para el Mercado Financiero Chilena (“CMF”); |
b) | La oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la CMF, por lo que tales valores no están sujetos a la fiscalización de ésta; |
c) | Por tratar de valores no inscritos no existe la obligación por parte del emisor de entregar en chile información pública respecto de esos valores; y |
d) | Esos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el registro de valores correspondiente. |
Date: | July 31, 2020 | /s/ KEVIN A. LOBO |
Kevin A. Lobo | ||
Chairman and Chief Executive Officer |
Date: | July 31, 2020 | /s/ GLENN S. BOEHNLEIN |
Glenn S. Boehnlein | ||
Vice President, Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | July 31, 2020 | /s/ KEVIN A. LOBO |
Kevin A. Lobo | ||
Chairman and Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | July 31, 2020 | /s/ GLENN S. BOEHNLEIN |
Glenn S. Boehnlein | ||
Vice President, Chief Financial Officer |
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Consolidated Statements Of Earnings (LOSS) (Unaudited) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Net sales | $ 2,764 | $ 3,650 | $ 6,352 | $ 7,166 |
Cost of sales | 1,216 | 1,270 | 2,473 | 2,503 |
Gross profit | 1,548 | 2,380 | 3,879 | 4,663 |
Research, development and engineering expenses | 233 | 246 | 487 | 471 |
Selling, general and administrative expenses | 1,225 | 1,282 | 2,555 | 2,685 |
Recall charges | 0 | 117 | (6) | 130 |
Amortization of intangible assets | 110 | 122 | 228 | 236 |
Total operating expenses | 1,568 | 1,767 | 3,264 | 3,522 |
Operating income (loss) | (20) | 613 | 615 | 1,141 |
Other income (expense), net | (67) | (48) | (112) | (96) |
Earnings (loss) before income taxes | (87) | 565 | 503 | 1,045 |
Income taxes | (4) | 85 | 93 | 153 |
Net earnings (loss) | $ (83) | $ 480 | $ 410 | $ 892 |
Net earnings (loss) per share of common stock: | ||||
Basic | $ (0.22) | $ 1.29 | $ 1.09 | $ 2.39 |
Diluted | $ (0.22) | $ 1.26 | $ 1.08 | $ 2.35 |
Weighted-average shares outstanding (in millions): | ||||
Basic | 375.5 | 373.9 | 375.1 | 373.6 |
Effect of dilutive employee stock compensation | 0.0 | 5.6 | 4.8 | 5.8 |
Diluted | 375.5 | 379.5 | 379.9 | 379.4 |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.575 | $ 0.52 | $ 1.15 | $ 1.04 |
Anti-dilutive shares excluded from calculation of dilutive employee stock options | 4.3 |
Consolidated Statements of Comprehensive Income (LOSS) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Net earnings (loss) | $ (83) | $ 480 | $ 410 | $ 892 |
Other comprehensive income (loss), net of tax: | ||||
Marketable securities | 0 | 0 | 0 | 1 |
Pension plans | (4) | (7) | (8) | (11) |
Unrealized gains (losses) on designated hedges | (30) | 3 | (56) | (13) |
Financial statement translation | (58) | (61) | (45) | 24 |
Total other comprehensive income (loss), net of tax | (92) | (65) | (109) | 1 |
Comprehensive income (loss) | $ (175) | $ 415 | $ 301 | $ 893 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 114 | $ 88 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Basis Of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION General Information Management believes the accompanying unaudited Consolidated Financial Statements contain all adjustments, including normal recurring items, considered necessary to fairly present the financial position of Stryker Corporation and its consolidated subsidiaries ("Stryker," the "Company," "we," us" or "our") on June 30, 2020 and the results of operations for the three and six months 2020. The results of operations included in these Consolidated Financial Statements may not necessarily be indicative of our annual results. These statements should be read in conjunction with our Annual Report on Form 10-K for 2019. Certain prior year amounts have been reclassified to conform with current year presentation of segment results. New Accounting Pronouncements Not Yet Adopted We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements. Accounting Pronouncements Recently Adopted On January 1, 2020 we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses for accounts receivables, loans and other financial instruments. The adoption of this update did not have a material impact on our Consolidated Financial Statements.
|
Revenue Recognition |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | REVENUE RECOGNITION Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for 2019. We disaggregate our net sales by product line and geographic location for each of our segments as we believe it best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors.
Contract Assets and Liabilities On June 30, 2020 there were no contract assets recorded on our Consolidated Balance Sheets. Our contract liabilities arise as a result of consideration received from customers at inception of contracts for certain businesses or where the timing of billing for services precedes satisfaction of our performance obligations. We generally satisfy performance obligations within one year from the contract inception date. Our contract liabilities were $379 and $313 on June 30, 2020 and December 31, 2019.
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Accumulated Other Comprehensive (Loss) Income (AOCI) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income (AOCI) | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)
|
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS We use operational and economic hedges, foreign currency exchange forward contracts, net investment hedges (both derivative and non-derivative financial instruments) and interest rate derivative instruments to manage the impact of currency exchange and interest rate fluctuations on earnings, cash flow and equity. We do not enter into derivative instruments for speculative purposes. We are exposed to potential credit loss in the event of nonperformance by our counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum loss exposure is the asset balance of the instrument. We have not changed our hedging strategies, accounting practices or objectives from those disclosed in our Annual Report on Form 10-K for 2019. Foreign Currency Hedges
In December 2019 and November 2018 we designated the issuance of €2,400 and €2,250 of senior unsecured notes as net investment hedges to selectively hedge portions of our investment in certain international subsidiaries. The currency effects of our Euro-denominated senior unsecured notes are reflected in AOCI within shareholders' equity where they offset gains and losses recorded on our net investment in international subsidiaries. On June 30, 2020 the total after tax gain (loss) amount in AOCI related to these designated net investment hedges was ($23). In July 2019 we entered into €1.0 billion in certain forward currency contracts and designated these as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. Net Currency Exchange Rate Gains (Losses)
Pretax gains (losses) on derivatives designated as cash flow of $9 and net investment hedges of $27 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense) in earnings within 12 months as of June 30, 2020. This cash flow hedge reclassification is primarily due to the sale of inventory that includes previously hedged purchases. A component of the AOCI amounts related to net investment hedges is reclassified over the life of the hedge instruments as we elected to exclude the initial value of the component related to the spot-forward difference from the effectiveness assessment. Interest Rate Hedges In conjunction with our offerings of senior unsecured notes in December 2019 and June 2020 we terminated cash flow hedges with gross notional amounts of €600 and $500 designated as forward starting interest rate swaps of our interest rates, the impact of which will be recognized over time within interest expense. Pretax gains recorded in AOCI related to closed interest rate hedges of $6 are expected to be reclassified to other income (expense) in earnings within 12 months of June 30, 2020. On June 30, 2020 we had interest rate swap agreements with notional amounts of $750 designated as forward starting interest rate swaps in anticipation of future debt issuances. Pretax losses of $69 were recorded in AOCI as of June 30, 2020. Upon the probable issuance of the debt, these amounts will be released to interest expense over the term of the debt. The cash flow effect of these hedges is recorded in cash flow from operations.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Our policies for managing risk related to foreign currency, interest rates, credit and markets and our process for determining fair value have not changed from those described in our Annual Report on Form 10-K for 2019. There were no significant transfers into or out of any level in 2020.
On June 30, 2020 and December 31, 2019 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income recorded in other income (expense), net, was $25 and $34 in the three months and $65 and $73 in the six months 2020 and 2019. Our investments in available-for-sale marketable securities had a minimum credit quality rating of A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.
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Contingencies and Commitments |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies and Commitments | CONTINGENCIES AND COMMITMENTS We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product, labor, intellectual property and other matters, the most significant of which are more fully described below. The outcomes of these matters will generally not be known for prolonged periods of time. In certain of the legal proceedings, the claimants seek damages as well as other compensatory and equitable relief that could result in the payment of significant claims and settlements and/or the imposition of injunctions or other equitable relief. For legal matters for which management had sufficient information to reasonably estimate our future obligations, a liability representing management's best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within the range is not known, is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those estimated by management, additional expense may be incurred, which could unfavorably affect future operating results. We are self-insured for product liability claims and expenses. The ultimate cost to us with respect to product liability claims could be materially different than the amount of the current estimates and accruals and could have a material adverse effect on our financial position, results of operations and cash flows. Recall Matters In June 2012 we voluntarily recalled our Rejuvenate and ABG II Modular-Neck hip stems and terminated global distribution of these hip products. Product liability lawsuits relating to this voluntary recall have been filed against us. In November 2014 we entered into a settlement agreement to compensate eligible United States patients who had revision surgery prior to November 3, 2014 and in December 2016 the settlement program was extended to patients who had revision surgery prior to December 19, 2016. We continue to offer support for recall-related care and reimburse patients who are not eligible to enroll in the settlement program for testing and treatment services, including any necessary revision surgeries. In addition, there are remaining lawsuits that we will continue to defend against. In August 2016 and May 2018 we voluntarily recalled certain lot-specific sizes and offsets of LFIT Anatomic CoCr V40 Femoral Heads. Product liability lawsuits and claims relating to this voluntary recall have been filed against us. In November 2018 we entered into a settlement agreement to resolve a significant number of claims and lawsuits related to the recalls. The specific terms of the settlement agreement, including the financial terms, are confidential. We have incurred, and expect to incur in the future, costs associated with the defense and settlement of these matters. Based on the information that has been received, we have estimated the remaining range of probable loss related to these matters globally to be approximately $290 to $520. We have recorded charges to earnings representing the minimum of the range of probable loss. The final outcomes of these matters are dependent on many factors that are difficult to predict. Accordingly, the ultimate cost related to these matters may be materially different than the amount of our current estimate and accruals and could have a material adverse effect on our results of operations and cash flows.
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Acquisitions |
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Acquisitions | ACQUISITIONS We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. The aggregate purchase price of our acquisitions, net of cash acquired was $26 and $425 in the six months 2020 and 2019. In October 2019 we completed the acquisition of Mobius Imaging and Cardan Robotics for net cash consideration of $360 and future regulatory and commercial milestone payments of up to $130. Mobius Imaging is a leader in point-of-care imaging technology focused on integrating advanced imaging technologies into medical workflow. Cardan Robotics is working to develop innovative robotics and navigation technology systems for surgical and interventional radiology procedures. Mobius Imaging and Cardan Robotics (Mobius) are part of our Spine business within Neurotechnology and Spine. For income tax purposes the acquisition was treated as an asset purchase. Goodwill attributable to the acquisition is deductible for tax purposes. In March 2019 we completed the acquisition of OrthoSpace, Ltd. (OrthoSpace) for net cash consideration of $110 and future regulatory milestone payments of up to $110. OrthoSpace is a medical device company specializing in orthopaedic biodegradable technology for the treatment of irreparable rotator cuff tears. OrthoSpace is part of our Endoscopy business within MedSurg. Goodwill attributable to the acquisition is not deductible for tax purposes. In November 2019 we announced a definitive agreement to acquire all of the issued and outstanding ordinary shares of Wright Medical Group N.V. (Wright) for $30.75 per share, or an aggregate purchase price of approximately $5.4 billion (including convertible notes). Pursuant to the agreement, on December 13, 2019 our wholly owned subsidiary, Stryker B.V., commenced a tender offer to purchase all of the outstanding ordinary shares, par value €0.03 per share, of Wright at a price of $30.75 per share, without interest, but subject to any applicable withholding of taxes. We expect the acquisition to close in the second half of 2020, subject to the expiration of the waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of other required approvals and clearances under applicable antitrust laws and other customary conditions. Wright is a global medical device company focused on extremities and biologics. Following closing, we plan to integrate Wright into our Trauma and Extremities business within Orthopaedics. Purchase price allocations for our significant acquisitions are presented below:
The purchase price allocation for Mobius is based on preliminary valuations, primarily related to intangible assets that are subject to change within the measurement period. The purchase price allocation for OrthoSpace was finalized in 2020.
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Debt and Credit Facilities |
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Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES We have lines of credit issued by various financial institutions that are available to fund our day-to-day operating needs. Certain of our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on June 30, 2020. Our commercial paper program allows us to have a maximum of $1,500 in commercial paper outstanding with maturities up to 397 days from the date of issuance. On June 30, 2020 there were no amounts outstanding under our commercial paper program.
The fair value of the senior unsecured notes was estimated using quoted interest rates, maturities and amounts of borrowings based on quoted active market prices and yields that took into account the underlying terms of the debt instruments. Substantially all of our debt is classified within Level 2 of the fair value hierarchy. In January 2020 we repaid $500 of senior unsecured notes with a coupon of 4.375% that were due on January 15, 2020. On April 30, 2020 we amended our primary credit facility. The principal change was to increase the leverage ratio financial covenant from 3.5:1 to 4.5:1 at the end of each fiscal quarter ending on or prior to June 30, 2021. On April 30, 2020 we entered into a credit agreement that provides for up to $1,500 of borrowings in United States Dollars pursuant to a 364-day revolving credit facility, which matures on April 29, 2021 and is available for working capital and general corporate purposes. In June 2020 we issued $650 of senior unsecured notes with a fixed interest rate of 1.150% due on June 15, 2025, $1,000 of senior unsecured notes with a fixed interest rate of 1.950% due on June 15, 2030 and $650 of senior unsecured notes with a fixed interest rate of 2.900% due on June 15, 2050. The 2025 and 2030 notes are subject to a special mandatory redemption feature in which we will be required to redeem the notes in whole at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest if we do not consummate the Wright tender offer on or before February 4, 2021.
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Income Taxes |
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Jun. 30, 2020 | |
Income Tax [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rates were 4.6% and 15.0% in the three months and 18.5% and 14.6% in the six months 2020 and 2019. The changes in the effective tax rates were primarily due to pre-tax losses and a change in geographic profit mix for the three months and a favorable audit settlement recorded in 2019 for the six months. In March 2020 the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was signed into law in the United States. We do not expect the provisions of the CARES Act to have a material impact on our annual effective tax rate or Consolidated Financial Statements in 2020.
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Segment Information |
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Segment Information | SEGMENT INFORMATION
There were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for 2019.
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Asset Impairments Asset Impairments |
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Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairments | ASSET IMPAIRMENTS The significant negative impact the COVID-19 pandemic has had on Stryker’s operations and financial results has led to the decision to suspend certain in-process investments resulting in charges of $189 to impair certain long-lived assets (primarily the portion of our investment in a new global ERP system that was in-process of being developed for future deployment) and product line and other exit costs in the three months 2020. These charges are included in cost of sales and selling, general and administrative expenses.
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Basis Of Presentation (Policies) |
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Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements Not Yet Adopted | New Accounting Pronouncements Not Yet Adopted We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements.
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Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted On January 1, 2020 we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses for accounts receivables, loans and other financial instruments. The adoption of this update did not have a material impact on our Consolidated Financial Statements.
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Revenue Recognition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregated Revenue | We disaggregate our net sales by product line and geographic location for each of our segments as we believe it best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors.
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Accumulated Other Comprehensive (Loss) Income (AOCI) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) |
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Reclassification out of Accumulated Other Comprehensive Income |
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
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Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location |
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis |
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Investments Classified by Contractual Maturity Date |
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Contingencies and Commitments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost |
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Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition |
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense |
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Debt and Credit Facilities (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Long-term Debt, Unclassified [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments |
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Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Other Financial Information by Business Segment |
|
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Revenue Recognition [Abstract] | ||
Contract liabilities | $ 379 | $ 313 |
Derivative Instruments (Narrative) (Details) € in Millions, $ in Millions |
6 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jun. 30, 2020
EUR (€)
|
Dec. 31, 2019
EUR (€)
|
Nov. 30, 2019
EUR (€)
|
Jul. 31, 2019
USD ($)
|
Nov. 30, 2018
EUR (€)
|
|
Foreign Exchange Contract | |||||||
Notional amount | $ 7,099 | $ 8,088 | |||||
Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Notional amount | 639 | 1,113 | € 2,400 | $ 1,000 | € 2,250 | ||
Derivative, fair value | (23) | ||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | 9 | ||||||
Other Income | 27 | ||||||
Designated as Hedging Instrument | Interest Rate Swap | |||||||
Notional amount | 750 | ||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 6 | ||||||
Notional amount terminated | € | € 500 | € 600 | |||||
Net Investment Hedging [Member] | Designated as Hedging Instrument | |||||||
Notional amount | 1,124 | ||||||
Accrued Expenses | Designated as Hedging Instrument | Interest Rate Swap | |||||||
Pretax losses recorded in AOCI | $ 69 |
Derivative Instruments (Income Statement Location) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Foreign Exchange Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net currency exchange rate gains (losses) | $ 8 | $ (2) | $ 5 | $ (2) |
Foreign Exchange Contract | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net currency exchange rate gains (losses) | 3 | 0 | 0 | 2 |
Foreign Exchange Contract | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net currency exchange rate gains (losses) | (2) | (2) | (9) | (4) |
Net Investment Hedging [Member] | Other income (expense), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net currency exchange rate gains (losses) | $ 7 | $ 0 | $ 14 | $ 0 |
Fair Value Measurements (Assets and Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Due in one year or less | $ 41 | $ 50 |
Due after one year through three years | 39 | 38 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange forward contracts | 69 | 0 |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange forward contracts | $ 90 | $ 23 |
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Fair Value Disclosures [Abstract] | ||||
Gain on sale of marketable securities | $ 25 | $ 34 | $ 65 | $ 73 |
Contingencies and Commitments (Narrative) (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Minimum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 290 |
Maximum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 520 |
Contingencies and Commitments - Leases (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Commitments and Contingencies Disclosure [Abstract] | |||||
Right-of-use assets | $ 406 | $ 406 | $ 384 | ||
Lease liabilities, current | 92 | 92 | 86 | ||
Lease liabilities, non-current | $ 320 | $ 320 | $ 301 | ||
Other information | |||||
Weighted-average remaining lease term | 5 years 8 months 12 days | 5 years 8 months 12 days | 6 years 2 months 12 days | ||
Weighted-average discount rate | 3.03% | 3.03% | 3.34% | ||
Operating lease cost | $ 31 | $ 34 | $ 67 | $ 68 |
Acquisitions (Narrative) (Details) $ / shares in Units, $ in Millions |
1 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 13, 2019
$ / shares
|
Dec. 13, 2019
€ / shares
|
Nov. 30, 2019
USD ($)
$ / shares
|
Oct. 31, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
|
Jun. 30, 2019
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Aggregate purchase price of acquisitions | $ 26 | $ 425 | |||||
Acquisitions, net of cash acquired | $ 26 | $ 260 | |||||
Mobius | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price of acquisitions | $ 360 | ||||||
Future milestone payments | $ 130 | ||||||
OrthoSpace, Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price of acquisitions | $ 110 | ||||||
Future milestone payments | $ 110 | ||||||
Wright | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred (in dollars per share) | $ / shares | $ 30.75 | $ 30.75 | |||||
Acquisitions, net of cash acquired | $ 5,400 | ||||||
Par value of ordinary shares of acquiree (in dollars per share) | € / shares | € 0.03 |
Acquisitions (Future Amortization Expense) (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
---|---|
Business Combinations [Abstract] | |
Remainder of 2020 | $ 230 |
2021 | 442 |
2022 | 437 |
2023 | 419 |
2024 | $ 388 |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020
Rate
|
Jun. 30, 2019
Rate
|
Jun. 30, 2020
Rate
|
Jun. 30, 2019
Rate
|
|
Income Tax [Abstract] | ||||
Effective income tax rate reconciliation, percent | 4.60% | 15.00% | 18.50% | 14.60% |
Asset Impairments (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Property, Plant and Equipment [Abstract] | |||
Asset impairments | $ 189 | $ 161 | $ 0 |
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