10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13149

STRYKER CORPORATION
(Exact name of registrant as specified in its charter)

Michigan			38-1239739
(State of incorporation)			(I.R.S. Employer Identification No.)
2825 Airview Boulevard	Kalamazoo,	Michigan	49002
(Address of principal executive offices)			(Zip Code)
	(269)	385-2600
(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
Common Stock, $.10 Par Value	SYK	New York Stock Exchange
1.125% Notes due 2023	SYK23	New York Stock Exchange
0.250% Notes due 2024	SYK24A	New York Stock Exchange
2.125% Notes due 2027	SYK27	New York Stock Exchange
0.750% Notes due 2029	SYK29	New York Stock Exchange
2.625% Notes due 2030	SYK30	New York Stock Exchange
1.000% Notes due 2031	SYK31	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Small reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒

There were 379,778,279 shares of Common Stock, $0.10 par value, on June 30, 2023.

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

	Three Months				Six Months
	2023		2022		2023		2022
Net sales	$	4,996	$	4,493	$	9,774	$	8,768
Cost of sales	1,815		1,667		3,577		3,208
Gross profit	$	3,181	$	2,826	$	6,197	$	5,560
Research, development and engineering expenses	346		351		685		764
Selling, general and administrative expenses	1,706		1,539		3,487		3,249
Recall charges, net	3		4		3		18
Amortization of intangible assets	161		160		322		310
Total operating expenses	$	2,216	$	2,054	$	4,497	$	4,341
Operating income	$	965	$	772	$	1,700	$	1,219
Other income (expense), net	(66)		(52)		(122)		(113)
Earnings before income taxes	$	899	$	720	$	1,578	$	1,106
Income taxes	161		64		248		127
Net earnings	$	738	$	656	$	1,330	$	979
Net earnings per share of common stock:
Basic	$	1.95	$	1.73	$	3.51	$	2.59
Diluted	$	1.93	$	1.72	$	3.47	$	2.56
Weighted-average shares outstanding (in millions):
Basic	379.7		378.3		379.4		378.0
Effect of dilutive employee stock compensation	4.2		3.9		4.2		4.5
Diluted	383.9		382.2		383.6		382.5
Cash dividends declared per share of common stock	$	0.75	$	0.695	$	1.50	$	1.39

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were 4.5 for the three months 2022 and de minimis in all other periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months				Six Months
	2023		2022		2023		2022
Net earnings	$	738	$	656	$	1,330	$	979
Other comprehensive income (loss), net of tax:
Marketable securities	—		—		—		(1)
Pension plans	(1)		8		(3)		7
Unrealized gains (losses) on designated hedges	11		24		2		25
Financial statement translation	(35)		161		(108)		214
Total other comprehensive income (loss), net of tax	$	(25)	$	193	$	(109)	$	245
Comprehensive income	$	713	$	849	$	1,221	$	1,224

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 1

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS

	June 30		December 31
	2023		2022
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	1,401	$	1,844
Marketable securities	77		84
Accounts receivable, less allowance of $181 ($154 in 2022)	3,261		3,565
Inventories:
Materials and supplies	1,221		1,006
Work in process	391		348
Finished goods	2,981		2,641
Total inventories	$	4,593	$	3,995
Prepaid expenses and other current assets	819		787
Total current assets	$	10,151	$	10,275
Property, plant and equipment:
Land, buildings and improvements	1,646		1,739
Machinery and equipment	4,441		4,066
Total property, plant and equipment	$	6,087	$	5,805
Less allowance for depreciation	3,005		2,835
Property, plant and equipment, net	$	3,082	$	2,970
Goodwill	15,172		14,880
Other intangibles, net	4,917		4,885
Noncurrent deferred income tax assets	1,439		1,410
Other noncurrent assets	2,648		2,464
Total assets	$	37,409	$	36,884
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	1,326	$	1,413
Accrued compensation	929		1,149
Income taxes	298		292
Dividends payable	284		284
Accrued product liabilities	220		230
Accrued expenses and other liabilities	1,729		1,744
Current maturities of debt	1,798		1,191
Total current liabilities	$	6,584	$	6,303
Long-term debt, excluding current maturities	11,149		11,857
Income taxes	469		641
Other noncurrent liabilities	1,846		1,467
Total liabilities	$	20,048	$	20,268
Shareholders' equity
Common stock, $0.10 par value	38		38
Additional paid-in capital	2,127		2,034
Retained earnings	15,526		14,765
Accumulated other comprehensive loss	(330)		(221)
Total shareholders' equity	$	17,361	$	16,616
Total liabilities and shareholders' equity	$	37,409	$	36,884

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 2

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

	Three Months				Six Months
	2023		2022		2023		2022
Common stock shares outstanding (in millions)
Beginning	379.6		378.2		378.7		377.5
Issuance of common stock under stock compensation and benefit plans	0.2		0.1		1.1		0.8
Ending	379.8		378.3		379.8		378.3
Common stock
Beginning	$	38	$	38	$	38	$	38
Issuance of common stock under stock compensation and benefit plans	—		—		—		—
Ending	$	38	$	38	$	38	$	38
Additional paid-in capital
Beginning	$	2,090	$	1,947	$	2,034	$	1,890
Issuance of common stock under stock compensation and benefit plans	(2)		6		(20)		(8)
Share-based compensation	39		36		113		107
Ending	$	2,127	$	1,989	$	2,127	$	1,989
Retained earnings
Beginning	$	15,072	$	13,540	$	14,765	$	13,480
Net earnings	738		656		1,330		979
Cash dividends declared	(284)		(263)		(569)		(526)
Ending	$	15,526	$	13,933	$	15,526	$	13,933
Accumulated other comprehensive income (loss)
Beginning	$	(305)	$	(479)	$	(221)	$	(531)
Other comprehensive income (loss)	(25)		193		(109)		245
Ending	$	(330)	$	(286)	$	(330)	$	(286)
Total shareholders' equity	$	17,361	$	15,674	$	17,361	$	15,674

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 3

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months
	2023		2022
Operating activities
Net earnings	$	1,330	$	979
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	194		185
Amortization of intangible assets	322		310
Asset impairments	3		—
Share-based compensation	113		107
Recall charges, net	3		18
Sale of inventory stepped-up to fair value at acquisition	—		12
Changes in operating assets and liabilities:
Accounts receivable	308		(159)
Inventories	(589)		(523)
Accounts payable	(97)		34
Accrued expenses and other liabilities	(159)		(257)
Recall-related payments	(23)		(19)
Income taxes	(169)		(132)
Other, net	(103)		177
Net cash provided by operating activities	$	1,133	$	732
Investing activities
Acquisitions, net of cash acquired	(390)		(2,563)
Purchases of marketable securities	(35)		(38)
Proceeds from sales of marketable securities	42		29
Purchases of property, plant and equipment	(282)		(262)
Net cash used in investing activities	$	(665)	$	(2,834)
Financing activities
Proceeds (payments) on short-term borrowings, net	(4)		(376)
Proceeds from issuance of long-term debt	—		1,500
Payments on long-term debt	(201)		(252)
Payments of dividends	(569)		(525)
Cash paid for taxes from withheld shares	(111)		(84)
Other financing, net	(1)		(23)
Net cash provided by (used in) financing activities	$	(886)	$	240
Effect of exchange rate changes on cash and cash equivalents	(25)		(38)
Change in cash and cash equivalents	$	(443)	$	(1,900)
Cash and cash equivalents at beginning of period	1,844		2,944
Cash and cash equivalents at end of period	$	1,401	$	1,044

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 4

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - 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, 2023 and the results of operations for the three and six months 2023. 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 2022. Certain immaterial reclassifications have been made to prior year's segment operating income to conform with current year presentation in our Consolidated Financial Statements.

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.

NOTE 2 - REVENUE RECOGNITION

Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for 2022.

We disaggregate our net sales by business 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.

Beginning in the first quarter 2023 we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $87 and $77 for the three months 2023 and 2022 and $168 and $146 for the six months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months				Six Months
	2023		2022		2023		2022
MedSurg and Neurotechnology:
Instruments	$	630	$	563	$	1,205	$	1,091
Endoscopy	705		677		1,403		1,284
Medical	841		666		1,619		1,330
Neurovascular	311		306		595		607
Neuro Cranial	373		337		728		660
	$	2,860	$	2,549	$	5,550	$	4,972
Orthopaedics and Spine:
Knees	$	562	$	500	$	1,128	$	964
Hips	393		364		768		691
Trauma and Extremities	766		676		1,535		1,361
Spine	296		290		580		569
Other	119		114		213		211
	$	2,136	$	1,944	$	4,224	$	3,796
Total	$	4,996	$	4,493	$	9,774	$	8,768

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	512	$	118	$	451	$	112
Endoscopy	568		137		548		129
Medical	682		159		536		130
Neurovascular	123		188		113		193
Neuro Cranial	306		67		281		56
	$	2,191	$	669	$	1,929	$	620
Orthopaedics and Spine:
Knees	$	406	$	156	$	368	$	132
Hips	249		144		230		134
Trauma and Extremities	559		207		489		187
Spine	221		75		209		81
Other	85		34		86		28
	$	1,520	$	616	$	1,382	$	562
Total	$	3,711	$	1,285	$	3,311	$	1,182

Net Sales by Geography
	Six Months 2023				Six Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	962	$	243	$	865	$	226
Endoscopy	1,132		271		1,034		250
Medical	1,294		325		1,061		269
Neurovascular	241		354		223		384
Neuro Cranial	595		133		545		115
	$	4,224	$	1,326	$	3,728	$	1,244
Orthopaedics and Spine:
Knees	$	822	$	306	$	713	$	251
Hips	485		283		432		259
Trauma and Extremities	1,113		422		976		385
Spine	433		147		409		160
Other	146		67		158		53
	$	2,999	$	1,225	$	2,688	$	1,108
Total	$	7,223	$	2,551	$	6,416	$	2,352

Contract Assets and Liabilities

On June 30, 2023 and December 31, 2022 contract assets recorded in our Consolidated Balance Sheets were not significant.

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. This occurs primarily when payment is received upfront for certain multi-period extended service contracts. Our contract liabilities of $784 and $741 on June 30, 2023 and December 31, 2022 are classified within accrued expenses and other liabilities and other noncurrent liabilities within our Consolidated Balance Sheets based on the timing of when we expect to complete our performance obligations.

Changes in contract liabilities during the six months 2023 were as follows:

	June 2023
Beginning contract liabilities	$	741
Revenue recognized from beginning of year contract liabilities	(230)
Net advance consideration received during the period	273
Ending contract liabilities	$	784

Dollar amounts are in millions except per share amounts or as otherwise specified. 5

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)

Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	29	$	43	$	(376)	$	(305)
OCI	(1)		1		24		(24)		—
Income taxes	—		(2)		(5)		(4)		(11)
Reclassifications to:
Cost of sales	—		—		(9)		—		(9)
Other (income) expense, net	1		(1)		(1)		(9)		(10)
Income taxes	—		1		2		2		5
Net OCI	—		(1)		11		(35)		(25)
Ending	$	(1)	$	28	$	54	$	(411)	$	(330)

Three Months 2022	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	(156)	$	41	$	(363)	$	(479)
OCI	—		8		32		268		308
Income taxes	—		(2)		(4)		(98)		(104)
Reclassifications to:
Cost of sales	—		—		(3)		—		(3)
Other (income) expense, net	—		2		(1)		(11)		(10)
Income taxes	—		—		—		2		2
Net OCI	—		8		24		161		193
Ending	$	(1)	$	(148)	$	65	$	(202)	$	(286)

Six Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	31	$	52	$	(303)	$	(221)
OCI	(1)		3		27		(123)		(94)
Income taxes	—		(5)		(6)		28		17
Reclassifications to:
Cost of sales	—		—		(22)		—		(22)
Other (income) expense, net	1		(2)		(2)		(17)		(20)
Income taxes	—		1		5		4		10
Net OCI	—		(3)		2		(108)		(109)
Ending	$	(1)	$	28	$	54	$	(411)	$	(330)

Six Months 2022	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	—	$	(155)	$	40	$	(416)	$	(531)
OCI	(1)		4		36		354		393
Income taxes	—		—		(6)		(123)		(129)
Reclassifications to:
Cost of sales	—		—		(3)		—		(3)
Other (income) expense, net	—		4		(2)		(22)		(20)
Income taxes	—		(1)		—		5		4
Net OCI	(1)		7		25		214		245
Ending	$	(1)	$	(148)	$	65	$	(202)	$	(286)

NOTE 4 - 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 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 2022.

Foreign Currency Hedges

June 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	809	$	1,630	$	3,885	$	6,324
Maximum term in years							3.4
Fair value:
Other current assets	$	30	$	—	$	24	$	54
Other noncurrent assets	2		79		—		81
Other current liabilities	(6)		—		(15)		(21)
Other noncurrent liabilities	—		(27)		—		(27)
Total fair value	$	26	$	52	$	9	$	87

December 2022	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	1,053	$	1,598	$	3,417	$	6,068
Maximum term in years							3.9
Fair value:
Other current assets	$	20	$	—	$	9	$	29
Other noncurrent assets	1		89		—		90
Other current liabilities	(6)		—		(79)		(85)
Other noncurrent liabilities	(1)		(16)		—		(17)
Total fair value	$	14	$	73	$	(70)	$	17

We had €1.5 billion at June 30, 2023 and December 31, 2022 in certain forward currency contracts designated as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. In addition to these derivative financial instruments designated as net investment hedges, we had €4.4 billion at June 30, 2023 and December 31, 2022 of senior unsecured notes designated 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.

The total after-tax gain (loss) recognized in OCI related to designated net investment hedges was ($101) in the six months 2023.

Net Currency Exchange Rate Gains (Losses)

Derivative		Three Months				Six Months
instrument:	Recorded in:	2023		2022		2023		2022
Cash Flow	Cost of sales	$	9	$	3	$	22	$	3
Net Investment	Other income (expense), net	9		11		17		22
Non-Designated	Other income (expense), net	5		2		9		3
	Total	$	23	$	16	$	48	$	28

Pretax gains (losses) on derivatives designated as cash flow hedges of $30 and net investment hedges of $34 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months of June 30, 2023. 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.

Dollar amounts are in millions except per share amounts or as otherwise specified. 6

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

Interest Rate Hedges

Pretax gains of $5 recorded in AOCI related to other interest rate hedges closed in conjunction with debt issuances are expected to be reclassified to other income (expense), net in earnings within 12 months of June 30, 2023. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

NOTE 5 - 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 2022.

In the third quarter 2022 we determined that certain commercial and regulatory milestones related to technology acquired in the purchase of Mobius Imaging and Cardan Robotics were no longer probable of being achieved and recorded a $110 reduction in the fair value of contingent consideration reflected in selling, general and administrative expenses.

In the second quarter 2023 we recorded $192 of contingent consideration related to the acquisition of Cerus Endovascular Limited (Cerus) described in Note 7.

There were no significant transfers into or out of any level of the fair value hierarchy in 2023.

Assets Measured at Fair Value	June		December
	2023		2022
Cash and cash equivalents	$	1,401	$	1,844
Trading marketable securities	192		166
Level 1 - Assets	$	1,593	$	2,010
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	36	$	42
Foreign government debt securities	—		1
United States agency debt securities	5		3
United States treasury debt securities	35		36
Certificates of deposit	1		2
Total available-for-sale marketable securities	$	77	$	84
Foreign currency exchange forward contracts	135		119
Level 2 - Assets	$	212	$	203
Total assets measured at fair value	$	1,805	$	2,213

Liabilities Measured at Fair Value	June		December
	2023		2022
Deferred compensation arrangements	$	192	$	166
Level 1 - Liabilities	$	192	$	166
Foreign currency exchange forward contracts	$	48	$	102
Level 2 - Liabilities	$	48	$	102
Contingent consideration:
Beginning	$	121	$	306
Additions	192		1
Change in estimate and foreign exchange	(3)		(137)
Settlements	(1)		(49)
Ending	$	309	$	121
Level 3 - Liabilities	$	309	$	121
Total liabilities measured at fair value	$	549	$	389

Fair Value of Available for Sale Securities by Maturity
	June		December
	2023		2022
Due in one year or less	$	42	$	53
Due after one year through three years	$	35	$	31

On June 30, 2023 and December 31, 2022 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest on cash and cash equivalents, short-term investments and marketable securities income was $11 and $20 in the three months and $25 and $35 in the six months 2023 and 2022, which was recorded in other income (expense), net.

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.

NOTE 6 - 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 certain 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.

In April 2022 the United States District Court for the District of Delaware issued a judgment following a jury verdict in favor of PureWick Corporation (PureWick) for its 2019 complaint seeking patent infringement damages related to our PrimaFit and PrimoFit products. Following a jury trial, the court awarded damages related to this complaint and we recorded charges of $28 in March 2022. Stryker plans to appeal the results of the trial. If ultimately successful, PureWick may seek to recover its legal fees. In June 2022 PureWick filed a motion to enhance the damages awarded, which the court denied in March 2023. In 2022 PureWick also filed a separate complaint seeking additional patent infringement damages related to our current PrimaFit products. A trial for this matter is currently set for December 2023.

We are currently investigating whether certain business activities in certain foreign countries violated provisions of the Foreign Corrupt Practices Act (FCPA) and have engaged outside counsel to conduct these investigations. We have been contacted by the United States Securities and Exchange Commission, United States Department of Justice and certain other regulatory authorities and are cooperating with these agencies. At this time we are unable to predict the outcome of the investigations or the potential impact, if any, on our financial statements.

Recall Matters

We have conducted voluntary recalls of certain products, including our Rejuvenate and ABG II Modular-Neck hip stems and certain lot-specific sizes and offsets of LFIT Anatomic CoCr V40 Femoral Heads. Additionally, we are responsible for certain product liability claims, primarily related to certain hip products sold by Wright Medical Group N.V. (Wright) prior to its 2014 divestiture of the OrthoRecon business.

Dollar amounts are in millions except per share amounts or as otherwise specified. 7

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

We have incurred, and expect to incur in the future, costs associated with the defense and settlement of claims and lawsuits related to our recalls. Based on the information that has been received, we have recorded reserves of $194, representing our best estimate of probable loss related to recall matters globally. 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.

Leases	June			December
	2023			2022
Right-of-use assets	$	481		$	473
Lease liabilities, current	$	125		$	121
Lease liabilities, non-current	$	363		$	357
Other information:
Weighted-average remaining lease term (years)	5.7			5.5
Weighted-average discount rate	3.60		%	3.22		%

	Three Months				Six Months
	2023		2022		2023		2022
Operating lease cost	$	41	$	38	$	79	$	73

NOTE 7 - ACQUISITIONS

We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. In the six months 2023 and 2022 cash paid for acquisitions, net of cash acquired was $390 and $2,563.

On May 2, 2023 we acquired Cerus for net cash consideration of $289 and up to $225 in future milestone payments that had a fair value of $192 at the acquisition date. Cerus designs, develops and manufactures neurovascular products used for the treatment of hemorrhagic stroke. Cerus is part of our Neurovascular business within MedSurg and Neurotechnology. Goodwill attributable to the acquisition is not deductible for tax purposes.

In February 2022 we completed the acquisition of Vocera Communications, Inc. (Vocera) for $79.25 per share, or an aggregate purchase price of $2.6 billion, net of cash acquired ($3.0 billion including convertible notes). Vocera is a leader in the digital care coordination and communication category. Vocera is part of our Medical business within MedSurg and Neurotechnology. Goodwill attributable to the acquisition reflects the strategic benefits of expanding our presence in adjacent markets, diversifying our product portfolio, advancing innovations, and accelerating our digital aspirations. This goodwill is not deductible for tax purposes.

In the six months 2022 note holders elected to redeem the 1.50% and 0.50% convertible notes assumed in the Vocera acquisition for $101 and $324. These repayments are classified as financing activities in the Consolidated Statements of Cash Flows.

Share-based awards for Vocera employees vested upon our acquisition and a charge of $132 was recorded in selling, general and administrative expenses in 2022.

Purchase price allocations for our significant acquisitions are:

Purchase Price Allocation of Acquired Net Assets
	2023		2022
	Cerus		Vocera
Tangible assets acquired:
Accounts receivable	$	1	$	33
Inventory	2		13
Deferred income tax assets	7		91
Other assets	1		92
Debt	—		(425)
Deferred income tax liabilities	(60)		(193)
Other liabilities	(22)		(117)
Intangible assets:
Customer and distributor relationships	—		603
Developed technology	240		175
Trade name	—		18
Goodwill	312		2,273
Purchase price, net of cash acquired of $7 and $281	$	481	$	2,563
Weighted average amortization period at acquisition (years):
Developed technologies	15		6
Customer relationships	—		15
Trademarks	—		9

The purchase price allocation for Cerus is based on preliminary valuations, primarily related to developed technology and deferred income taxes. Our estimates and assumptions are subject to change within the measurement period. The purchase price allocation for Vocera was finalized in the first quarter 2023 without material adjustments.

Consolidated Estimated Amortization Expense
Remainder of 2023		2024		2025		2026		2027
$	319	$	608	$	591	$	534	$	511

NOTE 8 - 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. Our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on June 30, 2023.

In February 2022 we entered into a $1.5 billion term loan agreement that matures on February 22, 2025 and bears interest at a base rate based on the Term Secured Overnight Financing Rate (SOFR) plus 0.725%. Through June 30, 2023 we have repaid $850 on the term loan.

In the first quarter 2022 our Board of Directors approved an increase to the maximum amount of commercial paper that can be outstanding from $1,500 to $2,250.

On June 30, 2023 there were no borrowings outstanding under our revolving credit facility or our commercial paper program which allows for maturities up to 397 days from the date of issuance.

Dollar amounts are in millions except per share amounts or as otherwise specified. 8

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

Summary of Total Debt			June		December
			2023		2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	598	$	585
	0.600%	December 1, 2023	600		599
	3.375%	May 15, 2024	597		596
	0.250%	December 3, 2024	922		903
	1.150%	June 15, 2025	647		647
	3.375%	November 1, 2025	749		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	812		795
	3.650%	March 7, 2028	597		597
	0.750%	March 1, 2029	865		848
	1.950%	June 15, 2030	992		991
	2.625%	November 30, 2030	699		684
	1.000%	December 3, 2031	807		790
	4.100%	April 1, 2043	392		392
	4.375%	May 15, 2044	396		396
	4.625%	March 15, 2046	983		983
	2.900%	June 15, 2050	642		642
Term loan			650		850
Other			3		7
Total debt			$	12,947	$	13,048
Less current maturities			1,798		1,191
Total long-term debt			$	11,149	$	11,857
			June		December
			2023		2022
Unamortized debt issuance costs			$	47	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,082	$	10,910

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.

NOTE 9 - INCOME TAXES

Our effective tax rates were 17.9% and 15.7% in the three and six months 2023 and 8.9% and 11.5% in the three and six months 2022. The effective tax rates for the three and six months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. In addition, the effective tax rates for the three and six months 2022 reflect the reversal of deferred income tax on undistributed earnings of foreign subsidiaries as our revised capital plan determined that certain cash outside of the United States would no longer need to be repatriated during the period previously contemplated.

NOTE 10 - SEGMENT INFORMATION

	Three Months				Six Months
	2023		2022		2023		2022
MedSurg and Neurotechnology	$	2,860	$	2,549	$	5,550	$	4,972
Orthopaedics and Spine	2,136		1,944		4,224		3,796
Net sales	$	4,996	$	4,493	$	9,774	$	8,768
MedSurg and Neurotechnology	$	780	$	629	$	1,407	$	1,259
Orthopaedics and Spine	601		579		1,202		1,082
Segment operating income	$	1,381	$	1,208	$	2,609	$	2,341
Items not allocated to segments:
Corporate and other	$	(165)	$	(145)	$	(387)	$	(344)
Acquisition and integration-related costs	(2)		(37)		(8)		(186)
Amortization of intangible assets	(161)		(160)		(322)		(310)
Structural optimization and other special charges	(72)		(62)		(114)		(171)
Medical device regulations	(27)		(32)		(55)		(60)
Recall-related matters	(3)		(4)		(3)		(18)
Regulatory and legal matters	14		4		(20)		(33)
Consolidated operating income	$	965	$	772	$	1,700	$	1,219

There were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for 2022.

Dollar amounts are in millions except per share amounts or as otherwise specified. 9

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ABOUT STRYKER

Stryker is one of the world's leading medical technology companies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in Medical and Surgical, Neurotechnology, Orthopaedics and Spine that help improve patient and healthcare outcomes. Alongside its customers around the world, Stryker impacts more than 130 million patients annually.

We segregate our operations into two reportable business segments: (i) MedSurg and Neurotechnology and (ii) Orthopaedics and Spine. MedSurg and Neurotechnology products include surgical equipment and navigation systems (Instruments), endoscopic and communications systems (Endoscopy), patient handling, emergency medical equipment and intensive care disposable products (Medical), minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke (Neurovascular), a comprehensive line of products for traditional brain and open skull based surgical procedures; orthobiologic and biosurgery products, including synthetic bone grafts and vertebral augmentation products (Neuro Cranial). Orthopaedics and Spine products consist primarily of implants used in hip and knee joint replacements and trauma and extremity surgeries, and cervical, thoracolumbar and interbody systems used in spinal injury, deformity and degenerative therapies.

Macroeconomic Environment

The global economy continues to experience increased inflationary pressures in part due to global supply chain disruptions, labor shortages and other impacts of the macroeconomic environment which we anticipate will continue. Higher interest rates and capital costs, higher shipping costs, increased costs of labor, fluctuating foreign currency exchange rates and the military conflict in Russia and Ukraine have created additional economic challenges and uncertainties. These conditions may cause our customers to decrease or delay orders for our products and services, and the higher interest rates may impact deal mix for our capital products.

China Volume-Based Procurement and Import Purchase Evaluation

The government in China has launched regional and national programs for volume-based procurement (VBP) of high-value medical consumables to reduce healthcare costs. Each VBP program has specific requirements to award contracts to the lowest bidders who are able to satisfy the quality and quantity requirements. The successful bidders may be guaranteed sales volume for certain products, while unsuccessful bidders may lose unit sales volume. We have been a winning bidder in certain national and regional VBP programs, including those for joint replacement and trauma products in 2021 and certain neurovascular products in the fourth quarter 2022 and the first six months of 2023. The prices required for a successful bid have negatively impacted the commercial operations of our joint

replacement, trauma and certain neurovascular products in China.

We were unsuccessful in our bids in the VBP program for spine products that took place in the third quarter 2022 and as a result we are exiting the spine business in China. To date our other businesses have not been significantly impacted, but may be in the future as a result of additional VBP programs. In the second quarter 2023 government agencies announced data collection initiatives for sports medicine, biologics and craniomaxilliofacial products in preparation for VBP programs that could be announced as soon as the third quarter 2023. The impact of VBP programs, if any, for these products is not expected to be significant. China has also issued national guiding standards for Import Purchase Evaluation which has increased the purchase of locally sourced equipment in China's public hospitals and is impacting our MedSurg business in China. Our business in China represented approximately 1.8% our revenues in the six months 2023.

Overview of the Three and Six Months

In the three months 2023 we achieved sales growth of 11.2% from 2022. Excluding the impact of acquisitions and divestitures sales grew 11.9% in constant currency. We reported operating income margin of 19.3%, net earnings of $738 and net earnings per diluted share of $1.93. Excluding the impact of certain items, adjusted operating income margin(1) increased by 60 basis points to 24.3%, with adjusted net earnings(1) of $976 and adjusted net earnings per diluted share(1) of $2.54, an increase of 12.9% from 2022.

In the six months 2023 we achieved sales growth of 11.5% from 2022. Excluding the impact of acquisitions and divestitures sales grew 12.7% in constant currency. We reported operating income margin of 17.4%, net earnings of $1,330 and net earnings per diluted share of $3.47. Excluding the impact of certain items, adjusted operating income margin(1) contracted by 10 basis points to 22.7%, with adjusted net earnings(1) of $1,796 and adjusted net earnings per diluted share(1) of $4.68, an increase of 10.9% from 2022.

Recent Developments

On May 2, 2023 we acquired Cerus Endovascular Limited (Cerus) for net cash consideration of $289 and up to $225 in future milestone payments. Cerus designs, develops and manufactures neurovascular products used for the treatment of hemorrhagic stroke. Cerus is part of our Neurovascular business within MedSurg and Neurotechnology. Refer to Note 7 to our Consolidated Financial Statements for further information.

(1) Refer to "Non-GAAP Financial Measures" for a discussion of non-GAAP financial measures used in this report and a reconciliation to the most directly comparable GAAP financial measure.

Dollar amounts are in millions except per share amounts or as otherwise specified. 10

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

CONSOLIDATED RESULTS OF OPERATIONS
	Three Months										Six Months
					Percent Net Sales				Percentage						Percent Net Sales				Percentage
	2023		2022		2023		2022		Change		2023		2022		2023		2022		Change
Net sales	$	4,996	$	4,493	100.0	%	100.0	%	11.2	%	$	9,774	$	8,768	100.0	%	100.0	%	11.5	%
Gross profit	3,181		2,826		63.7		62.9		12.6		6,197		5,560		63.4		63.4		11.5
Research, development and engineering expenses	346		351		6.9		7.8		(1.4)		685		764		7.0		8.7		(10.3)
Selling, general and administrative expenses	1,706		1,539		34.1		34.3		10.9		3,487		3,249		35.7		37.1		7.3
Recall charges, net	3		4		0.1		0.1		(25.0)		3		18		—		0.2		(83.3)
Amortization of intangible assets	161		160		3.2		3.6		0.6		322		310		3.3		3.5		3.9
Other income (expense), net	(66)		(52)		(1.3)		(1.2)		26.9		(122)		(113)		(1.2)		(1.3)		8.0
Income taxes	161		64		nm		nm		151.6		248		127		nm		nm		95.3
Net earnings	$	738	$	656	14.8	%	14.6	%	12.5	%	$	1,330	$	979	13.6	%	11.2	%	35.9	%
Net earnings per diluted share	$	1.93	$	1.72					12.2	%	$	3.47	$	2.56					35.5	%
Adjusted net earnings per diluted share(1)	$	2.54	$	2.25					12.9	%	$	4.68	$	4.22					10.9	%

nm - not meaningful

Geographic and Segment Net Sales	Three Months								Six Months
					Percentage Change								Percentage Change
	2023		2022		As Reported		Constant Currency		2023		2022		As Reported		Constant Currency
Geographic:
United States	$	3,711	$	3,311	12.1	%	12.1	%	$	7,223	$	6,416	12.6	%	12.6	%
International	1,285		1,182		8.7		11.5		2,551		2,352		8.5		13.9
Total	$	4,996	$	4,493	11.2	%	11.9	%	$	9,774	$	8,768	11.5	%	12.9	%
Segment:
MedSurg and Neurotechnology	$	2,860	$	2,549	12.2	%	12.9	%	$	5,550	$	4,972	11.6	%	13.0	%
Orthopaedics and Spine	2,136		1,944		9.9		10.6		4,224		3,796		11.3		12.8
Total	$	4,996	$	4,493	11.2	%	11.9	%	$	9,774	$	8,768	11.5	%	12.9	%

Supplemental Net Sales Growth Information
	Three Months														Six Months
					Percentage Change														Percentage Change
									United States		International												United States		International
	2023		2022		As Reported		Constant Currency		As Reported		As Reported		Constant Currency		2023		2022		As Reported		Constant Currency		As Reported		As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments	$	630	$	563	11.9	%	12.4	%	13.2	%	6.7	%	9.1	%	$	1,205	$	1,091	10.4	%	11.6	%	11.1	%	7.8	%	13.3	%
Endoscopy	705		677		4.1		4.6		3.5		6.9		9.7		1,403		1,284		9.3		10.3		9.5		8.5		13.8
Medical	841		666		26.3		26.9		27.2		22.5		25.7		1,619		1,330		21.7		22.9		21.9		21.0		26.9
Neurovascular	311		306		1.5		3.6		9.0		(2.9)		0.3		595		607		(2.0)		1.3		8.1		(7.9)		(2.9)
Neuro Cranial	373		337		10.8		11.3		9.6		16.5		20.0		728		660		10.3		11.3		9.4		15.1		21.3
	$	2,860	$	2,549	12.2	%	12.9	%	13.5	%	8.0	%	11.0	%	$	5,550	$	4,972	11.6	%	13.0	%	13.3	%	6.6	%	12.1	%
Orthopaedics and Spine:
Knees	$	562	$	500	12.5	%	13.2	%	10.4	%	18.1	%	21.2	%	$	1,128	$	964	17.0	%	18.4	%	15.3	%	22.0	%	27.8	%
Hips	393		364		8.1		9.3		8.8		6.8		10.3		768		691		11.1		13.5		12.3		9.0		15.6
Trauma and Extremities	766		676		13.3		13.6		14.3		10.7		11.7		1,535		1,361		12.8		14.0		14.0		9.8		14.1
Spine	296		290		1.8		2.1		5.2		(7.0)		(6.1)		580		569		1.9		3.0		5.7		(8.0)		(4.6)
Other	119		114		4.3		6.2		(1.6)		22.3		30.9		213		211		0.7		2.9		(7.6)		25.3		35.8
	$	2,136	$	1,944	9.9	%	10.6	%	10.0	%	9.5	%	12.0	%	$	4,224	$	3,796	11.3	%	12.8	%	11.6	%	10.6	%	15.9	%
Total	$	4,996	$	4,493	11.2	%	11.9	%	12.1	%	8.7	%	11.5	%	$	9,774	$	8,768	11.5	%	12.9	%	12.6	%	8.5	%	13.9	%

Note: Beginning in the first quarter 2023 we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $87 and $77 for the three months 2023 and 2022 and $168 and $146 for the six months 2023 and 2022. We have reflected these changes in all historical periods presented.

Consolidated Net Sales

Consolidated net sales increased 11.2% in the three months 2023 as reported and 11.9% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.7%. Net sales in constant currency increased by 11.4% from increased unit volume and 0.5% due to higher prices. The unit volume increase was due to higher product shipments across all

MedSurg and Neurotechnology and Orthopaedics and Spine businesses.

Consolidated net sales increased 11.5% in the six months 2023 as reported and 12.9% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.4%. Excluding the 0.2% impact of acquisitions and divestitures, net sales in constant currency increased by 12.1% from increased unit

Dollar amounts are in millions except per share amounts or as otherwise specified. 11

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

volume and 0.6% due to higher prices. The unit volume increase was due to higher product shipments across all MedSurg and Neurotechnology and Orthopaedics and Spine businesses.

MedSurg and Neurotechnology Net Sales

MedSurg and Neurotechnology net sales increased 12.2% in the three months 2023 as reported and 12.9% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.7%. Net sales in constant currency increased by 11.5% from increased unit volume and 1.4% from higher prices. The unit volume increase was due to higher shipments across all MedSurg and Neurotechnology businesses.

MedSurg and Neurotechnology net sales increased 11.6% in the six months 2023 as reported and 13.0% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.4%. Excluding the 0.4% impact of acquisitions and divestitures, net sales in constant currency increased by 11.0% from increased unit volume and 1.6% from higher prices. The unit volume increase was due to higher shipments across all MedSurg and Neurotechnology businesses.

Orthopaedics and Spine Net Sales

Orthopaedics and Spine net sales increased 9.9% in the three months 2023 as reported and 10.6% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.7%. Net sales in constant currency increased 11.3% from increased unit volume partially offset by 0.7% from lower prices. The unit volume increase was due to higher shipments across all Orthopaedics and Spine businesses.

Orthopaedics and Spine net sales increased 11.3% in the six months 2023 as reported and 12.8% in constant currency, as foreign currency exchange rates negatively impacted net sales by 1.5%. Net sales in constant currency increased 13.6% from increased unit volume partially offset by 0.8% from lower prices. The unit volume increase was due to higher shipments across all Orthopaedics and Spine businesses.

Gross Profit

Gross profit was $3,181 and $2,826 in the three months 2023 and 2022. The key components of the change were:

	Gross Profit Percent Net Sales
Three Months 2022	62.9	%
Sales pricing	20 bps
Volume and mix	100 bps
Manufacturing and supply chain costs	(60) bps
Inventory stepped up to fair value	20 bps
Three Months 2023	63.7	%

Gross profit as a percentage of net sales in the three months 2023 increased to 63.7% from 62.9% in 2022 due to favorable volume and mix partially offset by higher manufacturing and supply chain costs primarily due to supply chain inefficiencies.

	Gross Profit Percent Net Sales
Six Months 2022	63.4	%
Sales pricing	20 bps
Volume and mix	100 bps
Manufacturing and supply chain costs	(130) bps
Inventory stepped up to fair value	10 bps
Six Months 2023	63.4	%

Gross profit as a percentage of net sales in the six months 2023 of 63.4% remained flat with 2022 due to higher prices and favorable volume and mix offset by higher manufacturing and supply chain costs primarily due to higher raw material costs and supply chain inefficiencies.

While segment mix was not a significant driver of the change in gross profit as a percent of net sales between the three and six months 2023 and 2022, we generally expect segment mix to have an unfavorable impact for the foreseeable future as we anticipate more rapid sales growth in our lower gross margin MedSurg and Neurotechnology segment than our Orthopaedics and Spine segment.

Research, Development and Engineering Expenses

Research, development and engineering expenses decreased $5 or 1.4% in the three months 2023 and decreased as a percentage of net sales to 6.9% from 7.8% in 2022, primarily due to increased costs for product launches in the three months 2022.

Research, development and engineering expenses decreased $79 or 10.3% in the six months 2023 and decreased as a percentage of net sales to 7.0% from 8.7% in 2022, primarily due to increased costs for product launches and the write-off of certain intangible assets in the six months 2022.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $167 or 10.9% in the three months 2023 and decreased as a percentage of net sales to 34.1% from 34.3% in 2022, primarily due to disciplined increases in spend and investments to support our growth. Expenses as a percentage of net sales in the three months 2022 included the impact of $30 of charges for acquisition and integration-related costs primarily related to Wright and Vocera.

Selling, general and administrative expenses increased $238 or 7.3% in the six months 2023 and decreased as a percentage of net sales to 35.7% from 37.1% in 2022. Expenses as a percentage of net sales in the six months 2022 included the impact of $132 of charges for share-based awards for Vocera employees that vested upon our acquisition. The increase in selling, general and administrative expenses in the six months 2023 was primarily due to disciplined increases in spend and investments to support our growth.

Recall Charges, Net

Recall charges, net were $3 and $4 in the three months and $3 and $18 in the six months 2023 and 2022. Charges in the three and six months 2023 were related to LFIT Anatomic CoCr V40 Femoral Heads. Charges in the three and six months 2022 were related to Wright hip products. Refer to Note 6 to our Consolidated Financial Statements for further information.

Amortization of Intangible Assets

Amortization of intangible assets was $161 and $160 in the three months and $322 and $310 in the six months 2023 and 2022. Refer to Note 7 to our Consolidated Financial Statements for further information.

Operating Income

Operating income was $965 and $772 in the three months 2023 and 2022. Operating income as a percentage of net sales in the three months 2023 increased to 19.3% from 17.2% in 2022. Refer to the comments above for discussion of the primary drivers of the change.

Operating income was $1,700 and $1,219 in the six months 2023 and 2022. Operating income as a percentage of net sales in the six months 2023 increased to 17.4% from 13.9% in 2022. Refer to the comments above for discussion of the primary drivers of the change.

MedSurg and Neurotechnology operating income as a percentage of net sales increased to 27.3% in the three months 2023 from 24.7% in 2022. Orthopaedics and Spine operating

Dollar amounts are in millions except per share amounts or as otherwise specified. 12

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

income as a percentage of net sales decreased to 28.1% in the three months 2023 from 29.8% in 2022. The key components of the change were:

	Operating Income Percent Net Sales
	MedSurg and Neurotechnology		Orthopaedics and Spine
Three Months 2022	24.7	%	29.8	%
Sales pricing	100 bps		(50) bps
Volume	430 bps		510 bps
Manufacturing and supply chain costs	70 bps		(170) bps
Research, development and engineering expenses	30 bps		10 bps
Selling, general and administrative expenses	(370) bps		(470) bps
Three Months 2023	27.3	%	28.1	%

The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the three months was primarily impacted by higher unit volumes partially offset by higher selling, general and administrative expenses due to disciplined increases in spend and investments to support our growth.

The decrease in Orthopaedics and Spine operating income as a percentage of net sales for the three months was primarily impacted by higher selling, general and administrative expenses due to disciplined increases in spend and investments to support our growth and higher manufacturing and supply chain costs primarily due to supply chain inefficiencies partially offset by higher unit volumes.

MedSurg and Neurotechnology operating income as a percentage of net sales increased to 25.4% in the six months 2023 from 25.3% in 2022. Orthopaedics and Spine operating income as a percentage of net sales was 28.5% in the six months 2023 and remained flat with 2022. The key components of the change were:

	Operating Income Percent Net Sales
	MedSurg and Neurotechnology		Orthopaedics and Spine
Six Months 2022	25.3	%	28.5	%
Sales pricing	120 bps		(50) bps
Volume	420 bps		610 bps
Manufacturing and supply chain costs	(150) bps		(100) bps
Research, development and engineering expenses	0 bps		10 bps
Selling, general and administrative expenses	(380) bps		(470) bps
Six Months 2023	25.4	%	28.5	%

The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the six months was primarily impacted by higher unit volumes and higher prices partially offset by higher selling, general and administrative expenses due to disciplined increases in spend and investments to support our growth and higher manufacturing and supply chain costs primarily due to the effects of inflation on the cost of raw materials.

Orthopaedics and Spine operating income as a percentage of net sales for the six months remained flat with 2022 as higher unit volumes were offset by higher selling, general and administrative expenses due to disciplined increases in spend and investments to support our growth, higher manufacturing and supply chain costs primarily due to supply chain inefficiencies and lower prices.

Other Income (Expense), Net

Other income (expense), net was ($66) and ($52) in the three months and ($122) and ($113) in the six months 2023 and 2022. The increase in net expense in the three months 2023 was primarily due to higher interest expense. The increase in net expense in the six months 2023 was primarily due to foreign currency fluctuations and higher interest expense, partially offset by interest income and favorable investment returns.

Income Taxes

Our effective tax rates were 17.9% and 15.7% in the three and six months 2023 and 8.9% and 11.5% in the three and six months 2022. The effective tax rates for the three and six months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. In addition, the effective tax rates for the three and six months 2022 reflect the reversal of deferred income tax on undistributed earnings of foreign subsidiaries as our revised capital plan determined that certain cash outside of the United States would no longer need to be repatriated during the period previously contemplated.

Net Earnings

Net earnings increased to $738 or $1.93 per diluted share in the three months 2023 from $656 or $1.72 per diluted share in 2022. Adjusted net earnings per diluted share(1) was $2.54 in three months 2023, an increase of 12.9% from 2022.

Net earnings increased to $1,330 or $3.47 per diluted share in the six months 2023 from $979 or $2.56 per diluted share in 2022. Adjusted net earnings per diluted share(1) was $4.68 in the six months 2023, an increase of 10.9% from 2022.

Non-GAAP Financial Measures

We supplement the reporting of our financial information determined under accounting principles generally accepted in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; percentage organic sales growth; adjusted gross profit; adjusted selling, general and administrative expenses; adjusted research, development and engineering expenses; adjusted operating income; adjusted other income (expense), net; adjusted income taxes; adjusted effective income tax rate; adjusted net earnings; and adjusted net earnings per diluted share (Diluted EPS). We believe these non-GAAP financial measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures for reviewing the operating results of reportable business segments and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures. To measure percentage sales growth in constant currency, we remove the impact of changes in foreign currency exchange rates that affect the comparability and trend of sales. Percentage sales growth in constant currency is calculated by translating current and prior year results at the same foreign currency exchange rate. To measure percentage organic sales growth, we remove the impact of changes in foreign currency exchange rates, acquisitions and divestitures, which affect the comparability and trend of sales. Percentage

Dollar amounts are in millions except per share amounts or as otherwise specified. 13

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

organic sales growth is calculated by translating current year and prior year results at the same foreign currency exchange rates excluding the impact of acquisitions and divestitures. To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect the comparability of operating results and the trend of earnings. The income tax effect of each adjustment was determined based on the tax effect of the jurisdiction in which the related pre-tax adjustment was recorded. These adjustments are irregular in timing and may not be indicative of our past and future performance. The following are examples of the types of adjustments that may be included in a period:

1.Acquisition and integration-related costs. Costs related to integrating recently acquired businesses (e.g., costs associated with the termination of sales relationships, employee retention and workforce reductions, manufacturing integration costs and other integration-related activities), changes in the fair value of contingent consideration, amortization of inventory stepped-up to fair value and specific costs (e.g., deal costs) related to the consummation of the acquisition process and legal entity rationalization.

2.Amortization of purchased intangible assets. Periodic amortization expense related to purchased intangible assets.

3.Structural optimization and other special charges. Costs associated with employee retention and workforce reductions, the closure or transfer of manufacturing and other facilities (e.g., site closure costs, contract termination costs and redundant employee costs during the work transfers), product line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs), certain long-lived and intangible asset write-offs and impairments and other charges.

4.Medical device regulations. Costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the new medical device reporting regulations and other requirements of the European Union.

5.Recall-related matters. Changes in our best estimate of the minimum of the range of probable loss to resolve the Rejuvenate, LFIT V40, Wright legacy hip products and other product recalls.

6.Regulatory and legal matters. Changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.

7.Tax matters. Impact of accounting for certain significant and discrete tax items.

Because non-GAAP financial measures are not standardized, it

may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, selling, general and administrative expenses, research, development and engineering expenses, operating income, other income (expense), net, income taxes, effective income tax rate, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of our operations when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures at the end of the discussion of Consolidated Results of Operations below. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

The weighted-average diluted shares outstanding used in the calculation of non-GAAP net earnings per diluted share are the same as those used in the calculation of reported net earnings per diluted share for the respective period.

Dollar amounts are in millions except per share amounts or as otherwise specified. 14

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2023	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	3,181		$	1,706		$	346		$	965		$	(66)		$	161	$	738		17.9	%	$	1.93
Reported percent net sales	63.7		%	34.1		%	6.9		%	19.3		%	(1.3)		%	nm		14.8		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			(2)			—			2			—			2		—			0.1		—
Amortization of purchased intangible assets	—			—			—			161			—			34		127			1.1		0.33
Structural optimization and other special charges (b)	9			(63)			—			72			—			17		55			0.7		0.14
Medical device regulations (c)	—			—			(27)			27			—			8		19			0.4		0.05
Recall-related matters (d)	—			—			—			3			—			1		2			—		0.01
Regulatory and legal matters (e)	—			14			—			(14)			—			(3)		(11)			(0.1)		(0.03)
Tax matters (f)	—			—			—			—			—			(46)		46			(4.9)		0.11
Adjusted	$	3,190		$	1,655		$	319		$	1,216		$	(66)		$	174	$	976		15.2	%	$	2.54
Adjusted percent net sales	63.9		%	33.1		%	6.4		%	24.3		%	(1.3)		%	nm		19.5		%

Three Months 2022	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	2,826		$	1,539		$	351		$	772		$	(52)		$	64	$	656		8.9	%	$	1.72
Reported percent net sales	62.9		%	34.3		%	7.8		%	17.2		%	(1.2)		%	nm		14.6		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	7			—			—			7			—			2		5			0.1		0.01
Other acquisition and integration-related (a)	—			(30)			—			30			—			7		23			0.4		0.06
Amortization of purchased intangible assets	—			—			—			160			—			36		124			2.0		0.33
Structural optimization and other special charges (b)	8			(54)			—			62			—			6		56			(0.4)		0.15
Medical device regulations (c)	2			(2)			(28)			32			—			6		26			0.2		0.07
Recall-related matters (d)	—			—			—			4			—			1		3			0.1		—
Regulatory and legal matters (e)	—			4			—			(4)			—			—		(4)			—		(0.02)
Tax matters (f)	—			—			—			—			(12)			17		(29)			2.6		(0.07)
Adjusted	$	2,843		$	1,457		$	323		$	1,063		$	(64)		$	139	$	860		13.9	%	$	2.25
Adjusted percent net sales	63.3		%	32.4		%	7.2		%	23.7		%	(1.4)		%	nm		19.1		%

(a)	Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ($0 in 2023, $6 in 2022), employee retention and workforce reductions ($0 in 2023, $14 in 2022), changes in the fair value of contingent consideration (($2) in 2023, ($9) in 2022), manufacturing integration costs ($0 in 2023, $8 in 2022) and other integration-related activities such as deal costs and costs associated with legal entity rationalization ($4 in 2023, $11 in 2022).
(b)	Charges represent the costs associated with employee retention and workforce reductions ($47 in 2023, $20 in 2022), the closure/transfer of manufacturing and other facilities, including site closure costs, contract termination costs and redundant employee costs during the work transfers ($12 in 2023, $29 in 2022), product line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs) ($6 in 2023, ($8) in 2022), certain long-lived and intangible asset write-offs and impairments ($2 in 2023, $12 in 2022) and other charges ($5 in 2023, $9 in 2022).
(c)	Charges represent the 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 new medical device regulations in the European Union.
(d)	Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain recall-related matters.
(e)	Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
(f)	Benefits and charges represent the accounting impact of certain significant and discrete tax items, including adjustments related to the transfer of certain intellectual properties between tax jurisdictions (charges of $47 in 2023 and $46 in 2022), certain tax audit settlements (benefit of $4 included in Income Taxes for 2023, $0 for 2022) and the reversal of deferred income tax on undistributed earnings of foreign subsidiaries ($0 for 2023, benefit of $71 for 2022).

Six Months 2023	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	6,197		$	3,487		$	685		$	1,700		$	(122)		$	248	$	1,330		15.7	%	$	3.47
Reported percent net sales	63.4		%	35.7		%	7.0		%	17.4		%	(1.2)		%	nm		13.6		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			(8)			—			8			—			3		5			0.1		0.01
Amortization of purchased intangible assets	—			—			—			322			—			68		254			1.4		0.66
Structural optimization and other special charges (b)	11			(103)			—			114			—			25		89			0.6		0.23
Medical device regulations (c)	—			—			(55)			55			—			13		42			0.3		0.11
Recall-related matters (d)	—			—			—			3			—			1		2			—		0.01
Regulatory and legal matters (e)	—			(20)			—			20			—			3		17			—		0.04
Tax matters (f)	—			—			—			—			(9)			(66)		57			(4.0)		0.15
Adjusted	$	6,208		$	3,356		$	630		$	2,222		$	(131)		$	295	$	1,796		14.1	%	$	4.68
Adjusted percent net sales	63.5		%	34.3		%	6.4		%	22.7		%	(1.3)		%	nm		18.4		%

Dollar amounts are in millions except per share amounts or as otherwise specified. 15

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

Six Months 2022	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	5,560		$	3,249		$	764		$	1,219		$	(113)		$	127	$	979		11.5	%	$	2.56
Reported percent net sales	63.4		%	37.1		%	8.7		%	13.9		%	(1.3)		%	nm		11.2		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	12			—			—			12			—			3		9			0.1		0.02
Other acquisition and integration-related (a)	—			(174)			—			174			—			46		128			2.0		0.33
Amortization of purchased intangible assets	—			—			—			310			—			71		239			2.6		0.63
Structural optimization and other special charges (b)	10			(82)			(79)			171			—			31		140			0.6		0.37
Medical device regulations (c)	2			(2)			(56)			60			—			10		50			0.2		0.13
Recall-related matters (d)	—			—			—			18			—			4		14			0.2		0.04
Regulatory and legal matters (e)	—			(33)			—			33			—			9		24			0.4		0.06
Tax matters (f)	—			—			—			—			(12)			(41)		29			(3.7)		0.08
Adjusted	$	5,584		$	2,958		$	629		$	1,997		$	(125)		$	260	$	1,612		13.9	%	$	4.22
Adjusted percent net sales	63.7		%	33.7		%	7.2		%	22.8		%	(1.4)		%	nm		18.4		%

(a)	Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ($0 in 2023, $14 in 2022), employee retention and workforce reductions ($0 in 2023, $18 in 2022), changes in the fair value of contingent consideration (($3) in 2023, ($25) in 2022), manufacturing integration costs ($2 in 2023, $17 in 2022), stock compensation payments upon a change in control ($0 in 2023, $132 in 2022) and other integration-related activities such as deal costs and costs associated with legal entity rationalization ($9 in 2023, $18 in 2022).
(b)	Charges represent the costs associated with employee retention and workforce reductions ($68 in 2023, $29 in 2022), the closure/transfer of manufacturing and other facilities, including site closure costs, contract termination costs and redundant employee costs during the work transfers ($24 in 2023, $46 in 2022), product line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs) ($9 in 2023, ($8) in 2022), certain long-lived and intangible asset write-offs and impairments ($3 in 2023, $92 in 2022) and other charges ($10 in 2023, $12 in 2022).
(c)	Charges represent the 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 new medical device regulations in the European Union.
(d)	Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain recall-related matters.
(e)	Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
(f)	Benefits and charges represent the accounting impact of certain significant and discrete tax items, including adjustments related to the transfer of certain intellectual properties between tax jurisdictions (charges of $94 in 2023 and $92 in 2022), certain tax audit settlements (benefit of $9 included in Other Income (Expense), Net for 2023 and benefit of $24 included in Income Taxes for 2023, $0 for 2022) and the reversal of deferred income tax on undistributed earnings of foreign subsidiaries ($0 for 2023, benefit of $71 for 2022).

FINANCIAL CONDITION AND LIQUIDITY

	Six Months
	2023		2022
Net cash provided by (used in):
Operating activities	$	1,133	$	732
Investing activities	(665)		(2,834)
Financing activities	(886)		240
Effect of exchange rate changes on cash and cash equivalents	(25)		(38)
Change in cash and cash equivalents	$	(443)	$	(1,900)

Operating Activities

Cash provided by operating activities was $1,133 and $732 in the six months 2023 and 2022. The increase was primarily due to net earnings and higher accounts receivable collections.

Investing Activities    

Cash used in investing activities was $665 and $2,834 in the six months 2023 and 2022. The six months 2023 included cash paid for the Cerus acquisition and the six months 2022 included cash paid for the Vocera acquisition. Refer to Note 7 to our Consolidated Financial Statements for further information.

Financing Activities

Cash (used in) provided by financing activities was ($886) and $240 in the six months 2023 and 2022. Cash used in 2023 was primarily due to dividend payments of $569 and repayments of $200 on the term loan used to fund the acquisition of Vocera. Cash provided by financing activities in 2022 was primarily due to the $1,500 term loan used to fund the acquisition of Vocera, partially offset by $250 of payments on the term loan, dividend payments of $525 and net repayments of $376 on short-term borrowings.

We did not repurchase any shares in the six months 2023 and 2022.

Liquidity

Cash, cash equivalents and marketable securities were $1,478 and $1,928 on June 30, 2023 and December 31, 2022. Current assets exceeded current liabilities by $3,567 and $3,972 on June 30, 2023 and December 31, 2022. We anticipate being able to support our short-term liquidity and operating needs from a variety of sources including cash from operations, commercial paper and existing credit lines.

We have raised funds in the capital markets and have accessed the credit markets in the past and may continue to do so from time-to-time. We continue to have strong investment-grade short-term and long-term debt ratings that we believe should enable us to refinance our debt as needed.

Our cash, cash equivalents and marketable securities held in locations outside the United States was approximately 35% on June 30, 2023 compared to 36% on December 31, 2022.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There were no changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for 2022, except as described in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023.

New Accounting Pronouncements Not Yet Adopted

Refer to Note 1 to our Consolidated Financial Statements for information.

Dollar amounts are in millions except per share amounts or as otherwise specified. 16

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

Guarantees and Other Off-Balance Sheet Arrangements

We do not have guarantees or other off-balance sheet financing arrangements, including variable interest entities, of a magnitude that we believe could have a material impact on our financial condition or liquidity.

OTHER MATTERS

Legal and Regulatory Matters

We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of our business, including proceedings related to product, labor, intellectual property and other matters. Refer to Note 6 to our Consolidated Financial Statements for further information.

FORWARD-LOOKING STATEMENTS

This report contains statements that are not historical facts and are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current projections about operations, industry conditions, financial condition and liquidity. Words that identify forward-looking statements include, without limitation, words such as "may," "could," "will," "should," "possible," "plan," "predict," "forecast," "potential," "anticipate," "estimate," "expect," "project," "intend," "believe," "may impact," "on track," "goal," "strategy" and words and terms of similar substance used in connection with any discussion of future operating or financial performance, an acquisition or our businesses. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Those statements are not guarantees and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results could differ materially and adversely from these forward-looking statements, historical experience or our present expectations. Some important factors that could cause our actual results to differ from our expectations in any forward-looking statements include the risks discussed in Item 1A. "Risk Factors" of our Annual Report on Form 10-K for 2022. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and accompanying notes to our Consolidated Financial Statements in our Annual Report on Form 10-K for 2022. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We consider our greatest potential area of market risk exposure to be exchange rate risk on our operating results. Quantitative and qualitative disclosures about exchange rate risk are included in Item 7A "Quantitative and Qualitative Disclosures About Market Risk" of our Annual Report on Form 10-K for 2022. There were no material changes from the information provided therein.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer (the Certifying Officers), evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended) on June 30, 2023. Based on that evaluation, the Certifying Officers concluded the Company's disclosure controls and procedures were effective as of June 30, 2023.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial reporting during the six months 2023 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1A. RISK FACTORS

We are not aware of any material changes to the risk factors included in Item 1A. "Risk Factors" in our Annual Report on Form 10-K for 2022.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We issued 5,146 shares of our common stock in the three months 2023 as performance incentive awards to employees. These shares are not registered under the Securities Act of 1933 based on the conclusion that the awards would not be events of sale within the meaning of Section 2(a)(3) of the Act.

In March 2015 we announced that our Board of Directors had authorized us to purchase up to $2,000 of our common stock. The manner, timing and amount of repurchases are determined by management based on an evaluation of market conditions, stock price, and other factors and are subject to regulatory considerations. Purchases are made from time-to-time in the open market, in privately negotiated transactions or otherwise.

In the six months 2023 we did not repurchase any shares of our common stock under our authorized repurchase program. The total dollar value of shares of our common stock that could be acquired under our authorized repurchase program was $1,033 as of June 30, 2023.

ITEM 5. OTHER INFORMATION

Certain of our officers or directors have made elections to participate in, and are participating in, our employee stock purchase plan and 401(k) plan and have made, and may from time to time make, elections to have shares withheld to cover withholding taxes due or pay the exercise price of stock options, restricted stock units and performance stock units, which may constitute non-Rule 10b5–1 trading arrangements (as defined in Item 408(c) of Regulation S-K).

Dollar amounts are in millions except per share amounts or as otherwise specified. 17

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

ITEM 6. EXHIBITS

10(i)	Form of grant notice and terms and conditions for restricted stock units granted in 2023 under the 2011 Long-Term Incentive Plan to non-employee directors.
10(ii)	Amendment No. 1, dated June 15, 2023, to Credit Agreement, dated as of October 26, 2021, by and among Stryker Corporation, the other borrowers party thereto, the lenders from time to time party thereto and Wells Fargo Bank, National Association, as administrative agent — Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K dated June 16, 2023 (Commission File No. 000-09165).
31(i)	Certification of Principal Executive Officer of Stryker Corporation pursuant to Rule 13a-14(a).
31(ii)	Certification of Principal Financial Officer of Stryker Corporation pursuant to Rule 13a-14(a).
32(i)*	Certification by Principal Executive Officer of Stryker Corporation pursuant to 18 U.S.C. Section 1350.
32(ii)*	Certification by Principal Financial Officer of Stryker Corporation pursuant to 18 U.S.C. Section 1350.
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)
	* Furnished with this Form 10-Q

18

STRYKER CORPORATION 2023 Second Quarter Form 10-Q

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		STRYKER CORPORATION
		(Registrant)
Date:	August 4, 2023	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair, Chief Executive Officer and President
Date:	August 4, 2023	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer

19

EX-10.1

Exhibit 10(i)

STRYKER CORPORATION

TERMS AND CONDITIONS

RELATING TO RESTRICTED STOCK UNITS GRANTED

PURSUANT TO THE 2011 LONG-TERM INCENTIVE PLAN, AS AMENDED AND RESTATED

NON-EMPLOYEE DIRECTORS

1. The Restricted Stock Units (“RSUs”) with respect to Common Stock of Stryker Corporation (the “Company”) granted to you during 2023 are subject to these Terms and Conditions Relating to Restricted Stock Units Granted Pursuant to the 2011 Long-Term Incentive Plan, as Amended and Restated (the “Terms and Conditions”) and all of the terms and conditions of the Stryker Corporation 2011 Long-Term Incentive Plan, as Amended and Restated (the “2011 Plan”), which is incorporated herein by reference. In the case of a conflict between these Terms and Conditions and the terms of the 2011 Plan, the provisions of the 2011 Plan will govern. Capitalized terms used but not defined herein have the meaning provided therefor in the 2011 Plan, and "Stock Plan Administrator" means UBS Financial Services Inc. (or any other independent service provider engaged by the Company to assist with the implementation, operation and administration of the 2011 Plan).

2. Your right to receive the Shares issuable pursuant to the RSUs shall be only as follows:

(a) If you continue to be a Director, you will receive the Shares underlying the RSUs that have become vested as soon as administratively possible following the vesting date as set forth in the award letter.

(b) If you cease to be a Director by reason of Disability (as such term is defined in the 2011 Plan) or death prior to the date that your RSUs become fully vested, you or your estate will become fully vested in your RSUs, and you, your legal representative or your estate will receive all of the underlying Shares as soon as administratively practicable following your termination by Disability or death.

(c) If you cease to be a Director by reason of Retirement (as such term is defined in the 2011 Plan) prior to the date that your RSUs become fully vested, you (or your estate in the event of your death after your termination by Retirement) will continue to vest in your RSUs in accordance with the vesting schedule as set forth in the award letter as if you had continued your service as a Director.

(d) If you cease to be a Director prior to the date that your RSUs become fully vested for any reason other than those provided in (b) or (c) above, you shall cease vesting in your RSUs effective as of your Termination Date, which shall be the last day of your active service as a Director.

(e) Notwithstanding the foregoing, the Company may, in its sole discretion, settle your RSUs in the form of: (i) a cash payment to the extent settlement in Shares (1) is prohibited under local law, (2) would require you or the

Page 1

Exhibit 10(i)

Company to obtain the approval of any governmental and/or regulatory body in your country of residence or (3) is administratively burdensome; or (ii) Shares, but require you to immediately sell such Shares (in which case, the Company shall have the authority to issue sales instructions in relation to such Shares on your behalf).

(f) You may elect to defer delivery of the Shares that are otherwise issuable upon the vesting date by completing a prescribed deferral election form and returning it to the Company according to the instructions on such deferral election form. The deferral election form will be distributed to you separately. If made, the deferral election shall be irrevocable. You generally shall receive your Shares at such time(s) specified in the deferral election form.

3. The number of Shares subject to the RSUs shall be subject to adjustment and the vesting dates hereof may be accelerated as follows:

(a) In the event that the Shares, as presently constituted, shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation (whether by reason of merger, consolidation, recapitalization, reclassification, split-up, combination of shares, or otherwise) or if the number of such Shares shall be increased through the payment of a stock dividend or a dividend on the Shares of rights or warrants to purchase securities of the Company shall be made, then there shall be substituted for or added to each Share theretofore subject to the RSUs the number and kind of shares of stock or other securities into which each outstanding Share shall be so changed, or for which each such Share shall be exchanged, or to which each such Share shall be entitled. The other terms of the RSUs shall also be appropriately amended as may be necessary to reflect the foregoing events. In the event there shall be any other change in the number or kind of the outstanding Shares, or of any stock or other securities into which such Shares shall have been exchanged, then if the Board of Directors shall, in its sole discretion, determine that such change equitably requires an adjustment in the RSUs, such adjustment shall be made in accordance with such determination.

(b) Fractional Shares resulting from any adjustment in the RSUs may be settled in cash or otherwise as the Board of Directors shall determine, in its sole discretion. Notice of any adjustment will be given to you and such adjustment (whether or not such notice is given) shall be effective and binding for all purposes hereof.

(c) The Board of Directors shall have the power to amend the RSUs to permit the immediate vesting of the RSUs (and to terminate any unvested RSUs) and the distribution of the underlying Shares prior to the effectiveness of (i) any disposition of substantially all of the assets of the Company, (ii) the shutdown, discontinuance of operations or dissolution of the Company, or (iii) the merger or consolidation of the Company with or into any other unrelated corporation.

4. If you are resident outside of the United States, you agree, as a condition of the grant of the RSUs, to repatriate all payments attributable to the Shares and/or cash acquired under the 2011 Plan (including, but not limited to, dividends, dividend equivalents and any

Page 2

Exhibit 10(i)

proceeds derived from the sale of the Shares acquired pursuant to the RSUs) required by and in accordance with local foreign exchange rules and regulations in your country of residence. In addition, you also agree to take any and all actions, and consent to any and all actions taken by the Company and its Subsidiaries, as may be required to allow the Company and its Subsidiaries to comply with local laws, rules and regulations in your country of residence. Finally, you agree to take any and all actions as may be required to comply with your personal legal and tax obligations under local laws, rules and regulations in your country of residence.

5. If you are resident in a country that is a member of the European Union, the grant of the RSUs and these Terms and Conditions are intended to comply with the age discrimination provisions of the EU Equal Treatment Framework Directive, as implemented into local law (the “Age Discrimination Rules”). To the extent that a court or tribunal of competent jurisdiction determines that any provision of these Terms and Conditions is invalid or unenforceable, in whole or in part, under the Age Discrimination Rules, the Company, in its sole discretion, shall have the power and authority to revise or strike such provision to the minimum extent necessary to make it valid and enforceable to the full extent permitted under local law.

6. Regardless of any action the Company takes with respect to any or all income tax (including U.S. federal, state and local taxes or non-U.S. taxes), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Company (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the RSUs, including the grant of the RSUs, the vesting of the RSUs, the subsequent sale of any Shares acquired pursuant to the RSUs and the receipt of any dividends or dividend equivalents and (ii) do not commit to structure the terms of the grant or any aspect of the RSUs to reduce or eliminate your liability for Tax-Related Items. Further, if you become subject to taxation in more than one country between the grant date and the date of any relevant taxable or tax withholding event, as applicable, you acknowledge that the Company may be required to withhold or account for Tax-Related Items in more than one country.

Prior to any taxable event (or such later date(s) as specified in a valid deferral election form), if your country of residence (and/or the country services as a director occur, if different) requires withholding of Tax-Related Items, the Company shall withhold a number of whole Shares that have an aggregate Fair Market Value that the Company, taking into account local requirements and administrative issues, determines in its sole discretion is appropriate to cover withholding for Tax-Related Items with respect to the Shares. The cash equivalent of the Shares withheld will be used to settle the obligation to withhold the Tax-Related Items. In cases where the Fair Market Value of the number of whole Shares withheld is greater than the amount required to be paid to the relevant government authorities with respect to withholding for Tax-Related Items, the Company shall make a cash payment to you equal to the difference as soon as administratively practicable. In the event that withholding in Shares is prohibited or problematic under applicable law or otherwise may trigger adverse consequences to the Company, the Company shall withhold the Tax-Related Items required to be withheld with respect to the Shares in cash from your director fees or other amounts payable to you. In the event the

Page 3

Exhibit 10(i)

withholding requirements are not satisfied through the withholding of Shares or through your director fees or other amounts payable to you by the Company, no Shares will be issued to you (or your estate) unless and until satisfactory arrangements have been made by you with respect to the payment of any Tax-Related Items that the Company determines, in its sole discretion, should be withheld or collected with respect to such RSUs. By accepting these RSUs, you expressly consent to the withholding of Shares and/or withholding from your director fees or other amounts payable to you as provided for hereunder. All other Tax-Related Items related to the RSUs and any Shares delivered in payment thereof are your sole responsibility.

7. The RSUs are intended to be exempt from the requirements of Code Section 409A. The 2011 Plan and these Terms and Conditions shall be administered and interpreted in a manner consistent with this intent. If the Company determines that these Terms and Conditions are subject to Code Section 409A and that it has failed to comply with the requirements of that Section, the Company may, at the Company’s sole discretion, and without your consent, amend these Terms and Conditions to cause them to comply with Code Section 409A or be exempt from Code Section 409A.

8. The RSUs shall be transferable only by will or the laws of descent and distribution. If you purport to make any transfer of the RSUs, except as aforesaid, the RSUs and all rights thereunder shall terminate immediately.

9. The RSUs shall not be vested in whole or in part, and the Company shall not be obligated to issue any Shares subject to the RSUs, if such issuance would, in the opinion of counsel for the Company, violate the Securities Act of 1933 or any other U.S. federal, state or non-U.S. statute having similar requirements as it may be in effect at the time. The RSUs are subject to the further requirement that, if at any time the Board of Directors shall determine in its discretion that the listing or qualification of the Shares subject to the RSUs under any securities exchange requirements or under any applicable law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of or in connection with the issuance of Shares pursuant to the RSUs, the RSUs may not be vested in whole or in part unless such listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board of Directors.

10. The grant of the RSUs shall not confer upon you any right to serve as a Director of the Company nor limit in any way the right of the Company to terminate your service as a Director at any time. You shall have no rights as a shareholder of the Company with respect to any Shares issuable upon the vesting of the RSUs until the date of issuance of such Shares.

11. You acknowledge and agree that the 2011 Plan is discretionary in nature and may be amended, cancelled, or terminated by the Company, in its sole discretion, at any time. The grant of the RSUs under the 2011 Plan is a one-time benefit and does not create any contractual or other right to receive a grant of RSUs or any other award under the 2011 Plan or other benefits in lieu thereof in the future. Future grants, if any, will be at the sole discretion of the Company, including, but not limited to, the form and timing of any grant, the number of Shares subject to the grant, and the vesting provisions. Any amendment, modification or termination of the 2011 Plan shall not constitute a change or impairment of the terms and conditions of your service as a Director of the Company.

Page 4

Exhibit 10(i)

12. These Terms and Conditions shall bind and inure to the benefit of the Company, its successors and assigns and you and your estate in the event of your death.

13. The Company is located at 2825 Airview Boulevard Kalamazoo, Michigan 49002, U.S.A. and grants RSUs under the 2011 Plan to employees and directors of the Company and Subsidiaries in its sole discretion. In conjunction with the Company’s grant of the RSUs under the 2011 Plan and its ongoing administration of such awards, the Company is providing the following information about its data collection, processing and transfer practices (“Personal Data Activities”). In accepting the grant of the RSUs, you expressly and explicitly consent to the Personal Data Activities as described herein.

(a) The Company collects, processes and uses your personal data, including your name, home address, email address, and telephone number, date of birth, social insurance number or other identification number, citizenship, any Shares or directorships held in the Company, and details of all RSUs or any other equity compensation awards granted, canceled, exercised, vested, or outstanding in your favor, which the Company receives from you. In granting the RSUs under the Plan, the Company will collect your personal data for purposes of allocating Shares and implementing, administering and managing the 2011 Plan. The Company’s legal basis for the collection, processing and usage of your personal data is your consent.

(b) The Company transfers your personal data to the Stock Plan Administrator. In the future, the Company may select a different Stock Plan Administrator and share your personal data with another company that serves in a similar manner. The Stock Plan Administrator will open an account for you, if an account is not already in place, to receive and trade Shares acquired under the 2011 Plan. You will be asked to agree on separate terms and data processing practices with the Stock Plan Administrator, which is a condition to your ability to participate in the 2011 Plan.

(c) The Company and the Stock Plan Administrator are based in the United States. You should note that your country of residence may have enacted data privacy laws that are different from the United States. The Company’s legal basis for the transfer of your personal data to the United States is your consent.

(d) Your participation in the 2011 Plan and your grant of consent is purely voluntary. You may deny or withdraw your consent at any time. If you do not consent, or if you withdraw your consent, you may be unable to participate in the 2011 Plan. This would not affect your existing directorship or your annual cash retainer; instead, you merely may forfeit the opportunities associated with the 2011 Plan.

You may have a number of rights under the data privacy laws in your country of residence. For example, your rights may include the right to (i) request access or copies of personal data the Company processes, (ii) request rectification of incorrect data, (iii) request deletion of data, (iv) place restrictions on processing, (v) lodge complaints with competent authorities in your country or residence, and/or (vi) request a list with the names and addresses of any potential recipients of your personal data. To receive clarification

Page 5

Exhibit 10(i)

regarding your rights or to exercise your rights, you should contact the Company’s Human Resources Department.

14. The grant of the RSUs is not intended to be a public offering of securities in your country of residence. The Company has not submitted any registration statement, prospectus or other filing(s) with the local securities authorities (unless otherwise required under local law). No employee of the Company is permitted to advise you on whether you should acquire Shares under the 2011 Plan or provide you with any legal, tax or financial advice with respect to the grant of the RSUs. The acquisition of Shares involves certain risks, and you should carefully consider all risk factors and tax considerations relevant to the acquisition of Shares under the 2011 Plan or the disposition of them. Further, you should carefully review all of the materials related to the RSUs and the 2011 Plan, and you should consult with your personal legal, tax and financial advisors for professional advice in relation to your personal circumstances.

15. All questions concerning the construction, validity and interpretation of the RSUs and the 2011 Plan shall be governed and construed according to the laws of the state of Michigan, without regard to the application of the conflicts of laws provisions thereof. Any disputes regarding the RSUs or the 2011 Plan shall be brought only in the state or federal courts of the state of Michigan.

16. The Company may, in its sole discretion, decide to deliver any documents related to the RSUs or other awards granted to you under the 2011 Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the 2011 Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

17. The invalidity or unenforceability of any provision of the 2011 Plan or these Terms and Conditions shall not affect the validity or enforceability of any other provision of the 2011 Plan or these Terms and Conditions.

18. If you are resident outside of the United States, you acknowledge and agree that it is your express intent that these Terms and Conditions, the 2011 Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the RSUs be drawn up in English. If you have received these Terms and Conditions, the 2011 Plan or any other documents related to the RSUs translated into a language other than English and the meaning of the translated version is different than the English version, the English version will control.

19. Notwithstanding any provisions of these Terms and Conditions to the contrary, the RSUs shall be subject to any special terms and conditions for your country of residence set forth in an addendum to these Terms and Conditions (an “Addendum”). Further, if you transfer your residence to another country reflected in an Addendum to these Terms and Conditions at the time of transfer, the special terms and conditions for such country will apply to you to the extent the Company determines, in its sole discretion, that the application of such special terms and conditions is necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the award and the 2011 Plan (or the Company may establish alternative

Page 6

Exhibit 10(i)

terms and conditions as may be necessary or advisable to accommodate your transfer). In all circumstances, any applicable Addendum shall constitute part of these Terms and Conditions.

20. The Company reserves the right to impose other requirements on the RSUs, any Shares acquired pursuant to the RSUs, and your participation in the 2011 Plan to the extent the Company determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the award and the 2011 Plan. Such requirements may include (but are not limited to) requiring you to sign any agreements or undertakings that may be necessary to accomplish the foregoing.

Page 7

Exhibit 10(i)

STRYKER CORPORATION

ADDENDUM TO

TERMS AND CONDITIONS

RELATING TO RESTRICTED STOCK UNITS GRANTED

PURSUANT TO THE 2011 PLAN, AS AMENDED AND RESTATED

In addition to the terms of the 2011 Plan and the Terms and Conditions, the RSUs are subject to the following additional terms and conditions (the “Addendum”). The information reflected in this Addendum is based on the securities, exchange control and other laws in effect in the respective countries as of December 2022. All capitalized terms as contained in this Addendum shall have the same meaning as set forth in the 2011 Plan and the Terms and Conditions. Pursuant to Section 20 of the Terms and Conditions, if you transfer your residence and/or place of service to another country reflected in an Addendum at the time of transfer, the special terms and conditions for such country will apply to you to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable in order to comply with local law, rules and regulations, or to facilitate the operation and administration of the award and the 2011 Plan (or the Company may establish alternative terms and conditions as may be necessary or advisable to accommodate your transfer).

Data Privacy Information: European Union (“EU”) / European Economic Area (“EEA”) / Switzerland and the United Kingdom*

*The below information is for data privacy purposes only and you should determine whether any other special terms and conditions apply to your awards in these jurisdictions.

1. Data Privacy. If you reside and/or you perform services in the EU / EEA, Switzerland or the United Kingdom the following provision replaces Section 14 of the Terms and Conditions:

The Company is located at 2825 Airview Boulevard Kalamazoo, Michigan 49002, U.S.A. and grants RSUs under the 2011 Plan to employees and directors of the Company and its Subsidiaries in its sole discretion. You should review the following information about the Company’s data processing practices.

(a) Data Collection, Processing and Usage. Pursuant to applicable data protection laws, you are hereby notified that the Company collects, processes and uses certain personally-identifiable information about you for the legitimate interest of implementing, administering and managing the 2011 Plan and generally administering equity awards; specifically, including your name, home address, email address and telephone number, date of birth, social insurance number or other identification number, citizenship, any Shares or directorships held in the Company, and details of all options or any other awards granted, canceled, exercised, vested, or outstanding in your favor, which the Company receives from you. In granting the RSUs under the 2011 Plan, the Company will collect your personal data for purposes of allocating Shares and implementing, administering and managing the 2011 Plan. The Company’s collection, processing, use and transfer of your personal data is

Page 8

Exhibit 10(i)

necessary for the performance of the Company’s contractual obligations under the Plan and pursuant to the Company’s legitimate interest of managing and generally administering equity awards. Your refusal to provide personal data would make it impossible for the Company to perform its contractual obligations and may affect your ability to participate in the 2011 Plan. As such, by participating in the 2011 Plan, you voluntarily acknowledge the collection, processing and use of your personal data as described herein.

(b) Stock Plan Administration Service Provider. The Company transfers participant data to the Stock Plan Administrator. In the future, the Company may select a different Stock Plan Administrator and share your data with another company that serves in a similar manner. The Stock Plan Administrator will open an account for you, if an account is not already in place, to receive and trade Shares acquired under the 2011 Plan. You will be asked to agree on separate terms and data processing practices with the Stock Plan Administrator, which is a condition to your ability to participate in the 2011 Plan.

(c) International Data Transfers. The Company and the Stock Plan Administrator are based in the United States. The Company can only meet its contractual obligations to you if your personal data is transferred to the United States. The Company’s legal basis for the transfer of your personal data to the United States is to satisfy its contractual obligations to you and/or its use of the standard data protection clauses adopted by the EU Commission.

(d) Data Retention. The Company will use your personal data only as long as is necessary to implement, administer and manage your participation in the 2011 Plan or as required to comply with legal or regulatory obligations, including under tax and security laws. When the Company no longer needs your personal data, the Company will remove it from its systems. If the Company keeps your data longer, it would be to satisfy legal or regulatory obligations and the Company’s legal basis would be for compliance with relevant laws or regulations.

(e) Data Subject Rights.You may have a number of rights under data privacy laws in your country of residence. For example, your rights may include the right to (i) request access or copies of personal data the Company processes, (ii) request rectification of incorrect data, (iii) request deletion of data, (iv) place restrictions on processing, (v) lodge complaints with competent authorities in your country of residence, and/or (vi) request a list with the names and addresses of any potential recipients of the Participant’s personal data. To receive clarification regarding your rights or to exercise your rights, you should contact the Company’s Human Resources Department.

ARGENTINA

1. Securities Law Information. Neither the grant of the RSUs, nor the issuance of Shares subject to the RSUs, constitutes a public offering in Argentina. The grant of RSUs pursuant to the 2011 Plan is a private placement and not subject to any filing or disclosure requirements in Argentina.

Page 9

Exhibit 10(i)

AUSTRALIA

1. RSUs Conditioned on Satisfaction of Regulatory Obligations. If you are (a) a director of a Subsidiary incorporated in Australia, or (b) a person who is a management-level executive of a Subsidiary incorporated in Australia and who also is a director of a Subsidiary incorporated outside of the Australia, the grant of the RSUs is conditioned upon satisfaction of the shareholder approval provisions of section 200B of the Corporations Act 2001 (Cth) in Australia.

2. Securities Law Information. This grant of RSUs is being made under Division 1A Part 7.12 of the Australian Corporations Act 2001 (Cth). If Shares acquired under the Plan are offered for sale to a person or entity resident in Australia, your offer may be subject to disclosure requirements under Australian law. You should obtain legal advice on any disclosure obligations prior to making any such offer.

AUSTRIA

No country specific provisions.

BELGIUM

No country specific provisions.

BRAZIL

1. Compliance with Law. By accepting the RSUs, you acknowledge and agree to comply with applicable Brazilian laws and to pay any and all applicable taxes associated with the vesting of the RSUs, the issuance and/or sale of Shares acquired under the 2011 Plan and the receipt of any dividends.

CANADA

1. Settlement in Shares. Notwithstanding anything to the contrary in the Terms and Conditions or the 2011 Plan, the RSUs shall be settled only in Shares (and may not be settled in cash).

BY SIGNING BELOW, YOU ACKNOWLEDGE, UNDERSTAND AND AGREE TO THE PROVISIONS OF THE 2011 PLAN, THE TERMS AND CONDITIONS AND THIS ADDENDUM.

PLEASE SIGN AND RETURN THIS ADDENDUM VIA EMAIL NO LATER THAN APRIL 28, 2023 TO STOCKPLANADMINISTRATION@STRYKER.COM.

Page 10

Exhibit 10(i)

Signature	Name (Printed)
Date

CHILE

1. Private Placement. The following provision shall replace Section 15 of the Terms and Conditions:

The grant of the RSUs hereunder is not intended to be a public offering of securities in Chile but instead is intended to be a private placement.

(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.

COLOMBIA

1. Securities Law Information. The Shares subject to the RSUs are not and will not be registered in the Colombian registry of publicly traded securities (Registro Nacional de Valores y Emisores) and therefore the Shares may not be offered to the public in Colombia.

Page 11

Exhibit 10(i)

Nothing in this document should be construed as the making of a public offer of securities in Colombia.

COSTA RICA

No country specific provisions.

DENMARK

No country specific provisions.

FINLAND

1. Withholding of Tax-Related Items. Notwithstanding anything in Section 6 of the Terms and Conditions to the contrary, if you are a local national of Finland, any Tax-Related Items shall be withheld only in cash or other amounts payable to you in cash or such other withholding methods as may be permitted under the 2011 Plan and allowed under local law.

FRANCE

1. Use of English Language. By accepting your RSUs, you acknowledge and agree that it is your wish that the Terms and Conditions, this Addendum, as well as all other documents, notices and legal proceedings entered into, given or instituted pursuant to your RSUs, either directly or indirectly, be drawn up in English.

Langue anglaise. En acceptant l'allocation de vos RSUs, vous reconnaissez et acceptez avoir souhaité que le Termes et Conditions, le présent avenant, ainsi que tous autres documents exécutés, avis donnés et procédures judiciaires intentées, relatifs, directement ou indirectement, à l'allocation de vos RSUs, soient rédigés en anglais.

BY SIGNING BELOW, YOU ACKNOWLEDGE, UNDERSTAND AND AGREE TO THE PROVISIONS OF THE 2011 PLAN, THE TERMS AND CONDITIONS AND THIS ADDENDUM.

PLEASE SIGN AND RETURN THIS ADDENDUM VIA EMAIL NO LATER THAN APRIL 28, 2023 TO STOCKPLANADMINISTRATION@STRYKER.COM.

Signature	Name (Printed)
Date

GERMANY

No country specific provisions.

Page 12

Exhibit 10(i)

HONG KONG

1. Important Notice. Warning: The contents of the Terms and Conditions, this Addendum, the 2011 Plan, and all other materials pertaining to the RSUs and/or the 2011 Plan have not been reviewed by any regulatory authority in Hong Kong. You are hereby advised to exercise caution in relation to the offer thereunder. If you have any doubts about any of the contents of the aforesaid materials, you should obtain independent professional advice.

2. Lapse of Restrictions. If, for any reason, Shares are issued to you within six (6) months of the grant date, you agree that you will not sell or otherwise dispose of any such Shares prior to the six-month anniversary of the grant date.

3. Settlement in Shares. Notwithstanding anything to the contrary in this Addendum, the Terms and Conditions or the 2011 Plan, the RSUs shall be settled only in Shares (and may not be settled in cash).

4. Nature of the Plan. The Company specifically intends that the 2011 Plan will not be treated as an occupational retirement scheme for purposes of the Occupational Retirement Schemes Ordinance (“ORSO”). To the extent any court, tribunal or legal/regulatory body in Hong Kong determines that the 2011 Plan constitutes an occupational retirement scheme for the purposes of ORSO, the grant of the RSUs shall be null and void.

INDIA

1. Repatriation Requirements. You expressly agree to repatriate all sale proceeds and dividends attributable to Shares acquired under the 2011 Plan in accordance with local foreign exchange rules and regulations. Neither the Company, the local company or any of the Company’s Subsidiaries shall be liable for any fines or penalties resulting from your failure to comply with applicable laws, rules or regulations.

IRELAND

No country specific provisions.

ITALY

No country specific provisions.

JAPAN

No country specific provisions.

MEXICO

1. Securities Law Information. You expressly recognize and acknowledge that the Company's grant of RSUs and the underlying Shares under the Plan have not been registered with the National Register of Securities maintained by the Mexican National

Page 13

Exhibit 10(i)

Banking and Securities Commission and cannot be offered or sold publicly in Mexico.In addition, the 2011 Plan, the Terms and Conditions and any other document relating to the RSUs may not be publicly distributed in Mexico. These materials are addressed to you only because of your existing relationship with the Company and these materials should not be reproduced or copied in any form. The offer contained in these materials does not constitute a public offering of securities but rather constitutes a private placement of securities addressed specifically to individuals who are performing services for the Company in Mexico made in accordance with the provisions of the Mexican Securities Market Law, and any rights under such offering shall not be assigned or transferred.

NETHERLANDS

1. Waiver of Termination Rights. As a condition to the grant of the RSUs, you hereby waive any and all rights to compensation or damages as a result of the termination of your relationship with the Company and the local company for any reason whatsoever, insofar as those rights result or may result from (a) the loss or diminution in value of such rights or entitlements under the 2011 Plan, or (b) you ceasing to have rights under or ceasing to be entitled to any awards under the 2011 Plan as a result of such termination.

2. Tax Deferral Upon Retirement. Unless you otherwise elect by contacting Stryker no later than April 28, 2023, you hereby agree that upon Retirement eligibility, the RSUs shall not become taxable until the date of settlement when Shares are actually delivered or otherwise made available.

NEW ZEALAND

1. WARNING. You are being offered RSUs to be settled in the form of shares of Stryker Corporation common stock. If the Company runs into financial difficulties and is wound up, you may lose some or all your investment. New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer because it is an offer made under the Employee Share Scheme exemption. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment. You should ask questions, read all documents carefully, and seek independent financial advice before accepting the offer. The Company’s Shares are currently traded on the New York Stock Exchange under the ticker symbol “SYK” and Shares acquired under the 2011 Plan may be sold through this exchange. You may end up selling the Shares at a price that is lower than the value of the Shares when you acquired them. The price will depend on the demand for the Company's Shares. The Company’s most recent annual report (which includes the Company’s financial statements) is available at [https://investors.stryker.com/financial-information/sec-filings/default.aspx].. You are entitled to receive a copy of this report, free of charge, upon written request to the Company at STOCKPLANADMINISTRATION@STRYKER.COM.

POLAND

No country specific provisions.

Page 14

Exhibit 10(i)

PUERTO RICO

No country specific provisions.

ROMANIA

No country specific provisions.

RUSSIA

1. IMPORTANT NOTIFICATION. You may be required to repatriate certain cash amounts received with respect to the RSUs to Russia as soon as you intend to use those cash amounts for any purpose, including reinvestment. If the repatriation requirement applies, such funds must initially be credited to you through a foreign currency account at an authorized bank in Russia. After the funds are initially received in Russia, they may be further remitted to foreign banks in accordance with Russian exchange control laws. Under the Directive N 5371-U of the Russian Central Bank (the “CBR”), the repatriationrequirementmaynotapplyincertaincaseswithrespecttocashamountsreceivedinanaccount that is considered by the CBR to be a foreign brokerage account. Statutory exceptions to the repatriation requirement also may apply. You should contact your personal advisor to ensure compliance with the applicable exchange control requirements prior to vesting in the RSUs and/or selling the Shares acquired pursuant to the RSUs.

2. SECURITIES LAW NOTIFICATION. The grant of RSUs and the issuance of Shares upon vesting are not intended to be an offering of securities with the Russian Federation, and the Terms and Conditions, the 2011 Plan, this Addendum and all other materials that you receive in connection with the grant of RSUs and your participation in the 2011 Plan (collectively, “Grant Materials”) do not constitute advertising or a solicitation within the Russian Federation. In connection with your grant of RSUs, the Company has not submitted any registration statement, prospectus or other filing with the Russian Federal Bank or any other governmental or regulatory body within the Russian Federation, and the Grant Materials expressly may not be used, directly or indirectly, for the purpose of making a securities offering or public circulation of Shares within the Russian Federation. Any Shares acquired under the 2011 Plan will be maintained on your behalf outside of Russia. Moreover, you will not be permitted to sell or otherwise alienate any Shares directly to other Russian legal entities or individuals.

3. EXCHANGE CONTROL NOTIFICATION. You are solely responsible for complying with applicable Russian exchange control regulations. Since the exchange control regulations change frequently and without notice, you should consult your legal advisor prior to the acquisition or sale of Shares under the 2011 Plan to ensure compliance with current regulations. As noted, it is your personal responsibility to comply with Russian exchange control laws, and neither the Company nor any Subsidiary will be liable for any fines or penalties resulting from failure to comply with applicable laws.

4. ANTI-CORRUPTION NOTIFICATION. Anti-corruption laws prohibit certain public servants, their spouses and their dependent children from owning any foreign source financial instruments (e.g., shares of foreign companies such as the Company). Accordingly,

Page 15

Exhibit 10(i)

you should inform the Company if you are covered by these laws as this relates to your acquisition of Shares under the 2011 Plan.

SINGAPORE

1. Qualifying Person Exemption. The following provision shall replace Section 15 of the Terms and Conditions:

The grant of the RSUs under the 2011 Plan is being made pursuant to the “Qualifying Person” exemption” under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (“SFA”). The 2011 Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore. You should note that, as a result, the RSUs are subject to section 257 of the SFA and you will not be able to make (a) any subsequent sale of the Shares in Singapore or (ii) any offer of such subsequent sale of the Shares subject to the RSUs in Singapore, unless such sale or offer is made pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the SFA (Chapter 289, 2006 Ed.).

2. Director Reporting Notification. If you are a director, associate director or shadow director of a Singapore company, you are subject to certain notification requirements under the Singapore Companies Act. Among these requirements is an obligation to notify the Singapore company in writing when you receive an interest (e.g., RSUs or Shares) in the Company or any related company. In addition, you must notify the Singapore company when you sell Shares (including when you sell Shares acquired at vesting of the Restricted Stock Units). These notifications must be made within two business days of acquiring or disposing of any interest in the Company or any related company. In addition, a notification must be made of Participant’s interests in the Company or any related company within two business days of becoming a director.

SOUTH AFRICA

1. Exchange Control Obligations. You are solely responsible for complying with applicable exchange control regulations and rulings (the “Exchange Control Regulations”) in South Africa. As the Exchange Control Regulations change frequently and without notice, you should consult your legal advisor prior to the acquisition or sale of Shares under the 2011 Plan to ensure compliance with current Exchange Control Regulations. Neither the Company nor any of its Subsidiaries will be liable for any fines or penalties resulting from your failure to comply with applicable laws.

2. Securities Law Information and Deemed Acceptance of RSUs. Neither the RSUs nor the underlying Shares shall be publicly offered or listed on any stock exchange in South Africa. The offer is intended to be private pursuant to Section 96 of the Companies Act and is not subject to the supervision of any South African governmental authority. Pursuant to Section 96 of the Companies Act, the RSU offer must be finalized on or before the 60th day following the grant date. If you do not want to accept the RSUs, you are required to decline the RSUs no later than the 60th day following the grant date. If you do not reject the RSUs on or before the 60th day following the grant date, you will be deemed to accept the RSUs.

SOUTH KOREA

Page 16

Exhibit 10(i)

No country specific provisions.

SPAIN

No country specific provisions.

SWITZERLAND

1. Securities Law Information. Neither this document nor any other materials relating to the RSUs (i) constitutes a prospectus according to articles 35 et seq. of the Swiss Federal Act on Financial Services (“FinSA”) (ii) may be publicly distributed or otherwise made publicly available in Switzerland to any person other than an employee or a director of the Company or (iii) has been or will be filed with, approved or supervised by any Swiss reviewing body according to article 51 FinSA or any Swiss regulatory authority, including the Swiss Financial Market Supervisory Authority ("FINMA").

TAIWAN

No country specific provisions.

THAILAND

No country specific provisions.

TURKEY

1. Securities Law Information. Under Turkish law, you are not permitted to sell any Shares acquired under the 2011 Plan within Turkey. The Shares are currently traded on the New York Stock Exchange, which is located outside of Turkey, under the ticker symbol “SYK” and the Shares may be sold through this exchange.

2. Financial Intermediary Obligation. You acknowledge that any activity related to investments in foreign securities (e.g., the sale of Shares) should be conducted through a bank or financial intermediary institution licensed by the Turkey Capital Markets Board and should be reported to the Turkish Capital Markets Board. You solely are responsible for complying with this requirement and should consult with a personal legal advisor for further information regarding any obligations in this respect.

UNITED ARAB EMIRATES

No country specific provisions.

UNITED KINGDOM

1. Income Tax and Social Insurance Contribution Withholding. The following provision shall supplement Section 6 of the Terms and Conditions:

Page 17

Exhibit 10(i)

Without limitation to Section 6 of the Terms and Conditions, you agree that you are liable for all Tax-Related Items and hereby covenant to pay all such Tax-Related Items, as and when requested by the Company, the local company or by Her Majesty’s Revenue and Customs (“HMRC”) (or any other tax authority or any other relevant authority). You also agree to indemnify and keep indemnified the Company and/or the local company against any Tax-Related Items that they are required to pay or withhold or have paid or will pay to HMRC on your behalf (or any other tax authority or any other relevant authority).

2. Exclusion of Claim. You acknowledge and agree that you will have no entitlement to compensation or damages in consequence of the termination of your service with the Company and the local company for any reason whatsoever and whether or not in breach of contract, insofar as any purported claim to such entitlement arises or may arise from your ceasing to have rights under or to be entitled to vest in the RSUs as a result of such termination of service (whether the termination is in breach of contract or otherwise), or from the loss or diminution in value of the RSUs. Upon the grant of the RSUs, you shall be deemed irrevocably to have waived any such entitlement.

Page 18

EX-31.1

Exhibit 31(i)

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Kevin A. Lobo, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 of Stryker Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair, Chief Executive Officer and President

EX-31.2

Exhibit 31(ii)

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Glenn S. Boehnlein, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 of Stryker Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 4, 2023	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer

EX-32.1

Exhibit 32(i)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Stryker Corporation (the "Company") for the quarter ended June 30, 2023 (the "Report"), I, Kevin A. Lobo, Chair, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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:	August 4, 2023	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair, Chief Executive Officer and President

EX-32.2

Exhibit 32(ii)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Stryker Corporation (the "Company") for the quarter ended June 30, 2023 (the "Report"), I, Glenn S. Boehnlein, Vice President, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(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:	August 4, 2023	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2023 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-13149
Entity Registrant Name	STRYKER CORP
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-1239739
Entity Address, Address Line One	2825 Airview Boulevard
Entity Address, City or Town	Kalamazoo,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49002
City Area Code	(269)
Local Phone Number	385-2600
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	379,778,279
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000310764
Current Fiscal Year End Date	--12-31
Common Stock
Document Information [Line Items]
Title of each class	Common Stock, $.10 Par Value
Trading Symbol	SYK
Security Exchange Name	NYSE
Senior Unsecured Notes 1.125% due 2021
Document Information [Line Items]
Title of each class	1.125% Notes due 2023
Trading Symbol	SYK23
Security Exchange Name	NYSE
Senior Unsecured Notes, 0.250% Due 2024
Document Information [Line Items]
Title of each class	0.250% Notes due 2024
Trading Symbol	SYK24A
Security Exchange Name	NYSE
Senior Unsecured Notes 2.125% due 2027
Document Information [Line Items]
Title of each class	2.125% Notes due 2027
Trading Symbol	SYK27
Security Exchange Name	NYSE
Senior Unsecured Notes, 0.750% Due 2029
Document Information [Line Items]
Title of each class	0.750% Notes due 2029
Trading Symbol	SYK29
Security Exchange Name	NYSE
Senior Unsecured Notes 2.625% due 2030
Document Information [Line Items]
Title of each class	2.625% Notes due 2030
Trading Symbol	SYK30
Security Exchange Name	NYSE
Senior Unsecured Notes, 1.000% Due 2031
Document Information [Line Items]
Title of each class	1.000% Notes due 2031
Trading Symbol	SYK31
Security Exchange Name	NYSE

XML

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 4,996	$ 4,493	$ 9,774	$ 8,768
Cost of sales	1,815	1,667	3,577	3,208
Gross profit	3,181	2,826	6,197	5,560
Research, development and engineering expenses	346	351	685	764
Selling, general and administrative expenses	1,706	1,539	3,487	3,249
Recall charges, net	3	4	3	18
Amortization of intangible assets	161	160	322	310
Total operating expenses	2,216	2,054	4,497	4,341
Operating income	965	772	1,700	1,219
Other income (expense), net	(66)	(52)	(122)	(113)
Earnings before income taxes	899	720	1,578	1,106
Income taxes	161	64	248	127
Net earnings	$ 738	$ 656	$ 1,330	$ 979
Net earnings per share of common stock:
Basic (in dollars per share)	$ 1.95	$ 1.73	$ 3.51	$ 2.59
Diluted (in dollars per share)	$ 1.93	$ 1.72	$ 3.47	$ 2.56
Weighted-average shares outstanding (in millions):
Basic (in shares)	379.7	378.3	379.4	378.0
Effect of dilutive employee stock compensation (in shares)	4.2	3.9	4.2	4.5
Diluted (in shares)	383.9	382.2	383.6	382.5
Cash dividends declared per share of common stock (in dollars per share)	$ 0.75	$ 0.695	$ 1.50	$ 1.39

XML

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)(Parenthetical) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Anti-dilutive shares excluded from calculation of dilutive employee stock options (in shares)	0	4,500,000	0	0

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 738	$ 656	$ 1,330	$ 979
Other comprehensive income (loss), net of tax:
Marketable securities	0	0	0	(1)
Pension plans	(1)	8	(3)	7
Unrealized gains (losses) on designated hedges	11	24	2	25
Financial statement translation	(35)	161	(108)	214
Total other comprehensive income (loss), net of tax	(25)	193	(109)	245
Comprehensive income	$ 713	$ 849	$ 1,221	$ 1,224

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 1,401	$ 1,844
Marketable securities	77	84
Accounts receivable, less allowance of $181 ($154 in 2022)	3,261	3,565
Inventories:
Materials and supplies	1,221	1,006
Work in process	391	348
Finished goods	2,981	2,641
Total inventories	4,593	3,995
Prepaid expenses and other current assets	819	787
Total current assets	10,151	10,275
Property, plant and equipment:
Land, buildings and improvements	1,646	1,739
Machinery and equipment	4,441	4,066
Total property, plant and equipment	6,087	5,805
Less allowance for depreciation	3,005	2,835
Property, plant and equipment, net	3,082	2,970
Goodwill	15,172	14,880
Other intangibles, net	4,917	4,885
Noncurrent deferred income tax assets	1,439	1,410
Other noncurrent assets	2,648	2,464
Total assets	37,409	36,884
Current liabilities
Accounts payable	1,326	1,413
Accrued compensation	929	1,149
Income taxes	298	292
Dividends payable	284	284
Accrued product liabilities	220	230
Accrued expenses and other liabilities	1,729	1,744
Current maturities of debt	1,798	1,191
Total current liabilities	6,584	6,303
Long-term debt, excluding current maturities	11,149	11,857
Income taxes	469	641
Other noncurrent liabilities	1,846	1,467
Total liabilities	20,048	20,268
Shareholders' equity
Common stock, $0.10 par value	38	38
Additional paid-in capital	2,127	2,034
Retained earnings	15,526	14,765
Accumulated other comprehensive loss	(330)	(221)
Total shareholders' equity	17,361	16,616
Total liabilities and shareholders' equity	$ 37,409	$ 36,884

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 181	$ 154
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2021		$ 38	$ 1,890	$ 13,480	$ (531)
Beginning balance (in shares) at Dec. 31, 2021		377.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock option and benefit plans (in shares)		0.8
Issuance of common stock under stock compensation and benefit plans		$ 0	(8)
Share-based compensation			107
Net earnings	$ 979			979
Cash dividends declared				(526)
Other comprehensive income (loss)	245				245
Ending balance at Jun. 30, 2022	15,674	$ 38	1,989	13,933	(286)
Ending balance (in shares) at Jun. 30, 2022		378.3
Beginning balance at Mar. 31, 2022		$ 38	1,947	13,540	(479)
Beginning balance (in shares) at Mar. 31, 2022		378.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock option and benefit plans (in shares)		0.1
Issuance of common stock under stock compensation and benefit plans		$ 0	6
Share-based compensation			36
Net earnings	656			656
Cash dividends declared				(263)
Other comprehensive income (loss)	193				193
Ending balance at Jun. 30, 2022	15,674	$ 38	1,989	13,933	(286)
Ending balance (in shares) at Jun. 30, 2022		378.3
Beginning balance at Dec. 31, 2022	16,616	$ 38	2,034	14,765	(221)
Beginning balance (in shares) at Dec. 31, 2022		378.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock option and benefit plans (in shares)		1.1
Issuance of common stock under stock compensation and benefit plans		$ 0	(20)
Share-based compensation			113
Net earnings	1,330			1,330
Cash dividends declared				(569)
Other comprehensive income (loss)	(109)				(109)
Ending balance at Jun. 30, 2023	17,361	$ 38	2,127	15,526	(330)
Ending balance (in shares) at Jun. 30, 2023		379.8
Beginning balance at Mar. 31, 2023		$ 38	2,090	15,072	(305)
Beginning balance (in shares) at Mar. 31, 2023		379.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under stock option and benefit plans (in shares)		0.2
Issuance of common stock under stock compensation and benefit plans		$ 0	(2)
Share-based compensation			39
Net earnings	738			738
Cash dividends declared				(284)
Other comprehensive income (loss)	(25)				(25)
Ending balance at Jun. 30, 2023	$ 17,361	$ 38	$ 2,127	$ 15,526	$ (330)
Ending balance (in shares) at Jun. 30, 2023		379.8

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Operating activities
Net earnings	$ 1,330	$ 979
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	194	185
Amortization of intangible assets	322	310
Asset impairments	3	0
Share-based compensation	113	107
Recall charges, net	3	18
Sale of inventory stepped-up to fair value at acquisition	0	12
Changes in operating assets and liabilities:
Accounts receivable	308	(159)
Inventories	(589)	(523)
Accounts payable	(97)	34
Accrued expenses and other liabilities	(159)	(257)
Recall-related payments	(23)	(19)
Income taxes	(169)	(132)
Other, net	(103)	177
Net cash provided by operating activities	1,133	732
Investing activities
Acquisitions, net of cash acquired	(390)	(2,563)
Purchases of marketable securities	(35)	(38)
Proceeds from sales of marketable securities	42	29
Purchases of property, plant and equipment	(282)	(262)
Net cash used in investing activities	(665)	(2,834)
Financing activities
Proceeds (payments) on short-term borrowings, net	(4)	(376)
Proceeds from issuance of long-term debt	0	1,500
Payments on long-term debt	(201)	(252)
Payments of dividends	(569)	(525)
Cash paid for taxes from withheld shares	(111)	(84)
Other financing, net	(1)	(23)
Net cash provided by (used in) financing activities	(886)	240
Effect of exchange rate changes on cash and cash equivalents	(25)	(38)
Change in cash and cash equivalents	(443)	(1,900)
Cash and cash equivalents at beginning of period	1,844	2,944
Cash and cash equivalents at end of period	$ 1,401	$ 1,044

XML

Basis Of Presentation

6 Months Ended

Jun. 30, 2023

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, 2023 and the results of operations for the three and six months 2023. 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 2022. Certain immaterial reclassifications have been made to prior year's segment operating income to conform with current year presentation in our Consolidated Financial Statements.

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.

XML

Revenue Recognition

6 Months Ended

Jun. 30, 2023

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 2022.

We disaggregate our net sales by business 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.

Beginning in the first quarter 2023 we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $87 and $77 for the three months 2023 and 2022 and $168 and $146 for the six months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months				Six Months
	2023		2022		2023		2022
MedSurg and Neurotechnology:
Instruments	$	630	$	563	$	1,205	$	1,091
Endoscopy	705		677		1,403		1,284
Medical	841		666		1,619		1,330
Neurovascular	311		306		595		607
Neuro Cranial	373		337		728		660
	$	2,860	$	2,549	$	5,550	$	4,972
Orthopaedics and Spine:
Knees	$	562	$	500	$	1,128	$	964
Hips	393		364		768		691
Trauma and Extremities	766		676		1,535		1,361
Spine	296		290		580		569
Other	119		114		213		211
	$	2,136	$	1,944	$	4,224	$	3,796
Total	$	4,996	$	4,493	$	9,774	$	8,768

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	512	$	118	$	451	$	112
Endoscopy	568		137		548		129
Medical	682		159		536		130
Neurovascular	123		188		113		193
Neuro Cranial	306		67		281		56
	$	2,191	$	669	$	1,929	$	620
Orthopaedics and Spine:
Knees	$	406	$	156	$	368	$	132
Hips	249		144		230		134
Trauma and Extremities	559		207		489		187
Spine	221		75		209		81
Other	85		34		86		28
	$	1,520	$	616	$	1,382	$	562
Total	$	3,711	$	1,285	$	3,311	$	1,182

Net Sales by Geography
	Six Months 2023				Six Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	962	$	243	$	865	$	226
Endoscopy	1,132		271		1,034		250
Medical	1,294		325		1,061		269
Neurovascular	241		354		223		384
Neuro Cranial	595		133		545		115
	$	4,224	$	1,326	$	3,728	$	1,244
Orthopaedics and Spine:
Knees	$	822	$	306	$	713	$	251
Hips	485		283		432		259
Trauma and Extremities	1,113		422		976		385
Spine	433		147		409		160
Other	146		67		158		53
	$	2,999	$	1,225	$	2,688	$	1,108
Total	$	7,223	$	2,551	$	6,416	$	2,352

Contract Assets and Liabilities

On June 30, 2023 and December 31, 2022 contract assets recorded in our Consolidated Balance Sheets were not significant.

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. This occurs primarily when payment is received upfront for certain multi-period extended service contracts. Our contract liabilities of $784 and $741 on June 30, 2023 and December 31, 2022 are classified within accrued expenses and other liabilities and other noncurrent liabilities within our Consolidated Balance Sheets based on the timing of when we expect to complete our performance obligations.

XML

Accumulated Other Comprehensive (Loss) Income (AOCI)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive (Loss) Income (AOCI)

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)

Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	29	$	43	$	(376)	$	(305)
OCI	(1)		1		24		(24)		—
Income taxes	—		(2)		(5)		(4)		(11)
Reclassifications to:
Cost of sales	—		—		(9)		—		(9)
Other (income) expense, net	1		(1)		(1)		(9)		(10)
Income taxes	—		1		2		2		5
Net OCI	—		(1)		11		(35)		(25)
Ending	$	(1)	$	28	$	54	$	(411)	$	(330)

XML

Derivative Instruments

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTSWe 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 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 2022.

Foreign Currency Hedges

June 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	809	$	1,630	$	3,885	$	6,324
Maximum term in years							3.4
Fair value:
Other current assets	$	30	$	—	$	24	$	54
Other noncurrent assets	2		79		—		81
Other current liabilities	(6)		—		(15)		(21)
Other noncurrent liabilities	—		(27)		—		(27)
Total fair value	$	26	$	52	$	9	$	87

December 2022	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	1,053	$	1,598	$	3,417	$	6,068
Maximum term in years							3.9
Fair value:
Other current assets	$	20	$	—	$	9	$	29
Other noncurrent assets	1		89		—		90
Other current liabilities	(6)		—		(79)		(85)
Other noncurrent liabilities	(1)		(16)		—		(17)
Total fair value	$	14	$	73	$	(70)	$	17

We had €1.5 billion at June 30, 2023 and December 31, 2022 in certain forward currency contracts designated as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. In addition to these derivative financial instruments designated as net investment hedges, we had €4.4 billion at June 30, 2023 and December 31, 2022 of senior unsecured notes designated 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.

The total after-tax gain (loss) recognized in OCI related to designated net investment hedges was ($101) in the six months 2023.

Net Currency Exchange Rate Gains (Losses)

Derivative		Three Months				Six Months
instrument:	Recorded in:	2023		2022		2023		2022
Cash Flow	Cost of sales	$	9	$	3	$	22	$	3
Net Investment	Other income (expense), net	9		11		17		22
Non-Designated	Other income (expense), net	5		2		9		3
	Total	$	23	$	16	$	48	$	28

Pretax gains (losses) on derivatives designated as cash flow hedges of $30 and net investment hedges of $34 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months of June 30, 2023. 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

Pretax gains of $5 recorded in AOCI related to other interest rate hedges closed in conjunction with debt issuances are expected to be reclassified to other income (expense), net in earnings within 12 months of June 30, 2023. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

XML

Fair Value Measurements

6 Months Ended

Jun. 30, 2023

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 2022.

In the third quarter 2022 we determined that certain commercial and regulatory milestones related to technology acquired in the purchase of Mobius Imaging and Cardan Robotics were no longer probable of being achieved and recorded a $110 reduction in the fair value of contingent consideration reflected in selling, general and administrative expenses.

In the second quarter 2023 we recorded $192 of contingent consideration related to the acquisition of Cerus Endovascular Limited (Cerus) described in Note 7.

There were no significant transfers into or out of any level of the fair value hierarchy in 2023.

Assets Measured at Fair Value	June		December
	2023		2022
Cash and cash equivalents	$	1,401	$	1,844
Trading marketable securities	192		166
Level 1 - Assets	$	1,593	$	2,010
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	36	$	42
Foreign government debt securities	—		1
United States agency debt securities	5		3
United States treasury debt securities	35		36
Certificates of deposit	1		2
Total available-for-sale marketable securities	$	77	$	84
Foreign currency exchange forward contracts	135		119
Level 2 - Assets	$	212	$	203
Total assets measured at fair value	$	1,805	$	2,213

Liabilities Measured at Fair Value	June		December
	2023		2022
Deferred compensation arrangements	$	192	$	166
Level 1 - Liabilities	$	192	$	166
Foreign currency exchange forward contracts	$	48	$	102
Level 2 - Liabilities	$	48	$	102
Contingent consideration:
Beginning	$	121	$	306
Additions	192		1
Change in estimate and foreign exchange	(3)		(137)
Settlements	(1)		(49)
Ending	$	309	$	121
Level 3 - Liabilities	$	309	$	121
Total liabilities measured at fair value	$	549	$	389

Fair Value of Available for Sale Securities by Maturity
	June		December
	2023		2022
Due in one year or less	$	42	$	53
Due after one year through three years	$	35	$	31

On June 30, 2023 and December 31, 2022 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest on cash and cash equivalents, short-term investments and marketable securities income was $11 and $20 in the three months and $25 and $35 in the six months 2023 and 2022, which was recorded in other income (expense), net.

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.

XML

Contingencies and Commitments

6 Months Ended

Jun. 30, 2023

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 certain 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.

In April 2022 the United States District Court for the District of Delaware issued a judgment following a jury verdict in favor of PureWick Corporation (PureWick) for its 2019 complaint seeking patent infringement damages related to our PrimaFit and PrimoFit products. Following a jury trial, the court awarded damages related to this complaint and we recorded charges of $28 in March 2022. Stryker plans to appeal the results of the trial. If ultimately successful, PureWick may seek to recover its legal fees. In June 2022 PureWick filed a motion to enhance the damages awarded, which the court denied in March 2023. In 2022 PureWick also filed a separate complaint seeking additional patent infringement damages related to our current PrimaFit products. A trial for this matter is currently set for December 2023.

We are currently investigating whether certain business activities in certain foreign countries violated provisions of the Foreign Corrupt Practices Act (FCPA) and have engaged outside counsel to conduct these investigations. We have been contacted by the United States Securities and Exchange Commission, United States Department of Justice and certain other regulatory authorities and are cooperating with these agencies. At this time we are unable to predict the outcome of the investigations or the potential impact, if any, on our financial statements.

Recall Matters

We have conducted voluntary recalls of certain products, including our Rejuvenate and ABG II Modular-Neck hip stems and certain lot-specific sizes and offsets of LFIT Anatomic CoCr V40 Femoral Heads. Additionally, we are responsible for certain product liability claims, primarily related to certain hip products sold by Wright Medical Group N.V. (Wright) prior to its 2014 divestiture of the OrthoRecon business.

We have incurred, and expect to incur in the future, costs associated with the defense and settlement of claims and lawsuits related to our recalls. Based on the information that has been received, we have recorded reserves of $194, representing our best estimate of probable loss related to recall matters globally. 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.

Leases	June			December
	2023			2022
Right-of-use assets	$	481		$	473
Lease liabilities, current	$	125		$	121
Lease liabilities, non-current	$	363		$	357
Other information:
Weighted-average remaining lease term (years)	5.7			5.5
Weighted-average discount rate	3.60		%	3.22		%

	Three Months				Six Months
	2023		2022		2023		2022
Operating lease cost	$	41	$	38	$	79	$	73

XML

Acquisitions

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. In the six months 2023 and 2022 cash paid for acquisitions, net of cash acquired was $390 and $2,563.

On May 2, 2023 we acquired Cerus for net cash consideration of $289 and up to $225 in future milestone payments that had a fair value of $192 at the acquisition date. Cerus designs, develops and manufactures neurovascular products used for the treatment of hemorrhagic stroke. Cerus is part of our Neurovascular business within MedSurg and Neurotechnology. Goodwill attributable to the acquisition is not deductible for tax purposes.

In February 2022 we completed the acquisition of Vocera Communications, Inc. (Vocera) for $79.25 per share, or an aggregate purchase price of $2.6 billion, net of cash acquired ($3.0 billion including convertible notes). Vocera is a leader in the digital care coordination and communication category. Vocera is part of our Medical business within MedSurg and Neurotechnology. Goodwill attributable to the acquisition reflects the strategic benefits of expanding our presence in adjacent markets, diversifying our product portfolio, advancing innovations, and accelerating our digital aspirations. This goodwill is not deductible for tax purposes.

In the six months 2022 note holders elected to redeem the 1.50% and 0.50% convertible notes assumed in the Vocera acquisition for $101 and $324. These repayments are classified as financing activities in the Consolidated Statements of Cash Flows.

Share-based awards for Vocera employees vested upon our acquisition and a charge of $132 was recorded in selling, general and administrative expenses in 2022.

Purchase price allocations for our significant acquisitions are:

Purchase Price Allocation of Acquired Net Assets
	2023		2022
	Cerus		Vocera
Tangible assets acquired:
Accounts receivable	$	1	$	33
Inventory	2		13
Deferred income tax assets	7		91
Other assets	1		92
Debt	—		(425)
Deferred income tax liabilities	(60)		(193)
Other liabilities	(22)		(117)
Intangible assets:
Customer and distributor relationships	—		603
Developed technology	240		175
Trade name	—		18
Goodwill	312		2,273
Purchase price, net of cash acquired of $7 and $281	$	481	$	2,563
Weighted average amortization period at acquisition (years):
Developed technologies	15		6
Customer relationships	—		15
Trademarks	—		9

The purchase price allocation for Cerus is based on preliminary valuations, primarily related to developed technology and deferred income taxes. Our estimates and assumptions are subject to change within the measurement period. The purchase price allocation for Vocera was finalized in the first quarter 2023 without material adjustments.

Consolidated Estimated Amortization Expense
Remainder of 2023		2024		2025		2026		2027
$	319	$	608	$	591	$	534	$	511

XML

Debt and Credit Facilities

6 Months Ended

Jun. 30, 2023

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. Our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on June 30, 2023.

In February 2022 we entered into a $1.5 billion term loan agreement that matures on February 22, 2025 and bears interest at a base rate based on the Term Secured Overnight Financing Rate (SOFR) plus 0.725%. Through June 30, 2023 we have repaid $850 on the term loan.

In the first quarter 2022 our Board of Directors approved an increase to the maximum amount of commercial paper that can be outstanding from $1,500 to $2,250.

On June 30, 2023 there were no borrowings outstanding under our revolving credit facility or our commercial paper program which allows for maturities up to 397 days from the date of issuance.

Summary of Total Debt			June		December
			2023		2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	598	$	585
	0.600%	December 1, 2023	600		599
	3.375%	May 15, 2024	597		596
	0.250%	December 3, 2024	922		903
	1.150%	June 15, 2025	647		647
	3.375%	November 1, 2025	749		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	812		795
	3.650%	March 7, 2028	597		597
	0.750%	March 1, 2029	865		848
	1.950%	June 15, 2030	992		991
	2.625%	November 30, 2030	699		684
	1.000%	December 3, 2031	807		790
	4.100%	April 1, 2043	392		392
	4.375%	May 15, 2044	396		396
	4.625%	March 15, 2046	983		983
	2.900%	June 15, 2050	642		642
Term loan			650		850
Other			3		7
Total debt			$	12,947	$	13,048
Less current maturities			1,798		1,191
Total long-term debt			$	11,149	$	11,857
			June		December
			2023		2022
Unamortized debt issuance costs			$	47	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,082	$	10,910

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.

XML

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXESOur effective tax rates were 17.9% and 15.7% in the three and six months 2023 and 8.9% and 11.5% in the three and six months 2022. The effective tax rates for the three and six months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. In addition, the effective tax rates for the three and six months 2022 reflect the reversal of deferred income tax on undistributed earnings of foreign subsidiaries as our revised capital plan determined that certain cash outside of the United States would no longer need to be repatriated during the period previously contemplated.

XML

Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

	Three Months				Six Months
	2023		2022		2023		2022
MedSurg and Neurotechnology	$	2,860	$	2,549	$	5,550	$	4,972
Orthopaedics and Spine	2,136		1,944		4,224		3,796
Net sales	$	4,996	$	4,493	$	9,774	$	8,768
MedSurg and Neurotechnology	$	780	$	629	$	1,407	$	1,259
Orthopaedics and Spine	601		579		1,202		1,082
Segment operating income	$	1,381	$	1,208	$	2,609	$	2,341
Items not allocated to segments:
Corporate and other	$	(165)	$	(145)	$	(387)	$	(344)
Acquisition and integration-related costs	(2)		(37)		(8)		(186)
Amortization of intangible assets	(161)		(160)		(322)		(310)
Structural optimization and other special charges	(72)		(62)		(114)		(171)
Medical device regulations	(27)		(32)		(55)		(60)
Recall-related matters	(3)		(4)		(3)		(18)
Regulatory and legal matters	14		4		(20)		(33)
Consolidated operating income	$	965	$	772	$	1,700	$	1,219

There were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for 2022.

XML

Basis Of Presentation (Policies)

6 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements

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.

XML

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2023

Revenue Recognition [Abstract]

Schedule of Disaggregated Revenue

We disaggregate our net sales by business 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.

Beginning in the first quarter 2023 we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $87 and $77 for the three months 2023 and 2022 and $168 and $146 for the six months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months				Six Months
	2023		2022		2023		2022
MedSurg and Neurotechnology:
Instruments	$	630	$	563	$	1,205	$	1,091
Endoscopy	705		677		1,403		1,284
Medical	841		666		1,619		1,330
Neurovascular	311		306		595		607
Neuro Cranial	373		337		728		660
	$	2,860	$	2,549	$	5,550	$	4,972
Orthopaedics and Spine:
Knees	$	562	$	500	$	1,128	$	964
Hips	393		364		768		691
Trauma and Extremities	766		676		1,535		1,361
Spine	296		290		580		569
Other	119		114		213		211
	$	2,136	$	1,944	$	4,224	$	3,796
Total	$	4,996	$	4,493	$	9,774	$	8,768

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	512	$	118	$	451	$	112
Endoscopy	568		137		548		129
Medical	682		159		536		130
Neurovascular	123		188		113		193
Neuro Cranial	306		67		281		56
	$	2,191	$	669	$	1,929	$	620
Orthopaedics and Spine:
Knees	$	406	$	156	$	368	$	132
Hips	249		144		230		134
Trauma and Extremities	559		207		489		187
Spine	221		75		209		81
Other	85		34		86		28
	$	1,520	$	616	$	1,382	$	562
Total	$	3,711	$	1,285	$	3,311	$	1,182

Net Sales by Geography
	Six Months 2023				Six Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	962	$	243	$	865	$	226
Endoscopy	1,132		271		1,034		250
Medical	1,294		325		1,061		269
Neurovascular	241		354		223		384
Neuro Cranial	595		133		545		115
	$	4,224	$	1,326	$	3,728	$	1,244
Orthopaedics and Spine:
Knees	$	822	$	306	$	713	$	251
Hips	485		283		432		259
Trauma and Extremities	1,113		422		976		385
Spine	433		147		409		160
Other	146		67		158		53
	$	2,999	$	1,225	$	2,688	$	1,108
Total	$	7,223	$	2,551	$	6,416	$	2,352

Contract with Customer, Contract Asset, Contract Liability, and Receivable

Changes in contract liabilities during the six months 2023 were as follows:

	June 2023
Beginning contract liabilities	$	741
Revenue recognized from beginning of year contract liabilities	(230)
Net advance consideration received during the period	273
Ending contract liabilities	$	784

XML

Accumulated Other Comprehensive (Loss) Income (AOCI) (Tables)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	29	$	43	$	(376)	$	(305)
OCI	(1)		1		24		(24)		—
Income taxes	—		(2)		(5)		(4)		(11)
Reclassifications to:
Cost of sales	—		—		(9)		—		(9)
Other (income) expense, net	1		(1)		(1)		(9)		(10)
Income taxes	—		1		2		2		5
Net OCI	—		(1)		11		(35)		(25)
Ending	$	(1)	$	28	$	54	$	(411)	$	(330)

Reclassification out of Accumulated Other Comprehensive Income

Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	29	$	43	$	(376)	$	(305)
OCI	(1)		1		24		(24)		—
Income taxes	—		(2)		(5)		(4)		(11)
Reclassifications to:
Cost of sales	—		—		(9)		—		(9)
Other (income) expense, net	1		(1)		(1)		(9)		(10)
Income taxes	—		1		2		2		5
Net OCI	—		(1)		11		(35)		(25)
Ending	$	(1)	$	28	$	54	$	(411)	$	(330)

XML

Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

June 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	809	$	1,630	$	3,885	$	6,324
Maximum term in years							3.4
Fair value:
Other current assets	$	30	$	—	$	24	$	54
Other noncurrent assets	2		79		—		81
Other current liabilities	(6)		—		(15)		(21)
Other noncurrent liabilities	—		(27)		—		(27)
Total fair value	$	26	$	52	$	9	$	87

December 2022	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	1,053	$	1,598	$	3,417	$	6,068
Maximum term in years							3.9
Fair value:
Other current assets	$	20	$	—	$	9	$	29
Other noncurrent assets	1		89		—		90
Other current liabilities	(6)		—		(79)		(85)
Other noncurrent liabilities	(1)		(16)		—		(17)
Total fair value	$	14	$	73	$	(70)	$	17

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location

Derivative		Three Months				Six Months
instrument:	Recorded in:	2023		2022		2023		2022
Cash Flow	Cost of sales	$	9	$	3	$	22	$	3
Net Investment	Other income (expense), net	9		11		17		22
Non-Designated	Other income (expense), net	5		2		9		3
	Total	$	23	$	16	$	48	$	28

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets Measured at Fair Value	June		December
	2023		2022
Cash and cash equivalents	$	1,401	$	1,844
Trading marketable securities	192		166
Level 1 - Assets	$	1,593	$	2,010
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	36	$	42
Foreign government debt securities	—		1
United States agency debt securities	5		3
United States treasury debt securities	35		36
Certificates of deposit	1		2
Total available-for-sale marketable securities	$	77	$	84
Foreign currency exchange forward contracts	135		119
Level 2 - Assets	$	212	$	203
Total assets measured at fair value	$	1,805	$	2,213

Liabilities Measured at Fair Value	June		December
	2023		2022
Deferred compensation arrangements	$	192	$	166
Level 1 - Liabilities	$	192	$	166
Foreign currency exchange forward contracts	$	48	$	102
Level 2 - Liabilities	$	48	$	102
Contingent consideration:
Beginning	$	121	$	306
Additions	192		1
Change in estimate and foreign exchange	(3)		(137)
Settlements	(1)		(49)
Ending	$	309	$	121
Level 3 - Liabilities	$	309	$	121
Total liabilities measured at fair value	$	549	$	389

Investments Classified by Contractual Maturity Date

Fair Value of Available for Sale Securities by Maturity
	June		December
	2023		2022
Due in one year or less	$	42	$	53
Due after one year through three years	$	35	$	31

XML

Contingencies and Commitments (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Lease, Cost

Leases	June			December
	2023			2022
Right-of-use assets	$	481		$	473
Lease liabilities, current	$	125		$	121
Lease liabilities, non-current	$	363		$	357
Other information:
Weighted-average remaining lease term (years)	5.7			5.5
Weighted-average discount rate	3.60		%	3.22		%

	Three Months				Six Months
	2023		2022		2023		2022
Operating lease cost	$	41	$	38	$	79	$	73

XML

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

Purchase price allocations for our significant acquisitions are:

Purchase Price Allocation of Acquired Net Assets
	2023		2022
	Cerus		Vocera
Tangible assets acquired:
Accounts receivable	$	1	$	33
Inventory	2		13
Deferred income tax assets	7		91
Other assets	1		92
Debt	—		(425)
Deferred income tax liabilities	(60)		(193)
Other liabilities	(22)		(117)
Intangible assets:
Customer and distributor relationships	—		603
Developed technology	240		175
Trade name	—		18
Goodwill	312		2,273
Purchase price, net of cash acquired of $7 and $281	$	481	$	2,563
Weighted average amortization period at acquisition (years):
Developed technologies	15		6
Customer relationships	—		15
Trademarks	—		9

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Consolidated Estimated Amortization Expense
Remainder of 2023		2024		2025		2026		2027
$	319	$	608	$	591	$	534	$	511

XML

Debt and Credit Facilities (Tables)

6 Months Ended

Jun. 30, 2023

Long-Term Debt, Unclassified [Abstract]

Schedule of Long-term Debt Instruments

Summary of Total Debt			June		December
			2023		2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	598	$	585
	0.600%	December 1, 2023	600		599
	3.375%	May 15, 2024	597		596
	0.250%	December 3, 2024	922		903
	1.150%	June 15, 2025	647		647
	3.375%	November 1, 2025	749		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	812		795
	3.650%	March 7, 2028	597		597
	0.750%	March 1, 2029	865		848
	1.950%	June 15, 2030	992		991
	2.625%	November 30, 2030	699		684
	1.000%	December 3, 2031	807		790
	4.100%	April 1, 2043	392		392
	4.375%	May 15, 2044	396		396
	4.625%	March 15, 2046	983		983
	2.900%	June 15, 2050	642		642
Term loan			650		850
Other			3		7
Total debt			$	12,947	$	13,048
Less current maturities			1,798		1,191
Total long-term debt			$	11,149	$	11,857
			June		December
			2023		2022
Unamortized debt issuance costs			$	47	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,082	$	10,910

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Sales and Other Financial Information by Business Segment

	Three Months				Six Months
	2023		2022		2023		2022
MedSurg and Neurotechnology	$	2,860	$	2,549	$	5,550	$	4,972
Orthopaedics and Spine	2,136		1,944		4,224		3,796
Net sales	$	4,996	$	4,493	$	9,774	$	8,768
MedSurg and Neurotechnology	$	780	$	629	$	1,407	$	1,259
Orthopaedics and Spine	601		579		1,202		1,082
Segment operating income	$	1,381	$	1,208	$	2,609	$	2,341
Items not allocated to segments:
Corporate and other	$	(165)	$	(145)	$	(387)	$	(344)
Acquisition and integration-related costs	(2)		(37)		(8)		(186)
Amortization of intangible assets	(161)		(160)		(322)		(310)
Structural optimization and other special charges	(72)		(62)		(114)		(171)
Medical device regulations	(27)		(32)		(55)		(60)
Recall-related matters	(3)		(4)		(3)		(18)
Regulatory and legal matters	14		4		(20)		(33)
Consolidated operating income	$	965	$	772	$	1,700	$	1,219

XML

Revenue Recognition - Disaggregated Sales Analysis (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 4,996	$ 4,493	$ 9,774	$ 8,768
United States
Disaggregation of Revenue [Line Items]
Net sales	3,711	3,311	7,223	6,416
International
Disaggregation of Revenue [Line Items]
Net sales	1,285	1,182	2,551	2,352
Other MedSurg and Neurotechnology
Disaggregation of Revenue [Line Items]
Net sales	87	77	168	146
MedSurg and Neurotechnology
Disaggregation of Revenue [Line Items]
Net sales	2,860	2,549	5,550	4,972
MedSurg and Neurotechnology | United States
Disaggregation of Revenue [Line Items]
Net sales	2,191	1,929	4,224	3,728
MedSurg and Neurotechnology | International
Disaggregation of Revenue [Line Items]
Net sales	669	620	1,326	1,244
MedSurg and Neurotechnology | Instruments
Disaggregation of Revenue [Line Items]
Net sales	630	563	1,205	1,091
MedSurg and Neurotechnology | Instruments | United States
Disaggregation of Revenue [Line Items]
Net sales	512	451	962	865
MedSurg and Neurotechnology | Instruments | International
Disaggregation of Revenue [Line Items]
Net sales	118	112	243	226
MedSurg and Neurotechnology | Endoscopy
Disaggregation of Revenue [Line Items]
Net sales	705	677	1,403	1,284
MedSurg and Neurotechnology | Endoscopy | United States
Disaggregation of Revenue [Line Items]
Net sales	568	548	1,132	1,034
MedSurg and Neurotechnology | Endoscopy | International
Disaggregation of Revenue [Line Items]
Net sales	137	129	271	250
MedSurg and Neurotechnology | Medical
Disaggregation of Revenue [Line Items]
Net sales	841	666	1,619	1,330
MedSurg and Neurotechnology | Medical | United States
Disaggregation of Revenue [Line Items]
Net sales	682	536	1,294	1,061
MedSurg and Neurotechnology | Medical | International
Disaggregation of Revenue [Line Items]
Net sales	159	130	325	269
MedSurg and Neurotechnology | Neurovascular
Disaggregation of Revenue [Line Items]
Net sales	311	306	595	607
MedSurg and Neurotechnology | Neurovascular | United States
Disaggregation of Revenue [Line Items]
Net sales	123	113	241	223
MedSurg and Neurotechnology | Neurovascular | International
Disaggregation of Revenue [Line Items]
Net sales	188	193	354	384
MedSurg and Neurotechnology | Neuro Cranial
Disaggregation of Revenue [Line Items]
Net sales	373	337	728	660
MedSurg and Neurotechnology | Neuro Cranial | United States
Disaggregation of Revenue [Line Items]
Net sales	306	281	595	545
MedSurg and Neurotechnology | Neuro Cranial | International
Disaggregation of Revenue [Line Items]
Net sales	67	56	133	115
Orthopaedics and Spine
Disaggregation of Revenue [Line Items]
Net sales	2,136	1,944	4,224	3,796
Orthopaedics and Spine | United States
Disaggregation of Revenue [Line Items]
Net sales	1,520	1,382	2,999	2,688
Orthopaedics and Spine | International
Disaggregation of Revenue [Line Items]
Net sales	616	562	1,225	1,108
Orthopaedics and Spine | Knees
Disaggregation of Revenue [Line Items]
Net sales	562	500	1,128	964
Orthopaedics and Spine | Knees | United States
Disaggregation of Revenue [Line Items]
Net sales	406	368	822	713
Orthopaedics and Spine | Knees | International
Disaggregation of Revenue [Line Items]
Net sales	156	132	306	251
Orthopaedics and Spine | Hips
Disaggregation of Revenue [Line Items]
Net sales	393	364	768	691
Orthopaedics and Spine | Hips | United States
Disaggregation of Revenue [Line Items]
Net sales	249	230	485	432
Orthopaedics and Spine | Hips | International
Disaggregation of Revenue [Line Items]
Net sales	144	134	283	259
Orthopaedics and Spine | Trauma and Extremities
Disaggregation of Revenue [Line Items]
Net sales	766	676	1,535	1,361
Orthopaedics and Spine | Trauma and Extremities | United States
Disaggregation of Revenue [Line Items]
Net sales	559	489	1,113	976
Orthopaedics and Spine | Trauma and Extremities | International
Disaggregation of Revenue [Line Items]
Net sales	207	187	422	385
Orthopaedics and Spine | Spine
Disaggregation of Revenue [Line Items]
Net sales	296	290	580	569
Orthopaedics and Spine | Spine | United States
Disaggregation of Revenue [Line Items]
Net sales	221	209	433	409
Orthopaedics and Spine | Spine | International
Disaggregation of Revenue [Line Items]
Net sales	75	81	147	160
Orthopaedics and Spine | Other
Disaggregation of Revenue [Line Items]
Net sales	119	114	213	211
Orthopaedics and Spine | Other | United States
Disaggregation of Revenue [Line Items]
Net sales	85	86	146	158
Orthopaedics and Spine | Other | International
Disaggregation of Revenue [Line Items]
Net sales	$ 34	$ 28	$ 67	$ 53

XML

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Revenue Recognition [Abstract]
Contract liabilities	$ 784	$ 741

XML

Revenue Recognition - Changes in Contract Liabilities (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Movement In Contract Liabilities [Roll Forward]
Beginning contract liabilities	$ 741
Revenue recognized from beginning of year contract liabilities	(230)
Net advance consideration received during the period	273
Ending contract liabilities	$ 784

XML

Accumulated Other Comprehensive (Loss) Income (AOCI) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	$ (305)	$ (479)	$ (221)	$ (531)
OCI	0	308	(94)	393
Income taxes	(11)	(104)	17	(129)
Reclassification to: cost of sales	1,815	1,667	3,577	3,208
Reclassification to: Other (income) expense, net	(66)	(52)	(122)	(113)
Reclassification to: Income taxes	(161)	(64)	(248)	(127)
Net OCI	(25)	193	(109)	245
AOCI, at end of period	(330)	(286)	(330)	(286)
Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	(9)	(3)	(22)	(3)
Reclassification to: Other (income) expense, net	(10)	(10)	(20)	(20)
Reclassification to: Income taxes	5	2	10	4
Net OCI	(25)	193	(109)	245
Marketable Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	(1)	(1)	(1)	0
OCI	(1)	0	(1)	(1)
Income taxes	0	0	0	0
AOCI, at end of period	(1)	(1)	(1)	(1)
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	0	0	0	0
Reclassification to: Other (income) expense, net	1	0	1	0
Reclassification to: Income taxes	0	0	0	0
Net OCI	0	0	0	(1)
Pension Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	29	(156)	31	(155)
OCI	1	8	3	4
Income taxes	(2)	(2)	(5)	0
AOCI, at end of period	28	(148)	28	(148)
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	0	0	0	0
Reclassification to: Other (income) expense, net	(1)	2	(2)	4
Reclassification to: Income taxes	1	0	1	(1)
Net OCI	(1)	8	(3)	7
Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	43	41	52	40
OCI	24	32	27	36
Income taxes	(5)	(4)	(6)	(6)
AOCI, at end of period	54	65	54	65
Hedges | Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	(9)	(3)	(22)	(3)
Reclassification to: Other (income) expense, net	(1)	(1)	(2)	(2)
Reclassification to: Income taxes	2	0	5	0
Net OCI	11	24	2	25
Financial Statement Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	(376)	(363)	(303)	(416)
OCI	(24)	268	(123)	354
Income taxes	(4)	(98)	28	(123)
AOCI, at end of period	(411)	(202)	(411)	(202)
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	0	0	0	0
Reclassification to: Other (income) expense, net	(9)	(11)	(17)	(22)
Reclassification to: Income taxes	2	2	4	5
Net OCI	$ (35)	$ 161	$ (108)	$ 214

XML

Derivative Instruments (Forward Currency Exchange Contracts) (Details) - Foreign Exchange Contract $ in Millions, € in Billions	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 EUR (€)
Derivative [Line Items]
Derivative, notional amount	$ 6,324	$ 6,068
Maximum Remaining Maturity of Foreign Currency Derivatives	3 years 4 months 24 days	3 years 10 months 24 days
Total fair value	$ 87	$ 17
Other current assets
Derivative [Line Items]
Derivative assets	54	29
Other noncurrent assets
Derivative [Line Items]
Derivative assets	81	90
Other current liabilities
Derivative [Line Items]
Derivative liabilities	(21)	(85)
Other noncurrent liabilities
Derivative [Line Items]
Derivative liabilities	(27)	(17)
Non-Designated
Derivative [Line Items]
Derivative, notional amount	3,885	3,417
Total fair value	9	(70)
Non-Designated | Other current assets
Derivative [Line Items]
Derivative assets	24	9
Non-Designated | Other noncurrent assets
Derivative [Line Items]
Derivative assets	0	0
Non-Designated | Other current liabilities
Derivative [Line Items]
Derivative liabilities	(15)	(79)
Non-Designated | Other noncurrent liabilities
Derivative [Line Items]
Derivative liabilities	0	0
Cash Flow | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount	809	1,053
Total fair value	26	14
Cash Flow | Designated as Hedging Instrument | Other current assets
Derivative [Line Items]
Derivative assets	30	20
Cash Flow | Designated as Hedging Instrument | Other noncurrent assets
Derivative [Line Items]
Derivative assets	2	1
Cash Flow | Designated as Hedging Instrument | Other current liabilities
Derivative [Line Items]
Derivative liabilities	(6)	(6)
Cash Flow | Designated as Hedging Instrument | Other noncurrent liabilities
Derivative [Line Items]
Derivative liabilities	0	(1)
Net Investment | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount	1,630	1,598	€ 1.5	€ 1.5
Total fair value	52	73
Net Investment | Designated as Hedging Instrument | Other current assets
Derivative [Line Items]
Derivative assets	0	0
Net Investment | Designated as Hedging Instrument | Other noncurrent assets
Derivative [Line Items]
Derivative assets	79	89
Net Investment | Designated as Hedging Instrument | Other current liabilities
Derivative [Line Items]
Derivative liabilities	0	0
Net Investment | Designated as Hedging Instrument | Other noncurrent liabilities
Derivative [Line Items]
Derivative liabilities	$ (27)	$ (16)

XML

Derivative Instruments (Narrative) (Details) $ in Millions, € in Billions	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	$ 6,324		$ 6,068
Designated as Hedging Instrument | Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
After-tax gain (loss) recognized in AOCI related to designated net investment hedges	(101)
Cash flow hedge gain (loss) to be reclassified within twelve months	30
Net investment hedges expected to be reclassified to cost of sales and other income (expense)	34
Designated as Hedging Instrument | Foreign Exchange Contract | Net Investment
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	1,630	€ 1.5	$ 1,598	€ 1.5
Designated as Hedging Instrument | Interest Rate Swap
Derivative Instruments, Gain (Loss) [Line Items]
Cash flow hedge gain (loss) to be reclassified within twelve months	$ 5
Designated as Hedging Instrument | Embedded Derivative Financial Instruments | Net Investment
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount | €		€ 4.4		€ 4.4

XML

Derivative Instruments (Income Statement Location) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	$ 23	$ 16	$ 48	$ 28
Foreign Exchange Contract | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	9	3	22	3
Foreign Exchange Contract | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	5	2	9	3
Net Investment | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	$ 9	$ 11	$ 17	$ 22

XML

Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Assets Measured at Fair Value
Available-for-sale securities, current	$ 77	$ 77	$ 84
Total assets measured at fair value	1,805	1,805	2,213
Contingent consideration:
Total liabilities measured at fair value	549	549	389
Fair Value, Inputs, Level 1
Assets Measured at Fair Value
Cash and cash equivalents	1,401	1,401	1,844
Trading marketable securities	192	192	166
Total assets measured at fair value	1,593	1,593	2,010
Liabilities
Deferred compensation arrangements	192	192	166
Contingent consideration:
Total liabilities measured at fair value	192	192	166
Fair Value, Inputs, Level 2
Assets Measured at Fair Value
Available-for-sale securities, current	77	77	84
Total assets measured at fair value	212	212	203
Contingent consideration:
Total liabilities measured at fair value	48	48	102
Fair Value, Inputs, Level 2 | Foreign currency exchange forward contracts
Assets Measured at Fair Value
Derivative asset	135	135	119
Liabilities
Foreign currency exchange forward contracts	48	48	102
Fair Value, Inputs, Level 2 | Corporate and asset-backed debt securities
Assets Measured at Fair Value
Available-for-sale securities, current	36	36	42
Fair Value, Inputs, Level 2 | Foreign government debt securities
Assets Measured at Fair Value
Available-for-sale securities, current	0	0	1
Fair Value, Inputs, Level 2 | United States agency debt securities
Assets Measured at Fair Value
Available-for-sale securities, current	5	5	3
Fair Value, Inputs, Level 2 | United States treasury debt securities
Assets Measured at Fair Value
Available-for-sale securities, current	35	35	36
Fair Value, Inputs, Level 2 | Certificates of deposit
Assets Measured at Fair Value
Available-for-sale securities, current	1	1	2
Fair Value, Inputs, Level 3
Contingent consideration:
Beginning		121	306
Additions	192		1
Change in estimate and foreign exchange		(3)	(137)
Settlements		(1)	(49)
Ending	309	309	121
Total liabilities measured at fair value	$ 309	$ 309	$ 121

XML

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, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Due in one year or less	$ 42	$ 53
Due after one year through three years	$ 35	$ 31

XML

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Fair Value Disclosures [Abstract]
Reduction of contingent consideration		$ 110
Gain on sale of marketable securities	$ 11		$ 20	$ 25	$ 35

XML

Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Loss Contingencies [Line Items]
Estimate of possible loss		$ 194		$ 194
Recall-related payments				(23)	$ (19)
Recall charges, net		$ 3	$ 4	$ 3	$ 18
PureWick
Loss Contingencies [Line Items]
Charges during period	$ 28

XML

Contingencies and Commitments - Leases (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Right-of-use assets	$ 481		$ 481		$ 473
Lease liabilities, current	125		125		121
Lease liabilities, non-current	$ 363		$ 363		$ 357
Other information:
Weighted-average remaining lease term (years)	5 years 8 months 12 days		5 years 8 months 12 days		5 years 6 months
Weighted-average discount rate	3.60%		3.60%		3.22%
Operating lease cost	$ 41	$ 38	$ 79	$ 73

XML

Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended
	May 02, 2023	Feb. 28, 2022	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Business Acquisition [Line Items]
Acquisitions, net of cash acquired				$ 390	$ 2,563
Payments of long-term debt				$ 201	$ 252
Vocera
Business Acquisition [Line Items]
Aggregate purchase price of acquisitions		$ 2,600
Consideration transferred (in dollars per share)		$ 79.25
Business combination, consideration transferred, including convertible notes		$ 3,000
Share-based payment expense			$ 132
Vocera | 1.50% Convertible Notes
Business Acquisition [Line Items]
Stated interest rate					1.50%
Payments of long-term debt					$ 101
Vocera | 0.50% Convertible Notes
Business Acquisition [Line Items]
Stated interest rate					0.50%
Payments of long-term debt					$ 324
Cerus
Business Acquisition [Line Items]
Aggregate purchase price of acquisitions	$ 289
Business acquisition, future milestone payments (up to)	225
Fair value of contingent consideration	$ 192

XML

Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets (Details) - USD ($) $ in Millions		1 Months Ended
	May 02, 2023	Feb. 28, 2022	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill			$ 15,172	$ 14,880
Vocera
Business Acquisition [Line Items]
Accounts receivable		$ 33
Inventory		13
Deferred income tax assets		91
Other assets		92
Debt		(425)
Deferred income tax liabilities		(193)
Other liabilities		(117)
Goodwill		2,273
Purchase price, net of cash acquired of $7 and $281		2,563
Cash acquired from acquisition		281
Vocera | Customer and distributor relationships
Business Acquisition [Line Items]
Intangible assets acquired		603
Vocera | Developed technology
Business Acquisition [Line Items]
Intangible assets acquired		$ 175
Weighted average amortization period at acquisition (years)		6 years
Vocera | Trade name
Business Acquisition [Line Items]
Intangible assets acquired		$ 18
Vocera | Customer relationships
Business Acquisition [Line Items]
Weighted average amortization period at acquisition (years)		15 years
Vocera | Trademarks
Business Acquisition [Line Items]
Weighted average amortization period at acquisition (years)		9 years
Cerus
Business Acquisition [Line Items]
Accounts receivable	$ 1
Inventory	2
Deferred income tax assets	7
Other assets	1
Debt	0
Deferred income tax liabilities	(60)
Other liabilities	(22)
Goodwill	312
Purchase price, net of cash acquired of $7 and $281	481
Cash acquired from acquisition	7
Cerus | Customer and distributor relationships
Business Acquisition [Line Items]
Intangible assets acquired	0
Cerus | Developed technology
Business Acquisition [Line Items]
Intangible assets acquired	$ 240
Weighted average amortization period at acquisition (years)	15 years
Cerus | Trade name
Business Acquisition [Line Items]
Intangible assets acquired	$ 0

XML

Acquisitions (Future Amortization Expense) (Details) $ in Millions	Jun. 30, 2023 USD ($)
Business Combinations [Abstract]
Remainder of 2023	$ 319
2024	608
2025	591
2026	534
2027	$ 511

XML

Debt and Credit Facilities (Details) - USD ($)	1 Months Ended	6 Months Ended	13 Months Ended
	Feb. 28, 2022	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Commercial paper		$ 0
Other		3,000,000		$ 7,000,000
Total debt		12,947,000,000		13,048,000,000
Less current maturities		1,798,000,000		1,191,000,000
Less current maturities		11,149,000,000		11,857,000,000
Unamortized debt issuance costs		47,000,000		52,000,000
Borrowing capacity on existing facilities		2,160,000,000		2,162,000,000
Fair value of senior unsecured notes		11,082,000,000		10,910,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Borrowings outstanding under credit facility		$ 0
Senior Unsecured Notes 1.125% Due 2023
Line of Credit Facility [Line Items]
Stated interest rate		1.125%
Unsecured debt		$ 598,000,000		585,000,000
Senior Unsecured Notes, 0.600% Due 2023
Line of Credit Facility [Line Items]
Stated interest rate		0.60%
Unsecured debt		$ 600,000,000		599,000,000
Senior Unsecured Notes 3.375% due 2024
Line of Credit Facility [Line Items]
Stated interest rate		3.375%
Unsecured debt		$ 597,000,000		596,000,000
Senior Unsecured Notes, 0.250% Due 2024
Line of Credit Facility [Line Items]
Stated interest rate		0.25%
Unsecured debt		$ 922,000,000		903,000,000
Senior Unsecured Notes, 1.150% Due 2025
Line of Credit Facility [Line Items]
Stated interest rate		1.15%
Unsecured debt		$ 647,000,000		647,000,000
Senior Unsecured Notes 3.375% due 2025
Line of Credit Facility [Line Items]
Stated interest rate		3.375%
Unsecured debt		$ 749,000,000		748,000,000
Senior Unsecured Notes 3.500% due 2026
Line of Credit Facility [Line Items]
Stated interest rate		3.50%
Unsecured debt		$ 996,000,000		995,000,000
Senior Unsecured Notes 2.125% due 2027
Line of Credit Facility [Line Items]
Stated interest rate		2.125%
Unsecured debt		$ 812,000,000		795,000,000
Senior Unsecured Notes 3.650% due 2028
Line of Credit Facility [Line Items]
Stated interest rate		3.65%
Unsecured debt		$ 597,000,000		597,000,000
Senior Unsecured Notes 0.750% due 2029
Line of Credit Facility [Line Items]
Stated interest rate		0.75%
Unsecured debt		$ 865,000,000		848,000,000
Senior Unsecured Notes, 1.950% Due 2030
Line of Credit Facility [Line Items]
Stated interest rate		1.95%
Unsecured debt		$ 992,000,000		991,000,000
Senior Unsecured Notes 2.625% due 2030
Line of Credit Facility [Line Items]
Stated interest rate		2.625%
Unsecured debt		$ 699,000,000		684,000,000
Senior Unsecured Notes, 1.000% Due 2031
Line of Credit Facility [Line Items]
Stated interest rate		1.00%
Unsecured debt		$ 807,000,000		790,000,000
Senior Unsecured Notes 4.100% due 2043
Line of Credit Facility [Line Items]
Stated interest rate		4.10%
Unsecured debt		$ 392,000,000		392,000,000
Senior Unsecured Notes 4.375% due 2044
Line of Credit Facility [Line Items]
Stated interest rate		4.375%
Unsecured debt		$ 396,000,000		396,000,000
Senior Unsecured Notes 4.625% due 2046
Line of Credit Facility [Line Items]
Stated interest rate		4.625%
Unsecured debt		$ 983,000,000		983,000,000
Senior Unsecured Notes, 2.900% due 2050
Line of Credit Facility [Line Items]
Stated interest rate		2.90%
Unsecured debt		$ 642,000,000		642,000,000
Term Loan
Line of Credit Facility [Line Items]
Debt instrument, face amount	$ 1,500,000,000
Repayments of debt			$ 850,000,000
Long-term debt		$ 650,000,000		$ 850,000,000
Term Loan | SOFR
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.725%
Commercial Paper
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity					$ 2,250,000,000	$ 1,500,000,000
Debt instrument, maturity		397 days

XML

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	17.90%	8.90%	15.70%	11.50%

XML

Segment Information (Sales And Other Financial Information By Business Segment) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net sales	$ 4,996	$ 4,493	$ 9,774	$ 8,768
Segment operating income	965	772	1,700	1,219
Amortization of intangible assets	(161)	(160)	(322)	(310)
Recall-related matters	(3)	(4)	(3)	(18)
MedSurg and Neurotechnology
Segment Reporting Information [Line Items]
Net sales	2,860	2,549	5,550	4,972
Orthopaedics and Spine
Segment Reporting Information [Line Items]
Net sales	2,136	1,944	4,224	3,796
Operating Segments
Segment Reporting Information [Line Items]
Segment operating income	1,381	1,208	2,609	2,341
Operating Segments | MedSurg and Neurotechnology
Segment Reporting Information [Line Items]
Net sales	2,860	2,549	5,550	4,972
Segment operating income	780	629	1,407	1,259
Operating Segments | Orthopaedics and Spine
Segment Reporting Information [Line Items]
Net sales	2,136	1,944	4,224	3,796
Segment operating income	601	579	1,202	1,082
Corporate and other
Segment Reporting Information [Line Items]
Segment operating income	(165)	(145)	(387)	(344)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Acquisition and integration-related costs	(2)	(37)	(8)	(186)
Amortization of intangible assets	(161)	(160)	(322)	(310)
Structural optimization and other special charges	(72)	(62)	(114)	(171)
Medical device regulations	(27)	(32)	(55)	(60)
Recall-related matters	(3)	(4)	(3)	(18)
Regulatory and legal matters	$ 14	$ 4	$ (20)	$ (33)