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 September 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 379,894,650 shares of Common Stock, $0.10 par value, on September 30, 2023.

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

	Three Months				Nine Months
	2023		2022		2023		2022
Net sales	$	4,909	$	4,479	$	14,683	$	13,247
Cost of sales	1,751		1,697		5,328		4,905
Gross profit	$	3,158	$	2,782	$	9,355	$	8,342
Research, development and engineering expenses	353		364		1,038		1,128
Selling, general and administrative expenses	1,701		1,455		5,188		4,704
Recall charges, net	9		(4)		12		14
Amortization of intangible assets	164		159		486		469
Total operating expenses	$	2,227	$	1,974	$	6,724	$	6,315
Operating income	$	931	$	808	$	2,631	$	2,027
Other income (expense), net	(62)		8		(184)		(105)
Earnings before income taxes	$	869	$	816	$	2,447	$	1,922
Income taxes	177		—		425		127
Net earnings	$	692	$	816	$	2,022	$	1,795
Net earnings per share of common stock:
Basic	$	1.82	$	2.16	$	5.33	$	4.75
Diluted	$	1.80	$	2.14	$	5.27	$	4.70
Weighted-average shares outstanding (in millions):
Basic	379.8		378.4		379.5		378.1
Effect of dilutive employee stock compensation	4.2		3.4		4.2		4.1
Diluted	384.0		381.8		383.7		382.2
Cash dividends declared per share of common stock	$	0.75	$	0.695	$	2.25	$	2.085

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were 5.0 for the three months 2022 and 4.2 for the nine months 2022 and de minimis in all other periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months				Nine Months
	2023		2022		2023		2022
Net earnings	$	692	$	816	$	2,022	$	1,795
Other comprehensive income (loss), net of tax:
Marketable securities	—		—		—		(1)
Pension plans	(1)		10		(4)		17
Unrealized gains (losses) on designated hedges	2		8		4		33
Financial statement translation	80		179		(28)		393
Total other comprehensive income (loss), net of tax	$	81	$	197	$	(28)	$	442
Comprehensive income	$	773	$	1,013	$	1,994	$	2,237

See accompanying notes to Consolidated Financial Statements.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS

	September 30		December 31
	2023		2022
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	1,860	$	1,844
Marketable securities	76		84
Accounts receivable, less allowance of $187 ($154 in 2022)	3,276		3,565
Inventories:
Materials and supplies	1,299		1,006
Work in process	342		348
Finished goods	3,242		2,641
Total inventories	$	4,883	$	3,995
Prepaid expenses and other current assets	950		787
Total current assets	$	11,045	$	10,275
Property, plant and equipment:
Land, buildings and improvements	1,650		1,739
Machinery and equipment	4,505		4,066
Total property, plant and equipment	$	6,155	$	5,805
Less allowance for depreciation	3,049		2,835
Property, plant and equipment, net	$	3,106	$	2,970
Goodwill	15,138		14,880
Other intangibles, net	4,731		4,885
Noncurrent deferred income tax assets	1,406		1,410
Other noncurrent assets	2,616		2,464
Total assets	$	38,042	$	36,884
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	1,296	$	1,413
Accrued compensation	1,223		1,149
Income taxes	407		292
Dividends payable	285		284
Accrued product liabilities	224		230
Accrued expenses and other liabilities	1,715		1,744
Current maturities of debt	2,308		1,191
Total current liabilities	$	7,458	$	6,303
Long-term debt, excluding current maturities	10,382		11,857
Income taxes	465		641
Other noncurrent liabilities	1,832		1,467
Total liabilities	$	20,137	$	20,268
Shareholders' equity
Common stock, $0.10 par value	38		38
Additional paid-in capital	2,183		2,034
Retained earnings	15,933		14,765
Accumulated other comprehensive loss	(249)		(221)
Total shareholders' equity	$	17,905	$	16,616
Total liabilities and shareholders' equity	$	38,042	$	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 Third Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

	Three Months				Nine Months
	2023		2022		2023		2022
Common stock shares outstanding (in millions)
Beginning	379.8		378.3		378.7		377.5
Issuance of common stock under stock compensation and benefit plans	0.1		0.1		1.2		0.9
Ending	379.9		378.4		379.9		378.4
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	$	2,127	$	1,989	$	2,034	$	1,890
Issuance of common stock under stock compensation and benefit plans	4		6		(16)		(2)
Share-based compensation	52		33		165		140
Ending	$	2,183	$	2,028	$	2,183	$	2,028
Retained earnings
Beginning	$	15,526	$	13,933	$	14,765	$	13,480
Net earnings	692		816		2,022		1,795
Cash dividends declared	(285)		(263)		(854)		(789)
Ending	$	15,933	$	14,486	$	15,933	$	14,486
Accumulated other comprehensive income (loss)
Beginning	$	(330)	$	(286)	$	(221)	$	(531)
Other comprehensive income (loss)	81		197		(28)		442
Ending	$	(249)	$	(89)	$	(249)	$	(89)
Total shareholders' equity	$	17,905	$	16,463	$	17,905	$	16,463

See accompanying notes to Consolidated Financial Statements.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months
	2023		2022
Operating activities
Net earnings	$	2,022	$	1,795
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	292		276
Amortization of intangible assets	486		469
Asset impairments	12		18
Share-based compensation	165		140
Recall charges, net	12		14
Sale of inventory stepped-up to fair value at acquisition	—		12
Changes in operating assets and liabilities:
Accounts receivable	266		(186)
Inventories	(922)		(754)
Accounts payable	(118)		111
Accrued expenses and other liabilities	165		5
Recall-related payments	(28)		(26)
Income taxes	(69)		(262)
Other, net	(100)		9
Net cash provided by operating activities	$	2,183	$	1,621
Investing activities
Acquisitions, net of cash acquired	(390)		(2,563)
Purchases of marketable securities	(41)		(43)
Proceeds from sales of marketable securities	49		40
Purchases of property, plant and equipment	(430)		(400)
Proceeds from settlement of net investment hedges	—		197
Other investing, net	2		7
Net cash used in investing activities	$	(810)	$	(2,762)
Financing activities
Proceeds (payments) on short-term borrowings, net	540		(376)
Proceeds from issuance of long-term debt	—		1,500
Payments on long-term debt	(852)		(502)
Payments of dividends	(854)		(788)
Cash paid for taxes from withheld shares	(121)		(89)
Other financing, net	(21)		(48)
Net cash provided by (used in) financing activities	$	(1,308)	$	(303)
Effect of exchange rate changes on cash and cash equivalents	(49)		(80)
Change in cash and cash equivalents	$	16	$	(1,524)
Cash and cash equivalents at beginning of period	1,844		2,944
Cash and cash equivalents at end of period	$	1,860	$	1,420

See accompanying notes to Consolidated Financial Statements.

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

STRYKER CORPORATION 2023 Third 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 September 30, 2023 and the results of operations for the three and nine 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 $84 and $72 for the three months 2023 and 2022 and $252 and $218 for the nine months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months				Nine Months
	2023		2022		2023		2022
MedSurg and Neurotechnology:
Instruments	$	628	$	535	$	1,833	$	1,626
Endoscopy	738		662		2,141		1,946
Medical	798		765		2,417		2,095
Neurovascular	311		294		906		901
Neuro Cranial	384		332		1,112		992
	$	2,859	$	2,588	$	8,409	$	7,560
Orthopaedics and Spine:
Knees	$	515	$	481	$	1,643	$	1,445
Hips	362		347		1,130		1,038
Trauma and Extremities	752		672		2,287		2,033
Spine	291		280		871		849
Other	130		111		343		322
	$	2,050	$	1,891	$	6,274	$	5,687
Total	$	4,909	$	4,479	$	14,683	$	13,247

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	503	$	125	$	425	$	110
Endoscopy	610		128		551		111
Medical	660		138		625		140
Neurovascular	120		191		110		184
Neuro Cranial	315		69		274		58
	$	2,208	$	651	$	1,985	$	603
Orthopaedics and Spine:
Knees	$	385	$	130	$	365	$	116
Hips	231		131		225		122
Trauma and Extremities	550		202		494		178
Spine	217		74		206		74
Other	87		43		85		26
	$	1,470	$	580	$	1,375	$	516
Total	$	3,678	$	1,231	$	3,360	$	1,119

Net Sales by Geography
	Nine Months 2023				Nine Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	1,465	$	368	$	1,290	$	336
Endoscopy	1,742		399		1,585		361
Medical	1,954		463		1,686		409
Neurovascular	361		545		333		568
Neuro Cranial	910		202		819		173
	$	6,432	$	1,977	$	5,713	$	1,847
Orthopaedics and Spine:
Knees	$	1,207	$	436	$	1,078	$	367
Hips	716		414		657		381
Trauma and Extremities	1,663		624		1,470		563
Spine	650		221		615		234
Other	233		110		243		79
	$	4,469	$	1,805	$	4,063	$	1,624
Total	$	10,901	$	3,782	$	9,776	$	3,471

            

Contract Assets and Liabilities

On September 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 $788 and $741 on September 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.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

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

	September 30
	2023
Beginning contract liabilities	$	741
Revenue recognized from beginning of year contract liabilities	(306)
Net advance consideration received during the period	353
Ending contract liabilities	$	788

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

Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	28	$	54	$	(411)	$	(330)
OCI	1		(1)		11		133		144
Income taxes	—		1		(2)		(47)		(48)
Reclassifications to:
Cost of sales	—		—		(7)		—		(7)
Other (income) expense, net	(1)		(1)		(2)		(8)		(12)
Income taxes	—		—		2		2		4
Net OCI	—		(1)		2		80		81
Ending	$	(1)	$	27	$	56	$	(331)	$	(249)

Three Months 2022	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	(148)	$	65	$	(202)	$	(286)
OCI	—		11		19		304		334
Income taxes	—		(3)		(1)		(119)		(123)
Reclassifications to:
Cost of sales	—		—		(7)		—		(7)
Other (income) expense, net	—		3		(2)		(8)		(7)
Income taxes	—		(1)		(1)		2		—
Net OCI	—		10		8		179		197
Ending	$	(1)	$	(138)	$	73	$	(23)	$	(89)

Nine Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	31	$	52	$	(303)	$	(221)
OCI	—		2		38		10		50
Income taxes	—		(4)		(8)		(19)		(31)
Reclassifications to:
Cost of sales	—		—		(29)		—		(29)
Other (income) expense, net	—		(3)		(4)		(25)		(32)
Income taxes	—		1		7		6		14
Net OCI	—		(4)		4		(28)		(28)
Ending	$	(1)	$	27	$	56	$	(331)	$	(249)

Nine Months 2022	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	—	$	(155)	$	40	$	(416)	$	(531)
OCI	(1)		15		55		658		727
Income taxes	—		(3)		(7)		(242)		(252)
Reclassifications to:
Cost of sales	—		—		(10)		—		(10)
Other (income) expense, net	—		7		(4)		(30)		(27)
Income taxes	—		(2)		(1)		7		4
Net OCI	(1)		17		33		393		442
Ending	$	(1)	$	(138)	$	73	$	(23)	$	(89)

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

September 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	838	$	1,583	$	4,726	$	7,147
Maximum term in years							3.1
Fair value:
Other current assets	$	31	$	95	$	86	$	212
Other noncurrent assets	1		11		—		12
Other current liabilities	(8)		—		(6)		(14)
Other noncurrent liabilities	(1)		(12)		—		(13)
Total fair value	$	23	$	94	$	80	$	197

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 September 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 €4.9 billion and €4.4 billion at September 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 $42 in the nine months 2023.

Net Currency Exchange Rate Gains (Losses)

Derivative		Three Months				Nine Months
instrument:	Recorded in:	2023		2022		2023		2022
Cash Flow	Cost of sales	$	7	$	7	$	29	$	10
Net Investment	Other income (expense), net	8		8		25		30
Non-Designated	Other income (expense), net	4		(1)		13		2
	Total	$	19	$	14	$	67	$	42

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

Pretax gains (losses) on derivatives designated as cash flow hedges of $35 and net investment hedges of $31 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months of September 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 September 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	September		December
	2023		2022
Cash and cash equivalents	$	1,860	$	1,844
Trading marketable securities	189		166
Level 1 - Assets	$	2,049	$	2,010
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	38	$	42
Foreign government debt securities	—		1
United States agency debt securities	5		3
United States treasury debt securities	32		36
Certificates of deposit	1		2
Total available-for-sale marketable securities	$	76	$	84
Foreign currency exchange forward contracts	224		119
Level 2 - Assets	$	300	$	203
Total assets measured at fair value	$	2,349	$	2,213

Liabilities Measured at Fair Value	September		December
	2023		2022
Deferred compensation arrangements	$	189	$	166
Level 1 - Liabilities	$	189	$	166
Foreign currency exchange forward contracts	$	27	$	102
Level 2 - Liabilities	$	27	$	102
Contingent consideration:
Beginning	$	121	$	306
Additions	192		1
Change in estimate and foreign exchange	(8)		(137)
Settlements	(22)		(49)
Ending	$	283	$	121
Level 3 - Liabilities	$	283	$	121
Total liabilities measured at fair value	$	499	$	389

Fair Value of Available for Sale Securities by Maturity
	September		December
	2023		2022
Due in one year or less	$	43	$	53
Due after one year through three years	$	33	$	31

On September 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 $15 and $26 in the three months and $40 and $61 in the nine 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.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

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 $198, 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	September 30			December 31
	2023			2022
Right-of-use assets	$	491		$	473
Lease liabilities, current	$	130		$	121
Lease liabilities, non-current	$	369		$	357
Other information:
Weighted-average remaining lease term (years)	5.5			5.5
Weighted-average discount rate	3.73		%	3.22		%

	Three Months				Nine Months
	2023		2022		2023		2022
Operating lease cost	$	48	$	37	$	127	$	110

NOTE 7 - ACQUISITIONS

We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. In the nine 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 nine 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	13		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
$	159	$	607	$	590	$	533	$	512

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 September 30, 2023.

In August 2023 we repaid the remaining balance of $650 on the $1.5 billion term loan scheduled to mature on February 22, 2025. We also issued €500 of floating rate senior notes due November 16, 2024. The notes bear interest at a base rate based on the three-month Euro Interbank Offered Rate (EURIBOR) plus 0.3%. The notes are callable at February 16, 2024, May 16, 2024 or October 16, 2024 either by us or at the option of the notes holders. These notes are classified within current maturities of debt on our Consolidated Balance Sheet as of September 30, 2023.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

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 September 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			September		December
			2023		2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	580	$	585
	0.600%	December 1, 2023	600		599
	3.375%	May 15, 2024	598		596
	Various	November 16, 2024	527		—
	0.250%	December 3, 2024	895		903
	1.150%	June 15, 2025	648		647
	3.375%	November 1, 2025	749		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	788		795
	3.650%	March 7, 2028	598		597
	0.750%	March 1, 2029	841		848
	1.950%	June 15, 2030	992		991
	2.625%	November 30, 2030	679		684
	1.000%	December 3, 2031	783		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			—		850
Other			3		7
Total debt			$	12,690	$	13,048
Less current maturities			2,308		1,191
Total long-term debt			$	10,382	$	11,857
			September		December
			2023		2022
Unamortized debt issuance costs			$	45	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,333	$	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 20.4% and 17.4% in the three and nine months 2023 and 0.0% and 6.6% in the three and nine months 2022. The effective tax rates for the three and nine months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. The effective tax rates for the three and nine months 2022 also reflect income tax benefits of $162 due to the effective settlement of the United States federal income tax audit for years 2014 through 2018. In addition, the effective tax rate for the nine months 2022 reflects 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				Nine Months
	2023		2022		2023		2022
MedSurg and Neurotechnology	$	2,859	$	2,588	$	8,409	$	7,560
Orthopaedics and Spine	2,050		1,891		6,274		5,687
Net sales	$	4,909	$	4,479	$	14,683	$	13,247
MedSurg and Neurotechnology	$	859	$	611	$	2,266	$	1,870
Orthopaedics and Spine	499		534		1,701		1,616
Segment operating income	$	1,358	$	1,145	$	3,967	$	3,486
Items not allocated to segments:
Corporate and other	$	(209)	$	(144)	$	(596)	$	(488)
Acquisition and integration-related costs	1		78		(7)		(108)
Amortization of intangible assets	(164)		(159)		(486)		(469)
Structural optimization and other special charges	(28)		(58)		(142)		(229)
Medical device regulations	(19)		(38)		(74)		(98)
Recall-related matters	(9)		4		(12)		(14)
Regulatory and legal matters	1		(20)		(19)		(53)
Consolidated operating income	$	931	$	808	$	2,631	$	2,027

There were no significant changes to total assets by segment from the 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 Third 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 conflicts in Russia and Ukraine and the Middle East 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, Import Purchase Evaluation and Anti-Corruption Campaign

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, certain neurovascular products in the fourth quarter 2022 and the first nine months of 2023 and for the renewal of trauma products in the third quarter 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 fourth 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. Additionally, China's National Health Commission has launched an anti-corruption campaign focused on investigating government officials and individuals employed by state-owned entities and public institutions in the healthcare sector. We have seen some limitations to physician and surgeon access, but our business has not been significantly impacted. Our business in China represented approximately 1.9% of our revenues in the nine months 2023.

Overview of the Three and Nine Months

In the three months 2023 we achieved sales growth of 9.6% from 2022. Excluding the impact of acquisitions and divestitures sales grew 9.2% in constant currency. We reported operating income margin of 19.0%, net earnings of $692 and net earnings per diluted share of $1.80. Excluding the impact of certain items, adjusted operating income margin(1) increased by 110 basis points to 23.4%, with adjusted net earnings(1) of $944 and adjusted net earnings per diluted share(1) of $2.46, an increase of 16.0% from 2022.

In the nine months 2023 we achieved sales growth of 10.8% from 2022. Excluding the impact of acquisitions and divestitures sales grew 11.5% in constant currency. We reported operating income margin of 17.9%, net earnings of $2,022 and net earnings per diluted share of $5.27. Excluding the impact of certain items, adjusted operating income margin(1) increased by 40 basis points to 23.0%, with adjusted net earnings(1) of $2,740 and adjusted net earnings per diluted share(1) of $7.14, an increase of 12.6% from 2022.

Recent Developments

In May 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.

In August 2023 we repaid the remaining balance of $650 on the $1.5 billion term loan scheduled to mature on February 22, 2025 and issued €500 of floating rate senior notes due November 16, 2024. The notes bear interest at a base rate based on the three-month Euro Interbank Offered Rate (EURIBOR) plus 0.3%.

(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 Third Quarter Form 10-Q

CONSOLIDATED RESULTS OF OPERATIONS
	Three Months										Nine Months
					Percent Net Sales				Percentage						Percent Net Sales				Percentage
	2023		2022		2023		2022		Change		2023		2022		2023		2022		Change
Net sales	$	4,909	$	4,479	100.0	%	100.0	%	9.6	%	$	14,683	$	13,247	100.0	%	100.0	%	10.8	%
Gross profit	3,158		2,782		64.3		62.1		13.5		9,355		8,342		63.7		63.0		12.1
Research, development and engineering expenses	353		364		7.2		8.1		(3.0)		1,038		1,128		7.1		8.5		(8.0)
Selling, general and administrative expenses	1,701		1,455		34.7		32.5		16.9		5,188		4,704		35.3		35.5		10.3
Recall charges, net	9		(4)		0.2		(0.1)		(325.0)		12		14		0.1		0.1		(14.3)
Amortization of intangible assets	164		159		3.3		3.5		3.1		486		469		3.3		3.5		3.6
Other income (expense), net	(62)		8		(1.3)		0.2		nm		(184)		(105)		(1.3)		(0.8)		75.2
Income taxes	177		—		nm		nm		nm		425		127		nm		nm		234.6
Net earnings	$	692	$	816	14.1	%	18.2	%	(15.2)	%	$	2,022	$	1,795	13.8	%	13.6	%	12.6	%
Net earnings per diluted share	$	1.80	$	2.14					(15.9)	%	$	5.27	$	4.70					12.1	%
Adjusted net earnings per diluted share(1)	$	2.46	$	2.12					16.0	%	$	7.14	$	6.34					12.6	%

nm - not meaningful

Geographic and Segment Net Sales	Three Months								Nine Months
					Percentage Change								Percentage Change
	2023		2022		As Reported		Constant Currency		2023		2022		As Reported		Constant Currency
Geographic:
United States	$	3,678	$	3,360	9.5	%	9.5	%	$	10,901	$	9,776	11.5	%	11.5	%
International	1,231		1,119		10.0		8.9		3,782		3,471		9.0		12.2
Total	$	4,909	$	4,479	9.6	%	9.3	%	$	14,683	$	13,247	10.8	%	11.7	%
Segment:
MedSurg and Neurotechnology	$	2,859	$	2,588	10.5	%	10.3	%	$	8,409	$	7,560	11.2	%	12.1	%
Orthopaedics and Spine	2,050		1,891		8.4		8.0		6,274		5,687		10.3		11.1
Total	$	4,909	$	4,479	9.6	%	9.3	%	$	14,683	$	13,247	10.8	%	11.7	%

Supplemental Net Sales Growth Information
	Three Months														Nine 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	$	628	$	535	17.6	%	17.1	%	18.7	%	13.3	%	11.1	%	$	1,833	$	1,626	12.8	%	13.4	%	13.6	%	9.6	%	12.5	%
Endoscopy	738		662		11.3		11.3		10.6		14.7		14.5		2,141		1,946		10.0		10.6		9.9		10.4		14.0
Medical	798		765		4.3		4.0		5.7		(2.0)		(3.4)		2,417		2,095		15.4		15.9		15.9		13.1		16.1
Neurovascular	311		294		5.9		6.5		8.7		4.2		5.3		906		901		0.6		3.1		8.3		(4.0)		(0.1)
Neuro Cranial	384		332		15.5		15.5		14.5		20.4		19.8		1,112		992		12.1		12.7		11.1		16.8		20.8
	$	2,859	$	2,588	10.5	%	10.3	%	11.2	%	7.9	%	7.4	%	$	8,409	$	7,560	11.2	%	12.1	%	12.6	%	7.0	%	10.5	%
Orthopaedics and Spine:
Knees	$	515	$	481	7.1	%	6.9	%	5.3	%	12.8	%	12.0	%	$	1,643	$	1,445	13.7	%	14.5	%	11.9	%	19.1	%	22.5	%
Hips	362		347		4.5		4.4		3.0		7.1		6.8		1,130		1,038		8.9		10.4		9.1		8.4		12.6
Trauma and Extremities	752		672		11.9		10.9		11.5		13.0		9.3		2,287		2,033		12.5		13.0		13.2		10.8		12.5
Spine	291		280		4.1		3.3		5.4		0.5		(2.7)		871		849		2.6		3.1		5.6		(5.3)		(3.9)
Other	130		111		16.4		17.8		1.8		65.2		70.7		343		322		6.1		8.1		(4.3)		38.2		47.6
	$	2,050	$	1,891	8.4	%	8.0	%	6.9	%	12.4	%	10.6	%	$	6,274	$	5,687	10.3	%	11.1	%	10.0	%	11.1	%	14.1	%
Total	$	4,909	$	4,479	9.6	%	9.3	%	9.5	%	10.0	%	8.9	%	$	14,683	$	13,247	10.8	%	11.7	%	11.5	%	9.0	%	12.2	%

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 $84 and $72 for the three months 2023 and 2022 and $252 and $218 for the nine months 2023 and 2022. We have reflected these changes in all historical periods presented.

Consolidated Net Sales

Consolidated net sales increased 9.6% in the three months 2023 as reported and 9.3% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.3%. Excluding the 0.1% impact of acquisitions and divestitures, net sales in constant currency increased by 8.9% from increased unit volume and 0.3% 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 10.8% in the nine months 2023 as reported and 11.7% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.9%. Excluding the 0.2% impact of acquisitions and divestitures, net sales in constant currency increased by 11.0% from increased unit

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

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.

MedSurg and Neurotechnology Net Sales

MedSurg and Neurotechnology net sales increased 10.5% in the three months 2023 as reported and 10.3% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.2%. Excluding the 0.2% impact of acquisitions and divestitures, net sales in constant currency increased by 8.7% 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 11.2% in the nine months 2023 as reported and 12.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.9%. Excluding the 0.3% impact of acquisitions and divestitures, net sales in constant currency increased by 10.2% 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 8.4% in the three months 2023 as reported and 8.0% in constant currency, as foreign currency exchange rates positively impacted net sales by 0.4%. Net sales in constant currency increased 9.1% from increased unit volume partially offset by 1.1% from lower prices. The unit volume increase was due to higher shipments across all Orthopaedics and Spine businesses.

Orthopaedics and Spine net sales increased 10.3% in the nine months 2023 as reported and 11.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.8%. Net sales in constant currency increased 12.0% from increased unit volume partially offset by 0.9% from lower prices. The unit volume increase was due to higher shipments across all Orthopaedics and Spine businesses.

Gross Profit

Gross profit was $3,158 and $2,782 in the three months 2023 and 2022. The key components of the change were:

	Gross Profit Percent Net Sales
Three Months 2022	62.1	%
Sales pricing	10 bps
Volume and mix	90 bps
Manufacturing and supply chain costs	120 bps
Three Months 2023	64.3	%

Gross profit as a percentage of net sales in the three months 2023 increased to 64.3% from 62.1% in 2022 due to favorable volume and lower manufacturing and supply chain costs primarily due to supply chain challenges impacting the capital products in our MedSurg businesses in the three months 2022.

Gross profit was $9,355 and $8,342 in the nine months 2023 and 2022. The key components of the change were:

	Gross Profit Percent Net Sales
Nine Months 2022	63.0	%
Sales pricing	20 bps
Volume and mix	100 bps
Manufacturing and supply chain costs	(60) bps
Inventory stepped up to fair value	10 bps
Nine Months 2023	63.7	%

Gross profit as a percentage of net sales in the nine months 2023 increased to 63.7% from 63.0% in 2022 due to higher prices and favorable volume 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 nine 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 $11 or 3.0% in the three months 2023 and decreased as a percentage of net sales to 7.2% from 8.1% in 2022, primarily due to increased costs for product launches and higher spend related to the new medical device regulations in the European Union in the three months 2022.

Research, development and engineering expenses decreased $90 or 8.0% in the nine months 2023 and decreased as a percentage of net sales to 7.1% from 8.5% in 2022, primarily due to increased costs for product launches, the write-off of certain intangible assets and higher spend related to the new medical device regulations in the European Union in the nine months 2022.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $246 or 16.9% in the three months 2023 and increased as a percentage of net sales to 34.7% from 32.5% 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 benefit of a reduction of $110 in the fair value of contingent consideration based on our determination 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.

Selling, general and administrative expenses increased $484 or 10.3% in the nine months 2023 and decreased as a percentage of net sales to 35.3% from 35.5% in 2022. The increase in selling, general and administrative expenses in the nine months 2023 was primarily due to disciplined increases in spend and investments to support our growth. Expenses as a percentage of net sales in the nine months 2022 included the impact of $132 of charges for share-based awards for Vocera employees that vested upon our acquisition, offset by the benefit of the reduction in fair value of contingent consideration described above.

Recall Charges, Net

Recall charges, net were a charge of $9 and credit of $4 in the three months and charges of $12 and $14 in the nine months 2023 and 2022. Charges in the three and nine months 2023 were primarily related to LFIT Anatomic CoCr V40 Femoral Heads. Charges in the nine months 2022 were primarily 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 $164 and $159 in the three months and $486 and $469 in the nine months 2023 and 2022. Refer to Note 7 to our Consolidated Financial Statements for further information.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

Operating Income

Operating income was $931 and $808 in the three months 2023 and 2022. Operating income as a percentage of net sales in the three months 2023 increased to 19.0% from 18.0% in 2022. Refer to the comments above for discussion of the primary drivers of the change.

Operating income was $2,631 and $2,027 in the nine months 2023 and 2022. Operating income as a percentage of net sales in the nine months 2023 increased to 17.9% from 15.3% 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 30.0% in the three months 2023 from 23.6% in 2022. Orthopaedics and Spine operating income as a percentage of net sales decreased to 24.3% in the three months 2023 from 28.2% in 2022. The key components of the change were:

	Operating Income Percent Net Sales
	MedSurg and Neurotechnology		Orthopaedics and Spine
Three Months 2022	23.6	%	28.2	%
Sales pricing	110 bps		(80) bps
Volume	350 bps		440 bps
Manufacturing and supply chain costs	500 bps		(280) bps
Research, development and engineering expenses	0 bps		(80) bps
Selling, general and administrative expenses	(320) bps		(390) bps
Three Months 2023	30.0	%	24.3	%

The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the three months was primarily driven by higher unit volumes and lower manufacturing and supply chain costs due to supply chain challenges impacting the capital products in our MedSurg businesses in the three months 2022 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 driven 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 increased inventory reserves partially offset by higher unit volumes.

MedSurg and Neurotechnology operating income as a percentage of net sales increased to 26.9% in the nine months 2023 from 24.7% in 2022. Orthopaedics and Spine operating income as a percentage of net sales decreased to 27.1% in the nine months 2023 from 28.4% in 2022. The key components of the change were:

	Operating Income Percent Net Sales
	MedSurg and Neurotechnology		Orthopaedics and Spine
Nine Months 2022	24.7	%	28.4	%
Sales pricing	120 bps		(60) bps
Volume	400 bps		550 bps
Manufacturing and supply chain costs	60 bps		(150) bps
Research, development and engineering expenses	0 bps		(20) bps
Selling, general and administrative expenses	(360) bps		(450) bps
Nine Months 2023	26.9	%	27.1	%

The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the nine months was primarily driven 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.

The decrease in Orthopaedics and Spine operating income as a percentage of net sales for the nine months was primarily driven 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.

Other Income (Expense), Net

Other income (expense), net was ($62) and $8 in the three months and ($184) and ($105) in the nine months 2023 and 2022. The increase in net expense in the three months 2023 was primarily due to higher interest expense and the release of accrued interest of $50 in the three months 2022 related to the effective settlement of the United States federal income tax audit for years 2014 through 2018. The increase in net expense in the nine months 2023 was primarily due to foreign currency fluctuations, higher interest expense and the release of accrued interest of $50 in the nine months 2022 related to the effective settlement of the United States federal income tax audit for years 2014 through 2018, partially offset by higher interest income.

Income Taxes

Our effective tax rates were 20.4% and 17.4% in the three and nine months 2023 and 0.0% and 6.6% in the three and nine months 2022. The effective tax rates for the three and nine months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. The effective tax rates for the three and nine months 2022 also reflect income tax benefits of $162 due to the effective settlement of the United States federal income tax audit for years 2014 through 2018. In addition, the effective tax rate for the nine months 2022 reflects 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 decreased to $692 or $1.80 per diluted share in the three months 2023 from $816 or $2.14 per diluted share in 2022. Adjusted net earnings per diluted share(1) was $2.46 in three months 2023, an increase of 16.0% from 2022.

Net earnings increased to $2,022 or $5.27 per diluted share in the nine months 2023 from $1,795 or $4.70 per diluted share in 2022. Adjusted net earnings per diluted share(1) was $7.14 in the nine months 2023, an increase of 12.6% from 2022.

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

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 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 Third 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	$	3,158		$	1,701		$	353		$	931		$	(62)		$	177	$	692		20.4	%	$	1.80
Reported percent net sales	64.3		%	34.7		%	7.2		%	19.0		%	(1.3)		%	nm		14.1		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			1			—			(1)			—			(28)		27			(3.1)		0.07
Amortization of purchased intangible assets	—			—			—			164			—			36		128			1.6		0.34
Structural optimization and other special charges (b)	19			(9)			—			28			—			7		21			0.3		0.06
Medical device regulations (c)	1			—			(18)			19			—			4		15			0.2		0.04
Recall-related matters (d)	—			—			—			9			—			2		7			0.1		0.01
Regulatory and legal matters (e)	—			1			—			(1)			—			1		(2)			0.1		—
Tax matters (f)	—			—			—			—			1			(55)		56			(6.4)		0.14
Adjusted	$	3,178		$	1,694		$	335		$	1,149		$	(61)		$	144	$	944		13.2	%	$	2.46
Adjusted percent net sales	64.7		%	34.5		%	6.8		%	23.4		%	(1.2)		%	nm		19.2		%

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	$	2,782		$	1,455		$	364		$	808		$	8		$	—	$	816		—	%	$	2.14
Reported percent net sales	62.1		%	32.5		%	8.1		%	18.0		%	0.2		%	nm		18.2		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			78			—			(78)			—			4		(82)			2.0		(0.21)
Amortization of purchased intangible assets	—			—			—			159			—			27		132			0.5		0.34
Structural optimization and other special charges (b)	19			(31)			(8)			58			—			8		50			—		0.13
Medical device regulations (c)	1			2			(39)			38			—			6		32			0.1		0.08
Recall-related matters (d)	—			—			—			(4)			—			—		(4)			—		(0.01)
Regulatory and legal matters (e)	—			(20)			—			20			—			5		15			0.2		0.04
Tax matters (f)	—			—			—			—			(62)			87		(149)			11.7		(0.39)
Adjusted	$	2,802		$	1,484		$	317		$	1,001		$	(54)		$	137	$	810		14.5	%	$	2.12
Adjusted percent net sales	62.6		%	33.1		%	7.1		%	22.3		%	(1.2)		%	nm		18.1		%

(a)	Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ($2 in 2023, $2 in 2022), employee retention and workforce reductions ($3 in 2023, $11 in 2022), changes in the fair value of contingent consideration (($4) in 2023, ($107) in 2022), manufacturing integration costs ($0 in 2023, $6 in 2022), adjustments to acquisition-related tax provisions (charges of $28 included in Income Taxes for 2023, $0 for 2022) and other integration-related activities such as deal costs and costs associated with legal entity rationalization (($2) in 2023, $10 in 2022).
(b)	Charges represent the costs associated with employee retention and workforce reductions (($5) in 2023, $7 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, $16 in 2022), product line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs) ($7 in 2023, $15 in 2022), certain long-lived and intangible asset write-offs and impairments ($9 in 2023, $12 in 2022) and other charges ($5 in 2023, $8 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 $44 in 2023 and $46 in 2022) and certain tax audit settlements ($0 for 2023, benefit of $45 included in Other Income (Expense) and benefit of $162 included in Income Taxes for 2022).

Nine 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	$	9,355		$	5,188		$	1,038		$	2,631		$	(184)		$	425	$	2,022		17.4	%	$	5.27
Reported percent net sales	63.7		%	35.3		%	7.1		%	17.9		%	(1.3)		%	nm		13.8		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			(7)			—			7			—			(25)		32			(1.0)		0.08
Amortization of purchased intangible assets	—			—			—			486			—			104		382			1.5		1.00
Structural optimization and other special charges (b)	30			(112)			—			142			—			32		110			0.5		0.29
Medical device regulations (c)	1			—			(73)			74			—			17		57			0.3		0.15
Recall-related matters (d)	—			—			—			12			—			3		9			—		0.02
Regulatory and legal matters (e)	—			(19)			—			19			—			4		15			—		0.04
Tax matters (f)	—			—			—			—			(8)			(121)		113			(4.9)		0.29
Adjusted	$	9,386		$	5,050		$	965		$	3,371		$	(192)		$	439	$	2,740		13.8	%	$	7.14
Adjusted percent net sales	63.9		%	34.4		%	6.6		%	23.0		%	(1.3)		%	nm		18.7		%

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

STRYKER CORPORATION 2023 Third Quarter Form 10-Q

Nine 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	$	8,342		$	4,704		$	1,128		$	2,027		$	(105)		$	127	$	1,795		6.6	%	$	4.70
Reported percent net sales	63.0		%	35.5		%	8.5		%	15.3		%	(0.8)		%	nm		13.6		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	12			—			—			12			—			3		9			—		0.02
Other acquisition and integration-related (a)	—			(96)			—			96			—			50		46			1.9		0.12
Amortization of purchased intangible assets	—			—			—			469			—			98		371			1.7		0.97
Structural optimization and other special charges (b)	29			(113)			(87)			229			—			39		190			0.4		0.50
Medical device regulations (c)	3			—			(95)			98			—			16		82			0.1		0.21
Recall-related matters (d)	—			—			—			14			—			4		10			0.1		0.03
Regulatory and legal matters (e)	—			(53)			—			53			—			14		39			0.3		0.10
Tax matters (f)	—			—			—			—			(74)			46		(120)			3.0		(0.31)
Adjusted	$	8,386		$	4,442		$	946		$	2,998		$	(179)		$	397	$	2,422		14.1	%	$	6.34
Adjusted percent net sales	63.3		%	33.5		%	7.1		%	22.6		%	(1.4)		%	nm		18.3		%

(a)	Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ($2 in 2023, $16 in 2022), employee retention and workforce reductions ($3 in 2023, $29 in 2022), changes in the fair value of contingent consideration (($7) in 2023, ($132) in 2022), manufacturing integration costs ($2 in 2023, $23 in 2022), stock compensation payments upon a change in control ($0 in 2023, $132 in 2022), adjustments to acquisition-related tax provisions (charges of $28 included in Income Taxes for 2023, $0 for 2022) and other integration-related activities such as deal costs and costs associated with legal entity rationalization ($7 in 2023, $28 in 2022).
(b)	Charges represent the costs associated with employee retention and workforce reductions ($63 in 2023, $36 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 ($36 in 2023, $62 in 2022), product line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs) ($16 in 2023, $7 in 2022), certain long-lived and intangible asset write-offs and impairments ($12 in 2023, $104 in 2022) and other charges ($15 in 2023, $20 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 $138 in 2023 and $138 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, benefit of $45 included in Other Income (Expense) and benefit of $162 included in Income Taxes 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

	Nine Months
	2023		2022
Net cash provided by (used in):
Operating activities	$	2,183	$	1,621
Investing activities	(810)		(2,762)
Financing activities	(1,308)		(303)
Effect of exchange rate changes on cash and cash equivalents	(49)		(80)
Change in cash and cash equivalents	$	16	$	(1,524)

Operating Activities

Cash provided by operating activities was $2,183 and $1,621 in the nine 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 $810 and $2,762 in the nine months 2023 and 2022. The nine months 2023 included cash paid for the Cerus acquisition and the nine months 2022 included cash paid for the Vocera acquisition partially offset by settlements of certain foreign currency forward contracts designated as net investment hedges. Refer to Note 7 to our Consolidated Financial Statements for further information on the Cerus and Vocera acquisitions.

Financing Activities

Cash used in financing activities was $1,308 and $303 in the nine months 2023 and 2022. Cash used in 2023 was primarily due to dividend payments of $854, repayments of $850 on the term loan used to fund the acquisition of Vocera and cash paid of $121 for taxes on withheld shares, partially offset by proceeds from the issuance of €500 of floating rate senior notes. Cash used in financing activities in 2022 was primarily due to $500 of

payments on the $1,500 term loan used to fund the acquisition of Vocera, dividend payments of $788, net repayments of $376 on short-term borrowings and cash paid of $89 for taxes on withheld shares.

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

Liquidity

Cash, cash equivalents and marketable securities were $1,936 and $1,928 on September 30, 2023 and December 31, 2022. Current assets exceeded current liabilities by $3,587 and $3,972 on September 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 28% on September 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 Third 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 September 30, 2023. Based on that evaluation, the Certifying Officers concluded the Company's disclosure controls and procedures were effective as of September 30, 2023.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial reporting during the nine 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, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

We issued 70 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 nine 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 September 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 Third Quarter Form 10-Q

ITEM 6. EXHIBITS

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 Third 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:	November 3, 2023	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair, Chief Executive Officer and President
Date:	November 3, 2023	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer

19

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 September 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:	November 3, 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 September 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:	November 3, 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 September 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:	November 3, 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 September 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:	November 3, 2023	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2023 shares
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	379,894,650
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
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 2023
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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Net sales	$ 4,909	$ 4,479	$ 14,683	$ 13,247
Cost of sales	1,751	1,697	5,328	4,905
Gross profit	3,158	2,782	9,355	8,342
Research, development and engineering expenses	353	364	1,038	1,128
Selling, general and administrative expenses	1,701	1,455	5,188	4,704
Recall charges, net	9	(4)	12	14
Amortization of intangible assets	164	159	486	469
Total operating expenses	2,227	1,974	6,724	6,315
Operating income	931	808	2,631	2,027
Other income (expense), net	(62)	8	(184)	(105)
Earnings before income taxes	869	816	2,447	1,922
Income taxes	177	0	425	127
Net earnings	$ 692	$ 816	$ 2,022	$ 1,795
Net earnings per share of common stock:
Basic (in dollars per share)	$ 1.82	$ 2.16	$ 5.33	$ 4.75
Diluted (in dollars per share)	$ 1.80	$ 2.14	$ 5.27	$ 4.70
Weighted-average shares outstanding (in millions):
Basic (in shares)	379.8	378.4	379.5	378.1
Effect of dilutive employee stock compensation (in shares)	4.2	3.4	4.2	4.1
Diluted (in shares)	384.0	381.8	383.7	382.2
Cash dividends declared per share of common stock (in dollars per share)	$ 0.75	$ 0.695	$ 2.25	$ 2.085

XML

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)(Parenthetical) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Anti-dilutive shares excluded from calculation of dilutive employee stock options (in shares)	0.0	5.0	0.0	4.2

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 692	$ 816	$ 2,022	$ 1,795
Other comprehensive income (loss), net of tax:
Marketable securities	0	0	0	(1)
Pension plans	(1)	10	(4)	17
Unrealized gains (losses) on designated hedges	2	8	4	33
Financial statement translation	80	179	(28)	393
Total other comprehensive income (loss), net of tax	81	197	(28)	442
Comprehensive income	$ 773	$ 1,013	$ 1,994	$ 2,237

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 1,860	$ 1,844
Marketable securities	76	84
Accounts receivable, less allowance of $187 ($154 in 2022)	3,276	3,565
Inventories:
Materials and supplies	1,299	1,006
Work in process	342	348
Finished goods	3,242	2,641
Total inventories	4,883	3,995
Prepaid expenses and other current assets	950	787
Total current assets	11,045	10,275
Property, plant and equipment:
Land, buildings and improvements	1,650	1,739
Machinery and equipment	4,505	4,066
Total property, plant and equipment	6,155	5,805
Less allowance for depreciation	3,049	2,835
Property, plant and equipment, net	3,106	2,970
Goodwill	15,138	14,880
Other intangibles, net	4,731	4,885
Noncurrent deferred income tax assets	1,406	1,410
Other noncurrent assets	2,616	2,464
Total assets	38,042	36,884
Current liabilities
Accounts payable	1,296	1,413
Accrued compensation	1,223	1,149
Income taxes	407	292
Dividends payable	285	284
Accrued product liabilities	224	230
Accrued expenses and other liabilities	1,715	1,744
Current maturities of debt	2,308	1,191
Total current liabilities	7,458	6,303
Long-term debt, excluding current maturities	10,382	11,857
Income taxes	465	641
Other noncurrent liabilities	1,832	1,467
Total liabilities	20,137	20,268
Shareholders' equity
Common stock, $0.10 par value	38	38
Additional paid-in capital	2,183	2,034
Retained earnings	15,933	14,765
Accumulated other comprehensive loss	(249)	(221)
Total shareholders' equity	17,905	16,616
Total liabilities and shareholders' equity	$ 38,042	$ 36,884

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 187	$ 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)		0.9
Issuance of common stock under stock compensation and benefit plans		$ 0	(2)
Share-based compensation			140
Net earnings	$ 1,795			1,795
Cash dividends declared				(789)
Other comprehensive income (loss)	442				442
Ending balance at Sep. 30, 2022	16,463	$ 38	2,028	14,486	(89)
Ending balance (in shares) at Sep. 30, 2022		378.4
Beginning balance at Jun. 30, 2022		$ 38	1,989	13,933	(286)
Beginning balance (in shares) at Jun. 30, 2022		378.3
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			33
Net earnings	816			816
Cash dividends declared				(263)
Other comprehensive income (loss)	197				197
Ending balance at Sep. 30, 2022	16,463	$ 38	2,028	14,486	(89)
Ending balance (in shares) at Sep. 30, 2022		378.4
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)		1.2
Issuance of common stock under stock compensation and benefit plans		$ 0	(16)
Share-based compensation			165
Net earnings	2,022			2,022
Cash dividends declared				(854)
Other comprehensive income (loss)	(28)				(28)
Ending balance at Sep. 30, 2023	17,905	$ 38	2,183	15,933	(249)
Ending balance (in shares) at Sep. 30, 2023		379.9
Beginning balance at Jun. 30, 2023		$ 38	2,127	15,526	(330)
Beginning balance (in shares) at Jun. 30, 2023		379.8
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	4
Share-based compensation			52
Net earnings	692			692
Cash dividends declared				(285)
Other comprehensive income (loss)	81				81
Ending balance at Sep. 30, 2023	$ 17,905	$ 38	$ 2,183	$ 15,933	$ (249)
Ending balance (in shares) at Sep. 30, 2023		379.9

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities
Net earnings	$ 2,022	$ 1,795
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	292	276
Amortization of intangible assets	486	469
Asset impairments	12	18
Share-based compensation	165	140
Recall charges, net	12	14
Sale of inventory stepped-up to fair value at acquisition	0	12
Changes in operating assets and liabilities:
Accounts receivable	266	(186)
Inventories	(922)	(754)
Accounts payable	(118)	111
Accrued expenses and other liabilities	165	5
Recall-related payments	(28)	(26)
Income taxes	(69)	(262)
Other, net	(100)	9
Net cash provided by operating activities	2,183	1,621
Investing activities
Acquisitions, net of cash acquired	(390)	(2,563)
Purchases of marketable securities	(41)	(43)
Proceeds from sales of marketable securities	49	40
Purchases of property, plant and equipment	(430)	(400)
Proceeds from settlement of net investment hedges	0	197
Other investing, net	2	7
Net cash used in investing activities	(810)	(2,762)
Financing activities
Proceeds (payments) on short-term borrowings, net	540	(376)
Proceeds from issuance of long-term debt	0	1,500
Payments on long-term debt	(852)	(502)
Payments of dividends	(854)	(788)
Cash paid for taxes from withheld shares	(121)	(89)
Other financing, net	(21)	(48)
Net cash provided by (used in) financing activities	(1,308)	(303)
Effect of exchange rate changes on cash and cash equivalents	(49)	(80)
Change in cash and cash equivalents	16	(1,524)
Cash and cash equivalents at beginning of period	1,844	2,944
Cash and cash equivalents at end of period	$ 1,860	$ 1,420

XML

Basis Of Presentation

9 Months Ended

Sep. 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 September 30, 2023 and the results of operations for the three and nine 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

9 Months Ended

Sep. 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 $84 and $72 for the three months 2023 and 2022 and $252 and $218 for the nine months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months				Nine Months
	2023		2022		2023		2022
MedSurg and Neurotechnology:
Instruments	$	628	$	535	$	1,833	$	1,626
Endoscopy	738		662		2,141		1,946
Medical	798		765		2,417		2,095
Neurovascular	311		294		906		901
Neuro Cranial	384		332		1,112		992
	$	2,859	$	2,588	$	8,409	$	7,560
Orthopaedics and Spine:
Knees	$	515	$	481	$	1,643	$	1,445
Hips	362		347		1,130		1,038
Trauma and Extremities	752		672		2,287		2,033
Spine	291		280		871		849
Other	130		111		343		322
	$	2,050	$	1,891	$	6,274	$	5,687
Total	$	4,909	$	4,479	$	14,683	$	13,247

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	503	$	125	$	425	$	110
Endoscopy	610		128		551		111
Medical	660		138		625		140
Neurovascular	120		191		110		184
Neuro Cranial	315		69		274		58
	$	2,208	$	651	$	1,985	$	603
Orthopaedics and Spine:
Knees	$	385	$	130	$	365	$	116
Hips	231		131		225		122
Trauma and Extremities	550		202		494		178
Spine	217		74		206		74
Other	87		43		85		26
	$	1,470	$	580	$	1,375	$	516
Total	$	3,678	$	1,231	$	3,360	$	1,119

Net Sales by Geography
	Nine Months 2023				Nine Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	1,465	$	368	$	1,290	$	336
Endoscopy	1,742		399		1,585		361
Medical	1,954		463		1,686		409
Neurovascular	361		545		333		568
Neuro Cranial	910		202		819		173
	$	6,432	$	1,977	$	5,713	$	1,847
Orthopaedics and Spine:
Knees	$	1,207	$	436	$	1,078	$	367
Hips	716		414		657		381
Trauma and Extremities	1,663		624		1,470		563
Spine	650		221		615		234
Other	233		110		243		79
	$	4,469	$	1,805	$	4,063	$	1,624
Total	$	10,901	$	3,782	$	9,776	$	3,471

            

Contract Assets and Liabilities

On September 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 $788 and $741 on September 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.

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Accumulated Other Comprehensive (Loss) Income (AOCI)

9 Months Ended

Sep. 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)	$	28	$	54	$	(411)	$	(330)
OCI	1		(1)		11		133		144
Income taxes	—		1		(2)		(47)		(48)
Reclassifications to:
Cost of sales	—		—		(7)		—		(7)
Other (income) expense, net	(1)		(1)		(2)		(8)		(12)
Income taxes	—		—		2		2		4
Net OCI	—		(1)		2		80		81
Ending	$	(1)	$	27	$	56	$	(331)	$	(249)

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Derivative Instruments

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

We use operational and economic hedges, foreign currency exchange forward contracts, net investment hedges (both derivative and non-derivative financial instruments) and interest rate derivative instruments to manage the impact of currency exchange and interest rate fluctuations on earnings, cash flow and equity. We do not enter into derivative instruments for speculative purposes. We are exposed to potential credit loss in the event of nonperformance by 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

September 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	838	$	1,583	$	4,726	$	7,147
Maximum term in years							3.1
Fair value:
Other current assets	$	31	$	95	$	86	$	212
Other noncurrent assets	1		11		—		12
Other current liabilities	(8)		—		(6)		(14)
Other noncurrent liabilities	(1)		(12)		—		(13)
Total fair value	$	23	$	94	$	80	$	197

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 September 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 €4.9 billion and €4.4 billion at September 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 $42 in the nine months 2023.

Net Currency Exchange Rate Gains (Losses)

Derivative		Three Months				Nine Months
instrument:	Recorded in:	2023		2022		2023		2022
Cash Flow	Cost of sales	$	7	$	7	$	29	$	10
Net Investment	Other income (expense), net	8		8		25		30
Non-Designated	Other income (expense), net	4		(1)		13		2
	Total	$	19	$	14	$	67	$	42

Pretax gains (losses) on derivatives designated as cash flow hedges of $35 and net investment hedges of $31 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months of September 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 September 30, 2023. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

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Fair Value Measurements

9 Months Ended

Sep. 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	September		December
	2023		2022
Cash and cash equivalents	$	1,860	$	1,844
Trading marketable securities	189		166
Level 1 - Assets	$	2,049	$	2,010
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	38	$	42
Foreign government debt securities	—		1
United States agency debt securities	5		3
United States treasury debt securities	32		36
Certificates of deposit	1		2
Total available-for-sale marketable securities	$	76	$	84
Foreign currency exchange forward contracts	224		119
Level 2 - Assets	$	300	$	203
Total assets measured at fair value	$	2,349	$	2,213

Liabilities Measured at Fair Value	September		December
	2023		2022
Deferred compensation arrangements	$	189	$	166
Level 1 - Liabilities	$	189	$	166
Foreign currency exchange forward contracts	$	27	$	102
Level 2 - Liabilities	$	27	$	102
Contingent consideration:
Beginning	$	121	$	306
Additions	192		1
Change in estimate and foreign exchange	(8)		(137)
Settlements	(22)		(49)
Ending	$	283	$	121
Level 3 - Liabilities	$	283	$	121
Total liabilities measured at fair value	$	499	$	389

Fair Value of Available for Sale Securities by Maturity
	September		December
	2023		2022
Due in one year or less	$	43	$	53
Due after one year through three years	$	33	$	31

On September 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 $15 and $26 in the three months and $40 and $61 in the nine 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.

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Contingencies and Commitments

9 Months Ended

Sep. 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 $198, 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	September 30			December 31
	2023			2022
Right-of-use assets	$	491		$	473
Lease liabilities, current	$	130		$	121
Lease liabilities, non-current	$	369		$	357
Other information:
Weighted-average remaining lease term (years)	5.5			5.5
Weighted-average discount rate	3.73		%	3.22		%

	Three Months				Nine Months
	2023		2022		2023		2022
Operating lease cost	$	48	$	37	$	127	$	110

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Acquisitions

9 Months Ended

Sep. 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 nine 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 nine 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	13		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
$	159	$	607	$	590	$	533	$	512

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Debt and Credit Facilities

9 Months Ended

Sep. 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 September 30, 2023.

In August 2023 we repaid the remaining balance of $650 on the $1.5 billion term loan scheduled to mature on February 22, 2025. We also issued €500 of floating rate senior notes due November 16, 2024. The notes bear interest at a base rate based on the three-month Euro Interbank Offered Rate (EURIBOR) plus 0.3%. The notes are callable at February 16, 2024, May 16, 2024 or October 16, 2024 either by us or at the option of the notes holders. These notes are classified within current maturities of debt on our Consolidated Balance Sheet as of September 30, 2023.

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 September 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			September		December
			2023		2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	580	$	585
	0.600%	December 1, 2023	600		599
	3.375%	May 15, 2024	598		596
	Various	November 16, 2024	527		—
	0.250%	December 3, 2024	895		903
	1.150%	June 15, 2025	648		647
	3.375%	November 1, 2025	749		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	788		795
	3.650%	March 7, 2028	598		597
	0.750%	March 1, 2029	841		848
	1.950%	June 15, 2030	992		991
	2.625%	November 30, 2030	679		684
	1.000%	December 3, 2031	783		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			—		850
Other			3		7
Total debt			$	12,690	$	13,048
Less current maturities			2,308		1,191
Total long-term debt			$	10,382	$	11,857
			September		December
			2023		2022
Unamortized debt issuance costs			$	45	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,333	$	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.

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Income Taxes	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXESOur effective tax rates were 20.4% and 17.4% in the three and nine months 2023 and 0.0% and 6.6% in the three and nine months 2022. The effective tax rates for the three and nine months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. The effective tax rates for the three and nine months 2022 also reflect income tax benefits of $162 due to the effective settlement of the United States federal income tax audit for years 2014 through 2018. In addition, the effective tax rate for the nine months 2022 reflects 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.

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Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

	Three Months				Nine Months
	2023		2022		2023		2022
MedSurg and Neurotechnology	$	2,859	$	2,588	$	8,409	$	7,560
Orthopaedics and Spine	2,050		1,891		6,274		5,687
Net sales	$	4,909	$	4,479	$	14,683	$	13,247
MedSurg and Neurotechnology	$	859	$	611	$	2,266	$	1,870
Orthopaedics and Spine	499		534		1,701		1,616
Segment operating income	$	1,358	$	1,145	$	3,967	$	3,486
Items not allocated to segments:
Corporate and other	$	(209)	$	(144)	$	(596)	$	(488)
Acquisition and integration-related costs	1		78		(7)		(108)
Amortization of intangible assets	(164)		(159)		(486)		(469)
Structural optimization and other special charges	(28)		(58)		(142)		(229)
Medical device regulations	(19)		(38)		(74)		(98)
Recall-related matters	(9)		4		(12)		(14)
Regulatory and legal matters	1		(20)		(19)		(53)
Consolidated operating income	$	931	$	808	$	2,631	$	2,027

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

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Basis Of Presentation (Policies)

9 Months Ended

Sep. 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.

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Revenue Recognition (Tables)

9 Months Ended

Sep. 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 $84 and $72 for the three months 2023 and 2022 and $252 and $218 for the nine months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months				Nine Months
	2023		2022		2023		2022
MedSurg and Neurotechnology:
Instruments	$	628	$	535	$	1,833	$	1,626
Endoscopy	738		662		2,141		1,946
Medical	798		765		2,417		2,095
Neurovascular	311		294		906		901
Neuro Cranial	384		332		1,112		992
	$	2,859	$	2,588	$	8,409	$	7,560
Orthopaedics and Spine:
Knees	$	515	$	481	$	1,643	$	1,445
Hips	362		347		1,130		1,038
Trauma and Extremities	752		672		2,287		2,033
Spine	291		280		871		849
Other	130		111		343		322
	$	2,050	$	1,891	$	6,274	$	5,687
Total	$	4,909	$	4,479	$	14,683	$	13,247

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	503	$	125	$	425	$	110
Endoscopy	610		128		551		111
Medical	660		138		625		140
Neurovascular	120		191		110		184
Neuro Cranial	315		69		274		58
	$	2,208	$	651	$	1,985	$	603
Orthopaedics and Spine:
Knees	$	385	$	130	$	365	$	116
Hips	231		131		225		122
Trauma and Extremities	550		202		494		178
Spine	217		74		206		74
Other	87		43		85		26
	$	1,470	$	580	$	1,375	$	516
Total	$	3,678	$	1,231	$	3,360	$	1,119

Net Sales by Geography
	Nine Months 2023				Nine Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	1,465	$	368	$	1,290	$	336
Endoscopy	1,742		399		1,585		361
Medical	1,954		463		1,686		409
Neurovascular	361		545		333		568
Neuro Cranial	910		202		819		173
	$	6,432	$	1,977	$	5,713	$	1,847
Orthopaedics and Spine:
Knees	$	1,207	$	436	$	1,078	$	367
Hips	716		414		657		381
Trauma and Extremities	1,663		624		1,470		563
Spine	650		221		615		234
Other	233		110		243		79
	$	4,469	$	1,805	$	4,063	$	1,624
Total	$	10,901	$	3,782	$	9,776	$	3,471

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

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

	September 30
	2023
Beginning contract liabilities	$	741
Revenue recognized from beginning of year contract liabilities	(306)
Net advance consideration received during the period	353
Ending contract liabilities	$	788

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

9 Months Ended

Sep. 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)	$	28	$	54	$	(411)	$	(330)
OCI	1		(1)		11		133		144
Income taxes	—		1		(2)		(47)		(48)
Reclassifications to:
Cost of sales	—		—		(7)		—		(7)
Other (income) expense, net	(1)		(1)		(2)		(8)		(12)
Income taxes	—		—		2		2		4
Net OCI	—		(1)		2		80		81
Ending	$	(1)	$	27	$	56	$	(331)	$	(249)

Reclassification out of Accumulated Other Comprehensive Income

Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	28	$	54	$	(411)	$	(330)
OCI	1		(1)		11		133		144
Income taxes	—		1		(2)		(47)		(48)
Reclassifications to:
Cost of sales	—		—		(7)		—		(7)
Other (income) expense, net	(1)		(1)		(2)		(8)		(12)
Income taxes	—		—		2		2		4
Net OCI	—		(1)		2		80		81
Ending	$	(1)	$	27	$	56	$	(331)	$	(249)

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

September 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	838	$	1,583	$	4,726	$	7,147
Maximum term in years							3.1
Fair value:
Other current assets	$	31	$	95	$	86	$	212
Other noncurrent assets	1		11		—		12
Other current liabilities	(8)		—		(6)		(14)
Other noncurrent liabilities	(1)		(12)		—		(13)
Total fair value	$	23	$	94	$	80	$	197

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				Nine Months
instrument:	Recorded in:	2023		2022		2023		2022
Cash Flow	Cost of sales	$	7	$	7	$	29	$	10
Net Investment	Other income (expense), net	8		8		25		30
Non-Designated	Other income (expense), net	4		(1)		13		2
	Total	$	19	$	14	$	67	$	42

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

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

Assets Measured at Fair Value	September		December
	2023		2022
Cash and cash equivalents	$	1,860	$	1,844
Trading marketable securities	189		166
Level 1 - Assets	$	2,049	$	2,010
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	38	$	42
Foreign government debt securities	—		1
United States agency debt securities	5		3
United States treasury debt securities	32		36
Certificates of deposit	1		2
Total available-for-sale marketable securities	$	76	$	84
Foreign currency exchange forward contracts	224		119
Level 2 - Assets	$	300	$	203
Total assets measured at fair value	$	2,349	$	2,213

Liabilities Measured at Fair Value	September		December
	2023		2022
Deferred compensation arrangements	$	189	$	166
Level 1 - Liabilities	$	189	$	166
Foreign currency exchange forward contracts	$	27	$	102
Level 2 - Liabilities	$	27	$	102
Contingent consideration:
Beginning	$	121	$	306
Additions	192		1
Change in estimate and foreign exchange	(8)		(137)
Settlements	(22)		(49)
Ending	$	283	$	121
Level 3 - Liabilities	$	283	$	121
Total liabilities measured at fair value	$	499	$	389

Investments Classified by Contractual Maturity Date

Fair Value of Available for Sale Securities by Maturity
	September		December
	2023		2022
Due in one year or less	$	43	$	53
Due after one year through three years	$	33	$	31

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Contingencies and Commitments (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Lease, Cost

Leases	September 30			December 31
	2023			2022
Right-of-use assets	$	491		$	473
Lease liabilities, current	$	130		$	121
Lease liabilities, non-current	$	369		$	357
Other information:
Weighted-average remaining lease term (years)	5.5			5.5
Weighted-average discount rate	3.73		%	3.22		%

	Three Months				Nine Months
	2023		2022		2023		2022
Operating lease cost	$	48	$	37	$	127	$	110

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Acquisitions (Tables)

9 Months Ended

Sep. 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	13		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
$	159	$	607	$	590	$	533	$	512

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Debt and Credit Facilities (Tables)

9 Months Ended

Sep. 30, 2023

Long-Term Debt, Unclassified [Abstract]

Schedule of Long-term Debt Instruments

Summary of Total Debt			September		December
			2023		2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	580	$	585
	0.600%	December 1, 2023	600		599
	3.375%	May 15, 2024	598		596
	Various	November 16, 2024	527		—
	0.250%	December 3, 2024	895		903
	1.150%	June 15, 2025	648		647
	3.375%	November 1, 2025	749		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	788		795
	3.650%	March 7, 2028	598		597
	0.750%	March 1, 2029	841		848
	1.950%	June 15, 2030	992		991
	2.625%	November 30, 2030	679		684
	1.000%	December 3, 2031	783		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			—		850
Other			3		7
Total debt			$	12,690	$	13,048
Less current maturities			2,308		1,191
Total long-term debt			$	10,382	$	11,857
			September		December
			2023		2022
Unamortized debt issuance costs			$	45	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,333	$	10,910

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Sales and Other Financial Information by Business Segment

	Three Months				Nine Months
	2023		2022		2023		2022
MedSurg and Neurotechnology	$	2,859	$	2,588	$	8,409	$	7,560
Orthopaedics and Spine	2,050		1,891		6,274		5,687
Net sales	$	4,909	$	4,479	$	14,683	$	13,247
MedSurg and Neurotechnology	$	859	$	611	$	2,266	$	1,870
Orthopaedics and Spine	499		534		1,701		1,616
Segment operating income	$	1,358	$	1,145	$	3,967	$	3,486
Items not allocated to segments:
Corporate and other	$	(209)	$	(144)	$	(596)	$	(488)
Acquisition and integration-related costs	1		78		(7)		(108)
Amortization of intangible assets	(164)		(159)		(486)		(469)
Structural optimization and other special charges	(28)		(58)		(142)		(229)
Medical device regulations	(19)		(38)		(74)		(98)
Recall-related matters	(9)		4		(12)		(14)
Regulatory and legal matters	1		(20)		(19)		(53)
Consolidated operating income	$	931	$	808	$	2,631	$	2,027

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Revenue Recognition - Disaggregated Sales Analysis (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Net sales	$ 4,909	$ 4,479	$ 14,683	$ 13,247
United States
Disaggregation of Revenue [Line Items]
Net sales	3,678	3,360	10,901	9,776
International
Disaggregation of Revenue [Line Items]
Net sales	1,231	1,119	3,782	3,471
Other MedSurg and Neurotechnology
Disaggregation of Revenue [Line Items]
Net sales	84	72	252	218
MedSurg and Neurotechnology
Disaggregation of Revenue [Line Items]
Net sales	2,859	2,588	8,409	7,560
MedSurg and Neurotechnology | United States
Disaggregation of Revenue [Line Items]
Net sales	2,208	1,985	6,432	5,713
MedSurg and Neurotechnology | International
Disaggregation of Revenue [Line Items]
Net sales	651	603	1,977	1,847
MedSurg and Neurotechnology | Instruments
Disaggregation of Revenue [Line Items]
Net sales	628	535	1,833	1,626
MedSurg and Neurotechnology | Instruments | United States
Disaggregation of Revenue [Line Items]
Net sales	503	425	1,465	1,290
MedSurg and Neurotechnology | Instruments | International
Disaggregation of Revenue [Line Items]
Net sales	125	110	368	336
MedSurg and Neurotechnology | Endoscopy
Disaggregation of Revenue [Line Items]
Net sales	738	662	2,141	1,946
MedSurg and Neurotechnology | Endoscopy | United States
Disaggregation of Revenue [Line Items]
Net sales	610	551	1,742	1,585
MedSurg and Neurotechnology | Endoscopy | International
Disaggregation of Revenue [Line Items]
Net sales	128	111	399	361
MedSurg and Neurotechnology | Medical
Disaggregation of Revenue [Line Items]
Net sales	798	765	2,417	2,095
MedSurg and Neurotechnology | Medical | United States
Disaggregation of Revenue [Line Items]
Net sales	660	625	1,954	1,686
MedSurg and Neurotechnology | Medical | International
Disaggregation of Revenue [Line Items]
Net sales	138	140	463	409
MedSurg and Neurotechnology | Neurovascular
Disaggregation of Revenue [Line Items]
Net sales	311	294	906	901
MedSurg and Neurotechnology | Neurovascular | United States
Disaggregation of Revenue [Line Items]
Net sales	120	110	361	333
MedSurg and Neurotechnology | Neurovascular | International
Disaggregation of Revenue [Line Items]
Net sales	191	184	545	568
MedSurg and Neurotechnology | Neuro Cranial
Disaggregation of Revenue [Line Items]
Net sales	384	332	1,112	992
MedSurg and Neurotechnology | Neuro Cranial | United States
Disaggregation of Revenue [Line Items]
Net sales	315	274	910	819
MedSurg and Neurotechnology | Neuro Cranial | International
Disaggregation of Revenue [Line Items]
Net sales	69	58	202	173
Orthopaedics and Spine
Disaggregation of Revenue [Line Items]
Net sales	2,050	1,891	6,274	5,687
Orthopaedics and Spine | United States
Disaggregation of Revenue [Line Items]
Net sales	1,470	1,375	4,469	4,063
Orthopaedics and Spine | International
Disaggregation of Revenue [Line Items]
Net sales	580	516	1,805	1,624
Orthopaedics and Spine | Knees
Disaggregation of Revenue [Line Items]
Net sales	515	481	1,643	1,445
Orthopaedics and Spine | Knees | United States
Disaggregation of Revenue [Line Items]
Net sales	385	365	1,207	1,078
Orthopaedics and Spine | Knees | International
Disaggregation of Revenue [Line Items]
Net sales	130	116	436	367
Orthopaedics and Spine | Hips
Disaggregation of Revenue [Line Items]
Net sales	362	347	1,130	1,038
Orthopaedics and Spine | Hips | United States
Disaggregation of Revenue [Line Items]
Net sales	231	225	716	657
Orthopaedics and Spine | Hips | International
Disaggregation of Revenue [Line Items]
Net sales	131	122	414	381
Orthopaedics and Spine | Trauma and Extremities
Disaggregation of Revenue [Line Items]
Net sales	752	672	2,287	2,033
Orthopaedics and Spine | Trauma and Extremities | United States
Disaggregation of Revenue [Line Items]
Net sales	550	494	1,663	1,470
Orthopaedics and Spine | Trauma and Extremities | International
Disaggregation of Revenue [Line Items]
Net sales	202	178	624	563
Orthopaedics and Spine | Spine
Disaggregation of Revenue [Line Items]
Net sales	291	280	871	849
Orthopaedics and Spine | Spine | United States
Disaggregation of Revenue [Line Items]
Net sales	217	206	650	615
Orthopaedics and Spine | Spine | International
Disaggregation of Revenue [Line Items]
Net sales	74	74	221	234
Orthopaedics and Spine | Other
Disaggregation of Revenue [Line Items]
Net sales	130	111	343	322
Orthopaedics and Spine | Other | United States
Disaggregation of Revenue [Line Items]
Net sales	87	85	233	243
Orthopaedics and Spine | Other | International
Disaggregation of Revenue [Line Items]
Net sales	$ 43	$ 26	$ 110	$ 79

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Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Revenue Recognition [Abstract]
Contract liabilities	$ 788	$ 741

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Revenue Recognition - Changes in Contract Liabilities (Details) $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Movement In Contract Liabilities [Roll Forward]
Beginning contract liabilities	$ 741
Revenue recognized from beginning of year contract liabilities	(306)
Net advance consideration received during the period	353
Ending contract liabilities	$ 788

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Accumulated Other Comprehensive (Loss) Income (AOCI) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	$ (330)	$ (286)	$ (221)	$ (531)
OCI	144	334	50	727
Income taxes	(48)	(123)	(31)	(252)
Reclassification to: cost of sales	1,751	1,697	5,328	4,905
Reclassification to: Other (income) expense, net	(62)	8	(184)	(105)
Reclassification to: Income taxes	(177)	0	(425)	(127)
Net OCI	81	197	(28)	442
AOCI, at end of period	(249)	(89)	(249)	(89)
Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	(7)	(7)	(29)	(10)
Reclassification to: Other (income) expense, net	(12)	(7)	(32)	(27)
Reclassification to: Income taxes	4	0	14	4
Net OCI	81	197	(28)	442
Marketable Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	(1)	(1)	(1)	0
OCI	1	0	0	(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	0	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	28	(148)	31	(155)
OCI	(1)	11	2	15
Income taxes	1	(3)	(4)	(3)
AOCI, at end of period	27	(138)	27	(138)
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)	3	(3)	7
Reclassification to: Income taxes	0	(1)	1	(2)
Net OCI	(1)	10	(4)	17
Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	54	65	52	40
OCI	11	19	38	55
Income taxes	(2)	(1)	(8)	(7)
AOCI, at end of period	56	73	56	73
Hedges | Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Reclassification to: cost of sales	(7)	(7)	(29)	(10)
Reclassification to: Other (income) expense, net	(2)	(2)	(4)	(4)
Reclassification to: Income taxes	2	(1)	7	(1)
Net OCI	2	8	4	33
Financial Statement Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
AOCI, at beginning of period	(411)	(202)	(303)	(416)
OCI	133	304	10	658
Income taxes	(47)	(119)	(19)	(242)
AOCI, at end of period	(331)	(23)	(331)	(23)
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	(8)	(8)	(25)	(30)
Reclassification to: Income taxes	2	2	6	7
Net OCI	$ 80	$ 179	$ (28)	$ 393

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Derivative Instruments (Forward Currency Exchange Contracts) (Details) - Foreign Exchange Contract $ in Millions, € in Billions	3 Months Ended	9 Months Ended
	Mar. 31, 2023	Sep. 30, 2023 USD ($)	Sep. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Derivative [Line Items]
Derivative, notional amount		$ 7,147		$ 6,068
Maximum Remaining Maturity of Foreign Currency Derivatives	3 years 10 months 24 days	3 years 1 month 6 days
Total fair value		$ 197		17
Other current assets
Derivative [Line Items]
Derivative assets		212		29
Other noncurrent assets
Derivative [Line Items]
Derivative assets		12		90
Other current liabilities
Derivative [Line Items]
Derivative liabilities		(14)		(85)
Other noncurrent liabilities
Derivative [Line Items]
Derivative liabilities		(13)		(17)
Non-Designated
Derivative [Line Items]
Derivative, notional amount		4,726		3,417
Total fair value		80		(70)
Non-Designated | Other current assets
Derivative [Line Items]
Derivative assets		86		9
Non-Designated | Other noncurrent assets
Derivative [Line Items]
Derivative assets		0		0
Non-Designated | Other current liabilities
Derivative [Line Items]
Derivative liabilities		(6)		(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		838		1,053
Total fair value		23		14
Cash Flow | Designated as Hedging Instrument | Other current assets
Derivative [Line Items]
Derivative assets		31		20
Cash Flow | Designated as Hedging Instrument | Other noncurrent assets
Derivative [Line Items]
Derivative assets		1		1
Cash Flow | Designated as Hedging Instrument | Other current liabilities
Derivative [Line Items]
Derivative liabilities		(8)		(6)
Cash Flow | Designated as Hedging Instrument | Other noncurrent liabilities
Derivative [Line Items]
Derivative liabilities		(1)		(1)
Net Investment | Designated as Hedging Instrument
Derivative [Line Items]
Derivative, notional amount		1,583	€ 1.5	1,598	€ 1.5
Total fair value		94		73
Net Investment | Designated as Hedging Instrument | Other current assets
Derivative [Line Items]
Derivative assets		95		0
Net Investment | Designated as Hedging Instrument | Other noncurrent assets
Derivative [Line Items]
Derivative assets		11		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		$ (12)		$ (16)

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Derivative Instruments (Narrative) (Details) $ in Millions, € in Billions	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 EUR (€)
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	$ 7,147		$ 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	42
Cash flow hedge gain (loss) to be reclassified within twelve months	35
Net investment hedges expected to be reclassified to cost of sales and other income (expense)	31
Designated as Hedging Instrument | Foreign Exchange Contract | Net Investment
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, notional amount	1,583	€ 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 | €		€ 4.9		€ 4.4

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Derivative Instruments (Income Statement Location) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Foreign Exchange Contract
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	$ 19	$ 14	$ 67	$ 42
Foreign Exchange Contract | Cost of sales
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	7	7	29	10
Foreign Exchange Contract | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	4	(1)	13	2
Net Investment | Other income (expense), net
Derivative Instruments, Gain (Loss) [Line Items]
Net currency exchange rate gains (losses)	$ 8	$ 8	$ 25	$ 30

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Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Dec. 31, 2022
Assets Measured at Fair Value
Available-for-sale securities, current	$ 76	$ 76	$ 84
Total assets measured at fair value	2,349	2,349	2,213
Contingent consideration:
Total liabilities measured at fair value	499	499	389
Fair Value, Inputs, Level 1
Assets Measured at Fair Value
Cash and cash equivalents	1,860	1,860	1,844
Trading marketable securities	189	189	166
Total assets measured at fair value	2,049	2,049	2,010
Liabilities
Deferred compensation arrangements	189	189	166
Contingent consideration:
Total liabilities measured at fair value	189	189	166
Fair Value, Inputs, Level 2
Assets Measured at Fair Value
Available-for-sale securities, current	76	76	84
Total assets measured at fair value	300	300	203
Contingent consideration:
Total liabilities measured at fair value	27	27	102
Fair Value, Inputs, Level 2 | Foreign currency exchange forward contracts
Assets Measured at Fair Value
Derivative asset	224	224	119
Liabilities
Foreign currency exchange forward contracts	27	27	102
Fair Value, Inputs, Level 2 | Corporate and asset-backed debt securities
Assets Measured at Fair Value
Available-for-sale securities, current	38	38	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	32	32	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		(8)	(137)
Settlements		(22)	(49)
Ending	283	283	121
Total liabilities measured at fair value	$ 283	$ 283	$ 121

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Fair Value Measurements (Assets and Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Due in one year or less	$ 43	$ 53
Due after one year through three years	$ 33	$ 31

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Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Reduction of contingent consideration		$ 110
Gain on sale of marketable securities	$ 15		$ 26	$ 40	$ 61

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Contingencies and Commitments (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Loss Contingencies [Line Items]
Estimate of possible loss		$ 198		$ 198
Recall-related payments				(28)	$ (26)
Recall charges, net		$ 9	$ (4)	$ 12	$ 14
PureWick
Loss Contingencies [Line Items]
Charges during period	$ 28

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Contingencies and Commitments - Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Right-of-use assets	$ 491		$ 491		$ 473
Lease liabilities, current	130		130		121
Lease liabilities, non-current	$ 369		$ 369		$ 357
Other information:
Weighted-average remaining lease term (years)	5 years 6 months		5 years 6 months		5 years 6 months
Weighted-average discount rate	3.73%		3.73%		3.22%
Operating lease cost	$ 48	$ 37	$ 127	$ 110

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Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions		1 Months Ended	3 Months Ended	9 Months Ended
	May 02, 2023	Feb. 28, 2022	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Acquisitions, net of cash acquired				$ 390	$ 2,563
Payments of long-term debt				$ 852	$ 502
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

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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	Sep. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill			$ 15,138	$ 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)	13 years
Cerus | Trade name
Business Acquisition [Line Items]
Intangible assets acquired	$ 0

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Acquisitions (Future Amortization Expense) (Details) $ in Millions	Sep. 30, 2023 USD ($)
Business Combinations [Abstract]
Remainder of 2023	$ 159
2024	607
2025	590
2026	533
2027	$ 512

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Debt and Credit Facilities (Details)	1 Months Ended	9 Months Ended
	Aug. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Aug. 31, 2023 EUR (€)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Feb. 28, 2022 USD ($)	Dec. 31, 2021 USD ($)
Line of Credit Facility [Line Items]
Commercial paper		$ 0
Other		3,000,000		$ 7,000,000
Total debt		12,690,000,000		13,048,000,000
Less current maturities		2,308,000,000		1,191,000,000
Less current maturities		10,382,000,000		11,857,000,000
Unamortized debt issuance costs		45,000,000		52,000,000
Borrowing capacity on existing facilities		2,160,000,000		2,162,000,000
Fair value of senior unsecured notes		11,333,000,000		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		$ 580,000,000		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		$ 598,000,000		596,000,000
Senior Unsecured Notes, 0.250% Due 2024
Line of Credit Facility [Line Items]
Stated interest rate		0.25%
Unsecured debt		$ 895,000,000		903,000,000
Senior Unsecured Notes, 1.150% Due 2025
Line of Credit Facility [Line Items]
Stated interest rate		1.15%
Unsecured debt		$ 648,000,000		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		$ 788,000,000		795,000,000
Senior Unsecured Notes 3.650% due 2028
Line of Credit Facility [Line Items]
Stated interest rate		3.65%
Unsecured debt		$ 598,000,000		597,000,000
Senior Unsecured Notes 0.750% due 2029
Line of Credit Facility [Line Items]
Stated interest rate		0.75%
Unsecured debt		$ 841,000,000		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		$ 679,000,000		684,000,000
Senior Unsecured Notes, 1.000% Due 2031
Line of Credit Facility [Line Items]
Stated interest rate		1.00%
Unsecured debt		$ 783,000,000		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]
Repayments of debt	$ 650,000,000
Debt instrument, face amount						$ 1,500,000,000
Long-term debt		$ 0		850,000,000
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
Floating Rate Senior Notes Due November 16, 2024
Line of Credit Facility [Line Items]
Unsecured debt		$ 527,000,000		$ 0
Floating Rate Senior Notes Due November 16, 2024 | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, face amount | €			€ 500,000,000
Floating Rate Senior Notes Due November 16, 2024 | Euro Interbank Offered Rate | Senior Notes
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	0.30%

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent	20.40%	0.00%	17.40%	6.60%
Tax settlement benefit amount		$ 162		$ 162

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Segment Information (Sales And Other Financial Information By Business Segment) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Net sales	$ 4,909	$ 4,479	$ 14,683	$ 13,247
Segment operating income	931	808	2,631	2,027
Amortization of intangible assets	(164)	(159)	(486)	(469)
Recall-related matters	(9)	4	(12)	(14)
MedSurg and Neurotechnology
Segment Reporting Information [Line Items]
Net sales	2,859	2,588	8,409	7,560
Orthopaedics and Spine
Segment Reporting Information [Line Items]
Net sales	2,050	1,891	6,274	5,687
Operating Segments
Segment Reporting Information [Line Items]
Segment operating income	1,358	1,145	3,967	3,486
Operating Segments | MedSurg and Neurotechnology
Segment Reporting Information [Line Items]
Net sales	2,859	2,588
Segment operating income	859	611	2,266	1,870
Operating Segments | Orthopaedics and Spine
Segment Reporting Information [Line Items]
Net sales	2,050	1,891	6,274	5,687
Segment operating income	499	534	1,701	1,616
Corporate and other
Segment Reporting Information [Line Items]
Segment operating income	(209)	(144)	(596)	(488)
Segment Reconciling Items
Segment Reporting Information [Line Items]
Acquisition and integration-related costs	1	78	(7)	(108)
Amortization of intangible assets	(164)	(159)	(486)	(469)
Structural optimization and other special charges	(28)	(58)	(142)	(229)
Medical device regulations	(19)	(38)	(74)	(98)
Recall-related matters	(9)	4	(12)	(14)
Regulatory and legal matters	$ 1	$ (20)	$ (19)	$ (53)