Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 30, 2024

STRYKER CORPORATION

(Exact name of registrant as specified in its charter)

Michigan

001-13149

38-1239739

(State of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

1941 Stryker Way

Portage,

Michigan

49002

(Address of principal executive offices)

(Zip Code)

(269)

385-2600

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

0.250% Notes due 2024

SYK24A

New York Stock Exchange

2.125% Notes due 2027

SYK27

New York Stock Exchange

3.375% Notes due 2028

SYK28

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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth 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. ☐


ITEM 2.02			RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Stryker Corporation issued a press release on July 30, 2024 announcing its second quarter 2024 operating results. A copy of this press release is attached hereto as Exhibit 99.1.

The information furnished in this report, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.


ITEM 9.01			FINANCIAL STATEMENTS AND EXHIBITS


(d)	Exhibits

	99.1	Stryker reports second quarter 2024 operating results, press release dated July 30, 2024
	104	Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

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 hereunto duly authorized.


		STRYKER CORPORATION
		(Registrant)


Date:	July 30, 2024	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer

Exhibit 99.1

STRYKER REPORTS SECOND QUARTER 2024 OPERATING RESULTS

Portage, Michigan - July 30, 2024 - Stryker (NYSE:SYK) reported operating results for the second quarter of 2024:

Second Quarter Results

•Reported net sales increased 8.5% to $5.4 billion

•Organic net sales increased 9.0%

•Reported operating income margin of 19.4%

•Adjusted operating income margin(1) increased 30 bps to 24.6%

•Reported EPS increased 10.9% to $2.14

•Adjusted EPS(1) increased 10.6% to $2.81


	Second Quarter Net Sales Growth Overview
	Reported		Foreign Currency Exchange		Constant Currency		Acquisitions / Divestitures		Organic
MedSurg and Neurotechnology	9.0	%	(0.8)	%	9.8	%	0.1	%	9.7	%
Orthopaedics and Spine	7.9		(1.0)		8.9		0.9		8.0
Total	8.5	%	(0.9)	%	9.4	%	0.4	%	9.0	%

"We delivered another quarter of strong organic sales growth," said Kevin A. Lobo, Chair and CEO. "We remain committed to our margin expansion goals and are excited about our product and M&A pipelines."

Sales Analysis

Consolidated net sales of $5.4 billion increased 8.5% in the quarter and 9.4% in constant currency. Organic net sales increased 9.0% in the quarter including 7.9% from increased unit volume and 1.1% from higher prices.

MedSurg and Neurotechnology net sales of $3.1 billion increased 9.0% in the quarter and 9.8% in constant currency. Organic net sales increased 9.7% in the quarter including 7.6% from increased unit volume and 2.1% from higher prices.

Orthopaedics and Spine net sales of $2.3 billion increased 7.9% in the quarter and 8.9% in constant currency. Organic net sales increased 8.0% in the quarter including 8.4% from increased unit volume partially offset by 0.4% from lower prices.

Earnings Analysis

Reported net earnings of $825 million increased 11.8% in the quarter. Reported net earnings per diluted share of $2.14 increased 10.9% in the quarter. Reported gross profit margin and reported operating income margin were 63.0% and 19.4% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, structural optimization and other special charges (including asset write-offs and impairments), costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters. Excluding the aforementioned items, adjusted gross profit margin(1) was 64.2% in the quarter, and adjusted operating income margin(1) was 24.6% in the quarter. Adjusted net earnings(1) of $1,085 million increased 11.2% in the quarter. Adjusted net earnings per diluted share(1) of $2.81 increased 10.6% in the quarter.

2024 Outlook

Based on our year-to-date performance and our positive outlook related to sustained procedural volumes and a healthy demand for our capital products, we now expect full year 2024 organic net sales growth(2) to be in the range of 9.0% to 10.0% with a favorable pricing impact of approximately 0.5%. If foreign exchange rates hold near current levels, we anticipate a moderately unfavorable impact on full year net sales and now expect adjusted net earnings per diluted share(2) will be negatively impacted in the range of $0.10 to $0.15. This is reflected in our guidance. Given our sales momentum, we now expect adjusted net earnings per diluted share(2) to be in the range of $11.90 to $12.10.

(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release.

(2) We are unable to present a quantitative reconciliation of our expected net sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of structural optimization and other special charges, acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.

Conference Call on Tuesday, July 30, 2024

As previously announced, we will host a conference call on Tuesday, July 30, 2024 at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter ended June 30, 2024 and provide an operational update.

Please register for this conference call at: https://www.veracast.com/webcasts/stryker/events/SYK2Q24.cfm. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry. Registration is open throughout the live call. To ensure you are connected prior to the beginning of the call, we suggest registering a minimum of 15 minutes before the start of the call.

A simultaneous webcast of the call will be accessible via the Investor Relations page of our website at www.stryker.com. For those not planning to ask a question of management, we recommend listening via the webcast. Please allow 15 minutes to register, download and install any necessary software.

Following the conference call, a replay will be available on our website up to one year from the time of the earnings call.

Caution Concerning Forward-Looking Statements

This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our products; geopolitical risks, including from international conflicts and elections in the United States and other countries, which could, among other things, lead to increased market volatility; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for our products; changes in foreign currency exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect approval of new products by the United States Food and Drug Administration and foreign regulatory agencies; inflationary pressures; increased interest rates or interest rate volatility; supply chain disruptions; changes in labor markets; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; the ultimate total cost with respect to recall-related and other regulatory and quality matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; changes in tax laws and regulations; the impact of legislation to reform the healthcare system in the United States or other countries; costs to comply with medical device regulations; changes in financial markets; changes in our credit ratings; changes in the competitive environment; our ability to integrate and realize the anticipated benefits of acquisitions in full or at all or within the expected timeframes; our ability to realize anticipated cost savings; potential negative impacts resulting from climate change or other environmental, social and governance and sustainability related matters; the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties; and breaches or failures of our or our vendors' or customers' information technology systems or products, including by cyber-attack, data leakage, unauthorized access or theft. Additional information concerning these and other factors is contained in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.

Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology, Orthopaedics and Spine that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.

For investor inquiries please contact:

Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or jason.beach@stryker.com

For media inquiries please contact:

Yin Becker, Vice President, Chief Corporate Affairs Officer at 269-385-2600 or yin.becker@stryker.com


STRYKER CORPORATION
For the Three and Six Months June 30
(Unaudited - Millions of Dollars, Except Per Share Amounts)

CONSOLIDATED STATEMENTS OF EARNINGS

	Three Months								Six Months
	2024			2023			% Change		2024			2023			% Change
Net sales	$	5,422		$	4,996		8.5	%	$	10,665		$	9,774		9.1	%
Cost of sales	2,006			1,815			10.5		3,916			3,577			9.5
Gross profit	$	3,416		$	3,181		7.4	%	$	6,749		$	6,197		8.9	%
% of sales	63.0		%	63.7		%			63.3		%	63.4		%
Research, development and engineering expenses	363			346			4.9		731			685			6.7
Selling, general and administrative expenses	1,847			1,709			8.1		3,687			3,490			5.6

Amortization of intangible assets	155			161			(3.7)		308			322			(4.3)
Total operating expenses	$	2,365		$	2,216		6.7	%	$	4,726		$	4,497		5.1	%
Operating income	$	1,051		$	965		8.9	%	$	2,023		$	1,700		19.0	%
% of sales	19.4		%	19.3		%			19.0		%	17.4		%
Other income (expense), net	(53)			(66)			(19.7)		(102)			(122)			(16.4)
Earnings before income taxes	$	998		$	899		11.0	%	$	1,921		$	1,578		21.7	%
Income taxes	173			161			7.5		308			248			24.2	%
Net earnings	$	825		$	738		11.8	%	$	1,613		$	1,330		21.3	%
Net earnings per share of common stock:
Basic	$	2.17		$	1.95		11.3	%	$	4.24		$	3.51		20.8	%
Diluted	$	2.14		$	1.93		10.9	%	$	4.19		$	3.47		20.7	%
Weighted-average shares outstanding (in millions):
Basic	381.0			379.7					380.7			379.4
Diluted	385.4			383.9					385.2			383.6


CONDENSED CONSOLIDATED BALANCE SHEETS
	June 30		December 31
	2024		2023
Assets
Cash and cash equivalents	$	1,874	$	2,971
Marketable securities	83		82
Accounts receivable, net	3,622		3,765
Inventories	5,044		4,843
Prepaid expenses and other current assets	1,022		857
Total current assets	$	11,645	$	12,518
Property, plant and equipment, net	3,318		3,215
Goodwill and other intangibles, net	19,771		19,836
Noncurrent deferred income tax assets	1,606		1,670
Other noncurrent assets	2,790		2,673
Total assets	$	39,130	$	39,912
Liabilities and shareholders' equity
Current liabilities	$	6,926	$	7,921
Long-term debt, excluding current maturities	10,127		10,901
Income taxes	350		567
Other noncurrent liabilities	1,965		1,930
Shareholders' equity	19,762		18,593
Total liabilities and shareholders' equity	$	39,130	$	39,912


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Six Months
	2024		2023
Operating activities
Net earnings	$	1,613	$	1,330
Depreciation	210		194
Amortization of intangible assets	308		322
Changes in operating assets, liabilities, income taxes payable and other, net	(1,294)		(713)
Net cash provided by operating activities	$	837	$	1,133
Investing activities
Acquisitions, net of cash acquired	$	(334)	$	(390)
Purchases of property, plant and equipment	(319)		(282)
Other investing, net	128		7
Net cash used in investing activities	$	(525)	$	(665)
Financing activities
Borrowings (payments) of debt, net	$	(600)	$	(205)
Payments of dividends	(609)		(569)

Other financing, net	(175)		(112)
Net cash provided by (used in) financing activities	$	(1,384)	$	(886)
Effect of exchange rate changes on cash and cash equivalents	(25)		(25)
Change in cash and cash equivalents	$	(1,097)	$	(443)


STRYKER CORPORATION
For the Three and Six Months June 30
(Unaudited - Millions of Dollars)


SALES GROWTH ANALYSIS
	Three Months								Six Months
					Percentage Change								Percentage Change
	2024		2023		As Reported		Constant Currency		2024		2023		As Reported		Constant Currency
Geographic:
United States	$	4,047	$	3,711	9.1	%	9.1	%	$	7,961	$	7,223	10.2	%	10.2	%
International	1,375		1,285		7.0		10.5		2,704		2,551		6.0		8.7
Total	$	5,422	$	4,996	8.5	%	9.4	%	$	10,665	$	9,774	9.1	%	9.8	%
Segment:
MedSurg and Neurotechnology	$	3,117	$	2,860	9.0	%	9.8	%	$	6,116	$	5,550	10.2	%	10.8	%
Orthopaedics and Spine	2,305		2,136		7.9		8.9		4,549		4,224		7.7		8.5
Total	$	5,422	$	4,996	8.5	%	9.4	%	$	10,665	$	9,774	9.1	%	9.8	%


SUPPLEMENTAL SALES GROWTH ANALYSIS
	Three Months
									United States		International
					Percentage Change
	2024		2023		As Reported		Constant Currency		As Reported		As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments	$	698	$	622	12.3	%	12.9	%	12.3	%	12.4	%	15.4	%
Endoscopy	768		713		7.6		8.3		8.2		5.3		9.0
Medical	908		841		8.0		8.4		11.9		(8.7)		(6.5)
Neurovascular	327		311		5.3		8.0		2.3		7.3		11.8
Neuro Cranial	416		373		11.6		12.2		10.6		16.2		19.9
	$	3,117	$	2,860	9.0	%	9.8	%	10.3	%	4.9	%	8.3	%
Orthopaedics and Spine:
Knees	$	602	$	562	7.1	%	8.0	%	6.6	%	8.2	%	11.7	%
Hips	428		393		8.9		10.6		4.3		16.9		21.7
Trauma and Extremities	832		766		8.6		9.3		9.1		7.4		9.8
Spine	307		296		3.8		4.4		4.4		2.0		4.3
Other	136		119		14.3		16.4		15.4		11.7		18.9
	$	2,305	$	2,136	7.9	%	8.9	%	7.3	%	9.4	%	12.9	%
Total	$	5,422	$	4,996	8.5	%	9.4	%	9.1	%	7.0	%	10.5	%



	Six Months
									United States		International
					Percentage Change
	2024		2023		As Reported		Constant Currency		As Reported		As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments	$	1,365	$	1,188	14.9	%	15.3	%	16.0	%	10.4	%	12.5	%
Endoscopy	1,546		1,420		8.9		9.4		9.6		5.6		8.6
Medical	1,772		1,619		9.4		9.7		14.2		(9.5)		(8.1)
Neurovascular	637		595		7.1		9.6		2.6		10.2		14.5
Neuro Cranial	796		728		9.3		9.9		8.9		11.4		14.7
	$	6,116	$	5,550	10.2	%	10.8	%	12.0	%	4.6	%	7.3	%
Orthopaedics and Spine:
Knees	$	1,190	$	1,128	5.5	%	6.2	%	4.8	%	7.3	%	10.0	%
Hips	821		768		7.0		8.4		5.5		9.6		13.5
Trauma and Extremities	1,662		1,535		8.3		8.6		9.7		4.5		5.9
Spine	607		580		4.6		5.0		4.1		6.0		7.6
Other	269		213		26.2		28.7		28.1		22.1		29.9
	$	4,549	$	4,224	7.7	%	8.5	%	7.8	%	7.5	%	10.1	%
Total	$	10,665	$	9,774	9.1	%	9.8	%	10.2	%	6.0	%	8.7	%

Notes: The three months 2024 had the same number of selling days as 2023. The six months 2024 had one less selling day than 2023. Beginning in the first quarter 2024, a product line previously included in Instruments has been reclassified to Endoscopy to align with a change in our internal reporting structure. We have reflected this change in all historical periods presented.

SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO 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.

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 that, when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of our business. 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 following reconciles the non-GAAP financial measures discussed above with the most directly comparable GAAP financial measures. The weighted-average diluted shares outstanding used in the calculation of adjusted 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.


STRYKER CORPORATION
For the Three and Six Months June 30
(Unaudited - Millions of Dollars, Except Per Share Amounts)

Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2024	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	$	3,416		$	1,847		$	363		$	1,051		$	(53)		$	173	$	825		17.3	%	$	2.14
Reported percent net sales	63.0		%	34.1		%	6.7		%	19.4		%	(1.0)		%	nm		15.2		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	9			—			—			9			—			2		7			0.1		0.02
Other acquisition and integration-related (a)	—			(14)			—			14			—			2		12			0.1		0.03
Amortization of purchased intangible assets	—			—			—			155			—			32		123			0.8		0.33
Structural optimization and other special charges (b)	40			(35)			—			75			—			17		58			0.5		0.15
Medical device regulations (c)	4			—			(11)			15			—			4		11			0.1		0.02
Recall-related matters (d)	11			(6)			—			17			—			4		13			0.1		0.03
Regulatory and legal matters (e)	—			2			—			(2)			—			(1)		(1)			—		—
Tax matters (f)	—			—			—			—			(1)			(38)		37			(3.8)		0.09
Adjusted	$	3,480		$	1,794		$	352		$	1,334		$	(54)		$	195	$	1,085		15.2	%	$	2.81
Adjusted percent net sales	64.2		%	33.1		%	6.5		%	24.6		%	(1.0)		%	nm		20.0		%


Three Months 2023	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	3,181		$	1,709		$	346		$	965		$	(66)		$	161	$	738		17.9	%	$	1.93
Reported percent net sales	63.7		%	34.2		%	6.9		%	19.3		%	(1.3)		%	nm		14.8		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			(2)			—			2			—			2		—			0.1		—
Amortization of purchased intangible assets	—			—			—			161			—			34		127			1.1		0.33
Structural optimization and other special charges (b)	9			(63)			—			72			—			17		55			0.7		0.14
Medical device regulations (c)	—			—			(27)			27			—			8		19			0.4		0.05
Recall-related matters (d)	—			(3)			—			3			—			1		2			—		0.01
Regulatory and legal matters (e)	—			14			—			(14)			—			(3)		(11)			(0.1)		(0.03)
Tax matters (f)	—			—			—			—			—			(46)		46			(4.9)		0.11
Adjusted	$	3,190		$	1,655		$	319		$	1,216		$	(66)		$	174	$	976		15.2	%	$	2.54
Adjusted percent net sales	63.9		%	33.1		%	6.4		%	24.3		%	(1.3)		%	nm		19.5		%

nm - not meaningful

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:


	Three Months
	2024		2023
Termination of sales relationships	$	2	$	—
Employee retention and workforce reductions	4		—
Changes in the fair value of contingent consideration	2		(2)
Manufacturing integration costs	1		—

Other integration-related activities (e.g., deal costs and legal entity rationalization)	5		4
Adjustments to Operating Income	$	14	$	2


Adjustments to Income Taxes	$	2	$	2
Adjustments to Net Earnings	$	12	$	—

(b) Structural optimization and other special charges represent the costs associated with:


	Three Months
	2024		2023
Employee retention and workforce reductions	$	3	$	47
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)	10		12
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)	15		6
Certain long-lived and intangible asset write-offs and impairments	7		2
Termination of sales relationships in certain countries	1		—
Other charges	39		5
Adjustments to Operating Income	$	75	$	72

Adjustments to Income Taxes	$	17	$	17
Adjustments to Net Earnings	$	58	$	55

(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 probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain recall-related matters.

(e) Charges represent changes in our best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.

(f) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:


	Three Months
	2024		2023
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(47)	$	(47)
Certain tax audit settlements	(2)		(4)

Other tax matters	11		5
Adjustments to Income Taxes	$	(38)	$	(46)
Benefits for certain tax audit settlements	(1)		—

Adjustments to Other Income (Expense), Net	$	(1)	$	—
Adjustments to Net Earnings	$	37	$	46


Six Months 2024	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	6,749		$	3,687		$	731		$	2,023		$	(102)		$	308	$	1,613		16.0	%	$	4.19
Reported percent net sales	63.3		%	34.6		%	6.9		%	19.0		%	(1.0)		%	nm		15.1		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	9			—			—			9			—			2		7			0.1		0.02
Other acquisition and integration-related (a)	—			(1)			—			1			—			3		(2)			0.2		(0.01)
Amortization of purchased intangible assets	—			—			—			308			—			64		244			1.1		0.64
Structural optimization and other special charges (b)	43			(46)			—			89			—			20		69			0.4		0.18
Medical device regulations (c)	5			—			(23)			28			—			7		21			0.1		0.05
Recall-related matters (d)	11			(11)			—			22			—			5		17			0.1		0.04
Regulatory and legal matters (e)	—			—			—			—			—			—		—			—		—
Tax matters (f)	—			—			—			—			(1)			(79)		78			(4.1)		0.20
Adjusted	$	6,817		$	3,629		$	708		$	2,480		$	(103)		$	330	$	2,047		13.9	%	$	5.31
Adjusted percent net sales	63.9		%	34.0		%	6.6		%	23.3		%	(1.0)		%	nm		19.2		%


Six Months 2023	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	6,197		$	3,490		$	685		$	1,700		$	(122)		$	248	$	1,330		15.7	%	$	3.47
Reported percent net sales	63.4		%	35.7		%	7.0		%	17.4		%	(1.2)		%	nm		13.6		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related (a)	—			(8)			—			8			—			3		5			0.1		0.01
Amortization of purchased intangible assets	—			—			—			322			—			68		254			1.4		0.66
Structural optimization and other special charges (b)	11			(103)			—			114			—			25		89			0.6		0.23
Medical device regulations (c)	—			—			(55)			55			—			13		42			0.3		0.11
Recall-related matters (d)	—			(3)			—			3			—			1		2			—		0.01
Regulatory and legal matters (e)	—			(20)			—			20			—			3		17			—		0.04
Tax matters (f)	—			—			—			—			(9)			(66)		57			(4.0)		0.15
Adjusted	$	6,208		$	3,356		$	630		$	2,222		$	(131)		$	295	$	1,796		14.1	%	$	4.68
Adjusted percent net sales	63.5		%	34.3		%	6.4		%	22.7		%	(1.3)		%	nm		18.4		%

nm - not meaningful

(a) Charges represent certain acquisition and integration-related costs associated with acquisitions, including:


	Six Months
	2024		2023
Termination of sales relationships	$	3	$	—
Employee retention and workforce reductions	4		—
Changes in the fair value of contingent consideration	(14)		(3)
Manufacturing integration costs	1		2

Other integration-related activities (e.g., deal costs and legal entity rationalization)	7		9
Adjustments to Operating Income	$	1	$	8


Adjustments to Income Taxes	$	3	$	3
Adjustments to Net Earnings	$	(2)	$	5

(b) Structural optimization and other special charges represent the costs associated with:


	Six Months
	2024		2023
Employee retention and workforce reductions	$	2	$	68
Closure/transfer of manufacturing and other facilities (e.g., site closure, contract termination and redundant employee costs)	16		24
Product line exits (e.g., inventory, long-lived asset and specifically-identified intangible asset write-offs)	15		9
Certain long-lived and intangible asset write-offs and impairments	10		3
Termination of sales relationships in certain countries	1		—
Other charges	45		10
Adjustments to Operating Income	$	89	$	114

Adjustments to Income Taxes	$	20	$	25
Adjustments to Net Earnings	$	69	$	89

(f) Benefits / (charges) represent the accounting impact of certain significant and discrete tax items, including:


	Six Months
	2024		2023
Adjustments related to the transfer of certain intellectual properties between tax jurisdictions	$	(94)	$	(94)
Certain tax audit settlements	(2)		24

Other tax matters	17		4
Adjustments to Income Taxes	$	(79)	$	(66)
Benefits for certain tax audit settlements	(1)		(9)

Adjustments to Other Income (Expense), Net	$	(1)	$	(9)
Adjustments to Net Earnings	$	78	$	57

COVER PAGE	Jul. 30, 2024
Document Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	STRYKER CORP
Entity Incorporation, State or Country Code	MI
Entity File Number	001-13149
Entity Tax Identification Number	38-1239739
Entity Address, Address Line One	1941 Stryker Way
Entity Address, City or Town	Portage,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49002
City Area Code	(269)
Local Phone Number	385-2600
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000310764
Common Stock, $.10 Par Value
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $.10 Par Value
Trading Symbol	SYK
Security Exchange Name	NYSE
0.250% Notes due 2024
Document Information [Line Items]
Title of 12(b) Security	0.250% Notes due 2024
Trading Symbol	SYK24A
Security Exchange Name	NYSE
2.125% Notes due 2027
Document Information [Line Items]
Title of 12(b) Security	2.125% Notes due 2027
Trading Symbol	SYK27
Security Exchange Name	NYSE
3.375% Notes due 2028
Document Information [Line Items]
Title of 12(b) Security	3.375% Notes due 2028
Trading Symbol	SYK28
Security Exchange Name	NYSE
0.750% Notes due 2029
Document Information [Line Items]
Title of 12(b) Security	0.750% Notes due 2029
Trading Symbol	SYK29
Security Exchange Name	NYSE
2.625% Notes due 2030
Document Information [Line Items]
Title of 12(b) Security	2.625% Notes due 2030
Trading Symbol	SYK30
Security Exchange Name	NYSE
1.000% Notes due 2031
Document Information [Line Items]
Title of 12(b) Security	1.000% Notes due 2031
Trading Symbol	SYK31
Security Exchange Name	NYSE