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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 March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13149
strykerlogoa74.jpg
STRYKER CORPORATION
(Exact name of registrant as specified in its charter)
Michigan38-1239739
(State of incorporation)(I.R.S. Employer Identification No.)
1941 Stryker Way Portage,Michigan49002
(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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.10 Par ValueSYKNew York Stock Exchange
0.250% Notes due 2024SYK24ANew York Stock Exchange
2.125% Notes due 2027SYK27New York Stock Exchange
3.375% Notes due 2028SYK28New York Stock Exchange
0.750% Notes due 2029SYK29New York Stock Exchange
2.625% Notes due 2030SYK30New York Stock Exchange
1.000% Notes due 2031SYK31New 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 380,949,778 shares of Common Stock, $0.10 par value, on March 31, 2024.

STRYKER CORPORATION
2024 First Quarter Form 10-Q
PART I – FINANCIAL INFORMATION
ITEM 1.FINANCIAL STATEMENTS
Stryker Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Three Months
20242023
Net sales$5,243 $4,778 
Cost of sales1,910 1,762 
Gross profit$3,333 $3,016 
Research, development and engineering expenses368 339 
Selling, general and administrative expenses1,840 1,781 
Amortization of intangible assets153 161 
Total operating expenses$2,361 $2,281 
Operating income$972 $735 
Other income (expense), net(49)(56)
Earnings before income taxes$923 $679 
Income taxes135 87 
Net earnings$788 $592 
Net earnings per share of common stock:
Basic$2.07 $1.56 
Diluted$2.05 $1.54 
Weighted-average shares outstanding (in millions):
Basic380.4 379.0 
Effect of dilutive employee stock compensation4.7 4.2 
Diluted385.1 383.2 
Cash dividends declared per share of common stock$0.80 $0.75 
Anti-dilutive shares excluded from the calculation of dilutive employee stock options were de minimis in all periods.


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
Three Months
20242023
Net earnings$788 $592 
Other comprehensive income (loss), net of tax:
Marketable securities  
Pension plans2 (2)
Unrealized gains (losses) on designated hedges2 (9)
Financial statement translation35 (73)
Total other comprehensive income (loss), net of tax$39 $(84)
Comprehensive income$827 $508 

See accompanying notes to Consolidated Financial Statements.
Dollar amounts are in millions except per share amounts or as otherwise specified.
1

STRYKER CORPORATION
2024 First Quarter Form 10-Q
CONSOLIDATED BALANCE SHEETS
March 31December 31
20242023
(Unaudited)
Assets
Current assets
Cash and cash equivalents$2,330 $2,971 
Marketable securities77 82 
Accounts receivable, less allowance of $175 ($182 in 2023)
3,473 3,765 
Inventories:
Materials and supplies1,232 1,242 
Work in process372 330 
Finished goods3,422 3,271 
Total inventories$5,026 $4,843 
Prepaid expenses and other current assets986 857 
Total current assets$11,892 $12,518 
Property, plant and equipment:
Land, buildings and improvements1,686 1,692 
Machinery and equipment4,772 4,652 
Total property, plant and equipment$6,458 $6,344 
Less allowance for depreciation3,198 3,129 
Property, plant and equipment, net$3,260 $3,215 
Goodwill15,351 15,243 
Other intangibles, net4,509 4,593 
Noncurrent deferred income tax assets1,641 1,670 
Other noncurrent assets2,749 2,673 
Total assets$39,402 $39,912 
Liabilities and shareholders' equity
Current liabilities
Accounts payable$1,246 $1,517 
Accrued compensation778 1,478 
Income taxes444 391 
Dividends payable305 304 
Accrued expenses and other liabilities2,124 2,137 
Current maturities of debt2,058 2,094 
Total current liabilities$6,955 $7,921 
Long-term debt, excluding current maturities10,807 10,901 
Income taxes565 567 
Other noncurrent liabilities1,903 1,930 
Total liabilities$20,230 $21,319 
Shareholders' equity
Common stock, $0.10 par value
38 38 
Additional paid-in capital2,257 2,200 
Retained earnings17,254 16,771 
Accumulated other comprehensive loss(377)(416)
Total shareholders' equity$19,172 $18,593 
Total liabilities and shareholders' equity$39,402 $39,912 

See accompanying notes to Consolidated Financial Statements.
Dollar amounts are in millions except per share amounts or as otherwise specified.
2

STRYKER CORPORATION
2024 First Quarter Form 10-Q
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)
Three Months
20242023
Common stock shares outstanding (in millions)
Beginning380.1 378.7 
Issuance of common stock under stock compensation and benefit plans0.8 0.9 
Ending380.9 379.6 
Common stock
Beginning$38 $38 
Issuance of common stock under stock compensation and benefit plans  
Ending$38 $38 
Additional paid-in capital
Beginning$2,200 $2,034 
Issuance of common stock under stock compensation and benefit plans(30)(18)
Share-based compensation87 74 
Ending$2,257 $2,090 
Retained earnings
Beginning$16,771 $14,765 
Net earnings788 592 
Cash dividends declared(305)(285)
Ending$17,254 $15,072 
Accumulated other comprehensive income (loss)
Beginning$(416)$(221)
Other comprehensive income (loss)39 (84)
Ending$(377)$(305)
Total shareholders' equity$19,172 $16,895 

See accompanying notes to Consolidated Financial Statements.


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

STRYKER CORPORATION
2024 First Quarter Form 10-Q
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Three Months
20242023
Operating activities
Net earnings$788 $592 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation107 96 
Amortization of intangible assets153 161 
Asset impairments3 2 
Share-based compensation87 74 
Deferred income tax (benefit) expense(39)(3)
Changes in operating assets and liabilities:
Accounts receivable258 365 
Inventories(184)(314)
Accounts payable(257)(56)
Accrued expenses and other liabilities(635)(419)
Income taxes76 26 
Other, net(153)(79)
Net cash provided by operating activities$204 $445 
Investing activities
Acquisitions, net of cash acquired(246) 
Purchases of marketable securities(18)(28)
Proceeds from sales of marketable securities23 25 
Purchases of property, plant and equipment(167)(130)
Other investing, net 1 
Net cash used in investing activities$(408)$(132)
Financing activities
Proceeds (payments) on short-term borrowings, net(1)(2)
Payments on long-term debt (100)
Payments of dividends(304)(284)
Cash paid for taxes from withheld shares(113)(94)
Other financing, net (1)
Net cash provided by (used in) financing activities$(418)$(481)
Effect of exchange rate changes on cash and cash equivalents(19)(5)
Change in cash and cash equivalents$(641)$(173)
Cash and cash equivalents at beginning of period2,971 1,844 
Cash and cash equivalents at end of period$2,330 $1,671 

See accompanying notes to Consolidated Financial Statements.
Dollar amounts are in millions except per share amounts or as otherwise specified.
4

STRYKER CORPORATION
2024 First 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 March 31, 2024 and the results of operations for the three months 2024. 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 2023.
New Accounting Pronouncements Not Yet Adopted
In December 2023 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09 (Topic 740): Income Taxes: Improvements to Income Tax Disclosures which expands the existing rules on income tax disclosures. This update requires entities to disclose specific categories in the tax rate reconciliation, provide additional information for reconciling items that meet a quantitative threshold and disclose additional information about income taxes paid on an annual basis. The new disclosure requirements are effective for fiscal years beginning after December 15, 2024 and we will adopt this ASU in 2025.
In November 2023 the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures which expands disclosure requirements to require entities to disclose significant segment expenses that are regularly provided to or easily computed from information regularly provided to the chief operating decision maker. This update also requires all annual disclosures currently required by Topic 280 to be disclosed in interim periods. The new disclosure requirements are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We will adopt this ASU in the fourth quarter 2024.
We evaluate all ASUs issued by the 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 2023.
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 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.
Net Sales by Business
Three Months
20242023
MedSurg and Neurotechnology:
Instruments$667 $566 
Endoscopy778 707 
Medical864 778 
Neurovascular310 284 
Neuro Cranial380 355 
$2,999 $2,690 
Orthopaedics and Spine:
Knees$588 $566 
Hips393 375 
Trauma and Extremities830 769 
Spine300 284 
Other133 94 
$2,244 $2,088 
Total$5,243 $4,778 
Net Sales by Geography
Three Months 2024Three Months 2023
United StatesInternationalUnited StatesInternational
MedSurg and Neurotechnology:
Instruments$532 $135 $441 $125 
Endoscopy636 142 573 134 
Medical715 149 612 166 
Neurovascular121 189 118 166 
Neuro Cranial309 71 289 66 
$2,313 $686 $2,033 $657 
Orthopaedics and Spine:
Knees$429 $159 $416 $150 
Hips251 142 236 139 
Trauma and Extremities611 219 554 215 
Spine221 79 212 72 
Other89 44 61 33 
$1,601 $643 $1,479 $609 
Total$3,914 $1,329 $3,512 $1,266 
We sell certain customer lease agreements and the related leased assets to third-party financial institutions to accelerate our cash collection cycle. The lease receivables are sold without recourse and are derecognized from our Consolidated Balance Sheets at the time of sale. Under the terms of our arrangements, we collect lease payments on behalf of the financial institutions but maintain no other form of continuing involvement. Sales of these lease agreements are classified as operating activities in our Consolidated Statements of Cash Flows. Fees earned for our servicing activities are immaterial. Revenue related to customer lease agreements sold under these arrangements represented approximately 3% of our total revenue for the three months 2024 and 2023.    
Contract Assets and Liabilities
On March 31, 2024 and December 31, 2023 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 $866 and $860 on March 31, 2024 and December 31, 2023 are classified within accrued
Dollar amounts are in millions except per share amounts or as otherwise specified.
5

STRYKER CORPORATION
2024 First Quarter Form 10-Q
expenses and other liabilities and other noncurrent liabilities within our Consolidated Balance Sheets based on the timing of when we expect to complete our performance obligations.
Changes in contract liabilities during the three months 2024 were as follows:
March 31
2024
Beginning contract liabilities$860 
Revenue recognized from beginning of year contract liabilities(153)
Net advance consideration received during the period159 
Ending contract liabilities$866 
NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)
Three Months 2024Marketable SecuritiesPension PlansHedgesFinancial Statement TranslationTotal
Beginning$ $(28)$39 $(427)$(416)
OCI  2 16 81 99 
Income taxes  (4)(40)(44)
Reclassifications to:
Cost of sales  (10) (10)
Other (income) expense, net  (2)(8)(10)
Income taxes  2 2 4 
Net OCI$ $2 $2 $35 $39 
Ending$ $(26)$41 $(392)$(377)
Three Months 2023Marketable SecuritiesPension PlansHedgesFinancial Statement TranslationTotal
Beginning$(1)$31 $52 $(303)$(221)
OCI  2 3 (99)(94)
Income taxes (3)(1)32 28 
Reclassifications to:
Cost of sales  (13) (13)
Other (income) expense, net (1)(1)(8)(10)
Income taxes  3 2 5 
Net OCI$ $(2)$(9)$(73)$(84)
Ending$(1)$29 $43 $(376)$(305)
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 2023.
Foreign Currency Hedges
March 2024Cash FlowNet InvestmentNon-DesignatedTotal
Gross notional amount$1,659 $1,621 $4,283 $7,563 
Maximum term in years2.6
Fair value:
Other current assets$29 $90 $27 $146 
Other noncurrent assets3 6  9 
Other current liabilities(19) (8)(27)
Other noncurrent liabilities(2)(27) (29)
Total fair value$11 $69 $19 $99 
December 2023Cash FlowNet InvestmentNon-DesignatedTotal
Gross notional amount$1,650 $1,662 $4,315 $7,627 
Maximum term in years2.9
Fair value:
Other current assets$24 $74 $16 $114 
Other noncurrent assets2   2 
Other current liabilities(16) (36)(52)
Other noncurrent liabilities(2)(43) (45)
Total fair value$8 $31 $(20)$19 
We had €1.5 billion at March 31, 2024 and December 31, 2023 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 at March 31, 2024 and December 31, 2023 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 $122 in the three months 2024.
Currency Exchange Rate Gains (Losses) Recognized in Net Earnings
Three Months
Derivative InstrumentRecognized in:20242023
Cash FlowCost of sales$10 $13 
Net InvestmentOther income (expense), net8 8 
Non-DesignatedOther income (expense), net3 (4)
Total$21 $17 
Pretax gains (losses) on derivatives designated as cash flow hedges of $26 and net investment hedges of $24 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months of March 31, 2024. 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 $4 recorded in AOCI related to 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 March 31, 2024. The cash flow effect of interest rate hedges is recorded in cash flow from operations.
Dollar amounts are in millions except per share amounts or as otherwise specified.
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STRYKER CORPORATION
2024 First Quarter Form 10-Q
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 2023.
In 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 2024.
Assets Measured at Fair Value
March 31December 31
20242023
Cash and cash equivalents$2,330 $2,971 
Trading marketable securities234 209 
Level 1 - Assets$2,564 $3,180 
Available-for-sale marketable securities:
Corporate and asset-backed debt securities$42 $43 
United States agency debt securities1 4 
United States treasury debt securities30 31 
Certificates of deposit4 4 
Total available-for-sale marketable securities$77 $82 
Foreign currency exchange forward contracts155 116 
Level 2 - Assets$232 $198 
Total assets measured at fair value$2,796 $3,378 
Liabilities Measured at Fair Value
March 31December 31
20242023
Deferred compensation arrangements$234 $209 
Level 1 - Liabilities$234 $209 
Foreign currency exchange forward contracts$56 $97 
Level 2 - Liabilities$56 $97 
Contingent consideration:
Beginning$289 $121 
Additions 192 
Change in estimate and foreign exchange(17)(2)
Settlements(1)(22)
Ending$271 $289 
Level 3 - Liabilities$271 $289 
Total liabilities measured at fair value$561 $595 
Fair Value of Available for Sale Securities by Maturity
March 31December 31
20242023
Due in one year or less$36 $46 
Due after one year through three years$41 $36 
On March 31, 2024 and December 31, 2023 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest income on cash and cash equivalents, short-term investments and marketable securities income was $36 and $13 in the three months 2024 and 2023, 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 February 2024 we reached an agreement with PureWick Corporation and its affiliates to settle patent infringement claims related to our PrimaFit and PrimoFit products. The terms of the settlement agreement are confidential and did not have a significant impact to our previously recorded reserves, financial position, results of operations or cash flows.
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.
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. Based on the information that has been received related to the matters discussed above, our accrual for these matters was $277 at March 31, 2024, representing our best estimate of probable loss. The final outcomes of these matters are dependent on many factors that are difficult to predict. Accordingly the ultimate cost related to these matters may be materially different than the amount of our current estimate and accruals and could have a material adverse effect on our results of operations and cash flows.
Leases
March 31December 31
20242023
Right-of-use assets $525 $494 
Lease liabilities, current $157 $143 
Lease liabilities, non-current $378 $356 
Other information:
Weighted-average remaining lease term (years)5.25.5
Weighted-average discount rate3.92 %3.87 %
Three Months
20242023
Operating lease cost$47 $38 
Dollar amounts are in millions except per share amounts or as otherwise specified.
7

STRYKER CORPORATION
2024 First Quarter Form 10-Q
NOTE 7 - ACQUISITIONS
We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. In the three months 2024 and 2023 cash paid for acquisitions, net of cash acquired was $246 and $0.
On March 20, 2024 we acquired SERF SAS (SERF) for a purchase price of $246. SERF's implants strengthen the global portfolio of our Joint Replacement business within Orthopaedics and Spine. The purchase price allocation for SERF is based on preliminary valuations, primarily related to developed technology and customer relationships. Goodwill attributable to the acquisition is not deductible for tax purposes.
In May 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.
The purchase price allocation for Cerus is:
Purchase Price Allocation of Acquired Net Assets
2023Cerus
Tangible assets acquired:
Accounts receivable$1 
Inventory2 
Deferred income tax assets4 
Other assets1 
Deferred income tax liabilities(60)
Other liabilities(22)
Intangible assets:
Developed technology240 
Goodwill315 
Purchase price, net of cash acquired of $7
$481 
Weighted average amortization period at acquisition (years):
Developed technologies13
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.
Consolidated Estimated Amortization Expense
Remainder of 20242025202620272028
$468 $593 $537 $514 $468 
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. Certain of our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on March 31, 2024.
On March 31, 2024 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. The maximum amount of our commercial paper that can be outstanding at any time is $2,250.
Summary of Total DebtMarch 31December 31
20242023
RateDue
Senior unsecured notes:
3.375%May 15, 2024$600 $600 
FloatingNovember 16, 2024540 554 
0.250%December 3, 2024918 940 
1.150%June 15, 2025649 648 
3.375%November 1, 2025749 749 
3.500%March 15, 2026997 997 
2.125%November 30, 2027808 828 
3.650%March 7, 2028598 598 
4.850%December 8, 2028596 596 
3.375%December 11, 2028645 661 
0.750%March 1, 2029861 883 
1.950%June 15, 2030991 991 
2.625%November 30, 2030696 713 
1.000%December 3, 2031803 823 
4.100%April 1, 2043393 393 
4.375%May 15, 2044396 396 
4.625%March 15, 2046983 983 
2.900%June 15, 2050642 642 
Total debt$12,865 $12,995 
Less current maturities2,058 2,094 
Total long-term debt$10,807 $10,901 
March 31December 31
20242023
Unamortized debt issuance costs$34 $50 
Borrowing capacity on existing facilities$2,159 $2,160 
Fair value of senior unsecured notes$12,008 $12,252 
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 14.6% and 12.8% in the three months 2024 and 2023. The effective tax rates for the three months 2024 and 2023 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items.
NOTE 10 - SEGMENT INFORMATION
Three Months
20242023
MedSurg and Neurotechnology$2,999 $2,690 
Orthopaedics and Spine2,244 2,088 
Net sales$5,243 $4,778 
MedSurg and Neurotechnology$804 $627 
Orthopaedics and Spine605 601 
Segment operating income$1,409 $1,228 
Items not allocated to segments:
Corporate and other
$(263)$(222)
Acquisition and integration-related costs13 (6)
Amortization of intangible assets
(153)(161)
Structural optimization and other special charges(14)(42)
Medical device regulations
(13)(28)
Recall-related matters
(5) 
Regulatory and legal matters
(2)(34)
Consolidated operating income$972 $735 
There were no significant changes to total assets by segment from the information provided in our Annual Report on Form 10-K for 2023.
Dollar amounts are in millions except per share amounts or as otherwise specified.
8

STRYKER CORPORATION
2024 First Quarter Form 10-Q
ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ABOUT STRYKER
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.
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 result in 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.
Overview of the Three Months
In the three months 2024 we achieved sales growth of 9.7% from 2023. Excluding the impact of acquisitions and divestitures sales grew 10.0% in constant currency. We reported operating income margin of 18.5%, net earnings of $788 and net earnings per diluted share of $2.05. Excluding the impact of certain items, adjusted operating income margin(1) increased by 80 basis points to 21.9%, with adjusted net earnings(1) of $962 and adjusted net earnings per diluted share(1) of $2.50, an increase of 16.8% from 2023.
Recent Developments
On March 20, 2024 we acquired SERF for a purchase price of $246. SERF's implants strengthen the global portfolio of our Joint Replacement business within Orthopaedics and Spine. Refer to Note 7 to our Consolidated Financial Statements for further information.
(1) Refer to "Non-GAAP Financial Measures" for a discussion of non-GAAP financial measures used in this report and a reconciliation to the most directly comparable GAAP financial measure.

CONSOLIDATED RESULTS OF OPERATIONS
Three Months
Percent Net SalesPercentage
2024202320242023Change
Net sales$5,243 $4,778 100.0 %100.0 %9.7 %
Gross profit3,333 3,016 63.6 63.1 10.5 
Research, development and engineering expenses368 339 7.0 7.1 8.6 
Selling, general and administrative expenses1,840 1,781 35.1 37.3 3.3 
Amortization of intangible assets153 161 2.9 3.4 (5.0)
Other income (expense), net(49)(56)(0.9)(1.2)(12.5)
Income taxes135 87 nmnm55.2
Net earnings$788 $592 15.0 %12.4 %33.1 %
Net earnings per diluted share$2.05 $1.54 33.1 %
Adjusted net earnings per diluted share(1)
$2.50 $2.14 16.8 %


nm - not meaningful
Dollar amounts are in millions except per share amounts or as otherwise specified.
9

STRYKER CORPORATION
2024 First Quarter Form 10-Q
Geographic and Segment Net SalesThree Months
Percentage Change
20242023As ReportedConstant
Currency
Geographic:
United States$3,914 $3,512 11.4 %11.4 %
International1,329 1,266 4.9 6.8 
Total$5,243 $4,778 9.7 %10.2 %
Segment:
MedSurg and Neurotechnology$2,999 $2,690 11.5 %12.0 %
Orthopaedics and Spine2,244 2,088 7.5 8.0 
Total$5,243 $4,778 9.7 %10.2 %
Supplemental Net Sales Growth Information
Three Months
Percentage Change
United StatesInternational
20242023As ReportedConstant CurrencyAs ReportedAs ReportedConstant Currency
MedSurg and Neurotechnology:
Instruments$667 $566 17.7 %17.9 %20.3 %8.6 %9.8 %
Endoscopy778 707 10.1 10.5 11.1 5.9 8.1 
Medical864 778 11.0 11.1 16.8 (10.3)(9.5)
Neurovascular310 284 9.1 11.4 2.9 13.4 17.5 
Neuro Cranial380 355 7.0 7.5 7.0 6.7 9.5 
$2,999 $2,690 11.5 %12.0 %13.8 %4.3 %6.4 %
Orthopaedics and Spine:
Knees$588 $566 4.0 %4.5 %3.1 %6.3 %8.2 %
Hips393 375 5.1 6.1 6.8 2.1 5.0 
Trauma and Extremities830 769 7.9 8.0 10.3 1.7 2.1 
Spine300 284 5.5 5.7 3.9 10.2 11.1 
Other133 94 41.2 44.2 45.6 33.1 41.4 
$2,244 $2,088 7.5 %8.0 %8.3 %5.6 %7.4 %
Total $5,243 $4,778 9.7 %10.2 %11.4 %4.9 %6.8 %
Note: 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.
Consolidated Net Sales
Consolidated net sales increased 9.7% in the three months 2024 as reported and 10.2% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.5%. Excluding the 0.2% impact of acquisitions and divestitures, net sales in constant currency increased by 9.3% from increased unit volume and 0.7% 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 11.5% in the three months 2024 as reported and 12.0% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.5%. Excluding the 0.4% impact of acquisitions and divestitures, net sales in constant currency increased by 10.2% 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.
Orthopaedics and Spine Net Sales
Orthopaedics and Spine net sales increased 7.5% in the three months 2024 as reported and 8.0% in constant currency, as foreign currency exchange rates negatively impacted net sales by 0.5%. Net sales in constant currency increased 8.2% from increased unit volume partially offset by 0.2% from lower prices. The unit volume increase was due to higher shipments across all Orthopaedics and Spine businesses.
Gross Profit
Gross profit was $3,333 and $3,016 in the three months 2024 and 2023. The key components of the change were:
Gross Profit
Percent Net Sales
Three Months 202363.1 %
Sales pricing30 bps
Volume and mix60 bps
Manufacturing and supply chain costs(40) bps
Three Months 202463.6 %
Gross profit as a percentage of net sales in the three months 2024 increased to 63.6% from 63.1% in 2023 primarily due to favorable volumes.
While segment mix was not a significant driver of the change in gross profit as a percent of net sales between the three months 2024 and 2023, 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 increased $29 or 8.6% in the three months 2024. As a percentage of net sales, expenses in the three months 2024 of 7.0% was relatively consistent with the three months 2023 of 7.1%.
Dollar amounts are in millions except per share amounts or as otherwise specified.
10

STRYKER CORPORATION
2024 First Quarter Form 10-Q
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased $59 or 3.3% in the three months 2024 and decreased as a percentage of net sales to 35.1% from 37.3% in 2023, primarily due to charges in the three months 2023 for structural optimization and legal matters, in addition to continued spend discipline in the three months 2024.
Amortization of Intangible Assets
Amortization of intangible assets was $153 and $161 in the three months and 2024 and 2023. Refer to Note 7 to our Consolidated Financial Statements for further information.
Operating Income
Operating income was $972 and $735 in the three months 2024 and 2023. Operating income as a percentage of net sales in the three months 2024 increased to 18.5% from 15.4% in 2023. Refer to the discussion above for the primary drivers of the change.
MedSurg and Neurotechnology operating income as a percentage of net sales increased to 26.8% in the three months 2024 from 23.3% in 2023. Orthopaedics and Spine operating income as a percentage of net sales decreased to 27.0% in the three months 2024 from 28.8% in 2023. The key components of the change were:
Operating Income
Percent Net Sales
MedSurg and NeurotechnologyOrthopaedics and Spine
Three Months 202323.3 %28.8 %
Sales pricing100 bps (10) bps
Volume370 bps 160 bps
Manufacturing and supply chain costs190 bps (50) bps
Research, development and engineering expenses(100) bps (90) bps
Selling, general and administrative expenses(210) bps (190) bps
Three Months 202426.8 %27.0 %
The increase in MedSurg and Neurotechnology operating income as a percentage of net sales for the three months was primarily driven by higher prices, higher unit volumes and lower manufacturing and supply chain costs due to easing of inflationary pressures impacting the cost of raw materials in our MedSurg businesses partially offset by higher selling, general and administrative expenses and higher research, development and engineering 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 and higher research, development and engineering expenses due to disciplined increases in spend and investments to support our growth partially offset by higher unit volumes.
Other Income (Expense), Net
Other income (expense), net was ($49) and ($56) in the three months 2024 and 2023.
Income Taxes
Our effective tax rates were 14.6% and 12.8% in the three months 2024 and 2023. The effective tax rates for the three months 2024 and 2023 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items. The Organisation for Economic Cooperation and Development (OECD), which represents a coalition of member countries, has put forth two proposed base erosion and profit shifting frameworks that revise the existing profit allocation and nexus rules (Pillar One) and ensure a minimal level of taxation (Pillar Two). On December 12, 2022 the European Union member states agreed to implement the Inclusive Framework’s global corporate minimum tax rate of 15%, and various countries within and outside the European Union have either enacted or proposed new tax laws implementing Pillar Two in 2024. The OECD continues to release additional guidance and we anticipate more countries will enact similar tax laws. Some of the new tax laws are effective in 2024 while others will be effective in future years. These tax law changes and any additional contemplated tax law changes could increase tax expense in future periods.
Net Earnings
Net earnings increased to $788 or $2.05 per diluted share in the three months 2024 from $592 or $1.54 per diluted share in 2023. Refer to the discussion above for the primary drivers of the change.
Dollar amounts are in millions except per share amounts or as otherwise specified.
11

STRYKER CORPORATION
2024 First 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, specific costs (e.g., deal costs and costs associated with legal entity rationalization) related to the consummation of the acquisition process and legal entity rationalization and acquisition-related tax items.
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 probable loss, or the minimum of the range of probable losses when a best estimate within a range is not known, 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 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.
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 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.






















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

STRYKER CORPORATION
2024 First Quarter Form 10-Q




Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2024Gross ProfitSelling, General & Administrative ExpensesResearch, Development & Engineering ExpensesOperating IncomeOther Income (Expense), NetIncome TaxesNet EarningsEffective
Tax Rate
Diluted EPS
Reported$3,333 $1,840 $368 $972 $(49)$135 $788 14.6 %$2.05 
Reported percent net sales63.6 %35.1 %7.0 %18.5 %(0.9)%nm15.0 %
Acquisition and integration-related costs:
Inventory stepped-up to fair value— — — — — — — — — 
Other acquisition and integration-related (a)— 13 — (13)— (14)0.3 (0.04)
Amortization of purchased intangible assets— — — 153 — 32 121 1.4 0.31 
Structural optimization and other special charges (b)(11)— 14 — 11 0.2 0.03 
Medical device regulations (c)— (12)13 — 10 0.1 0.03 
Recall-related matters (d)— (5)— — 0.1 0.01 
Regulatory and legal matters (e)— (2)— — — — 
Tax matters (f)— — — — — (41)41 (4.4)0.11 
Adjusted$3,337 $1,835 $356 $1,146 $(49)$135 $962 12.3 %$2.50 
Adjusted percent net sales63.6 %35.0 %6.8 %21.9 %(0.9)%nm18.3 %
Three Months 2023Gross ProfitSelling, General & Administrative ExpensesResearch, Development & Engineering ExpensesOperating IncomeOther Income (Expense), NetIncome TaxesNet EarningsEffective
Tax Rate
Diluted EPS
Reported$3,016 $1,781 $339 $735 $(56)$87 $592 12.8 %$1.54 
Reported percent net sales63.1 %37.3 %7.1 %15.4 %(1.2)%nm12.4 %
Acquisition and integration-related costs:
Inventory stepped-up to fair value— — — — — — — — — 
Other acquisition and integration-related (a)— (6)— — 0.1 0.01 
Amortization of purchased intangible assets— — — 161 — 34 127 2.0 0.33 
Structural optimization and other special charges (b)(40)— 42 — 34 0.3 0.09 
Medical device regulations (c)— — (28)28 — 23 0.2 0.06 
Recall-related matters (d)— — — — — — — — — 
Regulatory and legal matters (e)— (34)— 34 — 28 0.3 0.07 
Tax matters (f)— — — — (9)(20)11 (2.9)0.04 
Adjusted$3,018