STRYKER CORP, 10-K filed on 2/6/2020
Annual Report
v3.19.3.a.u2
COVER PAGE - USD ($)
12 Months Ended
Dec. 31, 2019
Jan. 31, 2020
Jun. 30, 2019
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
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    
Title of 12(g) Security None    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Shell Company false    
Entity Public Float     $ 71,863,352,935
Entity Common Stock, Shares Outstanding   374,575,145  
Documents Incorporated by Reference
Portions of the proxy statement to be filed with the U.S. Securities and Exchange Commission relating to the 2020 Annual Meeting of Shareholders (the 2020 proxy statement) are incorporated by reference into Part III.
   
Amendment Flag false    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000310764    
Current Fiscal Year End Date --12-31    
Common Stock, $.10 Par Value      
Entity Information [Line Items]      
Title of 12(b) Security Common Stock, $.10 Par Value    
Trading Symbol SYK    
Security Exchange Name NYSE    
1.125% Notes due 2023      
Entity Information [Line Items]      
Title of 12(b) Security 1.125% Notes due 2023    
Trading Symbol SYK23    
Security Exchange Name NYSE    
0.250% Notes due 2024      
Entity Information [Line Items]      
Title of 12(b) Security 0.250% Notes due 2024    
Trading Symbol SYK24A    
Security Exchange Name NYSE    
2.125% Notes due 2027      
Entity Information [Line Items]      
Title of 12(b) Security 2.125% Notes due 2027    
Trading Symbol SYK27    
Security Exchange Name NYSE    
0.750% Notes due 2029      
Entity Information [Line Items]      
Title of 12(b) Security 0.750% Notes due 2029    
Trading Symbol SYK29    
Security Exchange Name NYSE    
2.625% Notes due 2030      
Entity Information [Line Items]      
Title of 12(b) Security 2.625% Notes due 2030    
Trading Symbol SYK30    
Security Exchange Name NYSE    
1.000% Notes due 2031      
Entity Information [Line Items]      
Title of 12(b) Security 1.000% Notes due 2031    
Trading Symbol SYK31    
Security Exchange Name NYSE    
Floating Rate Notes due 2020      
Entity Information [Line Items]      
Title of 12(b) Security Floating Rate Notes due 2020    
Trading Symbol SYK20A    
Security Exchange Name NYSE    
v3.19.3.a.u2
Consolidated Statements Of Earnings - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement [Abstract]      
Net sales $ 14,884 $ 13,601 $ 12,444
Cost of sales 5,188 4,663 4,264
Gross profit 9,696 8,938 8,180
Research, development and engineering expenses 971 862 787
Selling, general and administrative expenses 5,356 5,099 4,552
Recall charges 192 23 173
Amortization of intangible assets 464 417 371
Total operating expenses 6,983 6,401 5,883
Operating income 2,713 2,537 2,297
Other income (expense), net (151) (181) (234)
Earnings before income taxes 2,562 2,356 2,063
Income taxes 479 (1,197) 1,043
Net earnings $ 2,083 $ 3,553 $ 1,020
Net earnings per share of common stock:      
Basic net earnings per share of common stock (in dollars per share) $ 5.57 $ 9.50 $ 2.73
Diluted net earnings per share of common stock (in dollars per share) $ 5.48 $ 9.34 $ 2.68
Weighted-average shares outstanding (in millions):      
Basic (in shares) 374.0 374.1 374.0
Effect of dilutive employee stock compensation (in shares) 5.9 6.2 6.1
Diluted (in shares) 379.9 380.3 380.1
Anti-dilutive shares excluded from the calculation of dilutive employee stock compensation 0.0 0.0 0.0
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Net earnings $ 2,083 $ 3,553 $ 1,020
Other comprehensive income (loss), net of tax      
Marketable securities 1 0 (4)
Pension plans (42) (3) (2)
Unrealized gains (losses) on designated hedges (3) 22 4
Financial statement translation 69 (97) 210
Total other comprehensive income (loss), net of tax 25 (78) 208
Comprehensive income $ 2,108 $ 3,475 $ 1,228
v3.19.3.a.u2
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Current assets    
Cash and cash equivalents $ 4,337 $ 3,616
Marketable securities 88 83
Accounts receivable, less allowance of $88 ($64 in 2018) 2,893 2,332
Inventories:    
Materials and supplies 677 606
Work in process 178 149
Finished goods 2,427 2,200
Total inventories 3,282 2,955
Prepaid expenses and other current assets 760 747
Total current assets 11,360 9,733
Property, plant and equipment:    
Land, buildings and improvements 1,263 1,041
Machinery and equipment 3,451 3,236
Total property, plant and equipment 4,714 4,277
Less allowance for depreciation 2,147 1,986
Property, plant and equipment, net 2,567 2,291
Goodwill 9,069 8,563
Other intangibles, net 4,227 4,163
Noncurrent deferred income tax assets 1,575 1,678
Other noncurrent assets 1,369 801
Total assets 30,167 27,229
Current liabilities    
Accounts payable 675 646
Accrued compensation 955 917
Income taxes 171 158
Dividend payable 213 192
Accrued expenses and other liabilities 1,527 1,521
Current maturities of debt 859 1,373
Total current liabilities 4,400 4,807
Long-term debt, excluding current maturities 10,231 8,486
Income taxes 1,068 1,228
Other noncurrent liabilities 1,661 978
Total liabilities 17,360 15,499
Shareholders' equity    
Common stock, $0.10 par value 37 37
Additional paid-in capital 1,628 1,559
Retained earnings 11,748 10,765
Accumulated other comprehensive loss (606) (631)
Total shareholders' equity 12,807 11,730
Total liabilities & shareholders' equity $ 30,167 $ 27,229
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Consolidated Balance Sheets (Parentheticals) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Accounts receivable, allowance $ 88 $ 64
Common stock, par value (in dollars per share) $ 0.10 $ 0.10
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Consolidated Statements Of Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Total Stryker shareholders' equity
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Non-controlling interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Cumulative effect of accounting changes         $ 0    
Noncontrolling Interest, Increase from Business Combination             $ 114
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests             (99)
Beginning balance at Dec. 31, 2016     $ 37 $ 1,432 8,842 $ (761) 0
Beginning balance, shares at Dec. 31, 2016     374.6        
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock under stock compensation and benefit plans       (42)      
Issuance of common stock under stock compensation and benefit plans, shares     1.7        
Repurchase of common stock       (7) (223)    
Repurchase of common stock, shares     (1.9)        
Share-based compensation       113      
Net earnings $ 1,020       1,020   0
Cash dividends declared         (653)    
Other comprehensive income (loss) 208         208  
Ending balance, shares at Dec. 31, 2017     374.4        
Ending balance at Dec. 31, 2017 9,980 $ 9,966 $ 37 1,496 8,986 (553) 14
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Cumulative effect of accounting changes         (759)    
Foreign currency exchange translation adjustment             (1)
Noncontrolling Interest, Increase from Business Combination             0
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests             (15)
Issuance of common stock under stock compensation and benefit plans       (49)      
Issuance of common stock under stock compensation and benefit plans, shares     1.9        
Repurchase of common stock       (7) (293)    
Repurchase of common stock, shares     (1.9)        
Share-based compensation       119      
Net earnings 3,553       3,553   0
Cash dividends declared         (722)    
Other comprehensive income (loss) (78)         (78)  
Ending balance, shares at Dec. 31, 2018     374.4        
Ending balance at Dec. 31, 2018 11,730 11,730 $ 37 1,559 10,765 (631) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Cumulative effect of accounting changes         0    
Foreign currency exchange translation adjustment             1
Noncontrolling Interest, Increase from Business Combination             0
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests             0
Issuance of common stock under stock compensation and benefit plans     $ 0 (50)      
Issuance of common stock under stock compensation and benefit plans, shares     2.0        
Repurchase of common stock $ (307)   $ 0 (8) (299)    
Repurchase of common stock, shares (1.9)   (1.9)        
Share-based compensation       127      
Net earnings $ 2,083       2,083   0
Cash dividends declared         (801)    
Other comprehensive income (loss) 25            
Ending balance, shares at Dec. 31, 2019     374.5        
Ending balance at Dec. 31, 2019 $ 12,807 $ 12,807 $ 37 $ 1,628 $ 11,748 $ (606) 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Foreign currency exchange translation adjustment             $ 0
v3.19.3.a.u2
Consolidated Statements Of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Operating activities      
Net earnings $ 2,083 $ 3,553 $ 1,020
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Depreciation 314 306 271
Amortization of intangible assets 464 417 371
Share-based compensation 127 119 113
Recall charges 192 23 173
Sale of inventory stepped up to fair value at acquisition 67 16 22
Deferred income tax (benefit) expense 126 (1,582) 36
Changes in operating assets and liabilities:      
Accounts receivable (563) (60) (162)
Inventories (400) (385) (320)
Accounts payable 63 116 21
Accrued expenses and other liabilities 113 289 90
Recall-related payments (177) (90) (526)
Income taxes (105) (156) 704
Other, net (113) 44 (254)
Net cash provided by operating activities 2,191 2,610 1,559
Investing activities      
Acquisitions, net of cash acquired (802) (2,451) (831)
Purchases of marketable securities (74) (226) (270)
Proceeds from sales of marketable securities 69 394 87
Purchases of property, plant and equipment (649) (572) (598)
Other investing, net 1 (2) (1)
Net cash used in investing activities (1,455) (2,857) (1,613)
Financing activities      
Proceeds and payments on short-term borrowings, net (7) (1) (200)
Proceeds from issuance of long-term debt 2,642 3,126 499
Payments on long-term debt (1,342) (669) 0
Dividends paid (778) (703) (636)
Repurchases of common stock (307) (300) (230)
Cash paid for taxes from withheld shares (136) (120) (95)
Payments to purchase noncontrolling interest 0 (14) (99)
Other financing, net (69) 10 (33)
Net cash provided by (used in) financing activities 3 1,329 (794)
Effect of exchange rate changes on cash and cash equivalents (18) (8) 74
Change in cash and cash equivalents 721 1,074 (774)
Cash and cash equivalents at beginning of year 3,616 2,542 3,316
Cash and cash equivalents at end of year 4,337 3,616 2,542
Supplemental cash flow disclosure:      
Cash paid for income taxes, net of refunds 457 539 312
Interest Paid, Excluding Capitalized Interest, Operating Activities $ 286 $ 248 $ 231
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Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Significant Accounting Policies [Abstract]  
Significant Accounting Policies SIGNIFICANT ACCOUNTING POLICIES
Nature of Operations: Stryker (the "Company," "we," "us," or "our") is one of the world's leading medical technology companies and, together with its customers, is driven to make healthcare better. The Company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that improve patient and hospital outcomes. Our products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment and intensive care disposable products; neurosurgical, neurovascular and spinal devices; as well as other products used in a variety of medical specialties.
Basis of Presentation and Consolidation: The Consolidated Financial Statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. We have no material interests in variable interest entities and none that require consolidation. Certain prior year amounts have been reclassified to conform with current year presentation in our Consolidated Financial Statements.
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of net sales and expenses in the reporting period. Actual results could differ from those estimates.
Revenue Recognition: Sales are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration we expect to receive in exchange for satisfying the performance obligations. Our sales continue to be recognized primarily when we transfer control to the customer, which can be on the date of shipment, the date of receipt by the customer or, for most Orthopaedics products, when we have received a purchase order and appropriate notification the product has been used or implanted. Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time.
Sales represent the amount of consideration we expect to receive from customers in exchange for transferring products and services. Net sales exclude sales, value added and other taxes we collect from customers. Other costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of most of our sales. We extend terms of payment to our customers based on commercially reasonable terms for the markets of our customers, while also considering their credit quality.
A provision for estimated sales returns, discounts and rebates is recognized as a reduction of sales in the same period that the sales are recognized. Our estimate of the provision for sales returns has been established based on contract terms with our customers and historical business practices and current trends. Shipping and handling costs charged to customers are included in net sales.
Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, warehousing costs and other shipping and handling activity.
Research, Development and Engineering Expenses: Research and development costs are charged to expense as incurred. Costs include research, development and engineering activities relating to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of customers and patients. Costs primarily consist of salaries, wages, consulting and depreciation and maintenance of research facilities and equipment.
Selling, General and Administrative Expenses: Selling, general and administrative expense is primarily comprised of selling expenses, marketing expenses, administrative and other indirect overhead costs, amortization of loaner instrumentation, depreciation and amortization expense of non-manufacturing assets and other miscellaneous operating items.
Currency Translation: Financial statements of subsidiaries outside the United States generally are measured using the local currency as the functional currency. Adjustments to translate those statements into United States Dollars are recorded in other comprehensive income (OCI). Transactional exchange gains and losses are included in earnings.
Cash Equivalents: Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost.
Marketable Securities: Marketable securities consist of marketable debt securities, certificates of deposit and mutual funds. Mutual funds are acquired to offset changes in certain liabilities related to deferred compensation arrangements and are expected to be used to settle these liabilities. Pursuant to our investment policy, all individual marketable security investments must have a minimum credit quality of single A (Standard & Poor’s and Fitch) and A2 (Moody’s Corporation) at the time of acquisition, while the overall portfolio of marketable securities must maintain a minimum average credit quality of double A (Standard & Poor’s and Fitch) or Aa (Moody’s Corporation). In the event of a rating downgrade below the minimum credit quality subsequent to purchase, the marketable security investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable security investment portfolio. Our marketable securities are classified as available-for-sale and trading securities. Investments in trading securities represent participant-directed investments of deferred employee compensation.
Accounts Receivable: Accounts receivable consists of trade and other miscellaneous receivables. An allowance is maintained for doubtful accounts for estimated losses in the collection of accounts receivable. Estimates are made regarding the ability of customers to make required payments based on historical credit experience and expected future trends. Accounts receivable are written off when all reasonable collection efforts are exhausted.
Inventories: Inventories are stated at the lower of cost or net realizable value, with cost generally determined using the first-in, first-out (FIFO) cost method. For excess and obsolete inventory resulting from the potential inability to sell specific products at prices in excess of current carrying costs, reserves are maintained to reduce current carrying cost to market prices.
Financial Instruments: Our financial instruments consist of cash, cash equivalents, marketable securities, accounts receivable, other investments, accounts payable, debt and foreign currency exchange contracts. The carrying value of our financial instruments, with the exception of our senior unsecured notes, approximates fair value on December 31, 2019 and 2018. Refer to Notes 3 and 10 for further details.
All marketable securities are recognized at fair value. Adjustments to the fair value of marketable securities that are classified as
available-for-sale are recorded as increases or decreases, net of income taxes, within accumulated other comprehensive income (AOCI) in shareholders’ equity and adjustments to the fair value of marketable securities that are classified as trading are recorded in earnings. The amortized cost of marketable debt securities is adjusted for amortization of premiums and discounts to maturity computed under the effective interest method. Such amortization and interest and realized gains and losses are included in other income (expense), net. The cost of securities sold is determined by the specific identification method.
We review declines in the fair value of our investments classified as available-for-sale to determine whether the decline in fair value is other-than-temporary. The resulting losses from other-than-temporary impairments of available-for-sale marketable debt securities are included in earnings.
Derivatives: All derivatives are recognized at fair value and reported on a gross basis. We enter into forward currency exchange contracts to mitigate the impact of currency fluctuations on transactions denominated in nonfunctional currencies, thereby limiting our risk that would otherwise result from changes in exchange rates. The periods of the forward currency exchange contracts correspond to the periods of the exposed transactions, with realized gains and losses included in the measurement and recording of transactions denominated in the nonfunctional currencies. All forward currency exchange contracts are recorded at their fair value each period.
Forward currency exchange contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. These nonfunctional currency exposures principally relate to forecasted intercompany sales and purchases of manufactured products and generally have maturities up to eighteen months. Changes in value of derivatives designated as cash flow hedges are recorded in AOCI on the Consolidated Balance Sheets until earnings are affected by the variability of the underlying cash flows. At that time, the applicable amount of gain or loss from the derivative instrument that is deferred in shareholders’ equity is reclassified into earnings and is included in cost of goods sold in the Consolidated Statements of Earnings. Cash flows associated with these hedges are included in cash from operations in the same category as the cash flows from the items being hedged.
Forward currency exchange contracts are used to offset our exposure to the change in value of specific foreign currency denominated assets and liabilities, primarily intercompany payables and receivables. These derivatives are not designated as hedges and, therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related changes in value of foreign currency denominated assets and liabilities. The estimated fair value of our forward currency exchange contracts represents the measurement of the contracts at month-end spot rates as adjusted by current forward points.
From time to time, we designate derivative and non-derivative financial instruments as net investment hedges of our investments in certain international subsidiaries. For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is recognized in OCI and reported as a component of AOCI. We have elected to use the spot method to assess effectiveness for our derivatives designated as net investment hedges. Accordingly, the change in fair value attributable to changes in the spot rate is recorded in AOCI. We exclude the spot-forward difference from the assessment of hedge
effectiveness and amortize this amount separately on a straight-line basis over the term of the forward contracts. This amortization will be recorded in Other income (expense), net in our Consolidated Statements of Earnings.
From time to time, we designate forward starting interest rate derivative instruments as cash flow hedges to manage the exposure to interest rate volatility with regard to future issuance and refinancing of debt. The effective portion of the gain or loss on a forward starting interest rate derivative instrument that is designated and qualifies as a cash flow hedge is reported as a component of AOCI. Beginning in the period in which the debt refinancing occurs and the related derivative instruments is terminated, the effective portion of the gains or losses is then reclassified into interest expense over the term of the related debt.
Interest rate derivative instruments designated as fair value hedges have been used in the past to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.
Property, Plant and Equipment: Property, plant and equipment is stated at cost. Depreciation is generally computed by the straight-line method over the estimated useful lives of three to 30 years for buildings and improvements and three to 10 years for machinery and equipment.
Goodwill and Other Intangible Assets: Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses at the acquisition date, after amounts allocated to other identifiable intangible assets. Factors that contribute to the recognition of goodwill include synergies that are specific to our business and not available to other market participants and are expected to increase net sales and profits; acquisition of a talented workforce; cost savings opportunities; the strategic benefit of expanding our presence in core and adjacent markets; and diversifying our product portfolio.
The fair values of other identifiable intangible assets acquired in a business combination are primarily determined using the income approach. Other intangible assets include, but are not limited to, developed technology, customer and distributor relationships (which reflect expected continued customer or distributor patronage) and trademarks and patents. Intangible assets with determinable useful lives are amortized on a straight-line basis over their estimated useful lives of four to 40 years. Certain acquired trade names are considered to have indefinite lives and are not amortized, but are assessed annually for potential impairment as described below.
In some of our acquisitions, we acquire in-process research and development (IPRD) intangible assets. For acquisitions accounted for as business combinations IPRD is considered to be an indefinite-lived intangible asset until the research is completed (then it becomes a determinable-lived intangible asset) or determined to have no future use (then it is impaired). For asset acquisitions IPRD is expensed immediately unless there is an alternative future use.
Goodwill, Intangibles and Long-Lived Asset Impairment Tests: We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. In certain circumstances, we may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. Indefinite-lived intangible assets are also tested at least
annually for impairment by comparing the individual carrying values to the fair value.
We review long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows. Undiscounted cash flows expected to be generated by the related assets are estimated over the asset's useful life based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Assets classified as held for sale are recorded at the lower of carrying amount or fair value less costs to sell.
Share-Based Compensation: We use share based compensation in the form of stock options, restricted stock units (RSUs) and performance stock units (PSUs). Stock options are granted under long-term incentive plans to certain key employees and non-employee directors at an exercise price not less than the fair market value of the underlying common stock, which is the quoted closing price of our common stock on the day prior to the date of grant. The options are granted for periods of up to 10 years and become exercisable in varying installments.
We grant RSUs to key employees and non-employee directors and PSUs to certain key employees under our long-term incentive plans. The fair value of RSUs is determined based on the number of shares granted and the quoted closing price of our common stock on the date of grant, adjusted for the fact that RSUs do not include anticipated dividends. RSUs generally vest in one-third increments over a three-year period and are settled in stock. PSUs are earned over a three-year performance cycle and vest in March of the year following the end of that performance cycle. The number of PSUs that will ultimately be earned is based on our performance relative to pre-established goals in that three-year performance cycle. The fair value of PSUs is determined based on the quoted closing price of our common stock on the day of grant.
Compensation expense is recognized in the Consolidated Statements of Earnings based on the estimated fair value of the awards on the grant date. Compensation expense recognized reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience and is recognized on a straight-line basis over the requisite service period, which is generally the period required to obtain full vesting. Management expectations related to the achievement of performance goals associated with PSU grants is assessed regularly and that assessment is used to determine whether PSU grants are expected to vest. If performance-based milestones related to PSU grants are not met or not expected to be met, any compensation expense recognized associated with such grants will be reversed.
Income Taxes: Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax bases of assets and liabilities and are measured using the enacted income tax rates in effect for the years in which the differences are expected to reverse. Deferred income tax benefits generally represent the change in net deferred income tax assets and liabilities in the year. Other amounts result from adjustments related to acquisitions and foreign currency as appropriate.
We operate in multiple income tax jurisdictions both within the United States and internationally. Accordingly, management must determine the appropriate allocation of income to each of these jurisdictions based on current interpretations of complex income tax regulations. Income tax authorities in these jurisdictions regularly
perform audits of our income tax filings. Income tax audits associated with the allocation of this income and other complex issues, including inventory transfer pricing and cost sharing, product royalty and foreign branch arrangements, may require an extended period of time to resolve and may result in significant income tax adjustments if changes to the income allocation are required between jurisdictions with different income tax rates.
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.
In June 2016 the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses for accounts receivables, loans and other financial instruments. The standard is not expected to have a material impact on our Consolidated Financial Statements.
Accounting Pronouncements Recently Adopted
On January 1, 2019 we adopted ASU 2016-02, Leases, and related amendments (ASC 842), which require lease assets and liabilities to be recorded on the balance sheet for leases with terms greater than twelve months. The adoption of this update did not have a material impact on our Consolidated Financial Statements. Refer to Note 7 for further information.
On January 1, 2019 we adopted ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies hedge accounting guidance, as well as improves presentation and disclosure to align the economic effects of risk management strategies in the financial statements. The adoption of this update did not have a material impact on our Consolidated Financial Statements.
No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.
v3.19.3.a.u2
Revenue Recognition
12 Months Ended
Dec. 31, 2019
Revenue Recognition [Abstract]  
Revenue Recognition REVENUE RECOGNITION
We disaggregate our net sales by product line and geographic location for each of our segments as we believe it best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors.
Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time. In 2019 less than 10% of our sales were recognized as services transferred over time. Refer to Note 1 for further discussion on our revenue recognition policies.
Segment Net Sales
 
 
 
 
 
Orthopaedics:
2019
 
2018
 
2017
Knees
$
1,815

 
$
1,701

 
$
1,595

Hips
1,383

 
1,336

 
1,303

Trauma and Extremities
1,639

 
1,580

 
1,478

Other
415

 
374

 
337

 
$
5,252

 
$
4,991

 
$
4,713

MedSurg:
 
 
 
 
 
Instruments
$
2,041

 
$
1,822

 
$
1,678

Endoscopy
1,983

 
1,846

 
1,652

Medical
2,264

 
2,118

 
1,969

Sustainability
286

 
259

 
258

 
$
6,574

 
$
6,045

 
$
5,557

Neurotechnology and Spine:
 
 
 
 
 
Neurotechnology
$
1,973

 
$
1,737

 
$
1,423

Spine
1,085

 
828

 
751

 
$
3,058

 
$
2,565

 
$
2,174

Total
$
14,884

 
$
13,601

 
$
12,444

United States Net Sales
 
 
 
 
 
Orthopaedics:
2019
 
2018
 
2017
Knees
$
1,347

 
$
1,244

 
$
1,169

Hips
882

 
838

 
820

Trauma and Extremities
1,051

 
1,001

 
950

Other
334

 
300

 
276

 
$
3,614

 
$
3,383

 
$
3,215

MedSurg:
 
 
 
 
 
Instruments
$
1,608

 
$
1,424

 
$
1,304

Endoscopy
1,577

 
1,432

 
1,290

Medical
1,787

 
1,630

 
1,525

Sustainability
283

 
257

 
257

 
$
5,255

 
$
4,743

 
$
4,376

Neurotechnology and Spine:
 
 
 
 
 
Neurotechnology
$
1,271

 
$
1,115

 
$
900

Spine
817

 
607

 
568

 
$
2,088

 
$
1,722

 
$
1,468

Total
$
10,957

 
$
9,848

 
$
9,059

International Net Sales
 
 
 
 
 
Orthopaedics:
2019
 
2018
 
2017
Knees
$
469

 
$
457

 
$
426

Hips
500

 
498

 
483

Trauma and Extremities
588

 
579

 
528

Other
81

 
74

 
61

 
$
1,638

 
$
1,608

 
$
1,498

MedSurg:
 
 
 
 
 
Instruments
$
433

 
$
398

 
$
374

Endoscopy
406

 
414

 
362

Medical
477

 
488

 
444

Sustainability
3

 
2

 
1

 
$
1,319

 
$
1,302

 
$
1,181

Neurotechnology and Spine:
 
 
 
 
 
Neurotechnology
$
702

 
$
622

 
$
523

Spine
268

 
221

 
183

 
$
970

 
$
843

 
$
706

Total
$
3,927

 
$
3,753

 
$
3,385


Orthopaedics
Orthopaedics products consist primarily of implants used in hip and knee joint replacements and trauma and extremity surgeries. Substantially all Orthopaedics sales are recognized when we have received a purchase order and appropriate notification the product has been used or implanted. For certain Orthopaedic products in the "other" category, we recognize sales at a point in time, as well
as over time for performance obligations that may include an obligation to complete installation, provide training and ongoing services. Performance obligations are satisfied within one year.
MedSurg
MedSurg products include surgical equipment and navigation systems (Instruments), endoscopic and communications systems (Endoscopy), patient handling, emergency medical equipment and intensive care disposable products (Medical), reprocessed and remanufactured medical devices (Sustainability) and other medical device products used in a variety of medical specialties. Substantially all MedSurg sales are recognized when a purchase order has been received and control has transferred. For certain Endoscopy, Instruments and Medical services, we may recognize sales over time as we satisfy performance obligations that may include an obligation to complete installation, provide training and perform ongoing services, generally performed within one year.
Neurotechnology and Spine
Neurotechnology and Spine products include neurosurgical, neurovascular, and spinal implant devices. Our neurotechnology offering includes products used for minimally invasive endovascular techniques; 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; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke. Our spinal implant offering includes cervical, thoracolumbar and interbody systems used in spinal injury, deformity and degenerative therapies. Substantially all Neurotechnology and Spine sales are recognized when a purchase order has been received and control has transferred.
Contract Assets and Liabilities
The nature of our products and services do not generally give rise to contract assets as we typically do not incur costs to fulfill a contract before a product or service is provided to a customer. Our costs to obtain contracts are typically in the form of sales commissions paid to employees of Stryker or third-party agents. We have elected to expense sales commissions associated with obtaining a contract as incurred as the amortization period is generally less than one year. These costs have been presented within selling, general and administrative expenses. On December 31, 2019 there were no contract assets recorded in our Consolidated Balance Sheets.
Our contract liabilities arise as a result of consideration received from customers at inception of contracts for certain businesses or where the timing of billing for services precedes satisfaction of our performance obligations. We generally satisfy performance obligations within one year from the contract inception date. Our contract liabilities were $313 and $327 on December 31, 2019 and December 31, 2018.
v3.19.3.a.u2
Fair Value Measurements
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified in their entirety based on the lowest level of input and disclosed in one of the following three categories:
Level 1
Quoted market prices in active markets for identical assets or liabilities.
Level 2
Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3
Unobservable inputs reflecting our assumptions or external inputs from active markets.
Use of observable market data, when available, is required in making fair value measurements. When inputs used fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We determine fair value for Level 1 instruments using exchange-traded prices for identical instruments. We determine fair value of Level 2 instruments using exchange-traded prices of similar instruments, where available, or utilizing other observable inputs that take into account our credit risk and that of our counterparties. Foreign currency exchange contracts and interest rate hedges are included in Level 2 and we use inputs other than quoted prices that are observable for the asset or liability. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis. Our Level 3 liabilities are comprised of contingent consideration arising from recently completed acquisitions. We determine fair value of these Level 3 liabilities using a discounted cash flow technique. Significant unobservable inputs were used in our assessment of fair value, including assumptions regarding future business results, discount rates, discount periods and probability assessments based on the likelihood of reaching various targets. We remeasure the fair value of our assets and liabilities each reporting period. We record the changes in fair value within selling, general and administrative expense and the changes in the time value of money within other income (expense), net.
Assets Measured at Fair Value
 
2019
2018
Cash and cash equivalents
$
4,337

$
3,616

Trading marketable securities
149

118

Level 1 - Assets
$
4,486

$
3,734

Available-for-sale marketable securities:
 
 
Corporate and asset-backed debt securities
$
32

$
38

United States agency debt securities
2

11

United States treasury debt securities
49

23

Certificates of deposit
5

11

Total available-for-sale marketable securities
$
88

$
83

Foreign currency exchange forward contracts
226

77

Interest rate swap asset
17


Level 2 - Assets
$
331

$
160

Total assets measured at fair value
$
4,817

$
3,894


Liabilities Measured at Fair Value
 
2019
2018
Deferred compensation arrangements
$
149

$
118

Level 1 - Liabilities
$
149

$
118

Foreign currency exchange forward contracts
$
23

$
20

Level 2 - Liabilities
$
23

$
20

Contingent consideration:
 
 
Beginning
$
117

$
32

Additions
298

77

Change in estimate
(10
)
15

Settlements
(99
)
(7
)
Ending
$
306

$
117

Level 3 - Liabilities
$
306

$
117

Total liabilities measured at fair value
$
478

$
255


Fair Value of Available for Sale Securities by Maturity
 
2019
2018
Due in one year or less
$
50

$
51

Due after one year through three years
$
38

$
32


On December 31, 2019 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income was $155, $119 and $60 in 2019, 2018 and 2017, 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. We do not consider these investments to be other-than-temporarily impaired on December 31, 2019. On December 31, 2019 the majority of our investments with unrealized losses that were not deemed to be other-than-temporarily impaired were in a continuous unrealized loss position for less than twelve months, and the losses were not material.
Securities in a Continuous Unrealized Loss Position
 
Number of Investments
Fair Value
Corporate and Asset-Backed
2
$
1

United States Treasury
6
13

Certificate of Deposit
4
1

Total
12
$
15


v3.19.3.a.u2
Derivative Instruments
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments DERIVATIVE INSTRUMENTS
Foreign Currency Hedges
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 exposure to loss is the asset balance of the instrument.
2019
Cash Flow
Net Investment
Non-Designated
Total
Gross notional amount
$
801

$
1,113

$
6,174

$
8,088

Maximum term in days
 
 
 
1646

Fair value:
 
 
 
 
Other current assets
$
5

$

$
180

$
185

Other noncurrent assets
1

40


41

Other current liabilities
(10
)

(11
)
(21
)
Other noncurrent liabilities
(2
)


(2
)
Total fair value
$
(6
)
$
40

$
169

$
203

2018
 
 
 
 
Gross notional amount
$
870

$

$
5,466

$
6,336

Maximum term in days
 
 
 
586

Fair value:
 
 
 
 
Other current assets
$
15

$

$
28

$
43

Other noncurrent assets
1


33

34

Other current liabilities
(5
)

(15
)
(20
)
Other noncurrent liabilities




Total fair value
$
11

$

$
46

$
57


In December 2019 and November 2018 we designated the issuance of €2,400 and €2,250 of senior unsecured notes as a net investment hedge to selectively hedge portions of our investment in certain international subsidiaries. The currency effects of our euro-denominated senior unsecured notes are reflected in AOCI within shareholders' equity where they offset gains and losses recorded on our net investment in international subsidiaries.
On December 31, 2019 the total after-tax gain in AOCI related to these designated net investment hedges was $17. We evaluate the effectiveness of our net investment hedges quarterly. We have not recognized any ineffectiveness in 2019.
In July 2019 we entered into €1.0 billion in certain forward currency contracts and designated these as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. We evaluate the effectiveness of our net investment hedges quarterly.
Net Currency Exchange Rate Gains (Losses)
Derivative Instrument
Recorded in:
2019
2018
2017
Cash Flow
Cost of sales
$
2

$
7

$
(6
)
Net Investment
Other income (expense), net
14



Non-Designated
Other income (expense), net
$
(7
)
$
(6
)
$
(9
)
 
Total
$
9

$
1

$
(15
)
Pretax gains (losses) on derivatives designated as cash flow of ($6) and net investment hedges of $27 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense) in earnings within 12 months as of December 31, 2019. This cash flow hedge reclassification is primarily due to the sale of inventory that includes previously hedged purchases. A component of the AOCI amounts related to net investment hedges is reclassified over the life of the hedge instruments as we elected to exclude the initial value of the component related to the spot-forward difference from the effectiveness assessment.
Interest Rate Hedges
In conjunction with our offering of senior unsecured notes in November 2019 we terminated cash flow hedges with gross notional amounts of €600 designated as forward starting interest rate swaps of our interest rates, the impact of which will be recognized over time as a benefit within interest expense. Pretax gains recorded in AOCI related to closed interest rate hedges of $6 are expected to be reclassified to other income (expense) in earnings within 12 months of December 31, 2019.
On December 31, 2019 we had interest rate swap agreements with notional amounts of $750 designated as forward starting interest rate swaps in anticipation of future debt issuances. Pretax gains of $17 were recorded in AOCI as of December 31, 2019. Upon the probable issuance of the debt, these amounts will be released to interest expense over the term of the debt. The cash flow effect of these hedges is recorded in cash flow from operations.
v3.19.3.a.u2
Accumulated Other Comprehensive (Loss) Income (AOCI)
12 Months Ended
Dec. 31, 2019
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) [Abstract]  
Accumulated Other Comprehensive (Loss) Income (AOCI) ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)
 
Marketable Securities
Pension Plans
Hedges
Financial Statement Translation
Total
2017
$
(4
)
$
(134
)
$
28

$
(443
)
$
(553
)
OCI
2

(16
)
36

(115
)
(93
)
Income taxes

1

(9
)
18

10

Reclassifications to:
 
 
 
 
 
Cost of Sales


(7
)

(7
)
Other (income) expense
(2
)
10



8

Income taxes

2

2


4

Net OCI

(3
)
22

(97
)
(78
)
2018
$
(4
)
$
(137
)
$
50

$
(540
)
$
(631
)
OCI

(74
)
3

101

30

Income taxes

26


(21
)
5

Reclassifications to:
 
 
 
 
 
Cost of Sales


(2
)

(2
)
Other (income) expense
1

8

(5
)
(14
)
(10
)
Income taxes

(2
)
1

3

2

Net OCI
1

(42
)
(3
)
69

25

2019
$
(3
)
$
(179
)
$
47

$
(471
)
$
(606
)

v3.19.3.a.u2
Acquisitions
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Acquisitions ACQUISITIONS
The aggregate purchase price of our acquisitions, net of cash acquired was $1,096 and $2,451 in 2019 and 2018. We acquired stock in companies and various assets that continue to support our capital deployment and product development strategies.
In October 2019 we completed the acquisition of Mobius Imaging and Cardan Robotics for net cash consideration of $360 and future regulatory and commercial milestone payments of up to $130. Mobius Imaging is a leader in point-of-care imaging technology focused on integrating advanced imaging technologies into medical workflow. Cardan Robotics is working to develop innovative robotics and navigation technology systems for surgical and interventional radiology procedures. Mobius Imaging and Cardan Robotics (Mobius) are part of our Spine business within Neurotechnology and Spine. For income tax purposes the acquisition is treated as an asset purchase. Goodwill attributable to the acquisition is deductible for tax purposes.
In March 2019 we completed the acquisition of OrthoSpace, Ltd. (OrthoSpace) for net cash consideration of $110 and future regulatory milestone payments of up to $110. OrthoSpace is a medical device company specializing in orthopaedic biodegradable technology for the treatment of irreparable rotator cuff tears. OrthoSpace is part of our Endoscopy business within MedSurg. Goodwill attributable to the acquisition is not deductible for tax purposes.
In November 2018 we completed the acquisition of K2M Group Holdings, Inc. (K2M) for $27.50 per share, or an aggregate purchase price of $1,380, net of cash acquired. K2M is a global leader of complex spine and minimally invasive solutions focused on achieving three-dimensional Total Body Balance. K2M is part of our Spine business within Neurotechnology and Spine. Goodwill attributable to the acquisition is not deductible for tax purposes.
In February 2018 we completed the acquisition of Entellus Medical, Inc. (Entellus) for $24.00 per share, or an aggregate purchase price of $697, net of cash acquired. Entellus is focused on delivering superior patient and physician experiences through products designed for the minimally invasive treatment of various ear, nose and throat (ENT) disease states. Entellus is part of our Neurotechnology business within Neurotechnology and Spine. Goodwill attributable to the acquisition is not deductible for tax purposes.
In November 2019 we announced a definitive agreement to acquire all of the issued and outstanding ordinary shares of Wright Medical Group N.V. (Wright) for $30.75 per share, or an aggregate purchase price of approximately $5.4 billion (including convertible notes). Pursuant to the agreement, on December 13, 2019 our wholly owned subsidiary, Stryker B.V., commenced a tender offer to purchase all of the outstanding ordinary shares, par value €0.03 per share, of Wright at a price of $30.75 per share, without interest, but subject to any applicable withholding of taxes. We expect the acquisition to close in the second half of 2020, subject to the expiration of the waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of other required approvals and clearances under applicable antitrust laws, the adoption of certain resolutions by Wright’s shareholders at an extraordinary general meeting of Wright’s shareholders and other customary conditions. Wright is a global medical device company focused on extremities and biologics. Following closing, we plan to integrate Wright into our Trauma and Extremities business within Orthopaedics.
Purchase price allocations for our significant acquisitions are presented below:
Purchase Price Allocation of Acquired Net Assets
2019
 
Mobius
OrthoSpace
Tangible assets acquired:
 
 
 
Accounts receivable
 
$
3

$
1

Inventory
 
7

1

Other assets
 
2

1

Contingent consideration
 
(4
)

Liabilities
 
(10
)
(29
)
Intangible assets:
 
 
 
Customer relationship
 
7


Developed technology and patents
 
60

120

In-process research and development
 
98


Non-compete agreements
 
9


Goodwill
 
301

114

Purchase price, net of cash acquired
 
$
473

$
208

Weighted average life of intangible assets
 
12

18

2018
 
K2M
Entellus
Tangible assets acquired:
 
 
 
Accounts receivable
 
$
58

$
17

Inventory
 
131

14

Other assets
 
160

62

Contingent consideration
 

(79
)
Liabilities
 
(257
)
(76
)
Intangible assets:
 
 
 
Customer relationship
 
34

33

Distributor relationship
 
1


Trade name
 
10


Developed technology and patents
 
475

261

Internally developed software
 
2


Goodwill
 
766

465

Purchase price, net of cash acquired
 
$
1,380

$
697

Weighted average life of intangible assets
 
15

16


Purchase price allocations for Mobius, OrthoSpace and other 2019 acquisitions were based on preliminary valuations, primarily related to intangible assets and inventory. Our estimates and assumptions are subject to change within the measurement period. The purchase price allocations for K2M, Entellus and other 2018 acquisitions were finalized in 2019.
v3.19.3.a.u2
Contingencies and Commitments
12 Months Ended
Dec. 31, 2019
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 that are more fully described below. The outcomes of these matters will generally not be known for prolonged periods of time. In certain of the legal proceedings, the claimants seek damages as well as other compensatory and equitable relief that could result in the payment of significant claims and settlements and/or the imposition of injunctions or other equitable relief. For legal matters for which management had sufficient information to reasonably estimate our future obligations, a liability representing management's best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within the range is not known, is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those estimated by management, additional expense may be incurred, which could unfavorably affect future operating results. We are self-insured for product liability claims and expenses. The ultimate cost to us with respect to product liability claims could be materially different than the amount of the current estimates and
accruals and could have a material adverse effect on our financial position, results of operations and cash flows.
In 2010 we filed a lawsuit in federal court against Zimmer Biomet Holdings, Inc. (Zimmer), alleging that a Zimmer product infringed on three of our patents. In 2013 following a jury trial favorable to us, the trial judge entered a final judgment that, among other things, awarded us damages of $76 and ordered Zimmer to pay us enhanced damages. Zimmer appealed this ruling. In December 2014 the Federal Circuit affirmed the damages awarded to us, reversed the order for enhanced damages and remanded the issue of attorney fees to the trial court. In May 2015 the trial court entered a stipulated judgment that, among other things, required Zimmer to pay us the base amount of damages and interest, while the issues of enhanced damages and attorney fees continue to be pursued. In June 2015 we recorded a $54 gain, net of legal costs, which was recorded within selling, general and administrative expenses. On June 13, 2016 the United States Supreme Court vacated the decision of the Federal Circuit that reversed our judgment for enhanced damages and remanded the case to the Federal Circuit to reconsider the issue. On September 12, 2016 the Federal Circuit issued an opinion that, among other things, remanded the issue of enhanced damages to the trial court. On July 12, 2017 the trial court reaffirmed its award of enhanced damages and entered a judgment of $164 in our favor. Zimmer appealed, and on December 10, 2018 the Federal Circuit affirmed the decision. Zimmer filed a petition on January 23, 2019 to seek a rehearing of this ruling by the entire Federal Circuit. On March 19, 2019 the Federal Circuit denied Zimmer’s petition for a rehearing. Zimmer conditionally paid us $167 while it pursued a review of the decision by the Supreme Court. On October 7, 2019 the Supreme Court denied Zimmer’s petition for review. This decision concluded the case. Accordingly, in November 2019 we recorded a $100 gain, net of legal costs, which was recorded within selling, general and administrative expenses.
Recall Matters
In June 2012 we voluntarily recalled our Rejuvenate and ABG II Modular-Neck hip stems and terminated global distribution of these hip products. Product liability lawsuits relating to this voluntary recall have been filed against us. In November 2014 we entered into a settlement agreement to compensate eligible United States patients who had revision surgery prior to November 3, 2014 and in December 2016 the settlement program was extended to patients who had revision surgery prior to December 19, 2016. We continue to offer support for recall-related care and reimburse patients who are not eligible to enroll in the settlement program for testing and treatment services, including any necessary revision surgeries. In addition, there are remaining lawsuits that we will continue to defend against.
In August 2016 and May 2018 we voluntarily recalled certain lot-specific sizes and offsets of LFIT Anatomic CoCr V40 Femoral Heads. Product liability lawsuits and claims relating to this voluntary recall have been filed against us. In November 2018 we entered into a settlement agreement to resolve a significant number of claims and lawsuits related to the recalls. The specific terms of the settlement agreement, including the financial terms, are confidential.
We have incurred, and expect to incur in the future, costs associated with the defense and settlement of these matters. Based on the information that has been received, we have estimated the remaining range of probable loss related to these matters globally to be approximately $275 to $520. We have recorded charges to earnings representing the minimum of the range of probable loss. The final outcomes of these matters are dependent on many factors that are difficult to predict. Accordingly, the ultimate cost related to
these matters globally 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
We lease various manufacturing, warehousing and distribution facilities, administrative and sales offices as well as equipment under operating leases. We evaluate our contracts to identify leases, which is generally if there is an identified asset and we have the right to direct the use of and obtain substantially all of the economic benefit from the use of the identified asset. Certain of our lease agreements contain rent escalation clauses (including index-based escalations), rent holidays, capital improvement funding or other lease concessions. We recognize our minimum rental expense on a straight-line basis over the term of the lease beginning with the date of initial control of the asset. With the adoption of ASC 842 we recognized all leases with terms greater than twelve months in duration on our Consolidated Balance Sheets as right-of-use assets and lease liabilities of approximately $350 as of January 1, 2019. We adopted the standard using the prospective approach and did not retrospectively apply to prior periods. Right-of-use assets are recorded in Other noncurrent assets on our Consolidated Balance Sheets. Current and non-current lease liabilities are recorded in Accrued expenses and other liabilities and Other noncurrent liabilities, respectively, on our Consolidated Balance Sheets.
We have made certain assumptions and judgments when applying ASC 842, the most significant of which are:
We elected the package of practical expedients available for transition which allow us to not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842.
We did not elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset.
For all asset classes, we elected to not recognize a right-of-use asset and lease liability for short-term leases.
For all asset classes, we elected to not separate non-lease components from lease components to which they relate and have accounted for the combined lease and non-lease components as a single lease component.
The determination of the discount rate used in a lease is our incremental borrowing rate which is based on what we would normally pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments.
Leases
December
2019
Right-of-use assets
$
384

Lease liabilities, current
$
86

Lease liabilities, non-current
$
301

 
 
Other information
 
Weighted-average remaining lease term
6.2 years

Weighted-average discount rate
3.34
%

Lease expense totaled $133, $138, and $125 in 2019, 2018 and 2017.
Future Obligations
We have purchase commitments for materials, supplies, services and property, plant and equipment as part of the normal course of business. In addition, we lease various manufacturing, warehousing and distribution facilities, administrative and sales offices as well as equipment under operating leases. Refer to Note 10 for more information on the debt obligations.
Future Obligations
 
2020
2021
2022
2023
2024
Thereafter
Debt repayments
$
860

$
750

$

$
612

$
1,546

$
7,433

Purchase obligations
$
1,373

$
19

$
9

$
6

$
6

$
6

Minimum lease payments
$
94

$
74

$
62

$
38

$
32

$
95


v3.19.3.a.u2
Goodwill and Other Intangibles
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangibles GOODWILL AND OTHER INTANGIBLE ASSETS
We completed our annual impairment tests of goodwill in 2019 and 2018 and concluded in each year that no impairments exist.
Summary of Other Intangible Assets
 
Weighted Average Amortization Period (Years)
Gross
Carrying
Amount
Less
Accumulated
Amortization
Net
Carrying
Amount
Developed technologies
2019
14
$
3,731

$
1,271

$
2,460

2018
13
3,426

1,115

2,311

Customer relationships
2019
16
$
2,160

$
848

$
1,312

2018
15
2,155

703

1,452

Patents
2019
11
$
348

$
265

$
83

2018
12
332

231

101

Trademarks
 
 
 
2019
18
$
362

$
136

$
226

2018
18
349

108

241

In-process research and development
2019
N/A
$
110


$
110

2018
N/A
6


6

Other
2019
8
$
125

$
89

$
36

2018
11
128

76

52

Total
2019
14
$
6,836

$
2,609

$
4,227

2018
14
$
6,396

$
2,233

$
4,163


Changes in the Net Carrying Value of Goodwill by Segment
 
Orthopaedics
MedSurg
Neurotechnology and Spine
Total
2017
$
2,426

$
3,509

$
1,233

$
7,168

Additions and adjustments
4

100

1,366

1,470

Foreign exchange
(31
)
(28
)
(16
)
(75
)
2018
$
2,399

$
3,581

$
2,583

$
8,563

Additions and adjustments

229

318

547

Foreign exchange
(13
)
(11
)
(17
)
(41
)
2019
$
2,386

$
3,799

$
2,884

$
9,069


Estimated Amortization Expense
2020
2021
2022
2023
2024
$
457

$
440

$
435

$
414

$
384


v3.19.3.a.u2
Capital Stock
12 Months Ended
Dec. 31, 2019
Capital Stock [Abstract]  
Capital Stock CAPITAL STOCK
The aggregate number of shares of all classes of stock with which we are authorized to issue is up to 1,000,500,000, divided into two classes consisting of 500,000 shares of $1 par value preferred stock and 1,000,000,000 shares of common stock with a par value of $0.10. No shares of preferred stock were outstanding on December 31, 2019.
In 2019 we repurchased 1.9 million shares at a cost of $307. 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. On December 31, 2019 the total dollar value of shares that could be purchased under our authorized repurchase program was $1,033.
Shares reserved for future compensation grants of our common stock were 31 million and 33 million on December 31, 2019 and 2018.
Stock Options
We measure the cost of employee stock options based on the grant-date fair value and recognize that cost using the straight-line method over the period in which a recipient is required to provide services in exchange for the options, typically the vesting period. The weighted-average fair value per share of options is estimated on the date of grant using the Black-Scholes option pricing model.
Option Value and Assumptions
 
2019
 
2018
 
2017
Weighted-average fair value per share
$
36.30

 
$
28.52

 
$
22.43

Assumptions:
 
 
 
 
 
Risk-free interest rate
2.6
%
 
2.7
%
 
2.0
%
Expected dividend yield
1.1
%
 
1.2
%
 
1.5
%
Expected stock price volatility
18.3
%
 
16.8
%
 
19.4
%
Expected option life (years)
5.9

 
6.0

 
6.0


The risk-free interest rate for periods within the expected life of options granted is based on the United States Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on the historical volatility of our stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data.
2019 Stock Option Activity
 
Shares
(in millions)
 
Weighted
Average
Exercise Price
 
Weighted-Average
Remaining
Term
(in years)
 
Aggregate
Intrinsic
Value
Outstanding January 1
14.1

 
$
97.69

 
 
 
 
Granted
2.1

 
179.41

 
 
 
 
Exercised
(2.6
)
 
75.74

 
 
 
 
Canceled
(0.8
)
 
134.73

 
 
 
 
Outstanding December 31
12.8

 
$
113.10

 
6.0
 
$
1,242.8

Exercisable December 31
6.8

 
$
85.62

 
4.4
 
$
853.2

Options expected to vest
5.4

 
$
143.38

 
7.7
 
$
360.8


The aggregate intrinsic value of options, which represents the cumulative difference between the fair market value of the underlying common stock and the option exercise prices, exercised was $294, $247, and $184 in 2019, 2018 and 2017. Exercise prices for options outstanding ranged from $51.82 to $209.78 on December 31, 2019. On December 31, 2019 there was $101 of unrecognized compensation cost related to nonvested stock options granted under the long-term incentive plans; that cost is expected to be recognized over the weighted-average period of approximately 1.5 years.
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) Activity
 
Shares
(in millions)
 
Weighted Average
Grant Date Fair Value
 
RSUs
 
PSUs
 
RSUs
 
PSUs
Nonvested on January 1
0.9

 
0.3

 
$
129.90

 
$
122.39

Granted
0.4

 

 
175.96

 
180.70

Vested
(0.4
)
 
(0.1
)
 
120.56

 
98.10

Canceled or forfeited
(0.1
)
 

 
146.37

 
136.56

Nonvested on December 31
0.8

 
0.2

 
$
158.80

 
$
152.44


On December 31, 2019 there was $67 of unrecognized compensation cost related to nonvested RSUs. That cost is expected to be recognized as expense over the weighted-average period of approximately one year. The weighted-average grant date fair value per share of RSUs granted was $175.96 and $150.23 in 2019 and 2018. The fair value of RSUs and PSUs vested in 2019 was $52 and $10. On December 31, 2019 there was $15 of unrecognized compensation cost related to nonvested PSUs; the cost is expected to be recognized as expense over the weighted-average period of approximately one year.
Employee Stock Purchase Plans (ESPP)
Full- and part-time employees may participate in our ESPP provided they meet certain eligibility requirements. The purchase price for our common stock under the terms of the ESPP is defined as 95% of the closing stock price on the last trading day of a purchase period. We issued 166,758 and 168,626 shares under the ESPP in 2019 and 2018.
v3.19.3.a.u2
Debt and Credit Facilities
12 Months Ended
Dec. 31, 2019
Long-term Debt, Unclassified [Abstract]  
Debt And Credit Facilities DEBT AND CREDIT FACILITIES
We have lines of credit issued by various financial institutions that are available to fund our day-to-day operating needs. Certain of our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on December 31, 2019.
Our commercial paper program allows us to have a maximum of $1,500 in commercial paper outstanding with maturities up to 397 days from the date of issuance. On December 31, 2019 there were no amounts outstanding under our commercial paper program.
Summary of Total Debt
 
 
2019
 
2018
Senior unsecured notes:
 
 
 
 
 
Rate
 
Due
 
 
 
 
 
1.800%
 
January 15, 2019
$

 
$
500

 
2.000%
 
March 8, 2019

 
750

 
4.375%
 
January 15, 2020
500

 
499

 
Variable
 
November 30, 2020
333

 
343

 
2.625%
 
March 15, 2021
749

 
747

 
1.125%

November 30, 2023
609

 
627

 
3.375%
 
May 15, 2024
587

 
584

 
0.250%
 
December 3, 2024
938

 

 
3.375%
 
November 1, 2025
746

 
746

 
3.500%
 
March 15, 2026
991

 
990

 
2.125%
 
November 30, 2027
829

 
853

 
3.650%
 
March 7, 2028
596

 
595

 
0.750%
 
March 1, 2029
884

 

 
2.625%
 
November 30, 2030
712

 
733

 
1.000%
 
December 3, 2031
823

 

 
4.100%
 
April 1, 2043
391

 
391

 
4.375%
 
May 15, 2044
395

 
395

 
4.625%
 
March 15, 2046
981

 
980

Other
 
26

 
126

Total debt
 
$
11,090

 
$
9,859

Less current maturities
 
859

 
1,373

Total long-term debt
 
$
10,231

 
$
8,486

 
 
 
 
 

 
 
2019
 
2018
Unamortized debt issuance costs
$
58

 
$
50

Borrowing capacity on existing facilities
$
1,546

 
$
1,548

Fair value of senior unsecured notes
$
11,910

 
$
9,746


The fair value of the senior unsecured notes was estimated using quoted interest rates, maturities and amounts of borrowings based on quoted active market prices and yields that took into account the underlying terms of the debt instruments. Substantially all of our debt is classified within Level 2 of the fair value hierarchy.
In January 2019 we repaid $500 of senior unsecured notes with a coupon of 1.800% that were due on January 15, 2019. In March 2019 we repaid $750 of senior unsecured notes with a coupon of 2.000% that were due on March 8, 2019.
In December 2019 we issued €850 of senior unsecured notes with a fixed interest rate of 0.250% due on December 3, 2024, €800 of senior unsecured notes with a fixed interest rate of 0.750% due on March 1, 2029 and €750 of senior unsecured notes with a fixed interest rate of 1.000% due on December 3, 2031. Our annual interest expense arising from the issuance of the 2029 notes will be reduced by the benefit from the cash flow hedges that were terminated in conjunction with the issuance. Refer to Note 4 for further information. The 2024 and 2031 notes are subject to a Special Mandatory Redemption in which we will be required to redeem the notes in whole at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest if we do not consummate the Wright tender offer on or before February 4, 2021.
In January 2020 we repaid $500 of senior unsecured notes with a coupon of 4.375% that were due on January 15, 2020.
Interest expense, including required fees incurred on outstanding debt and credit facilities that were included in other expense, totaled $287, $264, and $247 in 2019, 2018 and 2017.
v3.19.3.a.u2
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Our effective tax rate was 18.7%, (50.8)% and 50.6% for 2019, 2018 and 2017. The effective income tax rate for 2019 reflects the tax related to the transfer of intellectual properties between tax jurisdictions and the continued lower effective income tax rates as a result of our European operations. The effective income tax rate for 2018 reflects the tax effect related to the transfer of intellectual properties between tax jurisdictions, the continuing impact of complying with the Tax Cuts and Jobs Act of 2017 (the Tax Act) and continued lower effective income tax rates as a result of our European operations. The effective income tax rate for 2017 reflects compliance with the Tax Act offset by lower effective income tax rates as a result of our European operations.
Effective Income Tax Rate Reconciliation
 
2019
 
2018
 
2017
United States federal statutory rate
21.0
 %
 
21.0
 %
 
35.0
 %
United States state and local income taxes, less federal deduction
1.7

 
0.4

 
1.2

Foreign income tax at rates other than 21%
(4.6
)
 
(6.5
)
 
(21.0
)
Tax Cuts and Jobs Act of 2017 transition tax

 
2.2

 
38.0

Tax Cuts and Jobs Act of 2017 deferred tax changes

 
(0.6
)
 
2.3

Tax related to repatriation of foreign earnings
(0.5
)
 
0.5

 

Intellectual property transfer
3.5

 
(63.8
)
 

Other
(2.4
)
 
(4.0
)
 
(4.9
)
Effective income tax rate
18.7
 %
 
(50.8
)%
 
50.6
 %

In December 2017 the Tax Act was signed into law in the United States. The law includes significant changes to the United States corporate income tax system, including a federal corporate rate reduction, limitations on the deductibility of certain expenses and the transition of United States international taxation from a worldwide tax system to a territorial tax system. As part of the
transition to a territorial tax system, the Tax Act requires taxpayers to calculate a one-time transition tax based on undistributed earnings of foreign subsidiaries.
The Tax Act subjects a United States shareholder to tax on Global Intangible Low-Taxed Income (GILTI) earned by certain foreign subsidiaries. We have elected to account for GILTI tax in the year the tax is incurred.
Earnings Before Income Taxes 
 
2019
 
2018
 
2017
United States
$
366

 
$
509

 
$
499

International
2,196

 
1,847

 
1,564

Total
$
2,562

 
$
2,356

 
$
2,063

Components of Income Tax Expense (Benefit)
Current income tax expense:
2019
 
2018
 
2017
United States federal
$
(17
)
 
$
178

 
$
836

United States state and local
46

 
30

 
38

International
324

 
177

 
133

Total current income tax expense
$
353

 
$
385

 
$
1,007

Deferred income tax (benefit) expense:
 
 
 
 
 
United States federal
$
10

 
$
(44
)
 
$
84

United States state and local
(1
)
 
(20
)
 
(9
)
International
117

 
(1,518
)
 
(39
)
Total deferred income tax (benefit) expense
$
126

 
$
(1,582
)
 
$
36

Total income tax (benefit) expense
$
479

 
$
(1,197
)
 
$
1,043


Interest and penalties included in other income (expense), net were expense of ($9), ($9) and ($28) in 2019, 2018 and 2017. The United States federal deferred income tax benefit (expense) includes the utilization of net operating loss carryforwards of $50, $31 and $32 in 2019, 2018 and 2017.
Deferred Income Tax Assets and Liabilities
Deferred income tax assets:
2019
 
2018
Inventories
$
415

 
$
390

Product-related liabilities
57

 
60

Other accrued expenses
221

 
222

Depreciation and amortization
1,363

 
1,504

State income taxes
65

 
70

Share-based compensation
49

 
47

Net operating loss carryforwards
95

 
134

Other
207

 
177

Total deferred income tax assets
$
2,472

 
$
2,604

Less valuation allowances
(75
)
 
(66
)
Net deferred income tax assets
$
2,397

 
$
2,538

Deferred income tax liabilities:
 
 
 
Depreciation and amortization
$
(893
)
 
$
(865
)
Undistributed earnings
(37
)
 
(46
)
Other

 
(3
)
Total deferred income tax liabilities
$
(930
)
 
$
(914
)
Net deferred income tax assets
$
1,467

 
$
1,624

Reported as:
 
 
 
Noncurrent deferred income tax assets
$
1,575

 
$
1,678

Noncurrent liabilities—Other liabilities
(108
)
 
(54
)
Total
$
1,467

 
$
1,624


Accrued interest and penalties were $94 and $85 on December 31, 2019 and 2018 which were reported in current and noncurrent accrued expenses and other liabilities.
Net operating loss carryforwards totaling $378 on December 31, 2019 are available to reduce future taxable earnings of certain domestic and foreign subsidiaries. United States loss carryforwards of $358 expire through 2045. International loss carryforwards of $20 begin to expire in 2037; however, some have no expiration. We also have a tax credit carryforward of $65 with $63 being subject to a full valuation allowance. The credits with a full valuation allowance
have no expiration; however, we do not anticipate generating income tax in excess of the credits in the foreseeable future.
We recorded a transition tax on undistributed foreign earnings as required by the Tax Act. No other provision was made for United States income taxes that may result from future remittances of the undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested. Determination of the total amount of unrecognized deferred income tax on undistributed earnings of foreign subsidiaries is not practicable.
Uncertain Income Tax Positions
 
2019
 
2018
Beginning uncertain tax positions
$
528

 
$
540

Increases related to current year income tax positions
62

 
22

Increases related to prior year income tax positions
5

 
25

Decreases related to prior year income tax positions:
 
 
 
Settlements and resolutions of income tax audits
(78
)
 
(37
)
Statute of limitations expirations
(40
)
 
(14
)
Foreign currency translation
(5
)
 
(8
)
Ending uncertain tax positions
$
472

 
$
528

Reported as:
 
 
 
Noncurrent liabilities—Income taxes
$
472

 
$
528


Our income tax expense would have been reduced by $468 and $521 on December 31, 2019 and 2018 had these uncertain income tax positions been favorably resolved. It is reasonably possible that the amount of unrecognized tax benefits will significantly change due to one or more of the following events in the next 12 months: expiring statutes, audit activity, tax payments, competent authority proceedings related to transfer pricing or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate, including inventory transfer pricing, cost sharing, product royalty and foreign branch arrangements. We are not able to reasonably estimate the amount or the future periods in which changes in unrecognized tax benefits may be resolved. Interest and penalties incurred associated with uncertain tax positions are included in other income (expense), net.
In the normal course of business, income tax authorities in various income tax jurisdictions both within the United States and internationally conduct routine audits of our income tax returns filed in prior years. These audits are generally designed to determine if individual income tax authorities are in agreement with our interpretations of complex income tax regulations regarding the allocation of income to the various income tax jurisdictions. Income tax years are open from 2014 through the current year for the United States federal jurisdiction. Income tax years open for our other major jurisdictions range from 2005 through the current year.
v3.19.3.a.u2
Retirement Plans
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Retirement Plans RETIREMENT PLANS
Defined Contribution Plans
We provide certain employees with defined contribution plans and other types of retirement plans. A portion of our retirement plan expense under the defined contribution plans is funded with Stryker common stock. The use of Stryker common stock represents a non-cash operating activity that is not reflected in our Consolidated Statements of Cash Flows.
 
2019
 
2018
 
2017
Plan expense
$
205

 
$
180

 
$
181

Expense funded with Stryker common stock
31

 
29

 
25

Stryker common stock held by plan:
 
 
 
 
 
Dollar amount
470

 
358

 
353

Shares (in millions)
2.2

 
2.3

 
2.3

Value as a percentage of total plan assets
12
%
 
12
%
 
11
%

Defined Benefit Plans
Certain of our subsidiaries have both funded and unfunded defined benefit pension plans covering some or all of their employees. Substantially all of the defined benefit pension plans have projected benefit obligations in excess of plan assets.
Discount Rate
The discount rates were selected using a hypothetical portfolio of high quality bonds on December 31 that would provide the necessary cash flows to match our projected benefit payments. Effective January 1, 2017, in countries where it was possible, we elected to change the method to calculate the service cost and interest cost components of net periodic benefit costs for our defined benefit plans and will measure these costs by applying the specific spot rates along the yield curve of the projected cash flows for the respective plans. Our defined benefit plans previously utilized the yield curve approach to establish discount rates and we believe the new approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and the corresponding spot yield curve rates. The change does not affect the measurement of our total benefit obligations for those plans and is accounted for as a change in accounting estimate inseparable from a change in accounting principle, which is applied prospectively. The reductions in service and interest costs for 2017 associated with this change in estimate are nominal.
Expected Return on Plan Assets
The expected return on plan assets is determined by applying the target allocation in each asset category of plan investments to the anticipated return for each asset category based on historical and projected returns.
Components of Net Periodic Pension Cost
Net periodic benefit cost:
2019
 
2018
 
2017
Service cost
$
(41
)
 
$
(44
)
 
$
(42
)
Interest cost
(12
)
 
(11
)
 
(10
)
Expected return on plan assets
12

 
12

 
11

Amortization of prior service credit
1

 
1

 
1

Recognized actuarial loss
(9
)
 
(11
)
 
(9
)
Net periodic benefit cost
$
(49
)
 
$
(53
)
 
$
(49
)
Changes in assets and benefit obligations recognized in OCI:
Net actuarial gain (loss)
$
(74
)
 
$
11

 
$
(25
)
Recognized net actuarial loss
9

 
10

 
9

Prior service (credit) cost and transition amount
(1
)
 
(1
)
 
(1
)
Total recognized in other comprehensive income (loss)
$
(66
)
 
$
20

 
$
(17
)
Total recognized in net periodic benefit cost and OCI
$
(115
)
 
$
(33
)
 
$
(66
)
 
 
 
 
 
 
Weighted-average rates used to determine net periodic benefit cost:
Discount rate
1.9
%
 
1.8
%
 
1.8
%
Expected return on plan assets
3.5
%
 
3.3
%
 
3.3
%
Rate of compensation increase
2.9
%
 
2.8
%
 
2.8
%
Weighted-average discount rate used to determine projected benefit obligations
1.0
%
 
1.9
%
 
1.8
%

Investment Strategy
The investment strategy for our defined benefit pension plans is to meet the liabilities of the plans as they fall due and to maximize the return on invested assets within appropriate risk tolerances.
 
2019
 
2018
Fair value of plan assets
$
428

 
$
376

Benefit obligations
(869
)
 
(735
)
Funded status
$
(441
)
 
$
(359
)
Reported as:
 
 
 
Current liabilities—accrued compensation
$
(2
)
 
$
(2
)
Noncurrent liabilities—other liabilities
(439
)
 
(357
)
Pre-tax amounts recognized in AOCI:
 
 
 
Unrecognized net actuarial loss
(250
)
 
(168
)
Unrecognized prior service credit
9

 
11

Total
$
(241
)
 
$
(157
)

The estimated net actuarial loss for the defined benefit pension plans to be reclassified from AOCI into net periodic benefit cost is $12 in 2020. The total estimated amortization of prior service credit and transition asset for the defined benefit pension plans to be reclassified from AOCI into net periodic benefit credit is $1 in 2020.
Change in Benefit Obligations
 
 
 
 
2019
 
2018
Beginning projected benefit obligations
$
735

 
$
708

Service cost
41

 
44

Interest cost
12

 
11

Foreign exchange impact
(12
)
 
(16
)
Employee contributions
6

 
6

Actuarial (gains) losses
116

 
(1
)
Acquisition

 

Benefits paid
(29
)
 
(17
)
Ending projected benefit obligations
$
869

 
$
735

Ending accumulated benefit obligations
$
830

 
$
702


Change in Plan Assets
 
 
 
 
2019
 
2018
Beginning fair value of plan assets
$
376

 
$
370

Actual return
52

 
(2
)
Employer contributions
25

 
22

Employee contributions
6

 
6

Foreign exchange impact
(5
)
 
(6
)
Acquisition

 

Benefits paid
(26
)
 
(14
)
Ending fair value of plan assets
$
428

 
$
376


Allocation of Plan Assets
 
2020 Target
 
2019 Actual
 
2018 Actual
Equity securities
23
%
 
22
%
 
26
%
Debt securities
44

 
44

 
46

Other
33

 
34

 
28

Total
100
%
 
100
%
 
100
%

Valuation of Plan Assets
2019
Level 1
Level 2
Level 3
Total
Cash and cash equivalents
$
7

$

$

$
7

Equity securities
23

86


109

Corporate debt securities
3

173


176

Other
4

52

80

136

Total
$
37

$
311

$
80

$
428

2018
 
 
 
 
Cash and cash equivalents
$
10

$

$

$
10

Equity securities
20

85


105

Corporate debt securities
2

153


155

Other
7

43

56

106

Total
$
39

$
281

$
56

$
376


Our Level 3 pension plan assets consist primarily of guaranteed investment contracts with insurance companies. The insurance contracts guarantee us principal repayment and a fixed rate of return. The $24 increase in Level 3 pension plan assets is primarily
related to actual returns and acquired assets. We expect to contribute $24 to our defined benefit pension plans in 2020.
Estimated Future Benefit Payments
2020
2021
2022
2023
2024
2025-2029
$
19

$
18

$
18

$
19

$
19

$
115


v3.19.3.a.u2
Summary of Quarterly Data (Unaudited)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Data [Abstract]  
Summary of Quarterly Data (Unaudited) SUMMARY OF QUARTERLY DATA (UNAUDITED)
2019 Quarters
Mar 31
Jun 30
Sep 30
Dec 31
Net sales
$
3,516

$
3,650

$
3,587

$
4,131

Gross profit
2,283

2,380

2,330

2,703

Earnings before income taxes
480

565

581

936

Net earnings
412

480

466

725

Net earnings per share of common stock:
 
 
Basic
$
1.10

$
1.29

$
1.24

$
1.94

Diluted
$
1.09

$
1.26

$
1.23

$
1.90

Dividends declared per share of common stock
$
0.52

$
0.52

$
0.52

$
0.575

 
 
 
 
 
2018 Quarters
Mar 31
Jun 30
Sep 30
Dec 31
Net sales
$
3,241

$
3,322

$
3,242

$
3,796

Gross profit
2,137

2,190

2,155

2,456

Earnings before income taxes
542

623

534

657

Net earnings
443

452

590

2,068

Net earnings per share of common stock:
 
 
Basic
$
1.18

$
1.21

$
1.58

$
5.52

Diluted
$
1.16

$
1.19

$
1.55

$
5.44

Dividends declared per share of common stock
$
0.47

$
0.47

$
0.47

$
0.52


v3.19.3.a.u2
Segment and Geographic Data
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment and Geographic Data SEGMENT AND GEOGRAPHIC DATA
We segregate our operations into three reportable business segments: Orthopaedics, MedSurg, and Neurotechnology and Spine.
The Corporate and Other category shown in the table below includes corporate and administration, corporate initiatives and share-based compensation, which includes compensation related to employee stock options, restricted stock units and performance stock unit grants and director stock options and restricted stock unit grants.
Segment Results
 
 
 
 
2019
2018
2017
Orthopaedics
$
5,252

$
4,991

$
4,713

MedSurg
$
6,574

6,045

5,557

Neurotechnology & Spine
3,058

2,565

2,174

Net sales
$
14,884

$
13,601

$
12,444

Orthopaedics
$
348

$
350

$
337

MedSurg
379

285

315

Neurotechnology & Spine
218

176

142

Segment depreciation and amortization
$
945

$
811

$
794

Corporate and Other
99

155

65

Total depreciation and amortization
$
1,044

$
966

$
859

Orthopaedics
$
1,907

$
1,804

$
1,681

MedSurg
1,635

1,444

1,228

Neurotechnology & Spine
846

700

631

Segment operating income
$
4,388

$
3,948

$
3,540

Items not allocated to segments:
 
 
 
Corporate and Other
$
(480
)
$
(431
)
$
(402
)
Acquisition and integration-related charges
(275
)
(123
)
(64
)
Amortization of intangible assets
(464
)
(417
)
(371
)
Restructuring related and other charges
(226
)
(220
)
(194
)
Medical device regulations
(62
)
(12
)

Recall-related matters
(192
)
(23
)
(173
)
Regulatory and legal matters
24

(185
)
(39
)
Consolidated operating income
$
2,713

$
2,537

$
2,297


Segment Assets and Capital Spending
Assets:
2019
2018
2017
Orthopaedics
$
9,085

$
8,873

$
7,486

MedSurg
12,066

10,417

9,759

Neurotechnology & Spine
7,646

7,260

4,105

Total segment assets
$
28,797

$
26,550

$
21,350

Corporate and Other
1,370

679

847

Total assets
$
30,167

$
27,229

$
22,197

Capital spending:
 
 
 
Orthopaedics
$
125

$
134

$
138

MedSurg
265

217

194

Neurotechnology & Spine
29

31

50

Total segment capital spending
$
419

$
382

$
382

Corporate and Other
230

190

216

Total capital spending
$
649

$
572

$
598


We measure the financial results of our reportable segments using an internal performance measure that excludes acquisition and integration-related charges, restructuring-related charges, reserves for certain product recall matters and reserves for certain legal and regulatory matters. Identifiable assets are those assets used exclusively in the operations of each business segment or allocated when used jointly. Corporate assets are principally cash and cash equivalents, marketable securities and property, plant and equipment.
The countries in which we have local revenue generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe, Middle East, Africa; Asia Pacific; and other foreign countries, which include Canada and countries in the Latin American region. Net sales are reported based off the geographic area of the Stryker location where the sales to the customer originated.
Geographic Information
 
Net Sales
 
Net Property, Plant and Equipment
 
2019
2018
2017
 
2019
2018
United States
$
10,957

$
9,848

$
9,059

 
$
1,561

$
1,348

Europe, Middle East, Africa
1,888

1,793

1,567

 
838

669

Asia Pacific
1,617

1,532

1,413

 
95

96

Other countries
422

428

405

 
73

178

Total
$
14,884

$
13,601

$
12,444

 
$
2,567

$
2,291


v3.19.3.a.u2
Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Significant Accounting Policies [Abstract]  
Nature of Operations Stryker (the "Company," "we," "us," or "our") is one of the world's leading medical technology companies and, together with its customers, is driven to make healthcare better. The Company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that improve patient and hospital outcomes. Our products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment and intensive care disposable products; neurosurgical, neurovascular and spinal devices; as well as other products used in a variety of medical specialties.
Basis of Presentation and Consideration The Consolidated Financial Statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. We have no material interests in variable interest entities and none that require consolidation. Certain prior year amounts have been reclassified to conform with current year presentation in our Consolidated Financial Statements.
Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of net sales and expenses in the reporting period. Actual results could differ from those estimates.
Revenue Recognition Sales are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration we expect to receive in exchange for satisfying the performance obligations. Our sales continue to be recognized primarily when we transfer control to the customer, which can be on the date of shipment, the date of receipt by the customer or, for most Orthopaedics products, when we have received a purchase order and appropriate notification the product has been used or implanted. Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time.
Sales represent the amount of consideration we expect to receive from customers in exchange for transferring products and services. Net sales exclude sales, value added and other taxes we collect from customers. Other costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of most of our sales. We extend terms of payment to our customers based on commercially reasonable terms for the markets of our customers, while also considering their credit quality.
A provision for estimated sales returns, discounts and rebates is recognized as a reduction of sales in the same period that the sales are recognized. Our estimate of the provision for sales returns has been established based on contract terms with our customers and historical business practices and current trends. Shipping and handling costs charged to customers are included in net sales.
Cost of Sales Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, warehousing costs and other shipping and handling activity.
Research, Development and Engineering Expenses Research and development costs are charged to expense as incurred. Costs include research, development and engineering activities relating to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of customers and patients. Costs primarily consist of salaries, wages, consulting and depreciation and maintenance of research facilities and equipment.
Selling, General and Administrative Expenses Selling, general and administrative expense is primarily comprised of selling expenses, marketing expenses, administrative and other indirect overhead costs, amortization of loaner instrumentation, depreciation and amortization expense of non-manufacturing assets and other miscellaneous operating items.
Currency Translation Financial statements of subsidiaries outside the United States generally are measured using the local currency as the functional currency. Adjustments to translate those statements into United States Dollars are recorded in other comprehensive income (OCI). Transactional exchange gains and losses are included in earnings.
Cash Equivalents Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost.
Marketable Securities Marketable securities consist of marketable debt securities, certificates of deposit and mutual funds. Mutual funds are acquired to offset changes in certain liabilities related to deferred compensation arrangements and are expected to be used to settle these liabilities. Pursuant to our investment policy, all individual marketable security investments must have a minimum credit quality of single A (Standard & Poor’s and Fitch) and A2 (Moody’s Corporation) at the time of acquisition, while the overall portfolio of marketable securities must maintain a minimum average credit quality of double A (Standard & Poor’s and Fitch) or Aa (Moody’s Corporation). In the event of a rating downgrade below the minimum credit quality subsequent to purchase, the marketable security investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable security investment portfolio. Our marketable securities are classified as available-for-sale and trading securities. Investments in trading securities represent participant-directed investments of deferred employee compensation.
Accounts Receivable Accounts receivable consists of trade and other miscellaneous receivables. An allowance is maintained for doubtful accounts for estimated losses in the collection of accounts receivable. Estimates are made regarding the ability of customers to make required payments based on historical credit experience and expected future trends. Accounts receivable are written off when all reasonable collection efforts are exhausted.
Inventories Inventories are stated at the lower of cost or net realizable value, with cost generally determined using the first-in, first-out (FIFO) cost method. For excess and obsolete inventory resulting from the potential inability to sell specific products at prices in excess of current carrying costs, reserves are maintained to reduce current carrying cost to market prices.
Financial Instruments Our financial instruments consist of cash, cash equivalents, marketable securities, accounts receivable, other investments, accounts payable, debt and foreign currency exchange contracts. The carrying value of our financial instruments, with the exception of our senior unsecured notes, approximates fair value on December 31, 2019 and 2018. Refer to Notes 3 and 10 for further details.
All marketable securities are recognized at fair value. Adjustments to the fair value of marketable securities that are classified as
available-for-sale are recorded as increases or decreases, net of income taxes, within accumulated other comprehensive income (AOCI) in shareholders’ equity and adjustments to the fair value of marketable securities that are classified as trading are recorded in earnings. The amortized cost of marketable debt securities is adjusted for amortization of premiums and discounts to maturity computed under the effective interest method. Such amortization and interest and realized gains and losses are included in other income (expense), net. The cost of securities sold is determined by the specific identification method.
We review declines in the fair value of our investments classified as available-for-sale to determine whether the decline in fair value is other-than-temporary. The resulting losses from other-than-temporary impairments of available-for-sale marketable debt securities are included in earnings.
Derivatives All derivatives are recognized at fair value and reported on a gross basis. We enter into forward currency exchange contracts to mitigate the impact of currency fluctuations on transactions denominated in nonfunctional currencies, thereby limiting our risk that would otherwise result from changes in exchange rates. The periods of the forward currency exchange contracts correspond to the periods of the exposed transactions, with realized gains and losses included in the measurement and recording of transactions denominated in the nonfunctional currencies. All forward currency exchange contracts are recorded at their fair value each period.
Forward currency exchange contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. These nonfunctional currency exposures principally relate to forecasted intercompany sales and purchases of manufactured products and generally have maturities up to eighteen months. Changes in value of derivatives designated as cash flow hedges are recorded in AOCI on the Consolidated Balance Sheets until earnings are affected by the variability of the underlying cash flows. At that time, the applicable amount of gain or loss from the derivative instrument that is deferred in shareholders’ equity is reclassified into earnings and is included in cost of goods sold in the Consolidated Statements of Earnings. Cash flows associated with these hedges are included in cash from operations in the same category as the cash flows from the items being hedged.
Forward currency exchange contracts are used to offset our exposure to the change in value of specific foreign currency denominated assets and liabilities, primarily intercompany payables and receivables. These derivatives are not designated as hedges and, therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related changes in value of foreign currency denominated assets and liabilities. The estimated fair value of our forward currency exchange contracts represents the measurement of the contracts at month-end spot rates as adjusted by current forward points.
From time to time, we designate derivative and non-derivative financial instruments as net investment hedges of our investments in certain international subsidiaries. For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is recognized in OCI and reported as a component of AOCI. We have elected to use the spot method to assess effectiveness for our derivatives designated as net investment hedges. Accordingly, the change in fair value attributable to changes in the spot rate is recorded in AOCI. We exclude the spot-forward difference from the assessment of hedge
effectiveness and amortize this amount separately on a straight-line basis over the term of the forward contracts. This amortization will be recorded in Other income (expense), net in our Consolidated Statements of Earnings.
From time to time, we designate forward starting interest rate derivative instruments as cash flow hedges to manage the exposure to interest rate volatility with regard to future issuance and refinancing of debt. The effective portion of the gain or loss on a forward starting interest rate derivative instrument that is designated and qualifies as a cash flow hedge is reported as a component of AOCI. Beginning in the period in which the debt refinancing occurs and the related derivative instruments is terminated, the effective portion of the gains or losses is then reclassified into interest expense over the term of the related debt.
Interest rate derivative instruments designated as fair value hedges have been used in the past to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount.
Property, Plant and Equipment Property, plant and equipment is stated at cost. Depreciation is generally computed by the straight-line method over the estimated useful lives of three to 30 years for buildings and improvements and three to 10 years for machinery and equipment.
Goodwill and Other Intangible Assets Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses at the acquisition date, after amounts allocated to other identifiable intangible assets. Factors that contribute to the recognition of goodwill include synergies that are specific to our business and not available to other market participants and are expected to increase net sales and profits; acquisition of a talented workforce; cost savings opportunities; the strategic benefit of expanding our presence in core and adjacent markets; and diversifying our product portfolio.
The fair values of other identifiable intangible assets acquired in a business combination are primarily determined using the income approach. Other intangible assets include, but are not limited to, developed technology, customer and distributor relationships (which reflect expected continued customer or distributor patronage) and trademarks and patents. Intangible assets with determinable useful lives are amortized on a straight-line basis over their estimated useful lives of four to 40 years. Certain acquired trade names are considered to have indefinite lives and are not amortized, but are assessed annually for potential impairment as described below.
In some of our acquisitions, we acquire in-process research and development (IPRD) intangible assets. For acquisitions accounted for as business combinations IPRD is considered to be an indefinite-lived intangible asset until the research is completed (then it becomes a determinable-lived intangible asset) or determined to have no future use (then it is impaired). For asset acquisitions IPRD is expensed immediately unless there is an alternative future use.
Goodwill, Intangibles and Long-Lived Asset Impairment Tests We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. In certain circumstances, we may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. Indefinite-lived intangible assets are also tested at least
annually for impairment by comparing the individual carrying values to the fair value.
We review long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows. Undiscounted cash flows expected to be generated by the related assets are estimated over the asset's useful life based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Assets classified as held for sale are recorded at the lower of carrying amount or fair value less costs to sell.
Share-Based Compensation We use share based compensation in the form of stock options, restricted stock units (RSUs) and performance stock units (PSUs). Stock options are granted under long-term incentive plans to certain key employees and non-employee directors at an exercise price not less than the fair market value of the underlying common stock, which is the quoted closing price of our common stock on the day prior to the date of grant. The options are granted for periods of up to 10 years and become exercisable in varying installments.
We grant RSUs to key employees and non-employee directors and PSUs to certain key employees under our long-term incentive plans. The fair value of RSUs is determined based on the number of shares granted and the quoted closing price of our common stock on the date of grant, adjusted for the fact that RSUs do not include anticipated dividends. RSUs generally vest in one-third increments over a three-year period and are settled in stock. PSUs are earned over a three-year performance cycle and vest in March of the year following the end of that performance cycle. The number of PSUs that will ultimately be earned is based on our performance relative to pre-established goals in that three-year performance cycle. The fair value of PSUs is determined based on the quoted closing price of our common stock on the day of grant.
Compensation expense is recognized in the Consolidated Statements of Earnings based on the estimated fair value of the awards on the grant date. Compensation expense recognized reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience and is recognized on a straight-line basis over the requisite service period, which is generally the period required to obtain full vesting. Management expectations related to the achievement of performance goals associated with PSU grants is assessed regularly and that assessment is used to determine whether PSU grants are expected to vest. If performance-based milestones related to PSU grants are not met or not expected to be met, any compensation expense recognized associated with such grants will be reversed.
Income Taxes Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax bases of assets and liabilities and are measured using the enacted income tax rates in effect for the years in which the differences are expected to reverse. Deferred income tax benefits generally represent the change in net deferred income tax assets and liabilities in the year. Other amounts result from adjustments related to acquisitions and foreign currency as appropriate.
We operate in multiple income tax jurisdictions both within the United States and internationally. Accordingly, management must determine the appropriate allocation of income to each of these jurisdictions based on current interpretations of complex income tax regulations. Income tax authorities in these jurisdictions regularly
perform audits of our income tax filings. Income tax audits associated with the allocation of this income and other complex issues, including inventory transfer pricing and cost sharing, product royalty and foreign branch arrangements, may require an extended period of time to resolve and may result in significant income tax adjustments if changes to the income allocation are required between jurisdictions with different income tax rates.
New Accounting Pronouncements Not Yet Adopted and Accounting Pronouncements Recently Adopted
New Accounting Pronouncements Not Yet Adopted
We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements.
In June 2016 the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses for accounts receivables, loans and other financial instruments. The standard is not expected to have a material impact on our Consolidated Financial Statements.
Accounting Pronouncements Recently Adopted
On January 1, 2019 we adopted ASU 2016-02, Leases, and related amendments (ASC 842), which require lease assets and liabilities to be recorded on the balance sheet for leases with terms greater than twelve months. The adoption of this update did not have a material impact on our Consolidated Financial Statements. Refer to Note 7 for further information.
On January 1, 2019 we adopted ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies hedge accounting guidance, as well as improves presentation and disclosure to align the economic effects of risk management strategies in the financial statements. The adoption of this update did not have a material impact on our Consolidated Financial Statements.
No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements.
v3.19.3.a.u2
Revenue Recognition (Tables)
12 Months Ended
Dec. 31, 2019
Revenue Recognition [Abstract]  
Schedule of Impacts of Adoption of ASC 606
Leases
December
2019
Right-of-use assets
$
384

Lease liabilities, current
$
86

Lease liabilities, non-current
$
301

 
 
Other information
 
Weighted-average remaining lease term
6.2 years

Weighted-average discount rate
3.34
%

v3.19.3.a.u2
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets Measured at Fair Value
 
2019
2018
Cash and cash equivalents
$
4,337

$
3,616

Trading marketable securities
149

118

Level 1 - Assets
$
4,486

$
3,734

Available-for-sale marketable securities:
 
 
Corporate and asset-backed debt securities
$
32

$
38

United States agency debt securities
2

11

United States treasury debt securities
49

23

Certificates of deposit
5

11

Total available-for-sale marketable securities
$
88

$
83

Foreign currency exchange forward contracts
226

77

Interest rate swap asset
17


Level 2 - Assets
$
331

$
160

Total assets measured at fair value
$
4,817

$
3,894


Liabilities Measured at Fair Value
 
2019
2018
Deferred compensation arrangements
$
149

$
118

Level 1 - Liabilities
$
149

$
118

Foreign currency exchange forward contracts
$
23

$
20

Level 2 - Liabilities
$
23

$
20

Contingent consideration:
 
 
Beginning
$
117

$
32

Additions
298

77

Change in estimate
(10
)
15

Settlements
(99
)
(7
)
Ending
$
306

$
117

Level 3 - Liabilities
$
306

$
117

Total liabilities measured at fair value
$
478

$
255


Available-for-sale Securities
Fair Value of Available for Sale Securities by Maturity
 
2019
2018
Due in one year or less
$
50

$
51

Due after one year through three years
$
38

$
32


Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Securities in a Continuous Unrealized Loss Position
 
Number of Investments
Fair Value
Corporate and Asset-Backed
2
$
1

United States Treasury
6
13

Certificate of Deposit
4
1

Total
12
$
15


v3.19.3.a.u2
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
2019
Cash Flow
Net Investment
Non-Designated
Total
Gross notional amount
$
801

$
1,113

$
6,174

$
8,088

Maximum term in days
 
 
 
1646

Fair value:
 
 
 
 
Other current assets
$
5

$

$
180

$
185

Other noncurrent assets
1

40


41

Other current liabilities
(10
)

(11
)
(21
)
Other noncurrent liabilities
(2
)


(2
)
Total fair value
$
(6
)
$
40

$
169

$
203

2018
 
 
 
 
Gross notional amount
$
870

$

$
5,466

$
6,336

Maximum term in days
 
 
 
586

Fair value:
 
 
 
 
Other current assets
$
15

$

$
28

$
43

Other noncurrent assets
1


33

34

Other current liabilities
(5
)

(15
)
(20
)
Other noncurrent liabilities




Total fair value
$
11

$

$
46

$
57


Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location I
v3.19.3.a.u2
Accumulated Other Comprehensive (Loss) Income (AOCI) (Tables)
12 Months Ended
Dec. 31, 2019
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
 
Marketable Securities
Pension Plans
Hedges
Financial Statement Translation
Total
2017
$
(4
)
$
(134
)
$
28

$
(443
)
$
(553
)
OCI
2

(16
)
36

(115
)
(93
)
Income taxes

1

(9
)
18

10

Reclassifications to:
 
 
 
 
 
Cost of Sales


(7
)

(7
)
Other (income) expense
(2
)
10



8

Income taxes

2

2


4

Net OCI

(3
)
22

(97
)
(78
)
2018
$
(4
)
$
(137
)
$
50

$
(540
)
$
(631
)
OCI

(74
)
3

101

30

Income taxes

26


(21
)
5

Reclassifications to:
 
 
 
 
 
Cost of Sales


(2
)

(2
)
Other (income) expense
1

8

(5
)
(14
)
(10
)
Income taxes

(2
)
1

3

2

Net OCI
1

(42
)
(3
)
69

25

2019
$
(3
)
$
(179
)
$
47

$
(471
)
$
(606
)

v3.19.3.a.u2
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of Acquisitions
Purchase price allocations for our significant acquisitions are presented below:
Purchase Price Allocation of Acquired Net Assets
2019
 
Mobius
OrthoSpace
Tangible assets acquired:
 
 
 
Accounts receivable
 
$
3

$
1

Inventory
 
7

1

Other assets
 
2

1

Contingent consideration
 
(4
)

Liabilities
 
(10
)
(29
)
Intangible assets:
 
 
 
Customer relationship
 
7


Developed technology and patents
 
60

120

In-process research and development
 
98


Non-compete agreements
 
9


Goodwill
 
301

114

Purchase price, net of cash acquired
 
$
473

$
208

Weighted average life of intangible assets
 
12

18

2018
 
K2M
Entellus
Tangible assets acquired:
 
 
 
Accounts receivable
 
$
58

$
17

Inventory
 
131

14

Other assets
 
160

62

Contingent consideration
 

(79
)
Liabilities
 
(257
)
(76
)
Intangible assets:
 
 
 
Customer relationship
 
34

33

Distributor relationship
 
1


Trade name
 
10


Developed technology and patents
 
475

261

Internally developed software
 
2


Goodwill
 
766

465

Purchase price, net of cash acquired
 
$
1,380

$
697

Weighted average life of intangible assets
 
15

16


v3.19.3.a.u2
Contingencies and Commitments (Tables)
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Lease, Cost
Leases
December
2019
Right-of-use assets
$
384

Lease liabilities, current
$
86

Lease liabilities, non-current
$
301

 
 
Other information
 
Weighted-average remaining lease term
6.2 years

Weighted-average discount rate
3.34
%

Future Purchase Obligations and Minimum Lease Payments
Future Obligations
 
2020
2021
2022
2023
2024
Thereafter
Debt repayments
$
860

$
750

$

$
612

$
1,546

$
7,433

Purchase obligations
$
1,373

$
19

$
9

$
6

$
6

$
6

Minimum lease payments
$
94

$
74

$
62

$
38

$
32

$
95


v3.19.3.a.u2
Goodwill and Other Intangibles (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of the Company's Other Intangible Assets
Summary of Other Intangible Assets
 
Weighted Average Amortization Period (Years)
Gross
Carrying
Amount
Less
Accumulated
Amortization
Net
Carrying
Amount
Developed technologies
2019
14
$
3,731

$
1,271

$
2,460

2018
13
3,426

1,115

2,311

Customer relationships
2019
16
$
2,160

$
848

$
1,312

2018
15
2,155

703

1,452

Patents
2019
11
$
348

$
265

$
83

2018
12
332

231

101

Trademarks
 
 
 
2019
18
$
362

$
136

$
226

2018
18
349

108

241

In-process research and development
2019
N/A
$
110


$
110

2018
N/A
6


6

Other
2019
8
$
125

$
89

$
36

2018
11
128

76

52

Total
2019
14
$
6,836

$
2,609

$
4,227

2018
14
$
6,396

$
2,233

$
4,163


Changes in the Net Carrying Amount of Goodwill by Segment
Changes in the Net Carrying Value of Goodwill by Segment
 
Orthopaedics
MedSurg
Neurotechnology and Spine
Total
2017
$
2,426

$
3,509

$
1,233

$
7,168

Additions and adjustments
4

100

1,366

1,470

Foreign exchange
(31
)
(28
)
(16
)
(75
)
2018
$
2,399

$
3,581

$
2,583

$
8,563

Additions and adjustments

229

318

547

Foreign exchange
(13
)
(11
)
(17
)
(41
)
2019
$
2,386

$
3,799

$
2,884

$
9,069


Estimated Amortization Expense
Estimated Amortization Expense
2020
2021
2022
2023
2024
$
457

$
440

$
435

$
414

$
384


v3.19.3.a.u2
Capital Stock (Tables)
12 Months Ended
Dec. 31, 2019
Capital Stock [Abstract]  
Schedule of Fair Value Assumptions
Option Value and Assumptions
 
2019
 
2018
 
2017
Weighted-average fair value per share
$
36.30

 
$
28.52

 
$
22.43

Assumptions:
 
 
 
 
 
Risk-free interest rate
2.6
%
 
2.7
%
 
2.0
%
Expected dividend yield
1.1
%
 
1.2
%
 
1.5
%
Expected stock price volatility
18.3
%
 
16.8
%
 
19.4
%
Expected option life (years)
5.9

 
6.0

 
6.0


Summary of Stock Option Activity
2019 Stock Option Activity
 
Shares
(in millions)
 
Weighted
Average
Exercise Price
 
Weighted-Average
Remaining
Term
(in years)
 
Aggregate
Intrinsic
Value
Outstanding January 1
14.1

 
$
97.69

 
 
 
 
Granted
2.1

 
179.41

 
 
 
 
Exercised
(2.6
)
 
75.74

 
 
 
 
Canceled
(0.8
)
 
134.73

 
 
 
 
Outstanding December 31
12.8

 
$
113.10

 
6.0
 
$
1,242.8

Exercisable December 31
6.8

 
$
85.62

 
4.4
 
$
853.2

Options expected to vest
5.4

 
$
143.38

 
7.7
 
$
360.8


Summary of RSU and PSU Activity
Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) Activity
 
Shares
(in millions)
 
Weighted Average
Grant Date Fair Value
 
RSUs
 
PSUs
 
RSUs
 
PSUs
Nonvested on January 1
0.9

 
0.3

 
$
129.90

 
$
122.39

Granted
0.4

 

 
175.96

 
180.70

Vested
(0.4
)
 
(0.1
)
 
120.56

 
98.10

Canceled or forfeited
(0.1
)
 

 
146.37

 
136.56

Nonvested on December 31
0.8

 
0.2

 
$
158.80

 
$
152.44


v3.19.3.a.u2
Debt and Credit Facilities (Tables)
12 Months Ended
Dec. 31, 2019
Long-term Debt, Unclassified [Abstract]  
Maturities Of Long-Term Debt Disclosures
Summary of Total Debt
 
 
2019
 
2018
Senior unsecured notes:
 
 
 
 
 
Rate
 
Due
 
 
 
 
 
1.800%
 
January 15, 2019
$

 
$
500

 
2.000%
 
March 8, 2019

 
750

 
4.375%
 
January 15, 2020
500

 
499

 
Variable
 
November 30, 2020
333

 
343

 
2.625%
 
March 15, 2021
749

 
747

 
1.125%

November 30, 2023
609

 
627

 
3.375%
 
May 15, 2024
587

 
584

 
0.250%
 
December 3, 2024
938

 

 
3.375%
 
November 1, 2025
746

 
746

 
3.500%
 
March 15, 2026
991

 
990

 
2.125%
 
November 30, 2027
829

 
853

 
3.650%
 
March 7, 2028
596

 
595

 
0.750%
 
March 1, 2029
884

 

 
2.625%
 
November 30, 2030
712

 
733

 
1.000%
 
December 3, 2031
823

 

 
4.100%
 
April 1, 2043
391

 
391

 
4.375%
 
May 15, 2044
395

 
395

 
4.625%
 
March 15, 2046
981

 
980

Other
 
26

 
126

Total debt
 
$
11,090

 
$
9,859

Less current maturities
 
859

 
1,373

Total long-term debt
 
$
10,231

 
$
8,486

 
 
 
 
 

 
 
2019
 
2018
Unamortized debt issuance costs
$
58

 
$
50

Borrowing capacity on existing facilities
$
1,546

 
$
1,548

Fair value of senior unsecured notes
$
11,910

 
$
9,746


v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Income Tax Rate from Continuing Operations
Effective Income Tax Rate Reconciliation
 
2019
 
2018
 
2017
United States federal statutory rate
21.0
 %
 
21.0
 %
 
35.0
 %
United States state and local income taxes, less federal deduction
1.7

 
0.4

 
1.2

Foreign income tax at rates other than 21%
(4.6
)
 
(6.5
)
 
(21.0
)
Tax Cuts and Jobs Act of 2017 transition tax

 
2.2

 
38.0

Tax Cuts and Jobs Act of 2017 deferred tax changes

 
(0.6
)
 
2.3

Tax related to repatriation of foreign earnings
(0.5
)
 
0.5

 

Intellectual property transfer
3.5

 
(63.8
)
 

Other
(2.4
)
 
(4.0
)
 
(4.9
)
Effective income tax rate
18.7
 %
 
(50.8
)%
 
50.6
 %

Schedule of Provision for Income Taxes
Earnings Before Income Taxes 
 
2019
 
2018
 
2017
United States
$
366

 
$
509

 
$
499

International
2,196

 
1,847

 
1,564

Total
$
2,562

 
$
2,356

 
$
2,063

Components of Income Tax Expense (Benefit)
Current income tax expense:
2019
 
2018
 
2017
United States federal
$
(17
)
 
$
178

 
$
836

United States state and local
46

 
30

 
38

International
324

 
177

 
133

Total current income tax expense
$
353

 
$
385

 
$
1,007

Deferred income tax (benefit) expense:
 
 
 
 
 
United States federal
$
10

 
$
(44
)
 
$
84

United States state and local
(1
)
 
(20
)
 
(9
)
International
117

 
(1,518
)
 
(39
)
Total deferred income tax (benefit) expense
$
126

 
$
(1,582
)
 
$
36

Total income tax (benefit) expense
$
479

 
$
(1,197
)
 
$
1,043


Schedule of Difference in Income Tax Effects Comprising Company's Deferred Income Tax Assets and Liabilities
Deferred Income Tax Assets and Liabilities
Deferred income tax assets:
2019
 
2018
Inventories
$
415

 
$
390

Product-related liabilities
57

 
60

Other accrued expenses
221

 
222

Depreciation and amortization
1,363

 
1,504

State income taxes
65

 
70

Share-based compensation
49

 
47

Net operating loss carryforwards
95

 
134

Other
207

 
177

Total deferred income tax assets
$
2,472

 
$
2,604

Less valuation allowances
(75
)
 
(66
)
Net deferred income tax assets
$
2,397

 
$
2,538

Deferred income tax liabilities:
 
 
 
Depreciation and amortization
$
(893
)
 
$
(865
)
Undistributed earnings
(37
)
 
(46
)
Other

 
(3
)
Total deferred income tax liabilities
$
(930
)
 
$
(914
)
Net deferred income tax assets
$
1,467

 
$
1,624

Reported as:
 
 
 
Noncurrent deferred income tax assets
$
1,575

 
$
1,678

Noncurrent liabilities—Other liabilities
(108
)
 
(54
)
Total
$
1,467

 
$
1,624


Schedule of Unresolved Income Tax Positions
Uncertain Income Tax Positions
 
2019
 
2018
Beginning uncertain tax positions
$
528

 
$
540

Increases related to current year income tax positions
62

 
22

Increases related to prior year income tax positions
5

 
25

Decreases related to prior year income tax positions:
 
 
 
Settlements and resolutions of income tax audits
(78
)
 
(37
)
Statute of limitations expirations
(40
)
 
(14
)
Foreign currency translation
(5
)
 
(8
)
Ending uncertain tax positions
$
472

 
$
528

Reported as:
 
 
 
Noncurrent liabilities—Income taxes
$
472

 
$
528


v3.19.3.a.u2
Retirement Plans (Tables)
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Defined Contribution Plan Disclosures
 
2019
 
2018
 
2017
Plan expense
$
205

 
$
180

 
$
181

Expense funded with Stryker common stock
31

 
29

 
25

Stryker common stock held by plan:
 
 
 
 
 
Dollar amount
470

 
358

 
353

Shares (in millions)
2.2

 
2.3

 
2.3

Value as a percentage of total plan assets
12
%
 
12
%
 
11
%

Schedule of Costs of Retirement Plans
Components of Net Periodic Pension Cost
Net periodic benefit cost:
2019
 
2018
 
2017
Service cost
$
(41
)
 
$
(44
)
 
$
(42
)
Interest cost
(12
)
 
(11
)
 
(10
)
Expected return on plan assets
12

 
12

 
11

Amortization of prior service credit
1

 
1

 
1

Recognized actuarial loss
(9
)
 
(11
)
 
(9
)
Net periodic benefit cost
$
(49
)
 
$
(53
)
 
$
(49
)
Changes in assets and benefit obligations recognized in OCI:
Net actuarial gain (loss)
$
(74
)
 
$
11

 
$
(25
)
Recognized net actuarial loss
9

 
10

 
9

Prior service (credit) cost and transition amount
(1
)
 
(1
)
 
(1
)
Total recognized in other comprehensive income (loss)
$
(66
)
 
$
20

 
$
(17
)
Total recognized in net periodic benefit cost and OCI
$
(115
)
 
$
(33
)
 
$
(66
)
 
 
 
 
 
 
Weighted-average rates used to determine net periodic benefit cost:
Discount rate
1.9
%
 
1.8
%
 
1.8
%
Expected return on plan assets
3.5
%
 
3.3
%
 
3.3
%
Rate of compensation increase
2.9
%
 
2.8
%
 
2.8
%
Weighted-average discount rate used to determine projected benefit obligations
1.0
%
 
1.9
%
 
1.8
%

Schedule of Defined Benefit Plans Disclosures
 
2019
 
2018
Fair value of plan assets
$
428

 
$
376

Benefit obligations
(869
)
 
(735
)
Funded status
$
(441
)
 
$
(359
)
Reported as:
 
 
 
Current liabilities—accrued compensation
$
(2
)
 
$
(2
)
Noncurrent liabilities—other liabilities
(439
)
 
(357
)
Pre-tax amounts recognized in AOCI:
 
 
 
Unrecognized net actuarial loss
(250
)
 
(168
)
Unrecognized prior service credit
9

 
11

Total
$
(241
)
 
$
(157
)

Schedule of Changes in Accumulated Postemployment Benefit Obligations
Change in Benefit Obligations
 
 
 
 
2019
 
2018
Beginning projected benefit obligations
$
735

 
$
708

Service cost
41

 
44

Interest cost
12

 
11

Foreign exchange impact
(12
)
 
(16
)
Employee contributions
6

 
6

Actuarial (gains) losses
116

 
(1
)
Acquisition

 

Benefits paid
(29
)
 
(17
)
Ending projected benefit obligations
$
869

 
$
735

Ending accumulated benefit obligations
$
830

 
$
702


Schedule of Changes in Fair Value of Plan Assets
Change in Plan Assets
 
 
 
 
2019
 
2018
Beginning fair value of plan assets
$
376

 
$
370

Actual return
52

 
(2
)
Employer contributions
25

 
22

Employee contributions
6

 
6

Foreign exchange impact
(5
)
 
(6
)
Acquisition

 

Benefits paid
(26
)
 
(14
)
Ending fair value of plan assets
$
428

 
$
376


Valuation of Plan Assets
2019
Level 1
Level 2
Level 3
Total
Cash and cash equivalents
$
7

$

$

$
7

Equity securities
23

86


109

Corporate debt securities
3

173


176

Other
4

52

80

136

Total
$
37

$
311

$
80

$
428

2018
 
 
 
 
Cash and cash equivalents
$
10

$

$

$
10

Equity securities
20

85


105

Corporate debt securities
2

153


155

Other
7

43

56

106

Total
$
39

$
281

$
56

$
376


Schedule of Allocation of Plan Assets
Allocation of Plan Assets
 
2020 Target
 
2019 Actual
 
2018 Actual
Equity securities
23
%
 
22
%
 
26
%
Debt securities
44

 
44

 
46

Other
33

 
34

 
28

Total
100
%
 
100
%
 
100
%

Schedule of Expected Benefit Payments
Estimated Future Benefit Payments
2020
2021
2022
2023
2024
2025-2029
$
19

$
18

$
18

$
19

$
19

$
115


v3.19.3.a.u2
Summary of Quarterly Data (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Data [Abstract]  
Summary of Quarterly Data
2019 Quarters
Mar 31
Jun 30
Sep 30
Dec 31
Net sales
$
3,516

$
3,650

$
3,587

$
4,131

Gross profit
2,283

2,380

2,330

2,703

Earnings before income taxes
480

565

581

936

Net earnings
412

480

466

725

Net earnings per share of common stock:
 
 
Basic
$
1.10

$
1.29

$
1.24

$
1.94

Diluted
$
1.09

$
1.26

$
1.23

$
1.90

Dividends declared per share of common stock
$
0.52

$
0.52

$
0.52

$
0.575

 
 
 
 
 
2018 Quarters
Mar 31
Jun 30
Sep 30
Dec 31
Net sales
$
3,241

$
3,322

$
3,242

$
3,796

Gross profit
2,137

2,190

2,155

2,456

Earnings before income taxes
542

623

534

657

Net earnings
443

452

590

2,068

Net earnings per share of common stock:
 
 
Basic
$
1.18

$
1.21

$
1.58

$
5.52

Diluted
$
1.16

$
1.19

$
1.55

$
5.44

Dividends declared per share of common stock
$
0.47

$
0.47

$
0.47

$
0.52


v3.19.3.a.u2
Segment and Geographic Data (Tables)
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
Segment Results
 
 
 
 
2019
2018
2017
Orthopaedics
$
5,252

$
4,991

$
4,713

MedSurg
$
6,574

6,045

5,557

Neurotechnology & Spine
3,058

2,565

2,174

Net sales
$
14,884

$
13,601

$
12,444

Orthopaedics
$
348

$
350

$
337

MedSurg
379

285

315

Neurotechnology & Spine
218

176

142

Segment depreciation and amortization
$
945

$
811

$
794

Corporate and Other
99

155

65

Total depreciation and amortization
$
1,044

$
966

$
859

Orthopaedics
$
1,907

$
1,804

$
1,681

MedSurg
1,635

1,444

1,228

Neurotechnology & Spine
846

700

631

Segment operating income
$
4,388

$
3,948

$
3,540

Items not allocated to segments:
 
 
 
Corporate and Other
$
(480
)
$
(431
)
$
(402
)
Acquisition and integration-related charges
(275
)
(123
)
(64
)
Amortization of intangible assets
(464
)
(417
)
(371
)
Restructuring related and other charges
(226
)
(220
)
(194
)
Medical device regulations
(62
)
(12
)

Recall-related matters
(192
)
(23
)
(173
)
Regulatory and legal matters
24

(185
)
(39
)
Consolidated operating income
$
2,713

$
2,537

$
2,297


Sales and Other Financial Information by Business Segment
Segment Assets and Capital Spending
Assets:
2019
2018
2017
Orthopaedics
$
9,085

$
8,873

$
7,486

MedSurg
12,066

10,417

9,759

Neurotechnology & Spine
7,646

7,260

4,105

Total segment assets
$
28,797

$
26,550

$
21,350

Corporate and Other
1,370

679

847

Total assets
$
30,167

$
27,229

$
22,197

Capital spending:
 
 
 
Orthopaedics
$
125

$
134

$
138

MedSurg
265

217

194

Neurotechnology & Spine
29

31

50

Total segment capital spending
$
419

$
382

$
382

Corporate and Other
230

190

216

Total capital spending
$
649

$
572

$
598


Geographic Information on Net Sales and Long-Lived Assets
Geographic Information
 
Net Sales
 
Net Property, Plant and Equipment
 
2019
2018
2017
 
2019
2018
United States
$
10,957

$
9,848

$
9,059

 
$
1,561

$
1,348

Europe, Middle East, Africa
1,888

1,793

1,567

 
838

669

Asia Pacific
1,617

1,532

1,413

 
95

96

Other countries
422

428

405

 
73

178

Total
$
14,884

$
13,601

$
12,444

 
$
2,567

$
2,291


v3.19.3.a.u2
Significant Accounting Policies (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Accounting Standards Update 2018-11  
Operating lease, liability $ 350
Employee Stock Option  
Vesting period 10 years
Restricted Stock Units (RSUs)  
Performance period 3 years
Performance Stock Units (PSUs)  
Vesting period 3 years
Minimum  
Finite-lived intangible asset, useful life 4 years
Maximum  
Finite-lived intangible asset, useful life 40 years
Building and Improvements | Minimum  
Property, plant and equipment useful life 3 years
Building and Improvements | Maximum  
Property, plant and equipment useful life 30 years
Machinery and Equipment | Minimum  
Property, plant and equipment useful life 3 years
Machinery and Equipment | Maximum  
Property, plant and equipment useful life 10 years
v3.19.3.a.u2
Revenue Recognition - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Revenue Recognition [Abstract]    
Percentage of sales recognized as services over time (less than) 10.00%  
Contract liabilities $ 313 $ 327
v3.19.3.a.u2
Revenue Recognition - Disaggregated Sales Analysis (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Disaggregation of Revenue [Line Items]                      
Net sales $ 4,131 $ 3,587 $ 3,650 $ 3,516 $ 3,796 $ 3,242 $ 3,322 $ 3,241 $ 14,884 $ 13,601 $ 12,444
United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 10,957 9,848 9,059
International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 3,927 3,753 3,385
Orthopaedics                      
Disaggregation of Revenue [Line Items]                      
Net sales                 5,252 4,991 4,713
Orthopaedics | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 3,614 3,383 3,215
Orthopaedics | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,638 1,608 1,498
Orthopaedics | Knees                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,815 1,701 1,595
Orthopaedics | Knees | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,347 1,244 1,169
Orthopaedics | Knees | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 469 457 426
Orthopaedics | Hips                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,383 1,336 1,303
Orthopaedics | Hips | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 882 838 820
Orthopaedics | Hips | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 500 498 483
Orthopaedics | Trauma and Extremities                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,639 1,580 1,478
Orthopaedics | Trauma and Extremities | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,051 1,001 950
Orthopaedics | Trauma and Extremities | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 588 579 528
Orthopaedics | Other                      
Disaggregation of Revenue [Line Items]                      
Net sales                 415 374 337
Orthopaedics | Other | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 334 300 276
Orthopaedics | Other | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 81 74 61
MedSurg                      
Disaggregation of Revenue [Line Items]                      
Net sales                 6,574 6,045 5,557
MedSurg | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 5,255 4,743 4,376
MedSurg | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,319 1,302 1,181
MedSurg | Instruments                      
Disaggregation of Revenue [Line Items]                      
Net sales                 2,041 1,822 1,678
MedSurg | Instruments | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,608 1,424 1,304
MedSurg | Instruments | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 433 398 374
MedSurg | Endoscopy                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,983 1,846 1,652
MedSurg | Endoscopy | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,577 1,432 1,290
MedSurg | Endoscopy | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 406 414 362
MedSurg | Medical                      
Disaggregation of Revenue [Line Items]                      
Net sales                 2,264 2,118 1,969
MedSurg | Medical | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,787 1,630 1,525
MedSurg | Medical | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 477 488 444
MedSurg | Sustainability                      
Disaggregation of Revenue [Line Items]                      
Net sales                 286 259 258
MedSurg | Sustainability | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 283 257 257
MedSurg | Sustainability | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 3 2 1
Neurotechnology and Spine                      
Disaggregation of Revenue [Line Items]                      
Net sales                 3,058 2,565 2,174
Neurotechnology and Spine | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 2,088 1,722 1,468
Neurotechnology and Spine | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 970 843 706
Neurotechnology and Spine | Neurotechnology                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,973 1,737 1,423
Neurotechnology and Spine | Neurotechnology | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,271 1,115 900
Neurotechnology and Spine | Neurotechnology | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 702 622 523
Neurotechnology and Spine | Spine                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,085 828 751
Neurotechnology and Spine | Spine | United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 817 607 568
Neurotechnology and Spine | Spine | International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 $ 268 $ 221 $ 183
v3.19.3.a.u2
Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Assets    
Available-for-sale marketable securities: $ 88 $ 83
Total assets measured at fair value 4,817 3,894
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Total liabilities measured at fair value 478 255
(Level 1)    
Assets    
Available-for-sale marketable securities 4,337 3,616
Trading marketable securities 149 118
Total assets measured at fair value 4,486 3,734
Liabilities:    
Deferred compensation arrangements 149 118
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Total liabilities measured at fair value 149 118
(Level 2)    
Assets    
Total assets measured at fair value 331 160
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Total liabilities measured at fair value 23 20
(Level 2) | Foreign currency exchange forward contracts    
Assets    
Foreign currency exchange forward contracts 226 77
Interest rate swap asset 226 77
Liabilities:    
Foreign currency exchange forward contracts 23 20
(Level 2) | Interest rate swap asset    
Assets    
Foreign currency exchange forward contracts 17 0
Interest rate swap asset 17 0
(Level 2) | Available-for-sale marketable securities:    
Assets    
Available-for-sale marketable securities: 88 83
(Level 2) | Available-for-sale marketable securities: | Corporate and asset-backed debt securities    
Assets    
Available-for-sale marketable securities: 32 38
(Level 2) | Available-for-sale marketable securities: | United States agency debt securities    
Assets    
Available-for-sale marketable securities: 2 11
(Level 2) | Available-for-sale marketable securities: | United States treasury debt securities    
Assets    
Available-for-sale marketable securities: 49 23
(Level 2) | Available-for-sale marketable securities: | Certificates of deposit    
Assets    
Available-for-sale marketable securities: 5 11
(Level 3)    
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract]    
Beginning 117 32
Additions 298 77
Change in estimate (10) 15
Settlements (99) (7)
Ending 306 117
Total liabilities measured at fair value $ 306 $ 117
v3.19.3.a.u2
Fair Value Measurements (Available-For-Sale Securities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Fair Value Disclosures [Abstract]    
Due in one year or less $ 50 $ 51
Due after one year through three years $ 38 $ 32
v3.19.3.a.u2
Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Marketable securities, gain (loss) $ 155 $ 119 $ 60
v3.19.3.a.u2
Fair Value Measurements (Unrealized Losses And Fair Value Of Investments With Unrealized Losses) (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Total, number of investments 12
Total, fair value $ 15
Corporate and Asset-Backed  
Total, number of investments 2
Total, fair value $ 1
United States Treasury  
Total, number of investments 6
Total, fair value $ 13
Certificate of Deposit  
Total, number of investments 4
Total, fair value $ 1
v3.19.3.a.u2
Derivative Instruments (Forward Currency Exchange Contracts) (Details) - Foreign currency exchange forward contracts
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2019
EUR (€)
Jul. 31, 2019
USD ($)
Nov. 30, 2018
EUR (€)
Derivative [Line Items]          
Notional amount $ 8,088 $ 6,336      
Maximum term 1646 days 586 days      
Derivative, fair value, net $ 203 $ 57      
Other current assets          
Derivative [Line Items]          
Derivative asset 185 43      
Other noncurrent assets          
Derivative [Line Items]          
Derivative asset 41 34      
Other current liabilities          
Derivative [Line Items]          
Derivative liability (21) (20)      
Other noncurrent liabilities          
Derivative [Line Items]          
Derivative liability (2) 0      
Designated as Hedging Instrument          
Derivative [Line Items]          
Notional amount 1,113 0 € 2,400,000,000 $ 1,000 € 2,250,000,000
Derivative, fair value, net 40 0      
Designated as Hedging Instrument | Other current assets          
Derivative [Line Items]          
Derivative asset 0 0      
Designated as Hedging Instrument | Other noncurrent assets          
Derivative [Line Items]          
Derivative asset 40 0      
Designated as Hedging Instrument | Other current liabilities          
Derivative [Line Items]          
Derivative liability 0 0      
Designated as Hedging Instrument | Other noncurrent liabilities          
Derivative [Line Items]          
Derivative liability 0 0      
Not Designated as Hedging Instrument          
Derivative [Line Items]          
Notional amount 6,174 5,466      
Derivative, fair value, net 169 46      
Not Designated as Hedging Instrument | Other current assets          
Derivative [Line Items]          
Derivative asset 180 28      
Not Designated as Hedging Instrument | Other noncurrent assets          
Derivative [Line Items]          
Derivative asset 0 33      
Not Designated as Hedging Instrument | Other current liabilities          
Derivative [Line Items]          
Derivative liability (11) (15)      
Not Designated as Hedging Instrument | Other noncurrent liabilities          
Derivative [Line Items]          
Derivative liability 0 0      
Cash Flow Hedging | Designated as Hedging Instrument          
Derivative [Line Items]          
Notional amount 801 870      
Derivative, fair value, net (6) 11      
Cash Flow Hedging | Designated as Hedging Instrument | Other current assets          
Derivative [Line Items]          
Derivative asset 5 15      
Cash Flow Hedging | Designated as Hedging Instrument | Other noncurrent assets          
Derivative [Line Items]          
Derivative asset 1 1      
Cash Flow Hedging | Designated as Hedging Instrument | Other current liabilities          
Derivative [Line Items]          
Derivative liability (10) (5)      
Cash Flow Hedging | Designated as Hedging Instrument | Other noncurrent liabilities          
Derivative [Line Items]          
Derivative liability $ (2) $ 0      
v3.19.3.a.u2
Derivative Instruments (Narrative) (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Dec. 31, 2019
EUR (€)
Nov. 30, 2019
EUR (€)
Jul. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Nov. 30, 2018
EUR (€)
Foreign currency exchange forward contracts            
Derivative Instruments, Gain (Loss) [Line Items]            
Notional amount $ 8,088       $ 6,336  
Designated as Hedging Instrument | Foreign currency exchange forward contracts            
Derivative Instruments, Gain (Loss) [Line Items]            
Notional amount 1,113 € 2,400,000,000   $ 1,000 $ 0 € 2,250,000,000
Fair value of designated net investment hedges 17          
Gains on derivatives designated as hedges (6)          
Net investment hedges recorded in AOCI 27          
Designated as Hedging Instrument | Interest rate swap asset            
Derivative Instruments, Gain (Loss) [Line Items]            
Notional amount 750          
Gains on derivatives designated as hedges 6          
Derivative notional amount terminated | €     € 600,000,000      
Pretax gains recorded in AOCI $ 17          
v3.19.3.a.u2
Derivative Instruments (Movements out of OCI) (Details) - Foreign currency exchange forward contracts - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Derivative [Line Items]      
Foreign currency transaction gains (losses) $ 9 $ 1 $ (15)
Cost of sales      
Derivative [Line Items]      
Foreign currency transaction gains (losses) 2 7 (6)
Designated as Hedging Instrument | Other income (expense), net      
Derivative [Line Items]      
Foreign currency transaction gains (losses) 14 0 0
Not Designated as Hedging Instrument | Other income (expense), net      
Derivative [Line Items]      
Foreign currency transaction gains (losses) $ (7) $ (6) $ (9)
v3.19.3.a.u2
Accumulated Other Comprehensive (Loss) Income (AOCI) (Schedule of Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Accumulated Other Comprehensive Income (Loss), Beginning of Period $ (631) $ (553)  
OCI 30 (93)  
Income taxes 5 10  
Cost of sales 5,188 4,663 $ 4,264
Other (income) expense (151) (181) (234)
Income taxes 479 (1,197) 1,043
Other comprehensive income (loss) 25 (78) 208
Accumulated Other Comprehensive Income (Loss), End of Period (606) (631) (553)
Reclassification out of Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Income taxes 2 4  
Other comprehensive income (loss) 25 (78)  
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Cost of sales (2) (7)  
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Other (income) expense (10) 8  
Marketable Securities      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Accumulated Other Comprehensive Income (Loss), Beginning of Period (4) (4)  
OCI 0 2  
Income taxes 0 0  
Accumulated Other Comprehensive Income (Loss), End of Period (3) (4) (4)
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Income taxes 0 0  
Other comprehensive income (loss) 1 0  
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Cost of sales 0 0  
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Other (income) expense 1 (2)  
Pension Plans      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Accumulated Other Comprehensive Income (Loss), Beginning of Period (137) (134)  
OCI (74) (16)  
Income taxes 26 1  
Accumulated Other Comprehensive Income (Loss), End of Period (179) (137) (134)
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Income taxes (2) 2  
Other comprehensive income (loss) (42) (3)  
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Cost of sales 0 0  
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Other (income) expense 8 10  
Hedges      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Accumulated Other Comprehensive Income (Loss), Beginning of Period 50 28  
OCI   36  
Income taxes   (9)  
Accumulated Other Comprehensive Income (Loss), End of Period   50 28
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Income taxes   2  
Other comprehensive income (loss)   22  
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Cost of sales   (7)  
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Other (income) expense   0  
Hedges      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
OCI 3    
Income taxes 0    
Accumulated Other Comprehensive Income (Loss), End of Period 47    
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Income taxes 1    
Other comprehensive income (loss) (3)    
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Cost of sales (2)    
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Other (income) expense (5)    
Financial Statement Translation      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Accumulated Other Comprehensive Income (Loss), Beginning of Period (540) (443)  
OCI 101 (115)  
Income taxes (21) 18  
Accumulated Other Comprehensive Income (Loss), End of Period (471) (540) $ (443)
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income [Member]      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Income taxes 3 0  
Other comprehensive income (loss) 69 (97)  
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Cost of sales 0 0  
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense      
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]      
Other (income) expense $ (14) $ 0  
v3.19.3.a.u2
Acquisitions (Narrative) (Details)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Dec. 13, 2019
$ / shares
Dec. 13, 2019
€ / shares
Nov. 30, 2019
USD ($)
$ / shares
Oct. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
Nov. 30, 2018
USD ($)
$ / shares
Feb. 28, 2018
USD ($)
$ / shares
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Business Acquisition [Line Items]                    
Acquisitions, net of cash acquired               $ 802 $ 2,451 $ 831
Business Combination, Consideration Transferred               $ 1,096    
Mobius                    
Business Acquisition [Line Items]                    
Business Combination, Consideration Transferred       $ 360            
Future regulatory and commercial milestones       $ 130            
OrthoSpace, Ltd.                    
Business Acquisition [Line Items]                    
Business Combination, Consideration Transferred         $ 110          
Future regulatory and commercial milestones         $ 110          
K2M                    
Business Acquisition [Line Items]                    
Acquisitions, net of cash acquired           $ 1,380        
Consideration transfered, price per share (in dollars per share) | $ / shares           $ 27.50        
Entellus                    
Business Acquisition [Line Items]                    
Acquisitions, net of cash acquired             $ 697      
Consideration transfered, price per share (in dollars per share) | $ / shares             $ 24.00      
Wright                    
Business Acquisition [Line Items]                    
Acquisitions, net of cash acquired     $ 5,400              
Consideration transfered, price per share (in dollars per share) | $ / shares $ 30.75   $ 30.75              
Par value of ordinary shares of acquiree (in dollars per share) | € / shares   € 0.03                
v3.19.3.a.u2
Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of Acquisitions) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Business Acquisition [Line Items]      
Goodwill $ 9,069 $ 8,563 $ 7,168
Weighted average life of intangible assets 14 years 14 years  
Customer relationship      
Business Acquisition [Line Items]      
Weighted average life of intangible assets 16 years 15 years  
Developed technology and patents      
Business Acquisition [Line Items]      
Weighted average life of intangible assets 14 years 13 years  
Mobius      
Business Acquisition [Line Items]      
Accounts receivable $ 3    
Inventory 7    
Other assets 2    
Contingent consideration (4)    
Liabilities (10)    
Goodwill 301    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net $ 473    
Weighted average life of intangible assets 12 years    
Mobius | Customer relationship      
Business Acquisition [Line Items]      
Intangible assets: $ 7    
Mobius | Developed technology and patents      
Business Acquisition [Line Items]      
Intangible assets: 60    
Mobius | In-process research and development      
Business Acquisition [Line Items]      
Intangible assets: 98    
Mobius | Non-compete agreements      
Business Acquisition [Line Items]      
Intangible assets: 9    
OrthoSpace      
Business Acquisition [Line Items]      
Accounts receivable 1    
Inventory 1    
Other assets 1    
Contingent consideration 0    
Liabilities (29)    
Goodwill 114    
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net $ 208    
Weighted average life of intangible assets 18 years    
OrthoSpace | Customer relationship      
Business Acquisition [Line Items]      
Intangible assets: $ 0    
OrthoSpace | Developed technology and patents      
Business Acquisition [Line Items]      
Intangible assets: 120    
OrthoSpace | In-process research and development      
Business Acquisition [Line Items]      
Intangible assets: 0    
OrthoSpace | Non-compete agreements      
Business Acquisition [Line Items]      
Intangible assets: 0    
K2M      
Business Acquisition [Line Items]      
Accounts receivable   $ 58  
Inventory   131  
Other assets   160  
Contingent consideration   0  
Liabilities   (257)  
Goodwill   $ 766  
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net 1,380    
Weighted average life of intangible assets   15 years  
K2M | Customer relationship      
Business Acquisition [Line Items]      
Intangible assets:   $ 34  
K2M | Developed technology and patents      
Business Acquisition [Line Items]      
Intangible assets:   475  
K2M | Distributor relationship      
Business Acquisition [Line Items]      
Intangible assets:   1  
K2M | Trade name      
Business Acquisition [Line Items]      
Intangible assets:   10  
K2M | Internally developed software      
Business Acquisition [Line Items]      
Intangible assets:   2  
Entellus      
Business Acquisition [Line Items]      
Accounts receivable   17  
Inventory   14  
Other assets   62  
Contingent consideration   (79)  
Liabilities   (76)  
Goodwill   $ 465  
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net $ 697    
Weighted average life of intangible assets   16 years  
Entellus | Customer relationship      
Business Acquisition [Line Items]      
Intangible assets:   $ 33  
Entellus | Developed technology and patents      
Business Acquisition [Line Items]      
Intangible assets:   261  
Entellus | Distributor relationship      
Business Acquisition [Line Items]      
Intangible assets:   0  
Entellus | Trade name      
Business Acquisition [Line Items]      
Intangible assets:   0  
Entellus | Internally developed software      
Business Acquisition [Line Items]      
Intangible assets:   $ 0  
v3.19.3.a.u2
Contingencies and Commitments (Narrative) (Details)
$ in Millions
1 Months Ended 12 Months Ended
Mar. 19, 2019
USD ($)
Jul. 12, 2017
USD ($)
Nov. 30, 2019
USD ($)
Jun. 30, 2015
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2010
patent
Jan. 01, 2019
USD ($)
Payments for legal settlements       $ 54            
Lease expense         $ 133          
Lease expense           $ 138 $ 125      
Right of use asset         384          
Minimum                    
Estimate of possible loss         275          
Maximum                    
Estimate of possible loss         $ 520          
Zimmer Product Infringement                    
Number of patents allegedly infringed upon | patent                 3  
Gain contingency, damages awarded, value   $ 164           $ 76    
Proceeds from legal settlements $ 167                  
Gain recorded in selling, general and administrative expenses     $ 100              
Accounting Standards Update 2016-02                    
Right of use asset                   $ 350
Operating lease, liability                   $ 350
v3.19.3.a.u2
Commitments and Contingencies - Lease Cost (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Right-of-use assets $ 384
Lease liabilities, current 86
Lease liabilities, non-current $ 301
Weighted-average remaining lease term 6 years 2 months 12 days
Weighted-average discount rate 3.34%
v3.19.3.a.u2
Contingencies and Commitments (Future Purchase Obligations and Minimum Lease Payments) (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2020 $ 860
2021 750
2022 0
2023 612
2024 1,546
Thereafter 7,433
Purchase obligations  
2020 1,373
2021 19
2022 9
2023 6
2024 6
Thereafter 6
Minimum lease payments  
2020 94
2021 74
2022 62
2023 38
2024 32
Thereafter $ 95
v3.19.3.a.u2
Goodwill and Other Intangibles (Summary of the Company's Other Intangible Assets) (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill, impairment loss $ 0 $ 0
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 14 years 14 years
Gross Carrying Amount $ 6,836,000,000 $ 6,396,000,000
Less Accumulated Amortization 2,609,000,000 2,233,000,000
Net Carrying Amount $ 4,227,000,000 $ 4,163,000,000
Developed technologies    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 14 years 13 years
Gross Carrying Amount $ 3,731,000,000 $ 3,426,000,000
Less Accumulated Amortization 1,271,000,000 1,115,000,000
Net Carrying Amount $ 2,460,000,000 $ 2,311,000,000
Customer relationships    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 16 years 15 years
Gross Carrying Amount $ 2,160,000,000 $ 2,155,000,000
Less Accumulated Amortization 848,000,000 703,000,000
Net Carrying Amount $ 1,312,000,000 $ 1,452,000,000
Patents    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 11 years 12 years
Gross Carrying Amount $ 348,000,000 $ 332,000,000
Less Accumulated Amortization 265,000,000 231,000,000
Net Carrying Amount $ 83,000,000 $ 101,000,000
Trademarks    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 18 years 18 years
Gross Carrying Amount $ 362,000,000 $ 349,000,000
Less Accumulated Amortization 136,000,000 108,000,000
Net Carrying Amount 226,000,000 241,000,000
In-process research and development    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 110,000,000 6,000,000
Less Accumulated Amortization 0 0
Net Carrying Amount $ 110,000,000 $ 6,000,000
Other    
Acquired Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Period (Years) 8 years 11 years
Gross Carrying Amount $ 125,000,000 $ 128,000,000
Less Accumulated Amortization 89,000,000 76,000,000
Net Carrying Amount $ 36,000,000 $ 52,000,000
v3.19.3.a.u2
Goodwill and Other Intangibles (Changes in Net Carrying Amount of Goodwill by Segment) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Goodwill [Roll Forward]    
Goodwill, Beginning balance $ 8,563 $ 7,168
Additions and adjustments 547 1,470
Foreign exchange (41) (75)
Goodwill, Ending balance 9,069 8,563
Orthopaedics    
Goodwill [Roll Forward]    
Goodwill, Beginning balance 2,399 2,426
Additions and adjustments 0 4
Foreign exchange (13) (31)
Goodwill, Ending balance 2,386 2,399
MedSurg    
Goodwill [Roll Forward]    
Goodwill, Beginning balance 3,581 3,509
Additions and adjustments 229 100
Foreign exchange (11) (28)
Goodwill, Ending balance 3,799 3,581
Neuro and Spine    
Goodwill [Roll Forward]    
Goodwill, Beginning balance 2,583 1,233
Additions and adjustments 318 1,366
Foreign exchange (17) (16)
Goodwill, Ending balance $ 2,884 $ 2,583
v3.19.3.a.u2
Goodwill and Other Intangibles (Estimated Amortization Expense) (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2020 $ 457
2021 440
2022 435
2023 414
2024 $ 384
v3.19.3.a.u2
Capital Stock (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Capital Stock [Line Items]      
Common and Preferred Stock, shares authorized (in shares) 1,000,500,000    
Preferred Stock, Shares Authorized 500,000    
Preferred stock, par per share $ 1    
Common stock, authorized (in shares) 1,000,000,000    
Common stock, par value (in dollars per share) $ 0.10 $ 0.10  
Preferred stock, outstanding (in shares) 0    
Shares repurchased (in shares) 1,900,000    
Repurchase and retirement of shares of common stock $ 307    
Remaining shares authorized to be repurchased $ 1,033    
Capital shares reserved for future issuance 31,000,000 33,000,000  
Aggregate intrinsic value of options exercised $ 294 $ 247 $ 184
Options exercised during period, exercise price range, lower range limit $ 51.82    
Options exercised during period, exercise price range, upper range limit $ 209.78    
Compensation cost not yet recognized $ 101    
Compensation cost not yet recognized, period for recognized 1 year 6 months    
Restricted Stock Units (RSUs)      
Capital Stock [Line Items]      
Compensation cost not yet recognized $ 67    
Compensation cost not yet recognized, period for recognized 1 year    
Weighted average grant date fair value, Granted (in dollars per share) $ 175.96 $ 150.23  
Shares vested during the period $ 52    
Performance Stock Units (PSUs)      
Capital Stock [Line Items]      
Compensation cost not yet recognized $ 15    
Compensation cost not yet recognized, period for recognized 1 year    
Weighted average grant date fair value, Granted (in dollars per share) $ 180.70    
Shares vested during the period $ 10    
Employee Stock Purchase Plans      
Capital Stock [Line Items]      
Percentage of closing stock price under ESPP 95.00%    
Shares issued under the ESPP 166,758 168,626  
v3.19.3.a.u2
Capital Stock (Option Grant Assumptions) (Details) - $ / shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Capital Stock [Abstract]      
Weighted-average fair value per share $ 36.30 $ 28.52 $ 22.43
Risk-free interest rate 2.60% 2.70% 2.00%
Expected dividend yield 1.10% 1.20% 1.50%
Expected stock price volatility 18.30% 16.80% 19.40%
Expected option life (years) 5 years 10 months 24 days 6 years 6 years
v3.19.3.a.u2
Capital Stock (Summary of Stock Option Activity) (Details)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]  
Shares, Options outstanding at January 1 (in shares) | shares 14.1
Shares, Granted (in shares) | shares 2.1
Shares, Exercised (in shares) | shares (2.6)
Shares, Cancelled (in shares) | shares (0.8)
Shares, Options outstanding at December 31 (in shares) | shares 12.8
Shares, Exercisable at December 31 (in shares) | shares 6.8
Shares, Options expected to vest (in shares) | shares 5.4
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]  
Weighted average exercise price, Options outstanding at January 1 (in dollars per share) | $ / shares $ 97.69
Weighted average exercise price, Granted (in dollars per share) | $ / shares 179.41
Weighted average exercise price, Exercised (in dollars per share) | $ / shares 75.74
Weighted average exercise price, Cancelled (in dollars per share) | $ / shares 134.73
Weighted average exercise price, Options outstanding at December 31 (in dollars per share) | $ / shares 113.10
Weighted average exercise price, Exercisable at December 31 (in dollars per share) | $ / shares 85.62
Weighted average exercise price, Options expected to vest (in dollars per share) | $ / shares $ 143.38
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]  
Weighted-average remaining contractual term, Options outstanding at December 31 (in years) 6 years
Weighted-average remaining contractual term, Exercisable at December 31 (in years) 4 years 4 months 24 days
Weighted-average remaining contractual term, Options expected to vest (in years) 7 years 8 months 12 days
Aggregate intrinsic value, Options outstanding at December 31 | $ $ 1,242.8
Aggregate intrinsic value, Exercisable at December 31 | $ 853.2
Aggregate intrinsic value, Options expected to vest | $ $ 360.8
v3.19.3.a.u2
Capital Stock (Summary of RSU and PSU Activity) (Details) - $ / shares
shares in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Shares, Nonvested at January 1 (in shares) 0.9  
Shares, Granted (in shares) 0.4  
Shares, Vested (in shares) (0.4)  
Shares, Cancelled (in shares) (0.1)  
Shares, Nonvested at December 31 (in shares) 0.8 0.9
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Weighted average grant date fair value, Outstanding at January 1 (in dollars per share) $ 129.90  
Weighted average grant date fair value, Granted (in dollars per share) 175.96 $ 150.23
Weighted average grant date fair value, Vested (in dollars per share) 120.56  
Weighted average grant date fair value, Cancelled (in dollars per share) 146.37  
Weighted average grant date fair value, Outstanding at December 31 (in dollars per share) $ 158.80 $ 129.90
Performance Stock Units (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]    
Shares, Nonvested at January 1 (in shares) 0.3  
Shares, Granted (in shares) 0.0  
Shares, Vested (in shares) (0.1)  
Shares, Cancelled (in shares) 0.0  
Shares, Nonvested at December 31 (in shares) 0.2 0.3
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]    
Weighted average grant date fair value, Outstanding at January 1 (in dollars per share) $ 122.39  
Weighted average grant date fair value, Granted (in dollars per share) 180.70  
Weighted average grant date fair value, Vested (in dollars per share) 98.10  
Weighted average grant date fair value, Cancelled (in dollars per share) 136.56  
Weighted average grant date fair value, Outstanding at December 31 (in dollars per share) $ 152.44 $ 122.39
v3.19.3.a.u2
Debt and Credit Facilities (Narrative) (Details)
1 Months Ended 12 Months Ended
Jan. 31, 2020
USD ($)
Rate
Dec. 31, 2019
EUR (€)
Rate
Mar. 31, 2019
USD ($)
Jan. 31, 2019
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2019
Dec. 31, 2019
Rate
Line of Credit Facility [Line Items]                  
Commercial Paper         $ 0        
Interest expense, debt         287,000,000 $ 264,000,000 $ 247,000,000    
Senior Unsecured Notes 1.800% due 2019                  
Line of Credit Facility [Line Items]                  
Repaid face amount       $ 500,000,000          
Stated interest rate | Rate                 1.80%
Senior Unsecured Notes 2.000% due 2019                  
Line of Credit Facility [Line Items]                  
Repaid face amount     $ 750,000,000            
Stated interest rate               2.00% 2.00%
Senior Unsecured Notes 0.250% due 2024                  
Line of Credit Facility [Line Items]                  
Stated interest rate               0.25% 0.25%
Proceeds from issuance of debt | €   € 850,000,000              
Redemption price percentage | Rate   101.00%              
Senior Unsecured Notes 4.375% Due 2020                  
Line of Credit Facility [Line Items]                  
Stated interest rate               4.375%  
Senior Unsecured Notes 4.375% Due 2020 | Subsequent Event                  
Line of Credit Facility [Line Items]                  
Repaid face amount $ 500,000,000                
Stated interest rate | Rate 4.375%                
Senior Unsecured Notes 0.750% due 2029                  
Line of Credit Facility [Line Items]                  
Stated interest rate               0.75% 0.75%
Proceeds from issuance of debt | €   € 800,000,000              
Senior Unsecured Notes 1.000% due 2031                  
Line of Credit Facility [Line Items]                  
Stated interest rate               1.00% 1.00%
Proceeds from issuance of debt | €   € 750,000,000              
Redemption price percentage   101.00%              
Senior Unsecured Notes, Due November 2023                  
Line of Credit Facility [Line Items]                  
Stated interest rate               1.125%  
Senior Unsecured Notes, Due November 2027                  
Line of Credit Facility [Line Items]                  
Stated interest rate               2.125%  
Senior Unsecured Notes, Due November 2030                  
Line of Credit Facility [Line Items]                  
Stated interest rate               2.625%  
Commercial Paper                  
Line of Credit Facility [Line Items]                  
Maximum borrowing capacity         $ 1,500,000,000        
Maturities of time deposits         397 days        
v3.19.3.a.u2
Debt and Credit Facilities (Maturities Of Long-Term Debt Disclosures) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2019
Dec. 31, 2018
Other Long-term Debt $ 26     $ 126
Total debt 11,090     9,859
Current maturities of debt 859     1,373
Total Long-term Debt 10,231     8,486
Unamortized debt issuance costs 58     50
Borrowing capacity on existing facilities 1,546     1,548
Fair value of senior unsecured notes 11,910     9,746
Senior Unsecured Notes 1.800% due 2019        
Stated interest rate   1.80%    
Unsecured Debt 0     500
Senior Unsecured Notes 2.000% due 2019        
Stated interest rate   2.00% 2.00%  
Unsecured Debt 0     750
Senior Unsecured Notes 4.375% due 2020        
Stated interest rate   4.375%    
Unsecured Debt 500     499
Senior Unsecured Notes, Variable, due 2020        
Unsecured Debt 333     343
Senior Unsecured Notes 2.625% due 2021        
Stated interest rate   2.625%    
Unsecured Debt 749     747
Senior Unsecured Notes, 1.125%, due 2023        
Stated interest rate   1.125%    
Unsecured Debt 609     627
Senior Unsecured Notes 3.375% due 2024        
Stated interest rate   3.375%    
Unsecured Debt 587     584
Senior Unsecured Notes 0.250% due 2024        
Stated interest rate   0.25% 0.25%  
Unsecured Debt 938     0
Senior Unsecured Notes 3.375% due 2025        
Stated interest rate   3.375%    
Unsecured Debt 746     746
Senior Unsecured Notes 3.50% due 2026        
Stated interest rate   3.50%    
Unsecured Debt 991     990
Senior Unsecured Notes,2.125%, due 2027        
Stated interest rate   2.125%    
Unsecured Debt 829     853
Senior Unsecured Notes 3.650% due 2028        
Stated interest rate   3.65%    
Unsecured Debt 596     595
Senior Unsecured Notes 0.750% due 2029        
Stated interest rate   0.75% 0.75%  
Unsecured Debt 884     0
Senior Unsecured Notes, 2.625% due 2030        
Stated interest rate   2.625%    
Unsecured Debt 712     733
Senior Unsecured Notes 1.000% due 2031        
Stated interest rate   1.00% 1.00%  
Unsecured Debt 823     0
Senior Unsecured Notes 4.10% due 2043        
Stated interest rate   4.10%    
Unsecured Debt 391     391
Senior Unsecured Notes 4.375% due 2044        
Stated interest rate   4.375%    
Unsecured Debt 395     395
Senior Unsecured Notes 4.625% due 2046        
Stated interest rate   4.625%    
Unsecured Debt $ 981     $ 980
v3.19.3.a.u2
Income Taxes (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Contingency [Line Items]      
Effective income tax, percent 18.70% (50.80%) 50.60%
Interest expense and penalties included in other income (expense), net $ (9) $ (9) $ (28)
Net operating loss carryforward recognized 50 31 $ 32
Accrued interest and penalties 94 85  
Operating loss carryforwards 378    
Unrecognized tax benefits, interest on income tax expense 468 $ 521  
United States      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 358    
Foreign Tax Authority      
Income Tax Contingency [Line Items]      
Operating loss carryforwards 20    
Tax credit carryforward, amount 65    
Tax credit carryforward, valuation allowance $ 63    
v3.19.3.a.u2
Income Taxes (Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Income Tax Rate from Continuing Operations) (Details)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
United States federal statutory rate 21.00% 21.00% 35.00%
United States state and local income taxes, less federal deduction 1.70% 0.40% 1.20%
International operations (4.60%) (6.50%) (21.00%)
Tax Cuts and Jobs Act of 2017 transition tax 0.00% 2.20% 38.00%
Tax Cuts and Jobs Act of 2017 deferred tax changes 0.00% (0.60%) 2.30%
Tax related to repatriation of foreign earnings (0.50%) 0.50% 0.00%
Intellectual property transfer 3.50% (63.80%) 0.00%
Other (2.40%) (4.00%) (4.90%)
Effective income tax rate, total 18.70% (50.80%) 50.60%
v3.19.3.a.u2
Income Taxes (Schedule of Earnings before Income Taxes) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]                      
United States                 $ 366 $ 509 $ 499
International                 2,196 1,847 1,564
Earnings before income taxes $ 936 $ 581 $ 565 $ 480 $ 657 $ 534 $ 623 $ 542 $ 2,562 $ 2,356 $ 2,063
v3.19.3.a.u2
Income Taxes (Schedule of Provision for Income Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current income tax expense:      
United States federal $ (17) $ 178 $ 836
United States state and local 46 30 38
International 324 177 133
Total current income tax expense 353 385 1,007
Deferred income tax (benefit) expense:      
United States federal 10 (44) 84
United States state and local (1) (20) (9)
International 117 (1,518) (39)
Total deferred income tax (benefit) expense 126 (1,582) 36
Total income tax (benefit) expense $ 479 $ (1,197) $ 1,043
v3.19.3.a.u2
Income Taxes (Schedule of Difference in Income Tax Effects Comprising Company's Deferred Income Tax Assets and Liabilities) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Deferred income tax assets:    
Inventories $ 415 $ 390
Product-related liabilities 57 60
Other accrued expenses 221 222
Depreciation and amortization 1,363 1,504
State income taxes 65 70
Share-based compensation 49 47
Net operating loss carryforwards 95 134
Other 207 177
Total deferred income tax assets 2,472 2,604
Less valuation allowances (75) (66)
Net deferred income tax assets 2,397 2,538
Deferred income tax liabilities:    
Depreciation and amortization (893) (865)
Undistributed earnings (37) (46)
Other 0 (3)
Total deferred income tax liabilities (930) (914)
Net deferred income tax assets 1,467 1,624
Noncurrent deferred income tax assets 1,575 1,678
Noncurrent liabilities—Other liabilities $ (108) $ (54)
v3.19.3.a.u2
Income Taxes (Schedule of Unresolved Income Tax Positions) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Beginning uncertain tax positions $ 528 $ 540
Increases related to current year income tax positions 62 22
Increases related to prior year income tax positions 5 25
Settlements and resolutions of income tax audits (78) (37)
Statute of limitations expirations (40) (14)
Foreign currency translation (5) (8)
Ending uncertain tax positions $ 472 $ 528
v3.19.3.a.u2
Retirement Plans (Schedule of Defined Contribution Plan Disclosures) (Details) - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Retirement Benefits [Abstract]      
Plan expense $ 205 $ 180 $ 181
Expense funded with Stryker common stock 31 29 25
Stryker common stock held by plan, amount $ 470 $ 358 $ 353
Stryker common stock held by plan, shares 2.2 2.3 2.3
Stryker common stock held by plan, value as a percentage of total plan assets 12.00% 12.00% 11.00%
v3.19.3.a.u2
Retirement Plans (Schedule of Funded Status and Components of the Amounts Recognized in the Consolidated Balance Sheets and in Accumulated Other Comprehensive Gain (Loss), Before the Effect of Income Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Components of Net Periodic Pension Cost      
Service cost $ (41) $ (44) $ (42)
Interest cost (12) (11) (10)
Expected return on plan assets 12 12 11
Amortization of prior service cost and transition amount 1 1 1
Recognized actuarial loss (9) (11) (9)
Net periodic benefit cost (49) (53) (49)
Net actuarial gain (loss) (74) 11 (25)
Recognized net actuarial loss 9 10 9
Prior service cost and transition amount (1) (1) (1)
Total recognized in OCI (66) 20 (17)
Total recognized in net periodic benefit cost and OCI $ (115) $ (33) $ (66)
Defined Benefit Plan, Assumptions Used in Calculations [Abstract]      
Discount rate 1.90% 1.80% 1.80%
Expected return on plan assets 3.50% 3.30% 3.30%
Expected return on plan assets 2.90% 2.80% 2.80%
Weighted-average discount rate used to determine projected benefit obligations 1.00% 1.90% 1.80%
Defined Benefit Plan, Information about Plan Assets [Abstract]      
Fair value of plan assets $ 428 $ 376  
Benefit obligations (869) (735) $ (708)
Funded status (441) (359)  
Current liabilities—accrued compensation (2) (2)  
Noncurrent liabilities—other liabilities (439) (357)  
Unrecognized net actuarial loss (241) (157)  
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member]      
Defined Benefit Plan, Information about Plan Assets [Abstract]      
Unrecognized prior service credit 9 11  
Unrecognized net actuarial loss $ (250) $ (168)  
v3.19.3.a.u2
Retirement Plans (Narrative) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]    
Estimated net actuarial loss for the defined benefit pension plan $ 12  
Estimated amortization of prior service credit and transition asset to be reclassified from AOCI 1  
Actual return 52 $ (2)
Estimated future employer contributions in next fiscal year 24  
(Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Actual return $ 24  
v3.19.3.a.u2
Retirement Plans (Schedule of Change in Benefit Obligations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]      
Beginning projected benefit obligations $ 735 $ 708  
Service cost 41 44 $ 42
Interest cost 12 11 10
Foreign exchange impact (12) (16)  
Employee contributions 6 6  
Actuarial (gains) losses 116 (1)  
Acquisition 0 0  
Benefits paid (29) (17)  
Ending projected benefit obligations 869 735 $ 708
Ending accumulated benefit obligations $ 830 $ 702  
v3.19.3.a.u2
Retirement Plans (Change in Plan Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]    
Beginning fair value of plan assets $ 376 $ 370
Actual return 52 (2)
Employer contributions 25 22
Employee contributions 6 6
Foreign exchange impact (5) (6)
Acquisition 0 0
Benefits paid (26) (14)
Ending fair value of plan assets $ 428 $ 376
v3.19.3.a.u2
Retirement Plans (Schedule of Target and Actual Allocation of Plan Assets) (Details)
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations 100.00%  
Actual plan asset allocations 100.00% 100.00%
Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations 23.00%  
Actual plan asset allocations 22.00% 26.00%
Debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations 44.00%  
Actual plan asset allocations 44.00% 46.00%
Other    
Defined Benefit Plan Disclosure [Line Items]    
Target plan asset allocations 33.00%  
Actual plan asset allocations 34.00% 28.00%
v3.19.3.a.u2
Retirement Plans (Schedule of Valuation of the Company's Pension Plan Assets by Pricing Categories) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets $ 428 $ 376
(Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 37 39
(Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 311 281
(Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 80 56
Cash and cash equivalents    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 7 10
Cash and cash equivalents | (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 7 10
Cash and cash equivalents | (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 0 0
Cash and cash equivalents | (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 0 0
Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 109 105
Equity securities | (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 23 20
Equity securities | (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 86 85
Equity securities | (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 0 0
Corporate debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 176 155
Corporate debt securities | (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 3 2
Corporate debt securities | (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 173 153
Corporate debt securities | (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 0 0
Other    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 136 106
Other | (Level 1)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 4 7
Other | (Level 2)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets 52 43
Other | (Level 3)    
Defined Benefit Plan Disclosure [Line Items]    
Fair value of plan assets $ 80 $ 56
v3.19.3.a.u2
Retirement Plans (Expected Benefit Payments) (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Retirement Benefits [Abstract]  
2020 $ 19
2021 18
2022 18
2023 19
2024 19
2025-2029 $ 115
v3.19.3.a.u2
Summary of Quarterly Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Quarterly Financial Data [Abstract]                      
Net sales $ 4,131 $ 3,587 $ 3,650 $ 3,516 $ 3,796 $ 3,242 $ 3,322 $ 3,241 $ 14,884 $ 13,601 $ 12,444
Gross profit 2,703 2,330 2,380 2,283 2,456 2,155 2,190 2,137 9,696 8,938 8,180
Earnings before income taxes 936 581 565 480 657 534 623 542 2,562 2,356 2,063
Net earnings $ 725 $ 466 $ 480 $ 412 $ 2,068 $ 590 $ 452 $ 443 $ 2,083 $ 3,553 $ 1,020
Basic net earnings per share of common stock (in dollars per share) $ 1.94 $ 1.24 $ 1.29 $ 1.10 $ 5.52 $ 1.58 $ 1.21 $ 1.18 $ 5.57 $ 9.50 $ 2.73
Diluted net earnings per share of common stock (in dollars per share) 1.90 1.23 1.26 1.09 5.44 1.55 1.19 1.16 $ 5.48 $ 9.34 $ 2.68
Dividends declared per share of common stock (in dollars per share) $ 0.575 $ 0.52 $ 0.52 $ 0.52 $ 0.52 $ 0.47 $ 0.47 $ 0.47      
v3.19.3.a.u2
Segment and Geographic Data (Sales And Other Financial Information By Business Segment) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2019
USD ($)
segment
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Segment Reporting [Abstract]                      
Number of Reportable Segments | segment                 3    
Segment Reporting Information [Line Items]                      
Net sales $ 4,131 $ 3,587 $ 3,650 $ 3,516 $ 3,796 $ 3,242 $ 3,322 $ 3,241 $ 14,884 $ 13,601 $ 12,444
Depreciation and amortization                 1,044 966 859
Segment net earnings (loss)                 2,713 2,537 2,297
Amortization of intangible assets                 (464) (417) (371)
Net earnings $ 725 $ 466 $ 480 $ 412 $ 2,068 $ 590 $ 452 $ 443 2,083 3,553 1,020
MedSurg                      
Segment Reporting Information [Line Items]                      
Net sales                 6,574 6,045 5,557
Neuro and Spine                      
Segment Reporting Information [Line Items]                      
Net sales                 3,058 2,565 2,174
Operating Segments                      
Segment Reporting Information [Line Items]                      
Depreciation and amortization                 945 811 794
Segment operating income                 4,388 3,948 3,540
Operating Segments | Orthopaedics                      
Segment Reporting Information [Line Items]                      
Net sales                 5,252 4,991 4,713
Depreciation and amortization                 348 350 337
Segment net earnings (loss)                 1,907 1,804 1,681
Operating Segments | MedSurg                      
Segment Reporting Information [Line Items]                      
Net sales                 6,574 6,045 5,557
Depreciation and amortization                 379 285 315
Segment net earnings (loss)                 1,635 1,444 1,228
Operating Segments | Neuro and Spine                      
Segment Reporting Information [Line Items]                      
Net sales                 3,058 2,565 2,174
Depreciation and amortization                 218 176 142
Segment net earnings (loss)                 846 700 631
Corporate                      
Segment Reporting Information [Line Items]                      
Depreciation and amortization                 99 155 65
Segment Reconciling Items                      
Segment Reporting Information [Line Items]                      
Segment operating income                 (480) (431) (402)
Acquisition and integration-related charges                 (275) (123) (64)
Amortization of intangible assets                 (464) (417) (371)
Restructuring related and other charges                 (226) (220) (194)
Medical device regulations                 (62) (12) 0
Recall-related matters                 (192) (23) (173)
Regulatory and legal matters                 24 (185) (39)
Net earnings                 $ 2,713 $ 2,537 $ 2,297
v3.19.3.a.u2
Segment and Geographic Data (Segment Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]      
Assets $ 30,167 $ 27,229 $ 22,197
Capital Expenditures During Period 649 572 598
Operating Segments      
Segment Reporting Information [Line Items]      
Assets 28,797 26,550 21,350
Capital Expenditures During Period 419 382 382
Operating Segments | Orthopaedics      
Segment Reporting Information [Line Items]      
Assets 9,085 8,873 7,486
Capital Expenditures During Period 125 134 138
Operating Segments | MedSurg      
Segment Reporting Information [Line Items]      
Assets 12,066 10,417 9,759
Capital Expenditures During Period 265 217 194
Operating Segments | Neuro and Spine      
Segment Reporting Information [Line Items]      
Assets 7,646 7,260 4,105
Capital Expenditures During Period 29 31 50
Corporate      
Segment Reporting Information [Line Items]      
Assets 1,370 679 847
Capital Expenditures During Period $ 230 $ 190 $ 216
v3.19.3.a.u2
Segment and Geographic Data (Geographic Information on Net Sales and Long-Lived Assets) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information [Line Items]                      
Net sales $ 4,131 $ 3,587 $ 3,650 $ 3,516 $ 3,796 $ 3,242 $ 3,322 $ 3,241 $ 14,884 $ 13,601 $ 12,444
Net Property, Plant & Equipment 2,567       2,291       2,567 2,291  
United States                      
Segment Reporting Information [Line Items]                      
Net sales                 10,957 9,848 9,059
Net Property, Plant & Equipment 1,561       1,348       1,561 1,348  
Europe, Middle East, Africa                      
Segment Reporting Information [Line Items]                      
Net sales                 1,888 1,793 1,567
Net Property, Plant & Equipment 838       669       838 669  
Asia Pacific                      
Segment Reporting Information [Line Items]                      
Net sales                 1,617 1,532 1,413
Net Property, Plant & Equipment 95       96       95 96  
Other foreign countries                      
Segment Reporting Information [Line Items]                      
Net sales                 422 428 $ 405
Net Property, Plant & Equipment $ 73       $ 178       $ 73 $ 178  
v3.19.3.a.u2
Schedule II Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Allowance, Notes Receivable [Member] - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]        
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount $ 88 $ 64 $ 59 $ 56
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense 39 20 15  
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction 13 14 14  
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment $ 2 $ 1 $ (2)