Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | SYK |
Entity Registrant Name | STRYKER CORP |
Entity Central Index Key | 310764 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 378,418,945 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $2,151 | $2,052 | $6,553 | $6,319 |
Cost of sales | 682 | 655 | 2,125 | 2,036 |
Gross profit | 1,469 | 1,397 | 4,428 | 4,283 |
Research, development and engineering expenses | 136 | 114 | 397 | 342 |
Selling, general and administrative expenses | 1,136 | 791 | 3,067 | 2,433 |
Intangible asset amortization | 34 | 30 | 102 | 92 |
Restructuring Charges, Selling, General and Administrative | 13 | 12 | 36 | 45 |
Total operating expenses | 1,319 | 947 | 3,602 | 2,912 |
Operating income | 150 | 450 | 826 | 1,371 |
Other income (expense), net | -13 | -6 | -45 | -24 |
Earnings before income taxes | 137 | 444 | 781 | 1,347 |
Income taxes | 34 | 91 | 161 | 319 |
Net earnings | $103 | $353 | $620 | $1,028 |
Net earnings per share of common stock: | ||||
Basic net earnings per share of common stock | $0.27 | $0.93 | $1.64 | $2.70 |
Diluted net earnings per share of common stock | $0.27 | $0.92 | $1.62 | $2.68 |
Weighted-average shares outstanding—in millions: | ||||
Basic | 378.3 | 380.2 | 378.7 | 380.7 |
Net effect of dilutive employee stock options | 3.4 | 2.3 | 3.1 | 2.5 |
Diluted | 381.7 | 382.5 | 381.8 | 383.2 |
Anti-dilutive shares excluded from the calculation of net effect of dilutive employee stock options | 0 | 6.4 | 1.9 | 8.6 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net earnings | $103 | $353 | $620 | $1,028 |
Unrealized gains (losses) on securities, net of income tax (expense) benefit [($1) and $1 in 2013, ($3) and ($4) in 2012] | 3 | 4 | -3 | 8 |
Unfunded pension losses, net of income tax (expense) benefit [($1) and $0 in 2013, $0 and $0 in 2012] | -3 | 0 | -1 | 0 |
Foreign currency translation adjustments | 115 | 134 | 21 | -74 |
Total other comprehensive income (loss) | 115 | 138 | 17 | -66 |
Comprehensive income | $218 | $491 | $637 | $962 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unrealized gains (losses) on securities, income tax (expense) benefit | ($1) | ($3) | $1 | ($4) |
Unfunded pension (losses) gains, income tax (expense) benefit | ($1) | $0 | $0 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $1,110 | $1,395 |
Marketable securities | 4,028 | 2,890 |
Accounts receivable, less allowance of $70 ($58 in 2012) | 1,370 | 1,430 |
Inventories | ||
Materials and supplies | 210 | 202 |
Work in process | 92 | 71 |
Finished goods | 1,102 | 992 |
Total inventories | 1,404 | 1,265 |
Deferred income taxes | 757 | 811 |
Prepaid expenses and other current assets | 518 | 357 |
Total current assets | 9,187 | 8,148 |
Property, plant and equipment | ||
Land, buildings and improvements | 669 | 625 |
Machinery and equipment | 1,740 | 1,607 |
Total property, plant and equipment | 2,409 | 2,232 |
Less allowance for depreciation | 1,373 | 1,284 |
Net property, plant and equipment | 1,036 | 948 |
Other assets | ||
Goodwill | 2,603 | 2,142 |
Other intangibles, net | 1,539 | 1,424 |
Other | 518 | 544 |
Total assets | 14,883 | 13,206 |
Current liabilities | ||
Accounts payable | 278 | 288 |
Accrued compensation | 434 | 467 |
Income taxes | 25 | 70 |
Dividend payable | 100 | 101 |
Accrued expenses and other liabilities | 1,456 | 934 |
Current maturities of debt | 31 | 16 |
Total current liabilities | 2,324 | 1,876 |
Long-term debt, excluding current maturities | 2,743 | 1,746 |
Other liabilities | 1,079 | 987 |
Shareholders' equity | ||
Common stock, $0.10 par value: Authorized: 1 billion shares, outstanding: 378 million shares (380 million in 2012) | 38 | 38 |
Additional paid-in capital | 1,142 | 1,098 |
Retained earnings | 7,411 | 7,332 |
Accumulated other comprehensive income | 146 | 129 |
Total shareholders' equity | 8,737 | 8,597 |
Total liabilities & shareholders' equity | $14,883 | $13,206 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $70 | $58 |
Common stock, par value | $0.10 | $0.10 |
Common stock, authorized | 1,000 | 1,000 |
Common stock, outstanding | 378 | 380 |
Consolidated_Statement_Of_Shar
Consolidated Statement Of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income |
In Millions | |||||
Balances at Dec. 31, 2012 | $8,597 | $38 | $1,098 | $7,332 | $129 |
Net earnings | 620 | 620 | |||
Other comprehensive income | 17 | 17 | |||
Issuance of shares of common stock under stock option and benefit plans, including excess income tax benefit | -2 | -2 | |||
Repurchase and retirement of common stock | -252 | -11 | -241 | ||
Share-based compensation | 57 | 57 | |||
Cash dividends declared of common stock | -300 | -300 | |||
Balances at Sep. 30, 2013 | $8,737 | $38 | $1,142 | $7,411 | $146 |
Consolidated_Statement_Of_Shar1
Consolidated Statement Of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 |
Issuance of common stock under stock option and benefit plans, shares | 5.9 | |||
Issuance of common stock under stock option and benefit plans, excess income tax benefit | $5 | |||
Repurchase and retirement of common stock, shares | 3.9 | |||
Cash dividends declared, per share of common stock | $0.27 | $0.27 | $0.27 | $0.80 |
Dividend payable date | 31-Oct-13 | 31-Jul-13 | 30-Apr-13 | 31-Oct-13 |
Dividend record date | 30-Sep-13 | 28-Jun-13 | 28-Mar-13 | 30-Sep-13 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ||||
Net earnings | $103 | $353 | $620 | $1,028 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation | 42 | 38 | 123 | 115 |
Intangible asset amortization | 34 | 30 | 102 | 92 |
Share-based compensation | 19 | 18 | 57 | 57 |
Restructuring charges | 14 | 12 | 38 | 45 |
Sale of inventory stepped up to fair value at acquisition | 8 | 16 | 15 | |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||
Accounts receivable | 57 | 27 | 46 | 52 |
Inventories | -43 | -10 | -106 | -40 |
Accounts payable | -1 | -21 | -31 | -65 |
Accrued expenses and other liabilities | 381 | 95 | 538 | -88 |
Income taxes | 34 | 19 | -116 | -108 |
Other | -26 | 8 | -73 | -42 |
Net cash provided by operating activities | 622 | 569 | 1,214 | 1,061 |
Investing activities | ||||
Acquisitions, net of cash acquired | -24 | -37 | -686 | -47 |
Purchases of marketable securities | -1,160 | -744 | -3,777 | -2,314 |
Proceeds from sales of marketable securities | 859 | 411 | 2,676 | 2,355 |
Purchases of property, plant and equipment | -43 | -58 | -139 | -161 |
Net cash used in investing activities | -368 | -428 | -1,926 | -167 |
Financing activities | ||||
Proceeds from borrowings | 110 | 37 | 1,272 | 131 |
Payments on borrowings | -107 | -36 | -258 | -129 |
Dividends paid | -100 | -81 | -301 | -243 |
Repurchase and retirement of common stock | -2 | -19 | -252 | -108 |
Other | -6 | -11 | -8 | -37 |
Net cash (used in) provided by financing activities | -105 | -110 | 453 | -386 |
Effect of exchange rate changes on cash and cash equivalents | -10 | -1 | -26 | 10 |
Change in cash and cash equivalents | $139 | $30 | ($285) | $518 |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION |
General Information | |
The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2012. | |
Management believes that the accompanying unaudited Consolidated Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. The results of operations for the three- and nine- month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ended December 31, 2013. The balance sheet at December 31, 2012 has been derived from the audited Consolidated Financial Statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. | |
Certain prior year amounts in our Segment Information in Note 10 have been reclassified to conform to the presentation used in 2013. |
Reclassification_Adjustments_O
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) (Notes) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Reclassification Adjustments Out of Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | |||||||||||||||||||||||||||||||
Changes in and reclassifications out of AOCI, net of tax, for the three- and nine-month periods ended September 30, 2013 were as follows: | ||||||||||||||||||||||||||||||||
Foreign Currency Translation | Marketable Securities Unrealized Gain (Loss) | Defined Benefit Pension Plans | Total AOCI | |||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||
Beginning balance | $ | 132 | $ | 226 | $ | (2 | ) | $ | 4 | $ | (99 | ) | $ | (101 | ) | $ | 31 | $ | 129 | |||||||||||||
Other Comprehensive Income (OCI) before reclassifications | 115 | 21 | 10 | 11 | (5 | ) | (5 | ) | 120 | 27 | ||||||||||||||||||||||
Amounts reclassified from AOCI | — | — | (7 | ) | (14 | ) | 2 | 4 | (5 | ) | (10 | ) | ||||||||||||||||||||
Net current-period OCI | 115 | 21 | 3 | (3 | ) | (3 | ) | (1 | ) | 115 | 17 | |||||||||||||||||||||
Balance at September 30, 2013 | $ | 247 | $ | 247 | $ | 1 | $ | 1 | $ | (102 | ) | $ | (102 | ) | $ | 146 | $ | 146 | ||||||||||||||
The following items were reclassified out of AOCI into earnings for the three- and nine-month periods ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||
Detail of AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Earnings | Amount Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Earnings | ||||||||||||||||||||||||||||
Unrealized gains on available-for-sale marketable securities | $ | (6 | ) | Other (income) expense | $ | (15 | ) | Other (income) expense | ||||||||||||||||||||||||
(1 | ) | Income tax benefit | 1 | Income tax expense | ||||||||||||||||||||||||||||
$ | (7 | ) | Net of tax | $ | (14 | ) | Net of tax | |||||||||||||||||||||||||
Amortization of defined benefit pension items: | ||||||||||||||||||||||||||||||||
Actuarial losses | $ | 2 | Cost of sales | $ | 5 | Cost of sales | ||||||||||||||||||||||||||
— | Income tax benefit | (1 | ) | Income tax benefit | ||||||||||||||||||||||||||||
$ | 2 | Net of tax | $ | 4 | Net of tax | |||||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||||||||||||
Accounting guidance on fair value measurements for certain financial assets and liabilities requires that financial assets and liabilities carried at fair value be classified 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 the reporting entity's own assumptions or external inputs from active markets. | |||||||||||||||||||||||||||||||||||
When applying fair value principles in the valuation of assets and liabilities, we are required to maximize the use of quoted market prices and minimize the use of unobservable inputs. We calculate the fair value of our Level 1 and Level 2 instruments based on the exchange traded price of similar or identical instruments, where available, or based on other observable inputs. There were no significant transfers into or out of Level 1 or Level 2 that occurred between December 31, 2012 and September 30, 2013. The fair value of our Level 3 assets and liabilities are calculated as the net present value of expected cash flows based on externally provided or obtained inputs. Certain Level 3 assets may also be based on sale prices of similar assets. Our fair value calculations take into consideration our credit risk and that of our counterparties. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. We did not change our valuation techniques used in measuring the fair value of any financial assets and liabilities during the period. | |||||||||||||||||||||||||||||||||||
Valuation of assets and liabilities measured at fair value: | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
September | December | September | December | September | December | September | December | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,110 | $ | 1,395 | $ | 1,110 | $ | 1,395 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Available-for-sale marketable securities | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | 1,841 | 1,280 | — | — | 1,841 | 1,280 | — | — | |||||||||||||||||||||||||||
Foreign government debt securities | 890 | 848 | — | — | 890 | 848 | — | — | |||||||||||||||||||||||||||
United States agency debt securities | 519 | 288 | — | — | 519 | 288 | — | — | |||||||||||||||||||||||||||
United States treasury debt securities | 635 | 343 | — | — | 635 | 343 | — | — | |||||||||||||||||||||||||||
Certificates of deposit | 115 | 114 | — | — | 115 | 114 | — | — | |||||||||||||||||||||||||||
Other | 28 | 17 | — | — | 28 | 17 | — | — | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | 4,028 | 2,890 | — | — | 4,028 | 2,890 | — | — | |||||||||||||||||||||||||||
Trading marketable securities | 67 | 57 | 67 | 57 | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency exchange contracts | 2 | 3 | — | — | 2 | 3 | — | — | |||||||||||||||||||||||||||
$ | 5,207 | $ | 4,345 | $ | 1,177 | $ | 1,452 | $ | 4,030 | $ | 2,893 | $ | — | $ | — | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deferred compensation arrangements | $ | 67 | $ | 57 | $ | 67 | $ | 57 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Contingent consideration | 59 | 103 | — | — | — | — | 59 | 103 | |||||||||||||||||||||||||||
Foreign currency exchange contracts | 1 | 1 | — | — | 1 | 1 | — | — | |||||||||||||||||||||||||||
$ | 127 | $ | 161 | $ | 67 | $ | 57 | $ | 1 | $ | 1 | $ | 59 | $ | 103 | ||||||||||||||||||||
Rollforward of assets and liabilities measured at fair value using unobservable inputs (Level 3): | |||||||||||||||||||||||||||||||||||
Total | Corporate and Asset-Backed Debt Securities | Contingent Consideration | |||||||||||||||||||||||||||||||||
September | December | September | December | September | December | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | (103 | ) | $ | (114 | ) | $ | — | $ | 1 | $ | (103 | ) | $ | (115 | ) | |||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Gains or (losses) included in earnings | 5 | 6 | — | — | 5 | 6 | |||||||||||||||||||||||||||||
Sales | — | (1 | ) | — | (1 | ) | — | — | |||||||||||||||||||||||||||
Settlements | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||||||||||||||
Other | — | (33 | ) | — | — | — | (33 | ) | |||||||||||||||||||||||||||
Balance at the end of the period | $ | (59 | ) | $ | (103 | ) | $ | — | $ | — | $ | (59 | ) | $ | (103 | ) | |||||||||||||||||||
The estimated fair value of the liability for contingent consideration represents milestone payments for acquisitions. The fair value of these liabilities were estimated using a discounted cash flow technique. Significant inputs to this technique included our probability assessments of the occurrence of triggering events, appropriately discounted considering the uncertainties associated with the obligation. We remeasure these liabilities each reporting period and record the changes in the fair value in selling, general and administrative expense for changes in probability of occurrence and other income (expense) for changes in time value of money. | |||||||||||||||||||||||||||||||||||
Quantitative information about the inputs and valuation methodologies we use for fair value measurements classified in Level 3 at September 30, 2013: | |||||||||||||||||||||||||||||||||||
Probability Range (Weighted Average) | |||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Minimum | Maximum | Weighted Average | ||||||||||||||||||||||||||||||
Contingent consideration | $59 | Discounted cash flow | Probability of occurrence | 85 | 100 | 95 | |||||||||||||||||||||||||||||
Summary of marketable securities at September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||||
September | December | September | December | September | December | September | December | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | $ | 1,840 | $ | 1,277 | $ | 2 | $ | 4 | $ | (1 | ) | $ | (1 | ) | $ | 1,841 | $ | 1,280 | |||||||||||||||||
Foreign government debt securities | 890 | 846 | 1 | 2 | (1 | ) | — | 890 | 848 | ||||||||||||||||||||||||||
United States agency debt securities | 519 | 288 | — | — | — | — | 519 | 288 | |||||||||||||||||||||||||||
United States treasury debt securities | 635 | 343 | — | — | — | — | 635 | 343 | |||||||||||||||||||||||||||
Certificates of deposit | 115 | 114 | — | — | — | — | 115 | 114 | |||||||||||||||||||||||||||
Other | 28 | 17 | — | — | — | — | 28 | 17 | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 4,027 | $ | 2,885 | $ | 3 | $ | 6 | $ | (2 | ) | $ | (1 | ) | 4,028 | 2,890 | |||||||||||||||||||
Trading marketable securities | 67 | 57 | |||||||||||||||||||||||||||||||||
Total marketable securities | $ | 4,095 | $ | 2,947 | |||||||||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||||||||||||
Current assets-marketable securities | $ | 4,028 | $ | 2,890 | |||||||||||||||||||||||||||||||
Noncurrent assets-other | 67 | 57 | |||||||||||||||||||||||||||||||||
$ | 4,095 | $ | 2,947 | ||||||||||||||||||||||||||||||||
The unrealized losses on available-for-sale marketable securities at September 30, 2013 were primarily caused by increases in yields as a result of the rise in government benchmark rates. Less than 1% of our investments in available-for-sale securities had a credit quality rating of less than A2 (Moody's), A (Standard & Poors) and A (Fitch). Because we do not intend 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 at September 30, 2013. | |||||||||||||||||||||||||||||||||||
The cost and estimated fair value of available-for-sale marketable securities at September 30, 2013 by contractual maturity are: | |||||||||||||||||||||||||||||||||||
Cost | Estimated | ||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 816 | $ | 816 | |||||||||||||||||||||||||||||||
Due after one year through three years | 2,864 | 2,865 | |||||||||||||||||||||||||||||||||
Due after three years | 347 | 347 | |||||||||||||||||||||||||||||||||
$ | 4,027 | $ | 4,028 | ||||||||||||||||||||||||||||||||
The gross unrealized losses and fair value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2013 are: | |||||||||||||||||||||||||||||||||||
Corporate and Asset-Backed Debt Securities | Foreign Government Debt Securities | United States Agency Debt Securities | Other | Total | |||||||||||||||||||||||||||||||
Less Than 12 Months | Total | Less Than 12 Months | Total | Less Than 12 Months | Total | Less Than 12 Months | Total | Less Than 12 Months | Total | ||||||||||||||||||||||||||
Number of investments | 333 | 333 | 104 | 104 | 54 | 54 | 14 | 14 | 505 | 505 | |||||||||||||||||||||||||
Fair value | $ | 722 | $ | 722 | $ | 593 | $ | 593 | $ | 277 | $ | 277 | $ | 17 | $ | 17 | $ | 1,609 | $ | 1,609 | |||||||||||||||
Unrealized losses | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | (2 | ) | |||||||||
Upon the sale of a security classified as available-for-sale, the security’s specific unrealized gain (loss) is reclassified out of AOCI into earnings based on the specific identification method. | |||||||||||||||||||||||||||||||||||
Interest and marketable securities income was $7 and $12 for the three months ended September 30, 2013 and 2012, respectively, and $18 and $37 for the nine months ended September 30, 2013 and 2012, respectively, and is included in other income (expense). |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Strategies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Derivative Instruments And Hedging Strategies | DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | ||||||||
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. We are exposed to credit loss in the event of nonperformance by counterparties on our outstanding forward currency exchange contracts 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. | |||||||||
Foreign currency transaction losses recognized in other income (expense) totaled $0 and ($2) for the three months ended September 30, 2013 and 2012, respectively, and ($3) and ($4) for nine months ended September 30, 2013 and 2012, respectively, and outstanding derivative contracts at September 30, 2013 were: | |||||||||
Notional Amount | Assets | Liabilities | Maximum Term (Days) | ||||||
Forward currency exchange contracts | $1,426 | $2 | $1 | 92 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES |
We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product, labor, intellectual property and other matters. The outcomes of certain of these matters will not be known for prolonged periods of time. To partially mitigate losses arising from unfavorable outcomes in such matters, we purchase third-party insurance coverage subject to certain deductibles and loss limitations. Future operating results may be unfavorably impacted by any settlement payments or losses beyond the amounts of insurance carried. In addition, such matters may negatively impact our ability to obtain cost effective third-party insurance coverage in future periods. 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 has sufficient information to reasonably estimate our future obligations, a liability representing management's best estimate of the probable cost, or the minimum of the range of probable losses when a best estimate within the range is not known, for the resolution of these legal matters is recorded. Estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those projected by management, additional expense may be incurred, which could unfavorably affect future operating results. | |
In 2010 we received a subpoena from the United States Department of Justice (DOJ) related to the sales and marketing of the OtisKnee device. The subpoena concerns allegations of violations of Federal laws related to sales of a device not cleared by the United States Food and Drug Administration (FDA). We continue to discuss the settlement of this matter with the DOJ, but there can be no assurance that we will reach a consensual resolution rather than seeking a resolution through the courts. | |
In 2007 we disclosed that the United States Securities and Exchange Commission (SEC) made an inquiry of us regarding possible violations of the Foreign Corrupt Practices Act in connection with the sale of medical devices in certain foreign countries. We are fully cooperating with the SEC regarding these matters. | |
We have recorded charges totaling $93 related to the above DOJ and SEC regulatory matters, including $58 in the nine months ended September 30, 2013. The final outcome of these matters is difficult to predict, and the ultimate cost to resolve these matters may be materially different than the amount of the current estimate and accruals and could have a material adverse effect on our financial position, results of operations and cash flows. | |
In June 2012 we voluntarily recalled our Rejuvenate and ABG II modular-neck hip stems and terminated global distribution of these hip products. We notified healthcare professionals and regulatory bodies of this recall, which was taken due to potential risks associated with fretting and/or corrosion that may lead to adverse local tissue reactions. Product liability lawsuits relating to this voluntary recall have been filed against us. As previously announced, we intend to reimburse implanted patients for reasonable and customary costs of testing and treatment services, including any necessary revision surgeries. We continue to work with the medical community to evaluate the data and further understand this matter and the associated costs. The ultimate total cost with respect to this matter will depend on many factors that are difficult to predict with the limited information received to date and may vary materially based on the number of and actual costs of patients seeking testing and treatment services, the number of and actual costs of patients requiring revision surgeries, the number of and actual costs to settle lawsuits filed against us, and the amount of third-party insurance recoveries. Based on the information that has been received, the actuarially determined range of probable loss to resolve this matter is estimated to be approximately $700 to $1,130, before third-party insurance recoveries. In the nine months ended September 30, 2013, we recorded charges to earnings of $510 representing the excess of the $700 minimum of the range over the previously recorded reserves. No contingent gain for third-party insurance recoveries was recorded as of September 30, 2013. As noted above, the final outcome of this matter is dependent on many variables that are difficult to predict. The ultimate cost to entirely resolve this matter may be materially different than the amount of the current estimate 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 Holdings, Inc. (Zimmer), alleging that a Zimmer product infringed three of our patents. In rulings issued in August and September 2013, the trial judge upheld the February 2013 jury verdict in our favor, issued a permanent injunction barring Zimmer from making or selling infringing products, and ordered Zimmer to pay us at least $228. Zimmer is appealing this ruling and the ultimate resolution of this matter may differ materially. Accordingly, we have not recorded a contingent gain related to this matter. | |
For each of the following legal matters the final outcome is dependent on many variables and cannot be predicted. Accordingly, it is not possible at this time for us to estimate any material loss or range of losses. However, the ultimate cost to resolve these matters could have a material adverse effect on our financial position, results of operations and cash flows. | |
In April 2011 lawsuits brought by Hill-Rom Company, Inc. and affiliated entities (Hill-Rom) against us were filed in the United States District Court for the Western District of Wisconsin and the United States District Court for the Southern District of Indiana. The Wisconsin lawsuit was subsequently transferred to the United States District Court in Indiana. The suits allege infringement under United States patent laws with respect to certain patient handling equipment we manufactured and sold and seek damages and permanent injunctions. The first lawsuit involved ten patents related to the use of a motorized wheel for hospital beds and stretchers. We have entered into an agreement settling that lawsuit. This agreement included a payment to Hill-Rom of $3.75, a covenant not to sue and a cross-license. The second lawsuit involves nine patents related to electrical network communications for hospital beds. The case has been stayed with respect to six of the patents, which are currently under reexamination by the United States Patent Office. With respect to the suit and the three remaining patents, we continue to vigorously defend ourselves. The ultimate resolution of the second suit may have no relation to the resolution of the first suit and cannot be predicted; however, the ultimate result could have a material adverse effect on our financial position, results of operations and cash flows. | |
In 2010 we received a subpoena from the DOJ related to sales, marketing and regulatory matters related to the Stryker PainPump. We have received requests for certain documents in connection with this investigation. The investigation is ongoing and we are fully cooperating with the DOJ regarding this matter. | |
In 2007 the United States Department of Health and Human Services, Office of Inspector General (HHS) issued us a civil subpoena seeking to determine whether we violated various laws by paying consulting fees and providing other things of value to orthopedic surgeons and healthcare and educational institutions as inducements to use Stryker's orthopedic medical devices in procedures paid for in whole or in part by Medicare. We have produced numerous documents and other materials to HHS in response to the subpoena. |
Acquisitions
Acquisitions | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combinations [Abstract] | |||||
Acquisitions | ACQUISITIONS | ||||
On September 25, 2013, we announced a definitive agreement to acquire MAKO Surgical Corp. (MAKO) for $30.00 per share with an aggregate purchase price of approximately $1,650. The acquisition of MAKO, combined with our strong history in joint reconstruction, capital equipment (operating room integration and surgical navigation) and surgical instruments, will help further advance the growth of robotic assisted surgery. Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience. The transaction is subject to customary closing conditions. | |||||
On March 1, 2013, we acquired Trauson Holdings Company Limited (Trauson) in an all cash transaction totaling $751. The acquisition of Trauson will enhance our product offerings, primarily within our Reconstructive segment, broaden our presence in China and enable us to expand into the fast growing value segment of the emerging markets. The effect of the acquisition has been included in our Consolidated Financial Statements prospectively from the date of acquisition. Pro forma consolidated results of operations for the periods ended September 30, 2013 and December 31, 2012 would not differ significantly as a result of the acquisition. The purchase price allocation is based upon a preliminary valuation, and our estimates and assumptions are subject to change within the measurement period as the valuation is finalized. Management is currently in the process of verifying data and finalizing information related to the valuation and recording of identifiable intangible assets, deferred income taxes and the corresponding effect on the value of goodwill. In the period since acquisition, revisions to our estimates include an increase to customer relationship intangible assets of $47, an increase to liabilities of $14, and a reduction to goodwill of $29. | |||||
The preliminary allocation of the purchase price to the acquired net assets of Trauson is as follows: | |||||
Trauson | |||||
Total purchase consideration | $ | 751 | |||
Tangible assets acquired: | |||||
Inventory | 43 | ||||
Other assets | 169 | ||||
Liabilities | (87 | ) | |||
Identifiable intangible assets: | |||||
Customer relationship | 119 | ||||
Trade name | 18 | ||||
Developed technology | 32 | ||||
In-process research & development | 5 | ||||
Goodwill | 452 | ||||
$ | 751 | ||||
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facilities | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||
Long-Term Debt And Credit Facilities | LONG-TERM DEBT AND CREDIT FACILITIES | ||||||||
Our debt is summarized as follows: | 30-Sep | 31-Dec | |||||||
2013 | 2012 | ||||||||
3.00% senior unsecured notes, due January 15, 2015 | $ | 500 | $ | 500 | |||||
4.375% senior unsecured notes, due January 15, 2020 | 498 | 497 | |||||||
2.00% senior unsecured notes, due September 30, 2016 | 749 | 749 | |||||||
1.30% senior unsecured notes, due April 1, 2018 | 598 | — | |||||||
4.10% senior unsecured notes, due April 1, 2043 | 394 | — | |||||||
Other | 35 | 16 | |||||||
Total debt | 2,774 | 1,762 | |||||||
Less current maturities | (31 | ) | (16 | ) | |||||
Long-term debt | $ | 2,743 | $ | 1,746 | |||||
In March 2013 we completed a public offering of $600 in 1.30% Notes due April 1, 2018, net of an offering discount of $3 (2018 Notes), and $400 in 4.10% Notes due April 1, 2043, net of an offering discount of $6 (2043 Notes and, together with the 2018 Notes, the Notes). Interest on the Notes is payable on April 1 and October 1 of each year, commencing on October 1, 2013. Unless previously redeemed, the 2018 Notes will mature on April 1, 2018 and the 2043 Notes will mature on April 1, 2043. We intend to use the net proceeds from the Notes for working capital and other general corporate purposes, including acquisitions, stock repurchases and other business opportunities. | |||||||||
Certain of our credit facilities require us to comply with certain financial and other covenants. We were in compliance with all covenants at September 30, 2013. We have lines of credit, issued by various financial institutions, available to fund our day-to-day operating needs. At September 30, 2013, we had $1,092 of borrowing capacity available under all of our existing credit facilities. The weighted average interest rate, excluding required fees, for all borrowings was 2.9% at September 30, 2013. | |||||||||
At September 30, 2013, the total unamortized debt issuance costs incurred in connection with our outstanding notes were $17. The fair value of long-term debt (including current maturities) at September 30, 2013 and December 31, 2012 was $2,795 and $1,866, respectively, based on the quoted interest rates for similar types and amounts of borrowing agreements. |
Capital_Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2013 | |
Capital Stock Disclosures [Abstract] | |
Capital Stock | CAPITAL STOCK |
In December of 2012, 2011 and 2010, we announced that our Board of Directors had authorized us to purchase up to $405, $500 and $500, respectively, of our common stock (the 2012, 2011 and 2010 Repurchase Programs, respectively). The manner, timing and amount of purchases is determined by management based on an evaluation of market conditions, stock price and other factors and is subject to regulatory considerations. Purchases are to be made from time to time in the open market, in privately negotiated transactions or otherwise. | |
During the nine months ended September 30, 2013 we repurchased 1.4 million shares at a cost of $95 under the 2010 Repurchase Program and 2.5 million shares at a cost of $157 under the 2011 Repurchase Program. The repurchase activity was primarily attributable to our Accelerated Share Repurchase (ASR) program, which was completed in April of 2013. | |
As of September 30, 2013, the 2010 Repurchase Program was complete and the maximum dollar value of shares that may yet be purchased under the 2011 Repurchase Program was $343. We had not made any repurchases pursuant to the 2012 Repurchase Program at September 30, 2013. Shares repurchased under the share repurchase programs are available for general corporate purposes, including offsetting dilution associated with stock option and other equity-based employee benefit plans. At September 30, 2013, the maximum dollar value of shares that may be purchased under the authorized Repurchase Programs was $748. |
Restructuring_Charges
Restructuring Charges | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring Charges [Abstract] | |||||||||||||||||
Restructuring Charges | RESTRUCTURING CHARGES | ||||||||||||||||
In the nine months ended September 30, 2013, we recorded $17 in severance and related costs in connection with the continuation of a focused reduction of our global workforce and other restructuring activities expected to reduce our global workforce by approximately 5%. The targeted reductions and other restructuring activities were initiated to provide efficiencies and realign resources in advance of the new Medical Device Excise Tax, as well as to allow for continued investment in strategic areas and drive growth. In addition, in the nine months ended September 30, 2013 we recorded $21 in contractual and other obligations, as certain of our restructuring actions resulted in the exit of certain lease and other commitments. The restructuring charges that we recorded in 2012 and 2011 are described in Note 9 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. We expect that our current restructuring actions will be completed by the end of 2013, and the related cash payments will be substantially completed by the end of the first quarter of 2014. | |||||||||||||||||
Rollforward of restructuring liability balance and nine months of restructuring activity for 2013 is as follows: | |||||||||||||||||
Total | Agent Conversions | Severance and Related Costs | Contractual Obligations and Other | ||||||||||||||
January 1 Balance | $ | 40 | $ | 5 | $ | 20 | $ | 15 | |||||||||
Charges to earnings | 38 | — | 17 | 21 | |||||||||||||
Cash paid | (42 | ) | (3 | ) | (23 | ) | (16 | ) | |||||||||
Other adjustments | (1 | ) | — | (1 | ) | — | |||||||||||
September 30 Balance | $ | 35 | $ | 2 | $ | 13 | $ | 20 | |||||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
We segregate our operations into three reportable business segments: Reconstructive, MedSurg, and Neurotechnology and Spine. Our reportable segments are business units that offer different products and services and are managed separately because each business requires different manufacturing, technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies found in Note 1 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net sales and net earnings by business segment for the three- and nine- month periods ended September 30, 2013 and 2012 are as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconstructive | MedSurg | Neurotechnology and Spine | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 949 | $ | 891 | $ | 2,897 | $ | 2,776 | $ | 792 | $ | 781 | $ | 2,435 | $ | 2,388 | $ | 410 | $ | 380 | $ | 1,221 | $ | 1,155 | $ | 2,151 | $ | 2,052 | $ | 6,553 | $ | 6,319 | ||||||||||||||||||||||||
Segment net earnings | 231 | 215 | 696 | 631 | 135 | 148 | 434 | 420 | 68 | 65 | 194 | 183 | $ | 434 | $ | 428 | $ | 1,324 | $ | 1,234 | ||||||||||||||||||||||||||||||||||||
Less: other (net of income taxes) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (61 | ) | (58 | ) | (177 | ) | (110 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related charges | (9 | ) | (6 | ) | (41 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and related charges | (15 | ) | (11 | ) | (36 | ) | (35 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recall charges | (245 | ) | — | (397 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory matter charges | (1 | ) | — | (53 | ) | (33 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 103 | $ | 353 | $ | 620 | $ | 1,028 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other than assets associated with the acquisition of Trauson, which are discussed in greater detail in Note 6, there were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for the year ended December 31, 2012. |
Reclassification_Adjustments_O1
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | ||||||||||||||||||||||||||||||||
Foreign Currency Translation | Marketable Securities Unrealized Gain (Loss) | Defined Benefit Pension Plans | Total AOCI | |||||||||||||||||||||||||||||
Three Months | Nine Months | Three Months | Nine Months | Three Months | Nine Months | Three Months | Nine Months | |||||||||||||||||||||||||
Beginning balance | $ | 132 | $ | 226 | $ | (2 | ) | $ | 4 | $ | (99 | ) | $ | (101 | ) | $ | 31 | $ | 129 | |||||||||||||
Other Comprehensive Income (OCI) before reclassifications | 115 | 21 | 10 | 11 | (5 | ) | (5 | ) | 120 | 27 | ||||||||||||||||||||||
Amounts reclassified from AOCI | — | — | (7 | ) | (14 | ) | 2 | 4 | (5 | ) | (10 | ) | ||||||||||||||||||||
Net current-period OCI | 115 | 21 | 3 | (3 | ) | (3 | ) | (1 | ) | 115 | 17 | |||||||||||||||||||||
Balance at September 30, 2013 | $ | 247 | $ | 247 | $ | 1 | $ | 1 | $ | (102 | ) | $ | (102 | ) | $ | 146 | $ | 146 | ||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ||||||||||||||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||||||||||||||
Detail of AOCI Components | Amount Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Earnings | Amount Reclassified from AOCI | Affected Line Item in the Consolidated Statements of Earnings | ||||||||||||||||||||||||||||
Unrealized gains on available-for-sale marketable securities | $ | (6 | ) | Other (income) expense | $ | (15 | ) | Other (income) expense | ||||||||||||||||||||||||
(1 | ) | Income tax benefit | 1 | Income tax expense | ||||||||||||||||||||||||||||
$ | (7 | ) | Net of tax | $ | (14 | ) | Net of tax | |||||||||||||||||||||||||
Amortization of defined benefit pension items: | ||||||||||||||||||||||||||||||||
Actuarial losses | $ | 2 | Cost of sales | $ | 5 | Cost of sales | ||||||||||||||||||||||||||
— | Income tax benefit | (1 | ) | Income tax benefit | ||||||||||||||||||||||||||||
$ | 2 | Net of tax | $ | 4 | Net of tax | |||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||
Fair Value, Assets And Liabilities Measured On Recurring Basis | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
September | December | September | December | September | December | September | December | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,110 | $ | 1,395 | $ | 1,110 | $ | 1,395 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Available-for-sale marketable securities | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | 1,841 | 1,280 | — | — | 1,841 | 1,280 | — | — | |||||||||||||||||||||||||||
Foreign government debt securities | 890 | 848 | — | — | 890 | 848 | — | — | |||||||||||||||||||||||||||
United States agency debt securities | 519 | 288 | — | — | 519 | 288 | — | — | |||||||||||||||||||||||||||
United States treasury debt securities | 635 | 343 | — | — | 635 | 343 | — | — | |||||||||||||||||||||||||||
Certificates of deposit | 115 | 114 | — | — | 115 | 114 | — | — | |||||||||||||||||||||||||||
Other | 28 | 17 | — | — | 28 | 17 | — | — | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | 4,028 | 2,890 | — | — | 4,028 | 2,890 | — | — | |||||||||||||||||||||||||||
Trading marketable securities | 67 | 57 | 67 | 57 | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency exchange contracts | 2 | 3 | — | — | 2 | 3 | — | — | |||||||||||||||||||||||||||
$ | 5,207 | $ | 4,345 | $ | 1,177 | $ | 1,452 | $ | 4,030 | $ | 2,893 | $ | — | $ | — | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deferred compensation arrangements | $ | 67 | $ | 57 | $ | 67 | $ | 57 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Contingent consideration | 59 | 103 | — | — | — | — | 59 | 103 | |||||||||||||||||||||||||||
Foreign currency exchange contracts | 1 | 1 | — | — | 1 | 1 | — | — | |||||||||||||||||||||||||||
$ | 127 | $ | 161 | $ | 67 | $ | 57 | $ | 1 | $ | 1 | $ | 59 | $ | 103 | ||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||||||||||||||||||||||||||||||||||
Total | Corporate and Asset-Backed Debt Securities | Contingent Consideration | |||||||||||||||||||||||||||||||||
September | December | September | December | September | December | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | (103 | ) | $ | (114 | ) | $ | — | $ | 1 | $ | (103 | ) | $ | (115 | ) | |||||||||||||||||||
Transfers into Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Gains or (losses) included in earnings | 5 | 6 | — | — | 5 | 6 | |||||||||||||||||||||||||||||
Sales | — | (1 | ) | — | (1 | ) | — | — | |||||||||||||||||||||||||||
Settlements | 39 | 39 | — | — | 39 | 39 | |||||||||||||||||||||||||||||
Other | — | (33 | ) | — | — | — | (33 | ) | |||||||||||||||||||||||||||
Balance at the end of the period | $ | (59 | ) | $ | (103 | ) | $ | — | $ | — | $ | (59 | ) | $ | (103 | ) | |||||||||||||||||||
Fair Value Measurement Inputs | |||||||||||||||||||||||||||||||||||
Probability Range (Weighted Average) | |||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Minimum | Maximum | Weighted Average | ||||||||||||||||||||||||||||||
Contingent consideration | $59 | Discounted cash flow | Probability of occurrence | 85 | 100 | 95 | |||||||||||||||||||||||||||||
Summary Of Marketable Securities | |||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||||
September | December | September | December | September | December | September | December | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | $ | 1,840 | $ | 1,277 | $ | 2 | $ | 4 | $ | (1 | ) | $ | (1 | ) | $ | 1,841 | $ | 1,280 | |||||||||||||||||
Foreign government debt securities | 890 | 846 | 1 | 2 | (1 | ) | — | 890 | 848 | ||||||||||||||||||||||||||
United States agency debt securities | 519 | 288 | — | — | — | — | 519 | 288 | |||||||||||||||||||||||||||
United States treasury debt securities | 635 | 343 | — | — | — | — | 635 | 343 | |||||||||||||||||||||||||||
Certificates of deposit | 115 | 114 | — | — | — | — | 115 | 114 | |||||||||||||||||||||||||||
Other | 28 | 17 | — | — | — | — | 28 | 17 | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 4,027 | $ | 2,885 | $ | 3 | $ | 6 | $ | (2 | ) | $ | (1 | ) | 4,028 | 2,890 | |||||||||||||||||||
Trading marketable securities | 67 | 57 | |||||||||||||||||||||||||||||||||
Total marketable securities | $ | 4,095 | $ | 2,947 | |||||||||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||||||||||||
Current assets-marketable securities | $ | 4,028 | $ | 2,890 | |||||||||||||||||||||||||||||||
Noncurrent assets-other | 67 | 57 | |||||||||||||||||||||||||||||||||
$ | 4,095 | $ | 2,947 | ||||||||||||||||||||||||||||||||
Investments Classified By Contractual Maturity Date | |||||||||||||||||||||||||||||||||||
Cost | Estimated | ||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 816 | $ | 816 | |||||||||||||||||||||||||||||||
Due after one year through three years | 2,864 | 2,865 | |||||||||||||||||||||||||||||||||
Due after three years | 347 | 347 | |||||||||||||||||||||||||||||||||
$ | 4,027 | $ | 4,028 | ||||||||||||||||||||||||||||||||
Investments In A Continuous Unrealized Loss Position | |||||||||||||||||||||||||||||||||||
Corporate and Asset-Backed Debt Securities | Foreign Government Debt Securities | United States Agency Debt Securities | Other | Total | |||||||||||||||||||||||||||||||
Less Than 12 Months | Total | Less Than 12 Months | Total | Less Than 12 Months | Total | Less Than 12 Months | Total | Less Than 12 Months | Total | ||||||||||||||||||||||||||
Number of investments | 333 | 333 | 104 | 104 | 54 | 54 | 14 | 14 | 505 | 505 | |||||||||||||||||||||||||
Fair value | $ | 722 | $ | 722 | $ | 593 | $ | 593 | $ | 277 | $ | 277 | $ | 17 | $ | 17 | $ | 1,609 | $ | 1,609 | |||||||||||||||
Unrealized losses | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | (2 | ) | $ | (2 | ) | |||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Strategies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||
Schedule of Currency Exchange Contracts [Table Text Block] | |||||||||
Notional Amount | Assets | Liabilities | Maximum Term (Days) | ||||||
Forward currency exchange contracts | $1,426 | $2 | $1 | 92 |
Acquisitions_Acquisitions_Tabl
Acquisitions Acquisitions (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combinations [Abstract] | |||||
Schedule of Purchase Price Allocation [Table Text Block] | |||||
Trauson | |||||
Total purchase consideration | $ | 751 | |||
Tangible assets acquired: | |||||
Inventory | 43 | ||||
Other assets | 169 | ||||
Liabilities | (87 | ) | |||
Identifiable intangible assets: | |||||
Customer relationship | 119 | ||||
Trade name | 18 | ||||
Developed technology | 32 | ||||
In-process research & development | 5 | ||||
Goodwill | 452 | ||||
$ | 751 | ||||
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facilities (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Long-term Debt, Unclassified [Abstract] | |||||||||
Maturities Of Long-Term Debt Disclosures | |||||||||
Our debt is summarized as follows: | 30-Sep | 31-Dec | |||||||
2013 | 2012 | ||||||||
3.00% senior unsecured notes, due January 15, 2015 | $ | 500 | $ | 500 | |||||
4.375% senior unsecured notes, due January 15, 2020 | 498 | 497 | |||||||
2.00% senior unsecured notes, due September 30, 2016 | 749 | 749 | |||||||
1.30% senior unsecured notes, due April 1, 2018 | 598 | — | |||||||
4.10% senior unsecured notes, due April 1, 2043 | 394 | — | |||||||
Other | 35 | 16 | |||||||
Total debt | 2,774 | 1,762 | |||||||
Less current maturities | (31 | ) | (16 | ) | |||||
Long-term debt | $ | 2,743 | $ | 1,746 | |||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring Charges [Abstract] | |||||||||||||||||
Restructuring Charges | |||||||||||||||||
Total | Agent Conversions | Severance and Related Costs | Contractual Obligations and Other | ||||||||||||||
January 1 Balance | $ | 40 | $ | 5 | $ | 20 | $ | 15 | |||||||||
Charges to earnings | 38 | — | 17 | 21 | |||||||||||||
Cash paid | (42 | ) | (3 | ) | (23 | ) | (16 | ) | |||||||||
Other adjustments | (1 | ) | — | (1 | ) | — | |||||||||||
September 30 Balance | $ | 35 | $ | 2 | $ | 13 | $ | 20 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Other Financial Information by Business Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconstructive | MedSurg | Neurotechnology and Spine | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 949 | $ | 891 | $ | 2,897 | $ | 2,776 | $ | 792 | $ | 781 | $ | 2,435 | $ | 2,388 | $ | 410 | $ | 380 | $ | 1,221 | $ | 1,155 | $ | 2,151 | $ | 2,052 | $ | 6,553 | $ | 6,319 | ||||||||||||||||||||||||
Segment net earnings | 231 | 215 | 696 | 631 | 135 | 148 | 434 | 420 | 68 | 65 | 194 | 183 | $ | 434 | $ | 428 | $ | 1,324 | $ | 1,234 | ||||||||||||||||||||||||||||||||||||
Less: other (net of income taxes) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (61 | ) | (58 | ) | (177 | ) | (110 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition and integration related charges | (9 | ) | (6 | ) | (41 | ) | (28 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and related charges | (15 | ) | (11 | ) | (36 | ) | (35 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||
Recall charges | (245 | ) | — | (397 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory matter charges | (1 | ) | — | (53 | ) | (33 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 103 | $ | 353 | $ | 620 | $ | 1,028 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification_Adjustments_O2
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) Changes in AOCI balances net of tax (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Beginning balance | $31 | $129 | ||
Other Comprehensive Income (OCI) before reclassifications | 120 | 27 | ||
Amounts reclassified from AOCI | -5 | -10 | ||
Total other comprehensive income (loss) | 115 | 138 | 17 | -66 |
Balance at September 30, 2013 | 146 | 146 | ||
Foreign Currency Translation | ||||
Beginning balance | 132 | 226 | ||
Other Comprehensive Income (OCI) before reclassifications | 115 | 21 | ||
Total other comprehensive income (loss) | 115 | 21 | ||
Balance at September 30, 2013 | 247 | 247 | ||
Marketable Securities Unrealized Gain (Loss) | ||||
Beginning balance | -2 | 4 | ||
Other Comprehensive Income (OCI) before reclassifications | 10 | 11 | ||
Amounts reclassified from AOCI | -7 | -14 | ||
Total other comprehensive income (loss) | 3 | -3 | ||
Balance at September 30, 2013 | 1 | 1 | ||
Defined Benefit Pension Plans | ||||
Beginning balance | -99 | -101 | ||
Other Comprehensive Income (OCI) before reclassifications | -5 | -5 | ||
Amounts reclassified from AOCI | 2 | 4 | ||
Total other comprehensive income (loss) | -3 | -1 | ||
Balance at September 30, 2013 | ($102) | ($102) |
Reclassification_Adjustments_O3
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income taxes | $34 | $91 | $161 | $319 |
Net earnings | 103 | 353 | 620 | 1,028 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Marketable Securities Unrealized Gain (Loss) | ||||
Income (Loss) from Continuing Operations Attributable to Parent | -6 | -15 | ||
Income taxes | -1 | 1 | ||
Net earnings | -7 | -14 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Plans | ||||
Income taxes | 0 | -1 | ||
Net earnings | 2 | 4 | ||
Reclassification, Pension and Other Postretirement Benefit Plans, Net Gain (Loss) Recognized in Net Periodic Benefit Cost, before Tax | $2 | $5 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest and marketable securities income | $7 | $12 | $18 | $37 |
Standard & Poor's, A Rating [Member] | Corporate and asset-backed debt securities | ||||
Percentage Of Company's Investments With Credit Quality Rating Less Than Single A And A2 | 1.00% | |||
Fitch, A Rating [Member] | Corporate and asset-backed debt securities | ||||
Percentage Of Company's Investments With Credit Quality Rating Less Than Single A And A2 | 1.00% | |||
Moody's, A2 Rating [Member] | Corporate and asset-backed debt securities | ||||
Percentage Of Company's Investments With Credit Quality Rating Less Than Single A And A2 | 1.00% |
Fair_Value_Measurements_Valuat
Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $1,110 | $1,395 |
Foreign currency exchange contracts | 2 | 3 |
Total | 5,207 | 4,345 |
Liabilities: | ||
Deferred compensation arrangements | 67 | 57 |
Contingent consideration | 59 | 103 |
Foreign currency exchange contracts | 1 | 1 |
Total | 127 | 161 |
Available-for-sale marketable securities | ||
Assets: | ||
Marketable securities | 4,028 | 2,890 |
Available-for-sale marketable securities | Corporate and asset-backed debt securities | ||
Assets: | ||
Marketable securities | 1,841 | 1,280 |
Available-for-sale marketable securities | Foreign government debt securities | ||
Assets: | ||
Marketable securities | 890 | 848 |
Available-for-sale marketable securities | United States agency debt securities | ||
Assets: | ||
Marketable securities | 519 | 288 |
Available-for-sale marketable securities | United States treasury debt securities | ||
Assets: | ||
Marketable securities | 635 | 343 |
Available-for-sale marketable securities | Certificates of deposit | ||
Assets: | ||
Marketable securities | 115 | 114 |
Available-for-sale marketable securities | Other | ||
Assets: | ||
Marketable securities | 28 | 17 |
Trading marketable securities | ||
Assets: | ||
Marketable securities | 67 | 57 |
Level 1 | ||
Assets: | ||
Cash and cash equivalents | 1,110 | 1,395 |
Total | 1,177 | 1,452 |
Liabilities: | ||
Deferred compensation arrangements | 67 | 57 |
Total | 67 | 57 |
Level 1 | Trading marketable securities | ||
Assets: | ||
Marketable securities | 67 | 57 |
Level 2 | ||
Assets: | ||
Foreign currency exchange contracts | 2 | 3 |
Total | 4,030 | 2,893 |
Liabilities: | ||
Foreign currency exchange contracts | 1 | 1 |
Total | 1 | 1 |
Level 2 | Available-for-sale marketable securities | ||
Assets: | ||
Marketable securities | 4,028 | 2,890 |
Level 2 | Available-for-sale marketable securities | Corporate and asset-backed debt securities | ||
Assets: | ||
Marketable securities | 1,841 | 1,280 |
Level 2 | Available-for-sale marketable securities | Foreign government debt securities | ||
Assets: | ||
Marketable securities | 890 | 848 |
Level 2 | Available-for-sale marketable securities | United States agency debt securities | ||
Assets: | ||
Marketable securities | 519 | 288 |
Level 2 | Available-for-sale marketable securities | United States treasury debt securities | ||
Assets: | ||
Marketable securities | 635 | 343 |
Level 2 | Available-for-sale marketable securities | Certificates of deposit | ||
Assets: | ||
Marketable securities | 115 | 114 |
Level 2 | Available-for-sale marketable securities | Other | ||
Assets: | ||
Marketable securities | 28 | 17 |
Level 3 | ||
Liabilities: | ||
Contingent consideration | 59 | 103 |
Total | $59 | $103 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets and Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs (Level 3)) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Balance at the beginning of the period | ($103) | ($114) |
Transfers into Level 3 | ||
Transfers out of Level 3 | ||
Gains or (losses) included in earnings | 5 | 6 |
Sales | -1 | |
Settlements | 39 | 39 |
Other | -33 | |
Balance at the end of the period | -59 | -103 |
Contingent Consideration | ||
Balance at the beginning of the period | -103 | -115 |
Transfers into Level 3 | ||
Transfers out of Level 3 | ||
Gains or (losses) included in earnings | 5 | 6 |
Sales | ||
Settlements | 39 | 39 |
Other | -33 | |
Balance at the end of the period | -59 | -103 |
Corporate and Asset-Backed Debt Securities | ||
Balance at the beginning of the period | 1 | |
Transfers into Level 3 | ||
Transfers out of Level 3 | ||
Sales | -1 | |
Settlements | ||
Balance at the end of the period |
Fair_Value_Measurements_Contin
Fair Value Measurements (Contingent Consideration) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Fair Value | $59 |
Valuation Technique | Discounted cash flow |
Unobservable Input | Probability of occurrence |
Minimum | |
Probability of Occurence | 85.00% |
Maximum | |
Probability of Occurence | 100.00% |
Weighted Average | |
Probability of Occurence | 95.00% |
Fair_Value_Measurements_Market
Fair Value Measurements (Marketable Securities) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Estimated Fair Value | $4,095 | $2,947 |
Available-for-sale marketable securities | ||
Amortized Cost | 4,027 | 2,885 |
Gross Unrealized Gains | 3 | 6 |
Gross Unrealized Losses | -2 | -1 |
Estimated Fair Value | 4,028 | 2,890 |
Trading marketable securities | ||
Estimated Fair Value | 67 | 57 |
Available-for-sale marketable securities | ||
Estimated Fair Value | 4,028 | 2,890 |
Noncurrent assets-other | ||
Estimated Fair Value | 67 | 57 |
Corporate and asset-backed debt securities | Available-for-sale marketable securities | ||
Amortized Cost | 1,840 | 1,277 |
Gross Unrealized Gains | 2 | 4 |
Gross Unrealized Losses | -1 | -1 |
Estimated Fair Value | 1,841 | 1,280 |
Foreign government debt securities | Available-for-sale marketable securities | ||
Amortized Cost | 890 | 846 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | -1 | |
Estimated Fair Value | 890 | 848 |
United States agency debt securities | Available-for-sale marketable securities | ||
Amortized Cost | 519 | 288 |
Estimated Fair Value | 519 | 288 |
United States treasury debt securities | Available-for-sale marketable securities | ||
Amortized Cost | 635 | 343 |
Estimated Fair Value | 635 | 343 |
Certificates of deposit | Available-for-sale marketable securities | ||
Amortized Cost | 115 | 114 |
Estimated Fair Value | 115 | 114 |
Other | Available-for-sale marketable securities | ||
Amortized Cost | 28 | 17 |
Estimated Fair Value | $28 | $17 |
Fair_Value_Measurements_Net_Ca
Fair Value Measurements (Net Carrying Value And Estimated Fair Value Of Available-For-Sale Marketable Securities) (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Due in one year or less, Cost | $816 |
Due in one year or less, Estimated Fair Value | 816 |
Due after one year through three years, Cost | 2,864 |
Due after one year through three years, Estimated Fair Value | 2,865 |
Due after three years, Cost | 347 |
Due after three years, Estimated Fair Value | 347 |
Fair value of available-for-sale marketable securities, Cost | 4,027 |
Fair value of available-for-sale marketable securities, Estimated Fair Value | $4,028 |
Fair_Value_Measurements_Unreal
Fair Value Measurements (Unrealized Losses And Fair Value Of Investments With Unrealized Losses) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Less Than 12 Months - Number of Investments | 505 |
Less Than 12 Months - Fair Value | $1,609 |
Less Than 12 Months - Unrealized Losses | -2 |
Total - Number of Investments | 505 |
Total - Fair Value | 1,609 |
Total - Unrealized Losses | -2 |
Corporate and asset-backed debt securities | |
Less Than 12 Months - Number of Investments | 333 |
Less Than 12 Months - Fair Value | 722 |
Less Than 12 Months - Unrealized Losses | -1 |
Total - Number of Investments | 333 |
Total - Fair Value | 722 |
Total - Unrealized Losses | -1 |
Foreign government debt securities | |
Less Than 12 Months - Number of Investments | 104 |
Less Than 12 Months - Fair Value | 593 |
Less Than 12 Months - Unrealized Losses | -1 |
Total - Number of Investments | 104 |
Total - Fair Value | 593 |
Total - Unrealized Losses | -1 |
United States agency debt securities | |
Less Than 12 Months - Number of Investments | 54 |
Less Than 12 Months - Fair Value | 277 |
Total - Number of Investments | 54 |
Total - Fair Value | 277 |
Other | |
Less Than 12 Months - Number of Investments | 14 |
Less Than 12 Months - Fair Value | 17 |
Total - Number of Investments | 14 |
Total - Fair Value | $17 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Strategies (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign currency transaction losses | $0 | $2 | $3 | $4 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Strategies (Forward Currency Exchange Contracts) (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Assets | $2 |
Liabilities | 1 |
Maximum Term (Days) | 92 days |
Foreign Exchange Contract [Member] | |
Notional Amount | $1,426 |
Contingencies_Narrative_Detail
Contingencies (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Rejuvenate and ABG II Voluntary Recall [Member] | Motorized Wheel, Hospital Beds and Stetchers [Member] | Electrical Network Communications, Hospital Beds [Member] | Patents Under Reexamination [Member] | Number of Remaining Patents [Member] | Minimum | Maximum | Zimmer Product Infringement [Member] | ||
patent | patent | patent | patent | Rejuvenate and ABG II Voluntary Recall [Member] | Rejuvenate and ABG II Voluntary Recall [Member] | ||||
Loss Contingency Accrual, at Carrying Value | $93 | ||||||||
Loss Contingency Accrual, Carrying Value, Provision | 58 | ||||||||
Loss Contingency, Estimate of Possible Loss | 700 | 1,130 | |||||||
Loss Contingency, Damages Awarded, Value | $228.00 | ||||||||
Estimated Litigation Liability | 510 | ||||||||
Loss Contingency, Number of Patents | 10 | 9 | 6 | 3 | |||||
Loss Contingency, Damages Paid, Value | $3.75 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 9 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
MAKO Acquisition [Member] | |
Business Acquisition, Share Price | $30 |
Total purchase consideration | $1,650 |
Trauson | |
Total purchase consideration | 751 |
Liabilities, Purchase Accounting Adjustments | 14 |
Goodwill, Purchase Accounting Adjustments | -29 |
Customer relationship | Trauson | |
FInite-Lived Intangible Assets, Purchase Accounting Adjustments | $47 |
Acquisitions_Acquisitions_Allo
Acquisitions Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of The Trauson Acquisition (Details) (Trauson, USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Total purchase consideration | $751 |
Inventory | 43 |
Other assets | 169 |
Liabilities | -87 |
Goodwill | 452 |
Customer relationship | |
Identifiable intangible assets: | 119 |
Trade name | |
Identifiable intangible assets: | 18 |
Developed technology | |
Identifiable intangible assets: | 32 |
In-process research & development | |
Identifiable intangible assets: | $5 |
LongTerm_Debt_and_Credit_Facil2
Long-Term Debt and Credit Facilities (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, unless otherwise specified | 1.30% senior unsecured notes, due April 1, 2018 | 4.10% senior unsecured notes, due April 1, 2043 | ||
Credit facility | $600 | $400 | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | 4.10% | ||
Debt Instrument, Unamortized Discount | 3 | 6 | ||
Line of Credit Facility, Remaining Borrowing Capacity | 1,092 | |||
Long-term debt, weighted-average interest rate | 2.90% | |||
Unamortized Debt Issuance Expense | 17 | |||
Debt Instrument, Fair Value Disclosure | $2,795 | $1,866 |
LongTerm_Debt_and_Credit_Facil3
Long-Term Debt and Credit Facilities (Maturities Of Long-Term Debt Disclosures) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other | $35 | $16 |
Total debt | 2,774 | 1,762 |
Less current maturities | -31 | -16 |
Long-term debt | 2,743 | 1,746 |
3.00% senior unsecured notes, due January 15, 2015 | ||
Senior unsecured notes repayable in year three | 500 | 500 |
4.375% senior unsecured notes, due January 15, 2020 | ||
Senior unsecured notes repayable after year five | 498 | 497 |
Senior Unsecured Notes 2.00% due 2016 [Member] | ||
Senior unsecured notes repayable in year four | 749 | 749 |
1.30% senior unsecured notes, due April 1, 2018 | ||
Senior unsecured notes repayable after year five | 598 | |
4.10% senior unsecured notes, due April 1, 2043 | ||
Senior unsecured notes repayable after year five | $394 |
LongTerm_Debt_and_Credit_Facil4
Long-Term Debt and Credit Facilities Long-Term Debt and Credit Facilities (Parentheticals) (Details) | Sep. 30, 2013 |
3.00% senior unsecured notes, due January 15, 2015 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% |
4.375% senior unsecured notes, due January 15, 2020 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.38% |
2.00% senior unsecured notes, due September 30, 2016 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% |
1.30% senior unsecured notes, due April 1, 2018 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.30% |
4.10% senior unsecured notes, due April 1, 2043 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.10% |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2010 |
2012 $405.0 Million Repurchase Agreement [Member] | 2011 $500.0 Million Repurchase Agreement [Member] | 2011 $500.0 Million Repurchase Agreement [Member] | 2010 $500.0 Million Repurchase Agreement [Member] | 2010 $500.0 Million Repurchase Agreement [Member] | ||
Stock Repurchase Program, Authorized Amount | $405 | $500 | $500 | |||
Stock Repurchased and Retired During Period, Shares | 3.9 | 2.5 | 1.4 | |||
Stock Repurchased and Retired During Period, Value | 252 | 157 | 95 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $748 | $343 |
Restructuring_Charges_Narrativ
Restructuring Charges (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring charges | $14 | $12 | $38 | $45 |
Restructuring and Related Cost, Expected Number of Positions Eliminated as a Percent of Total Workforce | 5.00% | |||
Severance and Related Costs | ||||
Restructuring charges | 17 | |||
Contractual Obligations and Other | ||||
Restructuring charges | $21 |
Company_Recorded_Restructuring
Company Recorded Restructuring Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
January 1 Balance | $40 | |||
Charges to earnings | 14 | 12 | 38 | 45 |
Cash paid | -42 | |||
Other adjustments | -1 | |||
September 30 Balance | 35 | 35 | ||
Agent Conversions | ||||
January 1 Balance | 5 | |||
Cash paid | -3 | |||
September 30 Balance | 2 | 2 | ||
Severance and Related Costs | ||||
January 1 Balance | 20 | |||
Charges to earnings | 17 | |||
Cash paid | -23 | |||
Other adjustments | -1 | |||
September 30 Balance | 13 | 13 | ||
Contractual Obligations and Other | ||||
January 1 Balance | 15 | |||
Charges to earnings | 21 | |||
Cash paid | -16 | |||
Other adjustments | ||||
September 30 Balance | $20 | $20 |
Segment_Information_Sales_And_
Segment Information (Sales And Other Financial Information By Business Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net sales | $2,151 | $2,052 | $6,553 | $6,319 |
Segment net earnings | 150 | 450 | 826 | 1,371 |
Acquisition and integration related charges | -9 | -6 | -41 | -28 |
Restructuring and related charges | -15 | -11 | -36 | -35 |
Recall charges | -245 | -397 | ||
Regulatory matter charges | -1 | -53 | -33 | |
Net earnings | 103 | 353 | 620 | 1,028 |
Reconstructive | ||||
Net sales | 949 | 891 | 2,897 | 2,776 |
Segment net earnings | 231 | 215 | 696 | 631 |
MedSurg | ||||
Net sales | 792 | 781 | 2,435 | 2,388 |
Segment net earnings | 135 | 148 | 434 | 420 |
Neurotechnology and Spine | ||||
Net sales | 410 | 380 | 1,221 | 1,155 |
Segment net earnings | 68 | 65 | 194 | 183 |
Other | ||||
Segment net earnings | -61 | -58 | -177 | -110 |
Total | ||||
Segment net earnings | $434 | $428 | $1,324 | $1,234 |