Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
Trading Symbol | 'SYK |
Entity Registrant Name | 'STRYKER CORP |
Entity Central Index Key | '0000310764 |
Current Fiscal Year End Date | '--12-31 |
Entity Filer Category | 'Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 379,093,934 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $2,305 | $2,190 |
Cost of sales | 769 | 713 |
Gross profit | 1,536 | 1,477 |
Research, development and engineering expenses | 150 | 129 |
Selling, general and administrative expenses | 1,205 | 916 |
Intangible asset amortization | 45 | 32 |
Restructuring charges | 5 | 14 |
Total operating expenses | 1,405 | 1,091 |
Operating income | 131 | 386 |
Other income (expense), net | -24 | -11 |
Earnings before income taxes | 107 | 375 |
Income taxes | 37 | 71 |
Net earnings | $70 | $304 |
Net earnings per share of common stock: | ' | ' |
Basic net earnings per share of common stock | $0.19 | $0.80 |
Diluted net earnings per share of common stock | $0.18 | $0.79 |
Weighted-average shares outstanding—in millions: | ' | ' |
Basic | 378.2 | 379.7 |
Net effect of dilutive employee stock options | 4.4 | 3.3 |
Diluted | 382.6 | 383 |
Anti-dilutive shares excluded from the calculation of net effect of dilutive employee stock options | 2.5 | 5.1 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net earnings | $70 | $304 |
Unrealized gains (losses) on securities, net of tax (expense) benefit of $(0) and $0, respectively | 3 | -1 |
Unfunded pension (losses) gains, net of tax benefit (expense) of $0 and ($1) respectively | -1 | 3 |
Unrealized losses on the effective portion of designated hedges, net of tax benefit of $2 | -3 | 0 |
Foreign currency translation adjustments | 37 | -114 |
Total other comprehensive income (loss) | 36 | -112 |
Comprehensive income | $106 | $192 |
Consolidated_Statement_of_Comp1
Consolidated Statement of Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Unrealized gains (losses) on securities, income tax (expense) benefit | $0 | $0 |
Unfunded pension (losses) gains, income tax (expense) benefit | 0 | -1 |
Unrealized gains on the effective portion of designated hedges | $2 | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $1,381 | $1,339 |
Marketable securities | 2,666 | 2,641 |
Accounts receivable, less allowance of $68 ($72 in 2013) | 1,430 | 1,518 |
Inventories | ' | ' |
Materials and supplies | 231 | 227 |
Work in process | 96 | 85 |
Finished goods | 1,171 | 1,110 |
Total inventories | 1,498 | 1,422 |
Deferred income taxes | 918 | 880 |
Prepaid expenses and other current assets | 553 | 535 |
Total current assets | 8,446 | 8,335 |
Property, plant and equipment | ' | ' |
Land, buildings and improvements | 692 | 686 |
Machinery and equipment | 1,892 | 1,811 |
Total property, plant and equipment | 2,584 | 2,497 |
Less allowance for depreciation | 1,467 | 1,416 |
Net property, plant and equipment | 1,117 | 1,081 |
Other assets | ' | ' |
Goodwill | 3,997 | 3,844 |
Other intangibles, net | 2,085 | 1,989 |
Other | 514 | 494 |
Total assets | 16,159 | 15,743 |
Current liabilities | ' | ' |
Accounts payable | 350 | 314 |
Accrued compensation | 333 | 535 |
Income taxes | 118 | 131 |
Dividend payable | 116 | 115 |
Accrued expenses and other liabilities | 1,821 | 1,537 |
Current maturities of debt | 820 | 25 |
Total current liabilities | 3,558 | 2,657 |
Long-term debt, excluding current maturities | 2,244 | 2,739 |
Other liabilities | 1,294 | 1,300 |
Shareholders' equity | ' | ' |
Common stock, $0.10 par value: | 38 | 38 |
Additional paid-in capital | 1,186 | 1,160 |
Retained earnings | 7,571 | 7,617 |
Accumulated other comprehensive income | 268 | 232 |
Total shareholders' equity | 9,063 | 9,047 |
Total liabilities & shareholders' equity | $16,159 | $15,743 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $68 | $72 |
Common stock, par value | $0.10 | $0.10 |
Common stock, authorized | 1,000 | 1,000 |
Common stock, outstanding | 378 | 378 |
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 December 31, 2013 at Dec. 31, 2013 | $9,047 | $38 | $1,160 | $7,617 | $232 |
Net earnings | 70 | ' | ' | 70 | ' |
Other comprehensive income | 36 | ' | ' | ' | 36 |
Issuance of 1.4 million shares of common stock under stock option and benefit plans, including $2 excess income tax benefit | 5 | ' | 5 | ' | ' |
Share-based compensation | 21 | ' | 21 | ' | ' |
Cash dividends declared of $0.305 per share of common stock | -116 | ' | ' | -116 | ' |
Balances at March 31, 2014 at Mar. 31, 2014 | $9,063 | $38 | $1,186 | $7,571 | $268 |
Consolidated_Statement_Of_Shar1
Consolidated Statement Of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 |
Issuance of common stock under stock option and benefit plans, shares | 1.4 | 5.9 |
Issuance of common stock under stock option and benefit plans, excess income tax benefit | $2 | $5 |
Repurchase and retirement of common stock, shares | 0 | 0 |
Cash dividends declared, per share of common stock | $0.31 | $0.27 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities | ' | ' |
Net earnings | $70 | $304 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Depreciation | 46 | 38 |
Intangible asset amortization | 45 | 32 |
Share-based compensation | 21 | 20 |
Restructuring charges | 5 | 14 |
Sale of inventory stepped up to fair value at acquisition | 5 | ' |
Changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | 93 | 7 |
Inventories | -61 | -38 |
Accounts payable | 30 | -9 |
Accrued expenses and other liabilities | 89 | -112 |
Income taxes | -56 | -9 |
Other | -81 | -11 |
Net cash provided by operating activities | 206 | 236 |
Investing activities | ' | ' |
Acquisitions, net of cash acquired | -272 | -600 |
Purchases of marketable securities | -1,017 | -773 |
Proceeds from sales of marketable securities | 1,008 | 1,062 |
Purchases of property, plant and equipment | -70 | -49 |
Net cash used in investing activities | -351 | -360 |
Financing activities | ' | ' |
Proceeds from borrowings | 344 | 1,060 |
Payments on borrowings | -55 | -51 |
Dividends paid | -115 | -101 |
Repurchase and retirement of common stock | ' | -250 |
Other | 12 | -7 |
Net cash provided by financing activities | 186 | 651 |
Effect of exchange rate changes on cash and cash equivalents | 1 | -9 |
Change in cash and cash equivalents | $42 | $518 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis Of Presentation | ' |
BASIS OF PRESENTATION | |
General Information | |
These statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2013. Management believes that the accompanying unaudited Consolidated Financial Statements include all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. The results of operations for the three-month period ended March 31, 2014 are not necessarily indicative of annual results. | |
Certain prior year amounts in our Segment Information in Note 11 have been reclassified to conform with the presentation used in 2014. |
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event Narrative (Notes) | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Event [Line Items] | ' |
Subsequent Events [Text Block] | ' |
SUBSEQUENT EVENT | |
As further described in Note 7, on April 15, 2014 we completed the acquisition of Berchtold Holding, AG, a privately-held provider of surgical infrastructure equipment with operating facilities in Germany and the United States, for an aggregate purchase price of approximately $172. |
Reclassification_Adjustments_O
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) (Notes) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
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-month periods ended March 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||||||||||||||
Marketable Securities Unrealized Gain (Loss) | Defined Benefit Pension Plans | Unrecognized Gain (Loss) on Hedge | Foreign Currency Translation | Total AOCI | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | 4 | $ | (81 | ) | $ | (101 | ) | $ | 7 | $ | — | $ | 306 | $ | 226 | $ | 232 | $ | 129 | ||||||||||||||||||
Other comprehensive income (OCI) | 5 | 2 | (3 | ) | 1 | (2 | ) | — | 37 | (114 | ) | 37 | (111 | ) | ||||||||||||||||||||||||||
Reclassifications out of AOCI | (2 | ) | (3 | ) | 2 | 2 | (1 | ) | — | — | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Net current-period OCI | 3 | (1 | ) | (1 | ) | 3 | (3 | ) | — | 37 | (114 | ) | 36 | (112 | ) | |||||||||||||||||||||||||
Balance at March 31 | $ | 3 | $ | 3 | $ | (82 | ) | $ | (98 | ) | $ | 4 | $ | — | $ | 343 | $ | 112 | $ | 268 | $ | 17 | ||||||||||||||||||
The following items were reclassified out of AOCI into earnings for the three-month periods ended March 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Detail of AOCI Components | Amount Reclassified | Reclassified To | Amount Reclassified | Reclassified To | ||||||||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale marketable securities | $ | (2 | ) | Other (income) expense | $ | (5 | ) | Other (income) expense | ||||||||||||||||||||||||||||||||
— | Income tax expense | 2 | Income tax expense | |||||||||||||||||||||||||||||||||||||
$ | (2 | ) | Net of tax | $ | (3 | ) | Net of tax | |||||||||||||||||||||||||||||||||
Amortization of defined benefit pension plan actuarial losses | $ | 2 | Cost of sales | $ | 2 | Cost of sales | ||||||||||||||||||||||||||||||||||
— | Income tax benefit | — | Income tax benefit | |||||||||||||||||||||||||||||||||||||
$ | 2 | Net of tax | $ | 2 | Net of tax | |||||||||||||||||||||||||||||||||||
Unrealized losses on designated hedges | $ | (2 | ) | Cost of sales | $ | — | Cost of sales | |||||||||||||||||||||||||||||||||
— | Other (income) expense | — | Other (income) expense | |||||||||||||||||||||||||||||||||||||
1 | Income tax expense | — | Income tax expense | |||||||||||||||||||||||||||||||||||||
$ | (1 | ) | Net of tax | $ | — | Net of tax | ||||||||||||||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||||||||
Our valuation of our assets and liabilities measured at fair value is: | |||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
March | 31-Dec | March | 31-Dec | March | 31-Dec | March | 31-Dec | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,381 | $ | 1,339 | $ | 1,381 | $ | 1,339 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Available-for-sale marketable securities | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | 1,172 | 1,177 | — | — | 1,172 | 1,177 | — | — | |||||||||||||||||||||||||||
Foreign government debt securities | 828 | 845 | — | — | 828 | 845 | — | — | |||||||||||||||||||||||||||
United States agency debt securities | 124 | 211 | — | — | 124 | 211 | — | — | |||||||||||||||||||||||||||
United States treasury debt securities | 487 | 350 | — | — | 487 | 350 | — | — | |||||||||||||||||||||||||||
Certificates of deposit | 51 | 53 | — | — | 51 | 53 | — | — | |||||||||||||||||||||||||||
Other | 4 | 5 | — | — | 4 | 5 | — | — | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | 2,666 | 2,641 | — | — | 2,666 | 2,641 | — | — | |||||||||||||||||||||||||||
Trading marketable securities | 74 | 72 | 74 | 72 | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency exchange forward contracts | 17 | 25 | — | — | 17 | 25 | — | — | |||||||||||||||||||||||||||
$ | 4,138 | $ | 4,077 | $ | 1,455 | $ | 1,411 | $ | 2,683 | $ | 2,666 | $ | — | $ | — | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deferred compensation arrangements | $ | 74 | $ | 72 | $ | 74 | $ | 72 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Contingent consideration | 47 | 59 | — | — | — | — | 47 | 59 | |||||||||||||||||||||||||||
Foreign currency exchange forward contracts | 6 | 2 | — | — | 6 | 2 | — | — | |||||||||||||||||||||||||||
$ | 127 | $ | 133 | $ | 74 | $ | 72 | $ | 6 | $ | 2 | $ | 47 | $ | 59 | ||||||||||||||||||||
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 taking into account our credit risk and that of our counterparties. The fair value of our Level 3 liabilities represent milestone payments for acquisitions and is calculated as the net present value of expected cash flows (using a discounted cash flow technique) based on externally provided or obtained inputs, including our probability assessments of the occurrence of triggering events, appropriately discounted considering the uncertainties associated with the obligation. We remeasure this liability each reporting period and record the changes in the fair value in general and administrative expense (for probability of occurrence) and other income (expense) (for changes in time value of money) in earnings. During the period we evaluated but did not change our unobservable input assumptions and fair value techniques used in measuring the fair value of any financial assets or liabilities from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013. There were no significant transfers into or out of any levels that occurred between December 31, 2013 and March 31, 2014. | |||||||||||||||||||||||||||||||||||
Rollforward of liabilities measured at fair value using unobservable inputs (Level 3): | |||||||||||||||||||||||||||||||||||
March | December | ||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | 59 | $ | 103 | |||||||||||||||||||||||||||||||
Losses included in earnings | — | (5 | ) | ||||||||||||||||||||||||||||||||
Settlements | (12 | ) | (39 | ) | |||||||||||||||||||||||||||||||
Balance at the end of the period | $ | 47 | $ | 59 | |||||||||||||||||||||||||||||||
Summary of marketable securities: | |||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||||
March | December | March | December | March | December | March | December | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | $ | 1,171 | $ | 1,177 | $ | 2 | $ | 1 | $ | (1 | ) | $ | (1 | ) | $ | 1,172 | $ | 1,177 | |||||||||||||||||
Foreign government debt securities | 826 | 846 | 2 | — | — | (1 | ) | 828 | 845 | ||||||||||||||||||||||||||
United States agency debt securities | 124 | 211 | — | — | — | — | 124 | 211 | |||||||||||||||||||||||||||
United States treasury debt securities | 487 | 350 | — | — | — | — | 487 | 350 | |||||||||||||||||||||||||||
Certificates of deposit | 51 | 53 | — | — | — | — | 51 | 53 | |||||||||||||||||||||||||||
Other | 4 | 5 | — | — | — | — | 4 | 5 | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 2,663 | $ | 2,642 | $ | 4 | $ | 1 | $ | (1 | ) | $ | (2 | ) | 2,666 | 2,641 | |||||||||||||||||||
Trading marketable securities | 74 | 72 | |||||||||||||||||||||||||||||||||
Total marketable securities | $ | 2,740 | $ | 2,713 | |||||||||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||||||||||||
Current assets-marketable securities | $ | 2,666 | $ | 2,641 | |||||||||||||||||||||||||||||||
Noncurrent assets-other | 74 | 72 | |||||||||||||||||||||||||||||||||
$ | 2,740 | $ | 2,713 | ||||||||||||||||||||||||||||||||
The unrealized losses on available-for-sale marketable securities at March 31, 2014 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). 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; accordingly, we do not consider these investments to be other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||||||||||||
The cost and estimated fair value of available-for-sale marketable securities at March 31, 2014 by contractual maturity are: | |||||||||||||||||||||||||||||||||||
Cost | Estimated | ||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 522 | $ | 521 | |||||||||||||||||||||||||||||||
Due after one year through three years | 1,905 | 1,908 | |||||||||||||||||||||||||||||||||
Due after three years | 236 | 237 | |||||||||||||||||||||||||||||||||
$ | 2,663 | $ | 2,666 | ||||||||||||||||||||||||||||||||
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 March 31, 2014 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 | 170 | 173 | 86 | 93 | 46 | 46 | 114 | 115 | 416 | 427 | |||||||||||||||||||||||||
Fair value | $ | 389 | $ | 396 | $ | 490 | $ | 576 | $ | 228 | $ | 228 | $ | 15 | $ | 15 | $ | 1,122 | $ | 1,215 | |||||||||||||||
Unrealized losses | $ | (1 | ) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | |||||||||||
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 $6 and $5 for the three months ended March 31, 2014 and 2013, respectively, and is included in other income (expense). |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Strategies | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Strategies | ' | |||||||||||||||||||||||||||||||||||||||
NOTE 5 - DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | ||||||||||||||||||||||||||||||||||||||||
We use operational and economic hedges as well as foreign currency exchange forward contracts to manage the impact of currency exchange on earnings and cash flow. During the period we did not change our hedging strategies or objectives from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013. The gross notional and gross fair value amounts of foreign exchange forward contract derivatives designated and non-designated as hedging instruments are: | ||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Fair Value - Balance Sheet Location | Fair Value - Balance Sheet Location | |||||||||||||||||||||||||||||||||||||||
Gross Notional | Other Current Assets | Other Assets – Noncurrent | Other Current Liabilities | Other Liabilities – Noncurrent | Gross Notional | Other Current Assets | Other Assets – Noncurrent | Other Current Liabilities | Other Liabilities – Noncurrent | |||||||||||||||||||||||||||||||
Designated | $ | 315 | $ | 5 | $ | 1 | $ | 2 | $ | 1 | $ | 344 | $ | 11 | $ | 1 | $ | 1 | $ | — | ||||||||||||||||||||
Non-designated | 2,170 | 10 | 1 | 3 | — | 2,000 | 10 | 3 | 1 | — | ||||||||||||||||||||||||||||||
$ | 2,485 | $ | 15 | $ | 2 | $ | 5 | $ | 1 | $ | 2,344 | $ | 21 | $ | 4 | $ | 2 | $ | — | |||||||||||||||||||||
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. The maximum term of the forward currency exchange contracts at March 31, 2014 and December 31, 2013 was 546 days for each period. | ||||||||||||||||||||||||||||||||||||||||
The aggregate currency exchange rate gains (losses) for the three months ended March 31, 2014 was ($4), comprised of gains of $2 recorded in cost of goods sold and losses of ($6) recorded in other (income) expense. No aggregate gain (loss) was recorded for the three months ended March 31, 2013. These total gains (losses) represent the net impact to the consolidated statements of earnings for both designated and non-designated derivative instruments. | ||||||||||||||||||||||||||||||||||||||||
The amount and location of gains in the consolidated statements of earnings and amounts recorded in AOCI related to the foreign exchange contract derivative instruments designated as hedges for the three months ended March 31 were: | ||||||||||||||||||||||||||||||||||||||||
Reported as a component of AOCI (net of tax effective portion) | Reclassified from AOCI into income (pre-tax effective portion) | Recognized in other income (expense) (pre-tax ineffective portion and amount excluded from effectiveness testing) | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
$ | 5 | $ | — | $ | 2 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, deferred pretax gains on derivatives designated as hedges of $7 and $12, which are recorded in AOCI, are expected to be reclassified to current earnings during the next twelve months. This reclassification is primarily due to the sale of inventory that includes previously hedged purchases. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
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 and intellectual property, and other matters. 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 has 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, for the resolution of these legal matters 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 projected by management, additional expense may be incurred, which could unfavorably affect future operating results. We are currently self-insured for product liability-related 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 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. We have recorded charges totaling $80 related to this matter. | |
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. The ultimate total cost with respect to this matter will depend on many factors that are difficult to predict 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 $1,130 to $1,580 before third-party insurance recoveries. In the three months ended March 31, 2014, we recorded charges to earnings of $340 representing the excess of the $1,130 minimum of the range over the previously recorded reserves. No contingent gain for third-party insurance recoveries was recorded as of March 31, 2014. 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. We have entered into an agreement settling the first lawsuit, with terms as previously disclosed. 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 that are currently under reexamination by the United States Patent Office. With respect to the three remaining patents, Hill-Rom is appealing the trial court's grant of summary judgment in our favor and the ultimate resolution of this particular part of the suit may differ. The ultimate resolution of the entire second suit may have no relation to the resolution of the first suit and cannot be predicted; however, the 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 and 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. |
Acquisitions
Acquisitions | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions | ' | ||||||||||||||||
ACQUISITIONS | |||||||||||||||||
In March 2014 we completed our acquisition of Patient Safety Technologies, Inc. (PST) for an aggregate purchase price of $120. PST conducts its business through its wholly owned subsidiary, SurgiCount Medical, Inc. PST’s proprietary Safety-Sponge® System and SurgiCount 360™ compliance software help prevent Retained Foreign Objects in the operating room. The acquisition of PST is expected to enhance our product offerings within our MedSurg segment. Intangible assets acquired with PST will be amortized over a weighted-average life of 14 years. | |||||||||||||||||
Other business acquisitions completed in the three-month period in 2014 include the previously announced acquisition of Pivot Medical, Inc. (Pivot). The acquired net assets of these acquisitions appear in the "Other" column in the table below. | |||||||||||||||||
In February 2014 we announced our intent to acquire Berchtold Holding, AG (Berchtold); on April 15, 2014 the acquisition closed for an aggregate purchase price of approximately $172. Berchtold, a privately held business with operating facilities in Germany and the United States, sells surgical infrastructure equipment including surgical tables, equipment booms and surgical lighting systems. The acquisition of Berchtold is expected to enhance our product offerings within our MedSurg segment. | |||||||||||||||||
In December 2013 we acquired MAKO Surgical Corp. (MAKO) for an aggregate purchase price of $1,679. 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 arm assisted surgery. Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience. The acquisition of MAKO enhances our product offerings within our Reconstructive segment. Intangible assets acquired with MAKO will be amortized over a weighted-average life of 9 years, except for the trade name that is deemed to have an indefinite life. In-process research and development (IPRD) is considered to be an indefinite-lived intangible asset until such time as the research is completed (at which time it becomes a determinable-lived intangible asset) or determined to have no future use (at which time it is impaired). | |||||||||||||||||
The purchase price allocations for MAKO, PST and other smaller acquisitions are based upon preliminary valuations, and our estimates and assumptions are subject to change within the measurement period as the valuations are finalized. Management is currently in the process of verifying data and finalizing information related to the MAKO valuation and all acquisitions completed in 2014 to finalize the recording of identifiable intangible assets, deferred income taxes and the corresponding effect on the value of goodwill. | |||||||||||||||||
In March 2013 we acquired Trauson Holdings Company Limited (Trauson) for an aggregate purchase price of $751. The acquisition of Trauson enhances our product offerings, primarily within our Reconstructive segment, broadens our presence in China and enables us to expand into the fast growing value segment of the emerging markets. Intangible assets acquired with Trauson will be amortized over a weighted-average life of 15 years, except for the trade name that is deemed to have an indefinite life. IPRD is considered to be an indefinite-lived intangible asset until the research is completed (at which time it becomes a determinable-lived intangible asset) or it is determined to have no future use (at which time it is impaired). The measurement period for the Trauson acquisition was completed in 2013. | |||||||||||||||||
The allocation of the purchase prices of each acquisition to the acquired net assets is as follows: | |||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||
PST | Other | MAKO | Trauson | ||||||||||||||
Purchase price paid | $ | 120 | $ | 148 | $ | 1,679 | $ | 751 | |||||||||
Tangible assets acquired: | |||||||||||||||||
Inventory | 7 | 5 | 50 | 43 | |||||||||||||
Other assets | 19 | 25 | 174 | 163 | |||||||||||||
Liabilities | (33 | ) | (32 | ) | (277 | ) | (87 | ) | |||||||||
Identifiable intangible assets: | |||||||||||||||||
Customer relationship | 33 | 4 | 91 | 112 | |||||||||||||
Trade name | — | — | 24 | 34 | |||||||||||||
Developed technology & patents | 26 | 70 | 231 | 31 | |||||||||||||
IPRD | — | 2 | 169 | 5 | |||||||||||||
Goodwill | 68 | 74 | 1,217 | 450 | |||||||||||||
$ | 120 | $ | 148 | $ | 1,679 | $ | 751 | ||||||||||
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facilities | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||||
Long-Term Debt And Credit Facilities | ' | |||||||||
LONG-TERM DEBT AND CREDIT FACILITIES | ||||||||||
Our debt is summarized as follows: | ||||||||||
31-Mar | 31-Dec | |||||||||
2014 | 2013 | |||||||||
Senior unsecured notes: | ||||||||||
Rate | Due | |||||||||
3.00% | 15-Jan-15 | $ | 500 | $ | 500 | |||||
2.00% | 30-Sep-16 | 749 | 749 | |||||||
1.30% | 1-Apr-18 | 598 | 598 | |||||||
4.38% | 15-Jan-20 | 498 | 498 | |||||||
4.10% | 1-Apr-43 | 395 | 394 | |||||||
Commercial paper | 300 | — | ||||||||
Other | 24 | 25 | ||||||||
Total debt | 3,064 | 2,764 | ||||||||
Less current maturities | (820 | ) | (25 | ) | ||||||
Total long-term debt | $ | 2,244 | $ | 2,739 | ||||||
During the three months ended March 31, 2014, we issued commercial paper under the commercial paper program we established in July 2011. The program allows us to have a maximum of $500 in commercial paper outstanding, with maturities up to 397 days from the date of issuance. As of March 31, 2014, outstanding commercial paper totaled $300, the weighted average original maturity of the commercial paper outstanding was approximately 13 days and the weighted average interest rate was 0.3%. | ||||||||||
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. | ||||||||||
Certain of our credit facilities require us to comply with certain financial and other covenants. We were in compliance with all covenants at March 31, 2014. We have lines of credit, issued by various financial institutions, available to fund our day-to-day operating needs. At March 31, 2014, we had $762 of borrowing capacity available under all of our existing credit facilities. The weighted average interest rate, excluding required fees, for all borrowings was 2.7% at March 31, 2014. | ||||||||||
At December 31, 2013, the total unamortized debt issuance costs incurred in connection with our outstanding notes were $15. The fair value of long-term debt (including current maturities) at March 31, 2014 and December 31, 2013 was $2,792 and $2,790, respectively, based on the quoted interest rates for similar types and amounts of borrowing agreements. |
Capital_Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2014 | |
Capital Stock Disclosures [Abstract] | ' |
Capital Stock | ' |
CAPITAL STOCK | |
In February 2014 we declared a quarterly dividend of $0.305 per share, payable April 30, 2014 to shareholders of record at the close of business on March 31, 2014. | |
We did not repurchase any shares during the three months ended March 31, 2014. At March 31, 2014, the maximum dollar value of shares that may be purchased under authorized repurchase programs was $683. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||||||
Restructuring Charges | ' | ||||||||||||||||
RESTRUCTURING CHARGES | |||||||||||||||||
In recent years, we have incurred an ongoing annual level of restructuring-type activities to maintain a competitive cost structure, including manufacturing and workforce optimization. The costs incurred under the ongoing program have generally ranged from $50 to $75 annually. The productivity and cost savings plan was designed to accelerate cost reductions by streamlining management decision making, manufacturing and other work processes to help fund our growth strategy. | |||||||||||||||||
A rollforward of our restructuring liability balance for the three months ended March 31, 2014 is as follows: | |||||||||||||||||
Total | Agent Conversions | Severance and Related Costs | Contractual Obligations and Other | ||||||||||||||
January 1 Balance | $ | 20 | $ | 2 | $ | 10 | $ | 8 | |||||||||
Charges to earnings | 5 | — | 3 | 2 | |||||||||||||
Cash paid | (8 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||||
Other adjustments | (1 | ) | — | (1 | ) | — | |||||||||||
March 31 Balance | $ | 16 | $ | 1 | $ | 8 | $ | 7 | |||||||||
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||||||||||||||
Net sales and net earnings by business segment for the three months ended March 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||
Reconstructive | MedSurg | Neurotechnology and Spine | Total | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net sales | $ | 999 | $ | 956 | $ | 886 | $ | 837 | $ | 420 | $ | 397 | $ | 2,305 | $ | 2,190 | ||||||||||||
Segment net earnings | 249 | 234 | 145 | 161 | 86 | 78 | $ | 480 | $ | 473 | ||||||||||||||||||
Less: other (net of income taxes) | ||||||||||||||||||||||||||||
Other | (76 | ) | (56 | ) | ||||||||||||||||||||||||
Acquisition and integration related charges | (13 | ) | (17 | ) | ||||||||||||||||||||||||
Intangible Amortization | (31 | ) | (23 | ) | ||||||||||||||||||||||||
Restructuring and related charges | (10 | ) | (11 | ) | ||||||||||||||||||||||||
Recall charges | (272 | ) | (32 | ) | ||||||||||||||||||||||||
Regulatory matter charges | — | (30 | ) | |||||||||||||||||||||||||
Tax matters | (8 | ) | — | |||||||||||||||||||||||||
Net earnings | $ | 70 | $ | 304 | ||||||||||||||||||||||||
Other than assets associated with the acquisitions that are discussed in greater detail in Note 7, 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, 2013. |
Reclassification_Adjustments_O1
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
Marketable Securities Unrealized Gain (Loss) | Defined Benefit Pension Plans | Unrecognized Gain (Loss) on Hedge | Foreign Currency Translation | Total AOCI | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | 4 | $ | (81 | ) | $ | (101 | ) | $ | 7 | $ | — | $ | 306 | $ | 226 | $ | 232 | $ | 129 | ||||||||||||||||||
Other comprehensive income (OCI) | 5 | 2 | (3 | ) | 1 | (2 | ) | — | 37 | (114 | ) | 37 | (111 | ) | ||||||||||||||||||||||||||
Reclassifications out of AOCI | (2 | ) | (3 | ) | 2 | 2 | (1 | ) | — | — | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||
Net current-period OCI | 3 | (1 | ) | (1 | ) | 3 | (3 | ) | — | 37 | (114 | ) | 36 | (112 | ) | |||||||||||||||||||||||||
Balance at March 31 | $ | 3 | $ | 3 | $ | (82 | ) | $ | (98 | ) | $ | 4 | $ | — | $ | 343 | $ | 112 | $ | 268 | $ | 17 | ||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Detail of AOCI Components | Amount Reclassified | Reclassified To | Amount Reclassified | Reclassified To | ||||||||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale marketable securities | $ | (2 | ) | Other (income) expense | $ | (5 | ) | Other (income) expense | ||||||||||||||||||||||||||||||||
— | Income tax expense | 2 | Income tax expense | |||||||||||||||||||||||||||||||||||||
$ | (2 | ) | Net of tax | $ | (3 | ) | Net of tax | |||||||||||||||||||||||||||||||||
Amortization of defined benefit pension plan actuarial losses | $ | 2 | Cost of sales | $ | 2 | Cost of sales | ||||||||||||||||||||||||||||||||||
— | Income tax benefit | — | Income tax benefit | |||||||||||||||||||||||||||||||||||||
$ | 2 | Net of tax | $ | 2 | Net of tax | |||||||||||||||||||||||||||||||||||
Unrealized losses on designated hedges | $ | (2 | ) | Cost of sales | $ | — | Cost of sales | |||||||||||||||||||||||||||||||||
— | Other (income) expense | — | Other (income) expense | |||||||||||||||||||||||||||||||||||||
1 | Income tax expense | — | Income tax expense | |||||||||||||||||||||||||||||||||||||
$ | (1 | ) | Net of tax | $ | — | Net of tax | ||||||||||||||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Fair Value, Assets And Liabilities Measured On Recurring Basis | ' | ||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||
March | 31-Dec | March | 31-Dec | March | 31-Dec | March | 31-Dec | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,381 | $ | 1,339 | $ | 1,381 | $ | 1,339 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Available-for-sale marketable securities | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | 1,172 | 1,177 | — | — | 1,172 | 1,177 | — | — | |||||||||||||||||||||||||||
Foreign government debt securities | 828 | 845 | — | — | 828 | 845 | — | — | |||||||||||||||||||||||||||
United States agency debt securities | 124 | 211 | — | — | 124 | 211 | — | — | |||||||||||||||||||||||||||
United States treasury debt securities | 487 | 350 | — | — | 487 | 350 | — | — | |||||||||||||||||||||||||||
Certificates of deposit | 51 | 53 | — | — | 51 | 53 | — | — | |||||||||||||||||||||||||||
Other | 4 | 5 | — | — | 4 | 5 | — | — | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | 2,666 | 2,641 | — | — | 2,666 | 2,641 | — | — | |||||||||||||||||||||||||||
Trading marketable securities | 74 | 72 | 74 | 72 | — | — | — | — | |||||||||||||||||||||||||||
Foreign currency exchange forward contracts | 17 | 25 | — | — | 17 | 25 | — | — | |||||||||||||||||||||||||||
$ | 4,138 | $ | 4,077 | $ | 1,455 | $ | 1,411 | $ | 2,683 | $ | 2,666 | $ | — | $ | — | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deferred compensation arrangements | $ | 74 | $ | 72 | $ | 74 | $ | 72 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Contingent consideration | 47 | 59 | — | — | — | — | 47 | 59 | |||||||||||||||||||||||||||
Foreign currency exchange forward contracts | 6 | 2 | — | — | 6 | 2 | — | — | |||||||||||||||||||||||||||
$ | 127 | $ | 133 | $ | 74 | $ | 72 | $ | 6 | $ | 2 | $ | 47 | $ | 59 | ||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
March | December | ||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | $ | 59 | $ | 103 | |||||||||||||||||||||||||||||||
Losses included in earnings | — | (5 | ) | ||||||||||||||||||||||||||||||||
Settlements | (12 | ) | (39 | ) | |||||||||||||||||||||||||||||||
Balance at the end of the period | $ | 47 | $ | 59 | |||||||||||||||||||||||||||||||
Summary Of Marketable Securities | ' | ||||||||||||||||||||||||||||||||||
Summary of marketable securities: | |||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||||||||||||
March | December | March | December | March | December | March | December | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Available-for-sale marketable securities: | |||||||||||||||||||||||||||||||||||
Corporate and asset-backed debt securities | $ | 1,171 | $ | 1,177 | $ | 2 | $ | 1 | $ | (1 | ) | $ | (1 | ) | $ | 1,172 | $ | 1,177 | |||||||||||||||||
Foreign government debt securities | 826 | 846 | 2 | — | — | (1 | ) | 828 | 845 | ||||||||||||||||||||||||||
United States agency debt securities | 124 | 211 | — | — | — | — | 124 | 211 | |||||||||||||||||||||||||||
United States treasury debt securities | 487 | 350 | — | — | — | — | 487 | 350 | |||||||||||||||||||||||||||
Certificates of deposit | 51 | 53 | — | — | — | — | 51 | 53 | |||||||||||||||||||||||||||
Other | 4 | 5 | — | — | — | — | 4 | 5 | |||||||||||||||||||||||||||
Total available-for-sale marketable securities | $ | 2,663 | $ | 2,642 | $ | 4 | $ | 1 | $ | (1 | ) | $ | (2 | ) | 2,666 | 2,641 | |||||||||||||||||||
Trading marketable securities | 74 | 72 | |||||||||||||||||||||||||||||||||
Total marketable securities | $ | 2,740 | $ | 2,713 | |||||||||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||||||||||||
Current assets-marketable securities | $ | 2,666 | $ | 2,641 | |||||||||||||||||||||||||||||||
Noncurrent assets-other | 74 | 72 | |||||||||||||||||||||||||||||||||
$ | 2,740 | $ | 2,713 | ||||||||||||||||||||||||||||||||
Investments Classified By Contractual Maturity Date | ' | ||||||||||||||||||||||||||||||||||
Cost | Estimated | ||||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 522 | $ | 521 | |||||||||||||||||||||||||||||||
Due after one year through three years | 1,905 | 1,908 | |||||||||||||||||||||||||||||||||
Due after three years | 236 | 237 | |||||||||||||||||||||||||||||||||
$ | 2,663 | $ | 2,666 | ||||||||||||||||||||||||||||||||
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 | 170 | 173 | 86 | 93 | 46 | 46 | 114 | 115 | 416 | 427 | |||||||||||||||||||||||||
Fair value | $ | 389 | $ | 396 | $ | 490 | $ | 576 | $ | 228 | $ | 228 | $ | 15 | $ | 15 | $ | 1,122 | $ | 1,215 | |||||||||||||||
Unrealized losses | $ | (1 | ) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | |||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Strategies (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | ' | |||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
Reported as a component of AOCI (net of tax effective portion) | Reclassified from AOCI into income (pre-tax effective portion) | Recognized in other income (expense) (pre-tax ineffective portion and amount excluded from effectiveness testing) | ||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
$ | 5 | $ | — | $ | 2 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Fair Value - Balance Sheet Location | Fair Value - Balance Sheet Location | |||||||||||||||||||||||||||||||||||||||
Gross Notional | Other Current Assets | Other Assets – Noncurrent | Other Current Liabilities | Other Liabilities – Noncurrent | Gross Notional | Other Current Assets | Other Assets – Noncurrent | Other Current Liabilities | Other Liabilities – Noncurrent | |||||||||||||||||||||||||||||||
Designated | $ | 315 | $ | 5 | $ | 1 | $ | 2 | $ | 1 | $ | 344 | $ | 11 | $ | 1 | $ | 1 | $ | — | ||||||||||||||||||||
Non-designated | 2,170 | 10 | 1 | 3 | — | 2,000 | 10 | 3 | 1 | — | ||||||||||||||||||||||||||||||
$ | 2,485 | $ | 15 | $ | 2 | $ | 5 | $ | 1 | $ | 2,344 | $ | 21 | $ | 4 | $ | 2 | $ | — | |||||||||||||||||||||
Acquisitions_Acquisitions_Tabl
Acquisitions Acquisitions (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Schedule of Purchase Price Allocation [Table Text Block] | ' | ||||||||||||||||
llows: | |||||||||||||||||
2014 | 2014 | 2013 | 2013 | ||||||||||||||
PST | Other | MAKO | Trauson | ||||||||||||||
Purchase price paid | $ | 120 | $ | 148 | $ | 1,679 | $ | 751 | |||||||||
Tangible assets acquired: | |||||||||||||||||
Inventory | 7 | 5 | 50 | 43 | |||||||||||||
Other assets | 19 | 25 | 174 | 163 | |||||||||||||
Liabilities | (33 | ) | (32 | ) | (277 | ) | (87 | ) | |||||||||
Identifiable intangible assets: | |||||||||||||||||
Customer relationship | 33 | 4 | 91 | 112 | |||||||||||||
Trade name | — | — | 24 | 34 | |||||||||||||
Developed technology & patents | 26 | 70 | 231 | 31 | |||||||||||||
IPRD | — | 2 | 169 | 5 | |||||||||||||
Goodwill | 68 | 74 | 1,217 | 450 | |||||||||||||
$ | 120 | $ | 148 | $ | 1,679 | $ | 751 | ||||||||||
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facilities (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Long-term Debt, Unclassified [Abstract] | ' | |||||||||
Maturities Of Long-Term Debt Disclosures | ' | |||||||||
31-Mar | 31-Dec | |||||||||
2014 | 2013 | |||||||||
Senior unsecured notes: | ||||||||||
Rate | Due | |||||||||
3.00% | 15-Jan-15 | $ | 500 | $ | 500 | |||||
2.00% | 30-Sep-16 | 749 | 749 | |||||||
1.30% | 1-Apr-18 | 598 | 598 | |||||||
4.38% | 15-Jan-20 | 498 | 498 | |||||||
4.10% | 1-Apr-43 | 395 | 394 | |||||||
Commercial paper | 300 | — | ||||||||
Other | 24 | 25 | ||||||||
Total debt | 3,064 | 2,764 | ||||||||
Less current maturities | (820 | ) | (25 | ) | ||||||
Total long-term debt | $ | 2,244 | $ | 2,739 | ||||||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||||||
Restructuring Charges | ' | ||||||||||||||||
Total | Agent Conversions | Severance and Related Costs | Contractual Obligations and Other | ||||||||||||||
January 1 Balance | $ | 20 | $ | 2 | $ | 10 | $ | 8 | |||||||||
Charges to earnings | 5 | — | 3 | 2 | |||||||||||||
Cash paid | (8 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||||
Other adjustments | (1 | ) | — | (1 | ) | — | |||||||||||
March 31 Balance | $ | 16 | $ | 1 | $ | 8 | $ | 7 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Sales and Other Financial Information by Business Segment | ' | |||||||||||||||||||||||||||
Reconstructive | MedSurg | Neurotechnology and Spine | Total | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Net sales | $ | 999 | $ | 956 | $ | 886 | $ | 837 | $ | 420 | $ | 397 | $ | 2,305 | $ | 2,190 | ||||||||||||
Segment net earnings | 249 | 234 | 145 | 161 | 86 | 78 | $ | 480 | $ | 473 | ||||||||||||||||||
Less: other (net of income taxes) | ||||||||||||||||||||||||||||
Other | (76 | ) | (56 | ) | ||||||||||||||||||||||||
Acquisition and integration related charges | (13 | ) | (17 | ) | ||||||||||||||||||||||||
Intangible Amortization | (31 | ) | (23 | ) | ||||||||||||||||||||||||
Restructuring and related charges | (10 | ) | (11 | ) | ||||||||||||||||||||||||
Recall charges | (272 | ) | (32 | ) | ||||||||||||||||||||||||
Regulatory matter charges | — | (30 | ) | |||||||||||||||||||||||||
Tax matters | (8 | ) | — | |||||||||||||||||||||||||
Net earnings | $ | 70 | $ | 304 | ||||||||||||||||||||||||
Subsequent_Event_Details
Subsequent Event (Details) (Other, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Other | ' |
Subsequent Event [Line Items] | ' |
Purchase price paid | $172 |
Reclassification_Adjustments_O2
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) Changes in AOCI balances net of tax (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Beginning balance | $232 | $129 |
Other comprehensive income (OCI) | 37 | -111 |
Reclassifications out of AOCI | -1 | -1 |
Total other comprehensive income (loss) | 36 | -112 |
Balance at March 31 | 268 | 17 |
Marketable Securities Unrealized Gain (Loss) | ' | ' |
Beginning balance | ' | 4 |
Other comprehensive income (OCI) | 5 | 2 |
Reclassifications out of AOCI | -2 | -3 |
Total other comprehensive income (loss) | 3 | -1 |
Balance at March 31 | 3 | 3 |
Defined Benefit Pension Plans | ' | ' |
Beginning balance | -81 | -101 |
Other comprehensive income (OCI) | -3 | 1 |
Reclassifications out of AOCI | 2 | 2 |
Total other comprehensive income (loss) | -1 | 3 |
Balance at March 31 | -82 | -98 |
Unrecognized Gain (Loss) on Hedge | ' | ' |
Beginning balance | 7 | 0 |
Other comprehensive income (OCI) | -2 | 0 |
Reclassifications out of AOCI | -1 | 0 |
Total other comprehensive income (loss) | -3 | 0 |
Balance at March 31 | 4 | 0 |
Foreign Currency Translation | ' | ' |
Beginning balance | 306 | 226 |
Other comprehensive income (OCI) | 37 | -114 |
Reclassifications out of AOCI | 0 | 0 |
Total other comprehensive income (loss) | 37 | -114 |
Balance at March 31 | $343 | $112 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income taxes | $37 | $71 |
Net Income (Loss) Attributable to Parent | 70 | 304 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Marketable Securities Unrealized Gain (Loss) | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | -2 | -5 |
Income taxes | 0 | 2 |
Net Income (Loss) Attributable to Parent | -2 | -3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Plans | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 2 | 2 |
Income taxes | 0 | 0 |
Net Income (Loss) Attributable to Parent | 2 | 2 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrecognized Gain (Loss) on Hedge | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | 0 |
Income taxes | 1 | 0 |
Net Income (Loss) Attributable to Parent | -1 | 0 |
Cost of Sales [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrecognized Gain (Loss) on Hedge | ' | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | ($2) | $0 |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest and marketable securities income | $6 | $0 |
Interest Income (Expense), Net | 1 | 0 |
Marketable Securities, Gain (Loss) | $5 | $5 |
Corporate and asset-backed debt securities | Standard & Poor's, A Rating [Member] | ' | ' |
Percentage Of Company's Investments With Credit Quality Rating Less Than Single A And A2 | 1.00% | ' |
Corporate and asset-backed debt securities | Fitch, A Rating [Member] | ' | ' |
Percentage Of Company's Investments With Credit Quality Rating Less Than Single A And A2 | 1.00% | ' |
Corporate and asset-backed debt securities | Moody's, A2 Rating [Member] | ' | ' |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $1,381 | $1,339 |
Foreign currency exchange forward contracts | 17 | 25 |
Total | 4,138 | 4,077 |
Liabilities: | ' | ' |
Deferred compensation arrangements | 74 | 72 |
Contingent consideration | 47 | 59 |
Foreign currency exchange forward contracts | 6 | 2 |
Total | 127 | 133 |
Available-for-sale marketable securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 2,666 | 2,641 |
Available-for-sale marketable securities | Corporate and asset-backed debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 1,172 | 1,177 |
Available-for-sale marketable securities | Foreign government debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 828 | 845 |
Available-for-sale marketable securities | United States agency debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 124 | 211 |
Available-for-sale marketable securities | United States treasury debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 487 | 350 |
Available-for-sale marketable securities | Certificates of deposit | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 51 | 53 |
Available-for-sale marketable securities | Other | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 4 | 5 |
Trading marketable securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 74 | 72 |
Level 1 | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 1,381 | 1,339 |
Total | 1,455 | 1,411 |
Liabilities: | ' | ' |
Deferred compensation arrangements | 74 | 72 |
Total | 74 | 72 |
Level 1 | Trading marketable securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 74 | 72 |
Level 2 | ' | ' |
Assets: | ' | ' |
Foreign currency exchange forward contracts | 17 | 25 |
Total | 2,683 | 2,666 |
Liabilities: | ' | ' |
Foreign currency exchange forward contracts | 6 | 2 |
Total | 6 | 2 |
Level 2 | Available-for-sale marketable securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 2,666 | 2,641 |
Level 2 | Available-for-sale marketable securities | Corporate and asset-backed debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 1,172 | 1,177 |
Level 2 | Available-for-sale marketable securities | Foreign government debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 828 | 845 |
Level 2 | Available-for-sale marketable securities | United States agency debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 124 | 211 |
Level 2 | Available-for-sale marketable securities | United States treasury debt securities | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 487 | 350 |
Level 2 | Available-for-sale marketable securities | Certificates of deposit | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 51 | 53 |
Level 2 | Available-for-sale marketable securities | Other | ' | ' |
Assets: | ' | ' |
Total available-for-sale marketable securities | 4 | 5 |
Level 3 | ' | ' |
Liabilities: | ' | ' |
Contingent consideration | 47 | 59 |
Total | $47 | $59 |
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 $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Document Fiscal Year Focus | '2014 | ' |
Contingent consideration | ' | ' |
Balance at the beginning of the period | $59 | $103 |
Losses included in earnings | ' | -5 |
Settlements | -12 | -39 |
Balance at the end of the period | $47 | $59 |
Fair_Value_Measurements_Market
Fair Value Measurements (Marketable Securities) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Document Fiscal Year Focus | '2014 | ' | ' |
Estimated Fair Value | $2,740 | ' | $2,713 |
Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 2,663 | ' | 2,642 |
Gross Unrealized Gains | 4 | 1 | ' |
Gross Unrealized Losses | -1 | -2 | ' |
Estimated Fair Value | 2,666 | ' | 2,641 |
Trading marketable securities | ' | ' | ' |
Estimated Fair Value | 74 | ' | 72 |
Available-for-sale marketable securities | ' | ' | ' |
Estimated Fair Value | 2,666 | ' | 2,641 |
Noncurrent assets-other | ' | ' | ' |
Estimated Fair Value | 74 | ' | 72 |
Corporate and asset-backed debt securities | Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 1,171 | ' | 1,177 |
Gross Unrealized Gains | 2 | 1 | ' |
Gross Unrealized Losses | -1 | -1 | ' |
Estimated Fair Value | 1,172 | ' | 1,177 |
Foreign government debt securities | Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 826 | ' | 846 |
Gross Unrealized Gains | 2 | ' | ' |
Gross Unrealized Losses | ' | -1 | ' |
Estimated Fair Value | 828 | ' | 845 |
United States agency debt securities | Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 124 | ' | 211 |
Estimated Fair Value | 124 | ' | 211 |
United States treasury debt securities | Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 487 | ' | 350 |
Estimated Fair Value | 487 | ' | 350 |
Certificates of deposit | Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 51 | ' | 53 |
Estimated Fair Value | 51 | ' | 53 |
Other | Available-for-sale marketable securities | ' | ' | ' |
Amortized Cost | 4 | ' | 5 |
Estimated Fair Value | $4 | ' | $5 |
Fair_Value_Measurements_Net_Ca
Fair Value Measurements (Net Carrying Value And Estimated Fair Value Of Available-For-Sale Marketable Securities) (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
Due in one year or less, Cost | $522 |
Due in one year or less, Estimated Fair Value | 521 |
Due after one year through three years, Cost | 1,905 |
Due after one year through three years, Estimated Fair Value | 1,908 |
Due after three years, Cost | 236 |
Due after three years, Estimated Fair Value | 237 |
Fair value of available-for-sale marketable securities, Cost | 2,663 |
Fair value of available-for-sale marketable securities, Estimated Fair Value | $2,666 |
Fair_Value_Measurements_Unreal
Fair Value Measurements (Unrealized Losses And Fair Value Of Investments With Unrealized Losses) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Less Than 12 Months - Number of Investments | 416 |
Less Than 12 Months - Fair Value | $1,122 |
Less Than 12 Months - Unrealized Losses | 1 |
Total - Number of Investments | 427 |
Total - Fair Value | 1,215 |
Total - Unrealized Losses | 1 |
Corporate and asset-backed debt securities | ' |
Less Than 12 Months - Number of Investments | 170 |
Less Than 12 Months - Fair Value | 389 |
Less Than 12 Months - Unrealized Losses | 1 |
Total - Number of Investments | 173 |
Total - Fair Value | 396 |
Total - Unrealized Losses | 1 |
Foreign government debt securities | ' |
Less Than 12 Months - Number of Investments | 86 |
Less Than 12 Months - Fair Value | 490 |
Total - Number of Investments | 93 |
Total - Fair Value | 576 |
United States agency debt securities | ' |
Less Than 12 Months - Number of Investments | 46 |
Less Than 12 Months - Fair Value | 228 |
Total - Number of Investments | 46 |
Total - Fair Value | 228 |
Other | ' |
Less Than 12 Months - Number of Investments | 114 |
Less Than 12 Months - Fair Value | 15 |
Total - Number of Investments | 115 |
Total - Fair Value | $15 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Strategies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 |
Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | |||
Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Cost of Sales [Member] | Other Expense [Member] | ||||
Foreign currency transaction losses | ' | ' | $0 | ' | ' | $0 | $0 |
Maximum Term (Days) | '546 days | '546 days | ' | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ' | ' | ' | $7 | $12 | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Strategies (Forward Currency Exchange Contracts) (Details) (Foreign Exchange Contract [Member], USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Notional Amount | $2,485 | ' | $2,344 |
Designated as Hedging Instrument [Member] | ' | ' | ' |
Notional Amount | 315 | ' | 344 |
Derivative Instruments, Gain (Loss) Recognized in Accumulated OCI, Effective Portion, Net | 5 | 0 | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 2 | 0 | ' |
Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Notional Amount | 2,170 | ' | 2,000 |
Other Current Assets | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 15 | ' | 21 |
Other Current Assets | Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 5 | ' | 11 |
Other Current Assets | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 10 | ' | 10 |
Other Assets b Noncurrent | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 2 | ' | 4 |
Other Assets b Noncurrent | Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 1 | ' | 1 |
Other Assets b Noncurrent | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 1 | ' | 3 |
Other Current Liabilities | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 5 | ' | 2 |
Other Current Liabilities | Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 2 | ' | 1 |
Other Current Liabilities | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 3 | ' | 1 |
Other Liabilities b Noncurrent | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 1 | ' | 0 |
Other Liabilities b Noncurrent | Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | 1 | ' | 0 |
Other Liabilities b Noncurrent | Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | $0 | ' | $0 |
Contingencies_Narrative_Detail
Contingencies (Narrative) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Rejuvenate and ABG II Voluntary Recall [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 | Rejuvenate and ABG II Voluntary Recall [Member] | Rejuvenate and ABG II Voluntary Recall [Member] | ||||
Loss Contingency Accrual, at Carrying Value | $80 | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | 1,130 | 1,580 | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | ' | ' | ' | ' | ' | '228 |
Estimated Litigation Liability | ' | $0 | ' | ' | ' | ' | ' | ' |
Loss Contingency, Number of Patents | ' | ' | 9 | 6 | 3 | ' | ' | ' |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | PST | Other | MAKO | Trauson | Customer relationship | Customer relationship | Customer relationship |
PST | MAKO | Trauson | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Purchase price paid | $120 | $172 | $1,679 | $751 | ' | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | ' | ' | ' | ' | '14 years | '9 years | '15 years |
Acquisitions_Acquisitions_Allo
Acquisitions Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of The Trauson Acquisition (Details) (USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | |
PST | ' |
Purchase price paid | $120 |
Inventory | 7 |
Other assets | 19 |
Liabilities | -33 |
Goodwill | 68 |
Other | ' |
Purchase price paid | 148 |
Inventory | 5 |
Other assets | 25 |
Liabilities | -32 |
Goodwill | 74 |
MAKO | ' |
Purchase price paid | 1,679 |
Inventory | 50 |
Other assets | 174 |
Liabilities | -277 |
Goodwill | 1,217 |
Trauson | ' |
Purchase price paid | 751 |
Inventory | 43 |
Other assets | 163 |
Liabilities | -87 |
Goodwill | 450 |
Customer relationship | PST | ' |
Identifiable intangible assets: | 33 |
Customer relationship | Other | ' |
Identifiable intangible assets: | 4 |
Customer relationship | MAKO | ' |
Identifiable intangible assets: | 91 |
Customer relationship | Trauson | ' |
Identifiable intangible assets: | 112 |
Trade name | PST | ' |
Identifiable intangible assets: | 0 |
Trade name | Other | ' |
Identifiable intangible assets: | 0 |
Trade name | MAKO | ' |
Identifiable intangible assets: | 24 |
Trade name | Trauson | ' |
Identifiable intangible assets: | 34 |
Developed technology & patents | PST | ' |
Identifiable intangible assets: | 26 |
Developed technology & patents | Other | ' |
Identifiable intangible assets: | 70 |
Developed technology & patents | MAKO | ' |
Identifiable intangible assets: | 231 |
Developed technology & patents | Trauson | ' |
Identifiable intangible assets: | 31 |
IPRD | PST | ' |
Identifiable intangible assets: | 0 |
IPRD | Other | ' |
Identifiable intangible assets: | 2 |
IPRD | MAKO | ' |
Identifiable intangible assets: | 169 |
IPRD | Trauson | ' |
Identifiable intangible assets: | $5 |
LongTerm_Debt_and_Credit_Facil2
Long-Term Debt and Credit Facilities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Document Period End Date | 31-Mar-14 | ' |
Commercial paper | $500 | ' |
Debt Instrument, Maturity | '397 days | ' |
Commercial paper | 300 | 0 |
Commercial Paper, weighted average interest rate | 0.30% | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 762 | ' |
Long-term debt, weighted-average interest rate | 2.70% | ' |
Unamortized Debt Issuance Expense | 15 | ' |
Debt Instrument, Fair Value Disclosure | 2,792 | 2,790 |
3.00% senior unsecured notes, due January 15, 2015 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ' |
Senior Unsecured Notes 2.00% due 2016 [Member] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ' |
1.30% senior unsecured notes, due April 1, 2018 | ' | ' |
Credit facility | 600 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | ' |
Debt Instrument, Unamortized Discount | 3 | ' |
4.375% senior unsecured notes, due January 15, 2020 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.38% | ' |
4.10% senior unsecured notes, due April 1, 2043 | ' | ' |
Credit facility | 400 | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | ' |
Debt Instrument, Unamortized Discount | $6 | ' |
Commercial paper | ' | ' |
Debt Instrument, Maturity | '13 days | ' |
LongTerm_Debt_and_Credit_Facil3
Long-Term Debt and Credit Facilities (Maturities Of Long-Term Debt Disclosures) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Commercial paper | $300 | $0 |
Other | ' | 25 |
Total debt | 3,064 | 2,764 |
Less current maturities | -820 | -25 |
Total long-term debt | 2,244 | 2,739 |
3.00% senior unsecured notes, due January 15, 2015 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | ' |
Senior unsecured notes repayable in year three | 500 | 500 |
4.375% senior unsecured notes, due January 15, 2020 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.38% | ' |
Senior unsecured notes repayable after year five | 498 | 498 |
Senior Unsecured Notes 2.00% due 2016 [Member] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | ' |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 749 | 749 |
1.30% senior unsecured notes, due April 1, 2018 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | ' |
Senior unsecured notes repayable in year four | 598 | 598 |
4.10% senior unsecured notes, due April 1, 2043 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.10% | ' |
Senior unsecured notes repayable after year five | $395 | $394 |
LongTerm_Debt_and_Credit_Facil4
Long-Term Debt and Credit Facilities Long-Term Debt and Credit Facilities (Parentheticals) (Details) | Mar. 31, 2014 |
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 $) | 3 Months Ended | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 |
Cash dividends declared, per share of common stock | $0.31 | $0.27 |
Stock Repurchased and Retired During Period, Shares | 0 | 0 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $683 | ' |
Restructuring_Charges_Narrativ
Restructuring Charges (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restructuring charges | $5 | $14 |
Historical Restructuring Cost Per Year, Minimum | 50 | ' |
Historical Restructuring Cost Per Year, Maximum | 75 | ' |
Severance and Related Costs | ' | ' |
Restructuring charges | 3 | ' |
Contractual Obligations and Other | ' | ' |
Restructuring charges | $2 | ' |
Company_Recorded_Restructuring
Company Recorded Restructuring Charges (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
January 1 Balance | $20 | ' |
Charges to earnings | 5 | 14 |
Cash paid | -8 | ' |
Other adjustments | -1 | ' |
March 31 Balance | 16 | ' |
Agent Conversions | ' | ' |
January 1 Balance | 2 | ' |
Cash paid | -1 | ' |
March 31 Balance | 1 | ' |
Severance and Related Costs | ' | ' |
January 1 Balance | 10 | ' |
Charges to earnings | 3 | ' |
Cash paid | -4 | ' |
Other adjustments | -1 | ' |
March 31 Balance | 8 | ' |
Contractual Obligations and Other | ' | ' |
January 1 Balance | 8 | ' |
Charges to earnings | 2 | ' |
Cash paid | -3 | ' |
Other adjustments | ' | ' |
March 31 Balance | $7 | ' |
Segment_Information_Sales_And_
Segment Information (Sales And Other Financial Information By Business Segment) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net sales | $2,305 | $2,190 |
Segment net earnings | 131 | 386 |
Acquisition and integration related charges | -13 | -17 |
Amortization of Intangible Assets, Net of Tax | -31 | -23 |
Restructuring and related charges | -10 | -11 |
Recall charges | -272 | -32 |
Regulatory matter charges | ' | -30 |
Tax Matters | -8 | ' |
Net earnings | 70 | 304 |
Reconstructive | ' | ' |
Net sales | 999 | 956 |
Segment net earnings | ' | 234 |
MedSurg | ' | ' |
Net sales | 886 | 837 |
Segment net earnings | ' | 161 |
Neurotechnology and Spine | ' | ' |
Net sales | 420 | 397 |
Segment net earnings | ' | 78 |
Total | ' | ' |
Segment net earnings | 480 | 473 |
Corporate and Other [Member] | ' | ' |
Segment net earnings | ($76) | ($56) |