Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
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 | 378,409,144 |
Consolidated_Statements_Of_Ear
Consolidated Statements Of Earnings (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $2,379 | $2,305 |
Cost of sales | 826 | 776 |
Gross profit | 1,553 | 1,529 |
Research, development and engineering expenses | 152 | 150 |
Selling, general and administrative expenses | 892 | 859 |
Recall charges | 54 | 344 |
Intangible asset amortization | 49 | 45 |
Total operating expenses | 1,147 | 1,398 |
Operating income | 406 | 131 |
Other income (expense), net | -29 | -24 |
Earnings before income taxes | 377 | 107 |
Income taxes | 153 | 37 |
Net earnings | $224 | $70 |
Net earnings per share of common stock: | ||
Basic net earnings per share of common stock | $0.59 | $0.19 |
Diluted net earnings per share of common stock | $0.58 | $0.18 |
Weighted-average shares outstanding - in millions: | ||
Basic | 378.9 | 378.2 |
Net effect of dilutive employee stock options | 4.6 | 4.4 |
Diluted | 383.5 | 382.6 |
Anti-dilutive shares excluded from the calculation of net effect of dilutive employee stock options | 0 | 2.5 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $224 | $70 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Marketable securities | 1 | 3 |
Pension plans | 13 | -1 |
Unrealized gains on designated hedges | 1 | -3 |
Financial statement translation | -282 | 37 |
Total other comprehensive (loss) income, net of tax | -267 | 36 |
Comprehensive (loss) income | ($43) | $106 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $1,674 | $1,795 |
Marketable securities | 2,589 | 3,205 |
Accounts receivable, less allowance of $57 ($59 in 2014) | 1,521 | 1,572 |
Inventories | ||
Materials and supplies | 260 | 248 |
Work in Process | 101 | 88 |
Finished Goods | 1,221 | 1,252 |
Total inventories | 1,582 | 1,588 |
Deferred income taxes | 894 | 989 |
Prepaid expenses and other current assets | 467 | 524 |
Total current assets | 8,727 | 9,673 |
Property, plant and equipment | ||
Land, buildings and improvements | 667 | 678 |
Machinery and equipment | 1,861 | 1,919 |
Total property, plant and equipment | 2,528 | 2,597 |
Less allowance for depreciation | 1,459 | 1,499 |
Net property, plant and equipment | 1,069 | 1,098 |
Other assets | ||
Goodwill | 4,099 | 4,186 |
Other intangibles, net | 1,960 | 2,018 |
Other | 725 | 738 |
Total assets | 16,580 | 17,713 |
Current liabilities | ||
Accounts payable | 333 | 329 |
Accrued compensation | 346 | 597 |
Income taxes | 288 | 333 |
Dividend payable | 131 | 131 |
Accrued recall expenses | 1,588 | 1,593 |
Accrued expenses and other liabilities | 784 | 754 |
Current maturities of debt | 225 | 727 |
Total current liabilities | 3,695 | 4,464 |
Long-term debt, excluding current maturities | 3,257 | 3,246 |
Other liabilities | 1,307 | 1,408 |
Shareholders' equity | ||
Common stock, $0.10 par value: Authorized 1 billion shares, outstanding: 378 million shares (378 million in 2014) | 38 | 38 |
Additional paid-in capital | 1,277 | 1,252 |
Retained earnings | 7,527 | 7,559 |
Accumulated other comprehensive income | -521 | -254 |
Total shareholders' equity | 8,321 | 8,595 |
Total liabilities & shareholders' equity | $16,580 | $17,713 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $57 | $59 |
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 Loss |
Balances at December 31, 2014 at Dec. 31, 2014 | $8,595,000,000 | $38,000,000 | $1,252,000,000 | $7,559,000,000 | ($254,000,000) |
Net earnings | 224,000,000 | 224,000,000 | |||
Other comprehensive loss | -267,000,000 | -267,000,000 | |||
Issuance of 1.2 million shares of common stock under stock option and benefit plans, including $37 excess income tax benefit | 7,000,000 | 7,000,000 | |||
Repurchase and retirement of 1.4 million shares of common stock | -130,000,000 | -5,000,000 | -125,000,000 | ||
Share-based compensation | 23,000,000 | 23,000,000 | |||
Cash dividends declared of $0.345 per share of common stock | -131,000,000 | -131,000,000 | |||
Balances at March 31, 2015 at Mar. 31, 2015 | $8,321,000,000 | $38,000,000 | $1,277,000,000 | $7,527,000,000 | ($521,000,000) |
Consolidated_Statement_Of_Shar1
Consolidated Statement Of Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock under stock option and benefit plans, shares | 1.2 |
Issuance of common stock under stock option and benefit plans, excess income tax benefit | $37 |
Repurchase and retirement of common stock, shares | 1.4 |
Cash dividends declared, per share of common stock | $0.35 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net earnings | $224 | $70 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 45 | 46 |
Amortization of intangible assets | 49 | 45 |
Share-based compensation | 23 | 21 |
Gross recall charges | 54 | 344 |
Sale of inventory stepped up to fair value at acquisition | 7 | 5 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 12 | 93 |
Inventories | -42 | -61 |
Accounts payable | 8 | 30 |
Accrued expenses and other liabilities | -142 | -226 |
Recall related payments | -19 | -24 |
Income taxes | 27 | -56 |
Other | 134 | -78 |
Net cash provided by operating activities | 380 | 209 |
Investing activities | ||
Acquisitions, net of cash acquired | -84 | -272 |
Purchases of marketable securities | -631 | -1,017 |
Proceeds from sales of marketable securities | 1,087 | 1,008 |
Purchases of property, plant and equipment | -46 | -70 |
Net cash provided by (used in) investing activities | 326 | -351 |
Financing activities | ||
Proceeds from borrowings | 581 | 344 |
Payments on borrowings | -1,081 | -55 |
Dividends paid | -131 | -115 |
Repurchase and retirement of common stock | -130 | 0 |
Other financing | 27 | 9 |
Net cash (used in) provided by financing activities | -734 | 183 |
Effect of exchange rate changes on cash and cash equivalents | -93 | 1 |
Change in cash and cash equivalents | ($121) | $42 |
Basis_Of_Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 2014. 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. However, the results of operations included in such financial statements may not necessarily be indicative of annual results. | |
To conform with the current year presentation, certain immaterial amounts previously reported as selling, general and administrative expenses have been reclassified to cost of sales. | |
New Accounting Pronouncements Not Yet Adopted | |
In May 2014 the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. We will adopt the standard on January 1, 2017. We are still evaluating the impact, if any, that the standard will have on our financial statements. | |
No other new accounting pronouncement issued or effective during the period had or is expected to have a material impact on the Consolidated Financial Statements. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Notes) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | ||||||||
Financial assets and liabilities carried at fair value are 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 our 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 taking into account our credit risk and that of our counterparties. Foreign currency exchange contracts and interest rate swaps are included in Level 2 as we use inputs other than quoted prices that are observable for the asset or liability. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis. The fair value of our Level 3 liabilities represents milestone payments for acquisitions and is calculated based on the net present value of expected cash flows utilizing 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. There were no significant transfers into or out of any level between December 31, 2014 and March 31, 2015. | |||||||||
We remeasure our assets and liabilities each reporting period and record the changes in fair value from changes in probability of occurrence in general and administrative expense and the changes in time value of money in other income (expense). During the period we evaluated but did not change our unobservable input assumptions and fair value techniques used in measuring the fair value of our financial assets or liabilities from those disclosed in our Annual Report on Form 10-K for 2014. | |||||||||
Our valuation of our assets and liabilities measured at fair value is: | |||||||||
March | December | ||||||||
2015 | 2014 | ||||||||
Cash and cash equivalents | $ | 1,674 | $ | 1,795 | |||||
Trading marketable securities | 80 | 80 | |||||||
Level 1 - Assets | $ | 1,754 | $ | 1,875 | |||||
Available-for-sale marketable securities | |||||||||
Corporate and asset-backed debt securities | 1,263 | 1,525 | |||||||
Foreign government debt securities | 589 | 726 | |||||||
United States agency debt securities | 259 | 382 | |||||||
United States treasury debt securities | 423 | 474 | |||||||
Certificates of deposit | 66 | 110 | |||||||
Other | 4 | 12 | |||||||
Total available-for-sale marketable securities | 2,604 | 3,229 | |||||||
Foreign currency exchange forward contracts | 38 | 32 | |||||||
Interest rate swap asset | 21 | 10 | |||||||
Level 2 - Assets | 2,663 | 3,271 | |||||||
Total assets measured at fair value | $ | 4,417 | $ | 5,146 | |||||
Deferred compensation arrangements | 80 | 80 | |||||||
Level 1 - Liabilities | 80 | 80 | |||||||
Foreign currency exchange forward contracts | 41 | 12 | |||||||
Interest rate swap liability | 3 | — | |||||||
Level 2 - Liabilities | 44 | 12 | |||||||
Contingent consideration | |||||||||
Beginning Balance | 48 | 59 | |||||||
Losses included in earnings | 1 | 4 | |||||||
Settlements | — | (15 | ) | ||||||
Balance at the end of the period | 49 | 48 | |||||||
Level 3 - Liabilities | 49 | 48 | |||||||
Total liabilities measured at fair value | $ | 173 | $ | 140 | |||||
The cost and estimated fair value of available-for-sale marketable securities at March 31, 2015 by contractual maturity are: | |||||||||
Cost | Estimated | ||||||||
Fair Value | |||||||||
Due in one year or less | $ | 403 | $ | 403 | |||||
Due after one year through three years | 1,893 | 1,897 | |||||||
Due after three years | 303 | 304 | |||||||
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, 2015. | |||||||||
Upon the sale of a security classified as available-for-sale, the security’s specific unrealized gain (loss) is reclassified out of accumulated other comprehensive income (AOCI) into earnings based on the specific identification method. | |||||||||
The total of interest and marketable securities income was $6 and $6 for the three-month period March 31, 2015 and 2014, respectively, and is included in other income (expense). | |||||||||
A summary of our marketable securities follows: | |||||||||
March | December | ||||||||
2015 | 2014 | ||||||||
Available for Sale Securities: | |||||||||
Amortized Cost | |||||||||
Corporate and asset-backed debt securities | $ | 1,260 | $ | 1,523 | |||||
Foreign government debt securities | 588 | 725 | |||||||
United States agency debt securities | 258 | 382 | |||||||
United States treasury debt securities | 423 | 474 | |||||||
Certificates of deposit | 66 | 110 | |||||||
Other | 4 | 12 | |||||||
Gross Unrealized Gains | |||||||||
Corporate and asset-backed debt securities | $ | 3 | $ | 3 | |||||
Foreign government debt securities | 1 | 2 | |||||||
United States agency debt securities | 1 | — | |||||||
United States treasury debt securities | — | — | |||||||
Certificates of deposit | — | — | |||||||
Other | — | — | |||||||
Gross Unrealized Losses | |||||||||
Corporate and asset-backed debt securities | $ | — | $ | (1 | ) | ||||
Foreign government debt securities | — | (1 | ) | ||||||
United States agency debt securities | — | — | |||||||
United States treasury debt securities | — | — | |||||||
Certificates of deposit | — | — | |||||||
Other | — | — | |||||||
Estimated Fair Value | |||||||||
Corporate and asset-backed debt securities | $ | 1,263 | $ | 1,525 | |||||
Foreign government debt securities | 589 | 726 | |||||||
United States agency debt securities | 259 | 382 | |||||||
United States treasury debt securities | 423 | 474 | |||||||
Certificates of deposit | 66 | 110 | |||||||
Other | 4 | 12 | |||||||
Total available-for-sale marketable securities | $ | 2,604 | $ | 3,229 | |||||
Trading marketable securities | 80 | 80 | |||||||
Total marketable securities | $ | 2,684 | $ | 3,309 | |||||
Reported as: | |||||||||
Current assets- marketable securities | $ | 2,589 | $ | 3,205 | |||||
Current assets- prepaid expenses and other current assets | 15 | 24 | |||||||
Noncurrent assets- other | 80 | 80 | |||||||
The fair value and gross unrealized losses 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, 2015 are: | |||||||||
Number of Investments | Fair Value | Unrealized Losses | |||||||
Less than 12 months | |||||||||
Corporate and asset-backed | 664 | $ | 1,251 | $ | — | ||||
Foreign Government | 131 | 582 | — | ||||||
United States Agency | 92 | 259 | — | ||||||
Other | 122 | 492 | — | ||||||
1,009 | $ | 2,584 | $ | — | |||||
Total | |||||||||
Corporate and asset-backed | 671 | $ | 1,263 | $ | — | ||||
Foreign Government | 133 | 589 | — | ||||||
United States Agency | 92 | 259 | — | ||||||
Other | 122 | 493 | — | ||||||
1,018 | $ | 2,604 | $ | — | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
Changes in AOCI for the three-month period March 31, 2015: | ||||||||||||||||
Marketable Securities | Pension Plans | Hedges | Financial Statement Translation | Total | ||||||||||||
Beginning | $ | 3 | $ | (136 | ) | $ | 13 | $ | (134 | ) | $ | (254 | ) | |||
OCI before reclassifications | 4 | 15 | (1 | ) | (282 | ) | (264 | ) | ||||||||
Tax (benefit) expense on OCI | (1 | ) | (3 | ) | 2 | — | (2 | ) | ||||||||
Reclassifications out of AOCI | (2 | ) | 1 | — | — | (1 | ) | |||||||||
Net current period OCI | 1 | 13 | 1 | (282 | ) | (267 | ) | |||||||||
Ending | $ | 4 | $ | (123 | ) | $ | 14 | $ | (416 | ) | $ | (521 | ) | |||
Reclassifications out of AOCI for the three-month periods March 31: | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Marketable Securities | ||||||||||||||||
Other (income) expense | $ | (2 | ) | $ | (2 | ) | ||||||||||
Tax expense (benefit) | — | — | ||||||||||||||
Net of tax | (2 | ) | (2 | ) | ||||||||||||
Pension Plans | ||||||||||||||||
Cost of Sales | 2 | 2 | ||||||||||||||
Tax expense (benefit) | (1 | ) | — | |||||||||||||
Net of tax | 1 | 2 | ||||||||||||||
Hedges | ||||||||||||||||
Cost of Sales | — | (2 | ) | |||||||||||||
Tax expense (benefit) | — | 1 | ||||||||||||||
Net of tax | — | (1 | ) | |||||||||||||
Total, net of tax | $ | (1 | ) | $ | (1 | ) |
Derivative_Instruments_Derivat
Derivative Instruments Derivative Instruments (Notes) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS | ||||||||||||
We use operational and economic hedges as well as foreign currency exchange forward contracts and interest rate derivative instruments to manage the impact of currency exchange on earnings and cash flow. | |||||||||||||
Foreign Exchange Forward Contract Derivatives | |||||||||||||
During the period we did not change our hedging strategies or objectives from those disclosed in our Annual Report on Form 10-K for 2014. | |||||||||||||
The gross notional, maximum term and gross fair value amounts of foreign exchange forward contract derivatives designated and non-designated as hedging instruments are: | |||||||||||||
Designated | Non-Designated | Total | |||||||||||
March 31, 2015 | |||||||||||||
Gross Notional Amount | $ | 414 | $ | 2,990 | $ | 3,404 | |||||||
Maximum term in days | 546 | ||||||||||||
Fair Value | |||||||||||||
Other Current Assets | $ | 19 | $ | 17 | $ | 36 | |||||||
Other Noncurrent Assets | 2 | — | 2 | ||||||||||
Other Current Liabilities | 4 | 36 | 40 | ||||||||||
Other Noncurrent Liabilities | 1 | — | 1 | ||||||||||
$ | 16 | $ | (19 | ) | $ | (3 | ) | ||||||
December 31, 2014 | |||||||||||||
Gross Notional Amount | $ | 357 | $ | 2,085 | $ | 2,442 | |||||||
Maximum term in days | 546 | ||||||||||||
Fair Value | |||||||||||||
Other Current Assets | $ | 18 | $ | 12 | $ | 30 | |||||||
Other Noncurrent Assets | 2 | — | 2 | ||||||||||
Other Current Liabilities | — | 12 | 12 | ||||||||||
$ | 20 | $ | — | $ | 20 | ||||||||
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 net currency exchange rate gains (losses) for both designated and non-designated derivative instruments for the three-month periods March 31: | |||||||||||||
Recorded In: | 2015 | 2014 | |||||||||||
Cost of goods sold | $ | — | $ | 2 | |||||||||
Other income (expense) | (4 | ) | (6 | ) | |||||||||
Total | $ | (4 | ) | $ | (4 | ) | |||||||
Pretax gains on derivatives designated as hedges that are expected to be reclassified from AOCI into earnings within the next twelve months is $20. This reclassification is primarily due to the sale of inventory that includes previously hedged purchases. There have been no ineffective portions of derivatives that have resulted in gains or losses in any periods presented. | |||||||||||||
Forecasted Debt Issuance Interest Rate Risk | |||||||||||||
Forward starting interest rate derivative instruments designated as cash flow hedges are used to manage the exposure to interest rate volatility with regard to future issuances of debt. The effective portion of the gains or losses on the forward starting interest rate derivative instrument that is designated and qualifies as a cash flow hedge is reported as a component of AOCI. Beginning in the period in which the planned debt issuance occurs and the related derivative instrument is terminated, the effective portion of the gains or losses is then reclassified into interest expense, net over the term of the related debt. | |||||||||||||
At March 31, 2015 we had interest rate swaps with a notional amount of $375 designated as forward starting interest rate swaps in anticipation of planned debt issuances. The market value of outstanding interest rate swap agreements at March 31, 2015 was $3, which is recorded in other long-term liabilities with an offsetting amount recorded in AOCI in the consolidated balance sheet. No hedge ineffectiveness was recorded as a result of these cash flow hedges for the three-month period March 31, 2015. | |||||||||||||
Fair Value Hedges | |||||||||||||
Interest rate derivative instruments designated as fair value hedges are used to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. | |||||||||||||
At March 31, 2015 we had interest rate swaps in gross notional amounts of $500 designated as fair value hedges of underlying fixed rate obligations representing a portion of our $600 senior unsecured notes due in 2024. The market value of outstanding interest rate swap agreements at March 31, 2015 was a realized gain of $21, which is recorded in other assets with an offsetting realized loss of $21 on the fair value of the underlying fixed rate obligation recorded in long-term debt in the consolidated balance sheet. No hedge ineffectiveness was recorded as a result of these fair value hedges for the three-month period March 31, 2015. |
Acquisitions
Acquisitions | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||
Acquisitions | ACQUISITIONS | ||||||||||||||||
In January 2015 we completed the acquisition of certain assets of CHG Hospital Beds, Inc. (CHG) in an all cash transaction. CHG designs, manufactures and markets a series of low-height hospital beds and related accessories. This acquisition enhances our product offerings within our MedSurg segment. The acquisition is included in the "Other" column in the table below. | |||||||||||||||||
In 2014 we completed the acquisition of certain assets of Small Bone Innovations, Inc. (SBi) for an aggregate purchase price of approximately $358, the acquisition of Berchtold Holding, AG (Berchtold) for an aggregate purchase price of approximately $184 and the acquisition of Patient Safety Technologies, Inc. (PST) for an aggregate purchase price of $120. The acquired net assets of other business acquisitions completed in 2014 are in the "Other" column in the table below. | |||||||||||||||||
For the PST and "Other" acquisitions in 2014, the measurement periods have been completed and revisions to our original estimates include increases to liabilities of $2 and $8 and decreases to goodwill of $2 and $8, respectively. The purchase price allocations for CHG, SBi, Berchtold and "Other" acquisitions in 2014 are based upon preliminary valuations, and our estimates and assumptions are subject to change within the measurement period as the valuations are finalized. We are in the process of verifying data and information related to these acquisitions to finalize the recording of identifiable intangible assets, deferred income taxes and goodwill. Goodwill acquired associated with the SBi and CHG acquisitions are deductible for tax purposes. | |||||||||||||||||
The effects of all the acquisitions described above are included in our Consolidated Financial Statements prospectively from the close of the respective acquisition. Pro forma consolidated results of operations for the three-month periods March 31, 2015 and 2014 would not differ significantly as a result of these acquisitions. | |||||||||||||||||
The allocation of the purchase prices of each acquisition to the acquired net assets is as follows: | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Other | SBi | Berchtold | PST | Other | |||||||||||||
Purchase price paid | $ | 70 | $ | 358 | $ | 184 | $ | 120 | $ | 216 | |||||||
Tangible assets acquired: | |||||||||||||||||
Cash | — | — | 12 | — | — | ||||||||||||
Inventory | 5 | 34 | 22 | 7 | 5 | ||||||||||||
Other assets | 12 | 4 | 38 | 19 | 25 | ||||||||||||
Liabilities | (4 | ) | (2 | ) | (45 | ) | (31 | ) | (29 | ) | |||||||
Intangible assets: | |||||||||||||||||
Customer relationship | 9 | 19 | 11 | 33 | 5 | ||||||||||||
Trade name | 1 | — | 7 | — | — | ||||||||||||
Developed technology & patents | 26 | 82 | 32 | 26 | 115 | ||||||||||||
Non-compete agreements | 2 | — | — | — | — | ||||||||||||
IPRD | — | — | — | — | 2 | ||||||||||||
Goodwill | 19 | 221 | 107 | 66 | 93 | ||||||||||||
$ | 70 | $ | 358 | $ | 184 | $ | 120 | $ | 216 | ||||||||
Weighted-average life of intangible assets | 11 | 12 | 8 | 14 | 12 | ||||||||||||
Intangible asset amortization expense was $49 and $45 for the three-month periods March 31, 2015 and 2014, respectively. | |||||||||||||||||
The estimated amortization expense for the next five years is: | |||||||||||||||||
Remainder of 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||
Amortization expense | $ | 150 | $ | 170 | $ | 168 | $ | 152 | $ | 135 | |||||||
Contingencies_and_Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | CONTINGENCIES AND COMMITMENTS |
We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product, labor and intellectual property, and other matters that are more fully described below. The outcomes of these matters will generally not be known for prolonged periods of time. In certain of the legal proceedings, the claimants seek damages, as well as other compensatory and equitable relief, that could result in the payment of significant claims and settlements and/or the imposition of injunctions or other equitable relief. For legal matters for which management 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, is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those estimated by management, additional expense may be incurred, which could unfavorably affect future operating results. We are 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 June 2012 we voluntarily recalled our Rejuvenate and ABG II Modular-Neck hip stems and terminated global distribution of these hip products. Product liability lawsuits relating to this voluntary recall have been filed against us. On November 3, 2014 we announced that we had entered into a settlement agreement to compensate eligible United States patients who had revision surgery to replace their Rejuvenate and/or ABG II Modular-Neck hip stem prior to that date. We continue to offer support for recall-related care and reimburse patients who are not eligible to enroll in the settlement program for testing and treatment services, including any necessary revision surgeries. In addition, some lawsuits will remain and we will continue to defend against them. Based on the information that has been received, the actuarially determined range of probable loss to resolve this entire matter on a global basis is estimated to be approximately $1,587 ($1,766 before $179 of third-party insurance recoveries) to $2,510. In the three-month period March 31, 2015 we recorded charges to earnings of $54 representing the excess of the minimum of the range over the previously recorded reserves. The final outcome of this matter is dependent on many factors that are difficult to predict including the number of enrollees in the settlement program and total awards to them, the number and costs of patients not eligible for the settlement program who seek testing and treatment services and require revision surgery and the number and actual costs to resolve the remaining lawsuits. Accordingly, the ultimate cost to resolve this entire matter globally 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 2013, following a jury trial favorable to us, the trial judge entered a final judgment that among other things, awarded us damages of $76 and ordered Zimmer to pay us enhanced damages. Zimmer appealed this ruling. In December 2014 the Federal Circuit affirmed the damages awarded to us, reversed the order for enhanced damages and remanded the issue of attorney fees to the trial court. We have filed for a petition for rehearing en banc on the issue of enhanced damages. Following the conclusion of the proceedings at the Federal Circuit, each party may seek Supreme Court review. We have not recorded a contingent gain related to this matter. | |
In April 2011 Hill-Rom Company, Inc. and affiliated entities (Hill-Rom) brought a lawsuit against us alleging infringement under United States patent laws with respect to nine patents related to electrical network communications for hospital beds. On March 31, 2015, the court granted the parties’ joint motion to dismiss with prejudice the claims and counterclaims associated with three of these patents. The case has been stayed with respect to the remaining six patents, which currently are under reexamination by the United States Patent Office. The ultimate resolution of this matter cannot be predicted and it is not possible at this time for us to estimate any probable loss or range of probable losses. However, the ultimate result could have a material adverse effect on our financial position, results of operations and cash flows. |
Debt_and_Credit_Facilities
Debt and Credit Facilities | 3 Months Ended |
Mar. 31, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES |
During the three-month period March 31, 2015, we repaid $500 of all our senior unsecured notes that were due on January 15, 2015. Our commercial paper program allows us to have a maximum of $1,250 in commercial paper outstanding, with maturities up to 397 days from the date of issuance. At March 31, 2015 outstanding commercial paper totaled $200, the weighted-average original maturity of the commercial paper outstanding was approximately 40 days and the weighted-average interest rate was 0.21%. | |
Certain of our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants at March 31, 2015. We have lines of credit, issued by various financial institutions, available to fund our day-to-day operating needs. At March 31, 2015 we had $1,279 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 March 31, 2015. | |
At March 31, 2015 the total unamortized debt issuance costs incurred in connection with our outstanding notes were $20. The fair value of long-term debt (excluding the interest rate hedge) at March 31, 2015 and December 31, 2014 was $3,352 and $3,811, respectively, based on the quoted interest rates for similar types and amounts of borrowing agreements. |
Capital_Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2015 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | CAPITAL STOCK |
In February 2015 we declared a quarterly dividend of $0.345 per share, payable April 30, 2015 to shareholders of record at the close of business on March 31, 2015. | |
In March 2015 we announced that our Board of Directors had authorized us to purchase up to $2,000 of our common stock (the 2015 Repurchase program). In 2012 and 2011, we announced that our Board of Directors had authorized us to purchase up to $405 and $500, respectively, of our common stock (the 2012 and 2011 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. | |
In the three-month period March 31, 2015, we repurchased 1.4 million shares at a cost of $130 under the 2011 Repurchase Program. At March 31, 2015 the maximum dollar value of shares that may yet be purchased was $2,000 under the 2015 Repurchase program, $405 under the 2012 Repurchase program and $48 under the 2011 Repurchase Program. At March 31, 2015 the maximum dollar value of shares that may be purchased under the authorized Repurchase Programs was $2,453. |
Income_Taxes_Notes
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES |
Our effective tax rates for the three-month periods March 31, 2015 and 2014 were 40.6% and 34.5% respectively. The increase in the effective tax rate was primarily due to certain discrete items in 2015 related to the establishment of the European regional headquarters and other discrete tax matters. |
Segment_Information
Segment Information | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Segment Information | SEGMENT INFORMATION | ||||||
Net sales and net earnings by business segment for the three-month periods March 31 are: | |||||||
2015 | 2014 | ||||||
Orthopaedics | $ | 1,023 | $ | 999 | |||
MedSurg | 927 | 886 | |||||
Neurotechnology and Spine | 429 | 420 | |||||
Net sales | $ | 2,379 | $ | 2,305 | |||
Orthopaedics | 254 | 249 | |||||
MedSurg | 163 | 145 | |||||
Neurotechnology and Spine | 87 | 86 | |||||
Segment net earnings | $ | 504 | $ | 480 | |||
Less: other (net of income taxes) | |||||||
Corporate and other | (80 | ) | (76 | ) | |||
Acquisition and integration related charges | (13 | ) | (13 | ) | |||
Amortization of intangible assets | (35 | ) | (31 | ) | |||
Restructuring and related charges | (19 | ) | (10 | ) | |||
Recall charges | (49 | ) | (272 | ) | |||
Tax matters | (84 | ) | (8 | ) | |||
Net earnings | $ | 224 | $ | 70 | |||
Other than assets associated with the acquisitions that are discussed in greater detail in Note 4, there were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for 2014. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Our valuation of our assets and liabilities measured at fair value is: | ||||||||
March | December | ||||||||
2015 | 2014 | ||||||||
Cash and cash equivalents | $ | 1,674 | $ | 1,795 | |||||
Trading marketable securities | 80 | 80 | |||||||
Level 1 - Assets | $ | 1,754 | $ | 1,875 | |||||
Available-for-sale marketable securities | |||||||||
Corporate and asset-backed debt securities | 1,263 | 1,525 | |||||||
Foreign government debt securities | 589 | 726 | |||||||
United States agency debt securities | 259 | 382 | |||||||
United States treasury debt securities | 423 | 474 | |||||||
Certificates of deposit | 66 | 110 | |||||||
Other | 4 | 12 | |||||||
Total available-for-sale marketable securities | 2,604 | 3,229 | |||||||
Foreign currency exchange forward contracts | 38 | 32 | |||||||
Interest rate swap asset | 21 | 10 | |||||||
Level 2 - Assets | 2,663 | 3,271 | |||||||
Total assets measured at fair value | $ | 4,417 | $ | 5,146 | |||||
Deferred compensation arrangements | 80 | 80 | |||||||
Level 1 - Liabilities | 80 | 80 | |||||||
Foreign currency exchange forward contracts | 41 | 12 | |||||||
Interest rate swap liability | 3 | — | |||||||
Level 2 - Liabilities | 44 | 12 | |||||||
Contingent consideration | |||||||||
Beginning Balance | 48 | 59 | |||||||
Losses included in earnings | 1 | 4 | |||||||
Settlements | — | (15 | ) | ||||||
Balance at the end of the period | 49 | 48 | |||||||
Level 3 - Liabilities | 49 | 48 | |||||||
Total liabilities measured at fair value | $ | 173 | $ | 140 | |||||
Available-for-sale Securities | The cost and estimated fair value of available-for-sale marketable securities at March 31, 2015 by contractual maturity are: | ||||||||
Cost | Estimated | ||||||||
Fair Value | |||||||||
Due in one year or less | $ | 403 | $ | 403 | |||||
Due after one year through three years | 1,893 | 1,897 | |||||||
Due after three years | 303 | 304 | |||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The total of interest and marketable securities income was $6 and $6 for the three-month period March 31, 2015 and 2014, respectively, and is included in other income (expense). | ||||||||
A summary of our marketable securities follows: | |||||||||
March | December | ||||||||
2015 | 2014 | ||||||||
Available for Sale Securities: | |||||||||
Amortized Cost | |||||||||
Corporate and asset-backed debt securities | $ | 1,260 | $ | 1,523 | |||||
Foreign government debt securities | 588 | 725 | |||||||
United States agency debt securities | 258 | 382 | |||||||
United States treasury debt securities | 423 | 474 | |||||||
Certificates of deposit | 66 | 110 | |||||||
Other | 4 | 12 | |||||||
Gross Unrealized Gains | |||||||||
Corporate and asset-backed debt securities | $ | 3 | $ | 3 | |||||
Foreign government debt securities | 1 | 2 | |||||||
United States agency debt securities | 1 | — | |||||||
United States treasury debt securities | — | — | |||||||
Certificates of deposit | — | — | |||||||
Other | — | — | |||||||
Gross Unrealized Losses | |||||||||
Corporate and asset-backed debt securities | $ | — | $ | (1 | ) | ||||
Foreign government debt securities | — | (1 | ) | ||||||
United States agency debt securities | — | — | |||||||
United States treasury debt securities | — | — | |||||||
Certificates of deposit | — | — | |||||||
Other | — | — | |||||||
Estimated Fair Value | |||||||||
Corporate and asset-backed debt securities | $ | 1,263 | $ | 1,525 | |||||
Foreign government debt securities | 589 | 726 | |||||||
United States agency debt securities | 259 | 382 | |||||||
United States treasury debt securities | 423 | 474 | |||||||
Certificates of deposit | 66 | 110 | |||||||
Other | 4 | 12 | |||||||
Total available-for-sale marketable securities | $ | 2,604 | $ | 3,229 | |||||
Trading marketable securities | 80 | 80 | |||||||
Total marketable securities | $ | 2,684 | $ | 3,309 | |||||
Reported as: | |||||||||
Current assets- marketable securities | $ | 2,589 | $ | 3,205 | |||||
Current assets- prepaid expenses and other current assets | 15 | 24 | |||||||
Noncurrent assets- other | 80 | 80 | |||||||
Investments Classified by Contractual Maturity Date | The fair value and gross unrealized losses 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, 2015 are: | ||||||||
Number of Investments | Fair Value | Unrealized Losses | |||||||
Less than 12 months | |||||||||
Corporate and asset-backed | 664 | $ | 1,251 | $ | — | ||||
Foreign Government | 131 | 582 | — | ||||||
United States Agency | 92 | 259 | — | ||||||
Other | 122 | 492 | — | ||||||
1,009 | $ | 2,584 | $ | — | |||||
Total | |||||||||
Corporate and asset-backed | 671 | $ | 1,263 | $ | — | ||||
Foreign Government | 133 | 589 | — | ||||||
United States Agency | 92 | 259 | — | ||||||
Other | 122 | 493 | — | ||||||
1,018 | $ | 2,604 | $ | — | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Changes in AOCI for the three-month period March 31, 2015: | |||||||||||||||
Marketable Securities | Pension Plans | Hedges | Financial Statement Translation | Total | ||||||||||||
Beginning | $ | 3 | $ | (136 | ) | $ | 13 | $ | (134 | ) | $ | (254 | ) | |||
OCI before reclassifications | 4 | 15 | (1 | ) | (282 | ) | (264 | ) | ||||||||
Tax (benefit) expense on OCI | (1 | ) | (3 | ) | 2 | — | (2 | ) | ||||||||
Reclassifications out of AOCI | (2 | ) | 1 | — | — | (1 | ) | |||||||||
Net current period OCI | 1 | 13 | 1 | (282 | ) | (267 | ) | |||||||||
Ending | $ | 4 | $ | (123 | ) | $ | 14 | $ | (416 | ) | $ | (521 | ) | |||
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI for the three-month periods March 31: | |||||||||||||||
2015 | 2014 | |||||||||||||||
Marketable Securities | ||||||||||||||||
Other (income) expense | $ | (2 | ) | $ | (2 | ) | ||||||||||
Tax expense (benefit) | — | — | ||||||||||||||
Net of tax | (2 | ) | (2 | ) | ||||||||||||
Pension Plans | ||||||||||||||||
Cost of Sales | 2 | 2 | ||||||||||||||
Tax expense (benefit) | (1 | ) | — | |||||||||||||
Net of tax | 1 | 2 | ||||||||||||||
Hedges | ||||||||||||||||
Cost of Sales | — | (2 | ) | |||||||||||||
Tax expense (benefit) | — | 1 | ||||||||||||||
Net of tax | — | (1 | ) | |||||||||||||
Total, net of tax | $ | (1 | ) | $ | (1 | ) |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The gross notional, maximum term and gross fair value amounts of foreign exchange forward contract derivatives designated and non-designated as hedging instruments are: | ||||||||||||
Designated | Non-Designated | Total | |||||||||||
March 31, 2015 | |||||||||||||
Gross Notional Amount | $ | 414 | $ | 2,990 | $ | 3,404 | |||||||
Maximum term in days | 546 | ||||||||||||
Fair Value | |||||||||||||
Other Current Assets | $ | 19 | $ | 17 | $ | 36 | |||||||
Other Noncurrent Assets | 2 | — | 2 | ||||||||||
Other Current Liabilities | 4 | 36 | 40 | ||||||||||
Other Noncurrent Liabilities | 1 | — | 1 | ||||||||||
$ | 16 | $ | (19 | ) | $ | (3 | ) | ||||||
December 31, 2014 | |||||||||||||
Gross Notional Amount | $ | 357 | $ | 2,085 | $ | 2,442 | |||||||
Maximum term in days | 546 | ||||||||||||
Fair Value | |||||||||||||
Other Current Assets | $ | 18 | $ | 12 | $ | 30 | |||||||
Other Noncurrent Assets | 2 | — | 2 | ||||||||||
Other Current Liabilities | — | 12 | 12 | ||||||||||
$ | 20 | $ | — | $ | 20 | ||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The net currency exchange rate gains (losses) for both designated and non-designated derivative instruments for the three-month periods March 31: | ||||||||||||
Recorded In: | 2015 | 2014 | |||||||||||
Cost of goods sold | $ | — | $ | 2 | |||||||||
Other income (expense) | (4 | ) | (6 | ) | |||||||||
Total | $ | (4 | ) | $ | (4 | ) |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The allocation of the purchase prices of each acquisition to the acquired net assets is as follows: | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Other | SBi | Berchtold | PST | Other | |||||||||||||
Purchase price paid | $ | 70 | $ | 358 | $ | 184 | $ | 120 | $ | 216 | |||||||
Tangible assets acquired: | |||||||||||||||||
Cash | — | — | 12 | — | — | ||||||||||||
Inventory | 5 | 34 | 22 | 7 | 5 | ||||||||||||
Other assets | 12 | 4 | 38 | 19 | 25 | ||||||||||||
Liabilities | (4 | ) | (2 | ) | (45 | ) | (31 | ) | (29 | ) | |||||||
Intangible assets: | |||||||||||||||||
Customer relationship | 9 | 19 | 11 | 33 | 5 | ||||||||||||
Trade name | 1 | — | 7 | — | — | ||||||||||||
Developed technology & patents | 26 | 82 | 32 | 26 | 115 | ||||||||||||
Non-compete agreements | 2 | — | — | — | — | ||||||||||||
IPRD | — | — | — | — | 2 | ||||||||||||
Goodwill | 19 | 221 | 107 | 66 | 93 | ||||||||||||
$ | 70 | $ | 358 | $ | 184 | $ | 120 | $ | 216 | ||||||||
Weighted-average life of intangible assets | 11 | 12 | 8 | 14 | 12 | ||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense for the next five years is: | ||||||||||||||||
Remainder of 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||
Amortization expense | $ | 150 | $ | 170 | $ | 168 | $ | 152 | $ | 135 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Sales and Other Financial Information by Business Segment | Net sales and net earnings by business segment for the three-month periods March 31 are: | ||||||
2015 | 2014 | ||||||
Orthopaedics | $ | 1,023 | $ | 999 | |||
MedSurg | 927 | 886 | |||||
Neurotechnology and Spine | 429 | 420 | |||||
Net sales | $ | 2,379 | $ | 2,305 | |||
Orthopaedics | 254 | 249 | |||||
MedSurg | 163 | 145 | |||||
Neurotechnology and Spine | 87 | 86 | |||||
Segment net earnings | $ | 504 | $ | 480 | |||
Less: other (net of income taxes) | |||||||
Corporate and other | (80 | ) | (76 | ) | |||
Acquisition and integration related charges | (13 | ) | (13 | ) | |||
Amortization of intangible assets | (35 | ) | (31 | ) | |||
Restructuring and related charges | (19 | ) | (10 | ) | |||
Recall charges | (49 | ) | (272 | ) | |||
Tax matters | (84 | ) | (8 | ) | |||
Net earnings | $ | 224 | $ | 70 | |||
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Marketable Securities, Gain (Loss) | $6,000,000 | $6,000,000 |
Asset-backed Securities | Standard & Poor's, A Rating | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Percentage Of Company's Investments With Credit Quality Rating Less Than Single A And A2 | 1.00% | |
Fitch, A Rating | Asset-backed Securities | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
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 $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Available-for-sale Securities, Current | $2,589 | $3,205 |
Investments Fair Value Disclosure | 4,417 | 5,146 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | ||
Balance at the end of the period | 173 | 140 |
Total liabilities measured at fair value | 173 | 140 |
Trading Securities | ||
Trading marketable securities | 80 | 80 |
Fair Value, Inputs, Level 1 | ||
Cash and cash equivalents | 1,674 | 1,795 |
ASSETS | ||
Investments Fair Value Disclosure | 1,754 | 1,875 |
Fair Value Liabilities Measured On Recurring Basis Deferred Compensation Plan Liabilities | 80 | 80 |
Liabilities | ||
Liabilities, Fair Value Disclosure, Recurring | 80 | 80 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | ||
ASSETS | ||
Available-for-sale Securities, Current | 2,604 | 3,229 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Asset-backed Securities | ||
ASSETS | ||
Available-for-sale Securities, Current | 1,263 | 1,525 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Foreign Government Debt Securities | ||
ASSETS | ||
Available-for-sale Securities, Current | 589 | 726 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | US Government Agencies Debt Securities | ||
ASSETS | ||
Available-for-sale Securities, Current | 259 | 382 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | US Treasury Securities | ||
ASSETS | ||
Available-for-sale Securities, Current | 423 | 474 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Certificates of Deposit | ||
ASSETS | ||
Available-for-sale Securities, Current | 66 | 110 |
Fair Value, Inputs, Level 1 | Available-for-sale Securities | Other Security Investments | ||
ASSETS | ||
Available-for-sale Securities, Current | 4 | 12 |
Fair Value, Inputs, Level 2 | ||
ASSETS | ||
Investments Fair Value Disclosure | 2,663 | 3,271 |
Liabilities | ||
Liabilities, Fair Value Disclosure, Recurring | 44 | 12 |
Fair Value, Inputs, Level 3 | ||
Liabilities | ||
Liabilities, Fair Value Disclosure, Recurring | 49 | 48 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | ||
Beginning Balance | 48 | 59 |
Losses included in earnings | 1 | 4 |
Settlements | -15 | |
Balance at the end of the period | 49 | 48 |
Total liabilities measured at fair value | 49 | 48 |
Foreign Exchange Contract | Fair Value, Inputs, Level 1 | ||
ASSETS | ||
Derivative Asset | 38 | 32 |
Liabilities | ||
Foreign currency exchange forward contracts | 41 | 12 |
Interest Rate Swap | Fair Value, Inputs, Level 1 | ||
ASSETS | ||
Derivative Asset | 21 | 10 |
Liabilities | ||
Derivative Liability | $3 | $0 |
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 $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Fair Value Disclosures [Abstract] | |
Cost due after three years | $403 |
Cost due after one year through three years | 1,893 |
Cost due after three years | 303 |
Estimated fair value due in one year or less | 403 |
Estimated fair value due after one year through three years | 1,897 |
Estimated fair value due after three years | $304 |
Fair_Value_Measurements_Market
Fair Value Measurements (Marketable Securities) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated Fair Value | $2,684 | $3,309 | |
Available-for-sale Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated Fair Value | 2,589 | 3,205 | |
Current Assets, Prepaid Expenses, And Other Current Assets | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated Fair Value | 15 | 24 | |
Other Assets | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated Fair Value | 80 | 80 | |
Available-for-sale Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated Fair Value | 2,604 | 3,229 | |
Available-for-sale Securities | Asset-backed Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 1,260 | 1,523 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3 | 3 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | -1 | |
Estimated Fair Value | 1,263 | 1,525 | |
Available-for-sale Securities | Foreign Government Debt Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 588 | 725 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | -1 | |
Estimated Fair Value | 589 | 726 | |
Available-for-sale Securities | US Government Agencies Debt Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 258 | 382 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Estimated Fair Value | 259 | 382 | |
Available-for-sale Securities | US Treasury Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 423 | 474 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Estimated Fair Value | 423 | 474 | |
Available-for-sale Securities | Certificates of Deposit | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 66 | 110 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Estimated Fair Value | 66 | 110 | |
Available-for-sale Securities | Other Security Investments | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 4 | 12 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 | |
Estimated Fair Value | 4 | 12 | |
Trading Securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated Fair Value | $80 | $80 |
Fair_Value_Measurements_Unreal
Fair Value Measurements (Unrealized Losses And Fair Value Of Investments With Unrealized Losses) (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | investment |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1,009 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $2,584 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1,018 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,604 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 |
Asset-backed Securities | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 664 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,251 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 671 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,263 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 |
Foreign Government Debt Securities | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 131 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 582 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 133 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 589 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 |
US Government Agencies Debt Securities | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 92 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 259 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 92 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 259 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 |
Other Debt Obligations | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 122 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 492 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 122 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 493 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | ($254) | |
Other income (expense), net | -29 | -24 |
Other comprehensive loss | -267 | 36 |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | -521 | |
Other income (expense), net | -29 | -24 |
Cost of sales | 826 | 776 |
Income taxes | 153 | 37 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -1 | -1 |
Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | 3 | |
Other comprehensive income (OCI) | 4 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | -1 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | 4 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | -2 | -2 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | -136 | |
Other comprehensive income (OCI) | 15 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | -3 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | -123 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 2 |
Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | 13 | |
Other comprehensive income (OCI) | -1 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 2 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | 14 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | -1 |
Financial Statement Translation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | -134 | |
Other comprehensive income (OCI) | -282 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | 0 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | -416 | |
Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | -254 | |
Other comprehensive income (OCI) | -264 | |
Other Comprehensive Income (Loss), Before Reclassifications, Tax | -2 | |
Other comprehensive loss | -267 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | -521 | |
Reclassification out of Accumulated Other Comprehensive Income | Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income (expense), net | -2 | |
Other comprehensive loss | 1 | |
Other income (expense), net | -2 | |
Income taxes | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income (expense), net | 1 | |
Other comprehensive loss | 13 | |
Other income (expense), net | 1 | |
Income taxes | -1 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income (expense), net | 0 | |
Other comprehensive loss | 1 | |
Other income (expense), net | 0 | |
Income taxes | 0 | 1 |
Reclassification out of Accumulated Other Comprehensive Income | Financial Statement Translation | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income (expense), net | 0 | |
Other comprehensive loss | -282 | |
Other income (expense), net | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income (expense), net | -1 | |
Other comprehensive loss | -267 | |
Other income (expense), net | -1 | |
Other Income (expense) | Reclassification out of Accumulated Other Comprehensive Income | Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Other income (expense), net | -2 | -2 |
Other income (expense), net | -2 | -2 |
Cost of Sales | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cost of sales | 2 | 2 |
Cost of Sales | Reclassification out of Accumulated Other Comprehensive Income | Hedges | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cost of sales | $0 | ($2) |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Foreign Exchange Contract | ||
Notional Amount | $3,404,000,000 | $2,442,000,000 |
Foreign Exchange Contract | Designated as Hedging Instrument | ||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 20,000,000 | |
Notional Amount | 414,000,000 | 357,000,000 |
Senior Unsecured Notes 3.375% due 2024 | ||
Senior Unsecured Notes | 600,000,000 | |
Other Noncurrent Liabilities | Interest Rate Swap | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 3,000,000 | |
Other Noncurrent Assets | Interest Rate Swap | ||
Foreign currency transaction losses | 21,000,000 | |
Long-term Debt | Interest Rate Swap | ||
Foreign currency transaction losses | -21,000,000 | |
Cash Flow Hedging | Interest Rate Swap | Designated as Hedging Instrument | ||
Notional Amount | 375,000,000 | |
Fair Value Hedging | Interest Rate Swap | Designated as Hedging Instrument | ||
Notional Amount | $500,000,000 |
Derivative_Instruments_Forward
Derivative Instruments (Forward Currency Exchange Contracts) (Details) (Foreign Exchange Contract, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount | $3,404 | $2,442 |
Maximum Term (Days) | 546 days | 546 days |
Derivative, Fair Value, Net | -3 | 20 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 414 | 357 |
Derivative, Fair Value, Net | 16 | 20 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 2,990 | 2,085 |
Derivative, Fair Value, Net | -19 | 0 |
Other Current Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 36 | 30 |
Other Current Assets | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 19 | 18 |
Other Current Assets | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 17 | 12 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2 | 2 |
Other Noncurrent Assets | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2 | 2 |
Other Noncurrent Assets | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 40 | 12 |
Other Current Liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 4 | 0 |
Other Current Liabilities | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 36 | 12 |
Other Noncurrent Liabilities | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1 | |
Other Noncurrent Liabilities | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | 1 | |
Other Noncurrent Liabilities | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Liability, Fair Value, Gross Liability | $0 |
Derivative_Instruments_Derivat1
Derivative Instruments Derivative Instruments (Income Statement Location) (Details) (Foreign Exchange Contract, Not Designated as Hedging Instrument, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Transaction Gain (Loss), before Tax | ($4) | ($4) |
Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Transaction Gain (Loss), before Tax | 0 | 2 |
Other Income (expense) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Transaction Gain (Loss), before Tax | ($4) | ($6) |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||
Amortization of intangible assets | $49,000,000 | $45,000,000 |
Other | ||
Business Acquisition [Line Items] | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 8,000,000 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | 8,000,000 | |
Small Bone Innovations | ||
Business Acquisition [Line Items] | ||
Intangible assets: | 358,000,000 | |
Berchtold | ||
Business Acquisition [Line Items] | ||
Intangible assets: | 184,000,000 | |
PST | ||
Business Acquisition [Line Items] | ||
Intangible assets: | 120,000,000 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | 2,000,000 | |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | $2,000,000 |
Acquisitions_Acquisitions_Allo
Acquisitions Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of The Trauson Acquisition (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Goodwill | 4,099 | 4,186 |
Other Intangible Assets [Member] | ||
Tangible assets acquired: | 11 years | 12 years |
Small Bone Innovations | ||
Purchase price paid | 358 | |
Cash | 0 | |
Inventory | 34 | |
Other assets | 4 | |
Liabilities | -2 | |
Goodwill | 221 | |
Assets and liabilities acquired, net | 358 | |
Tangible assets acquired: | 12 years | |
Berchtold | ||
Purchase price paid | 184 | |
Cash | 12 | |
Inventory | 22 | |
Other assets | 38 | |
Liabilities | -45 | |
Goodwill | 107 | |
Assets and liabilities acquired, net | 184 | |
Tangible assets acquired: | 8 years | |
PST | ||
Purchase price paid | 120 | |
Cash | 0 | |
Inventory | 7 | |
Other assets | 19 | |
Liabilities | -31 | |
Goodwill | 66 | |
Assets and liabilities acquired, net | 120 | |
Tangible assets acquired: | 14 years | |
Other | ||
Purchase price paid | 70 | 216 |
Cash | 0 | 0 |
Inventory | 5 | 5 |
Other assets | 12 | 25 |
Liabilities | -4 | -29 |
Goodwill | 19 | 93 |
Assets and liabilities acquired, net | 70 | 216 |
Customer relationship | Small Bone Innovations | ||
Intangible assets: | 19 | |
Customer relationship | Berchtold | ||
Intangible assets: | 11 | |
Customer relationship | PST | ||
Intangible assets: | 33 | |
Customer relationship | Other | ||
Intangible assets: | 9 | 5 |
Trade name | Small Bone Innovations | ||
Intangible assets: | 0 | |
Trade name | Berchtold | ||
Intangible assets: | 7 | |
Trade name | PST | ||
Intangible assets: | 0 | |
Trade name | Other | ||
Intangible assets: | 1 | 0 |
Developed technology & patents | Small Bone Innovations | ||
Intangible assets: | 82 | |
Developed technology & patents | Berchtold | ||
Intangible assets: | 32 | |
Developed technology & patents | PST | ||
Intangible assets: | 26 | |
Developed technology & patents | Other | ||
Intangible assets: | 26 | 115 |
Noncompete Agreements | Small Bone Innovations | ||
Intangible assets: | 0 | |
Noncompete Agreements | Berchtold | ||
Intangible assets: | 0 | |
Noncompete Agreements | PST | ||
Intangible assets: | 0 | |
Noncompete Agreements | Other | ||
Intangible assets: | 2 | 0 |
IPRD | Small Bone Innovations | ||
Intangible assets: | 0 | |
IPRD | Berchtold | ||
Intangible assets: | 0 | |
IPRD | PST | ||
Intangible assets: | 0 | |
IPRD | Other | ||
Intangible assets: | 0 | 2 |
Acquisitions_Future_Amortizati
Acquisitions - Future Amortization Expense (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Business Combinations [Abstract] | |
Remainder of 2015 | $150 |
2016 | 170 |
2017 | 168 |
2018 | 152 |
2019 | $135 |
Contingencies_and_Commitments_
Contingencies and Commitments (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2010 | Mar. 31, 2015 | Apr. 30, 2011 |
patent | patent | patent | |||
Rejuvenate and ABG II Voluntary Recall | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $1,766 | 1,766 | |||
Insurance Recoveries | 179 | ||||
Estimated Litigation Liability | 54 | 54 | |||
Zimmer Product Infringement | |||||
Loss Contingencies [Line Items] | |||||
Gain Contingency, Patents Allegedly Infringed upon, Number | 3 | ||||
Loss Contingency, Damages Awarded, Value | 76 | ||||
Hill-Rom Company | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Patents Allegedly Infringed, Number | 6 | 9 | |||
Loss Contingency, Patents Found Not Infringed, Number | 3 | ||||
Minimum | Rejuvenate and ABG II Voluntary Recall | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | 1,587 | 1,587 | |||
Maximum | Rejuvenate and ABG II Voluntary Recall | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $2,510 | 2,510 |
Debt_and_Credit_Facilities_Nar
Debt and Credit Facilities (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument, Maturity | 397 days | |
Commercial Paper, at Carrying Value | $200 | |
Commercial Paper, weighted average interest rate | 0.00% | |
Line of Credit Facility, Remaining Borrowing Capacity | 1,279 | |
Long-term debt, weighted-average interest rate | 290.00% | |
Unamortized Debt Issuance Expense | 20 | |
Debt Instrument, Fair Value Disclosure | 3,352 | 3,811 |
3.00% senior unsecured notes, due January 15, 2015 | ||
Repayments of Unsecured Debt | 500 | |
Commercial paper | ||
Debt Instrument, Maturity | 40 days | |
Maximum | Commercial paper | ||
Commercial paper | $1,250 |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 3 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2013 |
Cash dividends declared, per share of common stock | $0.35 | |
Document Period End Date | 31-Mar-15 | |
Stock Repurchased and Retired During Period, Shares | 1.4 | |
Repurchase and retirement of 1.3 million shares of common stock | $130,000,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 2,453,000,000 | |
2015 $2.0 Billion Repurchase Agreement | ||
Stock Repurchase Program, Authorized Amount | 2,000,000,000 | |
Stock Repurchased and Retired During Period, Shares | 1.4 | |
Repurchase and retirement of 1.3 million shares of common stock | 130,000,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 2,000,000,000 | |
2012 $405.0 Million Repurchase Agreement | ||
Stock Repurchase Program, Authorized Amount | 405,000,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 405,000,000 | |
2011 $500.0 Million Repurchase Agreement | ||
Stock Repurchase Program, Authorized Amount | 500,000,000 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $48,000,000 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 40.60% | 34.50% |
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, 2015 | Mar. 31, 2014 |
Net sales | $2,379 | $2,305 |
Segment net earnings | 406 | 131 |
Acquisition and integration related charges | 13 | 13 |
Amortization of intangible assets | -35 | -31 |
Restructuring and related charges | -19 | -10 |
Recall charges | -49 | -272 |
Tax matters | -84 | -8 |
Net earnings | 224 | 70 |
Operating Segments | ||
Net sales | 2,379 | 2,305 |
Segment net earnings | 504 | 480 |
Orthopaedics | ||
Net sales | 1,023 | 999 |
Segment net earnings | 254 | 249 |
MedSurg | ||
Net sales | 927 | 886 |
Segment net earnings | 163 | 145 |
Neurotechnology and Spine | ||
Net sales | 429 | 420 |
Segment net earnings | 87 | 86 |
Corporate and Other | ||
Segment net earnings | ($80) | ($76) |