COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-13149 | ||
Entity Registrant Name | STRYKER CORP | ||
Entity Incorporation, State or Country Code | MI | ||
Entity Tax Identification Number | 38-1239739 | ||
Entity Address, Address Line One | 2825 Airview Boulevard, | ||
Entity Address, City or Town | Kalamazoo, | ||
Entity Address, State or Province | MI | ||
Entity Address, Postal Zip Code | 49002 | ||
City Area Code | (269) | ||
Local Phone Number | 385-2600 | ||
Title of 12(g) Security | None | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 71,863,352,935 | ||
Entity Common Stock, Shares Outstanding | 374,575,145 | ||
Documents Incorporated by Reference | Portions of the proxy statement to be filed with the U.S. Securities and Exchange Commission relating to the 2020 Annual Meeting of Shareholders (the 2020 proxy statement) are incorporated by reference into Part III. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000310764 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock, $.10 Par Value | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.10 Par Value | ||
Trading Symbol | SYK | ||
Security Exchange Name | NYSE | ||
1.125% Notes due 2023 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.125% Notes due 2023 | ||
Trading Symbol | SYK23 | ||
Security Exchange Name | NYSE | ||
0.250% Notes due 2024 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.250% Notes due 2024 | ||
Trading Symbol | SYK24A | ||
Security Exchange Name | NYSE | ||
2.125% Notes due 2027 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.125% Notes due 2027 | ||
Trading Symbol | SYK27 | ||
Security Exchange Name | NYSE | ||
0.750% Notes due 2029 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 0.750% Notes due 2029 | ||
Trading Symbol | SYK29 | ||
Security Exchange Name | NYSE | ||
2.625% Notes due 2030 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 2.625% Notes due 2030 | ||
Trading Symbol | SYK30 | ||
Security Exchange Name | NYSE | ||
1.000% Notes due 2031 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 1.000% Notes due 2031 | ||
Trading Symbol | SYK31 | ||
Security Exchange Name | NYSE | ||
Floating Rate Notes due 2020 | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Floating Rate Notes due 2020 | ||
Trading Symbol | SYK20A | ||
Security Exchange Name | NYSE |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 14,884 | $ 13,601 | $ 12,444 |
Cost of sales | 5,188 | 4,663 | 4,264 |
Gross profit | 9,696 | 8,938 | 8,180 |
Research, development and engineering expenses | 971 | 862 | 787 |
Selling, general and administrative expenses | 5,356 | 5,099 | 4,552 |
Recall charges | 192 | 23 | 173 |
Amortization of intangible assets | 464 | 417 | 371 |
Total operating expenses | 6,983 | 6,401 | 5,883 |
Operating income | 2,713 | 2,537 | 2,297 |
Other income (expense), net | (151) | (181) | (234) |
Earnings before income taxes | 2,562 | 2,356 | 2,063 |
Income taxes | 479 | (1,197) | 1,043 |
Net earnings | $ 2,083 | $ 3,553 | $ 1,020 |
Net earnings per share of common stock: | |||
Basic net earnings per share of common stock (in dollars per share) | $ 5.57 | $ 9.50 | $ 2.73 |
Diluted net earnings per share of common stock (in dollars per share) | $ 5.48 | $ 9.34 | $ 2.68 |
Weighted-average shares outstanding (in millions): | |||
Basic (in shares) | 374 | 374.1 | 374 |
Effect of dilutive employee stock compensation (in shares) | 5.9 | 6.2 | 6.1 |
Diluted (in shares) | 379.9 | 380.3 | 380.1 |
Anti-dilutive shares excluded from the calculation of dilutive employee stock compensation | 0 | 0 | 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 2,083 | $ 3,553 | $ 1,020 |
Other comprehensive income (loss), net of tax | |||
Marketable securities | 1 | 0 | (4) |
Pension plans | (42) | (3) | (2) |
Unrealized gains (losses) on designated hedges | (3) | 22 | 4 |
Financial statement translation | 69 | (97) | 210 |
Total other comprehensive income (loss), net of tax | 25 | (78) | 208 |
Comprehensive income | $ 2,108 | $ 3,475 | $ 1,228 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 4,337 | $ 3,616 |
Marketable securities | 88 | 83 |
Accounts receivable, less allowance of $88 ($64 in 2018) | 2,893 | 2,332 |
Inventories: | ||
Materials and supplies | 677 | 606 |
Work in process | 178 | 149 |
Finished goods | 2,427 | 2,200 |
Total inventories | 3,282 | 2,955 |
Prepaid expenses and other current assets | 760 | 747 |
Total current assets | 11,360 | 9,733 |
Property, plant and equipment: | ||
Land, buildings and improvements | 1,263 | 1,041 |
Machinery and equipment | 3,451 | 3,236 |
Total property, plant and equipment | 4,714 | 4,277 |
Less allowance for depreciation | 2,147 | 1,986 |
Property, plant and equipment, net | 2,567 | 2,291 |
Goodwill | 9,069 | 8,563 |
Other intangibles, net | 4,227 | 4,163 |
Noncurrent deferred income tax assets | 1,575 | 1,678 |
Other noncurrent assets | 1,369 | 801 |
Total assets | 30,167 | 27,229 |
Current liabilities | ||
Accounts payable | 675 | 646 |
Accrued compensation | 955 | 917 |
Income taxes | 171 | 158 |
Dividend payable | 213 | 192 |
Accrued expenses and other liabilities | 1,527 | 1,521 |
Current maturities of debt | 859 | 1,373 |
Total current liabilities | 4,400 | 4,807 |
Long-term debt, excluding current maturities | 10,231 | 8,486 |
Income taxes | 1,068 | 1,228 |
Other noncurrent liabilities | 1,661 | 978 |
Total liabilities | 17,360 | 15,499 |
Shareholders' equity | ||
Common stock, $0.10 par value | 37 | 37 |
Additional paid-in capital | 1,628 | 1,559 |
Retained earnings | 11,748 | 10,765 |
Accumulated other comprehensive loss | (606) | (631) |
Total shareholders' equity | 12,807 | 11,730 |
Total liabilities & shareholders' equity | $ 30,167 | $ 27,229 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 88 | $ 64 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Total Stryker shareholders' equity | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes | $ 0 | ||||||
Noncontrolling Interest, Increase from Business Combination | $ 114 | ||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (99) | ||||||
Beginning balance at Dec. 31, 2016 | $ 37 | $ 1,432 | 8,842 | $ (761) | 0 | ||
Beginning balance, shares at Dec. 31, 2016 | 374.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock compensation and benefit plans | (42) | ||||||
Issuance of common stock under stock compensation and benefit plans, shares | 1.7 | ||||||
Repurchase of common stock | (7) | (223) | |||||
Repurchase of common stock, shares | (1.9) | ||||||
Share-based compensation | 113 | ||||||
Net earnings | $ 1,020 | 1,020 | 0 | ||||
Cash dividends declared | (653) | ||||||
Other comprehensive income (loss) | 208 | 208 | |||||
Ending balance, shares at Dec. 31, 2017 | 374.4 | ||||||
Ending balance at Dec. 31, 2017 | 9,980 | $ 9,966 | $ 37 | 1,496 | 8,986 | (553) | 14 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes | (759) | ||||||
Foreign currency exchange translation adjustment | (1) | ||||||
Noncontrolling Interest, Increase from Business Combination | 0 | ||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | (15) | ||||||
Issuance of common stock under stock compensation and benefit plans | (49) | ||||||
Issuance of common stock under stock compensation and benefit plans, shares | 1.9 | ||||||
Repurchase of common stock | (7) | (293) | |||||
Repurchase of common stock, shares | (1.9) | ||||||
Share-based compensation | 119 | ||||||
Net earnings | 3,553 | 3,553 | 0 | ||||
Cash dividends declared | (722) | ||||||
Other comprehensive income (loss) | (78) | (78) | |||||
Ending balance, shares at Dec. 31, 2018 | 374.4 | ||||||
Ending balance at Dec. 31, 2018 | 11,730 | 11,730 | $ 37 | 1,559 | 10,765 | (631) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of accounting changes | 0 | ||||||
Foreign currency exchange translation adjustment | 1 | ||||||
Noncontrolling Interest, Increase from Business Combination | 0 | ||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | ||||||
Issuance of common stock under stock compensation and benefit plans | $ 0 | (50) | |||||
Issuance of common stock under stock compensation and benefit plans, shares | 2 | ||||||
Repurchase of common stock | $ (307) | $ 0 | (8) | (299) | |||
Repurchase of common stock, shares | (1.9) | (1.9) | |||||
Share-based compensation | 127 | ||||||
Net earnings | $ 2,083 | 2,083 | 0 | ||||
Cash dividends declared | (801) | ||||||
Other comprehensive income (loss) | 25 | ||||||
Ending balance, shares at Dec. 31, 2019 | 374.5 | ||||||
Ending balance at Dec. 31, 2019 | $ 12,807 | $ 12,807 | $ 37 | $ 1,628 | $ 11,748 | $ (606) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Foreign currency exchange translation adjustment | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net earnings | $ 2,083 | $ 3,553 | $ 1,020 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 314 | 306 | 271 |
Amortization of intangible assets | 464 | 417 | 371 |
Share-based compensation | 127 | 119 | 113 |
Recall charges | 192 | 23 | 173 |
Sale of inventory stepped up to fair value at acquisition | 67 | 16 | 22 |
Deferred income tax (benefit) expense | 126 | (1,582) | 36 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (563) | (60) | (162) |
Inventories | (400) | (385) | (320) |
Accounts payable | 63 | 116 | 21 |
Accrued expenses and other liabilities | 113 | 289 | 90 |
Recall-related payments | (177) | (90) | (526) |
Income taxes | (105) | (156) | 704 |
Other, net | (113) | 44 | (254) |
Net cash provided by operating activities | 2,191 | 2,610 | 1,559 |
Investing activities | |||
Acquisitions, net of cash acquired | (802) | (2,451) | (831) |
Purchases of marketable securities | (74) | (226) | (270) |
Proceeds from sales of marketable securities | 69 | 394 | 87 |
Purchases of property, plant and equipment | (649) | (572) | (598) |
Other investing, net | 1 | (2) | (1) |
Net cash used in investing activities | (1,455) | (2,857) | (1,613) |
Financing activities | |||
Proceeds and payments on short-term borrowings, net | (7) | (1) | (200) |
Proceeds from issuance of long-term debt | 2,642 | 3,126 | 499 |
Payments on long-term debt | (1,342) | (669) | 0 |
Dividends paid | (778) | (703) | (636) |
Repurchases of common stock | (307) | (300) | (230) |
Cash paid for taxes from withheld shares | (136) | (120) | (95) |
Payments to purchase noncontrolling interest | 0 | (14) | (99) |
Other financing, net | (69) | 10 | (33) |
Net cash provided by (used in) financing activities | 3 | 1,329 | (794) |
Effect of exchange rate changes on cash and cash equivalents | (18) | (8) | 74 |
Change in cash and cash equivalents | 721 | 1,074 | (774) |
Cash and cash equivalents at beginning of year | 3,616 | 2,542 | 3,316 |
Cash and cash equivalents at end of year | 4,337 | 3,616 | 2,542 |
Supplemental cash flow disclosure: | |||
Cash paid for income taxes, net of refunds | 457 | 539 | 312 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 286 | $ 248 | $ 231 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Stryker (the "Company," "we," "us," or "our") is one of the world's leading medical technology companies and, together with its customers, is driven to make healthcare better. The Company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that improve patient and hospital outcomes. Our products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment and intensive care disposable products; neurosurgical, neurovascular and spinal devices; as well as other products used in a variety of medical specialties. Basis of Presentation and Consolidation: The Consolidated Financial Statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. We have no material interests in variable interest entities and none that require consolidation. Certain prior year amounts have been reclassified to conform with current year presentation in our Consolidated Financial Statements. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of net sales and expenses in the reporting period. Actual results could differ from those estimates. Revenue Recognition: Sales are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration we expect to receive in exchange for satisfying the performance obligations. Our sales continue to be recognized primarily when we transfer control to the customer, which can be on the date of shipment, the date of receipt by the customer or, for most Orthopaedics products, when we have received a purchase order and appropriate notification the product has been used or implanted. Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time. Sales represent the amount of consideration we expect to receive from customers in exchange for transferring products and services. Net sales exclude sales, value added and other taxes we collect from customers. Other costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of most of our sales. We extend terms of payment to our customers based on commercially reasonable terms for the markets of our customers, while also considering their credit quality. A provision for estimated sales returns, discounts and rebates is recognized as a reduction of sales in the same period that the sales are recognized. Our estimate of the provision for sales returns has been established based on contract terms with our customers and historical business practices and current trends. Shipping and handling costs charged to customers are included in net sales. Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, warehousing costs and other shipping and handling activity. Research, Development and Engineering Expenses: Research and development costs are charged to expense as incurred. Costs include research, development and engineering activities relating to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of customers and patients. Costs primarily consist of salaries, wages, consulting and depreciation and maintenance of research facilities and equipment. Selling, General and Administrative Expenses: Selling, general and administrative expense is primarily comprised of selling expenses, marketing expenses, administrative and other indirect overhead costs, amortization of loaner instrumentation, depreciation and amortization expense of non-manufacturing assets and other miscellaneous operating items. Currency Translation: Financial statements of subsidiaries outside the United States generally are measured using the local currency as the functional currency. Adjustments to translate those statements into United States Dollars are recorded in other comprehensive income (OCI). Transactional exchange gains and losses are included in earnings. Cash Equivalents: Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. Marketable Securities: Marketable securities consist of marketable debt securities, certificates of deposit and mutual funds. Mutual funds are acquired to offset changes in certain liabilities related to deferred compensation arrangements and are expected to be used to settle these liabilities. Pursuant to our investment policy, all individual marketable security investments must have a minimum credit quality of single A (Standard & Poor’s and Fitch) and A2 (Moody’s Corporation) at the time of acquisition, while the overall portfolio of marketable securities must maintain a minimum average credit quality of double A (Standard & Poor’s and Fitch) or Aa (Moody’s Corporation). In the event of a rating downgrade below the minimum credit quality subsequent to purchase, the marketable security investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable security investment portfolio. Our marketable securities are classified as available-for-sale and trading securities. Investments in trading securities represent participant-directed investments of deferred employee compensation. Accounts Receivable: Accounts receivable consists of trade and other miscellaneous receivables. An allowance is maintained for doubtful accounts for estimated losses in the collection of accounts receivable. Estimates are made regarding the ability of customers to make required payments based on historical credit experience and expected future trends. Accounts receivable are written off when all reasonable collection efforts are exhausted. Inventories: Inventories are stated at the lower of cost or net realizable value, with cost generally determined using the first-in, first-out (FIFO) cost method. For excess and obsolete inventory resulting from the potential inability to sell specific products at prices in excess of current carrying costs, reserves are maintained to reduce current carrying cost to market prices. Financial Instruments: Our financial instruments consist of cash, cash equivalents, marketable securities, accounts receivable, other investments, accounts payable, debt and foreign currency exchange contracts. The carrying value of our financial instruments, with the exception of our senior unsecured notes, approximates fair value on December 31, 2019 and 2018 . Refer to Notes 3 and 10 for further details. All marketable securities are recognized at fair value. Adjustments to the fair value of marketable securities that are classified as available-for-sale are recorded as increases or decreases, net of income taxes, within accumulated other comprehensive income (AOCI) in shareholders’ equity and adjustments to the fair value of marketable securities that are classified as trading are recorded in earnings. The amortized cost of marketable debt securities is adjusted for amortization of premiums and discounts to maturity computed under the effective interest method. Such amortization and interest and realized gains and losses are included in other income (expense), net. The cost of securities sold is determined by the specific identification method. We review declines in the fair value of our investments classified as available-for-sale to determine whether the decline in fair value is other-than-temporary. The resulting losses from other-than-temporary impairments of available-for-sale marketable debt securities are included in earnings. Derivatives: All derivatives are recognized at fair value and reported on a gross basis. We enter into forward currency exchange contracts to mitigate the impact of currency fluctuations on transactions denominated in nonfunctional currencies, thereby limiting our risk that would otherwise result from changes in exchange rates. The periods of the forward currency exchange contracts correspond to the periods of the exposed transactions, with realized gains and losses included in the measurement and recording of transactions denominated in the nonfunctional currencies. All forward currency exchange contracts are recorded at their fair value each period. Forward currency exchange contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. These nonfunctional currency exposures principally relate to forecasted intercompany sales and purchases of manufactured products and generally have maturities up to eighteen months. Changes in value of derivatives designated as cash flow hedges are recorded in AOCI on the Consolidated Balance Sheets until earnings are affected by the variability of the underlying cash flows. At that time, the applicable amount of gain or loss from the derivative instrument that is deferred in shareholders’ equity is reclassified into earnings and is included in cost of goods sold in the Consolidated Statements of Earnings. Cash flows associated with these hedges are included in cash from operations in the same category as the cash flows from the items being hedged. Forward currency exchange contracts are used to offset our exposure to the change in value of specific foreign currency denominated assets and liabilities, primarily intercompany payables and receivables. These derivatives are not designated as hedges and, therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related changes in value of foreign currency denominated assets and liabilities. The estimated fair value of our forward currency exchange contracts represents the measurement of the contracts at month-end spot rates as adjusted by current forward points. From time to time, we designate derivative and non-derivative financial instruments as net investment hedges of our investments in certain international subsidiaries. For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is recognized in OCI and reported as a component of AOCI. We have elected to use the spot method to assess effectiveness for our derivatives designated as net investment hedges. Accordingly, the change in fair value attributable to changes in the spot rate is recorded in AOCI. We exclude the spot-forward difference from the assessment of hedge effectiveness and amortize this amount separately on a straight-line basis over the term of the forward contracts. This amortization will be recorded in Other income (expense), net in our Consolidated Statements of Earnings. From time to time, we designate forward starting interest rate derivative instruments as cash flow hedges to manage the exposure to interest rate volatility with regard to future issuance and refinancing of debt. The effective portion of the gain or loss on a forward starting interest rate derivative instrument that is designated and qualifies as a cash flow hedge is reported as a component of AOCI. Beginning in the period in which the debt refinancing occurs and the related derivative instruments is terminated, the effective portion of the gains or losses is then reclassified into interest expense over the term of the related debt. Interest rate derivative instruments designated as fair value hedges have been used in the past to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. Property, Plant and Equipment: Property, plant and equipment is stated at cost. Depreciation is generally computed by the straight-line method over the estimated useful lives of three to 30 years for buildings and improvements and three to 10 years for machinery and equipment. Goodwill and Other Intangible Assets: Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses at the acquisition date, after amounts allocated to other identifiable intangible assets. Factors that contribute to the recognition of goodwill include synergies that are specific to our business and not available to other market participants and are expected to increase net sales and profits; acquisition of a talented workforce; cost savings opportunities; the strategic benefit of expanding our presence in core and adjacent markets; and diversifying our product portfolio. The fair values of other identifiable intangible assets acquired in a business combination are primarily determined using the income approach. Other intangible assets include, but are not limited to, developed technology, customer and distributor relationships (which reflect expected continued customer or distributor patronage) and trademarks and patents. Intangible assets with determinable useful lives are amortized on a straight-line basis over their estimated useful lives of four to 40 years. Certain acquired trade names are considered to have indefinite lives and are not amortized, but are assessed annually for potential impairment as described below. In some of our acquisitions, we acquire in-process research and development (IPRD) intangible assets. For acquisitions accounted for as business combinations IPRD is considered to be an indefinite-lived intangible asset until the research is completed (then it becomes a determinable-lived intangible asset) or determined to have no future use (then it is impaired). For asset acquisitions IPRD is expensed immediately unless there is an alternative future use. Goodwill, Intangibles and Long-Lived Asset Impairment Tests: We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. In certain circumstances, we may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. Indefinite-lived intangible assets are also tested at least annually for impairment by comparing the individual carrying values to the fair value. We review long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows. Undiscounted cash flows expected to be generated by the related assets are estimated over the asset's useful life based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Assets classified as held for sale are recorded at the lower of carrying amount or fair value less costs to sell. Share-Based Compensation: We use share based compensation in the form of stock options, restricted stock units (RSUs) and performance stock units (PSUs). Stock options are granted under long-term incentive plans to certain key employees and non-employee directors at an exercise price not less than the fair market value of the underlying common stock, which is the quoted closing price of our common stock on the day prior to the date of grant. The options are granted for periods of up to 10 years and become exercisable in varying installments. We grant RSUs to key employees and non-employee directors and PSUs to certain key employees under our long-term incentive plans. The fair value of RSUs is determined based on the number of shares granted and the quoted closing price of our common stock on the date of grant, adjusted for the fact that RSUs do not include anticipated dividends. RSUs generally vest in one-third increments over a three -year period and are settled in stock. PSUs are earned over a three -year performance cycle and vest in March of the year following the end of that performance cycle. The number of PSUs that will ultimately be earned is based on our performance relative to pre-established goals in that three -year performance cycle. The fair value of PSUs is determined based on the quoted closing price of our common stock on the day of grant. Compensation expense is recognized in the Consolidated Statements of Earnings based on the estimated fair value of the awards on the grant date. Compensation expense recognized reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience and is recognized on a straight-line basis over the requisite service period, which is generally the period required to obtain full vesting. Management expectations related to the achievement of performance goals associated with PSU grants is assessed regularly and that assessment is used to determine whether PSU grants are expected to vest. If performance-based milestones related to PSU grants are not met or not expected to be met, any compensation expense recognized associated with such grants will be reversed. Income Taxes: Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax bases of assets and liabilities and are measured using the enacted income tax rates in effect for the years in which the differences are expected to reverse. Deferred income tax benefits generally represent the change in net deferred income tax assets and liabilities in the year. Other amounts result from adjustments related to acquisitions and foreign currency as appropriate. We operate in multiple income tax jurisdictions both within the United States and internationally. Accordingly, management must determine the appropriate allocation of income to each of these jurisdictions based on current interpretations of complex income tax regulations. Income tax authorities in these jurisdictions regularly perform audits of our income tax filings. Income tax audits associated with the allocation of this income and other complex issues, including inventory transfer pricing and cost sharing, product royalty and foreign branch arrangements, may require an extended period of time to resolve and may result in significant income tax adjustments if changes to the income allocation are required between jurisdictions with different income tax rates. New Accounting Pronouncements Not Yet Adopted We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements. In June 2016 the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses for accounts receivables, loans and other financial instruments. The standard is not expected to have a material impact on our Consolidated Financial Statements. Accounting Pronouncements Recently Adopted On January 1, 2019 we adopted ASU 2016-02, Leases , and related amendments (ASC 842), which require lease assets and liabilities to be recorded on the balance sheet for leases with terms greater than twelve months. The adoption of this update did not have a material impact on our Consolidated Financial Statements. Refer to Note 7 for further information. On January 1, 2019 we adopted ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies hedge accounting guidance, as well as improves presentation and disclosure to align the economic effects of risk management strategies in the financial statements. The adoption of this update did not have a material impact on our Consolidated Financial Statements. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION We disaggregate our net sales by product line and geographic location for each of our segments as we believe it best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors. Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time. In 2019 less than 10% of our sales were recognized as services transferred over time. Refer to Note 1 for further discussion on our revenue recognition policies. Segment Net Sales Orthopaedics: 2019 2018 2017 Knees $ 1,815 $ 1,701 $ 1,595 Hips 1,383 1,336 1,303 Trauma and Extremities 1,639 1,580 1,478 Other 415 374 337 $ 5,252 $ 4,991 $ 4,713 MedSurg: Instruments $ 2,041 $ 1,822 $ 1,678 Endoscopy 1,983 1,846 1,652 Medical 2,264 2,118 1,969 Sustainability 286 259 258 $ 6,574 $ 6,045 $ 5,557 Neurotechnology and Spine: Neurotechnology $ 1,973 $ 1,737 $ 1,423 Spine 1,085 828 751 $ 3,058 $ 2,565 $ 2,174 Total $ 14,884 $ 13,601 $ 12,444 United States Net Sales Orthopaedics: 2019 2018 2017 Knees $ 1,347 $ 1,244 $ 1,169 Hips 882 838 820 Trauma and Extremities 1,051 1,001 950 Other 334 300 276 $ 3,614 $ 3,383 $ 3,215 MedSurg: Instruments $ 1,608 $ 1,424 $ 1,304 Endoscopy 1,577 1,432 1,290 Medical 1,787 1,630 1,525 Sustainability 283 257 257 $ 5,255 $ 4,743 $ 4,376 Neurotechnology and Spine: Neurotechnology $ 1,271 $ 1,115 $ 900 Spine 817 607 568 $ 2,088 $ 1,722 $ 1,468 Total $ 10,957 $ 9,848 $ 9,059 International Net Sales Orthopaedics: 2019 2018 2017 Knees $ 469 $ 457 $ 426 Hips 500 498 483 Trauma and Extremities 588 579 528 Other 81 74 61 $ 1,638 $ 1,608 $ 1,498 MedSurg: Instruments $ 433 $ 398 $ 374 Endoscopy 406 414 362 Medical 477 488 444 Sustainability 3 2 1 $ 1,319 $ 1,302 $ 1,181 Neurotechnology and Spine: Neurotechnology $ 702 $ 622 $ 523 Spine 268 221 183 $ 970 $ 843 $ 706 Total $ 3,927 $ 3,753 $ 3,385 Orthopaedics Orthopaedics products consist primarily of implants used in hip and knee joint replacements and trauma and extremity surgeries. Substantially all Orthopaedics sales are recognized when we have received a purchase order and appropriate notification the product has been used or implanted. For certain Orthopaedic products in the "other" category, we recognize sales at a point in time, as well as over time for performance obligations that may include an obligation to complete installation, provide training and ongoing services. Performance obligations are satisfied within one year. MedSurg MedSurg products include surgical equipment and navigation systems (Instruments), endoscopic and communications systems (Endoscopy), patient handling, emergency medical equipment and intensive care disposable products (Medical), reprocessed and remanufactured medical devices (Sustainability) and other medical device products used in a variety of medical specialties. Substantially all MedSurg sales are recognized when a purchase order has been received and control has transferred. For certain Endoscopy, Instruments and Medical services, we may recognize sales over time as we satisfy performance obligations that may include an obligation to complete installation, provide training and perform ongoing services, generally performed within one year. Neurotechnology and Spine Neurotechnology and Spine products include neurosurgical, neurovascular, and spinal implant devices. Our neurotechnology offering includes products used for minimally invasive endovascular techniques; a comprehensive line of products for traditional brain and open skull based surgical procedures; orthobiologic and biosurgery products, including synthetic bone grafts and vertebral augmentation products; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke. Our spinal implant offering includes cervical, thoracolumbar and interbody systems used in spinal injury, deformity and degenerative therapies. Substantially all Neurotechnology and Spine sales are recognized when a purchase order has been received and control has transferred. Contract Assets and Liabilities The nature of our products and services do not generally give rise to contract assets as we typically do not incur costs to fulfill a contract before a product or service is provided to a customer. Our costs to obtain contracts are typically in the form of sales commissions paid to employees of Stryker or third-party agents. We have elected to expense sales commissions associated with obtaining a contract as incurred as the amortization period is generally less than one year. These costs have been presented within selling, general and administrative expenses. On December 31, 2019 there were no contract assets recorded in our Consolidated Balance Sheets. Our contract liabilities arise as a result of consideration received from customers at inception of contracts for certain businesses or where the timing of billing for services precedes satisfaction of our performance obligations. We generally satisfy performance obligations within one year from the contract inception date. Our contract liabilities were $313 and $327 on December 31, 2019 and December 31, 2018 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified in their entirety based on the lowest level of input and disclosed in one of the following three categories: Level 1 Quoted market prices in active markets for identical assets or liabilities. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Unobservable inputs reflecting our assumptions or external inputs from active markets. Use of observable market data, when available, is required in making fair value measurements. When inputs used fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We determine fair value for Level 1 instruments using exchange-traded prices for identical instruments. We determine fair value of Level 2 instruments using exchange-traded prices of similar instruments, where available, or utilizing other observable inputs that take into account our credit risk and that of our counterparties. Foreign currency exchange contracts and interest rate hedges are included in Level 2 and we use inputs other than quoted prices that are observable for the asset or liability. The Level 2 derivative instruments are primarily valued using standard calculations and models that use readily observable market data as their basis. Our Level 3 liabilities are comprised of contingent consideration arising from recently completed acquisitions. We determine fair value of these Level 3 liabilities using a discounted cash flow technique. Significant unobservable inputs were used in our assessment of fair value, including assumptions regarding future business results, discount rates, discount periods and probability assessments based on the likelihood of reaching various targets. We remeasure the fair value of our assets and liabilities each reporting period. We record the changes in fair value within selling, general and administrative expense and the changes in the time value of money within other income (expense), net. Assets Measured at Fair Value 2019 2018 Cash and cash equivalents $ 4,337 $ 3,616 Trading marketable securities 149 118 Level 1 - Assets $ 4,486 $ 3,734 Available-for-sale marketable securities: Corporate and asset-backed debt securities $ 32 $ 38 United States agency debt securities 2 11 United States treasury debt securities 49 23 Certificates of deposit 5 11 Total available-for-sale marketable securities $ 88 $ 83 Foreign currency exchange forward contracts 226 77 Interest rate swap asset 17 — Level 2 - Assets $ 331 $ 160 Total assets measured at fair value $ 4,817 $ 3,894 Liabilities Measured at Fair Value 2019 2018 Deferred compensation arrangements $ 149 $ 118 Level 1 - Liabilities $ 149 $ 118 Foreign currency exchange forward contracts $ 23 $ 20 Level 2 - Liabilities $ 23 $ 20 Contingent consideration: Beginning $ 117 $ 32 Additions 298 77 Change in estimate (10 ) 15 Settlements (99 ) (7 ) Ending $ 306 $ 117 Level 3 - Liabilities $ 306 $ 117 Total liabilities measured at fair value $ 478 $ 255 Fair Value of Available for Sale Securities by Maturity 2019 2018 Due in one year or less $ 50 $ 51 Due after one year through three years $ 38 $ 32 On December 31, 2019 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income was $155 , $119 and $60 in 2019 , 2018 and 2017 , which was recorded in other income (expense), net. Our investments in available-for-sale marketable securities had a minimum credit quality rating of A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. We do not consider these investments to be other-than-temporarily impaired on December 31, 2019 . On December 31, 2019 the majority of our investments with unrealized losses that were not deemed to be other-than-temporarily impaired were in a continuous unrealized loss position for less than twelve months, and the losses were not material. Securities in a Continuous Unrealized Loss Position Number of Investments Fair Value Corporate and Asset-Backed 2 $ 1 United States Treasury 6 13 Certificate of Deposit 4 1 Total 12 $ 15 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Foreign Currency Hedges We use operational and economic hedges, foreign currency exchange forward contracts, net investment hedges (both derivative and non-derivative financial instruments) and interest rate derivative instruments to manage the impact of currency exchange and interest rate fluctuations on earnings, cash flow and equity. We do not enter into derivative instruments for speculative purposes. We are exposed to potential credit loss in the event of nonperformance by counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum exposure to loss is the asset balance of the instrument. 2019 Cash Flow Net Investment Non-Designated Total Gross notional amount $ 801 $ 1,113 $ 6,174 $ 8,088 Maximum term in days 1646 Fair value: Other current assets $ 5 $ — $ 180 $ 185 Other noncurrent assets 1 40 — 41 Other current liabilities (10 ) — (11 ) (21 ) Other noncurrent liabilities (2 ) — — (2 ) Total fair value $ (6 ) $ 40 $ 169 $ 203 2018 Gross notional amount $ 870 $ — $ 5,466 $ 6,336 Maximum term in days 586 Fair value: Other current assets $ 15 $ — $ 28 $ 43 Other noncurrent assets 1 — 33 34 Other current liabilities (5 ) — (15 ) (20 ) Other noncurrent liabilities — — — — Total fair value $ 11 $ — $ 46 $ 57 In December 2019 and November 2018 we designated the issuance of €2,400 and €2,250 of senior unsecured notes as a net investment hedge to selectively hedge portions of our investment in certain international subsidiaries. The currency effects of our euro-denominated senior unsecured notes are reflected in AOCI within shareholders' equity where they offset gains and losses recorded on our net investment in international subsidiaries. On December 31, 2019 the total after-tax gain in AOCI related to these designated net investment hedges was $17 . We evaluate the effectiveness of our net investment hedges quarterly. We have not recognized any ineffectiveness in 2019 . In July 2019 we entered into €1.0 billion in certain forward currency contracts and designated these as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. We evaluate the effectiveness of our net investment hedges quarterly. Net Currency Exchange Rate Gains (Losses) Derivative Instrument Recorded in: 2019 2018 2017 Cash Flow Cost of sales $ 2 $ 7 $ (6 ) Net Investment Other income (expense), net 14 — — Non-Designated Other income (expense), net $ (7 ) $ (6 ) $ (9 ) Total $ 9 $ 1 $ (15 ) Pretax gains (losses) on derivatives designated as cash flow of ($6) and net investment hedges of $27 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense) in earnings within 12 months as of December 31, 2019 . This cash flow hedge reclassification is primarily due to the sale of inventory that includes previously hedged purchases. A component of the AOCI amounts related to net investment hedges is reclassified over the life of the hedge instruments as we elected to exclude the initial value of the component related to the spot-forward difference from the effectiveness assessment. Interest Rate Hedges In conjunction with our offering of senior unsecured notes in November 2019 we terminated cash flow hedges with gross notional amounts of €600 designated as forward starting interest rate swaps of our interest rates, the impact of which will be recognized over time as a benefit within interest expense. Pretax gains recorded in AOCI related to closed interest rate hedges of $6 are expected to be reclassified to other income (expense) in earnings within 12 months of December 31, 2019 . On December 31, 2019 we had interest rate swap agreements with notional amounts of $750 designated as forward starting interest rate swaps in anticipation of future debt issuances. Pretax gains of $17 were recorded in AOCI as of December 31, 2019 . Upon the probable issuance of the debt, these amounts will be released to interest expense over the term of the debt. The cash flow effect of these hedges is recorded in cash flow from operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income (AOCI) | 12 Months Ended |
Dec. 31, 2019 | |
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) [Abstract] | |
Accumulated Other Comprehensive (Loss) Income (AOCI) | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI) Marketable Securities Pension Plans Hedges Financial Statement Translation Total 2017 $ (4 ) $ (134 ) $ 28 $ (443 ) $ (553 ) OCI 2 (16 ) 36 (115 ) (93 ) Income taxes — 1 (9 ) 18 10 Reclassifications to: Cost of Sales — — (7 ) — (7 ) Other (income) expense (2 ) 10 — — 8 Income taxes — 2 2 — 4 Net OCI — (3 ) 22 (97 ) (78 ) 2018 $ (4 ) $ (137 ) $ 50 $ (540 ) $ (631 ) OCI — (74 ) 3 101 30 Income taxes — 26 — (21 ) 5 Reclassifications to: Cost of Sales — — (2 ) — (2 ) Other (income) expense 1 8 (5 ) (14 ) (10 ) Income taxes — (2 ) 1 3 2 Net OCI 1 (42 ) (3 ) 69 25 2019 $ (3 ) $ (179 ) $ 47 $ (471 ) $ (606 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS The aggregate purchase price of our acquisitions, net of cash acquired was $1,096 and $2,451 in 2019 and 2018 . We acquired stock in companies and various assets that continue to support our capital deployment and product development strategies. In October 2019 we completed the acquisition of Mobius Imaging and Cardan Robotics for net cash consideration of $360 and future regulatory and commercial milestone payments of up to $130 . Mobius Imaging is a leader in point-of-care imaging technology focused on integrating advanced imaging technologies into medical workflow. Cardan Robotics is working to develop innovative robotics and navigation technology systems for surgical and interventional radiology procedures. Mobius Imaging and Cardan Robotics (Mobius) are part of our Spine business within Neurotechnology and Spine. For income tax purposes the acquisition is treated as an asset purchase. Goodwill attributable to the acquisition is deductible for tax purposes. In March 2019 we completed the acquisition of OrthoSpace, Ltd. (OrthoSpace) for net cash consideration of $110 and future regulatory milestone payments of up to $110 . OrthoSpace is a medical device company specializing in orthopaedic biodegradable technology for the treatment of irreparable rotator cuff tears. OrthoSpace is part of our Endoscopy business within MedSurg. Goodwill attributable to the acquisition is not deductible for tax purposes. In November 2018 we completed the acquisition of K2M Group Holdings, Inc. (K2M) for $27.50 per share, or an aggregate purchase price of $1,380 , net of cash acquired. K2M is a global leader of complex spine and minimally invasive solutions focused on achieving three-dimensional Total Body Balance. K2M is part of our Spine business within Neurotechnology and Spine. Goodwill attributable to the acquisition is not deductible for tax purposes. In February 2018 we completed the acquisition of Entellus Medical, Inc. (Entellus) for $24.00 per share, or an aggregate purchase price of $697 , net of cash acquired. Entellus is focused on delivering superior patient and physician experiences through products designed for the minimally invasive treatment of various ear, nose and throat (ENT) disease states. Entellus is part of our Neurotechnology business within Neurotechnology and Spine. Goodwill attributable to the acquisition is not deductible for tax purposes. In November 2019 we announced a definitive agreement to acquire all of the issued and outstanding ordinary shares of Wright Medical Group N.V. (Wright) for $30.75 per share, or an aggregate purchase price of approximately $5.4 billion (including convertible notes). Pursuant to the agreement, on December 13, 2019 our wholly owned subsidiary, Stryker B.V., commenced a tender offer to purchase all of the outstanding ordinary shares, par value €0.03 per share, of Wright at a price of $30.75 per share, without interest, but subject to any applicable withholding of taxes. We expect the acquisition to close in the second half of 2020, subject to the expiration of the waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of other required approvals and clearances under applicable antitrust laws, the adoption of certain resolutions by Wright’s shareholders at an extraordinary general meeting of Wright’s shareholders and other customary conditions. Wright is a global medical device company focused on extremities and biologics. Following closing, we plan to integrate Wright into our Trauma and Extremities business within Orthopaedics. Purchase price allocations for our significant acquisitions are presented below: Purchase Price Allocation of Acquired Net Assets 2019 Mobius OrthoSpace Tangible assets acquired: Accounts receivable $ 3 $ 1 Inventory 7 1 Other assets 2 1 Contingent consideration (4 ) — Liabilities (10 ) (29 ) Intangible assets: Customer relationship 7 — Developed technology and patents 60 120 In-process research and development 98 — Non-compete agreements 9 — Goodwill 301 114 Purchase price, net of cash acquired $ 473 $ 208 Weighted average life of intangible assets 12 18 2018 K2M Entellus Tangible assets acquired: Accounts receivable $ 58 $ 17 Inventory 131 14 Other assets 160 62 Contingent consideration — (79 ) Liabilities (257 ) (76 ) Intangible assets: Customer relationship 34 33 Distributor relationship 1 — Trade name 10 — Developed technology and patents 475 261 Internally developed software 2 — Goodwill 766 465 Purchase price, net of cash acquired $ 1,380 $ 697 Weighted average life of intangible assets 15 16 Purchase price allocations for Mobius, OrthoSpace and other 2019 acquisitions were based on preliminary valuations, primarily related to intangible assets and inventory. Our estimates and assumptions are subject to change within the measurement period. The purchase price allocations for K2M, Entellus and other 2018 acquisitions were finalized in 2019 |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | CONTINGENCIES AND COMMITMENTS We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product, labor, intellectual property and other matters that are more fully described below. The outcomes of these matters will generally not be known for prolonged periods of time. In certain of the legal proceedings, the claimants seek damages as well as other compensatory and equitable relief that could result in the payment of significant claims and settlements and/or the imposition of injunctions or other equitable relief. For legal matters for which management had sufficient information to reasonably estimate our future obligations, a liability representing management's best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within the range is not known, is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those estimated by management, additional expense may be incurred, which could unfavorably affect future operating results. We are self-insured for product liability claims and expenses. The ultimate cost to us with respect to product liability claims could be materially different than the amount of the current estimates and accruals and could have a material adverse effect on our financial position, results of operations and cash flows. In 2010 we filed a lawsuit in federal court against Zimmer Biomet Holdings, Inc. (Zimmer), alleging that a Zimmer product infringed on three of our patents. In 2013 following a jury trial favorable to us, the trial judge entered a final judgment that, among other things, awarded us damages of $76 and ordered Zimmer to pay us enhanced damages. Zimmer appealed this ruling. In December 2014 the Federal Circuit affirmed the damages awarded to us, reversed the order for enhanced damages and remanded the issue of attorney fees to the trial court. In May 2015 the trial court entered a stipulated judgment that, among other things, required Zimmer to pay us the base amount of damages and interest, while the issues of enhanced damages and attorney fees continue to be pursued. In June 2015 we recorded a $54 gain, net of legal costs, which was recorded within selling, general and administrative expenses. On June 13, 2016 the United States Supreme Court vacated the decision of the Federal Circuit that reversed our judgment for enhanced damages and remanded the case to the Federal Circuit to reconsider the issue. On September 12, 2016 the Federal Circuit issued an opinion that, among other things, remanded the issue of enhanced damages to the trial court. On July 12, 2017 the trial court reaffirmed its award of enhanced damages and entered a judgment of $164 in our favor. Zimmer appealed, and on December 10, 2018 the Federal Circuit affirmed the decision. Zimmer filed a petition on January 23, 2019 to seek a rehearing of this ruling by the entire Federal Circuit. On March 19, 2019 the Federal Circuit denied Zimmer’s petition for a rehearing. Zimmer conditionally paid us $167 while it pursued a review of the decision by the Supreme Court. On October 7, 2019 the Supreme Court denied Zimmer’s petition for review. This decision concluded the case. Accordingly, in November 2019 we recorded a $100 gain, net of legal costs, which was recorded within selling, general and administrative expenses. Recall Matters In June 2012 we voluntarily recalled our Rejuvenate and ABG II Modular-Neck hip stems and terminated global distribution of these hip products. Product liability lawsuits relating to this voluntary recall have been filed against us. In November 2014 we entered into a settlement agreement to compensate eligible United States patients who had revision surgery prior to November 3, 2014 and in December 2016 the settlement program was extended to patients who had revision surgery prior to December 19, 2016. We continue to offer support for recall-related care and reimburse patients who are not eligible to enroll in the settlement program for testing and treatment services, including any necessary revision surgeries. In addition, there are remaining lawsuits that we will continue to defend against. In August 2016 and May 2018 we voluntarily recalled certain lot-specific sizes and offsets of LFIT Anatomic CoCr V40 Femoral Heads. Product liability lawsuits and claims relating to this voluntary recall have been filed against us. In November 2018 we entered into a settlement agreement to resolve a significant number of claims and lawsuits related to the recalls. The specific terms of the settlement agreement, including the financial terms, are confidential. We have incurred, and expect to incur in the future, costs associated with the defense and settlement of these matters. Based on the information that has been received, we have estimated the remaining range of probable loss related to these matters globally to be approximately $275 to $520 . We have recorded charges to earnings representing the minimum of the range of probable loss. The final outcomes of these matters are dependent on many factors that are difficult to predict. Accordingly, the ultimate cost related to these matters globally may be materially different than the amount of our current estimate and accruals and could have a material adverse effect on our results of operations and cash flows. Leases We lease various manufacturing, warehousing and distribution facilities, administrative and sales offices as well as equipment under operating leases. We evaluate our contracts to identify leases, which is generally if there is an identified asset and we have the right to direct the use of and obtain substantially all of the economic benefit from the use of the identified asset. Certain of our lease agreements contain rent escalation clauses (including index-based escalations), rent holidays, capital improvement funding or other lease concessions. We recognize our minimum rental expense on a straight-line basis over the term of the lease beginning with the date of initial control of the asset. With the adoption of ASC 842 we recognized all leases with terms greater than twelve months in duration on our Consolidated Balance Sheets as right-of-use assets and lease liabilities of approximately $350 as of January 1, 2019. We adopted the standard using the prospective approach and did not retrospectively apply to prior periods. Right-of-use assets are recorded in Other noncurrent assets on our Consolidated Balance Sheets. Current and non-current lease liabilities are recorded in Accrued expenses and other liabilities and Other noncurrent liabilities, respectively, on our Consolidated Balance Sheets. We have made certain assumptions and judgments when applying ASC 842, the most significant of which are: • We elected the package of practical expedients available for transition which allow us to not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. • We did not elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. • For all asset classes, we elected to not recognize a right-of-use asset and lease liability for short-term leases. • For all asset classes, we elected to not separate non-lease components from lease components to which they relate and have accounted for the combined lease and non-lease components as a single lease component. • The determination of the discount rate used in a lease is our incremental borrowing rate which is based on what we would normally pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments. Leases December 2019 Right-of-use assets $ 384 Lease liabilities, current $ 86 Lease liabilities, non-current $ 301 Other information Weighted-average remaining lease term 6.2 years Weighted-average discount rate 3.34 % Lease expense totaled $133 , $138 , and $125 in 2019 , 2018 and 2017 . Future Obligations We have purchase commitments for materials, supplies, services and property, plant and equipment as part of the normal course of business. In addition, we lease various manufacturing, warehousing and distribution facilities, administrative and sales offices as well as equipment under operating leases. Refer to Note 10 for more information on the debt obligations. Future Obligations 2020 2021 2022 2023 2024 Thereafter Debt repayments $ 860 $ 750 $ — $ 612 $ 1,546 $ 7,433 Purchase obligations $ 1,373 $ 19 $ 9 $ 6 $ 6 $ 6 Minimum lease payments $ 94 $ 74 $ 62 $ 38 $ 32 $ 95 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLE ASSETS We completed our annual impairment tests of goodwill in 2019 and 2018 and concluded in each year that no impairments exist. Summary of Other Intangible Assets Weighted Average Amortization Period (Years) Gross Less Net Developed technologies 2019 14 $ 3,731 $ 1,271 $ 2,460 2018 13 3,426 1,115 2,311 Customer relationships 2019 16 $ 2,160 $ 848 $ 1,312 2018 15 2,155 703 1,452 Patents 2019 11 $ 348 $ 265 $ 83 2018 12 332 231 101 Trademarks 2019 18 $ 362 $ 136 $ 226 2018 18 349 108 241 In-process research and development 2019 N/A $ 110 — $ 110 2018 N/A 6 — 6 Other 2019 8 $ 125 $ 89 $ 36 2018 11 128 76 52 Total 2019 14 $ 6,836 $ 2,609 $ 4,227 2018 14 $ 6,396 $ 2,233 $ 4,163 Changes in the Net Carrying Value of Goodwill by Segment Orthopaedics MedSurg Neurotechnology and Spine Total 2017 $ 2,426 $ 3,509 $ 1,233 $ 7,168 Additions and adjustments 4 100 1,366 1,470 Foreign exchange (31 ) (28 ) (16 ) (75 ) 2018 $ 2,399 $ 3,581 $ 2,583 $ 8,563 Additions and adjustments — 229 318 547 Foreign exchange (13 ) (11 ) (17 ) (41 ) 2019 $ 2,386 $ 3,799 $ 2,884 $ 9,069 Estimated Amortization Expense 2020 2021 2022 2023 2024 $ 457 $ 440 $ 435 $ 414 $ 384 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Capital Stock [Abstract] | |
Capital Stock | CAPITAL STOCK The aggregate number of shares of all classes of stock with which we are authorized to issue is up to 1,000,500,000 , divided into two classes consisting of 500,000 shares of $1 par value preferred stock and 1,000,000,000 shares of common stock with a par value of $0.10 . No shares of preferred stock were outstanding on December 31, 2019 . In 2019 we repurchased 1.9 million shares at a cost of $307 . The manner, timing and amount of repurchases are determined by management based on an evaluation of market conditions, stock price and other factors and are subject to regulatory considerations. Purchases are made from time-to-time in the open market, in privately negotiated transactions or otherwise. On December 31, 2019 the total dollar value of shares that could be purchased under our authorized repurchase program was $1,033 . Shares reserved for future compensation grants of our common stock were 31 million and 33 million on December 31, 2019 and 2018 . Stock Options We measure the cost of employee stock options based on the grant-date fair value and recognize that cost using the straight-line method over the period in which a recipient is required to provide services in exchange for the options, typically the vesting period. The weighted-average fair value per share of options is estimated on the date of grant using the Black-Scholes option pricing model. Option Value and Assumptions 2019 2018 2017 Weighted-average fair value per share $ 36.30 $ 28.52 $ 22.43 Assumptions: Risk-free interest rate 2.6 % 2.7 % 2.0 % Expected dividend yield 1.1 % 1.2 % 1.5 % Expected stock price volatility 18.3 % 16.8 % 19.4 % Expected option life (years) 5.9 6.0 6.0 The risk-free interest rate for periods within the expected life of options granted is based on the United States Treasury yield curve in effect at the time of grant. Expected stock price volatility is based on the historical volatility of our stock. The expected option life, representing the period of time that options granted are expected to be outstanding, is based on historical option exercise and employee termination data. 2019 Stock Option Activity Shares Weighted Weighted-Average Aggregate Outstanding January 1 14.1 $ 97.69 Granted 2.1 179.41 Exercised (2.6 ) 75.74 Canceled (0.8 ) 134.73 Outstanding December 31 12.8 $ 113.10 6.0 $ 1,242.8 Exercisable December 31 6.8 $ 85.62 4.4 $ 853.2 Options expected to vest 5.4 $ 143.38 7.7 $ 360.8 The aggregate intrinsic value of options, which represents the cumulative difference between the fair market value of the underlying common stock and the option exercise prices, exercised was $294 , $247 , and $184 in 2019 , 2018 and 2017 . Exercise prices for options outstanding ranged from $51.82 to $209.78 on December 31, 2019 . On December 31, 2019 there was $101 of unrecognized compensation cost related to nonvested stock options granted under the long-term incentive plans; that cost is expected to be recognized over the weighted-average period of approximately 1.5 years . Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) Activity Shares Weighted Average RSUs PSUs RSUs PSUs Nonvested on January 1 0.9 0.3 $ 129.90 $ 122.39 Granted 0.4 — 175.96 180.70 Vested (0.4 ) (0.1 ) 120.56 98.10 Canceled or forfeited (0.1 ) — 146.37 136.56 Nonvested on December 31 0.8 0.2 $ 158.80 $ 152.44 On December 31, 2019 there was $67 of unrecognized compensation cost related to nonvested RSUs. That cost is expected to be recognized as expense over the weighted-average period of approximately one year . The weighted-average grant date fair value per share of RSUs granted was $175.96 and $150.23 in 2019 and 2018 . The fair value of RSUs and PSUs vested in 2019 was $52 and $10 . On December 31, 2019 there was $15 of unrecognized compensation cost related to nonvested PSUs; the cost is expected to be recognized as expense over the weighted-average period of approximately one year . Employee Stock Purchase Plans (ESPP) Full- and part-time employees may participate in our ESPP provided they meet certain eligibility requirements. The purchase price for our common stock under the terms of the ESPP is defined as 95% of the closing stock price on the last trading day of a purchase period. We issued 166,758 and 168,626 shares under the ESPP in 2019 and 2018 . |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Debt And Credit Facilities | DEBT AND CREDIT FACILITIES We have lines of credit issued by various financial institutions that are available to fund our day-to-day operating needs. Certain of our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on December 31, 2019 . Our commercial paper program allows us to have a maximum of $1,500 in commercial paper outstanding with maturities up to 397 days from the date of issuance. On December 31, 2019 there were no amounts outstanding under our commercial paper program. Summary of Total Debt 2019 2018 Senior unsecured notes: Rate Due 1.800% January 15, 2019 $ — $ 500 2.000% March 8, 2019 — 750 4.375% January 15, 2020 500 499 Variable November 30, 2020 333 343 2.625% March 15, 2021 749 747 1.125% November 30, 2023 609 627 3.375% May 15, 2024 587 584 0.250% December 3, 2024 938 — 3.375% November 1, 2025 746 746 3.500% March 15, 2026 991 990 2.125% November 30, 2027 829 853 3.650% March 7, 2028 596 595 0.750% March 1, 2029 884 — 2.625% November 30, 2030 712 733 1.000% December 3, 2031 823 — 4.100% April 1, 2043 391 391 4.375% May 15, 2044 395 395 4.625% March 15, 2046 981 980 Other 26 126 Total debt $ 11,090 $ 9,859 Less current maturities 859 1,373 Total long-term debt $ 10,231 $ 8,486 2019 2018 Unamortized debt issuance costs $ 58 $ 50 Borrowing capacity on existing facilities $ 1,546 $ 1,548 Fair value of senior unsecured notes $ 11,910 $ 9,746 The fair value of the senior unsecured notes was estimated using quoted interest rates, maturities and amounts of borrowings based on quoted active market prices and yields that took into account the underlying terms of the debt instruments. Substantially all of our debt is classified within Level 2 of the fair value hierarchy. In January 2019 we repaid $500 of senior unsecured notes with a coupon of 1.800% that were due on January 15, 2019. In March 2019 we repaid $750 of senior unsecured notes with a coupon of 2.000% that were due on March 8, 2019. In December 2019 we issued €850 of senior unsecured notes with a fixed interest rate of 0.250% due on December 3, 2024, €800 of senior unsecured notes with a fixed interest rate of 0.750% due on March 1, 2029 and €750 of senior unsecured notes with a fixed interest rate of 1.000% due on December 3, 2031 . Our annual interest expense arising from the issuance of the 2029 notes will be reduced by the benefit from the cash flow hedges that were terminated in conjunction with the issuance. Refer to Note 4 for further information. The 2024 and 2031 notes are subject to a Special Mandatory Redemption in which we will be required to redeem the notes in whole at a price equal to 101% of the aggregate principal amount plus accrued and unpaid interest if we do not consummate the Wright tender offer on or before February 4, 2021. In January 2020 we repaid $500 of senior unsecured notes with a coupon of 4.375% that were due on January 15, 2020 . Interest expense, including required fees incurred on outstanding debt and credit facilities that were included in other expense, totaled $287 , $264 , and $247 in 2019 , 2018 and 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rate was 18.7% , (50.8)% and 50.6% for 2019 , 2018 and 2017 . The effective income tax rate for 2019 reflects the tax related to the transfer of intellectual properties between tax jurisdictions and the continued lower effective income tax rates as a result of our European operations. The effective income tax rate for 2018 reflects the tax effect related to the transfer of intellectual properties between tax jurisdictions, the continuing impact of complying with the Tax Cuts and Jobs Act of 2017 (the Tax Act) and continued lower effective income tax rates as a result of our European operations. The effective income tax rate for 2017 reflects compliance with the Tax Act offset by lower effective income tax rates as a result of our European operations. Effective Income Tax Rate Reconciliation 2019 2018 2017 United States federal statutory rate 21.0 % 21.0 % 35.0 % United States state and local income taxes, less federal deduction 1.7 0.4 1.2 Foreign income tax at rates other than 21% (4.6 ) (6.5 ) (21.0 ) Tax Cuts and Jobs Act of 2017 transition tax — 2.2 38.0 Tax Cuts and Jobs Act of 2017 deferred tax changes — (0.6 ) 2.3 Tax related to repatriation of foreign earnings (0.5 ) 0.5 — Intellectual property transfer 3.5 (63.8 ) — Other (2.4 ) (4.0 ) (4.9 ) Effective income tax rate 18.7 % (50.8 )% 50.6 % In December 2017 the Tax Act was signed into law in the United States. The law includes significant changes to the United States corporate income tax system, including a federal corporate rate reduction, limitations on the deductibility of certain expenses and the transition of United States international taxation from a worldwide tax system to a territorial tax system. As part of the transition to a territorial tax system, the Tax Act requires taxpayers to calculate a one-time transition tax based on undistributed earnings of foreign subsidiaries. The Tax Act subjects a United States shareholder to tax on Global Intangible Low-Taxed Income (GILTI) earned by certain foreign subsidiaries. We have elected to account for GILTI tax in the year the tax is incurred. Earnings Before Income Taxes 2019 2018 2017 United States $ 366 $ 509 $ 499 International 2,196 1,847 1,564 Total $ 2,562 $ 2,356 $ 2,063 Components of Income Tax Expense (Benefit) Current income tax expense: 2019 2018 2017 United States federal $ (17 ) $ 178 $ 836 United States state and local 46 30 38 International 324 177 133 Total current income tax expense $ 353 $ 385 $ 1,007 Deferred income tax (benefit) expense: United States federal $ 10 $ (44 ) $ 84 United States state and local (1 ) (20 ) (9 ) International 117 (1,518 ) (39 ) Total deferred income tax (benefit) expense $ 126 $ (1,582 ) $ 36 Total income tax (benefit) expense $ 479 $ (1,197 ) $ 1,043 Interest and penalties included in other income (expense), net were expense of ($9) , ($9) and ($28) in 2019 , 2018 and 2017 . The United States federal deferred income tax benefit (expense) includes the utilization of net operating loss carryforwards of $50 , $31 and $32 in 2019 , 2018 and 2017 . Deferred Income Tax Assets and Liabilities Deferred income tax assets: 2019 2018 Inventories $ 415 $ 390 Product-related liabilities 57 60 Other accrued expenses 221 222 Depreciation and amortization 1,363 1,504 State income taxes 65 70 Share-based compensation 49 47 Net operating loss carryforwards 95 134 Other 207 177 Total deferred income tax assets $ 2,472 $ 2,604 Less valuation allowances (75 ) (66 ) Net deferred income tax assets $ 2,397 $ 2,538 Deferred income tax liabilities: Depreciation and amortization $ (893 ) $ (865 ) Undistributed earnings (37 ) (46 ) Other — (3 ) Total deferred income tax liabilities $ (930 ) $ (914 ) Net deferred income tax assets $ 1,467 $ 1,624 Reported as: Noncurrent deferred income tax assets $ 1,575 $ 1,678 Noncurrent liabilities—Other liabilities (108 ) (54 ) Total $ 1,467 $ 1,624 Accrued interest and penalties were $94 and $85 on December 31, 2019 and 2018 which were reported in current and noncurrent accrued expenses and other liabilities. Net operating loss carryforwards totaling $378 on December 31, 2019 are available to reduce future taxable earnings of certain domestic and foreign subsidiaries. United States loss carryforwards of $358 expire through 2045. International loss carryforwards of $20 begin to expire in 2037; however, some have no expiration. We also have a tax credit carryforward of $65 with $63 being subject to a full valuation allowance. The credits with a full valuation allowance have no expiration; however, we do not anticipate generating income tax in excess of the credits in the foreseeable future. We recorded a transition tax on undistributed foreign earnings as required by the Tax Act. No other provision was made for United States income taxes that may result from future remittances of the undistributed earnings of foreign subsidiaries that are determined to be indefinitely reinvested. Determination of the total amount of unrecognized deferred income tax on undistributed earnings of foreign subsidiaries is not practicable. Uncertain Income Tax Positions 2019 2018 Beginning uncertain tax positions $ 528 $ 540 Increases related to current year income tax positions 62 22 Increases related to prior year income tax positions 5 25 Decreases related to prior year income tax positions: Settlements and resolutions of income tax audits (78 ) (37 ) Statute of limitations expirations (40 ) (14 ) Foreign currency translation (5 ) (8 ) Ending uncertain tax positions $ 472 $ 528 Reported as: Noncurrent liabilities—Income taxes $ 472 $ 528 Our income tax expense would have been reduced by $468 and $521 on December 31, 2019 and 2018 had these uncertain income tax positions been favorably resolved. It is reasonably possible that the amount of unrecognized tax benefits will significantly change due to one or more of the following events in the next 12 months: expiring statutes, audit activity, tax payments, competent authority proceedings related to transfer pricing or final decisions in matters that are the subject of controversy in various taxing jurisdictions in which we operate, including inventory transfer pricing, cost sharing, product royalty and foreign branch arrangements. We are not able to reasonably estimate the amount or the future periods in which changes in unrecognized tax benefits may be resolved. Interest and penalties incurred associated with uncertain tax positions are included in other income (expense), net. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Plans | RETIREMENT PLANS Defined Contribution Plans We provide certain employees with defined contribution plans and other types of retirement plans. A portion of our retirement plan expense under the defined contribution plans is funded with Stryker common stock. The use of Stryker common stock represents a non-cash operating activity that is not reflected in our Consolidated Statements of Cash Flows. 2019 2018 2017 Plan expense $ 205 $ 180 $ 181 Expense funded with Stryker common stock 31 29 25 Stryker common stock held by plan: Dollar amount 470 358 353 Shares (in millions) 2.2 2.3 2.3 Value as a percentage of total plan assets 12 % 12 % 11 % Defined Benefit Plans Certain of our subsidiaries have both funded and unfunded defined benefit pension plans covering some or all of their employees. Substantially all of the defined benefit pension plans have projected benefit obligations in excess of plan assets. Discount Rate The discount rates were selected using a hypothetical portfolio of high quality bonds on December 31 that would provide the necessary cash flows to match our projected benefit payments. Effective January 1, 2017, in countries where it was possible, we elected to change the method to calculate the service cost and interest cost components of net periodic benefit costs for our defined benefit plans and will measure these costs by applying the specific spot rates along the yield curve of the projected cash flows for the respective plans. Our defined benefit plans previously utilized the yield curve approach to establish discount rates and we believe the new approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and the corresponding spot yield curve rates. The change does not affect the measurement of our total benefit obligations for those plans and is accounted for as a change in accounting estimate inseparable from a change in accounting principle, which is applied prospectively. The reductions in service and interest costs for 2017 associated with this change in estimate are nominal. Expected Return on Plan Assets The expected return on plan assets is determined by applying the target allocation in each asset category of plan investments to the anticipated return for each asset category based on historical and projected returns. Components of Net Periodic Pension Cost Net periodic benefit cost: 2019 2018 2017 Service cost $ (41 ) $ (44 ) $ (42 ) Interest cost (12 ) (11 ) (10 ) Expected return on plan assets 12 12 11 Amortization of prior service credit 1 1 1 Recognized actuarial loss (9 ) (11 ) (9 ) Net periodic benefit cost $ (49 ) $ (53 ) $ (49 ) Changes in assets and benefit obligations recognized in OCI: Net actuarial gain (loss) $ (74 ) $ 11 $ (25 ) Recognized net actuarial loss 9 10 9 Prior service (credit) cost and transition amount (1 ) (1 ) (1 ) Total recognized in other comprehensive income (loss) $ (66 ) $ 20 $ (17 ) Total recognized in net periodic benefit cost and OCI $ (115 ) $ (33 ) $ (66 ) Weighted-average rates used to determine net periodic benefit cost: Discount rate 1.9 % 1.8 % 1.8 % Expected return on plan assets 3.5 % 3.3 % 3.3 % Rate of compensation increase 2.9 % 2.8 % 2.8 % Weighted-average discount rate used to determine projected benefit obligations 1.0 % 1.9 % 1.8 % Investment Strategy The investment strategy for our defined benefit pension plans is to meet the liabilities of the plans as they fall due and to maximize the return on invested assets within appropriate risk tolerances. 2019 2018 Fair value of plan assets $ 428 $ 376 Benefit obligations (869 ) (735 ) Funded status $ (441 ) $ (359 ) Reported as: Current liabilities—accrued compensation $ (2 ) $ (2 ) Noncurrent liabilities—other liabilities (439 ) (357 ) Pre-tax amounts recognized in AOCI: Unrecognized net actuarial loss (250 ) (168 ) Unrecognized prior service credit 9 11 Total $ (241 ) $ (157 ) The estimated net actuarial loss for the defined benefit pension plans to be reclassified from AOCI into net periodic benefit cost is $12 in 2020 . The total estimated amortization of prior service credit and transition asset for the defined benefit pension plans to be reclassified from AOCI into net periodic benefit credit is $1 in 2020 . Change in Benefit Obligations 2019 2018 Beginning projected benefit obligations $ 735 $ 708 Service cost 41 44 Interest cost 12 11 Foreign exchange impact (12 ) (16 ) Employee contributions 6 6 Actuarial (gains) losses 116 (1 ) Acquisition — — Benefits paid (29 ) (17 ) Ending projected benefit obligations $ 869 $ 735 Ending accumulated benefit obligations $ 830 $ 702 Change in Plan Assets 2019 2018 Beginning fair value of plan assets $ 376 $ 370 Actual return 52 (2 ) Employer contributions 25 22 Employee contributions 6 6 Foreign exchange impact (5 ) (6 ) Acquisition — — Benefits paid (26 ) (14 ) Ending fair value of plan assets $ 428 $ 376 Allocation of Plan Assets 2020 Target 2019 Actual 2018 Actual Equity securities 23 % 22 % 26 % Debt securities 44 44 46 Other 33 34 28 Total 100 % 100 % 100 % Valuation of Plan Assets 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 7 $ — $ — $ 7 Equity securities 23 86 — 109 Corporate debt securities 3 173 — 176 Other 4 52 80 136 Total $ 37 $ 311 $ 80 $ 428 2018 Cash and cash equivalents $ 10 $ — $ — $ 10 Equity securities 20 85 — 105 Corporate debt securities 2 153 — 155 Other 7 43 56 106 Total $ 39 $ 281 $ 56 $ 376 Our Level 3 pension plan assets consist primarily of guaranteed investment contracts with insurance companies. The insurance contracts guarantee us principal repayment and a fixed rate of return. The $24 increase in Level 3 pension plan assets is primarily related to actual returns and acquired assets. We expect to contribute $24 to our defined benefit pension plans in 2020 . Estimated Future Benefit Payments 2020 2021 2022 2023 2024 2025-2029 $ 19 $ 18 $ 18 $ 19 $ 19 $ 115 |
Summary of Quarterly Data (Unau
Summary of Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Data (Unaudited) | SUMMARY OF QUARTERLY DATA (UNAUDITED) 2019 Quarters Mar 31 Jun 30 Sep 30 Dec 31 Net sales $ 3,516 $ 3,650 $ 3,587 $ 4,131 Gross profit 2,283 2,380 2,330 2,703 Earnings before income taxes 480 565 581 936 Net earnings 412 480 466 725 Net earnings per share of common stock: Basic $ 1.10 $ 1.29 $ 1.24 $ 1.94 Diluted $ 1.09 $ 1.26 $ 1.23 $ 1.90 Dividends declared per share of common stock $ 0.52 $ 0.52 $ 0.52 $ 0.575 2018 Quarters Mar 31 Jun 30 Sep 30 Dec 31 Net sales $ 3,241 $ 3,322 $ 3,242 $ 3,796 Gross profit 2,137 2,190 2,155 2,456 Earnings before income taxes 542 623 534 657 Net earnings 443 452 590 2,068 Net earnings per share of common stock: Basic $ 1.18 $ 1.21 $ 1.58 $ 5.52 Diluted $ 1.16 $ 1.19 $ 1.55 $ 5.44 Dividends declared per share of common stock $ 0.47 $ 0.47 $ 0.47 $ 0.52 |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | SEGMENT AND GEOGRAPHIC DATA We segregate our operations into three reportable business segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. The Corporate and Other category shown in the table below includes corporate and administration, corporate initiatives and share-based compensation, which includes compensation related to employee stock options, restricted stock units and performance stock unit grants and director stock options and restricted stock unit grants. Segment Results 2019 2018 2017 Orthopaedics $ 5,252 $ 4,991 $ 4,713 MedSurg $ 6,574 6,045 5,557 Neurotechnology & Spine 3,058 2,565 2,174 Net sales $ 14,884 $ 13,601 $ 12,444 Orthopaedics $ 348 $ 350 $ 337 MedSurg 379 285 315 Neurotechnology & Spine 218 176 142 Segment depreciation and amortization $ 945 $ 811 $ 794 Corporate and Other 99 155 65 Total depreciation and amortization $ 1,044 $ 966 $ 859 Orthopaedics $ 1,907 $ 1,804 $ 1,681 MedSurg 1,635 1,444 1,228 Neurotechnology & Spine 846 700 631 Segment operating income $ 4,388 $ 3,948 $ 3,540 Items not allocated to segments: Corporate and Other $ (480 ) $ (431 ) $ (402 ) Acquisition and integration-related charges (275 ) (123 ) (64 ) Amortization of intangible assets (464 ) (417 ) (371 ) Restructuring related and other charges (226 ) (220 ) (194 ) Medical device regulations (62 ) (12 ) — Recall-related matters (192 ) (23 ) (173 ) Regulatory and legal matters 24 (185 ) (39 ) Consolidated operating income $ 2,713 $ 2,537 $ 2,297 Segment Assets and Capital Spending Assets: 2019 2018 2017 Orthopaedics $ 9,085 $ 8,873 $ 7,486 MedSurg 12,066 10,417 9,759 Neurotechnology & Spine 7,646 7,260 4,105 Total segment assets $ 28,797 $ 26,550 $ 21,350 Corporate and Other 1,370 679 847 Total assets $ 30,167 $ 27,229 $ 22,197 Capital spending: Orthopaedics $ 125 $ 134 $ 138 MedSurg 265 217 194 Neurotechnology & Spine 29 31 50 Total segment capital spending $ 419 $ 382 $ 382 Corporate and Other 230 190 216 Total capital spending $ 649 $ 572 $ 598 We measure the financial results of our reportable segments using an internal performance measure that excludes acquisition and integration-related charges, restructuring-related charges, reserves for certain product recall matters and reserves for certain legal and regulatory matters. Identifiable assets are those assets used exclusively in the operations of each business segment or allocated when used jointly. Corporate assets are principally cash and cash equivalents, marketable securities and property, plant and equipment. The countries in which we have local revenue generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe, Middle East, Africa; Asia Pacific; and other foreign countries, which include Canada and countries in the Latin American region. Net sales are reported based off the geographic area of the Stryker location where the sales to the customer originated. Geographic Information Net Sales Net Property, Plant and Equipment 2019 2018 2017 2019 2018 United States $ 10,957 $ 9,848 $ 9,059 $ 1,561 $ 1,348 Europe, Middle East, Africa 1,888 1,793 1,567 838 669 Asia Pacific 1,617 1,532 1,413 95 96 Other countries 422 428 405 73 178 Total $ 14,884 $ 13,601 $ 12,444 $ 2,567 $ 2,291 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Abstract] | |
Nature of Operations | Stryker (the "Company," "we," "us," or "our") is one of the world's leading medical technology companies and, together with its customers, is driven to make healthcare better. The Company offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that improve patient and hospital outcomes. Our products include implants used in joint replacement and trauma surgeries; surgical equipment and surgical navigation systems; endoscopic and communications systems; patient handling, emergency medical equipment and intensive care disposable products; neurosurgical, neurovascular and spinal devices; as well as other products used in a variety of medical specialties. |
Basis of Presentation and Consideration | The Consolidated Financial Statements include the Company and its subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. We have no material interests in variable interest entities and none that require consolidation. Certain prior year amounts have been reclassified to conform with current year presentation in our Consolidated Financial Statements. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of net sales and expenses in the reporting period. Actual results could differ from those estimates. |
Revenue Recognition | Sales are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration we expect to receive in exchange for satisfying the performance obligations. Our sales continue to be recognized primarily when we transfer control to the customer, which can be on the date of shipment, the date of receipt by the customer or, for most Orthopaedics products, when we have received a purchase order and appropriate notification the product has been used or implanted. Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time. Sales represent the amount of consideration we expect to receive from customers in exchange for transferring products and services. Net sales exclude sales, value added and other taxes we collect from customers. Other costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of most of our sales. We extend terms of payment to our customers based on commercially reasonable terms for the markets of our customers, while also considering their credit quality. A provision for estimated sales returns, discounts and rebates is recognized as a reduction of sales in the same period that the sales are recognized. Our estimate of the provision for sales returns has been established based on contract terms with our customers and historical business practices and current trends. Shipping and handling costs charged to customers are included in net sales. |
Cost of Sales | Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, warehousing costs and other shipping and handling activity. |
Research, Development and Engineering Expenses | Research and development costs are charged to expense as incurred. Costs include research, development and engineering activities relating to the development of new products, improvement of existing products, technical support of products and compliance with governmental regulations for the protection of customers and patients. Costs primarily consist of salaries, wages, consulting and depreciation and maintenance of research facilities and equipment. |
Selling, General and Administrative Expenses | Selling, general and administrative expense is primarily comprised of selling expenses, marketing expenses, administrative and other indirect overhead costs, amortization of loaner instrumentation, depreciation and amortization expense of non-manufacturing assets and other miscellaneous operating items. |
Currency Translation | Financial statements of subsidiaries outside the United States generally are measured using the local currency as the functional currency. Adjustments to translate those statements into United States Dollars are recorded in other comprehensive income (OCI). Transactional exchange gains and losses are included in earnings. |
Cash Equivalents | Highly liquid investments with remaining stated maturities of three months or less when purchased are considered cash equivalents and recorded at cost. |
Marketable Securities | Marketable securities consist of marketable debt securities, certificates of deposit and mutual funds. Mutual funds are acquired to offset changes in certain liabilities related to deferred compensation arrangements and are expected to be used to settle these liabilities. Pursuant to our investment policy, all individual marketable security investments must have a minimum credit quality of single A (Standard & Poor’s and Fitch) and A2 (Moody’s Corporation) at the time of acquisition, while the overall portfolio of marketable securities must maintain a minimum average credit quality of double A (Standard & Poor’s and Fitch) or Aa (Moody’s Corporation). In the event of a rating downgrade below the minimum credit quality subsequent to purchase, the marketable security investment is evaluated to determine the appropriate action to take to minimize the overall risk to our marketable security investment portfolio. Our marketable securities are classified as available-for-sale and trading securities. Investments in trading securities represent participant-directed investments of deferred employee compensation. |
Accounts Receivable | Accounts receivable consists of trade and other miscellaneous receivables. An allowance is maintained for doubtful accounts for estimated losses in the collection of accounts receivable. Estimates are made regarding the ability of customers to make required payments based on historical credit experience and expected future trends. Accounts receivable are written off when all reasonable collection efforts are exhausted. |
Inventories | Inventories are stated at the lower of cost or net realizable value, with cost generally determined using the first-in, first-out (FIFO) cost method. For excess and obsolete inventory resulting from the potential inability to sell specific products at prices in excess of current carrying costs, reserves are maintained to reduce current carrying cost to market prices. |
Financial Instruments | Our financial instruments consist of cash, cash equivalents, marketable securities, accounts receivable, other investments, accounts payable, debt and foreign currency exchange contracts. The carrying value of our financial instruments, with the exception of our senior unsecured notes, approximates fair value on December 31, 2019 and 2018 . Refer to Notes 3 and 10 for further details. All marketable securities are recognized at fair value. Adjustments to the fair value of marketable securities that are classified as available-for-sale are recorded as increases or decreases, net of income taxes, within accumulated other comprehensive income (AOCI) in shareholders’ equity and adjustments to the fair value of marketable securities that are classified as trading are recorded in earnings. The amortized cost of marketable debt securities is adjusted for amortization of premiums and discounts to maturity computed under the effective interest method. Such amortization and interest and realized gains and losses are included in other income (expense), net. The cost of securities sold is determined by the specific identification method. We review declines in the fair value of our investments classified as available-for-sale to determine whether the decline in fair value is other-than-temporary. The resulting losses from other-than-temporary impairments of available-for-sale marketable debt securities are included in earnings. |
Derivatives | All derivatives are recognized at fair value and reported on a gross basis. We enter into forward currency exchange contracts to mitigate the impact of currency fluctuations on transactions denominated in nonfunctional currencies, thereby limiting our risk that would otherwise result from changes in exchange rates. The periods of the forward currency exchange contracts correspond to the periods of the exposed transactions, with realized gains and losses included in the measurement and recording of transactions denominated in the nonfunctional currencies. All forward currency exchange contracts are recorded at their fair value each period. Forward currency exchange contracts designated as cash flow hedges are designed to hedge the variability of cash flows associated with forecasted transactions denominated in a foreign currency that will take place in the future. These nonfunctional currency exposures principally relate to forecasted intercompany sales and purchases of manufactured products and generally have maturities up to eighteen months. Changes in value of derivatives designated as cash flow hedges are recorded in AOCI on the Consolidated Balance Sheets until earnings are affected by the variability of the underlying cash flows. At that time, the applicable amount of gain or loss from the derivative instrument that is deferred in shareholders’ equity is reclassified into earnings and is included in cost of goods sold in the Consolidated Statements of Earnings. Cash flows associated with these hedges are included in cash from operations in the same category as the cash flows from the items being hedged. Forward currency exchange contracts are used to offset our exposure to the change in value of specific foreign currency denominated assets and liabilities, primarily intercompany payables and receivables. These derivatives are not designated as hedges and, therefore, changes in the value of these forward contracts are recognized in earnings, thereby offsetting the current earnings effect of the related changes in value of foreign currency denominated assets and liabilities. The estimated fair value of our forward currency exchange contracts represents the measurement of the contracts at month-end spot rates as adjusted by current forward points. From time to time, we designate derivative and non-derivative financial instruments as net investment hedges of our investments in certain international subsidiaries. For derivative instruments that are designated and qualify as a net investment hedge, the effective portion of the derivative's gain or loss is recognized in OCI and reported as a component of AOCI. We have elected to use the spot method to assess effectiveness for our derivatives designated as net investment hedges. Accordingly, the change in fair value attributable to changes in the spot rate is recorded in AOCI. We exclude the spot-forward difference from the assessment of hedge effectiveness and amortize this amount separately on a straight-line basis over the term of the forward contracts. This amortization will be recorded in Other income (expense), net in our Consolidated Statements of Earnings. From time to time, we designate forward starting interest rate derivative instruments as cash flow hedges to manage the exposure to interest rate volatility with regard to future issuance and refinancing of debt. The effective portion of the gain or loss on a forward starting interest rate derivative instrument that is designated and qualifies as a cash flow hedge is reported as a component of AOCI. Beginning in the period in which the debt refinancing occurs and the related derivative instruments is terminated, the effective portion of the gains or losses is then reclassified into interest expense over the term of the related debt. Interest rate derivative instruments designated as fair value hedges have been used in the past to manage the exposure to interest rate movements and to reduce borrowing costs by converting fixed-rate debt into floating-rate debt. Under these agreements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. |
Property, Plant and Equipment | Property, plant and equipment is stated at cost. Depreciation is generally computed by the straight-line method over the estimated useful lives of three to 30 years for buildings and improvements and three to 10 years for machinery and equipment. |
Goodwill and Other Intangible Assets | Goodwill represents the excess of purchase price over fair value of tangible net assets of acquired businesses at the acquisition date, after amounts allocated to other identifiable intangible assets. Factors that contribute to the recognition of goodwill include synergies that are specific to our business and not available to other market participants and are expected to increase net sales and profits; acquisition of a talented workforce; cost savings opportunities; the strategic benefit of expanding our presence in core and adjacent markets; and diversifying our product portfolio. The fair values of other identifiable intangible assets acquired in a business combination are primarily determined using the income approach. Other intangible assets include, but are not limited to, developed technology, customer and distributor relationships (which reflect expected continued customer or distributor patronage) and trademarks and patents. Intangible assets with determinable useful lives are amortized on a straight-line basis over their estimated useful lives of four to 40 years. Certain acquired trade names are considered to have indefinite lives and are not amortized, but are assessed annually for potential impairment as described below. In some of our acquisitions, we acquire in-process research and development (IPRD) intangible assets. For acquisitions accounted for as business combinations IPRD is considered to be an indefinite-lived intangible asset until the research is completed (then it becomes a determinable-lived intangible asset) or determined to have no future use (then it is impaired). For asset acquisitions IPRD is expensed immediately unless there is an alternative future use. |
Goodwill, Intangibles and Long-Lived Asset Impairment Tests | We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill. In certain circumstances, we may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. Indefinite-lived intangible assets are also tested at least annually for impairment by comparing the individual carrying values to the fair value. We review long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows. Undiscounted cash flows expected to be generated by the related assets are estimated over the asset's useful life based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Assets classified as held for sale are recorded at the lower of carrying amount or fair value less costs to sell. |
Share-Based Compensation | We use share based compensation in the form of stock options, restricted stock units (RSUs) and performance stock units (PSUs). Stock options are granted under long-term incentive plans to certain key employees and non-employee directors at an exercise price not less than the fair market value of the underlying common stock, which is the quoted closing price of our common stock on the day prior to the date of grant. The options are granted for periods of up to 10 years and become exercisable in varying installments. We grant RSUs to key employees and non-employee directors and PSUs to certain key employees under our long-term incentive plans. The fair value of RSUs is determined based on the number of shares granted and the quoted closing price of our common stock on the date of grant, adjusted for the fact that RSUs do not include anticipated dividends. RSUs generally vest in one-third increments over a three -year period and are settled in stock. PSUs are earned over a three -year performance cycle and vest in March of the year following the end of that performance cycle. The number of PSUs that will ultimately be earned is based on our performance relative to pre-established goals in that three -year performance cycle. The fair value of PSUs is determined based on the quoted closing price of our common stock on the day of grant. Compensation expense is recognized in the Consolidated Statements of Earnings based on the estimated fair value of the awards on the grant date. Compensation expense recognized reflects an estimate of the number of awards expected to vest after taking into consideration an estimate of award forfeitures based on actual experience and is recognized on a straight-line basis over the requisite service period, which is generally the period required to obtain full vesting. Management expectations related to the achievement of performance goals associated with PSU grants is assessed regularly and that assessment is used to determine whether PSU grants are expected to vest. If performance-based milestones related to PSU grants are not met or not expected to be met, any compensation expense recognized associated with such grants will be reversed. |
Income Taxes | Deferred income tax assets and liabilities are determined based on differences between financial reporting and income tax bases of assets and liabilities and are measured using the enacted income tax rates in effect for the years in which the differences are expected to reverse. Deferred income tax benefits generally represent the change in net deferred income tax assets and liabilities in the year. Other amounts result from adjustments related to acquisitions and foreign currency as appropriate. We operate in multiple income tax jurisdictions both within the United States and internationally. Accordingly, management must determine the appropriate allocation of income to each of these jurisdictions based on current interpretations of complex income tax regulations. Income tax authorities in these jurisdictions regularly perform audits of our income tax filings. Income tax audits associated with the allocation of this income and other complex issues, including inventory transfer pricing and cost sharing, product royalty and foreign branch arrangements, may require an extended period of time to resolve and may result in significant income tax adjustments if changes to the income allocation are required between jurisdictions with different income tax rates. |
New Accounting Pronouncements Not Yet Adopted and Accounting Pronouncements Recently Adopted | New Accounting Pronouncements Not Yet Adopted We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements. In June 2016 the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses for accounts receivables, loans and other financial instruments. The standard is not expected to have a material impact on our Consolidated Financial Statements. Accounting Pronouncements Recently Adopted On January 1, 2019 we adopted ASU 2016-02, Leases , and related amendments (ASC 842), which require lease assets and liabilities to be recorded on the balance sheet for leases with terms greater than twelve months. The adoption of this update did not have a material impact on our Consolidated Financial Statements. Refer to Note 7 for further information. On January 1, 2019 we adopted ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities , which amends and simplifies hedge accounting guidance, as well as improves presentation and disclosure to align the economic effects of risk management strategies in the financial statements. The adoption of this update did not have a material impact on our Consolidated Financial Statements. No other new accounting pronouncements were issued or became effective in the period that had, or are expected to have, a material impact on our Consolidated Financial Statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Impacts of Adoption of ASC 606 | Leases December 2019 Right-of-use assets $ 384 Lease liabilities, current $ 86 Lease liabilities, non-current $ 301 Other information Weighted-average remaining lease term 6.2 years Weighted-average discount rate 3.34 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets Measured at Fair Value 2019 2018 Cash and cash equivalents $ 4,337 $ 3,616 Trading marketable securities 149 118 Level 1 - Assets $ 4,486 $ 3,734 Available-for-sale marketable securities: Corporate and asset-backed debt securities $ 32 $ 38 United States agency debt securities 2 11 United States treasury debt securities 49 23 Certificates of deposit 5 11 Total available-for-sale marketable securities $ 88 $ 83 Foreign currency exchange forward contracts 226 77 Interest rate swap asset 17 — Level 2 - Assets $ 331 $ 160 Total assets measured at fair value $ 4,817 $ 3,894 Liabilities Measured at Fair Value 2019 2018 Deferred compensation arrangements $ 149 $ 118 Level 1 - Liabilities $ 149 $ 118 Foreign currency exchange forward contracts $ 23 $ 20 Level 2 - Liabilities $ 23 $ 20 Contingent consideration: Beginning $ 117 $ 32 Additions 298 77 Change in estimate (10 ) 15 Settlements (99 ) (7 ) Ending $ 306 $ 117 Level 3 - Liabilities $ 306 $ 117 Total liabilities measured at fair value $ 478 $ 255 |
Available-for-sale Securities | Fair Value of Available for Sale Securities by Maturity 2019 2018 Due in one year or less $ 50 $ 51 Due after one year through three years $ 38 $ 32 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Securities in a Continuous Unrealized Loss Position Number of Investments Fair Value Corporate and Asset-Backed 2 $ 1 United States Treasury 6 13 Certificate of Deposit 4 1 Total 12 $ 15 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 2019 Cash Flow Net Investment Non-Designated Total Gross notional amount $ 801 $ 1,113 $ 6,174 $ 8,088 Maximum term in days 1646 Fair value: Other current assets $ 5 $ — $ 180 $ 185 Other noncurrent assets 1 40 — 41 Other current liabilities (10 ) — (11 ) (21 ) Other noncurrent liabilities (2 ) — — (2 ) Total fair value $ (6 ) $ 40 $ 169 $ 203 2018 Gross notional amount $ 870 $ — $ 5,466 $ 6,336 Maximum term in days 586 Fair value: Other current assets $ 15 $ — $ 28 $ 43 Other noncurrent assets 1 — 33 34 Other current liabilities (5 ) — (15 ) (20 ) Other noncurrent liabilities — — — — Total fair value $ 11 $ — $ 46 $ 57 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | I |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (AOCI) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reclassification Adjustments Out of Accumulated Other Comprehensive Income (AOCI) [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Marketable Securities Pension Plans Hedges Financial Statement Translation Total 2017 $ (4 ) $ (134 ) $ 28 $ (443 ) $ (553 ) OCI 2 (16 ) 36 (115 ) (93 ) Income taxes — 1 (9 ) 18 10 Reclassifications to: Cost of Sales — — (7 ) — (7 ) Other (income) expense (2 ) 10 — — 8 Income taxes — 2 2 — 4 Net OCI — (3 ) 22 (97 ) (78 ) 2018 $ (4 ) $ (137 ) $ 50 $ (540 ) $ (631 ) OCI — (74 ) 3 101 30 Income taxes — 26 — (21 ) 5 Reclassifications to: Cost of Sales — — (2 ) — (2 ) Other (income) expense 1 8 (5 ) (14 ) (10 ) Income taxes — (2 ) 1 3 2 Net OCI 1 (42 ) (3 ) 69 25 2019 $ (3 ) $ (179 ) $ 47 $ (471 ) $ (606 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of Acquisitions | Purchase price allocations for our significant acquisitions are presented below: Purchase Price Allocation of Acquired Net Assets 2019 Mobius OrthoSpace Tangible assets acquired: Accounts receivable $ 3 $ 1 Inventory 7 1 Other assets 2 1 Contingent consideration (4 ) — Liabilities (10 ) (29 ) Intangible assets: Customer relationship 7 — Developed technology and patents 60 120 In-process research and development 98 — Non-compete agreements 9 — Goodwill 301 114 Purchase price, net of cash acquired $ 473 $ 208 Weighted average life of intangible assets 12 18 2018 K2M Entellus Tangible assets acquired: Accounts receivable $ 58 $ 17 Inventory 131 14 Other assets 160 62 Contingent consideration — (79 ) Liabilities (257 ) (76 ) Intangible assets: Customer relationship 34 33 Distributor relationship 1 — Trade name 10 — Developed technology and patents 475 261 Internally developed software 2 — Goodwill 766 465 Purchase price, net of cash acquired $ 1,380 $ 697 Weighted average life of intangible assets 15 16 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Leases December 2019 Right-of-use assets $ 384 Lease liabilities, current $ 86 Lease liabilities, non-current $ 301 Other information Weighted-average remaining lease term 6.2 years Weighted-average discount rate 3.34 % |
Future Purchase Obligations and Minimum Lease Payments | Future Obligations 2020 2021 2022 2023 2024 Thereafter Debt repayments $ 860 $ 750 $ — $ 612 $ 1,546 $ 7,433 Purchase obligations $ 1,373 $ 19 $ 9 $ 6 $ 6 $ 6 Minimum lease payments $ 94 $ 74 $ 62 $ 38 $ 32 $ 95 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of the Company's Other Intangible Assets | Summary of Other Intangible Assets Weighted Average Amortization Period (Years) Gross Less Net Developed technologies 2019 14 $ 3,731 $ 1,271 $ 2,460 2018 13 3,426 1,115 2,311 Customer relationships 2019 16 $ 2,160 $ 848 $ 1,312 2018 15 2,155 703 1,452 Patents 2019 11 $ 348 $ 265 $ 83 2018 12 332 231 101 Trademarks 2019 18 $ 362 $ 136 $ 226 2018 18 349 108 241 In-process research and development 2019 N/A $ 110 — $ 110 2018 N/A 6 — 6 Other 2019 8 $ 125 $ 89 $ 36 2018 11 128 76 52 Total 2019 14 $ 6,836 $ 2,609 $ 4,227 2018 14 $ 6,396 $ 2,233 $ 4,163 |
Changes in the Net Carrying Amount of Goodwill by Segment | Changes in the Net Carrying Value of Goodwill by Segment Orthopaedics MedSurg Neurotechnology and Spine Total 2017 $ 2,426 $ 3,509 $ 1,233 $ 7,168 Additions and adjustments 4 100 1,366 1,470 Foreign exchange (31 ) (28 ) (16 ) (75 ) 2018 $ 2,399 $ 3,581 $ 2,583 $ 8,563 Additions and adjustments — 229 318 547 Foreign exchange (13 ) (11 ) (17 ) (41 ) 2019 $ 2,386 $ 3,799 $ 2,884 $ 9,069 |
Estimated Amortization Expense | Estimated Amortization Expense 2020 2021 2022 2023 2024 $ 457 $ 440 $ 435 $ 414 $ 384 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Capital Stock [Abstract] | |
Schedule of Fair Value Assumptions | Option Value and Assumptions 2019 2018 2017 Weighted-average fair value per share $ 36.30 $ 28.52 $ 22.43 Assumptions: Risk-free interest rate 2.6 % 2.7 % 2.0 % Expected dividend yield 1.1 % 1.2 % 1.5 % Expected stock price volatility 18.3 % 16.8 % 19.4 % Expected option life (years) 5.9 6.0 6.0 |
Summary of Stock Option Activity | 2019 Stock Option Activity Shares Weighted Weighted-Average Aggregate Outstanding January 1 14.1 $ 97.69 Granted 2.1 179.41 Exercised (2.6 ) 75.74 Canceled (0.8 ) 134.73 Outstanding December 31 12.8 $ 113.10 6.0 $ 1,242.8 Exercisable December 31 6.8 $ 85.62 4.4 $ 853.2 Options expected to vest 5.4 $ 143.38 7.7 $ 360.8 |
Summary of RSU and PSU Activity | Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) Activity Shares Weighted Average RSUs PSUs RSUs PSUs Nonvested on January 1 0.9 0.3 $ 129.90 $ 122.39 Granted 0.4 — 175.96 180.70 Vested (0.4 ) (0.1 ) 120.56 98.10 Canceled or forfeited (0.1 ) — 146.37 136.56 Nonvested on December 31 0.8 0.2 $ 158.80 $ 152.44 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
Maturities Of Long-Term Debt Disclosures | Summary of Total Debt 2019 2018 Senior unsecured notes: Rate Due 1.800% January 15, 2019 $ — $ 500 2.000% March 8, 2019 — 750 4.375% January 15, 2020 500 499 Variable November 30, 2020 333 343 2.625% March 15, 2021 749 747 1.125% November 30, 2023 609 627 3.375% May 15, 2024 587 584 0.250% December 3, 2024 938 — 3.375% November 1, 2025 746 746 3.500% March 15, 2026 991 990 2.125% November 30, 2027 829 853 3.650% March 7, 2028 596 595 0.750% March 1, 2029 884 — 2.625% November 30, 2030 712 733 1.000% December 3, 2031 823 — 4.100% April 1, 2043 391 391 4.375% May 15, 2044 395 395 4.625% March 15, 2046 981 980 Other 26 126 Total debt $ 11,090 $ 9,859 Less current maturities 859 1,373 Total long-term debt $ 10,231 $ 8,486 2019 2018 Unamortized debt issuance costs $ 58 $ 50 Borrowing capacity on existing facilities $ 1,546 $ 1,548 Fair value of senior unsecured notes $ 11,910 $ 9,746 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Income Tax Rate from Continuing Operations | Effective Income Tax Rate Reconciliation 2019 2018 2017 United States federal statutory rate 21.0 % 21.0 % 35.0 % United States state and local income taxes, less federal deduction 1.7 0.4 1.2 Foreign income tax at rates other than 21% (4.6 ) (6.5 ) (21.0 ) Tax Cuts and Jobs Act of 2017 transition tax — 2.2 38.0 Tax Cuts and Jobs Act of 2017 deferred tax changes — (0.6 ) 2.3 Tax related to repatriation of foreign earnings (0.5 ) 0.5 — Intellectual property transfer 3.5 (63.8 ) — Other (2.4 ) (4.0 ) (4.9 ) Effective income tax rate 18.7 % (50.8 )% 50.6 % |
Schedule of Provision for Income Taxes | Earnings Before Income Taxes 2019 2018 2017 United States $ 366 $ 509 $ 499 International 2,196 1,847 1,564 Total $ 2,562 $ 2,356 $ 2,063 Components of Income Tax Expense (Benefit) Current income tax expense: 2019 2018 2017 United States federal $ (17 ) $ 178 $ 836 United States state and local 46 30 38 International 324 177 133 Total current income tax expense $ 353 $ 385 $ 1,007 Deferred income tax (benefit) expense: United States federal $ 10 $ (44 ) $ 84 United States state and local (1 ) (20 ) (9 ) International 117 (1,518 ) (39 ) Total deferred income tax (benefit) expense $ 126 $ (1,582 ) $ 36 Total income tax (benefit) expense $ 479 $ (1,197 ) $ 1,043 |
Schedule of Difference in Income Tax Effects Comprising Company's Deferred Income Tax Assets and Liabilities | Deferred Income Tax Assets and Liabilities Deferred income tax assets: 2019 2018 Inventories $ 415 $ 390 Product-related liabilities 57 60 Other accrued expenses 221 222 Depreciation and amortization 1,363 1,504 State income taxes 65 70 Share-based compensation 49 47 Net operating loss carryforwards 95 134 Other 207 177 Total deferred income tax assets $ 2,472 $ 2,604 Less valuation allowances (75 ) (66 ) Net deferred income tax assets $ 2,397 $ 2,538 Deferred income tax liabilities: Depreciation and amortization $ (893 ) $ (865 ) Undistributed earnings (37 ) (46 ) Other — (3 ) Total deferred income tax liabilities $ (930 ) $ (914 ) Net deferred income tax assets $ 1,467 $ 1,624 Reported as: Noncurrent deferred income tax assets $ 1,575 $ 1,678 Noncurrent liabilities—Other liabilities (108 ) (54 ) Total $ 1,467 $ 1,624 |
Schedule of Unresolved Income Tax Positions | Uncertain Income Tax Positions 2019 2018 Beginning uncertain tax positions $ 528 $ 540 Increases related to current year income tax positions 62 22 Increases related to prior year income tax positions 5 25 Decreases related to prior year income tax positions: Settlements and resolutions of income tax audits (78 ) (37 ) Statute of limitations expirations (40 ) (14 ) Foreign currency translation (5 ) (8 ) Ending uncertain tax positions $ 472 $ 528 Reported as: Noncurrent liabilities—Income taxes $ 472 $ 528 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan Disclosures | 2019 2018 2017 Plan expense $ 205 $ 180 $ 181 Expense funded with Stryker common stock 31 29 25 Stryker common stock held by plan: Dollar amount 470 358 353 Shares (in millions) 2.2 2.3 2.3 Value as a percentage of total plan assets 12 % 12 % 11 % |
Schedule of Costs of Retirement Plans | Components of Net Periodic Pension Cost Net periodic benefit cost: 2019 2018 2017 Service cost $ (41 ) $ (44 ) $ (42 ) Interest cost (12 ) (11 ) (10 ) Expected return on plan assets 12 12 11 Amortization of prior service credit 1 1 1 Recognized actuarial loss (9 ) (11 ) (9 ) Net periodic benefit cost $ (49 ) $ (53 ) $ (49 ) Changes in assets and benefit obligations recognized in OCI: Net actuarial gain (loss) $ (74 ) $ 11 $ (25 ) Recognized net actuarial loss 9 10 9 Prior service (credit) cost and transition amount (1 ) (1 ) (1 ) Total recognized in other comprehensive income (loss) $ (66 ) $ 20 $ (17 ) Total recognized in net periodic benefit cost and OCI $ (115 ) $ (33 ) $ (66 ) Weighted-average rates used to determine net periodic benefit cost: Discount rate 1.9 % 1.8 % 1.8 % Expected return on plan assets 3.5 % 3.3 % 3.3 % Rate of compensation increase 2.9 % 2.8 % 2.8 % Weighted-average discount rate used to determine projected benefit obligations 1.0 % 1.9 % 1.8 % |
Schedule of Defined Benefit Plans Disclosures | 2019 2018 Fair value of plan assets $ 428 $ 376 Benefit obligations (869 ) (735 ) Funded status $ (441 ) $ (359 ) Reported as: Current liabilities—accrued compensation $ (2 ) $ (2 ) Noncurrent liabilities—other liabilities (439 ) (357 ) Pre-tax amounts recognized in AOCI: Unrecognized net actuarial loss (250 ) (168 ) Unrecognized prior service credit 9 11 Total $ (241 ) $ (157 ) |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | Change in Benefit Obligations 2019 2018 Beginning projected benefit obligations $ 735 $ 708 Service cost 41 44 Interest cost 12 11 Foreign exchange impact (12 ) (16 ) Employee contributions 6 6 Actuarial (gains) losses 116 (1 ) Acquisition — — Benefits paid (29 ) (17 ) Ending projected benefit obligations $ 869 $ 735 Ending accumulated benefit obligations $ 830 $ 702 |
Schedule of Changes in Fair Value of Plan Assets | Change in Plan Assets 2019 2018 Beginning fair value of plan assets $ 376 $ 370 Actual return 52 (2 ) Employer contributions 25 22 Employee contributions 6 6 Foreign exchange impact (5 ) (6 ) Acquisition — — Benefits paid (26 ) (14 ) Ending fair value of plan assets $ 428 $ 376 Valuation of Plan Assets 2019 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 7 $ — $ — $ 7 Equity securities 23 86 — 109 Corporate debt securities 3 173 — 176 Other 4 52 80 136 Total $ 37 $ 311 $ 80 $ 428 2018 Cash and cash equivalents $ 10 $ — $ — $ 10 Equity securities 20 85 — 105 Corporate debt securities 2 153 — 155 Other 7 43 56 106 Total $ 39 $ 281 $ 56 $ 376 |
Schedule of Allocation of Plan Assets | Allocation of Plan Assets 2020 Target 2019 Actual 2018 Actual Equity securities 23 % 22 % 26 % Debt securities 44 44 46 Other 33 34 28 Total 100 % 100 % 100 % |
Schedule of Expected Benefit Payments | Estimated Future Benefit Payments 2020 2021 2022 2023 2024 2025-2029 $ 19 $ 18 $ 18 $ 19 $ 19 $ 115 |
Summary of Quarterly Data (Un_2
Summary of Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Summary of Quarterly Data | 2019 Quarters Mar 31 Jun 30 Sep 30 Dec 31 Net sales $ 3,516 $ 3,650 $ 3,587 $ 4,131 Gross profit 2,283 2,380 2,330 2,703 Earnings before income taxes 480 565 581 936 Net earnings 412 480 466 725 Net earnings per share of common stock: Basic $ 1.10 $ 1.29 $ 1.24 $ 1.94 Diluted $ 1.09 $ 1.26 $ 1.23 $ 1.90 Dividends declared per share of common stock $ 0.52 $ 0.52 $ 0.52 $ 0.575 2018 Quarters Mar 31 Jun 30 Sep 30 Dec 31 Net sales $ 3,241 $ 3,322 $ 3,242 $ 3,796 Gross profit 2,137 2,190 2,155 2,456 Earnings before income taxes 542 623 534 657 Net earnings 443 452 590 2,068 Net earnings per share of common stock: Basic $ 1.18 $ 1.21 $ 1.58 $ 5.52 Diluted $ 1.16 $ 1.19 $ 1.55 $ 5.44 Dividends declared per share of common stock $ 0.47 $ 0.47 $ 0.47 $ 0.52 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Segment Results 2019 2018 2017 Orthopaedics $ 5,252 $ 4,991 $ 4,713 MedSurg $ 6,574 6,045 5,557 Neurotechnology & Spine 3,058 2,565 2,174 Net sales $ 14,884 $ 13,601 $ 12,444 Orthopaedics $ 348 $ 350 $ 337 MedSurg 379 285 315 Neurotechnology & Spine 218 176 142 Segment depreciation and amortization $ 945 $ 811 $ 794 Corporate and Other 99 155 65 Total depreciation and amortization $ 1,044 $ 966 $ 859 Orthopaedics $ 1,907 $ 1,804 $ 1,681 MedSurg 1,635 1,444 1,228 Neurotechnology & Spine 846 700 631 Segment operating income $ 4,388 $ 3,948 $ 3,540 Items not allocated to segments: Corporate and Other $ (480 ) $ (431 ) $ (402 ) Acquisition and integration-related charges (275 ) (123 ) (64 ) Amortization of intangible assets (464 ) (417 ) (371 ) Restructuring related and other charges (226 ) (220 ) (194 ) Medical device regulations (62 ) (12 ) — Recall-related matters (192 ) (23 ) (173 ) Regulatory and legal matters 24 (185 ) (39 ) Consolidated operating income $ 2,713 $ 2,537 $ 2,297 |
Sales and Other Financial Information by Business Segment | Segment Assets and Capital Spending Assets: 2019 2018 2017 Orthopaedics $ 9,085 $ 8,873 $ 7,486 MedSurg 12,066 10,417 9,759 Neurotechnology & Spine 7,646 7,260 4,105 Total segment assets $ 28,797 $ 26,550 $ 21,350 Corporate and Other 1,370 679 847 Total assets $ 30,167 $ 27,229 $ 22,197 Capital spending: Orthopaedics $ 125 $ 134 $ 138 MedSurg 265 217 194 Neurotechnology & Spine 29 31 50 Total segment capital spending $ 419 $ 382 $ 382 Corporate and Other 230 190 216 Total capital spending $ 649 $ 572 $ 598 |
Geographic Information on Net Sales and Long-Lived Assets | Geographic Information Net Sales Net Property, Plant and Equipment 2019 2018 2017 2019 2018 United States $ 10,957 $ 9,848 $ 9,059 $ 1,561 $ 1,348 Europe, Middle East, Africa 1,888 1,793 1,567 838 669 Asia Pacific 1,617 1,532 1,413 95 96 Other countries 422 428 405 73 178 Total $ 14,884 $ 13,601 $ 12,444 $ 2,567 $ 2,291 |
Significant Accounting Polici_3
Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Standards Update 2018-11 | |
Operating lease, liability | $ 350 |
Employee Stock Option | |
Vesting period | 10 years |
Restricted Stock Units (RSUs) | |
Performance period | 3 years |
Performance Stock Units (PSUs) | |
Vesting period | 3 years |
Minimum | |
Finite-lived intangible asset, useful life | 4 years |
Maximum | |
Finite-lived intangible asset, useful life | 40 years |
Building and Improvements | Minimum | |
Property, plant and equipment useful life | 3 years |
Building and Improvements | Maximum | |
Property, plant and equipment useful life | 30 years |
Machinery and Equipment | Minimum | |
Property, plant and equipment useful life | 3 years |
Machinery and Equipment | Maximum | |
Property, plant and equipment useful life | 10 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue Recognition [Abstract] | ||
Percentage of sales recognized as services over time (less than) | 10.00% | |
Contract liabilities | $ 313 | $ 327 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Sales Analysis (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 4,131 | $ 3,587 | $ 3,650 | $ 3,516 | $ 3,796 | $ 3,242 | $ 3,322 | $ 3,241 | $ 14,884 | $ 13,601 | $ 12,444 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 10,957 | 9,848 | 9,059 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,927 | 3,753 | 3,385 | ||||||||
Orthopaedics | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 5,252 | 4,991 | 4,713 | ||||||||
Orthopaedics | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,614 | 3,383 | 3,215 | ||||||||
Orthopaedics | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,638 | 1,608 | 1,498 | ||||||||
Orthopaedics | Knees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,815 | 1,701 | 1,595 | ||||||||
Orthopaedics | Knees | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,347 | 1,244 | 1,169 | ||||||||
Orthopaedics | Knees | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 469 | 457 | 426 | ||||||||
Orthopaedics | Hips | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,383 | 1,336 | 1,303 | ||||||||
Orthopaedics | Hips | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 882 | 838 | 820 | ||||||||
Orthopaedics | Hips | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 500 | 498 | 483 | ||||||||
Orthopaedics | Trauma and Extremities | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,639 | 1,580 | 1,478 | ||||||||
Orthopaedics | Trauma and Extremities | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,051 | 1,001 | 950 | ||||||||
Orthopaedics | Trauma and Extremities | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 588 | 579 | 528 | ||||||||
Orthopaedics | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 415 | 374 | 337 | ||||||||
Orthopaedics | Other | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 334 | 300 | 276 | ||||||||
Orthopaedics | Other | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 81 | 74 | 61 | ||||||||
MedSurg | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 6,574 | 6,045 | 5,557 | ||||||||
MedSurg | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 5,255 | 4,743 | 4,376 | ||||||||
MedSurg | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,319 | 1,302 | 1,181 | ||||||||
MedSurg | Instruments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,041 | 1,822 | 1,678 | ||||||||
MedSurg | Instruments | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,608 | 1,424 | 1,304 | ||||||||
MedSurg | Instruments | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 433 | 398 | 374 | ||||||||
MedSurg | Endoscopy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,983 | 1,846 | 1,652 | ||||||||
MedSurg | Endoscopy | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,577 | 1,432 | 1,290 | ||||||||
MedSurg | Endoscopy | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 406 | 414 | 362 | ||||||||
MedSurg | Medical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,264 | 2,118 | 1,969 | ||||||||
MedSurg | Medical | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,787 | 1,630 | 1,525 | ||||||||
MedSurg | Medical | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 477 | 488 | 444 | ||||||||
MedSurg | Sustainability | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 286 | 259 | 258 | ||||||||
MedSurg | Sustainability | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 283 | 257 | 257 | ||||||||
MedSurg | Sustainability | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3 | 2 | 1 | ||||||||
Neurotechnology and Spine | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,058 | 2,565 | 2,174 | ||||||||
Neurotechnology and Spine | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,088 | 1,722 | 1,468 | ||||||||
Neurotechnology and Spine | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 970 | 843 | 706 | ||||||||
Neurotechnology and Spine | Neurotechnology | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,973 | 1,737 | 1,423 | ||||||||
Neurotechnology and Spine | Neurotechnology | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,271 | 1,115 | 900 | ||||||||
Neurotechnology and Spine | Neurotechnology | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 702 | 622 | 523 | ||||||||
Neurotechnology and Spine | Spine | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,085 | 828 | 751 | ||||||||
Neurotechnology and Spine | Spine | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 817 | 607 | 568 | ||||||||
Neurotechnology and Spine | Spine | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 268 | $ 221 | $ 183 |
Fair Value Measurements (Valuat
Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | ||
Available-for-sale marketable securities: | $ 88 | $ 83 |
Total assets measured at fair value | 4,817 | 3,894 |
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | ||
Total liabilities measured at fair value | 478 | 255 |
(Level 1) | ||
Assets | ||
Available-for-sale marketable securities | 4,337 | 3,616 |
Trading marketable securities | 149 | 118 |
Total assets measured at fair value | 4,486 | 3,734 |
Liabilities: | ||
Deferred compensation arrangements | 149 | 118 |
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | ||
Total liabilities measured at fair value | 149 | 118 |
(Level 2) | ||
Assets | ||
Total assets measured at fair value | 331 | 160 |
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | ||
Total liabilities measured at fair value | 23 | 20 |
(Level 2) | Foreign currency exchange forward contracts | ||
Assets | ||
Foreign currency exchange forward contracts | 226 | 77 |
Interest rate swap asset | 226 | 77 |
Liabilities: | ||
Foreign currency exchange forward contracts | 23 | 20 |
(Level 2) | Interest rate swap asset | ||
Assets | ||
Foreign currency exchange forward contracts | 17 | 0 |
Interest rate swap asset | 17 | 0 |
(Level 2) | Available-for-sale marketable securities: | ||
Assets | ||
Available-for-sale marketable securities: | 88 | 83 |
(Level 2) | Available-for-sale marketable securities: | Corporate and asset-backed debt securities | ||
Assets | ||
Available-for-sale marketable securities: | 32 | 38 |
(Level 2) | Available-for-sale marketable securities: | United States agency debt securities | ||
Assets | ||
Available-for-sale marketable securities: | 2 | 11 |
(Level 2) | Available-for-sale marketable securities: | United States treasury debt securities | ||
Assets | ||
Available-for-sale marketable securities: | 49 | 23 |
(Level 2) | Available-for-sale marketable securities: | Certificates of deposit | ||
Assets | ||
Available-for-sale marketable securities: | 5 | 11 |
(Level 3) | ||
Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | ||
Beginning | 117 | 32 |
Additions | 298 | 77 |
Change in estimate | (10) | 15 |
Settlements | (99) | (7) |
Ending | 306 | 117 |
Total liabilities measured at fair value | $ 306 | $ 117 |
Fair Value Measurements (Availa
Fair Value Measurements (Available-For-Sale Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Due in one year or less | $ 50 | $ 51 |
Due after one year through three years | $ 38 | $ 32 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable securities, gain (loss) | $ 155 | $ 119 | $ 60 |
Fair Value Measurements (Unreal
Fair Value Measurements (Unrealized Losses And Fair Value Of Investments With Unrealized Losses) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Total, number of investments | 12 |
Total, fair value | $ 15 |
Corporate and Asset-Backed | |
Total, number of investments | 2 |
Total, fair value | $ 1 |
United States Treasury | |
Total, number of investments | 6 |
Total, fair value | $ 13 |
Certificate of Deposit | |
Total, number of investments | 4 |
Total, fair value | $ 1 |
Derivative Instruments (Forward
Derivative Instruments (Forward Currency Exchange Contracts) (Details) - Foreign currency exchange forward contracts $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019EUR (€) | Jul. 31, 2019USD ($) | Nov. 30, 2018EUR (€) | |
Derivative [Line Items] | |||||
Notional amount | $ 8,088 | $ 6,336 | |||
Maximum term | 1646 days | 586 days | |||
Derivative, fair value, net | $ 203 | $ 57 | |||
Other current assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 185 | 43 | |||
Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 41 | 34 | |||
Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | (21) | (20) | |||
Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | (2) | 0 | |||
Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | 1,113 | 0 | € 2,400,000,000 | $ 1,000 | € 2,250,000,000 |
Derivative, fair value, net | 40 | 0 | |||
Designated as Hedging Instrument | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 0 | 0 | |||
Designated as Hedging Instrument | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 40 | 0 | |||
Designated as Hedging Instrument | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | 0 | 0 | |||
Designated as Hedging Instrument | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | 0 | 0 | |||
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | 6,174 | 5,466 | |||
Derivative, fair value, net | 169 | 46 | |||
Not Designated as Hedging Instrument | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 180 | 28 | |||
Not Designated as Hedging Instrument | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 0 | 33 | |||
Not Designated as Hedging Instrument | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | (11) | (15) | |||
Not Designated as Hedging Instrument | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | 0 | 0 | |||
Cash Flow Hedging | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Notional amount | 801 | 870 | |||
Derivative, fair value, net | (6) | 11 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 5 | 15 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative asset | 1 | 1 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | (10) | (5) | |||
Cash Flow Hedging | Designated as Hedging Instrument | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liability | $ (2) | $ 0 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Nov. 30, 2019EUR (€) | Jul. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2018EUR (€) | |
Foreign currency exchange forward contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional amount | $ 8,088 | $ 6,336 | ||||
Designated as Hedging Instrument | Foreign currency exchange forward contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional amount | 1,113 | € 2,400,000,000 | $ 1,000 | $ 0 | € 2,250,000,000 | |
Fair value of designated net investment hedges | 17 | |||||
Gains on derivatives designated as hedges | (6) | |||||
Net investment hedges recorded in AOCI | 27 | |||||
Designated as Hedging Instrument | Interest rate swap asset | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional amount | 750 | |||||
Gains on derivatives designated as hedges | 6 | |||||
Derivative notional amount terminated | € | € 600,000,000 | |||||
Pretax gains recorded in AOCI | $ 17 |
Derivative Instruments (Movemen
Derivative Instruments (Movements out of OCI) (Details) - Foreign currency exchange forward contracts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Foreign currency transaction gains (losses) | $ 9 | $ 1 | $ (15) |
Cost of sales | |||
Derivative [Line Items] | |||
Foreign currency transaction gains (losses) | 2 | 7 | (6) |
Designated as Hedging Instrument | Other income (expense), net | |||
Derivative [Line Items] | |||
Foreign currency transaction gains (losses) | 14 | 0 | 0 |
Not Designated as Hedging Instrument | Other income (expense), net | |||
Derivative [Line Items] | |||
Foreign currency transaction gains (losses) | $ (7) | $ (6) | $ (9) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (AOCI) (Schedule of Amounts Recognized in Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Period | $ (631) | $ (553) | |
OCI | 30 | (93) | |
Income taxes | 5 | 10 | |
Cost of sales | 5,188 | 4,663 | $ 4,264 |
Other (income) expense | (151) | (181) | (234) |
Income taxes | 479 | (1,197) | 1,043 |
Other comprehensive income (loss) | 25 | (78) | 208 |
Accumulated Other Comprehensive Income (Loss), End of Period | (606) | (631) | (553) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Income taxes | 2 | 4 | |
Other comprehensive income (loss) | 25 | (78) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cost of sales | (2) | (7) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other (income) expense | (10) | 8 | |
Marketable Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Period | (4) | (4) | |
OCI | 0 | 2 | |
Income taxes | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), End of Period | (3) | (4) | (4) |
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Income taxes | 0 | 0 | |
Other comprehensive income (loss) | 1 | 0 | |
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cost of sales | 0 | 0 | |
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other (income) expense | 1 | (2) | |
Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Period | (137) | (134) | |
OCI | (74) | (16) | |
Income taxes | 26 | 1 | |
Accumulated Other Comprehensive Income (Loss), End of Period | (179) | (137) | (134) |
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Income taxes | (2) | 2 | |
Other comprehensive income (loss) | (42) | (3) | |
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cost of sales | 0 | 0 | |
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other (income) expense | 8 | 10 | |
Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Period | 50 | 28 | |
OCI | 36 | ||
Income taxes | (9) | ||
Accumulated Other Comprehensive Income (Loss), End of Period | 50 | 28 | |
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Income taxes | 2 | ||
Other comprehensive income (loss) | 22 | ||
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cost of sales | (7) | ||
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other (income) expense | 0 | ||
Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
OCI | 3 | ||
Income taxes | 0 | ||
Accumulated Other Comprehensive Income (Loss), End of Period | 47 | ||
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Income taxes | 1 | ||
Other comprehensive income (loss) | (3) | ||
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cost of sales | (2) | ||
Hedges | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other (income) expense | (5) | ||
Financial Statement Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning of Period | (540) | (443) | |
OCI | 101 | (115) | |
Income taxes | (21) | 18 | |
Accumulated Other Comprehensive Income (Loss), End of Period | (471) | (540) | $ (443) |
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Income taxes | 3 | 0 | |
Other comprehensive income (loss) | 69 | (97) | |
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income [Member] | Cost of Sales | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Cost of sales | 0 | 0 | |
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income [Member] | Other (income) expense | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Other (income) expense | $ (14) | $ 0 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ / shares in Units, $ in Millions | Dec. 13, 2019$ / shares | Dec. 13, 2019€ / shares | Nov. 30, 2019USD ($)$ / shares | Oct. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Nov. 30, 2018USD ($)$ / shares | Feb. 28, 2018USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||||||
Acquisitions, net of cash acquired | $ 802 | $ 2,451 | $ 831 | |||||||
Business Combination, Consideration Transferred | $ 1,096 | |||||||||
Mobius | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Combination, Consideration Transferred | $ 360 | |||||||||
Future regulatory and commercial milestones | $ 130 | |||||||||
OrthoSpace, Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Combination, Consideration Transferred | $ 110 | |||||||||
Future regulatory and commercial milestones | $ 110 | |||||||||
K2M | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisitions, net of cash acquired | $ 1,380 | |||||||||
Consideration transfered, price per share (in dollars per share) | $ / shares | $ 27.50 | |||||||||
Entellus | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisitions, net of cash acquired | $ 697 | |||||||||
Consideration transfered, price per share (in dollars per share) | $ / shares | $ 24 | |||||||||
Wright | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisitions, net of cash acquired | $ 5,400 | |||||||||
Consideration transfered, price per share (in dollars per share) | $ / shares | $ 30.75 | $ 30.75 | ||||||||
Par value of ordinary shares of acquiree (in dollars per share) | € / shares | € 0.03 |
Acquisitions (Allocation Of The
Acquisitions (Allocation Of The Preliminary Purchase Price To The Acquired Net Assets Of Acquisitions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,069 | $ 8,563 | $ 7,168 |
Weighted average life of intangible assets | 14 years | 14 years | |
Customer relationship | |||
Business Acquisition [Line Items] | |||
Weighted average life of intangible assets | 16 years | 15 years | |
Developed technology and patents | |||
Business Acquisition [Line Items] | |||
Weighted average life of intangible assets | 14 years | 13 years | |
Mobius | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 3 | ||
Inventory | 7 | ||
Other assets | 2 | ||
Contingent consideration | (4) | ||
Liabilities | (10) | ||
Goodwill | 301 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 473 | ||
Weighted average life of intangible assets | 12 years | ||
Mobius | Customer relationship | |||
Business Acquisition [Line Items] | |||
Intangible assets: | $ 7 | ||
Mobius | Developed technology and patents | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 60 | ||
Mobius | In-process research and development | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 98 | ||
Mobius | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 9 | ||
OrthoSpace | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 1 | ||
Inventory | 1 | ||
Other assets | 1 | ||
Contingent consideration | 0 | ||
Liabilities | (29) | ||
Goodwill | 114 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 208 | ||
Weighted average life of intangible assets | 18 years | ||
OrthoSpace | Customer relationship | |||
Business Acquisition [Line Items] | |||
Intangible assets: | $ 0 | ||
OrthoSpace | Developed technology and patents | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 120 | ||
OrthoSpace | In-process research and development | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 0 | ||
OrthoSpace | Non-compete agreements | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 0 | ||
K2M | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 58 | ||
Inventory | 131 | ||
Other assets | 160 | ||
Contingent consideration | 0 | ||
Liabilities | (257) | ||
Goodwill | $ 766 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 1,380 | ||
Weighted average life of intangible assets | 15 years | ||
K2M | Customer relationship | |||
Business Acquisition [Line Items] | |||
Intangible assets: | $ 34 | ||
K2M | Developed technology and patents | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 475 | ||
K2M | Distributor relationship | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 1 | ||
K2M | Trade name | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 10 | ||
K2M | Internally developed software | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 2 | ||
Entellus | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 17 | ||
Inventory | 14 | ||
Other assets | 62 | ||
Contingent consideration | (79) | ||
Liabilities | (76) | ||
Goodwill | $ 465 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 697 | ||
Weighted average life of intangible assets | 16 years | ||
Entellus | Customer relationship | |||
Business Acquisition [Line Items] | |||
Intangible assets: | $ 33 | ||
Entellus | Developed technology and patents | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 261 | ||
Entellus | Distributor relationship | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 0 | ||
Entellus | Trade name | |||
Business Acquisition [Line Items] | |||
Intangible assets: | 0 | ||
Entellus | Internally developed software | |||
Business Acquisition [Line Items] | |||
Intangible assets: | $ 0 |
Contingencies and Commitments_2
Contingencies and Commitments (Narrative) (Details) $ in Millions | Mar. 19, 2019USD ($) | Jul. 12, 2017USD ($) | Nov. 30, 2019USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2010patent | Jan. 01, 2019USD ($) |
Payments for legal settlements | $ 54 | |||||||||
Lease expense | $ 133 | |||||||||
Lease expense | $ 138 | $ 125 | ||||||||
Right of use asset | 384 | |||||||||
Minimum | ||||||||||
Estimate of possible loss | 275 | |||||||||
Maximum | ||||||||||
Estimate of possible loss | $ 520 | |||||||||
Zimmer Product Infringement | ||||||||||
Number of patents allegedly infringed upon | patent | 3 | |||||||||
Gain contingency, damages awarded, value | $ 164 | $ 76 | ||||||||
Proceeds from legal settlements | $ 167 | |||||||||
Gain recorded in selling, general and administrative expenses | $ 100 | |||||||||
Accounting Standards Update 2016-02 | ||||||||||
Right of use asset | $ 350 | |||||||||
Operating lease, liability | $ 350 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Cost (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Right-of-use assets | $ 384 |
Lease liabilities, current | 86 |
Lease liabilities, non-current | $ 301 |
Weighted-average remaining lease term | 6 years 2 months 12 days |
Weighted-average discount rate | 3.34% |
Contingencies and Commitments_3
Contingencies and Commitments (Future Purchase Obligations and Minimum Lease Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 860 |
2021 | 750 |
2022 | 0 |
2023 | 612 |
2024 | 1,546 |
Thereafter | 7,433 |
Purchase obligations | |
2020 | 1,373 |
2021 | 19 |
2022 | 9 |
2023 | 6 |
2024 | 6 |
Thereafter | 6 |
Minimum lease payments | |
2020 | 94 |
2021 | 74 |
2022 | 62 |
2023 | 38 |
2024 | 32 |
Thereafter | $ 95 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Summary of the Company's Other Intangible Assets) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, impairment loss | $ 0 | $ 0 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 14 years | 14 years |
Gross Carrying Amount | $ 6,836,000,000 | $ 6,396,000,000 |
Less Accumulated Amortization | 2,609,000,000 | 2,233,000,000 |
Net Carrying Amount | $ 4,227,000,000 | $ 4,163,000,000 |
Developed technologies | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 14 years | 13 years |
Gross Carrying Amount | $ 3,731,000,000 | $ 3,426,000,000 |
Less Accumulated Amortization | 1,271,000,000 | 1,115,000,000 |
Net Carrying Amount | $ 2,460,000,000 | $ 2,311,000,000 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 16 years | 15 years |
Gross Carrying Amount | $ 2,160,000,000 | $ 2,155,000,000 |
Less Accumulated Amortization | 848,000,000 | 703,000,000 |
Net Carrying Amount | $ 1,312,000,000 | $ 1,452,000,000 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 11 years | 12 years |
Gross Carrying Amount | $ 348,000,000 | $ 332,000,000 |
Less Accumulated Amortization | 265,000,000 | 231,000,000 |
Net Carrying Amount | $ 83,000,000 | $ 101,000,000 |
Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 18 years | 18 years |
Gross Carrying Amount | $ 362,000,000 | $ 349,000,000 |
Less Accumulated Amortization | 136,000,000 | 108,000,000 |
Net Carrying Amount | 226,000,000 | 241,000,000 |
In-process research and development | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 110,000,000 | 6,000,000 |
Less Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 110,000,000 | $ 6,000,000 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Amortization Period (Years) | 8 years | 11 years |
Gross Carrying Amount | $ 125,000,000 | $ 128,000,000 |
Less Accumulated Amortization | 89,000,000 | 76,000,000 |
Net Carrying Amount | $ 36,000,000 | $ 52,000,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Changes in Net Carrying Amount of Goodwill by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | $ 8,563 | $ 7,168 |
Additions and adjustments | 547 | 1,470 |
Foreign exchange | (41) | (75) |
Goodwill, Ending balance | 9,069 | 8,563 |
Orthopaedics | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 2,399 | 2,426 |
Additions and adjustments | 0 | 4 |
Foreign exchange | (13) | (31) |
Goodwill, Ending balance | 2,386 | 2,399 |
MedSurg | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 3,581 | 3,509 |
Additions and adjustments | 229 | 100 |
Foreign exchange | (11) | (28) |
Goodwill, Ending balance | 3,799 | 3,581 |
Neuro and Spine | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning balance | 2,583 | 1,233 |
Additions and adjustments | 318 | 1,366 |
Foreign exchange | (17) | (16) |
Goodwill, Ending balance | $ 2,884 | $ 2,583 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Estimated Amortization Expense) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 457 |
2021 | 440 |
2022 | 435 |
2023 | 414 |
2024 | $ 384 |
Capital Stock (Narrative) (Deta
Capital Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Stock [Line Items] | |||
Common and Preferred Stock, shares authorized (in shares) | 1,000,500,000 | ||
Preferred Stock, Shares Authorized | 500,000 | ||
Preferred stock, par per share | $ 1 | ||
Common stock, authorized (in shares) | 1,000,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Preferred stock, outstanding (in shares) | 0 | ||
Shares repurchased (in shares) | 1,900,000 | ||
Repurchase and retirement of shares of common stock | $ 307 | ||
Remaining shares authorized to be repurchased | $ 1,033 | ||
Capital shares reserved for future issuance | 31,000,000 | 33,000,000 | |
Aggregate intrinsic value of options exercised | $ 294 | $ 247 | $ 184 |
Options exercised during period, exercise price range, lower range limit | $ 51.82 | ||
Options exercised during period, exercise price range, upper range limit | $ 209.78 | ||
Compensation cost not yet recognized | $ 101 | ||
Compensation cost not yet recognized, period for recognized | 1 year 6 months | ||
Restricted Stock Units (RSUs) | |||
Capital Stock [Line Items] | |||
Compensation cost not yet recognized | $ 67 | ||
Compensation cost not yet recognized, period for recognized | 1 year | ||
Weighted average grant date fair value, Granted (in dollars per share) | $ 175.96 | $ 150.23 | |
Shares vested during the period | $ 52 | ||
Performance Stock Units (PSUs) | |||
Capital Stock [Line Items] | |||
Compensation cost not yet recognized | $ 15 | ||
Compensation cost not yet recognized, period for recognized | 1 year | ||
Weighted average grant date fair value, Granted (in dollars per share) | $ 180.70 | ||
Shares vested during the period | $ 10 | ||
Employee Stock Purchase Plans | |||
Capital Stock [Line Items] | |||
Percentage of closing stock price under ESPP | 95.00% | ||
Shares issued under the ESPP | 166,758 | 168,626 |
Capital Stock (Option Grant Ass
Capital Stock (Option Grant Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Stock [Abstract] | |||
Weighted-average fair value per share | $ 36.30 | $ 28.52 | $ 22.43 |
Risk-free interest rate | 2.60% | 2.70% | 2.00% |
Expected dividend yield | 1.10% | 1.20% | 1.50% |
Expected stock price volatility | 18.30% | 16.80% | 19.40% |
Expected option life (years) | 5 years 10 months 24 days | 6 years | 6 years |
Capital Stock (Summary of Stock
Capital Stock (Summary of Stock Option Activity) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Shares, Options outstanding at January 1 (in shares) | shares | 14.1 |
Shares, Granted (in shares) | shares | 2.1 |
Shares, Exercised (in shares) | shares | (2.6) |
Shares, Cancelled (in shares) | shares | (0.8) |
Shares, Options outstanding at December 31 (in shares) | shares | 12.8 |
Shares, Exercisable at December 31 (in shares) | shares | 6.8 |
Shares, Options expected to vest (in shares) | shares | 5.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted average exercise price, Options outstanding at January 1 (in dollars per share) | $ / shares | $ 97.69 |
Weighted average exercise price, Granted (in dollars per share) | $ / shares | 179.41 |
Weighted average exercise price, Exercised (in dollars per share) | $ / shares | 75.74 |
Weighted average exercise price, Cancelled (in dollars per share) | $ / shares | 134.73 |
Weighted average exercise price, Options outstanding at December 31 (in dollars per share) | $ / shares | 113.10 |
Weighted average exercise price, Exercisable at December 31 (in dollars per share) | $ / shares | 85.62 |
Weighted average exercise price, Options expected to vest (in dollars per share) | $ / shares | $ 143.38 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted-average remaining contractual term, Options outstanding at December 31 (in years) | 6 years |
Weighted-average remaining contractual term, Exercisable at December 31 (in years) | 4 years 4 months 24 days |
Weighted-average remaining contractual term, Options expected to vest (in years) | 7 years 8 months 12 days |
Aggregate intrinsic value, Options outstanding at December 31 | $ | $ 1,242.8 |
Aggregate intrinsic value, Exercisable at December 31 | $ | 853.2 |
Aggregate intrinsic value, Options expected to vest | $ | $ 360.8 |
Capital Stock (Summary of RSU a
Capital Stock (Summary of RSU and PSU Activity) (Details) - $ / shares shares in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares, Nonvested at January 1 (in shares) | 0.9 | |
Shares, Granted (in shares) | 0.4 | |
Shares, Vested (in shares) | (0.4) | |
Shares, Cancelled (in shares) | (0.1) | |
Shares, Nonvested at December 31 (in shares) | 0.8 | 0.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, Outstanding at January 1 (in dollars per share) | $ 129.90 | |
Weighted average grant date fair value, Granted (in dollars per share) | 175.96 | $ 150.23 |
Weighted average grant date fair value, Vested (in dollars per share) | 120.56 | |
Weighted average grant date fair value, Cancelled (in dollars per share) | 146.37 | |
Weighted average grant date fair value, Outstanding at December 31 (in dollars per share) | $ 158.80 | $ 129.90 |
Performance Stock Units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares, Nonvested at January 1 (in shares) | 0.3 | |
Shares, Granted (in shares) | 0 | |
Shares, Vested (in shares) | (0.1) | |
Shares, Cancelled (in shares) | 0 | |
Shares, Nonvested at December 31 (in shares) | 0.2 | 0.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, Outstanding at January 1 (in dollars per share) | $ 122.39 | |
Weighted average grant date fair value, Granted (in dollars per share) | 180.70 | |
Weighted average grant date fair value, Vested (in dollars per share) | 98.10 | |
Weighted average grant date fair value, Cancelled (in dollars per share) | 136.56 | |
Weighted average grant date fair value, Outstanding at December 31 (in dollars per share) | $ 152.44 | $ 122.39 |
Debt and Credit Facilities (Nar
Debt and Credit Facilities (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2020USD ($)Rate | Dec. 31, 2019EUR (€)Rate | Mar. 31, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019 | Dec. 31, 2019Rate | |
Line of Credit Facility [Line Items] | |||||||||
Commercial Paper | $ 0 | ||||||||
Interest expense, debt | 287,000,000 | $ 264,000,000 | $ 247,000,000 | ||||||
Senior Unsecured Notes 1.800% due 2019 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repaid face amount | $ 500,000,000 | ||||||||
Stated interest rate | Rate | 1.80% | ||||||||
Senior Unsecured Notes 2.000% due 2019 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repaid face amount | $ 750,000,000 | ||||||||
Stated interest rate | 2.00% | 2.00% | |||||||
Senior Unsecured Notes 0.250% due 2024 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 0.25% | 0.25% | |||||||
Proceeds from issuance of debt | € | € 850,000,000 | ||||||||
Redemption price percentage | Rate | 101.00% | ||||||||
Senior Unsecured Notes 4.375% Due 2020 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 4.375% | ||||||||
Senior Unsecured Notes 4.375% Due 2020 | Subsequent Event | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repaid face amount | $ 500,000,000 | ||||||||
Stated interest rate | Rate | 4.375% | ||||||||
Senior Unsecured Notes 0.750% due 2029 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 0.75% | 0.75% | |||||||
Proceeds from issuance of debt | € | € 800,000,000 | ||||||||
Senior Unsecured Notes 1.000% due 2031 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 1.00% | 1.00% | |||||||
Proceeds from issuance of debt | € | € 750,000,000 | ||||||||
Redemption price percentage | 101.00% | ||||||||
Senior Unsecured Notes, Due November 2023 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 1.125% | ||||||||
Senior Unsecured Notes, Due November 2027 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 2.125% | ||||||||
Senior Unsecured Notes, Due November 2030 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Stated interest rate | 2.625% | ||||||||
Commercial Paper | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||||
Maturities of time deposits | 397 days |
Debt and Credit Facilities (Mat
Debt and Credit Facilities (Maturities Of Long-Term Debt Disclosures) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Other Long-term Debt | $ 26 | $ 126 | ||
Total debt | 11,090 | 9,859 | ||
Current maturities of debt | 859 | 1,373 | ||
Total Long-term Debt | 10,231 | 8,486 | ||
Unamortized debt issuance costs | 58 | 50 | ||
Borrowing capacity on existing facilities | 1,546 | 1,548 | ||
Fair value of senior unsecured notes | 11,910 | 9,746 | ||
Senior Unsecured Notes 1.800% due 2019 | ||||
Stated interest rate | 1.80% | |||
Unsecured Debt | 0 | 500 | ||
Senior Unsecured Notes 2.000% due 2019 | ||||
Stated interest rate | 2.00% | 2.00% | ||
Unsecured Debt | 0 | 750 | ||
Senior Unsecured Notes 4.375% due 2020 | ||||
Stated interest rate | 4.375% | |||
Unsecured Debt | 500 | 499 | ||
Senior Unsecured Notes, Variable, due 2020 | ||||
Unsecured Debt | 333 | 343 | ||
Senior Unsecured Notes 2.625% due 2021 | ||||
Stated interest rate | 2.625% | |||
Unsecured Debt | 749 | 747 | ||
Senior Unsecured Notes, 1.125%, due 2023 | ||||
Stated interest rate | 1.125% | |||
Unsecured Debt | 609 | 627 | ||
Senior Unsecured Notes 3.375% due 2024 | ||||
Stated interest rate | 3.375% | |||
Unsecured Debt | 587 | 584 | ||
Senior Unsecured Notes 0.250% due 2024 | ||||
Stated interest rate | 0.25% | 0.25% | ||
Unsecured Debt | 938 | 0 | ||
Senior Unsecured Notes 3.375% due 2025 | ||||
Stated interest rate | 3.375% | |||
Unsecured Debt | 746 | 746 | ||
Senior Unsecured Notes 3.50% due 2026 | ||||
Stated interest rate | 3.50% | |||
Unsecured Debt | 991 | 990 | ||
Senior Unsecured Notes,2.125%, due 2027 | ||||
Stated interest rate | 2.125% | |||
Unsecured Debt | 829 | 853 | ||
Senior Unsecured Notes 3.650% due 2028 | ||||
Stated interest rate | 3.65% | |||
Unsecured Debt | 596 | 595 | ||
Senior Unsecured Notes 0.750% due 2029 | ||||
Stated interest rate | 0.75% | 0.75% | ||
Unsecured Debt | 884 | 0 | ||
Senior Unsecured Notes, 2.625% due 2030 | ||||
Stated interest rate | 2.625% | |||
Unsecured Debt | 712 | 733 | ||
Senior Unsecured Notes 1.000% due 2031 | ||||
Stated interest rate | 1.00% | 1.00% | ||
Unsecured Debt | 823 | 0 | ||
Senior Unsecured Notes 4.10% due 2043 | ||||
Stated interest rate | 4.10% | |||
Unsecured Debt | 391 | 391 | ||
Senior Unsecured Notes 4.375% due 2044 | ||||
Stated interest rate | 4.375% | |||
Unsecured Debt | 395 | 395 | ||
Senior Unsecured Notes 4.625% due 2046 | ||||
Stated interest rate | 4.625% | |||
Unsecured Debt | $ 981 | $ 980 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Effective income tax, percent | 18.70% | (50.80%) | 50.60% |
Interest expense and penalties included in other income (expense), net | $ (9) | $ (9) | $ (28) |
Net operating loss carryforward recognized | 50 | 31 | $ 32 |
Accrued interest and penalties | 94 | 85 | |
Operating loss carryforwards | 378 | ||
Unrecognized tax benefits, interest on income tax expense | 468 | $ 521 | |
United States | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 358 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 20 | ||
Tax credit carryforward, amount | 65 | ||
Tax credit carryforward, valuation allowance | $ 63 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Income Tax Rate from Continuing Operations) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States federal statutory rate | 21.00% | 21.00% | 35.00% |
United States state and local income taxes, less federal deduction | 1.70% | 0.40% | 1.20% |
International operations | (4.60%) | (6.50%) | (21.00%) |
Tax Cuts and Jobs Act of 2017 transition tax | 0.00% | 2.20% | 38.00% |
Tax Cuts and Jobs Act of 2017 deferred tax changes | 0.00% | (0.60%) | 2.30% |
Tax related to repatriation of foreign earnings | (0.50%) | 0.50% | 0.00% |
Intellectual property transfer | 3.50% | (63.80%) | 0.00% |
Other | (2.40%) | (4.00%) | (4.90%) |
Effective income tax rate, total | 18.70% | (50.80%) | 50.60% |
Income Taxes (Schedule of Earni
Income Taxes (Schedule of Earnings before Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 366 | $ 509 | $ 499 | ||||||||
International | 2,196 | 1,847 | 1,564 | ||||||||
Earnings before income taxes | $ 936 | $ 581 | $ 565 | $ 480 | $ 657 | $ 534 | $ 623 | $ 542 | $ 2,562 | $ 2,356 | $ 2,063 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense: | |||
United States federal | $ (17) | $ 178 | $ 836 |
United States state and local | 46 | 30 | 38 |
International | 324 | 177 | 133 |
Total current income tax expense | 353 | 385 | 1,007 |
Deferred income tax (benefit) expense: | |||
United States federal | 10 | (44) | 84 |
United States state and local | (1) | (20) | (9) |
International | 117 | (1,518) | (39) |
Total deferred income tax (benefit) expense | 126 | (1,582) | 36 |
Total income tax (benefit) expense | $ 479 | $ (1,197) | $ 1,043 |
Income Taxes (Schedule of Diffe
Income Taxes (Schedule of Difference in Income Tax Effects Comprising Company's Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Inventories | $ 415 | $ 390 |
Product-related liabilities | 57 | 60 |
Other accrued expenses | 221 | 222 |
Depreciation and amortization | 1,363 | 1,504 |
State income taxes | 65 | 70 |
Share-based compensation | 49 | 47 |
Net operating loss carryforwards | 95 | 134 |
Other | 207 | 177 |
Total deferred income tax assets | 2,472 | 2,604 |
Less valuation allowances | (75) | (66) |
Net deferred income tax assets | 2,397 | 2,538 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (893) | (865) |
Undistributed earnings | (37) | (46) |
Other | 0 | (3) |
Total deferred income tax liabilities | (930) | (914) |
Net deferred income tax assets | 1,467 | 1,624 |
Noncurrent deferred income tax assets | 1,575 | 1,678 |
Noncurrent liabilities—Other liabilities | $ (108) | $ (54) |
Income Taxes (Schedule of Unres
Income Taxes (Schedule of Unresolved Income Tax Positions) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning uncertain tax positions | $ 528 | $ 540 |
Increases related to current year income tax positions | 62 | 22 |
Increases related to prior year income tax positions | 5 | 25 |
Settlements and resolutions of income tax audits | (78) | (37) |
Statute of limitations expirations | (40) | (14) |
Foreign currency translation | (5) | (8) |
Ending uncertain tax positions | $ 472 | $ 528 |
Retirement Plans (Schedule of D
Retirement Plans (Schedule of Defined Contribution Plan Disclosures) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Plan expense | $ 205 | $ 180 | $ 181 |
Expense funded with Stryker common stock | 31 | 29 | 25 |
Stryker common stock held by plan, amount | $ 470 | $ 358 | $ 353 |
Stryker common stock held by plan, shares | 2.2 | 2.3 | 2.3 |
Stryker common stock held by plan, value as a percentage of total plan assets | 12.00% | 12.00% | 11.00% |
Retirement Plans (Schedule of F
Retirement Plans (Schedule of Funded Status and Components of the Amounts Recognized in the Consolidated Balance Sheets and in Accumulated Other Comprehensive Gain (Loss), Before the Effect of Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Net Periodic Pension Cost | |||
Service cost | $ (41) | $ (44) | $ (42) |
Interest cost | (12) | (11) | (10) |
Expected return on plan assets | 12 | 12 | 11 |
Amortization of prior service cost and transition amount | 1 | 1 | 1 |
Recognized actuarial loss | (9) | (11) | (9) |
Net periodic benefit cost | (49) | (53) | (49) |
Net actuarial gain (loss) | (74) | 11 | (25) |
Recognized net actuarial loss | 9 | 10 | 9 |
Prior service cost and transition amount | (1) | (1) | (1) |
Total recognized in OCI | (66) | 20 | (17) |
Total recognized in net periodic benefit cost and OCI | $ (115) | $ (33) | $ (66) |
Defined Benefit Plan, Assumptions Used in Calculations [Abstract] | |||
Discount rate | 1.90% | 1.80% | 1.80% |
Expected return on plan assets | 3.50% | 3.30% | 3.30% |
Expected return on plan assets | 2.90% | 2.80% | 2.80% |
Weighted-average discount rate used to determine projected benefit obligations | 1.00% | 1.90% | 1.80% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Fair value of plan assets | $ 428 | $ 376 | |
Benefit obligations | (869) | (735) | $ (708) |
Funded status | (441) | (359) | |
Current liabilities—accrued compensation | (2) | (2) | |
Noncurrent liabilities—other liabilities | (439) | (357) | |
Unrecognized net actuarial loss | (241) | (157) | |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Unrecognized prior service credit | 9 | 11 | |
Unrecognized net actuarial loss | $ (250) | $ (168) |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated net actuarial loss for the defined benefit pension plan | $ 12 | |
Estimated amortization of prior service credit and transition asset to be reclassified from AOCI | 1 | |
Actual return | 52 | $ (2) |
Estimated future employer contributions in next fiscal year | 24 | |
(Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual return | $ 24 |
Retirement Plans (Schedule of C
Retirement Plans (Schedule of Change in Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Beginning projected benefit obligations | $ 735 | $ 708 | |
Service cost | 41 | 44 | $ 42 |
Interest cost | 12 | 11 | 10 |
Foreign exchange impact | (12) | (16) | |
Employee contributions | 6 | 6 | |
Actuarial (gains) losses | 116 | (1) | |
Acquisition | 0 | 0 | |
Benefits paid | (29) | (17) | |
Ending projected benefit obligations | 869 | 735 | $ 708 |
Ending accumulated benefit obligations | $ 830 | $ 702 |
Retirement Plans (Change in Pla
Retirement Plans (Change in Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning fair value of plan assets | $ 376 | $ 370 |
Actual return | 52 | (2) |
Employer contributions | 25 | 22 |
Employee contributions | 6 | 6 |
Foreign exchange impact | (5) | (6) |
Acquisition | 0 | 0 |
Benefits paid | (26) | (14) |
Ending fair value of plan assets | $ 428 | $ 376 |
Retirement Plans (Schedule of T
Retirement Plans (Schedule of Target and Actual Allocation of Plan Assets) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 100.00% | |
Actual plan asset allocations | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 23.00% | |
Actual plan asset allocations | 22.00% | 26.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 44.00% | |
Actual plan asset allocations | 44.00% | 46.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations | 33.00% | |
Actual plan asset allocations | 34.00% | 28.00% |
Retirement Plans (Schedule of V
Retirement Plans (Schedule of Valuation of the Company's Pension Plan Assets by Pricing Categories) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 428 | $ 376 |
(Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 37 | 39 |
(Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 311 | 281 |
(Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 80 | 56 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7 | 10 |
Cash and cash equivalents | (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7 | 10 |
Cash and cash equivalents | (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Cash and cash equivalents | (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 109 | 105 |
Equity securities | (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 23 | 20 |
Equity securities | (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 86 | 85 |
Equity securities | (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Corporate debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 176 | 155 |
Corporate debt securities | (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3 | 2 |
Corporate debt securities | (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 173 | 153 |
Corporate debt securities | (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 136 | 106 |
Other | (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4 | 7 |
Other | (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 52 | 43 |
Other | (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 80 | $ 56 |
Retirement Plans (Expected Bene
Retirement Plans (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 19 |
2021 | 18 |
2022 | 18 |
2023 | 19 |
2024 | 19 |
2025-2029 | $ 115 |
Summary of Quarterly Data (Un_3
Summary of Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 4,131 | $ 3,587 | $ 3,650 | $ 3,516 | $ 3,796 | $ 3,242 | $ 3,322 | $ 3,241 | $ 14,884 | $ 13,601 | $ 12,444 |
Gross profit | 2,703 | 2,330 | 2,380 | 2,283 | 2,456 | 2,155 | 2,190 | 2,137 | 9,696 | 8,938 | 8,180 |
Earnings before income taxes | 936 | 581 | 565 | 480 | 657 | 534 | 623 | 542 | 2,562 | 2,356 | 2,063 |
Net earnings | $ 725 | $ 466 | $ 480 | $ 412 | $ 2,068 | $ 590 | $ 452 | $ 443 | $ 2,083 | $ 3,553 | $ 1,020 |
Basic net earnings per share of common stock (in dollars per share) | $ 1.94 | $ 1.24 | $ 1.29 | $ 1.10 | $ 5.52 | $ 1.58 | $ 1.21 | $ 1.18 | $ 5.57 | $ 9.50 | $ 2.73 |
Diluted net earnings per share of common stock (in dollars per share) | 1.90 | 1.23 | 1.26 | 1.09 | 5.44 | 1.55 | 1.19 | 1.16 | $ 5.48 | $ 9.34 | $ 2.68 |
Dividends declared per share of common stock (in dollars per share) | $ 0.575 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.52 | $ 0.47 | $ 0.47 | $ 0.47 |
Segment and Geographic Data (Sa
Segment and Geographic Data (Sales And Other Financial Information By Business Segment) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of Reportable Segments | segment | 3 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 4,131 | $ 3,587 | $ 3,650 | $ 3,516 | $ 3,796 | $ 3,242 | $ 3,322 | $ 3,241 | $ 14,884 | $ 13,601 | $ 12,444 |
Depreciation and amortization | 1,044 | 966 | 859 | ||||||||
Segment net earnings (loss) | 2,713 | 2,537 | 2,297 | ||||||||
Amortization of intangible assets | (464) | (417) | (371) | ||||||||
Net earnings | $ 725 | $ 466 | $ 480 | $ 412 | $ 2,068 | $ 590 | $ 452 | $ 443 | 2,083 | 3,553 | 1,020 |
MedSurg | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 6,574 | 6,045 | 5,557 | ||||||||
Neuro and Spine | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,058 | 2,565 | 2,174 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 945 | 811 | 794 | ||||||||
Segment operating income | 4,388 | 3,948 | 3,540 | ||||||||
Operating Segments | Orthopaedics | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,252 | 4,991 | 4,713 | ||||||||
Depreciation and amortization | 348 | 350 | 337 | ||||||||
Segment net earnings (loss) | 1,907 | 1,804 | 1,681 | ||||||||
Operating Segments | MedSurg | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 6,574 | 6,045 | 5,557 | ||||||||
Depreciation and amortization | 379 | 285 | 315 | ||||||||
Segment net earnings (loss) | 1,635 | 1,444 | 1,228 | ||||||||
Operating Segments | Neuro and Spine | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,058 | 2,565 | 2,174 | ||||||||
Depreciation and amortization | 218 | 176 | 142 | ||||||||
Segment net earnings (loss) | 846 | 700 | 631 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization | 99 | 155 | 65 | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment operating income | (480) | (431) | (402) | ||||||||
Acquisition and integration-related charges | (275) | (123) | (64) | ||||||||
Amortization of intangible assets | (464) | (417) | (371) | ||||||||
Restructuring related and other charges | (226) | (220) | (194) | ||||||||
Medical device regulations | (62) | (12) | 0 | ||||||||
Recall-related matters | (192) | (23) | (173) | ||||||||
Regulatory and legal matters | 24 | (185) | (39) | ||||||||
Net earnings | $ 2,713 | $ 2,537 | $ 2,297 |
Segment and Geographic Data (Se
Segment and Geographic Data (Segment Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 30,167 | $ 27,229 | $ 22,197 |
Capital Expenditures During Period | 649 | 572 | 598 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Assets | 28,797 | 26,550 | 21,350 |
Capital Expenditures During Period | 419 | 382 | 382 |
Operating Segments | Orthopaedics | |||
Segment Reporting Information [Line Items] | |||
Assets | 9,085 | 8,873 | 7,486 |
Capital Expenditures During Period | 125 | 134 | 138 |
Operating Segments | MedSurg | |||
Segment Reporting Information [Line Items] | |||
Assets | 12,066 | 10,417 | 9,759 |
Capital Expenditures During Period | 265 | 217 | 194 |
Operating Segments | Neuro and Spine | |||
Segment Reporting Information [Line Items] | |||
Assets | 7,646 | 7,260 | 4,105 |
Capital Expenditures During Period | 29 | 31 | 50 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,370 | 679 | 847 |
Capital Expenditures During Period | $ 230 | $ 190 | $ 216 |
Segment and Geographic Data (Ge
Segment and Geographic Data (Geographic Information on Net Sales and Long-Lived Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 4,131 | $ 3,587 | $ 3,650 | $ 3,516 | $ 3,796 | $ 3,242 | $ 3,322 | $ 3,241 | $ 14,884 | $ 13,601 | $ 12,444 |
Net Property, Plant & Equipment | 2,567 | 2,291 | 2,567 | 2,291 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 10,957 | 9,848 | 9,059 | ||||||||
Net Property, Plant & Equipment | 1,561 | 1,348 | 1,561 | 1,348 | |||||||
Europe, Middle East, Africa | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,888 | 1,793 | 1,567 | ||||||||
Net Property, Plant & Equipment | 838 | 669 | 838 | 669 | |||||||
Asia Pacific | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,617 | 1,532 | 1,413 | ||||||||
Net Property, Plant & Equipment | 95 | 96 | 95 | 96 | |||||||
Other foreign countries | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 422 | 428 | $ 405 | ||||||||
Net Property, Plant & Equipment | $ 73 | $ 178 | $ 73 | $ 178 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Allowance, Notes Receivable [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 88 | $ 64 | $ 59 | $ 56 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 39 | 20 | 15 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 13 | 14 | 14 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Increase (Decrease) Adjustment | $ 2 | $ 1 | $ (2) |