Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
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 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 375,378,477 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0000310764 |
Current Fiscal Year End Date | --12-31 |
Common Stock | |
Document Information [Line Items] | |
Title of each class | Common Stock, $.10 Par Value |
Trading Symbol | SYK |
Security Exchange Name | NYSE |
Senior Unsecured Notes 1.125% due 2021 | |
Document Information [Line Items] | |
Title of each class | 1.125% Notes due 2023 |
Trading Symbol | SYK23 |
Security Exchange Name | NYSE |
Senior Unsecured Notes 2.125% due 2027 | |
Document Information [Line Items] | |
Title of each class | 2.125% Notes due 2027 |
Trading Symbol | SYK27 |
Security Exchange Name | NYSE |
Senior Unsecured Notes 2.625% due 2030 | |
Document Information [Line Items] | |
Title of each class | 2.625% Notes due 2030 |
Trading Symbol | SYK30 |
Security Exchange Name | NYSE |
Senior Unsecured Notes Variable due 2020 | |
Document Information [Line Items] | |
Title of each class | Floating Rate Notes due 2020 |
Trading Symbol | SYK20A |
Security Exchange Name | NYSE |
Consolidated Statements Of Earn
Consolidated Statements Of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 3,588 | $ 3,516 |
Cost of sales | 1,257 | 1,233 |
Gross profit | 2,331 | 2,283 |
Research, development and engineering expenses | 254 | 225 |
Selling, general and administrative expenses | 1,330 | 1,403 |
Recall charges | (6) | 13 |
Amortization of intangible assets | 118 | 114 |
Total operating expenses | 1,696 | 1,755 |
Operating income | 635 | 528 |
Other income (expense), net | (45) | (48) |
Earnings before income taxes | 590 | 480 |
Income taxes | 97 | 68 |
Net earnings | $ 493 | $ 412 |
Net earnings per share of common stock: | ||
Basic | $ 1.32 | $ 1.10 |
Diluted | $ 1.30 | $ 1.09 |
Weighted-average shares outstanding (in millions): | ||
Basic | 374.8 | 373.3 |
Effect of dilutive employee stock compensation | 4.9 | 6 |
Diluted | 379.7 | 379.3 |
Cash dividends declared per share of common stock (in dollars per share) | $ 0.575 | $ 0.52 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 493 | $ 412 |
Other comprehensive income (loss), net of tax: | ||
Marketable securities | 0 | 1 |
Pension plans | (4) | (4) |
Unrealized gains (losses) on designated hedges | (26) | (16) |
Financial statement translation | 13 | 85 |
Total other comprehensive income (loss), net of tax | (17) | 66 |
Comprehensive income | $ 476 | $ 478 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 3,964 | $ 4,337 |
Marketable securities | 84 | 88 |
Accounts receivable, less allowance of $100 ($88 in 2019) | 2,646 | 2,893 |
Inventories: | ||
Materials and supplies | 738 | 677 |
Work in process | 187 | 178 |
Finished goods | 2,434 | 2,427 |
Total inventories | 3,359 | 3,282 |
Prepaid expenses and other current assets | 683 | 760 |
Total current assets | 10,736 | 11,360 |
Property, plant and equipment: | ||
Land, buildings and improvements | 1,419 | 1,263 |
Machinery and equipment | 3,357 | 3,451 |
Total property, plant and equipment | 4,776 | 4,714 |
Less accumulated depreciation | 2,169 | 2,147 |
Property, plant and equipment, net | 2,607 | 2,567 |
Goodwill | 9,025 | 9,069 |
Other intangibles, net | 4,107 | 4,227 |
Noncurrent deferred income tax assets | 1,537 | 1,575 |
Other noncurrent assets | 1,428 | 1,369 |
Total assets | 29,440 | 30,167 |
Current liabilities | ||
Accounts payable | 736 | 675 |
Accrued compensation | 430 | 955 |
Income taxes | 227 | 171 |
Dividends payable | 216 | 213 |
Accrued expenses and other liabilities | 1,450 | 1,527 |
Current maturities of debt | 1,103 | 859 |
Total current liabilities | 4,162 | 4,400 |
Long-term debt, excluding current maturities | 9,404 | 10,231 |
Income taxes | 1,026 | 1,068 |
Other noncurrent liabilities | 1,733 | 1,661 |
Total liabilities | 16,325 | 17,360 |
Shareholders' equity | ||
Common stock, $0.10 par value | 38 | 37 |
Additional paid-in capital | 1,676 | 1,628 |
Retained earnings | 12,024 | 11,748 |
Accumulated other comprehensive loss | (623) | (606) |
Total shareholders' equity | 13,115 | 12,807 |
Total liabilities and shareholders' equity | $ 29,440 | $ 30,167 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 100 | $ 88 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.1 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity (Unaudited) - 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 |
Beginning balance at Dec. 31, 2018 | $ 37 | $ 1,559 | $ 10,765 | $ (631) | |||
Beginning balance (in shares) at Dec. 31, 2018 | 374.4 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock compensation and benefit plans | (48) | ||||||
Issuance of common stock under stock option and benefit plans (in shares) | 1.3 | ||||||
Repurchase of common stock | (8) | (299) | |||||
Repurchase of common stock (in shares) | (1.9) | ||||||
Share-based compensation | 35 | ||||||
Net earnings (loss) | $ 412 | 412 | |||||
Cash dividends declared | (195) | ||||||
Other comprehensive income (loss) | 66 | 66 | |||||
Ending balance at Mar. 31, 2019 | 11,693 | $ 11,693 | $ 37 | 1,538 | 10,683 | (565) | $ 0 |
Ending balance (in shares) at Mar. 31, 2019 | 373.8 | ||||||
Beginning balance at Dec. 31, 2019 | 12,807 | $ 37 | 1,628 | 11,748 | (606) | ||
Beginning balance (in shares) at Dec. 31, 2019 | 374.5 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock compensation and benefit plans | $ 1 | (8) | |||||
Issuance of common stock under stock option and benefit plans (in shares) | 0.9 | ||||||
Repurchase of common stock (in shares) | 0 | ||||||
Share-based compensation | 56 | ||||||
Net earnings (loss) | 493 | 493 | |||||
Cash dividends declared | (217) | ||||||
Other comprehensive income (loss) | (17) | (17) | |||||
Ending balance at Mar. 31, 2020 | $ 13,115 | $ 13,115 | $ 38 | $ 1,676 | $ 12,024 | $ (623) | $ 0 |
Ending balance (in shares) at Mar. 31, 2020 | 375.4 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net earnings | $ 493 | $ 412 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 80 | 76 |
Amortization of intangible assets | 118 | 114 |
Share-based compensation | 56 | 35 |
Recall charges | (6) | 13 |
Sale of inventory stepped-up to fair value at acquisition | 6 | 24 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 204 | 50 |
Inventories | (122) | (139) |
Accounts payable | 63 | (12) |
Accrued expenses and other liabilities | (550) | (166) |
Recall-related payments | (4) | (20) |
Income taxes | 84 | 9 |
Other, net | 169 | (83) |
Net cash provided by operating activities | 591 | 313 |
Investing activities | ||
Acquisitions, net of cash acquired | (23) | (180) |
Purchases of marketable securities | (8) | (20) |
Proceeds from sales of marketable securities | 12 | 19 |
Purchases of property, plant and equipment | (144) | (122) |
Net cash used in investing activities | (163) | (303) |
Financing activities | ||
Proceeds (payments) on short-term borrowings, net | 4 | (12) |
Payments on long-term debt | (500) | (1,341) |
Dividends paid | (215) | (195) |
Repurchases of common stock | 0 | (307) |
Cash paid for taxes from withheld shares | (56) | (97) |
Other financing, net | (1) | 5 |
Net cash provided by (used in) financing activities | (768) | (1,947) |
Effect of exchange rate changes on cash and cash equivalents | (33) | (5) |
Change in cash and cash equivalents | (373) | (1,942) |
Cash and cash equivalents at beginning of period | 4,337 | 3,616 |
Cash and cash equivalents at end of period | $ 3,964 | $ 1,674 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION General Information Management believes the accompanying unaudited Consolidated Financial Statements contain all adjustments, including normal recurring items, considered necessary to fairly present the financial position of Stryker Corporation and its consolidated subsidiaries (the "Company," "we," us" or "our") on March 31, 2020 and the results of operations for the three months 2020 . The results of operations included in these Consolidated Financial Statements may not necessarily be indicative of our annual results. These statements should be read in conjunction with our Annual Report on Form 10-K for 2019 . Certain prior year amounts have been reclassified to conform with current year presentation of segment results. 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. Accounting Pronouncements Recently Adopted On January 1, 2020 we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . 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 adoption of this update did not have a material impact on our Consolidated Financial Statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for 2019 . 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. Net Sales by Product Line Three Months 2020 2019 Orthopaedics: Knees $ 432 $ 439 Hips 316 336 Trauma and Extremities 392 396 Other 82 79 $ 1,222 $ 1,250 MedSurg: Instruments $ 513 $ 461 Endoscopy 455 470 Medical 587 531 Sustainability 67 65 $ 1,622 $ 1,527 Neurotechnology and Spine: Neurotechnology $ 483 $ 469 Spine 261 270 $ 744 $ 739 Total $ 3,588 $ 3,516 Net Sales by Geography Three Months 2020 Three Months 2019 United States International United States International Orthopaedics: Knees $ 322 $ 110 $ 320 $ 119 Hips 201 115 213 123 Trauma and Extremities 260 132 254 142 Other 69 13 63 16 $ 852 $ 370 $ 850 $ 400 MedSurg: Instruments $ 410 $ 103 $ 365 $ 96 Endoscopy 364 91 376 94 Medical 454 133 416 115 Sustainability 66 1 64 1 $ 1,294 $ 328 $ 1,221 $ 306 Neurotechnology and Spine: Neurotechnology $ 301 $ 182 $ 300 $ 169 Spine 196 65 208 62 $ 497 $ 247 $ 508 $ 231 Total $ 2,643 $ 945 $ 2,579 $ 937 Contract Assets and Liabilities On March 31, 2020 there were no contract assets recorded on 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 $361 and $313 on March 31, 2020 and December 31, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income (AOCI) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive (Loss) Income (AOCI) | ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI) Three Months 2020 Marketable Securities Pension Plans Hedges Financial Statement Translation Total Beginning $ (3 ) $ (179 ) $ 47 $ (471 ) $ (606 ) OCI 1 (6 ) (39 ) 55 11 Income taxes — — 11 (37 ) (26 ) Reclassifications to: Cost of sales — — 3 — 3 Other (income) expense (1 ) 3 (1 ) (7 ) (6 ) Income taxes — (1 ) — 2 1 Net OCI $ — $ (4 ) $ (26 ) $ 13 $ (17 ) Ending $ (3 ) $ (183 ) $ 21 $ (458 ) $ (623 ) Three Months 2019 Marketable Securities Pension Plans Hedges Financial Statement Translation Total Beginning $ (4 ) $ (137 ) $ 50 $ (540 ) $ (631 ) OCI 1 (6 ) (19 ) 94 70 Income taxes — 1 6 (9 ) (2 ) Reclassifications to: Cost of sales — — (2 ) — (2 ) Other (income) expense — 1 — — 1 Income taxes — — (1 ) — (1 ) Net OCI $ 1 $ (4 ) $ (16 ) $ 85 $ 66 Ending $ (3 ) $ (141 ) $ 34 $ (455 ) $ (565 ) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS 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 our counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum loss exposure is the asset balance of the instrument. We have not changed our hedging strategies, accounting practices or objectives from those disclosed in our Annual Report on Form 10-K for 2019 . Foreign Currency Hedges March 2020 Cash Flow Net Investment Non-Designated Total Gross notional amount $ 837 $ 1,094 $ 5,275 $ 7,206 Maximum term in days 1555 Fair value: Other current assets $ 30 $ — $ 100 $ 130 Other noncurrent assets 5 105 — 110 Other current liabilities (2 ) — (27 ) (29 ) Other noncurrent liabilities — — — — Total fair value $ 33 $ 105 $ 73 $ 211 December 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 In December 2019 and November 2018 we designated the issuance of €2,400 and €2,250 of senior unsecured notes as net investment hedges 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 March 31, 2020 the total after tax gain amount in AOCI related to these designated net investment hedges was $83 . 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. Net Currency Exchange Rate Gains (Losses) Three Months Derivative instrument Recorded in: 2020 2019 Cash Flow Cost of sales $ (3 ) $ 2 Net Investment Other income (expense), net 7 — Non-Designated Other income (expense), net (7 ) (2 ) Total $ (3 ) $ — Pretax gains (losses) on derivatives designated as cash flow of $26 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 March 31, 2020 . 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 March 31, 2020 . On March 31, 2020 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 losses of $62 were recorded in AOCI as of March 31, 2020 . 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. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Our policies for managing risk related to foreign currency, interest rates, credit and markets and our process for determining fair value have not changed from those described in our Annual Report on Form 10-K for 2019 . There were no significant transfers into or out of any level in 2020 . Assets Measured at Fair Value March December 2020 2019 Cash and cash equivalents $ 3,964 $ 4,337 Trading marketable securities 127 149 Level 1 - Assets $ 4,091 $ 4,486 Available-for-sale marketable securities: Corporate and asset-backed debt securities $ 32 $ 32 United States agency debt securities 3 2 United States Treasury debt securities 45 49 Certificates of deposit 4 5 Total available-for-sale marketable securities $ 84 $ 88 Foreign currency exchange forward contracts 240 226 Interest rate swap asset — 17 Level 2 - Assets $ 324 $ 331 Total assets measured at fair value $ 4,415 $ 4,817 Liabilities Measured at Fair Value March December 2020 2019 Deferred compensation arrangements $ 127 $ 149 Level 1 - Liabilities $ 127 $ 149 Foreign currency exchange forward contracts $ 29 $ 23 Interest rate swap liability 62 — Level 2 - Liabilities $ 91 $ 23 Contingent consideration: Beginning $ 306 $ 117 Additions — 298 Change in estimate — (10 ) Settlements — (99 ) Ending $ 306 $ 306 Level 3 - Liabilities $ 306 $ 306 Total liabilities measured at fair value $ 524 $ 478 Fair Value of Available for Sale Securities by Maturity March 2020 December 2019 Due in one year or less $ 46 $ 50 Due after one year through three years $ 38 $ 38 On March 31, 2020 and 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 recorded in other income (expense), net, was $40 and $39 in the three months 2020 and 2019 . 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. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Mar. 31, 2020 | |
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. 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 $290 to $535 . 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 March December 2020 2019 Right-of-use assets $ 393 $ 384 Lease liabilities, current $ 89 $ 86 Lease liabilities, non-current $ 306 $ 301 Other information Weighted-average remaining lease term 5.9 years 6.2 years Weighted-average discount rate 3.09 % 3.34 % Three Months 2020 2019 Operating lease cost $ 36 34 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. The aggregate purchase price of our acquisitions, net of cash acquired was $23 and $308 in the three months 2020 and 2019 . 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 was 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 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 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: Accounts receivable $ 3 $ 1 Inventory 6 1 Other assets 2 1 Contingent consideration (4 ) — Other liabilities (10 ) (29 ) Intangible assets: Customer relationship 7 — Developed technology and patents 59 120 In-process research and development 98 — Non-compete agreements 9 — Goodwill 303 114 Purchase price, net of cash acquired $ 473 $ 208 Weighted-average life of intangible assets 12 18 The purchase price allocation for Mobius is based on preliminary valuations, primarily related to intangible assets that are subject to change within the measurement period. The purchase price allocation for OrthoSpace was finalized in 2020. Estimated Amortization Expense Remainder of 2020 2021 2022 2023 2024 $ 341 $ 440 $ 438 $ 417 $ 386 |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 . 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 March 31, 2020 there were no amounts outstanding under our commercial paper program. Summary of Total Debt March 2020 December 2019 Senior unsecured notes: Rate Due 4.375% January 15, 2020 $ — $ 500 Variable November 30, 2020 328 333 2.625% March 15, 2021 749 749 1.125% November 30, 2023 599 609 3.375% May 15, 2024 588 587 0.250% December 3, 2024 923 938 3.375% November 1, 2025 746 746 3.500% March 15, 2026 991 991 2.125% November 30, 2027 815 829 3.650% March 7, 2028 596 596 0.750% March 1, 2029 869 884 2.625% November 30, 2030 700 712 1.000% December 3, 2031 809 823 4.100% April 1, 2043 392 391 4.375% May 15, 2044 395 395 4.625% March 15, 2046 981 981 Other 26 26 Total debt $ 10,507 $ 11,090 Less current maturities of debt 1,103 859 Total long-term debt $ 9,404 $ 10,231 March 2020 December 2019 Unamortized debt issuance costs $ 56 $ 58 Available secured borrowing capacity $ 1,403 $ 1,403 Fair value of senior unsecured notes $ 10,904 $ 11,910 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 2020 we repaid $500 of senior unsecured notes with a coupon of 4.375% that were due on January 15, 2020 . On April 30, 2020 we amended our primary credit facility. The principal change was to increase the leverage ratio financial covenant from 3.5 :1 to 4.5 :1 at the end of each fiscal quarter ending on or prior to June 30, 2021. On April 30, 2020 we entered into a credit agreement that provides for up to $1,500 of borrowings in U.S. Dollars pursuant to a 364 -day revolving credit facility, which matures on April 29, 2021 and is available for working capital and general corporate purposes. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax [Abstract] | |
Income Taxes | INCOME TAXES Our effective tax rates were 16.4% and 14.2% in the three months 2020 and 2019 . The increase in the effective tax rate for the three months was primarily due to a lower tax benefit related to share-based compensation . In March 2020 the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was signed into law in the United States. We do not expect the provisions of the CARES Act to have a material impact on our annual effective tax rate or Consolidated Financial Statements in 2020. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Three Months 2020 2019 Orthopaedics $ 1,222 $ 1,250 MedSurg 1,622 1,527 Neurotechnology and Spine 744 739 Net sales $ 3,588 $ 3,516 Orthopaedics $ 392 $ 437 MedSurg 401 377 Neurotechnology and Spine 206 199 Segment operating income $ 999 $ 1,013 Items not allocated to segments: Corporate and other (137 ) (132 ) Acquisition and integration-related charges (37 ) (138 ) Amortization of intangible assets (118 ) (114 ) Restructuring-related charges (54 ) (56 ) Medical device regulations (24 ) (7 ) Recall-related matters 6 (13 ) Regulatory and legal matters — (25 ) Consolidated operating income $ 635 $ 528 There were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for 2019 . |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements Not Yet 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. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted On January 1, 2020 we adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . 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 adoption of this update did not have a material impact on our Consolidated Financial Statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition [Abstract] | |
Schedule of Disaggregated Revenue | 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. Net Sales by Product Line Three Months 2020 2019 Orthopaedics: Knees $ 432 $ 439 Hips 316 336 Trauma and Extremities 392 396 Other 82 79 $ 1,222 $ 1,250 MedSurg: Instruments $ 513 $ 461 Endoscopy 455 470 Medical 587 531 Sustainability 67 65 $ 1,622 $ 1,527 Neurotechnology and Spine: Neurotechnology $ 483 $ 469 Spine 261 270 $ 744 $ 739 Total $ 3,588 $ 3,516 Net Sales by Geography Three Months 2020 Three Months 2019 United States International United States International Orthopaedics: Knees $ 322 $ 110 $ 320 $ 119 Hips 201 115 213 123 Trauma and Extremities 260 132 254 142 Other 69 13 63 16 $ 852 $ 370 $ 850 $ 400 MedSurg: Instruments $ 410 $ 103 $ 365 $ 96 Endoscopy 364 91 376 94 Medical 454 133 416 115 Sustainability 66 1 64 1 $ 1,294 $ 328 $ 1,221 $ 306 Neurotechnology and Spine: Neurotechnology $ 301 $ 182 $ 300 $ 169 Spine 196 65 208 62 $ 497 $ 247 $ 508 $ 231 Total $ 2,643 $ 945 $ 2,579 $ 937 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (AOCI) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Three Months 2020 Marketable Securities Pension Plans Hedges Financial Statement Translation Total Beginning $ (3 ) $ (179 ) $ 47 $ (471 ) $ (606 ) OCI 1 (6 ) (39 ) 55 11 Income taxes — — 11 (37 ) (26 ) Reclassifications to: Cost of sales — — 3 — 3 Other (income) expense (1 ) 3 (1 ) (7 ) (6 ) Income taxes — (1 ) — 2 1 Net OCI $ — $ (4 ) $ (26 ) $ 13 $ (17 ) Ending $ (3 ) $ (183 ) $ 21 $ (458 ) $ (623 ) Three Months 2019 Marketable Securities Pension Plans Hedges Financial Statement Translation Total Beginning $ (4 ) $ (137 ) $ 50 $ (540 ) $ (631 ) OCI 1 (6 ) (19 ) 94 70 Income taxes — 1 6 (9 ) (2 ) Reclassifications to: Cost of sales — — (2 ) — (2 ) Other (income) expense — 1 — — 1 Income taxes — — (1 ) — (1 ) Net OCI $ 1 $ (4 ) $ (16 ) $ 85 $ 66 Ending $ (3 ) $ (141 ) $ 34 $ (455 ) $ (565 ) |
Reclassification out of Accumulated Other Comprehensive Income | Three Months 2020 Marketable Securities Pension Plans Hedges Financial Statement Translation Total Beginning $ (3 ) $ (179 ) $ 47 $ (471 ) $ (606 ) OCI 1 (6 ) (39 ) 55 11 Income taxes — — 11 (37 ) (26 ) Reclassifications to: Cost of sales — — 3 — 3 Other (income) expense (1 ) 3 (1 ) (7 ) (6 ) Income taxes — (1 ) — 2 1 Net OCI $ — $ (4 ) $ (26 ) $ 13 $ (17 ) Ending $ (3 ) $ (183 ) $ 21 $ (458 ) $ (623 ) Three Months 2019 Marketable Securities Pension Plans Hedges Financial Statement Translation Total Beginning $ (4 ) $ (137 ) $ 50 $ (540 ) $ (631 ) OCI 1 (6 ) (19 ) 94 70 Income taxes — 1 6 (9 ) (2 ) Reclassifications to: Cost of sales — — (2 ) — (2 ) Other (income) expense — 1 — — 1 Income taxes — — (1 ) — (1 ) Net OCI $ 1 $ (4 ) $ (16 ) $ 85 $ 66 Ending $ (3 ) $ (141 ) $ 34 $ (455 ) $ (565 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | March 2020 Cash Flow Net Investment Non-Designated Total Gross notional amount $ 837 $ 1,094 $ 5,275 $ 7,206 Maximum term in days 1555 Fair value: Other current assets $ 30 $ — $ 100 $ 130 Other noncurrent assets 5 105 — 110 Other current liabilities (2 ) — (27 ) (29 ) Other noncurrent liabilities — — — — Total fair value $ 33 $ 105 $ 73 $ 211 December 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 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | Three Months Derivative instrument Recorded in: 2020 2019 Cash Flow Cost of sales $ (3 ) $ 2 Net Investment Other income (expense), net 7 — Non-Designated Other income (expense), net (7 ) (2 ) Total $ (3 ) $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets Measured at Fair Value March December 2020 2019 Cash and cash equivalents $ 3,964 $ 4,337 Trading marketable securities 127 149 Level 1 - Assets $ 4,091 $ 4,486 Available-for-sale marketable securities: Corporate and asset-backed debt securities $ 32 $ 32 United States agency debt securities 3 2 United States Treasury debt securities 45 49 Certificates of deposit 4 5 Total available-for-sale marketable securities $ 84 $ 88 Foreign currency exchange forward contracts 240 226 Interest rate swap asset — 17 Level 2 - Assets $ 324 $ 331 Total assets measured at fair value $ 4,415 $ 4,817 Liabilities Measured at Fair Value March December 2020 2019 Deferred compensation arrangements $ 127 $ 149 Level 1 - Liabilities $ 127 $ 149 Foreign currency exchange forward contracts $ 29 $ 23 Interest rate swap liability 62 — Level 2 - Liabilities $ 91 $ 23 Contingent consideration: Beginning $ 306 $ 117 Additions — 298 Change in estimate — (10 ) Settlements — (99 ) Ending $ 306 $ 306 Level 3 - Liabilities $ 306 $ 306 Total liabilities measured at fair value $ 524 $ 478 |
Investments Classified by Contractual Maturity Date | Fair Value of Available for Sale Securities by Maturity March 2020 December 2019 Due in one year or less $ 46 $ 50 Due after one year through three years $ 38 $ 38 |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Cost | Leases March December 2020 2019 Right-of-use assets $ 393 $ 384 Lease liabilities, current $ 89 $ 86 Lease liabilities, non-current $ 306 $ 301 Other information Weighted-average remaining lease term 5.9 years 6.2 years Weighted-average discount rate 3.09 % 3.34 % Three Months 2020 2019 Operating lease cost $ 36 34 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Purchase Price Allocation of Acquired Net Assets 2019 Mobius OrthoSpace Tangible assets: Accounts receivable $ 3 $ 1 Inventory 6 1 Other assets 2 1 Contingent consideration (4 ) — Other liabilities (10 ) (29 ) Intangible assets: Customer relationship 7 — Developed technology and patents 59 120 In-process research and development 98 — Non-compete agreements 9 — Goodwill 303 114 Purchase price, net of cash acquired $ 473 $ 208 Weighted-average life of intangible assets 12 18 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated Amortization Expense Remainder of 2020 2021 2022 2023 2024 $ 341 $ 440 $ 438 $ 417 $ 386 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments | Summary of Total Debt March 2020 December 2019 Senior unsecured notes: Rate Due 4.375% January 15, 2020 $ — $ 500 Variable November 30, 2020 328 333 2.625% March 15, 2021 749 749 1.125% November 30, 2023 599 609 3.375% May 15, 2024 588 587 0.250% December 3, 2024 923 938 3.375% November 1, 2025 746 746 3.500% March 15, 2026 991 991 2.125% November 30, 2027 815 829 3.650% March 7, 2028 596 596 0.750% March 1, 2029 869 884 2.625% November 30, 2030 700 712 1.000% December 3, 2031 809 823 4.100% April 1, 2043 392 391 4.375% May 15, 2044 395 395 4.625% March 15, 2046 981 981 Other 26 26 Total debt $ 10,507 $ 11,090 Less current maturities of debt 1,103 859 Total long-term debt $ 9,404 $ 10,231 March 2020 December 2019 Unamortized debt issuance costs $ 56 $ 58 Available secured borrowing capacity $ 1,403 $ 1,403 Fair value of senior unsecured notes $ 10,904 $ 11,910 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Sales and Other Financial Information by Business Segment | Three Months 2020 2019 Orthopaedics $ 1,222 $ 1,250 MedSurg 1,622 1,527 Neurotechnology and Spine 744 739 Net sales $ 3,588 $ 3,516 Orthopaedics $ 392 $ 437 MedSurg 401 377 Neurotechnology and Spine 206 199 Segment operating income $ 999 $ 1,013 Items not allocated to segments: Corporate and other (137 ) (132 ) Acquisition and integration-related charges (37 ) (138 ) Amortization of intangible assets (118 ) (114 ) Restructuring-related charges (54 ) (56 ) Medical device regulations (24 ) (7 ) Recall-related matters 6 (13 ) Regulatory and legal matters — (25 ) Consolidated operating income $ 635 $ 528 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revenue Recognition [Abstract] | ||
Contract liabilities | $ 361 | $ 313 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Sales Analysis (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,588 | $ 3,516 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2,643 | 2,579 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 945 | 937 |
Orthopaedics | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,222 | 1,250 |
Orthopaedics | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 852 | 850 |
Orthopaedics | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 370 | 400 |
Orthopaedics | Knees | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 432 | 439 |
Orthopaedics | Knees | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 322 | 320 |
Orthopaedics | Knees | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 110 | 119 |
Orthopaedics | Hips | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 316 | 336 |
Orthopaedics | Hips | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 201 | 213 |
Orthopaedics | Hips | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 115 | 123 |
Orthopaedics | Trauma and Extremities | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 392 | 396 |
Orthopaedics | Trauma and Extremities | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 260 | 254 |
Orthopaedics | Trauma and Extremities | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 132 | 142 |
Orthopaedics | Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 82 | 79 |
Orthopaedics | Other | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 69 | 63 |
Orthopaedics | Other | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 13 | 16 |
MedSurg | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,622 | 1,527 |
MedSurg | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,294 | 1,221 |
MedSurg | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 328 | 306 |
MedSurg | Instruments | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 513 | 461 |
MedSurg | Instruments | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 410 | 365 |
MedSurg | Instruments | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 103 | 96 |
MedSurg | Endoscopy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 455 | 470 |
MedSurg | Endoscopy | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 364 | 376 |
MedSurg | Endoscopy | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 91 | 94 |
MedSurg | Medical | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 587 | 531 |
MedSurg | Medical | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 454 | 416 |
MedSurg | Medical | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 133 | 115 |
MedSurg | Sustainability | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 67 | 65 |
MedSurg | Sustainability | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 66 | 64 |
MedSurg | Sustainability | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1 | 1 |
Neurotechnology and Spine | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 744 | 739 |
Neurotechnology and Spine | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 497 | 508 |
Neurotechnology and Spine | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 247 | 231 |
Neurotechnology and Spine | Neurotechnology | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 483 | 469 |
Neurotechnology and Spine | Neurotechnology | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 301 | 300 |
Neurotechnology and Spine | Neurotechnology | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 182 | 169 |
Neurotechnology and Spine | Spine | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 261 | 270 |
Neurotechnology and Spine | Spine | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 196 | 208 |
Neurotechnology and Spine | Spine | International | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 65 | $ 62 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | $ (606) | $ (631) |
OCI | 11 | 70 |
Income taxes | (26) | (2) |
Cost of sales | 1,257 | 1,233 |
Other (income) expense | (45) | (48) |
Income taxes | (97) | (68) |
Net OCI | (17) | 66 |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | (623) | (565) |
Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cost of sales | 3 | (2) |
Other (income) expense | (6) | 1 |
Income taxes | 1 | (1) |
Net OCI | (17) | 66 |
Marketable Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | (3) | (4) |
OCI | 1 | 1 |
Income taxes | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | (3) | (3) |
Marketable Securities | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cost of sales | 0 | 0 |
Other (income) expense | (1) | 0 |
Income taxes | 0 | 0 |
Net OCI | 0 | 1 |
Pension Plans | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | (179) | (137) |
OCI | (6) | (6) |
Income taxes | 0 | 1 |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | (183) | (141) |
Pension Plans | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cost of sales | 0 | 0 |
Other (income) expense | 3 | 1 |
Income taxes | (1) | 0 |
Net OCI | (4) | (4) |
Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | 47 | 50 |
OCI | (39) | (19) |
Income taxes | 11 | 6 |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | 21 | 34 |
Hedges | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cost of sales | 3 | (2) |
Other (income) expense | (1) | 0 |
Income taxes | 0 | (1) |
Net OCI | (26) | (16) |
Financial Statement Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax at beginning of period | (471) | (540) |
OCI | 55 | 94 |
Income taxes | (37) | (9) |
Accumulated Other Comprehensive Income (Loss), Net of Tax at end of period | (458) | (455) |
Financial Statement Translation | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cost of sales | 0 | 0 |
Other (income) expense | (7) | 0 |
Income taxes | 2 | 0 |
Net OCI | $ 13 | $ 85 |
Derivative Instruments (Forward
Derivative Instruments (Forward Currency Exchange Contracts) (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Nov. 30, 2018EUR (€) | |
Foreign Exchange Contract | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 7,206 | $ 8,088 | |||
Maximum term in days | 1555 days | 1646 days | |||
Derivative, Fair Value, Net | $ 211 | 203 | |||
Foreign Exchange Contract | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 130 | 185 | |||
Foreign Exchange Contract | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 110 | 41 | |||
Foreign Exchange Contract | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | (29) | (21) | |||
Foreign Exchange Contract | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 0 | (2) | |||
Foreign Exchange Contract | Net Investment | |||||
Derivative [Line Items] | |||||
Notional Amount | 837 | € 2,400 | 1,113 | $ 1,000 | € 2,250 |
Derivative, Fair Value, Net | 33 | 40 | |||
Foreign Exchange Contract | Net Investment | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 30 | 0 | |||
Foreign Exchange Contract | Net Investment | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 5 | 40 | |||
Foreign Exchange Contract | Net Investment | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | (2) | 0 | |||
Foreign Exchange Contract | Net Investment | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 0 | 0 | |||
Foreign Exchange Contract | Non-Designated | |||||
Derivative [Line Items] | |||||
Notional Amount | 5,275 | 6,174 | |||
Derivative, Fair Value, Net | 73 | 169 | |||
Foreign Exchange Contract | Non-Designated | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 100 | 180 | |||
Foreign Exchange Contract | Non-Designated | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 0 | 0 | |||
Foreign Exchange Contract | Non-Designated | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 27 | 11 | |||
Foreign Exchange Contract | Non-Designated | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 0 | 0 | |||
Cash Flow Hedging [Member] | Foreign Exchange Contract | Net Investment | |||||
Derivative [Line Items] | |||||
Notional Amount | 801 | ||||
Derivative, Fair Value, Net | (6) | ||||
Cash Flow Hedging [Member] | Foreign Exchange Contract | Net Investment | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 5 | ||||
Cash Flow Hedging [Member] | Foreign Exchange Contract | Net Investment | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 1 | ||||
Cash Flow Hedging [Member] | Foreign Exchange Contract | Net Investment | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | (10) | ||||
Cash Flow Hedging [Member] | Foreign Exchange Contract | Net Investment | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | $ 2 | ||||
Net Investment Hedging [Member] | Net Investment | |||||
Derivative [Line Items] | |||||
Notional Amount | 1,094 | ||||
Derivative, Fair Value, Net | 105 | ||||
Net Investment Hedging [Member] | Net Investment | Other current assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 0 | ||||
Net Investment Hedging [Member] | Net Investment | Other noncurrent assets | |||||
Derivative [Line Items] | |||||
Derivative assets | 105 | ||||
Net Investment Hedging [Member] | Net Investment | Other current liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | 0 | ||||
Net Investment Hedging [Member] | Net Investment | Other noncurrent liabilities | |||||
Derivative [Line Items] | |||||
Derivative liabilities | $ 0 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Nov. 30, 2019EUR (€) | Jul. 31, 2019USD ($) | Nov. 30, 2018EUR (€) | |
Foreign Exchange Contract | |||||||
Notional amount | $ 7,206 | $ 8,088 | |||||
Designated as Hedging Instrument | Foreign Exchange Contract | |||||||
Notional amount | 837 | € 2,400 | $ 1,113 | $ 1,000 | € 2,250 | ||
Derivative, fair value | 83 | ||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | 26 | ||||||
Other Income | 27 | ||||||
Designated as Hedging Instrument | Interest Rate Swap | |||||||
Notional amount | 750 | ||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 6 | ||||||
Notional amount terminated | € | € 600 | ||||||
Net Investment Hedging [Member] | Designated as Hedging Instrument | |||||||
Notional amount | 1,094 | ||||||
Accrued Expenses | Designated as Hedging Instrument | Interest Rate Swap | |||||||
Pretax losses recorded in AOCI | $ 62 |
Derivative Instruments (Income
Derivative Instruments (Income Statement Location) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net currency exchange rate gains (losses) | $ (3) | $ 0 |
Foreign Exchange Contract | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net currency exchange rate gains (losses) | (3) | 2 |
Foreign Exchange Contract | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net currency exchange rate gains (losses) | (7) | (2) |
Net Investment Hedging [Member] | Other income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net currency exchange rate gains (losses) | $ 7 | $ 0 |
Fair Value Measurements (Valuat
Fair Value Measurements (Valuation Of Financial Instruments By Pricing Categories) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 3,964 | $ 4,337 |
Assets | ||
Available-for-sale securities, current | 84 | 88 |
Investments Fair Value Disclosure | 4,415 | 4,817 |
Contingent consideration: | ||
Total liabilities measured at fair value | 524 | 478 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 3,964 | 4,337 |
Trading marketable securities | 127 | 149 |
Assets | ||
Investments Fair Value Disclosure | 4,091 | 4,486 |
Deferred compensation arrangements | 127 | 149 |
Contingent consideration: | ||
Total liabilities measured at fair value | 127 | 149 |
Fair Value, Inputs, Level 2 | ||
Assets | ||
Investments Fair Value Disclosure | 324 | 331 |
Contingent consideration: | ||
Total liabilities measured at fair value | 91 | 23 |
Fair Value, Inputs, Level 2 | Foreign currency exchange forward contracts | ||
Assets | ||
Derivative asset | 240 | 226 |
Liabilities | ||
Foreign currency exchange forward contracts | 29 | 23 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Assets | ||
Derivative asset | 0 | 17 |
Liabilities | ||
Foreign currency exchange forward contracts | 62 | 0 |
Fair Value, Inputs, Level 2 | Available-for-sale marketable securities: | ||
Assets | ||
Available-for-sale securities, current | 84 | 88 |
Fair Value, Inputs, Level 2 | Available-for-sale marketable securities: | Corporate and asset-backed debt securities | ||
Assets | ||
Available-for-sale securities, current | 32 | 32 |
Fair Value, Inputs, Level 2 | Available-for-sale marketable securities: | United States agency debt securities | ||
Assets | ||
Available-for-sale securities, current | 3 | 2 |
Fair Value, Inputs, Level 2 | Available-for-sale marketable securities: | United States Treasury debt securities | ||
Assets | ||
Available-for-sale securities, current | 45 | 49 |
Fair Value, Inputs, Level 2 | Available-for-sale marketable securities: | Certificates of deposit | ||
Assets | ||
Available-for-sale securities, current | 4 | 5 |
Fair Value, Inputs, Level 3 | ||
Contingent consideration: | ||
Beginning | 306 | 117 |
Additions | 0 | 298 |
Change in estimate | 0 | (10) |
Settlements | 0 | (99) |
Ending | 306 | 306 |
Total liabilities measured at fair value | $ 306 | $ 306 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured At Fair Value On A Recurring Basis Using Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Due in one year or less | $ 46 | $ 50 |
Due after one year through three years | 38 | 38 |
Fair Value, Inputs, Level 2 | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange forward contracts | 62 | 0 |
Fair Value, Inputs, Level 2 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange forward contracts | $ 29 | $ 23 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Gain on sale of marketable securities | $ 40 | $ 39 |
Contingencies and Commitments_2
Contingencies and Commitments (Narrative) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Minimum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 290 |
Maximum | |
Loss Contingencies [Line Items] | |
Estimate of possible loss | $ 535 |
Contingencies and Commitments -
Contingencies and Commitments - Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Right-of-use assets | $ 393 | $ 384 |
Lease liabilities, current | 89 | 86 |
Lease liabilities, non-current | $ 306 | $ 301 |
Other information | ||
Weighted-average remaining lease term | 5 years 10 months 24 days | 6 years 2 months 12 days |
Weighted-average discount rate | 3.09% | 3.34% |
Operating lease cost | $ 36 | $ 34 |
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 ($) | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Aggregate purchase price of acquisitions | $ 23 | $ 308 | |||||
Acquisitions, net of cash acquired | $ 23 | $ 180 | |||||
Mobius | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price of acquisitions | $ 360 | ||||||
Future milestone payments | $ 130 | ||||||
OrthoSpace, Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Aggregate purchase price of acquisitions | $ 110 | ||||||
Future milestone payments | $ 110 | ||||||
Wright | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred (in dollars per share) | $ / shares | $ 30.75 | $ 30.75 | |||||
Acquisitions, net of cash acquired | $ 5,400 | ||||||
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 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2020 | |
Goodwill | $ 9,069 | $ 9,025 |
Mobius | ||
Accounts receivable | 3 | |
Inventory | 6 | |
Other assets | 2 | |
Contingent consideration | (4) | |
Other liabilities | (10) | |
Goodwill | 303 | |
Assets and liabilities acquired, net | $ 473 | |
Weighted-average life of intangible assets | 12 years | |
Mobius | Customer relationship | ||
Intangible assets acquired | $ 7 | |
Mobius | Developed technology and patents | ||
Intangible assets acquired | 59 | |
Mobius | In-process research and development | ||
Intangible assets acquired | 98 | |
Mobius | Non-compete agreements | ||
Intangible assets acquired | 9 | |
OrthoSpace, Ltd. | ||
Accounts receivable | 1 | |
Inventory | 1 | |
Other assets | 1 | |
Contingent consideration | 0 | |
Other liabilities | (29) | |
Goodwill | 114 | |
Assets and liabilities acquired, net | $ 208 | |
Weighted-average life of intangible assets | 18 years | |
OrthoSpace, Ltd. | Customer relationship | ||
Intangible assets acquired | $ 0 | |
OrthoSpace, Ltd. | Developed technology and patents | ||
Intangible assets acquired | 120 | |
OrthoSpace, Ltd. | In-process research and development | ||
Intangible assets acquired | 0 | |
OrthoSpace, Ltd. | Non-compete agreements | ||
Intangible assets acquired | $ 0 |
Acquisitions (Future Amortizati
Acquisitions (Future Amortization Expense) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Business Combinations [Abstract] | |
Remainder of 2020 | $ 341 |
2021 | 440 |
2022 | 438 |
2023 | 417 |
2024 | $ 386 |
Debt and Credit Facilities (Det
Debt and Credit Facilities (Details) | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($)Rate | Jan. 31, 2020USD ($)Rate | Dec. 31, 2019USD ($) |
Amounts outstanding under commercial paper program | $ 0 | |||
Other Long-term Debt | 26,000,000 | $ 26,000,000 | ||
Total debt | 10,507,000,000 | 11,090,000,000 | ||
Less current maturities of debt | 1,103,000,000 | 859,000,000 | ||
Total long-term debt | 9,404,000,000 | 10,231,000,000 | ||
Unamortized debt issuance costs | 56,000,000 | 58,000,000 | ||
Available secured borrowing capacity | 1,403,000,000 | 1,403,000,000 | ||
Fair value of senior unsecured notes | $ 10,904,000,000 | 11,910,000,000 | ||
Commercial Paper | ||||
Debt instrument, maturity | 397 days | |||
Commercial Paper | Maximum | ||||
Commercial paper | $ 1,500,000,000 | |||
Senior Unsecured Notes 4.375% due 2020 | ||||
Stated interest rate | Rate | 4.375% | 4.375% | ||
Maturity Date | Jan. 15, 2020 | |||
Unsecured Debt | $ 0 | 500,000,000 | ||
Debt instrument, repurchased face amount | $ 500,000,000 | |||
Senior Unsecured Notes Variable due 2020 | ||||
Maturity Date | Nov. 30, 2020 | |||
Unsecured Debt | $ 328,000,000 | 333,000,000 | ||
Senior Unsecured Notes 2.625% due 2021 | ||||
Stated interest rate | Rate | 2.625% | |||
Maturity Date | Mar. 15, 2021 | |||
Unsecured Debt | $ 749,000,000 | 749,000,000 | ||
Senior Unsecured Notes 1.125% due 2021 | ||||
Stated interest rate | Rate | 1.125% | |||
Maturity Date | Nov. 30, 2023 | |||
Unsecured Debt | $ 599,000,000 | 609,000,000 | ||
Senior Unsecured Notes 3.375% due 2024 | ||||
Stated interest rate | Rate | 3.375% | |||
Maturity Date | May 15, 2024 | |||
Unsecured Debt | $ 588,000,000 | 587,000,000 | ||
Senior Unsecured Notes 0.250% due 2024 | ||||
Stated interest rate | 0.25% | |||
Maturity Date | Dec. 3, 2024 | |||
Unsecured Debt | $ 923,000,000 | 938,000,000 | ||
Senior Unsecured Notes 3.375% due 2025 | ||||
Stated interest rate | Rate | 3.375% | |||
Maturity Date | Nov. 1, 2025 | |||
Unsecured Debt | $ 746,000,000 | 746,000,000 | ||
Senior Unsecured Notes 3.50% due 2026 | ||||
Stated interest rate | Rate | 3.50% | |||
Maturity Date | Mar. 15, 2026 | |||
Unsecured Debt | $ 991,000,000 | 991,000,000 | ||
Senior Unsecured Notes 2.125% due 2027 | ||||
Stated interest rate | Rate | 2.125% | |||
Maturity Date | Nov. 30, 2027 | |||
Unsecured Debt | $ 815,000,000 | 829,000,000 | ||
Senior Unsecured Notes 3.650% due 2028 | ||||
Stated interest rate | Rate | 3.65% | |||
Maturity Date | Mar. 7, 2028 | |||
Unsecured Debt | $ 596,000,000 | 596,000,000 | ||
Senior Unsecured Notes 0.750% due 2029 | ||||
Stated interest rate | 0.75% | |||
Maturity Date | Mar. 1, 2029 | |||
Unsecured Debt | $ 869,000,000 | 884,000,000 | ||
Senior Unsecured Notes 2.625% due 2030 | ||||
Stated interest rate | Rate | 2.625% | |||
Maturity Date | Nov. 30, 2030 | |||
Unsecured Debt | $ 700,000,000 | 712,000,000 | ||
Senior Unsecured Notes 1.000% due 2031 | ||||
Stated interest rate | 1.00% | |||
Maturity Date | Dec. 3, 2031 | |||
Unsecured Debt | $ 809,000,000 | 823,000,000 | ||
Senior Unsecured Notes 4.100% due 2043 | ||||
Stated interest rate | Rate | 4.10% | |||
Maturity Date | Apr. 1, 2043 | |||
Unsecured Debt | $ 392,000,000 | 391,000,000 | ||
Senior Unsecured Notes 4.375% due 2044 | ||||
Stated interest rate | Rate | 4.375% | |||
Maturity Date | May 15, 2044 | |||
Unsecured Debt | $ 395,000,000 | 395,000,000 | ||
Senior Unsecured Notes 4.625% due 2046 | ||||
Stated interest rate | Rate | 4.625% | |||
Maturity Date | Mar. 15, 2046 | |||
Unsecured Debt | $ 981,000,000 | $ 981,000,000 | ||
Revolving Credit Facility | ||||
Leverage ratio | 3.5 | |||
Revolving Credit Facility | Subsequent Event | ||||
Leverage ratio | 4.5 | |||
Revolving Credit Facility | Subsequent Event | Credit Agreement | ||||
Debt instrument, maturity | 364 days | |||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020Rate | Mar. 31, 2019Rate | |
Income Tax [Abstract] | ||
Effective income tax rate reconciliation, percent | 16.40% | 14.20% |
Segment Information (Sales And
Segment Information (Sales And Other Financial Information By Business Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 3,588 | $ 3,516 |
Segment operating income | 635 | 528 |
Amortization of intangible assets | (118) | (114) |
Recall-related matters | 6 | (13) |
Orthopaedics | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,222 | 1,250 |
MedSurg | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,622 | 1,527 |
Neurotechnology and Spine | ||
Segment Reporting Information [Line Items] | ||
Net sales | 744 | 739 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 3,588 | 3,516 |
Segment operating income | 999 | 1,013 |
Operating Segments | Orthopaedics | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,222 | 1,250 |
Segment operating income | 392 | 437 |
Operating Segments | MedSurg | ||
Segment Reporting Information [Line Items] | ||
Net sales | 1,622 | 1,527 |
Segment operating income | 401 | 377 |
Operating Segments | Neurotechnology and Spine | ||
Segment Reporting Information [Line Items] | ||
Net sales | 744 | 739 |
Segment operating income | 206 | 199 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Segment operating income | (137) | (132) |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Acquisition and integration-related charges | (37) | (138) |
Amortization of intangible assets | (118) | (114) |
Restructuring-related charges | (54) | (56) |
Medical device regulations | (24) | (7) |
Recall-related matters | 6 | (13) |
Regulatory and legal matters | $ 0 | $ (25) |