syk-20240331

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13149

STRYKER CORPORATION
(Exact name of registrant as specified in its charter)

Michigan

38-1239739

(State of incorporation)

(I.R.S. Employer Identification No.)

1941 Stryker Way

Portage,

Michigan

49002

(Address of principal executive offices)

(Zip Code)

(269)

385-2600

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.10 Par Value	SYK	New York Stock Exchange
0.250% Notes due 2024	SYK24A	New York Stock Exchange
2.125% Notes due 2027	SYK27	New York Stock Exchange
3.375% Notes due 2028	SYK28	New York Stock Exchange
0.750% Notes due 2029	SYK29	New York Stock Exchange
2.625% Notes due 2030	SYK30	New York Stock Exchange
1.000% Notes due 2031	SYK31	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Emerging growth company

☐

Non-accelerated filer

☐

Small reporting company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 380,949,778 shares of Common Stock, $0.10 par value, on March 31, 2024.


STRYKER CORPORATION						2024 First Quarter Form 10-Q

PART I – FINANCIAL INFORMATION


ITEM 1.			FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)


	Three Months
	2024		2023
Net sales	$	5,243	$	4,778
Cost of sales	1,910		1,762
Gross profit	$	3,333	$	3,016
Research, development and engineering expenses	368		339
Selling, general and administrative expenses	1,840		1,781

Amortization of intangible assets	153		161

Total operating expenses	$	2,361	$	2,281
Operating income	$	972	$	735
Other income (expense), net	(49)		(56)
Earnings before income taxes	$	923	$	679
Income taxes	135		87
Net earnings	$	788	$	592

Net earnings per share of common stock:
Basic	$	2.07	$	1.56
Diluted	$	2.05	$	1.54

Weighted-average shares outstanding (in millions):
Basic	380.4		379.0
Effect of dilutive employee stock compensation	4.7		4.2
Diluted	385.1		383.2

Cash dividends declared per share of common stock	$	0.80	$	0.75

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were de minimis in all periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)


	Three Months
	2024		2023
Net earnings	$	788	$	592
Other comprehensive income (loss), net of tax:
Marketable securities	—		—
Pension plans	2		(2)
Unrealized gains (losses) on designated hedges	2		(9)
Financial statement translation	35		(73)
Total other comprehensive income (loss), net of tax	$	39	$	(84)
Comprehensive income	$	827	$	508

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.			1


STRYKER CORPORATION						2024 First Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS


	March 31		December 31
	2024		2023
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	2,330	$	2,971
Marketable securities	77		82
Accounts receivable, less allowance of $175 ($182 in 2023)	3,473		3,765
Inventories:
Materials and supplies	1,232		1,242
Work in process	372		330
Finished goods	3,422		3,271
Total inventories	$	5,026	$	4,843
Prepaid expenses and other current assets	986		857
Total current assets	$	11,892	$	12,518
Property, plant and equipment:
Land, buildings and improvements	1,686		1,692
Machinery and equipment	4,772		4,652
Total property, plant and equipment	$	6,458	$	6,344
Less allowance for depreciation	3,198		3,129
Property, plant and equipment, net	$	3,260	$	3,215
Goodwill	15,351		15,243
Other intangibles, net	4,509		4,593
Noncurrent deferred income tax assets	1,641		1,670
Other noncurrent assets	2,749		2,673
Total assets	$	39,402	$	39,912

Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	1,246	$	1,517
Accrued compensation	778		1,478
Income taxes	444		391
Dividends payable	305		304
Accrued expenses and other liabilities	2,124		2,137
Current maturities of debt	2,058		2,094
Total current liabilities	$	6,955	$	7,921
Long-term debt, excluding current maturities	10,807		10,901
Income taxes	565		567
Other noncurrent liabilities	1,903		1,930
Total liabilities	$	20,230	$	21,319
Shareholders' equity
Common stock, $0.10 par value	38		38
Additional paid-in capital	2,257		2,200
Retained earnings	17,254		16,771
Accumulated other comprehensive loss	(377)		(416)
Total shareholders' equity	$	19,172	$	18,593
Total liabilities and shareholders' equity	$	39,402	$	39,912

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.			2


STRYKER CORPORATION						2024 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)


	Three Months
	2024		2023
Common stock shares outstanding (in millions)
Beginning	380.1		378.7
Issuance of common stock under stock compensation and benefit plans	0.8		0.9

Ending	380.9		379.6

Common stock
Beginning	$	38	$	38
Issuance of common stock under stock compensation and benefit plans	—		—

Ending	$	38	$	38
Additional paid-in capital
Beginning	$	2,200	$	2,034
Issuance of common stock under stock compensation and benefit plans	(30)		(18)

Share-based compensation	87		74
Ending	$	2,257	$	2,090
Retained earnings
Beginning	$	16,771	$	14,765

Net earnings	788		592

Cash dividends declared	(305)		(285)
Ending	$	17,254	$	15,072
Accumulated other comprehensive income (loss)
Beginning	$	(416)	$	(221)
Other comprehensive income (loss)	39		(84)
Ending	$	(377)	$	(305)








Total shareholders' equity	$	19,172	$	16,895

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.			3


STRYKER CORPORATION						2024 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Three Months
	2024		2023
Operating activities
Net earnings	$	788	$	592
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	107		96
Amortization of intangible assets	153		161
Asset impairments	3		2

SEC Form 10-Q filed by Stryker Corporation