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 ~~September 30, 2022~~March 31, 2023


☐			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.)

2825 Airview Boulevard

Kalamazoo,

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
1.125% Notes due 2023	SYK23	New York Stock Exchange
0.250% Notes due 2024	SYK24A	New York Stock Exchange
2.125% Notes due 2027	SYK27	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 ~~378,429,929~~379,608,166 shares of Common Stock, $0.10 par value, on ~~September 30, 2022.~~March 31, 2023.


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

PART I – FINANCIAL INFORMATION


ITEM 1.			FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)


		Three Months				Nine Months					Three Months
		2022		2021		2022		2021			2023		2022
Net sales	Net sales	$	4,479	$	4,160	$	13,247	$	12,407	Net sales	$	4,778	$	4,275
Cost of sales	Cost of sales	1,697		1,518		4,905		4,484		Cost of sales	1,762		1,541
Gross profit	Gross profit	$	2,782	$	2,642	$	8,342	$	7,923	Gross profit	$	3,016	$	2,734
Research, development and engineering expenses	Research, development and engineering expenses	364		306		1,128		904		Research, development and engineering expenses	339		413
Selling, general and administrative expenses	Selling, general and administrative expenses	1,455		1,602		4,704		4,682		Selling, general and administrative expenses	1,781		1,710
Recall charges		(4)		16		14		98
Recall charges, net										Recall charges, net	—		14
Amortization of intangible assets	Amortization of intangible assets	159		144		469		474		Amortization of intangible assets	161		150

Total operating expenses	Total operating expenses	$	1,974	$	2,068	$	6,315	$	6,158	Total operating expenses	$	2,281	$	2,287
Operating income	Operating income	$	808	$	574	$	2,027	$	1,765	Operating income	$	735	$	447
Other income (expense), net	Other income (expense), net	8		(79)		(105)		(241)		Other income (expense), net	(56)		(61)
Earnings before income taxes	Earnings before income taxes	$	816	$	495	$	1,922	$	1,524	Earnings before income taxes	$	679	$	386
Income taxes	Income taxes	—		57		127		192		Income taxes	87		63
Net earnings	Net earnings	$	816	$	438	$	1,795	$	1,332	Net earnings	$	592	$	323

Net earnings per share of common stock:	Net earnings per share of common stock:									Net earnings per share of common stock:
Basic	Basic	$	2.16	$	1.17	$	4.75	$	3.54	Basic	$	1.56	$	0.86
Diluted	Diluted	$	2.14	$	1.14	$	4.70	$	3.48	Diluted	$	1.54	$	0.84

Weighted-average shares outstanding (in millions):	Weighted-average shares outstanding (in millions):									Weighted-average shares outstanding (in millions):
Basic	Basic	378.4		377.1		378.1		376.8		Basic	379.0		377.7
Effect of dilutive employee stock compensation	Effect of dilutive employee stock compensation	3.4		5.6		4.1		5.5		Effect of dilutive employee stock compensation	4.2		5.0
Diluted	Diluted	381.8		382.7		382.2		382.3		Diluted	383.2		382.7

Cash dividends declared per share of common stock	Cash dividends declared per share of common stock	$	0.695	$	0.63	$	2.085	$	1.89	Cash dividends declared per share of common stock	$	0.750	$	0.695

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were ~~5.0 for the three months 2022 and 4.2 for the nine months 2022 and~~ de minimis in all ~~other~~ periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)


		Three Months				Nine Months					Three Months
		2022		2021		2022		2021			2023		2022
Net earnings	Net earnings	$	816	$	438	$	1,795	$	1,332	Net earnings	$	592	$	323
Other comprehensive income (loss), net of tax:	Other comprehensive income (loss), net of tax:									Other comprehensive income (loss), net of tax:
Marketable securities	Marketable securities	—		3		(1)		3		Marketable securities	—		(1)
Pension plans	Pension plans	10		5		17		8		Pension plans	(2)		(1)
Unrealized gains (losses) on designated hedges	Unrealized gains (losses) on designated hedges	8		7		33		43		Unrealized gains (losses) on designated hedges	(9)		1
Financial statement translation	Financial statement translation	179		112		393		287		Financial statement translation	(73)		53
Total other comprehensive income (loss), net of tax	Total other comprehensive income (loss), net of tax	$	197	$	127	$	442	$	341	Total other comprehensive income (loss), net of tax	$	(84)	$	52
Comprehensive income	Comprehensive income	$	1,013	$	565	$	2,237	$	1,673	Comprehensive income	$	508	$	375

See accompanying notes to Consolidated Financial Statements.


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


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS


		September 30		December 31			March 31		December 31
		2022		2021			2023		2022
		(Unaudited)					(Unaudited)
Assets	Assets					Assets
Current assets	Current assets					Current assets
Cash and cash equivalents	Cash and cash equivalents	$	1,420	$	2,944	Cash and cash equivalents	$	1,671	$	1,844
Marketable securities	Marketable securities	77		75		Marketable securities	86		84
Accounts receivable, less allowance of $150 ($167 in 2021)		3,103		3,022
Accounts receivable, less allowance of $180 ($154 in 2022)						Accounts receivable, less allowance of $180 ($154 in 2022)	3,215		3,565
Inventories:	Inventories:					Inventories:
Materials and supplies	Materials and supplies	852		691		Materials and supplies	1,144		1,006
Work in process	Work in process	309		264		Work in process	366		348
Finished goods	Finished goods	2,722		2,359		Finished goods	2,823		2,641
Total inventories	Total inventories	$	3,883	$	3,314	Total inventories	$	4,333	$	3,995
Prepaid expenses and other current assets	Prepaid expenses and other current assets	835		662		Prepaid expenses and other current assets	850		787
Total current assets	Total current assets	$	9,318	$	10,017	Total current assets	$	10,155	$	10,275
Property, plant and equipment:	Property, plant and equipment:					Property, plant and equipment:
Land, buildings and improvements	Land, buildings and improvements	1,665		1,656		Land, buildings and improvements	1,770		1,739
Machinery and equipment	Machinery and equipment	3,869		3,842		Machinery and equipment	4,200		4,066
Total property, plant and equipment	Total property, plant and equipment	$	5,534	$	5,498	Total property, plant and equipment	$	5,970	$	5,805
Less accumulated depreciation		2,736		2,665
Less allowance for depreciation						Less allowance for depreciation	2,933		2,835
Property, plant and equipment, net	Property, plant and equipment, net	$	2,798	$	2,833	Property, plant and equipment, net	$	3,037	$	2,970
Goodwill	Goodwill	14,993		12,918		Goodwill	14,849		14,880
Other intangibles, net	Other intangibles, net	5,053		4,840		Other intangibles, net	4,779		4,885
Noncurrent deferred income tax assets	Noncurrent deferred income tax assets	1,390		1,760		Noncurrent deferred income tax assets	1,443		1,410
Other noncurrent assets	Other noncurrent assets	2,431		2,263		Other noncurrent assets	2,567		2,464
Total assets	Total assets	$	35,983	$	34,631	Total assets	$	36,830	$	36,884

Liabilities and shareholders' equity	Liabilities and shareholders' equity					Liabilities and shareholders' equity
Current liabilities	Current liabilities					Current liabilities
Accounts payable	Accounts payable	$	1,213	$	1,129	Accounts payable	$	1,366	$	1,413
Accrued compensation	Accrued compensation	927		1,092		Accrued compensation	713		1,149
Income taxes	Income taxes	243		192		Income taxes	371		292
Dividends payable	Dividends payable	263		263		Dividends payable	285		284
Accrued product liabilities	Accrued product liabilities	391		401		Accrued product liabilities	227		230
Accrued expenses and other liabilities	Accrued expenses and other liabilities	1,526		1,465		Accrued expenses and other liabilities	1,700		1,744
Current maturities of debt	Current maturities of debt	8		7		Current maturities of debt	1,204		1,191
Total current liabilities	Total current liabilities	$	4,571	$	4,549	Total current liabilities	$	5,866	$	6,303
Long-term debt, excluding current maturities	Long-term debt, excluding current maturities	12,751		12,472		Long-term debt, excluding current maturities	11,857		11,857
Income taxes	Income taxes	621		913		Income taxes	625		641
Other noncurrent liabilities	Other noncurrent liabilities	1,577		1,820		Other noncurrent liabilities	1,587		1,467
Total liabilities	Total liabilities	$	19,520	$	19,754	Total liabilities	$	19,935	$	20,268
Shareholders' equity	Shareholders' equity					Shareholders' equity
Common stock, $0.10 par value	Common stock, $0.10 par value	38		38		Common stock, $0.10 par value	38		38
Additional paid-in capital	Additional paid-in capital	2,028		1,890		Additional paid-in capital	2,090		2,034
Retained earnings	Retained earnings	14,486		13,480		Retained earnings	15,072		14,765
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(89)		(531)		Accumulated other comprehensive loss	(305)		(221)
Total shareholders' equity	Total shareholders' equity	$	16,463	$	14,877	Total shareholders' equity	$	16,895	$	16,616
Total liabilities and shareholders' equity	Total liabilities and shareholders' equity	$	35,983	$	34,631	Total liabilities and shareholders' equity	$	36,830	$	36,884

See accompanying notes to Consolidated Financial Statements.


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


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)


		Three Months				Nine Months					Three Months
		2022		2021		2022		2021			2023		2022
Common stock shares outstanding (in millions)	Common stock shares outstanding (in millions)									Common stock shares outstanding (in millions)
Beginning	Beginning	378.3		377.1		377.5		376.1		Beginning	378.7		377.5
Issuance of common stock under stock compensation and benefit plans	Issuance of common stock under stock compensation and benefit plans	0.1		0.1		0.9		1.1		Issuance of common stock under stock compensation and benefit plans	0.9		0.7

Ending	Ending	378.4		377.2		378.4		377.2		Ending	379.6		378.2

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

Ending	Ending	$	38	$	38	$	38	$	38	Ending	$	38	$	38
Additional paid-in capital	Additional paid-in capital									Additional paid-in capital
Beginning	Beginning	$	1,989	$	1,844	$	1,890	$	1,741	Beginning	$	2,034	$	1,890
Issuance of common stock under stock compensation and benefit plans	Issuance of common stock under stock compensation and benefit plans	6		(3)		(2)		(7)		Issuance of common stock under stock compensation and benefit plans	(18)		(14)

Share-based compensation	Share-based compensation	33		34		140		141		Share-based compensation	74		71
Ending	Ending	$	2,028	$	1,875	$	2,028	$	1,875	Ending	$	2,090	$	1,947
Retained earnings	Retained earnings									Retained earnings
Beginning	Beginning	$	13,933	$	12,881	$	13,480	$	12,462	Beginning	$	14,765	$	13,480

Net earnings	Net earnings	816		438		1,795		1,332		Net earnings	592		323

Cash dividends declared	Cash dividends declared	(263)		(238)		(789)		(713)		Cash dividends declared	(285)		(263)
Ending	Ending	$	14,486	$	13,081	$	14,486	$	13,081	Ending	$	15,072	$	13,540
Accumulated other comprehensive income (loss)	Accumulated other comprehensive income (loss)									Accumulated other comprehensive income (loss)
Beginning	Beginning	$	(286)	$	(943)	$	(531)	$	(1,157)	Beginning	$	(221)	$	(531)
Other comprehensive income (loss)	Other comprehensive income (loss)	197		127		442		341		Other comprehensive income (loss)	(84)		52
Ending	Ending	$	(89)	$	(816)	$	(89)	$	(816)	Ending	$	(305)	$	(479)

Total shareholders' equity	Total shareholders' equity	$	16,463	$	14,178	$	16,463	$	14,178	Total shareholders' equity	$	16,895	$	15,046

See accompanying notes to Consolidated Financial Statements.


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


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


		Nine Months					Three Months
		2022		2021			2023		2022
Operating activities	Operating activities					Operating activities
Net earnings	Net earnings	$	1,795	$	1,332	Net earnings	$	592	$	323
Adjustments to reconcile net earnings to net cash provided by operating activities:	Adjustments to reconcile net earnings to net cash provided by operating activities:					Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	Depreciation	276		278		Depreciation	96		92
Amortization of intangible assets	Amortization of intangible assets	469		474		Amortization of intangible assets	161		150
Asset impairments	Asset impairments	18		119		Asset impairments	2		—
Share-based compensation	Share-based compensation	140		141		Share-based compensation	74		71
Recall charges		14		98
Recall charges, net						Recall charges, net	—		14
Sale of inventory stepped-up to fair value at acquisition	Sale of inventory stepped-up to fair value at acquisition	12		231		Sale of inventory stepped-up to fair value at acquisition	—		5
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Accounts receivable	Accounts receivable	(186)		(145)		Accounts receivable	365		53
Inventories	Inventories	(754)		(231)		Inventories	(314)		(229)
Accounts payable	Accounts payable	111		134		Accounts payable	(56)		(52)
Accrued expenses and other liabilities	Accrued expenses and other liabilities	5		184		Accrued expenses and other liabilities	(405)		(348)
Recall-related payments	Recall-related payments	(26)		(180)		Recall-related payments	(14)		(9)
Income taxes	Income taxes	(262)		(193)		Income taxes	23		(3)
Other, net	Other, net	9		21		Other, net	(79)		136
Net cash provided by operating activities	Net cash provided by operating activities	$	1,621	$	2,263	Net cash provided by operating activities	$	445	$	203
Investing activities	Investing activities					Investing activities
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(2,563)		(226)		Acquisitions, net of cash acquired	—		(2,563)
Purchases of marketable securities	Purchases of marketable securities	(43)		(38)		Purchases of marketable securities	(28)		(9)
Proceeds from sales of marketable securities	Proceeds from sales of marketable securities	40		43		Proceeds from sales of marketable securities	25		11
Purchases of property, plant and equipment	Purchases of property, plant and equipment	(400)		(319)		Purchases of property, plant and equipment	(130)		(119)
Proceeds from settlement of net investment hedges		197		—

Other investing, net	Other investing, net	7		(5)		Other investing, net	1		(2)
Net cash used in investing activities	Net cash used in investing activities	$	(2,762)	$	(545)	Net cash used in investing activities	$	(132)	$	(2,682)
Financing activities	Financing activities					Financing activities
Proceeds (payments) on short-term borrowings, net	Proceeds (payments) on short-term borrowings, net	(376)		7		Proceeds (payments) on short-term borrowings, net	(2)		(170)
Proceeds from issuance of long-term debt	Proceeds from issuance of long-term debt	1,500		5		Proceeds from issuance of long-term debt	—		1,500
Payments on long-term debt	Payments on long-term debt	(502)		(1,151)		Payments on long-term debt	(100)		—
Payments of dividends	Payments of dividends	(788)		(713)		Payments of dividends	(284)		(262)

Cash paid for taxes from withheld shares	Cash paid for taxes from withheld shares	(89)		(88)		Cash paid for taxes from withheld shares	(94)		(72)
Other financing, net	Other financing, net	(48)		(137)		Other financing, net	(1)		(3)
Net cash provided by (used in) financing activities	Net cash provided by (used in) financing activities	$	(303)	$	(2,077)	Net cash provided by (used in) financing activities	$	(481)	$	993
Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	(80)		(21)		Effect of exchange rate changes on cash and cash equivalents	(5)		—
Change in cash and cash equivalents	Change in cash and cash equivalents	$	(1,524)	$	(380)	Change in cash and cash equivalents	$	(173)	$	(1,486)
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	2,944		2,943		Cash and cash equivalents at beginning of period	1,844		2,944
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$	1,420	$	2,563	Cash and cash equivalents at end of period	$	1,671	$	1,458

See accompanying notes to Consolidated Financial Statements.


Dollar amounts are in millions except per share amounts or as otherwise specified.			4


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - 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 ("Stryker," the "Company," "we," "us" or "our") on ~~September 30, 2022~~March 31, 2023 and the results of operations for the three ~~and nine~~ months ~~2022.~~2023. 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 ~~2021.~~2022. Certain immaterial reclassifications have been made to prior year's segment operating income to conform with current year presentation in our Consolidated Financial Statements.

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 September 2022 the FASB issued ASU 2022-04,~~ ~~Liabilities - Supplier Finance Programs: Disclosure of Supplier Finance Program Obligations,~~ which requires entities that utilize supplier finance programs in connection with the purchase of goods and services to disclose information about the key terms of the programs, a rollforward of the obligations under the programs and where those obligations are presented in the balance sheet. The new disclosure requirements are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating these new expanded disclosure requirements.

~~New Accounting Pronouncements Recently Adopted~~

~~On January 1, 2022 we adopted ASU 2021-08,~~ ~~Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification 606,~~ ~~Revenue from Contracts with Customers. The adoption of this update did not have a material impact on our Consolidated Financial Statements.~~

NOTE 2 - REVENUE RECOGNITION

Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for ~~2021.~~2022.

We disaggregate our net sales by ~~product line~~business 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.

Beginning in the first quarter of 2023, we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $81 and $69 for the three months 2023 and 2022. We have reflected these changes in all historical periods presented.


Net Sales by Business
	Three Months
	2023		2022
MedSurg and Neurotechnology:
Instruments	$	575	$	528
Endoscopy	698		607
Medical	778		664
Neurovascular	284		301
Neuro Cranial	355		323

	$	2,690	$	2,423
Orthopaedics and Spine:
Knees	$	566	$	464
Hips	375		327
Trauma and Extremities	769		685
Spine	284		279
Other	94		97
	$	2,088	$	1,852
Total	$	4,778	$	4,275


Net Sales by Product Line
Net Sales by Geography										Net Sales by Geography
		Three Months				Nine Months					Three Months 2023				Three Months 2022
		2022		2021		2022		2021			United States		International		United States		International
MedSurg and Neurotechnology:	MedSurg and Neurotechnology:									MedSurg and Neurotechnology:
Instruments	Instruments	$	535	$	525	$	1,626	$	1,511	Instruments	$	450	$	125	$	414	$	114
Endoscopy	Endoscopy	590		525		1,728		1,512		Endoscopy	564		134		486		121
Medical	Medical	765		636		2,095		1,898		Medical	612		166		525		139
Neurovascular	Neurovascular	294		295		901		885		Neurovascular	118		166		110		191
Neuro Cranial	Neuro Cranial	332		299		992		890		Neuro Cranial	289		66		264		59
Other		72		69		218		203

		$	2,588	$	2,349	$	7,560	$	6,899		$	2,033	$	657	$	1,799	$	624
Orthopaedics and Spine:	Orthopaedics and Spine:									Orthopaedics and Spine:
Knees	Knees	$	481	$	439	$	1,445	$	1,325	Knees	$	416	$	150	$	345	$	119
Hips	Hips	347		328		1,038		990		Hips	236		139		202		125
Trauma and Extremities	Trauma and Extremities	672		639		2,033		1,953		Trauma and Extremities	554		215		487		198
Spine	Spine	280		282		849		867		Spine	212		72		200		79
Other	Other	111		123		322		373		Other	61		33		72		25
		$	1,891	$	1,811	$	5,687	$	5,508		$	1,479	$	609	$	1,306	$	546
Total	Total	$	4,479	$	4,160	$	13,247	$	12,407	Total	$	3,512	$	1,266	$	3,105	$	1,170

Net Sales by Geography
Three Months 2022 Three Months 2021
United States International United States International
MedSurg and Neurotechnology:
Instruments $ 425 $ 110 $ 415 $ 110
Endoscopy 480 110 418 107
Medical 625 140 496 140
Neurovascular 110 184 113 182
Neuro Cranial 274 58 244 55
Other 71 1 68 1
$ 1,985 $ 603 $ 1,754 $ 595
Orthopaedics and Spine:
Knees $ 365 $ 116 $ 321 $ 118
Hips 225 122 199 129
Trauma and Extremities 494 178 447 192
Spine 206 74 201 81
Other 85 26 97 26
$ 1,375 $ 516 $ 1,265 $ 546
Total $ 3,360 $ 1,119 $ 3,019 $ 1,141
Net Sales by Geography
Nine Months 2022 Nine Months 2021
United States International United States International
MedSurg and Neurotechnology:
Instruments $ 1,290 $ 336 $ 1,171 $ 340
Endoscopy 1,371 357 1,179 333
Medical 1,686 409 1,457 441
Neurovascular 333 568 339 546
Neuro Cranial 819 173 724 166
Other 214 4 200 3
$ 5,713 $ 1,847 $ 5,070 $ 1,829
Orthopaedics and Spine:
Knees $ 1,078 $ 367 $ 964 $ 361
Hips 657 381 606 384
Trauma and Extremities 1,470 563 1,362 591
Spine 615 234 611 256
Other 243 79 290 83
$ 4,063 $ 1,624 $ 3,833 $ 1,675
Total $ 9,776 $ 3,471 $ 8,903 $ 3,504
Contract Assets and Liabilities

On March 31, 2023 and December 31, 2022 contract assets recorded in our Consolidated Balance Sheets were not significant.

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. This occurs primarily when payment is received upfront for certain multi-period extended service contracts. Our contract liabilities of $757 and $741 on March 31, 2023 and December 31, 2022 are classified within accrued expenses and other liabilities and other noncurrent liabilities within our consolidated balance sheets based on the timing of when we expect to complete our performance obligations.

Changes in contract liabilities during the year were as follows:


	March 2023
Beginning contract liabilities	$	741
Revenue recognized from beginning of year contract liabilities	(129)

Net advance consideration received during the period	145
Ending contract liabilities	$	757

NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)


Three Months 2023	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(1)	$	31	$	52	$	(303)	$	(221)
OCI	—		2		3		(99)		(94)
Income taxes	—		(3)		(1)		32		28
Reclassifications to:
Cost of sales	—		—		(13)		—		(13)
Other (income) expense, net	—		(1)		(1)		(8)		(10)
Income taxes	—		—		3		2		5
Net OCI	—		(2)		(9)		(73)		(84)
Ending	$	(1)	$	29	$	43	$	(376)	$	(305)


Dollar amounts are in millions except per share amounts or as otherwise specified.			5


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

~~Contract Assets and Liabilities~~

~~On September 30, 2022 and December 31, 2021 contract assets recorded in our Consolidated Balance Sheets were not significant.~~

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 $661 and $529 on September 30, 2022 and December 31, 2021.


Three Months 2022	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	—	$	(155)	$	40	$	(416)	$	(531)
OCI	(1)		(4)		4		86		85
Income taxes	—		2		(2)		(25)		(25)
Reclassifications to:

Other (income) expense, net	—		2		(1)		(11)		(10)
Income taxes	—		(1)		—		3		2
Net OCI	(1)		(1)		1		53		52
Ending	$	(1)	$	(156)	$	41	$	(363)	$	(479)

~~NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)~~

Three Months 2022 Marketable Securities Pension Plans Hedges Financial Statement Translation Total
Beginning $ (1) $ (148) $ 65 $ (202) $ (286)
OCI — 11 19 304 334
Income taxes — (3) (1) (119) (123)
Reclassifications to:
Cost of sales — — (7) — (7)
Other (income) expense, net — 3 (2) (8) (7)
Income taxes — (1) (1) 2 —
Net OCI $ — $ 10 $ 8 $ 179 $ 197
Ending $ (1) $ (138) $ 73 $ (23) $ (89)

Three Months 2021 Marketable Securities Pension Plans Hedges Financial Statement Translation Total
Beginning $ (3) $ (256) $ 26 $ (710) $ (943)
OCI 4 2 6 71 83
Income taxes — — (2) 47 45
Reclassifications to:
Cost of sales — — 4 — 4
Other (income) expense, net — 4 (2) (8) (6)
Income taxes (1) (1) 1 2 1
Net OCI $ 3 $ 5 $ 7 $ 112 $ 127
Ending $ — $ (251) $ 33 $ (598) $ (816)
Nine Months 2022 Marketable Securities Pension Plans Hedges Financial Statement Translation Total
Beginning $ — $ (155) $ 40 $ (416) $ (531)
OCI (1) 15 55 658 727
Income taxes — (3) (7) (242) (252)
Reclassifications to:
Cost of sales — — (10) — (10)
Other (income) expense, net — 7 (4) (30) (27)
Income taxes — (2) (1) 7 4
Net OCI $ (1) $ 17 $ 33 $ 393 $ 442
Ending $ (1) $ (138) $ 73 $ (23) $ (89)

Nine Months 2021 Marketable Securities Pension Plans Hedges Financial Statement Translation Total
Beginning $ (3) $ (259) $ (10) $ (885) $ (1,157)
OCI 4 1 40 269 314
Income taxes — (2) (13) 37 22
Reclassifications to:
Cost of sales — — 9 — 9
Other (income) expense, net — 12 7 (25) (6)
Income taxes (1) (3) — 6 2
Net OCI $ 3 $ 8 $ 43 $ 287 $ 341
Ending $ — $ (251) $ 33 $ (598) $ (816)

NOTE 4 - 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 ~~2021.~~2022.

Foreign Currency Hedges


September 2022		Cash Flow		Net Investment		Non-Designated		Total
March 2023										March 2023	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	Gross notional amount	$	923	$	1,448	$	3,137	$	5,508	Gross notional amount	$	1,109	$	1,636	$	3,268	$	6,013
Maximum term in years	Maximum term in years							4.1		Maximum term in years							3.6
Fair value:	Fair value:									Fair value:
Other current assets	Other current assets	$	45	$	—	$	140	$	185	Other current assets	$	14	$	—	$	9	$	23
Other noncurrent assets	Other noncurrent assets	3		185		—		188		Other noncurrent assets	1		78		—		79
Other current liabilities	Other current liabilities	(7)		—		(10)		(17)		Other current liabilities	(5)		—		(46)		(51)
Other noncurrent liabilities	Other noncurrent liabilities	(1)		—		—		(1)		Other noncurrent liabilities	—		(25)		—		(25)
Total fair value	Total fair value	$	40	$	185	$	130	$	355	Total fair value	$	10	$	53	$	(37)	$	26


December 2021		Cash Flow		Net Investment		Non-Designated		Total
December 2022										December 2022	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	Gross notional amount	$	973	$	2,266	$	5,512	$	8,751	Gross notional amount	$	1,053	$	1,598	$	3,417	$	6,068
Maximum term in years	Maximum term in years							4.9		Maximum term in years							3.9
Fair value:	Fair value:									Fair value:
Other current assets	Other current assets	$	15	$	39	$	92	$	146	Other current assets	$	20	$	—	$	9	$	29
Other noncurrent assets	Other noncurrent assets	1		65		—		66		Other noncurrent assets	1		89		—		90
Other current liabilities	Other current liabilities	(7)		—		(10)		(17)		Other current liabilities	(6)		—		(79)		(85)

Other noncurrent liabilities										Other noncurrent liabilities	(1)		(16)		—		(17)
Total fair value	Total fair value	$	9	$	104	$	82	$	195	Total fair value	$	14	$	73	$	(70)	$	17

We had €1.5 billion ~~and €2.0 billion on September 30, 2022~~at March 31, 2023 and December 31, ~~2021 of~~2022 in certain ~~foreign~~forward currency ~~forward~~ contracts designated as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. In addition to these derivative financial instruments designated as net investment hedges, we had €4.4 billion ~~on September 30, 2022~~at March 31, 2023 and December 31, ~~2021~~2022 of senior unsecured notes designated 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.

~~In the nine months 2022 we settled certain foreign currency forward contracts designated as net investment hedges resulting in cash proceeds of $197.~~

The ~~amounts in AOCI related to settled net investment hedges will remain in AOCI until the hedged investment is either sold or substantially liquidated.~~

~~On September 30, 2022 the~~ total ~~after tax~~after-tax gain (loss) recognized in ~~AOCI~~OCI related to designated net investment hedges was ~~$603.~~($106) in the three months 2023.


~~Dollar amounts are in millions except per share amounts or as otherwise specified.~~			6


~~STRYKER CORPORATION~~						~~2022 Third Quarter Form 10-Q~~

Net Currency Exchange Rate Gains (Losses)


Derivative	Derivative		Three Months				Nine Months				Derivative		Three Months
instrument:	instrument:	Recorded in:	2022		2021		2022		2021		instrument:	Recorded in:	2023		2022
Cash Flow	Cash Flow	Cost of sales	$	7	$	(4)	$	10	$	(9)	Cash Flow	Cost of sales	$	13	$	—
Net Investment	Net Investment	Other income (expense), net	8		8		30		25		Net Investment	Other income (expense), net	8		11
Non-Designated	Non-Designated	Other income (expense), net	(1)		(5)		2		(6)		Non-Designated	Other income (expense), net	(4)		1
		Total	$	14	$	(1)	$	42	$	10		Total	$	17	$	12

Pretax gains (losses) on derivatives designated as cash flow hedges of ~~$50~~$20 and net investment hedges of $34 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense), net in earnings within 12 months as of ~~September 30, 2022.~~March 31, 2023. 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

Pretax gains of $5 recorded in AOCI related to other interest rate hedges closed in conjunction with debt issuances are expected to be reclassified to other income (expense), net in earnings within 12 months of ~~September 30, 2022.~~March 31, 2023. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

NOTE 5 - 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 ~~2021.~~2022.

~~During~~In the ~~three months~~third quarter 2022 we determined that certain commercial and regulatory milestones related to technology acquired in the purchase of Mobius Imaging and Cardan Robotics were no longer probable of being achieved and recorded a $110 reduction in the fair value of contingent consideration reflected in selling, general and administrative expenses.

There were no significant transfers into or out of any level of the fair value hierarchy in ~~2022.~~2023.


Assets Measured at Fair Value	Assets Measured at Fair Value	September		December		Assets Measured at Fair Value	March		December
		2022		2021			2023		2022
Cash and cash equivalents	Cash and cash equivalents	$	1,420	$	2,944	Cash and cash equivalents	$	1,671	$	1,844
Trading marketable securities	Trading marketable securities	155		193		Trading marketable securities	179		166
Level 1 - Assets	Level 1 - Assets	$	1,575	$	3,137	Level 1 - Assets	$	1,850	$	2,010
Available-for-sale marketable securities:	Available-for-sale marketable securities:					Available-for-sale marketable securities:
Corporate and asset-backed debt securities	Corporate and asset-backed debt securities	$	43	$	48	Corporate and asset-backed debt securities	$	41	$	42
Foreign government debt securities	Foreign government debt securities	1		2		Foreign government debt securities	1		1
United States agency debt securities	United States agency debt securities	2		5		United States agency debt securities	6		3
United States Treasury debt securities		30		19
United States treasury debt securities						United States treasury debt securities	37		36

Certificates of deposit	Certificates of deposit	1		1		Certificates of deposit	1		2
Total available-for-sale marketable securities	Total available-for-sale marketable securities	$	77	$	75	Total available-for-sale marketable securities	$	86	$	84
Foreign currency exchange forward contracts	Foreign currency exchange forward contracts	373		212		Foreign currency exchange forward contracts	102		119

Level 2 - Assets	Level 2 - Assets	$	450	$	287	Level 2 - Assets	$	188	$	203
Total assets measured at fair value	Total assets measured at fair value	$	2,025	$	3,424	Total assets measured at fair value	$	2,038	$	2,213


Dollar amounts are in millions except per share amounts or as otherwise specified.			6


STRYKER CORPORATION						2023 First Quarter Form 10-Q


Liabilities Measured at Fair Value	Liabilities Measured at Fair Value	September		December		Liabilities Measured at Fair Value	March		December
		2022		2021			2023		2022
Deferred compensation arrangements	Deferred compensation arrangements	$	155	$	193	Deferred compensation arrangements	$	179	$	166
Level 1 - Liabilities	Level 1 - Liabilities	$	155	$	193	Level 1 - Liabilities	$	179	$	166
Foreign currency exchange forward contracts	Foreign currency exchange forward contracts	$	18	$	17	Foreign currency exchange forward contracts	$	76	$	102

Level 2 - Liabilities	Level 2 - Liabilities	$	18	$	17	Level 2 - Liabilities	$	76	$	102
Contingent consideration:	Contingent consideration:					Contingent consideration:
Beginning	Beginning	$	306	$	393	Beginning	$	121	$	306
Additions	Additions	1		62		Additions	—		1
Change in estimate		(137)		(1)
Change in estimate and foreign exchange						Change in estimate and foreign exchange	—		(137)
Settlements	Settlements	(47)		(148)		Settlements	(1)		(49)
Ending	Ending	$	123	$	306	Ending	$	120	$	121
Level 3 - Liabilities	Level 3 - Liabilities	$	123	$	306	Level 3 - Liabilities	$	120	$	121
Total liabilities measured at fair value	Total liabilities measured at fair value	$	296	$	516	Total liabilities measured at fair value	$	375	$	389

											Fair Value of Available for Sale Securities by Maturity
		September 2022		December 2021			March 2023		December 2022
Due in one year or less	Due in one year or less	$	50	$	36	Due in one year or less	$	51	$	53
Due after one year through three years	Due after one year through three years	$	27	$	39	Due after one year through three years	$	35	$	31

On ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest on cash and cash equivalents, short-term investments and marketable securities income was ~~$26~~$14 and $15 in the three months 2023 and ~~$61 and $50 in the nine months~~ 2022, ~~and 2021,~~ 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.

NOTE 6 - 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, the most significant of which 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 certain 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 April 2022 the United States District Court for the District of Delaware issued a judgment following a jury verdict in favor of PureWick Corporation (PureWick) for its 2019 complaint seeking patent infringement damages related to our PrimaFit and PrimoFit products. ~~The~~Following a jury trial, the court awarded damages related to this complaint and we recorded charges of $28 in March 2022. Stryker plans to appeal the results of the trial. In June 2022 PureWick filed a motion to ~~seek enhancement~~enhance the damages awarded, which the court denied in March 2023. In 2022

PureWick also filed a separate complaint seeking additional patent infringement damages related to our PrimaFit products.

We are currently investigating whether certain business activities in a foreign country violated provisions of the ~~judgment~~Foreign Corrupt Practices Act (FCPA) and ~~if successful,~~have engaged outside counsel to conduct this investigation. We have been contacted by the ~~judgment could total approximately $100~~United States Securities and ~~include an~~


~~Dollar amounts are in millions except per share amounts or as otherwise specified.~~			7


~~STRYKER CORPORATION~~						~~2022 Third Quarter Form 10-Q~~

~~injunction against future sales. We intend~~Exchange Commission and United States Department of Justice and are cooperating with both agencies. At this time we are unable to ~~appeal~~predict the outcome of ~~this case.~~the investigation or the potential impact, if any, on our financial statements.

Recall Matters

~~In June 2012 we voluntarily recalled~~We have conducted voluntary recalls of certain products, including 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. In September 2020 we entered into a second settlement agreement to compensate eligible United States patients who had revision surgery prior to September 9, 2020. 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. In April 2022 we executed a second 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.

~~With the acquisition of Wright Medical Group N.V. (Wright) in November 2020,~~Additionally, we are responsible for certain product liability claims, primarily related to certain hip products sold by Wright Medical Group N.V. (Wright) prior to its 2014 divestiture of the OrthoRecon business. ~~We will continue to evaluate each claim and the possible loss we may incur.~~

We have incurred, and expect to incur in the future, costs associated with the defense and settlement of ~~these matters. For the nine months 2022 we have recorded charges of $14 primarily~~claims and lawsuits related to ~~Wright hip products and made payments of $26 primarily related to Rejuvenate and ABG II Modular-Neck hip stems.~~our recalls. Based on the information that has been received, we have ~~estimated the remaining range~~recorded reserves of $202, representing our best estimate of probable loss related to recall matters ~~globally to be approximately $375 to $510. We have recorded reserves representing the remaining minimum of the range of probable loss.~~globally. The final outcomes of these matters are dependent on many factors that are difficult to predict. Accordingly the ultimate cost related to these matters 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	Leases	September			December			Leases	March			December
		2022			2021				2023			2022
Right-of-use assets	Right-of-use assets	$	456		$	419		Right-of-use assets	$	489		$	473
Lease liabilities, current	Lease liabilities, current	$	116		$	112		Lease liabilities, current	$	132		$	121
Lease liabilities, non-current	Lease liabilities, non-current	$	349		$	310		Lease liabilities, non-current	$	367		$	357

Other information:	Other information:							Other information:
Weighted-average remaining lease term		5.5 years			5.4 years
Weighted-average remaining lease term (years)								Weighted-average remaining lease term (years)	5.3			5.5
Weighted-average discount rate	Weighted-average discount rate	3.09		%	2.86		%	Weighted-average discount rate	3.40		%	3.22		%

Three Months Nine Months
2022 2021 2022 2021
Operating lease cost $ 37 $ 35 $ 110 $ 102


	Three Months
	2023		2022
Operating lease cost	$	38	$	31

NOTE 7 - ACQUISITIONS

We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. There were no acquisitions in the three months 2023. The aggregate purchase price of our acquisitions, net of cash acquired was $2,563 ~~and $267~~ in the ~~nine~~three months ~~2022 and 2021.~~2022.

In February 2022 we completed the acquisition of Vocera Communications, Inc. (Vocera) for $79.25 per share, or an aggregate purchase price of $2.6 billion, net of cash acquired ($3.0 billion including convertible notes). Vocera is a leader in the digital care coordination and communication category. Vocera is part of our Medical business within MedSurg and Neurotechnology. Goodwill attributable to the acquisition reflects the strategic benefits of expanding our presence in adjacent markets, diversifying our product portfolio, advancing innovations, and accelerating our digital aspirations. This goodwill is not deductible for tax purposes.


Dollar amounts are in millions except per share amounts or as otherwise specified.			7


STRYKER CORPORATION						2023 First Quarter Form 10-Q

In the ~~nine~~three months 2022 note holders elected to redeem the 1.50% and 0.50% convertible notes assumed in the Vocera acquisition for $101 and $324. These repayments are classified as financing activities in the Consolidated Statements of Cash Flows.

Share-based awards for Vocera employees vested upon our acquisition and a charge of $132 was recorded in selling, general and administrative expenses in 2022.

Purchase price allocations for our significant acquisitions are:


Purchase Price Allocation of Acquired Net Assets
2022	Vocera
Tangible assets ~~and liabilities:~~acquired:
Accounts receivable	$	33
Inventory	13
Deferred income tax assets	7391
Other assets	92
Debt	(425)
Deferred income tax liabilities	~~(182)~~(193)

Other liabilities	~~(115)~~(117)
Intangible assets:

Customer and distributor relationships	~~550~~603
Developed technology ~~and patents~~	~~178~~175
Trade name	18


Goodwill	~~2,328~~2,273
Purchase price, net of cash acquired of $281	$	2,563
~~Weighted-average life of intangible assets~~Weighted average amortization period at acquisition (years):
Developed technologies	136
Customer relationships	15
Trademarks	9

~~Purchase~~The purchase price ~~allocations~~allocation for Vocera ~~were based on preliminary valuations, primarily related~~was finalized in the three months 2023 without material adjustments.

On May 2, 2023 we acquired Cerus Endovascular Limited (Cerus) for $300 in cash and up to ~~intangible assets~~$225 in future milestone payments. Cerus designs, develops and ~~deferred income taxes. Our estimates~~manufactures neurovascular products used for the treatment of hemorrhagic stroke. We plan to integrate Cerus into our Neurovascular business within MedSurg and ~~assumptions are subject to change within the measurement period.~~Neurotechnology.


Consolidated Estimated Amortization Expense	Consolidated Estimated Amortization Expense									Consolidated Estimated Amortization Expense
Remainder of 2022		2023		2024		2025		2026
Remainder of 2023										Remainder of 2023	2024		2025		2026		2027
$	159	$	617	$	587	$	567	$	510	463	$	590	$	571	$	514	$	493

NOTE 8 - 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~~Our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on ~~September 30, 2022.~~March 31, 2023.

In February 2022 we entered into a $1.5 billion term loan agreement that matures on February 22, 2025 and bears interest at a base rate based on the Term Secured Overnight Financing Rate (SOFR) plus 0.725%. ~~In the nine months 2022~~Through March 31, 2023 we have repaid ~~$500~~$750 on the term loan.


~~Dollar amounts are in millions except per share amounts or as otherwise specified.~~			8


~~STRYKER CORPORATION~~						~~2022 Third Quarter Form 10-Q~~

In the first quarter of 2022 our Board of Directors approved an increase to the maximum amount of commercial paper that can be outstanding from $1,500 to $2,250.

On ~~September 30, 2022~~March 31, 2023 there were no borrowings outstanding under our revolving credit facility or our commercial paper program which allows for maturities up to 397 days from the date of issuance.

Summary of Total Debt September 2022 December 2021
Rate Due
Senior unsecured notes:
1.125% November 30, 2023 $ 530 $ 622
0.600% December 1, 2023 599 598
3.375% May 15, 2024 595 593
0.250% December 3, 2024 817 958
1.150% June 15, 2025 647 645
3.375% November 1, 2025 748 748
3.500% March 15, 2026 995 994
2.125% November 30, 2027 720 845
3.650% March 7, 2028 597 597
0.750% March 1, 2029 767 901
1.950% June 15, 2030 991 990
2.625% November 30, 2030 619 727
1.000% December 3, 2031 715 840
4.100% April 1, 2043 392 392
4.375% May 15, 2044 395 395
4.625% March 15, 2046 982 982
2.900% June 15, 2050 642 642
Term loan February 22, 2025 1,000 —
Other 8 10
Total debt $ 12,759 $ 12,479
Less current maturities of debt 8 7
Total long-term debt $ 12,751 $ 12,472
September 2022 December 2021
Unamortized debt issuance costs $ 55 $ 62
Borrowing capacity on existing facilities $ 2,162 $ 2,162
Fair value of senior unsecured notes $ 10,401 $ 13,391


Summary of Total Debt			March 2023		December 2022
	Rate	Due
Senior unsecured notes:
	1.125%	November 30, 2023	$	599	$	585
	0.600%	December 1, 2023	599		599
	3.375%	May 15, 2024	597		596
	0.250%	December 3, 2024	925		903
	1.150%	June 15, 2025	647		647
	3.375%	November 1, 2025	748		748
	3.500%	March 15, 2026	996		995
	2.125%	November 30, 2027	814		795
	3.650%	March 7, 2028	597		597
	0.750%	March 1, 2029	868		848
	1.950%	June 15, 2030	991		991
	2.625%	November 30, 2030	701		684
	1.000%	December 3, 2031	809		790
	4.100%	April 1, 2043	392		392
	4.375%	May 15, 2044	395		396
	4.625%	March 15, 2046	983		983
	2.900%	June 15, 2050	642		642
Term loan			750		850

Other			8		7
Total debt			$	13,061	$	13,048
Less current maturities			1,204		1,191
Total long-term debt			$	11,857	$	11,857

			March 2023		December 2022
Unamortized debt issuance costs			$	51	$	52
Borrowing capacity on existing facilities			$	2,160	$	2,162
Fair value of senior unsecured notes			$	11,274	$	10,910

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.

NOTE 9 - INCOME TAXES

Our effective tax rates were ~~0.0%~~12.8% and ~~6.6%~~16.3% in the three months 2023 and ~~nine months~~ 2022. InThe effective tax rates for the three months 2023 and 2022 reflect the continued lower effective income tax ~~expense decreased $162 due to the effective settlement~~rates as a result of the United States federal income tax audit for years 2014 through 2018. In addition, other income (expense), net includes a benefit of $50 related to the release of accrued interest associated with this settlement. The nine months 2022 additionally include the reversal of deferred income tax on undistributed earnings of foreign subsidiaries no longer determined to be indefinitely reinvested. Our effective tax rates of 11.5%our European operations and ~~12.6% in the three and nine months 2021 include~~ certain discrete tax items.

NOTE 10 - SEGMENT INFORMATION

As previously disclosed, effective December 31, 2021 we changed our reportable business segments to (i) MedSurg and Neurotechnology and (ii) Orthopaedics and Spine to align to our new internal reporting structure. We have reflected these changes in all historical periods presented.


		Three Months				Nine Months					Three Months
		2022		2021		2022		2021			2023		2022
MedSurg and Neurotechnology	MedSurg and Neurotechnology	$	2,588	$	2,349	$	7,560	$	6,899	MedSurg and Neurotechnology	$	2,690	$	2,423
Orthopaedics and Spine	Orthopaedics and Spine	1,891		1,811		5,687		5,508		Orthopaedics and Spine	2,088		1,852
Net sales	Net sales	$	4,479	$	4,160	$	13,247	$	12,407	Net sales	$	4,778	$	4,275
MedSurg and Neurotechnology	MedSurg and Neurotechnology	$	626	$	663	$	1,838	$	2,000	MedSurg and Neurotechnology	$	627	$	630
Orthopaedics and Spine	Orthopaedics and Spine	519		500		1,648		1,518		Orthopaedics and Spine	601		503
Segment operating income	Segment operating income	$	1,145	$	1,163	$	3,486	$	3,518	Segment operating income	$	1,228	$	1,133
Items not allocated to segments:	Items not allocated to segments:									Items not allocated to segments:
Corporate and other	Corporate and other	$	(144)	$	(105)	$	(488)	$	(421)	Corporate and other	$	(222)	$	(199)
Acquisition and integration-related costs	Acquisition and integration-related costs	78		(126)		(108)		(495)		Acquisition and integration-related costs	(6)		(149)
Amortization of intangible assets	Amortization of intangible assets	(159)		(144)		(469)		(474)		Amortization of intangible assets	(161)		(150)
Restructuring-related and other charges		(58)		(178)		(229)		(209)
Structural optimization and other special charges										Structural optimization and other special charges	(42)		(109)
Medical device regulations	Medical device regulations	(38)		(27)		(98)		(72)		Medical device regulations	(28)		(28)
Recall-related matters	Recall-related matters	4		(16)		(14)		(98)		Recall-related matters	—		(14)
Regulatory and legal matters	Regulatory and legal matters	(20)		7		(53)		16		Regulatory and legal matters	(34)		(37)

Consolidated operating income	Consolidated operating income	$	808	$	574	$	2,027	$	1,765	Consolidated operating income	$	735	$	447

There were no significant changes to total assets by segment from information provided in our Annual Report on Form 10-K for ~~2021, other than the addition of the assets acquired in the Vocera acquisition which are included in the MedSurg and Neurotechnology segment.~~

~~NOTE 11 - ASSET IMPAIRMENTS~~

The government in China has launched regional and national programs for volume-based procurement ("VBP") of high-value medical consumables to reduce healthcare costs. Each VBP program has specific requirements to award contracts to the lowest bidders who are able to satisfy the quality and quantity requirements. The successful bidders may be guaranteed sales volume for certain products, while unsuccessful bidders may lose unit sales volume. The prices required for a successful bid have negatively impacted our existing commercial operations of joint replacement and trauma products in China.

As a result of the outcome of certain regional programs for our trauma products and the national VBP program for hips and knees we recorded charges of $105 to impair certain long-lived and intangible assets in the third quarter of 2021. These charges were included in selling, general and administrative expenses. The national VBP program for spine products took place in the third quarter of 2022 and we were unsuccessful in our bid. As a result we are exiting the spine business in China. Asset impairments recorded in the three months 2022 were not significant. Our total business in China represented approximately 2.5% of our revenues for the nine months 2022.


Dollar amounts are in millions except per share amounts or as otherwise specified.			98


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q


ITEM 2.			MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ABOUT STRYKER

Stryker is one of the world's leading medical technology companies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in Medical and Surgical, Neurotechnology, Orthopaedics and Spine that help improve patient and ~~hospital~~healthcare outcomes. Alongside its customers around the world, Stryker impacts more than ~~100~~130 million patients annually.

We segregate our operations into two reportable business segments: (i) MedSurg and Neurotechnology and (ii) Orthopaedics and Spine. MedSurg and Neurotechnology products include surgical equipment and navigation systems (Instruments), endoscopic and communications systems (Endoscopy), patient handling, emergency medical equipment and intensive care disposable products (Medical), minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke (Neurovascular), 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 (Neuro Cranial) ~~and other medical device products used in a variety of medical specialties.~~. Orthopaedics and Spine products consist primarily of implants used in hip and knee joint replacements and trauma and extremity surgeries, and cervical, thoracolumbar and interbody systems used in spinal injury, deformity and degenerative therapies.

Macroeconomic Environment

The global economy is experiencing increased inflationary pressures in part due to global supply chain disruptions, labor shortages and other impacts of the ~~COVID-19 pandemic and~~ current macroeconomic environment which we anticipate will continue. Higher interest rates and capital costs, higher shipping costs, increased costs of labor, ~~and weakening~~fluctuating foreign currency exchange rates ~~are creating~~and the military conflict in Russia and Ukraine have created additional economic ~~challenges. We expect these~~challenges and uncertainties. These conditions tomay cause our customers to decrease or delay orders for our products and services, and the higher interest rates tomay impact ~~demand~~deal mix for our capital products.

Our operations ~~have been~~continue to be adversely impacted by ~~the~~ inflationary pressures, ~~primarily related to~~ labor ~~steel~~shortages and ~~transportation costs as well as~~supply chain challenges. Supply chain constraints modestly improved during the ~~impact of purchasing electronic components at premium prices on the spot market. Sales~~quarter, however sales growth in certain products ~~has been~~continues to be constrained by ~~the continuing~~ supply chain challenges and electronic component shortages, especially impacting the capital products in our MedSurg businesses.

~~Russia and Ukraine Conflict~~

The military conflict in Russia and Ukraine and the sanctions imposed by the United States government and other nations in response to this conflict have caused significant volatility and disruptions to the global markets. Given that we provide life-saving and life-enhancing products, we plan to continue operating in Russia provided we can safely do so. During the nine months 2022 net sales in Russia were approximately 0.3% of our revenues. Although Russia does not constitute a material portion of our business, there is uncertainty around the impact it will have on the global economy, supply chains and fuel and energy prices generally, and therefore our business. Refer to Part II, Item 1A. "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 for further details.

China Volume-Based Procurement and Import Purchase Evaluation

The government in China has launched regional and national programs for volume-based procurement ~~("VBP")~~(VBP) of high-value medical consumables to reduce healthcare costs. Each VBP program has specific requirements to award contracts to the lowest bidders who are able to satisfy the quality and quantity requirements. The successful bidders may be guaranteed sales volume for certain products, while unsuccessful bidders may lose unit sales volume. We have been a winning bidder in certain national and regional VBP programs, including those for joint replacement and trauma products in 2021 and certain neurovascular products in the fourth quarter of 2022 and the first quarter of 2023. The prices required for a successful bid have negatively impacted ~~our existing~~the commercial operations of our joint replacement, trauma and ~~trauma~~certain neurovascular products in China. ~~The national~~

We were unsuccessful in our bids in the VBP program for spine products that took place in the third quarter of 2022 and ~~we were unsuccessful in our bid. As~~as a result we are exiting the spine business in China. ~~We expect regional VBP programs to~~To date our other businesses have not been significantly impacted, but may be ~~initiated for neurovascular products~~ in the ~~fourth quarter~~future as a result of ~~2022 and~~ additional VBP ~~programs may be initiated in the future.~~programs. China has also issued national guiding standards for Import Purchase Evaluation which has increased the purchase of locally sourced equipment in China's public hospitals and is impacting our MedSurg business in China. Our business in China represented approximately ~~2.5% of~~1.6% our revenues ~~for~~in the ~~nine~~three months ~~2022.~~2023.

Overview of the Three ~~and Nine~~ Months

In the three months ~~2022~~2023 we achieved sales growth of ~~7.7%~~11.8% from ~~2021.~~2022. Excluding the impact of acquisitions and divestitures sales grew ~~9.9%~~13.6% in constant currency. We reported operating income margin of ~~18.0%~~15.4%, net earnings of ~~$816~~$592 and net earnings per diluted share of ~~$2.14.~~$1.54. Excluding the impact of certain items, adjusted operating income margin(1) contracted by ~~310~~70 basis points to ~~22.3%~~21.1%, with adjusted net earnings(1) of ~~$810~~$820 and adjusted net earnings per diluted share(1) of ~~$2.12, a decrease~~$2.14, an increase of ~~3.6%~~8.6% from ~~2021.~~2022.

Recent Developments

On May 2, 2023 we acquired Cerus Endovascular Limited (Cerus) for $300 in cash and up to $225 in future milestone payments. Cerus designs, develops and manufactures neurovascular products used for the treatment of hemorrhagic stroke. We plan to integrate Cerus into our Neurovascular business within MedSurg and Neurotechnology.

In(1) Refer to "Non-GAAP Financial Measures" for a discussion of non-GAAP financial measures used in this report and a reconciliation to the ~~nine~~most directly comparable GAAP financial measure.


Dollar amounts are in millions except per share amounts or as otherwise specified.			9


STRYKER CORPORATION						2023 First Quarter Form 10-Q


CONSOLIDATED RESULTS OF OPERATIONS
	Three Months
					Percent Net Sales				Percentage
	2023		2022		2023		2022		Change
Net sales	$	4,778	$	4,275	100.0	%	100.0	%	11.8	%
Gross profit	3,016		2,734		63.1		64.0		10.3
Research, development and engineering expenses	339		413		7.1		9.7		(17.9)
Selling, general and administrative expenses	1,781		1,710		37.3		40.0		4.2
Recall charges, net	—		14		—		0.3		nm

Amortization of intangible assets	161		150		3.4		3.5		7.3
Other income (expense), net	(56)		(61)		(1.2)		(1.4)		(8.2)
Income taxes	87		63		nm		nm		38.1
Net earnings	$	592	$	323	12.4	%	7.6	%	83.3	%

Net earnings per diluted share	$	1.54	$	0.84					83.3	%
Adjusted net earnings per diluted share(1)	$	2.14	$	1.97					8.6	%

nm - not meaningful


Geographic and Segment Net Sales	Three Months
					Percentage Change
	2023		2022		As Reported		Constant Currency
Geographic:
United States	$	3,512	$	3,105	13.1	%	13.1	%
International	1,266		1,170		8.2		16.5
Total	$	4,778	$	4,275	11.8	%	14.0	%
Segment:
MedSurg and Neurotechnology	$	2,690	$	2,423	11.0	%	13.1	%
Orthopaedics and Spine	2,088		1,852		12.7		15.1
Total	$	4,778	$	4,275	11.8	%	14.0	%


Supplemental Net Sales Growth Information
	Three Months
					Percentage Change
									United States		International
	2023		2022		As Reported		Constant Currency		As Reported		As Reported		Constant Currency
MedSurg and Neurotechnology:
Instruments	$	575	$	528	8.9	%	10.7	%	8.9	%	8.8	%	17.6	%
Endoscopy	698		607		15.0		16.6		16.2		10.2		18.2
Medical	778		664		17.2		18.8		16.5		19.5		28.1
Neurovascular	284		301		(5.5)		(1.1)		7.3		(13.0)		(6.3)
Neuro Cranial	355		323		9.9		11.4		9.1		13.7		22.7

	$	2,690	$	2,423	11.0	%	13.1	%	13.0	%	5.3	%	13.3	%
Orthopaedics and Spine:
Knees	$	566	$	464	22.0	%	24.2	%	20.6	%	26.2	%	35.5	%
Hips	375		327		14.4		18.1		16.2		11.4		21.6
Trauma and Extremities	769		685		12.4		14.5		13.7		9.0		16.5
Spine	284		279		1.9		3.8		6.3		(9.0)		(2.9)
Other	94		97		(3.4)		(1.0)		(14.8)		28.5		41.5
	$	2,088	$	1,852	12.7	%	15.1	%	13.2	%	11.6	%	20.2	%
Total	$	4,778	$	4,275	11.8	%	14.0	%	13.1	%	8.2	%	16.5	%

Note: Beginning in the first quarter of 2023, we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $81 and $69 for the three months ~~2022 we achieved~~2023 and 2022. We have reflected these changes in all historical periods presented.

Consolidated Net Sales

Consolidated net sales ~~growth of 6.8% from 2021.~~increased 11.8% in the three months 2023 as reported and 14.0% in constant currency, as foreign currency exchange rates negatively impacted net sales by 2.2%. Excluding the 0.4% impact of acquisitions and divestitures, net sales ~~grew 8.3%~~ in constant ~~currency. We reported operating income margin of 15.3%,~~currency increased by 12.9% from increased unit volume and 0.7% due to higher prices. The unit volume

increase was due to higher product shipments across most MedSurg and Neurotechnology businesses and all Orthopaedics and Spine businesses.

MedSurg and Neurotechnology Net Sales

MedSurg and Neurotechnology net ~~earnings of $1,795 and net earnings per diluted share of $4.70. Excluding the impact of certain items, adjusted operating income margin(1)~~ ~~contracted by 240 basis points to 22.6%, with adjusted net earnings(1)~~ ~~of $2,422 and adjusted net earnings per diluted share(1)~~ ~~of $6.34, a decrease of 0.6% from 2021.~~

~~Recent Developments~~

In February 2022 we entered into a $1.5 billion term loan agreement that matures on February 22, 2025 and bears interest at a base rate based on the Term Secured Overnight Financing Rate (SOFR) plus 0.725%. In June and September 2022 we repaid $250 and $250 of this term loan.

In February 2022 we completed the acquisition of Vocera Communications, Inc. (Vocera) for $79.25 per share, or an aggregate purchase price of $2.6 billion, net of cash acquired ($3.0 billion including convertible notes). Vocera is a leadersales increased 11.0% in the ~~digital care coordination~~three months 2023 as reported and ~~communication category. Vocera is part of our Medical business within MedSurg and Neurotechnology. Goodwill attributable to the acquisition reflects the strategic benefits of expanding our presence~~13.1% in ~~adjacent markets, diversifying our product portfolio, advancing innovations, and accelerating our digital aspirations. Refer to Note 7 to our Consolidated Financial Statements for further information.~~constant currency, as foreign currency exchange rates negatively impacted net sales


Dollar amounts are in millions except per share amounts or as otherwise specified.			10


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

~~On August 16, 2022~~by 2.1%. Excluding the ~~Inflation Reduction Act (“IRA”)~~0.7% impact of acquisitions and divestitures, net sales in constant currency increased by 10.5% from increased unit volume and 1.9% from higher prices. The unit volume increase was ~~enacted into law.~~due to higher shipments across most MedSurg and Neurotechnology businesses.

Orthopaedics and Spine Net Sales

Orthopaedics and Spine net sales increased 12.7% in the three months 2023 as reported and 15.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 2.4%. Excluding the (0.1)% impact of acquisitions and divestitures, net sales in constant currency increased 16.0% from increased unit volume partially offset by 0.8% from lower prices. The ~~IRA includes a 15% corporate alternative minimum tax effective~~unit volume increase was due to higher shipments across all Orthopaedics and Spine businesses.

Gross Profit

Gross profit was $3,016 and $2,734 in the three months 2023 and ~~a 1% tax on share repurchases after December 31,~~ 2022. ~~We are currently evaluating the impact~~The key components of the IRA and do not expect the tax-related provisions to have a material impact on our Consolidated Financial Statements. The impact of the excise tax on share repurchases will be dependent on the extent of share repurchases made in future periods.

~~(1)~~ ~~Refer to "Non-GAAP Financial Measures" for a discussion of non-GAAP financial measures used in this report and a reconciliation to the most directly comparable GAAP financial measure.~~

change were:

CONSOLIDATED RESULTS OF OPERATIONS
Three Months Nine Months
Percent Net Sales Percentage Percent Net Sales Percentage
2022 2021 2022 2021 Change 2022 2021 2022 2021 Change
Net sales $ 4,479 $ 4,160 100.0 % 100.0 % 7.7 % $ 13,247 $ 12,407 100.0 % 100.0 % 6.8 %
Gross profit 2,782 2,642 62.1 63.5 5.3 8,342 7,923 63.0 63.9 5.3
Research, development and engineering expenses 364 306 8.1 7.4 19.0 1,128 904 8.5 7.3 24.8
Selling, general and administrative expenses 1,455 1,602 32.5 38.5 (9.2) 4,704 4,682 35.5 37.7 0.5
Recall charges (4) 16 (0.1) 0.4 nm 14 98 0.1 0.8 nm
Amortization of intangible assets 159 144 3.5 3.5 10.4 469 474 3.5 3.8 (1.1)
Other income (expense), net 8 (79) 0.2 (1.9) nm (105) (241) (0.8) (1.9) (56.4)
Income taxes — 57 nm nm (100.0) 127 192 nm nm (33.9)
Net earnings $ 816 $ 438 18.2 % 10.5 % 86.3 % $ 1,795 $ 1,332 13.6 % 10.7 % 34.8 %
Net earnings per diluted share $ 2.14 $ 1.14 87.7 % $ 4.70 $ 3.48 35.1 %
Adjusted net earnings per diluted share(1)
$ 2.12 $ 2.20 (3.6) % $ 6.34 $ 6.38 (0.6) %

~~nm - not meaningful~~

Geographic and Segment Net Sales Three Months Nine Months
Percentage Change Percentage Change
2022 2021 As Reported Constant
Currency 2022 2021 As Reported Constant
Currency
Geographic:
United States $ 3,360 $ 3,019 11.3 % 11.3 % $ 9,776 $ 8,903 9.8 % 9.8 %
International 1,119 1,141 (1.9) 11.7 3,471 3,504 (0.9) 9.1
Total $ 4,479 $ 4,160 7.7 % 11.4 % $ 13,247 $ 12,407 6.8 % 9.6 %
Segment:
MedSurg and Neurotechnology $ 2,588 $ 2,349 10.2 % 13.5 % $ 7,560 $ 6,899 9.6 % 12.1 %
Orthopaedics and Spine 1,891 1,811 4.4 8.7 5,687 5,508 3.2 6.5
Total $ 4,479 $ 4,160 7.7 % 11.4 % $ 13,247 $ 12,407 6.8 % 9.6 %

Supplemental Net Sales Growth Information
Three Months Nine Months
Percentage Change Percentage Change
United States International United States International
2022 2021 As Reported Constant Currency As Reported As Reported Constant Currency 2022 2021 As Reported Constant Currency As Reported As Reported Constant Currency
MedSurg and Neurotechnology:
Instruments $ 535 $ 525 1.8 % 4.8 % 2.3 % — % 14.4 % $ 1,626 $ 1,511 7.6 % 9.9 % 10.1 % (1.0) % 9.4 %
Endoscopy 590 525 12.4 14.9 14.8 3.1 15.6 1,728 1,512 14.3 16.6 16.3 7.2 17.8
Medical 765 636 20.1 22.9 25.8 — 12.7 2,095 1,898 10.4 12.4 15.7 (7.3) 1.2
Neurovascular 294 295 (0.3) 7.6 (2.0) 0.7 13.6 901 885 1.7 7.1 (1.7) 3.8 12.7
Neuro Cranial 332 299 11.3 13.9 12.7 5.0 19.6 992 890 11.5 13.4 13.2 4.2 14.3
Other 72 69 5.9 6.0 5.8 12.9 16.4 218 203 7.8 7.8 7.3 42.1 45.2
$ 2,588 $ 2,349 10.2 % 13.5 % 13.2 % 1.3 % 14.4 % $ 7,560 $ 6,899 9.6 % 12.1 % 12.7 % 1.0 % 10.4 %
Orthopaedics and Spine:
Knees $ 481 $ 439 9.6 % 13.4 % 13.7 % (1.7) % 12.3 % $ 1,445 $ 1,325 9.1 % 12.1 % 11.8 % 1.6 % 12.8 %
Hips 347 328 5.6 11.3 12.4 (5.0) 9.6 1,038 990 4.8 9.2 8.3 (0.7) 10.5
Trauma and Extremities 672 639 5.1 9.5 10.4 (7.1) 7.3 2,033 1,953 4.1 7.2 7.9 (4.8) 5.6
Spine 280 282 (1.0) 2.6 2.0 (8.7) 3.9 849 867 (2.1) 0.6 0.6 (8.5) 0.7
Other 111 123 (9.2) (5.6) (11.2) (1.7) 15.5 322 373 (13.4) (10.6) (16.0) (4.3) 9.0
$ 1,891 $ 1,811 4.4 % 8.7 % 8.6 % (5.4) % 8.8 % $ 5,687 $ 5,508 3.2 % 6.5 % 6.0 % (3.0) % 7.7 %
Total $ 4,479 $ 4,160 7.7 % 11.4 % 11.3 % (1.9) % 11.7 % $ 13,247 $ 12,407 6.8 % 9.6 % 9.8 % (0.9) % 9.1 %


	Gross Profit Percent Net Sales
Three Months 2022	64.0	%
Sales pricing	30 bps
Volume and mix	100 bps
Manufacturing and supply chain costs	(230) bps
Inventory stepped up to fair value	10 bps


Three Months 2023	63.1	%

Gross profit as a percentage of net sales in the three months 2023 decreased to 63.1% from 64.0% in 2022 due to higher manufacturing and supply chain costs primarily due to higher raw material costs partially offset by higher prices and favorable volume and mix. While mix was not a significant driver of the change in gross profit as a percent of net sales between the three months 2023 and 2022, we generally expect segment mix to have an unfavorable impact for the foreseeable future as we anticipate more rapid sales growth in our lower gross margin MedSurg and Neurotechnology segment than our Orthopaedics and Spine segment.

Research, Development and Engineering Expenses

Research, development and engineering expenses decreased $74 or 17.9% in the three months 2023 and decreased as a percentage of net sales to 7.1% from 9.7% in 2022, primarily due to higher spend in the three months 2022 due to increased costs for product launches and the write-off of certain intangible assets.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased $71 or 4.2% in the three months 2023 and decreased as a percentage of net sales to 37.3% from 40.0% in 2022. Expenses in the three months 2022 included a charge of $132 for share-based awards for Vocera employees that vested upon our acquisition. In addition to the impact of this charge, the change in selling, general and administrative expenses as a percentage of net sales in the three months 2023 was affected by the moderating of cost controls previously implemented as well as sales force expansion.

Recall Charges, Net

There were no recall charges, net in the three months 2023. Charges of $14 in the three months 2022 were primarily related to the previously disclosed Wright hip products. Refer to Note 6 to our Consolidated Financial Statements for further information.

Amortization of Intangible Assets

Amortization of intangible assets was $161 and $150 in the three months 2023 and 2022. Refer to Note 7 to our Consolidated Financial Statements for further information.

Operating Income

Operating income was $735 and $447 in the three months 2023 and 2022. Operating income as a percentage of net sales in the three months 2023 increased to 15.4% from 10.5% in 2022. Refer to the sections above for discussion of the primary drivers of the change.

MedSurg and Neurotechnology operating income as a percentage of net sales decreased to 23.3% in the three months 2023 from 26.0% in 2022. Orthopaedics and Spine operating income as a percentage of net sales increase to 28.8% in the three months 2023 from 27.2% in 2022. The key components of the change were:


	Operating Income Percent Net Sales
	MedSurg and Neurotechnology		Orthopaedics and Spine
Three Months 2022	26.0	%	27.2	%
Sales pricing	140 bps		(60) bps
Volume	410 bps		700 bps
Manufacturing and supply chain costs	(400) bps		(20) bps
Research, development and engineering expenses	(30) bps		20 bps
Selling, general and administrative expenses	(390) bps		(480) bps
Three Months 2023	23.3	%	28.8	%

The decrease in MedSurg and Neurotechnology operating income as a percentage of net sales was primarily impacted by higher manufacturing and supply chain costs due to the effects of inflation on the costs of raw materials and higher selling, general and administrative expenses due to moderating of cost controls previously implemented as well as sales force expansion, partially offset by higher sales prices and unit volumes.

The increase in Orthopaedics and Spine operating income as a percentage of net sales was primarily due to higher unit volumes, partially offset by higher selling, general and administrative expenses due to moderating of cost controls previously implemented as well as sales force expansion.

Other Income (Expense), Net

Other income (expense), net was ($56) and ($61) in the three months 2023 and 2022.

Income Taxes

Our effective tax rates were 12.8% and 16.3% in the three months 2023 and 2022. The effective tax rates for the three months 2023 and 2022 reflect the continued lower effective income tax rates as a result of our European operations and certain discrete tax items.

Net Earnings

Net earnings increased to $592 or $1.54 per diluted share in the three months 2023 from $323 or $0.84 per diluted share in 2022. Adjusted net earnings per diluted share(1) was $2.14 in 2023, an increase of 8.6% from 2022.


Dollar amounts are in millions except per share amounts or as otherwise specified.			11


STRYKER CORPORATION						~~2022 Third Quarter Form 10-Q~~

~~Consolidated Net Sales~~

Consolidated net sales increased 7.7% in the three months 2022 as reported and 11.4% in constant currency, as foreign currency exchange rates negatively impacted net sales by 3.7%. Excluding the 1.5% impact of acquisitions and divestitures, net sales in constant currency increased by 10.6% from increased unit volume partially offset by 0.7% due to lower prices. The unit volume increase was due to higher shipments across all MedSurg and Neurotechnology products and most Orthopaedics and Spine products.

Consolidated net sales increased 6.8% in the nine months 2022 as reported and 9.6% in constant currency, as foreign currency exchange rates negatively impacted net sales by 2.8%. Excluding the 1.3% impact of acquisitions and divestitures, net sales in constant currency increased by 9.4% from increased unit volume partially offset by 1.1% due to lower prices. The unit volume increase was due to higher shipments across all MedSurg and Neurotechnology products and most Orthopaedics and Spine products.

~~MedSurg and Neurotechnology Net Sales~~

MedSurg and Neurotechnology net sales increased 10.2% in the three months 2022 as reported and 13.5% in constant currency, as foreign currency exchange rates negatively impacted net sales by 3.3%. Excluding the 2.7% impact of acquisitions and divestitures, net sales in constant currency increased by 9.8% from increased unit volume and 1.0% from higher prices. The unit volume increase was due to higher shipments across all MedSurg and Neurotechnology products.

MedSurg and Neurotechnology net sales increased 9.6% in the nine months 2022 as reported and 12.1% in constant currency, as foreign currency exchange rates negatively impacted net sales by 2.5%. Excluding the 2.3% impact of acquisitions and divestitures, net sales in constant currency increased by 9.5% from increased unit volume and 0.3% from higher prices. The unit volume increase was due to higher shipments across all MedSurg products.

~~Orthopaedics and Spine Net Sales~~

Orthopaedics and Spine net sales increased 4.4% in the three months 2022 as reported and 8.7% in constant currency, as foreign currency exchange rates negatively impacted net sales by 4.3%. Net sales in constant currency increased 11.6% from increased unit volume partially offset by 2.9% from lower prices. The unit volume increase was due to higher shipments across most Orthopaedics and Spine products.

Orthopaedics and Spine net sales increased 3.2% in the nine months 2022 as reported and 6.5% in constant currency, as foreign currency exchange rates negatively impacted net sales by 3.3%. Net sales in constant currency increased 9.3% from increased unit volume partially offset by 2.8% from lower prices. The unit volume increase was due to higher shipments across most Orthopaedics and Spine products.

~~Gross Profit~~

Gross profit as a percentage of sales in the three months 2022 decreased to 62.1% from 63.5% in 2021. Excluding the impact of the items noted below, gross profit decreased to 62.6% of sales in the three months 2022 from 66.3% in 2021 due to increased costs from purchases of electronic components at premium prices on the spot market and other inflationary pressures, primarily related to labor, steel and transportation, as well as inefficiencies from supply chain disruptions.

Gross profit as a percentage of sales in the nine months 2022 decreased to 63.0% from 63.9% in 2021. Excluding the impact of the items noted below, gross profit decreased to 63.3% of sales in the nine months 2022 from 65.9% in 2021 primarily due to increased costs from purchases of electronic components at premium prices on the spot market and other inflationary pressures, primarily related to labor, steel and transportation, as well as inefficiencies from supply chain disruptions.

Percent Net Sales
Three Months 2022 2021 2022 2021
Reported $ 2,782 $ 2,642 62.1 % 63.5 %
Inventory stepped-up to fair value — 94 — 2.3
Restructuring-related and other charges 19 20 0.5 0.5
Medical device regulations 1 1 — —
Adjusted $ 2,802 $ 2,757 62.6 % 66.3 %
Percent Net Sales
Nine Months 2022 2021 2022 2021
Reported $ 8,342 $ 7,923 63.0 % 63.9 %
Inventory stepped-up to fair value 12 231 0.1 1.9
Restructuring-related and other charges 29 20 0.2 0.1
Medical device regulations 3 2 — —
Adjusted $ 8,386 $ 8,176 63.3 % 65.9 %

~~Research, Development and Engineering Expenses~~

Research, development and engineering expenses increased $58 or 19.0% in the three months 2022 and increased as a percentage of sales to 8.1% from 7.4% in 2021. Excluding the impact of the items noted below, expenses increased to 7.1% of sales in 2022 from 6.7% in 2021.

Research, development and engineering expenses increased $224 or 24.8% in the nine months 2022 and increased as a percentage of sales to 8.5% from 7.3% in 2021. Excluding the impact of the items noted below, expenses increased to 7.1% of sales in 2022 from 6.7% in 2021.

~~The increases for the three and nine months reflect our continued investment in innovation, integration of recent acquisitions and for the nine months the write-off of certain intangible assets.~~

Percent Net Sales
Three Months 2022 2021 2022 2021
Reported $ 364 $ 306 8.1 % 7.4 %
Restructuring-related and other charges (8) — (0.2) —
Medical device regulations (39) (26) (0.8) (0.7)
Adjusted $ 317 $ 280 7.1 % 6.7 %
Percent Net Sales
Nine Months 2022 2021 2022 2021
Reported $ 1,128 $ 904 8.5 % 7.3 %
Restructuring-related and other charges (87) — (0.7) —
Medical device regulations (95) (70) (0.7) (0.6)
Adjusted $ 946 $ 834 7.1 % 6.7 %

~~Selling, General and Administrative Expenses~~

Selling, general and administrative expenses decreased $147 or 9.2% in the three months 2022 and decreased as a percentage of sales to 32.5% from 38.5% in 2021. During the three months 2022 we determined that certain commercial and regulatory milestones related to technology acquired in the purchase of Mobius Imaging and Cardan Robotics were no longer probable of being achieved and recorded $110 to reduce the fair value of contingent consideration as well as $8 in research, development and engineering expenses to write off the related in-process research and development intangible asset. Excluding the impact of the items noted below, expenses decreased to 33.1% of sales in 2022 from 34.1% in 2021.


~~Dollar amounts are in millions except per share amounts or as otherwise specified.~~			12


~~STRYKER CORPORATION~~						~~2022 Third Quarter Form 10-Q~~

Selling, general and administrative expenses increased $22 or 0.5% in the nine months 2022 and decreased as a percentage of sales to 35.5% from 37.7%. Share-based awards for Vocera employees vested upon our acquisition in 2022 and a charge of $132 was recorded. Excluding the impact of the items noted below, expenses decreased to 33.5% of sales in 2022 from 34.2% in 2021.

~~The decreases as a percentage of sales for the three and nine months were due to fixed cost leverage and continued cost discipline.~~

Percent Net Sales
Three Months 2022 2021 2022 2021
Reported $ 1,455 $ 1,602 32.5 % 38.5 %
Other acquisition and integration-related 78 (32) 1.7 (0.8)
Restructuring-related and other charges (31) (158) (0.7) (3.8)
Medical device regulations 2 — — —
Regulatory and legal matters (20) 7 (0.4) 0.2
Adjusted $ 1,484 $ 1,419 33.1 % 34.1 %

Percent Net Sales
Nine Months 2022 2021 2022 2021
Reported $ 4,704 $ 4,682 35.5 % 37.7 %
Other acquisition and integration-related (96) (264) (0.7) (2.1)
Restructuring-related and other charges (113) (189) (0.9) (1.5)
Regulatory and legal matters (53) 16 (0.4) 0.1
Adjusted $ 4,442 $ 4,245 33.5 % 34.2 %

~~Recall Charges~~

Recall charges were minimal in the three and nine months 2022 and the three months 2021. Charges of $98 in the nine months 2021 were primarily related to Rejuvenate and ABG II Modular-Neck hip stems. Refer to Note 6 to our Consolidated Financial Statements for further information.

~~Amortization of Intangible Assets~~

Amortization of intangible assets was $159 and $144 in the three months and $469 and $474 in the nine months 2022 and 2021. Refer to Note 7 to our Consolidated Financial Statements for further information.

~~Operating Income~~

Operating income increased $234 to 18.0% of sales in the three months 2022 from 13.8% of sales in 2021. Excluding the impact of the items noted below, operating income decreased to 22.3% of sales in 2022 from 25.4% in 2021 primarily due to higher costs from inflationary pressures, slightly lower selling price, unfavorable foreign currency and our continued investments in innovation, partially offset by leverage from higher sales volumes and cost discipline.

Operating income increased $262 or 14.8% to 15.3% of sales in the nine months 2022 from 14.2% of sales in 2021. Excluding the impact of the items noted below, operating income decreased to 22.6% of sales in 2022 from 25.0% in 2021 primarily due to higher costs from inflationary pressures, slightly lower selling price, unfavorable foreign currency and our continued investments in innovation, partially offset by leverage from higher sales and cost discipline.

Percent Net Sales
Three Months 2022 2021 2022 2021
Reported $ 808 $ 574 18.0 % 13.8 %
Inventory stepped-up to fair value — 94 — 2.3
Other acquisition and integration-related (78) 32 (1.7) 0.8
Amortization of purchased intangible assets 159 144 3.5 3.5
Restructuring-related and other charges 58 178 1.4 4.2
Medical device regulations 38 27 0.8 0.6
Recall-related matters (4) 16 (0.1) 0.4
Regulatory and legal matters 20 (7) 0.4 (0.2)
Adjusted $ 1,001 $ 1,058 22.3 % 25.4 %

Percent Net Sales
Nine Months 2022 2021 2022 2021
Reported $ 2,027 $ 1,765 15.3 % 14.2 %
Inventory stepped-up to fair value 12 231 0.1 1.9
Other acquisition and integration-related 96 264 0.7 2.1
Amortization of purchased intangible assets 469 474 3.5 3.8
Restructuring-related and other charges 229 209 1.8 1.7
Medical device regulations 98 72 0.7 0.6
Recall-related matters 14 98 0.1 0.8
Regulatory and legal matters 53 (16) 0.4 (0.1)
Adjusted $ 2,998 $ 3,097 22.6 % 25.0 %

~~Other Income (Expense), Net~~

Other income (expense), net was $8 and ($79) in the three months and ($105) and ($241) in the nine months 2022 and 2021. The decrease in net expense in 2022 was primarily due to favorable investment returns and the reversal of accrued interest related to the effective settlement of the United States federal income tax audit for years 2014 through 2018. Refer to Note 9 to our Consolidated Financial Statements for further information.

~~Income Taxes~~

Our effective tax rates were 0.0% and 6.6% in the three and nine months 2022. In the three months 2022 income tax expense decreased $162 due to the effective settlement of the United States federal income tax audit for years 2014 through 2018. In addition, other income (expense), net includes a benefit of $50 related to the release of accrued interest associated with this settlement. The nine months 2022 additionally include the reversal of deferred income tax on undistributed earnings of foreign subsidiaries no longer determined to be indefinitely reinvested. Our effective tax rates of 11.5% and 12.6% in the three and nine months 2021 include certain discrete tax items.

~~Net Earnings~~

~~Net earnings increased to $816 or $2.14 per diluted share in the three months 2022 from $438 or $1.14 per diluted share in 2021. Adjusted net earnings per diluted share(1)~~ ~~was $2.12 in 2022, a decrease of 3.6% from 2021.~~

~~Net earnings increased to $1,795 or $4.70 per diluted share in the nine months 2022 from $1,332 or $3.48 per diluted share in 2021. Adjusted net earnings per diluted share(1)~~ ~~decreased 0.6% to $6.34 in 2022 from $6.38 in 2021.~~

Percent Net Sales
Three Months 2022 2021 2022 2021
Reported $ 816 $ 438 18.2 % 10.5 %
Inventory stepped-up to fair value — 73 — 1.8
Other acquisition and integration-related (82) 24 (1.8) 0.6
Amortization of purchased intangible assets 132 114 2.9 2.7
Restructuring-related and other charges 50 165 1.1 3.9
Medical device regulations 32 23 0.7 0.6
Recall-related matters (4) 12 (0.1) 0.3
Regulatory and legal matters 15 (7) 0.3 (0.2)
Tax matters (149) — (3.2) —
Adjusted $ 810 $ 842 18.1 % 20.2 %
Percent Net Sales
Nine Months 2022 2021 2022 2021
Reported $ 1,795 $ 1,332 13.6 % 10.7 %
Inventory stepped-up to fair value 9 176 0.1 1.4
Other acquisition and integration-related 46 204 0.3 1.6
Amortization of purchased intangible assets 371 378 2.8 3.1
Restructuring-related and other charges 190 198 1.4 1.7
Medical device regulations 82 60 0.6 0.5
Recall-related matters 10 85 0.1 0.7
Regulatory and legal matters 39 (19) 0.3 (0.2)
Tax matters (120) 26 (0.9) 0.2
Adjusted $ 2,422 $ 2,440 18.3 % 19.7 %


~~Dollar amounts are in millions except per share amounts or as otherwise specified.~~			13


~~STRYKER CORPORATION~~						~~2022 Third~~2023 First Quarter Form 10-Q

Non-GAAP Financial Measures

We supplement the reporting of our financial information determined under accounting principles generally accepted in the United States (GAAP) with certain non-GAAP financial measures, including percentage sales growth in constant currency; percentage organic sales growth; adjusted gross profit; adjusted selling, general and administrative expenses; adjusted research, development and engineering expenses; adjusted operating income; adjusted other income (expense), net; adjusted income taxes; adjusted effective income tax rate; adjusted net earnings; and adjusted net earnings per diluted share (Diluted EPS)~~; free cash flow; and free cash flow conversion.~~. We believe these non-GAAP financial measures provide meaningful information to assist investors and shareholders in understanding our financial results and assessing our prospects for future performance. Management believes percentage sales growth in constant currency and the other adjusted measures described above are important indicators of our operations because they exclude items that may not be indicative of or are unrelated to our core operating results and provide a baseline for analyzing trends in our underlying businesses. Management uses these non-GAAP financial measures for reviewing the operating results of reportable business segments and analyzing potential future business trends in connection with our budget process and bases certain management incentive compensation on these non-GAAP financial measures. To measure percentage sales growth in constant currency, we remove the impact of changes in foreign currency exchange rates that affect the comparability and trend of sales. Percentage sales growth in constant currency is calculated by translating current and prior year results at the same foreign currency exchange rate. To measure percentage organic sales growth, we remove the impact of changes in foreign currency exchange rates, acquisitions and divestitures, which affect the comparability and trend of sales. Percentage organic sales growth is calculated by translating current year and prior year results at the same foreign currency exchange rates excluding the impact of acquisitions and divestitures. To measure earnings performance on a consistent and comparable basis, we exclude certain items that affect the comparability of operating results and the trend of earnings. ~~To measure free cash flow, we adjust cash provided by operating activities by~~The income tax effect of each adjustment was determined based on the ~~amount~~tax effect of ~~purchases of property, plant and equipment and proceeds from long-lived asset disposals and remove~~ the ~~impact of certain legal settlements and recall payments. To measure free cash flow conversion we divide free cash flow by adjusted net earnings.~~jurisdiction in which the related pre-tax adjustment was recorded. These adjustments are irregular in timing and may not be indicative of our past and future performance. The following are examples of the types of adjustments that may be included in a period:

1.Acquisition and integration-related costs. Costs related to integrating recently acquired businesses (e.g., costs associated with the termination of sales relationships, employee retention and workforce reductions, manufacturing integration costs and other integration-related activities), changes in the fair value of contingent consideration, amortization of inventory stepped-up to fair value and specific costs (e.g., ~~inventory step-up and~~ deal costs) related to the consummation of the acquisition ~~process.~~process and legal entity rationalization.

2.Amortization of purchased intangible assets. Periodic amortization expense related to purchased intangible assets.

3.~~Restructuring-related~~Structural optimization and other ~~charges~~special charges.. Costs associated with ~~the termination of sales relationships in certain countries,~~employee retention and workforce reductions, ~~elimination~~the closure or transfer of manufacturing and other facilities (e.g., site closure costs, contract termination costs and redundant employee costs during the work transfers), product ~~lines,~~line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs), certain long-lived and intangible asset write-offs and

impairments and ~~associated costs and~~ other ~~restructuring-related activities.~~charges.

4.Medical device regulations. Costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the new medical device reporting regulations and other requirements of the European Union.

5.Recall-related matters. ~~Our~~Changes in our best estimate of the minimum of the range of probable loss to resolve the Rejuvenate, LFIT V40, Wright legacy hip products and other product recalls.

6.Regulatory and legal matters. ~~Our~~Changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and ~~other legal~~the amount of favorable awards from settlements.

7.Tax matters. ~~Charges represent the impact~~Impact of accounting for certain significant and discrete tax items.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, selling, general and administrative expenses, research, development and engineering expenses, operating income, other income (expense), net, income taxes, effective income tax rate, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of our operations when viewed with our GAAP results and the reconciliations to corresponding GAAP financial measures at the end of the discussion of Consolidated Results of Operations below. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

The weighted-average diluted shares outstanding used in the calculation of non-GAAP net earnings per diluted share are the same as those used in the calculation of reported net earnings per diluted share for the respective period.


Dollar amounts are in millions except per share amounts or as otherwise specified.			1412


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q


Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures	Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures																							Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measures
Three Months 2022		Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Net Earnings			Effective Tax Rate		Diluted EPS
Three Months 2023																								Three Months 2023	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	Reported	$	2,782		$	1,455		$	364		$	808		$	8		$	816		—	%	$	2.14	Reported	$	3,016		$	1,781		$	339		$	735		$	(56)		$	87	$	592		12.8	%	$	1.54
Reported percent net sales	Reported percent net sales	62.1		%	32.5		%	8.1		%	18.0		%	0.2		%	18.2		%					Reported percent net sales	63.1		%	37.3		%	7.1		%	15.4		%	(1.2)		%	nm		12.4		%
Acquisition and integration-related costs:	Acquisition and integration-related costs:																							Acquisition and integration-related costs:
Inventory stepped-up to fair value	Inventory stepped-up to fair value	—			—			—			—			—			—			—		—		Inventory stepped-up to fair value	—			—			—			—			—			—		—			—		—
Other acquisition and integration-related		—			78			—			(78)			—			(82)			2.0		(0.21)
Other acquisition and integration-related (a)																								Other acquisition and integration-related (a)	—			(6)			—			6			—			1		5			0.1		0.01
Amortization of purchased intangible assets	Amortization of purchased intangible assets	—			—			—			159			—			132			0.5		0.34		Amortization of purchased intangible assets	—			—			—			161			—			34		127			2.0		0.33
Restructuring-related and other charges		19			(31)			(8)			58			—			50			—		0.13
Medical device regulations		1			2			(39)			38			—			32			0.1		0.08
Recall-related matters		—			—			—			(4)			—			(4)			—		(0.01)
Regulatory and legal matters		—			(20)			—			20			—			15			0.2		0.04
Tax matters		—			—			—			—			(62)			(149)			11.7		(0.39)
Structural optimization and other special charges (b)																								Structural optimization and other special charges (b)	2			(40)			—			42			—			8		34			0.3		0.09
Medical device regulations (c)																								Medical device regulations (c)	—			—			(28)			28			—			5		23			0.2		0.06
Recall-related matters (d)																								Recall-related matters (d)	—			—			—			—			—			—		—			—		—
Regulatory and legal matters (e)																								Regulatory and legal matters (e)	—			(34)			—			34			—			6		28			0.3		0.07
Tax matters (f)																								Tax matters (f)	—			—			—			—			(9)			(20)		11			(2.9)		0.04
Adjusted	Adjusted	$	2,802		$	1,484		$	317		$	1,001		$	(54)		$	810		14.5	%	$	2.12	Adjusted	$	3,018		$	1,701		$	311		$	1,006		$	(65)		$	121	$	820		12.8	%	$	2.14
Adjusted percent net sales	Adjusted percent net sales	62.6		%	33.1		%	7.1		%	22.3		%	(1.2)		%	18.1		%					Adjusted percent net sales	63.2		%	35.6		%	6.5		%	21.1		%	(1.4)		%	nm		17.2		%

Three Months 2021 Gross Profit Selling, General & Administrative Expenses Research, Development & Engineering Expenses Operating Income Other Income (Expense), Net Net Earnings Effective
Tax Rate Diluted EPS
Reported $ 2,642 $ 1,602 $ 306 $ 574 $ (79) $ 438 11.5 % $ 1.14
Reported percent net sales 63.5 % 38.5 % 7.4 % 13.8 % (1.9) % 10.5 %
Acquisition and integration-related costs:
Inventory stepped-up to fair value 94 — — 94 — 73 1.9 0.19
Other acquisition and integration-related — (32) — 32 — 24 0.8 0.06
Amortization of purchased intangible assets — — — 144 — 114 2.0 0.30
Restructuring-related and other charges 20 (158) — 178 — 165 (2.6) 0.44
Medical device regulations 1 — (26) 27 — 23 (0.1) 0.06
Recall-related matters — — — 16 — 12 0.3 0.03
Regulatory and legal matters — 7 — (7) — (7) 0.2 (0.02)
Tax matters — — — — — — — —
Adjusted $ 2,757 $ 1,419 $ 280 $ 1,058 $ (79) $ 842 14.0 % $ 2.20
Adjusted percent net sales 66.3 % 34.1 % 6.7 % 25.4 % (1.9) % 20.2 %
Nine Months 2022 Gross Profit Selling, General & Administrative Expenses Research, Development & Engineering Expenses Operating Income Other Income (Expense), Net Net Earnings Effective
Tax Rate Diluted EPS
Reported $ 8,342 $ 4,704 $ 1,128 $ 2,027 $ (105) $ 1,795 6.6 % $ 4.70
Reported percent net sales 63.0 % 35.5 % 8.5 % 15.3 % (0.8) % 13.6 %
Acquisition and integration-related costs:
Inventory stepped-up to fair value 12 — — 12 — 9 — 0.02
Other acquisition and integration-related — (96) — 96 — 46 1.9 0.12
Amortization of purchased intangible assets — — — 469 — 371 1.7 0.97
Restructuring-related and other charges 29 (113) (87) 229 — 190 0.4 0.50
Medical device regulations 3 — (95) 98 — 82 0.1 0.21
Recall-related matters — — — 14 — 10 0.1 0.03
Regulatory and legal matters — (53) — 53 — 39 0.3 0.10
Tax matters — — — — (74) (120) 3.0 (0.31)
Adjusted $ 8,386 $ 4,442 $ 946 $ 2,998 $ (179) $ 2,422 14.1 % $ 6.34
Adjusted percent net sales 63.3 % 33.5 % 7.1 % 22.6 % (1.4) % 18.3 %
Nine Months 2021 Gross Profit Selling, General & Administrative Expenses Research, Development & Engineering Expenses Operating Income Other Income (Expense), Net Net Earnings Effective
Tax Rate Diluted EPS
Reported $ 7,923 $ 4,682 $ 904 $ 1,765 $ (241) $ 1,332 12.6 % $ 3.48
Reported percent net sales 63.9 % 37.7 % 7.3 % 14.2 % (1.9) % 10.7 %
Acquisition and integration-related costs:
Inventory stepped-up to fair value 231 — — 231 — 176 1.4 0.46
Other acquisition and integration-related — (264) — 264 — 204 1.4 0.53
Amortization of purchased intangible assets — — — 474 — 378 1.7 0.99
Restructuring-related and other charges 20 (189) — 209 11 198 (0.7) 0.52
Medical device regulations 2 — (70) 72 — 60 0.1 0.16
Recall-related matters — — — 98 — 85 (0.1) 0.22
Regulatory and legal matters — 16 — (16) (3) (19) 0.2 (0.05)
Tax matters — — — — — 26 (1.8) 0.07
Adjusted $ 8,176 $ 4,245 $ 834 $ 3,097 $ (233) $ 2,440 14.8 % $ 6.38
Adjusted percent net sales 65.9 % 34.2 % 6.7 % 25.0 % (1.9) % 19.7 %


Three Months 2022	Gross Profit			Selling, General & Administrative Expenses			Research, Development & Engineering Expenses			Operating Income			Other Income (Expense), Net			Income Taxes		Net Earnings			Effective Tax Rate		Diluted EPS
Reported	$	2,734		$	1,710		$	413		$	447		$	(61)		$	63	$	323		16.3	%	$	0.84
Reported percent net sales	64.0		%	40.0		%	9.7		%	10.5		%	(1.4)		%	nm		7.6		%
Acquisition and integration-related costs:
Inventory stepped-up to fair value	5			—			—			5			—			1		4			0.1		0.01
Other acquisition and integration-related (a)	—			(144)			—			144			—			39		105			4.9		0.27
Amortization of purchased intangible assets	—			—			—			150			—			35		115			3.6		0.30
Structural optimization and other special charges (b)	2			(28)			(79)			109			—			25		84			2.5		0.22
Medical device regulations (c)	—			—			(28)			28			—			4		24			0.2		0.06
Recall-related matters (d)	—			—			—			14			—			3		11			0.4		0.04
Regulatory and legal matters (e)	—			(37)			—			37			—			9		28			1.0		0.08
Tax matters (f)	—			—			—			—			—			(58)		58			(15.1)		0.15
Adjusted	$	2,741		$	1,501		$	306		$	934		$	(61)		$	121	$	752		13.9	%	$	1.97
Adjusted percent net sales	64.1		%	35.1		%	7.2		%	21.8		%	(1.4)		%	nm		17.6		%


(a)			Charges represent certain acquisition and integration-related costs associated with acquisitions, including charges for termination of sales relationships ($0 in 2023, $8 in 2022), employee retention and workforce reductions ($0 in 2023, $4 in 2022), changes in the fair value of contingent consideration (($1) in 2023, ($16) in 2022), manufacturing integration costs ($2 in 2023, $9 in 2022), stock compensation payments upon a change in control ($0 in 2023, $132 in 2022) and other integration-related activities such as deal costs and costs associated with legal entity rationalization ($5 in 2023, $7 in 2022).
(b)			Charges represent the costs associated with employee retention and workforce reductions ($21 in 2023, $9 in 2022), the closure/transfer of manufacturing and other facilities, including site closure costs, contract termination costs and redundant employee costs during the work transfers ($12 in 2023, $17 in 2022), product line exits (primarily inventory, long-lived asset and specifically-identified intangible asset write-offs) ($3 in 2023, $0 in 2022), certain long-lived and intangible asset write-offs and impairments ($1 in 2023, $80 in 2022) and other charges ($5 in 2023, $3 in 2022).
(c)			Charges represent the costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union.
(d)			Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain recall-related matters.
(e)			Charges represent changes in our best estimate of the minimum of the range of probable loss to resolve certain regulatory or other legal matters and the amount of favorable awards from settlements.
(f)			Benefits and charges represent the accounting impact of certain significant and discrete tax items, including adjustments related to the transfer of certain intellectual properties between tax jurisdictions (charges of $47 in 2023 and $46 in 2022) and certain tax audit settlements (benefit of $9 included in Other Income (Expense), Net and benefit of $28 included in Income Taxes for 2023, $0 for 2022).

FINANCIAL CONDITION AND LIQUIDITY


Three Months	2023		2022
Net cash provided by operating activities	$	445	$	203
Net cash used in investing activities	(132)		(2,682)
Net cash provided by (used in) financing activities	(481)		993
Effect of exchange rate changes on cash and cash equivalents	(5)		—
Change in cash and cash equivalents	$	(173)	$	(1,486)

Operating Activities

Cash provided by operating activities was $445 and $203 in the three months 2023 and 2022. The increase was primarily due to net earnings and higher accounts receivable collections.

Investing Activities

Cash used in investing activities was $132 and $2,682 in the three months 2023 and 2022. The three months 2022 included cash paid for the Vocera acquisition. Refer to Note 7 to our Consolidated Financial Statements for further information.

Financing Activities

Cash (used in) provided by financing activities was ($481) and $993 in the three months 2023 and 2022. Cash used in 2023 was primarily driven by dividend payments of $284 and a repayment of $100 on the term loan used to fund the acquisition of Vocera. Cash provided by financing activities in 2022 was primarily due to the issuance of the $1,500 term loan used to fund the acquisition of Vocera, partially offset by dividend payments of $262 and net repayments of $170 on short-term borrowings.

We did not repurchase any shares in the three months 2023 and 2022.

Liquidity

Cash, cash equivalents and marketable securities were $1,757 and $1,928 on March 31, 2023 and December 31, 2022. Current assets exceeded current liabilities by $4,289 and $3,972 on March 31, 2023 and December 31, 2022. We anticipate being


Dollar amounts are in millions except per share amounts or as otherwise specified.			1513


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

~~FINANCIAL CONDITION AND LIQUIDITY~~

Nine Months 2022 2021
Net cash provided by operating activities $ 1,621 $ 2,263
Net cash used in investing activities (2,762) (545)
Net cash provided by (used in) financing activities (303) (2,077)
Effect of exchange rate changes on cash and cash equivalents (80) (21)
Change in cash and cash equivalents $ (1,524) $ (380)

~~Operating Activities~~

Cash provided by operating activities was $1,621 and $2,263 in the nine months 2022 and 2021. The decrease was primarily due to higher costs for certain electronic components and increases of other critical inventory to manage supply chain delays due to component shortages.

~~Investing Activities~~

~~Cash used in investing activities was $2,762 and $545 in the nine months 2022 and 2021. The~~ ~~increase in cash used in 2022 was~~ ~~primarily due to the acquisition of Vocera and investments in capital projects partially offset by settlements of certain foreign currency forward contracts designated as net investment hedges.~~

~~Financing Activities~~

Cash provided by (used in) financing activities was ($303) and ($2,077) in the nine months 2022 and 2021. Cash used in 2022 was primarily driven by dividend payments and repayments of debt, including $500 of payments on the ~~$1,500 term loan used to fund the acquisition of Vocera. Cash used in 2021 was primarily due to debt repayments of $750 in March 2021 and $400 for the term loan in June 2021. We did not repurchase any shares in the nine months 2022 and 2021. Dividends paid to common shareholders were $788 and $713 in the nine months 2022 and 2021.~~

~~Liquidity~~

Cash, cash equivalents and marketable securities were $1,497 and $3,019 on September 30, 2022 and December 31, 2021. Current assets exceeded current liabilities by $4,747 and $5,468 on September 30, 2022 and December 31, 2021. We anticipate being able to support our short-term liquidity and operating needs from a variety of sources including cash from operations, commercial paper and existing credit lines.

We have raised funds in the capital markets and have accessed the credit markets in the past and may continue to do so from time-to-time. We continue to have strong investment-grade short-term and long-term debt ratings that we believe should enable us to refinance our debt as needed.

Our cash, cash equivalents and marketable securities held in locations outside the United States was approximately ~~47%~~31% on ~~September 30, 2022~~March 31, 2023 compared to ~~26%~~36% on December 31, ~~2021.~~2022.

Critical Accounting Policies and Estimates

There were no changes to our critical accounting policies and estimates from those disclosed in our Annual Report on Form 10-K for ~~2021.~~2022, except as follows:

We test goodwill annually for impairment at October 31 or whenever events or circumstances indicate that goodwill may be impaired. When it is unlikely that goodwill of a reporting unit is impaired, we perform a qualitative assessment that may be periodically supplemented with a corroborative quantitative analysis. The supplemental analysis supporting our 2021 annual goodwill impairment tests was performed using a market approach that utilizes trading multiples derived from a peer set of similar companies. The results of that supplemental analysis indicated that, at October 31, 2021, the implied fair values of our reporting units exceeded their respective carrying amounts by approximately 50% for our Spine reporting unit and at least 100% for all other reporting units.

When necessary, we perform a quantitative impairment test and determine the fair value of a reporting unit using an income approach and we corroborate our concluded value under the income approach using a market approach that utilizes trading multiples derived from a peer set of similar companies. The income approach calculates the present value of estimated future cash flows and requires certain assumptions and estimates to be made regarding market conditions and our future profitability. Considerable management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows used to measure fair value. Assumptions used in our impairment evaluations, such as forecasted growth rates and cost of capital, are consistent with internal business plans. We believe such assumptions and estimates are also comparable to those that would be used by other marketplace participants.

During 2022 our Spine reporting unit’s operating performance was affected by several factors, including a slower than anticipated recovery of surgery volumes as we emerged from the COVID-19 pandemic, rising costs and our competitive environment. Consequently, for the year ended December 31, 2022 revenues, gross margin and operating income were 3%, 4% and 33% below budgeted amounts. For the annual impairment test of our Spine reporting unit at October 31, 2022, we performed a quantitative impairment test and recognized a goodwill impairment charge of $216. The fair value of our Spine reporting unit was determined using a discounted cash flow analysis, which is a form of the income approach. Significant inputs to the analysis included assumptions for future revenue growth, operating margin and the rate used to discount the estimated future cash flows to their present value, based on the reporting unit’s estimated weighted average cost of capital. The impairment charge for our Spine reporting unit was also significantly affected by the discount rate, which was impacted by central banks raising interest rates during 2022 and increased

risk due to macroeconomic conditions. Our assumptions for revenue growth and operating margin considered the operating factors described above, including surgery volumes, increased costs and our competitive environment.

The assumptions used in the discounted cash flow analysis are subject to inherent uncertainties and subjectivity. The use of different assumptions, estimates or judgments with respect to the estimation of future cash flows and the determination of the discount rate used to reduce such estimated future cash flows to their net present value could materially change any related impairment charge. We believe our estimates are appropriate based upon current and future market conditions and the best information available at the impairment assessment date. However, future impairment charges could be required if we do not achieve our cash flow, revenue and profitability projections or if there is an increase in the weighted average cost of capital. Changes in our estimates of the discount rate, long-term revenue growth and long-term operating margin would result in additional goodwill impairment charges as follows:


Change in selected assumption			Amount
100 bps increase in discount rate			220
100 bps decrease in long-term revenue growth			130
100 bps decrease in long-term operating margin			40

For our other reporting units we performed qualitative assessments and concluded it was more likely than not that the fair values of those reporting units exceeded their respective carrying amounts. No impairment was identified for those reporting units in 2022 and we did not identify any factors at October 31, 2022 that would lead us to believe that those reporting units are at risk of a goodwill impairment. Future changes in the judgments, assumptions and estimates that are used in our impairment testing for goodwill and indefinite-lived intangible assets, including discount rates and cash flow projections, could result in significantly different estimates of the fair values. A significant reduction in the estimated fair values could result in impairment charges that could materially affect our results of operations.

New Accounting Pronouncements Not Yet Adopted

Refer to Note 1 to our Consolidated Financial Statements for information.

Guarantees and Other Off-Balance Sheet Arrangements

We do not have guarantees or other off-balance sheet financing arrangements, including variable interest entities, of a magnitude that we believe could have a material impact on our financial condition or liquidity.

OTHER MATTERS

Legal and Regulatory Matters

We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of our business, including proceedings related to product, labor, intellectual property and other matters. Refer to Note 6 to our Consolidated Financial Statements for further information.


Dollar amounts are in millions except per share amounts or as otherwise specified.			14


STRYKER CORPORATION						2023 First Quarter Form 10-Q

FORWARD-LOOKING STATEMENTS

This report contains statements ~~referring to us~~ that are not historical facts and are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements ~~which are intended to take advantage of the "safe harbor" provisions of the Reform Act,~~ are based on current projections about operations, industry conditions, financial condition and liquidity. Words that identify forward-looking statements include, without limitation, words such as "may," "could," "will," "should," "possible," "plan," "predict," "forecast," "potential," "anticipate," "estimate," "expect," "project," "intend," "believe," "may impact," "on track," "goal," "strategy" and words and terms of similar substance used in connection with any discussion of future operating or financial performance, an acquisition or our businesses. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Those statements are not guarantees and are subject to risks, uncertainties and assumptions that are difficult to ~~predict, including uncertainties related to the impact of the COVID-19 pandemic on our operations and financial results.~~predict. Therefore, actual results could differ materially and adversely from these forward-looking ~~statements.~~statements, historical experience or our present expectations. Some important factors that could cause our actual results to differ from our expectations in any forward-looking statements include ~~those~~the risks discussed in Item 1A. "Risk Factors" of our Annual Report on Form 10-K for ~~2021 and Part II, Item 1A. "Risk Factors" in our Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30,~~ 2022. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and accompanying notes to our Consolidated Financial Statements in our Annual Report on Form 10-K for ~~2021.~~2022. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward-looking statements.


ITEM 3.			QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We consider our greatest potential area of market risk exposure to be exchange rate risk on our ~~operations and financial~~operating results. Quantitative and qualitative disclosures about exchange rate risk are included in Item 7A "Quantitative and Qualitative Disclosures About Market Risk" of our Annual Report on Form 10-K for ~~2021.~~2022. There were no material changes from the information provided therein.


~~Dollar amounts are in millions except per share amounts or as otherwise specified.~~			16


~~STRYKER CORPORATION~~						~~2022 Third Quarter Form 10-Q~~


ITEM 4.			CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer (the Certifying Officers), evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended) on ~~September 30, 2022.~~March 31, 2023. Based on that evaluation, the Certifying Officers concluded the Company's disclosure controls and procedures were effective as of ~~September 30, 2022.~~March 31, 2023.

Changes in Internal Control Over Financial Reporting

There was no change to our internal control over financial reporting during the ~~nine~~three months ~~2022~~2023 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. In February 2022 we completed the acquisition of Vocera and are currently integrating Vocera into our operations, compliance programs and internal control processes. Vocera constituted approximately 8.5% of our total assets as of September 30, 2022, including the goodwill and intangible assets recorded as part of the purchase price allocation and approximately 1% of our net sales in the nine months ended September 30, 2022. United States Securities and Exchange Commission guidance allows companies to exclude acquisitions from their assessment of the internal control over financial reporting during the first year following an acquisition while integrating the acquired company. We have excluded the acquired operations of Vocera from our assessment of the Company's internal control over financial reporting.

PART II – OTHER INFORMATION


ITEM 1A.			RISK FACTORS

We are not aware of any material changes to the risk factors included in Item 1A. "Risk Factors" in our Annual Report on Form 10-K for ~~2021 and Part II, Item 1A. "Risk Factors" in our Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30,~~ 2022.


ITEM 2.			UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

We issued 2510,155 shares of our common stock in the three months ~~2022~~2023 as performance incentive awards to employees. These shares are not registered under the Securities Act of 1933 based on the conclusion that the awards would not be events of sale within the meaning of Section 2(a)(3) of the Act.

In March 2015 we announced that our Board of Directors had authorized us to purchase up to $2,000 of our common stock. 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.

In the ~~nine~~three months ~~2022~~2023 we did not repurchase any shares of our common stock under our authorized repurchase program. The total dollar value of shares of our common stock that could be acquired under our authorized repurchase program was $1,033 as of ~~September 30, 2022.~~

March 31, 2023.


~~ITEM 5.~~			~~OTHER INFORMATION~~

Section 13(r) of the Securities Exchange Act of 1934, as amended, requires an issuer to disclose in its annual or quarterly reports whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to parties subject to sanctions administered by the Office of Foreign Assets Control (“OFAC”) within the United States Department of the Treasury, whether or not such activities are prohibited or sanctionable under United States law. On March 2, 2021, the United States government designated the Russian Federal Security Service (the “FSB”) under additional sanctions authorities. On the same day, OFAC issued General License No. 1B (the “OFAC General License”), which generally authorizes certain licensing, permitting, certification, notification and related transactions with the FSB as may be required pursuant to Russian encryption product import controls for the importation, distribution or use of certain information technology products and radio frequency technology products in the Russian Federation.

As required under Russian law and as permitted under the OFAC General License, one of our subsidiaries in Russia periodically files notifications with or applies for import licenses and permits from the FSB on our behalf in connection with the importation of our products into Russia. These notification and licensing activities are free of charge, and none of our gross revenue or net profits are attributable to such activities. We expect to continue to file notifications with and apply for import licenses and permits from the FSB to qualify our products for importation and distribution in the Russian Federation to the extent required under Russian law, but only so long as such notification and licensing activities are authorized by the OFAC General License, any successor general license or other authorization issued by OFAC.

~~During the three months 2022 we filed two notifications with the FSB as described above.~~


ITEM 6.			EXHIBITS


31(i)			Certification of Principal Executive Officer of Stryker Corporation pursuant to Rule 13a-14(a).
31(ii)			Certification of Principal Financial Officer of Stryker Corporation pursuant to Rule 13a-14(a).
32(i)*			Certification by Principal Executive Officer of Stryker Corporation pursuant to 18 U.S.C. Section 1350.
32(ii)*			Certification by Principal Financial Officer of Stryker Corporation pursuant to 18 U.S.C. Section 1350.
101.INS			iXBRL Instance Document
101.SCH			iXBRL Schema Document
101.CAL			iXBRL Calculation Linkbase Document
101.DEF			iXBRL Definition Linkbase Document
101.LAB			iXBRL Label Linkbase Document
101.PRE			iXBRL Presentation Linkbase Document
104			Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

			* Furnished with this Form 10-Q


Dollar amounts are in millions except per share amounts or as otherwise specified.			1715


STRYKER CORPORATION						~~2022 Third~~2023 First Quarter Form 10-Q

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		STRYKER CORPORATION
		(Registrant)


Date:	~~November 1, 2022~~May 2, 2023	/s/ KEVIN A. LOBO
		Kevin A. Lobo
		Chair, Chief Executive Officer and President


Date:	~~November 1, 2022~~May 2, 2023	/s/ GLENN S. BOEHNLEIN
		Glenn S. Boehnlein
		Vice President, Chief Financial Officer


						1816


Net Sales by Geography
	Three Months 2022				Three Months 2021
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	425	$	110	$	415	$	110
Endoscopy	480		110		418		107
Medical	625		140		496		140
Neurovascular	110		184		113		182
Neuro Cranial	274		58		244		55
Other	71		1		68		1
	$	1,985	$	603	$	1,754	$	595
Orthopaedics and Spine:
Knees	$	365	$	116	$	321	$	118
Hips	225		122		199		129
Trauma and Extremities	494		178		447		192
Spine	206		74		201		81
Other	85		26		97		26
	$	1,375	$	516	$	1,265	$	546
Total	$	3,360	$	1,119	$	3,019	$	1,141


Net Sales by Geography
	Nine Months 2022				Nine Months 2021
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	1,290	$	336	$	1,171	$	340
Endoscopy	1,371		357		1,179		333
Medical	1,686		409		1,457		441
Neurovascular	333		568		339		546
Neuro Cranial	819		173		724		166
Other	214		4		200		3
	$	5,713	$	1,847	$	5,070	$	1,829
Orthopaedics and Spine:
Knees	$	1,078	$	367	$	964	$	361
Hips	657		381		606		384
Trauma and Extremities	1,470		563		1,362		591
Spine	615		234		611		256
Other	243		79		290		83
	$	4,063	$	1,624	$	3,833	$	1,675
Total	$	9,776	$	3,471	$	8,903	$	3,504