Financials

History of net sales growth 
$ in billions
Net earnings
$ per diluted share
Adjusted net earnings1
$ per diluted share
Dividends paid
$ per share of common stock
Financial overview
$ in millions, except per share amounts
  2018 2017 % Change
Net sales $13,601 $12,444 9.3%
Earnings before income taxes     2,356 2,063 14.2%
Income taxes     (1,197) 1,043
(214.8)%
Net earnings
    3,553 1,020 248.3%
Adjusted net earnings1     2,779     2,465 12.7%
       
Net earnings per diluted share of common stock      
   Reported $   9.34 $    2.68  248.5%
   Adjusted1      7.31       6.49   12.6%
       
Dividends paid per share of common stock $   1.88 $    1.70   10.6%
Cash, cash equivalents and marketable securities    3,699    2,793  32.4%

1. Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP financial measures. See below for a reconciliation to the most directly comparable GAAP financial measures, net earnings and net earnings per diluted share.


Leading in medtech
$13.6B in global sales
 

Reconciliation of the Most Directly Comparable GAAP Financial Measure to Non-GAAP Financial Measure

   Net earnings ($ millions)   Net earnings per diluted share
  2013 2014 2015 2016 2017 2018   2013 2014 2015 2016 2017 2018
Reported $1,006 $515 $1,439 $1,647 $1,020 $3,553   $2.63 $1.34 $3.78 $4.35 $2.68 $9.34
   Acquisition and integration-related charges                          
       Inventory stepped-up to fair value
21 15 4 23 20 9   0.06 0.04 0.01 0.06 0.05 0.02
       Other acquisition and integration-related
51 50 20 77 31 90   0.13 0.13 0.05 0.20 0.09 0.24
   Amortization of purchased intangible assets 98 133 147 221 250 338
  0.26 0.35 0.39 0.59 0.67 0.89
   Restructuring-related and other charges 46 78 97 98 155 179
  0.12 0.20 0.26 0.26 0.41 0.47
   Medical device regulations 10   0.03
   Recall-related matters 460 628 210 127 131 18   1.20 1.65 0.55 0.34 0.34 0.05
   Regulatory and legal matters 63 (46) (7) 25 141   0.17 (0.12) (0.02) 0.06 0.37
   Donations 15

  0.04
   Tax matters (46) 391 78 8 833 (1,559)   (0.12) 1.02 0.20 0.02 2.19 (4.10)
Adjusted $1,714 $1,810 $1,949 $2,194 $2,465 $2,779   $4.49 $4.73 $5.12 $5.80 $6.49 $7.31
                           
Effective Tax Rate — Reported 17.0% 55.6% 17.1% 14.3% 50.6% -50.8%              
Effective Tax Rate — Adjusted 22.7% 22.3% 17.3% 17.3% 15.6% 16.7%              
Weighted average diluted shares outstanding               382.1 382.8 380.9 378.5 380.1 380.3

Refer to our 2018 Annual Report on Form 10-K, available at stryker.com, for additional information regarding our non-GAAP financial measures.

Download the 2018 Annual Review PDF

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