Financials highlights

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
  2019 2018 % Change
Net sales $14,884 $13,601 9.4%
Earnings before income taxes 2,562     2,356 8.7%
Income taxes 479     (1,197) NM
Net earnings
 2,083     3,553 (41.4)%
Adjusted net earnings1 3,139     2,779 13.0%
       
Net earnings per diluted share of common stock      
   Reported $ 5.48 $   9.34  (41.3)%
   Adjusted1 8.26      7.31   13.0%
       
Dividends paid per share of common stock $ 2.08 $   1.88   10.6%
Cash, cash equivalents and marketable securities 4,425    3,699  19.6%

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.
NM - Not Meaningful

Leading in medtech
 


MedSurg

44%

15% Medical

14% Instruments

13% Endoscopy

2% Sustainability Solutions


Neurotechnology and Spine

21%

14% Neurotechnology

7% Spine

 

 


Orthopaedics

35%

12% Knees

11% Trauma & Extremities

9% Hips

3% Other

Reconciliation of the Most Directly Comparable GAAP Financial Measure to Non-GAAP Financial Measure
   Net earnings ($ millions)    Net earnings per diluted share
  2014 2015 2016 2017 2018 2019   2014 2015 2016 2017 2018 2019
Reported $515 $1,439 $1,647 $1,020 $3,553 $2,083   $1.34 $3.78 $4.35 $2.68 $9.34 $ 5.48
   Acquisition and integration-related charges                          
       Inventory stepped-up to fair value
 15 4 23 20 9 51   0.04 0.01 0.06 0.05 0.02 0.13
       Other acquisition and integration-related
 50 20 77 31 90 160   0.13 0.05 0.20 0.09 0.24 0.42
   Amortization of purchased intangible assets 133 147 221 250 338
 375   0.35 0.39 0.59 0.67 0.89 0.99
   Restructuring-related and other charges 78 97 98 155 179
 180   0.20 0.26 0.26 0.41 0.47 0.47
   Medical device regulations – – – – 10 48   – – – – 0.03
 0.13
   Recall-related matters 628 210 127 131 18 154   1.65 0.55 0.34 0.34 0.05 0.41
   Regulatory and legal matters – (46) (7) 25 141 (33)   – (0.12) (0.02) 0.06 0.37 (0.09)
   Tax matters 391 78 8 833 (1,559) 121   1.02 0.20 0.02 2.19 (4.10) 0.32
Adjusted $1,810 $1,949 $2,194 $2,465 $2,779 $3,139   $4.73 $5.12 $5.80 $6.49 $7.31 $ 8.26
                           
Effective Tax Rate — Reported 55.6% 17.1% 14.3% 50.6% (50.8)% 18.7%              
Effective Tax Rate — Adjusted 22.3% 17.3% 17.3% 15.6% 16.7% 15.8%              
Weighted average diluted shares outstanding               382.8 380.9 378.5 380.1 380.3 379.9

Refer to our 2019 Annual Report on Form 10-K, available at stryker.com, for additional information regarding our non-GAAP financial measures.

 

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