Financial highlights

Net earning
$ per diluted share

Adjusted net earnings*
$ per diluted share

Dividends paid
$ per share of common stock

Financial overview
$ in millions, except per share amounts
  2020 2019 % change
Net sales $14,351  $14,884  (3.6)%
Earnings before income taxes           1,954            2,562  (23.7)%
Income taxes              355               479  (25.9)%
Net earnings           1,599            2,083  (23.2)%
Adjusted net earnings¹           2,827            3,139  (9.9)%
       
Net earnings per diluted share of common stock      
   Reported  $4.20   $5.48  (23.4)%
   Adjusted*             7.43              8.26  (10.0)%
       
Dividends paid per share of common stock  $2.30   $2.08  10.6%
Cash, cash equivalents and marketable securities           3,024            4,425  (31.7)%

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

Leading in medtech
 
Geographic net sales 2020  
 


MedSurg

45%

18% Medical

13% Instruments

12% Endoscopy

2% Sustainability Solutions


Neurotechnology and Spine

21%

14% Neurotechnology

7% Spine


Orthopaedics

34%

12% Trauma & Extremities

11% Knees

8% 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
  2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Reported  $ 1,439   $ 1,647   $ 1,020   $ 3,553   $ 2,083   $ 1,599   $  3.78   $  4.35   $  2.68   $  9.34   $  5.48   $  4.20 
Acquisition and integration-related charges                        
Inventory stepped-up to fair value           4          23          20            9          51          36      0.01      0.06      0.05      0.02      0.13      0.10 
Other acquisition and integration-related         20          77          31          90         160         157      0.05      0.20      0.09      0.24      0.42      0.41 
Amortization of purchased intangible assets        147         221         250         338         375         381      0.39      0.59      0.67      0.89      0.99      1.00 
Restructuring-related and other charges         97          98         155         179         180         397      0.26      0.26      0.41      0.47      0.47      1.04 
Medical device regulations          -             -             -            10          48          63         -           -           -        0.03      0.13      0.17 
Recall-related matters        210         127         131          18         154          13      0.55      0.34      0.34      0.05      0.41      0.03 
Regulatory and legal matters        (46)          (7)         25         141         (33)           8     (0.12)    (0.02)     0.06      0.37     (0.09)     0.02 
Tax Matters         78            8         833     (1,559)        121         173      0.20      0.02      2.19     (4.10)     0.32      0.46 
Adjusted  $ 1,949   $ 2,194   $ 2,465   $ 2,779   $ 3,139   $ 2,827   $  5.12   $  5.80   $  6.49   $  7.31   $  8.26   $  7.43 
                         
Effective Tax Rate - Reported 17.1% 14.3% 50.6% (50.8%) 18.7% 18.2%            
Effective Tax Rate - Adjusted 17.3% 17.3% 15.6% 16.7% 15.8% 12.6%            
Weighted average diluted shares outstanding             380.9 378.5 380.1 380.3 379.9 380.3