Financials
Financial overview
$ in millions, except per share amounts
$ 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.
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