Annual
Review
2019
When the breast
cancer surgeon
becomes the patient,
expertise, emotions
and empathy come
together
Stryker’s technology
improves outcomes for
patient and physician
On the day oncoplastic surgeon Dr. Anne
Peled was getting ready to perform
a double mastectomy and breast
reconstruction, her phone rang. She
wasn’t thinking about her own health,
but the news was grim — the disease she
spent her life treating had found her.
“I was so shocked,” says Dr. Peled, a
38-year-old vegetarian triathlete who
suspected the lump she discovered, and
had biopsied, was just a cyst. “There
were no words, even though I tell
women about breast cancer diagnoses
many times a week. I had to remind
myself what I tell my patients — that
this is very treatable and, in many
cases, curable.”
With her knowledge and experience,
she was able to put together “an
amazing team of caring and talented
clinicians who really listened to me
and what I wanted,” including her
parents, who are radiation oncologists,
and sister, a medical oncologist. “I felt
incredibly grateful for the care and
support I received, and I got through
my treatment smoothly and relatively
easily” — thanks, in part, to the type of
hidden scar surgery she performs on her
own patients.
Getting back to feeling
whole
During surgery, big scars can appear at
the cancer site, many times in highly
visible locations. While some women
may see their scars as an empowering
symbol, many do not. Research shows
that breast surgery scars may impact a
woman’s psychological and emotional
well-being, as well as quality of life
after surgery.1
This is where Stryker comes in
with a growing women’s health and
breast cancer portfolio. Case in point:
Stryker’s illuminated instruments for
hidden scar surgery, which can be
used for everything from skin sparing
mastectomies to breast-conserving
procedures (lumpectomy) to total
reconstruction.
With the help of this technology, breast
and plastic surgeons can minimize
scarring with access and visualization
to achieve optimal surgical and
aesthetic outcomes, which help women
move forward feeling more whole
and empowered — and without seeing
reminders of the cancer every day.
“Stryker’s illuminated instrument
technology makes a huge difference in
performing hidden scar techniques,”
says Dr. Peled. “I believe it’s safer and
more efficient than other products on
1. Gass J, et al. How do breast cancer surgery scars impact survivorship? Findings from a nationwide
survey in the United States. BMC Cancer (2019) 19:342. https://doi.org/10.1186/s12885-019-5553-0.
Accessed 10/2019.
Stryker | 2019 Annual Review
2
the market, with superior design and
quality. And patients look as good, if not
better, than before, so they can more
easily move past treatment.”
“This technology provides surgeons
access and visualization during surgery
to achieve optimal surgical and aesthetic
outcomes, including minimally invasive
surgeries,” says Charles Henkel, Stryker
Sales Manager, Surgical Technologies.
Moving on with life and
career
As an advocate of hidden scar
surgery — as well as a new procedure
she developed with her husband, plastic
surgeon Ziv Peled, to preserve nerve
sensation in the breast — Dr. Peled
travels the country to train colleagues in
the surgical technique she experienced
as a patient. She also talks about the
technique on social media and invites
surgeons to come to her practice to
watch and learn.
Dr. Peled has found that sharing her
story can be especially helpful for her
younger patients, because the fears,
challenges and decision-making around
breast cancer can be very different than
for older women, and peer support can
be even more important.
“I can share ‘insider tips’ on getting
through the care,” she explains. “Many
patients who know about my own
diagnosis will reach out to ask questions
about my experience as they go through
their treatment, and I love the way
this connects me to them in a totally
different way.”
With colleagues, Dr. Peled has learned
to carefully draw from her personal
experience to make productive, patient-
focused suggestions, which she believes
may carry some weight.
“As I settle into these dual and
simultaneous roles of breast cancer
surgeon and breast cancer survivor,
I’m gradually balancing the interplay
of these parts of myself into my
relationships with both patients and
colleagues,” she says. “For now, I take it
one interaction at a time and bask in the
deeply connecting moments of shared
understanding when they happen.”
Charles Henkel
Stryker Sales Manager,
Surgical Technologies
“ I had to remind myself what I tell my
patients — that this is very treatable
and, in many cases, curable.”
— Dr. Anne Peled
Stryker | 2019 Annual Review
3
SYK 2019 Annual Review
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page 4
“ Patients look as good, if not
better than before, so they can
more easily move past treatment.”
— Dr. Anne Peled
SPY Fluorescence: improving visualization
in breast reconstruction
When two of her sisters had breast
cancer, 51-year-old Barbara Pink, the
baby of the family, was aware that she
might be next, knowing that women
with “first degree” relatives with breast
cancer are at an increased risk.
Barbara learned about her diagnosis
following a mammogram. “Because of
my sisters, I wasn’t shocked,” Barbara
says. “I was around the same age as they
were when they were diagnosed.”
But with an aggressive form of breast
cancer, Barbara made the decision
to get a bilateral mastectomy and
bilateral breast reconstruction, an
increasingly common choice for many
women. In fact, the number of breast
cancer patients opting for implant
reconstruction after a mastectomy has
increased by two-thirds.1
Barbara’s plastic surgeon, Dr. Charles
Kays, from Wilmington Plastic Surgery,
in Wilmington, North Carolina, says the
number of cases where the mastectomy
and implant reconstruction are done
at one time, rather than two separate
surgeries, is also becoming more common.
“There’s a lot of emotional trauma to
having your breasts removed and not
completing your reconstruction at the
time of surgery. When we perform both
at the same time, patients are relieved
to get the procedure over with and their
overall recovery is shorter,” he says.
Dr. Kays took advantage of Stryker’s
innovative SPY fluorescence imaging
technology during the complicated
operation. With SPY fluorescence, surgical
teams can better visualize anatomy and
blood flow in vessels and related tissue,
which may improve outcomes in the
operating room.2
After the surgery, Barbara was up and
around in just a few days and fully back
in action after only four weeks. “I was
thrilled and my sisters were thrilled,” says
Barbara. “I had amazing care, and I’m just
so happy to move ahead with my life.”
1. U.S. Agency for Healthcare Research and Quality 2009.
2. SPY clinical bibliography available upon request.
Stryker | 2019 Annual Review
5
Dear
shareholders,
We had an excellent year in 2019, as we
reached 40 consecutive years of sales growth
and recorded our seventh consecutive year
of accelerated organic sales growth. We also
posted strong adjusted net earnings per share
and continued to execute on our strategy of
customer focus, innovation, globalization and
cost transformation.
We will have one change to our Board
of Directors as Louise Francesconi has
announced that she will not stand for
re-election in May 2020. Louise has made
strong contributions during her 14 years on
our Board and we thank her for her dedicated
service (see page 20).
Culture and leadership
The bedrock of our company is our
mission — Together with our customers, we
are driven to make healthcare better — and
values: Integrity, Accountability, People and
Performance. We hire people who are driven,
team-oriented and humble. We continue to be
regarded as a great place to work (see page 16)
and are honored by the accolades that reflect
our inclusive culture. We’re pleased to have
been rated #1 best workplace for diversity in
the U.S. by Fortune and Great Place to Work.
Financial performance
Our U.S. and international organic sales
growth were both 8.1 percent, with strong
international performances in emerging
markets and Europe. Reported sales growth
was 9.4 percent, including 2.6 percent growth
from acquisitions and 9.0 percent growth
from increased unit volume, which was
partially offset by a 1.3 percent impact from
foreign exchange and a 0.9 percent impact
from lower prices.
“ We had an excellent year in 2019,
as we reached 40 consecutive
years of sales growth.”
— Kevin Lobo
Chairman and Chief Executive Officer
Stryker | 2019 Annual Review
6
Our cash position remains strong
with a year-end cash and marketable
securities position of $4.4 billion,
enabling us to increase our dividend rate
by 10.6 percent for the January 2020
payment. Our reported net earnings
decreased 41.4 percent, largely due to
tax benefits in 2018, and our adjusted
net earnings grew by 13.0 percent.
Innovation
We continue to drive innovation through
R&D and acquisitions with a steady
stream of new product introductions
and closed several deals in the year.
In addition, we signed a definitive
agreement to acquire Wright Medical
for approximately $5.4 billion (including
convertible debt), which is expected to
close in the second half of 2020. This
acquisition should add nearly $1 billion
of revenue to our fast-growing Trauma
& Extremities business.
on track to roll it out to our other
businesses across the world over the
next few years. We also made significant
progress with our finance shared
services, including starting up a center
in Costa Rica, and continued to drive
improvements within our supply chain.
Cost transformation
We remain committed to systematically
reducing costs to enable growth. We
were pleased to deliver 40 basis points
of adjusted operating margin expansion
in 2019 despite significant dilution
from acquisitions. We successfully
implemented a large-scale enterprise
resource planning (ERP) deployment
at our Instruments division and are
Community
We are working to improve healthcare
responsibly and sustainably because
we believe the health of the world is as
important as the people who live in it.
Our activities and progress are outlined
in our Corporate Responsibility Review,
which is available on our website. We
are committed to delivering positive
results for our employees, customers,
communities and the planet.
Reflecting on our 2019 accomplishments,
I would like to thank our management
teams, our Board of Directors and our
roughly 40,000 employees worldwide
who live our mission and values every
day. Our strategy, people and culture
will enable us to continue to deliver
strong performance in the years ahead.
Kevin A. Lobo
Chairman and Chief Executive Officer
History of net sales growth
s
n
o
i
l
l
i
B
$15
$14
$13
$12
$11
$10
$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
16.2%
CAGR in net sales
over 40-year
period
40
Straight years of
sales growth
$14.9B
2019
Stryker | 2019 Annual Review
7
2019 acquisitions:
growth opportunities and
market-leading
innovations
With a disciplined approach, Stryker strategically acquires
businesses and integrates them quickly to accelerate long-term
growth opportunities in both existing and new segments of
our industry. In 2019, we completed four acquisitions that will
bring innovative and complementary products to our portfolio
and strengthen our market leadership.
Arrinex
Based in Menlo Park, California, Arrinex developed ClariFix, a novel
cryoablation technology for the treatment of chronic rhinitis. This
condition, which affects more than 24 million people in the U.S. each
year, may cause runny nose, congestion, sneezing and nasal itching.
ClariFix complements and further expands Stryker’s Ear, Nose and
Throat (ENT) portfolio with a unique product that meets the needs of a
large, underpenetrated segment of the ENT market where we have not
competed previously. As a result, ENT physicians have new technologies
that deliver more treatment options and better patient outcomes.
Stryker | 2019 Annual Review
8
OrthoSpace
With the acquisition of Israel-based OrthoSpace,
we have added to our sports medicine portfolio a
highly differentiated technology for the treatment
of massive rotator cuff tears. Called InSpace, the
product is a biodegradable sub-acromial spacer,
which is designed to realign the natural biomechanics
of the shoulder. InSpace has a clinical history of more
than 20,000 patients being treated in 30 countries
and provides our customers an innovative surgical
option to address a complex pathology. The InSpace
device is currently investigational and not approved
for sale in the U.S. and limited by Federal law to
clinical investigational use.
Mobius Imaging and
Cardan Robotics
With expertise in advanced imaging and robotics, as
well as a robust product pipeline, Mobius Imaging
and Cardan Robotics will strengthen our presence in
our key Orthopaedics, Spine and Neurotechnology
markets. As a result, we are positioned to make
healthcare better by providing more complete
procedural solutions, including sales, service, and
support, while helping surgeons achieve the best
possible outcomes for their patients.
SafeAir
This Swiss medical device company designs, develops
and manufactures innovative surgical smoke evacuation
products that help reduce staff and patient exposure
to hazards associated with surgical smoke. Highly
complementary to our Surgical Technologies business,
SafeAir products strengthen our existing smoke evacuation
portfolio in both the U.S. and Europe and align with our
goal of providing better care and a higher level of safety
for both healthcare professionals and patients.
Stryker | 2019 Annual Review
9
Mako expands reach
in Asia Pacific
In both countries, the number of
Mako systems and procedures has
increased significantly. In Japan, for
example, the growth opportunities
are considerable. Approximately
60,000 total hip replacements
and 82,000 total knee and partial
knee replacements are performed
annually,11 with the number
expected to increase due to the aging
population. Stryker has sponsored
trainings and participated in surgical
conferences and events in Asia
Pacific to educate surgeons on the
use of Mako technology.
A Mako media day in Japan, which
focused on innovations in joint
replacement surgeries, resulted in
local and industry news stories that
reached more than 30 million people.
Thanks to its demonstrated accuracy
and precision1–5 and a concerted
marketing effort, Mako enjoyed
significant growth in Asia Pacific in
2019. Two key reasons for this growth
were the acceleration of China’s Mako
Total Hip joint replacement business
since it was introduced in 2018, and the
2019 launch of Mako Total Hip and Total
Knee in Japan.
In both of these large markets, Stryker
emphasized clinical evidence, training
and education, and media awareness
to support this growth. “Because we
have been helping surgeons to know
more about a patient’s unique anatomy
with Mako SmartRobotics™ CT-based
planning, and accurately and precisely1–5
cut less6–10 with AccuStop™ haptic
technology, healthcare professionals are
welcoming Mako with open arms,” says
Christopher Roger, Director, Robotics
Sales and Support, Japan.
See references on page 21.
“ In my experience, Mako Total Hip
has shown better outcomes after
surgery compared to arthroplasty
performed manually.1”
— Dr. Nao Shibanuma,
Deputy Medical Director,
Kobe Kaisei Hospital
The first hospital to install Mako in Japan
©Kobe Kaisei Hospital
Stryker | 2019 Annual Review
10
Making
healthcare better
with medical education
Along with our commitment to
delivering innovative and industry-
leading technology, Stryker provides
extensive medical education and training
offerings for healthcare professionals.
These offerings are designed to help
advance product and procedural
knowledge and skills, improve customer
competence and confidence, and lead to
better patient outcomes. Here are some
highlights from across the company:
Craniomaxillofacial (CMF)
Our CMF medical education programs
include national, regional and local
courses for neurosurgeons and
craniomaxillofacial surgeons who
perform trauma, reconstructive and
orthognathic (jaw) surgery. Many
courses include a cadaveric component
taught by surgeons who are leaders
in their field, providing an elevated,
hands-on experience for attendees. We
also emphasize personalized medicine
through education on the use of virtual
surgical planning and other patient-
specific surgical solutions that support
improving patient outcomes. On-demand
education is also offered online through
our surgical video library.
colorectal, uro-gynecological, pediatric
cardiovascular and cardiothoracic
procedures. From symposiums to
clinical immersion, we offer customized
education, including a fellows
textbook program and courses, surgery
observation programs and regional
trainings so surgeons can avoid travel.
Joint Replacement
A wide variety of programs are available
for joint replacement surgeons,
including the highly attended Mako
System Certification program. During
this comprehensive hands-on program,
surgeons must successfully complete
two cadaveric joints with each Mako
application in order to be certified to
perform Mako procedures. Other in-
demand educational offerings are our
Virtual Surgical Demos and Observations
live events, broadcasted to surgeons and
OR staff, in which Mako robotic-arm
assisted procedures are demonstrated.
We also have surgical simulations on
both the Mako Partial Knee and Mako
Total Knee, which allow surgeons to
practice intra-operative balancing at
their own pace.
Endoscopy
With our industry-leading SPY imaging
technology, we established a training
program to help drive the adoption
of fluorescence as a standard of care.
Our popular iSPIES program covers
Neurosurgical
In our Stryker Training Center in Salt
Lake City, Utah, neurosurgery residents
can take the Neurotechnology National
Course, drawing on the wisdom of world-
renowned faculty members. 2019 marked
the first annual cross-divisional program
Stryker | 2019 Annual Review
11
that covered our entire Neurotechnology
portfolio, including Spine, Interventional
Spine, Neurosurgical, CMF and
Neurovascular. We also offer a hands-on
National OR Professional Workshop for
operating room directors, coordinators,
RNs, scrub techs and sterile processing
professionals. In 2019 our Mobile Lab,
which simulates eight operating rooms,
hosted 140 events across the country.
Neurovascular
Stroke Knowledge Initiatives for
Learning and Leadership (SKILL) is a
series of innovative, tailored ischemic
and hemorrhagic stroke education
programs that support our customers’
need to address patient management
challenges with the ultimate shared
goal of improving lives. SKILL features
an e-lab, NeuroElite fellows program,
training center initiatives and global
centers of excellence.
Orthopaedic Instruments
and Surgical Technologies
Through Stryker’s Learn Program,
operating room professionals have
access to industry resources designed
to enhance the understanding and
use of various medical technologies.
With programs based on extensive
research findings and practical industry
knowledge, we are dedicated to
empowering and advancing healthcare
providers at every stage of their career.
Trauma & Extremities
TEACH programs (Trauma and Extremities
Academic Courses for Healthcare) include training
on the effective use of Stryker products in Trauma,
Shoulder and Foot and Ankle for the orthopaedic
surgeon community, which consists of nurses,
residents and fellows, as well as practicing surgeons.
TEACH faculty are invited by Stryker to attend a
program educating them on Advanced Training
Principles to enhance their teaching skills, ultimately
contributing to the quality of the TEACH programs.
Launched in 2019, the Connect program provides
educational resources to residents at teaching
institutions and continues as they transition into
fellowship and practice. New initiatives such as
digital learning platforms and cross-divisional
dissection courses were introduced to expand
Stryker’s educational resources for residents and
fellows at teaching institutions.
Stryker | 2019 Annual Review
12
Corporate
Responsibility
At Stryker, corporate responsibility
is an important part of who we
are — as individuals, teams and one
connected company. Driven by our
shared values, it’s built into the way
we operate our company. Our mission
is to improve healthcare by working
with our customers to make the
world better for patients, caregivers,
employees and the environment.
Learn more about our commitment
to people and the planet in our
Corporate Responsibility Review at
stryker.com/CR
2019 achievements
through our key focus areas
Investing in people
for stronger health, safety,
talent and inclusion
709+
surgeries funded through
our Smile Match campaign
where employee donations to
Operation Smile are matched
until we reach our goal.
Stryker | 2019 Annual Review
13
Product lifecycle
innovation
carefully considering our
use of materials across a
product’s lifecycle
Resource efficiency
reducing water, waste and
emissions
$375.6M
saved by customers through
reprocessing programs
Ethics and
accountability
because transparency,
honesty and fairness
should always be
paramount
13.4M
pounds of waste diverted
from landfills
Addressing the need for
compliant medical waste
disposal systems, Cactus Smart
Sink System securely captures
partially administered or
unused controlled substances
and renders them non-
retrievable and unusable.
The system helps reduce
drug diversion and improve
patient safety while also
reducing the impact on the
environment.
Responsible
supply chains
managing and sourcing
suppliers with the highest
standards
$225M
spent with minority, women, and
veteran-owned businesses
$700M
spent with small businesses
In 2019, our Board amended
our bylaws to implement
proxy access. This permits a
shareholder or a group of up
to 20 shareholders owning at
least 3 percent of Stryker’s
common stock for at least three
years, to nominate and include
in Stryker’s proxy materials
director nominees constituting
up to the greater of two
individuals or 20 percent
of the Board.
Stryker | 2019 Annual Review
14
to increase our diverse talent pipeline,”
says Cindy Carlisle. “We used their
feedback to develop an actionable set
of recommendations to enhance our
Diversity and Inclusion strategy.”
Diversity and Inclusion
conference
To continue strengthening employee
engagement, we host inclusion
conferences. Our annual inclusion
awareness conference, for example,
brings together leaders and employees
from our five campuses in Kalamazoo,
Michigan. This full-day conference
focuses on why inclusion matters and
equips participants with tools to build a
more inclusive environment.
Diversity and inclusion:
we win together as a team
At Stryker, we win together as a team.
Our mission and values unite employees
around a diverse and inclusive culture
that delivers remarkable results. And we
create and invest in programs that foster
a positive workplace experience. Here
are some of our recent activities and
programs:
Annual engagement
survey
“We constantly challenge ourselves
to achieve more by listening to our
employees’ suggestions and taking
action to improve our workplace,”
says Cindy Carlisle, Vice President,
Talent Management and Corporate HR.
“For more than 25 years, we’ve used
our annual company-wide employee
engagement survey to uncover and take
action on important issues affecting our
work environment.”
Unconscious bias training
Unconscious biases exist even in
the most open-minded people and
organizations. We address this
proactively through our Think Twice
course, a workshop that showcases what
bias is, how and where it shows up,
and what to do about it. Since launch,
more than 4,000 employees across
16 countries have participated in the
training, including our CEO and our
entire senior leadership team.
Focus groups
To enhance our efforts to build an
inclusive, engaging work environment,
we partnered with a global management
consortium to conduct conversations with
employees aimed at expanding existing
initiatives. “Attendees provided their
insights and pointed out opportunities
Disabilities program in
Ireland
Patrick O’Brien, an associate at
Stryker’s Anngrove facility in Cork,
recalled a former co-worker at a
previous job who faced some tough
employment challenges because he
was deaf. So Patrick got involved
in developing a Stryker team under
the name of ABLE — the Ability and
Belief to Leverage Everyone. And
over the past two years, the team
accomplished a great deal, including:
• Hiring individuals with hearing
impairments
• Installing pocket-sized vibrating
alarm systems for hearing-
impaired people
• Modifying entranceways, desks,
coffee stations and dining tables
for people in wheelchairs
• Working with the local university
on a mentorship program for
students with disabilities
Stryker | 2019 Annual Review
15
Global
recognition
FORTUNE Best
Workplaces (U.S.)
For Diversity, 2019
#1 out of 100 companies — recipient for
the third consecutive year
For Women, 2019
#47 — recipient for the third time
Best Workplaces
in Europe
#14
recipient for the first time
Best Workplaces
International
#1 for Australia, 2019
recipient for the sixth consecutive year
Mexico, 2019
recipient for the sixth time
Women’s Choice Awards
2020 awards
named to two lists:
100 Best Workplaces for Women
Best Companies for Diversity
Italy, 2019
recipient for the first time
Spain, 2019
recipient for the fourth time
UK, 2019
recipient for the first time
Brazil, 2019
recipient for the sixth consecutive year
Canada, 2019
recipient for the tenth consecutive year
Greater China, 2019
recipient for the third year
France, 2019
recipient for the second consecutive year
Japan, 2019
recipient for the second consecutive year
Korea, 2019
recipient for the second consecutive year
FORTUNE World’s
Best Workplaces
#8 in 2019
out of 25 companies —
recipient for the third time
FORTUNE 100
Best Companies to
Work For (U.S.)
#8 in 2020
recipient for the tenth
consecutive year
FORTUNE 500
Largest U.S.-Based
Companies
#233 in 2019
joined the list in 2003 — recipient for
the 17th consecutive year
FORTUNE World’s
Most Admired
Companies
#5 in 2020
Medical Products and Equipment
recipient for the 18th consecutive year
Stryker | 2019 Annual Review
16
Financial
highlights
Net earnings
$ Per diluted share
Adjusted net earnings 1
$ Per diluted share
Financial overview
($ in millions, except per share amounts)
2019
2018 % Change
10.00
8.00
6.00
4.00
2.00
5.48
10.00
8.00
6.00
4.00
2.00
2014
2019
2014
2019
Dividends paid
$ Per share of common stock
2.5
2.0
1.5
1.0
0.5
2.08
2014
2019
8.26
Net sales
$14,884
$13,601
Earnings before income taxes
2,562
2,356
Income taxes
Net earnings
Adjusted net earnings1
Net earnings per diluted share
of common stock
Reported
Adjusted1
9.4%
8.7%
NM
479
(1,197)
2,083
3,139
$5.48
8.26
3,553
2,779
(41.4)%
13.0%
$9.34
(41.3)%
7.31
13.0%
Dividends paid per share of
common stock
Cash, cash equivalents and
marketable securities
$2.08
$1.88
10.6%
4,425
3,699
19.6%
1. Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP
financial measures. Refer to page 21 for a reconciliation to the most directly comparable
GAAP financial measures, net earnings and net earnings per diluted share.
NM = Not Meaningful
Stryker | 2019 Annual Review
17
Leading
in medtech
MedSurg
44%
15% Medical
14% Instruments
13% Endoscopy
2% Sustainability Solutions
Orthopaedics
35%
12% Knees
11% Trauma & Extremities
9% Hips
3% Other
Neurotechnology
and Spine
21%
14% Neurotechnology
7% Spine
n d S p i n e
7%
y a
g
o l o
n
Neurotec h
14%
15%
3%
$14.9B
9%
in global sales
M
e
d
i
c
a
l
a
n
d
14%
S
u
r
g
i
c
a
l
(
M
e
d
S
u
r
g
)
O
r
t
h
o
p
a
e
11%
d
ic
s
13%
2%
12%
Stryker | 2019 Annual Review
18
Leadership
team
(In order of appearance in photo, left to right)
Kevin A. Lobo
Chairman and
Chief Executive Officer
Glenn S. Boehnlein
Vice President,
Chief Financial Officer
Robert S. Fletcher
Vice President, Chief Legal Officer
Viju S. Menon
Group President,
Global Quality and Operations
Yin C. Becker
Vice President,
Communications,
Public Affairs and
Corporate Marketing
Timothy J. Scannell
President and
Chief Operating Officer
J. Andrew Pierce
Group President, MedSurg
and Neurotechnology
Division Presidents
Bradford L. Saar
Medical
Hiroyuki Saeki
Japan
Businesses
Xavier M. C. Berling
Trauma & Extremities
Brian J. White
Sustainability Solutions
Dylan B. Crotty
Instruments
Brent W. Ladd
Endoscopy
Eric D. Major
Spine
Mark H. Paul
Neurovascular
Donald E. Payerle
Joint Replacement
Regions
Maurice Ben-Mayor
South Pacific
Silvia L. F. Braga
Latin America
Dragana Bunjevac
Eastern Europe,
Middle East, Africa
Scott A. MacNair
Canada
Graham A. McLean
Asia Pacific
Spencer S. Stiles
Group President,
Orthopaedics and Spine
M. Kathryn (Katy) Fink
Vice President,
Chief Human Resources Officer
Katherine A. Owen
Vice President,
Strategy and Investor Relations
Stuart A. J. Silk
Europe, Middle East,
Africa, Latin America,
Canada
Other Officers
Dean H. Bergy
Vice President,
Corporate Secretary
William E. Berry Jr.
Vice President,
Corporate Controller
Jeanne M. Blondia
Vice President,
Finance and Treasurer
Irene B. Corbe
Vice President,
Internal Audit
William J. Cymbaluk
Vice President, Corporate
Regulatory Affairs and
Quality Assurance
David G. Furgason
Vice President, Tax
Jody K. Powell
Vice President,
Global RAQA
Bronwen R. Taylor
Vice President,
Compliance and Risk
Management
Stryker | 2019 Annual Review
19
Board of
Directors
(In order of appearance in photo, left to right)
Andrew K. Silvernail **
Louise L. Francesconi ‡ §
Rajeev Suri **
Ronda E. Stryker §
Mary K. Brainerd **
Allan C. Golston † **
Srikant M. Datar, Ph.D. ‡ §
Roch Doliveux, D.V.M. ‡ §
Sherilyn S. McCoy ‡ §
Kevin A. Lobo *
Chairman Emeritus
With appreciation
John W. Brown
Former Chairman, President and
Chief Executive Officer
Director Emeritus
Howard E. Cox, Jr.
* Chairman of the Board
† Lead Independent Director
** Audit Committee
‡ Compensation Committee
§ Governance and Nominating Committee
Louise L. Francesconi
We want to express our gratitude and
appreciation to Louise Francesconi who
has served as a director on our board
since 2006. Louise has made strong
contributions to our strategy and growth
during her 14 years on our board and
successfully hired many new board
members as chair of the governance
and nominating committee since 2007.
We sincerely thank Louise for her
dedication and service.
Stryker | 2019 Annual Review
20
Reconciliation of the Most Directly Comparable GAAP Financial Measure to Non-GAAP Financial Measure
Reported
$515
$1,439
$1,647
$1,020
$3,553
$2,083
$1.34
$3.78
$4.35
$2.68
$9.34
$5.48
Net earnings ($ millions)
Net earnings per diluted share
2014
2015
2016
2017
2018
2019
2014
2015
2016
2017
2018
2019
Acquisition and integration-related charges
Inventory stepped-up to fair value
Other acquisition and integration-related
15
50
4
20
Amortization of purchased intangible assets
133
147
Restructuring-related and other charges
Medical device regulations
Recall-related matters
Regulatory and legal matters
Tax matters
Adjusted
Effective Tax Rate — Reported
Effective Tax Rate — Adjusted
23
77
221
98
–
127
(7)
8
20
31
250
155
–
131
25
833
9
90
338
179
10
18
141
(1,559)
51
160
375
180
48
154
(33)
121
0.04
0.13
0.35
0.20
–
0.01
0.05
0.39
0.26
–
0.06
0.20
0.59
0.26
–
1.65
0.55
0.34
–
(0.12)
(0.02)
1.02
0.20
0.02
0.05
0.09
0.67
0.41
–
0.34
0.06
2.19
0.02
0.24
0.89
0.47
0.03
0.05
0.37
0.13
0.42
0.99
0.47
0.13
0.41
(0.09)
(4.10)
0.32
78
–
628
–
391
97
–
210
(46)
78
$1,810
$1,949
$2,194
$2,465
$2,779
$3,139
$4.73
$5.12
$5.80
$6.49
$7.31
$8.26
55.6%
17.1%
14.3%
50.6%
(50.8)%
18.7%
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.
References from page 10
1. Illgen R, Bukowski B, Abiola R, Anderson P, Chughtai M, Khlopas A, Mont M. Robotic-assisted total hip
arthroplasty: Outcomes at minimum two year follow up. Surgical Technology International. 2017 July 25; 30:365-372.
2. Kayani B, Konan S, Tahmassebi J, Pietrzak JRT, Haddad FS. Robotic arm assisted total knee arthroplasty
is associated with improved early functional recovery and reduced time to hospital discharge compared
with conventional jig-based total knee arthroplasty: a prospective cohort study. The Bone and Joint Journal.
2018;100-B:930-7.
6. Suarez-Ahedo C; Gui C; Martin T; Chandrasekaran S; Domb B. Robotic arm assisted total hip arthroplasty results
in smaller acetabular cup size in relation to the femoral head size: A Matched-Pair Controlled Study. Hip Int. 2017; 27
(2): 147-152.
7. Haddad FS, et al. Iatrogenic Bone and Soft Tissue Trauma in Robotic-Arm Assisted Total Knee Arthroplasty
Compared With Conventional Jig-Based Total Knee Arthroplasty: A Prospective Cohort Study and Validation of a New
Classification System. J Arthroplasty. 2018 Aug;33(8):2496-2501. Epub 2018 Mar 27.
3. Kleeblad LJ, Borus T, Coon T, Dounchis J, Nguyen J, Pearle A. Midterm survivorship and patient satisfaction of
robotic-arm assisted medial unicompartmental knee arthroplasty: a multicenter study. The Journal of
8. Hozack WJ. Multicentre analysis of outcomes after robotic-arm assisted total knee arthroplasty. Orthop Proc.
2018;100-B(SUPP_12):38.
Arthroplasty. 2018:1-8.
4. Anthony I, Bell SW, Blyth M, Jones B, et al. Improved accuracy of component positioning with robotic-assisted
unicompartmental knee arthroplasty. J Bone Joint Surg Am. 2016;98-A(8):627-35.
5. Mahoney O, Kinsey T, Mont M, Hozack W, Orozco F, Chen A. Can computer generated 3D bone models improve
the accuracy of total knee component placement compared to manual instrumentation: a prospective multi-
center evaluation? International Society for Technology in Arthroplasty 32nd Annual Congress. Toronto, Canada.
October 2-5, 2019.
9. Banks, Scott A, PhD. Haptic Robotics Enable a Systems Approach to Design of a Minimally Invasive Modular Knee
Arthroplasty. Am J Orthop. 2009;38(2 suppl):23-27. February 2009.
10. Hampp E, Chang TC, Pearle A. Robotic partial knee arthroplasty demonstrated greater bone preservation
compared to robotic total knee arthroplasty. Annual Orthopaedic Research Society. Austin, TX. 2-5 Feb 2019.
11. Japan Ministry of Health, Labour and Welfare. The 4th NDB Open Data Japan (Cases from Apr 2017 to
Mar 2018). 2019.
Stryker | 2019 Annual Review
21
m
o
c
.
i
n
o
s
d
d
a
.
w
w
w
i
n
o
s
d
d
A
y
b
i
n
g
s
e
D
Orthopaedics
Hips
Knees
Robotic-Arm Assisted
Technology
Trauma
Extremities
Sports Medicine
Medical and Surgical equipment
Power Tools
and Surgical
Equipment
Advanced
Guidance
Technologies
Minimally-Invasive
and Open Surgical
Visualization Solutions
Infrastructure
and Integration
Emergency and
Acute Care
Reprocessing and
Remanufacturing
Neurotechnology and Spine
Craniomaxillofacial
Interventional
Spine
Neurosurgical
and ENT
Neurovascular
Spinal Implants
and Biologics
© 2020 Stryker | 2825 Airview Boulevard | Kalamazoo, MI 49002 USA | stryker.com | SYK Corp 2020-02-03
Products may not be available in all markets. Product availability is subject to the regulatory and/or medical practices in individual markets.
Our Annual Review contains many of the valuable trademarks owned and/or used by Stryker and our subsidiaries and affiliates in the U.S. and internationally
to distinguish products and services of outstanding quality. All other trademarks featured herein are the property of their respective owners.
This document is governed solely by applicable U.S. laws and governmental regulations.
Stryker | 2019 Annual Review
22
Additional
information
Independent registered
public accounting firm
Ernst & Young LLP
Grand Rapids, Michigan
Transfer agent and registrar
American Stock Transfer &
Trust Company, LLC
New York, New York
Shareholders needing information
regarding their certificates or dividends
should contact:
American Stock Transfer &
Trust Company, LLC
Operations Center
6201 15th Avenue
New York, New York 11219
800 937 5449
info@amstock.com
Investor contact
Katherine A. Owen
Vice President, Strategy and
Investor Relations
Media contact
Yin C. Becker
Vice President, Communications,
Public Affairs and Corporate Marketing
Business development contact
Bryant S. Zanko
Vice President, Business Development
Annual meeting
The virtual Annual Meeting of
Shareholders of Stryker Corporation
will be held on Tuesday, May 5, 2020,
at 2:00 p.m. ET.
Access the meeting online at:
www.virtualshareholdermeeting.com/
SYK2020
Or by phone, listen only:
U.S. (toll free): 1-877-328-2502
International: 1-412-317-5419
Stock listing
The company’s common stock is traded
on the New York Stock Exchange under
the symbol SYK.
Form 10-K
The company files an Annual Report
on Form 10-K with the Securities and
Exchange Commission. Shareholders
may view the 2019 report at
www.stryker.com or www.sec.gov.
Forward-looking statements
This Annual Review contains
information that includes or is based
on forward-looking statements within
the meaning of the federal securities
law that are subject to various risks
and uncertainties that could cause our
actual results to differ materially from
those expressed or implied in such
statements. Such factors include, but
are not limited to: the failure to satisfy
any of the closing conditions to the
acquisition of Wright Medical, including
the receipt of any required regulatory
clearances (and the risk that such
clearances may result in the imposition
of conditions that could adversely affect
the expected benefits of the transaction);
delays in consummating the acquisition
of Wright; unexpected liabilities, costs,
charges or expenses in connection with
the acquisition of Wright; the effects of
the proposed Wright transaction (or the
announcement thereof) on the parties’
relationships with employees, customers,
other business partners or governmental
entities; the impact of the coronavirus
(COVID-19); weakening of economic
conditions that could adversely affect
the level of demand for our products;
pricing pressures generally, including
cost-containment measures that could
adversely affect the price of or demand
for our products; changes in foreign
exchange markets; legislative and
regulatory actions; unanticipated issues
arising in connection with clinical
studies and otherwise that affect U.S.
Food and Drug Administration approval
of new products, including Wright
products; potential supply disruptions;
changes in reimbursement levels from
third-party payors; a significant increase
in product liability claims; the ultimate
total cost with respect to recall-related
matters; the impact of investigative and
legal proceedings and compliance risks;
resolution of tax audits; the impact of
the federal legislation to reform the
United States healthcare system; costs to
comply with medical device regulations;
changes in financial markets; changes in
the competitive environment; our ability
to integrate and realize the anticipated
benefits of acquisitions in full or at
all or within the expected timeframes,
including the acquisition of Wright;
and our ability to realize anticipated
cost savings. Additional information
concerning these and other factors is
contained in our filings with the U.S.
Securities and Exchange Commission,
including our Annual Report on
Form 10-K and Quarterly Reports
on Form 10-Q.