UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-13149

STRYKER CORPORATION
(Exact name of registrant as specified in its charter)

Michigan			38-1239739
(State of incorporation)			(I.R.S. Employer Identification No.)
2825 Airview Boulevard	Kalamazoo,	Michigan	49002
(Address of principal executive offices)			(Zip Code)
	(269)	385-2600
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.10 Par Value	SYK	New York Stock Exchange
1.125% Notes due 2023	SYK23	New York Stock Exchange
0.250% Notes due 2024	SYK24A	New York Stock Exchange
2.125% Notes due 2027	SYK27	New York Stock Exchange
0.750% Notes due 2029	SYK29	New York Stock Exchange
2.625% Notes due 2030	SYK30	New York Stock Exchange
1.000% Notes due 2031	SYK31	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐	Small reporting company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒

There were 376,747,866 shares of Common Stock, $0.10 par value, on March 31, 2021.

STRYKER CORPORATION 2021 First Quarter Form 10-Q

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Stryker Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

	Three Months
	2021		2020
Net sales	$	3,953	$	3,588
Cost of sales	1,444		1,257
Gross profit	$	2,509	$	2,331
Research, development and engineering expenses	288		254
Selling, general and administrative expenses	1,575		1,330
Recall charges	6		(6)
Amortization of intangible assets	181		118
Total operating expenses	$	2,050	$	1,696
Operating income	$	459	$	635
Other income (expense), net	(92)		(45)
Earnings before income taxes	$	367	$	590
Income taxes	65		97
Net earnings	$	302	$	493
Net earnings per share of common stock:
Basic	$	0.80	$	1.32
Diluted	$	0.79	$	1.30
Weighted-average shares outstanding (in millions):
Basic	376.3		374.8
Effect of dilutive employee stock compensation	5.4		4.9
Diluted	381.7		379.7
Cash dividends declared per share of common stock	$	0.63	$	0.575

Anti-dilutive shares excluded from the calculation of dilutive employee stock options were de minimis in all periods.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

	Three Months
	2021		2020
Net earnings	$	302	$	493
Other comprehensive income (loss), net of tax:
Pension plans	7		(4)
Unrealized gains (losses) on designated hedges	28		(26)
Financial statement translation	255		13
Total other comprehensive income (loss), net of tax	$	290	$	(17)
Comprehensive income	$	592	$	476

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 1

STRYKER CORPORATION 2021 First Quarter Form 10-Q

CONSOLIDATED BALANCE SHEETS

	March 31		December 31
	2021		2020
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	2,238	$	2,943
Marketable securities	74		81
Accounts receivable, less allowance of $132 ($131 in 2020)	2,616		2,701
Inventories:
Materials and supplies	664		678
Work in process	266		251
Finished goods	2,543		2,565
Total inventories	$	3,473	$	3,494
Prepaid expenses and other current assets	578		488
Total current assets	$	8,979	$	9,707
Property, plant and equipment:
Land, buildings and improvements	1,566		1,546
Machinery and equipment	3,640		3,636
Total property, plant and equipment	$	5,206	$	5,182
Less accumulated depreciation	2,496		2,430
Property, plant and equipment, net	$	2,710	$	2,752
Goodwill	12,803		12,778
Other intangibles, net	5,378		5,554
Noncurrent deferred income tax assets	1,519		1,530
Other noncurrent assets	2,066		2,009
Total assets	$	33,455	$	34,330
Liabilities and shareholders' equity
Current liabilities
Accounts payable	$	767	$	810
Accrued compensation	689		925
Income taxes	253		207
Dividends payable	237		237
Accrued product liabilities	505		515
Accrued expenses and other liabilities	1,487		1,586
Current maturities of debt	15		761
Total current liabilities	$	3,953	$	5,041
Long-term debt, excluding current maturities	13,059		13,230
Income taxes	986		990
Other noncurrent liabilities	1,955		1,985
Total liabilities	$	19,953	$	21,246
Shareholders' equity
Common stock, $0.10 par value	38		38
Additional paid-in capital	1,806		1,741
Retained earnings	12,525		12,462
Accumulated other comprehensive loss	(867)		(1,157)
Total shareholders' equity	$	13,502	$	13,084
Total liabilities and shareholders' equity	$	33,455	$	34,330

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 2

STRYKER CORPORATION 2021 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

	Three Months
	2021		2020
Common stock shares outstanding (in millions)
Beginning	376.1		374.5
Issuance of common stock under stock compensation and benefit plans	0.6		0.9
Repurchase of common stock	—		—
Ending	376.7		375.4
Common stock
Beginning	$	38	$	37
Issuance of common stock under stock compensation and benefit plans	—		1
Ending	$	38	$	38
Additional paid-in capital
Beginning	$	1,741	$	1,628
Issuance of common stock under stock compensation and benefit plans	(3)		(8)
Repurchase of common stock	—		—
Share-based compensation	68		56
Ending	$	1,806	$	1,676
Retained earnings
Beginning	$	12,462	$	11,748
Net earnings	302		493
Repurchase of common stock	—		—
Cash dividends declared	(239)		(217)
Ending	$	12,525	$	12,024
Accumulated other comprehensive income (loss)
Beginning	$	(1,157)	$	(606)
Other comprehensive income (loss)	290		(17)
Ending	$	(867)	$	(623)
Total Stryker shareholders' equity	$	13,502	$	13,115
Non-controlling interest	—		—
Total shareholders' equity	$	13,502	$	13,115

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 3

STRYKER CORPORATION 2021 First Quarter Form 10-Q

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Three Months
	2021		2020
Operating activities
Net earnings	$	302	$	493
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation	95		80
Amortization of intangible assets	181		118
Share-based compensation	68		56
Recall charges	6		(6)
Sale of inventory stepped-up to fair value at acquisition	79		6
Changes in operating assets and liabilities:
Accounts receivable	65		204
Inventories	(73)		(122)
Accounts payable	(37)		63
Accrued expenses and other liabilities	(178)		(550)
Recall-related payments	(8)		(4)
Income taxes	6		84
Other, net	(54)		169
Net cash provided by operating activities	$	452	$	591
Investing activities
Acquisitions, net of cash acquired	(27)		(23)
Purchases of marketable securities	(5)		(8)
Proceeds from sales of marketable securities	12		12
Purchases of property, plant and equipment	(83)		(144)
Other investing, net	7		—
Net cash used in investing activities	$	(96)	$	(163)
Financing activities
Proceeds (payments) on short-term borrowings, net	2		4
Proceeds from issuance of long-term debt	5		—
Payments on long-term debt	(750)		(500)
Dividends paid	(238)		(215)
Repurchases of common stock	—		—
Cash paid for taxes from withheld shares	(53)		(56)
Other financing, net	(19)		(1)
Net cash provided by (used in) financing activities	$	(1,053)	$	(768)
Effect of exchange rate changes on cash and cash equivalents	(8)		(33)
Change in cash and cash equivalents	$	(705)	$	(373)
Cash and cash equivalents at beginning of period	2,943		4,337
Cash and cash equivalents at end of period	$	2,238	$	3,964

See accompanying notes to Consolidated Financial Statements.

Dollar amounts are in millions except per share amounts or as otherwise specified. 4

STRYKER CORPORATION 2021 First Quarter Form 10-Q

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

General Information

Management believes the accompanying unaudited Consolidated Financial Statements contain all adjustments, including normal recurring items, considered necessary to fairly present the financial position of Stryker Corporation and its consolidated subsidiaries ("Stryker," the "Company," "we," us" or "our") on March 31, 2021 and the results of operations for the three months 2021. The results of operations included in these Consolidated Financial Statements may not necessarily be indicative of our annual results. These statements should be read in conjunction with our Annual Report on Form 10-K for 2020.

New Accounting Pronouncements Not Yet Adopted

We evaluate all Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board (FASB) for consideration of their applicability. ASUs not included in our disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on our Consolidated Financial Statements.

NOTE 2 - REVENUE RECOGNITION

Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for 2020.

We disaggregate our net sales by product line and geographic location for each of our segments as we believe it best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors.

Net Sales by Product Line
	Three Months
	2021		2020
Orthopaedics:
Knees	$	412	$	432
Hips	309		316
Trauma and Extremities	640		392
Other	123		82
	$	1,484	$	1,222
MedSurg:
Instruments	$	469	$	513
Endoscopy	469		455
Medical	622		587
Sustainability	61		67
	$	1,621	$	1,622
Neurotechnology and Spine:
Neurotechnology	$	570	$	483
Spine	278		261
	$	848	$	744
Total	$	3,953	$	3,588

Net Sales by Geography
	Three Months 2021				Three Months 2020
	United States		International		United States		International
Orthopaedics:
Knees	$	294	$	118	$	322	$	110
Hips	186		123		201		115
Trauma and Extremities	440		200		260		132
Other	94		29		69		13
	$	1,014	$	470	$	852	$	370
MedSurg:
Instruments	$	355	$	114	$	410	$	103
Endoscopy	354		115		364		91
Medical	473		149		454		133
Sustainability	60		1		66		1
	$	1,242	$	379	$	1,294	$	328
Neurotechnology and Spine:
Neurotechnology	$	335	$	235	$	301	$	182
Spine	193		85		196		65
	$	528	$	320	$	497	$	247
Total	$	2,784	$	1,169	$	2,643	$	945

Contract Assets and Liabilities

On March 31, 2021 and December 31, 2020 contract assets recorded in our Consolidated Balance Sheets were not significant.

Our contract liabilities arise as a result of consideration received from customers at inception of contracts for certain businesses or where the timing of billing for services precedes satisfaction of our performance obligations. We generally satisfy performance obligations within one year from the contract inception date. Our contract liabilities were $444 and $416 on March 31, 2021 and December 31, 2020.

NOTE 3 - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (AOCI)

Three Months 2021	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(3)	$	(259)	$	(10)	$	(885)	$	(1,157)
OCI	—		8		27		273		308
Income taxes	—		(4)		(8)		(12)		(24)
Reclassifications to:
Cost of sales	—		—		1		—		1
Other (income) expense	—		4		10		(8)		6
Income taxes	—		(1)		(2)		2		(1)
Net OCI	$	—	$	7	$	28	$	255	$	290
Ending	$	(3)	$	(252)	$	18	$	(630)	$	(867)

Three Months 2020	Marketable Securities		Pension Plans		Hedges		Financial Statement Translation		Total
Beginning	$	(3)	$	(179)	$	47	$	(471)	$	(606)
OCI	1		(6)		(39)		55		11
Income taxes	—		—		11		(37)		(26)
Reclassifications to:
Cost of sales	—		—		3		—		3
Other (income) expense	(1)		3		(1)		(7)		(6)
Income taxes	—		(1)		—		2		1
Net OCI	$	—	$	(4)	$	(26)	$	13	$	(17)
Ending	$	(3)	$	(183)	$	21	$	(458)	$	(623)

Dollar amounts are in millions except per share amounts or as otherwise specified. 5

STRYKER CORPORATION 2021 First Quarter Form 10-Q

NOTE 4 - DERIVATIVE INSTRUMENTS

We use operational and economic hedges, foreign currency exchange forward contracts, net investment hedges (both derivative and non-derivative financial instruments) and interest rate derivative instruments to manage the impact of currency exchange and interest rate fluctuations on earnings, cash flow and equity. We do not enter into derivative instruments for speculative purposes. We are exposed to potential credit loss in the event of nonperformance by our counterparties on our outstanding derivative instruments but do not anticipate nonperformance by any of our counterparties. Should a counterparty default, our maximum loss exposure is the asset balance of the instrument. We have not changed our hedging strategies, accounting practices or objectives from those disclosed in our Annual Report on Form 10-K for 2020.

Foreign Currency Hedges

March 2021	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	927	$	1,767	$	5,894	$	8,588
Maximum term in days							1703
Fair value:
Other current assets	$	7	$	—	$	87	$	94
Other noncurrent assets	1		32		—		33
Other current liabilities	(21)		—		(13)		(34)
Other noncurrent liabilities	(1)		(7)		—		(8)
Total fair value	$	(14)	$	25	$	74	$	85

December 2020	Cash Flow		Net Investment		Non-Designated		Total
Gross notional amount	$	949	$	1,828	$	5,382	$	8,159
Maximum term in days							1793
Fair value:
Other current assets	$	9	$	—	$	7	$	16
Other noncurrent assets	—		4		—		4
Other current liabilities	(12)		—		(121)		(133)
Other noncurrent liabilities	(1)		(26)		—		(27)
Total fair value	$	(4)	$	(22)	$	(114)	$	(140)

We have €1,500 in certain forward currency contracts designated as net investment hedges to hedge a portion of our investments in certain of our entities with functional currencies denominated in Euros. In addition to these derivative financial instruments designated as net investment hedges, we have designated €4,350 of senior unsecured notes as net investment hedges to selectively hedge portions of our investment in certain international subsidiaries. The currency effects of our Euro-denominated senior unsecured notes are reflected in AOCI within shareholders' equity where they offset gains and losses recorded on our net investment in international subsidiaries.

On March 31, 2021 the total after tax gain (loss) in AOCI related to designated net investment hedges was ($222).

Net Currency Exchange Rate Gains (Losses)

		Three Months
Derivative instrument:	Recorded in:	2021		2020
Cash Flow	Cost of sales	$	(1)	$	(3)
Net Investment	Other income (expense), net	8		7
Non-Designated	Other income (expense), net	(2)		(7)
	Total	$	5	$	(3)

Pretax gains (losses) on derivatives designated as cash flow of ($16) and net investment hedges of $33 recorded in AOCI are expected to be reclassified to cost of sales and other income (expense) in earnings within 12 months as of March 31, 2021. This cash flow hedge reclassification is primarily due to the sale

of inventory that includes previously hedged purchases. A component of the AOCI amounts related to net investment hedges is reclassified over the life of the hedge instruments as we elected to exclude the initial value of the component related to the spot-forward difference from the effectiveness assessment.

Interest Rate Hedges

In the three months 2021 a loss of $11 was reclassified from AOCI to earnings relating to the termination of forward starting interest rate swaps with notional amounts of $750 designated as cash flow hedges as we now consider it probable that the original forecasted debt issuances will not occur. Pretax gains of $5 recorded in AOCI related to other interest rate hedges closed in conjunction with debt issuances are expected to be reclassified to other income (expense) in earnings within 12 months of March 31, 2021. The cash flow effect of interest rate hedges is recorded in cash flow from operations.

NOTE 5 - FAIR VALUE MEASUREMENTS

Our policies for managing risk related to foreign currency, interest rates, credit and markets and our process for determining fair value have not changed from those described in our Annual Report on Form 10-K for 2020.

There were no significant transfers into or out of any level in 2021.

Assets Measured at Fair Value	March		December
	2021		2020
Cash and cash equivalents	$	2,238	$	2,943
Trading marketable securities	170		171
Level 1 - Assets	$	2,408	$	3,114
Available-for-sale marketable securities:
Corporate and asset-backed debt securities	$	37	$	38
United States agency debt securities	5		5
United States Treasury debt securities	29		36
Certificates of deposit	3		2
Total available-for-sale marketable securities	$	74	$	81
Foreign currency exchange forward contracts	127		20
Level 2 - Assets	$	201	$	101
Total assets measured at fair value	$	2,609	$	3,215

Liabilities Measured at Fair Value	March		December
	2021		2020
Deferred compensation arrangements	$	170	$	171
Level 1 - Liabilities	$	170	$	171
Foreign currency exchange forward contracts	$	42	$	160
Interest rate swap liability	—		53
Level 2 - Liabilities	$	42	$	213
Contingent consideration:
Beginning	$	393	$	306
Additions	4		108
Change in estimate	(2)		9
Settlements	(19)		(30)
Ending	$	376	$	393
Level 3 - Liabilities	$	376	$	393
Total liabilities measured at fair value	$	588	$	777

Fair Value of Available for Sale Securities by Maturity
	March 2021		December 2020
Due in one year or less	$	39	$	42
Due after one year through three years	$	35	$	39

On March 31, 2021 and December 31, 2020 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income was $17 and $40 in the three months 2021 and 2020, which was recorded in other income (expense), net.

Our investments in available-for-sale marketable securities had a minimum credit quality rating of A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and

Dollar amounts are in millions except per share amounts or as otherwise specified. 6

STRYKER CORPORATION 2021 First Quarter Form 10-Q

it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

NOTE 6 - CONTINGENCIES AND COMMITMENTS

We are involved in various ongoing proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product, labor, intellectual property and other matters, the most significant of which are more fully described below. The outcomes of these matters will generally not be known for prolonged periods of time. In certain of the legal proceedings, the claimants seek damages as well as other compensatory and equitable relief that could result in the payment of significant claims and settlements and/or the imposition of injunctions or other equitable relief. For legal matters for which management had sufficient information to reasonably estimate our future obligations, a liability representing management's best estimate of the probable loss, or the minimum of the range of probable losses when a best estimate within the range is not known, is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. If actual outcomes are less favorable than those estimated by management, additional expense may be incurred, which could unfavorably affect future operating results. We are self-insured for certain claims and expenses. The ultimate cost to us with respect to product liability claims could be materially different than the amount of the current estimates and accruals and could have a material adverse effect on our financial position, results of operations and cash flows.

Recall Matters

In June 2012 we voluntarily recalled our Rejuvenate and ABG II Modular-Neck hip stems and terminated global distribution of these hip products. Product liability lawsuits relating to this voluntary recall have been filed against us. In November 2014 we entered into a settlement agreement to compensate eligible United States patients who had revision surgery prior to November 3, 2014 and in December 2016 the settlement program was extended to patients who had revision surgery prior to December 19, 2016. In September 2020 we entered into a second settlement agreement to compensate eligible United States patients who had revision surgery prior to September 9, 2020. We continue to offer support for recall-related care and reimburse patients who are not eligible to enroll in the settlement program for testing and treatment services, including any necessary revision surgeries. In addition, there are remaining lawsuits that we will continue to defend against.

In August 2016 and May 2018 we voluntarily recalled certain lot-specific sizes and offsets of LFIT Anatomic CoCr V40 Femoral Heads. Product liability lawsuits and claims relating to this voluntary recall have been filed against us. In November 2018 we entered into a settlement agreement to resolve a significant number of claims and lawsuits related to the recalls. The specific terms of the settlement agreement, including the financial terms, are confidential.

With the acquisition of Wright as more fully described in Note 7, we are responsible for certain product liability claims, primarily related to certain hip products sold by Wright prior to its 2014 divestiture of the OrthoRecon business. We will continue to evaluate each claim and the possible loss we may incur.

We have incurred, and expect to incur in the future, costs associated with the defense and settlement of these matters. Based on the information that has been received, we have estimated the remaining range of probable loss related to these matters globally to be approximately $480 to $610. We have

recorded reserves representing the remaining minimum of the range of probable loss. The final outcomes of these matters are dependent on many factors that are difficult to predict. Accordingly, the ultimate cost related to these matters may be materially different than the amount of our current estimate and accruals and could have a material adverse effect on our results of operations and cash flows.

Leases	March			December
	2021			2020
Right-of-use assets	$	424		$	423
Lease liabilities, current	$	109		$	109
Lease liabilities, non-current	$	322		$	325
Other information:
Weighted-average remaining lease term	5.8 years			5.6 years
Weighted-average discount rate	2.94		%	2.57		%

	Three Months
	2021		2020
Operating lease cost	$	36	36

NOTE 7 - ACQUISITIONS

We acquire stock in companies and various assets that continue to support our capital deployment and product development strategies. The aggregate purchase price of our acquisitions, net of cash acquired was $31 and $23 in the three months 2021 and 2020.

In November 2020 we completed the acquisition of Wright Medical Group N.V. (Wright) for $30.75 per share, or an aggregate purchase price of $4.1 billion ($5.6 billion including convertible notes). Wright is a global medical device company focused on extremities and biologics. Wright is part of our Trauma and Extremities business within Orthopaedics. Goodwill attributable to the acquisition is not deductible for tax purposes.

In December 2020 we completed the acquisition of OrthoSensor, Inc. (OrthoSensor). OrthoSensor is a leader in the digital evolution of musculoskeletal care and sensor technology for total joint replacement. OrthoSensor is part of our Joint Replacement business within Orthopaedics. Goodwill attributable to the acquisition is not deductible for tax purposes.

Purchase price allocations for our significant acquisitions are:

Purchase Price Allocation of Acquired Net Assets
2020	Wright
Tangible assets and liabilities:
Accounts receivable	$	127
Inventory	478
Deferred income tax assets	373
Other assets	345
Debt	(1,447)
Deferred income tax liabilities	(504)
Product liabilities	(199)
Other liabilities	(290)
Intangible assets:
Customer and distributor relationships	181
Developed technology and patents	1,499
Trade name	59
Goodwill	3,459
Purchase price, net of cash acquired	$	4,081
Weighted-average life of intangible assets	12

Purchase price allocations for Wright and other 2020 acquisitions were based on preliminary valuations, primarily related to intangible assets, product liabilities and deferred income taxes. Our estimates and assumptions are subject to change within the measurement period.

Dollar amounts are in millions except per share amounts or as otherwise specified. 7

STRYKER CORPORATION 2021 First Quarter Form 10-Q

Estimated Amortization Expense
Remainder of 2021		2022		2023		2024		2025
$	450	$	588	$	567	$	541	$	520

NOTE 8 - DEBT AND CREDIT FACILITIES

We have lines of credit issued by various financial institutions that are available to fund our day-to-day operating needs. Certain of our credit facilities require us to comply with financial and other covenants. We were in compliance with all covenants on March 31, 2021.

Our commercial paper program backed by our primary revolving credit facility which expires in August 2023 allows us to have a maximum of $1,500 in commercial paper outstanding with maturities up to 397 days from the date of issuance. We have a credit agreement that provides for up to $1,500 of borrowings in United States Dollars pursuant to a 364-day revolving credit facility, which matures on April 29, 2021 and is available for working capital and general corporate purposes. On March 31, 2021 there were no borrowings outstanding under our credit facility or commercial paper programs.

Summary of Total Debt			March 2021		December 2020
	Rate	Due
Senior unsecured notes:
	2.625%	March 15, 2021	$	—	$	750
	1.125%	November 30, 2023	646		668
	0.600%	December 1, 2023	597		597
	3.375%	May 15, 2024	591		590
	0.250%	December 3, 2024	995		1,030
	1.150%	June 15, 2025	645		644
	3.375%	November 1, 2025	747		747
	3.500%	March 15, 2026	993		992
	2.125%	November 30, 2027	878		909
	3.650%	March 7, 2028	596		596
	0.750%	March 1, 2029	937		969
	1.950%	June 15, 2030	989		989
	2.625%	November 30, 2030	756		782
	1.000%	December 3, 2031	873		903
	4.100%	April 1, 2043	392		392
	4.375%	May 15, 2044	395		395
	4.625%	March 15, 2046	982		981
	2.900%	June 15, 2050	641		641
Variable term loan		November 10, 2023	400		400
Other			21		16
Total debt			$	13,074	$	13,991
Less current maturities of debt			15		761
Total long-term debt			$	13,059	$	13,230
			March 2021		December 2020
Unamortized debt issuance costs			$	69	$	71
Borrowing capacity on existing facilities			$	2,908	$	2,903
Fair value of senior unsecured notes			$	13,634