Summary
This filing, an amendment to Stryker Corporation's 2011 10-K, focuses on the company's internal controls over financial reporting as of December 31, 2011. Management, including key executive officers, has concluded that the company's disclosure controls and procedures are effective. Furthermore, internal control over financial reporting is also deemed effective, based on the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). No changes materially affecting internal controls were noted during the fourth quarter of 2011. An important point for investors is the temporary exclusion of the recently acquired Neurovascular business from the internal control assessment. This exclusion, permitted by SEC guidance for acquired businesses, covers a period of one year. While this business represents a notable portion of Stryker's assets, equity, and revenue (13%, 7%, and 4% respectively), the company's overall internal control framework remains robust according to both management and the independent auditor, Ernst & Young LLP. Stryker is also actively implementing new Enterprise Resource Planning (ERP) systems, which are being integrated with updates to internal controls without anticipated adverse effects.
Financial Highlights
52 data points| Revenue | $8.31B |
| Cost of Revenue | $2.81B |
| Gross Profit | $5.50B |
| R&D Expenses | $462.00M |
| SG&A Expenses | $3.15B |
| Operating Expenses | $3.81B |
| Operating Income | $1.69B |
| Interest Expense | $56.00M |
| Net Income | $1.34B |
| EPS (Basic) | $3.48 |
| EPS (Diluted) | $3.45 |
| Shares Outstanding (Basic) | 386.50M |
| Shares Outstanding (Diluted) | 389.50M |
Key Highlights
- 1Stryker Corporation's management, along with its independent auditor Ernst & Young LLP, has affirmed the effectiveness of the company's internal control over financial reporting as of December 31, 2011.
- 2Disclosure controls and procedures were also evaluated and found to be effective by management.
- 3The recently acquired Neurovascular business (acquired from Boston Scientific) is excluded from the internal control assessment for one year, as permitted by SEC guidance.
- 4The Neurovascular business represented 13% of total assets, 7% of shareholder's equity, and 4% of revenues as of December 31, 2011.
- 5Stryker is in the process of implementing new Enterprise Resource Planning (ERP) systems across various divisions.
- 6The ERP system implementation is being managed with necessary updates to internal controls and is not expected to adversely affect financial reporting.
- 7The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the effectiveness of Stryker's internal control over financial reporting.