8-KEarnings & ResultsExhibits & Filings

STRYKER CORP 8-K Report, Financial Results (Jan 26, 2010)

Filed January 26, 2010For Securities:SYK

Summary

Stryker Corporation (SYK) filed an 8-K on January 26, 2010, to announce its fourth quarter and full-year 2009 financial results. The filing primarily serves to attach a press release detailing these results, which is crucial for investors seeking to understand the company's performance and financial condition. Notably, the report emphasizes the use of non-GAAP financial measures such as "constant currency," "adjusted net earnings," and "adjusted diluted net earnings per share." Stryker explains these adjustments are made to provide a more consistent and comparable view of operational performance by excluding items like restructuring charges, the tax impact of foreign earnings repatriation, and gains from patent settlements. Management uses these measures for internal analysis and bonus calculations, and the company believes they offer valuable insights for investors to evaluate trends and potential future operating results, complementing the standard GAAP reporting.

Key Highlights

  • 1Stryker Corporation filed an 8-K on January 26, 2010, reporting its Q4 and full-year 2009 financial results.
  • 2The primary purpose of the filing was to attach a press release with the company's operating results.
  • 3The company utilized and explained several non-GAAP financial measures: "constant currency," "adjusted net earnings," and "adjusted diluted net earnings per share."
  • 4These non-GAAP measures are presented to offer a more comparable view of performance by excluding specific items.
  • 5Excluded items from adjusted earnings include restructuring charges (2009 & 2008), income tax impacts from foreign earnings repatriation (2009), and a confidential patent settlement gain (2009).
  • 6Stryker's management uses these non-GAAP measures for business segment review, trend analysis, budgeting, and bonus calculations.
  • 7The company encourages investors to review full GAAP financial statements and not rely solely on non-GAAP measures.

Frequently Asked Questions

The main purpose of this 8-K filing is to report Stryker Corporation's fourth quarter and full-year 2009 operating results and financial condition by attaching a press release that contains this information.

The key non-GAAP financial measures discussed are 'constant currency' (to measure sales performance unaffected by foreign exchange rates), 'adjusted net earnings,' and 'adjusted diluted net earnings per share' (to measure earnings performance on a more consistent and comparable basis).

Stryker uses non-GAAP financial measures to provide meaningful insights into the company's results on a consistent and comparable basis. These measures exclude specific items that management believes affect comparability, such as restructuring charges, tax impacts from foreign earnings repatriation, and gains from settlements, allowing for a better understanding of underlying operational performance and trends.

Stryker excludes restructuring charges recorded in 2009 and 2008, additional income taxes associated with the repatriation of foreign earnings recorded in 2009, and a gain recorded from a confidential patent infringement settlement agreement in 2009 from its adjusted net earnings.