8-KEarnings & ResultsExhibits & Filings

STRYKER CORP 8-K Report, Financial Results (Apr 20, 2010)

Filed April 20, 2010For Securities:SYK

Summary

Stryker Corporation (SYK) filed an 8-K on April 20, 2010, to report its first-quarter 2010 financial results via an attached press release. The filing highlights the company's use of non-GAAP financial measures, specifically 'constant currency' for sales and 'adjusted diluted net earnings per share' for earnings. These supplemental measures are provided to offer a more comparable view of operational performance by excluding the impact of foreign currency fluctuations and specific one-time items from 2009 that affected comparability. Investors are encouraged to consider these non-GAAP figures alongside the company's official GAAP results. The adjusted diluted EPS for the year ended December 31, 2009, is presented as $2.95, which is reconciled from the reported diluted EPS of $2.77 after accounting for restructuring charges, a patent litigation gain, and income taxes on foreign earnings repatriation. This reporting practice aims to provide a clearer understanding of underlying business trends and management's performance evaluation.

Key Highlights

  • 1Stryker announced its first-quarter 2010 financial results via an 8-K filing on April 20, 2010.
  • 2The company is utilizing non-GAAP financial measures for reporting, including 'constant currency' for sales.
  • 3Adjusted diluted net earnings per share (EPS) is another key non-GAAP metric presented.
  • 4These non-GAAP measures are intended to provide a more comparable view of operational performance by excluding items like foreign currency impacts and one-time charges.
  • 5For the year ended December 31, 2009, adjusted diluted EPS was $2.95, adjusted from reported EPS of $2.77.
  • 6Key adjustments for 2009 included restructuring charges, a patent litigation gain, and income taxes on foreign earnings repatriation.
  • 7Stryker emphasizes that investors should review both non-GAAP and official GAAP financial statements for a comprehensive understanding.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Stryker Corporation's first-quarter 2010 financial results, which were announced via a press release issued on April 20, 2010. It also details the non-GAAP financial measures the company uses.

'Constant currency' is a non-GAAP measure used to report sales performance by removing the impact of foreign currency exchange rate fluctuations, allowing for a more consistent comparison of sales trends. 'Adjusted diluted net earnings per share' is a non-GAAP measure that excludes certain items from reported earnings (like restructuring charges, patent litigation gains, and taxes on foreign earnings repatriation) to present a view of earnings that is more comparable period-over-period.

Stryker provides these non-GAAP measures because management uses them to review operating results, analyze future business trends, and base annual bonuses. The company believes these measures offer meaningful information regarding its results on a consistent and comparable basis, aiding investors in evaluating period-to-period performance and potential future operating results.

The adjusted diluted net earnings per share for the year ended December 31, 2009, was $2.95. This was calculated by taking the reported diluted EPS of $2.77 and adding back restructuring charges ($0.12), subtracting the patent litigation gain ($0.11), and adding back income taxes on repatriation of foreign earnings ($0.17).