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NOTE 13 - SUMMARY OF QUARTERLY DATA (UNAUDITED) 2012 Quarter Ended June 30 Sept. 30 Mar. 31 Net sales Gross profit Earnings before income taxes Net earnings Net earnings per share of common stock: Basic Diluted Market price of common stock: High Low Dividends declared per share of common stock $ 2,161 1,452 468 350 $ 2,106 1,434 435 325 $ 2,052 1,397 444 353 Dec. 31 $ 2,337 1,593 358 270 2011 Quarter Ended June 30 Sept. 30 Mar. 31 $ 2,015 1,326 412 308 $ 2,046 1,333 410 309 $ 2,031 1,362 431 327 Dec. 31 $ 2,215 1,475 433 401 0.92 0.91 0.85 0.85 0.93 0.92 0.71 0.71 0.79 0.78 0.80 0.79 0.85 0.84 1.05 1.05 55.90 50.41 57.14 49.43 56.79 50.05 56.75 51.60 65.20 53.50 64.61 56.58 60.64 43.73 51.13 44.56 $ 0.2125 $ 0.2125 $ 0.2125 0.18 $ 0.2125 $ 0.265 $ 0.18 $ 0.18 $ The price quotations reported above were supplied by the New York Stock Exchange. NOTE 14 - SUBSEQUENT EVENTS In February 2013 we made a voluntary general offer to acquire all the shares of Trauson Holdings Company Limited for HK$7.50 per ordinary share for a total consideration of $764 in an all cash transaction. This acquisition, which is expected to close before the end of the second quarter of 2013, will expand our presence in a key emerging market with a product portfolio and pipeline that is targeted at the value segment of the Chinese orthopaedic market. In February 2013 we won a jury verdict of $70 in lost profits for infringement of three of our patents relating to pulsed lavage systems in a patent infringement suit that we filed in the Western District of Michigan against a competitor. It is expected that the defendant will file post-trial motions seeking to overturn the jury verdict and that it will appeal if unsuccessful in that regard. We will record this gain when all related contingencies are resolved. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. Not applicable. ITEM 9A. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures���An evaluation of the effectiveness of the Company���s disclosure controls and procedures as of December 31, 2012 was carried out under the supervision and with the participation of the Company���s management, including the President and Chief Executive Officer and the Interim Chief Financial Officer and Vice President, Corporate Secretary (the Certifying Officers). Based on that evaluation, the Certifying Officers concluded that the Company���s disclosure controls and procedures are effective. Changes in Internal Control Over Financial Reporting���There was no change to our internal control over financial reporting during the quarter ended December 31, 2012 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Management���s Report on Internal Control Over Financial Reporting���The management of Stryker Corporation is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15 (f). Stryker Corporation���s internal control system was designed to provide reasonable assurance to the Company's management and Board of Directors regarding the preparation and fair presentation of published financial statements. Stryker Corporation���s management assessed the effectiveness of our internal control over financial reporting as of December 31, 2012. In making this assessment, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control-Integrated Framework. Based on that assessment, management concluded that our internal control over financial reporting is effective. Stryker Corporation���s independent registered public accounting firm, Ernst & Young LLP, has issued an attestation report on the effectiveness of our internal control over financial reporting. This report appears on the following page. Other Matters���We are in an ongoing process of implementing new Enterprise Resource Planning (ERP) systems at certain of our divisions. An ERP system is a fully-integrated set of programs and databases that incorporate order processing, production planning and scheduling, purchasing, accounts receivable and inventory management and accounting. In connection with this ERP system implementation, we are updating our internal controls over financial reporting, as necessary, to accommodate modifications to our business processes and accounting procedures. We do not believe that this ERP system implementation will have an adverse effect on our internal control over financial reporting. 41 Dollar amounts in millions except per share amounts or as otherwise specified