STRYKER

2013 Form 10-K

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31 Dollar amounts in millions except per share amounts or as otherwise specified a unique mesh design and delivery system. The acquisition of Surpass enhances our product offerings within our Neurotechnology and Spine segment. Intangible assets acquired with Surpass will be amortized over a weighted-average life of 15 years. IPRD is considered to be an indefinite-lived intangible asset until such time as the research is completed (at which time it becomes a determinable-lived intangible asset) or determined to have no future use (at which time it is impaired). The measurement period for Surpass was completed in the fourth quarter of 2013; revisions to our original estimates include a reduction to developed technology of $18, a reduction to IPRD of $26, and an increase to goodwill of $27. The effects of all the acquisitions described above are included in our Consolidated Financial Statements prospectively from the date of acquisition. Pro forma consolidated results of operations for the years ended December 31, 2013 and 2012 would not differ significantly as a result of these acquisitions. The allocation of the purchase price to the acquired net assets of the acquisitions described above are as follows: 2013 2013 2012 MAKO Trauson Surpass Purchase price paid $ 1,679 $ 751 $ 100 Contingent consideration — — 33 Total purchase consideration $ 1,679 $ 751 $ 133 Tangible assets acquired: Inventory 50 43 2 Other assets 174 163 1 Liabilities (277) (87) (28) Identifiable intangible assets: Customer relationship 91 112 — Trade name 24 34 — Developed technology 231 31 45 In-process research & development 169 5 19 Goodwill 1,217 450 94 $ 1,679 $ 751 $ 133 NOTE 6 - GOODWILL AND OTHER INTANGIBLE ASSETS We completed our annual impairment tests of goodwill in 2013 and 2012 and concluded in each year that no impairments exist. The changes in the net carrying value of goodwill by segment are as follows: Reconstructive MedSurg Neurotechnology and Spine Total Balance as of January 1, 2012 $ 685 $ 510 $ 877 $ 2,072 Goodwill acquired 8 — 67 75 Foreign currency translation effects and other (2) 3 (6) (5) Balance as of December 31, 2012 691 513 938 2,142 Goodwill acquired 1,559 2 108 1,669 Transfers (17) (9) 26 — Foreign currency translation effects and other (6) — 39 33 Balance as of December 31, 2013 $ 2,227 $ 506 $ 1,111 $ 3,844 Measurement period adjustments that reflect changes to goodwill for acquisitions completed in a previous year are included in "Foreign currency translation effects and other." The following is a summary of our other intangible assets: Gross Carrying Amount Less Accumulated Amortization Net Carrying Amount 2013 2012 2013 2012 2013 2012 Intangible assets: Developed technologies $ 1,450 1,069 $ 380 282 $ 1,070 787 Customer relationships 677 563 189 147 488 416 Patents 238 230 190 182 48 48 Trademarks 127 69 34 31 93 38 In-process research and development 223 86 — — 223 86 Other 118 105 51 56 67 49 $ 2,833 $ 2,122 $ 844 $ 698 $ 1,989 $ 1,424

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