Stryker 2015 FORM 10-K

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from suppliers, converting materials to finished products, shipping products to customers, processing transactions, summarizing and reporting results of operations, complying with regulatory, legal or tax requirements, providing data security and other processes necessary to manage our business. In addition, our reliance on networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed, hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business. Numerous and evolving cybersecurity threats, including advanced persistent threats, pose a potential risk to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our data and our responsibilities to governments. We have made investments seeking to address these threats, including monitoring of networks and systems, hiring of experts, employee training and security policies for employees and third-party providers; however, because the techniques used in these attacks change frequently and may be difficult to detect for periods of time, we may face difficulties in anticipating and implementing adequate preventative measures. If the IT systems are damaged or cease to function properly due to any number of causes, networks or service providers we rely upon fail to function properly, or if we or one of our third- party providers suffer a loss or disclosure of our business or stakeholder information, due to any number of causes, ranging from catastrophic events or power outages to improper data handling or security breaches, and our business continuity plans do not effectively address these failures on a timely basis, we may be exposed to reputational, competitive and business harm as well as litigation and regulatory action. The costs and operational consequences of interruptions in our operations and responding to breaches and implementing remediation measures could be significant. We may be unable to attract and retain key employees: Our sales, technical and other key personnel play an integral role in the development, marketing and selling of new and existing products. If we are unable to recruit, hire, develop and retain a talented, competitive work force, we may not be able to meet our strategic business objectives. An inability to successfully manage the implementation of a new global enterprise resource planning ("ERP") system could adversely affect our operations and operating results: We are in the process of implementing a new global ERP system. This system will replace many of our existing operating and financial systems. Such an implementation is a major undertaking both financially and from a management and personnel perspective. Should the system not be implemented successfully, or if the system does not perform in a satisfactory manner, it could be disruptive and adversely affect our operations and results of operations, including our ability to report accurate and timely financial results. ITEM 1B. UNRESOLVED STAFF COMMENTS. None. ITEM 2. PROPERTIES. Principal Manufacturing Locations on December 31, 2015 Location Segment Approximate Square Feet Owned/ Leased Portage, Michigan M 1,144,000 Owned Changzhou, China O, NS 889,000 Owned Mahwah, New Jersey O 531,000 Owned Kayseri, Turkey M 259,000 Owned Tuttlingen, Germany M 230,000 Leased Arroyo, Puerto Rico M 220,000 Leased Kiel, Germany O 185,000 Owned San Jose, California M 185,000 Leased Fremont, California M, NS 168,000 Leased Suzhou, China O, NS 160,000 Owned Carrigtwohill, Ireland M, O 154,000 Owned Selzach, Switzerland O 138,000 Owned Limerick, Ireland O 130,000 Owned Freiburg, Germany O 123,000 Owned Lakeland, Florida M 119,000 Leased Carrigtwohill, Ireland NS 110,000 Leased Flower Mound, Texas M 108,000 Leased Malvern, Pennsylvania O 107,000 Leased Phoenix, Arizona M 100,000 Leased Cestas, France NS 91,000 Owned Neuchatel, Switzerland NS 88,000 Owned Ft. Lauderdale, Florida O, NS 84,000 Owned Limerick, Ireland O 78,000 Leased Ontario, Canada M 74,000 Leased Mountain View, California M, NS 62,000 Leased Cestas, France NS 51,000 Leased Charleston, South Carolina M 51,000 Leased Freiburg, Germany M, O 34,000 Leased Stetten, Germany O 33,000 Owned Rennes, France O 31,000 Leased West Valley, Utah O, NS 29,000 Leased O = Orthopaedics M = MedSurg NS = Neurotechnology and Spine Our corporate headquarters is located in Kalamazoo, Michigan, in a 75,000 square foot owned facility. In addition, we maintain administrative and sales offices and warehousing and distribution facilities in other locations domestically and globally. We believe that our properties are suitable and adequate for the manufacture and distribution of our products. ITEM 3. LEGAL PROCEEDINGS. We are involved in various proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product, labor and intellectual property, and other matters that are more fully described in Note 8 to the Consolidated Financial Statements in Item 8 of this report; this information is incorporated herein by reference. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. STRYKER CORPORATION 2015 Form 10-K 6 Dollar amounts in millions except per share amounts or as otherwise specified.

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