STRYKER

2016 FORM 10-K

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STRYKER CORPORATION 2016 Form 10-K Dollar amounts in millions except per share amounts or as otherwise specified. 31 Segment Results 2016 2015 2014 Orthopaedics $ 4,422 $ 4,223 $ 4,153 MedSurg 4,894 3,895 3,781 Neurotechnology & Spine 2,009 1,828 1,741 Net sales $ 11,325 $ 9,946 $ 9,675 Orthopaedics $ 317 $ 290 $ 319 MedSurg 249 117 113 Neurotechnology & Spine 140 132 134 Segment depreciation and amortization $ 706 $ 539 $ 566 Corporate and Other 46 51 20 Total depreciation and amortization $ 752 $ 590 $ 586 Orthopaedics $ 1,597 $ 1,487 $ 1,410 MedSurg 1,085 822 850 Neurotechnology & Spine 557 474 476 Segment operating income $ 3,239 $ 2,783 $ 2,736 Items not allocated to segments: Corporate and Other $ (352) $ (302) $ (322) Acquisition & integration-related charges (131) (35) (102) Amortization of intangible assets (319) (210) (188) Restructuring related charges (125) (132) (117) Rejuvenate and related charges (158) (296) (761) Regulatory and legal matters 12 53 — Consolidated operating income $ 2,166 $ 1,861 $ 1,246 Segment Assets and Capital Spending Assets: 2016 2015 2014 Orthopaedics $ 7,048 $ 6,149 $ 8,357 MedSurg 8,553 5,341 5,557 Neurotechnology & Spine 4,129 3,904 3,684 Total segment assets $ 19,730 $ 15,394 $ 17,598 Corporate and Other 705 829 (340) Total assets $ 20,435 $ 16,223 $ 17,258 Capital spending: Orthopaedics $ 153 $ 95 $ 80 MedSurg 129 89 77 Neurotechnology & Spine 25 28 20 Total segment capital spending $ 307 $ 212 $ 177 Corporate and Other 183 58 56 Total capital spending $ 490 $ 270 $ 233 Our reportable segments are business units that offer different products and services and are managed separately because each business requires different manufacturing, technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to our Consolidated Financial Statements. We measure the financial results of our reportable segments using an internal performance measure that excludes acquisition and integration-related charges, restructuring related charges, reserves for certain product recall matters, reserves for certain legal and regulatory matters and a donation to an educational institution. Identifiable assets are those assets used exclusively in the operations of each business segment or allocated when used jointly. Corporate assets are principally cash and cash equivalents, marketable securities and property, plant and equipment. The countries in which we have local revenue generating operations have been combined into the following geographic areas: the United States (including Puerto Rico); Europe, Middle East, Africa; Asia Pacific; and other foreign countries, which include Canada and countries in the Latin American region. Net sales are attributable to a geographic area based upon the customer's country of domicile. Geographic Information Net Sales Net Property, Plant and Equipment 2016 2015 2014 2016 2015 United States $ 8,247 $ 7,116 $ 6,558 $ 941 $ 626 Europe, Middle East, Africa 1,442 1,267 1,371 493 432 Asia Pacific 1,314 1,251 1,368 105 116 Other foreign countries 322 312 378 30 25 Total $ 11,325 $ 9,946 $ 9,675 $ 1,569 $ 1,199

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