STRYKER

2016 FORM 10-K

Issue link: http://catalog.e-digitaleditions.com/i/801339

Contents of this Issue

Navigation

Page 7 of 43

STRYKER CORPORATION 2016 Form 10-K Dollar amounts in millions except per share amounts or as otherwise specified. 6 An inability to successfully manage the implementation of our 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. Any disruptions, delays or deficiencies in the design and implementation of our new ERP system could adversely affect our ability to process orders, ship products, provide services and customer support, send invoices and track payments, fulfill contractual obligations or otherwise operate our business. 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. Interruption of manufacturing operations could adversely affect our business: We and our suppliers have manufacturing sites all over the world; however, the manufacturing of certain of our product lines is concentrated in one or more plants. Damage to these facilities or issues in our manufacturing arising from a failure to follow specific internal protocols and procedures, compliance concerns relating to the quality systems regulation, equipment breakdown or malfunction or other factors could adversely affect the availability of our products. In the event of an interruption in manufacturing, we may be unable to move quickly to alternate means of producing affected products to meet customer demand. In the event of a significant interruption, we may experience lengthy delays in resuming production of affected products due to the need for regulatory approvals. We may experience loss of market share, additional expense and harm to our reputation. We use a variety of raw materials, components or devices in our global supply chains, production and distribution processes; significant shortages or price increases could increase our operating costs, require significant capital expenditures, or adversely impact the competitive position of our products: Our reliance on certain suppliers to secure raw materials, components and finished devices exposes us to product shortages and unanticipated increases in prices. In addition, several raw materials, components, and finished devices are procured from a sole-source due to the quality considerations, unique intellectual property considerations or constraints associated with regulatory requirements. If sole-source suppliers are acquired or were unable or unwilling to deliver these materials, we may not be able to manufacture or have available one or more products during such period of unavailability and our business could suffer. In certain cases we may not be able to establish additional or replacement suppliers for such materials in a timely or cost effective manner, largely as a result of FDA and other regulations that require, among other things, validation of materials and components prior to their use in our products. ITEM 1B. UNRESOLVED STAFF COMMENTS. None. ITEM 2. PROPERTIES. Principal Manufacturing and Distribution Locations Location Segment Approximate Square Feet Owned/ Leased Portage/Kalamazoo, Michigan M 1,033,000 Owned Changzhou, China O & NS 889,000 Owned Chicago, Illinois M & NS 610,000 Owned Plainfield, Indiana O, M & NS 600,000 Leased Mahwah, New Jersey O 531,000 Owned Redmond, Washington M 291,000 Owned Tuttlingen, Germany M 279,000 Leased Kayseri, Turkey M 259,000 Owned Carrigtwohill, Ireland O & M 248,000 Owned Arroyo, Puerto Rico M 220,000 Leased Venlo, Netherlands O, M & NS 200,000 Owned San Jose, California M 185,000 Leased Kiel, Germany O 174,000 Owned Fremont, California M & NS 168,000 Leased Suzhou, China O & NS 160,000 Owned West Valley/ Salt Lake City, Utah M & O 141,000 Leased Limerick Ireland O 140,000 Owned Selzach, Switzerland O 138,000 Owned Lakeland, Florida M 119,000 Leased Flower Mound, Texas M 108,000 Leased Malvern, Pennsylvania O 107,000 Leased Freiburg, Germany O 106,000 Owned Phoenix, Arizona M 100,000 Leased Newbury, United Kingdom M 99,000 Owned Carrigtwohill, Ireland NS 97,000 Leased Neuchatel, Switzerland NS 88,000 Owned Tijuana, Mexico M 83,000 Leased Cestas, France NS 79,000 Owned Ontario, Canada M 75,000 Leased Fort Lauderdale, Florida O 68,000 Leased Freiburg, Germany O 62,000 Leased Mountain View, California M & NS 62,000 Leased O = Orthopaedics M = MedSurg NS = Neurotechnology and Spine Our corporate headquarters is located in Kalamazoo, Michigan, and 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 the matters that are more fully described in Note 6 to our Consolidated Financial Statements. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable.

Articles in this issue

view archives of STRYKER - 2016 FORM 10-K