XML 47 R21.htm IDEA: XBRL DOCUMENT
v3.22.4

Retirement Plans | 12 Months Ended
--- | ---
Dec. 31, 2022
Retirement Benefits [Abstract] |
Retirement Plans | RETIREMENT PLANS Defined Contribution Plans We provide certain employees with defined contribution plans and other types of retirement plans. A portion of our retirement plan expense under the defined contribution plans is funded with Stryker common stock. The use of Stryker common stock represents a non-cash operating activity that is not reflected in our Consolidated Statements of Cash Flows.
| 2022 |  | 2021 |  | 2020
Plan expense | $ | 305 |  |  | $ | 259 |  |  | $ | 235 |
Expense funded with Stryker common stock | 41 |  |  | 37 |  |  | 34 |
Stryker common stock held by plan: |  |  |  |  |
Dollar amount | 522 |  |  | 582 |  |  | 542 |
Shares (in millions) | 2.1 |  |  | 2.2 |  |  | 2.2 |
Value as a percentage of total plan assets | 10 | % |  | 10 | % |  | 11 | %
Defined Benefit Plans Certain of our subsidiaries have both funded and unfunded defined benefit pension plans covering some or all of their employees. The majority of our defined benefit pension plans have projected benefit obligations in excess of plan assets. Discount Rate The discount rates were selected using a hypothetical portfolio of high quality bonds on December 31 that would provide the necessary cash flows to match our projected benefit payments. Expected Return on Plan Assets The expected return on plan assets is determined by applying the target allocation in each asset category of plan investments to the anticipated return for each asset category based on historical and projected returns.
Components of Net Periodic Pension Cost
Net periodic benefit cost: | 2022 |  | 2021 |  | 2020
Service cost | $ | (56) |  |  | $ | (72) |  |  | $ | (63) |
Interest cost | (10) |  |  | (7) |  |  | (8) |
Expected return on plan assets | 15 |  |  | 11 |  |  | 13 |
Amortization of prior service credit | 1 |  |  | 1 |  |  | 1 |
Recognized actuarial loss | (9) |  |  | (16) |  |  | (13) |
Curtailment gain | — |  |  | 9 |  |  | — |
Net periodic benefit cost | $ | (59) |  |  | $ | (74) |  |  | $ | (70) |
Changes in assets and benefit obligations recognized in OCI: |  |  |  |  |
Net actuarial gain (loss) | $ | 244 |  |  | $ | 132 |  |  | $ | (117) |
Recognized net actuarial loss | 9 |  |  | 16 |  |  | 13 |
Prior service credit and transition amount | (1) |  |  | (1) |  |  | (1) |
Curtailment gain | — |  |  | (9) |  |  | — |
Total recognized in other comprehensive income (loss) | $ | 252 |  |  | $ | 138 |  |  | $ | (105) |
Total recognized in net periodic benefit cost and OCI | $ | 193 |  |  | $ | 64 |  |  | $ | (175) |
Weighted-average rates used to determine net periodic benefit cost: |  |  |  |  |
Discount rate | 1.1 | % |  | 0.8 | % |  | 1.0 | %
Expected return on plan assets | 3.1 | % |  | 2.5 | % |  | 2.9 | %
Rate of compensation increase | 2.6 | % |  | 2.6 | % |  | 2.9 | %
Weighted-average discount rate used to determine projected benefit obligations | 3.3 | % |  | 1.1 | % |  | 0.8 | %
The actuarial gain (loss) for all pension plans was primarily related to a change in the discount rate used to measure the benefit obligations of those plans. Investment Strategy The investment strategy for our defined benefit pension plans is to meet the liabilities of the plans as they fall due and to maximize the return on invested assets within appropriate risk tolerances.
| 2022 |  | 2021
Fair value of plan assets | $ | 420 |  |  | $ | 543 |
Benefit obligations | (673) |  |  | (1,036) |
Funded status | $ | (253) |  |  | $ | (493) |
Reported as: |  |  |
Noncurrent assets—other assets | $ | 21 |  |  | $ | — |
Current liabilities—accrued compensation | (3) |  |  | (2) |
Noncurrent liabilities—other liabilities | (271) |  |  | (491) |
Pre-tax amounts recognized in AOCI: |  |  |
Unrecognized net actuarial gain (loss) | 33 |  |  | (215) |
Unrecognized prior service credit | 11 |  |  | 7 |
Total | $ | 44 |  |  | $ | (208) |
Change in Benefit Obligations |  |  |
| 2022 |  | 2021
Beginning projected benefit obligations | $ | 1,036 |  |  | $ | 1,118 |
Service cost | 56 |  |  | 72 |
Interest cost | 10 |  |  | 7 |
Foreign exchange impact | (56) |  |  | (70) |
Employee contributions | 5 |  |  | 8 |
Actuarial (gains) losses | (354) |  |  | (71) |
Curtailment gain | — |  |  | (23) |
Benefits paid | (24) |  |  | (5) |
Ending projected benefit obligations | $ | 673 |  |  | $ | 1,036 |
Ending accumulated benefit obligations | $ | 645 |  |  | $ | 987 |
Change in Plan Assets |  |  |
| 2022 |  | 2021
Beginning fair value of plan assets | $ | 543 |  |  | $ | 522 |
Actual return | (109) |  |  | 17 |
Employer contributions | 19 |  |  | 33 |
Employee contributions | 5 |  |  | 8 |
Foreign exchange impact | (24) |  |  | (29) |
Benefits paid | (14) |  |  | (8) |
Ending fair value of plan assets | $ | 420 |  |  | $ | 543 |
Allocation of Plan Assets
| 2023 Target |  | 2022 Actual |  | 2021 Actual
Equity securities | 25 | % |  | 27 | % |  | 23 | %
Debt securities | 41 |  |  | 38 |  |  | 41 |
Other | 34 |  |  | 35 |  |  | 36 |
Total | 100 | % |  | 100 | % |  | 100 | %
Valuation of Plan Assets
2022 | Level 1 | Level 2 | Level 3 | Total
Cash and cash equivalents | $ | 18 |  | $ | — |  | $ | — |  | $ | 18 |
Equity securities | 21 |  | 99 |  | — |  | 120 |
Corporate debt securities | 2 |  | 151 |  | — |  | 153 |
Other | 5 |  | 69 |  | 55 |  | 129 |
Total | $ | 46 |  | $ | 319 |  | $ | 55 |  | $ | 420 |
2021 |  |  |  |
Cash and cash equivalents | $ | 21 |  | $ | — |  | $ | — |  | $ | 21 |
Equity securities | 28 |  | 119 |  | — |  | 147 |
Corporate debt securities | 2 |  | 202 |  | — |  | 204 |
Other | 4 |  | 68 |  | 99 |  | 171 |
Total | $ | 55 |  | $ | 389 |  | $ | 99 |  | $ | 543 |
Our Level 3 pension plan assets consist primarily of guaranteed investment contracts with insurance companies. The insurance contracts guarantee us principal repayment and a fixed rate of return. The $44 decrease in Level 3 pension plan assets is primarily driven by the change in the corresponding pension liability. We expect to contribute $19 to our defined benefit pension plans in 2023.
Estimated Future Benefit Payments
2023 | 2024 | 2025 | 2026 | 2027 | 2028-2032
$ | 22 |  | $ | 26 |  | $ | 23 |  | $ | 23 |  | $ | 25 |  | $ | 146 |

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI https://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration