Stryker Corp. (SYK)
Analysis of Revenues
High level of difficulty
Accounting Policy on Revenue Recognition
Sales are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration Stryker expects to receive in exchange for satisfying the performance obligations. The sales continue to be recognized primarily when Stryker transfers control to the customer, which can be on the date of shipment, the date of receipt by the customer or, for most Orthopaedics products, when Stryker has received a purchase order and appropriate notification the product has been used or implanted. Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time. A provision for estimated sales returns, discounts and rebates is recognized as a reduction of sales in the same period that the sales are recognized. Stryker’s estimate of the provision for sales returns has been established based on contract terms with the customers and historical business practices and current trends. Shipping and handling costs charged to customers are included in net sales.
Source: 10-K (filing date: 2019-02-07).
Revenues as Reported
Stryker Corp., Income Statement, Revenues
US$ in millions
|12 months ended||Dec 31, 2018||Dec 31, 2017||Dec 31, 2016||Dec 31, 2015||Dec 31, 2014|
|Neurotechnology & Spine|
|Net sales||Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).||Stryker Corp.’s net sales increased from 2016 to 2017 and from 2017 to 2018.|