Stryker Corp. (SYK)

Income Statement

Difficulty: Beginner

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Stryker Corp., consolidated income statement

US$ in millions

12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
Net sales	13,601	12,444	11,325	9,946	9,675
Cost of sales	(4,663)	(4,271)	(3,830)	(3,344)	(3,291)
Gross profit	8,938	8,173	7,495	6,602	6,384
Research, development and engineering expenses	(862)	(787)	(715)	(625)	(614)
Selling, general and administrative expenses	(5,099)	(4,552)	(4,137)	(3,610)	(3,575)
Recall charges, net of insurance proceeds	(23)	(173)	(158)	(296)	(761)
Amortization of intangible assets	(417)	(371)	(319)	(210)	(188)
Operating expenses	(6,401)	(5,883)	(5,329)	(4,741)	(5,138)
Operating income	2,537	2,290	2,166	1,861	1,246
Interest expense	(264)	(247)	(228)	(108)	(113)
Other income (expense), net	83	20	(17)	(18)	27
Earnings before income taxes	2,356	2,063	1,921	1,735	1,160
Income taxes	1,197	(1,043)	(274)	(296)	(645)
Net earnings	3,553	1,020	1,647	1,439	515

Based on: 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11), 10-K (filing date: 2015-02-12).

Income statement item	Description	The company
Net sales	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Stryker Corp.’s net sales increased from 2016 to 2017 and from 2017 to 2018.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Stryker Corp.’s operating income increased from 2016 to 2017 and from 2017 to 2018.
Earnings before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Stryker Corp.’s earnings before income taxes increased from 2016 to 2017 and from 2017 to 2018.
Net earnings	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Stryker Corp.’s net earnings declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.