v3.25.4
Retirement Plans
 12 Months Ended
Dec. 31, 2025
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.
2025
2024
2023
Plan expense
$399
$376
$327
Expense funded with Stryker common stock
72
62
57
Stryker common stock held by plan:
Dollar amount
$763
$781
$649
Shares (in millions)
2.2
2.2
2.2
Value as a percentage of total plan assets
8%
10%
10%
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:
2025
2024
2023
Service cost
$(42)
$(39)
$(32)
Interest cost
(24)
(21)
(23)
Expected return on plan assets
22
19
18
Amortization of prior service credit
2
1
1
Recognized actuarial gain (loss)
(2)
(1)
4
Net periodic benefit cost
$(44)
$(41)
$(32)
Changes in assets and benefit obligations
recognized in OCI:
Net actuarial gain (loss)
$93
$43
$(67)
Recognized net actuarial (gain) loss
2
1
(4)
Prior service credit and transition amount
(2)
(1)
(1)
Total recognized in other comprehensive
income (loss)
$93
$43
$(72)
Total recognized in net periodic benefit cost
and OCI
$49
$2
$(104)
Weighted-average rates used to determine net
periodic benefit cost:
Discount rate
2.9%
2.8%
3.3%
Expected return on plan assets
4.1%
4.3%
4.2%
Rate of compensation increase
2.9%
3.0%
3.0%
Weighted-average discount rate used to
determine projected benefit obligations
3.6%
2.9%
2.8%
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.
2025
2024
Fair value of plan assets
$560
$492
Benefit obligations
(829)
(782)
Funded status
$(269)
$(290)
Reported as:
Noncurrent assets—other assets
$72
$48
Current liabilities—accrued compensation
(5)
(3)
Noncurrent liabilities—other liabilities
(336)
(335)
Pre-tax amounts recognized in AOCI:
Unrecognized net actuarial gain (loss)
101
6
Unrecognized prior service credit
8
8
Total
$109
$14
Change in Benefit Obligations
2025
2024
Beginning projected benefit obligations
$782
$826
Service cost
42
39
Interest cost
24
21
Foreign exchange impact and other
114
(52)
Employee contributions
9
7
Actuarial (gains) losses
(116)
(40)
Benefits paid
(26)
(19)
Ending projected benefit obligations
$829
$782
Ending accumulated benefit obligations
$786
$748
Change in Plan Assets
2025
2024
Beginning fair value of plan assets
$492
$485
Actual return
(3)
22
Employer contributions
23
23
Employee contributions
9
7
Foreign exchange impact
60
(31)
Benefits paid
(21)
(14)
Ending fair value of plan assets
$560
$492
Allocation of Plan Assets
2026 Target
2025 Actual
2024 Actual
Equity securities
26%
32%
28%
Debt securities
41
39
40
Other
33
29
32
Total
100%
100%
100%
Valuation of Plan Assets
2025
Level 1
Level 2
Level 3
Total
Cash and cash equivalents
$16
$—
$—
$16
Equity securities
9
162
—
171
Debt securities
2
230
—
232
Other
4
83
54
141
Total
$31
$475
$54
$560
2024
Level 1
Level 2
Level 3
Total
Cash and cash equivalents
$17
$—
$—
$17
Equity securities
8
125
—
133
Debt securities
2
203
—
205
Other
4
76
57
137
Total
$31
$404
$57
$492
Our Level 3 pension plan assets primarily include guaranteed
investment contracts with insurance companies. The insurance
contracts guarantee us principal repayment and a fixed rate of
return. The $3 decrease in Level 3 pension plan assets is
primarily driven by the change in the corresponding pension
liability. We expect to contribute $24 to our defined benefit
pension plans in 2026.
Estimated Future Benefit Payments
2026
2027
2028
2029
2030
2031-2035
$29
$32
$33
$34
$38
$223