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  "documentTitle": "Stryker Corp. (SYK)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2022-04-06 00:00:00",
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      "text": "Given our findings of goodwill impairments being recognized in foreign subsidiaries, but not at the consolidated level, Spruce Point finds it curious that Stryker recently updated its discussion of goodwill impairment testing in its 2021 Annual Report. The testing now states that it “periodically corroborates its assessment with quantitative information.” We view this as a stronger indicator that it is looking more carefully at goodwill impairment. We believe qualitative testing is more subjective relative to quantitative testing and may have allowed Stryker to defer impairments.",
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      "text": "We view this as a stronger indicator that it is looking more carefully at goodwill impairment. We believe qualitative testing is more subjective relative to quantitative testing and may have allowed Stryker to defer impairments.",
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      "text": "“Goodwill, Intangibles and Long-Lived Asset Impairment Tests: We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill and periodically corroborate that assessment with quantitative information. In certain circumstances, we may also utilize a discounted cash flow analysis that requires certain assumptions and estimates be made regarding market conditions and our future profitability. Indefinite-lived intangible assets are also tested at least annually for impairment by comparing the individual carrying values to the fair value.\n\nWe review long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows. Undiscounted cash flows expected to be generated by the related assets are estimated over the asset's useful life based on updated projections. If the evaluation indicates that the carrying amount of the asset may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique. Assets classified as held for sale are recorded at the lower of carrying amount or fair value less costs to sell.”",
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      "text": "Goodwill, Intangibles and Long-Lived Asset Impairment Tests: We perform our annual impairment test for goodwill in the fourth quarter of each year. We consider qualitative indicators of the fair value of a reporting unit when it is unlikely that a reporting unit has impaired goodwill and periodically corroborate that assessment with quantitative information. — Stryker 2021 10-K",
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      "text": "Source: Stryker 2021 10-K vs. 2020 10-K",
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      "text": "Subtle Change To Goodwill Impairment Testing Methodology",
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