Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'ZMH | ' | ' |
Entity Registrant Name | 'ZIMMER HOLDINGS INC | ' | ' |
Entity Central Index Key | '0001136869 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 169,316,092 | ' |
Entity Public Float | ' | ' | $12,648,249,024 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net Sales | $4,623.40 | $4,471.70 | $4,451.80 |
Cost of products sold | 1,286.10 | 1,125.20 | 1,122 |
Gross Profit | 3,337.30 | 3,346.50 | 3,329.80 |
Research and development | 204.2 | 225.6 | 238.4 |
Selling, general and administrative | 1,833.80 | 1,807.10 | 1,834.30 |
Certain claims (Note 19) | 47 | 15 | 157.8 |
Goodwill impairment (Note 8) | ' | 96 | ' |
Special items (Note 2) | 216.7 | 155.4 | 75.2 |
Operating expenses | 2,301.70 | 2,299.10 | 2,305.70 |
Operating Profit | 1,035.60 | 1,047.40 | 1,024.10 |
Interest income | 15.6 | 15.6 | 10.1 |
Interest expense | -70.1 | -72.9 | -55.3 |
Earnings before income taxes | 981.1 | 990.1 | 978.9 |
Provision for income taxes | 221.9 | 237.2 | 218.9 |
Net earnings | 759.2 | 752.9 | 760 |
Less: Net loss attributable to noncontrolling interest | -1.8 | -2.1 | -0.8 |
Net Earnings of Zimmer Holdings, Inc. | $761 | $755 | $760.80 |
Earnings Per Common Share - Basic | $4.49 | $4.32 | $4.05 |
Earnings Per Common Share - Diluted | $4.43 | $4.29 | $4.03 |
Weighted Average Common Shares Outstanding | ' | ' | ' |
Basic | 169.6 | 174.9 | 187.6 |
Diluted | 171.8 | 176 | 188.7 |
Cash Dividends Declared Per Common Share | $0.80 | $0.54 | $0.18 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net earnings | $759.20 | $752.90 | $760 |
Other Comprehensive Income (Loss): | ' | ' | ' |
Foreign currency cumulative translation adjustments | -44.4 | 46.1 | 4.6 |
Unrealized cash flow hedge gains/(losses), net of tax | 33.4 | 10.9 | -30.6 |
Reclassification adjustments on cash flow hedges, net of tax | -4.4 | 3.3 | 24.5 |
Unrealized gains/(losses) on securities, net of tax | 0.1 | 0.4 | 0.2 |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 38.5 | 11.8 | -48.3 |
Total Other Comprehensive Income (Loss) | 23.2 | 72.5 | -49.6 |
Comprehensive Income | 782.4 | 825.4 | 710.4 |
Comprehensive Loss Attributable to Noncontrolling Interest | -2 | -2.2 | -0.9 |
Comprehensive Income Attributable to Zimmer Holdings, Inc. | $784.40 | $827.60 | $711.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $1,080.60 | $884.30 |
Short-term investments | 727 | 671.6 |
Accounts receivable, less allowance for doubtful accounts | 936.6 | 884.6 |
Inventories | 1,074.50 | 995.3 |
Prepaid expenses and other current assets | 107.1 | 76.3 |
Deferred income taxes | 271.9 | 196.6 |
Total Current Assets | 4,197.70 | 3,708.70 |
Property, plant and equipment, net | 1,224.70 | 1,210.70 |
Goodwill | 2,611.20 | 2,571.80 |
Intangible assets, net | 707.7 | 740.7 |
Other assets | 839.3 | 780.5 |
Total Assets | 9,580.60 | 9,012.40 |
Current Liabilities: | ' | ' |
Accounts payable | 146.3 | 184.1 |
Income taxes | 221.2 | 22.8 |
Short-term debt | 0.5 | 100.1 |
Other current liabilities | 663.6 | 559 |
Total Current Liabilities | 1,031.60 | 866 |
Other long-term liabilities | 576.6 | 559.3 |
Long-term debt | 1,672.30 | 1,720.80 |
Total Liabilities | 3,280.50 | 3,146.10 |
Commitments and Contingencies (Note 19) | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, $0.01 par value, one billion shares authorized, 264.3 million (257.1 million in 2012) issued | 2.6 | 2.6 |
Paid-in capital | 4,000.60 | 3,500.60 |
Retained earnings | 7,712.70 | 7,085.90 |
Accumulated other comprehensive income | 367.1 | 343.9 |
Treasury stock, 94.5 million shares (85.5 million shares in 2012) | -5,785.70 | -5,072.10 |
Total Zimmer Holdings, Inc. stockholders' equity | 6,297.30 | 5,860.90 |
Noncontrolling interest | 2.8 | 5.4 |
Total Stockholders' Equity | 6,300.10 | 5,866.30 |
Total Liabilities and Stockholders' Equity | $9,580.60 | $9,012.40 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 264,300,000 | 257,100,000 |
Treasury stock, shares | 94,500,000 | 85,500,000 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Shares [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Shares [Member] | Noncontrolling Interest [Member] |
In Millions | |||||||
Balance at Dec. 31, 2010 | $5,771.30 | $2.50 | $3,293.50 | $5,699.40 | $321 | ($3,545.10) | ' |
Balance, shares at Dec. 31, 2010 | ' | 254.6 | ' | ' | ' | -59 | ' |
Net earnings | 760 | ' | ' | 760.8 | ' | ' | -0.8 |
Other comprehensive Income (loss) | -49.7 | ' | ' | ' | -49.6 | ' | -0.1 |
Business combination with a noncontrolling interest | 8.5 | ' | ' | ' | ' | ' | 8.5 |
Cash dividends declared | -32.1 | ' | ' | -32.1 | ' | ' | ' |
Stock compensation plans, including tax benefits | 106.8 | ' | 105.7 | -1.3 | ' | 2.4 | ' |
Stock compensation plans, including tax benefits, shares | ' | 1.3 | ' | ' | ' | ' | ' |
Share repurchases | -1,050 | ' | ' | ' | ' | -1,050 | ' |
Share repurchases, shares | ' | ' | ' | ' | ' | -18.9 | ' |
Balance at Dec. 31, 2011 | 5,514.80 | 2.5 | 3,399.20 | 6,426.80 | 271.4 | -4,592.70 | 7.6 |
Balance, shares at Dec. 31, 2011 | ' | 255.9 | ' | ' | ' | -77.9 | ' |
Net earnings | 752.9 | ' | ' | 755 | ' | ' | -2.1 |
Other comprehensive Income (loss) | 72.4 | ' | ' | ' | 72.5 | ' | -0.1 |
Cash dividends declared | -93.3 | ' | ' | -93.3 | ' | ' | ' |
Stock compensation plans, including tax benefits | 105.1 | 0.1 | 101.4 | -2.6 | ' | 6.2 | ' |
Stock compensation plans, including tax benefits, shares | ' | 1.2 | ' | ' | ' | 0.1 | ' |
Share repurchases | -485.6 | ' | ' | ' | ' | -485.6 | ' |
Share repurchases, shares | ' | ' | ' | ' | ' | -7.7 | ' |
Balance at Dec. 31, 2012 | 5,866.30 | 2.6 | 3,500.60 | 7,085.90 | 343.9 | -5,072.10 | 5.4 |
Balance, shares at Dec. 31, 2012 | ' | 257.1 | ' | ' | ' | -85.5 | ' |
Net earnings | 759.2 | ' | ' | 761 | ' | ' | -1.8 |
Other comprehensive Income (loss) | 23 | ' | ' | ' | 23.2 | ' | -0.2 |
Purchase of additional shares from noncontrolling interest | -1.7 | ' | -1.1 | ' | ' | ' | -0.6 |
Cash dividends declared | -135.4 | ' | ' | -135.4 | ' | ' | ' |
Stock compensation plans, including tax benefits | 507.7 | ' | 501.1 | 1.2 | ' | 5.4 | ' |
Stock compensation plans, including tax benefits, shares | ' | 7.2 | ' | ' | ' | 0.1 | ' |
Share repurchases | -719 | ' | ' | ' | ' | -719 | ' |
Share repurchases, shares | -9.1 | ' | ' | ' | ' | -9.1 | ' |
Balance at Dec. 31, 2013 | $6,300.10 | $2.60 | $4,000.60 | $7,712.70 | $367.10 | ($5,785.70) | $2.80 |
Balance, shares at Dec. 31, 2013 | ' | 264.3 | ' | ' | ' | -94.5 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows provided by (used in) operating activities: | ' | ' | ' |
Net earnings | $759.20 | $752.90 | $760 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 358.5 | 363.1 | 359.9 |
Goodwill impairment | ' | 96 | ' |
Share-based compensation | 48.5 | 55 | 60.5 |
Income tax benefit from stock option exercises | 38.4 | 11 | 12.9 |
Excess income tax benefit from stock option exercises | -8.6 | -2.7 | -5 |
Inventory step-up | 8 | 4.8 | 11.4 |
Deferred income tax provision | -126.2 | -64.8 | -19.7 |
Changes in operating assets and liabilities, net of acquired assets and liabilities | ' | ' | ' |
Income taxes payable | 96.8 | 59.2 | 14.6 |
Receivables | -74.3 | -45.5 | -63.2 |
Inventories | -128.4 | -67.5 | 7.2 |
Accounts payable and accrued liabilities | 38.3 | 47.8 | 20 |
Other assets and liabilities | -47.1 | -57.4 | 18.3 |
Net cash provided by operating activities | 963.1 | 1,151.90 | 1,176.90 |
Cash flows provided by (used in) investing activities: | ' | ' | ' |
Additions to instruments | -192.9 | -148.9 | -155.4 |
Additions to other property, plant and equipment | -100 | -114.7 | -113.8 |
Purchases of investments | -732.7 | -1,130.10 | -662.1 |
Sales of investments | 830.8 | 878.5 | 394.8 |
Business combination investments | -74.2 | -59 | -56.8 |
Investments in other assets | -13.5 | -17.9 | -31.1 |
Net cash used in investing activities | -282.5 | -592.1 | -624.4 |
Cash flows provided by (used in) financing activities: | ' | ' | ' |
Proceeds from issuance of notes | ' | ' | 549.3 |
Net proceeds (payments) under revolving credit facilities | -97.5 | -50.1 | 0.5 |
Proceeds from term loans | ' | 147.3 | ' |
Dividends paid to stockholders | -132.4 | -94.4 | ' |
Debt issuance costs | ' | -3.3 | -4 |
Proceeds from employee stock compensation plans | 474.8 | 46.9 | 43.4 |
Excess income tax benefit from stock option exercises | 8.6 | 2.7 | 5 |
Purchase of additional shares from noncontrolling interest | -1.8 | ' | ' |
Repurchase of common stock | -719 | -485.6 | -1,050 |
Net cash used in financing activities | -467.3 | -436.5 | -455.8 |
Effect of exchange rates on cash and cash equivalents | -17 | -7.3 | 2.7 |
Increase in cash and cash equivalents | 196.3 | 116 | 99.4 |
Cash and cash equivalents, beginning of year | 884.3 | 768.3 | 668.9 |
Cash and cash equivalents, end of year | $1,080.60 | $884.30 | $768.30 |
BUSINESS
BUSINESS | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
BUSINESS | ' | |
1 | BUSINESS | |
We design, develop, manufacture and market orthopaedic reconstructive, spinal and trauma devices, biologics, dental implants and related surgical products. We also provide other healthcare related services. Orthopaedic reconstructive devices restore function lost due to disease or trauma in joints such as knees, hips, shoulders and elbows. Dental reconstructive implants restore function and aesthetics in patients who have lost teeth due to trauma or disease. Spinal devices are utilized by orthopaedic surgeons and neurosurgeons in the treatment of degenerative diseases, deformities and trauma in all regions of the spine. Trauma products are devices used primarily to reattach or stabilize damaged bone and tissue to support the body’s natural healing process. Our related surgical products include surgical supplies and instruments designed to aid in orthopaedic surgical procedures and post-operation rehabilitation. We have operations in more than 25 countries and market our products in more than 100 countries. We operate in a single industry but have three reportable geographic segments, the Americas, Europe and Asia Pacific. | ||
The words “we,” “us,” “our” and similar words refer to Zimmer Holdings, Inc. and its subsidiaries. Zimmer Holdings refers to the parent company only. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
2 | SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Basis of Presentation – The consolidated financial statements include the accounts of Zimmer Holdings and its subsidiaries in which it holds a controlling financial interest. All significant intercompany accounts and transactions are eliminated. The consolidated financial statements for some of our international subsidiaries are for an annual period that ended on December 25, 2013, 2012 and 2011. Certain amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation. | |||||||||||||
Use of Estimates – The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the U.S. which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Foreign Currency Translation – The financial statements of our foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive income in stockholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, we recognize a transaction gain or loss when the transaction is settled. Foreign currency transaction gains and losses included in net earnings for the years ended December 31, 2013, 2012 and 2011 were not significant. | |||||||||||||
Revenue Recognition – We sell product through three principal channels: 1) direct to healthcare institutions, referred to as direct channel accounts; 2) through stocking distributors and healthcare dealers; and 3) directly to dental practices and dental laboratories. The direct channel accounts represented approximately 80 percent of our net sales in 2013. Through this channel, inventory is generally consigned to sales agents or customers so that products are available when needed for surgical procedures. No revenue is recognized upon the placement of inventory into consignment as we retain title and maintain the inventory on our balance sheet. Upon implantation, we issue an invoice and revenue is recognized. Pricing for products is generally predetermined by contracts with customers, agents acting on behalf of customer groups or by government regulatory bodies, depending on the market. Price discounts under group purchasing contracts are generally linked to volume of implant purchases by customer healthcare institutions within a specified group. At negotiated thresholds within a contract buying period, price discounts may increase. | |||||||||||||
Sales to stocking distributors, healthcare dealers, dental practices and dental laboratories accounted for approximately 20 percent of our net sales in 2013. With these types of sales, revenue is recognized when title to product passes, either upon shipment of the product or in some cases upon implantation of the product. Product is generally sold at contractually fixed prices for specified periods. Payment terms vary by customer, but are typically less than 90 days. | |||||||||||||
If sales incentives are earned by a customer for purchasing a specified amount of our product, we estimate whether such incentives will be achieved and, if so, recognize these incentives as a reduction in revenue in the same period the underlying revenue transaction is recognized. Occasionally products are returned and, accordingly, we maintain an estimated sales return reserve that is recorded as a reduction in revenue. Product returns were not significant for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Taxes collected from customers and remitted to governmental authorities are presented on a net basis and excluded from revenues. | |||||||||||||
Shipping and Handling – Amounts billed to customers for shipping and handling of products are reflected in net sales and are not significant. Expenses incurred related to shipping and handling of products are reflected in selling, general and administrative and were $163.6 million, $139.5 million and $142.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Research and Development – We expense all research and development costs as incurred. Research and development costs include salaries, prototypes, depreciation of equipment used in research and development, consultant fees and service fees paid to collaborative partners. Where contingent milestone payments are due to third parties under research and development arrangements, the milestone payment obligations are expensed when the milestone results are achieved. | |||||||||||||
Litigation – We record a liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. | |||||||||||||
Special Items – We recognize expenses resulting directly from our business combinations, employee termination benefits, certain R&D agreements, certain contract terminations, consulting and professional fees and asset impairment or loss on disposal charges connected with global restructuring, operational and quality excellence initiatives, and other items as “Special items” in our consolidated statement of earnings. “Special items” included (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Impairment/loss on disposal of assets | $ | 10.9 | $ | 14.6 | $ | 8.4 | |||||||
Consulting and professional fees | 99.1 | 90.1 | 26 | ||||||||||
Employee severance and retention, including share-based compensation acceleration | 14.2 | 8.2 | 23.1 | ||||||||||
Dedicated project personnel | 34 | 15.1 | 3.2 | ||||||||||
Certain R&D agreements | 0.8 | – | – | ||||||||||
Relocated facilities | 3.6 | 1.8 | – | ||||||||||
Distributor acquisitions | 0.4 | 0.8 | 2 | ||||||||||
Certain litigation matters | 26.9 | 13.7 | 0.1 | ||||||||||
Contract terminations | 3.9 | 6.6 | 6.3 | ||||||||||
Contingent consideration adjustments | 9 | (2.8 | ) | – | |||||||||
Accelerated software amortization | 6 | 4.5 | – | ||||||||||
Other | 7.9 | 2.8 | 6.1 | ||||||||||
Special items | $ | 216.7 | $ | 155.4 | $ | 75.2 | |||||||
Impairment/ loss on disposal of assets relates to impairment of intangible assets that were acquired in business combinations or impairment of or a loss on the disposal of other assets. | |||||||||||||
Consulting and professional fees relate to third-party consulting, professional fees and contract labor related to our quality and operational excellence initiatives, third-party consulting fees related to certain information system implementations, third-party integration consulting performed in a variety of areas such as tax, compliance, logistics and human resources for our business combinations, third-party fees related to severance and termination benefits matters and legal fees related to certain product liability matters. Our quality and operational excellence initiatives are company-wide and include improvements in quality, distribution, sourcing, manufacturing and information technology, among other areas. | |||||||||||||
In 2013, 2012 and 2011, we eliminated positions as we reduced management layers, restructured certain areas, announced closures of certain facilities, and commenced initiatives to focus on business opportunities that best support our strategic priorities. In 2013, 2012 and 2011, approximately 170, 400 and 500 positions, respectively, from across the globe were affected by these actions. As a result of these changes in our work force and headcount reductions in connection with acquisitions, we incurred expenses related to severance benefits, redundant salaries as we worked through transition periods, share-based compensation acceleration and other employee termination-related costs. The majority of these termination benefits were provided in accordance with our existing or local government policies and are considered ongoing benefits. These costs were accrued when they became probable and estimable and were recorded as part of other current liabilities. The majority of these costs were paid during the year they were incurred. | |||||||||||||
Dedicated project personnel expenses include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our operational and quality excellence initiatives or integration of acquired businesses. | |||||||||||||
Certain R&D agreements relate to agreements with upfront payments to obtain intellectual property to be used in R&D projects that have no alternative future use in other projects. | |||||||||||||
Relocated facilities expenses are the moving costs and the lease expenses incurred during the relocation period in connection with relocating certain facilities. | |||||||||||||
Over the past few years we have acquired a number of U.S. and foreign-based distributors. We have incurred various costs related to the consummation and integration of those businesses. | |||||||||||||
Certain litigation matters relate to costs and adjustments recognized during the year for the estimated or actual settlement of various legal matters, including royalty disputes, patent litigation matters, commercial litigation matters and matters arising from our acquisitions of certain competitive distributorships in prior years. | |||||||||||||
Contract termination costs relate to terminated agreements in connection with the integration of acquired companies and changes to our distribution model as part of business restructuring and operational excellence initiatives. The terminated contracts primarily relate to sales agents and distribution agreements. | |||||||||||||
Contingent consideration adjustments represent the changes in the fair value of contingent consideration obligations to be paid to the prior owners of acquired businesses. | |||||||||||||
Accelerated software amortization is the incremental amortization resulting from a reduction in the estimated life of certain software. In 2012, we approved a plan to replace certain software. As a result, the estimated economic useful life of the existing software was decreased to represent the period of time expected to implement replacement software. As a result, the amortization from the shortened life of this software is substantially higher than the previous amortization being recognized. | |||||||||||||
Cash and Cash Equivalents – We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value. | |||||||||||||
Investments – We invest our excess cash and cash equivalents in debt securities. Our investments include corporate debt securities, U.S. government and agency debt securities, foreign government debt securities, commercial paper and certificates of deposit, and are classified and accounted for as available-for-sale. Available-for-sale debt securities are recorded at fair value on our consolidated balance sheet. Investments with a contractual maturity of less than one year are classified as short-term investments on our consolidated balance sheet, or in other non-current assets if the contractual maturity is greater than one year. Changes in fair value for available-for-sale securities are recorded, net of taxes, as a component of accumulated other comprehensive loss on our consolidated balance sheet. We review our investments for other-than-temporary impairment at each reporting period. If an unrealized loss for any investment is considered to be other-than-temporary, the loss will be recognized in the consolidated statement of earnings in the period the determination is made. See Note 7 for more information regarding our investments. | |||||||||||||
Accounts Receivable – Accounts receivable consists of trade and other miscellaneous receivables. We grant credit to customers in the normal course of business and maintain an allowance for doubtful accounts for potential credit losses. We determine the allowance for doubtful accounts by geographic market and take into consideration historical credit experience, creditworthiness of the customer and other pertinent information. We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off the account against the allowance when we determine the account is uncollectible. The allowance for doubtful accounts was $22.7 million and $22.8 million as of December 31, 2013 and 2012, respectively. | |||||||||||||
Inventories – Inventories are stated at the lower of cost or market, with cost determined on a first-in first-out basis. | |||||||||||||
Property, Plant and Equipment – Property, plant and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on estimated useful lives of ten to forty years for buildings and improvements and three to eight years for machinery and equipment. Maintenance and repairs are expensed as incurred. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. | |||||||||||||
Software Costs – We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs generally include external direct costs of materials and services utilized in developing or obtaining computer software and compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line or weighted average estimated user basis when the software is ready for its intended use over the estimated useful lives of the software, which approximate three to fifteen years. | |||||||||||||
Instruments – Instruments are hand-held devices used by surgeons during total joint replacement and other surgical procedures. Instruments are recognized as long-lived assets and are included in property, plant and equipment. Undeployed instruments are carried at cost or realizable value. Instruments in the field are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on average estimated useful lives, determined principally in reference to associated product life cycles, primarily five years. We review instruments for impairment whenever events or changes in circumstances indicate that the carrying value of an instrument may not be recoverable. Depreciation of instruments is recognized as selling, general and administrative expense. | |||||||||||||
Goodwill – Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. We perform annual impairment tests by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed, the fair value of the reporting unit and the implied fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as estimated growth rates and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the carrying value of the reporting unit’s assets may not be recoverable. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the reporting unit goodwill is less than the carrying value of the reporting unit goodwill. During the year ended December 31, 2012, we recorded a goodwill impairment charge of $96.0 million related to our U.S. Spine reporting unit. We did not record a goodwill impairment charge during the year ended December 31, 2013. See Notes 8 and 9 for more information regarding goodwill and goodwill impairment. | |||||||||||||
Intangible Assets – Intangible assets are initially measured at their fair value. We have determined the fair value of our intangible assets either by the fair value of the consideration exchanged for the intangible asset or the estimated after-tax discounted cash flows expected to be generated from the intangible asset. Intangible assets with an indefinite life, including certain trademarks and trade names, are not amortized. Indefinite life intangible assets are assessed annually to determine whether events and circumstances continue to support an indefinite life. Intangible assets with a finite life, including core and developed technology, certain trademarks and trade names, customer-related intangibles, intellectual property rights and patents and licenses are amortized on a straight-line basis over their estimated useful life, ranging from less than one year to 40 years. Intangible assets with a finite life are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||
Intangible assets with an indefinite life are tested for impairment annually or whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The amount of the impairment loss to be recorded would be determined based upon the excess of the asset’s carrying value over its fair value. The fair values of indefinite lived intangible assets are determined based upon a discounted cash flow analysis using the relief from royalty method or a qualitative assessment may be performed for any changes to the asset’s fair value from the last quantitative assessment. The relief from royalty method estimates the cost savings associated with owning, rather than licensing, assets. Significant assumptions are incorporated into these discounted cash flow analyses such as estimated growth rates, royalty rates and risk-adjusted discount rates. We may do a qualitative assessment when the results of the previous quantitative test indicated that the asset’s fair value was significantly in excess of its carrying value. | |||||||||||||
In determining the useful lives of intangible assets, we consider the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, we consider the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Trademarks and trade names that do not have a wasting characteristic (i.e., there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life) are assigned an indefinite life. Trademarks and trade names that are related to products expected to be phased out are assigned lives consistent with the period in which the products bearing each brand are expected to be sold. For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition. Intellectual property rights are assigned useful lives that approximate the contractual life of any related patent or the period for which we maintain exclusivity over the intellectual property. | |||||||||||||
Income Taxes – We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |||||||||||||
We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. Federal income taxes are provided on the portion of the income of foreign subsidiaries that is expected to be remitted to the U.S. | |||||||||||||
We operate on a global basis and are subject to numerous and complex tax laws and regulations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Because income tax adjustments in certain jurisdictions can be significant, we record accruals representing management’s best estimate of the probable resolution of these matters. To the extent additional information becomes available, such accruals are adjusted to reflect the revised estimated probable outcome. | |||||||||||||
Derivative Financial Instruments – We measure all derivative instruments at fair value and report them on our consolidated balance sheet as assets or liabilities. We maintain written policies and procedures that permit, under appropriate circumstances and subject to proper authorization, the use of derivative financial instruments solely for hedging purposes. The use of derivative financial instruments for trading or speculative purposes is prohibited by our policy. See Note 13 for more information regarding our derivative and hedging activities. | |||||||||||||
Other Comprehensive Income – Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to stockholders’ equity. Other comprehensive income is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, unrealized gains and losses on available-for-sale securities and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions. | |||||||||||||
Treasury Stock – We account for repurchases of common stock under the cost method and present treasury stock as a reduction of stockholders’ equity. We reissue common stock held in treasury only for limited purposes. | |||||||||||||
Noncontrolling Interest – In 2011, we made an investment in a company in which we acquired a controlling financial interest, but not 100 percent of the equity. In 2013, we purchased additional shares of the company from the minority shareholders. Further information related to the noncontrolling interests of that investment has not been provided as it is not significant to our consolidated financial statements. | |||||||||||||
Accounting Pronouncements – Effective January 1, 2013, we adopted the FASB’s Accounting Standard Updates (ASUs) requiring reporting of amounts reclassified out of accumulated other comprehensive income (OCI) and balance sheet offsetting between derivative assets and liabilities. These ASUs only change financial statement disclosure requirements and therefore do not impact our financial position, results of operations or cash flows. See Note 12 for disclosures relating to OCI. See Note 13 for disclosures relating to balance sheet offsetting. | |||||||||||||
There are no other recently issued accounting pronouncements that we have not yet adopted that are expected to have a material effect on our financial position, results of operations or cash flows. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
SHARE-BASED COMPENSATION | ' | ||||||||||||||||
3 | SHARE-BASED COMPENSATION | ||||||||||||||||
Our share-based payments primarily consist of stock options, restricted stock, restricted stock units (RSUs), and an employee stock purchase plan. Share-based compensation expense is as follows (in millions): | |||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Stock options | $ | 24.7 | $ | 32.4 | $ | 41.7 | |||||||||||
RSUs and other | 23.8 | 22.6 | 18.8 | ||||||||||||||
Total expense, pre-tax | 48.5 | 55 | 60.5 | ||||||||||||||
Tax benefit related to awards | (15.6 | ) | (16.6 | ) | (17.8 | ) | |||||||||||
Total expense, net of tax | $ | 32.9 | $ | 38.4 | $ | 42.7 | |||||||||||
Share-based compensation cost capitalized as part of inventory for the years ended December 31, 2013, 2012 and 2011 was $4.1 million, $6.1 million, and $8.8 million, respectively. As of December 31, 2013 and 2012, approximately $2.4 million and $3.3 million of capitalized costs remained in finished goods inventory. | |||||||||||||||||
Stock Options | |||||||||||||||||
We had two equity compensation plans in effect at December 31, 2013: the 2009 Stock Incentive Plan (2009 Plan) and the Stock Plan for Non-Employee Directors. The 2009 Plan succeeded the 2006 Stock Incentive Plan (2006 Plan) and the TeamShare Stock Option Plan (TeamShare Plan). No further awards have been granted under the 2006 Plan or under the TeamShare Plan since May 2009, and shares remaining available for grant under those plans have been merged into the 2009 Plan. Vested and unvested stock options and unvested restricted stock and RSUs previously granted under the 2006 Plan, the TeamShare Plan and another prior plan, the 2001 Stock Incentive Plan, remained outstanding as of December 31, 2013. We have reserved the maximum number of shares of common stock available for award under the terms of each of these plans. We have registered 57.9 million shares of common stock under these plans. The 2009 Plan provides for the grant of nonqualified stock options and incentive stock options, long-term performance awards in the form of performance shares or units, restricted stock, RSUs and stock appreciation rights. The Compensation and Management Development Committee of the Board of Directors determines the grant date for annual grants under our equity compensation plans. The date for annual grants under the 2009 Plan to our executive officers is expected to occur in the first quarter of each year following the earnings announcements for the previous quarter and full year. The Stock Plan for Non-Employee Directors provides for awards of stock options, restricted stock and RSUs to non-employee directors. It has been our practice to issue shares of common stock upon exercise of stock options from previously unissued shares, except in limited circumstances where they are issued from treasury stock. The total number of awards which may be granted in a given year and/or over the life of the plan under each of our equity compensation plans is limited. At December 31, 2013, an aggregate of 10.4 million shares were available for future grants and awards under these plans. | |||||||||||||||||
Stock options granted to date under our plans generally vest over four years and generally have a maximum contractual life of 10 years. As established under our equity compensation plans, vesting may accelerate upon retirement after the first anniversary date of the award if certain criteria are met. We recognize expense related to stock options on a straight-line basis over the requisite service period, less awards expected to be forfeited using estimated forfeiture rates. Due to the accelerated retirement provisions, the requisite service period of our stock options range from one to four years. Stock options are granted with an exercise price equal to the market price of our common stock on the date of grant, except in limited circumstances where local law may dictate otherwise. | |||||||||||||||||
A summary of stock option activity for the year ended December 31, 2013 is as follows (options in thousands): | |||||||||||||||||
Stock Options | Weighted | Weighted | Intrinsic | ||||||||||||||
Average | Average | Value | |||||||||||||||
Exercise | Remaining | (in millions) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Outstanding at January 1, 2013 | 16,638 | $ | 68.74 | ||||||||||||||
Options granted | 1,603 | 73.4 | |||||||||||||||
Options exercised | (7,008 | ) | 67.67 | ||||||||||||||
Options forfeited | (304 | ) | 65.68 | ||||||||||||||
Options expired | (188 | ) | 76.09 | ||||||||||||||
Outstanding at December 31, 2013 | 10,741 | $ | 70.06 | 5 | $ | 248.4 | |||||||||||
Vested or expected to vest as of December 31, 2013 | 10,329 | $ | 70.12 | 4.9 | $ | 238.3 | |||||||||||
Exercisable at December 31, 2013 | 7,375 | $ | 71.44 | 3.5 | $ | 160.4 | |||||||||||
We use a Black-Scholes option-pricing model to determine the fair value of our stock options. For stock options granted in 2012 and 2011, expected volatility was derived from the implied volatility of traded options on our stock that were actively traded around the grant date of the stock options with exercise prices similar to the stock options and maturities of over one year. In 2013, we used a combination of historical volatility and implied volatility because the traded options that were actively traded around the grant date of our stock options did not have maturities of over one year. The expected term of the stock options has been derived from historical employee exercise behavior. The risk-free interest rate was determined using the implied yield currently available for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options. We began paying dividends in 2012. Accordingly, prior to 2012 we assumed no dividend yield. Starting in 2012, the dividend yield was determined by using an estimated annual dividend and dividing it by the market price of our stock on the grant date. | |||||||||||||||||
The following table presents information regarding the weighted average fair value for stock options granted, the assumptions used to determine fair value, and the intrinsic value of options exercised in the indicated year: | |||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Dividend yield | 1.1 | % | 1.1 | % | – | % | |||||||||||
Volatility | 24.5 | % | 25.6 | % | 26.1 | % | |||||||||||
Risk-free interest rate | 1.1 | % | 1.5 | % | 2.2 | % | |||||||||||
Expected life (years) | 6.1 | 6.1 | 6.1 | ||||||||||||||
Weighted average fair value of options granted | $ | 16.33 | $ | 15.4 | $ | 18.33 | |||||||||||
Intrinsic value of options exercised (in millions) | $ | 97.9 | $ | 17.1 | $ | 27.5 | |||||||||||
As of December 31, 2013, there was $33.5 million of unrecognized share-based payment expense related to nonvested stock options granted under our plans. That expense is expected to be recognized over a weighted average period of 2.7 years. | |||||||||||||||||
RSUs | |||||||||||||||||
We have awarded RSUs to our employees. The terms of the awards have been three to five years. Some of the awards have only service conditions while some have performance and market conditions as well. The service condition awards vest ratably on the anniversary date of the award. The awards that have performance and market conditions vest all at once on the third anniversary date. Future service conditions may be waived if an employee retires after the first anniversary date of the award, but performance and market conditions continue to apply. Accordingly, the requisite service period used for share-based payment expense on our RSUs range from one to five years. | |||||||||||||||||
A summary of nonvested RSU activity for the year ended December 31, 2013 is as follows (RSUs in thousands): | |||||||||||||||||
RSUs | Weighted Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2013 | 1,445 | $ | 61.11 | ||||||||||||||
Granted | 581 | 74.22 | |||||||||||||||
Vested | (434 | ) | 55.8 | ||||||||||||||
Forfeited | (138 | ) | 65.03 | ||||||||||||||
Outstanding at December 31, 2013 | 1,454 | 67.42 | |||||||||||||||
For the RSUs with service conditions only, the fair value of the awards was determined based upon the fair market value of our common stock on the date of grant. For the RSUs with market conditions, a Monte Carlo valuation technique was used to simulate the market conditions of the awards. The outcome of the simulation was used to determine the fair value of the awards. | |||||||||||||||||
We are required to estimate the number of RSUs that will vest and recognize share-based payment expense on a straight-line basis over the requisite service period. As of December 31, 2013, we estimate that approximately 875,900 outstanding RSUs will vest. If our estimate were to change in the future, the cumulative effect of the change in estimate will be recorded in that period. Based upon the number of RSUs that we expect to vest, the unrecognized share-based payment expense as of December 31, 2013 was $34.0 million and is expected to be recognized over a weighted-average period of 2.2 years. The fair value of RSUs vesting during the years ended December 31, 2013, 2012 and 2011 based upon our stock price on the date of vesting was $32.5 million, $18.9 million and $11.8 million, respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
4 | INVENTORIES | ||||||||
Inventories consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Finished goods | $ | 817 | $ | 786.3 | |||||
Work in progress | 77.4 | 52.3 | |||||||
Raw materials | 180.1 | 156.7 | |||||||
Inventories | $ | 1,074.50 | $ | 995.3 | |||||
Amounts charged to the consolidated statement of earnings for excess and obsolete inventory in the years ended December 31, 2013, 2012 and 2011 were $112.0 million, $55.1 million and $47.6 million, respectively. The increase in the 2013 period primarily resulted from our decision to discontinue certain products. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||
5 | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property, plant and equipment consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Land | $ | 21.7 | $ | 22.1 | |||||
Building and equipment | 1,353.10 | 1,232.80 | |||||||
Capitalized software costs | 272.6 | 241.8 | |||||||
Instruments | 1,610.60 | 1,579.80 | |||||||
Construction in progress | 58.2 | 117.8 | |||||||
3,316.20 | 3,194.30 | ||||||||
Accumulated depreciation | (2,091.5 | ) | (1,983.6 | ) | |||||
Property, plant and equipment, net | $ | 1,224.70 | $ | 1,210.70 | |||||
Depreciation expense was $262.6 million, $266.0 million and $266.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |
Dec. 31, 2013 | ||
Business Combinations [Abstract] | ' | |
ACQUISITIONS | ' | |
6 | ACQUISITIONS | |
We made a number of business acquisitions during the years 2013, 2012 and 2011. In May 2013, we acquired the business assets of Knee Creations, LLC (Knee Creations). The Knee Creations acquisition enhances our product portfolio of early intervention knee treatments. In June 2013, we acquired NORMED Medizin-Technik GmbH (Normed). The Normed acquisition strengthens our Extremities and Trauma product portfolios and brings new product development capabilities in the foot and ankle and hand and wrist markets. In January 2012, we acquired Synvasive Technology, Inc. (Synvasive). The Synvasive acquisition enhances our product portfolio through the addition of the STABLECUT® surgical saw blades, as well as the eLIBRA® Dynamic Knee Balancing SystemTM for soft tissue balancing. In October 2012, we acquired Dornoch Medical Systems, Inc. (Dornoch). The Dornoch acquisition enhances our product portfolio through the addition of a medical waste fluid management and disposal technology. In November 2011, we acquired ExtraOrtho, Inc. (ExtraOrtho). The ExtraOrtho acquisition enhances our position in the external fixation market. | ||
The results of operations of the acquired companies have been included in our consolidated results of operations subsequent to the transaction dates, and the respective assets and liabilities of the acquired companies have been recorded at their estimated fair values in our consolidated statement of financial position as of the transaction dates, with any excess purchase price being recorded as goodwill. Pro forma financial information and other information required have not been included as the acquisitions, individually and in the aggregate, did not have a material impact upon our financial position or results of operations. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||
7 | INVESTMENTS | ||||||||||||||||
We invest in short and long-term investments classified as available-for-sale securities. Information regarding our investments is as follows (in millions): | |||||||||||||||||
Gross Unrealized | Fair | ||||||||||||||||
Amortized | Gains | Losses | value | ||||||||||||||
Cost | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Corporate debt securities | $ | 457.6 | $ | 0.4 | $ | (0.1 | ) | $ | 457.9 | ||||||||
U.S. government and agency debt securities | 211.1 | 0.1 | – | 211.2 | |||||||||||||
Foreign government debt securities | 3.1 | – | – | 3.1 | |||||||||||||
Commercial paper | 68.3 | – | – | 68.3 | |||||||||||||
Certificates of deposit | 67.2 | – | – | 67.2 | |||||||||||||
Total short and long-term investments | $ | 807.3 | $ | 0.5 | $ | (0.1 | ) | $ | 807.7 | ||||||||
As of December 31, 2012 | |||||||||||||||||
Corporate debt securities | $ | 383.6 | $ | 0.3 | $ | (0.1 | ) | $ | 383.8 | ||||||||
U.S. government and agency debt securities | 295.8 | 0.1 | – | 295.9 | |||||||||||||
Foreign government debt securities | 5 | – | – | 5 | |||||||||||||
Commercial paper | 138.7 | – | – | 138.7 | |||||||||||||
Certificates of deposit | 92.2 | 0.1 | – | 92.3 | |||||||||||||
Total short and long-term investments | $ | 915.3 | $ | 0.5 | $ | (0.1 | ) | $ | 915.7 | ||||||||
The amortized cost and fair value of our available-for-sale fixed-maturity securities by contractual maturity are as follows (in millions): | |||||||||||||||||
As of December 31, 2013 | Amortized Cost | Fair | |||||||||||||||
Value | |||||||||||||||||
Due in one year or less | $ | 726.7 | $ | 727 | |||||||||||||
Due after one year through two years | 80.6 | 80.7 | |||||||||||||||
Total | $ | 807.3 | $ | 807.7 | |||||||||||||
In January 2014, we sold certain debt securities with amortized cost and fair values as of December 31, 2013 of $567.5 million and $567.8 million, respectively. Included in that total were $161.2 million of securities at fair value with maturities of one year through two years that we classified as short-term investments on our consolidated balance sheet. The table above reflects these securities in the due in one year or less category even though their contractual maturities were longer. | |||||||||||||||||
FAIR_VALUE_MEASUREMENTS_OF_ASS
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES | ' | ||||||||||||||||||||
8 | FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES | ||||||||||||||||||||
The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at Reporting Date Using: | |||||||||||||||||||||
Description | Recorded | Quoted Prices | Significant Other | Significant | |||||||||||||||||
Balance | in Active | Observable | Unobservable | ||||||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Corporate debt securities | $ | 457.9 | $ | – | $ | 457.9 | $ | – | |||||||||||||
U.S. government and agency debt securities | 211.2 | – | 211.2 | – | |||||||||||||||||
Foreign government debt securities | 3.1 | – | 3.1 | – | |||||||||||||||||
Commercial paper | 68.3 | – | 68.3 | – | |||||||||||||||||
Certificates of deposit | 67.2 | – | 67.2 | – | |||||||||||||||||
Total available-for-sale securities | 807.7 | – | 807.7 | – | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts and options | 68.7 | – | 68.7 | – | |||||||||||||||||
Interest rate swaps | 16.3 | – | 16.3 | – | |||||||||||||||||
$ | 892.7 | $ | – | $ | 892.7 | $ | – | ||||||||||||||
Liabilities | |||||||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts and options | 20.6 | – | 20.6 | – | |||||||||||||||||
Interest rate swaps | 7 | – | 7 | – | |||||||||||||||||
$ | 27.6 | $ | – | $ | 27.6 | $ | – | ||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Fair Value Measurements at Reporting Date | |||||||||||||||||||||
Using: | |||||||||||||||||||||
Description | Recorded | Quoted Prices | Significant Other | Significant | |||||||||||||||||
Balance | in Active | Observable | Unobservable | ||||||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Corporate debt securities | $ | 383.8 | $ | – | $ | 383.8 | $ | – | |||||||||||||
U.S. government and agency debt securities | 295.9 | – | 295.9 | – | |||||||||||||||||
Foreign government debt securities | 5 | – | 5 | – | |||||||||||||||||
Commercial paper | 138.7 | – | 138.7 | – | |||||||||||||||||
Certificates of deposit | 92.3 | – | 92.3 | – | |||||||||||||||||
Total available-for-sale securities | 915.7 | – | 915.7 | – | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts and options | 28.4 | – | 28.4 | – | |||||||||||||||||
Interest rate swaps | 33.9 | – | 33.9 | – | |||||||||||||||||
$ | 978 | $ | – | $ | 978 | $ | – | ||||||||||||||
Liabilities | |||||||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts | $ | 10.8 | $ | – | $ | 10.8 | $ | – | |||||||||||||
We value our available-for-sale securities using a market approach based on broker prices for identical assets in over-the-counter markets and we perform ongoing assessments of counterparty credit risk. | |||||||||||||||||||||
We value our foreign currency forward contracts and foreign currency options using a market approach based on foreign currency exchange rates obtained from active markets and we perform ongoing assessments of counterparty credit risk. | |||||||||||||||||||||
We value our interest rate swaps using a market approach based on publicly available market yield curves and the terms of our swaps and we perform ongoing assessments of counterparty credit risk. | |||||||||||||||||||||
The following nonfinancial assets were measured at fair value on a nonrecurring basis (in millions): | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Description | Total | Quoted Prices | Significant | Significant | Total | ||||||||||||||||
in Active | Other | Unobservable | Losses | ||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Indefinite-lived intangible assets | $ | 21 | $ | – | $ | – | $ | 21 | $ | 2.8 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Goodwill | $ | 41 | $ | 41 | $ | 96 | |||||||||||||||
Indefinite-lived intangible assets | 24.2 | – | – | 24.2 | 11.6 | ||||||||||||||||
We conduct our annual goodwill impairment testing in the fourth quarter of every year or whenever events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. In 2012, it was determined that our U.S. Spine reporting unit’s carrying value was in excess of its fair value. The goodwill for this reporting unit was written down to its implied fair value of $41.0 million from its previous carrying value of $137.0 million, resulting in a $96.0 million non-cash impairment charge. The implied fair value of goodwill equals the estimated fair value of a reporting unit minus the fair value of the reporting unit’s net assets. In determining the implied fair value of the U.S. Spine reporting unit’s goodwill, we used unobservable inputs to estimate the fair value of the reporting unit and its assets and liabilities. Fair value was determined using an equal weighting of income and market approaches. | |||||||||||||||||||||
Fair value under the income approach was determined by discounting to present value the estimated future cash flows of the reporting unit. Fair value under the market approach utilized the guideline public company methodology, which uses valuation indicators from publicly traded companies that are similar to our U.S. Spine reporting unit and considers control premiums that would result from a sale of the reporting unit and the level of assets in the reporting unit versus the comparable companies. | |||||||||||||||||||||
In estimating the future cash flows of the reporting unit, we utilized a combination of market and company specific inputs that a market participant would use in assessing the fair value of the reporting unit. The primary market input was revenue growth rates. These rates were based upon historical trends and estimated future growth drivers such as an aging global population, obesity and more active lifestyles. Significant company specific inputs included assumptions regarding how the reporting unit could leverage operating expenses as revenue grows and the impact any new products will have on revenues. | |||||||||||||||||||||
Under the guideline public company methodology, we took into consideration specific risk differences between our reporting unit and the comparable companies, such as recent financial performance, size risks and product portfolios, among other considerations. Based upon our reporting unit’s recent financial performance, market share and product portfolio, we valued the reporting unit near the bottom of the valuation indicators of the comparable companies. | |||||||||||||||||||||
The fair value of the reporting unit’s assets and liabilities were determined by using the same methods that are used in business combination purchase accounting. | |||||||||||||||||||||
Factors that contributed to impairment of the U.S. Spine reporting unit included broader market issues as well as company specific issues. The U.S. spine market was and continues to be under pressure due to a constrained economic environment leading to continuing high unemployment and payer pushback on the necessity of certain procedures. Additionally, pricing was and continues to decline across the industry. Company specific issues included turnover with our independent sales agents and lack of execution in developing new, competitive products which resulted in a less than optimal product portfolio in our U.S. Spine reporting unit. | |||||||||||||||||||||
Before the economic downturn in 2008, we estimated the U.S. spine market was growing in the low double digits, but declined to flat or in the low single digits in 2012. Previous goodwill impairment tests forecasted some recovery in the market which did not occur. As we completed our annual operating plan in the fourth quarter of 2012, it became clearer that the U.S. spine market recovery may take longer than we planned, including the persistence of significant negative pricing pressures. Additionally, we concluded that new product introductions made in 2012 would not have as significant of a positive effect as we had previously forecasted. As a result, we tempered our expectations of recovery in the U.S. market and for our U.S. Spine reporting unit and recognized an impairment charge. | |||||||||||||||||||||
In our 2013 annual goodwill impairment test of our U.S. Spine reporting unit, we concluded no impairment charge was necessary. While our estimated fair value of the reporting unit declined slightly, the net assets of the reporting unit declined by more. The decrease in the net assets was primarily due to continued amortization of intangible assets acquired in business combinations and lower working capital needs. However, the estimated fair value of the reporting unit did not substantially exceed its carrying value. | |||||||||||||||||||||
We have five other reporting units with goodwill assigned to them. We estimate the fair value of those reporting units using the income approach by discounting to present value the estimated future cash flows of the reporting unit. Due to challenging market conditions associated with our U.S. Dental reporting unit, that reporting unit’s estimated fair value did not substantially exceed its carrying value in our 2013 goodwill impairment test. For each of the other four reporting units, the estimated fair value substantially exceeded its carrying value. | |||||||||||||||||||||
We will continue to monitor the fair value of our U.S. Spine and U.S. Dental reporting units as well as our other four reporting units in our interim and annual reporting periods. If estimated cash flows for these reporting units decrease, we may be required to record further impairment charges in the future. Factors that could result in our cash flows being lower than our current estimates include: 1) decreased revenues caused by unforeseen changes in the healthcare market, or our inability to generate new product revenue from our research and development activities, and 2) our inability to achieve the estimated operating margins in our forecasts due to unforeseen factors. Additionally, changes in the broader economic environment could cause changes to our estimated discount rates or comparable company valuation indicators, which may impact our estimated fair values. | |||||||||||||||||||||
In 2013 and 2012, we also recorded $2.8 million and $11.6 million, respectively, of impairment charges in “Special items” related to certain indefinite lived intangible assets. The impairment was a result of lower future estimated revenues from products using certain trademarks. The lower future estimated revenue resulted from negative publicity in the marketplace related to certain hip devices and our challenges in the global spine market that have adversely affected sales of these products. Further information regarding how the fair value of these indefinite lived trademarks was determined has not been provided as we do not believe this non-cash charge was significant to our results for 2013 and 2012. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||||||||||
9 | GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
The following table summarizes the changes in the carrying amount of goodwill (in millions): | |||||||||||||||||||||||||
Americas | Europe | Asia Pacific | Total | ||||||||||||||||||||||
Balance at January 1, 2012 | |||||||||||||||||||||||||
Goodwill | $ | 1,595.30 | $ | 1,111.80 | $ | 195.9 | $ | 2,903.00 | |||||||||||||||||
Accumulated impairment losses | (277.0 | ) | – | – | (277.0 | ) | |||||||||||||||||||
1,318.30 | 1,111.80 | 195.9 | 2,626.00 | ||||||||||||||||||||||
U.S. Spine reporting unit impairment | (96.0 | ) | – | – | (96.0 | ) | |||||||||||||||||||
Acquisitions | 25.9 | – | – | 25.9 | |||||||||||||||||||||
Currency translation | 2.7 | 16.8 | (3.6 | ) | 15.9 | ||||||||||||||||||||
Balance at December 31, 2012 | |||||||||||||||||||||||||
Goodwill | 1,623.90 | 1,128.60 | 192.3 | 2,944.80 | |||||||||||||||||||||
Accumulated impairment losses | (373.0 | ) | – | – | (373.0 | ) | |||||||||||||||||||
1,250.90 | 1,128.60 | 192.3 | 2,571.80 | ||||||||||||||||||||||
Acquisitions | 11 | 24 | – | 35 | |||||||||||||||||||||
Currency translation | (5.0 | ) | 34.5 | (25.1 | ) | 4.4 | |||||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||
Goodwill | 1,629.90 | 1,187.10 | 167.2 | 2,984.20 | |||||||||||||||||||||
Accumulated impairment losses | (373.0 | ) | – | – | (373.0 | ) | |||||||||||||||||||
$ | 1,256.90 | $ | 1,187.10 | $ | 167.2 | $ | 2,611.20 | ||||||||||||||||||
The components of identifiable intangible assets are as follows (in millions): | |||||||||||||||||||||||||
Technology | Intellectual | Trademarks | Customer | Other | Total | ||||||||||||||||||||
Property | and Trade | Relationships | |||||||||||||||||||||||
Rights | Names | ||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | $ | 700.4 | $ | 173.4 | $ | 43.3 | $ | 216.2 | $ | 95.1 | $ | 1,228.40 | |||||||||||||
Accumulated amortization | (401.4 | ) | (142.5 | ) | (33.9 | ) | (76.4 | ) | (43.9 | ) | (698.1 | ) | |||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | – | – | 177.4 | – | – | 177.4 | |||||||||||||||||||
Total identifiable intangible assets | $ | 299 | $ | 30.9 | $ | 186.8 | $ | 139.8 | $ | 51.2 | $ | 707.7 | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | $ | 695.1 | $ | 173.4 | $ | 47.4 | $ | 177 | $ | 95.7 | $ | 1,188.60 | |||||||||||||
Accumulated amortization | (362.5 | ) | (124.2 | ) | (31.1 | ) | (61.7 | ) | (46.0 | ) | (625.5 | ) | |||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | – | – | 177.6 | – | – | 177.6 | |||||||||||||||||||
Total identifiable intangible assets | $ | 332.6 | $ | 49.2 | $ | 193.9 | $ | 115.3 | $ | 49.7 | $ | 740.7 | |||||||||||||
Intangible amortization expense was recorded as follows (in millions): | |||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Cost of products sold | $ | 18.3 | $ | 24 | $ | 26.7 | |||||||||||||||||||
Selling, general and administrative | 77.6 | 73.1 | 67.1 | ||||||||||||||||||||||
Total intangible amortization | $ | 95.9 | $ | 97.1 | $ | 93.8 | |||||||||||||||||||
Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2013 for the years ending December 31, 2014 through 2018 is (in millions): | |||||||||||||||||||||||||
For the Years Ending December 31, | |||||||||||||||||||||||||
2014 | $ | 98 | |||||||||||||||||||||||
2015 | 84.7 | ||||||||||||||||||||||||
2016 | 74.4 | ||||||||||||||||||||||||
2017 | 61.6 | ||||||||||||||||||||||||
2018 | 45.8 |
OTHER_CURRENT_AND_LONGTERM_LIA
OTHER CURRENT AND LONG-TERM LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
OTHER CURRENT AND LONG-TERM LIABILITIES | ' | ||||||||
10 | OTHER CURRENT AND LONG-TERM LIABILITIES | ||||||||
Other current and long-term liabilities consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Other current liabilities: | |||||||||
License and service agreements | $ | 109.2 | $ | 92.3 | |||||
Certain claims accrual (Note 19) | 50 | 50 | |||||||
Salaries, wages and benefits | 122.8 | 118.8 | |||||||
Accrued liabilities | 381.6 | 297.9 | |||||||
Total other current liabilities | $ | 663.6 | $ | 559 | |||||
Other long-term liabilities: | |||||||||
Long-term income tax payable | $ | 115 | $ | 213 | |||||
Certain claims accrual (Note 19) | 329 | 210.8 | |||||||
Other long-term liabilities | 132.6 | 135.5 | |||||||
Total other long-term liabilities | $ | 576.6 | $ | 559.3 | |||||
DEBT
DEBT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
DEBT | ' | ||||||||
11 | DEBT | ||||||||
Our debt consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Short-term debt | |||||||||
Senior Credit Facility | $ | – | $ | 100 | |||||
Other short-term debt | 0.5 | 0.1 | |||||||
Total short-term debt | $ | 0.5 | $ | 100.1 | |||||
Long-term debt | |||||||||
Senior Notes due 2014 | $ | 250 | $ | 250 | |||||
Senior Notes due 2019 | 500 | 500 | |||||||
Senior Notes due 2021 | 300 | 300 | |||||||
Senior Notes due 2039 | 500 | 500 | |||||||
Term Loan | 112.4 | 138.6 | |||||||
Other long-term debt | 2.1 | – | |||||||
Debt discount | (1.5 | ) | (1.7 | ) | |||||
Adjustment related to interest rate swaps | 9.3 | 33.9 | |||||||
Total long-term debt | $ | 1,672.30 | $ | 1,720.80 | |||||
We have a five year $1,350 million revolving, multi-currency, senior unsecured credit facility maturing May 9, 2017 (Senior Credit Facility). There were no borrowings outstanding under the Senior Credit Facility at December 31, 2013. | |||||||||
We have a term loan agreement (Term Loan) with one of the lenders under the Senior Credit Facility for 11.7 billion Japanese Yen that will mature on May 31, 2016. Borrowings under the Term Loan bear interest at a fixed rate of 0.61 percent per annum until maturity. The estimated fair value of the Term Loan as of December 31, 2013, based upon publicly available market yield curves and the terms of the debt (Level 2), was $112.2 million. | |||||||||
We and certain of our wholly owned foreign subsidiaries are the borrowers under the Senior Credit Facility. Borrowings under the Senior Credit Facility bear interest at a LIBOR-based rate plus an applicable margin determined by reference to our senior unsecured long-term credit rating and the amounts drawn under the Senior Credit Facility, at an alternate base rate, or at a fixed-rate determined through a competitive bid process. The Senior Credit Facility contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement, including, among other things, limitations on consolidations, mergers and sales or transfers of assets. Financial covenants include a maximum leverage ratio of 3.0 to 1.0. If we fall below an investment grade credit rating, additional restrictions would result, including restrictions on investments, payment of dividends and stock repurchases. We were in compliance with all covenants under the Senior Credit Facility as of December 31, 2013. Commitments under the Senior Credit Facility are subject to certain fees, including a facility and a utilization fee. | |||||||||
We have four tranches of senior notes outstanding: $250 million aggregate principal amount of 1.4 percent notes due November 30, 2014, $500 million aggregate principal amount of 4.625 percent notes due November 30, 2019, $300 million aggregate principal amount of 3.375 percent notes due November 30, 2021 and $500 million aggregate principal amount of 5.75 percent notes due November 30, 2039. Interest on each series is payable on May 30 and November 30 of each year until maturity. The estimated fair value of our Senior Notes as of December 31, 2013, based on quoted prices for the specific securities from transactions in over-the-counter markets (Level 2), was $1,649.5 million. | |||||||||
We may redeem the Senior Notes at our election in whole or in part at any time prior to maturity at a redemption price equal to the greater of 1) 100 percent of the principal amount of the notes being redeemed; or 2) the sum of the present values of the remaining scheduled payments of principal and interest (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semi-annual basis at the Treasury Rate (as defined in the debt agreement), plus 15 basis points in the case of the 2014 Notes, 20 basis points in the case of the 2019 Notes and 2021 Notes, and 25 basis points in the case of the 2039 Notes. We would also pay the accrued and unpaid interest on the Senior Notes to the redemption date. | |||||||||
We have entered into interest rate swap agreements which we designated as fair value hedges of underlying fixed-rate obligations on our Senior Notes due 2019 and 2021. See Note 13 for additional information regarding the interest rate swap agreements. | |||||||||
Before our senior notes due November 30, 2014 become payable, we intend to issue new senior notes in order to pay the $250 million owed. If we are not able to issue new senior notes, we intend to borrow against our Senior Credit Facility to pay these notes. Since we have the ability and intent to refinance these senior notes on a long-term basis with new notes or through our Senior Credit Facility, we have classified these senior notes as long-term debt as of December 31, 2013. | |||||||||
We also have available uncommitted credit facilities totaling $50.7 million. | |||||||||
At December 31, 2013, the weighted average interest rate for our long-term borrowings was 3.3 percent. At December 31, 2012, the weighted average interest rate for short-term and long-term borrowings was 1.1 percent and 3.5 percent, respectively. We paid $68.1 million, $67.8 million and $55.0 million in interest during 2013, 2012 and 2011, respectively. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||||||||||||||||||||||||||||||||||||
12 | ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||
OCI refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Amounts in OCI may be reclassified to net earnings upon the occurrence of certain events. | |||||||||||||||||||||||||||||||||||||
Our OCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, unrealized gains and losses on available-for-sale securities, and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Unrealized gains and losses on available-for-sale securities are reclassified to net earnings if we sell the security before maturity or if the unrealized loss is considered to be other-than-temporary. We typically hold our available-for-sale securities until maturity and are able to realize their amortized cost and therefore we do not have reclassification adjustments to net earnings on these securities. Amounts related to defined benefit plans that are in OCI are reclassified over the service periods of employees in the plan. The reclassification amounts are allocated to all employees in the plans and therefore the reclassified amounts may become part of inventory to the extent they are considered direct labor costs. See Note 14 for more information on our defined benefit plans. | |||||||||||||||||||||||||||||||||||||
The following table shows the changes in the components of OCI, net of tax (in millions): | |||||||||||||||||||||||||||||||||||||
Foreign | Cash | Unrealized | Defined | ||||||||||||||||||||||||||||||||||
Currency | Flow | Gains on | Benefit | ||||||||||||||||||||||||||||||||||
Translation | Hedges | Securities | Plan | ||||||||||||||||||||||||||||||||||
Items | |||||||||||||||||||||||||||||||||||||
Balance December 31, 2012 | $ | 445.5 | $ | 4.1 | $ | 0.4 | $ | (106.1 | ) | ||||||||||||||||||||||||||||
OCI before reclassifications | (44.4 | ) | 33.4 | 0.1 | 30.6 | ||||||||||||||||||||||||||||||||
Reclassifications | – | (4.4 | ) | – | 7.9 | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 401.1 | $ | 33.1 | $ | 0.5 | $ | (67.6 | ) | ||||||||||||||||||||||||||||
The following table shows the reclassification adjustments from OCI (in millions): | |||||||||||||||||||||||||||||||||||||
Amount of Gain / (Loss) | Location on Statement of Earnings | ||||||||||||||||||||||||||||||||||||
Reclassified from OCI | |||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
Component of OCI | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 8 | $ | (12.0 | ) | $ | (32.9 | ) | Cost of products sold | ||||||||||||||||||||||||||||
Foreign exchange options | (0.2 | ) | (0.4 | ) | – | Cost of products sold | |||||||||||||||||||||||||||||||
Cross-currency interest rate swaps | – | 0.2 | (8.3 | ) | Interest expense | ||||||||||||||||||||||||||||||||
7.8 | (12.2 | ) | (41.2 | ) | Total before tax | ||||||||||||||||||||||||||||||||
3.4 | (8.9 | ) | (16.7 | ) | Provision for income taxes | ||||||||||||||||||||||||||||||||
$ | 4.4 | $ | (3.3 | ) | $ | (24.5 | ) | Net of tax | |||||||||||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||||||||||||||
Prior service cost | $ | 3.9 | $ | 2.9 | $ | 0.8 | * | ||||||||||||||||||||||||||||||
Unrecognized actuarial (loss) | (16.6 | ) | (13.3 | ) | (7.4 | ) | * | ||||||||||||||||||||||||||||||
(12.7 | ) | (10.4 | ) | (6.6 | ) | Total before tax | |||||||||||||||||||||||||||||||
(4.8 | ) | (3.9 | ) | (2.6 | ) | Provision for income taxes | |||||||||||||||||||||||||||||||
$ | (7.9 | ) | $ | (6.5 | ) | $ | (4.0 | ) | Net of tax | ||||||||||||||||||||||||||||
Total reclassifications | $ | (3.5 | ) | $ | (9.8 | ) | $ | (28.5 | ) | Net of tax | |||||||||||||||||||||||||||
* These OCI components are included in the computation of net periodic pension expense (see Note 14). | |||||||||||||||||||||||||||||||||||||
The following table shows the tax effects on each component of OCI recognized in our consolidated statements of comprehensive income (in millions): | |||||||||||||||||||||||||||||||||||||
Before Tax | Tax | Net of Tax | |||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Foreign currency cumulative translation adjustments | $ | (44.4 | ) | $ | 46.1 | $ | 4.6 | $ | – | $ | – | $ | – | $ | (44.4 | ) | $ | 46.1 | $ | 4.6 | |||||||||||||||||
Unrealized cash flow hedge gains/(losses) | 63.6 | 15.2 | (34.9 | ) | 30.2 | 4.3 | (4.3 | ) | 33.4 | 10.9 | (30.6 | ) | |||||||||||||||||||||||||
Reclassification adjustments on foreign currency hedges | (7.8 | ) | 12.2 | 41.2 | (3.4 | ) | 8.9 | 16.7 | (4.4 | ) | 3.3 | 24.5 | |||||||||||||||||||||||||
Unrealized gains on securities | 0.1 | 0.4 | 0.2 | – | – | – | 0.1 | 0.4 | 0.2 | ||||||||||||||||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 50.3 | 20.3 | (71.3 | ) | 11.8 | 8.5 | (23.0 | ) | 38.5 | 11.8 | (48.3 | ) | |||||||||||||||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | 61.8 | $ | 94.2 | $ | (60.2 | ) | $ | 38.6 | $ | 21.7 | $ | (10.6 | ) | $ | 23.2 | $ | 72.5 | $ | (49.6 | ) | ||||||||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ' | ||||||||||||||||||||||||||||
13 | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | ||||||||||||||||||||||||||||
We are exposed to certain market risks relating to our ongoing business operations, including foreign currency exchange rate risk, commodity price risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risks that we manage through the use of derivative instruments are interest rate risk and foreign currency exchange rate risk. | |||||||||||||||||||||||||||||
Interest Rate Risk | |||||||||||||||||||||||||||||
Derivatives Designated as Fair Value Hedges | |||||||||||||||||||||||||||||
We use interest rate derivative instruments to manage our exposure to interest rate movements by converting fixed-rate debt into variable-rate debt. Under these agreements, we agree to exchange, at specified intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed-upon notional principal amount. The objective of the instruments is to more closely align interest expense with interest income received on cash and cash equivalents. These derivative instruments are designated as fair value hedges under GAAP. Changes in the fair value of the derivative instrument are recorded in current earnings and are offset by gains or losses on the underlying debt instrument. | |||||||||||||||||||||||||||||
We have multiple fixed-to-variable interest rate swap agreements that we have designated as fair value hedges of the fixed interest rate obligations on our Senior Notes due 2019 and 2021. The total notional amounts are $250 million and $300 million for the Senior Notes due 2019 and 2021, respectively. On the interest rate swap agreements for the Senior Notes due 2019, we receive a fixed interest rate of 4.625 percent and pay variable interest equal to the three-month LIBOR plus an average of 133 basis points. On the interest rate swap agreements for the Senior Notes due 2021, we receive a fixed interest rate of 3.375 percent and pay variable interest equal to the three-month LIBOR plus an average of 99 basis points. | |||||||||||||||||||||||||||||
Foreign Currency Exchange Rate Risk | |||||||||||||||||||||||||||||
We operate on a global basis and are exposed to the risk that our financial condition, results of operations and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign currency exchange rate movements on net earnings, we enter into derivative financial instruments in the form of foreign currency exchange forward contracts and options with major financial institutions. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Swiss Francs, Japanese Yen, British Pounds, Canadian Dollars, Australian Dollars, Korean Won, Swedish Krona, Czech Koruna, Thai Baht, Taiwan Dollars, South African Rand, Russian Rubles and Indian Rupees. We do not use derivative financial instruments for trading or speculative purposes. | |||||||||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | |||||||||||||||||||||||||||||
Our revenues are generated in various currencies throughout the world. However, a significant amount of our inventory is produced in U.S. Dollars. Therefore, movements in foreign currency exchange rates may have different proportional effects on our revenues compared to our cost of products sold. To minimize the effects of foreign currency exchange rate movements on cash flows, we hedge intercompany sales of inventory expected to occur within the next 30 months with foreign currency exchange forward contracts and options. We designate these derivative instruments as cash flow hedges. | |||||||||||||||||||||||||||||
We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default. For derivatives which qualify as hedges of future cash flows, the effective portion of changes in fair value is temporarily recorded in other comprehensive income and then recognized in cost of products sold when the hedged item affects net earnings. The ineffective portion of a derivative’s change in fair value, if any, is immediately reported in cost of products sold. | |||||||||||||||||||||||||||||
For foreign currency exchange forward contracts and options outstanding at December 31, 2013, we had obligations to purchase U.S. Dollars and sell Euros, Japanese Yen, British Pounds, Canadian Dollars, Australian Dollars, Korean Won, Swedish Krona, Czech Koruna, Thai Baht, Taiwan Dollars, South African Rand, Russian Rubles and Indian Rupees and obligations to purchase Swiss Francs and sell U.S. Dollars. These derivatives mature at dates ranging from January 2014 through June 2016. As of December 31, 2013, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase U.S. Dollars were $1,574.6 million. As of December 31, 2013, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase Swiss Francs were $353.3 million. | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
We enter into foreign currency forward exchange contracts with terms of one month to manage currency exposures for monetary assets and liabilities denominated in a currency other than an entity’s functional currency. As a result, any foreign currency remeasurement gains/losses recognized in earnings are generally offset with gains/losses on the foreign currency forward exchange contracts in the same reporting period. These offsetting gains/losses are recorded in cost of products sold as the underlying assets and liabilities exposed to remeasurement include inventory-related transactions. These contracts are settled on the last day of each reporting period. Therefore, there is no outstanding balance related to these contracts recorded on the balance sheet as of the end of the reporting period. The notional amounts of these contracts are typically in a range of $1.2 billion to $1.7 billion per quarter. | |||||||||||||||||||||||||||||
Foreign Currency Exchange and Interest Rate Risk | |||||||||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | |||||||||||||||||||||||||||||
In 2011, our subsidiary in Japan, with a functional currency of Japanese Yen, borrowed variable-rate debt of $143.0 million denominated in U.S. Dollars under our previous credit facility. To manage the foreign currency exchange risk associated with remeasuring the debt to Japanese Yen and the interest rate risk associated with the variable-rate debt, we entered into multiple cross-currency interest rate swap agreements with a total notional amount of 11,798 million Japanese Yen. We designated these swaps as cash flow hedges of the foreign currency exchange and interest rate risks. The effective portion of changes in fair value of the cross-currency interest rate swaps was temporarily recorded in other comprehensive income and then recognized in interest expense when the hedged item affected net earnings. The cross-currency interest rate swap agreements matured in 2012 and we paid off the subsidiary’s U.S. Dollar debt with Japanese Yen debt borrowed under our previous credit facility. | |||||||||||||||||||||||||||||
Income Statement Presentation | |||||||||||||||||||||||||||||
Derivatives Designated as Fair Value Hedges | |||||||||||||||||||||||||||||
Derivative instruments designated as fair value hedges had the following effects on our consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||
Gain / (Loss) on Instrument | Gain / (Loss) on Hedged Item | ||||||||||||||||||||||||||||
Derivative Instrument | Location on Statement of Earnings | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | (24.6 | ) | $ | 6.1 | $ | 26.3 | $ | 24.6 | $ | (6.1 | ) | $ | (26.3 | ) | |||||||||||||
We had no ineffective fair value hedging instruments nor any amounts excluded from the assessment of hedge effectiveness during the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | |||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges had the following effects, before taxes, on OCI and net earnings on our consolidated statements of earnings, consolidated statements of comprehensive income and consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||
Amount of Gain / (Loss) | Amount of Gain / (Loss) | ||||||||||||||||||||||||||||
Recognized in OCI | Reclassified from OCI | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
Derivative Instrument | 2013 | 2012 | 2011 | Location on Statement of Earnings | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Foreign exchange forward contracts | $ | 63.9 | $ | 16.3 | $ | (34.9 | ) | Cost of products sold | $ | 8 | $ | (12.0 | ) | $ | (32.9 | ) | |||||||||||||
Foreign exchange options | (0.3 | ) | (1.1 | ) | (0.2 | ) | Cost of products sold | (0.2 | ) | (0.4 | ) | – | |||||||||||||||||
Cross-currency interest rate swaps | – | – | 0.2 | Interest expense | – | 0.2 | (8.3 | ) | |||||||||||||||||||||
$ | 63.6 | $ | 15.2 | $ | (34.9 | ) | $ | 7.8 | $ | (12.2 | ) | $ | (41.2 | ) | |||||||||||||||
The net amount recognized in earnings during the years ended December 31, 2013, 2012 and 2011 due to ineffectiveness and amounts excluded from the assessment of hedge effectiveness were not significant. | |||||||||||||||||||||||||||||
The fair value of outstanding derivative instruments designated as cash flow hedges and recorded on the balance sheet at December 31, 2013, together with settled derivatives where the hedged item has not yet affected earnings, was a net unrealized gain of $60.8 million, or $33.1 million after taxes, which is deferred in accumulated other comprehensive income. Of the net unrealized gain, $23.9 million, or $10.0 million after taxes, is expected to be reclassified to earnings over the next twelve months. | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
The following gains/(losses) from these derivative instruments were recognized on our consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||
Derivative Instrument | Location on | Year Ended December 31, | |||||||||||||||||||||||||||
Statement of Earnings | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Cost of products sold | $ | – | $ | (2.0 | ) | $ | 2.7 | |||||||||||||||||||||
This impact does not include any offsetting gains/losses recognized in earnings as a result of foreign currency remeasurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency. | |||||||||||||||||||||||||||||
Balance Sheet Presentation | |||||||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, all derivative instruments designated as fair value hedges and cash flow hedges are recorded at fair value on the balance sheet. On our consolidated balance sheets, we recognize individual forward contracts and options with the same counterparty on a net asset/liability basis if we have a master netting agreement with the counterparty. Under these master netting agreements, we are able to settle derivative instrument assets and liabilities with the same counterparty in a single transaction, instead of settling each derivative instrument separately. We have master netting agreements with all of our counterparties. The fair value of derivative instruments on a gross basis is as follows (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 60.2 | Other current assets | $ | 29.7 | |||||||||||||||||||||||
Foreign exchange options | Other current assets | – | Other current assets | 0.6 | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 30.2 | Other assets | 19.8 | |||||||||||||||||||||||||
Interest rate swaps | Other assets | 16.3 | Other assets | 33.9 | |||||||||||||||||||||||||
Total asset derivatives | $ | 106.7 | $ | 84 | |||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 26.4 | Other current liabilities | $ | 20.2 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other long-term liabilities | 15.9 | Other current liabilities | 12.3 | |||||||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | 7 | Other long-term liabilities | – | |||||||||||||||||||||||||
Total liability derivatives | $ | 49.3 | $ | 32.5 | |||||||||||||||||||||||||
The table below presents the effects of our master netting agreements on our consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Description | Location | Gross | Offset | Net Amount | Gross | Offset | Net Amount | ||||||||||||||||||||||
Amount | in Balance | Amount | in Balance | ||||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||
Cash flow hedges | Other current assets | $ | 60.2 | $ | 13.5 | $ | 46.7 | $ | 30.3 | $ | 15.2 | $ | 15.1 | ||||||||||||||||
Cash flow hedges | Other assets | 30.2 | 8.2 | 22 | 19.8 | 6.5 | 13.3 | ||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||
Cash flow hedges | Other current liabilities | 26.4 | 13.5 | 12.9 | 20.2 | 15.2 | 5 | ||||||||||||||||||||||
Cash flow hedges | Other long-term liabilities | 15.9 | 8.2 | 7.7 | 12.3 | 6.5 | 5.8 | ||||||||||||||||||||||
RETIREMENT_BENEFIT_PLANS
RETIREMENT BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||
RETIREMENT BENEFIT PLANS | ' | ||||||||||||||||||||||||
14 | RETIREMENT BENEFIT PLANS | ||||||||||||||||||||||||
We have defined benefit pension plans covering certain U.S. and Puerto Rico employees. The employees who are not participating in the defined benefit plans receive additional benefits under our defined contribution plans. Plan benefits are primarily based on years of credited service and the participant’s average eligible compensation. In addition to the U.S. and Puerto Rico defined benefit pension plans, we sponsor various foreign pension arrangements, including retirement and termination benefit plans required by local law or coordinated with government sponsored plans. | |||||||||||||||||||||||||
We use a December 31 measurement date for our benefit plans. | |||||||||||||||||||||||||
Defined Benefit Plans | |||||||||||||||||||||||||
The components of net pension expense for our defined benefit retirement plans are as follows (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 11.9 | $ | 11.4 | $ | 11.4 | $ | 16.1 | $ | 15 | $ | 16.8 | |||||||||||||
Interest cost | 13.2 | 13.3 | 13 | 5.6 | 6.1 | 7.3 | |||||||||||||||||||
Expected return on plan assets | (28.7 | ) | (25.5 | ) | (21.9 | ) | (6.7 | ) | (7.6 | ) | (9.6 | ) | |||||||||||||
Settlement | – | 0.7 | – | – | – | – | |||||||||||||||||||
Amortization of prior service cost | (2.6 | ) | (2.0 | ) | – | (1.3 | ) | (0.9 | ) | (0.8 | ) | ||||||||||||||
Amortization of unrecognized actuarial loss | 14.8 | 11.4 | 6.2 | 1.8 | 1.9 | 1.2 | |||||||||||||||||||
Net periodic benefit cost | $ | 8.6 | $ | 9.3 | $ | 8.7 | $ | 15.5 | $ | 14.5 | $ | 14.9 | |||||||||||||
The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows: | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.32 | % | 4.97 | % | 5.82 | % | 2.13 | % | 2.58 | % | 2.82 | % | |||||||||||||
Rate of compensation increase | 3.29 | % | 3.81 | % | 3.81 | % | 2.29 | % | 2.77 | % | 2.64 | % | |||||||||||||
Expected long-term rate of return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | 2.74 | % | 3.51 | % | 4.01 | % | |||||||||||||
The expected long-term rate of return on plan assets is based on the historical and estimated future rates of return on the different asset classes held in the plans. The expected long-term rate of return is the weighted average of the target asset allocation of each individual asset class. We believe that historical asset results approximate expected market returns applicable to the funding of a long-term benefit obligation. | |||||||||||||||||||||||||
Discount rates were determined for each of our defined benefit retirement plans at their measurement date to reflect the yield of a portfolio of high quality bonds matched against the timing and amounts of projected future benefit payments. | |||||||||||||||||||||||||
Changes in projected benefit obligations and plan assets were (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Projected benefit obligation – beginning of year | $ | 314.3 | $ | 290 | $ | 259.4 | $ | 235.1 | |||||||||||||||||
Service cost | 11.9 | 11.4 | 16.1 | 15 | |||||||||||||||||||||
Interest cost | 13.2 | 13.3 | 5.6 | 6.1 | |||||||||||||||||||||
Plan amendments | – | (17.1 | ) | 118.9 | (3.7 | ) | |||||||||||||||||||
Employee contributions | – | – | 15.9 | 17.5 | |||||||||||||||||||||
Benefits paid | (10.4 | ) | (7.0 | ) | (29.4 | ) | (21.3 | ) | |||||||||||||||||
Settlement | – | (1.1 | ) | – | – | ||||||||||||||||||||
Actuarial (gain) loss | (12.3 | ) | 24.8 | (17.7 | ) | 6.9 | |||||||||||||||||||
Expenses paid | – | – | (0.2 | ) | (0.2 | ) | |||||||||||||||||||
Translation loss | – | – | 2.9 | 4 | |||||||||||||||||||||
Projected benefit obligation – end of year | $ | 316.7 | $ | 314.3 | $ | 371.5 | $ | 259.4 | |||||||||||||||||
Plan assets at fair market value – beginning of year | $ | 363 | $ | 275.1 | $ | 231.6 | $ | 205.1 | |||||||||||||||||
Actual return on plan assets | 25.2 | 40.7 | 9.7 | 11.4 | |||||||||||||||||||||
Employer contributions | 20.8 | 54.2 | 15 | 15.5 | |||||||||||||||||||||
Employee contributions | – | – | 15.9 | 17.5 | |||||||||||||||||||||
Plan amendments | – | – | 126.7 | – | |||||||||||||||||||||
Benefits paid | (10.4 | ) | (7.0 | ) | (29.4 | ) | (21.3 | ) | |||||||||||||||||
Expenses paid | – | – | (0.2 | ) | (0.2 | ) | |||||||||||||||||||
Translation gain | – | – | 3 | 3.6 | |||||||||||||||||||||
Plan assets at fair market value – end of year | $ | 398.6 | $ | 363 | $ | 372.3 | $ | 231.6 | |||||||||||||||||
Funded status | $ | 81.9 | $ | 48.7 | $ | 0.8 | $ | (27.8 | ) | ||||||||||||||||
Amounts recognized in consolidated balance sheet: | |||||||||||||||||||||||||
Prepaid pension | $ | 92.7 | $ | 61.9 | $ | 12.1 | $ | 7.5 | |||||||||||||||||
Short-term accrued benefit liability | (0.7 | ) | (0.4 | ) | – | – | |||||||||||||||||||
Long-term accrued benefit liability | (10.1 | ) | (12.8 | ) | (11.3 | ) | (35.3 | ) | |||||||||||||||||
Net amount recognized | $ | 81.9 | $ | 48.7 | $ | 0.8 | $ | (27.8 | ) | ||||||||||||||||
Amounts recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||
Unrecognized prior service cost | $ | (12.0 | ) | $ | (14.5 | ) | $ | (8.3 | ) | $ | (9.6 | ) | |||||||||||||
Unrecognized actuarial loss | 113.3 | 136.9 | 15.5 | 35.9 | |||||||||||||||||||||
Total amount recognized | $ | 101.3 | $ | 122.4 | $ | 7.2 | $ | 26.3 | |||||||||||||||||
We estimate the following amounts recorded as part of accumulated other comprehensive income will be recognized as part of our net pension expense during 2014 (in millions): | |||||||||||||||||||||||||
U.S. and | Foreign | ||||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
Unrecognized prior service cost | $ | (2.6 | ) | $ | (1.2 | ) | |||||||||||||||||||
Unrecognized actuarial loss | 10.9 | 0.4 | |||||||||||||||||||||||
$ | 8.3 | $ | (0.8 | ) | |||||||||||||||||||||
The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows: | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.98 | % | 4.32 | % | 5.05 | % | 2.45 | % | 2.15 | % | 2.49 | % | |||||||||||||
Rate of compensation increase | 3.29 | % | 3.29 | % | 3.81 | % | 1.52 | % | 2.75 | % | 2.76 | % | |||||||||||||
Plans with projected benefit obligations in excess of plan assets were as follows (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
As of December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Projected benefit obligation | $ | 10.8 | $ | 29.3 | $ | 318.1 | $ | 233.1 | |||||||||||||||||
Plan assets at fair market value | – | 16 | 307.4 | 197.7 | |||||||||||||||||||||
Total accumulated benefit obligations and plans with accumulated benefit obligations in excess of plan assets were as follows (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
As of December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Total accumulated benefit obligations | $ | 273.8 | $ | 268.7 | $ | 362.1 | $ | 244.9 | |||||||||||||||||
Plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||||||||
Accumulated benefit obligation | 8.8 | 26.9 | 308.9 | 191.9 | |||||||||||||||||||||
Plan assets at fair market value | – | 16 | 303.7 | 168.8 | |||||||||||||||||||||
The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions): | |||||||||||||||||||||||||
For the Years Ending December 31, | U.S. and | Foreign | |||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
2014 | $ | 11.5 | $ | 18.3 | |||||||||||||||||||||
2015 | 11.6 | 19.4 | |||||||||||||||||||||||
2016 | 13.3 | 19.2 | |||||||||||||||||||||||
2017 | 14.7 | 19.3 | |||||||||||||||||||||||
2018 | 16.3 | 19.9 | |||||||||||||||||||||||
2019-2023 | 104.8 | 106 | |||||||||||||||||||||||
The U.S. and Puerto Rico defined benefit retirement plans’ overall investment strategy is to maximize total returns by emphasizing long-term growth of capital while mitigating risk. We have established target ranges of assets held by the plans of 40 to 45 percent for equity securities, 30 to 35 percent for debt securities and 20 to 25 percent in non-traditional investments. The plans strive to have sufficiently diversified assets so that adverse or unexpected results from one asset class will not have an unduly detrimental impact on the entire portfolio. We regularly review the investments in the plans and we may rebalance them from time-to-time based upon the target asset allocation of the plans. | |||||||||||||||||||||||||
For the U.S. and Puerto Rico plans, we maintain an investment policy statement that guides the investment allocation in the plans. The investment policy statement describes the target asset allocation positions described above. Our benefits committee, along with our investment advisor, monitor compliance with and administer the investment policy statement and the plans’ assets and oversee the general investment strategy and objectives of the plans. Our benefits committee generally meets quarterly to review performance and to ensure that the current investment allocation is within the parameters of the investment policy statement. | |||||||||||||||||||||||||
The investment strategies of foreign based plans vary according to the plan provisions and local laws. The majority of the assets in foreign based plans are located in Switzerland-based plans. These assets are held in trusts and are commingled with the assets of other Swiss companies with representatives of all the companies making the investment decisions. The overall strategy is to maximize total returns while avoiding risk. The trustees of the assets have established target ranges of assets held by the plans of 30 to 50 percent in debt securities, 20 to 37 percent in equity securities, 15 to 24 percent in real estate, 3 to 15 percent in cash funds and 0 to 12 percent in other funds. | |||||||||||||||||||||||||
The fair value of our U.S. and Puerto Rico pension plan assets by asset category was as follows (in millions): | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.8 | $ | 0.8 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large-cap | 79.6 | – | 79.6 | – | |||||||||||||||||||||
U.S. small-cap | 22.3 | – | 22.3 | – | |||||||||||||||||||||
International | 87.7 | – | 87.7 | – | |||||||||||||||||||||
Real estate | 43.4 | – | 43.4 | – | |||||||||||||||||||||
Commodity-linked mutual funds | 42.1 | – | 42.1 | – | |||||||||||||||||||||
Intermediate fixed income securities | 122.7 | – | 122.7 | – | |||||||||||||||||||||
Total | $ | 398.6 | $ | 0.8 | $ | 397.8 | $ | – | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 3.2 | $ | 3.2 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large-cap | 60.3 | – | 60.3 | – | |||||||||||||||||||||
U.S. small-cap | 22.1 | – | 22.1 | – | |||||||||||||||||||||
International | 87.5 | – | 87.5 | – | |||||||||||||||||||||
Real estate | 29.5 | – | 29.5 | – | |||||||||||||||||||||
Commodity-linked mutual funds | 38.3 | – | 38.3 | – | |||||||||||||||||||||
Intermediate fixed income securities | 122.1 | – | 122.1 | – | |||||||||||||||||||||
Total | $ | 363 | $ | 3.2 | $ | 359.8 | $ | – | |||||||||||||||||
The fair value of our foreign pension plan assets was as follows (in millions): | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 13.9 | $ | 13.9 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Energy | 4.7 | 4.7 | – | – | |||||||||||||||||||||
Materials | 5.7 | 5.7 | – | – | |||||||||||||||||||||
Industrials | 7.6 | 7.6 | – | – | |||||||||||||||||||||
Consumer discretionary | 5.2 | 5.2 | – | – | |||||||||||||||||||||
Consumer staples | 6.8 | 6.8 | – | – | |||||||||||||||||||||
Healthcare | 9.7 | 9.7 | – | – | |||||||||||||||||||||
Financials | 15.8 | 15.8 | – | – | |||||||||||||||||||||
Information technology | 5.8 | 5.8 | – | – | |||||||||||||||||||||
Telecommunication services | 2.6 | 2.6 | – | – | |||||||||||||||||||||
Utilities | 3.4 | 3.4 | – | – | |||||||||||||||||||||
Other | 35.7 | 33.2 | 2.5 | – | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
Government bonds | 64.4 | – | 64.4 | – | |||||||||||||||||||||
Corporate bonds | 65.9 | – | 65.9 | – | |||||||||||||||||||||
Asset-backed securities | 24 | – | 24 | – | |||||||||||||||||||||
Other debt | 2.8 | – | 2.8 | – | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||
Mortgage loans | 9 | – | 9 | – | |||||||||||||||||||||
Insurance contracts | 6.4 | – | 6.4 | – | |||||||||||||||||||||
Other investments | 14.7 | – | 14.7 | – | |||||||||||||||||||||
Real estate | 68.2 | – | – | 68.2 | |||||||||||||||||||||
Total | $ | 372.3 | $ | 114.4 | $ | 189.7 | $ | 68.2 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 12.7 | $ | 12.7 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Energy | 1.7 | 1.7 | – | – | |||||||||||||||||||||
Materials | 2.6 | 2.6 | – | – | |||||||||||||||||||||
Industrials | 4.1 | 4.1 | – | – | |||||||||||||||||||||
Consumer discretionary | 2.2 | 2.2 | – | – | |||||||||||||||||||||
Consumer staples | 3 | 3 | – | – | |||||||||||||||||||||
Healthcare | 4.9 | 4.9 | – | – | |||||||||||||||||||||
Financials | 7.3 | 7.3 | – | – | |||||||||||||||||||||
Information technology | 2.5 | 2.5 | – | – | |||||||||||||||||||||
Telecommunication services | 1 | 1 | – | – | |||||||||||||||||||||
Utilities | 1.6 | 1.6 | – | – | |||||||||||||||||||||
Other | 35.1 | 32.5 | 2.6 | – | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
Government bonds | 44.9 | – | 44.9 | – | |||||||||||||||||||||
Corporate bonds | 37.9 | – | 37.9 | – | |||||||||||||||||||||
Asset-backed securities | 13.2 | – | 13.2 | – | |||||||||||||||||||||
Other debt | 1 | – | 1 | – | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||
Mortgage loans | 5.4 | – | 5.4 | – | |||||||||||||||||||||
Insurance contracts | 5.9 | – | 5.9 | – | |||||||||||||||||||||
Other investments | 7.5 | – | 7.5 | – | |||||||||||||||||||||
Real estate | 37.1 | – | – | 37.1 | |||||||||||||||||||||
Total | $ | 231.6 | $ | 76.1 | $ | 118.4 | $ | 37.1 | |||||||||||||||||
As of December 31, 2013 and 2012, our defined benefit pension plans’ assets did not hold any direct investment in Zimmer Holdings common stock. | |||||||||||||||||||||||||
Equity securities are valued using a market approach, based on quoted prices for the specific security from transactions in active exchange markets (Level 1), or in some cases where we are invested in mutual or collective funds, based upon the net asset value per unit of the fund which is determined from quoted market prices of the underlying securities in the fund’s portfolio (Level 2). Fixed income securities are valued using a market approach, based upon quoted prices for the specific security or from institutional bid evaluations. Some fixed income securities are in funds with a net asset value per unit which is determined using similar techniques for the underlying securities in the fund’s portfolio. Real estate is valued by discounting to present value the cash flows expected to be generated by the specific properties. | |||||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Beginning Balance | $ | 37.1 | |||||||||||||||||||||||
Gains on assets sold | 0.1 | ||||||||||||||||||||||||
Change in fair value of assets | 1.2 | ||||||||||||||||||||||||
Net purchases and sales | 28.1 | ||||||||||||||||||||||||
Translation gain | 1.7 | ||||||||||||||||||||||||
Ending Balance | $ | 68.2 | |||||||||||||||||||||||
We expect that we will have no legally required minimum funding requirements in 2014 for the qualified U.S. and Puerto Rico defined benefit retirement plans. We expect to voluntarily contribute approximately $2.0 million to these plans during 2014. Contributions to foreign defined benefit plans are estimated to be approximately $14.0 million in 2014. We do not expect the assets in any of our plans to be returned to us in the next year. | |||||||||||||||||||||||||
Defined Contribution Plans | |||||||||||||||||||||||||
We also sponsor defined contribution plans for substantially all of the U.S. and Puerto Rico employees and certain employees in other countries. The benefits offered under these plans are reflective of local customs and practices in the countries concerned. We expensed $29.6 million, $26.5 million and $25.7 million related to these plans for the years ended December 31, 2013, 2012 and 2011, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
15 | INCOME TAXES | ||||||||||||
The components of earnings before income taxes and the income taxes paid consisted of the following (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
United States operations | $ | 400.7 | $ | 409.9 | $ | 485.7 | |||||||
Foreign operations | 580.4 | 580.2 | 493.2 | ||||||||||
Total | $ | 981.1 | $ | 990.1 | $ | 978.9 | |||||||
The provision for income taxes consisted of (in millions): | |||||||||||||
Current: | |||||||||||||
Federal | $ | 199 | $ | 179.8 | $ | 148.4 | |||||||
State | 20.6 | 13.8 | 14.3 | ||||||||||
Foreign | 128.5 | 108.4 | 75.9 | ||||||||||
348.1 | 302 | 238.6 | |||||||||||
Deferred: | |||||||||||||
Federal | (87.7 | ) | (58.8 | ) | (2.6 | ) | |||||||
State | (8.5 | ) | 0.7 | (0.9 | ) | ||||||||
Foreign | (30.0 | ) | (6.7 | ) | (16.2 | ) | |||||||
(126.2 | ) | (64.8 | ) | (19.7 | ) | ||||||||
Provision for income taxes | $ | 221.9 | $ | 237.2 | $ | 218.9 | |||||||
Income taxes paid | $ | 272.3 | $ | 227.6 | $ | 236.4 | |||||||
A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows: | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
U.S. statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes, net of federal deduction | 0.8 | 1 | 0.7 | ||||||||||
Tax impact of foreign operations, including foreign tax credits | (12.2 | ) | (10.4 | ) | (11.0 | ) | |||||||
Tax impact of certain significant transactions | 1.6 | (3.5 | ) | – | |||||||||
Tax benefit relating to U.S. manufacturer’s deduction and export sales | (1.8 | ) | (1.9 | ) | (1.6 | ) | |||||||
R&D credit | (0.6 | ) | – | (0.5 | ) | ||||||||
Goodwill impairment | – | 3.4 | – | ||||||||||
Other | (0.2 | ) | 0.4 | (0.2 | ) | ||||||||
Effective income tax rate | 22.6 | % | 24 | % | 22.4 | % | |||||||
Our operations in Puerto Rico, Switzerland and the State of Indiana benefit from various tax incentive grants. Unless these grants are extended, they will expire between fiscal years 2014 and 2026. | |||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are recorded to reduce deferred income tax assets when it is more likely than not that an income tax benefit will not be realized. | |||||||||||||
The components of deferred taxes consisted of the following (in millions): | |||||||||||||
As of December, 31 | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Inventory | $ | 271.1 | $ | 225.1 | |||||||||
Net operating loss carryover | 26.4 | 26.8 | |||||||||||
Tax credit carryover | 187.1 | 16.4 | |||||||||||
Capital loss carryover | 7.8 | 4 | |||||||||||
Accrued liabilities | 72 | 67 | |||||||||||
Share-based compensation | 74.6 | 106.3 | |||||||||||
Unremitted earnings of foreign subsidiaries | 25.6 | 172.3 | |||||||||||
Other | 11.2 | 42.3 | |||||||||||
Total deferred tax assets | 675.8 | 660.2 | |||||||||||
Less: Valuation allowances | (42.7 | ) | (41.3 | ) | |||||||||
Total deferred tax assets after valuation | 633.1 | 618.9 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Fixed assets | $ | (97.7 | ) | $ | (93.9 | ) | |||||||
Intangible assets | (106.4 | ) | (140.6 | ) | |||||||||
Other | (1.2 | ) | (1.0 | ) | |||||||||
Total deferred tax liabilities | (205.3 | ) | (235.5 | ) | |||||||||
Total net deferred tax assets | $ | 427.8 | $ | 383.4 | |||||||||
The net operating loss carryovers are available to reduce future federal, state and foreign taxable earnings. At December 31, 2013, these net operating loss carryovers generally expire within a period of 1 to 20 years. Valuation allowances for net operating loss carryovers have been established in the amount of $17.3 million and $17.0 million at December 31, 2013 and 2012, respectively. The tax credit carryovers are available to offset future federal, state and foreign tax liabilities. At December 31, 2013, these tax credit carryovers generally expire within a period of 1 to 10 years. We have established valuation allowances for certain tax credit carryovers in the amount of $14.9 million and $14.2 million at December 31, 2013 and 2012, respectively. The capital loss carryover is also available to reduce future federal capital gains. At December 31, 2013 these capital loss carryovers generally expire within a period of 4 to 5 years. We have established valuation allowances for certain capital loss carryovers in the amount of $7.8 million and $4.0 million at December 31, 2013 and 2012, respectively. The remaining valuation allowances of $2.7 million and $6.1 million at December 31, 2013 and 2012, respectively, relate primarily to potential capital losses. | |||||||||||||
At December 31, 2013, we had an aggregate of approximately $3,354 million of unremitted earnings of foreign subsidiaries that have been, or are intended to be, indefinitely reinvested for continued use in foreign operations. If the total undistributed earnings of foreign subsidiaries were remitted, a significant amount of the additional tax would be offset by the allowable foreign tax credits. It is not practical for us to determine the additional tax related to remitting these earnings. | |||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Balance at January 1 | $ | 285.5 | $ | 158.4 | $ | 168 | |||||||
Increases related to prior periods | 16.5 | 118.7 | 11.4 | ||||||||||
Decreases related to prior periods | (17.3 | ) | (8.9 | ) | (49.0 | ) | |||||||
Increases related to current period | 22.5 | 19.1 | 34.4 | ||||||||||
Decreases related to settlements with taxing authorities | (2.9 | ) | (0.6 | ) | (4.8 | ) | |||||||
Decreases related to lapse of statute of limitations | – | (1.2 | ) | (1.6 | ) | ||||||||
Balance at December 31 | $ | 304.3 | $ | 285.5 | $ | 158.4 | |||||||
Amounts impacting effective tax rate, if recognized balance at December 31 | $ | 186.3 | $ | 159 | $ | 132.7 | |||||||
We recognize accrued interest and penalties, related to unrecognized tax benefits, as income tax expense. During 2013, we accrued interest and penalties of $8.2 million, and as of December 31, 2013, had recognized a liability for interest and penalties of $42.1 million. | |||||||||||||
During 2012, we accrued interest and penalties of $23.2 million, and as of December 31, 2012, had recognized a liability for interest and penalties of $33.9 million. We decreased interest and penalties by $12.1 million during 2011, and as of December 31, 2011, had recognized a liability for interest and penalties of $10.7 million. | |||||||||||||
We operate on a global basis and are subject to numerous and complex tax laws and regulations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. The amount of unrecognized tax benefits may change within the next twelve months between $0 and $60 million due to changes in audit status, expiration of statutes of limitations, settlements of tax assessments and other events which could impact our determination of unrecognized tax benefits. | |||||||||||||
During the second quarter of 2011, the IRS concluded their examination of our U.S. federal returns for years 2005 through 2007 and during the fourth quarter of 2013, the IRS concluded their examination of our U.S. federal returns for years 2008 through 2009. For years 2006 through 2009, the IRS has proposed adjustments reallocating profits between certain of our U.S. and foreign subsidiaries. We have disputed these proposed adjustments and continue to pursue resolution with the IRS. Although the ultimate timing for resolution of the disputed tax issues is uncertain, we anticipate that within the next twelve months we may settle certain tax matters with the IRS, and pay amounts for other unresolved tax matters in order to limit the potential impact of IRS interest charges. Final resolution of these matters could have a material impact on our income tax expense, results of operations, and cash flows for future periods. | |||||||||||||
State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state impact of any federal changes generally remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax returns in the process of examination, administrative appeals or litigation. | |||||||||||||
Our tax returns are currently under examination in various foreign jurisdictions. Foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include: Australia (2009 onward), Canada (2007 onward), France (2011 onward), Germany (2009 onward), Ireland (2009 onward), Italy (2010 onward), Japan (2010 onward), Korea (2008 onward), Puerto Rico (2008 onward), Switzerland (2012 onward), and the United Kingdom (2012 onward). |
CAPITAL_STOCK_AND_EARNINGS_PER
CAPITAL STOCK AND EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
CAPITAL STOCK AND EARNINGS PER SHARE | ' | ||||||||||||
16 | CAPITAL STOCK AND EARNINGS PER SHARE | ||||||||||||
We are authorized to issue 250 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2013. | |||||||||||||
The numerator for both basic and diluted earnings per share is net earnings available to common stockholders. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards. The following is a reconciliation of weighted average shares for the basic and diluted share computations (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding for basic net earnings per share | 169.6 | 174.9 | 187.6 | ||||||||||
Effect of dilutive stock options and other equity awards | 2.2 | 1.1 | 1.1 | ||||||||||
Weighted average shares outstanding for diluted net earnings per share | 171.8 | 176 | 188.7 | ||||||||||
For the year ended December 31, 2013, an average of 3.1 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock. For the years ended December 31, 2012 and 2011, an average of 11.9 million and 13.2 million options, respectively, were not included. | |||||||||||||
During 2013, we repurchased 9.1 million shares of our common stock at an average price of $78.88 per share for a total cash outlay of $719.0 million, including commissions. Effective January 1, 2014, we have a new share repurchase program that authorizes purchases of up to $1.0 billion with no expiration date. No further purchases will be made under the previous share repurchase program. |
SEGMENT_DATA
SEGMENT DATA | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
SEGMENT DATA | ' | ||||||||||||||||||||
17 | SEGMENT DATA | ||||||||||||||||||||
We design, develop, manufacture and market orthopaedic reconstructive implants, biologics, dental implants, spinal implants, trauma products and related surgical products which include surgical supplies and instruments designed to aid in surgical procedures and post-operation rehabilitation. We also provide other healthcare-related services. We manage operations through three major geographic segments – the Americas, which is comprised principally of the U.S. and includes other North, Central and South American markets; Europe, which is comprised principally of Europe and includes the Middle East and African markets; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets. This structure is the basis for our reportable segment information discussed below. Management evaluates reportable segment performance based upon segment operating profit exclusive of operating expenses pertaining to share-based payment expense, inventory step-up and certain other inventory and manufacturing related charges, “Certain claims,” goodwill impairment, “Special items,” and global operations and corporate functions. Global operations and corporate functions include research, development engineering, medical education, brand management, corporate legal, finance, and human resource functions, U.S., Puerto Rico and Ireland-based manufacturing operations and logistics and intangible asset amortization resulting from business combination accounting. Intercompany transactions have been eliminated from segment operating profit. Management reviews accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets by reportable segment exclusive of U.S., Puerto Rico and Ireland-based manufacturing operations and logistics and corporate assets. | |||||||||||||||||||||
Net sales and other information by segment is as follows (in millions): | |||||||||||||||||||||
Americas | Europe | Asia | Global | Total | |||||||||||||||||
Pacific | Operations | ||||||||||||||||||||
and | |||||||||||||||||||||
Corporate | |||||||||||||||||||||
Functions | |||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||
Net sales | $ | 2,619.80 | $ | 1,212.60 | $ | 791 | $ | – | $ | 4,623.40 | |||||||||||
Depreciation and amortization | 70.9 | 72.6 | 30.7 | 184.3 | 358.5 | ||||||||||||||||
Segment operating profit | 1,302.60 | 359.7 | 342.3 | (648.8 | ) | 1,355.80 | |||||||||||||||
Share-based payment expense | (48.5 | ) | |||||||||||||||||||
Inventory step-up | (8.0 | ) | |||||||||||||||||||
Certain claims | (47.0 | ) | |||||||||||||||||||
Special items | (216.7 | ) | |||||||||||||||||||
Operating profit | 1,035.60 | ||||||||||||||||||||
Long-lived assets | 810.8 | 306.3 | 107.6 | – | 1,224.70 | ||||||||||||||||
Total assets | 2,814.90 | 2,343.80 | 541.9 | 3,880.00 | 9,580.60 | ||||||||||||||||
Additions to instruments | 0.2 | 14.8 | 6.5 | 171.4 | 192.9 | ||||||||||||||||
Additions to other property, plant and equipment | 9 | 10.3 | 7.6 | 73.1 | 100 | ||||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||
Net sales | $ | 2,476.30 | $ | 1,177.40 | $ | 818 | $ | – | $ | 4,471.70 | |||||||||||
Depreciation and amortization | 73.7 | 73.6 | 36.3 | 179.5 | 363.1 | ||||||||||||||||
Segment operating profit | 1,256.30 | 369.1 | 311.1 | (562.9 | ) | 1,373.60 | |||||||||||||||
Share-based payment expense | (55.0 | ) | |||||||||||||||||||
Inventory step-up | (4.8 | ) | |||||||||||||||||||
Certain claims | (15.0 | ) | |||||||||||||||||||
Goodwill impairment | (96.0 | ) | |||||||||||||||||||
Special items | (155.4 | ) | |||||||||||||||||||
Operating profit | 1,047.40 | ||||||||||||||||||||
Long-lived assets | 776 | 326.1 | 108.6 | – | 1,210.70 | ||||||||||||||||
Total assets | 2,690.60 | 2,308.00 | 578.3 | 3,435.50 | 9,012.40 | ||||||||||||||||
Additions to instruments | – | 14 | 7.1 | 127.8 | 148.9 | ||||||||||||||||
Additions to other property, plant and equipment | 0.7 | 21.9 | 6.4 | 85.7 | 114.7 | ||||||||||||||||
As of and for the Year Ended December 31, 2011 | |||||||||||||||||||||
Net sales | $ | 2,440.80 | $ | 1,214.50 | $ | 796.5 | $ | – | $ | 4,451.80 | |||||||||||
Depreciation and amortization | 81 | 74.9 | 36.3 | 167.7 | 359.9 | ||||||||||||||||
Segment operating profit | 1,220.40 | 411.5 | 290.6 | (593.5 | ) | 1,329.00 | |||||||||||||||
Share-based payment expense | (60.5 | ) | |||||||||||||||||||
Inventory step-up | (11.4 | ) | |||||||||||||||||||
Certain claims | (157.8 | ) | |||||||||||||||||||
Special items | (75.2 | ) | |||||||||||||||||||
Operating profit | 1,024.10 | ||||||||||||||||||||
Long-lived assets | 769 | 330.6 | 107.7 | – | 1,207.30 | ||||||||||||||||
Total assets | 2,571.60 | 2,345.50 | 602.4 | 2,995.80 | 8,515.30 | ||||||||||||||||
Additions to instruments | – | 15.2 | 7.7 | 132.5 | 155.4 | ||||||||||||||||
Additions to other property, plant and equipment | 1.3 | 23.8 | 4.7 | 84 | 113.8 | ||||||||||||||||
The Americas long-lived tangible assets are located primarily in the U.S. $211.6 million of Europe long-lived tangible assets as of December 31, 2013 are located in Switzerland. | |||||||||||||||||||||
For segment reporting purposes, deployed instruments are included in the measurement of reportable segment assets while undeployed instruments at U.S., Puerto Rico and Ireland-based manufacturing operations and logistics are included in global operations and corporate functions. The majority of instruments are purchased by U.S., Puerto Rico and Ireland-based manufacturing operations and logistics and are deployed to the reportable segments as needed for the business. Therefore, the reportable segment assets include deployed instruments even though that reportable segment may not report the instrument addition. | |||||||||||||||||||||
U.S. sales were $2,418.2 million, $2,280.7 million and $2,263.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. Sales within any other individual country were less than 10 percent of our consolidated sales. Sales are attributable to a country based upon the customer’s country of domicile. | |||||||||||||||||||||
Beginning in 2013, our Knees product category net sales include certain early intervention products that are primarily used in knee procedures. In 2012 and 2011, these products were included in the Surgical and other product category. Net sales in the 2012 and 2011 periods related to these products have been reclassified to conform to the 2013 presentation. Net sales by product category are as follows (in millions): | |||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||
Reconstructive | |||||||||||||||||||||
Knees | $ | 1,909.90 | $ | 1,833.80 | $ | 1,835.90 | |||||||||||||||
Hips | 1,330.50 | 1,342.00 | 1,355.60 | ||||||||||||||||||
Extremities | 193.8 | 173.8 | 163.4 | ||||||||||||||||||
3,434.20 | 3,349.60 | 3,354.90 | |||||||||||||||||||
Dental | 239.3 | 237.7 | 248.1 | ||||||||||||||||||
Trauma | 315.6 | 307.9 | 285.8 | ||||||||||||||||||
Spine | 202.3 | 208.9 | 225 | ||||||||||||||||||
Surgical and other | 432 | 367.6 | 338 | ||||||||||||||||||
Total | $ | 4,623.40 | $ | 4,471.70 | $ | 4,451.80 | |||||||||||||||
LEASES
LEASES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
LEASES | ' | ||||
18 | LEASES | ||||
Total rent expense for the years ended December 31, 2013, 2012 and 2011 aggregated $49.2 million, $46.3 million and $47.0 million, respectively. | |||||
Future minimum rental commitments under non-cancelable operating leases in effect as of December 31, 2013 were (in millions): | |||||
For the Years Ending December 31, | |||||
2014 | $ | 47.6 | |||
2015 | 39.2 | ||||
2016 | 27.7 | ||||
2017 | 20.4 | ||||
2018 | 16 | ||||
Thereafter | 41.2 |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||||||||
19 | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||||||
Product Liability-Related Claims | |||||||||||||||||||||||||||||
We are subject to product liability claims arising in the ordinary course of our business. We establish standard accruals for product liability claims in conjunction with outside counsel based on current information and historical settlement information for open claims, related legal fees and claims incurred but not reported. These standard product liability accruals are recognized in selling, general and administrative expense. We may also establish provisions for certain product liability claims outside of the standard accruals that are recorded separately on our statement of earnings, such as the provision for claims related to the Durom Cup discussed below. We maintain insurance, subject to self-insured retention requirements, for losses from these and other claims. | |||||||||||||||||||||||||||||
On July 22, 2008, we temporarily suspended marketing and distribution of the Durom Cup in the U.S. Subsequently, a number of product liability lawsuits and other claims have been asserted against us. We have settled some of these claims and the others are still pending. Additional claims may be asserted in the future. | |||||||||||||||||||||||||||||
Initially, we estimated that any revision surgeries required would manifest themselves within two years of the original surgery. In the second quarter of 2010, based upon more recent claims information available, we revised our estimate to include all claims for revisions of original surgeries performed before July 22, 2008 (i.e., before our temporary suspension) on a worldwide basis, regardless of the amount of time between the revision surgery and the original surgery. In the fourth quarter of 2011, as additional claims information became available, we revised our estimates and methodology again to consolidate all estimated liabilities associated with Durom Cup-related claims regardless of whether the original surgery occurred before or after our temporary sales suspension. We recognized estimated claims that met the parameters noted in this paragraph during that time period as “Certain claims” on our statement of earnings. We recognized estimated claims outside these parameters as part of selling, general and administrative expense. The following table shows the line of our statement of earnings and the period in which Durom Cup-related claims were recognized: | |||||||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | Total | ||||||||||||||||||||||
Certain claims | $ | 47 | $ | 15 | $ | 157.8 | $ | 75 | $ | 35 | $ | 69 | $ | 398.8 | |||||||||||||||
Selling, general and administrative | – | – | 4.2 | 15.4 | 24.6 | 7.2 | 51.4 | ||||||||||||||||||||||
Total | $ | 47 | $ | 15 | $ | 162 | $ | 90.4 | $ | 59.6 | $ | 76.2 | $ | 450.2 | |||||||||||||||
As noted above, we maintain insurance for product liability claims, subject to self-insurance retention requirements. In 2008, we notified our insurance carriers of potential claims related to the Durom Cup. Based upon our most recent estimates for liabilities associated with the Durom Cup, as detailed above, we believe we may exhaust our self-insured retention under our insurance program. In this event, we would have a claim for insurance proceeds for ultimate losses which exceed the self-insured retention amount, subject to a 20 percent co-payment requirement and a cap. We believe our contracts with the insurance carriers are enforceable for these claims and therefore we believe it is highly probable that we would recover some amount from our insurance carriers if our ultimate losses exceed our self-insured retention. Accordingly, we have recognized a $218.0 million receivable in “other assets” on our consolidated balance sheet that reduced “Certain claims” expense for estimated insurance recoveries. As is customary in this process, our insurance carriers have reserved all rights under their respective policies and could still ultimately deny coverage for some or all of our insurance claims. | |||||||||||||||||||||||||||||
Our estimate, as of December 31, 2013, of the remaining liability for all Durom Cup-related claims is $379.0 million, of which $50.0 million is classified as short-term in “Other current liabilities” and $329.0 million is classified as long-term in “Other long-term liabilities” on our consolidated balance sheet. We expect to pay the majority of the Durom Cup-related claims within the next five years. | |||||||||||||||||||||||||||||
Our understanding of clinical outcomes with the Durom Cup and other large diameter hip cups continues to evolve. We rely on significant estimates in determining the provisions for Durom Cup-related claims, including the number of claims that we will receive and the average amount we will pay per claim. The actual number of claims that we receive and the amount we pay per claim may differ from our estimates. Since our understanding of the clinical outcomes is still evolving, we cannot reasonably estimate the possible loss or range of loss that may result from Durom Cup-related claims in excess of the losses we have accrued. | |||||||||||||||||||||||||||||
On August 20, 2008, Margo and Daniel Polett filed an action against us and an unrelated third party, Public Communications, Inc. (PCI), in the Court of Common Pleas, Philadelphia, Pennsylvania seeking an unspecified amount of damages for injuries and loss of consortium allegedly suffered by Mrs. Polett and her spouse, respectively. The complaint alleged that defendants were negligent in connection with Mrs. Polett’s participation in a promotional video featuring one of our knee products. The case was tried in November 2010 and the jury returned a verdict in favor of plaintiffs. The jury awarded $27.6 million in compensatory damages and apportioned fault 30 percent to plaintiffs, 34 percent to us and 36 percent to PCI. Under applicable law, we may be liable for any portion of the damages apportioned to PCI that it does not pay. On December 2, 2010, we and PCI filed a Motion for Post-Trial Relief seeking a judgment notwithstanding the verdict, a new trial or a remittitur. On June 10, 2011, the trial court entered an order denying our Motion for Post-Trial Relief and affirming the jury verdict in full and entered judgment for $20.3 million against us and PCI. On June 29, 2011, we filed a Notice of Appeal to the Superior Court of Pennsylvania and posted a bond for the verdict amount plus interest. Oral argument before the appellate court in Philadelphia, Pennsylvania was held as scheduled on March 13, 2012. On March 1, 2013, the Superior Court of Pennsylvania vacated the $27.6 million judgment and remanded the case for a new trial. On March 15, 2013, plaintiffs filed a motion for re-argument en banc, and on March 28, 2013, we filed our response in opposition. On May 9, 2013, the Superior Court of Pennsylvania granted plaintiffs’ motion for re-argument en banc. Oral argument (re-argument en banc) before the Superior Court of Pennsylvania was held on October 16, 2013. On December 20, 2013, the Court issued its opinion again vacating the trial court judgment and remanding the case for a new trial. On January 21, 2014, plaintiffs filed a petition for allowance of appeal in the Supreme Court of Pennsylvania, and on February 4, 2014, we filed our response in opposition. Although we are defending this lawsuit vigorously, its ultimate resolution is uncertain. | |||||||||||||||||||||||||||||
Following a wide-spread advertising campaign conducted by certain law firms beginning in 2010, a number of product liability lawsuits have been filed against us in various jurisdictions. The plaintiffs seek damages for personal injury, alleging that certain products within the NexGen Knee System suffer from defects that cause them to loosen prematurely. The majority of the cases are currently pending in a federal Multidistrict Litigation in the Northern District of Illinois. Other cases are pending in other state and federal courts, and additional lawsuits may be filed. As of December 31, 2013, discovery in these lawsuits was underway and no trial dates had been set. We have not accrued an estimated loss relating to these lawsuits because we believe the plaintiffs’ allegations are not consistent with the record of clinical success for these products. As a result, we do not believe that it is probable that we have incurred a liability, and we cannot reasonably estimate any loss that might eventually be incurred. Although we are vigorously defending these lawsuits, their ultimate resolution is uncertain. | |||||||||||||||||||||||||||||
Intellectual Property-Related Claims | |||||||||||||||||||||||||||||
On December 10, 2010, Stryker Corporation and related entities (Stryker) filed suit against us in the U.S. District Court for the Western District of Michigan, alleging that certain of our Pulsavac Plus Wound Debridement Products infringe three U.S. patents assigned to Stryker. The case was tried beginning on January 15, 2013, and on February 5, 2013, the jury found that we infringed certain claims of the subject patents. The jury awarded $70.0 million in monetary damages for lost profits. The jury also found that we willfully infringed the subject patents. We filed multiple post-trial motions, including a motion seeking a new trial. On August 7, 2013, the trial court issued a ruling denying all of our motions and awarded treble damages and attorneys’ fees to Stryker. We filed a notice of appeal to the Court of Appeals for the Federal Circuit to seek reversal of both the jury’s verdict and the trial court’s rulings on our post-trial motions. That appeal is pending. We have not accrued an estimated loss related to this matter in our consolidated statement of earnings for the quarter ended December 31, 2013 or any prior period because we do not believe that it is probable that we have incurred a liability. Although we believe we have strong grounds to reverse the trial court’s judgment, the ultimate resolution of this matter is uncertain. In the future we could be required to record a charge of up to $210.0 million plus interest and attorneys’ fees that could have a material adverse effect on our results of operations. | |||||||||||||||||||||||||||||
Regulatory Matters | |||||||||||||||||||||||||||||
In September 2012, we received a warning letter from the U.S. Food and Drug Administration (FDA) citing concerns relating to certain manufacturing and validation processes pertaining to Trilogy® Acetabular System products manufactured at our Ponce, Puerto Rico manufacturing facility. We have provided detailed responses to the FDA as to our corrective actions and will continue to work expeditiously to address the issues identified by the FDA during inspections in Ponce. As of December 31, 2013, the warning letter remains pending. Until the violations are corrected, we may be subject to additional regulatory action by the FDA, including seizure, injunction and/or civil monetary penalties. Additionally, requests for Certificates to Foreign Governments related to products manufactured at the Ponce facility may not be granted and premarket approval applications for Class III devices to which the quality system regulation deviations are reasonably related will not be approved until the violations have been corrected. In addition to responding to the warning letter described above, we are in the process of addressing various FDA Form 483 inspectional observations at certain of our manufacturing facilities. The ultimate outcome of these matters is presently uncertain. |
QUARTERLY_FINANCIAL_INFORMATIO
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ' | ||||||||||||||||||||||||||||||||
20 | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||||||
2013 Quarter Ended | 2012 Quarter Ended | ||||||||||||||||||||||||||||||||
Mar | Jun | Sep | Dec | Mar | Jun | Sep | Dec | ||||||||||||||||||||||||||
Net sales | $ | 1,138.90 | $ | 1,169.50 | $ | 1,074.30 | $ | 1,240.70 | $ | 1,140.70 | $ | 1,125.00 | $ | 1,025.50 | $ | 1,180.50 | |||||||||||||||||
Gross profit | 846 | 845.9 | 745.5 | 899.9 | 852 | 843.1 | 769.8 | 881.6 | |||||||||||||||||||||||||
Net earnings of Zimmer Holdings, Inc. | 218.6 | 152.1 | 154.4 | 235.9 | 209.6 | 214.5 | 178.1 | 152.8 | |||||||||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||||||
Basic | 1.3 | 0.9 | 0.91 | 1.38 | 1.18 | 1.22 | 1.02 | 0.88 | |||||||||||||||||||||||||
Diluted | 1.28 | 0.89 | 0.9 | 1.36 | 1.17 | 1.22 | 1.02 | 0.88 | |||||||||||||||||||||||||
The quarter ending December 31, 2012 included a $96.0 million goodwill impairment charge. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||||||
Schedule II | |||||||||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Description | Balance at | Additions | Deductions | Effects of | Acquired | Balance at | |||||||||||||||||||
Beginning | Charged | to Reserve | Foreign | Allowances | End of | ||||||||||||||||||||
of Period | (Credited) | Currency | Period | ||||||||||||||||||||||
to Expense | |||||||||||||||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||||||||||||
Year Ended December 31, 2011 | $ | 14.4 | $ | 4.5 | $ | (1.7 | ) | $ | – | $ | – | $ | 17.2 | ||||||||||||
Year Ended December 31, 2012 | 17.2 | 7.1 | (1.8 | ) | – | 0.3 | 22.8 | ||||||||||||||||||
Year Ended December 31, 2013 | 22.8 | 1.9 | (1.5 | ) | (0.5 | ) | – | 22.7 | |||||||||||||||||
Deferred Tax Asset Valuation Allowances: | |||||||||||||||||||||||||
Year End December 31, 2011 | $ | 39.9 | $ | 1.1 | $ | (0.7 | ) | $ | – | $ | – | $ | 40.3 | ||||||||||||
Year End December 31, 2012 | 40.3 | (0.9 | ) | (0.3 | ) | – | 2.2 | 41.3 | |||||||||||||||||
Year End December 31, 2013 | 41.3 | 1.5 | (0.1 | ) | – | – | 42.7 |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Basis of Presentation | ' | ||||||||||||
Basis of Presentation – The consolidated financial statements include the accounts of Zimmer Holdings and its subsidiaries in which it holds a controlling financial interest. All significant intercompany accounts and transactions are eliminated. The consolidated financial statements for some of our international subsidiaries are for an annual period that ended on December 25, 2013, 2012 and 2011. Certain amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates – The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the U.S. which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation – The financial statements of our foreign subsidiaries are translated into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive income in stockholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, we recognize a transaction gain or loss when the transaction is settled. Foreign currency transaction gains and losses included in net earnings for the years ended December 31, 2013, 2012 and 2011 were not significant. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition – We sell product through three principal channels: 1) direct to healthcare institutions, referred to as direct channel accounts; 2) through stocking distributors and healthcare dealers; and 3) directly to dental practices and dental laboratories. The direct channel accounts represented approximately 80 percent of our net sales in 2013. Through this channel, inventory is generally consigned to sales agents or customers so that products are available when needed for surgical procedures. No revenue is recognized upon the placement of inventory into consignment as we retain title and maintain the inventory on our balance sheet. Upon implantation, we issue an invoice and revenue is recognized. Pricing for products is generally predetermined by contracts with customers, agents acting on behalf of customer groups or by government regulatory bodies, depending on the market. Price discounts under group purchasing contracts are generally linked to volume of implant purchases by customer healthcare institutions within a specified group. At negotiated thresholds within a contract buying period, price discounts may increase. | |||||||||||||
Sales to stocking distributors, healthcare dealers, dental practices and dental laboratories accounted for approximately 20 percent of our net sales in 2013. With these types of sales, revenue is recognized when title to product passes, either upon shipment of the product or in some cases upon implantation of the product. Product is generally sold at contractually fixed prices for specified periods. Payment terms vary by customer, but are typically less than 90 days. | |||||||||||||
If sales incentives are earned by a customer for purchasing a specified amount of our product, we estimate whether such incentives will be achieved and, if so, recognize these incentives as a reduction in revenue in the same period the underlying revenue transaction is recognized. Occasionally products are returned and, accordingly, we maintain an estimated sales return reserve that is recorded as a reduction in revenue. Product returns were not significant for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||
Taxes collected from customers and remitted to governmental authorities are presented on a net basis and excluded from revenues. | |||||||||||||
Shipping and Handling | ' | ||||||||||||
Shipping and Handling – Amounts billed to customers for shipping and handling of products are reflected in net sales and are not significant. Expenses incurred related to shipping and handling of products are reflected in selling, general and administrative and were $163.6 million, $139.5 million and $142.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Research and Development | ' | ||||||||||||
Research and Development – We expense all research and development costs as incurred. Research and development costs include salaries, prototypes, depreciation of equipment used in research and development, consultant fees and service fees paid to collaborative partners. Where contingent milestone payments are due to third parties under research and development arrangements, the milestone payment obligations are expensed when the milestone results are achieved. | |||||||||||||
Litigation | ' | ||||||||||||
Litigation – We record a liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. | |||||||||||||
Special Items | ' | ||||||||||||
Special Items – We recognize expenses resulting directly from our business combinations, employee termination benefits, certain R&D agreements, certain contract terminations, consulting and professional fees and asset impairment or loss on disposal charges connected with global restructuring, operational and quality excellence initiatives, and other items as “Special items” in our consolidated statement of earnings. “Special items” included (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Impairment/loss on disposal of assets | $ | 10.9 | $ | 14.6 | $ | 8.4 | |||||||
Consulting and professional fees | 99.1 | 90.1 | 26 | ||||||||||
Employee severance and retention, including share-based compensation acceleration | 14.2 | 8.2 | 23.1 | ||||||||||
Dedicated project personnel | 34 | 15.1 | 3.2 | ||||||||||
Certain R&D agreements | 0.8 | – | – | ||||||||||
Relocated facilities | 3.6 | 1.8 | – | ||||||||||
Distributor acquisitions | 0.4 | 0.8 | 2 | ||||||||||
Certain litigation matters | 26.9 | 13.7 | 0.1 | ||||||||||
Contract terminations | 3.9 | 6.6 | 6.3 | ||||||||||
Contingent consideration adjustments | 9 | (2.8 | ) | – | |||||||||
Accelerated software amortization | 6 | 4.5 | – | ||||||||||
Other | 7.9 | 2.8 | 6.1 | ||||||||||
Special items | $ | 216.7 | $ | 155.4 | $ | 75.2 | |||||||
Impairment/ loss on disposal of assets relates to impairment of intangible assets that were acquired in business combinations or impairment of or a loss on the disposal of other assets. | |||||||||||||
Consulting and professional fees relate to third-party consulting, professional fees and contract labor related to our quality and operational excellence initiatives, third-party consulting fees related to certain information system implementations, third-party integration consulting performed in a variety of areas such as tax, compliance, logistics and human resources for our business combinations, third-party fees related to severance and termination benefits matters and legal fees related to certain product liability matters. Our quality and operational excellence initiatives are company-wide and include improvements in quality, distribution, sourcing, manufacturing and information technology, among other areas. | |||||||||||||
In 2013, 2012 and 2011, we eliminated positions as we reduced management layers, restructured certain areas, announced closures of certain facilities, and commenced initiatives to focus on business opportunities that best support our strategic priorities. In 2013, 2012 and 2011, approximately 170, 400 and 500 positions, respectively, from across the globe were affected by these actions. As a result of these changes in our work force and headcount reductions in connection with acquisitions, we incurred expenses related to severance benefits, redundant salaries as we worked through transition periods, share-based compensation acceleration and other employee termination-related costs. The majority of these termination benefits were provided in accordance with our existing or local government policies and are considered ongoing benefits. These costs were accrued when they became probable and estimable and were recorded as part of other current liabilities. The majority of these costs were paid during the year they were incurred. | |||||||||||||
Dedicated project personnel expenses include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our operational and quality excellence initiatives or integration of acquired businesses. | |||||||||||||
Certain R&D agreements relate to agreements with upfront payments to obtain intellectual property to be used in R&D projects that have no alternative future use in other projects. | |||||||||||||
Relocated facilities expenses are the moving costs and the lease expenses incurred during the relocation period in connection with relocating certain facilities. | |||||||||||||
Over the past few years we have acquired a number of U.S. and foreign-based distributors. We have incurred various costs related to the consummation and integration of those businesses. | |||||||||||||
Certain litigation matters relate to costs and adjustments recognized during the year for the estimated or actual settlement of various legal matters, including royalty disputes, patent litigation matters, commercial litigation matters and matters arising from our acquisitions of certain competitive distributorships in prior years. | |||||||||||||
Contract termination costs relate to terminated agreements in connection with the integration of acquired companies and changes to our distribution model as part of business restructuring and operational excellence initiatives. The terminated contracts primarily relate to sales agents and distribution agreements. | |||||||||||||
Contingent consideration adjustments represent the changes in the fair value of contingent consideration obligations to be paid to the prior owners of acquired businesses. | |||||||||||||
Accelerated software amortization is the incremental amortization resulting from a reduction in the estimated life of certain software. In 2012, we approved a plan to replace certain software. As a result, the estimated economic useful life of the existing software was decreased to represent the period of time expected to implement replacement software. As a result, the amortization from the shortened life of this software is substantially higher than the previous amortization being recognized. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents – We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value. | |||||||||||||
Investments | ' | ||||||||||||
Investments – We invest our excess cash and cash equivalents in debt securities. Our investments include corporate debt securities, U.S. government and agency debt securities, foreign government debt securities, commercial paper and certificates of deposit, and are classified and accounted for as available-for-sale. Available-for-sale debt securities are recorded at fair value on our consolidated balance sheet. Investments with a contractual maturity of less than one year are classified as short-term investments on our consolidated balance sheet, or in other non-current assets if the contractual maturity is greater than one year. Changes in fair value for available-for-sale securities are recorded, net of taxes, as a component of accumulated other comprehensive loss on our consolidated balance sheet. We review our investments for other-than-temporary impairment at each reporting period. If an unrealized loss for any investment is considered to be other-than-temporary, the loss will be recognized in the consolidated statement of earnings in the period the determination is made. See Note 7 for more information regarding our investments. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable – Accounts receivable consists of trade and other miscellaneous receivables. We grant credit to customers in the normal course of business and maintain an allowance for doubtful accounts for potential credit losses. We determine the allowance for doubtful accounts by geographic market and take into consideration historical credit experience, creditworthiness of the customer and other pertinent information. We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off the account against the allowance when we determine the account is uncollectible. The allowance for doubtful accounts was $22.7 million and $22.8 million as of December 31, 2013 and 2012, respectively. | |||||||||||||
Inventories | ' | ||||||||||||
Inventories – Inventories are stated at the lower of cost or market, with cost determined on a first-in first-out basis. | |||||||||||||
Property, Plant and Equipment | ' | ||||||||||||
Property, Plant and Equipment – Property, plant and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on estimated useful lives of ten to forty years for buildings and improvements and three to eight years for machinery and equipment. Maintenance and repairs are expensed as incurred. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. | |||||||||||||
Software Costs | ' | ||||||||||||
Software Costs – We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs generally include external direct costs of materials and services utilized in developing or obtaining computer software and compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line or weighted average estimated user basis when the software is ready for its intended use over the estimated useful lives of the software, which approximate three to fifteen years. | |||||||||||||
Instruments | ' | ||||||||||||
Instruments – Instruments are hand-held devices used by surgeons during total joint replacement and other surgical procedures. Instruments are recognized as long-lived assets and are included in property, plant and equipment. Undeployed instruments are carried at cost or realizable value. Instruments in the field are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on average estimated useful lives, determined principally in reference to associated product life cycles, primarily five years. We review instruments for impairment whenever events or changes in circumstances indicate that the carrying value of an instrument may not be recoverable. Depreciation of instruments is recognized as selling, general and administrative expense. | |||||||||||||
Goodwill | ' | ||||||||||||
Goodwill – Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. We perform annual impairment tests by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed, the fair value of the reporting unit and the implied fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as estimated growth rates and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the carrying value of the reporting unit’s assets may not be recoverable. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded to the extent that the implied fair value of the reporting unit goodwill is less than the carrying value of the reporting unit goodwill. During the year ended December 31, 2012, we recorded a goodwill impairment charge of $96.0 million related to our U.S. Spine reporting unit. We did not record a goodwill impairment charge during the year ended December 31, 2013. See Notes 8 and 9 for more information regarding goodwill and goodwill impairment. | |||||||||||||
Intangible Assets | ' | ||||||||||||
Intangible Assets – Intangible assets are initially measured at their fair value. We have determined the fair value of our intangible assets either by the fair value of the consideration exchanged for the intangible asset or the estimated after-tax discounted cash flows expected to be generated from the intangible asset. Intangible assets with an indefinite life, including certain trademarks and trade names, are not amortized. Indefinite life intangible assets are assessed annually to determine whether events and circumstances continue to support an indefinite life. Intangible assets with a finite life, including core and developed technology, certain trademarks and trade names, customer-related intangibles, intellectual property rights and patents and licenses are amortized on a straight-line basis over their estimated useful life, ranging from less than one year to 40 years. Intangible assets with a finite life are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||
Intangible assets with an indefinite life are tested for impairment annually or whenever events or circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The amount of the impairment loss to be recorded would be determined based upon the excess of the asset’s carrying value over its fair value. The fair values of indefinite lived intangible assets are determined based upon a discounted cash flow analysis using the relief from royalty method or a qualitative assessment may be performed for any changes to the asset’s fair value from the last quantitative assessment. The relief from royalty method estimates the cost savings associated with owning, rather than licensing, assets. Significant assumptions are incorporated into these discounted cash flow analyses such as estimated growth rates, royalty rates and risk-adjusted discount rates. We may do a qualitative assessment when the results of the previous quantitative test indicated that the asset’s fair value was significantly in excess of its carrying value. | |||||||||||||
In determining the useful lives of intangible assets, we consider the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, we consider the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Trademarks and trade names that do not have a wasting characteristic (i.e., there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life) are assigned an indefinite life. Trademarks and trade names that are related to products expected to be phased out are assigned lives consistent with the period in which the products bearing each brand are expected to be sold. For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition. Intellectual property rights are assigned useful lives that approximate the contractual life of any related patent or the period for which we maintain exclusivity over the intellectual property. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes – We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |||||||||||||
We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. Federal income taxes are provided on the portion of the income of foreign subsidiaries that is expected to be remitted to the U.S. | |||||||||||||
We operate on a global basis and are subject to numerous and complex tax laws and regulations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Because income tax adjustments in certain jurisdictions can be significant, we record accruals representing management’s best estimate of the probable resolution of these matters. To the extent additional information becomes available, such accruals are adjusted to reflect the revised estimated probable outcome. | |||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
Derivative Financial Instruments – We measure all derivative instruments at fair value and report them on our consolidated balance sheet as assets or liabilities. We maintain written policies and procedures that permit, under appropriate circumstances and subject to proper authorization, the use of derivative financial instruments solely for hedging purposes. The use of derivative financial instruments for trading or speculative purposes is prohibited by our policy. See Note 13 for more information regarding our derivative and hedging activities. | |||||||||||||
Other Comprehensive Income | ' | ||||||||||||
Other Comprehensive Income – Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to stockholders’ equity. Other comprehensive income is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, unrealized gains and losses on available-for-sale securities and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions. | |||||||||||||
Treasury Stock | ' | ||||||||||||
Treasury Stock – We account for repurchases of common stock under the cost method and present treasury stock as a reduction of stockholders’ equity. We reissue common stock held in treasury only for limited purposes. | |||||||||||||
Noncontrolling Interest | ' | ||||||||||||
Noncontrolling Interest – In 2011, we made an investment in a company in which we acquired a controlling financial interest, but not 100 percent of the equity. In 2013, we purchased additional shares of the company from the minority shareholders. Further information related to the noncontrolling interests of that investment has not been provided as it is not significant to our consolidated financial statements. | |||||||||||||
Accounting Pronouncements | ' | ||||||||||||
Accounting Pronouncements – Effective January 1, 2013, we adopted the FASB’s Accounting Standard Updates (ASUs) requiring reporting of amounts reclassified out of accumulated other comprehensive income (OCI) and balance sheet offsetting between derivative assets and liabilities. These ASUs only change financial statement disclosure requirements and therefore do not impact our financial position, results of operations or cash flows. See Note 12 for disclosures relating to OCI. See Note 13 for disclosures relating to balance sheet offsetting. | |||||||||||||
There are no other recently issued accounting pronouncements that we have not yet adopted that are expected to have a material effect on our financial position, results of operations or cash flows. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Expenses in Special Items | ' | ||||||||||||
“Special items” included (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Impairment/loss on disposal of assets | $ | 10.9 | $ | 14.6 | $ | 8.4 | |||||||
Consulting and professional fees | 99.1 | 90.1 | 26 | ||||||||||
Employee severance and retention, including share-based compensation acceleration | 14.2 | 8.2 | 23.1 | ||||||||||
Dedicated project personnel | 34 | 15.1 | 3.2 | ||||||||||
Certain R&D agreements | 0.8 | – | – | ||||||||||
Relocated facilities | 3.6 | 1.8 | – | ||||||||||
Distributor acquisitions | 0.4 | 0.8 | 2 | ||||||||||
Certain litigation matters | 26.9 | 13.7 | 0.1 | ||||||||||
Contract terminations | 3.9 | 6.6 | 6.3 | ||||||||||
Contingent consideration adjustments | 9 | (2.8 | ) | – | |||||||||
Accelerated software amortization | 6 | 4.5 | – | ||||||||||
Other | 7.9 | 2.8 | 6.1 | ||||||||||
Special items | $ | 216.7 | $ | 155.4 | $ | 75.2 | |||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Share-based Compensation Expense | ' | ||||||||||||||||
Share-based compensation expense is as follows (in millions): | |||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Stock options | $ | 24.7 | $ | 32.4 | $ | 41.7 | |||||||||||
RSUs and other | 23.8 | 22.6 | 18.8 | ||||||||||||||
Total expense, pre-tax | 48.5 | 55 | 60.5 | ||||||||||||||
Tax benefit related to awards | (15.6 | ) | (16.6 | ) | (17.8 | ) | |||||||||||
Total expense, net of tax | $ | 32.9 | $ | 38.4 | $ | 42.7 | |||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of stock option activity for the year ended December 31, 2013 is as follows (options in thousands): | |||||||||||||||||
Stock Options | Weighted | Weighted | Intrinsic | ||||||||||||||
Average | Average | Value | |||||||||||||||
Exercise | Remaining | (in millions) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
Outstanding at January 1, 2013 | 16,638 | $ | 68.74 | ||||||||||||||
Options granted | 1,603 | 73.4 | |||||||||||||||
Options exercised | (7,008 | ) | 67.67 | ||||||||||||||
Options forfeited | (304 | ) | 65.68 | ||||||||||||||
Options expired | (188 | ) | 76.09 | ||||||||||||||
Outstanding at December 31, 2013 | 10,741 | $ | 70.06 | 5 | $ | 248.4 | |||||||||||
Vested or expected to vest as of December 31, 2013 | 10,329 | $ | 70.12 | 4.9 | $ | 238.3 | |||||||||||
Exercisable at December 31, 2013 | 7,375 | $ | 71.44 | 3.5 | $ | 160.4 | |||||||||||
Weighted Average Fair Value for Stock Options Granted | ' | ||||||||||||||||
The following table presents information regarding the weighted average fair value for stock options granted, the assumptions used to determine fair value, and the intrinsic value of options exercised in the indicated year: | |||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Dividend yield | 1.1 | % | 1.1 | % | – | % | |||||||||||
Volatility | 24.5 | % | 25.6 | % | 26.1 | % | |||||||||||
Risk-free interest rate | 1.1 | % | 1.5 | % | 2.2 | % | |||||||||||
Expected life (years) | 6.1 | 6.1 | 6.1 | ||||||||||||||
Weighted average fair value of options granted | $ | 16.33 | $ | 15.4 | $ | 18.33 | |||||||||||
Intrinsic value of options exercised (in millions) | $ | 97.9 | $ | 17.1 | $ | 27.5 | |||||||||||
Summary of Nonvested RSU Activity | ' | ||||||||||||||||
A summary of nonvested RSU activity for the year ended December 31, 2013 is as follows (RSUs in thousands): | |||||||||||||||||
RSUs | Weighted Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2013 | 1,445 | $ | 61.11 | ||||||||||||||
Granted | 581 | 74.22 | |||||||||||||||
Vested | (434 | ) | 55.8 | ||||||||||||||
Forfeited | (138 | ) | 65.03 | ||||||||||||||
Outstanding at December 31, 2013 | 1,454 | 67.42 | |||||||||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
Inventories consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Finished goods | $ | 817 | $ | 786.3 | |||||
Work in progress | 77.4 | 52.3 | |||||||
Raw materials | 180.1 | 156.7 | |||||||
Inventories | $ | 1,074.50 | $ | 995.3 | |||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Land | $ | 21.7 | $ | 22.1 | |||||
Building and equipment | 1,353.10 | 1,232.80 | |||||||
Capitalized software costs | 272.6 | 241.8 | |||||||
Instruments | 1,610.60 | 1,579.80 | |||||||
Construction in progress | 58.2 | 117.8 | |||||||
3,316.20 | 3,194.30 | ||||||||
Accumulated depreciation | (2,091.5 | ) | (1,983.6 | ) | |||||
Property, plant and equipment, net | $ | 1,224.70 | $ | 1,210.70 | |||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Investments in Short and Long-Term Classified as Available-for-Sale Securities | ' | ||||||||||||||||
We invest in short and long-term investments classified as available-for-sale securities. Information regarding our investments is as follows (in millions): | |||||||||||||||||
Gross Unrealized | Fair | ||||||||||||||||
Amortized | Gains | Losses | value | ||||||||||||||
Cost | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Corporate debt securities | $ | 457.6 | $ | 0.4 | $ | (0.1 | ) | $ | 457.9 | ||||||||
U.S. government and agency debt securities | 211.1 | 0.1 | – | 211.2 | |||||||||||||
Foreign government debt securities | 3.1 | – | – | 3.1 | |||||||||||||
Commercial paper | 68.3 | – | – | 68.3 | |||||||||||||
Certificates of deposit | 67.2 | – | – | 67.2 | |||||||||||||
Total short and long-term investments | $ | 807.3 | $ | 0.5 | $ | (0.1 | ) | $ | 807.7 | ||||||||
As of December 31, 2012 | |||||||||||||||||
Corporate debt securities | $ | 383.6 | $ | 0.3 | $ | (0.1 | ) | $ | 383.8 | ||||||||
U.S. government and agency debt securities | 295.8 | 0.1 | – | 295.9 | |||||||||||||
Foreign government debt securities | 5 | – | – | 5 | |||||||||||||
Commercial paper | 138.7 | – | – | 138.7 | |||||||||||||
Certificates of deposit | 92.2 | 0.1 | – | 92.3 | |||||||||||||
Total short and long-term investments | $ | 915.3 | $ | 0.5 | $ | (0.1 | ) | $ | 915.7 | ||||||||
Cost and Fair Value of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity | ' | ||||||||||||||||
The amortized cost and fair value of our available-for-sale fixed-maturity securities by contractual maturity are as follows (in millions): | |||||||||||||||||
As of December 31, 2013 | Amortized Cost | Fair | |||||||||||||||
Value | |||||||||||||||||
Due in one year or less | $ | 726.7 | $ | 727 | |||||||||||||
Due after one year through two years | 80.6 | 80.7 | |||||||||||||||
Total | $ | 807.3 | $ | 807.7 | |||||||||||||
FAIR_VALUE_MEASUREMENTS_OF_ASS1
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ' | ||||||||||||||||||||
The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
at Reporting Date Using: | |||||||||||||||||||||
Description | Recorded | Quoted Prices | Significant Other | Significant | |||||||||||||||||
Balance | in Active | Observable | Unobservable | ||||||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Corporate debt securities | $ | 457.9 | $ | – | $ | 457.9 | $ | – | |||||||||||||
U.S. government and agency debt securities | 211.2 | – | 211.2 | – | |||||||||||||||||
Foreign government debt securities | 3.1 | – | 3.1 | – | |||||||||||||||||
Commercial paper | 68.3 | – | 68.3 | – | |||||||||||||||||
Certificates of deposit | 67.2 | – | 67.2 | – | |||||||||||||||||
Total available-for-sale securities | 807.7 | – | 807.7 | – | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts and options | 68.7 | – | 68.7 | – | |||||||||||||||||
Interest rate swaps | 16.3 | – | 16.3 | – | |||||||||||||||||
$ | 892.7 | $ | – | $ | 892.7 | $ | – | ||||||||||||||
Liabilities | |||||||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts and options | 20.6 | – | 20.6 | – | |||||||||||||||||
Interest rate swaps | 7 | – | 7 | – | |||||||||||||||||
$ | 27.6 | $ | – | $ | 27.6 | $ | – | ||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Fair Value Measurements at Reporting Date | |||||||||||||||||||||
Using: | |||||||||||||||||||||
Description | Recorded | Quoted Prices | Significant Other | Significant | |||||||||||||||||
Balance | in Active | Observable | Unobservable | ||||||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||
Corporate debt securities | $ | 383.8 | $ | – | $ | 383.8 | $ | – | |||||||||||||
U.S. government and agency debt securities | 295.9 | – | 295.9 | – | |||||||||||||||||
Foreign government debt securities | 5 | – | 5 | – | |||||||||||||||||
Commercial paper | 138.7 | – | 138.7 | – | |||||||||||||||||
Certificates of deposit | 92.3 | – | 92.3 | – | |||||||||||||||||
Total available-for-sale securities | 915.7 | – | 915.7 | – | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts and options | 28.4 | – | 28.4 | – | |||||||||||||||||
Interest rate swaps | 33.9 | – | 33.9 | – | |||||||||||||||||
$ | 978 | $ | – | $ | 978 | $ | – | ||||||||||||||
Liabilities | |||||||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||||||
Foreign currency forward contracts | $ | 10.8 | $ | – | $ | 10.8 | $ | – | |||||||||||||
Schedule of Nonfinancial Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||||||
The following nonfinancial assets were measured at fair value on a nonrecurring basis (in millions): | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Description | Total | Quoted Prices | Significant | Significant | Total | ||||||||||||||||
in Active | Other | Unobservable | Losses | ||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Indefinite-lived intangible assets | $ | 21 | $ | – | $ | – | $ | 21 | $ | 2.8 | |||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Goodwill | $ | 41 | $ | 41 | $ | 96 | |||||||||||||||
Indefinite-lived intangible assets | 24.2 | – | – | 24.2 | 11.6 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | ||||||||||||||||||||||||
The following table summarizes the changes in the carrying amount of goodwill (in millions): | |||||||||||||||||||||||||
Americas | Europe | Asia Pacific | Total | ||||||||||||||||||||||
Balance at January 1, 2012 | |||||||||||||||||||||||||
Goodwill | $ | 1,595.30 | $ | 1,111.80 | $ | 195.9 | $ | 2,903.00 | |||||||||||||||||
Accumulated impairment losses | (277.0 | ) | – | – | (277.0 | ) | |||||||||||||||||||
1,318.30 | 1,111.80 | 195.9 | 2,626.00 | ||||||||||||||||||||||
U.S. Spine reporting unit impairment | (96.0 | ) | – | – | (96.0 | ) | |||||||||||||||||||
Acquisitions | 25.9 | – | – | 25.9 | |||||||||||||||||||||
Currency translation | 2.7 | 16.8 | (3.6 | ) | 15.9 | ||||||||||||||||||||
Balance at December 31, 2012 | |||||||||||||||||||||||||
Goodwill | 1,623.90 | 1,128.60 | 192.3 | 2,944.80 | |||||||||||||||||||||
Accumulated impairment losses | (373.0 | ) | – | – | (373.0 | ) | |||||||||||||||||||
1,250.90 | 1,128.60 | 192.3 | 2,571.80 | ||||||||||||||||||||||
Acquisitions | 11 | 24 | – | 35 | |||||||||||||||||||||
Currency translation | (5.0 | ) | 34.5 | (25.1 | ) | 4.4 | |||||||||||||||||||
Balance at December 31, 2013 | |||||||||||||||||||||||||
Goodwill | 1,629.90 | 1,187.10 | 167.2 | 2,984.20 | |||||||||||||||||||||
Accumulated impairment losses | (373.0 | ) | – | – | (373.0 | ) | |||||||||||||||||||
$ | 1,256.90 | $ | 1,187.10 | $ | 167.2 | $ | 2,611.20 | ||||||||||||||||||
Components of Identifiable Intangible Assets | ' | ||||||||||||||||||||||||
The components of identifiable intangible assets are as follows (in millions): | |||||||||||||||||||||||||
Technology | Intellectual | Trademarks | Customer | Other | Total | ||||||||||||||||||||
Property | and Trade | Relationships | |||||||||||||||||||||||
Rights | Names | ||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | $ | 700.4 | $ | 173.4 | $ | 43.3 | $ | 216.2 | $ | 95.1 | $ | 1,228.40 | |||||||||||||
Accumulated amortization | (401.4 | ) | (142.5 | ) | (33.9 | ) | (76.4 | ) | (43.9 | ) | (698.1 | ) | |||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | – | – | 177.4 | – | – | 177.4 | |||||||||||||||||||
Total identifiable intangible assets | $ | 299 | $ | 30.9 | $ | 186.8 | $ | 139.8 | $ | 51.2 | $ | 707.7 | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Intangible assets subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | $ | 695.1 | $ | 173.4 | $ | 47.4 | $ | 177 | $ | 95.7 | $ | 1,188.60 | |||||||||||||
Accumulated amortization | (362.5 | ) | (124.2 | ) | (31.1 | ) | (61.7 | ) | (46.0 | ) | (625.5 | ) | |||||||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||||||||
Gross carrying amount | – | – | 177.6 | – | – | 177.6 | |||||||||||||||||||
Total identifiable intangible assets | $ | 332.6 | $ | 49.2 | $ | 193.9 | $ | 115.3 | $ | 49.7 | $ | 740.7 | |||||||||||||
Intangible Amortization Expense | ' | ||||||||||||||||||||||||
Intangible amortization expense was recorded as follows (in millions): | |||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Cost of products sold | $ | 18.3 | $ | 24 | $ | 26.7 | |||||||||||||||||||
Selling, general and administrative | 77.6 | 73.1 | 67.1 | ||||||||||||||||||||||
Total intangible amortization | $ | 95.9 | $ | 97.1 | $ | 93.8 | |||||||||||||||||||
Estimated Annual Amortization Expense Based on Intangible Assets Recognized | ' | ||||||||||||||||||||||||
Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2013 for the years ending December 31, 2014 through 2018 is (in millions): | |||||||||||||||||||||||||
For the Years Ending December 31, | |||||||||||||||||||||||||
2014 | $ | 98 | |||||||||||||||||||||||
2015 | 84.7 | ||||||||||||||||||||||||
2016 | 74.4 | ||||||||||||||||||||||||
2017 | 61.6 | ||||||||||||||||||||||||
2018 | 45.8 |
OTHER_CURRENT_AND_LONGTERM_LIA1
OTHER CURRENT AND LONG-TERM LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables And Accruals [Abstract] | ' | ||||||||
Summary of Other Current and Long-Term Liabilities | ' | ||||||||
Other current and long-term liabilities consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Other current liabilities: | |||||||||
License and service agreements | $ | 109.2 | $ | 92.3 | |||||
Certain claims accrual (Note 19) | 50 | 50 | |||||||
Salaries, wages and benefits | 122.8 | 118.8 | |||||||
Accrued liabilities | 381.6 | 297.9 | |||||||
Total other current liabilities | $ | 663.6 | $ | 559 | |||||
Other long-term liabilities: | |||||||||
Long-term income tax payable | $ | 115 | $ | 213 | |||||
Certain claims accrual (Note 19) | 329 | 210.8 | |||||||
Other long-term liabilities | 132.6 | 135.5 | |||||||
Total other long-term liabilities | $ | 576.6 | $ | 559.3 | |||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Debt Instruments | ' | ||||||||
Our debt consisted of the following (in millions): | |||||||||
As of December 31, | 2013 | 2012 | |||||||
Short-term debt | |||||||||
Senior Credit Facility | $ | – | $ | 100 | |||||
Other short-term debt | 0.5 | 0.1 | |||||||
Total short-term debt | $ | 0.5 | $ | 100.1 | |||||
Long-term debt | |||||||||
Senior Notes due 2014 | $ | 250 | $ | 250 | |||||
Senior Notes due 2019 | 500 | 500 | |||||||
Senior Notes due 2021 | 300 | 300 | |||||||
Senior Notes due 2039 | 500 | 500 | |||||||
Term Loan | 112.4 | 138.6 | |||||||
Other long-term debt | 2.1 | – | |||||||
Debt discount | (1.5 | ) | (1.7 | ) | |||||
Adjustment related to interest rate swaps | 9.3 | 33.9 | |||||||
Total long-term debt | $ | 1,672.30 | $ | 1,720.80 | |||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Changes in Components of Other Comprehensive Income, Net of Tax | ' | ||||||||||||||||||||||||||||||||||||
The following table shows the changes in the components of OCI, net of tax (in millions): | |||||||||||||||||||||||||||||||||||||
Foreign | Cash | Unrealized | Defined | ||||||||||||||||||||||||||||||||||
Currency | Flow | Gains on | Benefit | ||||||||||||||||||||||||||||||||||
Translation | Hedges | Securities | Plan | ||||||||||||||||||||||||||||||||||
Items | |||||||||||||||||||||||||||||||||||||
Balance December 31, 2012 | $ | 445.5 | $ | 4.1 | $ | 0.4 | $ | (106.1 | ) | ||||||||||||||||||||||||||||
OCI before reclassifications | (44.4 | ) | 33.4 | 0.1 | 30.6 | ||||||||||||||||||||||||||||||||
Reclassifications | – | (4.4 | ) | – | 7.9 | ||||||||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 401.1 | $ | 33.1 | $ | 0.5 | $ | (67.6 | ) | ||||||||||||||||||||||||||||
Reclassification Adjustments from Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||||||||||||||
The following table shows the reclassification adjustments from OCI (in millions): | |||||||||||||||||||||||||||||||||||||
Amount of Gain / (Loss) | Location on Statement of Earnings | ||||||||||||||||||||||||||||||||||||
Reclassified from OCI | |||||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||||||||||||||
Component of OCI | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 8 | $ | (12.0 | ) | $ | (32.9 | ) | Cost of products sold | ||||||||||||||||||||||||||||
Foreign exchange options | (0.2 | ) | (0.4 | ) | – | Cost of products sold | |||||||||||||||||||||||||||||||
Cross-currency interest rate swaps | – | 0.2 | (8.3 | ) | Interest expense | ||||||||||||||||||||||||||||||||
7.8 | (12.2 | ) | (41.2 | ) | Total before tax | ||||||||||||||||||||||||||||||||
3.4 | (8.9 | ) | (16.7 | ) | Provision for income taxes | ||||||||||||||||||||||||||||||||
$ | 4.4 | $ | (3.3 | ) | $ | (24.5 | ) | Net of tax | |||||||||||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||||||||||||||
Prior service cost | $ | 3.9 | $ | 2.9 | $ | 0.8 | * | ||||||||||||||||||||||||||||||
Unrecognized actuarial (loss) | (16.6 | ) | (13.3 | ) | (7.4 | ) | * | ||||||||||||||||||||||||||||||
(12.7 | ) | (10.4 | ) | (6.6 | ) | Total before tax | |||||||||||||||||||||||||||||||
(4.8 | ) | (3.9 | ) | (2.6 | ) | Provision for income taxes | |||||||||||||||||||||||||||||||
$ | (7.9 | ) | $ | (6.5 | ) | $ | (4.0 | ) | Net of tax | ||||||||||||||||||||||||||||
Total reclassifications | $ | (3.5 | ) | $ | (9.8 | ) | $ | (28.5 | ) | Net of tax | |||||||||||||||||||||||||||
Tax Effects on Each Component of Other Comprehensive Income Recognized in Statements of Comprehensive Income | ' | ||||||||||||||||||||||||||||||||||||
The following table shows the tax effects on each component of OCI recognized in our consolidated statements of comprehensive income (in millions): | |||||||||||||||||||||||||||||||||||||
Before Tax | Tax | Net of Tax | |||||||||||||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||
Foreign currency cumulative translation adjustments | $ | (44.4 | ) | $ | 46.1 | $ | 4.6 | $ | – | $ | – | $ | – | $ | (44.4 | ) | $ | 46.1 | $ | 4.6 | |||||||||||||||||
Unrealized cash flow hedge gains/(losses) | 63.6 | 15.2 | (34.9 | ) | 30.2 | 4.3 | (4.3 | ) | 33.4 | 10.9 | (30.6 | ) | |||||||||||||||||||||||||
Reclassification adjustments on foreign currency hedges | (7.8 | ) | 12.2 | 41.2 | (3.4 | ) | 8.9 | 16.7 | (4.4 | ) | 3.3 | 24.5 | |||||||||||||||||||||||||
Unrealized gains on securities | 0.1 | 0.4 | 0.2 | – | – | – | 0.1 | 0.4 | 0.2 | ||||||||||||||||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 50.3 | 20.3 | (71.3 | ) | 11.8 | 8.5 | (23.0 | ) | 38.5 | 11.8 | (48.3 | ) | |||||||||||||||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | 61.8 | $ | 94.2 | $ | (60.2 | ) | $ | 38.6 | $ | 21.7 | $ | (10.6 | ) | $ | 23.2 | $ | 72.5 | $ | (49.6 | ) | ||||||||||||||||
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments Designated as Fair Value Hedges | ' | ||||||||||||||||||||||||||||
Derivative instruments designated as fair value hedges had the following effects on our consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||
Gain / (Loss) on Instrument | Gain / (Loss) on Hedged Item | ||||||||||||||||||||||||||||
Derivative Instrument | Location on Statement of Earnings | Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | (24.6 | ) | $ | 6.1 | $ | 26.3 | $ | 24.6 | $ | (6.1 | ) | $ | (26.3 | ) | |||||||||||||
Gross Unrealized Losses from Derivative Instruments | ' | ||||||||||||||||||||||||||||
Derivative instruments designated as cash flow hedges had the following effects, before taxes, on OCI and net earnings on our consolidated statements of earnings, consolidated statements of comprehensive income and consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||
Amount of Gain / (Loss) | Amount of Gain / (Loss) | ||||||||||||||||||||||||||||
Recognized in OCI | Reclassified from OCI | ||||||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||
Derivative Instrument | 2013 | 2012 | 2011 | Location on Statement of Earnings | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Foreign exchange forward contracts | $ | 63.9 | $ | 16.3 | $ | (34.9 | ) | Cost of products sold | $ | 8 | $ | (12.0 | ) | $ | (32.9 | ) | |||||||||||||
Foreign exchange options | (0.3 | ) | (1.1 | ) | (0.2 | ) | Cost of products sold | (0.2 | ) | (0.4 | ) | – | |||||||||||||||||
Cross-currency interest rate swaps | – | – | 0.2 | Interest expense | – | 0.2 | (8.3 | ) | |||||||||||||||||||||
$ | 63.6 | $ | 15.2 | $ | (34.9 | ) | $ | 7.8 | $ | (12.2 | ) | $ | (41.2 | ) | |||||||||||||||
Gains/(Losses) from Derivative Instruments Recognized in Cost of Products Sold | ' | ||||||||||||||||||||||||||||
The following gains/(losses) from these derivative instruments were recognized on our consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||
Derivative Instrument | Location on | Year Ended December 31, | |||||||||||||||||||||||||||
Statement of Earnings | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Cost of products sold | $ | – | $ | (2.0 | ) | $ | 2.7 | |||||||||||||||||||||
Fair Value of Derivative Instruments on a Gross Basis | ' | ||||||||||||||||||||||||||||
The fair value of derivative instruments on a gross basis is as follows (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 60.2 | Other current assets | $ | 29.7 | |||||||||||||||||||||||
Foreign exchange options | Other current assets | – | Other current assets | 0.6 | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 30.2 | Other assets | 19.8 | |||||||||||||||||||||||||
Interest rate swaps | Other assets | 16.3 | Other assets | 33.9 | |||||||||||||||||||||||||
Total asset derivatives | $ | 106.7 | $ | 84 | |||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 26.4 | Other current liabilities | $ | 20.2 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other long-term liabilities | 15.9 | Other current liabilities | 12.3 | |||||||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | 7 | Other long-term liabilities | – | |||||||||||||||||||||||||
Total liability derivatives | $ | 49.3 | $ | 32.5 | |||||||||||||||||||||||||
Schedule of Effects of Master Netting Agreements on Condensed Consolidated Balance Sheets | ' | ||||||||||||||||||||||||||||
The table below presents the effects of our master netting agreements on our consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||
Description | Location | Gross | Offset | Net Amount | Gross | Offset | Net Amount | ||||||||||||||||||||||
Amount | in Balance | Amount | in Balance | ||||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||
Cash flow hedges | Other current assets | $ | 60.2 | $ | 13.5 | $ | 46.7 | $ | 30.3 | $ | 15.2 | $ | 15.1 | ||||||||||||||||
Cash flow hedges | Other assets | 30.2 | 8.2 | 22 | 19.8 | 6.5 | 13.3 | ||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||
Cash flow hedges | Other current liabilities | 26.4 | 13.5 | 12.9 | 20.2 | 15.2 | 5 | ||||||||||||||||||||||
Cash flow hedges | Other long-term liabilities | 15.9 | 8.2 | 7.7 | 12.3 | 6.5 | 5.8 |
RETIREMENT_BENEFIT_PLANS_Table
RETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Components of Net Pension Expense | ' | ||||||||||||||||||||||||
The components of net pension expense for our defined benefit retirement plans are as follows (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 11.9 | $ | 11.4 | $ | 11.4 | $ | 16.1 | $ | 15 | $ | 16.8 | |||||||||||||
Interest cost | 13.2 | 13.3 | 13 | 5.6 | 6.1 | 7.3 | |||||||||||||||||||
Expected return on plan assets | (28.7 | ) | (25.5 | ) | (21.9 | ) | (6.7 | ) | (7.6 | ) | (9.6 | ) | |||||||||||||
Settlement | – | 0.7 | – | – | – | – | |||||||||||||||||||
Amortization of prior service cost | (2.6 | ) | (2.0 | ) | – | (1.3 | ) | (0.9 | ) | (0.8 | ) | ||||||||||||||
Amortization of unrecognized actuarial loss | 14.8 | 11.4 | 6.2 | 1.8 | 1.9 | 1.2 | |||||||||||||||||||
Net periodic benefit cost | $ | 8.6 | $ | 9.3 | $ | 8.7 | $ | 15.5 | $ | 14.5 | $ | 14.9 | |||||||||||||
Weighted Average Actuarial Assumptions Used to Determine Net Pension Expense for Our Defined Benefit Retirement Plans | ' | ||||||||||||||||||||||||
The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows: | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.32 | % | 4.97 | % | 5.82 | % | 2.13 | % | 2.58 | % | 2.82 | % | |||||||||||||
Rate of compensation increase | 3.29 | % | 3.81 | % | 3.81 | % | 2.29 | % | 2.77 | % | 2.64 | % | |||||||||||||
Expected long-term rate of return on plan assets | 7.75 | % | 7.75 | % | 7.75 | % | 2.74 | % | 3.51 | % | 4.01 | % | |||||||||||||
Changes in Projected Benefit Obligations and Plan Assets | ' | ||||||||||||||||||||||||
Changes in projected benefit obligations and plan assets were (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Projected benefit obligation – beginning of year | $ | 314.3 | $ | 290 | $ | 259.4 | $ | 235.1 | |||||||||||||||||
Service cost | 11.9 | 11.4 | 16.1 | 15 | |||||||||||||||||||||
Interest cost | 13.2 | 13.3 | 5.6 | 6.1 | |||||||||||||||||||||
Plan amendments | – | (17.1 | ) | 118.9 | (3.7 | ) | |||||||||||||||||||
Employee contributions | – | – | 15.9 | 17.5 | |||||||||||||||||||||
Benefits paid | (10.4 | ) | (7.0 | ) | (29.4 | ) | (21.3 | ) | |||||||||||||||||
Settlement | – | (1.1 | ) | – | – | ||||||||||||||||||||
Actuarial (gain) loss | (12.3 | ) | 24.8 | (17.7 | ) | 6.9 | |||||||||||||||||||
Expenses paid | – | – | (0.2 | ) | (0.2 | ) | |||||||||||||||||||
Translation loss | – | – | 2.9 | 4 | |||||||||||||||||||||
Projected benefit obligation – end of year | $ | 316.7 | $ | 314.3 | $ | 371.5 | $ | 259.4 | |||||||||||||||||
Changes in Fair Value of Plan Assets | ' | ||||||||||||||||||||||||
Plan assets at fair market value – beginning of year | $ | 363 | $ | 275.1 | $ | 231.6 | $ | 205.1 | |||||||||||||||||
Actual return on plan assets | 25.2 | 40.7 | 9.7 | 11.4 | |||||||||||||||||||||
Employer contributions | 20.8 | 54.2 | 15 | 15.5 | |||||||||||||||||||||
Employee contributions | – | – | 15.9 | 17.5 | |||||||||||||||||||||
Plan amendments | – | – | 126.7 | – | |||||||||||||||||||||
Benefits paid | (10.4 | ) | (7.0 | ) | (29.4 | ) | (21.3 | ) | |||||||||||||||||
Expenses paid | – | – | (0.2 | ) | (0.2 | ) | |||||||||||||||||||
Translation gain | – | – | 3 | 3.6 | |||||||||||||||||||||
Plan assets at fair market value – end of year | $ | 398.6 | $ | 363 | $ | 372.3 | $ | 231.6 | |||||||||||||||||
Funded status | $ | 81.9 | $ | 48.7 | $ | 0.8 | $ | (27.8 | ) | ||||||||||||||||
Summary of Amounts Recognized in Balance Sheet | ' | ||||||||||||||||||||||||
Amounts recognized in consolidated balance sheet: | |||||||||||||||||||||||||
Prepaid pension | $ | 92.7 | $ | 61.9 | $ | 12.1 | $ | 7.5 | |||||||||||||||||
Short-term accrued benefit liability | (0.7 | ) | (0.4 | ) | – | – | |||||||||||||||||||
Long-term accrued benefit liability | (10.1 | ) | (12.8 | ) | (11.3 | ) | (35.3 | ) | |||||||||||||||||
Net amount recognized | $ | 81.9 | $ | 48.7 | $ | 0.8 | $ | (27.8 | ) | ||||||||||||||||
Summary of Amounts Recognized in Other Comprehensive Income Loss | ' | ||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive income: | |||||||||||||||||||||||||
Unrecognized prior service cost | $ | (12.0 | ) | $ | (14.5 | ) | $ | (8.3 | ) | $ | (9.6 | ) | |||||||||||||
Unrecognized actuarial loss | 113.3 | 136.9 | 15.5 | 35.9 | |||||||||||||||||||||
Total amount recognized | $ | 101.3 | $ | 122.4 | $ | 7.2 | $ | 26.3 | |||||||||||||||||
Part of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
We estimate the following amounts recorded as part of accumulated other comprehensive income will be recognized as part of our net pension expense during 2014 (in millions): | |||||||||||||||||||||||||
U.S. and | Foreign | ||||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
Unrecognized prior service cost | $ | (2.6 | ) | $ | (1.2 | ) | |||||||||||||||||||
Unrecognized actuarial loss | 10.9 | 0.4 | |||||||||||||||||||||||
$ | 8.3 | $ | (0.8 | ) | |||||||||||||||||||||
Weighted Average Actuarial Assumptions Used to Determine Projected Benefit Obligation for Defined Benefit Retirement Plans | ' | ||||||||||||||||||||||||
The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows: | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Discount rate | 4.98 | % | 4.32 | % | 5.05 | % | 2.45 | % | 2.15 | % | 2.49 | % | |||||||||||||
Rate of compensation increase | 3.29 | % | 3.29 | % | 3.81 | % | 1.52 | % | 2.75 | % | 2.76 | % | |||||||||||||
Plans with Benefit Obligations in Excess of Plan Assets | ' | ||||||||||||||||||||||||
Plans with projected benefit obligations in excess of plan assets were as follows (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
As of December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Projected benefit obligation | $ | 10.8 | $ | 29.3 | $ | 318.1 | $ | 233.1 | |||||||||||||||||
Plan assets at fair market value | – | 16 | 307.4 | 197.7 | |||||||||||||||||||||
Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets | ' | ||||||||||||||||||||||||
Total accumulated benefit obligations and plans with accumulated benefit obligations in excess of plan assets were as follows (in millions): | |||||||||||||||||||||||||
U.S. and Puerto Rico | Foreign | ||||||||||||||||||||||||
As of December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Total accumulated benefit obligations | $ | 273.8 | $ | 268.7 | $ | 362.1 | $ | 244.9 | |||||||||||||||||
Plans with accumulated benefit obligations in excess of plan assets: | |||||||||||||||||||||||||
Accumulated benefit obligation | 8.8 | 26.9 | 308.9 | 191.9 | |||||||||||||||||||||
Plan assets at fair market value | – | 16 | 303.7 | 168.8 | |||||||||||||||||||||
Summary of Benefits Expected to be Paid Out | ' | ||||||||||||||||||||||||
The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions): | |||||||||||||||||||||||||
For the Years Ending December 31, | U.S. and | Foreign | |||||||||||||||||||||||
Puerto Rico | |||||||||||||||||||||||||
2014 | $ | 11.5 | $ | 18.3 | |||||||||||||||||||||
2015 | 11.6 | 19.4 | |||||||||||||||||||||||
2016 | 13.3 | 19.2 | |||||||||||||||||||||||
2017 | 14.7 | 19.3 | |||||||||||||||||||||||
2018 | 16.3 | 19.9 | |||||||||||||||||||||||
2019-2023 | 104.8 | 106 | |||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value | ' | ||||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Beginning Balance | $ | 37.1 | |||||||||||||||||||||||
Gains on assets sold | 0.1 | ||||||||||||||||||||||||
Change in fair value of assets | 1.2 | ||||||||||||||||||||||||
Net purchases and sales | 28.1 | ||||||||||||||||||||||||
Translation gain | 1.7 | ||||||||||||||||||||||||
Ending Balance | $ | 68.2 | |||||||||||||||||||||||
U S and Puerto Rico [Member] | ' | ||||||||||||||||||||||||
Fair Value of Pension Plan Assets | ' | ||||||||||||||||||||||||
The fair value of our U.S. and Puerto Rico pension plan assets by asset category was as follows (in millions): | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 0.8 | $ | 0.8 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large-cap | 79.6 | – | 79.6 | – | |||||||||||||||||||||
U.S. small-cap | 22.3 | – | 22.3 | – | |||||||||||||||||||||
International | 87.7 | – | 87.7 | – | |||||||||||||||||||||
Real estate | 43.4 | – | 43.4 | – | |||||||||||||||||||||
Commodity-linked mutual funds | 42.1 | – | 42.1 | – | |||||||||||||||||||||
Intermediate fixed income securities | 122.7 | – | 122.7 | – | |||||||||||||||||||||
Total | $ | 398.6 | $ | 0.8 | $ | 397.8 | $ | – | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 3.2 | $ | 3.2 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
U.S. large-cap | 60.3 | – | 60.3 | – | |||||||||||||||||||||
U.S. small-cap | 22.1 | – | 22.1 | – | |||||||||||||||||||||
International | 87.5 | – | 87.5 | – | |||||||||||||||||||||
Real estate | 29.5 | – | 29.5 | – | |||||||||||||||||||||
Commodity-linked mutual funds | 38.3 | – | 38.3 | – | |||||||||||||||||||||
Intermediate fixed income securities | 122.1 | – | 122.1 | – | |||||||||||||||||||||
Total | $ | 363 | $ | 3.2 | $ | 359.8 | $ | – | |||||||||||||||||
Foreign [Member] | ' | ||||||||||||||||||||||||
Fair Value of Pension Plan Assets | ' | ||||||||||||||||||||||||
The fair value of our foreign pension plan assets was as follows (in millions): | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 13.9 | $ | 13.9 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Energy | 4.7 | 4.7 | – | – | |||||||||||||||||||||
Materials | 5.7 | 5.7 | – | – | |||||||||||||||||||||
Industrials | 7.6 | 7.6 | – | – | |||||||||||||||||||||
Consumer discretionary | 5.2 | 5.2 | – | – | |||||||||||||||||||||
Consumer staples | 6.8 | 6.8 | – | – | |||||||||||||||||||||
Healthcare | 9.7 | 9.7 | – | – | |||||||||||||||||||||
Financials | 15.8 | 15.8 | – | – | |||||||||||||||||||||
Information technology | 5.8 | 5.8 | – | – | |||||||||||||||||||||
Telecommunication services | 2.6 | 2.6 | – | – | |||||||||||||||||||||
Utilities | 3.4 | 3.4 | – | – | |||||||||||||||||||||
Other | 35.7 | 33.2 | 2.5 | – | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
Government bonds | 64.4 | – | 64.4 | – | |||||||||||||||||||||
Corporate bonds | 65.9 | – | 65.9 | – | |||||||||||||||||||||
Asset-backed securities | 24 | – | 24 | – | |||||||||||||||||||||
Other debt | 2.8 | – | 2.8 | – | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||
Mortgage loans | 9 | – | 9 | – | |||||||||||||||||||||
Insurance contracts | 6.4 | – | 6.4 | – | |||||||||||||||||||||
Other investments | 14.7 | – | 14.7 | – | |||||||||||||||||||||
Real estate | 68.2 | – | – | 68.2 | |||||||||||||||||||||
Total | $ | 372.3 | $ | 114.4 | $ | 189.7 | $ | 68.2 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||||||||||
Asset Category | Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||
in Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||||||||||
Assets | (Level 2) | ||||||||||||||||||||||||
(Level 1) | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 12.7 | $ | 12.7 | $ | – | $ | – | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Energy | 1.7 | 1.7 | – | – | |||||||||||||||||||||
Materials | 2.6 | 2.6 | – | – | |||||||||||||||||||||
Industrials | 4.1 | 4.1 | – | – | |||||||||||||||||||||
Consumer discretionary | 2.2 | 2.2 | – | – | |||||||||||||||||||||
Consumer staples | 3 | 3 | – | – | |||||||||||||||||||||
Healthcare | 4.9 | 4.9 | – | – | |||||||||||||||||||||
Financials | 7.3 | 7.3 | – | – | |||||||||||||||||||||
Information technology | 2.5 | 2.5 | – | – | |||||||||||||||||||||
Telecommunication services | 1 | 1 | – | – | |||||||||||||||||||||
Utilities | 1.6 | 1.6 | – | – | |||||||||||||||||||||
Other | 35.1 | 32.5 | 2.6 | – | |||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||
Government bonds | 44.9 | – | 44.9 | – | |||||||||||||||||||||
Corporate bonds | 37.9 | – | 37.9 | – | |||||||||||||||||||||
Asset-backed securities | 13.2 | – | 13.2 | – | |||||||||||||||||||||
Other debt | 1 | – | 1 | – | |||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||
Mortgage loans | 5.4 | – | 5.4 | – | |||||||||||||||||||||
Insurance contracts | 5.9 | – | 5.9 | – | |||||||||||||||||||||
Other investments | 7.5 | – | 7.5 | – | |||||||||||||||||||||
Real estate | 37.1 | – | – | 37.1 | |||||||||||||||||||||
Total | $ | 231.6 | $ | 76.1 | $ | 118.4 | $ | 37.1 | |||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of Earnings Before Taxes and Income Taxes Paid | ' | ||||||||||||
The components of earnings before income taxes and the income taxes paid consisted of the following (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
United States operations | $ | 400.7 | $ | 409.9 | $ | 485.7 | |||||||
Foreign operations | 580.4 | 580.2 | 493.2 | ||||||||||
Total | $ | 981.1 | $ | 990.1 | $ | 978.9 | |||||||
The provision for income taxes consisted of (in millions): | |||||||||||||
Current: | |||||||||||||
Federal | $ | 199 | $ | 179.8 | $ | 148.4 | |||||||
State | 20.6 | 13.8 | 14.3 | ||||||||||
Foreign | 128.5 | 108.4 | 75.9 | ||||||||||
348.1 | 302 | 238.6 | |||||||||||
Deferred: | |||||||||||||
Federal | (87.7 | ) | (58.8 | ) | (2.6 | ) | |||||||
State | (8.5 | ) | 0.7 | (0.9 | ) | ||||||||
Foreign | (30.0 | ) | (6.7 | ) | (16.2 | ) | |||||||
(126.2 | ) | (64.8 | ) | (19.7 | ) | ||||||||
Provision for income taxes | $ | 221.9 | $ | 237.2 | $ | 218.9 | |||||||
Income taxes paid | $ | 272.3 | $ | 227.6 | $ | 236.4 | |||||||
Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate | ' | ||||||||||||
A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows: | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
U.S. statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State taxes, net of federal deduction | 0.8 | 1 | 0.7 | ||||||||||
Tax impact of foreign operations, including foreign tax credits | (12.2 | ) | (10.4 | ) | (11.0 | ) | |||||||
Tax impact of certain significant transactions | 1.6 | (3.5 | ) | – | |||||||||
Tax benefit relating to U.S. manufacturer’s deduction and export sales | (1.8 | ) | (1.9 | ) | (1.6 | ) | |||||||
R&D credit | (0.6 | ) | – | (0.5 | ) | ||||||||
Goodwill impairment | – | 3.4 | – | ||||||||||
Other | (0.2 | ) | 0.4 | (0.2 | ) | ||||||||
Effective income tax rate | 22.6 | % | 24 | % | 22.4 | % | |||||||
Components of Deferred Taxes | ' | ||||||||||||
The components of deferred taxes consisted of the following (in millions): | |||||||||||||
As of December, 31 | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Inventory | $ | 271.1 | $ | 225.1 | |||||||||
Net operating loss carryover | 26.4 | 26.8 | |||||||||||
Tax credit carryover | 187.1 | 16.4 | |||||||||||
Capital loss carryover | 7.8 | 4 | |||||||||||
Accrued liabilities | 72 | 67 | |||||||||||
Share-based compensation | 74.6 | 106.3 | |||||||||||
Unremitted earnings of foreign subsidiaries | 25.6 | 172.3 | |||||||||||
Other | 11.2 | 42.3 | |||||||||||
Total deferred tax assets | 675.8 | 660.2 | |||||||||||
Less: Valuation allowances | (42.7 | ) | (41.3 | ) | |||||||||
Total deferred tax assets after valuation | 633.1 | 618.9 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Fixed assets | $ | (97.7 | ) | $ | (93.9 | ) | |||||||
Intangible assets | (106.4 | ) | (140.6 | ) | |||||||||
Other | (1.2 | ) | (1.0 | ) | |||||||||
Total deferred tax liabilities | (205.3 | ) | (235.5 | ) | |||||||||
Total net deferred tax assets | $ | 427.8 | $ | 383.4 | |||||||||
Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits | ' | ||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Balance at January 1 | $ | 285.5 | $ | 158.4 | $ | 168 | |||||||
Increases related to prior periods | 16.5 | 118.7 | 11.4 | ||||||||||
Decreases related to prior periods | (17.3 | ) | (8.9 | ) | (49.0 | ) | |||||||
Increases related to current period | 22.5 | 19.1 | 34.4 | ||||||||||
Decreases related to settlements with taxing authorities | (2.9 | ) | (0.6 | ) | (4.8 | ) | |||||||
Decreases related to lapse of statute of limitations | – | (1.2 | ) | (1.6 | ) | ||||||||
Balance at December 31 | $ | 304.3 | $ | 285.5 | $ | 158.4 | |||||||
Amounts impacting effective tax rate, if recognized balance at December 31 | $ | 186.3 | $ | 159 | $ | 132.7 | |||||||
CAPITAL_STOCK_AND_EARNINGS_PER1
CAPITAL STOCK AND EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Reconciliation of Weighted Average Shares for Basic and Diluted Share Computations | ' | ||||||||||||
The following is a reconciliation of weighted average shares for the basic and diluted share computations (in millions): | |||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Weighted average shares outstanding for basic net earnings per share | 169.6 | 174.9 | 187.6 | ||||||||||
Effect of dilutive stock options and other equity awards | 2.2 | 1.1 | 1.1 | ||||||||||
Weighted average shares outstanding for diluted net earnings per share | 171.8 | 176 | 188.7 | ||||||||||
SEGMENT_DATA_Tables
SEGMENT DATA (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Summary of Net Sales and Other Information by Segment | ' | ||||||||||||||||||||
Net sales and other information by segment is as follows (in millions): | |||||||||||||||||||||
Americas | Europe | Asia | Global | Total | |||||||||||||||||
Pacific | Operations | ||||||||||||||||||||
and | |||||||||||||||||||||
Corporate | |||||||||||||||||||||
Functions | |||||||||||||||||||||
As of and for the Year Ended December 31, 2013 | |||||||||||||||||||||
Net sales | $ | 2,619.80 | $ | 1,212.60 | $ | 791 | $ | – | $ | 4,623.40 | |||||||||||
Depreciation and amortization | 70.9 | 72.6 | 30.7 | 184.3 | 358.5 | ||||||||||||||||
Segment operating profit | 1,302.60 | 359.7 | 342.3 | (648.8 | ) | 1,355.80 | |||||||||||||||
Share-based payment expense | (48.5 | ) | |||||||||||||||||||
Inventory step-up | (8.0 | ) | |||||||||||||||||||
Certain claims | (47.0 | ) | |||||||||||||||||||
Special items | (216.7 | ) | |||||||||||||||||||
Operating profit | 1,035.60 | ||||||||||||||||||||
Long-lived assets | 810.8 | 306.3 | 107.6 | – | 1,224.70 | ||||||||||||||||
Total assets | 2,814.90 | 2,343.80 | 541.9 | 3,880.00 | 9,580.60 | ||||||||||||||||
Additions to instruments | 0.2 | 14.8 | 6.5 | 171.4 | 192.9 | ||||||||||||||||
Additions to other property, plant and equipment | 9 | 10.3 | 7.6 | 73.1 | 100 | ||||||||||||||||
As of and for the Year Ended December 31, 2012 | |||||||||||||||||||||
Net sales | $ | 2,476.30 | $ | 1,177.40 | $ | 818 | $ | – | $ | 4,471.70 | |||||||||||
Depreciation and amortization | 73.7 | 73.6 | 36.3 | 179.5 | 363.1 | ||||||||||||||||
Segment operating profit | 1,256.30 | 369.1 | 311.1 | (562.9 | ) | 1,373.60 | |||||||||||||||
Share-based payment expense | (55.0 | ) | |||||||||||||||||||
Inventory step-up | (4.8 | ) | |||||||||||||||||||
Certain claims | (15.0 | ) | |||||||||||||||||||
Goodwill impairment | (96.0 | ) | |||||||||||||||||||
Special items | (155.4 | ) | |||||||||||||||||||
Operating profit | 1,047.40 | ||||||||||||||||||||
Long-lived assets | 776 | 326.1 | 108.6 | – | 1,210.70 | ||||||||||||||||
Total assets | 2,690.60 | 2,308.00 | 578.3 | 3,435.50 | 9,012.40 | ||||||||||||||||
Additions to instruments | – | 14 | 7.1 | 127.8 | 148.9 | ||||||||||||||||
Additions to other property, plant and equipment | 0.7 | 21.9 | 6.4 | 85.7 | 114.7 | ||||||||||||||||
As of and for the Year Ended December 31, 2011 | |||||||||||||||||||||
Net sales | $ | 2,440.80 | $ | 1,214.50 | $ | 796.5 | $ | – | $ | 4,451.80 | |||||||||||
Depreciation and amortization | 81 | 74.9 | 36.3 | 167.7 | 359.9 | ||||||||||||||||
Segment operating profit | 1,220.40 | 411.5 | 290.6 | (593.5 | ) | 1,329.00 | |||||||||||||||
Share-based payment expense | (60.5 | ) | |||||||||||||||||||
Inventory step-up | (11.4 | ) | |||||||||||||||||||
Certain claims | (157.8 | ) | |||||||||||||||||||
Special items | (75.2 | ) | |||||||||||||||||||
Operating profit | 1,024.10 | ||||||||||||||||||||
Long-lived assets | 769 | 330.6 | 107.7 | – | 1,207.30 | ||||||||||||||||
Total assets | 2,571.60 | 2,345.50 | 602.4 | 2,995.80 | 8,515.30 | ||||||||||||||||
Additions to instruments | – | 15.2 | 7.7 | 132.5 | 155.4 | ||||||||||||||||
Additions to other property, plant and equipment | 1.3 | 23.8 | 4.7 | 84 | 113.8 | ||||||||||||||||
Summary of Net Sales by Product Category | ' | ||||||||||||||||||||
Net sales by product category are as follows (in millions): | |||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||
Reconstructive | |||||||||||||||||||||
Knees | $ | 1,909.90 | $ | 1,833.80 | $ | 1,835.90 | |||||||||||||||
Hips | 1,330.50 | 1,342.00 | 1,355.60 | ||||||||||||||||||
Extremities | 193.8 | 173.8 | 163.4 | ||||||||||||||||||
3,434.20 | 3,349.60 | 3,354.90 | |||||||||||||||||||
Dental | 239.3 | 237.7 | 248.1 | ||||||||||||||||||
Trauma | 315.6 | 307.9 | 285.8 | ||||||||||||||||||
Spine | 202.3 | 208.9 | 225 | ||||||||||||||||||
Surgical and other | 432 | 367.6 | 338 | ||||||||||||||||||
Total | $ | 4,623.40 | $ | 4,471.70 | $ | 4,451.80 | |||||||||||||||
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Rental Commitments Under Non-Cancelable Operating Leases | ' | ||||
Future minimum rental commitments under non-cancelable operating leases in effect as of December 31, 2013 were (in millions): | |||||
For the Years Ending December 31, | |||||
2014 | $ | 47.6 | |||
2015 | 39.2 | ||||
2016 | 27.7 | ||||
2017 | 20.4 | ||||
2018 | 16 | ||||
Thereafter | 41.2 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Earnings from Claims Related to Durom Cup | ' | ||||||||||||||||||||||||||||
The following table shows the line of our statement of earnings and the period in which Durom Cup-related claims were recognized: | |||||||||||||||||||||||||||||
For the Years Ended December 31, | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | Total | ||||||||||||||||||||||
Certain claims | $ | 47 | $ | 15 | $ | 157.8 | $ | 75 | $ | 35 | $ | 69 | $ | 398.8 | |||||||||||||||
Selling, general and administrative | – | – | 4.2 | 15.4 | 24.6 | 7.2 | 51.4 | ||||||||||||||||||||||
Total | $ | 47 | $ | 15 | $ | 162 | $ | 90.4 | $ | 59.6 | $ | 76.2 | $ | 450.2 | |||||||||||||||
QUARTERLY_FINANCIAL_INFORMATIO1
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||||||
2013 Quarter Ended | 2012 Quarter Ended | ||||||||||||||||||||||||||||||||
Mar | Jun | Sep | Dec | Mar | Jun | Sep | Dec | ||||||||||||||||||||||||||
Net sales | $ | 1,138.90 | $ | 1,169.50 | $ | 1,074.30 | $ | 1,240.70 | $ | 1,140.70 | $ | 1,125.00 | $ | 1,025.50 | $ | 1,180.50 | |||||||||||||||||
Gross profit | 846 | 845.9 | 745.5 | 899.9 | 852 | 843.1 | 769.8 | 881.6 | |||||||||||||||||||||||||
Net earnings of Zimmer Holdings, Inc. | 218.6 | 152.1 | 154.4 | 235.9 | 209.6 | 214.5 | 178.1 | 152.8 | |||||||||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||||||
Basic | 1.3 | 0.9 | 0.91 | 1.38 | 1.18 | 1.22 | 1.02 | 0.88 | |||||||||||||||||||||||||
Diluted | 1.28 | 0.89 | 0.9 | 1.36 | 1.17 | 1.22 | 1.02 | 0.88 |
Business_Additional_Informatio
Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Organization [Line Items] | ' |
Number of reportable segments | 3 |
Minimum [Member] | ' |
Organization [Line Items] | ' |
Number of countries in which company operates | 25 |
Number of countries in which company markets the products | 100 |
Recovered_Sheet1
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Positions | Positions | Positions | ||
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Percentage of sales through direct channel | ' | 80.00% | ' | ' |
Percentage of sales through indirect channel | ' | 20.00% | ' | ' |
Period terms for payment | ' | '90 days | ' | ' |
Expenses incurred related to shipping and handling of products | ' | $163.60 | $139.50 | $142.10 |
Number of positions effected by restructuring | ' | 170 | 400 | 500 |
Allowance for doubtful accounts | 22.8 | 22.7 | 22.8 | ' |
Goodwill impairment charge | $96 | ' | $96 | ' |
Useful life of finite lived intangibles | ' | '1 year | ' | ' |
Estimated useful lives for intangible assets with a finite life, Maximum | ' | '40 years | ' | ' |
Instruments [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '5 years | ' | ' |
Minimum [Member] | Building and Building Improvements [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '10 years | ' | ' |
Minimum [Member] | Machinery and Equipment [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '3 years | ' | ' |
Minimum [Member] | Software and Software Development Costs [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '3 years | ' | ' |
Maximum [Member] | Building and Building Improvements [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '40 years | ' | ' |
Maximum [Member] | Machinery and Equipment [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '8 years | ' | ' |
Maximum [Member] | Software and Software Development Costs [Member] | ' | ' | ' | ' |
Business And Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Average estimated useful life | ' | '15 years | ' | ' |
Recovered_Sheet2
Significant Accounting Policies - Summary of Expenses in Special Items (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Significant Accounting Policies Summary Of Expenses In Special Items [Abstract] | ' | ' | ' |
Impairment/loss on disposal of assets | $10.90 | $14.60 | $8.40 |
Consulting and professional fees | 99.1 | 90.1 | 26 |
Employee severance and retention, including share-based compensation acceleration | 14.2 | 8.2 | 23.1 |
Dedicated project personnel | 34 | 15.1 | 3.2 |
Certain R&D agreements | 0.8 | ' | ' |
Relocated facilities | 3.6 | 1.8 | ' |
Distributor acquisitions | 0.4 | 0.8 | 2 |
Certain litigation matters | 26.9 | 13.7 | 0.1 |
Contract terminations | 3.9 | 6.6 | 6.3 |
Contingent consideration adjustments | 9 | -2.8 | ' |
Accelerated software amortization | 6 | 4.5 | ' |
Other | 7.9 | 2.8 | 6.1 |
Special items | $216.70 | $155.40 | $75.20 |
ShareBased_Compensation_Shareb
Share-Based Compensation - Share-based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Total expense, pre-tax | $48.50 | $55 | $60.50 |
Tax benefit related to awards | -15.6 | -16.6 | -17.8 |
Total expense, net of tax | 32.9 | 38.4 | 42.7 |
Stock options [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Total expense, pre-tax | 24.7 | 32.4 | 41.7 |
RSUs and other [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Total expense, pre-tax | $23.80 | $22.60 | $18.80 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Share-based compensation cost capitalized | $4.10 | $6.10 | $8.80 |
Capitalized costs remained in finished goods | 2.4 | 3.3 | ' |
Stock Options [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Shares of common stock | 57,900,000 | ' | ' |
Shares available for future grants | 10,400,000 | ' | ' |
Vesting period | '4 years | ' | ' |
Maximum contractual life | '10 years | ' | ' |
Unrecognized share-based payment expense | 33.5 | ' | ' |
Weighted average period expected to be recognized | '2 years 8 months 12 days | ' | ' |
Stock Options [Member] | Minimum [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Requisite service period for stock award | '1 year | ' | ' |
Stock Options [Member] | Maximum [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Requisite service period for stock award | '4 years | ' | ' |
RSUs and other [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Weighted average period expected to be recognized | '2 years 2 months 12 days | ' | ' |
Estimated outstanding RSU | 875,900 | ' | ' |
Unrecognized share-based payment expense related to nonvested stock options | 34 | ' | ' |
Fair value of RSUs vesting during the year | $32.50 | $18.90 | $11.80 |
RSUs and other [Member] | Minimum [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Requisite service period for stock award | '1 year | ' | ' |
RSUs and other [Member] | Maximum [Member] | ' | ' | ' |
Compensation Related Costs Share Based Payments Disclosure [Line Items] | ' | ' | ' |
Vesting period | '5 years | ' | ' |
Requisite service period for stock award | '5 years | ' | ' |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Outstanding stock options, Beginning balance | 16,638 |
Options granted | 1,603 |
Options exercised | -7,008 |
Options forfeited | -304 |
Options expired | -188 |
Outstanding stock options, Ending Balance | 10,741 |
Number of outstanding options, Vested or expected to vest | 10,329 |
Exercisable, Stock options | 7,375 |
Outstanding Weighted average exercise price, Beginning Balance | $68.74 |
Options granted, Weighted average exercise price | $73.40 |
Options exercised, Weighted average exercise price | $67.67 |
Options cancelled, Weighted average exercise price | $65.68 |
Options expired, Weighted average exercise price | $76.09 |
Outstanding Weighted average exercise price, ending Balance | $70.06 |
Outstanding Weighted average exercise price, Vested or expected to vest | $70.12 |
Exercisable, Weighted average exercise price | $71.44 |
Weighted Average Remaining Contractual Life, Outstanding at December 31, 2013 | '5 years |
Weighted Average Remaining Contractual Life, Vested or expected to vest as of December 31, 2013 | '4 years 10 months 24 days |
Weighted Average Remaining Contractual Life, Exercisable at December 31, 2013 | '3 years 6 months |
Intrinsic Value, Outstanding at December 31, 2013 | $248.40 |
Intrinsic Value, Vested or expected to vest as of December 31, 2013 | 238.3 |
Intrinsic Value, Exercisable at December 31, 2013 | $160.40 |
ShareBased_Compensation_Weight
Share-Based Compensation - Weighted Average Fair Value for Stock Options Granted (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Dividend yield | 1.10% | 1.10% | ' |
Volatility | 24.50% | 25.60% | 26.10% |
Risk-free interest rate | 1.10% | 1.50% | 2.20% |
Expected life (years) | '6 years 1 month 6 days | '6 years 1 month 6 days | '6 years 1 month 6 days |
Weighted average fair value of options granted | $16.33 | $15.40 | $18.33 |
Intrinsic value of options exercised (in millions) | $97.90 | $17.10 | $27.50 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of Nonvested RSU Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
RSUs, Outstanding Beginning Balance | 1,445 |
RSUs, Granted | 581 |
RSUs, Vested | -434 |
RSUs, Forfeited | -138 |
RSUs, Outstanding Ending Balance | 1,454 |
Weighted Average Grant Date Fair Value, Outstanding Beginning Balance | $61.11 |
Weighted Average Grant Date Fair Value, Granted | $74.22 |
Weighted Average Grant Date Fair Value, Vested | $55.80 |
Weighted Average Grant Date Fair Value, Forfeited | $65.03 |
Weighted Average Grant Date Fair Value, Outstanding Ending Balance | $67.42 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $817 | $786.30 |
Work in progress | 77.4 | 52.3 |
Raw materials | 180.1 | 156.7 |
Inventories | $1,074.50 | $995.30 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Inventory Disclosure [Abstract] | ' | ' | ' |
Amounts charged for excess obsolete inventory | $112 | $55.10 | $47.60 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' | ' |
Land | $21.70 | $22.10 | ' |
Building and equipment | 1,353.10 | 1,232.80 | ' |
Capitalized software costs | 272.6 | 241.8 | ' |
Instruments | 1,610.60 | 1,579.80 | ' |
Construction in progress | 58.2 | 117.8 | ' |
Property, plant and equipment, Gross | 3,316.20 | 3,194.30 | ' |
Accumulated depreciation | -2,091.50 | -1,983.60 | ' |
Property, plant and equipment, net | $1,224.70 | $1,210.70 | $1,207.30 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' | ' |
Depreciation expense | $262.60 | $266 | $266.10 |
Investments_Investments_in_Sho
Investments - Investments in Short and Long-Term Classified as Available-for-Sale Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | $807.30 | $915.30 |
Available-for-sale Securities, Gross Unrealized Gains | 0.5 | 0.5 |
Available-for-sale Securities, Gross Unrealized Losses | -0.1 | -0.1 |
Available-for-sale Securities, Fair Value | 807.7 | 915.7 |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 457.6 | 383.6 |
Available-for-sale Securities, Gross Unrealized Gains | 0.4 | 0.3 |
Available-for-sale Securities, Gross Unrealized Losses | -0.1 | -0.1 |
Available-for-sale Securities, Fair Value | 457.9 | 383.8 |
U.S. government and agency debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 211.1 | 295.8 |
Available-for-sale Securities, Gross Unrealized Gains | 0.1 | 0.1 |
Available-for-sale Securities, Gross Unrealized Losses | ' | ' |
Available-for-sale Securities, Fair Value | 211.2 | 295.9 |
Foreign government debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 3.1 | 5 |
Available-for-sale Securities, Gross Unrealized Gains | ' | ' |
Available-for-sale Securities, Gross Unrealized Losses | ' | ' |
Available-for-sale Securities, Fair Value | 3.1 | 5 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 68.3 | 138.7 |
Available-for-sale Securities, Gross Unrealized Gains | ' | ' |
Available-for-sale Securities, Gross Unrealized Losses | ' | ' |
Available-for-sale Securities, Fair Value | 68.3 | 138.7 |
Certificates of deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 67.2 | 92.2 |
Available-for-sale Securities, Gross Unrealized Gains | ' | 0.1 |
Available-for-sale Securities, Gross Unrealized Losses | ' | ' |
Available-for-sale Securities, Fair Value | $67.20 | $92.30 |
Investments_Cost_and_Fair_Valu
Investments - Cost and Fair Value of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ' | ' |
Available-for-sale Securities, Debt Maturities, Due in One Year or less, Amortized Cost | $726.70 | ' |
Available-for-sale Securities, Debt Maturities, Due after One year through two Years, Amortized Cost | 80.6 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | 807.3 | ' |
Available-for-sale Securities, Debt Maturities, Due in One Year or less, Fair Value | 727 | ' |
Available-for-sale Securities, Debt Maturities, Due after One year through two Years, Fair Value | 80.7 | ' |
Available-for-sale Securities, Fair Value | $807.70 | $915.70 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available For Sale Debt Securities [Line Items] | ' | ' |
Debt securities with amortized cost | $807.30 | ' |
Debt securities with fair value | 807.7 | 915.7 |
Short term investments | 727 | ' |
January 2014 Sales [Member] | ' | ' |
Available For Sale Debt Securities [Line Items] | ' | ' |
Debt securities with amortized cost | 567.5 | ' |
Debt securities with fair value | 567.8 | ' |
Short term investments | $161.20 | ' |
Recovered_Sheet3
Fair Value Measurements of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | $807.70 | $915.70 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 807.7 | 915.7 |
Total fair value measurement of assets | 892.7 | 978 |
Total fair value measurement of liabilities | 27.6 | ' |
Fair Value, Measurements, Recurring [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | 68.7 | 28.4 |
Derivatives, current and long-term | 20.6 | 10.8 |
Fair Value, Measurements, Recurring [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | 16.3 | 33.9 |
Derivatives, current and long-term | 7 | ' |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 457.9 | 383.8 |
Fair Value, Measurements, Recurring [Member] | U.S. government and agency debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 211.2 | 295.9 |
Fair Value, Measurements, Recurring [Member] | Foreign government debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 3.1 | 5 |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 68.3 | 138.7 |
Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 67.2 | 92.3 |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Total fair value measurement of assets | ' | ' |
Total fair value measurement of liabilities | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | ' | ' |
Derivatives, current and long-term | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | ' | ' |
Derivatives, current and long-term | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. government and agency debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 807.7 | 915.7 |
Total fair value measurement of assets | 892.7 | 978 |
Total fair value measurement of liabilities | 27.6 | ' |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | 68.7 | 28.4 |
Derivatives, current and long-term | 20.6 | 10.8 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | 16.3 | 33.9 |
Derivatives, current and long-term | 7 | ' |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 457.9 | 383.8 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. government and agency debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 211.2 | 295.9 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 3.1 | 5 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 68.3 | 138.7 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 67.2 | 92.3 |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Total fair value measurement of assets | ' | ' |
Total fair value measurement of liabilities | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign exchange forward contracts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | ' | ' |
Derivatives, current and long-term | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivatives, current and long-term | ' | ' |
Derivatives, current and long-term | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. government and agency debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | ' | ' |
Recovered_Sheet4
Fair Value Measurements of Assets and Liabilities - Schedule of Nonfinancial Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ' | ' | ' |
Goodwill | $41 | ' | $41 |
Indefinite-lived intangible assets | 24.2 | 21 | 24.2 |
Goodwill | 96 | ' | 96 |
Indefinite-lived intangible assets | ' | 2.8 | 11.6 |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | ' |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items] | ' | ' | ' |
Goodwill | 41 | ' | 41 |
Indefinite-lived intangible assets | $24.20 | $21 | $24.20 |
Fair_Value_Measurements_of_Ass2
Fair Value Measurements of Assets and Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. Spine Reporting Unit [Member] | U.S. Spine Reporting Unit [Member] | ||||
Fair Value Measurements Disclosure [Line Items] | ' | ' | ' | ' | ' |
Implied fair value, Goodwill | $41 | ' | $41 | $41 | $137 |
Non-cash Goodwill impairment charges | 96 | ' | 96 | 96 | ' |
Impairment charges in Special items related to indefinite lived intangible assets | ' | $2.80 | $11.60 | ' | ' |
Recovered_Sheet5
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | $2,944.80 | $2,903 |
Accumulated impairment losses, Beginning Balance | ' | -373 | -277 |
Goodwill, net of accumulated impairment losses, Beginning Balance | ' | 2,571.80 | 2,626 |
U.S. Spine reporting unit impairment | -96 | ' | -96 |
Acquisitions | ' | 35 | 25.9 |
Currency translation | ' | 4.4 | 15.9 |
Goodwill, Ending Balance | 2,944.80 | 2,984.20 | 2,944.80 |
Accumulated impairment losses, Ending Balance | -373 | -373 | -373 |
Goodwill, net of accumulated impairment losses, Ending Balance | 2,571.80 | 2,611.20 | 2,571.80 |
U.S. Spine Reporting Unit [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
U.S. Spine reporting unit impairment | ' | ' | -96 |
Americas [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | 1,623.90 | 1,595.30 |
Accumulated impairment losses, Beginning Balance | ' | -373 | -277 |
Goodwill, net of accumulated impairment losses, Beginning Balance | ' | 1,250.90 | 1,318.30 |
Acquisitions | ' | 11 | 25.9 |
Currency translation | ' | -5 | 2.7 |
Goodwill, Ending Balance | 1,623.90 | 1,629.90 | 1,623.90 |
Accumulated impairment losses, Ending Balance | -373 | -373 | -373 |
Goodwill, net of accumulated impairment losses, Ending Balance | 1,250.90 | 1,256.90 | 1,250.90 |
Americas [Member] | U.S. Spine Reporting Unit [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
U.S. Spine reporting unit impairment | ' | ' | -96 |
Europe [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | 1,128.60 | 1,111.80 |
Goodwill, net of accumulated impairment losses, Beginning Balance | ' | 1,128.60 | 1,111.80 |
Acquisitions | ' | 24 | ' |
Currency translation | ' | 34.5 | 16.8 |
Goodwill, Ending Balance | 1,128.60 | 1,187.10 | 1,128.60 |
Accumulated impairment losses, Ending Balance | ' | ' | ' |
Goodwill, net of accumulated impairment losses, Ending Balance | 1,128.60 | 1,187.10 | 1,128.60 |
Asia Pacific [Member] | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill, Beginning Balance | ' | 192.3 | 195.9 |
Goodwill, net of accumulated impairment losses, Beginning Balance | ' | 192.3 | 195.9 |
Currency translation | ' | -25.1 | -3.6 |
Goodwill, Ending Balance | 192.3 | 167.2 | 192.3 |
Accumulated impairment losses, Ending Balance | ' | ' | ' |
Goodwill, net of accumulated impairment losses, Ending Balance | $192.30 | $167.20 | $192.30 |
Recovered_Sheet6
Goodwill and Other Intangible Assets - Components of Identifiable Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Identifiable Intangible Assets Acquired [Line Items] | ' | ' |
Gross carrying amount | $1,228.40 | $1,188.60 |
Accumulated amortization | -698.1 | -625.5 |
Gross carrying amount | 177.4 | 177.6 |
Total identifiable intangible assets | 707.7 | 740.7 |
Technology [Member] | ' | ' |
Identifiable Intangible Assets Acquired [Line Items] | ' | ' |
Gross carrying amount | 700.4 | 695.1 |
Accumulated amortization | -401.4 | -362.5 |
Total identifiable intangible assets | 299 | 332.6 |
Intellectual Property Rights [Member] | ' | ' |
Identifiable Intangible Assets Acquired [Line Items] | ' | ' |
Gross carrying amount | 173.4 | 173.4 |
Accumulated amortization | -142.5 | -124.2 |
Total identifiable intangible assets | 30.9 | 49.2 |
Trademark And Trade Name [Member] | ' | ' |
Identifiable Intangible Assets Acquired [Line Items] | ' | ' |
Gross carrying amount | 43.3 | 47.4 |
Accumulated amortization | -33.9 | -31.1 |
Gross carrying amount | 177.4 | 177.6 |
Total identifiable intangible assets | 186.8 | 193.9 |
Customer Relationship [Member] | ' | ' |
Identifiable Intangible Assets Acquired [Line Items] | ' | ' |
Gross carrying amount | 216.2 | 177 |
Accumulated amortization | -76.4 | -61.7 |
Total identifiable intangible assets | 139.8 | 115.3 |
Other Intangible Assets [Member] | ' | ' |
Identifiable Intangible Assets Acquired [Line Items] | ' | ' |
Gross carrying amount | 95.1 | 95.7 |
Accumulated amortization | -43.9 | -46 |
Total identifiable intangible assets | $51.20 | $49.70 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Intangible Amortization Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite Lived Intangible Assets Amortization [Line Items] | ' | ' | ' |
Intangible amortization | $95.90 | $97.10 | $93.80 |
Cost Of Goods Sold [Member] | ' | ' | ' |
Finite Lived Intangible Assets Amortization [Line Items] | ' | ' | ' |
Intangible amortization | 18.3 | 24 | 26.7 |
Selling, general and administrative [Member] | ' | ' | ' |
Finite Lived Intangible Assets Amortization [Line Items] | ' | ' | ' |
Intangible amortization | $77.60 | $73.10 | $67.10 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Estimated Annual Amortization Expense Based on Intangible Assets Recognized (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' |
2014 | $98 |
2015 | 84.7 |
2016 | 74.4 |
2017 | 61.6 |
2018 | $45.80 |
Recovered_Sheet7
Other Current and Long-term Liabilities - Summary of Other Current and Long-Term Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other current liabilities: | ' | ' |
License and service agreements | $109.20 | $92.30 |
Certain claims accrual (Note 19) | 50 | 50 |
Salaries, wages and benefits | 122.8 | 118.8 |
Accrued liabilities | 381.6 | 297.9 |
Total other current liabilities | 663.6 | 559 |
Other long-term liabilities: | ' | ' |
Long-term income tax payable | 115 | 213 |
Certain claims accrual (Note 19) | 329 | 210.8 |
Other long-term liabilities | 132.6 | 135.5 |
Total other long-term liabilities | $576.60 | $559.30 |
Debt_Summary_of_Debt_Instrumen
Debt - Summary of Debt Instruments (Detail) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | JPY (¥) | USD ($) | USD ($) | Senior Notes due 2014 [Member] | Senior Notes due 2014 [Member] | Senior Notes due 2019 [Member] | Senior Notes due 2019 [Member] | Senior Notes due 2021 [Member] | Senior Notes due 2021 [Member] | Senior Notes due 2039 [Member] | Senior Notes due 2039 [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Short-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Credit Facility | ' | ' | $100 | $143 | ' | ' | ' | ' | ' | ' | ' | ' |
Other short-term debt | 0.5 | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total short-term debt | 0.5 | ' | 100.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes due 2014 | 250 | ' | ' | ' | 250 | 250 | 500 | 500 | 300 | 300 | 500 | 500 |
Term loan | 112.4 | 11,700 | 138.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term debt | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discount | -1.5 | ' | -1.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment related to interest rate swaps | 9.3 | ' | 33.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt | $1,672.30 | ' | $1,720.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | USD ($) | USD ($) | JPY (¥) | Senior Notes due 2014 [Member] | Senior Notes due 2019 [Member] | Senior Notes due 2021 [Member] | Senior Notes due 2039 [Member] | Term Loan [Member] | |
Ratio | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowings under Senior Credit Facility, Increased by provisions, net | $1,350 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior credit facility, maturity date | 9-May-17 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding Senior Credit Facility | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan | 112.4 | 138.6 | ' | 11,700 | ' | ' | ' | ' | ' |
Interest rate on Senior Notes and term loan | ' | ' | ' | ' | 1.40% | 4.63% | 3.38% | 5.75% | 0.61% |
Maturity date of term loan | 31-May-16 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of Senior Notes and Term loan | 1,649.50 | ' | ' | ' | ' | ' | ' | ' | 112.2 |
Maximum Leverage Ratio | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio description under line of credit facility on financial covenants | 'Financial covenants include a maximum leverage ratio of 3.0 to 1.0 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Principal Amount of Senior Notes | 250 | ' | ' | ' | 250 | 500 | 300 | 500 | ' |
Due date of senior notes | ' | ' | ' | ' | 30-Nov-14 | 30-Nov-19 | 30-Nov-21 | 30-Nov-39 | ' |
Interest payable | 'Interest on each series is payable on May 30 and November 30 of each year until maturity. | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instruments redemption terms | 'Redemption price equal to the greater of 1) 100 percent of the principal amount of the notes being redeemed; or 2) the sum of the present values of the remaining scheduled payments of principal and interest (not including any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on a semi-annual basis at the Treasury Rate (as defined in the debt agreement), plus 15 basis points in the case of the 2014 Notes, 20 basis points in the case of the 2019 Notes and 2021 Notes, and 25 basis points in the case of the 2039 Notes | ' | ' | ' | ' | ' | ' | ' | ' |
Available uncommitted credit facilities, Net | 50.7 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate for all borrowings, short-term debt | ' | 1.10% | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate for all borrowings, long-term debt | 3.30% | 3.50% | ' | ' | ' | ' | ' | ' | ' |
Interest paid on Debt | $68.10 | $67.80 | $55 | ' | ' | ' | ' | ' | ' |
Recovered_Sheet8
Accumulated Other Comprehensive Income - Changes in Components of Other Comprehensive Income, Net of Tax (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Foreign Currency Translation [Member] | Cash Flow Hedges [Member] | Unrealized Gains on Securities [Member] | Defined Benefit Plan Items [Member] | ||
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income, Beginning Balance | $367.10 | $343.90 | $445.50 | $4.10 | $0.40 | ($106.10) |
OCI before reclassifications | ' | ' | -44.4 | 33.4 | 0.1 | 30.6 |
Reclassifications | ' | ' | ' | -4.4 | ' | 7.9 |
Accumulated Other Comprehensive Income, Ending Balance | $367.10 | $343.90 | $401.10 | $33.10 | $0.50 | ($67.60) |
Recovered_Sheet9
Accumulated Other Comprehensive Income - Reclassification Adjustments from Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Cost of Product Sold | ($1,286.10) | ($1,125.20) | ($1,122) |
Provision for income taxes | 221.9 | 237.2 | 218.9 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Net of tax | -3.5 | -9.8 | -28.5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Total before tax | 7.8 | -12.2 | -41.2 |
Provision for income taxes | 3.4 | -8.9 | -16.7 |
Net of tax | 4.4 | -3.3 | -24.5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Foreign exchange forward contracts [Member] | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Cost of Product Sold | 8 | -12 | -32.9 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Foreign exchange options [Member] | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Cost of Product Sold | -0.2 | -0.4 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Cross-currency interest rate swaps [Member] | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Interest Expenses | ' | 0.2 | -8.3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Prior service cost | 3.9 | 2.9 | 0.8 |
Unrecognized actuarial (loss) | -16.6 | -13.3 | -7.4 |
Total before tax | -12.7 | -10.4 | -6.6 |
Provision for income taxes | -4.8 | -3.9 | -2.6 |
Net of tax | ($7.90) | ($6.50) | ($4) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Tax Effects on Each Component of Other Comprehensive Income Recognized in Statements of Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Foreign currency cumulative translation adjustments, Before Tax | ($44.40) | $46.10 | $4.60 |
Unrealized cash flow hedge gains/(losses), Before Tax | 63.6 | 15.2 | -34.9 |
Reclassification adjustments on foreign currency hedges, Before Tax | -7.8 | 12.2 | 41.2 |
Unrealized gains on securities, Before Tax | 0.1 | 0.4 | 0.2 |
Adjustments to prior service cost and unrecognized actuarial assumptions, Before Tax | 50.3 | 20.3 | -71.3 |
Total Other Comprehensive Gain/(Loss), Before Tax | 61.8 | 94.2 | -60.2 |
Foreign currency cumulative translation adjustments, Tax | ' | ' | ' |
Unrealized cash flow hedge gains/(losses), Tax | 30.2 | 4.3 | -4.3 |
Reclassification adjustments on foreign currency hedges, Tax | -3.4 | 8.9 | 16.7 |
Unrealized gains on securities, Tax | ' | ' | ' |
Adjustments to prior service cost and unrecognized actuarial assumptions, Tax | 11.8 | 8.5 | -23 |
Total Other Comprehensive Gain/(Loss), Tax | 38.6 | 21.7 | -10.6 |
Foreign currency cumulative translation adjustments, net of tax | -44.4 | 46.1 | 4.6 |
Unrealized cash flow hedge gains/(losses), net of tax | 33.4 | 10.9 | -30.6 |
Reclassification adjustments on foreign currency hedges, net of tax | -4.4 | 3.3 | 24.5 |
Unrealized gains on securities, net of tax | 0.1 | 0.4 | 0.2 |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 38.5 | 11.8 | -48.3 |
Total Other Comprehensive Income (Loss) | $23.20 | $72.50 | ($49.60) |
Recovered_Sheet10
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Cash flow hedges [Member] | Cross-currency interest rate swaps [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member] | Senior Notes due 2019 [Member] | Senior Notes due 2021 [Member] | |
USD ($) | JPY (¥) | U.S. Dollars [Member] | Swiss Francs [Member] | USD ($) | USD ($) | ||||
USD ($) | USD ($) | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative notional amount, Total | ' | ' | ' | ' | ¥ 11,798,000,000 | $1,574,600,000 | $353,300,000 | $250,000,000 | $300,000,000 |
Minimum notional amounts of foreign currency forward exchange contracts | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum notional amounts of foreign currency forward exchange contracts | 1,700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Credit Facility | ' | 100,000,000 | 143,000,000 | ' | ' | ' | ' | ' | ' |
Amounts excluded from the assessment of hedge effectiveness | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Fair value of outstanding derivative instruments, net unrealized gain deferred in other comprehensive income | 60,800,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of outstanding derivative instruments, unrealized gain net of taxes deferred in other comprehensive income | ' | ' | ' | 33,100,000 | ' | ' | ' | ' | ' |
Fair value of outstanding derivative instruments, net unrealized gain expected to be reclassified to earnings | 23,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of outstanding derivative instruments, unrealized gain net of taxes expected to be reclassified to earnings | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate of Senior Notes | ' | ' | ' | ' | ' | ' | ' | 4.63% | 3.38% |
Description of terms of Interest rate Derivatives terms | ' | ' | ' | ' | ' | ' | ' | 'Receive a fixed interest rate of 4.625 percent and pay variable interest equal to the three-month LIBOR plus an average of 133 basis points. | 'Receive a fixed interest rate of 3.375 percent and pay variable interest equal to the three-month LIBOR plus an average of 99 basis points. |
Description of variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | 'Three-month LIBOR | 'Three-month LIBOR |
Interest rate swap basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 1.33% | 0.99% |
Expected months of hedging of inter company sales of inventory to minimize the effects of foreign exchange rate movements | '30 months | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet11
Derivative Instruments and Hedging Activities - Derivative Instruments Designated as Fair Value Hedges (Detail) (Interest rate swaps [Member], Interest expense [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest rate swaps [Member] | Interest expense [Member] | ' | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' | ' |
Gain / (Loss) on Instrument | ($24.60) | $6.10 | $26.30 |
Gain / (Loss) on Hedged Item | $24.60 | ($6.10) | ($26.30) |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Gross Unrealized Losses from Derivative Instruments (Detail) (Cash flow hedges [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | $63.60 | $15.20 | ($34.90) |
Amount of Gain / (Loss) Reclassified from OCI | 7.8 | -12.2 | -41.2 |
Foreign exchange forward contracts [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | 63.9 | 16.3 | -34.9 |
Foreign exchange forward contracts [Member] | Cost of products sold [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Reclassified from OCI | 8 | -12 | -32.9 |
Foreign exchange options [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | -0.3 | -1.1 | -0.2 |
Foreign exchange options [Member] | Cost of products sold [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Reclassified from OCI | -0.2 | -0.4 | ' |
Cross-currency interest rate swaps [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | ' | ' | 0.2 |
Cross-currency interest rate swaps [Member] | Interest expense net [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount of Gain / (Loss) Reclassified from OCI | ' | $0.20 | ($8.30) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Gains/(Losses) from Derivative Instruments Recognized in Cost of Products Sold (Detail) (Nondesignated [Member], Foreign exchange forward contracts [Member], Cost of products sold [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Nondesignated [Member] | Foreign exchange forward contracts [Member] | Cost of products sold [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Gains (losses) from derivative instruments not designated as hedging instruments | ' | ($2) | $2.70 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on Gross Basis (Detail) (Designated as Hedging Instrument [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | $106.70 | $84 |
Derivative Liabilities | 49.3 | 32.5 |
Foreign exchange forward contracts [Member] | Other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 60.2 | 29.7 |
Foreign exchange forward contracts [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 30.2 | 19.8 |
Foreign exchange forward contracts [Member] | Other current liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 26.4 | 20.2 |
Foreign exchange forward contracts [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 15.9 | 12.3 |
Foreign exchange options [Member] | Other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | ' | 0.6 |
Interest rate swaps [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 16.3 | 33.9 |
Interest rate swaps [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | $7 | ' |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Schedule of Effects of Master Netting Agreements on Condensed Consolidated Balance Sheets (Detail) (Cash flow hedges [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other current assets [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | $60.20 | $30.30 |
Offset | 13.5 | 15.2 |
Net Amount in Balance Sheet | 46.7 | 15.1 |
Other assets [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | 30.2 | 19.8 |
Offset | 8.2 | 6.5 |
Net Amount in Balance Sheet | 22 | 13.3 |
Other current liabilities [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | 26.4 | 20.2 |
Offset | 13.5 | 15.2 |
Net Amount in Balance Sheet | 12.9 | 5 |
Other long-term liabilities [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | 15.9 | 12.3 |
Offset | 8.2 | 6.5 |
Net Amount in Balance Sheet | $7.70 | $5.80 |
Retirement_Benefit_Plans_Compo
Retirement Benefit Plans - Components of Net Pension Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. and Puerto Rico [Member] | ' | ' | ' |
Schedule of Expected Future Pension Benefit Payment [Line Items] | ' | ' | ' |
Service cost | $11.90 | $11.40 | $11.40 |
Interest cost | 13.2 | 13.3 | 13 |
Expected return on plan assets | -28.7 | -25.5 | -21.9 |
Settlement | ' | 0.7 | ' |
Amortization of prior service cost | -2.6 | -2 | ' |
Amortization of unrecognized actuarial loss | 14.8 | 11.4 | 6.2 |
Net periodic benefit cost | 8.6 | 9.3 | 8.7 |
Foreign-based defined benefit plans [Member] | ' | ' | ' |
Schedule of Expected Future Pension Benefit Payment [Line Items] | ' | ' | ' |
Service cost | 16.1 | 15 | 16.8 |
Interest cost | 5.6 | 6.1 | 7.3 |
Expected return on plan assets | -6.7 | -7.6 | -9.6 |
Amortization of prior service cost | -1.3 | -0.9 | -0.8 |
Amortization of unrecognized actuarial loss | 1.8 | 1.9 | 1.2 |
Net periodic benefit cost | $15.50 | $14.50 | $14.90 |
Retirement_Benefit_Plans_Weigh
Retirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine Net Pension Expense for Our Defined Benefit Retirement Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
U.S. and Puerto Rico [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Discount rate | 4.32% | 4.97% | 5.82% |
Rate of compensation increase | 3.29% | 3.81% | 3.81% |
Expected long-term rate of return on plan assets | 7.75% | 7.75% | 7.75% |
Foreign-based defined benefit plans [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Discount rate | 2.13% | 2.58% | 2.82% |
Rate of compensation increase | 2.29% | 2.77% | 2.64% |
Expected long-term rate of return on plan assets | 2.74% | 3.51% | 4.01% |
Retirement_Benefit_Plans_Chang
Retirement Benefit Plans - Changes in Projected Benefit Obligations and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. and Puerto Rico [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Projected benefit obligation - beginning of year | $314.30 | $290 | ' |
Service cost | 11.9 | 11.4 | 11.4 |
Interest cost | 13.2 | 13.3 | 13 |
Plan amendments | ' | -17.1 | ' |
Benefits paid | -10.4 | -7 | ' |
Settlement | ' | -1.1 | ' |
Actuarial (gain) loss | -12.3 | 24.8 | ' |
Projected benefit obligation - end of year | 316.7 | 314.3 | 290 |
Foreign-based defined benefit plans [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Projected benefit obligation - beginning of year | 259.4 | 235.1 | ' |
Service cost | 16.1 | 15 | 16.8 |
Interest cost | 5.6 | 6.1 | 7.3 |
Plan amendments | 118.9 | -3.7 | ' |
Employee contributions | 15.9 | 17.5 | ' |
Benefits paid | -29.4 | -21.3 | ' |
Actuarial (gain) loss | -17.7 | 6.9 | ' |
Expenses paid | -0.2 | -0.2 | ' |
Translation loss | 2.9 | 4 | ' |
Projected benefit obligation - end of year | $371.50 | $259.40 | $235.10 |
Retirement_Benefit_Plan_Change
Retirement Benefit Plan - Changes in Fair Value of Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value - beginning of year | $37.10 | ' |
Translation gain | 1.7 | ' |
Plan assets at fair market value - end of year | 68.2 | ' |
U.S. and Puerto Rico [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value - beginning of year | 363 | 275.1 |
Actual return on plan assets | 25.2 | 40.7 |
Employer contributions | 20.8 | 54.2 |
Benefits paid | -10.4 | -7 |
Plan assets at fair market value - end of year | 398.6 | 363 |
Funded status | 81.9 | 48.7 |
Foreign-based defined benefit plans [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value - beginning of year | 231.6 | 205.1 |
Actual return on plan assets | 9.7 | 11.4 |
Employer contributions | 15 | 15.5 |
Employee contributions | 15.9 | 17.5 |
Plan amendments | 126.7 | ' |
Benefits paid | -29.4 | -21.3 |
Expenses paid | -0.2 | -0.2 |
Translation gain | 3 | 3.6 |
Plan assets at fair market value - end of year | 372.3 | 231.6 |
Funded status | $0.80 | ($27.80) |
Retirement_Benefit_Plan_Summar
Retirement Benefit Plan - Summary of Amounts Recognized in Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. and Puerto Rico [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Prepaid pension | $92.70 | $61.90 |
Short-term accrued benefit liability | -0.7 | -0.4 |
Long-term accrued benefit liability | -10.1 | -12.8 |
Net amount recognized | 81.9 | 48.7 |
Foreign-based defined benefit plans [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Prepaid pension | 12.1 | 7.5 |
Long-term accrued benefit liability | -11.3 | -35.3 |
Net amount recognized | $0.80 | ($27.80) |
Retirement_Benefit_Plan_Summar1
Retirement Benefit Plan - Summary of Amounts Recognized in Other Comprehensive Income Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. and Puerto Rico [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Unrecognized prior service cost | ($12) | ($14.50) |
Unrecognized actuarial loss | 113.3 | 136.9 |
Total amount recognized | 101.3 | 122.4 |
Foreign-based defined benefit plans [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Unrecognized prior service cost | -8.3 | -9.6 |
Unrecognized actuarial loss | 15.5 | 35.9 |
Total amount recognized | $7.20 | $26.30 |
Retirement_Benefit_Plans_Part_
Retirement Benefit Plans - Part of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. and Puerto Rico [Member] | Foreign-based defined benefit plans [Member] | |
Pension And Other Employee Benefit Plans [Line Items] | ' | ' |
Unrecognized prior service cost | ($2.60) | ($1.20) |
Unrecognized actuarial loss | 10.9 | 0.4 |
Total amount recognized | $8.30 | ($0.80) |
Retirement_Benefit_Plans_Weigh1
Retirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine Projected Benefit Obligation for Defined Benefit Retirement Plans (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
U.S. and Puerto Rico [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Discount rate | 4.98% | 4.32% | 5.05% |
Rate of compensation increase | 3.29% | 3.29% | 3.81% |
Foreign-based defined benefit plans [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Discount rate | 2.45% | 2.15% | 2.49% |
Rate of compensation increase | 1.52% | 2.75% | 2.76% |
Retirement_Benefit_Plans_Plans
Retirement Benefit Plans - Plans with Benefit Obligations in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. and Puerto Rico [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Projected benefit obligation | $10.80 | $29.30 |
Plan assets at fair market value | ' | 16 |
Foreign-based defined benefit plans [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Projected benefit obligation | 318.1 | 233.1 |
Plan assets at fair market value | $307.40 | $197.70 |
Retirement_Benefit_Plans_Total
Retirement Benefit Plans - Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. and Puerto Rico [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Total accumulated benefit obligations | $273.80 | $268.70 |
Plans with accumulated benefit obligations in excess of plan assets: | ' | ' |
Accumulated benefit obligation | 8.8 | 26.9 |
Plan assets at fair market value | ' | 16 |
Foreign-based defined benefit plans [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Total accumulated benefit obligations | 362.1 | 244.9 |
Plans with accumulated benefit obligations in excess of plan assets: | ' | ' |
Accumulated benefit obligation | 308.9 | 191.9 |
Plan assets at fair market value | $303.70 | $168.80 |
Retirement_Benefit_Plans_Summa
Retirement Benefit Plans - Summary of Benefits Expected to be Paid Out (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | U.S. and Puerto Rico [Member] | Foreign-based defined benefit plans [Member] |
Schedule of Expected Future Pension Benefit Payment [Line Items] | ' | ' |
2014 | $11.50 | $18.30 |
2015 | 11.6 | 19.4 |
2016 | 13.3 | 19.2 |
2017 | 14.7 | 19.3 |
2018 | 16.3 | 19.9 |
2019-2023 | $104.80 | $106 |
Retirement_Benefit_Plans_Addit
Retirement Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Expense related to defined contribution plan | $29.60 | $26.50 | $25.70 |
U S and Puerto Rico [Member] | Scenario, Forecast [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Contribution towards defined benefit plans | 2 | ' | ' |
U S and Puerto Rico [Member] | Equity Securities [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 40.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 45.00% | ' | ' |
U S and Puerto Rico [Member] | Debt Securities [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 30.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 35.00% | ' | ' |
U S and Puerto Rico [Member] | Non - Traditional Investments [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for non-traditional investment | 20.00% | ' | ' |
Maximum range of assets held by defined benefit plan for non-traditional investment | 25.00% | ' | ' |
Foreign-based defined benefit plans [Member] | Equity Securities [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 20.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 37.00% | ' | ' |
Foreign-based defined benefit plans [Member] | Debt Securities [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 30.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 50.00% | ' | ' |
Foreign-based defined benefit plans [Member] | Real Estate [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 15.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 24.00% | ' | ' |
Foreign-based defined benefit plans [Member] | Cash Fund [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 3.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 15.00% | ' | ' |
Foreign-based defined benefit plans [Member] | Other Funds [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Minimum range of assets held by defined benefit plan for cash funds | 0.00% | ' | ' |
Maximum range of assets held by defined benefit plan for cash funds | 12.00% | ' | ' |
Foreign Defined Benefit Plan [Member] | Scenario, Forecast [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Contribution towards defined benefit plans | $14 | ' | ' |
Retirement_Benefit_Plans_Fair_
Retirement Benefit Plans - Fair Value of U.S. and Puerto Rico Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | $68.20 | $37.10 |
U S and Puerto Rico [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 398.6 | 363 |
U S and Puerto Rico [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 0.8 | 3.2 |
U S and Puerto Rico [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 397.8 | 359.8 |
U S and Puerto Rico [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Cash and Cash Equivalents [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 0.8 | 3.2 |
U S and Puerto Rico [Member] | Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 0.8 | 3.2 |
U S and Puerto Rico [Member] | Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | U.S. large-cap [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 79.6 | 60.3 |
U S and Puerto Rico [Member] | U.S. large-cap [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | U.S. large-cap [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 79.6 | 60.3 |
U S and Puerto Rico [Member] | U.S. large-cap [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | U.S. small-cap [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 22.3 | 22.1 |
U S and Puerto Rico [Member] | U.S. small-cap [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | U.S. small-cap [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 22.3 | 22.1 |
U S and Puerto Rico [Member] | U.S. small-cap [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | International [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 87.7 | 87.5 |
U S and Puerto Rico [Member] | International [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | International [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 87.7 | 87.5 |
U S and Puerto Rico [Member] | International [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Real Estate [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 43.4 | 29.5 |
U S and Puerto Rico [Member] | Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 43.4 | 29.5 |
U S and Puerto Rico [Member] | Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Commodity- linked mutual funds [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 42.1 | 38.3 |
U S and Puerto Rico [Member] | Commodity- linked mutual funds [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Commodity- linked mutual funds [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 42.1 | 38.3 |
U S and Puerto Rico [Member] | Commodity- linked mutual funds [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Intermediate Fixed Income Debt Securities [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 122.7 | 122.1 |
U S and Puerto Rico [Member] | Intermediate Fixed Income Debt Securities [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
U S and Puerto Rico [Member] | Intermediate Fixed Income Debt Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | 122.7 | 122.1 |
U S and Puerto Rico [Member] | Intermediate Fixed Income Debt Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Plan assets at fair market value | ' | ' |
Retirement_Benefit_Plans_Fair_1
Retirement Benefit Plans - Fair Value of Foreign Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | $68.20 | $37.10 | ' |
Foreign-based defined benefit plans [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 372.3 | 231.6 | 205.1 |
Foreign-based defined benefit plans [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 114.4 | 76.1 | ' |
Foreign-based defined benefit plans [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 189.7 | 118.4 | ' |
Foreign-based defined benefit plans [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 68.2 | 37.1 | ' |
Foreign-based defined benefit plans [Member] | Cash and Cash Equivalents [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 13.9 | 12.7 | ' |
Foreign-based defined benefit plans [Member] | Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 13.9 | 12.7 | ' |
Foreign-based defined benefit plans [Member] | Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Energy [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 4.7 | 1.7 | ' |
Foreign-based defined benefit plans [Member] | Energy [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 4.7 | 1.7 | ' |
Foreign-based defined benefit plans [Member] | Energy [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Energy [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Materials [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 5.7 | 2.6 | ' |
Foreign-based defined benefit plans [Member] | Materials [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 5.7 | 2.6 | ' |
Foreign-based defined benefit plans [Member] | Materials [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Materials [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Industrials [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 7.6 | 4.1 | ' |
Foreign-based defined benefit plans [Member] | Industrials [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 7.6 | 4.1 | ' |
Foreign-based defined benefit plans [Member] | Industrials [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Industrials [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Consumer Discretionary [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 5.2 | 2.2 | ' |
Foreign-based defined benefit plans [Member] | Consumer Discretionary [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 5.2 | 2.2 | ' |
Foreign-based defined benefit plans [Member] | Consumer Discretionary [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Consumer Discretionary [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Consumer Staples [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 6.8 | 3 | ' |
Foreign-based defined benefit plans [Member] | Consumer Staples [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 6.8 | 3 | ' |
Foreign-based defined benefit plans [Member] | Consumer Staples [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Consumer Staples [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Health Care [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 9.7 | 4.9 | ' |
Foreign-based defined benefit plans [Member] | Health Care [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 9.7 | 4.9 | ' |
Foreign-based defined benefit plans [Member] | Health Care [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Health Care [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Financials [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 15.8 | 7.3 | ' |
Foreign-based defined benefit plans [Member] | Financials [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 15.8 | 7.3 | ' |
Foreign-based defined benefit plans [Member] | Financials [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Financials [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Information Technology [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 5.8 | 2.5 | ' |
Foreign-based defined benefit plans [Member] | Information Technology [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 5.8 | 2.5 | ' |
Foreign-based defined benefit plans [Member] | Information Technology [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Information Technology [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Telecommunication Services [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 2.6 | 1 | ' |
Foreign-based defined benefit plans [Member] | Telecommunication Services [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 2.6 | 1 | ' |
Foreign-based defined benefit plans [Member] | Telecommunication Services [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Telecommunication Services [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Utilities [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 3.4 | 1.6 | ' |
Foreign-based defined benefit plans [Member] | Utilities [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 3.4 | 1.6 | ' |
Foreign-based defined benefit plans [Member] | Utilities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Utilities [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Other [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 35.7 | 35.1 | ' |
Foreign-based defined benefit plans [Member] | Other [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 33.2 | 32.5 | ' |
Foreign-based defined benefit plans [Member] | Other [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 2.5 | 2.6 | ' |
Foreign-based defined benefit plans [Member] | Other [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Government Bonds [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 64.4 | 44.9 | ' |
Foreign-based defined benefit plans [Member] | Government Bonds [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Government Bonds [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 64.4 | 44.9 | ' |
Foreign-based defined benefit plans [Member] | Government Bonds [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Corporate Bonds [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 65.9 | 37.9 | ' |
Foreign-based defined benefit plans [Member] | Corporate Bonds [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Corporate Bonds [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 65.9 | 37.9 | ' |
Foreign-based defined benefit plans [Member] | Corporate Bonds [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Asset-backed Securities [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 24 | 13.2 | ' |
Foreign-based defined benefit plans [Member] | Asset-backed Securities [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Asset-backed Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 24 | 13.2 | ' |
Foreign-based defined benefit plans [Member] | Asset-backed Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Other Debt [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 2.8 | 1 | ' |
Foreign-based defined benefit plans [Member] | Other Debt [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Other Debt [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 2.8 | 1 | ' |
Foreign-based defined benefit plans [Member] | Other Debt [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Mortgage Loans [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 9 | 5.4 | ' |
Foreign-based defined benefit plans [Member] | Mortgage Loans [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Mortgage Loans [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 9 | 5.4 | ' |
Foreign-based defined benefit plans [Member] | Mortgage Loans [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Insurance Contracts [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 6.4 | 5.9 | ' |
Foreign-based defined benefit plans [Member] | Insurance Contracts [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Insurance Contracts [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 6.4 | 5.9 | ' |
Foreign-based defined benefit plans [Member] | Insurance Contracts [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Other Investments [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 14.7 | 7.5 | ' |
Foreign-based defined benefit plans [Member] | Other Investments [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Other Investments [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 14.7 | 7.5 | ' |
Foreign-based defined benefit plans [Member] | Other Investments [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Real Estate [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | 68.2 | 37.1 | ' |
Foreign-based defined benefit plans [Member] | Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | ' | ' | ' |
Foreign-based defined benefit plans [Member] | Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Plan assets at fair market value | $68.20 | $37.10 | ' |
Retirement_Benefit_Plans_Recon
Retirement Benefit Plans - Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Compensation And Retirement Disclosure [Abstract] | ' |
Plan assets at fair market value - beginning of year | $37.10 |
Gains on assets sold | 0.1 |
Change in fair value of assets | 1.2 |
Net purchases and sales | 28.1 |
Translation gain | 1.7 |
Plan assets at fair market value - end of year | $68.20 |
Income_Taxes_Components_of_Ear
Income Taxes - Components of Earnings Before Taxes and Income Taxes Paid (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States operations | $400.70 | $409.90 | $485.70 |
Foreign operations | 580.4 | 580.2 | 493.2 |
Earnings before income taxes | 981.1 | 990.1 | 978.9 |
Current: | ' | ' | ' |
Federal | 199 | 179.8 | 148.4 |
State | 20.6 | 13.8 | 14.3 |
Foreign | 128.5 | 108.4 | 75.9 |
Current, Total | 348.1 | 302 | 238.6 |
Deferred: | ' | ' | ' |
Federal | -87.7 | -58.8 | -2.6 |
State | -8.5 | 0.7 | -0.9 |
Foreign | -30 | -6.7 | -16.2 |
Deferred, Total | -126.2 | -64.8 | -19.7 |
Provision for income taxes | 221.9 | 237.2 | 218.9 |
Income taxes paid | $272.30 | $227.60 | $236.40 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal deduction | 0.80% | 1.00% | 0.70% |
Tax impact of foreign operations, including foreign tax credits | -12.20% | -10.40% | -11.00% |
Tax impact of certain significant transactions | 1.60% | -3.50% | ' |
Tax benefit relating to U.S. manufacturer's deduction and export sales | -1.80% | -1.90% | -1.60% |
R&D credit | -0.60% | ' | -0.50% |
Goodwill impairment | ' | 3.40% | ' |
Other | -0.20% | 0.40% | -0.20% |
Effective income tax rate | 22.60% | 24.00% | 22.40% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Taxes (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Inventory | $271.10 | $225.10 |
Net operating loss carryover | 26.4 | 26.8 |
Tax credit carryover | 187.1 | 16.4 |
Capital loss carryover | 7.8 | 4 |
Accrued liabilities | 72 | 67 |
Share-based compensation | 74.6 | 106.3 |
Unremitted earnings of foreign subsidiaries | 25.6 | 172.3 |
Other | 11.2 | 42.3 |
Total deferred tax assets | 675.8 | 660.2 |
Less: Valuation allowances | -42.7 | -41.3 |
Total deferred tax assets after valuation | 633.1 | 618.9 |
Deferred tax liabilities: | ' | ' |
Fixed assets | -97.7 | -93.9 |
Intangible assets | -106.4 | -140.6 |
Other | -1.2 | -1 |
Total deferred tax liabilities | -205.3 | -235.5 |
Total net deferred tax assets | $427.80 | $383.40 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Maturity period for net operating loss carryovers | '1 to 20 years | ' | ' |
Valuation allowances for net operating loss carryovers | $17.30 | $17 | ' |
Maturity period for tax credit carryovers | '1 to 10 years | ' | ' |
Valuation allowances for certain tax credit carryovers | 14.9 | 14.2 | ' |
Valuation allowances for potential capital losses | 2.7 | 6.1 | ' |
Maturity period for net Capital loss carryovers | '4 to 5 years | ' | ' |
Valuation allowances for net Capital loss carryovers | 7.8 | 4 | ' |
Unremitted earnings of foreign subsidiaries | 3,354 | ' | ' |
Unrecognized tax benefits income tax penalties and interest expense recognized | 8.2 | 23.2 | -12.1 |
Recognized liability for interest and penalties | 42.1 | 33.9 | 10.7 |
Unrecognized tax benefits lower range | 0 | ' | ' |
Unrecognized tax benefits upper range | $60 | ' | ' |
Examination period for state income tax returns | '3 to 5 years | ' | ' |
Foreign jurisdictions statutes of limitation period | '3 to 5 years | ' | ' |
State Examination Period After Notification | 'Up to 1 year | ' | ' |
Income_Taxes_Tabular_Reconcili
Income Taxes - Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at January 1 | $285.50 | $158.40 | $168 |
Increases related to prior periods | 16.5 | 118.7 | 11.4 |
Decreases related to prior periods | -17.3 | -8.9 | -49 |
Increases related to current period | 22.5 | 19.1 | 34.4 |
Decreases related to settlements with taxing authorities | -2.9 | -0.6 | -4.8 |
Decreases related to lapse of statute of limitations | ' | -1.2 | -1.6 |
Balance at December 31 | 304.3 | 285.5 | 158.4 |
Amounts impacting effective tax rate, if recognized balance at December 31 | $186.30 | $159 | $132.70 |
Recovered_Sheet12
Capital Stock and Earnings per Share - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Preferred stock, shares authorized | 250 | ' | ' |
Preferred stock, shares issued | 0 | ' | ' |
Preferred stock, shares outstanding | 0 | ' | ' |
Options to purchase shares of common stock not included in the computation of diluted earnings per share | 3.1 | 11.9 | 13.2 |
Repurchased shares of common stock | 9.1 | ' | ' |
Average price per share | $78.88 | ' | ' |
Total cash outlay | $719,000,000 | $485,600,000 | $1,050,000,000 |
Amount authorized for share repurchase program | $1,000,000,000 | ' | ' |
Recovered_Sheet13
Capital Stock and Earnings per Share - Reconciliation of Weighted Average Shares for Basic and Diluted Share Computations (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average shares outstanding for basic net earnings per share | 169.6 | 174.9 | 187.6 |
Effect of dilutive stock options and other equity awards | 2.2 | 1.1 | 1.1 |
Weighted average shares outstanding for diluted net earnings per share | 171.8 | 176 | 188.7 |
Segment_Data_Additional_Inform
Segment Data - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of geographic segments | 3 | ' | ' |
Long-lived tangible assets in Europe | $1,224.70 | $1,210.70 | $1,207.30 |
Share of revenue from an individual country in net sales | 'Less than 10 percent | ' | ' |
Switzerland [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Long-lived tangible assets in Europe | 211.6 | ' | ' |
US [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Sales from United States region | $2,418.20 | $2,280.70 | $2,263.70 |
Segment_Data_Summary_of_Net_Sa
Segment Data - Summary of Net Sales and Other Information by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 72 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2013 |
Sales Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,240.70 | $1,074.30 | $1,169.50 | $1,138.90 | $1,180.50 | $1,025.50 | $1,125 | $1,140.70 | $4,623.40 | $4,471.70 | $4,451.80 | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 358.5 | 363.1 | 359.9 | ' | ' | ' | ' |
Segment operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,355.80 | 1,373.60 | 1,329 | ' | ' | ' | ' |
Share-based payment expense | ' | ' | ' | ' | ' | ' | ' | ' | -48.5 | -55 | -60.5 | ' | ' | ' | ' |
Inventory step-up | ' | ' | ' | ' | ' | ' | ' | ' | -8 | -4.8 | -11.4 | ' | ' | ' | ' |
Certain claims | ' | ' | ' | ' | ' | ' | ' | ' | -47 | -15 | -157.8 | -75 | -35 | -69 | -398.8 |
Goodwill impairment | ' | ' | ' | ' | -96 | ' | ' | ' | ' | -96 | ' | ' | ' | ' | ' |
Special items | ' | ' | ' | ' | ' | ' | ' | ' | -216.7 | -155.4 | -75.2 | ' | ' | ' | ' |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,035.60 | 1,047.40 | 1,024.10 | ' | ' | ' | ' |
Long-lived assets | 1,224.70 | ' | ' | ' | 1,210.70 | ' | ' | ' | 1,224.70 | 1,210.70 | 1,207.30 | ' | ' | ' | 1,224.70 |
Total assets | 9,580.60 | ' | ' | ' | 9,012.40 | ' | ' | ' | 9,580.60 | 9,012.40 | 8,515.30 | ' | ' | ' | 9,580.60 |
Additions to instruments | ' | ' | ' | ' | ' | ' | ' | ' | 192.9 | 148.9 | 155.4 | ' | ' | ' | ' |
Additions to other property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 100 | 114.7 | 113.8 | ' | ' | ' | ' |
Americas [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,619.80 | 2,476.30 | 2,440.80 | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 70.9 | 73.7 | 81 | ' | ' | ' | ' |
Segment operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,302.60 | 1,256.30 | 1,220.40 | ' | ' | ' | ' |
Long-lived assets | 810.8 | ' | ' | ' | 776 | ' | ' | ' | 810.8 | 776 | 769 | ' | ' | ' | 810.8 |
Total assets | 2,814.90 | ' | ' | ' | 2,690.60 | ' | ' | ' | 2,814.90 | 2,690.60 | 2,571.60 | ' | ' | ' | 2,814.90 |
Additions to instruments | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | ' | ' | ' | ' | ' | ' |
Additions to other property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 0.7 | 1.3 | ' | ' | ' | ' |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,212.60 | 1,177.40 | 1,214.50 | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 72.6 | 73.6 | 74.9 | ' | ' | ' | ' |
Segment operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 359.7 | 369.1 | 411.5 | ' | ' | ' | ' |
Long-lived assets | 306.3 | ' | ' | ' | 326.1 | ' | ' | ' | 306.3 | 326.1 | 330.6 | ' | ' | ' | 306.3 |
Total assets | 2,343.80 | ' | ' | ' | 2,308 | ' | ' | ' | 2,343.80 | 2,308 | 2,345.50 | ' | ' | ' | 2,343.80 |
Additions to instruments | ' | ' | ' | ' | ' | ' | ' | ' | 14.8 | 14 | 15.2 | ' | ' | ' | ' |
Additions to other property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 10.3 | 21.9 | 23.8 | ' | ' | ' | ' |
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 791 | 818 | 796.5 | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 30.7 | 36.3 | 36.3 | ' | ' | ' | ' |
Segment operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 342.3 | 311.1 | 290.6 | ' | ' | ' | ' |
Long-lived assets | 107.6 | ' | ' | ' | 108.6 | ' | ' | ' | 107.6 | 108.6 | 107.7 | ' | ' | ' | 107.6 |
Total assets | 541.9 | ' | ' | ' | 578.3 | ' | ' | ' | 541.9 | 578.3 | 602.4 | ' | ' | ' | 541.9 |
Additions to instruments | ' | ' | ' | ' | ' | ' | ' | ' | 6.5 | 7.1 | 7.7 | ' | ' | ' | ' |
Additions to other property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 7.6 | 6.4 | 4.7 | ' | ' | ' | ' |
Global Operations and Corporate Functions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 184.3 | 179.5 | 167.7 | ' | ' | ' | ' |
Segment operating profit | ' | ' | ' | ' | ' | ' | ' | ' | -648.8 | -562.9 | -593.5 | ' | ' | ' | ' |
Total assets | 3,880 | ' | ' | ' | 3,435.50 | ' | ' | ' | 3,880 | 3,435.50 | 2,995.80 | ' | ' | ' | 3,880 |
Additions to instruments | ' | ' | ' | ' | ' | ' | ' | ' | 171.4 | 127.8 | 132.5 | ' | ' | ' | ' |
Additions to other property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | $73.10 | $85.70 | $84 | ' | ' | ' | ' |
Segment_Data_Summary_of_Net_Sa1
Segment Data - Summary of Net Sales by Product Category (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,240.70 | $1,074.30 | $1,169.50 | $1,138.90 | $1,180.50 | $1,025.50 | $1,125 | $1,140.70 | $4,623.40 | $4,471.70 | $4,451.80 |
Knees [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,909.90 | 1,833.80 | 1,835.90 |
Hips [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,330.50 | 1,342 | 1,355.60 |
Extremities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 193.8 | 173.8 | 163.4 |
Reconstructive Implants [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 3,434.20 | 3,349.60 | 3,354.90 |
Dental [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 239.3 | 237.7 | 248.1 |
Trauma [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 315.6 | 307.9 | 285.8 |
Spine [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | 202.3 | 208.9 | 225 |
Surgical and other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | $432 | $367.60 | $338 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Lease rent expenses | $49.20 | $46.30 | $47 |
Leases_Schedule_of_Future_Mini
Leases - Schedule of Future Minimum Rental Commitments Under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $47.60 |
2015 | 39.2 |
2016 | 27.7 |
2017 | 20.4 |
2018 | 16 |
Thereafter | $41.20 |
Recovered_Sheet14
Commitments and Contingencies - Summary of Earnings from Claims Related to Durom Cup (Detail) (USD $) | 12 Months Ended | 72 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Certain claims | $47 | $15 | $157.80 | $75 | $35 | $69 | $398.80 |
Selling, general and administrative | ' | ' | 4.2 | 15.4 | 24.6 | 7.2 | 51.4 |
Total | $47 | $15 | $162 | $90.40 | $59.60 | $76.20 | $450.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 01, 2013 | Jun. 10, 2011 |
Loss Contingencies [Line Items] | ' | ' | ' |
Self-insured retention amount | 20.00% | ' | ' |
Receivables in other assets | $218 | ' | ' |
Compensatory damages awarded | 27.6 | ' | ' |
Percentage of fault apportioned to plaintiffs | 30.00% | ' | ' |
Percentage of fault apportioned to company | 34.00% | ' | ' |
Percentage of fault apportioned to unrelated third party | 36.00% | ' | ' |
Verdict in full and entered judgment | ' | ' | 20.3 |
Compensatory damages vacated | ' | 27.6 | ' |
Durom Cup Related Claims [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Estimated liability outstanding | 379 | ' | ' |
Estimated liability classified as short-term | 50 | ' | ' |
Estimated liability classified as long-term | 329 | ' | ' |
Period for payment of majority of claims | '5 years | ' | ' |
Stryker Corporation [Member] | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' |
Number of patents infringed | 3 | ' | ' |
Monetary damages for lost profits | 70 | ' | ' |
Estimated charges | $210 | ' | ' |
Recovered_Sheet15
Quarterly Financial Information - Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $1,240.70 | $1,074.30 | $1,169.50 | $1,138.90 | $1,180.50 | $1,025.50 | $1,125 | $1,140.70 | $4,623.40 | $4,471.70 | $4,451.80 |
Gross profit | 899.9 | 745.5 | 845.9 | 846 | 881.6 | 769.8 | 843.1 | 852 | 3,337.30 | 3,346.50 | 3,329.80 |
Net earnings of Zimmer Holdings, Inc. | $235.90 | $154.40 | $152.10 | $218.60 | $152.80 | $178.10 | $214.50 | $209.60 | $761 | $755 | $760.80 |
Earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | $1.38 | $0.91 | $0.90 | $1.30 | $0.88 | $1.02 | $1.22 | $1.18 | $4.49 | $4.32 | $4.05 |
Diluted | $1.36 | $0.90 | $0.89 | $1.28 | $0.88 | $1.02 | $1.22 | $1.17 | $4.43 | $4.29 | $4.03 |
Recovered_Sheet16
Quarterly Financial Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' |
Goodwill impairment | $96 | $96 |
Schedule_Valuation_and_Qualify
Schedule - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $22.80 | $17.20 | $14.40 |
Additions Charged (Credited) to Expense | 1.9 | 7.1 | 4.5 |
Deductions to Reserve | -1.5 | -1.8 | -1.7 |
Effects of Foreign Currency | -0.5 | ' | ' |
Acquired Allowances | ' | 0.3 | ' |
Balance at End of Period | 22.7 | 22.8 | 17.2 |
Deferred Tax Asset Valuation Allowances [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 41.3 | 40.3 | 39.9 |
Additions Charged (Credited) to Expense | 1.5 | -0.9 | 1.1 |
Deductions to Reserve | -0.1 | -0.3 | -0.7 |
Acquired Allowances | ' | 2.2 | ' |
Balance at End of Period | $42.70 | $41.30 | $40.30 |