Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 28, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'ZMH | ' |
Entity Registrant Name | 'ZIMMER HOLDINGS INC | ' |
Entity Central Index Key | '0001136869 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 168,916,897 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net Sales | $1,182.90 | $1,169.50 | $2,344.40 | $2,308.40 |
Cost of products sold | 333.2 | 323.6 | 638.6 | 616.5 |
Gross Profit | 849.7 | 845.9 | 1,705.80 | 1,691.90 |
Research and development | 48.1 | 54.9 | 95.6 | 108.4 |
Selling, general and administrative | 455.8 | 458 | 920.1 | 918.8 |
Certain claims (Note 14) | 21.8 | 47 | 21.8 | 47 |
Special items (Note 2) | 64.7 | 75.6 | 110.6 | 109.1 |
Operating expenses | 590.4 | 635.5 | 1,148.10 | 1,183.30 |
Operating Profit | 259.3 | 210.4 | 557.7 | 508.6 |
Other expense | -10 | ' | -10 | ' |
Interest income | 2.9 | 3.9 | 5.4 | 7.6 |
Interest expense | -15.8 | -18.3 | -30.8 | -36.5 |
Earnings before income taxes | 236.4 | 196 | 522.3 | 479.7 |
Provision for income taxes | 60.3 | 44.3 | 125.1 | 110 |
Net earnings | 176.1 | 151.7 | 397.2 | 369.7 |
Less: Net loss attributable to noncontrolling interest | -0.4 | -0.4 | -0.8 | -1 |
Net Earnings of Zimmer Holdings, Inc. | $176.50 | $152.10 | $398 | $370.70 |
Earnings Per Common Share | ' | ' | ' | ' |
Basic | $1.05 | $0.90 | $2.36 | $2.20 |
Diluted | $1.03 | $0.89 | $2.32 | $2.17 |
Weighted Average Common Shares Outstanding | ' | ' | ' | ' |
Basic | 168.4 | 168.8 | 168.7 | 168.8 |
Diluted | 171 | 170.7 | 171.4 | 170.7 |
Cash Dividends Declared Per Common Share | $0.22 | $0.20 | $0.44 | $0.40 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $176.10 | $151.70 | $397.20 | $369.70 |
Other Comprehensive Income: | ' | ' | ' | ' |
Foreign currency cumulative translation adjustments | -12.3 | -31.8 | 3.6 | -96.8 |
Unrealized cash flow hedge gains/(losses), net of tax | -8.3 | 13.6 | -11.4 | 42.8 |
Reclassification adjustments on foreign currency hedges, net of tax | -2.7 | -2.4 | -4.7 | 1.5 |
Unrealized gains/(losses) on securities, net of tax | 0.1 | -0.9 | 0.2 | -1 |
Reclassification adjustments on securities, net of tax | ' | ' | -0.4 | ' |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 3.6 | 2.3 | 1.7 | 6.5 |
Total Other Comprehensive Loss | -19.6 | -19.2 | -11 | -47 |
Comprehensive Income | 156.5 | 132.5 | 386.2 | 322.7 |
Comprehensive loss attributable to the noncontrolling interest | -0.4 | -0.4 | -0.8 | -1 |
Comprehensive Income attributable to Zimmer Holdings, Inc. | $156.90 | $132.90 | $387 | $323.70 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $968.70 | $1,080.60 |
Short-term investments | 729.3 | 727 |
Accounts receivable, less allowance for doubtful accounts | 950.2 | 936.6 |
Inventories | 1,147.20 | 1,074.50 |
Prepaid expenses and other current assets | 130.3 | 107.1 |
Deferred income taxes | 304.1 | 271.9 |
Total Current Assets | 4,229.80 | 4,197.70 |
Property, plant and equipment, net | 1,275.40 | 1,224.70 |
Goodwill | 2,611.10 | 2,611.20 |
Intangible assets, net | 646.5 | 707.7 |
Other assets | 875.5 | 839.3 |
Total Assets | 9,638.30 | 9,580.60 |
Current Liabilities: | ' | ' |
Accounts payable | 171.8 | 146.3 |
Income taxes | 134.6 | 221.2 |
Other current liabilities | 646.5 | 664.1 |
Total Current Liabilities | 952.9 | 1,031.60 |
Other long-term liabilities | 545.7 | 576.6 |
Long-term debt | 1,687.40 | 1,672.30 |
Total Liabilities | 3,186 | 3,280.50 |
Commitments and Contingencies (Note 14) | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, $0.01 par value, one billion shares authorized, 267.5 million shares issued in 2014 (264.3 million in 2013) | 2.7 | 2.6 |
Paid-in capital | 4,240.20 | 4,000.60 |
Retained earnings | 8,036.50 | 7,712.70 |
Accumulated other comprehensive income | 356.1 | 367.1 |
Treasury stock, 98.7 million shares in 2014 (94.5 million shares in 2013) | -6,185.20 | -5,785.70 |
Total Zimmer Holdings, Inc. stockholders' equity | 6,450.30 | 6,297.30 |
Noncontrolling interest | 2 | 2.8 |
Total Stockholders' Equity | 6,452.30 | 6,300.10 |
Total Liabilities and Stockholders' Equity | $9,638.30 | $9,580.60 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | 267,500,000 | 264,300,000 |
Treasury stock, shares | 98,700,000 | 94,500,000 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows provided by (used in) operating activities: | ' | ' |
Net earnings | $397.20 | $369.70 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 192.3 | 176.5 |
Share-based compensation | 24.2 | 26.2 |
Income tax benefit from stock option exercises | 28.8 | 21.8 |
Excess income tax benefit from stock option exercises | -8.6 | -5.1 |
Inventory step-up | 4.2 | 2.4 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ' | ' |
Income taxes | -114.4 | -47.8 |
Receivables | -14.7 | -90 |
Inventories | -85.2 | -86.2 |
Accounts payable and accrued expenses | -1.7 | 8.8 |
Other assets and liabilities | 20.8 | -6.1 |
Net cash provided by operating activities | 442.9 | 370.2 |
Cash flows provided by (used in) investing activities: | ' | ' |
Additions to instruments | -112 | -116.3 |
Additions to other property, plant and equipment | -63.4 | -40.3 |
Purchases of investments | -783.3 | -366 |
Sales of investments | 691.4 | 475.4 |
Investments in other assets | -1.4 | -74.4 |
Net cash used in investing activities | -268.7 | -121.6 |
Cash flows provided by (used in) financing activities: | ' | ' |
Net payments under revolving credit facilities | 0.5 | -100.1 |
Dividends paid to stockholders | -70.9 | -64.5 |
Proceeds from employee stock compensation plans | 218.9 | 216.7 |
Excess income tax benefit from stock option exercises | 8.6 | 5.1 |
Debt issuance costs | -47.7 | ' |
Purchase of additional shares from noncontrolling interest | ' | -1.8 |
Repurchase of common stock | -400.5 | -460.8 |
Net cash used in financing activities | -291.1 | -405.4 |
Effect of exchange rates on cash and cash equivalents | 5 | -17.6 |
Decrease in cash and cash equivalents | -111.9 | -174.4 |
Cash and cash equivalents, beginning of year | 1,080.60 | 884.3 |
Cash and cash equivalents, end of period | $968.70 | $709.90 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The financial data presented herein is unaudited and should be read in conjunction with the consolidated financial statements and accompanying notes included in the 2013 Annual Report on Form 10-K filed by Zimmer Holdings, Inc. The condensed consolidated financial statements for the majority of our international subsidiaries are for periods that ended on June 25, 2014 and 2013. For these international subsidiaries, the three month results included in these condensed consolidated financial statements are for the period of March 26 through June 25 and the six month results included in these condensed consolidated financial statements are for the period of December 26 through June 25 or the period of January 1 to June 25. | ||
In our opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The December 31, 2013 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). Results for interim periods should not be considered indicative of results for the full year. Certain amounts in the 2013 condensed consolidated financial statements have been reclassified to conform to the 2014 presentation. | ||
The words “we,” “us,” “our” and similar words refer to Zimmer Holdings, Inc. and its subsidiaries. Zimmer Holdings refers to the parent company only. | ||
On April 24, 2014, we entered into a definitive agreement to merge with LVB Acquisition, Inc. (LVB), the parent company of Biomet, Inc. (Biomet), in a cash and stock transaction valued at approximately $13.35 billion. We will pay $10.35 billion in cash, subject to certain adjustments, and issue 32.7 million shares of our common stock which had a value of approximately $3.0 billion, based on a stock price of $91.73 per share using the five day volume weighted average price immediately preceding the signing of the agreement. In connection with the merger, we will pay off all of LVB’s outstanding funded debt, and the aggregate cash merger consideration will be reduced by such amount. The merger, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first quarter of 2015. The merger will position the combined company as a leader in the $45 billion musculoskeletal industry. | ||
Biomet’s product portfolio includes knee and hip reconstructive products; sports medicine, extremities and trauma products; spine, bone healing and microfixation products; dental reconstructive products; and cement, biologics and other products. The combination will enhance enterprise diversification with broader franchises in the Knee, Hip, Surgical, Spine and Dental categories, as well as in the faster-growing Sports Medicine, Extremities and Trauma categories. | ||
We expect to fund the cash portion of the purchase price with existing cash on hand, as well as proceeds obtained from a newly committed $3.0 billion senior unsecured term loan and up to $7.66 billion in senior unsecured notes we intend to issue. In May 2014, we entered into a $7.66 billion 364-day bridge credit facility. To the extent the senior unsecured notes are not issued and sold on or prior to the closing date of the merger, we intend to draw on the bridge credit facility to finance, in part, the cash consideration for the merger and to pay fees and expenses incurred in connection with the merger. The commitments of the bridge lenders to provide the bridge loan will be permanently reduced dollar-for-dollar by the amount of net cash proceeds we receive from the issuance of the senior unsecured notes. See Note 6 and Item 2 in this Form 10-Q for further information regarding these debt instruments. |
Significant_Accounting_Policie
Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||
2 | Significant Accounting Policies | ||||||||||||||||
Special Items – We recognize expenses resulting directly from our business combinations (including certain expenses relating to the anticipated merger with Biomet), 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, quality and operational excellence initiatives, and other items as “Special items” in our condensed consolidated statement of earnings. “Special items” included (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Impairment/loss on disposal of assets | $ | 4.6 | $ | — | $ | 14.3 | $ | 0.3 | |||||||||
Consulting and professional fees | 40.7 | 23.4 | 55.7 | 50.3 | |||||||||||||
Employee severance and retention | — | 6.5 | 0.9 | 6.2 | |||||||||||||
Dedicated project personnel | 10.9 | 11.1 | 21.8 | 16.5 | |||||||||||||
Certain R&D agreements | — | 0.8 | 4.5 | 0.8 | |||||||||||||
Relocated facilities | — | 1.3 | 0.7 | 2.6 | |||||||||||||
Distributor acquisitions | 0.4 | 0.3 | 0.4 | 0.3 | |||||||||||||
Certain litigation matters | — | 21.7 | — | 17.9 | |||||||||||||
Contract terminations | 4.6 | 0.9 | 5.6 | 1.4 | |||||||||||||
Contingent consideration adjustments | (0.1 | ) | 5.6 | 0.4 | 5.9 | ||||||||||||
Accelerated software amortization | 1.5 | 1.5 | 3 | 3 | |||||||||||||
Other | 2.1 | 2.5 | 3.3 | 3.9 | |||||||||||||
Special items | $ | 64.7 | $ | 75.6 | $ | 110.6 | $ | 109.1 | |||||||||
In the six month period ended June 30, 2014, we reduced the estimated useful lives of certain intangible assets to zero because we determined we would no longer utilize those assets. This was accounted for as a change in accounting estimate, which resulted in their remaining net book values of $7.2 million being amortized immediately. We have included this amortization expense in the caption “Impairment/loss on disposal of assets.” | |||||||||||||||||
Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) No. 2014-09 – Revenue from Contracts with Customers (Topic 606). The ASU provides a five-step model for revenue recognition that all industries will apply to recognize revenue when a customer obtains control of a good or service. The ASU will be effective for us beginning January 1, 2017. We are in the initial phases of our adoption plans and, accordingly, we are unable to estimate any effect this may have on our revenue recognition practices. | |||||||||||||||||
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. | |||||||||||||||||
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
3 | Inventories | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
Finished goods | $ | 888.5 | $ | 817 | |||||
Work in progress | 84.9 | 77.4 | |||||||
Raw materials | 173.8 | 180.1 | |||||||
Inventories | $ | 1,147.20 | $ | 1,074.50 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
4 | Property, Plant and Equipment | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
Land | $ | 21.7 | $ | 21.7 | |||||
Buildings and equipment | 1,371.10 | 1,353.10 | |||||||
Capitalized software costs | 282.1 | 272.6 | |||||||
Instruments | 1,705.20 | 1,610.60 | |||||||
Construction in progress | 84.4 | 58.2 | |||||||
3,464.50 | 3,316.20 | ||||||||
Accumulated depreciation | (2,189.1 | ) | (2,091.5 | ) | |||||
Property, plant and equipment, net | $ | 1,275.40 | $ | 1,224.70 | |||||
Investments
Investments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
5 | Investments | ||||||||||||||||
We invest in short and long-term investments classified as available-for-sale securities. Information regarding our investments is as follows (in millions): | |||||||||||||||||
Amortized | Gross Unrealized | Fair value | |||||||||||||||
Cost | Gains | Losses | |||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Corporate debt securities | $ | 323.6 | $ | 0.3 | $ | (0.1 | ) | $ | 323.8 | ||||||||
U.S. government and agency debt securities | 185.1 | — | — | 185.1 | |||||||||||||
Foreign government debt securities | 8.1 | — | — | 8.1 | |||||||||||||
Commercial paper | 314.6 | — | — | 314.6 | |||||||||||||
Certificates of deposit | 65.2 | — | — | 65.2 | |||||||||||||
Total short and long-term investments | $ | 896.6 | $ | 0.3 | $ | (0.1 | ) | $ | 896.8 | ||||||||
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 | ||||||||
The unrealized losses on our investments in corporate debt securities were caused by increases in interest yields in the global credit markets. We believe the unrealized losses associated with these securities as of June 30, 2014 are temporary because we do not intend to sell these investments, and we do not believe we will be required to sell them before recovery of their amortized cost basis. | |||||||||||||||||
The amortized cost and fair value of our available-for-sale fixed-maturity securities by contractual maturity are as follows (in millions): | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Amortized | Fair | ||||||||||||||||
Cost | Value | ||||||||||||||||
Due in one year or less | $ | 729.3 | $ | 729.3 | |||||||||||||
Due after one year through two years | 167.3 | 167.5 | |||||||||||||||
Total | $ | 896.6 | $ | 896.8 | |||||||||||||
Debt
Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt | ' | ||||||||
6 | Debt | ||||||||
Our debt consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
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 | |||||||
Japan term loan | 114.6 | 112.4 | |||||||
Other long-term debt | 3.1 | 2.1 | |||||||
Debt discount | (1.5 | ) | (1.5 | ) | |||||
Adjustment related to interest rate swaps | 21.2 | 9.3 | |||||||
Total long-term debt | $ | 1,687.40 | $ | 1,672.30 | |||||
In May 2014, we entered into a new credit agreement (Senior Credit Facility). The Senior Credit Facility contains: 1) a 5-year unsecured term loan facility in the principal amount of $3.0 billion (Term Loan), and 2) a 5-year unsecured multicurrency revolving facility in the principal amount of $1.35 billion (Multicurrency Revolving Facility). The Senior Credit Facility replaced a previous agreement that provided for a $1.35 billion revolving credit facility maturing in May 2017. The Multicurrency Revolving Facility will mature in May 2019, with two one-year extensions available at our option. Borrowings under the Multicurrency Revolving Facility may be used for general corporate purposes. The availability of the Term Loan is conditioned on, among other things, the consummation of the Biomet merger. The Term Loan requires us to reduce unused commitments and prepay the borrowings under the Term Loan with any net cash proceeds received from specified asset sales, issuances or sales of equity and incurrences of borrowed money indebtedness, subject to certain exceptions. Commitments under the Term Loan automatically terminate on the earliest to occur of: (i) the funding and disbursement of the Term Loan funds to us, (ii) April 24, 2015, as such date may be extended pursuant to the definitive merger agreement with LVB, or (iii) termination of the definitive merger agreement with LVB. The Term Loan will mature five years after the initial borrowing. Borrowings under the Term Loan may only be used by us to fund, in part, the Biomet merger, including the payment of any indebtedness of LVB and its subsidiaries, and to pay all or a portion of the costs incurred by us in connection with the Biomet merger. | |||||||||
In May 2014, we also entered into a 364-Day Credit Agreement (Bridge Credit Agreement). The Bridge Credit Agreement is a 364-day unsecured committed bridge facility in the principal amount of $7.66 billion. Funding of loans under the Bridge Credit Agreement is conditioned on, among other things, the consummation of the Biomet merger. Any loans under the Bridge Credit Agreement will mature 364 days after the funding date of the loans. The Bridge Credit Agreement requires us to reduce unused commitments and prepay the loans with any net cash proceeds received from specified asset sales, issuances or sales of equity and incurrences of borrowed money indebtedness, such as new senior notes we intend to issue, subject to certain exceptions. Commitments under the Bridge Credit Agreement automatically terminate on the earliest to occur of: (i) the funding and disbursement of the loans, (ii) April 24, 2015, as such date may be extended pursuant to the definitive merger agreement with LVB, or (iii) termination of the definitive merger agreement with LVB. Proceeds of loans under the Bridge Credit Agreement may only be used to fund, in part, the Biomet merger, including the payment of any indebtedness of LVB and its subsidiaries, and to pay all or a portion of the costs incurred by us in connection with the Biomet merger. | |||||||||
In association with the Senior Credit Facility and Bridge Credit Agreement we incurred debt issuance costs paid to the lenders. These debt issuance costs, to the extent paid, were recognized as financing cash flows on our condensed consolidated statement of cash flows. For the debt issuance costs related to the Bridge Credit Agreement, we are recognizing expense on a straight-line basis over the estimated commitment period, which is one year. If we borrow under the Bridge Credit Agreement in the future, any remaining unamortized debt issuance costs will be recognized as interest expense over the period debt is outstanding under the Bridge Credit Agreement. The related expense for the Bridge Credit Agreement debt issuance costs has been presented as “Other expense” on our condensed consolidated statement of earnings since we have not borrowed against this agreement. The debt issuance costs related to the Term Loan portion of the Senior Credit Facility will be recognized as interest expense under the effective interest rate method once we borrow on the Term Loan. The debt issuance costs related to the Multicurrency Revolving Facility are being recognized as expense on a straight-line basis over the 5-year commitment period of the facility. | |||||||||
The estimated fair value of our senior notes as of June 30, 2014, based on quoted prices for the specific securities from transactions in over-the-counter markets (Level 2), was $1,693.3 million. The estimated fair value of the Japan term loan as of June 30, 2014, based upon publicly available market yield curves and the terms of the debt (Level 2), was $114.3 million. | |||||||||
Before our senior notes due November 30, 2014 mature, we intend to borrow against our Senior Credit Facility or issue new senior notes to pay the $250 million owed. 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 June 30, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
7 | Accumulated Other Comprehensive Income | ||||||||||||||||||||||||
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. 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 11 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, 2013 | $ | 401.1 | $ | 33.1 | $ | 0.5 | $ | (67.6 | ) | ||||||||||||||||
OCI before reclassifications | 3.6 | (11.4 | ) | 0.2 | — | ||||||||||||||||||||
Reclassifications | — | (4.7 | ) | (0.4 | ) | 1.7 | |||||||||||||||||||
Balance June 30, 2014 | $ | 404.7 | $ | 17 | $ | 0.3 | $ | (65.9 | ) | ||||||||||||||||
The following table shows the reclassification adjustments from OCI (in millions): | |||||||||||||||||||||||||
Amount of Gain / (Loss) | |||||||||||||||||||||||||
Reclassified from OCI | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Location on | |||||||||||||||||||||||
June 30, | June 30, | Statement of Earnings | |||||||||||||||||||||||
Component of OCI | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 6.7 | $ | 3.7 | $ | 11.7 | $ | (1.7 | ) | Cost of products sold | |||||||||||||||
Foreign exchange options | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | Cost of products sold | ||||||||||||||||
6.6 | 3.6 | 11.5 | (1.9 | ) | Total before tax | ||||||||||||||||||||
3.9 | 1.2 | 6.8 | (0.4 | ) | Provision for income taxes | ||||||||||||||||||||
$ | 2.7 | $ | 2.4 | $ | 4.7 | $ | (1.5 | ) | Net of tax | ||||||||||||||||
Investments | |||||||||||||||||||||||||
Realized gains on securities | — | — | 0.4 | — | Interest income | ||||||||||||||||||||
— | — | — | — | Provision for income taxes | |||||||||||||||||||||
$ | — | $ | — | $ | 0.4 | $ | — | Net of tax | |||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service cost | $ | 0.9 | $ | 0.9 | $ | 1.9 | $ | 1.9 | * | ||||||||||||||||
Unrecognized actuarial (loss) | (2.8 | ) | (4.6 | ) | (5.7 | ) | (9.3 | ) | * | ||||||||||||||||
(1.9 | ) | (3.7 | ) | (3.8 | ) | (7.4 | ) | Total before tax | |||||||||||||||||
1.7 | (1.4 | ) | (2.1 | ) | (0.9 | ) | Provision for income taxes | ||||||||||||||||||
$ | (3.6 | ) | $ | (2.3 | ) | $ | (1.7 | ) | $ | (6.5 | ) | Net of tax | |||||||||||||
Total reclassifications | $ | (0.9 | ) | $ | 0.1 | $ | 3.4 | $ | (8.0 | ) | Net of tax | ||||||||||||||
* | These OCI components are included in the computation of net periodic pension expense (see Note 11). | ||||||||||||||||||||||||
The following table shows the tax effects on each component of OCI recognized in our condensed consolidated statements of comprehensive income (in millions): | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Before Tax | Tax | Net of Tax | Before Tax | Tax | Net of Tax | ||||||||||||||||||||
Foreign currency cumulative translation adjustments | $ | (12.3 | ) | $ | — | $ | (12.3 | ) | $ | 3.6 | $ | — | $ | 3.6 | |||||||||||
Unrealized cash flow hedge gains/(losses) | (11.6 | ) | (3.3 | ) | (8.3 | ) | (15.5 | ) | (4.1 | ) | (11.4 | ) | |||||||||||||
Reclassification adjustments on foreign currency hedges | (6.6 | ) | (3.9 | ) | (2.7 | ) | (11.5 | ) | (6.8 | ) | (4.7 | ) | |||||||||||||
Unrealized gains/(losses) on securities | 0.1 | — | 0.1 | 0.2 | — | 0.2 | |||||||||||||||||||
Reclassification adjustments on securities | — | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 1.9 | (1.7 | ) | 3.6 | 3.8 | 2.1 | 1.7 | ||||||||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | (28.5 | ) | $ | (8.9 | ) | $ | (19.6 | ) | $ | (19.8 | ) | $ | (8.8 | ) | $ | (11.0 | ) | |||||||
Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||||||||
June 30, 2013 | 2013 | ||||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | ||||||||||||||||||||
Tax | Tax | Tax | Tax | ||||||||||||||||||||||
Foreign currency cumulative translation adjustments | $ | (31.8 | ) | $ | — | $ | (31.8 | ) | $ | (96.8 | ) | $ | — | $ | (96.8 | ) | |||||||||
Unrealized cash flow hedge gains | 22.9 | 9.3 | 13.6 | 67.7 | 24.9 | 42.8 | |||||||||||||||||||
Reclassification adjustments on foreign currency hedges | (3.6 | ) | (1.2 | ) | (2.4 | ) | 1.9 | 0.4 | 1.5 | ||||||||||||||||
Unrealized gains on securities | (0.9 | ) | — | (0.9 | ) | (1.0 | ) | — | (1.0 | ) | |||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 3.7 | 1.4 | 2.3 | 7.4 | 0.9 | 6.5 | |||||||||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | (9.7 | ) | $ | 9.5 | $ | (19.2 | ) | $ | (20.8 | ) | $ | 26.2 | $ | (47.0 | ) | |||||||||
Fair_Value_Measurement_of_Asse
Fair Value Measurement of Assets and Liabilities | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurement of Assets and Liabilities | ' | ||||||||||||||||
8 | Fair Value Measurement of Assets and Liabilities | ||||||||||||||||
The following assets and liabilities are recorded at fair value on a recurring basis (in millions): | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||
Description | Recorded | Quoted Prices in | Significant Other | Significant | |||||||||||||
Balance | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Corporate debt securities | $ | 323.8 | $ | — | $ | 323.8 | $ | — | |||||||||
U.S. government and agency debt securities | 185.1 | — | 185.1 | — | |||||||||||||
Foreign government debt securities | 8.1 | — | 8.1 | — | |||||||||||||
Commercial paper | 314.6 | — | 314.6 | — | |||||||||||||
Certificates of deposit | 65.2 | — | 65.2 | — | |||||||||||||
Total available-for-sale securities | 896.8 | — | 896.8 | — | |||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | 30.3 | — | 30.3 | — | |||||||||||||
Interest rate swaps | 21.2 | — | 21.2 | — | |||||||||||||
$ | 948.3 | $ | — | $ | 948.3 | $ | — | ||||||||||
Liabilities | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | $ | 17.1 | $ | — | $ | 17.1 | $ | — | |||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||
Description | Recorded | Quoted Prices in | Significant Other | Significant | |||||||||||||
Balance | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(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 | $ | — | ||||||||||
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. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 6 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||||||||||||||||||||
9 | 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 June 30, 2014, 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 July 2014 through December 2016. As of June 30, 2014, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase U.S. Dollars were $1,462.7 million. As of June 30, 2014, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase Swiss Francs were $306.7 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. | |||||||||||||||||||||||||||||||||||||
Income Statement Presentation | |||||||||||||||||||||||||||||||||||||
Derivatives Designated as Fair Value Hedges | |||||||||||||||||||||||||||||||||||||
Derivative instruments designated as fair value hedges had the following effects on our condensed consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Location on | Gain / (Loss) on Instrument | Gain / (Loss) on Hedged Item | ||||||||||||||||||||||||||||||||||
Statement of Earnings | Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | 6.8 | $ | (10.8 | ) | $ | 11.9 | $ | (14.1 | ) | $ | (6.8 | ) | $ | 10.8 | $ | (11.9 | ) | $ | 14.1 | ||||||||||||||||
We had no ineffective fair value hedging instruments during the three and six month periods ended June 30, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||
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 condensed consolidated statements of earnings, condensed consolidated statements of comprehensive income and condensed consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Amount of Gain / (Loss) | Location on | Amount of Gain / (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in OCI | Reclassified from OCI | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Statement of Earnings | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | (11.4 | ) | $ | 22.7 | $ | (15.3 | ) | $ | 68 | Cost of products sold | $ | 6.7 | $ | 3.7 | $ | 11.7 | $ | (1.7 | ) | |||||||||||||||||
Foreign exchange options | (0.2 | ) | 0.2 | (0.2 | ) | (0.3 | ) | Cost of products sold | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||
$ | (11.6 | ) | $ | 22.9 | $ | (15.5 | ) | $ | 67.7 | $ | 6.6 | $ | 3.6 | $ | 11.5 | $ | (1.9 | ) | |||||||||||||||||||
The net amount recognized in earnings during the three and six month periods ended June 30, 2014 and 2013 due to ineffectiveness and amounts excluded from the assessment of hedge effectiveness was not significant. | |||||||||||||||||||||||||||||||||||||
The fair value of outstanding derivative instruments designated as cash flow hedges and recorded on the balance sheet at June 30, 2014, together with settled derivatives where the hedged item has not yet affected earnings, was a net unrealized gain of $33.8 million, or $17.0 million after taxes, which is deferred in OCI. Of the net unrealized gain, $24.2 million, or $12.8 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 condensed consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Location on | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
Statement of Earnings | June 30, | June 30, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Cost of products sold | $ | (1.9 | ) | $ | (0.3 | ) | $ | (4.3 | ) | $ | 7.6 | |||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013, all derivative instruments designated as fair value hedges and cash flow hedges were recorded at fair value on the balance sheet. On our condensed 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): | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 36.9 | Other current assets | $ | 60.2 | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 9.9 | Other assets | 30.2 | |||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | 21.2 | Other assets | 16.3 | |||||||||||||||||||||||||||||||||
Total asset derivatives | $ | 68 | $ | 106.7 | |||||||||||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 22.5 | Other current liabilities | $ | 26.4 | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other long-term liabilities | 11.1 | Other long-term liabilities | 15.9 | |||||||||||||||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | — | Other long-term liabilities | 7 | |||||||||||||||||||||||||||||||||
Total liability derivatives | $ | 33.6 | $ | 49.3 | |||||||||||||||||||||||||||||||||
The table below presents the effects of our master netting agreements on our condensed consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||||||||||
Description | Location | As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||||
Gross | Offset | Net Amount | Gross | Offset | Net Amount | ||||||||||||||||||||||||||||||||
Amount | in Balance | Amount | in Balance | ||||||||||||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||||||||||
Cash flow hedges | Other current assets | $ | 36.9 | $ | 10.8 | $ | 26.1 | $ | 60.2 | $ | 13.5 | $ | 46.7 | ||||||||||||||||||||||||
Cash flow hedges | Other assets | 9.9 | 5.7 | 4.2 | 30.2 | 8.2 | 22 | ||||||||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Cash flow hedges | Other current liabilities | 22.5 | 10.8 | 11.7 | 26.4 | 13.5 | 12.9 | ||||||||||||||||||||||||||||||
Cash flow hedges | Other long-term liabilities | 11.1 | 5.7 | 5.4 | 15.9 | 8.2 | 7.7 | ||||||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
10 | Income Taxes | |
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 net amount of tax liability for unrecognized tax benefits may change within the next twelve months 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. Currently, we cannot reasonably estimate the amount by which our unrecognized tax benefits will change. | ||
During the second quarter of 2014, the Internal Revenue Service (IRS) began the audit of our U.S. federal returns for the years 2010 through 2012. During the second quarter of 2011, the IRS concluded its examination of our U.S. federal returns for years 2005 through 2007 and during the fourth quarter of 2013, the IRS concluded its 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. During the second quarter of 2014, the IRS issued a corrected Revenue Agent Report for years 2008 through 2009, assessing a penalty with respect to a 2008 uncertain tax position. We have disputed these proposed adjustments and continue to pursue resolution with the IRS. During the second quarter of 2014, the IRS issued a statutory notice of deficiency for the years 2005 through 2007. We intend to contest this deficiency notice by filing a petition with the U.S. Tax Court. Although the ultimate timing for resolution of the disputed tax issues is uncertain, we may resolve certain tax matters with the IRS within the next twelve months, 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. | ||
In the three and six month periods ended June 30, 2014, our effective tax rate was 25.5 percent and 24.0 percent, respectively. Our effective tax rate was lower than the U.S. statutory income tax rate of 35 percent primarily due to income earned in foreign locations with lower tax rates as well as an international reorganization resulting in the release of a valuation allowance on foreign net operating loss carryforwards. | ||
Retirement_Benefit_Plans
Retirement Benefit Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Retirement Benefit Plans | ' | ||||||||||||||||
11 | 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 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. | |||||||||||||||||
The components of net periodic pension expense for our U.S. and foreign defined benefit retirement plans are as follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 6 | $ | 7 | $ | 12.7 | $ | 14.1 | |||||||||
Interest cost | 5.9 | 4.7 | 12.3 | 9.4 | |||||||||||||
Expected return on plan assets | (9.9 | ) | (8.9 | ) | (20.3 | ) | (17.8 | ) | |||||||||
Amortization of prior service cost | (0.9 | ) | (0.9 | ) | (1.9 | ) | (1.9 | ) | |||||||||
Amortization of unrecognized actuarial loss | 2.8 | 4.6 | 5.7 | 9.3 | |||||||||||||
Net periodic pension expense | $ | 3.9 | $ | 6.5 | $ | 8.5 | $ | 13.1 | |||||||||
We contributed $2.0 million during the six month period ended June 30, 2014 to our U.S. and Puerto Rico defined benefit plans and do not expect to contribute additional funds to these plans during the remainder of 2014. We contributed $7.2 million to our foreign-based defined benefit plans in the six month period ended June 30, 2014 and expect to contribute $7.3 million to these foreign-based plans during the remainder of 2014. | |||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
12 | Earnings Per Share | ||||||||||||||||
The following is a reconciliation of weighted average shares for the basic and diluted shares computations (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average shares outstanding for basic net earnings per share | 168.4 | 168.8 | 168.7 | 168.8 | |||||||||||||
Effect of dilutive stock options and other equity awards | 2.6 | 1.9 | 2.7 | 1.9 | |||||||||||||
Weighted average shares outstanding for diluted net earnings per share | 171 | 170.7 | 171.4 | 170.7 | |||||||||||||
During the three and six month periods ended June 30, 2014, all outstanding options to purchase shares of common stock were included in the computation of diluted earnings per share because the exercise prices of all options were less than the average market price of our common stock. During the three and six month periods ended June 30, 2013, an average of 4.9 million options and 5.6 million options, respectively, had exercise prices that were greater than the average market price of our common stock and were not included in the computation. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
13 | Segment Information | ||||||||||||||||
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. | |||||||||||||||||
Net sales and segment operating profit are as follows (in millions): | |||||||||||||||||
Net Sales | Operating Profit | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Americas | $ | 639.7 | $ | 660.1 | $ | 315.2 | $ | 324.9 | |||||||||
Europe | 334.7 | 307.5 | 102.5 | 92.4 | |||||||||||||
Asia Pacific | 208.5 | 201.9 | 93.9 | 92.4 | |||||||||||||
Total | $ | 1,182.90 | $ | 1,169.50 | |||||||||||||
Share-based compensation | (13.0 | ) | (12.2 | ) | |||||||||||||
Inventory step-up | (1.7 | ) | (1.6 | ) | |||||||||||||
Certain claims | (21.8 | ) | (47.0 | ) | |||||||||||||
Special items | (64.7 | ) | (75.6 | ) | |||||||||||||
Global operations and corporate functions | (151.1 | ) | (162.9 | ) | |||||||||||||
Operating profit | $ | 259.3 | $ | 210.4 | |||||||||||||
Net Sales | Operating Profit | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Americas | $ | 1,278.40 | $ | 1,294.80 | $ | 625.1 | $ | 645.5 | |||||||||
Europe | 661.6 | 615 | 204.2 | 180.7 | |||||||||||||
Asia Pacific | 404.4 | 398.6 | 188.4 | 172.8 | |||||||||||||
Total | $ | 2,344.40 | $ | 2,308.40 | |||||||||||||
Share-based compensation | (24.2 | ) | (26.2 | ) | |||||||||||||
Inventory step-up | (4.2 | ) | (2.4 | ) | |||||||||||||
Certain claims | (21.8 | ) | (47.0 | ) | |||||||||||||
Special items | (110.6 | ) | (109.1 | ) | |||||||||||||
Global operations and corporate functions | (299.2 | ) | (305.7 | ) | |||||||||||||
Operating profit | $ | 557.7 | $ | 508.6 | |||||||||||||
Net sales by product category are as follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reconstructive | |||||||||||||||||
Knees | $ | 497.9 | $ | 481 | $ | 985.8 | $ | 952 | |||||||||
Hips | 341 | 338.4 | 672.7 | 669.2 | |||||||||||||
Extremities | 51.5 | 48.6 | 103.6 | 96.4 | |||||||||||||
890.4 | 868 | 1,762.10 | 1,717.60 | ||||||||||||||
Dental | 61.1 | 61.4 | 122.1 | 121.1 | |||||||||||||
Trauma | 78.8 | 74.1 | 158.5 | 156.1 | |||||||||||||
Spine | 52.2 | 54.2 | 100.5 | 101.9 | |||||||||||||
Surgical and other | 100.4 | 111.8 | 201.2 | 211.7 | |||||||||||||
Total | $ | 1,182.90 | $ | 1,169.50 | $ | 2,344.40 | $ | 2,308.40 | |||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
14 | Commitments and Contingencies | |
On a quarterly and annual basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. We establish liabilities for loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. For matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. | ||
Litigation | ||
Durom® Cup-related claims: On July 22, 2008, we temporarily suspended marketing and distribution of the Durom Acetabular Component (Durom Cup) in the U.S. Subsequently, a number of product liability lawsuits were filed against us in various U.S. and foreign jurisdictions. The plaintiffs seek damages for personal injury, and they generally allege that the Durom Cup contains defects that result in complications and premature revision of the device. We have settled some of these claims and the others are still pending. The majority of the pending U.S. lawsuits are currently in a federal Multidistrict Litigation (MDL) in the District of New Jersey (In Re: Zimmer Durom Hip Cup Products Liability Litigation). Multi-plaintiff state court cases are pending in St. Clair County, Illinois (Santas, et al. v. Zimmer, Inc., et al.) and Los Angeles County, California (McAllister, et al. v. Zimmer, Inc., et al.). As of June 30, 2014, discovery in these lawsuits was underway. Initial trials in Santas, McAllister and the MDL are expected to commence in the fourth quarter of 2014, the first quarter of 2015 and the second quarter of 2015, respectively. Other lawsuits are pending in various jurisdictions, and additional claims may be asserted in the future. | ||
Since 2008, we have recognized expense of $472.0 million for Durom Cup-related claims, including $21.8 million during the three and six month periods ended June 30, 2014 and $47.0 million during the three and six month periods ended June 30, 2013. Based on our review of the most recent claims information available, we increased our estimated total liability for these claims as of June 30, 2014. The increase was the result of new developments related to international claims activity. | ||
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. As of June 30, 2014, we believe we have exhausted our self-insured retention under our insurance program and 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 probable that we will recover some amount from our insurance carriers. We have recognized a $218.0 million receivable in “Other assets” on our condensed consolidated balance sheet as of June 30, 2014 for estimated insurance recoveries, which reduced “Certain claims” expense. 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 June 30, 2014 of the remaining liability for all Durom Cup-related claims is $385.4 million, of which $50.0 million is classified as short-term in “Other current liabilities” and $335.4 million is classified as long-term in “Other long-term liabilities” on our condensed 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 DuromCup-related claims, including our estimate of the number of claims that we will receive and the average amount we will pay per claim. The actual number of claims and the actual amount we pay per claim may differ from our estimates. Among other factors, 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. | ||
Margo and Daniel Polett v. Zimmer, Inc. et al.: 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, which was granted on May 21, 2014. Although we are defending this lawsuit vigorously, its ultimate resolution is uncertain. | ||
NexGen® Knee System claims: 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 (In Re: Zimmer NexGen Knee Implant Products Liability Litigation). Other cases are pending in other state and federal courts, and additional lawsuits may be filed. As of June 30, 2014, discovery in these lawsuits was underway. Bellwether trials are expected to commence in the second quarter of 2015. 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. | ||
Hays v. Dvorak et al.: On June 16, 2014, a shareholder derivative action, Hays v. Dvorak et al., was filed in the Court of Chancery of the State of Delaware. The plaintiff seeks to maintain the action purportedly on our behalf against certain of our current and former directors and two non-director executive officers. The plaintiff alleges, among other things, breaches of fiduciary duties, abuse of control, unjust enrichment and gross mismanagement by the named defendants based on the trial court’s ruling in the patent infringement lawsuit brought by Stryker Corporation and related entities described below relating to certain of our Pulsavac® Plus Wound Debridement Products. The plaintiff does not seek damages from us, but instead requests damages of an unspecified amount on our behalf. The plaintiff also seeks equitable relief to remedy the individual defendants’ alleged misconduct, attorneys’ fees, costs and other relief. | ||
Intellectual Property-Related Claims | ||
Patent infringement lawsuit: 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 condensed consolidated statement of earnings for the quarter ended June 30, 2014 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 toTrilogy® 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 June 30, 2014, 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. | ||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Special Items | ' | ||||||||||||||||
Special Items – We recognize expenses resulting directly from our business combinations (including certain expenses relating to the anticipated merger with Biomet), 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, quality and operational excellence initiatives, and other items as “Special items” in our condensed consolidated statement of earnings. “Special items” included (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Impairment/loss on disposal of assets | $ | 4.6 | $ | — | $ | 14.3 | $ | 0.3 | |||||||||
Consulting and professional fees | 40.7 | 23.4 | 55.7 | 50.3 | |||||||||||||
Employee severance and retention | — | 6.5 | 0.9 | 6.2 | |||||||||||||
Dedicated project personnel | 10.9 | 11.1 | 21.8 | 16.5 | |||||||||||||
Certain R&D agreements | — | 0.8 | 4.5 | 0.8 | |||||||||||||
Relocated facilities | — | 1.3 | 0.7 | 2.6 | |||||||||||||
Distributor acquisitions | 0.4 | 0.3 | 0.4 | 0.3 | |||||||||||||
Certain litigation matters | — | 21.7 | — | 17.9 | |||||||||||||
Contract terminations | 4.6 | 0.9 | 5.6 | 1.4 | |||||||||||||
Contingent consideration adjustments | (0.1 | ) | 5.6 | 0.4 | 5.9 | ||||||||||||
Accelerated software amortization | 1.5 | 1.5 | 3 | 3 | |||||||||||||
Other | 2.1 | 2.5 | 3.3 | 3.9 | |||||||||||||
Special items | $ | 64.7 | $ | 75.6 | $ | 110.6 | $ | 109.1 | |||||||||
Recent Accounting Pronouncements | ' | ||||||||||||||||
Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) No. 2014-09 – Revenue from Contracts with Customers (Topic 606). The ASU provides a five-step model for revenue recognition that all industries will apply to recognize revenue when a customer obtains control of a good or service. The ASU will be effective for us beginning January 1, 2017. We are in the initial phases of our adoption plans and, accordingly, we are unable to estimate any effect this may have on our revenue recognition practices. | |||||||||||||||||
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) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Expenses in Special Items | ' | ||||||||||||||||
“Special items” included (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Impairment/loss on disposal of assets | $ | 4.6 | $ | — | $ | 14.3 | $ | 0.3 | |||||||||
Consulting and professional fees | 40.7 | 23.4 | 55.7 | 50.3 | |||||||||||||
Employee severance and retention | — | 6.5 | 0.9 | 6.2 | |||||||||||||
Dedicated project personnel | 10.9 | 11.1 | 21.8 | 16.5 | |||||||||||||
Certain R&D agreements | — | 0.8 | 4.5 | 0.8 | |||||||||||||
Relocated facilities | — | 1.3 | 0.7 | 2.6 | |||||||||||||
Distributor acquisitions | 0.4 | 0.3 | 0.4 | 0.3 | |||||||||||||
Certain litigation matters | — | 21.7 | — | 17.9 | |||||||||||||
Contract terminations | 4.6 | 0.9 | 5.6 | 1.4 | |||||||||||||
Contingent consideration adjustments | (0.1 | ) | 5.6 | 0.4 | 5.9 | ||||||||||||
Accelerated software amortization | 1.5 | 1.5 | 3 | 3 | |||||||||||||
Other | 2.1 | 2.5 | 3.3 | 3.9 | |||||||||||||
Special items | $ | 64.7 | $ | 75.6 | $ | 110.6 | $ | 109.1 | |||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Summary of Inventories | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
Finished goods | $ | 888.5 | $ | 817 | |||||
Work in progress | 84.9 | 77.4 | |||||||
Raw materials | 173.8 | 180.1 | |||||||
Inventories | $ | 1,147.20 | $ | 1,074.50 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Property, Plant and Equipment | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in millions) | |||||||||
Land | $ | 21.7 | $ | 21.7 | |||||
Buildings and equipment | 1,371.10 | 1,353.10 | |||||||
Capitalized software costs | 282.1 | 272.6 | |||||||
Instruments | 1,705.20 | 1,610.60 | |||||||
Construction in progress | 84.4 | 58.2 | |||||||
3,464.50 | 3,316.20 | ||||||||
Accumulated depreciation | (2,189.1 | ) | (2,091.5 | ) | |||||
Property, plant and equipment, net | $ | 1,275.40 | $ | 1,224.70 | |||||
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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): | |||||||||||||||||
Amortized | Gross Unrealized | Fair value | |||||||||||||||
Cost | Gains | Losses | |||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Corporate debt securities | $ | 323.6 | $ | 0.3 | $ | (0.1 | ) | $ | 323.8 | ||||||||
U.S. government and agency debt securities | 185.1 | — | — | 185.1 | |||||||||||||
Foreign government debt securities | 8.1 | — | — | 8.1 | |||||||||||||
Commercial paper | 314.6 | — | — | 314.6 | |||||||||||||
Certificates of deposit | 65.2 | — | — | 65.2 | |||||||||||||
Total short and long-term investments | $ | 896.6 | $ | 0.3 | $ | (0.1 | ) | $ | 896.8 | ||||||||
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 | ||||||||
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): | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Amortized | Fair | ||||||||||||||||
Cost | Value | ||||||||||||||||
Due in one year or less | $ | 729.3 | $ | 729.3 | |||||||||||||
Due after one year through two years | 167.3 | 167.5 | |||||||||||||||
Total | $ | 896.6 | $ | 896.8 | |||||||||||||
Debt_Tables
Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Summary of Debt Instruments | ' | ||||||||
Our debt consisted of the following (in millions): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
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 | |||||||
Japan term loan | 114.6 | 112.4 | |||||||
Other long-term debt | 3.1 | 2.1 | |||||||
Debt discount | (1.5 | ) | (1.5 | ) | |||||
Adjustment related to interest rate swaps | 21.2 | 9.3 | |||||||
Total long-term debt | $ | 1,687.40 | $ | 1,672.30 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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, 2013 | $ | 401.1 | $ | 33.1 | $ | 0.5 | $ | (67.6 | ) | ||||||||||||||||
OCI before reclassifications | 3.6 | (11.4 | ) | 0.2 | — | ||||||||||||||||||||
Reclassifications | — | (4.7 | ) | (0.4 | ) | 1.7 | |||||||||||||||||||
Balance June 30, 2014 | $ | 404.7 | $ | 17 | $ | 0.3 | $ | (65.9 | ) | ||||||||||||||||
Reclassification Adjustments from Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
The following table shows the reclassification adjustments from OCI (in millions): | |||||||||||||||||||||||||
Amount of Gain / (Loss) | |||||||||||||||||||||||||
Reclassified from OCI | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Location on | |||||||||||||||||||||||
June 30, | June 30, | Statement of Earnings | |||||||||||||||||||||||
Component of OCI | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 6.7 | $ | 3.7 | $ | 11.7 | $ | (1.7 | ) | Cost of products sold | |||||||||||||||
Foreign exchange options | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | Cost of products sold | ||||||||||||||||
6.6 | 3.6 | 11.5 | (1.9 | ) | Total before tax | ||||||||||||||||||||
3.9 | 1.2 | 6.8 | (0.4 | ) | Provision for income taxes | ||||||||||||||||||||
$ | 2.7 | $ | 2.4 | $ | 4.7 | $ | (1.5 | ) | Net of tax | ||||||||||||||||
Investments | |||||||||||||||||||||||||
Realized gains on securities | — | — | 0.4 | — | Interest income | ||||||||||||||||||||
— | — | — | — | Provision for income taxes | |||||||||||||||||||||
$ | — | $ | — | $ | 0.4 | $ | — | Net of tax | |||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||||
Prior service cost | $ | 0.9 | $ | 0.9 | $ | 1.9 | $ | 1.9 | * | ||||||||||||||||
Unrecognized actuarial (loss) | (2.8 | ) | (4.6 | ) | (5.7 | ) | (9.3 | ) | * | ||||||||||||||||
(1.9 | ) | (3.7 | ) | (3.8 | ) | (7.4 | ) | Total before tax | |||||||||||||||||
1.7 | (1.4 | ) | (2.1 | ) | (0.9 | ) | Provision for income taxes | ||||||||||||||||||
$ | (3.6 | ) | $ | (2.3 | ) | $ | (1.7 | ) | $ | (6.5 | ) | Net of tax | |||||||||||||
Total reclassifications | $ | (0.9 | ) | $ | 0.1 | $ | 3.4 | $ | (8.0 | ) | Net of tax | ||||||||||||||
* | These OCI components are included in the computation of net periodic pension expense (see Note 11). | ||||||||||||||||||||||||
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 condensed consolidated statements of comprehensive income (in millions): | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | ||||||||||||||||||||||||
Before Tax | Tax | Net of Tax | Before Tax | Tax | Net of Tax | ||||||||||||||||||||
Foreign currency cumulative translation adjustments | $ | (12.3 | ) | $ | — | $ | (12.3 | ) | $ | 3.6 | $ | — | $ | 3.6 | |||||||||||
Unrealized cash flow hedge gains/(losses) | (11.6 | ) | (3.3 | ) | (8.3 | ) | (15.5 | ) | (4.1 | ) | (11.4 | ) | |||||||||||||
Reclassification adjustments on foreign currency hedges | (6.6 | ) | (3.9 | ) | (2.7 | ) | (11.5 | ) | (6.8 | ) | (4.7 | ) | |||||||||||||
Unrealized gains/(losses) on securities | 0.1 | — | 0.1 | 0.2 | — | 0.2 | |||||||||||||||||||
Reclassification adjustments on securities | — | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 1.9 | (1.7 | ) | 3.6 | 3.8 | 2.1 | 1.7 | ||||||||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | (28.5 | ) | $ | (8.9 | ) | $ | (19.6 | ) | $ | (19.8 | ) | $ | (8.8 | ) | $ | (11.0 | ) | |||||||
Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||||||||
June 30, 2013 | 2013 | ||||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | ||||||||||||||||||||
Tax | Tax | Tax | Tax | ||||||||||||||||||||||
Foreign currency cumulative translation adjustments | $ | (31.8 | ) | $ | — | $ | (31.8 | ) | $ | (96.8 | ) | $ | — | $ | (96.8 | ) | |||||||||
Unrealized cash flow hedge gains | 22.9 | 9.3 | 13.6 | 67.7 | 24.9 | 42.8 | |||||||||||||||||||
Reclassification adjustments on foreign currency hedges | (3.6 | ) | (1.2 | ) | (2.4 | ) | 1.9 | 0.4 | 1.5 | ||||||||||||||||
Unrealized gains on securities | (0.9 | ) | — | (0.9 | ) | (1.0 | ) | — | (1.0 | ) | |||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 3.7 | 1.4 | 2.3 | 7.4 | 0.9 | 6.5 | |||||||||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | (9.7 | ) | $ | 9.5 | $ | (19.2 | ) | $ | (20.8 | ) | $ | 26.2 | $ | (47.0 | ) | |||||||||
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements of Assets and Liabilities | ' | ||||||||||||||||
The following assets and liabilities are recorded at fair value on a recurring basis (in millions): | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||
Description | Recorded | Quoted Prices in | Significant Other | Significant | |||||||||||||
Balance | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Corporate debt securities | $ | 323.8 | $ | — | $ | 323.8 | $ | — | |||||||||
U.S. government and agency debt securities | 185.1 | — | 185.1 | — | |||||||||||||
Foreign government debt securities | 8.1 | — | 8.1 | — | |||||||||||||
Commercial paper | 314.6 | — | 314.6 | — | |||||||||||||
Certificates of deposit | 65.2 | — | 65.2 | — | |||||||||||||
Total available-for-sale securities | 896.8 | — | 896.8 | — | |||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | 30.3 | — | 30.3 | — | |||||||||||||
Interest rate swaps | 21.2 | — | 21.2 | — | |||||||||||||
$ | 948.3 | $ | — | $ | 948.3 | $ | — | ||||||||||
Liabilities | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | $ | 17.1 | $ | — | $ | 17.1 | $ | — | |||||||||
As of December 31, 2013 | |||||||||||||||||
Fair Value Measurements at Reporting Date Using: | |||||||||||||||||
Description | Recorded | Quoted Prices in | Significant Other | Significant | |||||||||||||
Balance | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(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 | $ | — | ||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||
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 condensed consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Location on | Gain / (Loss) on Instrument | Gain / (Loss) on Hedged Item | ||||||||||||||||||||||||||||||||||
Statement of Earnings | Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | 6.8 | $ | (10.8 | ) | $ | 11.9 | $ | (14.1 | ) | $ | (6.8 | ) | $ | 10.8 | $ | (11.9 | ) | $ | 14.1 | ||||||||||||||||
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 condensed consolidated statements of earnings, condensed consolidated statements of comprehensive income and condensed consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Amount of Gain / (Loss) | Location on | Amount of Gain / (Loss) | ||||||||||||||||||||||||||||||||||
Recognized in OCI | Reclassified from OCI | ||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Statement of Earnings | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | (11.4 | ) | $ | 22.7 | $ | (15.3 | ) | $ | 68 | Cost of products sold | $ | 6.7 | $ | 3.7 | $ | 11.7 | $ | (1.7 | ) | |||||||||||||||||
Foreign exchange options | (0.2 | ) | 0.2 | (0.2 | ) | (0.3 | ) | Cost of products sold | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||||||||||||||||
$ | (11.6 | ) | $ | 22.9 | $ | (15.5 | ) | $ | 67.7 | $ | 6.6 | $ | 3.6 | $ | 11.5 | $ | (1.9 | ) | |||||||||||||||||||
Gains/(Losses) from Derivative Instruments Recognized in Cost of Products Sold | ' | ||||||||||||||||||||||||||||||||||||
The following gains / (losses) from these derivative instruments were recognized on our condensed consolidated statements of earnings (in millions): | |||||||||||||||||||||||||||||||||||||
Derivative Instrument | Location on | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
Statement of Earnings | June 30, | June 30, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Cost of products sold | $ | (1.9 | ) | $ | (0.3 | ) | $ | (4.3 | ) | $ | 7.6 | |||||||||||||||||||||||||
Fair Value of Derivative Instruments on Gross Basis | ' | ||||||||||||||||||||||||||||||||||||
The fair value of derivative instruments on a gross basis is as follows (in millions): | |||||||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Fair | Balance Sheet Location | Fair | ||||||||||||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 36.9 | Other current assets | $ | 60.2 | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 9.9 | Other assets | 30.2 | |||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | 21.2 | Other assets | 16.3 | |||||||||||||||||||||||||||||||||
Total asset derivatives | $ | 68 | $ | 106.7 | |||||||||||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 22.5 | Other current liabilities | $ | 26.4 | |||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Other long-term liabilities | 11.1 | Other long-term liabilities | 15.9 | |||||||||||||||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | — | Other long-term liabilities | 7 | |||||||||||||||||||||||||||||||||
Total liability derivatives | $ | 33.6 | $ | 49.3 | |||||||||||||||||||||||||||||||||
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 condensed consolidated balance sheets (in millions): | |||||||||||||||||||||||||||||||||||||
Description | Location | As of June 30, 2014 | As of December 31, 2013 | ||||||||||||||||||||||||||||||||||
Gross | Offset | Net Amount | Gross | Offset | Net Amount | ||||||||||||||||||||||||||||||||
Amount | in Balance | Amount | in Balance | ||||||||||||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||||||||||||
Cash flow hedges | Other current assets | $ | 36.9 | $ | 10.8 | $ | 26.1 | $ | 60.2 | $ | 13.5 | $ | 46.7 | ||||||||||||||||||||||||
Cash flow hedges | Other assets | 9.9 | 5.7 | 4.2 | 30.2 | 8.2 | 22 | ||||||||||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Cash flow hedges | Other current liabilities | 22.5 | 10.8 | 11.7 | 26.4 | 13.5 | 12.9 | ||||||||||||||||||||||||||||||
Cash flow hedges | Other long-term liabilities | 11.1 | 5.7 | 5.4 | 15.9 | 8.2 | 7.7 |
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Pension Expense | ' | ||||||||||||||||
The components of net periodic pension expense for our U.S. and foreign defined benefit retirement plans are as follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Service cost | $ | 6 | $ | 7 | $ | 12.7 | $ | 14.1 | |||||||||
Interest cost | 5.9 | 4.7 | 12.3 | 9.4 | |||||||||||||
Expected return on plan assets | (9.9 | ) | (8.9 | ) | (20.3 | ) | (17.8 | ) | |||||||||
Amortization of prior service cost | (0.9 | ) | (0.9 | ) | (1.9 | ) | (1.9 | ) | |||||||||
Amortization of unrecognized actuarial loss | 2.8 | 4.6 | 5.7 | 9.3 | |||||||||||||
Net periodic pension expense | $ | 3.9 | $ | 6.5 | $ | 8.5 | $ | 13.1 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of Weighted Average Shares for Basic and Diluted Shares Computations | ' | ||||||||||||||||
The following is a reconciliation of weighted average shares for the basic and diluted shares computations (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average shares outstanding for basic net earnings per share | 168.4 | 168.8 | 168.7 | 168.8 | |||||||||||||
Effect of dilutive stock options and other equity awards | 2.6 | 1.9 | 2.7 | 1.9 | |||||||||||||
Weighted average shares outstanding for diluted net earnings per share | 171 | 170.7 | 171.4 | 170.7 | |||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Summary of Net Sales and Segment Operating Profit | ' | ||||||||||||||||
Net sales and segment operating profit are as follows (in millions): | |||||||||||||||||
Net Sales | Operating Profit | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Americas | $ | 639.7 | $ | 660.1 | $ | 315.2 | $ | 324.9 | |||||||||
Europe | 334.7 | 307.5 | 102.5 | 92.4 | |||||||||||||
Asia Pacific | 208.5 | 201.9 | 93.9 | 92.4 | |||||||||||||
Total | $ | 1,182.90 | $ | 1,169.50 | |||||||||||||
Share-based compensation | (13.0 | ) | (12.2 | ) | |||||||||||||
Inventory step-up | (1.7 | ) | (1.6 | ) | |||||||||||||
Certain claims | (21.8 | ) | (47.0 | ) | |||||||||||||
Special items | (64.7 | ) | (75.6 | ) | |||||||||||||
Global operations and corporate functions | (151.1 | ) | (162.9 | ) | |||||||||||||
Operating profit | $ | 259.3 | $ | 210.4 | |||||||||||||
Net Sales | Operating Profit | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Americas | $ | 1,278.40 | $ | 1,294.80 | $ | 625.1 | $ | 645.5 | |||||||||
Europe | 661.6 | 615 | 204.2 | 180.7 | |||||||||||||
Asia Pacific | 404.4 | 398.6 | 188.4 | 172.8 | |||||||||||||
Total | $ | 2,344.40 | $ | 2,308.40 | |||||||||||||
Share-based compensation | (24.2 | ) | (26.2 | ) | |||||||||||||
Inventory step-up | (4.2 | ) | (2.4 | ) | |||||||||||||
Certain claims | (21.8 | ) | (47.0 | ) | |||||||||||||
Special items | (110.6 | ) | (109.1 | ) | |||||||||||||
Global operations and corporate functions | (299.2 | ) | (305.7 | ) | |||||||||||||
Operating profit | $ | 557.7 | $ | 508.6 | |||||||||||||
Summary of Net Sales by Product Category | ' | ||||||||||||||||
Net sales by product category are as follows (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Reconstructive | |||||||||||||||||
Knees | $ | 497.9 | $ | 481 | $ | 985.8 | $ | 952 | |||||||||
Hips | 341 | 338.4 | 672.7 | 669.2 | |||||||||||||
Extremities | 51.5 | 48.6 | 103.6 | 96.4 | |||||||||||||
890.4 | 868 | 1,762.10 | 1,717.60 | ||||||||||||||
Dental | 61.1 | 61.4 | 122.1 | 121.1 | |||||||||||||
Trauma | 78.8 | 74.1 | 158.5 | 156.1 | |||||||||||||
Spine | 52.2 | 54.2 | 100.5 | 101.9 | |||||||||||||
Surgical and other | 100.4 | 111.8 | 201.2 | 211.7 | |||||||||||||
Total | $ | 1,182.90 | $ | 1,169.50 | $ | 2,344.40 | $ | 2,308.40 | |||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-14 | Apr. 24, 2014 | Apr. 24, 2014 | Apr. 24, 2014 | Apr. 24, 2014 | Apr. 24, 2014 |
Share data in Millions, except Per Share data, unless otherwise specified | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Senior unsecured term loan [Member] | Senior unsecured note [Member] | LVB Acquisition Inc [Member] | LVB Acquisition Inc [Member] | Musculo Skeletal Industry [Member] | |
Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | ||||||
Consolidation And Basis Of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Date of merger agreement | ' | ' | ' | ' | ' | 24-Apr-14 | ' | ' |
Total consideration | ' | ' | ' | ' | ' | ' | $13,350,000,000 | ' |
Consideration paid, cash | ' | ' | ' | ' | ' | ' | 10,350,000,000 | ' |
Consideration paid, shares | ' | ' | ' | ' | ' | ' | 32.7 | ' |
Consideration paid, common stock value | ' | ' | ' | ' | ' | ' | 3,000,000,000 | ' |
Consideration paid, common stock price | ' | ' | ' | ' | ' | ' | $91.73 | ' |
Net worth | ' | ' | ' | ' | ' | ' | ' | 45,000,000,000 |
Senior unsecured term loan and notes | 250,000,000 | ' | ' | 3,000,000,000 | 7,660,000,000 | ' | ' | ' |
Bridge loan | ' | ' | $7,660,000,000 | ' | ' | ' | ' | ' |
Debt instrument term | ' | '364 days | ' | ' | ' | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Summary of Expenses in Special Items (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure Significant Accounting Policies Summary Of Expenses In Special Items [Abstract] | ' | ' | ' | ' |
Impairment/loss on disposal of assets | $4.60 | ' | $14.30 | $0.30 |
Consulting and professional fees | 40.7 | 23.4 | 55.7 | 50.3 |
Employee severance and retention | ' | 6.5 | 0.9 | 6.2 |
Dedicated project personnel | 10.9 | 11.1 | 21.8 | 16.5 |
Certain R&D agreements | ' | 0.8 | 4.5 | 0.8 |
Relocated facilities | ' | 1.3 | 0.7 | 2.6 |
Distributor acquisitions | 0.4 | 0.3 | 0.4 | 0.3 |
Certain litigation matters | ' | 21.7 | ' | 17.9 |
Contract terminations | 4.6 | 0.9 | 5.6 | 1.4 |
Contingent consideration adjustments | -0.1 | 5.6 | 0.4 | 5.9 |
Accelerated software amortization | 1.5 | 1.5 | 3 | 3 |
Other | 2.1 | 2.5 | 3.3 | 3.9 |
Special items | $64.70 | $75.60 | $110.60 | $109.10 |
Significant_Accounting_Policie4
Significant Accounting Policies - Additional Information (Detail) (Certain intangible assets [Member], USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Certain intangible assets [Member] | ' |
Business And Significant Accounting Policies [Line Items] | ' |
Estimated useful lives of intangible assets | '0 years |
Amortization expense | $7.20 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $888.50 | $817 |
Work in progress | 84.9 | 77.4 |
Raw materials | 173.8 | 180.1 |
Inventories | $1,147.20 | $1,074.50 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Land | $21.70 | $21.70 |
Buildings and equipment | 1,371.10 | 1,353.10 |
Capitalized software costs | 282.1 | 272.6 |
Instruments | 1,705.20 | 1,610.60 |
Construction in progress | 84.4 | 58.2 |
Property, plant and equipment, Gross | 3,464.50 | 3,316.20 |
Accumulated depreciation | -2,189.10 | -2,091.50 |
Property, plant and equipment, net | $1,275.40 | $1,224.70 |
Investments_Investments_in_Sho
Investments - Investments in Short and Long-Term Classified as Available-for-Sale Securities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | $896.60 | $807.30 |
Available-for-sale Securities, Gross Unrealized Gains | 0.3 | 0.5 |
Available-for-sale Securities, Gross Unrealized Losses | -0.1 | -0.1 |
Available-for-sale Securities, Fair Value | 896.8 | 807.7 |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 323.6 | 457.6 |
Available-for-sale Securities, Gross Unrealized Gains | 0.3 | 0.4 |
Available-for-sale Securities, Gross Unrealized Losses | -0.1 | -0.1 |
Available-for-sale Securities, Fair Value | 323.8 | 457.9 |
U.S. government and agency debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 185.1 | 211.1 |
Available-for-sale Securities, Gross Unrealized Gains | ' | 0.1 |
Available-for-sale Securities, Fair Value | 185.1 | 211.2 |
Foreign government debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 8.1 | 3.1 |
Available-for-sale Securities, Fair Value | 8.1 | 3.1 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 314.6 | 68.3 |
Available-for-sale Securities, Fair Value | 314.6 | 68.3 |
Certificates of deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Amortized Cost | 65.2 | 67.2 |
Available-for-sale Securities, Fair Value | $65.20 | $67.20 |
Investments_Cost_and_Fair_Valu
Investments - Cost and Fair Value of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Amortized Cost And Fair Value Debt Securities [Abstract] | ' | ' |
Available-for-sale Securities, Debt Maturities, Due in One Year or less, Amortized Cost | $729.30 | ' |
Available-for-sale Securities, Debt Maturities, Due after One year through two Years, Amortized Cost | 167.3 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | 896.6 | 807.3 |
Available-for-sale Securities, Debt Maturities, Due in One Year or less, Fair Value | 729.3 | ' |
Available-for-sale Securities, Debt Maturities, Due after One year through two Years, Fair Value | 167.5 | ' |
Available-for-sale Securities, Fair Value | $896.80 | $807.70 |
Debt_Summary_of_Debt_Instrumen
Debt - Summary of Debt Instruments (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-term debt | ' | ' |
Senior Notes due | $250 | ' |
Other long-term debt | 3.1 | 2.1 |
Debt discount | -1.5 | -1.5 |
Adjustment related to interest rate swaps | 21.2 | 9.3 |
Total long-term debt | 1,687.40 | 1,672.30 |
Senior Notes due 2014 [Member] | ' | ' |
Long-term debt | ' | ' |
Senior Notes due | 250 | 250 |
Senior Notes due 2019 [Member] | ' | ' |
Long-term debt | ' | ' |
Senior Notes due | 500 | 500 |
Senior Notes due 2021 [Member] | ' | ' |
Long-term debt | ' | ' |
Senior Notes due | 300 | 300 |
Senior Notes due 2039 [Member] | ' | ' |
Long-term debt | ' | ' |
Senior Notes due | 500 | 500 |
Japan [Member] | ' | ' |
Long-term debt | ' | ' |
Japan term loan | $114.60 | $112.40 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | 31-May-14 | |
Debt Instrument [Line Items] | ' | ' |
Senior Notes due | 250,000,000 | ' |
Senior Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount, term loan description | 'The Senior Credit Facility contains 1) a 5-year unsecured term loan facility in the principal amount of $3.0 billion (Term Loan) | ' |
Credit facility, maturity date | 31-May-17 | ' |
Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Estimated fair value of senior notes and term loan | 1,693,300,000 | ' |
Term Loan [Member] | Japan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Estimated fair value of senior notes and term loan | 114,300,000 | ' |
Term Loan [Member] | Senior Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unsecured term loan, term | '5 years | ' |
Credit facility, maturity term | '5 years | ' |
Multicurrency Revolving Facility [Member] | Senior Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unsecured term loan, term | '5 years | ' |
Principal amount, unsecured credit facility | ' | $1,350,000,000 |
Credit facility, maturity date | 31-May-19 | ' |
Bridge Credit Agreement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unsecured term loan, term | '364 days | ' |
Principal amount, term loan description | 'The Bridge Credit Agreement is a 364-day unsecured committed bridge facility in the principal amount of $7.66 billion. | ' |
Credit facility, maturity date | 24-Apr-15 | ' |
Credit facility, maturity term | '364 days | ' |
Debt issuance costs commitment period | '1 year | ' |
Multicurrency Revolving Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt issuance costs commitment period | '5 years | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Changes in Components of Other Comprehensive Income, Net of Tax (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Foreign Currency Translation [Member] | Unrealized Gains on Securities [Member] | Defined Benefit Plan Items [Member] | Cash flow hedges [Member] | ||
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income, Beginning Balance | $356.10 | $367.10 | $401.10 | $0.50 | ($67.60) | $33.10 |
OCI before reclassifications | ' | ' | 3.6 | 0.2 | ' | -11.4 |
Reclassifications | ' | ' | ' | -0.4 | 1.7 | -4.7 |
Accumulated Other Comprehensive Income, Ending Balance | $356.10 | $367.10 | $404.70 | $0.30 | ($65.90) | $17 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Reclassification Adjustments from Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Cost of product sold | $333.20 | $323.60 | $638.60 | $616.50 |
Interest income | 2.9 | 3.9 | 5.4 | 7.6 |
Provision for income taxes | 60.3 | 44.3 | 125.1 | 110 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Net of tax | -0.9 | 0.1 | 3.4 | -8 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash flow hedges [Member] | ' | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Total before tax | 6.6 | 3.6 | 11.5 | -1.9 |
Provision for income taxes | 3.9 | 1.2 | 6.8 | -0.4 |
Net of tax | 2.7 | 2.4 | 4.7 | -1.5 |
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 | 6.7 | 3.7 | 11.7 | -1.7 |
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 | -0.1 | -0.1 | -0.2 | -0.2 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | ' | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Prior service cost | 0.9 | 0.9 | 1.9 | 1.9 |
Unrecognized actuarial (loss) | -2.8 | -4.6 | -5.7 | -9.3 |
Total before tax | -1.9 | -3.7 | -3.8 | -7.4 |
Provision for income taxes | 1.7 | -1.4 | -2.1 | -0.9 |
Net of tax | -3.6 | -2.3 | -1.7 | -6.5 |
Investments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' |
Interest income | ' | ' | 0.4 | ' |
Provision for income taxes | 0 | ' | 0 | ' |
Net of tax | ' | ' | $0.40 | ' |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income - Tax Effects on Each Component of Other Comprehensive Income Recognized in Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign currency cumulative translation adjustments, Before Tax | ($12.30) | ($31.80) | $3.60 | ($96.80) |
Unrealized cash flow hedge gains/(losses), Before Tax | -11.6 | 22.9 | -15.5 | 67.7 |
Reclassification adjustments on foreign currency hedges, Before Tax | -6.6 | -3.6 | -11.5 | 1.9 |
Unrealized gains/(losses) on securities, Before Tax | 0.1 | -0.9 | 0.2 | -1 |
Reclassification adjustments on securities, Before Tax | ' | ' | -0.4 | ' |
Adjustments to prior service cost and unrecognized actuarial assumptions, Before Tax | 1.9 | 3.7 | 3.8 | 7.4 |
Total Other Comprehensive Gain/(Loss), Before Tax | -28.5 | -9.7 | -19.8 | -20.8 |
Foreign currency cumulative translation adjustments, Tax | 0 | ' | ' | ' |
Unrealized cash flow hedge gains/(losses), Tax | -3.3 | 9.3 | -4.1 | 24.9 |
Reclassification adjustments on foreign currency hedges, Tax | -3.9 | -1.2 | -6.8 | 0.4 |
Unrealized gains/(losses) on securities, Tax | 0 | ' | ' | ' |
Reclassification adjustments on securities, Tax | 0 | ' | ' | ' |
Adjustments to prior service cost and unrecognized actuarial assumptions, Tax | -1.7 | 1.4 | 2.1 | 0.9 |
Total Other Comprehensive Gain/(Loss), Tax | -8.9 | 9.5 | -8.8 | 26.2 |
Foreign currency cumulative translation adjustments, net of tax | -12.3 | -31.8 | 3.6 | -96.8 |
Unrealized cash flow hedge gains/(losses), net of tax | -8.3 | 13.6 | -11.4 | 42.8 |
Reclassification adjustments on foreign currency hedges, net of tax | -2.7 | -2.4 | -4.7 | 1.5 |
Unrealized gains/(losses) on securities, net of tax | 0.1 | -0.9 | 0.2 | -1 |
Reclassification adjustments on securities, net of tax | ' | ' | -0.4 | ' |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 3.6 | 2.3 | 1.7 | 6.5 |
Total Other Comprehensive Gain/(Loss), net of tax | ($19.60) | ($19.20) | ($11) | ($47) |
Fair_Value_Measurements_of_Ass
Fair Value Measurements of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | $896.80 | $807.70 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 896.8 | 807.7 |
Total fair value measurement of assets | 948.3 | 892.7 |
Total fair value measurement of liabilities | ' | 27.6 |
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 | 323.8 | 457.9 |
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 | 185.1 | 211.2 |
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 | 8.1 | 3.1 |
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 | 314.6 | 68.3 |
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 | 65.2 | 67.2 |
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 | 30.3 | 68.7 |
Derivatives, current and long-term | 17.1 | 20.6 |
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 | 21.2 | 16.3 |
Derivatives, current and long-term | ' | 7 |
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 | 0 | ' |
Total fair value measurement of assets | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
Derivatives, current and long-term | 0 | ' |
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 | 0 | ' |
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 | 896.8 | 807.7 |
Total fair value measurement of assets | 948.3 | 892.7 |
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] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value | 323.8 | 457.9 |
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 | 185.1 | 211.2 |
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 | 8.1 | 3.1 |
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 | 314.6 | 68.3 |
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 | 65.2 | 67.2 |
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 | 30.3 | 68.7 |
Derivatives, current and long-term | 17.1 | 20.6 |
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 | 21.2 | 16.3 |
Derivatives, current and long-term | ' | 7 |
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 | 0 | ' |
Total fair value measurement of assets | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
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 | 0 | ' |
Derivatives, current and long-term | 0 | ' |
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 | $0 | ' |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Expected months of hedging of inter company sales of inventory to minimize the effects of foreign exchange rate movements | ' | ' | '30 months | ' |
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 | ' |
Amounts excluded from the assessment of hedge effectiveness | 0 | 0 | 0 | 0 |
Fair value of outstanding derivative instruments, net unrealized gain deferred in other comprehensive income | 33,800,000 | ' | 33,800,000 | ' |
Fair value of outstanding derivative instruments, net unrealized gain expected to be reclassified to earnings | 24,200,000 | ' | 24,200,000 | ' |
Fair value of outstanding derivative instruments, unrealized gain net of taxes expected to be reclassified to earnings | 12,800,000 | ' | 12,800,000 | ' |
Cash flow hedges [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Fair value of outstanding derivative instruments, unrealized gain net of taxes deferred in other comprehensive income | 17,000,000 | ' | 17,000,000 | ' |
Foreign Exchange Contract [Member] | U.S. Dollars [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative notional amount, Total | 1,462,700,000 | ' | 1,462,700,000 | ' |
Foreign Exchange Contract [Member] | Swiss Francs [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative notional amount, Total | 306,700,000 | ' | 306,700,000 | ' |
Senior Notes due 2019 [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative notional amount, Total | 250,000,000 | ' | 250,000,000 | ' |
Interest rate of Senior Notes | 4.63% | ' | 4.63% | ' |
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. | ' |
Description of variable interest rate basis | ' | ' | 'Three-month LIBOR | ' |
Senior Notes due 2019 [Member] | LIBOR [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Interest rate swap basis spread on variable rate | 1.33% | ' | 1.33% | ' |
Senior Notes due 2021 [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative notional amount, Total | $300,000,000 | ' | $300,000,000 | ' |
Interest rate of Senior Notes | 3.38% | ' | 3.38% | ' |
Description of terms of Interest rate Derivatives terms | ' | ' | '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. | ' |
Description of variable interest rate basis | ' | ' | 'Three-month LIBOR | ' |
Senior Notes due 2021 [Member] | LIBOR [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Interest rate swap basis spread on variable rate | 0.99% | ' | 0.99% | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Derivative Instruments Designated as Fair Value Hedges (Detail) (Interest rate swaps [Member], Interest expense [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest rate swaps [Member] | Interest expense [Member] | ' | ' | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' | ' | ' |
Gain / (Loss) on Instrument | $6.80 | ($10.80) | $11.90 | ($14.10) |
Gain / (Loss) on Hedged Item | ($6.80) | $10.80 | ($11.90) | $14.10 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Gross Unrealized Losses from Derivative Instruments (Detail) (Cash flow hedges [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | ($11.60) | $22.90 | ($15.50) | $67.70 |
Amount of Gain / (Loss) Reclassified from OCI | 6.6 | 3.6 | 11.5 | -1.9 |
Foreign exchange forward contracts [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | -11.4 | 22.7 | -15.3 | 68 |
Foreign exchange forward contracts [Member] | Cost of products sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Reclassified from OCI | 6.7 | 3.7 | 11.7 | -1.7 |
Foreign exchange options [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Recognized in OCI | -0.2 | 0.2 | -0.2 | -0.3 |
Foreign exchange options [Member] | Cost of products sold [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain / (Loss) Reclassified from OCI | ($0.10) | ($0.10) | ($0.20) | ($0.20) |
Derivative_Instruments_and_Hed5
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 $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
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 | ($1.90) | ($0.30) | ($4.30) | $7.60 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on Gross Basis (Detail) (Designated as Hedging Instrument [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | $68 | $106.70 |
Derivative Liabilities | 33.6 | 49.3 |
Foreign exchange forward contracts [Member] | Other current assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 36.9 | 60.2 |
Foreign exchange forward contracts [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 9.9 | 30.2 |
Foreign exchange forward contracts [Member] | Other current liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 22.5 | 26.4 |
Foreign exchange forward contracts [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | 11.1 | 15.9 |
Interest rate swaps [Member] | Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets | 21.2 | 16.3 |
Interest rate swaps [Member] | Other long-term liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities | ' | $7 |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities - Schedule of Effects of Master Netting Agreements on Condensed Consolidated Balance Sheets (Detail) (Cash flow hedges [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other current assets [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | $36.90 | $60.20 |
Offset | 10.8 | 13.5 |
Net Amount in Balance Sheet | 26.1 | 46.7 |
Other assets [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | 9.9 | 30.2 |
Offset | 5.7 | 8.2 |
Net Amount in Balance Sheet | 4.2 | 22 |
Other current liabilities [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | 22.5 | 26.4 |
Offset | 10.8 | 13.5 |
Net Amount in Balance Sheet | 11.7 | 12.9 |
Other long-term liabilities [Member] | ' | ' |
Derivatives And Hedging Activities [Line Items] | ' | ' |
Gross Amount | 11.1 | 15.9 |
Offset | 5.7 | 8.2 |
Net Amount in Balance Sheet | $5.40 | $7.70 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2014 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate | 25.50% | 24.00% |
U.S. statutory income tax rate | ' | 35.00% |
Retirement_Benefit_Plans_Compo
Retirement Benefit Plans - Components of Net Pension Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Compensation And Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Service cost | $6 | $7 | $12.70 | $14.10 |
Interest cost | 5.9 | 4.7 | 12.3 | 9.4 |
Expected return on plan assets | -9.9 | -8.9 | -20.3 | -17.8 |
Amortization of prior service cost | -0.9 | -0.9 | -1.9 | -1.9 |
Amortization of unrecognized actuarial loss | 2.8 | 4.6 | 5.7 | 9.3 |
Net periodic pension expense | $3.90 | $6.50 | $8.50 | $13.10 |
Retirement_Benefit_Plans_Addit
Retirement Benefit Plans - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
U.S. and Puerto Rico [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
Contribution towards defined benefit plans | $2 |
Additional contribution towards defined benefit plans | 0 |
Foreign-based defined benefit plans [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
Contribution towards defined benefit plans | 7.2 |
Additional contribution towards defined benefit plans | $7.30 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Weighted Average Shares for Basic and Diluted Share Computations (Detail) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average shares outstanding for basic net earnings per share | 168.4 | 168.8 | 168.7 | 168.8 |
Effect of dilutive stock options and other equity awards | 2.6 | 1.9 | 2.7 | 1.9 |
Weighted average shares outstanding for diluted net earnings per share | 171 | 170.7 | 171.4 | 170.7 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Options to purchase shares of common stock not included in the computation of diluted earnings per share | 4.9 | 5.6 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of geographic segments | 3 |
Segment_Information_Summary_of
Segment Information - Summary of Net Sales and Segment Operating Profit (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Sales Information [Line Items] | ' | ' | ' | ' |
Net Sales | $1,182.90 | $1,169.50 | $2,344.40 | $2,308.40 |
Share-based compensation | ' | ' | -24.2 | -26.2 |
Operating profit | 259.3 | 210.4 | 557.7 | 508.6 |
Certain claims | -21.8 | -47 | -21.8 | -47 |
Special items | -64.7 | -75.6 | -110.6 | -109.1 |
Segment Reconciling Items [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Share-based compensation | -13 | -12.2 | -24.2 | -26.2 |
Inventory step-up | -1.7 | -1.6 | -4.2 | -2.4 |
Certain claims | -21.8 | -47 | -21.8 | -47 |
Special items | -64.7 | -75.6 | -110.6 | -109.1 |
Global operations and corporate functions | -151.1 | -162.9 | -299.2 | -305.7 |
Americas Segment [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Net Sales | 639.7 | 660.1 | 1,278.40 | 1,294.80 |
Americas Segment [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Operating profit | 315.2 | 324.9 | 625.1 | 645.5 |
Europe Segment [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Net Sales | 334.7 | 307.5 | 661.6 | 615 |
Europe Segment [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Operating profit | 102.5 | 92.4 | 204.2 | 180.7 |
Asia Pacific Segment [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Net Sales | 208.5 | 201.9 | 404.4 | 398.6 |
Asia Pacific Segment [Member] | Operating Segments [Member] | ' | ' | ' | ' |
Sales Information [Line Items] | ' | ' | ' | ' |
Operating profit | $93.90 | $92.40 | $188.40 | $172.80 |
Segment_Information_Summary_of1
Segment Information - Summary of Net Sales by Product Category (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | $1,182.90 | $1,169.50 | $2,344.40 | $2,308.40 |
Knees [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 497.9 | 481 | 985.8 | 952 |
Hips [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 341 | 338.4 | 672.7 | 669.2 |
Extremities [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 51.5 | 48.6 | 103.6 | 96.4 |
Reconstructive [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 890.4 | 868 | 1,762.10 | 1,717.60 |
Dental [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 61.1 | 61.4 | 122.1 | 121.1 |
Trauma [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 78.8 | 74.1 | 158.5 | 156.1 |
Spine [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 52.2 | 54.2 | 100.5 | 101.9 |
Surgical and other [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net Sales | $100.40 | $111.80 | $201.20 | $211.70 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 78 Months Ended | ||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 01, 2013 | Jun. 10, 2011 |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Certain claims selling, general and administrative, net | $21.80 | $47 | $21.80 | $47 | $472 | ' | ' |
Self-insured retention amount | ' | ' | 20.00% | ' | ' | ' | ' |
Receivables in other assets | 218 | ' | 218 | ' | 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 | ' |
Stryker Corporation [Member] | ' | ' | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of patents infringed | 3 | ' | 3 | ' | 3 | ' | ' |
Monetary damages for lost profits | ' | ' | 70 | ' | ' | ' | ' |
Estimated charges | 210 | ' | 210 | ' | 210 | ' | ' |
Durom Cup Related Claims [Member] | ' | ' | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Estimated liability outstanding | 385.4 | ' | 385.4 | ' | 385.4 | ' | ' |
Estimated liability classified as short-term | 50 | ' | 50 | ' | 50 | ' | ' |
Estimated liability classified as long-term | $335.40 | ' | $335.40 | ' | $335.40 | ' | ' |
Period for payment of majority of claims | ' | ' | '5 years | ' | ' | ' | ' |