Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 29, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZMH | |
Entity Registrant Name | ZIMMER HOLDINGS INC | |
Entity Central Index Key | 1136869 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 170,402,138 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net Sales | $1,134.40 | $1,161.50 |
Cost of products sold | 278.7 | 303.7 |
Gross Profit | 855.7 | 857.8 |
Research and development | 48.4 | 47.4 |
Selling, general and administrative | 425 | 444.5 |
Intangible asset amortization | 20.4 | 29.2 |
Special items (Note 2) | 87 | 36.6 |
Operating expenses | 580.8 | 557.7 |
Operating Profit | 274.9 | 300.1 |
Other expense | -22.6 | -1.7 |
Interest income | 2.6 | 2.5 |
Interest expense | -23.1 | -15 |
Earnings before income taxes | 231.8 | 285.9 |
Provision for income taxes | 55 | 64.8 |
Net earnings | 176.8 | 221.1 |
Less: Net loss attributable to noncontrolling interest | -0.3 | -0.4 |
Net Earnings of Zimmer Holdings, Inc. | $177.10 | $221.50 |
Earnings Per Common Share | ||
Basic | $1.04 | $1.31 |
Diluted | $1.02 | $1.29 |
Weighted Average Common Shares Outstanding | ||
Basic | 170 | 169.1 |
Diluted | 172.9 | 171.8 |
Cash Dividends Declared Per Common Share | $0.22 | $0.22 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $176.80 | $221.10 |
Other Comprehensive Income: | ||
Foreign currency cumulative translation adjustments | -152.7 | 15.9 |
Unrealized cash flow hedge gains/(losses), net of tax | 52.4 | -3.1 |
Reclassification adjustments on foreign currency hedges, net of tax | -21.6 | -2 |
Unrealized gains on securities, net of tax | 0.6 | 0.1 |
Reclassification adjustments on securities, net of tax | -0.4 | |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 3.9 | -1.9 |
Total Other Comprehensive Gain/(Loss) | -117.4 | 8.6 |
Comprehensive Income | 59.4 | 229.7 |
Comprehensive gain/(loss) attributable to the noncontrolling interest | 0.2 | -0.4 |
Comprehensive Income attributable to Zimmer Holdings, Inc. | $59.20 | $230.10 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $8,793.50 | $1,083.30 |
Short-term investments | 488.4 | 612.5 |
Accounts receivable, less allowance for doubtful accounts | 869.8 | 912.1 |
Inventories | 1,217 | 1,169 |
Prepaid expenses and other current assets | 246.8 | 193.7 |
Deferred income taxes | 301.7 | 318.4 |
Total Current Assets | 11,917.20 | 4,289 |
Property, plant and equipment, net | 1,300.70 | 1,288.80 |
Goodwill | 2,417 | 2,514.20 |
Intangible assets, net | 578.3 | 603.5 |
Other assets | 976.9 | 939.2 |
Total Assets | 17,190.10 | 9,634.70 |
Current Liabilities: | ||
Accounts payable | 174.9 | 167.1 |
Income taxes payable | 57.5 | 72.4 |
Other current liabilities | 676.3 | 798.5 |
Total Current Liabilities | 908.7 | 1,038 |
Other long-term liabilities | 637.2 | 648.6 |
Long-term debt | 9,061.20 | 1,425.50 |
Total Liabilities | 10,607.10 | 3,112.10 |
Commitments and Contingencies (Note 15) | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value, one billion shares authorized, 269.0 million shares issued in 2015 (268.4 million in 2014) | 2.7 | 2.7 |
Paid-in capital | 4,363.70 | 4,330.70 |
Retained earnings | 8,426.80 | 8,285.20 |
Accumulated other comprehensive income | -31.5 | 85.9 |
Treasury stock, 98.6 million shares in 2015 (98.7 million shares in 2014) | -6,180.70 | -6,183.70 |
Total Zimmer Holdings, Inc. stockholders' equity | 6,581 | 6,520.80 |
Noncontrolling interest | 2 | 1.8 |
Total Stockholders' Equity | 6,583 | 6,522.60 |
Total Liabilities and Stockholders' Equity | $17,190.10 | $9,634.70 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 269,000,000 | 268,400,000 |
Treasury stock, shares | 98,600,000 | 98,700,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows provided by (used in) operating activities: | ||
Net earnings | $176.80 | $221.10 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Depreciation and amortization | 89 | 101 |
Share-based compensation | 12.9 | 11.2 |
Income tax benefit from stock option exercises | 16.4 | 20.2 |
Excess income tax benefit from stock option exercises | -7.8 | -5.4 |
Inventory step-up | 0.4 | 2.5 |
Changes in operating assets and liabilities, net of effect of acquisitions: | ||
Income taxes | -13.3 | -75.6 |
Receivables | 6.6 | 5.3 |
Inventories | -62.2 | -56.6 |
Accounts payable and accrued expenses | -149.5 | -56 |
Other assets and liabilities | 22.2 | 21.1 |
Net cash provided by operating activities | 91.5 | 188.8 |
Cash flows provided by (used in) investing activities: | ||
Additions to instruments | -62.4 | -49.4 |
Additions to other property, plant and equipment | -34.4 | -31.4 |
Purchases of investments | -152.6 | -600.7 |
Sales of investments | 320.3 | 583.1 |
Investments in other assets | -3 | |
Net cash provided by (used in) investing activities | 67.9 | -98.4 |
Cash flows provided by (used in) financing activities: | ||
Proceeds from senior notes | 7,628.20 | |
Net proceeds under revolving credit facilities | 0.8 | 0.2 |
Dividends paid to stockholders | -37.3 | -34 |
Proceeds from employee stock compensation plans | 27.5 | 138.2 |
Excess income tax benefit from stock option exercises | 7.8 | 5.4 |
Debt issuance costs | -58.4 | |
Repurchase of common stock | -400.5 | |
Net cash provided by (used in) financing activities | 7,568.60 | -290.7 |
Effect of exchange rates on cash and cash equivalents | -17.8 | 2.4 |
Increase (decrease) in cash and cash equivalents | 7,710.20 | -197.9 |
Cash and cash equivalents, beginning of year | 1,083.30 | 1,080.60 |
Cash and cash equivalents, end of period | $8,793.50 | $882.70 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
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 2014 Annual Report on Form 10-K filed by Zimmer Holdings, Inc. Beginning with the three month period ended March 31, 2015, we have changed our quarter-end closing convention for the majority of our international subsidiaries, which, in the case of the three month period ended March 31, 2015, resulted in a change of that quarter-end close from March 25 to March 31. As a consequence, our results of operations for the three month period ended March 31, 2015 include up to four more billing days for such international subsidiaries than were included in our results of operations for the three month period ended March 31, 2014. We have not restated the presentation of the 2014 financial statements to conform to this change of closing convention because the impact of the change is not material to the consolidated results of operations or to the comparisons between the 2015 and 2014 periods. | |
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, 2014 condensed consolidated 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 2014 condensed consolidated financial statements have been reclassified to conform to the 2015 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 May 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 committed $3.0 billion senior unsecured term loan and the proceeds from $7.65 billion in senior unsecured notes we issued in March 2015. See Note 7 and Item 2 in this Form 10-Q for further information regarding these debt instruments. |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
Impairment/loss on disposal of assets | $ | 2.3 | $ | 1.3 | |||||
Consulting and professional fees | 63.9 | 15 | |||||||
Employee severance and retention | 0.5 | 0.9 | |||||||
Dedicated project personnel | 13.4 | 10.9 | |||||||
Certain R&D agreements | — | 4.5 | |||||||
Relocated facilities | 0.5 | 0.7 | |||||||
Contingent consideration adjustments | 2.3 | 0.5 | |||||||
Accelerated software amortization | 1.5 | 1.5 | |||||||
Other | 2.6 | 1.3 | |||||||
Special items | $ | 87 | $ | 36.6 | |||||
Recent Accounting Pronouncements—In May 2014, the Financial Accounting Standards Board (“FASB”) 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. In April 2015, the FASB proposed a deferral of one year for this ASU which, if adopted, would delay the effective date for us to January 1, 2018. 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. | |||||||||
In April 2015, the FASB issued ASU 2015-03—Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. This ASU does not affect the measurement and recognition of debt issuance costs in our statement of earnings. As of March 31, 2015, this change would result in a reclassification of $14.4 million of other current assets and $69.3 million of other assets to debt. The ASU will be effective for us beginning January 1, 2016. | |||||||||
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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 3. Inventories | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Finished goods | $ | 927.6 | $ | 899.9 | |||||
Work in progress | 101.4 | 87.8 | |||||||
Raw materials | 188 | 181.3 | |||||||
Inventories | $ | 1,217.00 | $ | 1,169.00 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 4. Property, Plant and Equipment | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Land | $ | 20.1 | $ | 20.4 | |||||
Buildings and equipment | 1,293.60 | 1,283.40 | |||||||
Capitalized software costs | 293.8 | 294.7 | |||||||
Instruments | 1,735.10 | 1,696.30 | |||||||
Construction in progress | 127.6 | 115.8 | |||||||
3,470.20 | 3,410.60 | ||||||||
Accumulated depreciation | (2,169.5 | ) | (2,121.8 | ) | |||||
Property, plant and equipment, net | $ | 1,300.70 | $ | 1,288.80 | |||||
Investments
Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 | Fair | |||||||||||||||
Cost | Unrealized | value | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Corporate debt securities | $ | 494.2 | $ | 0.4 | $ | (0.2 | ) | $ | 494.4 | ||||||||
U.S. government and agency debt securities | 133.7 | — | — | 133.7 | |||||||||||||
Commercial paper | 34.4 | — | — | 34.4 | |||||||||||||
Certificates of deposit | 37.9 | — | — | 37.9 | |||||||||||||
Total short and long-term investments | $ | 700.2 | $ | 0.4 | $ | (0.2 | ) | $ | 700.4 | ||||||||
As of December 31, 2014 | |||||||||||||||||
Corporate debt securities | $ | 516.9 | $ | 0.1 | $ | (0.5 | ) | $ | 516.5 | ||||||||
U.S. government and agency debt securities | 194.3 | — | — | 194.3 | |||||||||||||
Commercial paper | 57.8 | — | — | 57.8 | |||||||||||||
Certificates of deposit | 100.3 | — | — | 100.3 | |||||||||||||
Total short and long-term investments | $ | 869.3 | $ | 0.1 | $ | (0.5 | ) | $ | 868.9 | ||||||||
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 March 31, 2015 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): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Amortized | Fair | ||||||||||||||||
Cost | Value | ||||||||||||||||
Due in one year or less | $ | 488.3 | $ | 488.4 | |||||||||||||
Due after one year through two years | 211.9 | 212 | |||||||||||||||
Total | $ | 700.2 | $ | 700.4 | |||||||||||||
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Other Current Liabilities | 6. Other Current Liabilities | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Other current liabilities: | |||||||||
Salaries, wages and benefits | $ | 100 | $ | 167.7 | |||||
Forward starting interest rate swaps | — | 59.3 | |||||||
Accrued liabilities | 576.3 | 571.5 | |||||||
Total other current liabilities | $ | 676.3 | $ | 798.5 | |||||
Debt
Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | 7. Debt | ||||||||
Our debt consisted of the following (in millions): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Long-term debt | |||||||||
1.450% Senior Notes due 2017 | $ | 500 | $ | — | |||||
2.000% Senior Notes due 2018 | 1,150.00 | — | |||||||
4.625% Senior Notes due 2019 | 500 | 500 | |||||||
2.700% Senior Notes due 2020 | 1,500.00 | — | |||||||
3.375% Senior Notes due 2021 | 300 | 300 | |||||||
3.150% Senior Notes due 2022 | 750 | — | |||||||
3.550% Senior Notes due 2025 | 2,000.00 | — | |||||||
4.250% Senior Notes due 2035 | 500 | — | |||||||
5.750% Senior Notes due 2039 | 500 | 500 | |||||||
4.450% Senior Notes due 2045 | 1,250.00 | — | |||||||
Japan term loan | 98.2 | 98 | |||||||
Other long-term debt | 4.9 | 4.9 | |||||||
Debt discount | (23.1 | ) | (1.4 | ) | |||||
Adjustment related to interest rate swaps | 31.2 | 24 | |||||||
Total long-term debt | $ | 9,061.20 | $ | 1,425.50 | |||||
At March 31, 2015, our total long-term debt consisted of $8.95 billion aggregate principal amount of our senior notes, an 11.7 billion Japanese Yen term loan agreement (“Japan Term Loan”) that will mature on May 31, 2018, and other long-term debt totaling $4.9 million. | |||||||||
At March 31, 2015, we also had a $4.35 billion senior credit facility (the “Senior Credit Facility”) that contains: (i) a 5-year unsecured term loan facility in the principal amount of $3.0 billion (the “Biomet Term Loan Facility”), and (ii) a 5-year unsecured multicurrency revolving facility in the principal amount of $1.35 billion (the “Multicurrency Revolving Facility”). The Senior Credit Facility contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement, including, among other things, limitations on consolidations, mergers and sales of assets. Financial covenants include a consolidated indebtedness to consolidated EBITDA ratio of no greater than 3.0 to 1.0 in periods prior to our drawing on the Biomet Term Loan Facility, no greater than 5.0 to 1.0 for the first twelve months after we draw on the Biomet Term Loan Facility and no greater than 4.5 to 1.0 thereafter. If our credit rating falls below investment grade, additional restrictions would result, including restrictions on investments and payment of dividends. We were in compliance with all covenants under the Senior Credit Facility as of March 31, 2015. | |||||||||
We plan to draw on the Biomet Term Loan Facility at the time the Biomet merger is consummated and use the proceeds to pay a portion of the cash consideration payable in the Biomet merger, pay merger-related fees and expenses and pay a portion of Biomet’s funded debt. Our ability to draw on the Biomet Term Loan Facility is conditioned upon, among other things, the consummation of the Biomet merger. | |||||||||
Borrowings under the Multicurrency Revolving Facility may be used for general corporate purposes. There were no borrowings outstanding under the Multicurrency Revolving Facility as of March 31, 2015. | |||||||||
Of the total $8.95 billion aggregate principal amount of senior notes outstanding at March 31, 2015, we issued $7.65 billion of this amount in March 2015 (the “Merger Notes”), the proceeds of which will be used to finance a portion of the cash consideration payable in the Biomet merger, pay merger related fees and expenses and pay a portion of Biomet’s funded debt. The Merger Notes consist of the following seven tranches: the 1.450% Senior Notes due 2017, the 2.000% Senior Notes due 2018, the 2.700% Senior Notes due 2020, the 3.150% Senior Notes due 2022, the 3.550% Senior Notes due 2025, the 4.250% Senior Notes due 2035 and the 4.450% Senior Notes due 2045. If the Biomet merger has not been consummated by July 23, 2015 (plus any extension of such date), or if, prior to such date, the merger agreement is terminated, we will be obligated to redeem all of the Merger Notes at a price equal to 101 percent of the principal amount of the Merger Notes plus accrued and unpaid interest to the redemption date. | |||||||||
We may, at our option, redeem our senior notes, in whole or in part, at any time upon payment of the principal, any applicable make-whole premium, and accrued and unpaid interest to the date of redemption. In addition, the Merger Notes and the 3.375% Senior Notes due 2021 may be redeemed at our option without any make-whole premium at specified dates ranging from one month to six months in advance of the scheduled maturity date. | |||||||||
The estimated fair value of our senior notes as of March 31, 2015, based on quoted prices for the specific securities from transactions in over-the-counter markets (Level 2), was $9,246.1 million. The estimated fair value of the Japan Term Loan as of March 31, 2015, based upon publicly available market yield curves and the terms of the debt (Level 2), was $98.0 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Income | 8. 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 12 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, 2014 | $ | 159.6 | $ | 70.1 | $ | (0.4 | ) | $ | (143.4 | ) | |||||||
OCI before reclassifications | (152.7 | ) | 52.4 | 0.6 | — | ||||||||||||
Reclassifications | — | (21.6 | ) | — | 3.9 | ||||||||||||
Balance March 31, 2015 | $ | 6.9 | $ | 100.9 | $ | 0.2 | $ | (139.5 | ) | ||||||||
The following table shows the reclassification adjustments from OCI (in millions): | |||||||||||||||||
Component of OCI | Amount of Gain / (Loss) | Location on | |||||||||||||||
Reclassified from OCI | |||||||||||||||||
Three Months Ended | Statement of Earnings | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cash flow hedges | |||||||||||||||||
Foreign exchange forward contracts | $ | 28.1 | $ | 5 | Cost of products sold | ||||||||||||
Foreign exchange options | — | (0.1 | ) | Cost of products sold | |||||||||||||
Forward starting interest rate swaps | (0.1 | ) | — | Interest expense | |||||||||||||
28 | 4.9 | Total before tax | |||||||||||||||
6.4 | 2.9 | Provision for income taxes | |||||||||||||||
$ | 21.6 | $ | 2 | 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 | $ | 1.1 | $ | 1 | * | ||||||||||||
Unrecognized actuarial (loss) | (4.3 | ) | (2.9 | ) | * | ||||||||||||
(3.2 | ) | (1.9 | ) | Total before tax | |||||||||||||
0.7 | — | Provision for income taxes | |||||||||||||||
$ | (3.9 | ) | $ | (1.9 | ) | Net of tax | |||||||||||
Total reclassifications | $ | 17.7 | $ | 0.5 | Net of tax | ||||||||||||
* | These OCI components are included in the computation of net periodic pension expense (see Note 12). | ||||||||||||||||
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 | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Before Tax | Tax | Net of Tax | |||||||||||||||
Foreign currency cumulative translation adjustments | $ | (152.7 | ) | $ | — | $ | (152.7 | ) | |||||||||
Unrealized cash flow hedge gains/(losses) | 51.7 | (0.7 | ) | 52.4 | |||||||||||||
Reclassification adjustments on foreign currency hedges | (28.0 | ) | (6.4 | ) | (21.6 | ) | |||||||||||
Unrealized gains/(losses) on securities | 0.6 | — | 0.6 | ||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 3.2 | (0.7 | ) | 3.9 | |||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | (125.2 | ) | $ | (7.8 | ) | $ | (117.4 | ) | ||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Before Tax | Tax | Net of Tax | |||||||||||||||
Foreign currency cumulative translation adjustments | $ | 15.9 | $ | — | $ | 15.9 | |||||||||||
Unrealized cash flow hedge gains/(losses) | (3.9 | ) | (0.8 | ) | (3.1 | ) | |||||||||||
Reclassification adjustments on foreign currency hedges | (4.9 | ) | (2.9 | ) | (2.0 | ) | |||||||||||
Unrealized gains/(losses) on securities | 0.1 | — | 0.1 | ||||||||||||||
Reclassification adjustments on securities | (0.4 | ) | — | (0.4 | ) | ||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | (1.9 | ) | — | (1.9 | ) | ||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | 4.9 | $ | (3.7 | ) | $ | 8.6 | ||||||||||
Fair_Value_Measurement_of_Asse
Fair Value Measurement of Assets and Liabilities | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurement of Assets and Liabilities | 9. 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 March 31, 2015 | |||||||||||||||||
Recorded | Fair Value Measurements at Reporting Date Using: | ||||||||||||||||
Description | Balance | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Corporate debt securities | $ | 494.4 | $ | — | $ | 494.4 | $ | — | |||||||||
U.S. government and agency debt securities | 133.7 | — | 133.7 | — | |||||||||||||
Commercial paper | 34.4 | — | 34.4 | — | |||||||||||||
Certificates of deposit | 37.9 | — | 37.9 | — | |||||||||||||
Total available-for-sale securities | 700.4 | — | 700.4 | — | |||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | 179.7 | — | 179.7 | — | |||||||||||||
Interest rate swaps | 31.2 | — | 31.2 | — | |||||||||||||
$ | 911.3 | $ | — | $ | 911.3 | $ | — | ||||||||||
Liabilities | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | $ | 0.2 | $ | — | $ | 0.2 | $ | — | |||||||||
As of December 31, 2014 | |||||||||||||||||
Recorded | Fair Value Measurements at Reporting Date Using: | ||||||||||||||||
Description | Balance | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Corporate debt securities | $ | 516.5 | $ | — | $ | 516.5 | $ | — | |||||||||
U.S. government and agency debt securities | 194.3 | — | 194.3 | — | |||||||||||||
Commercial paper | 57.8 | — | 57.8 | — | |||||||||||||
Certificates of deposit | 100.3 | — | 100.3 | — | |||||||||||||
Total available-for-sale securities | 868.9 | — | 868.9 | — | |||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | 125.5 | — | 125.5 | — | |||||||||||||
Interest rate swaps | 24 | — | 24 | — | |||||||||||||
$ | 1,018.40 | $ | — | $ | 1,018.40 | $ | — | ||||||||||
Liabilities | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | $ | 1.7 | $ | — | $ | 1.7 | $ | — | |||||||||
Forward starting interest rate swaps | 59.3 | — | 59.3 | — | |||||||||||||
$ | 61 | $ | — | $ | 61 | $ | — | ||||||||||
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 | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | 10. 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 4.625% Senior Notes due 2019 and 3.375% Senior Notes due 2021. The total notional amounts are $250 million and $300 million for the 4.625% Senior Notes due 2019 and 3.375% Senior Notes due 2021, respectively. On the interest rate swap agreements for the 4.625% 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 3.375% 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. | |||||||||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | |||||||||||||||||||||||||||
In 2014, we entered into forward starting interest rate swaps that were designated as cash flow hedges of the thirty year tranche of senior notes we expected to issue in 2015. The forward starting interest rate swaps mitigated the risk of changes in interest rates prior to the completion of the Merger Notes offering. The total notional amounts of the forward starting interest rate swaps were $1 billion and settled in March 2015 at a loss of $97.6 million. The loss will be recognized using the effective interest rate method over the maturity period of the 4.450% Senior Notes due 2045. | |||||||||||||||||||||||||||
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. On our condensed consolidated statement of cash flows, the settlements of these cash flow hedges are recognized in operating cash flows. | |||||||||||||||||||||||||||
For foreign currency exchange forward contracts and options outstanding at March 31, 2015, 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 April 2015 through September 2016. As of March 31, 2015, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase U.S. Dollars were $1,228.5 million. As of March 31, 2015, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase Swiss Francs were $306.4 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. Starting in 2015, the net amount of these offsetting gains/losses is recorded in other expense. In 2014 and prior periods, the net amount was recorded in cost of products sold. The 2014 presentation has been reclassified to conform to the 2015 presentation. 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 on Instrument | Loss on Hedged Item | ||||||||||||||||||||||||
Statement of Earnings | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | 7.2 | $ | 5.1 | $ | (7.2 | ) | $ | (5.1 | ) | ||||||||||||||||
We had no ineffective fair value hedging instruments during the three month periods ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||
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 | Statement of Earnings | Reclassified from OCI | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 90 | $ | (3.9 | ) | Cost of products sold | $ | 28.1 | $ | 5 | |||||||||||||||||
Foreign exchange options | — | — | Cost of products sold | — | (0.1 | ) | |||||||||||||||||||||
Forward starting interest rate swaps | (38.3 | ) | — | Interest expense | (0.1 | ) | — | ||||||||||||||||||||
$ | 51.7 | $ | (3.9 | ) | $ | 28 | $ | 4.9 | |||||||||||||||||||
The net amounts recognized in earnings during the three month periods ended March 31, 2015 and 2014 due to ineffectiveness and amounts excluded from the assessment of hedge effectiveness were not significant. | |||||||||||||||||||||||||||
The fair value of outstanding derivative instruments designated as cash flow hedges and recorded on the balance sheet at March 31, 2015, together with settled derivatives where the hedged item has not yet affected earnings, was a net unrealized gain of $111.7 million, or $100.9 million after taxes, which is deferred in OCI. Of the net unrealized gain, $130.8 million, or $101.5 million after taxes, is expected to be reclassified to earnings over the next twelve months. The disproportionate amount of net unrealized gain deferred in OCI and the expected reclassification over the next twelve months is due to the significant loss from the forward starting interest rate swaps deferred in OCI which will be reclassified to earnings over the maturity period of the 4.450% Senior Notes due 2045. | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Statement of Earnings | March 31, | ||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Other expense | $ | 15.2 | $ | (2.4 | ) | |||||||||||||||||||||
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 March 31, 2015 and December 31, 2014, 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): | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Balance | Fair | Balance | Fair | ||||||||||||||||||||||||
Sheet | Value | Sheet | Value | ||||||||||||||||||||||||
Location | Location | ||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 134.7 | Other current assets | $ | 98.7 | |||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 66 | Other assets | 53.1 | |||||||||||||||||||||||
Interest rate swaps | Other assets | 31.2 | Other assets | 24 | |||||||||||||||||||||||
Total asset derivatives | $ | 231.9 | $ | 175.8 | |||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 12.6 | Other current liabilities | $ | 16.4 | |||||||||||||||||||||
Forward starting interest rate swaps | Other current liabilities | — | Other current liabilities | 59.3 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other long-term liabilities | 8.6 | Other long-term liabilities | — | |||||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | — | Other long-term liabilities | 11.6 | |||||||||||||||||||||||
Total liability derivatives | $ | 21.2 | $ | 87.3 | |||||||||||||||||||||||
The table below presents the effects of our master netting agreements on our condensed consolidated balance sheets (in millions): | |||||||||||||||||||||||||||
Location | As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||
Description | Gross | Offset | Net Amount | Gross | Offset | Net Amount | |||||||||||||||||||||
Amount | in Balance | Amount | in Balance | ||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||
Cash flow hedges | Other current assets | $ | 134.7 | $ | 12.4 | $ | 122.3 | $ | 98.7 | $ | 15.9 | $ | 82.8 | ||||||||||||||
Cash flow hedges | Other assets | 66 | 8.6 | 57.4 | 53.1 | 10.4 | 42.7 | ||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||
Cash flow hedges | Other current liabilities | 12.6 | 12.4 | 0.2 | 16.4 | 15.9 | 0.5 | ||||||||||||||||||||
Cash flow hedges | Other long-term liabilities | 8.6 | 8.6 | — | 11.6 | 10.4 | 1.2 |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | |
11. 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 are contesting this deficiency notice and we filed a petition with the U.S. Tax Court during the third quarter of 2014. 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 month period ended March 31, 2015, our effective tax rate was 23.7 percent. Our effective tax rate was lower than the U.S. statutory income tax rate of 35.0 percent, primarily due to income earned in foreign locations with lower tax rates. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Retirement Benefit Plans | 12. 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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Service cost | $ | 7.6 | $ | 6.7 | |||||
Interest cost | 5.5 | 6.4 | |||||||
Expected return on plan assets | (10.9 | ) | (10.4 | ) | |||||
Amortization of prior service cost | (1.1 | ) | (1.0 | ) | |||||
Amortization of unrecognized actuarial loss | 4.3 | 2.9 | |||||||
Net periodic pension expense | $ | 5.4 | $ | 4.6 | |||||
We expect that we will have minimal legally required funding obligations in 2015 for our U.S. and Puerto Rico defined benefit retirement plans, and therefore we have not made, nor do we voluntarily expect to make, any material contributions to these plans during 2015. We contributed $3.6 million to our foreign-based defined benefit plans in the three month period ended March 31, 2015 and we expect to contribute $11.0 million to these foreign-based plans during the remainder of 2015. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share | 13. Earnings Per Share | ||||||||
The following is a reconciliation of weighted average shares for the basic and diluted shares computations (in millions): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted average shares outstanding for basic net earnings per share | 170 | 169.1 | |||||||
Effect of dilutive stock options and other equity awards | 2.9 | 2.7 | |||||||
Weighted average shares outstanding for diluted net earnings per share | 172.9 | 171.8 | |||||||
During the three month periods ended March 31, 2015 and 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. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Information | 14. 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 inventory step-up and certain other inventory and manufacturing related charges, “Certain claims,” goodwill impairment, intangible asset amortization, “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 share-based payment expense. 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 | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Americas | $ | 645.2 | $ | 638.7 | $ | 320.3 | $ | 312.1 | |||||||||
Europe | 298.9 | 326.9 | 110.4 | 109.9 | |||||||||||||
Asia Pacific | 190.3 | 195.9 | 96 | 91.6 | |||||||||||||
Total | $ | 1,134.40 | $ | 1,161.50 | |||||||||||||
Inventory step-up and certain other inventory and manufacturing related charges | (3.9 | ) | (11.7 | ) | |||||||||||||
Intangible asset amortization | (20.4 | ) | (29.2 | ) | |||||||||||||
Special items | (87.0 | ) | (36.6 | ) | |||||||||||||
Global operations and corporate functions | (140.5 | ) | (136.0 | ) | |||||||||||||
Operating profit | $ | 274.9 | $ | 300.1 | |||||||||||||
Starting in 2015, we have removed intangible asset amortization from our reportable segment operating profit. In prior years, intangible asset amortization resulting from business combination accounting was presented in global operations and corporate functions while intangible asset amortization resulting from other intangible assets was reported in the reportable segment operating profit. The 2014 presentation has been reclassified to conform to the 2015 presentation. | |||||||||||||||||
Due to the change in our interim quarter-end closing convention for the majority of our international subsidiaries, net sales for our Europe and Asia Pacific operating segments in the three month period ended March 31, 2015 include sales through March 31, 2015, whereas in the three month period ended March 31, 2014, net sales for those operating segments included sales through March 25, 2014. We have not restated the presentation of the 2014 financial statements to conform to this change of closing convention because the impact of the change is not material to our consolidated results of operations or to the comparisons between the 2015 and 2014 periods. | |||||||||||||||||
Net sales by product category are as follows (in millions): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Reconstructive | |||||||||||||||||
Knees | $ | 487.3 | $ | 487.9 | |||||||||||||
Hips | 312.2 | 331.7 | |||||||||||||||
Extremities | 52.2 | 52.1 | |||||||||||||||
851.7 | 871.7 | ||||||||||||||||
Dental | 55.8 | 61 | |||||||||||||||
Trauma | 79.4 | 79.7 | |||||||||||||||
Spine | 49.5 | 48.3 | |||||||||||||||
Surgical and other | 98 | 100.8 | |||||||||||||||
Total | $ | 1,134.40 | $ | 1,161.50 | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. 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 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 March 31, 2015, case specific discovery in these lawsuits was on-going. The initial trial in Santas took place in November 2014 and initial trials in McAllister and the MDL are expected to commence in the second quarter of 2015. Other lawsuits are pending in various jurisdictions, and additional claims may be asserted in the future. | |
Since 2008, we have recognized expense of $471.7 million for Durom Cup-related claims. Our estimate of our total liability for these claims as of March 31, 2015 remains consistent with our estimate as of December 31, 2014, and, accordingly, we did not record any additional expense during the three month period ended March 31, 2015. With respect to the same prior year period, we also did not record any additional expense for Durom Cup-related claims. | |
We maintain insurance for product liability claims, subject to self-insurance retention requirements. As of March 31, 2015, 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, it is probable that we will recover some amount from our insurance carriers. We have received an initial amount of the insurance proceeds we estimate to recover. We have a $170.3 million receivable in “Other assets” remaining on our condensed consolidated balance sheet as of March 31, 2015 for estimated insurance recoveries. As is customary in this process, our insurance carriers have reserved all rights under their respective policies and could still ultimately deny coverage for some or all of our insurance claims. | |
Our estimate as of March 31, 2015 of the remaining liability for all Durom Cup-related claims is $348.3 million, of which $50.0 million is classified as short-term in “Other current liabilities” and $298.3 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 few years. | |
Our understanding of clinical outcomes with the Durom Cup and other large diameter hip cups continues to evolve. We rely on significant estimates in determining the provisions for Durom Cup-related claims, including 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 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. Oral argument before the Supreme Court of Pennsylvania took place on October 8, 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 March 31, 2015, discovery in these lawsuits was on-going. Bellwether trials are expected to commence in the third 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. | |
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. Oral argument before the Court of Appeals for the Federal Circuit took place on September 8, 2014. On December 19, 2014, the Federal Circuit issued a decision affirming the $70.0 million lost profits award but reversed the willfulness finding, vacating the treble damages award and vacating and remanding the attorneys’ fees award. We accrued an estimated loss of $70.0 million related to this matter in the three month period ended December 31, 2014. On January 20, 2015, Stryker filed a motion with the Federal Circuit for a rehearing en banc. On March 23, 2015, the Federal Circuit denied Stryker’s petition. | |
Regulatory Matters | |
In September 2012, we received a warning letter from the U.S. Food and Drug Administration (“FDA”) citing concerns relating to certain manufacturing and validation processes pertaining to Trilogy® Acetabular System products manufactured at our Ponce, Puerto Rico manufacturing facility. We have provided detailed responses to the FDA as to our corrective actions and will continue to work expeditiously to address the issues identified by the FDA during inspections in Ponce. As of March 31, 2015, 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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
Impairment/loss on disposal of assets | $ | 2.3 | $ | 1.3 | |||||
Consulting and professional fees | 63.9 | 15 | |||||||
Employee severance and retention | 0.5 | 0.9 | |||||||
Dedicated project personnel | 13.4 | 10.9 | |||||||
Certain R&D agreements | — | 4.5 | |||||||
Relocated facilities | 0.5 | 0.7 | |||||||
Contingent consideration adjustments | 2.3 | 0.5 | |||||||
Accelerated software amortization | 1.5 | 1.5 | |||||||
Other | 2.6 | 1.3 | |||||||
Special items | $ | 87 | $ | 36.6 | |||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements—In May 2014, the Financial Accounting Standards Board (“FASB”) 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. In April 2015, the FASB proposed a deferral of one year for this ASU which, if adopted, would delay the effective date for us to January 1, 2018. 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. | ||||||||
In April 2015, the FASB issued ASU 2015-03—Simplifying the Presentation of Debt Issuance Costs. This ASU requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. This ASU does not affect the measurement and recognition of debt issuance costs in our statement of earnings. As of March 31, 2015, this change would result in a reclassification of $14.4 million of other current assets and $69.3 million of other assets to debt. The ASU will be effective for us beginning January 1, 2016. | |||||||||
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) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Summary of Expenses in Special Items | “Special items” included (in millions): | ||||||||
Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Impairment/loss on disposal of assets | $ | 2.3 | $ | 1.3 | |||||
Consulting and professional fees | 63.9 | 15 | |||||||
Employee severance and retention | 0.5 | 0.9 | |||||||
Dedicated project personnel | 13.4 | 10.9 | |||||||
Certain R&D agreements | — | 4.5 | |||||||
Relocated facilities | 0.5 | 0.7 | |||||||
Contingent consideration adjustments | 2.3 | 0.5 | |||||||
Accelerated software amortization | 1.5 | 1.5 | |||||||
Other | 2.6 | 1.3 | |||||||
Special items | $ | 87 | $ | 36.6 | |||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Summary of Inventories | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Finished goods | $ | 927.6 | $ | 899.9 | |||||
Work in progress | 101.4 | 87.8 | |||||||
Raw materials | 188 | 181.3 | |||||||
Inventories | $ | 1,217.00 | $ | 1,169.00 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property, Plant and Equipment | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Land | $ | 20.1 | $ | 20.4 | |||||
Buildings and equipment | 1,293.60 | 1,283.40 | |||||||
Capitalized software costs | 293.8 | 294.7 | |||||||
Instruments | 1,735.10 | 1,696.30 | |||||||
Construction in progress | 127.6 | 115.8 | |||||||
3,470.20 | 3,410.60 | ||||||||
Accumulated depreciation | (2,169.5 | ) | (2,121.8 | ) | |||||
Property, plant and equipment, net | $ | 1,300.70 | $ | 1,288.80 | |||||
Investments_Tables
Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 | Fair | |||||||||||||||
Cost | Unrealized | value | |||||||||||||||
Gains | Losses | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Corporate debt securities | $ | 494.2 | $ | 0.4 | $ | (0.2 | ) | $ | 494.4 | ||||||||
U.S. government and agency debt securities | 133.7 | — | — | 133.7 | |||||||||||||
Commercial paper | 34.4 | — | — | 34.4 | |||||||||||||
Certificates of deposit | 37.9 | — | — | 37.9 | |||||||||||||
Total short and long-term investments | $ | 700.2 | $ | 0.4 | $ | (0.2 | ) | $ | 700.4 | ||||||||
As of December 31, 2014 | |||||||||||||||||
Corporate debt securities | $ | 516.9 | $ | 0.1 | $ | (0.5 | ) | $ | 516.5 | ||||||||
U.S. government and agency debt securities | 194.3 | — | — | 194.3 | |||||||||||||
Commercial paper | 57.8 | — | — | 57.8 | |||||||||||||
Certificates of deposit | 100.3 | — | — | 100.3 | |||||||||||||
Total short and long-term investments | $ | 869.3 | $ | 0.1 | $ | (0.5 | ) | $ | 868.9 | ||||||||
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): | ||||||||||||||||
March 31, 2015 | |||||||||||||||||
Amortized | Fair | ||||||||||||||||
Cost | Value | ||||||||||||||||
Due in one year or less | $ | 488.3 | $ | 488.4 | |||||||||||||
Due after one year through two years | 211.9 | 212 | |||||||||||||||
Total | $ | 700.2 | $ | 700.4 |
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Summary of Other Current Liabilities | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Other current liabilities: | |||||||||
Salaries, wages and benefits | $ | 100 | $ | 167.7 | |||||
Forward starting interest rate swaps | — | 59.3 | |||||||
Accrued liabilities | 576.3 | 571.5 | |||||||
Total other current liabilities | $ | 676.3 | $ | 798.5 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Debt Instruments | Our debt consisted of the following (in millions): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Long-term debt | |||||||||
1.450% Senior Notes due 2017 | $ | 500 | $ | — | |||||
2.000% Senior Notes due 2018 | 1,150.00 | — | |||||||
4.625% Senior Notes due 2019 | 500 | 500 | |||||||
2.700% Senior Notes due 2020 | 1,500.00 | — | |||||||
3.375% Senior Notes due 2021 | 300 | 300 | |||||||
3.150% Senior Notes due 2022 | 750 | — | |||||||
3.550% Senior Notes due 2025 | 2,000.00 | — | |||||||
4.250% Senior Notes due 2035 | 500 | — | |||||||
5.750% Senior Notes due 2039 | 500 | 500 | |||||||
4.450% Senior Notes due 2045 | 1,250.00 | — | |||||||
Japan term loan | 98.2 | 98 | |||||||
Other long-term debt | 4.9 | 4.9 | |||||||
Debt discount | (23.1 | ) | (1.4 | ) | |||||
Adjustment related to interest rate swaps | 31.2 | 24 | |||||||
Total long-term debt | $ | 9,061.20 | $ | 1,425.50 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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, 2014 | $ | 159.6 | $ | 70.1 | $ | (0.4 | ) | $ | (143.4 | ) | |||||||
OCI before reclassifications | (152.7 | ) | 52.4 | 0.6 | — | ||||||||||||
Reclassifications | — | (21.6 | ) | — | 3.9 | ||||||||||||
Balance March 31, 2015 | $ | 6.9 | $ | 100.9 | $ | 0.2 | $ | (139.5 | ) | ||||||||
Reclassification Adjustments from Accumulated Other Comprehensive Income | The following table shows the reclassification adjustments from OCI (in millions): | ||||||||||||||||
Component of OCI | Amount of Gain / (Loss) | Location on | |||||||||||||||
Reclassified from OCI | |||||||||||||||||
Three Months Ended | Statement of Earnings | ||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cash flow hedges | |||||||||||||||||
Foreign exchange forward contracts | $ | 28.1 | $ | 5 | Cost of products sold | ||||||||||||
Foreign exchange options | — | (0.1 | ) | Cost of products sold | |||||||||||||
Forward starting interest rate swaps | (0.1 | ) | — | Interest expense | |||||||||||||
28 | 4.9 | Total before tax | |||||||||||||||
6.4 | 2.9 | Provision for income taxes | |||||||||||||||
$ | 21.6 | $ | 2 | 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 | $ | 1.1 | $ | 1 | * | ||||||||||||
Unrecognized actuarial (loss) | (4.3 | ) | (2.9 | ) | * | ||||||||||||
(3.2 | ) | (1.9 | ) | Total before tax | |||||||||||||
0.7 | — | Provision for income taxes | |||||||||||||||
$ | (3.9 | ) | $ | (1.9 | ) | Net of tax | |||||||||||
Total reclassifications | $ | 17.7 | $ | 0.5 | Net of tax | ||||||||||||
* | These OCI components are included in the computation of net periodic pension expense (see Note 12). | ||||||||||||||||
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 | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Before Tax | Tax | Net of Tax | |||||||||||||||
Foreign currency cumulative translation adjustments | $ | (152.7 | ) | $ | — | $ | (152.7 | ) | |||||||||
Unrealized cash flow hedge gains/(losses) | 51.7 | (0.7 | ) | 52.4 | |||||||||||||
Reclassification adjustments on foreign currency hedges | (28.0 | ) | (6.4 | ) | (21.6 | ) | |||||||||||
Unrealized gains/(losses) on securities | 0.6 | — | 0.6 | ||||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | 3.2 | (0.7 | ) | 3.9 | |||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | (125.2 | ) | $ | (7.8 | ) | $ | (117.4 | ) | ||||||||
Three Months Ended | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Before Tax | Tax | Net of Tax | |||||||||||||||
Foreign currency cumulative translation adjustments | $ | 15.9 | $ | — | $ | 15.9 | |||||||||||
Unrealized cash flow hedge gains/(losses) | (3.9 | ) | (0.8 | ) | (3.1 | ) | |||||||||||
Reclassification adjustments on foreign currency hedges | (4.9 | ) | (2.9 | ) | (2.0 | ) | |||||||||||
Unrealized gains/(losses) on securities | 0.1 | — | 0.1 | ||||||||||||||
Reclassification adjustments on securities | (0.4 | ) | — | (0.4 | ) | ||||||||||||
Adjustments to prior service cost and unrecognized actuarial assumptions | (1.9 | ) | — | (1.9 | ) | ||||||||||||
Total Other Comprehensive Gain/(Loss) | $ | 4.9 | $ | (3.7 | ) | $ | 8.6 | ||||||||||
Fair_Value_Measurement_of_Asse1
Fair Value Measurement of Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
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 March 31, 2015 | |||||||||||||||||
Recorded | Fair Value Measurements at Reporting Date Using: | ||||||||||||||||
Description | Balance | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Corporate debt securities | $ | 494.4 | $ | — | $ | 494.4 | $ | — | |||||||||
U.S. government and agency debt securities | 133.7 | — | 133.7 | — | |||||||||||||
Commercial paper | 34.4 | — | 34.4 | — | |||||||||||||
Certificates of deposit | 37.9 | — | 37.9 | — | |||||||||||||
Total available-for-sale securities | 700.4 | — | 700.4 | — | |||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | 179.7 | — | 179.7 | — | |||||||||||||
Interest rate swaps | 31.2 | — | 31.2 | — | |||||||||||||
$ | 911.3 | $ | — | $ | 911.3 | $ | — | ||||||||||
Liabilities | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | $ | 0.2 | $ | — | $ | 0.2 | $ | — | |||||||||
As of December 31, 2014 | |||||||||||||||||
Recorded | Fair Value Measurements at Reporting Date Using: | ||||||||||||||||
Description | Balance | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets for | Observable Inputs | Unobservable Inputs | |||||||||||||||
Identical Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
Corporate debt securities | $ | 516.5 | $ | — | $ | 516.5 | $ | — | |||||||||
U.S. government and agency debt securities | 194.3 | — | 194.3 | — | |||||||||||||
Commercial paper | 57.8 | — | 57.8 | — | |||||||||||||
Certificates of deposit | 100.3 | — | 100.3 | — | |||||||||||||
Total available-for-sale securities | 868.9 | — | 868.9 | — | |||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | 125.5 | — | 125.5 | — | |||||||||||||
Interest rate swaps | 24 | — | 24 | — | |||||||||||||
$ | 1,018.40 | $ | — | $ | 1,018.40 | $ | — | ||||||||||
Liabilities | |||||||||||||||||
Derivatives, current and long-term | |||||||||||||||||
Foreign currency forward contracts and options | $ | 1.7 | $ | — | $ | 1.7 | $ | — | |||||||||
Forward starting interest rate swaps | 59.3 | — | 59.3 | — | |||||||||||||
$ | 61 | $ | — | $ | 61 | $ | — | ||||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
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 on Instrument | Loss on Hedged Item | ||||||||||||||||||||||||
Statement of Earnings | Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Interest rate swaps | Interest expense | $ | 7.2 | $ | 5.1 | $ | (7.2 | ) | $ | (5.1 | ) | ||||||||||||||||
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 | Statement of Earnings | Reclassified from OCI | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||
March 31, | March 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 90 | $ | (3.9 | ) | Cost of products sold | $ | 28.1 | $ | 5 | |||||||||||||||||
Foreign exchange options | — | — | Cost of products sold | — | (0.1 | ) | |||||||||||||||||||||
Forward starting interest rate swaps | (38.3 | ) | — | Interest expense | (0.1 | ) | — | ||||||||||||||||||||
$ | 51.7 | $ | (3.9 | ) | $ | 28 | $ | 4.9 | |||||||||||||||||||
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 | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
Statement of Earnings | 2015 | 2014 | |||||||||||||||||||||||||
Foreign exchange forward contracts | Other expense | $ | 15.2 | $ | (2.4 | ) | |||||||||||||||||||||
Fair Value of Derivative Instruments on Gross Basis | The fair value of derivative instruments on a gross basis is as follows (in millions): | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Balance | Fair | Balance | Fair | ||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||
Location | Location | ||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current assets | $ | 134.7 | Other current assets | $ | 98.7 | |||||||||||||||||||||
Foreign exchange forward contracts | Other assets | 66 | Other assets | 53.1 | |||||||||||||||||||||||
Interest rate swaps | Other assets | 31.2 | Other assets | 24 | |||||||||||||||||||||||
Total asset derivatives | $ | 231.9 | $ | 175.8 | |||||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||
Foreign exchange forward contracts | Other current liabilities | $ | 12.6 | Other current liabilities | $ | 16.4 | |||||||||||||||||||||
Forward starting interest rate swaps | Other current liabilities | — | Other current liabilities | 59.3 | |||||||||||||||||||||||
Foreign exchange forward contracts | Other long-term liabilities | 8.6 | Other long-term liabilities | — | |||||||||||||||||||||||
Interest rate swaps | Other long-term liabilities | — | Other long-term liabilities | 11.6 | |||||||||||||||||||||||
Total liability derivatives | $ | 21.2 | $ | 87.3 | |||||||||||||||||||||||
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): | ||||||||||||||||||||||||||
Location | As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||
Description | Gross | Offset | Net Amount | Gross | Offset | Net Amount | |||||||||||||||||||||
Amount | in Balance | Amount | in Balance | ||||||||||||||||||||||||
Sheet | Sheet | ||||||||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||||||||
Cash flow hedges | Other current assets | $ | 134.7 | $ | 12.4 | $ | 122.3 | $ | 98.7 | $ | 15.9 | $ | 82.8 | ||||||||||||||
Cash flow hedges | Other assets | 66 | 8.6 | 57.4 | 53.1 | 10.4 | 42.7 | ||||||||||||||||||||
Liability Derivatives | |||||||||||||||||||||||||||
Cash flow hedges | Other current liabilities | 12.6 | 12.4 | 0.2 | 16.4 | 15.9 | 0.5 | ||||||||||||||||||||
Cash flow hedges | Other long-term liabilities | 8.6 | 8.6 | — | 11.6 | 10.4 | 1.2 |
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Service cost | $ | 7.6 | $ | 6.7 | |||||
Interest cost | 5.5 | 6.4 | |||||||
Expected return on plan assets | (10.9 | ) | (10.4 | ) | |||||
Amortization of prior service cost | (1.1 | ) | (1.0 | ) | |||||
Amortization of unrecognized actuarial loss | 4.3 | 2.9 | |||||||
Net periodic pension expense | $ | 5.4 | $ | 4.6 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Weighted average shares outstanding for basic net earnings per share | 170 | 169.1 | |||||||
Effect of dilutive stock options and other equity awards | 2.9 | 2.7 | |||||||
Weighted average shares outstanding for diluted net earnings per share | 172.9 | 171.8 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Americas | $ | 645.2 | $ | 638.7 | $ | 320.3 | $ | 312.1 | |||||||||
Europe | 298.9 | 326.9 | 110.4 | 109.9 | |||||||||||||
Asia Pacific | 190.3 | 195.9 | 96 | 91.6 | |||||||||||||
Total | $ | 1,134.40 | $ | 1,161.50 | |||||||||||||
Inventory step-up and certain other inventory and manufacturing related charges | (3.9 | ) | (11.7 | ) | |||||||||||||
Intangible asset amortization | (20.4 | ) | (29.2 | ) | |||||||||||||
Special items | (87.0 | ) | (36.6 | ) | |||||||||||||
Global operations and corporate functions | (140.5 | ) | (136.0 | ) | |||||||||||||
Operating profit | $ | 274.9 | $ | 300.1 | |||||||||||||
Summary of Net Sales by Product Category | Net sales by product category are as follows (in millions): | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
Reconstructive | |||||||||||||||||
Knees | $ | 487.3 | $ | 487.9 | |||||||||||||
Hips | 312.2 | 331.7 | |||||||||||||||
Extremities | 52.2 | 52.1 | |||||||||||||||
851.7 | 871.7 | ||||||||||||||||
Dental | 55.8 | 61 | |||||||||||||||
Trauma | 79.4 | 79.7 | |||||||||||||||
Spine | 49.5 | 48.3 | |||||||||||||||
Surgical and other | 98 | 100.8 | |||||||||||||||
Total | $ | 1,134.40 | $ | 1,161.50 | |||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 0 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Apr. 24, 2014 | Mar. 31, 2015 |
Consolidation And Basis Of Presentation [Line Items] | ||
Senior unsecured term loan and notes | $8,950,000,000 | |
LVB Acquisition Inc [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 | |
Senior Unsecured Term Loan [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Senior unsecured term loan and notes | 3,000,000,000 | |
Senior Unsecured Note [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Senior unsecured term loan and notes | 7,650,000,000 | |
Musculoskeletal Industry [Member] | ||
Consolidation And Basis Of Presentation [Line Items] | ||
Net worth | $45,000,000,000 |
Significant_Accounting_Policie3
Significant Accounting Policies - Summary of Expenses in Special Items (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure Significant Accounting Policies Summary Of Expenses In Special Items [Abstract] | ||
Impairment/loss on disposal of assets | $2.30 | $1.30 |
Consulting and professional fees | 63.9 | 15 |
Employee severance and retention | 0.5 | 0.9 |
Dedicated project personnel | 13.4 | 10.9 |
Certain R&D agreements | 4.5 | |
Relocated facilities | 0.5 | 0.7 |
Contingent consideration adjustments | 2.3 | 0.5 |
Accelerated software amortization | 1.5 | 1.5 |
Other | 2.6 | 1.3 |
Special items | $87 | $36.60 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $927.60 | $899.90 |
Work in progress | 101.4 | 87.8 |
Raw materials | 188 | 181.3 |
Inventories | $1,217 | $1,169 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $3,470.20 | $3,410.60 |
Accumulated depreciation | -2,169.50 | -2,121.80 |
Property, plant and equipment, net | 1,300.70 | 1,288.80 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 20.1 | 20.4 |
Building And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,293.60 | 1,283.40 |
Capitalized Software Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 293.8 | 294.7 |
Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 1,735.10 | 1,696.30 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $127.60 | $115.80 |
Investments_Investments_in_Sho
Investments - Investments in Short and Long-Term Classified as Available-for-Sale Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $700.20 | $869.30 |
Available-for-sale Securities, Gross Unrealized Gains | 0.4 | 0.1 |
Available-for-sale Securities, Gross Unrealized Losses | -0.2 | -0.5 |
Available-for-sale Securities, Fair Value | 700.4 | 868.9 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 494.2 | 516.9 |
Available-for-sale Securities, Gross Unrealized Gains | 0.4 | 0.1 |
Available-for-sale Securities, Gross Unrealized Losses | -0.2 | -0.5 |
Available-for-sale Securities, Fair Value | 494.4 | 516.5 |
U.S. Government and Agency Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 133.7 | 194.3 |
Available-for-sale Securities, Fair Value | 133.7 | 194.3 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 34.4 | 57.8 |
Available-for-sale Securities, Fair Value | 34.4 | 57.8 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 37.9 | 100.3 |
Available-for-sale Securities, Fair Value | $37.90 | $100.30 |
Investments_Cost_and_Fair_Valu
Investments - Cost and Fair Value of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $488.30 | |
Available-for-sale Securities, Debt Maturities, Due after One year through two Years, Amortized Cost | 211.9 | |
Available-for-sale Securities, Amortized Cost | 700.2 | 869.3 |
Available-for-sale Securities, Debt Maturities, Due in One Year or less, Fair Value | 488.4 | |
Available-for-sale Securities, Debt Maturities, Due after One year through two Years, Fair Value | 212 | |
Available-for-sale Securities, Fair Value | $700.40 | $868.90 |
Other_Current_Liabilities_Summ
Other Current Liabilities - Summary of Other Current and Long-Term Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other current liabilities: | ||
Salaries, wages and benefits | $100 | $167.70 |
Forward starting interest rate swaps | 59.3 | |
Accrued liabilities | 576.3 | 571.5 |
Total other current liabilities | $676.30 | $798.50 |
Debt_Summary_of_Debt_Instrumen
Debt - Summary of Debt Instruments (Detail) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | USD ($) | USD ($) | 1.450% Senior Notes due 2017 [Member] | 2.000% Senior Notes due 2018 [Member] | 4.625% Senior Notes due 2019 [Member] | 4.625% Senior Notes due 2019 [Member] | 2.700% Senior Notes due 2020 [Member] | 3.375% Senior Notes due 2021 [Member] | 3.375% Senior Notes due 2021 [Member] | 3.150% Senior Notes due 2022 [Member] | 3.550% Senior Notes due 2025 [Member] | 4.250% Senior Notes due 2035 [Member] | 5.750% Senior Notes due 2039 [Member] | 5.750% Senior Notes due 2039 [Member] | 4.450% Senior Notes due 2045 [Member] | Japan Term Loan [Member] | Japan Term Loan [Member] | Japan Term Loan [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | |||
Long-term debt | ||||||||||||||||||
Senior Notes due | $8,950 | $500 | $1,150 | $500 | $500 | $1,500 | $300 | $300 | $750 | $2,000 | $500 | $500 | $500 | $1,250 | ||||
Term loan | 98.2 | 11,700 | 98 | |||||||||||||||
Other long-term debt | 4.9 | 4.9 | ||||||||||||||||
Debt discount | -23.1 | -1.4 | ||||||||||||||||
Adjustment related to interest rate swaps | 31.2 | 24 | ||||||||||||||||
Total long-term debt | $9,061.20 | $1,425.50 |
Debt_Summary_of_Debt_Instrumen1
Debt - Summary of Debt Instruments (Parenthetical) (Detail) | Mar. 31, 2015 | Dec. 31, 2014 |
1.450% Senior Notes due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 1.45% | |
2.000% Senior Notes due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 2.00% | |
4.625% Senior Notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 4.63% | 4.63% |
2.700% Senior Notes due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 2.70% | |
3.375% Senior Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 3.38% | 3.38% |
3.150% Senior Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 3.15% | |
3.550% Senior Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 3.55% | |
4.250% Senior Notes due 2035 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 4.25% | |
5.750% Senior Notes due 2039 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 5.75% | 5.75% |
4.450% Senior Notes due 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of Senior Notes | 4.45% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | USD ($) | Senior Credit Facility [Member] | Senior Notes [Member] | Japan Term Loan [Member] | Japan Term Loan [Member] | Japan Term Loan [Member] | Biomet Term Loan Facility [Member] | Multicurrency Revolving Facility [Member] | Multicurrency Revolving Facility [Member] | Prior Term Loan [Member] | After Term Loan [Member] | Thereafter Term Loan [Member] | 1.450% Senior Notes due 2017 [Member] | 2.000% Senior Notes due 2018 [Member] | 2.700% Senior Notes due 2020 [Member] | 3.150% Senior Notes due 2022 [Member] | 3.550% Senior Notes due 2025 [Member] | 4.250% Senior Notes due 2035 [Member] | 4.450% Senior Notes due 2045 [Member] | 3.375% Senior Notes due 2021 [Member] | 3.375% Senior Notes due 2021 [Member] | 3.375% Senior Notes due 2021 [Member] | 3.375% Senior Notes due 2021 [Member] | |
USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | Senior Credit Facility [Member] | USD ($) | Senior Credit Facility [Member] | Ratio | Ratio | Ratio | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | |||
USD ($) | USD ($) | |||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Aggregate principal amount of Senior Notes | $8,950,000,000 | $500,000,000 | $1,150,000,000 | $1,500,000,000 | $750,000,000 | $2,000,000,000 | $500,000,000 | $1,250,000,000 | $300,000,000 | $300,000,000 | ||||||||||||||
Term loan | 98,200,000 | 11,700,000,000 | 98,000,000 | |||||||||||||||||||||
Maturity date of term loan | 31-May-18 | 31-May-18 | ||||||||||||||||||||||
Other long-term debt | 4,900,000 | 4,900,000 | ||||||||||||||||||||||
Senior credit facility | 4,350,000,000 | 3,000,000,000 | 1,350,000,000 | |||||||||||||||||||||
Unsecured term loan, term | 5 years | 5 years | 30 years | |||||||||||||||||||||
Principal amount, term loan description | (the bSenior Credit Facilityb) that contains: (i) a 5-year unsecured term loan facility in the principal amount of $3.0 billion (the bBiomet Term Loan Facilityb), and (ii) a 5-year unsecured multicurrency revolving facility in the principal amount of $1.35 billion (the bMulticurrency Revolving Facilityb). | |||||||||||||||||||||||
Maximum Leverage Ratio | 3 | 5 | 4.5 | |||||||||||||||||||||
Leverage ratio description under line of credit facility on financial covenants | Financial covenants include a consolidated indebtedness to consolidated EBITDA ratio of no greater than 3.0 to 1.0 in periods prior to our drawing on the Biomet Term Loan Facility, no greater than 5.0 to 1.0 for the first twelve months after we draw on the Biomet Term Loan Facility and no greater than 4.5 to 1.0 thereafter. | |||||||||||||||||||||||
Outstanding Senior Credit Facility | 0 | |||||||||||||||||||||||
Interest rate of Senior Notes | 1.45% | 2.00% | 2.70% | 3.15% | 3.55% | 4.25% | 4.45% | 3.38% | 3.38% | |||||||||||||||
Proceeds from senior notes | 7,628,200,000 | |||||||||||||||||||||||
Debt instruments redemption terms | Obligated to redeem all of the Merger Notes at a price equal to 101% of the principal amount of the Merger Notes plus accrued and unpaid interest to the redemption date. | |||||||||||||||||||||||
Debt instrument redemption period | 1 month | 6 months | ||||||||||||||||||||||
Estimated fair value of Senior Notes and term loan | $9,246,100,000 | $98,000,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Changes in Components of Other Comprehensive Income, Net of Tax (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, Beginning Balance | $85.90 | |
Accumulated Other Comprehensive Income, Ending Balance | -31.5 | 85.9 |
Foreign Currency Translation [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, Beginning Balance | 159.6 | |
OCI before reclassifications | -152.7 | |
Accumulated Other Comprehensive Income, Ending Balance | 6.9 | |
Unrealized Gains on Securities [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, Beginning Balance | -0.4 | |
OCI before reclassifications | 0.6 | |
Accumulated Other Comprehensive Income, Ending Balance | 0.2 | |
Defined Benefit Plan Items [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, Beginning Balance | -143.4 | |
Reclassifications | 3.9 | |
Accumulated Other Comprehensive Income, Ending Balance | -139.5 | |
Cash Flow Hedges [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Accumulated Other Comprehensive Income, Beginning Balance | 70.1 | |
OCI before reclassifications | 52.4 | |
Reclassifications | -21.6 | |
Accumulated Other Comprehensive Income, Ending Balance | $100.90 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Reclassification Adjustments from Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive Income Loss [Line Items] | ||
Cost of products sold | $278.70 | $303.70 |
Interest income | 2.6 | 2.5 |
Provision for income taxes | 55 | 64.8 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Net of tax | 17.7 | 0.5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Total before tax | 28 | 4.9 |
Provision for income taxes | 6.4 | 2.9 |
Net of tax | 21.6 | 2 |
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 products sold | 28.1 | 5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Foreign Exchange Options [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Cost of products sold | -0.1 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Forward Starting Interest Rate Swaps [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Interest expenses | -0.1 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Prior service cost | 1.1 | 1 |
Unrecognized actuarial (loss) | -4.3 | -2.9 |
Total before tax | -3.2 | -1.9 |
Provision for income taxes | 0.7 | |
Net of tax | -3.9 | -1.9 |
Investments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Other Comprehensive Income Loss [Line Items] | ||
Interest income | 0.4 | |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency cumulative translation adjustments, Before Tax | ($152.70) | $15.90 |
Unrealized cash flow hedge gains/(losses), Before Tax | 51.7 | -3.9 |
Reclassification adjustments on foreign currency hedges, Before Tax | -28 | -4.9 |
Unrealized gains/(losses) on securities, Before Tax | 0.6 | 0.1 |
Reclassification adjustments on securities, Before Tax | -0.4 | |
Adjustments to prior service cost and unrecognized actuarial assumptions, Before Tax | 3.2 | -1.9 |
Total Other Comprehensive Gain/(Loss), Before Tax | -125.2 | 4.9 |
Foreign currency cumulative translation adjustments, Tax | 0 | 0 |
Unrealized cash flow hedge gains/(losses), Tax | -0.7 | -0.8 |
Reclassification adjustments on foreign currency hedges, Tax | -6.4 | -2.9 |
Unrealized gains/(losses) on securities, Tax | 0 | 0 |
Reclassification adjustments on securities, Tax | 0 | |
Adjustments to prior service cost and unrecognized actuarial assumptions, Tax | -0.7 | |
Total Other Comprehensive Gain/(Loss), Tax | -7.8 | -3.7 |
Foreign currency cumulative translation adjustments, net of tax | -152.7 | 15.9 |
Unrealized cash flow hedge gains/(losses), net of tax | 52.4 | -3.1 |
Reclassification adjustments on foreign currency hedges, net of tax | -21.6 | -2 |
Unrealized gains/(losses) on securities, net of tax | 0.6 | 0.1 |
Reclassification adjustments on securities, net of tax | -0.4 | |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 3.9 | -1.9 |
Total Other Comprehensive Gain/(Loss), net of tax | ($117.40) | $8.60 |
Fair_Value_Measurements_of_Ass
Fair Value Measurements of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | $700.40 | $868.90 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value | 700.4 | 868.9 |
Total fair value measurement of assets | 911.3 | 1,018.40 |
Total fair value measurement of liabilities | 61 | |
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 | 494.4 | 516.5 |
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 | 133.7 | 194.3 |
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 | 34.4 | 57.8 |
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 | 37.9 | 100.3 |
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 | 179.7 | 125.5 |
Derivatives, current and long-term | 0.2 | 1.7 |
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 | 31.2 | 24 |
Fair Value, Measurements, Recurring [Member] | Forward Starting Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 59.3 | |
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 | 700.4 | 868.9 |
Total fair value measurement of assets | 911.3 | 1,018.40 |
Total fair value measurement of liabilities | 61 | |
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 | 494.4 | 516.5 |
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 | 133.7 | 194.3 |
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 | 34.4 | 57.8 |
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 | 37.9 | 100.3 |
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 | 179.7 | 125.5 |
Derivatives, current and long-term | 0.2 | 1.7 |
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 | 31.2 | 24 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Forward Starting Interest Rate Swaps [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | $59.30 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | $1,000,000,000 | ||
Loss on settlement of forward starting interest rate swaps | 97,600,000 | ||
Expected months of hedging of inter company sales of inventory to minimize the effects of foreign exchange rate movements | 30 months | ||
Amounts excluded from the assessment of hedge effectiveness | 0 | 0 | |
Fair value of outstanding derivative instruments, net unrealized gain deferred in other comprehensive income | 111,700,000 | ||
Cost of Products Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Fair value of outstanding derivative instruments, net unrealized gain expected to be reclassified to earnings | 130,800,000 | ||
Fair value of outstanding derivative instruments, unrealized gain net of taxes expected to be reclassified to earnings | 101,500,000 | ||
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 | 100,900,000 | ||
4.625% Senior Notes due 2019 [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | 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 | ||
4.625% Senior Notes due 2019 [Member] | LIBOR [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate swap basis spread on variable rate | 1.33% | ||
3.375% Senior Notes due 2021 [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | 300,000,000 | ||
Interest rate of Senior Notes | 3.38% | 3.38% | |
Description of terms of interest rate derivatives terms | 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 | ||
3.375% Senior Notes due 2021 [Member] | LIBOR [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate swap basis spread on variable rate | 0.99% | ||
4.450% Senior Notes due 2045 [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Interest rate of Senior Notes | 4.45% | ||
Debt instrument term | 30 years | ||
Foreign Exchange Forward Contracts [Member] | Nondesignated [Member] | Minimum [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | 1,200,000,000 | ||
Foreign Exchange Forward Contracts [Member] | Nondesignated [Member] | Maximum [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | 1,700,000,000 | ||
Foreign Exchange Contract [Member] | U.S. Dollars [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | 1,228,500,000 | ||
Foreign Exchange Contract [Member] | Swiss Francs [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount, Total | $306,400,000 |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Rate Swaps [Member] | Interest Expense [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain on Instrument | $7.20 | $5.10 |
Loss on Hedged Item | ($7.20) | ($5.10) |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Gross Unrealized Losses from Derivative Instruments (Detail) (Cash Flow Hedges [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Recognized in OCI | $51.70 | ($3.90) |
Amount of Gain / (Loss) Reclassified from OCI | 28 | 4.9 |
Foreign Exchange Forward Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Recognized in OCI | 90 | -3.9 |
Foreign Exchange Forward Contracts [Member] | Cost of Products Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Reclassified from OCI | 28.1 | 5 |
Foreign Exchange Options [Member] | Cost of Products Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Reclassified from OCI | -0.1 | |
Forward Starting Interest Rate Swaps [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Recognized in OCI | -38.3 | |
Forward Starting Interest Rate Swaps [Member] | Interest Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain / (Loss) Reclassified from OCI | ($0.10) |
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], Other Expense [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Nondesignated [Member] | Foreign Exchange Forward Contracts [Member] | Other Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains (losses) from derivative instruments not designated as hedging instruments | $15.20 | ($2.40) |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on Gross Basis (Detail) (Designated as Hedging Instrument [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $231.90 | $175.80 |
Derivative Liabilities | 21.2 | 87.3 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 134.7 | 98.7 |
Foreign Exchange Forward Contracts [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 66 | 53.1 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 12.6 | 16.4 |
Foreign Exchange Forward Contracts [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 8.6 | |
Interest Rate Swaps [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 31.2 | 24 |
Interest Rate Swaps [Member] | Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 11.6 | |
Forward Starting Interest Rate Swaps [Member] | Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $59.30 |
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 $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Current Assets [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | $134.70 | $98.70 |
Offset | 12.4 | 15.9 |
Net Amount in Balance Sheet | 122.3 | 82.8 |
Other Assets [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 66 | 53.1 |
Offset | 8.6 | 10.4 |
Net Amount in Balance Sheet | 57.4 | 42.7 |
Other Current Liabilities [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 12.6 | 16.4 |
Offset | 12.4 | 15.9 |
Net Amount in Balance Sheet | 0.2 | 0.5 |
Other Long-term Liabilities [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 8.6 | 11.6 |
Offset | 8.6 | 10.4 |
Net Amount in Balance Sheet | $1.20 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Effective tax rate | 23.70% |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Service cost | $7.60 | $6.70 |
Interest cost | 5.5 | 6.4 |
Expected return on plan assets | -10.9 | -10.4 |
Amortization of prior service cost | -1.1 | -1 |
Amortization of unrecognized actuarial loss | 4.3 | 2.9 |
Net periodic pension expense | $5.40 | $4.60 |
Retirement_Benefit_Plans_Addit
Retirement Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
U.S. and Puerto Rico [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Contribution towards defined benefit plans | $0 |
Expected contribution during remainder of year | 0 |
Foreign-based Defined Benefit Plans [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
Contribution towards defined benefit plans | 3.6 |
Expected contribution during remainder of year | $11 |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation of Weighted Average Share for Basic and Diluted Share Computations (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Weighted average shares outstanding for basic net earnings per share | 170 | 169.1 |
Effect of dilutive stock options and other equity awards | 2.9 | 2.7 |
Weighted average shares outstanding for diluted net earnings per share | 172.9 | 171.8 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net Sales | $1,134.40 | $1,161.50 |
Operating profit | 274.9 | 300.1 |
Intangible asset amortization | -20.4 | -29.2 |
Special items | -87 | -36.6 |
Segment Reconciling Items [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Inventory step-up and certain other inventory and manufacturing related charges | -3.9 | -11.7 |
Intangible asset amortization | -20.4 | -29.2 |
Special items | -87 | -36.6 |
Global operations and corporate functions | -140.5 | -136 |
Americas Segment [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net Sales | 645.2 | 638.7 |
Operating profit | 320.3 | 312.1 |
Europe Segment [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net Sales | 298.9 | 326.9 |
Operating profit | 110.4 | 109.9 |
Asia Pacific Segment [Member] | Operating Segments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Net Sales | 190.3 | 195.9 |
Operating profit | $96 | $91.60 |
Segment_Information_Summary_of1
Segment Information - Summary of Net Sales by Product Category (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Net Sales | $1,134.40 | $1,161.50 |
Knees [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 487.3 | 487.9 |
Hips [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 312.2 | 331.7 |
Extremities [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 52.2 | 52.1 |
Reconstructive [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 851.7 | 871.7 |
Dental [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 55.8 | 61 |
Trauma [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 79.4 | 79.7 |
Spine [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | 49.5 | 48.3 |
Surgical and other [Member] | ||
Revenue from External Customer [Line Items] | ||
Net Sales | $98 | $100.80 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 87 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 01, 2013 | Jun. 10, 2011 |
Loss Contingencies [Line Items] | |||||
Certain claims related expense | $0 | ||||
Self-insured retention amount | 20.00% | ||||
Receivables in other assets | 170.3 | 170.3 | |||
Compensatory damages awarded | 27.6 | ||||
Percentage of fault apportioned to plaintiffs | 30.00% | ||||
Percentage of fault apportioned to company | 34.00% | ||||
Percentage of fault apportioned to unrelated third party | 36.00% | ||||
Verdict in full and entered judgment | 20.3 | ||||
Compensatory damages vacated | 27.6 | ||||
Durom Cup Related Claims [Member] | |||||
Loss Contingencies [Line Items] | |||||
Certain claims related expense | 0 | 471.7 | |||
Estimated liability outstanding | 348.3 | 348.3 | |||
Estimated liability classified as short-term | 50 | 50 | |||
Estimated liability classified as long-term | 298.3 | 298.3 | |||
Stryker Corporation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of patents infringed | 3 | 3 | |||
Monetary damages for lost profits | 70 | ||||
Estimated charges | $70 |