Zimmer Biomet (ZBH) 8-K Zimmer Biomet Holdings, Inc. Reports Third Quarter 2015 Financial Results

Exhibit 99.2

ZIMMER BIOMET HOLDINGS, INC.

Reconciliation of As Reported and As Revised Consolidated Statements of Earnings

For the Three Months Ended March 31, 2015 and June 30, 2015 and Six Months Ended June 30, 2015

(in millions, except per share amounts, unaudited)

	Three Months Ended March 31, 2015									Three Months Ended June 30, 2015									Six Months Ended June 30, 2015
	As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised			As Reported			Adjustment			As Revised
Cost of products sold	$	278.7		$	6.2		$	284.9		$	290.5		$	3.8		$	294.3		$	569.2		$	10.0		$	579.2
Research and development		48.4			(0.1	)		48.3			51.4			(0.1	)		51.3			99.8			(0.2	)		99.6
Selling, general and administrative		425.0			(0.9	)		424.1			445.1			(0.9	)		444.2			870.1			(1.8	)		868.3
Special items		87.0			(0.2	)		86.8			469.4			(0.2	)		469.2			556.4			(0.4	)		556.0
Operating expenses		859.5			5.0			864.5			1,297.1			2.6			1,299.7			2,156.6			7.6			2,164.2
Other (expense), net		(22.6	)		—			(22.6	)		(4.0	)		(22.3	)		(26.3	)		(26.6	)		(22.3	)		(48.9	)
Earnings (loss) before income taxes		231.8			(5.0	)		226.8			(213.7	)		(24.9	)		(238.6	)		18.1			(29.9	)		(11.8	)
Provision (benefit) for income taxes		55.0			0.7			55.7			(55.5	)		(9.3	)		(64.8	)		(0.5	)		(8.6	)		(9.1	)
Net (loss) earnings		176.8			(5.7	)		171.1			(158.2	)		(15.6	)		(173.8	)		18.6			(21.3	)		(2.7	)
Net (Loss) Earnings of Zimmer Biomet Holdings, Inc.	$	177.1		$	(5.7	)	$	171.4		$	(158.0	)	$	(15.6	)	$	(173.6	)	$	19.1		$	(21.3	)	$	(2.2	)
Weighted Average Common Shares Outstanding - Diluted																				174.2			(2.7	)		171.5
Earnings (Loss) Per Common Share - Basic	$	1.04		$	(0.03	)	$	1.01		$	(0.91	)	$	(0.09	)	$	(1.00	)	$	0.11		$	(0.12	)	$	(0.01	)
Earnings (Loss) Per Common Share - Diluted	$	1.02		$	(0.03	)	$	0.99		$	(0.91	)	$	(0.09	)	$	(1.00	)	$	0.11		$	(0.12	)	$	(0.01	)
Net (Loss) Earnings of Zimmer Biomet Holdings, Inc.							$	171.4								$	(173.6	)							$	(2.2	)
Inventory step-up and other inventory and manufacturing related charges								3.9									14.7									18.6
Certain claims								—									7.7									7.7
Intangible asset amortization								20.4									33.0									53.4
Special items								86.8									469.2									556.0
Biomet merger-related expenses in other expense, net								19.5									25.5									45.0
Interest expense on Biomet merger financing								8.5									61.5									70.0
Taxes on above items*								(43.6	)								(161.1	)								(204.7	)
Adjusted Net Earnings							$	266.9								$	276.9								$	543.8
*  The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred
Diluted EPS							$	0.99								$	(1.00	)							$	(0.01	)
Inventory step-up and other inventory and manufacturing related charges								0.02									0.08									0.11
Certain claims								—									0.04									0.04
Intangible asset amortization								0.12									0.19									0.30
Special items								0.50									2.67									3.18
Biomet merger-related expenses in other expense								0.11									0.15									0.25
Interest expense on Biomet merger financing								0.05									0.35									0.39
Taxes on above items*								(0.25	)								(0.92	)								(1.19	)
Effect of dilutive shares assuming net earnings**								—									0.02									0.05
Adjusted Diluted EPS							$	1.54								$	1.58								$	3.12
*  The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred
** Diluted share count used in Adjusted Diluted EPS:
Diluted shares																	173.0									171.5
Dilutive shares assuming net earnings																	2.6									2.7
Adjusted diluted shares																	175.6									174.2
Adjusted Diluted EPS, as reported							$	1.58								$	1.59								$	3.17
Cost of products sold revision								(0.04	)								(0.02	)								(0.06	)
Selling, general and administrative revision								—									0.01									0.01
Adjusted Diluted EPS, as revised							$	1.54								$	1.58								$	3.12

ZIMMER BIOMET HOLDINGS, INC.

Reconciliation of As Reported and As Revised Consolidated Statements of Earnings

For the Quarterly and Year End Periods in the Calendar Year December 31, 2014

(in millions, except per share amounts, unaudited)

	Three Months Ended March 31, 2014								Three Months Ended June 30, 2014								Three Months Ended September 30, 2014								Three Months Ended December 31, 2014								Year Ended December 31, 2014
	As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised
Cost of products sold	$	303.7	$	1.8		$	305.5		$	331.6	$	(4.0	)	$	327.6		$	296.7	$	(0.8	)	$	295.9		$	310.7	$	3.1		$	313.8		$	1,242.7	$	0.1		$	1,242.8
Research and development		47.4		(0.1	)		47.3			48.0		(0.1	)		47.9			46.0		(0.1	)		45.9			46.5		(0.2	)		46.3			187.9		(0.5	)		187.4
Selling, general and administrative		444.5		(1.9	)		442.6			436.1		10.0			446.1			423.8		(1.0	)		422.8			440.0		(0.8	)		439.2			1,744.4		6.3			1,750.7
Special items		36.6		(0.4	)		36.2			62.3		(0.1	)		62.2			66.4		(0.5	)		65.9			177.2		(0.4	)		176.8			342.5		(1.4	)		341.1
Operating expenses		861.4		(0.6	)		860.8			922.0		5.8			927.8			853.2		(2.4	)		850.8			994.9		1.7			996.6			3,631.5		4.5			3,636.0
Earnings before income taxes		285.9		0.6			286.5			236.4		(5.8	)		230.6			227.4		2.4			229.8			194.2		(1.7	)		192.5			943.9		(4.5	)		939.4
Provision for income taxes		64.8		1.1			65.9			60.3		(1.7	)		58.6			62.1		(5.2	)		56.9			37.7		1.1			38.8			224.9		(4.7	)		220.2
Net earnings		221.1		(0.5	)		220.6			176.1		(4.1	)		172.0			165.3		7.6			172.9			156.5		(2.8	)		153.7			719.0		0.2			719.2
Net Earnings of Zimmer Biomet Holdings, Inc.	$	221.5	$	(0.5	)	$	221.0		$	176.5	$	(4.1	)	$	172.4		$	165.5	$	7.6		$	173.1		$	156.6	$	(2.8	)	$	153.8		$	720.1	$	0.2		$	720.3
Earnings Per Common Share - Basic	$	1.31	$	—		$	1.31		$	1.05	$	(0.03	)	$	1.02		$	0.98	$	0.04		$	1.02		$	0.92	$	(0.01	)	$	0.91		$	4.26	$	—		$	4.26
Earnings Per Common Share - Diluted	$	1.29	$	—		$	1.29		$	1.03	$	(0.02	)	$	1.01		$	0.96	$	0.05		$	1.01		$	0.91	$	(0.02	)	$	0.89		$	4.19	$	0.01		$	4.20
Net Earnings of Zimmer Biomet Holdings, Inc.						$	221.0							$	172.4							$	173.1							$	153.8							$	720.3
Inventory step-up and other inventory and manufacturing related charges							11.7								13.5								7.7								3.4								36.3
Certain claims							—								21.8								(0.3	)							—								21.5
Intangible asset amortization							29.2								22.2								20.6								20.5								92.5
Special items							36.2								62.2								65.9								176.8								341.1
Biomet merger-related expenses in other expense, net							—								10.0								10.4								19.2								39.6
Taxes on above items*							(24.3	)							(35.3	)							(27.7	)							(66.0	)							(153.3	)
Adjusted Net Earnings						$	273.8							$	266.8							$	249.7							$	307.7							$	1,098.0
*  The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred
Diluted EPS						$	1.29							$	1.01							$	1.01							$	0.89							$	4.20
Inventory step-up and other inventory and manufacturing related charges							0.07								0.08								0.04								0.02								0.21
Certain claims							—								0.13								—								—								0.13
Intangible asset amortization							0.17								0.13								0.12								0.12								0.54
Special items							0.21								0.36								0.38								1.03								1.99
Biomet merger-related expenses in other expense							—								0.06								0.06								0.11								0.23
Taxes on above items*							(0.15	)							(0.21	)							(0.16	)							(0.39	)							(0.90	)
Adjusted Diluted EPS						$	1.59							$	1.56							$	1.45							$	1.78							$	6.40
*  The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred
Adjusted Diluted EPS, as reported						$	1.60							$	1.58							$	1.45							$	1.80							$	6.44
Cost of products sold revision							(0.01	)							0.02								—								(0.02	)							—
Selling, general and administrative revision							0.01								(0.06	)							0.01								—								(0.04	)
Taxes on above items*							(0.01	)							0.02								(0.01	)							—								—
Adjusted Diluted EPS, as revised						$	1.59							$	1.56							$	1.45							$	1.78							$	6.40
* The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred

ZIMMER BIOMET HOLDINGS, INC.

Reconciliation of As Reported and As Revised Consolidated Statements of Earnings

For the Quarterly and Year End Periods in the Calendar Year December 31, 2013

(in millions, except per share amounts, unaudited)

	Three Months Ended March 31, 2013								Three Months Ended June 30, 2013								Three Months Ended September 30, 2013								Three Months Ended December 31, 2013								Year Ended December 31, 2013
	As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised			As Reported		Adjustment			As Revised
Cost of products sold	$	291.2	$	(5.9	)	$	285.3		$	322.1	$	(5.9	)	$	316.2		$	327.3	$	(2.4	)	$	324.9		$	339.5	$	0.8		$	340.3		$	1,280.1	$	(13.4	)	$	1,266.7
Research and development		53.3		(0.1	)		53.2			54.9		(0.1	)		54.8			49.0		(0.1	)		48.9			46.2		(0.1	)		46.1			203.4		(0.4	)		203.0
Selling, general and administrative		448.5		(2.5	)		446.0			434.0		(2.6	)		431.4			419.0		(2.8	)		416.2			457.3		(1.6	)		455.7			1,758.8		(9.5	)		1,749.3
Special items		33.1		(3.3	)		29.8			75.2		(0.2	)		75.0			44.9		(0.1	)		44.8			60.8		(0.1	)		60.7			214.0		(3.7	)		210.3
Operating expenses		839.0		(11.8	)		827.2			957.6		(8.8	)		948.8			861.1		(5.4	)		855.7			924.1		(1.0	)		923.1			3,581.8		(27.0	)		3,554.8
Earnings before income taxes		283.7		11.8			295.5			196.0		8.8			204.8			198.4		5.4			203.8			303.0		1.0			304.0			981.1		27.0			1,008.1
Provision for income taxes		65.7		1.9			67.6			44.3		3.1			47.4			44.3		2.2			46.5			67.6		0.4			68.0			221.9		7.6			229.5
Net earnings		218.0		9.9			227.9			151.7		5.7			157.4			154.1		3.2			157.3			235.4		0.6			236.0			759.2		19.4			778.6
Net Earnings of Zimmer Biomet Holdings, Inc.	$	218.6	$	9.9		$	228.5		$	152.1	$	5.7		$	157.8		$	154.4	$	3.2		$	157.6		$	235.9	$	0.6		$	236.5		$	761.0	$	19.4		$	780.4
Earnings Per Common Share - Basic	$	1.30	$	0.05		$	1.35		$	0.90	$	0.03		$	0.93		$	0.91	$	0.02		$	0.93		$	1.38	$	0.01		$	1.39		$	4.49	$	0.11		$	4.60
Earnings Per Common Share - Diluted		1.28		0.06			1.34			0.89		0.03			0.92			0.90		0.02			0.92			1.36		—			1.36			4.43		0.11			4.54
Net Earnings of Zimmer Biomet Holdings, Inc.						$	228.5							$	157.8							$	157.6							$	236.5							$	780.4
Inventory step-up and other inventory and manufacturing related charges							8.0								16.4								47.7								16.6								88.7
Certain claims							—								47.0								—								—								47.0
Intangible asset amortization							12.9								24.4								20.9								20.3								78.5
Special items							29.8								75.0								44.8								60.7								210.3
Taxes on above items*							(18.4	)							(52.3	)							(36.1	)							(29.1	)							(135.9	)
Adjusted Net Earnings						$	260.8							$	268.3							$	234.9							$	305.0							$	1,069.0
* The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred
Diluted EPS						$	1.34							$	0.92							$	0.92							$	1.36							$	4.54
Inventory step-up and other inventory and manufacturing related charges							0.05								0.10								0.28								0.10								0.52
Certain claims							—								0.28								—								—								0.27
Intangible asset amortization							0.08								0.14								0.12								0.12								0.46
Special items							0.17								0.44								0.26								0.35								1.22
Taxes on above items*							(0.11	)							(0.31	)							(0.22	)							(0.17	)							(0.79	)
Adjusted Diluted EPS						$	1.53							$	1.57							$	1.36							$	1.76							$	6.22
*  The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred
Adjusted Diluted EPS, as reported						$	1.48							$	1.54							$	1.35							$	1.76							$	6.13
Cost of products sold revision							0.04								0.03								0.01								—								0.08
Selling, general and administrative revision							0.02								0.02								0.01								—								0.06
Taxes on above items*							(0.01	)							(0.02	)							(0.01	)							—								(0.05	)
Adjusted Diluted EPS, as revised						$	1.53							$	1.57							$	1.36							$	1.76							$	6.22
*  The tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred

ZIMMER BIOMET HOLDINGS, INC.

Reconciliation of As Reported and As Revised Consolidated Balance Sheet

As of December 31, 2014

(in millions)

	December 31, 2014
	As Reported		Adjustment			As Revised
Inventories	$	1,169.0	$	24.3		$	1,193.3
Total Current Assets		4,289.0		24.3			4,313.3
Property, plant and equipment, net		1,288.8		(3.5	)		1,285.3
Intangible assets		603.5		—			603.5
Other assets		939.2		2.5			941.7
Total Assets		9,634.7		23.3			9,658.0
Accounts payable		167.1		(21.9	)		145.2
Income taxes payable		72.4		7.9			80.3
Total Current Liabilities		1,038.0		(14.0	)		1,024.0
Long-term income tax payable		181.7		8.2			189.9
Deferred income taxes		45.9		—			45.9
Total Liabilities		3,112.1		(5.8	)		3,106.3
Retained earnings		8,285.2		76.9			8,362.1
Accumulated other comprehensive income		85.9		(47.8	)		38.1
Total Zimmer Biomet Holdings, Inc. stockholders’ equity		6,520.8		29.1			6,549.9
Total Stockholders Equity		6,522.6		29.1			6,551.7

ZIMMER BIOMET HOLDINGS, INC.

Reconciliation of As Reported and As Revised Consolidated Statement of Cash Flows

For the Nine Month Period Ended September 30, 2014

(in millions)

	Nine Months Ended September 30, 2014
	As Reported			Adjustments			As Revised
Net earnings	$	562.5		$	3.0		$	565.5
Changes in operating assets and liabilities, net of effect of acquisitions:
Income taxes		(134.3	)		(5.9	)		(140.2	)
Inventories		(134.2	)		1.5			(132.7	)
Accounts payable and accrued expenses		6.5			(9.4	)		(2.9	)
Other assets and liabilities		92.2			10.8			103.0