Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | ZIMMER BIOMET HOLDINGS, INC. | |
Entity Central Index Key | 0001136869 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 208,840,496 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-16407 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-4151777 | |
Entity Address, Address Line One | 345 East Main Street | |
Entity Address, City or Town | Warsaw | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46580 | |
City Area Code | 574 | |
Local Phone Number | 267-6131 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | ZBH | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
1.414% Notes due 2022 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | ZBH 22A | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | 1.414% Notes due 2022 | |
2.425% Notes due 2026 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | ZBH 26 | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | 2.425% Notes due 2026 | |
1.164% Notes due 2027 [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | ZBH 27 | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | 1.164% Notes due 2027 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Net Sales | $ 2,026.9 | $ 1,226.1 | $ 3,874.3 | $ 3,009.9 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of products sold, excluding intangible asset amortization | $ 581.6 | $ 424.5 | $ 1,098 | $ 911.6 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Intangible asset amortization | $ 154.6 | $ 147.7 | $ 310.1 | $ 295.3 |
Research and development | 180.5 | 87.7 | 274.9 | 186.1 |
Selling, general and administrative | 817.4 | 665 | 1,587.5 | 1,493.9 |
Goodwill and intangible asset impairment | 16.3 | 33 | 16.3 | 645 |
Restructuring and other cost reduction initiatives | 19.6 | 28 | 41.4 | 73 |
Quality remediation | 11 | 9.7 | 21.2 | 26.1 |
Acquisition, integration, divestiture and related | 25.4 | 2.2 | 38.8 | 6.6 |
Operating expenses | 1,806.4 | 1,397.8 | 3,388.2 | 3,637.6 |
Operating Profit (Loss) | 220.5 | (171.7) | 486.1 | (627.7) |
Other income, net | 8.1 | 3.8 | 15.4 | 6.8 |
Interest expense, net | (54.7) | (54) | (107) | (104.9) |
Earnings (loss) before income taxes | 173.9 | (221.9) | 394.5 | (725.8) |
Provision (benefit) for income taxes | 31.4 | (13.7) | 54.3 | (8.5) |
Net Earnings (Loss) | 142.5 | (208.2) | 340.2 | (717.3) |
Less: Net earnings (loss) attributable to noncontrolling interest | 0.6 | (1.6) | 0.2 | (2.2) |
Net Earnings (Loss) of Zimmer Biomet Holdings, Inc. | $ 141.9 | $ (206.6) | $ 340 | $ (715.1) |
Earnings (Loss) Per Common Share | ||||
Basic | $ 0.68 | $ (1) | $ 1.63 | $ (3.46) |
Diluted | $ 0.67 | $ (1) | $ 1.62 | $ (3.46) |
Weighted Average Common Shares Outstanding | ||||
Basic | 208.6 | 206.8 | 208.3 | 206.6 |
Diluted | 210.7 | 206.8 | 210.4 | 206.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Earnings (Loss) | $ 142.5 | $ (208.2) | $ 340.2 | $ (717.3) |
Other Comprehensive (Loss) Income: | ||||
Foreign currency cumulative translation adjustments, net of tax | (13.6) | 23 | (32.7) | (31.2) |
Unrealized cash flow hedge gains (losses), net of tax | 2.2 | (22.7) | 42.1 | 32.1 |
Reclassification adjustments on hedges, net of tax | 2.3 | (13.1) | 1.8 | (26.6) |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | (1.2) | 2.1 | (0.4) | 1.8 |
Total Other Comprehensive Income (Loss) | (10.3) | (10.7) | 10.8 | (23.9) |
Comprehensive Income (Loss) | 132.2 | (218.9) | 351 | (741.2) |
Comprehensive income (loss) attributable to the noncontrolling interest | 0.6 | (1.6) | 0.2 | (2.2) |
Comprehensive Income (Loss) Attributable to Zimmer Biomet Holdings, Inc. | $ 131.6 | $ (217.3) | $ 350.8 | $ (739) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,042.4 | $ 802.1 |
Accounts receivable, less allowance for credit losses | 1,420.4 | 1,452.7 |
Inventories | 2,533 | 2,450.7 |
Prepaid expenses and other current assets | 361 | 377.8 |
Total Current Assets | 5,356.8 | 5,083.3 |
Property, plant and equipment, net | 2,005.2 | 2,047.7 |
Goodwill | 9,247.6 | 9,261.8 |
Intangible assets, net | 6,642.7 | 7,055.5 |
Other assets | 970.9 | 969.4 |
Total Assets | 24,223.2 | 24,417.7 |
Current Liabilities: | ||
Accounts payable | 360.6 | 330 |
Income taxes payable | 41.8 | 59.5 |
Other current liabilities | 1,476.1 | 1,667.4 |
Current portion of long-term debt | 1,050 | 500 |
Total Current Liabilities | 2,928.5 | 2,556.9 |
Deferred income taxes, net | 722.8 | 790.4 |
Long-term income tax payable | 581.6 | 588.1 |
Other long-term liabilities | 604.5 | 656.4 |
Long-term debt | 6,802.5 | 7,626.5 |
Total Liabilities | 11,639.9 | 12,218.3 |
Commitments and Contingencies (Note 17) | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value, one billion shares authorized, 312.5 million shares in 2021 (311.4 million in 2020) issued | 3.1 | 3.1 |
Paid-in capital | 9,248.6 | 9,121.6 |
Retained earnings | 10,331 | 10,086.9 |
Accumulated other comprehensive loss | (287) | (297.8) |
Treasury stock, 103.8 million shares in 2021 (103.8 million shares in 2020) | (6,717.8) | (6,719.6) |
Total Zimmer Biomet Holdings, Inc. stockholders' equity | 12,577.9 | 12,194.2 |
Noncontrolling interest | 5.4 | 5.2 |
Total Stockholders' Equity | 12,583.3 | 12,199.4 |
Total Liabilities and Stockholders' Equity | $ 24,223.2 | $ 24,417.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 312,500,000 | 311,400,000 |
Treasury stock, shares | 103,800,000 | 103,800,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Shares [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2019 | $ 12,392.8 | $ 3.1 | $ 8,920.1 | $ 10,427.3 | $ (241.9) | $ (6,720.5) | $ 4.7 | ||
Balance, shares at Dec. 31, 2019 | 309.9 | (103.9) | |||||||
Net earnings (loss) | (717.3) | (715.1) | (2.2) | ||||||
Other comprehensive income (loss) | (23.9) | (23.9) | |||||||
Cash dividends declared | (99.3) | (99.3) | |||||||
Stock compensation plans | 94.7 | 93.9 | 0.2 | $ 0.6 | |||||
Stock compensation plans, shares | 0.8 | 0.1 | |||||||
Balance at Jun. 30, 2020 | 11,643.9 | $ (3.1) | $ 3.1 | 9,014 | 9,610 | $ (3.1) | (265.8) | $ (6,719.9) | 2.5 |
Balance, shares at Jun. 30, 2020 | 310.7 | (103.8) | |||||||
Balance at Mar. 31, 2020 | 11,882.7 | $ 3.1 | 8,984.3 | 9,866.2 | (255.1) | $ (6,719.9) | 4.1 | ||
Balance, shares at Mar. 31, 2020 | 310.6 | (103.8) | |||||||
Net earnings (loss) | (208.2) | (206.6) | (1.6) | ||||||
Other comprehensive income (loss) | (10.7) | (10.7) | |||||||
Cash dividends declared | (49.7) | (49.7) | |||||||
Stock compensation plans | 29.8 | $ 0.1 | 29.7 | 0.1 | |||||
Balance at Jun. 30, 2020 | 11,643.9 | $ (3.1) | $ 3.1 | 9,014 | 9,610 | $ (3.1) | (265.8) | $ (6,719.9) | 2.5 |
Balance, shares at Jun. 30, 2020 | 310.7 | (103.8) | |||||||
Balance at Dec. 31, 2020 | 12,199.4 | $ 3.1 | 9,121.6 | 10,086.9 | (297.8) | $ (6,719.6) | 5.2 | ||
Balance, shares at Dec. 31, 2020 | 311.4 | (103.8) | |||||||
Net earnings (loss) | 340.2 | 340 | 0.2 | ||||||
Other comprehensive income (loss) | 10.8 | 10.8 | |||||||
Cash dividends declared | (100) | (100) | |||||||
Stock compensation plans | 132.9 | 127 | 4.1 | $ 1.8 | |||||
Stock compensation plans, shares | 1.1 | ||||||||
Balance at Jun. 30, 2021 | 12,583.3 | $ 3.1 | 9,248.6 | 10,331 | (287) | $ (6,717.8) | 5.4 | ||
Balance, shares at Jun. 30, 2021 | 312.5 | (103.8) | |||||||
Balance at Mar. 31, 2021 | 12,449.8 | $ 3.1 | 9,199.2 | 10,237.7 | (276.7) | $ (6,718.3) | 4.8 | ||
Balance, shares at Mar. 31, 2021 | 312.2 | (103.8) | |||||||
Net earnings (loss) | 142.5 | 141.9 | 0.6 | ||||||
Other comprehensive income (loss) | (10.3) | (10.3) | |||||||
Cash dividends declared | (50) | (50) | |||||||
Stock compensation plans | 51.3 | 49.4 | 1.4 | $ 0.5 | |||||
Stock compensation plans, shares | 0.3 | ||||||||
Balance at Jun. 30, 2021 | $ 12,583.3 | $ 3.1 | $ 9,248.6 | $ 10,331 | $ (287) | $ (6,717.8) | $ 5.4 | ||
Balance, shares at Jun. 30, 2021 | 312.5 | (103.8) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (unaudited) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividend declared per share | $ 0.24 | $ 0.24 | $ 0.48 | $ 0.48 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows provided by (used in) operating activities: | ||
Net earnings (loss) | $ 340.2 | $ (717.3) |
Adjustments to reconcile net earnings (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 535.2 | 508.7 |
Share-based compensation | 46.4 | 38.3 |
Goodwill and intangible asset impairment | 16.3 | 645 |
Changes in operating assets and liabilities, net of acquired assets and liabilities | ||
Income taxes | (37.3) | (46.1) |
Receivables | 5.3 | 272.7 |
Inventories | (94.4) | (122.6) |
Accounts payable and accrued liabilities | (56.3) | (233.9) |
Other assets and liabilities | (55) | 53.3 |
Net cash provided by operating activities | 700.4 | 398.1 |
Cash flows provided by (used in) investing activities: | ||
Additions to instruments | (150.5) | (159.3) |
Additions to other property, plant and equipment | (54.7) | (59.2) |
Net investment hedge settlements | (9.6) | 26.8 |
Other investing activities | (17.4) | (14.8) |
Net cash used in investing activities | (232.2) | (206.5) |
Cash flows provided by (used in) financing activities: | ||
Proceeds from senior notes | 1,497.1 | |
Redemption of senior notes | (200) | (1,500) |
Dividends paid to stockholders | (99.8) | (99.1) |
Proceeds from employee stock compensation plans | 91.5 | 61.7 |
Net cash flows from unremitted collections from factoring programs | (19.6) | |
Business combination contingent consideration payments | (6.5) | (7.5) |
Debt issuance costs | (19.4) | |
Other financing activities | (9.3) | (6.1) |
Net cash used in financing activities | (224.1) | (92.9) |
Effect of exchange rates on cash and cash equivalents | (3.8) | (3.2) |
Increase in cash and cash equivalents | 240.3 | 95.5 |
Cash and cash equivalents, beginning of year | 802.1 | 617.9 |
Cash and cash equivalents, end of period | $ 1,042.4 | $ 713.4 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [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 our Annual Report on Form 10-K for the year ended December 31, 2020. In our opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods presented. The December 31, 2020 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. Risks and Uncertainties - Our results have been and are expected to continue to be impacted by the COVID-19 global pandemic. The vast majority of our net sales are derived from products used in elective surgical procedures which are being deferred due to precautions in certain markets. The consequences of COVID-19 continue to be extremely fluid and there are many market dynamics that are difficult to predict. The COVID-19 pandemic may have a significant unfavorable effect on our financial position, results of operations and cash flows in the near term. Planned Spinoff - On February 5, 2021, we announced our intention to pursue a plan to spin off our Spine and Dental businesses into a new public company (“SpinCo”). The planned transaction is intended to benefit our stockholders by enhancing the focus of both Zimmer Biomet and SpinCo to meet the needs of patients and customers and, therefore, achieve faster growth and deliver greater value for all stakeholders. The transaction is intended to qualify as a tax-free distribution, for U.S. federal income tax purposes, to U.S. stockholders of new publicly traded stock in SpinCo. We are targeting completion of the spinoff by mid-2022, subject to the satisfaction of certain conditions, including, among others, final approval of our Board of Directors, receipt of a favorable opinion and Internal Revenue Service (“IRS”) ruling with respect to the tax-free nature of the transaction, obtaining debt financing for the new company, and the effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission (the “SEC”). Therefore, we cannot provide assurance that we will be able to complete the spinoff on the terms or on the timeline that we announced, or at all. The words “we,” “us,” “our” and similar words and “Zimmer Biomet” refer to Zimmer Biomet Holdings, Inc. and its subsidiaries. “Zimmer Biomet Holdings” refers to the parent company only. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Use of Estimates - The accompanying unaudited condensed consolidated financial statements are prepared in conformity with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We have made our best estimates, as appropriate under GAAP, in the recognition of our assets and liabilities. These estimates have considered the impact the COVID-19 pandemic may have on our financial position, results of operations and cash flows. Such estimates included, but were not limited to, variable consideration to our customers, our allowance for doubtful accounts for expected credit losses, the net realizable value of our inventory, the fair value of our goodwill and the recoverability of other long-lived assets. Actual results could differ materially from these estimates. Accounting Pronouncements Recently Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12 Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminates certain exceptions in the rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill, among other things. We adopted this standard as of January 1, 2021. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) . ASU 2020-04 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. Early adoption of this ASU is permitted, and we may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the impact this ASU will have on our financial statements. There are no 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. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
Revenue | 3. Revenue Net sales by geography are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Americas $ 1,239.6 $ 733.7 $ 2,354.6 $ 1,835.0 EMEA 429.8 218.7 814.0 616.8 Asia Pacific 357.5 273.7 705.7 558.1 Total $ 2,026.9 $ 1,226.1 $ 3,874.3 $ 3,009.9 Net sales by product category are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Knees $ 665.6 $ 375.0 $ 1,279.9 $ 1,003.7 Hips 474.6 329.7 921.6 762.3 S.E.T. 462.1 292.7 879.7 673.6 Dental & Spine 263.5 152.3 509.5 371.8 Other 161.1 76.4 283.6 198.5 Total $ 2,026.9 $ 1,226.1 $ 3,874.3 $ 3,009.9 In the first quarter of 2021, we updated our product category revenue reporting. Product category sales include the following changes: • Orthopedic robotic capital sales and services, previously reported in the Knee product category, are included in the Other product category; • Disposable products used in computer-assisted surgeries, previously reported in the Other product category, are included in the Knees product category; • CMFT (Craniomaxillofacial and Thoracic) products, previously reported in the Dental, Spine & CMFT category, are included in the S.E.T. (Sports Medicine, Extremities and Trauma) product category; • CMFT has been removed from the Dental, Spine & CMFT product category and the name has been changed to Dental & Spine to reflect the revenue related to the spin off of SpinCo; • Office based technologies products, previously reported in the Other product category, are included in the Dental & Spine product category; • Other immaterial adjustments across product categories related to brand alignment. Prior period product category sales have been reclassified to conform to the current presentation. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 4. Restructuring In December 2019, our Board of Directors approved, and we initiated, a new global restructuring program (the “2019 Restructuring Plan”) with an objective of reducing costs to allow us to further invest in higher priority growth opportunities. The 2019 Restructuring Plan is expected to result in total pre-tax restructuring charges of approximately $350 million to $400 million and reduce gross annual pre-tax operating expenses by approximately $200 million to $300 million by the end of 2023 as program benefits are realized. The pre-tax restructuring charges consist of employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management and relocation costs. The restructuring charges incurred in the three and six-month periods ended June 30, 2021 primarily related to employee termination benefits, distributor contract terminations, consulting and project management. The following table summarizes the liabilities recognized related to the 2019 Restructuring Plan (in millions): Employee Termination Contract Benefits Terminations Other Total Expenses incurred in the three months ended June 30, 2021 $ 1.8 $ 1.5 $ 12.0 $ 15.3 Balance, December 31, 2020 $ 38.7 $ 10.9 $ 15.1 $ 64.7 Expenses incurred in the six months ended June 30, 2021 3.4 6.8 24.1 34.3 Cash payments (8.5 ) (3.6 ) (17.7 ) (29.8 ) Foreign currency exchange rate changes (0.7 ) - - (0.7 ) Balance, June 30, 2021 $ 32.9 $ 14.1 $ 21.5 $ 68.5 Expense incurred since the start of the 2019 Restructuring Plan $ 81.9 $ 22.6 $ 74.3 $ 178.8 Expense estimated to be recognized for the 2019 Restructuring Plan $ 180.0 $ 25.0 $ 170.0 $ 375.0 For the expense estimated to be recognized for the 2019 Restructuring Plan, we have disclosed the midpoint in our estimated range of expenses. We do not include restructuring charges in the operating profit of our reportable segments. In our condensed consolidated statement of earnings, we report restructuring charges in our “Restructuring and other cost reduction initiatives” financial statement line item. We report the expenses for other cost reduction initiatives with restructuring expenses because these activities also have the goal of reducing costs across the organization. However, since the cost reduction initiative expenses are not considered restructuring, they have been excluded from the amounts presented in this note. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. June 30, December 31, 2021 2020 (in millions) Finished goods $ 2,024.0 $ 1,954.6 Work in progress 229.5 223.7 Raw materials 279.5 272.4 Inventories $ 2,533.0 $ 2,450.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment June 30, December 31, 2021 2020 (in millions) Land $ 27.5 $ 27.7 Buildings and equipment 2,266.4 2,197.8 Capitalized software costs 450.9 455.8 Instruments 3,668.3 3,518.3 Construction in progress 110.0 125.3 6,523.1 6,324.9 Accumulated depreciation (4,517.9 ) (4,277.2 ) Property, plant and equipment, net $ 2,005.2 $ 2,047.7 We had $19.5 million and $24.4 million of property, plant and equipment included in accounts payable as of June 30, 2021 and December 31, 2020, respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 7. Acquisitions In the fourth quarter of 2020, we completed the acquisitions of A&E Medical Corporation (“A&E Medical”), a sternal closure company, and Relign Corp. (“Relign”), an arthroscopy equipment company (collectively referred to as the “2020 acquisitions”). The 2020 acquisitions were completed primarily to expand our product offerings in the CMFT and sports medicine markets. The total aggregate cash consideration paid in 2020 related to the 2020 acquisitions was $244.9 million, with an additional $145.0 million of guaranteed deferred payments to be made in the second half of 2021. We have assigned a fair value of $31.3 million for potential additional payments as of the acquisition dates related to these acquisitions that are contingent on the respective acquired companies’ future product sales. The estimated fair value of the aggregate contingent payment liabilities was calculated based on the probability of achieving the specified sales growth and discounting to present value the estimated payments. The goodwill related to the 2020 acquisitions represents the excess of the consideration transferred over the fair value of the net assets acquired. The goodwill related to the 2020 acquisitions is generated from the operational synergies and cross-selling opportunities we expect to achieve from the technologies acquired. None of the goodwill related to these acquisitions is expected to be deductible for tax purposes. The purchase price allocations as of June 30, 2021 are preliminary. We need additional time to finalize the acquired companies’ tax returns and evaluate their tax attributes, which may change the recognized tax assets and liabilities. There may be differences between the preliminary estimates of fair value and the final acquisition accounting. The final estimates of fair value are expected to be completed as soon as possible, but no later than one year after the respective acquisition dates. The following table summarizes the aggregate preliminary estimates of fair value of the assets acquired and liabilities assumed related to the 2020 acquisitions (in millions): Current assets $ 33.6 Intangible assets subject to amortization: Technology 147.9 Trademarks and trade names 1.5 Customer relationships 92.7 Other 4.9 Goodwill 189.9 Other assets 5.4 Total assets acquired 475.9 Current liabilities 4.5 Deferred income taxes 48.5 Other long-term liabilities 1.7 Total liabilities assumed 54.7 Net assets acquired $ 421.2 In the six-month period ended June 30, 2021 we adjusted the preliminary fair values that were recognized as of December 31, 2020. The adjustments primarily related to the customer relationships intangible asset and the related deferred income tax liability as we refined our estimates by analyzing historical purchasing patterns of existing customers. The adjustment did not result in a significant change to intangible asset amortization expense recognized in the six-month period ended June 30, 2021 that would have been recognized in the previous period if the adjustment were recognized as of the acquisition date. There were no significant adjustments during the three-month period ended June 30, 2021. The weighted average amortization period selected for technology, trademarks and trade names, customer relationships and other intangible assets were 13 years, 12 years, 15 years and 5 years, respectively. We have not included pro forma information and certain other information under GAAP for the 2020 acquisitions because they did not have a material impact on our financial position or results of operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets The following table summarizes the changes in the carrying amount of goodwill by reportable segment, including the effects of changes to our reportable segments (in millions): Americas Orthopedics EMEA Asia Pacific Americas Spine and Global Dental Total Balance at December 31, 2020 Goodwill $ 9,583.7 $ 1,362.9 $ 580.8 $ - $ 11,527.4 Accumulated impairment losses (1,228.6 ) (1,037.0 ) - - (2,265.6 ) $ 8,355.1 $ 325.9 $ 580.8 $ - $ 9,261.8 Goodwill reportable segment change (1,491.3 ) - - 1,491.3 - Accumulated impairment losses reportable segment change 1,220.9 - - (1,220.9 ) - Purchase accounting adjustments 21.1 5.2 2.3 - 28.6 Other acquisitions 2.4 - - - 2.4 Currency translation (29.3 ) (7.6 ) (9.0 ) 0.7 (45.2 ) Balance at June 30, 2021 Goodwill $ 8,086.6 $ 1,360.5 $ 574.1 $ 1,492.0 $ 11,513.2 Accumulated impairment losses (7.7 ) (1,037.0 ) - (1,220.9 ) (2,265.6 ) $ 8,078.9 $ 323.5 $ 574.1 $ 271.1 $ 9,247.6 As discussed further in Note 16, our operating and reportable segments have changed. Goodwill has been reallocated from our previous reportable segments to reflect the new structure. However, our reporting units have not changed. The Americas Spine and Global Dental reporting units are now assigned to the new Americas Spine and Global Dental reportable segment. As of March 31, 2020, we tested three of our reporting units for impairment due to: i) the significant adverse effect the COVID-19 pandemic was expected to have on our operating results, and ii) a change in reportable segments in the first quarter of 2020, which changed the cash flows and asset compositions of certain reporting units. This resulted in goodwill impairment charges of $470.0 million and $ million recognized for our reporting unit and Global Dental reporting unit, respectively. The remaining two reporting units with goodwill assigned to them were not tested for impairment as we concluded it is more likely than not the fair value of these reporting units exceeds their carrying value. The goodwill balance related to the Americas Spine reporting unit was already fully impaired. The impairment charge of $470.0 million in our EMEA reporting unit was due to the COVID-19 pandemic and reportable segment change. The COVID-19 pandemic has had a significant adverse effect on both the operational and non-operational assumptions used to estimate the fair value of our EMEA reporting unit. The significant decline in our share price and that of most other publicly-traded companies resulted in us utilizing a higher risk-adjusted discount rate compared to the rate used in our 2019 annual goodwill impairment test to discount our future estimated cash flows to present value. On an operational basis, due to the deferral of elective surgical procedures, at the time of the March 31, 2020 impairment test, we estimated cash flows in 2020 to be significantly lower than previously estimated in the 2019 annual goodwill impairment test. The change in reportable segments resulted in additional impairment due to additional assets being allocated to the EMEA reporting unit. As of June 30, 2021, $323.5 million of goodwill remains in the EMEA reporting unit. The impairment charge of $142.0 million in our Global Dental reporting unit was driven by the COVID-19 pandemic. Similar to our EMEA reporting unit, changes in the market caused an increase to the risk-adjusted discount rates utilized to discount our future estimated cash flows to present value, and we expected that the deferral of elective dental procedures would have an adverse effect on our cash flows. We estimated the cash flows from our Global Dental reporting unit may recover more slowly than our other reporting units because many dental procedures are not covered by insurance. Therefore, we estimated economic uncertainty would likely result in patients deferring dental procedures for a longer period of time than procedures involving our other products. As of June 30, 2021, $271.1 million of goodwill remains in the Global Dental reporting unit. The third reporting unit we tested for impairment, Americas CMFT, had an estimated fair value that exceeded its carrying value by less than 5 percent. The Americas CMFT reporting unit’s estimated fair value was also adversely impacted by the COVID-19 pandemic similar to our EMEA and Global Dental reporting units. We estimated the fair value of the EMEA, Global Dental and Americas CMFT reporting units based on income and market approaches. Fair value under the income approach was determined by discounting to present value the estimated future cash flows of the reporting unit. Fair value under the market approach utilized the guideline public company methodology, which uses valuation indicators from publicly-traded companies that are similar to our EMEA, Global Dental and Americas CMFT reporting units and considers differences between our reporting unit and the comparable companies. In estimating the future cash flows of the reporting units, we utilized a combination of market and company-specific inputs that a market participant would use in assessing the fair value of the reporting units. The primary market input was revenue growth rates. These rates were based upon historical trends and estimated future growth drivers such as an aging global population, obesity and more active lifestyles. The impact of declining revenue from the COVID-19 pandemic was included in the future cash flows. Significant company specific inputs included assumptions regarding how the reporting units could leverage operating expenses as revenue grows and the impact any of our differentiated products or new products will have on revenues. Under the guideline public company methodology, we took into consideration specific risk differences between our reporting unit and the comparable companies, such as recent financial performance, size risks and product portfolios, among other considerations. We perform our annual test of goodwill impairment in the fourth quarter of every year. In connection with the 2020 annual goodwill impairment test in the fourth quarter of 2020, we performed a qualitative test on our Asia Pacific reporting unit and concluded it was more likely than not the fair value of this reporting unit exceeded its carrying value. We estimated the fair value of our Americas Orthopedics, Americas CMFT, EMEA and Global Dental reporting units using the income and market approaches. The estimated fair values of our reporting units increased in the fourth quarter impairment test compared to the March 31, 2020 test due to the negative effects on discounted cash flows from the COVID-19 pandemic forecasted for second and third quarters of 2020 no longer being in the future cash flow estimates. As a result, the estimated fair value of each reporting unit exceeded its carrying value by more than 10 percent. We will continue to monitor the fair value of our EMEA, Global Dental and Americas CMFT reporting units as well as our other two reporting units in our interim and annual reporting periods. If our estimated cash flows for these reporting units decrease, we may have to record further impairment charges in the future. Factors that could result in our cash flows being lower than our current estimates include: 1) the COVID-19 pandemic causes elective surgical procedures to be deferred longer than our estimates, or additional recurrence of the virus causes hospitals to defer elective surgical procedures, 2) decreased revenues caused by unforeseen changes in the healthcare market, or our inability to generate new product revenue from our research and development activities, and 3) our inability to achieve the estimated operating margins in our forecasts due to unforeseen factors. Additionally, changes in the broader economic environment could cause changes to our estimated discount rates and comparable company valuation indicators, which may impact our estimated fair values. In the three and six-month periods ended June 30, 2021 and 2020, we recognized $16.3 million and $33.0 million, respectively, of in-process research and development (“IPR&D”) intangible asset impairments on certain IPR&D projects. The $16.3 million impairment charge in 2021 is related to a terminated project. The $33.0 million charge in 2020 includes a $19.0 million impairment related to a project that required additional research and development costs to complete, which delayed the cash inflows and resulted in a decreased estimated fair value. The remaining $14.0 million impairment charge in 2020 is related to terminated projects. The termination of these projects is the result of obstacles encountered to achieve regulatory approval or prioritizing our internal research and development portfolio to focus our engineering resources on the opportunities that most closely link to our mission. Since these projects had a low probability of success or were not a priority, their terminations are not expected to have a significant impact on our future cash flows |
Transfers of Financial Assets
Transfers of Financial Assets | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing [Abstract] | |
Transfers of Financial Assets | 9. Transfers of Financial Assets We have receivables purchase arrangements with unrelated third parties to liquidate portions of our trade accounts receivable balance. The receivables relate to products sold to customers and are short-term in nature. The factorings are treated as sales of our accounts receivable. Proceeds from the transfers reflect either the face value of the accounts receivable or the face value less factoring fees. We terminated our programs in the U.S. and Japan in the fourth quarter of 2020. We acted as the collection agent on behalf of the third party, but had no significant retained interests or servicing liabilities related to the accounts receivable sold. As of December 31, 2020, we had collected and remitted or repurchased all factored receivables at the time of the termination of those programs in 2020. In Europe, we sell to a third party and have no continuing involvement or significant risk with the factored accounts receivable. Funds received from the transfers are recorded as an increase to cash and a reduction to accounts receivable outstanding in the condensed consolidated balance sheets. We report the cash flows attributable to the sale of receivables to third parties in cash flows from operating activities in our condensed consolidated statements of cash flows. Net expenses resulting from the sales of receivables are recognized in selling, general and administrative expense. Net expenses include any resulting gains or losses from the sales of receivables, credit insurance and factoring fees. In the six-month periods ended June 30, 2021 and 2020, we sold receivables having an aggregate face value of $70.2 million and $980.9 million to third parties in exchange for cash proceeds of $69.7 million and $979.9 million, respectively. Expenses recognized on these sales during the six-month periods ended June 30, 2021 and 2020 were not significant. In the six-month period ended June 30, 2020, under the U.S. and Japan programs, we collected $885.8 million from our customers and remitted that amount to the third party, and we effectively repurchased $84.1 million of previously sold accounts receivable from the third party, due to the programs’ revolving nature. The initial collection of cash from customers and its remittance to the third party is reflected in net cash provided by/(used in) financing activities in our condensed consolidated statements of cash flows. No |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Our debt consisted of the following (in millions): June 30, December 31, 2021 2020 Current portion of long-term debt 3.375% Senior Notes due 2021 $ 300.0 $ 300.0 3.150% Senior Notes due 2022 750.0 - Floating Rate Notes due 2021 - 200.0 Total current portion of long-term debt $ 1,050.0 $ 500.0 Long-term debt 3.150% Senior Notes due 2022 $ - $ 750.0 3.700% Senior Notes due 2023 300.0 300.0 3.550% Senior Notes due 2025 2,000.0 2,000.0 3.050% Senior Notes due 2026 600.0 600.0 3.550% Senior Notes due 2030 900.0 900.0 4.250% Senior Notes due 2035 253.4 253.4 5.750% Senior Notes due 2039 317.8 317.8 4.450% Senior Notes due 2045 395.4 395.4 1.414% Euro Notes due 2022 593.0 611.8 2.425% Euro Notes due 2026 593.0 611.8 1.164% Euro Notes due 2027 593.0 611.8 Japan Term Loan A 105.3 113.3 Japan Term Loan B 191.8 206.3 Debt discount and issuance costs (41.7 ) (48.2 ) Adjustment related to interest rate swaps 1.5 3.1 Total long-term debt $ 6,802.5 $ 7,626.5 At June 30, 2021, our total current and non-current debt of $7.9 billion consisted of In the six-month period ended June 30, 2021, we repaid $200.0 million on our Floating Rate Notes due 2021. On March 20, 2020, we completed the offering of $600.0 million aggregate principal amount of our 3.050% senior notes due on January 15, 2026 and $900.0 million aggregate principal amount of our 3.550% senior notes due on March 20, 2030. Interest payable on the 3.050% senior notes is payable semi-annually, commencing on July 15, 2020 until maturity. Interest payable on the 3.550% senior notes is payable semi-annually, commencing on September 20, 2020 until maturity. The proceeds from the offering, together with cash on hand, were used to repay at maturity the $1.5 billion principal amount of 2.700% senior notes due on April 1, 2020. We have a revolving credit agreement (the “2019 Credit Agreement”), which contains a five-year Borrowings under the 2019 Credit Agreement generally bear interest at floating rates. We pay a facility fee on the aggregate amount of the 2019 Multicurrency Revolving Facility. The 2019 Credit Agreement contains customary affirmative and negative covenants and events of default for unsecured financing arrangements, including, among other things, limitations on consolidations, mergers, and sales of assets. On April 23, 2020, we entered into an amendment to the 2019 Credit Agreement to temporarily increase the maximum permitted consolidated indebtedness to consolidated EBITDA ratio (“Consolidated Leverage Ratio”), temporarily increase the interest rate margin applicable to revolving loans and the facility fee, and make other administrative changes. Pursuant to the amendment, the maximum permitted Consolidated Leverage Ratio as of the last day of any period of four consecutive fiscal quarters under the 2019 Credit Agreement is (i) 5.75 to 1.00 for periods ending between April 1, 2020 and including December 31, 2020, (ii) 5.00 to 1.00 for the period ending March 31, 2021, and (iii) 4.50 to 1.00 for periods ending after April 1, 2021 (with such maximum permitted Consolidated Leverage Ratio subject to increase to 5.00 to 1.00 for a period of time in connection with a qualified material acquisition on or after July 1, 2021). We were in compliance with all covenants under the 2019 Credit Agreement as of June 30, 2021. The amendment also increased the interest rate margin applicable to revolving loans and the facility fee, each of which are determined by reference to our senior unsecured long-term debt credit rating, through June 30, 2021. On February 26, 2021, we entered into a further amendment to the 2019 Credit Agreement to facilitate the addition of a new lender while maintaining the amount of the credit facility at $1.5 billion and incorporating certain administrative changes. On April 23, 2020, we entered into a revolving credit agreement which was an unsecured revolving credit facility of $1.0 billion (the “April 2020 Revolving Facility”). In conjunction with a new revolving credit agreement (the “September 2020 Credit Agreement”) entered into on September 18, 2020, the April 2020 Revolving Facility was terminated. We never borrowed against the April 2020 Revolving Facility. The September 2020 Credit Agreement is a $1.0 billion 364-day unsecured revolving credit facility (the “September 2020 Revolving Facility”). The September 2020 Revolving Facility will be used for general corporate purposes. The September 2020 Credit Agreement matures on September 17, 2021. Borrowings under the September 2020 Credit Agreement generally bear interest at floating rates. We pay a facility fee on the aggregate amount of the September 2020 Revolving Facility. The September 2020 Credit Agreement 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. The September 2020 Credit Agreement requires us to maintain a Consolidated Leverage Ratio as of the last day of any period of four consecutive fiscal quarters of no greater than (i) 5.75 to 1.00 for periods ending during the period from September 18, 2020 to and including December 31, 2020, (ii) 5.00 to 1.00 for the period ending March 31, 2021, and (iii) 4.50 to 1.00 for periods ending after April 1, 2021 (with such permitted Consolidated Leverage Ratio subject to increase to 5.00 to 1.00 for a period of time in connection with a qualified material acquisition on or after July 1, 2021). We were in compliance with all covenants under the September 2020 Credit Agreement, as of June 30, 2021. As of June 30, 2021, there were no outstanding borrowings under the September 2020 Credit Agreement. The estimated fair value of our senior notes as of June 30, 2021, based on quoted prices for the specific securities from transactions in over-the-counter markets (Level 2), was $8,238.2 million. The estimated fair value of Japan Term Loan A and Japan Term Loan B, in the aggregate, as of June 30, 2021, based upon publicly available market yield curves and the terms of the debt (Level 2), was $296.5 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 11. Accumulated Other Comprehensive Income Accumulated other comprehensive income (loss) (“AOCI”) 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 AOCI may be reclassified to net earnings upon the occurrence of certain events. Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges and unrecognized prior service costs and gains and losses in actuarial assumptions related to 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. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan. The following table shows the changes in the components of AOCI gains (losses), net of tax (in millions): Foreign Cash Defined Currency Flow Benefit Total Translation Hedges Plan Items AOCI Balance at December 31, 2020 $ (7.2 ) $ (55.6 ) $ (235.0 ) $ (297.8 ) AOCI before reclassifications (32.7 ) 42.1 - 9.4 Reclassifications to statements of earnings - 1.8 (0.4 ) 1.4 Balance at June 30, 2021 $ (39.9 ) $ (11.7 ) $ (235.4 ) $ (287.0 ) The following table shows the reclassification adjustments from AOCI (in millions): Amount of Gain (Loss) Reclassified from AOCI Three Months Ended Six Months Ended June 30, June 30, Location on Component of AOCI 2021 2020 2021 2020 Statements of Earnings Cash flow hedges Foreign exchange forward contracts $ (2.6 ) $ 15.1 $ (1.5 ) $ 30.7 Cost of products sold Forward starting interest rate swaps (0.2 ) (0.1 ) (0.3 ) (0.3 ) Interest expense, net (2.8 ) 15.0 (1.8 ) 30.4 Total before tax (0.5 ) 1.9 - 3.8 Provision (benefit) for income taxes $ (2.3 ) $ 13.1 $ (1.8 ) $ 26.6 Net of tax Defined benefit plans Prior service cost and unrecognized actuarial gain (loss) $ 1.8 $ (1.7 ) $ 0.3 $ (3.4 ) Other income, net 0.6 0.4 (0.1 ) (1.6 ) Provision (benefit) for income taxes $ 1.2 $ (2.1 ) $ 0.4 $ (1.8 ) Net of tax Total reclassifications $ (1.1 ) $ 11.0 $ (1.4 ) $ 24.8 Net of tax The following table shows the tax effects on each component of AOCI recognized in our condensed consolidated statements of comprehensive income (loss) (in millions): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency cumulative translation adjustments $ (18.2 ) $ (4.6 ) $ (13.6 ) $ (17.6 ) $ 15.1 $ (32.7 ) Unrealized cash flow hedge gains 0.4 (1.8 ) 2.2 47.9 5.8 42.1 Reclassification adjustments on cash flow hedges 2.8 0.5 2.3 1.8 - 1.8 Adjustments to prior service cost and unrecognized actuarial assumptions (1.8 ) (0.6 ) (1.2 ) (0.3 ) 0.1 (0.4 ) Total Other Comprehensive (Loss) Income $ (16.8 ) $ (6.5 ) $ (10.3 ) $ 31.8 $ 21.0 $ 10.8 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency cumulative translation adjustments $ 4.3 $ (18.7 ) $ 23.0 $ (24.9 ) $ 6.3 $ (31.2 ) Unrealized cash flow hedge (losses) gains (27.6 ) (4.9 ) (22.7 ) 38.1 6.0 32.1 Reclassification adjustments on cash flow hedges (15.0 ) (1.9 ) (13.1 ) (30.4 ) (3.8 ) (26.6 ) Adjustments to prior service cost and unrecognized actuarial assumptions 1.7 (0.4 ) 2.1 3.4 1.6 1.8 Total Other Comprehensive Loss $ (36.6 ) $ (25.9 ) $ (10.7 ) $ (13.8 ) $ 10.1 $ (23.9 ) |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | 12. Fair Value Measurement of Assets and Liabilities The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): As of June 30, 2021 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedging, current and long-term Foreign currency forward contracts $ 15.9 $ - $ 15.9 $ - Cross-currency interest rate swaps 4.7 - 4.7 - Interest rate swaps 0.8 - 0.8 - Total Assets $ 21.4 $ - $ 21.4 $ - Liabilities Derivatives designated as hedging, current and long-term Foreign currency forward contracts $ 12.1 $ - $ 12.1 $ - Cross-currency interest rate swaps 13.4 - 13.4 - Interest rate swaps 0.7 - 0.7 - Contingent payments related to acquisitions 43.1 - - 43.1 Total Liabilities $ 69.3 $ - $ 26.2 $ 43.1 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.5 $ - $ 0.5 $ - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 0.9 - 0.9 - Total Assets $ 1.4 $ - $ 1.4 $ - Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 48.5 $ - $ 48.5 $ - Cross-currency interest rate swaps 83.3 - 83.3 - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 3.2 - 3.2 - Contingent payments related to acquisitions 48.2 - - 48.2 Total Liabilities $ 183.2 $ - $ 135.0 $ 48.2 We value our foreign currency forward contracts using a market approach based on foreign currency exchange rates obtained from active markets, and we perform ongoing assessments of counterparty credit risk. We value our interest rate swaps using a market approach based on publicly available market yield curves and the terms of our swaps, and we perform ongoing assessments of counterparty credit risk. The valuation of the cross-currency interest rate swaps also includes consideration of foreign currency exchange rates. Contingent payments related to acquisitions consist of sales-based payments, and are valued using discounted cash flow techniques. The fair value of sales-based payments is based upon probability-weighted future revenue estimates, and increases as revenue estimates increase. See Note 7 for additional information regarding contingent payments related to acquisitions. The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) (in millions): Level 3 - Liabilities Contingent payments related to acquisitions Beginning balance December 31, 2020 $ 48.2 Change in estimate 2.0 Settlements (6.8 ) Foreign currency impact (0.3 ) Ending balance June 30, 2021 $ 43.1 Changes in estimates for contingent payments related to acquisitions are recognized in Acquisition, integration, divestiture and related expenses on our condensed consolidated statements of earnings. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 13. Derivative Instruments and Hedging Activities We are exposed to certain market risks relating to our ongoing business operations, including foreign currency exchange rate risk, commodity price risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risks that we manage through the use of derivative instruments are interest rate risk and foreign currency exchange rate risk. Interest Rate Risk Derivatives Designated as Fair Value Hedges We currently use fixed-to-variable interest rate swaps to manage our exposure to interest rate risk from our cash investments and debt portfolio. 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. In June 2021, we entered into $1 billion of fixed-to-variable interest rate swaps that we have designated as fair value hedges of $1 billion of our fixed rate debt obligations. In prior years, we entered into various fixed-to-variable interest rate swap agreements that were accounted for as fair value hedges of our senior notes due 2021. In August 2016, we received cash for these interest rate swap assets by terminating the hedging instruments with the counterparties. The remaining unamortized balance as of June 30, 2021 related to these discontinued hedges was $1.4 million, which will be recognized using the effective interest rate method over the remaining maturity period of the hedged notes. As of June 30, 2021 and December 31, 2020, the following amounts were recorded on our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in millions): Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities Balance Sheet Line Item June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Current portion of long-term debt $ 301.4 $ 303.0 $ 1.4 $ 3.1 Long-term debt 995.7 - 0.1 - Derivatives Designated as Cash Flow Hedges In 2014, we entered into forward starting interest rate swaps that were designated as cash flow hedges of our thirty-year 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 with major financial institutions. We also designated our Euro Notes as net investment hedges of investments in foreign subsidiaries. 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, Indian Rupees, Turkish Lira, Polish Zloty, Danish Krone, and Norwegian Krone. We do not use derivative financial instruments for trading or speculative purposes. Derivatives Designated as Net Investment Hedges We are exposed to the impact of foreign exchange rate fluctuations in the investments in our wholly-owned foreign subsidiaries that are denominated in currencies other than the U.S. Dollar. In order to mitigate the volatility in foreign exchange rates, we issued Euro Notes in December 2016 and November 2019 and designated 100 percent of the Euro Notes to hedge our net investment in certain wholly-owned foreign subsidiaries that have a functional currency of the Euro. All changes in the fair value of a hedging instrument designated as a net investment hedge are recorded as a component of AOCI in the condensed consolidated balance sheets. At June 30, 2021, we had receive-fixed-rate, pay-fixed-rate cross-currency interest swaps with notional amounts outstanding of Euro 775 million, Japanese Yen 7 billion and Swiss Franc 50 million. These transactions further hedge our net investment in certain wholly-owned foreign subsidiaries that have a functional currency of Euro, Japanese Yen and Swiss Franc. All changes in the fair value of a derivative instrument designated as a net investment hedge are recorded as a component of AOCI in the condensed consolidated balance sheets. The portion of this change related to the excluded component will be amortized into earnings over the life of the derivative while the remainder will be recorded in AOCI until the hedged net investment is sold or substantially liquidated. We recognize the excluded component in interest expense, net on our condensed consolidated statements of earnings. The net cash received related to the receive-fixed-rate, pay-fixed-rate component of the cross-currency interest rate swaps is reflected in investing cash flows in our condensed consolidated statements of cash flows. In the six -month period ended June 30 , 2021, Euro 675 million of these cross-currency interest rate swaps matured at a loss of $ 37.1 million. The settlement of this loss with the counterparties is reflected in investing cash flows in our condensed consolidated statements of cash flows and will remain in AOCI on our condensed consolidated balance sheet until the hedged net investment is sold or substantially liquidated. 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. 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 confirming 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 gains and losses are temporarily recorded in AOCI and then recognized in cost of products sold when the hedged item affects net earnings. On our condensed consolidated statements 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 June 30, 2021, 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, Indian Rupees, Polish Zloty, Danish Krone, and Norwegian Krone and obligations to purchase Swiss Francs and sell U.S. Dollars. These derivatives mature at dates ranging from July 2021 through December 2023. As of June 30, 2021, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase U.S. Dollars were $1,459.1 million. As of June 30, 2021, the notional amounts of outstanding forward contracts and options entered into with third parties to purchase Swiss Francs were $324.0 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 re-measurement gains/losses recognized in earnings are generally offset with gains/losses on the foreign currency forward exchange contracts in the same reporting period. The net amount of these offsetting gains/losses is recorded in other expense, net. 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 $1.5 billion to $2.0 billion per quarter. Income Statement Presentation Derivatives Designated as Cash Flow Hedges Derivative instruments designated as cash flow hedges had the following effects, before taxes, on AOCI and net earnings on our condensed consolidated statements of earnings, condensed consolidated statements of comprehensive income (loss) and condensed consolidated balance sheets (in millions): Amount of Gain (Loss) Amount of Gain (Loss) Recognized in AOCI Reclassified from AOCI Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, Location on June 30, June 30, Derivative Instrument 2021 2020 2021 2020 Statements of Earnings 2021 2020 2021 2020 Foreign exchange forward contracts $ 0.4 $ (27.6 ) $ 47.9 $ 38.1 Cost of products sold $ (2.6 ) $ 15.1 $ (1.5 ) $ 30.7 Forward starting interest rate swaps - - - - Interest expense, net (0.2 ) (0.1 ) (0.3 ) (0.3 ) $ 0.4 $ (27.6 ) $ 47.9 $ 38.1 $ (2.8 ) $ 15.0 $ (1.8 ) $ 30.4 The fair value of outstanding derivative instruments designated as cash flow hedges and recorded on our condensed consolidated balance sheet at June 30, 2021, together with settled derivatives where the hedged item has not yet affected earnings, was a net unrealized loss of $20.4 million, or $11.7 million after taxes, which is deferred in AOCI. A loss of $4.4 million, or $4.0 million after taxes, is expected to be reclassified to earnings in cost of products sold and a loss of $0.6 million, or $0.5 million after taxes, is expected to be reclassified to earnings in interest expense, net over the next twelve months. The following table presents the effect of fair value, cash flow and net investment hedge accounting on our condensed consolidated statements of earnings (in millions): Location and Amount of Gain/(Loss) Recognized in Income on Fair Value, Cash Flow and Net Investment Hedging Relationships for the Period Ended: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Cost of Interest Cost of Interest Cost of Interest Cost of Interest Products Expense, Products Expense, Products Expense, Products Expense, Sold Net Sold Net Sold Net Sold Net Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded $ 581.6 $ (54.7 ) $ 424.5 $ (54.0 ) $ 1,098.0 $ (107.0 ) $ 911.6 $ (104.9 ) The effects of fair value, cash flow and net investment hedging: Gain on fair value hedging relationships Discontinued interest rate swaps - 0.8 - 0.8 - 1.7 - 1.7 Gain (loss) on cash flow hedging relationships Foreign exchange forward contracts (2.6 ) - 15.1 - (1.5 ) - 30.7 - Forward starting interest rate swaps - (0.2 ) - (0.1 ) - (0.3 ) - (0.3 ) Gain on net investment hedging relationships Cross-currency interest rate swaps - 10.4 - 13.4 - 23.8 - 26.8 Derivatives Not Designated as Hedging Instruments The following (losses)/gains from these derivative instruments were recognized on our condensed consolidated statements of earnings (in millions): Three Months Ended Six Months Ended Location on June 30, June 30, Derivative Instrument Statements of Earnings 2021 2020 2021 2020 Foreign exchange forward contracts Other expense, net $ (1.4 ) $ (7.7 ) $ (7.7 ) $ 15.4 These (losses)/gains do not reflect offsetting gains of $0.9 million in the three-month period ended June 30, 2021, offsetting gains of $1.6 million in the three-month period ended June 30, 2020, offsetting gains of $4.3 million in the six-month period ended June 30, 2021, and offsetting losses of $21.9 million in the six-month period ended June 30, 2020, recognized in other income, net as a result of foreign currency re-measurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency. Balance Sheet Presentation As of June 30, 2021 and December 31, 2020, all derivatives designated as fair value hedges, cash flow hedges and net investment hedges are recorded at fair value on our condensed consolidated balance sheets. On our condensed consolidated balance sheets, we recognize individual forward contracts with the same counterparty on a net asset/liability basis if we have a master netting agreement with the counterparty. Under these master netting agreements, we are able to settle derivative instrument assets and liabilities with the same counterparty in a single transaction, instead of settling each derivative instrument separately. We have master netting agreements with all of our counterparties. The fair value of derivative instruments on a gross basis is as follows (in millions): As of June 30, 2021 As of December 31, 2020 Balance Balance Sheet Fair Sheet Fair Location Value Location Value Asset Derivatives Designated as Hedges Foreign exchange forward contracts Other current assets $ 22.0 Other current assets $ 12.2 Cross-currency interest rate swaps Other current assets 0.5 Other current assets - Foreign exchange forward contracts Other assets 13.8 Other assets 3.7 Cross-currency interest rate swaps Other assets 4.2 Other assets - Interest rate swaps Other assets 0.8 Other assets - Total asset derivatives $ 41.3 $ 15.9 Asset Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current assets $ - Other current assets $ 1.5 Liability Derivatives Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 23.1 Other current liabilities $ 37.4 Cross-currency interest rate swaps Other current liabilities 8.3 Other current liabilities 55.0 Foreign exchange forward contracts Other long-term liabilities 8.9 Other long-term liabilities 26.5 Cross-currency interest rate swaps Other long-term liabilities 5.1 Other long-term liabilities 28.3 Interest rate swaps Other long-term liabilities 0.7 Other long-term liabilities - Total liability derivatives $ 46.1 $ 147.2 Liability Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current liabilities $ - Other current liabilities $ 3.8 The table below presents the effects of our master netting agreements on our condensed consolidated balance sheets (in millions): As of June 30, 2021 As of December 31, 2020 Description Location Gross Amount Offset Net Amount in Balance Sheet Gross Amount Offset Net Amount in Balance Sheet Asset Derivatives Cash flow hedges Other current assets $ 22.0 $ 13.6 $ 8.4 $ 12.2 $ 11.7 $ 0.5 Cash flow hedges Other assets 13.8 6.3 7.5 3.7 3.7 - Derivatives Not Designated as Hedges Other current assets - - - 1.5 0.6 0.9 Liability Derivatives Cash flow hedges Other current liabilities 23.1 13.6 9.5 37.4 11.7 25.7 Cash flow hedges Other long-term liabilities 8.9 6.3 2.6 26.5 3.7 22.8 Derivatives Not Designated as Hedges Other current liabilities - - - 3.8 0.6 3.2 The following net investment hedge gains (losses) were recognized on our condensed consolidated statements of comprehensive income (loss) (in millions): Amount of Gain (Loss) Recognized in AOCI Three Months Ended Six Months Ended June 30, June 30, Derivative Instrument 2021 2020 2021 2020 Euro Notes $ (15.9 ) $ (39.0 ) $ 56.4 $ (0.9 ) Cross-currency interest rate swaps (28.1 ) (41.6 ) 37.5 28.1 $ (44.0 ) $ (80.6 ) $ 93.9 $ 27.2 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes We operate on a global basis and are subject to numerous and complex tax laws and regulations. Additionally, tax laws continue to undergo rapid changes in both application and interpretation by various countries, including state aid interpretations and initiatives led by the Organization for Economic Cooperation and Development. Our income tax filings are subject to examinations by taxing authorities throughout the world. 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. Although ultimate timing is uncertain, 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. Management’s best estimate of such change is within the range of a $250 million decrease to a $20 million increase. We are under continuous audit by the IRS and other taxing authorities. During the course of these audits, we receive proposed adjustments from taxing authorities that may be material. Therefore, there is a possibility that an adverse outcome in these audits could have a material effect on our results of operations and financial condition. Our U.S. Federal income tax returns have been audited through 2015 and are currently under audit for years 2016-2019. In October 2020, we reached agreement with the IRS for tax years 2006-2012 related to the reallocation of profits between the U.S. and Puerto Rico as well as other miscellaneous adjustments. The IRS has proposed adjustments for tax years 2010-2012, primarily related to reallocating profits between certain of our U.S. and foreign subsidiaries, which remain unsettled. We have disputed these adjustments and intend to continue to vigorously defend our positions as we pursue resolution through the administrative process with the IRS Independent Office of Appeals. The IRS has proposed adjustments for tax years 2013-2015 relating to transfer pricing involving our cost sharing agreement between the U.S. and Switzerland affiliated companies and reallocating profits between certain of our U.S. and foreign subsidiaries. This includes a proposed increase to our U.S. Federal taxable income, which would result in additional tax expense related to 2013 of approximately $370 million, subject to interest and penalties related to our cost sharing agreement. We strongly believe that the position of the IRS, with regard to this matter, is inconsistent with the applicable U.S. Treasury regulations governing our cost sharing agreement. We do not expect changes to our reserves relative to these matters within the next twelve months. We intend to vigorously contest the adjustment, and we will pursue all available administrative and, if necessary, judicial remedies. If we pursue judicial remedies in the U.S. Tax Court for years 2013-2015, a number of years will likely elapse before such matters are finally resolved. No payment of any amount related to this matter is required to be made, if at all, until all applicable proceedings have been completed. A public referendum held in Switzerland passed the Federal Act on Tax Reform and AHV Financing (“TRAF”), effective January 1, 2020. The TRAF provides transitional relief measures for companies that are losing the tax benefit of a ruling, including a "step-up" for amortizable goodwill, equal to the amount of future tax benefit they would have received under their existing ruling, subject to certain limitations. This resulted in the recording of a deferred tax asset for future deductions of tax goodwill. For the six -month period ended June 30 , 2021, we recognized benefits of $ 10.0 million related to certain adjustments to the estimated net deferred tax asset from the filing of tax returns . In the three and six-month periods ended June 30, 2021, our effective tax rate (“ETR”) was 18.0 percent and 13.8 percent, respectively, compared to 6.2 percent and 1.2 percent in the three and six-month periods ended June 30, 2020, respectively. The 18.0 percent ETR in the three-month period ended June 30, 2021, was primarily due to our mix of earnings between U.S. and foreign locations. The 13.8 percent ETR in the six-month period ended June 30, 2021, was the result of favorable discrete adjustments from the filing of Swiss tax returns and an excess tax benefit related to stock-based compensation. The 6.2 percent ETR in the three-month period ended June 30, 2020, was the result of the mix of some of our jurisdictions recognizing earnings while others had losses. The 1.2 percent ETR in the six-month period ended June 30, 2020, was primarily due to the $612.0 million goodwill impairment charge, which resulted in a loss before taxes, but has no corresponding tax benefit, as well as the mix of earnings and losses among our jurisdictions. Absent discrete tax events, we expect our future ETR will be lower than the U.S. corporate income tax rate of 21.0 percent due to our mix of earnings between U.S. and foreign locations, which have lower corporate income tax rates. Our ETR in future periods could also potentially be impacted by: changes in our mix of pre-tax earnings; changes in tax rates, tax laws or their interpretation; the outcome of various federal, state and foreign audits; and the expiration of certain statutes of limitations. Currently, we cannot reasonably estimate the impact of these items on our financial results. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share The following is a reconciliation of weighted average shares for the basic and diluted shares computations (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted average shares outstanding for basic net earnings (loss) per share 208.6 206.8 208.3 206.6 Effect of dilutive stock options and other equity awards 2.1 - 2.1 - Weighted average shares outstanding for diluted net earnings (loss) per share 210.7 206.8 210.4 206.6 During each of the three and six-month periods ended June 30, 2021, an average of Since we incurred a net loss in the three and six-month periods ended June 30, 2020, no dilutive stock options or other equity awards were included as diluted shares |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, craniomaxillofacial and thoracic products (“CMFT”); office based technologies; dental implants; and related surgical products. Our chief operating decision maker (“CODM”) allocates resources to achieve our operating profit goals through four operating segments. These operating segments, which also constitute our reportable segments, are Americas Orthopedics; EMEA; Asia Pacific; and Americas Spine and Global Dental. As a result of changes to our organizational structure in advance of the planned spin off of SpinCo that were effective April 1, 2021, we added an additional operating segment to reflect a change in how our CODM allocates resources to achieve our operating profit goals. The new operating segment consists of the Americas Spine and Global Dental businesses, which was carved out of the previous Americas and Global Businesses operating segment (subsequently renamed to Americas Orthopedics). The EMEA and Asia Pacific operating segments still include the spine product category results in those regions and therefore did not change. Additionally, starting April 1, 2021 the financial information provided to the CODM from the Americas Orthopedics excluded certain costs related to operations, distribution, quality assurance and regulatory assurance that had previously been reported within this segment. This group of functions and related costs do not meet the criteria to be a separate operating segment and are now reported within Corporate functions. We have reclassified previously reported information related to the change in operating segments and Corporate functions, along with other insignificant changes, to conform to the new presentation. Our CODM evaluates performance based upon segment operating profit exclusive of operating expenses pertaining to inventory and manufacturing-related charges, intangible asset amortization, goodwill and intangible asset impairment, restructuring and other cost reduction initiatives, quality remediation, acquisition, integration, divestiture and related, litigation, certain European Union Medical Device Regulation (“EU MDR”) expenses, certain R&D agreements, other charges and corporate functions. Corporate functions include corporate legal, finance, information technology, human resources and other corporate departments as well as certain operations, distribution, quality assurance and regulatory assurance expenses. Intercompany transactions have been eliminated from segment operating profit. Our Americas Orthopedics operating segment is comprised principally of the U.S. and includes other North, Central and South American markets for our orthopedic product categories. This segment also includes research, development engineering, medical education, and brand management for our orthopedic product category headquarter locations. Our EMEA operating segment is comprised principally of Europe and includes the Middle East and African markets for all product categories except Dental. Our Asia Pacific operating segment is comprised principally of Japan, China and Australia and includes other Asian and Pacific markets for all product categories except Dental. The EMEA and Asia Pacific operating segments include the commercial operations as well as regional headquarter expenses to operate in those markets. The Americas Spine and Global Dental segment is comprised principally of the U.S. and includes other North, Central and South American markets for our spine business, and all geographic markets for our dental business. This segment also includes research, development engineering, medical education and brand management at the product category headquarter locations as well as other directly attributable distribution and operations expenses. Since the Americas Orthopedics segment includes additional costs related to centralized orthopedic product category headquarter expenses, profitability metrics in this operating segment are not comparable to the EMEA and Asia Pacific operating segments. Similarly, since the Americas Spine and Global Dental segment also includes research, development engineering, medical education, and brand management at the product category headquarter locations as well as other directly attributable distribution and operations expenses, its profitability metrics are not comparable to the other operating segments. Our CODM does not review asset information by operating segment. Instead, our CODM reviews cash flow and other financial ratios by operating segment. Net sales and operating profit by segment are as follows (in millions): Net Sales Operating Profit (Loss) Three Months Ended Three Months Ended June 30, June 30, 2021 2020 2021 2020 Americas Orthopedics $ 1,058.3 $ 626.5 $ 445.4 $ 203.7 EMEA 392.9 204.1 95.2 20.1 Asia Pacific 345.7 264.5 111.4 78.4 Americas Spine and Global Dental 230.0 131.0 40.1 (3.4 ) Total $ 2,026.9 $ 1,226.1 Corporate Functions (162.0 ) (229.0 ) Inventory and manufacturing-related charges (7.9 ) (1.4 ) Intangible asset amortization (154.6 ) (147.7 ) Goodwill and intangible asset impairment (16.3 ) (33.0 ) Restructuring and other cost reduction initiatives (19.7 ) (28.0 ) Quality remediation (11.0 ) (9.9 ) Acquisition, integration, divestiture and related (25.4 ) (2.2 ) Litigation (3.6 ) (1.3 ) European Union Medical Device Regulation (10.6 ) (6.1 ) Certain R&D agreements (65.0 ) - Other charges 4.5 (11.9 ) Operating profit (loss) $ 220.5 $ (171.7 ) Net Sales Operating Profit (Loss) Six Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Americas Orthopedics $ 2,004.5 $ 1,569.5 $ 832.5 $ 607.0 EMEA 742.0 575.4 181.5 128.9 Asia Pacific 682.6 540.4 231.7 171.0 Americas Spine and Global Dental 445.2 324.6 79.1 22.5 Total $ 3,874.3 $ 3,009.9 Corporate Functions (318.4 ) (393.4 ) Inventory and manufacturing-related charges (2.0 ) (2.0 ) Intangible asset amortization (310.1 ) (295.3 ) Goodwill and intangible asset impairment (16.3 ) (645.0 ) Restructuring and other cost reduction initiatives (41.6 ) (73.0 ) Quality remediation (21.2 ) (25.8 ) Acquisition, integration, divestiture and related (38.8 ) (6.6 ) Litigation (9.7 ) (81.1 ) European Union Medical Device Regulation (17.5 ) (17.1 ) Certain R&D agreements (65.0 ) - Other charges 1.9 (17.8 ) Operating profit (loss) $ 486.1 $ (627.7 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. 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 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 the majority 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 ( ). Litigation activity in the MDL is stayed pending finalization of the U.S. Durom Cup Settlement Program, an extrajudicial program created to resolve actions and claims of eligible U.S. plaintiffs and claimants. Other lawsuits are pending in various domestic and foreign jurisdictions, and additional claims may be asserted in the future. The majority of claims outside the U.S. are pending in Germany, Netherlands and Italy. Our estimate as of June 30, 2021 of the remaining liability for all Durom Cup-related claims, including estimated legal fees, is $47.9 million. 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. Although we are vigorously defending these lawsuits, their ultimate resolution is uncertain. Zimmer M/L Taper, M/L Taper with Kinectiv Technology, and Versys Femoral Head-related claims (“Metal Reaction” claims): We are a defendant in a number of product liability lawsuits relating to our M/L Taper and M/L Taper with Kinectiv Technology hip stems, and Versys Femoral Head implants. The plaintiffs seek damages for personal injury, alleging that defects in the products lead to corrosion at the head/stem junction resulting in, among other things, pain, inflammation and revision surgery. The majority of the cases are consolidated in an MDL that was created on October 3, 2018 in the U.S. District Court for the Southern District of New York ( In Re: Zimmer M/L Taper Hip Prosthesis or M/L Taper Hip Prosthesis with Kinectiv Technology and Versys Femoral Head Products Liability Litigation $49.2 million. Although we are vigorously defending these lawsuits, their ultimate resolution is uncertain. Biomet metal-on-metal hip implant claims : Biomet is a defendant in a number of product liability lawsuits relating to metal-on-metal hip implants, most of which involve the M2a-Magnum hip system. Cases are currently consolidated in an MDL in the U.S. District Court for the Northern District of Indiana and in various state, federal and foreign courts, with the majority of domestic state court cases pending in Indiana and Florida. On February 3, 2014, Biomet announced the settlement of the MDL. Lawsuits filed in the MDL by April 15, 2014 were eligible to participate in the settlement. Those claims that did not settle via the MDL settlement program have re-commenced litigation in the MDL under a new case management plan, or have been or are in the process of being remanded to their originating jurisdictions. The settlement does not affect certain other claims relating to Biomet’s metal-on-metal hip products that are pending in various state and foreign courts, or other claims that may be filed in the future. Trials have commenced, and other trials are currently scheduled to occur in the future. Although each case will be tried on its particular facts, a verdict and subsequent final judgment for the plaintiff in one or more of these cases could have a substantial impact on our potential liability. Our estimate as of June 30, 2021 of the remaining liability for all Biomet metal-on-metal hip implant claims, including estimated legal fees, is Although we are vigorously defending these lawsuits, their ultimate resolution is uncertain. Heraeus trade secret misappropriation lawsuits: In December 2008, Heraeus Kulzer GmbH (together with its affiliates, “Heraeus”) initiated legal proceedings in Germany against Biomet, Inc., Biomet Europe BV (now Zimmer Biomet Nederland BV), certain other entities and certain employees alleging that the defendants misappropriated Heraeus trade secrets when developing Biomet Europe’s Refobacin and Biomet Bone Cement line of cements (“European Cements”). The lawsuit sought to preclude the defendants from producing, marketing and offering for sale their then-current line of European Cements and to compensate Heraeus for any damages incurred. Germany: On June 5, 2014, the German appeals court in Frankfurt (i) enjoined Biomet, Inc., Biomet Europe BV and Biomet Deutschland GmbH from manufacturing, selling or offering the European Cements to the extent they contain certain raw materials in particular specifications; (ii) held the defendants jointly and severally liable to Heraeus for any damages from the sale of European Cements since 2005; and (iii) ruled that no further review may be sought (the “Frankfurt Decision”). The Heraeus and Biomet parties both sought appeal against the Frankfurt Decision. In a decision dated June 16, 2016, the German Supreme Court dismissed the parties’ appeals without reaching the merits, rendering that decision final. In December 2016, Heraeus filed papers to restart proceedings against Biomet Orthopaedics Switzerland GmbH (now Zimmer GmbH), seeking to require that entity to relinquish its CE certificates for the European Cements. In January 2017, Heraeus notified Biomet it had filed a claim for damages in the amount of for sales in Germany, which it first increased to 125.9 . In a court filing, Heraeus indicated that it might further increase its claims in the course of the proceedings. As of June 30, 2021, these two proceedings remained pending in front of the Darmstadt court. In September 2017, Heraeus filed an enforcement action in the Darmstadt court against Biomet Europe (now Zimmer Biomet Nederland B.V.), requesting that a fine be imposed against Biomet Europe for failure to disclose the amount of the European Cements which Biomet Orthopaedics Switzerland had ordered to be manufactured in Germany (e.g., for the Chinese market). In June 2018, the Darmstadt court dismissed Heraeus’ request. Heraeus appealed the decision. The appeal remained pending as of June 30, 2021. Also in September 2017, Heraeus filed suit against Zimmer Biomet Deutschland in the court of first instance in Freiburg concerning the sale of the European Cements with certain changed raw materials. Heraeus sought an injunction on the basis that the continued use of the product names for the European Cements was misleading for customers and thus an act of unfair competition. On June 29, 2018, the court in Freiburg, Germany dismissed Heraeus’ request for an injunction prohibiting the marketing of the European Cements under their current names on the grounds that the same request had already been decided upon by the Frankfurt Decision which became final and binding. Heraeus appealed this decision to the Court of Appeals in Karlsruhe, Germany. The appeals hearing occurred in December 2019 and on June 19, 2020, the court dismissed the appeal on different grounds, namely that the appeals court did not find any unfair competition in the continued use of the product names. Although the appeals court did not grant leave to appeal, Heraeus had initially filed a request for appeal with the German Supreme Court, but it withdrew that request in November 2020. United States: en banc On December 7, 2017, Heraeus filed a complaint against Zimmer Biomet Holdings, Inc. and Biomet, Inc. in the U.S. District Court for the Eastern District of Pennsylvania alleging a single claim of trade secret misappropriation under the Pennsylvania Uniform Trade Secrets Act based on the same factual allegations as the Esschem litigation. On March 5, 2018, Heraeus filed an amended complaint adding a second claim of trade secret misappropriation under Pennsylvania common law. Heraeus seeks to enjoin the Zimmer Biomet parties from future use of the allegedly misappropriated trade secrets and recovery of unspecified damages for alleged past use. On April 18, 2018, the Zimmer Biomet parties filed a motion to dismiss both claims. On March 8, 2019, the court stayed the case pending the Third Circuit’s decision in the Esschem case described above. In September 2019, the Zimmer Biomet parties filed a motion to stay the proceedings pending (1) the court’s decision on Esschem’s motion for summary judgment in the Esschem case described above and (2) the outcome of a U.S. International Trade Commission (“ITC”) complaint filed by Heraeus asserting similar claims. On May 2, 2020, the court granted the Zimmer Biomet parties’ motion to stay the proceedings pending the outcome of the ITC complaint filed by Heraeus. The related ITC investigation is complete. In June 2021, Heraeus filed a motion to lift the stay of proceedings and attached a draft motion for preliminary injunction enjoining Zimmer Biomet from continuing to manufacture and sell its bone cements. As of June 30, 2021, the court has not dissolved the stay. Although we are vigorously defending this lawsuit, the ultimate outcome is uncertain. An adverse ruling in this case could have a material adverse effect on our business, financial condition and results of operations. Other European Countries: Heraeus continues to pursue other related legal proceedings in Europe seeking various forms of relief, including injunctive relief and damages, against various Biomet-related and local Zimmer Biomet entities relating to the European Cements, including those described herein. On October 2, 2018, the Belgian Court of Appeal of Mons issued a judgment in favor of Heraeus relating to its request for past damages caused by the alleged misappropriation of its trade secrets, and an injunction preventing future sales of certain European Cements in Belgium (the “Belgian Decision”). We appealed this judgment to the Belgian Supreme Court. The Belgian Supreme Court dismissed our appeal in October 2019 and this decision is final. Proceedings to assess the amount of damages potentially owed to Heraeus under the Belgian Decision remain pending. Heraeus filed a suit in Belgium concerning the continued sale of the European Cements with certain changed materials. Like its former suit in Germany, Heraeus seeks an injunction on the basis that the continued use of the product names for the European Cements is misleading for customers and thus an act of unfair competition. On May 7, 2019, the Liège Commercial Court issued a judgment that Zimmer Biomet failed to inform its hospital and surgeon customers of the changes made to the composition of the cement with certain changed materials and ordered, as a sole remedy, that Zimmer Biomet send letters to those customers, which we have done. An appeals hearing took place on January 13, 2021. On February 10, 2021, the court of appeals dismissed the appeals of Heraeus and Zimmer Biomet, which ended the unfair competition proceedings regarding the continued use of the product names. In November 2020, Heraeus also initiated proceedings in Belgium seeking an injunction and damages related to the distribution of the European Cements in the revised formulation. Heraeus claims that the revised formulation still misappropriates its alleged trade secrets. The proceedings are pending, and a decision is not expected in 2021. On February 13, 2019, a Norwegian court of first instance issued a judgment in favor of Heraeus on its claim for misappropriation of trade secrets. The court awarded damages of 19,500,000 NOK, or approximately $ million, plus attorneys’ fees, and issued an injunction, which was never enforced, preventing Zimmer Biomet Norway from marketing in Norway bone cements identified with the current product names and bone cements making use of the trade secrets which were acknowledged in the Frankfurt Decision. We appealed the Norwegian judgment to the court of second instance and an appeals trial was held in March 2021. On April 30, 2021, the appeals court in Norway found in favor of Zimmer Biomet and reversed the decision of the court of first instance. The appeals court ruled that Heraeus did not substantiate that the alleged trade secrets were useful and thus did not qualify as trade secrets, and additionally determined that the alleged trade secrets were not actually used or misappropriated. Heraeus sought leave to appeal to the Norwegian supreme court, which the court denied on July 13, 2021. The decision of the appeals court in favor of Zimmer Biomet is now final. On October 29, 2019, an Italian court of first instance issued a judgment in favor of Heraeus on its claim of misappropriation of trade secrets, but did not yet order an award of damages. We filed a timely appeal of the decision and the appellate hearing took place on May 27, 2021. On July 19, 2021, the court of appeals reopened the case and ordered the appointment of a technical expert so it can ascertain whether the trade secrets enforced by Heraeus are secret according to the law and have been protected by adequate protective measures. Heraeus has not initiated damages proceedings, but could do so in the future based on the non-final first instance decision. On January 23, 2020, a Finnish Market Court issued a judgment partly in favor of Heraeus on its claim of misappropriation of certain trade secrets. Damage claims were not raised in the proceedings. We appealed the decision to the Finnish Supreme Court. On July 3, 2020, the Finnish Supreme Court declined to review the case, rendering the Market Court decision final. In March 2021, Heraeus initiated damages proceedings, claiming damages of €13.84 million, or approximately $16.6 million. Heraeus is pursuing damages and injunctive relief in France in an effort to prevent us from manufacturing, marketing and selling the European Cements (the “France Litigation”). The European Cements are manufactured at our facility in Valence, France. On December 11, 2018, a hearing was held in the France Litigation before the commercial court in Romans-sur-Isère. On May 23, 2019, the commercial court ruled in our favor. On July 12, 2019, Heraeus filed an appeal to the court of second instance in Grenoble, France. Although we are vigorously defending the France Litigation, the ultimate outcome is uncertain. An adverse ruling in the France Litigation could have a material adverse effect on our business, financial condition and results of operations. We have accrued an estimated loss relating to the collective trade secret litigation, including estimated legal costs to defend. Damages relating to the Frankfurt Decision are subject to separate proceedings, and the German and Belgian courts appointed experts to determine the amount of damages related to the Frankfurt and Belgian Decisions, respectively. Thus, it is reasonably possible that our estimate of the loss we may incur may change in the future. Although we are vigorously defending these lawsuits, their ultimate resolution is uncertain. Shareholder Derivative Actions : On June 14, 2019 and July 29, 2019, two shareholder derivative actions, Green v. Begley et al. and Detectives Endowment Association Annuity Fund v. Begley et al. , were filed in the Court of Chancery in the State of Delaware. On October 2, 2019 and October 11, 2019, two additional shareholder derivative actions, Karp v. Begley et al. and DiGaudio v. Begley et al. , were filed in the U.S. District Court for the District of Delaware. The plaintiff in each action seeks to maintain the action purportedly on our behalf against certain of our current and former directors and officers (the “individual defendants”) and certain former stockholders of ours who sold shares of our common stock in various secondary public offerings in 2016 (the “private equity fund defendants”). The plaintiff in each action alleges, among other things, breaches of fiduciary duties against the individual defendants and insider trading against two individual defendants and the private equity fund defendants based on factual allegations that the defendants violated federal securities laws by making materially false and/or misleading statements and/or omissions about our compliance with U.S. Food and Drug Administration (“FDA”) regulations and our ability to continue to accelerate our organic revenue growth rate in the second half of 2016. On June 4, 2020, the plaintiffs in the Chancery Court actions filed a consolidated amended complaint adding three new counts and expanding the scope of the alleged materially false statements. On September 14, 2020, the defendants filed motions to dismiss the Chancery Court actions. Oral argument occurred on June 15, 2021. A decision is expected in late 2021. Also on September 14, 2020, the plaintiffs in the U.S. District Court actions filed a consolidated amended complaint adding certain details to their allegations. On October 9, 2020, the U.S. District Court granted the parties’ joint motion to stay the U.S. District Court actions pending resolution of the motions to dismiss the Chancery Court actions. The plaintiffs in the Chancery Court and the U.S. District Court actions do not seek damages from us, but instead request damages on our behalf from the defendants of an unspecified amount, as well as attorneys’ fees, costs and other relief. Regulatory Matters, Government Investigations and Other Matters U.S. International Trade Commission Investigation: On March 5, 2019, Heraeus filed a complaint with the ITC against us and certain of our subsidiaries. The complaint alleges that Biomet misappropriated Heraeus’ trade secrets in the formulation and manufacture of two bone cement products now sold by Zimmer Biomet, both of which are imported from our Valence, France facility. Heraeus requested that the ITC institute an investigation and, after the investigation, issue a limited exclusion order and cease and desist orders. On April 5, 2019, the ITC ordered an investigation be instituted into whether we have committed an “unfair act” in the importation, sale for importation, or sale after importation of certain bone cement products, the threat or effect of which is to destroy or substantially injure an industry in the United States, in violation of Section 337 of the Tariff Act of 1930, as amended (“Section 337”). An evidentiary hearing in front of an administrative law judge at the ITC was held in January 2020 and an Initial Determination was issued on May 6, 2020. In the Initial Determination, the administrative law judge held that we did not violate Section 337, and thus we are not restricted from continuing to manufacture and sell the two challenged bone cement products in the United States. On July 13, 2020, the ITC issued a notice of intent to review the Initial Determination and on January 12, 2021 it issued a Final Determination which affirmed the Initial Determination with modifications and terminated the investigation with a finding of no violation of Section 337. Heraeus did not appeal the Final Determination. FDA warning letter : In August 2018, we received a warning letter from the FDA related to observed non-conformities with current good manufacturing practice requirements of the Quality System Regulation (21 CFR Part 820) (“QSR”) at our legacy Biomet manufacturing facility in Warsaw, Indiana (this facility is sometimes referred to in this report as the “Warsaw North Campus”). 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 Warsaw. As of June 30 , 202 1 , the Warsaw warning letter remained pending. Until the violations cited in the pending warning letter are corrected, we may be subject to additional regulatory action by the FDA, as described more fully below. Additionally, requests for Certificates to Foreign Governments may not be granted and premarket approval applications for Class III devices to which the QSR 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, including observations issued by the FDA following an inspection of the Warsaw North Campus in January 2020, which inspection the FDA has classified as Voluntary Action Indicated (“ VAI ”). The ultimate outcome of these matters is presently uncertain. Among other available regulatory actions, the FDA may impose operating restrictions, including a ceasing of operations, at one or more facilities, enjoining and restraining certain violations of applicable law pertaining to products, seizure of products and assessing civil or criminal penalties against our officers, employees or us. The FDA could also issue a corporate warning letter or a recidivist warning letter or negotiate the entry of a consent decree of permanent injunction with us. The FDA may also recommend prosecution by the U.S. Department of Justice . Any adverse regulatory action, depending on its magnitude, may restrict us from effectively manufacturing, marketing and selling our products and could have a material adverse effect on our business, financial condition and results of operations. Other Contingencies Contractual obligations: We have entered into development, distribution and other contractual arrangements that may result in future payments dependent upon various events such as the achievement of certain product R&D milestones, sales milestones, or, at our discretion, maintenance of exclusive rights to distribute a product. Since there is uncertainty on the timing or whether such payments will have to be made, they have not been recognized on our condensed consolidated balance sheets. These estimated payments could range from $0 to approximately $380 million. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates - The accompanying unaudited condensed consolidated financial statements are prepared in conformity with GAAP, which requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. We have made our best estimates, as appropriate under GAAP, in the recognition of our assets and liabilities. These estimates have considered the impact the COVID-19 pandemic may have on our financial position, results of operations and cash flows. Such estimates included, but were not limited to, variable consideration to our customers, our allowance for doubtful accounts for expected credit losses, the net realizable value of our inventory, the fair value of our goodwill and the recoverability of other long-lived assets. Actual results could differ materially from these estimates. |
Recent Accounting Pronouncements Policy Policy [Text Block] | Accounting Pronouncements Recently Adopted In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12 Simplifying the Accounting for Income Taxes. ASU 2019-12 eliminates certain exceptions in the rules regarding the approach for intraperiod tax allocations and the methodology for calculating income taxes in an interim period, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill, among other things. We adopted this standard as of January 1, 2021. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) . ASU 2020-04 provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. Early adoption of this ASU is permitted, and we may elect to apply the amendments prospectively through December 31, 2022. We are currently evaluating the impact this ASU will have on our financial statements. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition [Abstract] | |
Schedule of Net Sales by Geography | Net sales by geography are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Americas $ 1,239.6 $ 733.7 $ 2,354.6 $ 1,835.0 EMEA 429.8 218.7 814.0 616.8 Asia Pacific 357.5 273.7 705.7 558.1 Total $ 2,026.9 $ 1,226.1 $ 3,874.3 $ 3,009.9 |
Schedule of Net Sales by Product Category | Net sales by product category are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Knees $ 665.6 $ 375.0 $ 1,279.9 $ 1,003.7 Hips 474.6 329.7 921.6 762.3 S.E.T. 462.1 292.7 879.7 673.6 Dental & Spine 263.5 152.3 509.5 371.8 Other 161.1 76.4 283.6 198.5 Total $ 2,026.9 $ 1,226.1 $ 3,874.3 $ 3,009.9 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring And Related Activities [Abstract] | |
Summary of Liabilities Recognized Related to Restructuring Plan | The following table summarizes the liabilities recognized related to the 2019 Restructuring Plan (in millions): Employee Termination Contract Benefits Terminations Other Total Expenses incurred in the three months ended June 30, 2021 $ 1.8 $ 1.5 $ 12.0 $ 15.3 Balance, December 31, 2020 $ 38.7 $ 10.9 $ 15.1 $ 64.7 Expenses incurred in the six months ended June 30, 2021 3.4 6.8 24.1 34.3 Cash payments (8.5 ) (3.6 ) (17.7 ) (29.8 ) Foreign currency exchange rate changes (0.7 ) - - (0.7 ) Balance, June 30, 2021 $ 32.9 $ 14.1 $ 21.5 $ 68.5 Expense incurred since the start of the 2019 Restructuring Plan $ 81.9 $ 22.6 $ 74.3 $ 178.8 Expense estimated to be recognized for the 2019 Restructuring Plan $ 180.0 $ 25.0 $ 170.0 $ 375.0 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | June 30, December 31, 2021 2020 (in millions) Finished goods $ 2,024.0 $ 1,954.6 Work in progress 229.5 223.7 Raw materials 279.5 272.4 Inventories $ 2,533.0 $ 2,450.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | June 30, December 31, 2021 2020 (in millions) Land $ 27.5 $ 27.7 Buildings and equipment 2,266.4 2,197.8 Capitalized software costs 450.9 455.8 Instruments 3,668.3 3,518.3 Construction in progress 110.0 125.3 6,523.1 6,324.9 Accumulated depreciation (4,517.9 ) (4,277.2 ) Property, plant and equipment, net $ 2,005.2 $ 2,047.7 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
2020 Acquisitions [Member] | |
Summary of Aggregate Preliminary Estimates of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate preliminary estimates of fair value of the assets acquired and liabilities assumed related to the 2020 acquisitions (in millions): Current assets $ 33.6 Intangible assets subject to amortization: Technology 147.9 Trademarks and trade names 1.5 Customer relationships 92.7 Other 4.9 Goodwill 189.9 Other assets 5.4 Total assets acquired 475.9 Current liabilities 4.5 Deferred income taxes 48.5 Other long-term liabilities 1.7 Total liabilities assumed 54.7 Net assets acquired $ 421.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill by reportable segment, including the effects of changes to our reportable segments (in millions): Americas Orthopedics EMEA Asia Pacific Americas Spine and Global Dental Total Balance at December 31, 2020 Goodwill $ 9,583.7 $ 1,362.9 $ 580.8 $ - $ 11,527.4 Accumulated impairment losses (1,228.6 ) (1,037.0 ) - - (2,265.6 ) $ 8,355.1 $ 325.9 $ 580.8 $ - $ 9,261.8 Goodwill reportable segment change (1,491.3 ) - - 1,491.3 - Accumulated impairment losses reportable segment change 1,220.9 - - (1,220.9 ) - Purchase accounting adjustments 21.1 5.2 2.3 - 28.6 Other acquisitions 2.4 - - - 2.4 Currency translation (29.3 ) (7.6 ) (9.0 ) 0.7 (45.2 ) Balance at June 30, 2021 Goodwill $ 8,086.6 $ 1,360.5 $ 574.1 $ 1,492.0 $ 11,513.2 Accumulated impairment losses (7.7 ) (1,037.0 ) - (1,220.9 ) (2,265.6 ) $ 8,078.9 $ 323.5 $ 574.1 $ 271.1 $ 9,247.6 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Our debt consisted of the following (in millions): June 30, December 31, 2021 2020 Current portion of long-term debt 3.375% Senior Notes due 2021 $ 300.0 $ 300.0 3.150% Senior Notes due 2022 750.0 - Floating Rate Notes due 2021 - 200.0 Total current portion of long-term debt $ 1,050.0 $ 500.0 Long-term debt 3.150% Senior Notes due 2022 $ - $ 750.0 3.700% Senior Notes due 2023 300.0 300.0 3.550% Senior Notes due 2025 2,000.0 2,000.0 3.050% Senior Notes due 2026 600.0 600.0 3.550% Senior Notes due 2030 900.0 900.0 4.250% Senior Notes due 2035 253.4 253.4 5.750% Senior Notes due 2039 317.8 317.8 4.450% Senior Notes due 2045 395.4 395.4 1.414% Euro Notes due 2022 593.0 611.8 2.425% Euro Notes due 2026 593.0 611.8 1.164% Euro Notes due 2027 593.0 611.8 Japan Term Loan A 105.3 113.3 Japan Term Loan B 191.8 206.3 Debt discount and issuance costs (41.7 ) (48.2 ) Adjustment related to interest rate swaps 1.5 3.1 Total long-term debt $ 6,802.5 $ 7,626.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income, Net of Tax | The following table shows the changes in the components of AOCI gains (losses), net of tax (in millions): Foreign Cash Defined Currency Flow Benefit Total Translation Hedges Plan Items AOCI Balance at December 31, 2020 $ (7.2 ) $ (55.6 ) $ (235.0 ) $ (297.8 ) AOCI before reclassifications (32.7 ) 42.1 - 9.4 Reclassifications to statements of earnings - 1.8 (0.4 ) 1.4 Balance at June 30, 2021 $ (39.9 ) $ (11.7 ) $ (235.4 ) $ (287.0 ) |
Reclassification Adjustments from Accumulated Other Comprehensive Income | The following table shows the reclassification adjustments from AOCI (in millions): Amount of Gain (Loss) Reclassified from AOCI Three Months Ended Six Months Ended June 30, June 30, Location on Component of AOCI 2021 2020 2021 2020 Statements of Earnings Cash flow hedges Foreign exchange forward contracts $ (2.6 ) $ 15.1 $ (1.5 ) $ 30.7 Cost of products sold Forward starting interest rate swaps (0.2 ) (0.1 ) (0.3 ) (0.3 ) Interest expense, net (2.8 ) 15.0 (1.8 ) 30.4 Total before tax (0.5 ) 1.9 - 3.8 Provision (benefit) for income taxes $ (2.3 ) $ 13.1 $ (1.8 ) $ 26.6 Net of tax Defined benefit plans Prior service cost and unrecognized actuarial gain (loss) $ 1.8 $ (1.7 ) $ 0.3 $ (3.4 ) Other income, net 0.6 0.4 (0.1 ) (1.6 ) Provision (benefit) for income taxes $ 1.2 $ (2.1 ) $ 0.4 $ (1.8 ) Net of tax Total reclassifications $ (1.1 ) $ 11.0 $ (1.4 ) $ 24.8 Net of tax |
Tax Effects on Each Component of Accumulated Other Comprehensive Income Recognized in Statements of Comprehensive Income | The following table shows the tax effects on each component of AOCI recognized in our condensed consolidated statements of comprehensive income (loss) (in millions): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency cumulative translation adjustments $ (18.2 ) $ (4.6 ) $ (13.6 ) $ (17.6 ) $ 15.1 $ (32.7 ) Unrealized cash flow hedge gains 0.4 (1.8 ) 2.2 47.9 5.8 42.1 Reclassification adjustments on cash flow hedges 2.8 0.5 2.3 1.8 - 1.8 Adjustments to prior service cost and unrecognized actuarial assumptions (1.8 ) (0.6 ) (1.2 ) (0.3 ) 0.1 (0.4 ) Total Other Comprehensive (Loss) Income $ (16.8 ) $ (6.5 ) $ (10.3 ) $ 31.8 $ 21.0 $ 10.8 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Before Tax Tax Net of Tax Before Tax Tax Net of Tax Foreign currency cumulative translation adjustments $ 4.3 $ (18.7 ) $ 23.0 $ (24.9 ) $ 6.3 $ (31.2 ) Unrealized cash flow hedge (losses) gains (27.6 ) (4.9 ) (22.7 ) 38.1 6.0 32.1 Reclassification adjustments on cash flow hedges (15.0 ) (1.9 ) (13.1 ) (30.4 ) (3.8 ) (26.6 ) Adjustments to prior service cost and unrecognized actuarial assumptions 1.7 (0.4 ) 2.1 3.4 1.6 1.8 Total Other Comprehensive Loss $ (36.6 ) $ (25.9 ) $ (10.7 ) $ (13.8 ) $ 10.1 $ (23.9 ) |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): As of June 30, 2021 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedging, current and long-term Foreign currency forward contracts $ 15.9 $ - $ 15.9 $ - Cross-currency interest rate swaps 4.7 - 4.7 - Interest rate swaps 0.8 - 0.8 - Total Assets $ 21.4 $ - $ 21.4 $ - Liabilities Derivatives designated as hedging, current and long-term Foreign currency forward contracts $ 12.1 $ - $ 12.1 $ - Cross-currency interest rate swaps 13.4 - 13.4 - Interest rate swaps 0.7 - 0.7 - Contingent payments related to acquisitions 43.1 - - 43.1 Total Liabilities $ 69.3 $ - $ 26.2 $ 43.1 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.5 $ - $ 0.5 $ - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 0.9 - 0.9 - Total Assets $ 1.4 $ - $ 1.4 $ - Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 48.5 $ - $ 48.5 $ - Cross-currency interest rate swaps 83.3 - 83.3 - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 3.2 - 3.2 - Contingent payments related to acquisitions 48.2 - - 48.2 Total Liabilities $ 183.2 $ - $ 135.0 $ 48.2 |
Fair Value Liabilities Measured on Recurring Basis | The following table provides a reconciliation of the beginning and ending balances of items measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) (in millions): Level 3 - Liabilities Contingent payments related to acquisitions Beginning balance December 31, 2020 $ 48.2 Change in estimate 2.0 Settlements (6.8 ) Foreign currency impact (0.3 ) Ending balance June 30, 2021 $ 43.1 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Amounts Recorded On Balance Sheet Related To Cumulative Basis Adjustments For Fair Value Hedges | As of June 30, 2021 and December 31, 2020, the following amounts were recorded on our condensed consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in millions): Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities Balance Sheet Line Item June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Current portion of long-term debt $ 301.4 $ 303.0 $ 1.4 $ 3.1 Long-term debt 995.7 - 0.1 - |
Gross Unrealized Losses from Derivative Instruments | Derivative instruments designated as cash flow hedges had the following effects, before taxes, on AOCI and net earnings on our condensed consolidated statements of earnings, condensed consolidated statements of comprehensive income (loss) and condensed consolidated balance sheets (in millions): Amount of Gain (Loss) Amount of Gain (Loss) Recognized in AOCI Reclassified from AOCI Three Months Ended Six Months Ended Three Months Ended Six Months Ended June 30, June 30, Location on June 30, June 30, Derivative Instrument 2021 2020 2021 2020 Statements of Earnings 2021 2020 2021 2020 Foreign exchange forward contracts $ 0.4 $ (27.6 ) $ 47.9 $ 38.1 Cost of products sold $ (2.6 ) $ 15.1 $ (1.5 ) $ 30.7 Forward starting interest rate swaps - - - - Interest expense, net (0.2 ) (0.1 ) (0.3 ) (0.3 ) $ 0.4 $ (27.6 ) $ 47.9 $ 38.1 $ (2.8 ) $ 15.0 $ (1.8 ) $ 30.4 |
Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Consolidated Statements of Earnings | The following table presents the effect of fair value, cash flow and net investment hedge accounting on our condensed consolidated statements of earnings (in millions): Location and Amount of Gain/(Loss) Recognized in Income on Fair Value, Cash Flow and Net Investment Hedging Relationships for the Period Ended: Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Cost of Interest Cost of Interest Cost of Interest Cost of Interest Products Expense, Products Expense, Products Expense, Products Expense, Sold Net Sold Net Sold Net Sold Net Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded $ 581.6 $ (54.7 ) $ 424.5 $ (54.0 ) $ 1,098.0 $ (107.0 ) $ 911.6 $ (104.9 ) The effects of fair value, cash flow and net investment hedging: Gain on fair value hedging relationships Discontinued interest rate swaps - 0.8 - 0.8 - 1.7 - 1.7 Gain (loss) on cash flow hedging relationships Foreign exchange forward contracts (2.6 ) - 15.1 - (1.5 ) - 30.7 - Forward starting interest rate swaps - (0.2 ) - (0.1 ) - (0.3 ) - (0.3 ) Gain on net investment hedging relationships Cross-currency interest rate swaps - 10.4 - 13.4 - 23.8 - 26.8 |
Derivative Instruments Not Designated as Hedging Instruments | The following (losses)/gains from these derivative instruments were recognized on our condensed consolidated statements of earnings (in millions): Three Months Ended Six Months Ended Location on June 30, June 30, Derivative Instrument Statements of Earnings 2021 2020 2021 2020 Foreign exchange forward contracts Other expense, net $ (1.4 ) $ (7.7 ) $ (7.7 ) $ 15.4 |
Fair Value of Derivative Instruments on Gross Basis | The fair value of derivative instruments on a gross basis is as follows (in millions): As of June 30, 2021 As of December 31, 2020 Balance Balance Sheet Fair Sheet Fair Location Value Location Value Asset Derivatives Designated as Hedges Foreign exchange forward contracts Other current assets $ 22.0 Other current assets $ 12.2 Cross-currency interest rate swaps Other current assets 0.5 Other current assets - Foreign exchange forward contracts Other assets 13.8 Other assets 3.7 Cross-currency interest rate swaps Other assets 4.2 Other assets - Interest rate swaps Other assets 0.8 Other assets - Total asset derivatives $ 41.3 $ 15.9 Asset Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current assets $ - Other current assets $ 1.5 Liability Derivatives Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 23.1 Other current liabilities $ 37.4 Cross-currency interest rate swaps Other current liabilities 8.3 Other current liabilities 55.0 Foreign exchange forward contracts Other long-term liabilities 8.9 Other long-term liabilities 26.5 Cross-currency interest rate swaps Other long-term liabilities 5.1 Other long-term liabilities 28.3 Interest rate swaps Other long-term liabilities 0.7 Other long-term liabilities - Total liability derivatives $ 46.1 $ 147.2 Liability Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current liabilities $ - Other current liabilities $ 3.8 |
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): As of June 30, 2021 As of December 31, 2020 Description Location Gross Amount Offset Net Amount in Balance Sheet Gross Amount Offset Net Amount in Balance Sheet Asset Derivatives Cash flow hedges Other current assets $ 22.0 $ 13.6 $ 8.4 $ 12.2 $ 11.7 $ 0.5 Cash flow hedges Other assets 13.8 6.3 7.5 3.7 3.7 - Derivatives Not Designated as Hedges Other current assets - - - 1.5 0.6 0.9 Liability Derivatives Cash flow hedges Other current liabilities 23.1 13.6 9.5 37.4 11.7 25.7 Cash flow hedges Other long-term liabilities 8.9 6.3 2.6 26.5 3.7 22.8 Derivatives Not Designated as Hedges Other current liabilities - - - 3.8 0.6 3.2 |
Net Investment Hedge Gains Recognized on Condensed Consolidated Statements of Comprehensive Income (Loss) | The following net investment hedge gains (losses) were recognized on our condensed consolidated statements of comprehensive income (loss) (in millions): Amount of Gain (Loss) Recognized in AOCI Three Months Ended Six Months Ended June 30, June 30, Derivative Instrument 2021 2020 2021 2020 Euro Notes $ (15.9 ) $ (39.0 ) $ 56.4 $ (0.9 ) Cross-currency interest rate swaps (28.1 ) (41.6 ) 37.5 28.1 $ (44.0 ) $ (80.6 ) $ 93.9 $ 27.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Shares for Basic and Diluted Shares Computations | The following is a reconciliation of weighted average shares for the basic and diluted shares computations (in millions): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Weighted average shares outstanding for basic net earnings (loss) per share 208.6 206.8 208.3 206.6 Effect of dilutive stock options and other equity awards 2.1 - 2.1 - Weighted average shares outstanding for diluted net earnings (loss) per share 210.7 206.8 210.4 206.6 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Net sales and Operating Profit by Segment | Net sales and operating profit by segment are as follows (in millions): Net Sales Operating Profit (Loss) Three Months Ended Three Months Ended June 30, June 30, 2021 2020 2021 2020 Americas Orthopedics $ 1,058.3 $ 626.5 $ 445.4 $ 203.7 EMEA 392.9 204.1 95.2 20.1 Asia Pacific 345.7 264.5 111.4 78.4 Americas Spine and Global Dental 230.0 131.0 40.1 (3.4 ) Total $ 2,026.9 $ 1,226.1 Corporate Functions (162.0 ) (229.0 ) Inventory and manufacturing-related charges (7.9 ) (1.4 ) Intangible asset amortization (154.6 ) (147.7 ) Goodwill and intangible asset impairment (16.3 ) (33.0 ) Restructuring and other cost reduction initiatives (19.7 ) (28.0 ) Quality remediation (11.0 ) (9.9 ) Acquisition, integration, divestiture and related (25.4 ) (2.2 ) Litigation (3.6 ) (1.3 ) European Union Medical Device Regulation (10.6 ) (6.1 ) Certain R&D agreements (65.0 ) - Other charges 4.5 (11.9 ) Operating profit (loss) $ 220.5 $ (171.7 ) Net Sales Operating Profit (Loss) Six Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Americas Orthopedics $ 2,004.5 $ 1,569.5 $ 832.5 $ 607.0 EMEA 742.0 575.4 181.5 128.9 Asia Pacific 682.6 540.4 231.7 171.0 Americas Spine and Global Dental 445.2 324.6 79.1 22.5 Total $ 3,874.3 $ 3,009.9 Corporate Functions (318.4 ) (393.4 ) Inventory and manufacturing-related charges (2.0 ) (2.0 ) Intangible asset amortization (310.1 ) (295.3 ) Goodwill and intangible asset impairment (16.3 ) (645.0 ) Restructuring and other cost reduction initiatives (41.6 ) (73.0 ) Quality remediation (21.2 ) (25.8 ) Acquisition, integration, divestiture and related (38.8 ) (6.6 ) Litigation (9.7 ) (81.1 ) European Union Medical Device Regulation (17.5 ) (17.1 ) Certain R&D agreements (65.0 ) - Other charges 1.9 (17.8 ) Operating profit (loss) $ 486.1 $ (627.7 ) |
Revenue - Schedule of Net Sales
Revenue - Schedule of Net Sales by Geography (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Sales Information [Line Items] | ||||
Net Sales | $ 2,026.9 | $ 1,226.1 | $ 3,874.3 | $ 3,009.9 |
Americas [Member] | ||||
Sales Information [Line Items] | ||||
Net Sales | 1,239.6 | 733.7 | 2,354.6 | 1,835 |
EMEA [Member] | ||||
Sales Information [Line Items] | ||||
Net Sales | 429.8 | 218.7 | 814 | 616.8 |
Asia Pacific [Member] | ||||
Sales Information [Line Items] | ||||
Net Sales | $ 357.5 | $ 273.7 | $ 705.7 | $ 558.1 |
Revenue - Schedule of Net Sal_2
Revenue - Schedule of Net Sales by Product Category (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net Sales | $ 2,026.9 | $ 1,226.1 | $ 3,874.3 | $ 3,009.9 |
Knees [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net Sales | 665.6 | 375 | 1,279.9 | 1,003.7 |
Hips [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net Sales | 474.6 | 329.7 | 921.6 | 762.3 |
S.E.T [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net Sales | 462.1 | 292.7 | 879.7 | 673.6 |
Dental & Spine [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net Sales | 263.5 | 152.3 | 509.5 | 371.8 |
Other [Member] | ||||
Entity Wide Information Revenue From External Customer [Line Items] | ||||
Net Sales | $ 161.1 | $ 76.4 | $ 283.6 | $ 198.5 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - 2019 Restructuring Plan [Member] - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 375 | |
Minimum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 350 | |
Reduction in annual pre-tax operating expenses | $ 200 | |
Restructuring program benefits realized period | 2023 | |
Maximum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 400 | |
Reduction in annual pre-tax operating expenses | $ 300 |
Restructuring - Summary of Liab
Restructuring - Summary of Liabilities Recognized Related to Restructuring Plan (Detail) - 2019 Restructuring Plan [Member] $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Restructuring Cost And Reserve [Line Items] | ||
Expenses | $ 15.3 | $ 34.3 |
Beginning Balance | 64.7 | |
Cash payments | (29.8) | |
Foreign currency exchange rate changes | (0.7) | |
Ending Balance | 68.5 | 68.5 |
Expense incurred since the start of the 2019 Restructuring Plan | 178.8 | 178.8 |
Expense estimated to be recognized for the 2019 Restructuring Plan | 375 | 375 |
Employee Termination Benefits [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses | 1.8 | 3.4 |
Beginning Balance | 38.7 | |
Cash payments | (8.5) | |
Foreign currency exchange rate changes | (0.7) | |
Ending Balance | 32.9 | 32.9 |
Expense incurred since the start of the 2019 Restructuring Plan | 81.9 | 81.9 |
Expense estimated to be recognized for the 2019 Restructuring Plan | 180 | 180 |
Contract Termination [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses | 1.5 | 6.8 |
Beginning Balance | 10.9 | |
Cash payments | (3.6) | |
Ending Balance | 14.1 | 14.1 |
Expense incurred since the start of the 2019 Restructuring Plan | 22.6 | 22.6 |
Expense estimated to be recognized for the 2019 Restructuring Plan | 25 | 25 |
Other Restructuring [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Expenses | 12 | 24.1 |
Beginning Balance | 15.1 | |
Cash payments | (17.7) | |
Ending Balance | 21.5 | 21.5 |
Expense incurred since the start of the 2019 Restructuring Plan | 74.3 | 74.3 |
Expense estimated to be recognized for the 2019 Restructuring Plan | $ 170 | $ 170 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,024 | $ 1,954.6 |
Work in progress | 229.5 | 223.7 |
Raw materials | 279.5 | 272.4 |
Inventories | $ 2,533 | $ 2,450.7 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 6,523.1 | $ 6,324.9 |
Accumulated depreciation | (4,517.9) | (4,277.2) |
Property, plant and equipment, net | 2,005.2 | 2,047.7 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 27.5 | 27.7 |
Buildings And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,266.4 | 2,197.8 |
Capitalized Software Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 450.9 | 455.8 |
Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 3,668.3 | 3,518.3 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 110 | $ 125.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Property plant and equipment included in accounts payable | $ 19.5 | $ 24.4 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - 2020 Acquisitions [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Business Acquisition [Line Items] | |
Cash payments to acquire businesses | $ 244.9 |
Deferred business combination payments | 145 |
Contingent consideration | 31.3 |
Goodwill amount deductible for tax purpose | $ 0 |
Technology [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 13 years |
Trademarks and trade names [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 12 years |
Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 15 years |
Other [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 5 years |
Acquisitions - Summary of Aggre
Acquisitions - Summary of Aggregate Preliminary Estimates of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 9,247.6 | $ 9,261.8 |
2020 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Current assets | 33.6 | |
Goodwill | 189.9 | |
Other assets | 5.4 | |
Total assets acquired | 475.9 | |
Current liabilities | 4.5 | |
Deferred income taxes | 48.5 | |
Other long-term liabilities | 1.7 | |
Total liabilities assumed | 54.7 | |
Net assets acquired | 421.2 | |
Technology [Member] | 2020 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets subject to amortization: | 147.9 | |
Trademarks and trade names [Member] | 2020 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets subject to amortization: | 1.5 | |
Customer relationships [Member] | 2020 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets subject to amortization: | 92.7 | |
Other [Member] | 2020 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets subject to amortization: | $ 4.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | $ 11,527.4 |
Accumulated impairment losses, Beginning Balance | (2,265.6) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 9,261.8 |
Purchase accounting adjustments | 28.6 |
Other acquisitions | 2.4 |
Currency translation | (45.2) |
Goodwill, Ending Balance | 11,513.2 |
Accumulated impairment losses, Ending Balance | (2,265.6) |
Goodwill, net of accumulated impairment losses, Ending Balance | 9,247.6 |
Americas Orthopedics [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 9,583.7 |
Accumulated impairment losses, Beginning Balance | (1,228.6) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 8,355.1 |
Goodwill reportable segment change | (1,491.3) |
Accumulated impairment losses reportable segment change | 1,220.9 |
Purchase accounting adjustments | 21.1 |
Other acquisitions | 2.4 |
Currency translation | (29.3) |
Goodwill, Ending Balance | 8,086.6 |
Accumulated impairment losses, Ending Balance | (7.7) |
Goodwill, net of accumulated impairment losses, Ending Balance | 8,078.9 |
EMEA [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 1,362.9 |
Accumulated impairment losses, Beginning Balance | (1,037) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 325.9 |
Purchase accounting adjustments | 5.2 |
Currency translation | (7.6) |
Goodwill, Ending Balance | 1,360.5 |
Accumulated impairment losses, Ending Balance | (1,037) |
Goodwill, net of accumulated impairment losses, Ending Balance | 323.5 |
Asia Pacific [Member] | |
Goodwill [Line Items] | |
Goodwill, Beginning Balance | 580.8 |
Goodwill, net of accumulated impairment losses, Beginning Balance | 580.8 |
Purchase accounting adjustments | 2.3 |
Currency translation | (9) |
Goodwill, Ending Balance | 574.1 |
Goodwill, net of accumulated impairment losses, Ending Balance | 574.1 |
Americas Spine and Global Dental [Member] | |
Goodwill [Line Items] | |
Goodwill reportable segment change | 1,491.3 |
Accumulated impairment losses reportable segment change | (1,220.9) |
Currency translation | 0.7 |
Goodwill, Ending Balance | 1,492 |
Accumulated impairment losses, Ending Balance | (1,220.9) |
Goodwill, net of accumulated impairment losses, Ending Balance | $ 271.1 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Reporting units with goodwill assigned to them | 3 | |||||
Goodwill impairment | $ 612 | |||||
Goodwill | $ 9,247.6 | $ 9,247.6 | $ 9,261.8 | |||
In Process Research and Development [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Impairment of Intangible Assets, Finite-lived | 16.3 | $ 33 | 16.3 | 33 | ||
Decrease In Estimated Fair Value of In Process Research and Development [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Impairment of Intangible Assets, Finite-lived | 19 | 19 | ||||
Terminated In Process Research and Development [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Impairment of Intangible Assets, Finite-lived | 16.3 | $ 14 | 16.3 | 14 | ||
Dental [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | $ 142 | 142 | ||||
Goodwill | 271.1 | 271.1 | ||||
EMEA [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | 470 | 470 | ||||
Goodwill | $ 323.5 | $ 323.5 | $ 325.9 | |||
EMEA [Member] | Reportable Segment Change [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Goodwill impairment | $ 470 | $ 470 | ||||
America CMFT [Member] | ||||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||||
Reporting units with goodwill assigned to them | 2 | |||||
Percentage of fair value in excess of carrying amount | 5.00% | 5.00% |
Transfers of Financial Assets -
Transfers of Financial Assets - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Transfers And Servicing [Abstract] | |||
Aggregate face value of receivables sold | $ 980.9 | $ 70.2 | |
Cash proceeds from receivables | 979.9 | 69.7 | |
Proceeds from customers | 885.8 | ||
Repurchase of accounts receivables sold | $ 84.1 | ||
Proceeds from other current liabilities | $ 0 | $ 0 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Detail) $ in Millions, € in Billions, ¥ in Billions | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2021JPY (¥) | Dec. 31, 2020USD ($) | Mar. 20, 2020USD ($) |
Current portion of long-term debt | |||||
Current portion of long-term debt | $ 1,050 | $ 500 | |||
Long-term debt | |||||
Senior Notes due | 7,600 | ||||
Debt discount and issuance costs | (41.7) | (48.2) | |||
Adjustment related to interest rate swaps | 1.5 | 3.1 | |||
Total long-term debt | 6,802.5 | 7,626.5 | |||
Senior Notes [Member] | 3.375% [Member] | Due in 2021 [Member] | |||||
Current portion of long-term debt | |||||
Current portion of long-term debt | 300 | 300 | |||
Senior Notes [Member] | Three Point One Five Zero Percentage | Two Thousand Twenty Two | |||||
Current portion of long-term debt | |||||
Current portion of long-term debt | 750 | ||||
Long-term debt | |||||
Senior Notes due | 750 | ||||
Senior Notes [Member] | 3.700% [Member] | Due in 2023 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 300 | 300 | |||
Senior Notes [Member] | 3.550% [Member] | Due in 2025 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 2,000 | 2,000 | |||
Senior Notes [Member] | 3.550% [Member] | Due in 2030 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 900 | 900 | $ 900 | ||
Senior Notes [Member] | 3.050% [Member] | Due in 2026 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 600 | 600 | $ 600 | ||
Senior Notes [Member] | 4.250% [Member] | Due in 2035 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 253.4 | 253.4 | |||
Senior Notes [Member] | 5.750% [Member] | Due in 2039 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 317.8 | 317.8 | |||
Senior Notes [Member] | 4.450% [Member] | Due in 2045 [Member] | |||||
Long-term debt | |||||
Senior Notes due | 395.4 | 395.4 | |||
Floating Rate Notes [Member] | Due in 2021 [Member] | |||||
Current portion of long-term debt | |||||
Current portion of long-term debt | 200 | ||||
Euro Notes [Member] | |||||
Long-term debt | |||||
Term loan | € | € 1.8 | ||||
Euro Notes [Member] | 1.414% [Member] | Two Thousand Twenty Two | |||||
Long-term debt | |||||
Term loan | 593 | 611.8 | |||
Euro Notes [Member] | 1.164% [Member] | Due in 2027 [Member] | |||||
Long-term debt | |||||
Term loan | 593 | 611.8 | |||
Euro Notes [Member] | 2.425% [Member] | Due in 2026 [Member] | |||||
Long-term debt | |||||
Term loan | 593 | 611.8 | |||
Japan Term Loan A [Member] | |||||
Long-term debt | |||||
Term loan | 105.3 | ¥ 11.7 | 113.3 | ||
Japan Term Loan B [Member] | |||||
Long-term debt | |||||
Term loan | $ 191.8 | ¥ 21.3 | $ 206.3 |
Debt - Summary of Debt Instru_2
Debt - Summary of Debt Instruments (Parenthetical) (Detail) | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 20, 2020 |
Three Point One Five Zero Percentage | Two Thousand Twenty Two | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.15% | 3.15% | |
3.375% [Member] | Due in 2021 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.375% | 3.375% | |
3.700% [Member] | Due in 2023 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.70% | 3.70% | |
3.050% [Member] | Due in 2026 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.05% | 3.05% | 3.05% |
3.550% [Member] | Due in 2025 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.55% | 3.55% | |
3.550% [Member] | Due in 2030 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.55% | 3.55% | 3.55% |
4.250% [Member] | Due in 2035 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.25% | 4.25% | |
5.750% [Member] | Due in 2039 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.75% | 5.75% | |
4.450% [Member] | Due in 2045 [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.45% | 4.45% | |
1.414% [Member] | Two Thousand Twenty Two | Euro Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.414% | 1.414% | |
2.425% [Member] | Due in 2026 [Member] | Euro Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.425% | 2.425% | |
1.164% [Member] | Due in 2027 [Member] | Euro Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 1.164% | 1.164% |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Billions, ¥ in Billions | Sep. 18, 2020USD ($) | Apr. 01, 2020USD ($) | Mar. 20, 2020USD ($) | Nov. 01, 2019USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021 | Jun. 30, 2021EUR (€) | Jun. 30, 2021JPY (¥) | Mar. 31, 2021 | Dec. 31, 2020USD ($) | Apr. 23, 2020USD ($) | Mar. 31, 2020 |
Debt Instrument [Line Items] | ||||||||||||
Debt, long-term and short-term, combined amount | $ 7,900,000,000 | |||||||||||
Aggregate principal amount of Senior Notes | 7,600,000,000 | |||||||||||
Debt discount and issuance costs | 41,700,000 | $ 48,200,000 | ||||||||||
Estimated fair value | $ 8,238,200,000 | |||||||||||
2019 Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 5.00% | 5.75% | 5.75% | |||||||||
Consolidated leverage ratio thereafter | 4.50% | 4.50% | 4.50% | |||||||||
2019 Credit Agreement [Member] | Maximum [Member] | Scenario Forecast [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio thereafter | 5.00% | |||||||||||
2019 Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 1.00% | 1.00% | 1.00% | |||||||||
Consolidated leverage ratio thereafter | 1.00% | 1.00% | 1.00% | |||||||||
2019 Credit Agreement [Member] | Minimum [Member] | Scenario Forecast [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio thereafter | 1.00% | |||||||||||
September 2020 Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Sep. 17, 2021 | |||||||||||
Principal amount, unsecured credit facility | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||||
Outstanding borrowings | $ 0 | |||||||||||
September 2020 Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 5.75% | 5.00% | 5.75% | |||||||||
Consolidated leverage ratio thereafter | 4.50% | 4.50% | 4.50% | |||||||||
September 2020 Credit Agreement [Member] | Maximum [Member] | Scenario Forecast [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio thereafter | 5.00% | |||||||||||
September 2020 Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio | 1.00% | 1.00% | 1.00% | |||||||||
Consolidated leverage ratio thereafter | 1.00% | 1.00% | 1.00% | |||||||||
September 2020 Credit Agreement [Member] | Minimum [Member] | Scenario Forecast [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated leverage ratio thereafter | 1.00% | |||||||||||
Euro Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | € | € 1.8 | |||||||||||
Japan Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | $ 105,300,000 | ¥ 11.7 | $ 113,300,000 | |||||||||
Maturity date of debt instrument | Sep. 27, 2022 | |||||||||||
Japan Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | $ 191,800,000 | ¥ 21.3 | 206,300,000 | |||||||||
Maturity date of debt instrument | Sep. 27, 2022 | |||||||||||
Other Debt and Fair Value Adjustments [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Other long-term debt | $ 1,500,000 | |||||||||||
Floating Rate Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | 200,000,000 | |||||||||||
Senior Notes [Member] | 3.050% [Member] | Due in 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | |||||||||
Maturity date of debt instrument | Jan. 15, 2026 | |||||||||||
Interest rate | 3.05% | 3.05% | 3.05% | 3.05% | 3.05% | |||||||
Senior Notes [Member] | 3.550% [Member] | Due in 2030 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 900,000,000 | $ 900,000,000 | $ 900,000,000 | |||||||||
Maturity date of debt instrument | Mar. 20, 2030 | |||||||||||
Interest rate | 3.55% | 3.55% | 3.55% | 3.55% | 3.55% | |||||||
Senior Notes [Member] | 2.700% [Member] | Due in 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Apr. 1, 2020 | |||||||||||
Repayments of term loan | $ 1,500,000,000 | |||||||||||
Interest rate | 2.70% | |||||||||||
Multicurrency Revolving Facility [Member] | 2019 Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Nov. 1, 2024 | |||||||||||
Principal amount, unsecured credit facility | $ 1,500,000,000 | |||||||||||
Debt instrument term | 5 years | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Uncommitted incremental feature | $ 500,000,000 | |||||||||||
Japan Term Loan A and Japan Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 296,500,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Components of Accumulated Other Comprehensive Income, Net of Tax (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | $ 12,194.2 |
AOCI before reclassifications | 9.4 |
Reclassifications to statements of earnings | 1.4 |
Stockholders equity, ending balance | 12,577.9 |
Cash Flow Hedges [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (55.6) |
AOCI before reclassifications | 42.1 |
Reclassifications to statements of earnings | 1.8 |
Stockholders equity, ending balance | (11.7) |
Foreign Currency Translation [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (7.2) |
AOCI before reclassifications | (32.7) |
Stockholders equity, ending balance | (39.9) |
Defined Benefit Plan Items [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (235) |
Reclassifications to statements of earnings | (0.4) |
Stockholders equity, ending balance | (235.4) |
Total AOCI [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (297.8) |
Stockholders equity, ending balance | $ (287) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification Adjustments from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Comprehensive Income Loss [Line Items] | ||||
Cost of products sold | $ 581.6 | $ 424.5 | $ 1,098 | $ 911.6 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Interest expense, net | $ (54.7) | $ (54) | $ (107) | $ (104.9) |
Other income, net | 8.1 | 3.8 | 15.4 | 6.8 |
Earnings (loss) before income taxes | 173.9 | (221.9) | 394.5 | (725.8) |
Provision (benefit) for income taxes | 31.4 | (13.7) | 54.3 | (8.5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Net of tax | (1.1) | 11 | (1.4) | 24.8 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Earnings (loss) before income taxes | (2.8) | 15 | (1.8) | 30.4 |
Provision (benefit) for income taxes | (0.5) | 1.9 | 3.8 | |
Net of tax | (2.3) | 13.1 | (1.8) | 26.6 |
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 | $ (2.6) | $ 15.1 | $ (1.5) | $ 30.7 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
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 expense, net | $ (0.2) | $ (0.1) | $ (0.3) | $ (0.3) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Provision (benefit) for income taxes | 0.6 | 0.4 | (0.1) | (1.6) |
Net of tax | 1.2 | (2.1) | 0.4 | (1.8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Prior Service Cost and Unrecognized Actuarial Gain Loss [Member] | ||||
Other Comprehensive Income Loss [Line Items] | ||||
Other income, net | $ 1.8 | $ (1.7) | $ 0.3 | $ (3.4) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - Tax Effects on Each Component of Accumulated Other Comprehensive Income Recognized in Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Foreign currency cumulative translation adjustments, before tax | $ (18.2) | $ 4.3 | $ (17.6) | $ (24.9) |
Unrealized cash flow hedge gains (losses), before tax | 0.4 | (27.6) | 47.9 | 38.1 |
Reclassification adjustments on cash flow hedges, before tax | 2.8 | (15) | 1.8 | (30.4) |
Adjustments to prior service cost and unrecognized actuarial assumptions, before tax | (1.8) | 1.7 | (0.3) | 3.4 |
Total Other Comprehensive Income (Loss), before tax | (16.8) | (36.6) | 31.8 | (13.8) |
Foreign currency cumulative translation adjustments, tax | (4.6) | (18.7) | 15.1 | 6.3 |
Unrealized cash flow hedge gains (losses), before tax | (1.8) | (4.9) | 5.8 | 6 |
Reclassification adjustments on cash flow hedges, tax | 0.5 | (1.9) | (3.8) | |
Adjustments to prior service cost and unrecognized actuarial assumptions, tax | (0.6) | (0.4) | 0.1 | 1.6 |
Total Other Comprehensive Income (Loss), before tax | (6.5) | (25.9) | 21 | 10.1 |
Foreign currency cumulative translation adjustments, net of tax | (13.6) | 23 | (32.7) | (31.2) |
Unrealized cash flow hedge gains (losses), net of tax | 2.2 | (22.7) | 42.1 | 32.1 |
Reclassification adjustments on hedges, net of tax | 2.3 | (13.1) | 1.8 | (26.6) |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | (1.2) | 2.1 | (0.4) | 1.8 |
Total Other Comprehensive Income (Loss) | $ (10.3) | $ (10.7) | $ 10.8 | $ (23.9) |
Fair Value Measurement of Ass_3
Fair Value Measurement of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 21.4 | $ 1.4 |
Contingent payments related to acquisitions | 43.1 | 48.2 |
Total Liabilities | 69.3 | 183.2 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 21.4 | 1.4 |
Total Liabilities | 26.2 | 135 |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments related to acquisitions | 43.1 | 48.2 |
Total Liabilities | 43.1 | 48.2 |
Foreign Exchange Forward Contracts [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 15.9 | 0.5 |
Derivatives, current and long-term | 12.1 | 48.5 |
Foreign Exchange Forward Contracts [Member] | Derivatives Not Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 0.9 | |
Derivatives, current and long-term | 3.2 | |
Foreign Exchange Forward Contracts [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 15.9 | 0.5 |
Derivatives, current and long-term | 12.1 | 48.5 |
Foreign Exchange Forward Contracts [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Not Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 0.9 | |
Derivatives, current and long-term | 3.2 | |
Cross-currency Interest Rate Swaps [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 4.7 | |
Derivatives, current and long-term | 13.4 | 83.3 |
Cross-currency Interest Rate Swaps [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 4.7 | |
Derivatives, current and long-term | 13.4 | $ 83.3 |
Interest Rate Swaps [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 0.8 | |
Derivatives, current and long-term | 0.7 | |
Interest Rate Swaps [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 0.8 | |
Derivatives, current and long-term | $ 0.7 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] - Fair Value, Measurements, Recurring [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Beginning balance December 31, 2020 | $ 48.2 |
Change in estimate | 2 |
Settlements | (6.8) |
Foreign currency impact | (0.3) |
Ending balance June 30, 2021 | $ 43.1 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) € in Millions, SFr in Millions, ¥ in Billions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2021JPY (¥) | Jun. 30, 2021CHF (SFr) | |
Derivative Instruments Gain Loss [Line Items] | |||||||
Fair value hedges of fixed rate obligations | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Unamortized balance related to discontinued hedges instruments which will be recognized under effective interest rate method | 1,400,000 | 1,400,000 | |||||
Forward starting interest rate swap cash flow hedge to be amortized | 25,600,000 | $ 25,600,000 | |||||
Percentage of debt designated as net investment hedges | 100.00% | ||||||
Expected months of hedging of inter company sales of inventory to minimize the effects of foreign exchange rate movements | 30 months | ||||||
Fair value of outstanding derivative instruments, net unrealized loss deferred in accumulated other comprehensive income | (20,400,000) | $ (20,400,000) | |||||
Gains (losses) on derivatives | 900,000 | $ 1,600,000 | 4,300,000 | $ (21,900,000) | |||
Cost of Products Sold [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Fair value of outstanding derivative instruments, gain (loss), expected to be reclassified to earnings | (4,400,000) | (4,400,000) | |||||
Fair value of outstanding derivative instruments, gain (loss), net of taxes expected to be reclassified to earnings | (4,000,000) | (4,000,000) | |||||
Interest Expense [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Fair value of outstanding derivative instruments, gain (loss), expected to be reclassified to earnings | (600,000) | (600,000) | |||||
Fair value of outstanding derivative instruments, gain (loss), net of taxes expected to be reclassified to earnings | (500,000) | (500,000) | |||||
Cash Flow Hedges [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Fair value of outstanding derivative instruments, unrealized loss net of taxes deferred in accumulated other comprehensive income | (11,700,000) | (11,700,000) | |||||
Cross-currency Interest Rate Swaps [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | € 775 | ¥ 7 | SFr 50 | ||||
Cross-Currency Interest Rate Swaps Matured [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | € | € 675 | ||||||
Net investment hedge gain/loss at maturity | 37,100,000 | ||||||
Foreign Exchange Contract [Member] | U.S. Dollars [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | 1,459,100,000 | 1,459,100,000 | |||||
Foreign Exchange Contract [Member] | Swiss Francs [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | 324,000,000 | $ 324,000,000 | |||||
4.450% [Member] | Senior Notes [Member] | Due in 2045 [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Hedged senior notes maturity period | 30 years | ||||||
Derivatives Designated as Hedges [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | 1,000,000,000 | $ 1,000,000,000 | |||||
Derivatives Not Designated as Hedges [Member] | Foreign Exchange Contract [Member] | Minimum [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | 1,500,000,000 | 1,500,000,000 | |||||
Derivatives Not Designated as Hedges [Member] | Foreign Exchange Contract [Member] | Maximum [Member] | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative notional amount, Total | $ 2,000,000,000 | $ 2,000,000,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Amounts Recorded On Balance Sheet Related To Cumulative Basis Adjustments For Fair Value Hedges (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments Gain Loss [Line Items] | ||
Current portion of long-term debt | $ 1,050 | $ 500 |
Fair value hedges of fixed rate obligations | 1,000 | |
Carrying Amount of Hedged Liabilities [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Current portion of long-term debt | 301.4 | 303 |
Fair value hedges of fixed rate obligations | 995.7 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of Hedged Liabilities [Member] | Long Term Debt Current [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Long-term debt | 1.4 | $ 3.1 |
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of Hedged Liabilities [Member] | Long Term Debt Noncurrent [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Long-term debt | $ 0.1 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Gross Unrealized Losses from Derivative Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCI | $ 0.4 | $ (27.6) | $ 47.9 | $ 38.1 |
Cash Flow Hedges [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCI | 0.4 | (27.6) | 47.9 | 38.1 |
Amount of Gain / (Loss) Reclassified from AOCI | (2.8) | 15 | (1.8) | 30.4 |
Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCI | 0.4 | (27.6) | 47.9 | 38.1 |
Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | Cost of Products Sold [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Reclassified from AOCI | (2.6) | 15.1 | (1.5) | 30.7 |
Cash Flow Hedges [Member] | Forward Starting Interest Rate Swaps [Member] | Interest Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Reclassified from AOCI | $ (0.2) | $ (0.1) | $ (0.3) | $ (0.3) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Condensed Consolidated Statements of Earnings (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Gain on net investment hedging relationships | $ (44) | $ (80.6) | $ 93.9 | $ 27.2 |
Cash Flow Hedges [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on cash flow hedging relationships | (2.8) | 15 | (1.8) | 30.4 |
Cost of Products Sold [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded | 581.6 | 424.5 | 1,098 | 911.6 |
Interest Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded | (54.7) | (54) | (107) | (104.9) |
Interest Expense [Member] | Discontinued Interest Rate Swaps [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain on fair value hedging relationships | 0.8 | 0.8 | 1.7 | 1.7 |
Foreign Exchange Forward Contracts [Member] | Cost of Products Sold [Member] | Cash Flow Hedges [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on cash flow hedging relationships | (2.6) | 15.1 | (1.5) | 30.7 |
Forward Starting Interest Rate Swaps [Member] | Interest Expense [Member] | Cash Flow Hedges [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) on cash flow hedging relationships | (0.2) | (0.1) | (0.3) | (0.3) |
Cross-currency Interest Rate Swaps [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain on net investment hedging relationships | (28.1) | (41.6) | 37.5 | 28.1 |
Cross-currency Interest Rate Swaps [Member] | Interest Expense [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain on net investment hedging relationships | $ 10.4 | $ 13.4 | $ 23.8 | $ 26.8 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivative Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivatives Not Designated as Hedges [Member] | Foreign Exchange Forward Contracts [Member] | Other Expense, Net [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gains/(losses) from derivative instruments not designated as hedging instruments | $ (1.4) | $ (7.7) | $ (7.7) | $ 15.4 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on Gross Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 41.3 | $ 15.9 |
Derivative Liabilities | 46.1 | 147.2 |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.5 | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3.8 | |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 22 | 12.2 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.5 | |
Foreign Exchange Forward Contracts [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 13.8 | 3.7 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 23.1 | 37.4 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3.8 | |
Foreign Exchange Forward Contracts [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 8.9 | 26.5 |
Cross-currency Interest Rate Swaps [Member] | Other Current Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.5 | |
Cross-currency Interest Rate Swaps [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 4.2 | |
Cross-currency Interest Rate Swaps [Member] | Other Current Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 8.3 | 55 |
Cross-currency Interest Rate Swaps [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 5.1 | $ 28.3 |
Interest Rate Swap [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0.8 | |
Interest Rate Swap [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 0.7 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Schedule of Effects of Master Netting Agreements on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | $ 1.5 | |
Offset | 0.6 | |
Net Amount in Balance Sheet | 0.9 | |
Other Current Assets [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | $ 22 | 12.2 |
Offset | 13.6 | 11.7 |
Net Amount in Balance Sheet | 8.4 | 0.5 |
Other Assets [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 13.8 | 3.7 |
Offset | 6.3 | 3.7 |
Net Amount in Balance Sheet | 7.5 | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 3.8 | |
Offset | 0.6 | |
Net Amount in Balance Sheet | 3.2 | |
Other Current Liabilities [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 23.1 | 37.4 |
Offset | 13.6 | 11.7 |
Net Amount in Balance Sheet | 9.5 | 25.7 |
Other Long-term Liabilities [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 8.9 | 26.5 |
Offset | 6.3 | 3.7 |
Net Amount in Balance Sheet | $ 2.6 | $ 22.8 |
Derivative Instruments and H_10
Derivative Instruments and Hedging Activities - Net Investment Hedge Gains (Losses) Recognized on Condensed Consolidated Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCI | $ (44) | $ (80.6) | $ 93.9 | $ 27.2 |
Euro Notes [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCI | (15.9) | (39) | 56.4 | (0.9) |
Cross-currency Interest Rate Swaps [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain / (Loss) Recognized in AOCI | $ (28.1) | $ (41.6) | $ 37.5 | $ 28.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes Disclosure [Line Items] | ||||
Decrease in unrecognized tax benefits within the next twelve months | $ 250 | $ 250 | ||
Increase in unrecognized tax benefits within the next twelve months | 20 | 20 | ||
Amount of potential additional income tax expense related to an IRS revenue agents report subject to interest and penalties | 370 | 370 | ||
Provision (benefit) for income taxes | $ 31.4 | $ (13.7) | $ 54.3 | $ (8.5) |
Effective tax rate | 18.00% | 6.20% | 13.80% | 1.20% |
Goodwill impairment | $ 612 | |||
U.S. corporate income tax rate | 21.00% | |||
Tax Reform and AHV Financing [Member] | ||||
Income Taxes Disclosure [Line Items] | ||||
Provision (benefit) for income taxes | $ (10) |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Weighted Average Shares for Basic and Diluted Shares Computations (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding for basic net earnings (loss) per share | 208.6 | 206.8 | 208.3 | 206.6 |
Effect of dilutive stock options and other equity awards | 2.1 | 2.1 | ||
Weighted average shares outstanding for diluted net earnings (loss) per share | 210.7 | 206.8 | 210.4 | 206.6 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Options to purchase shares of common stock not included in the computation of diluted earnings per share | 0.4 | 0.4 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Information - Summary o
Segment Information - Summary of Net Sales and Operating Profit by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | $ 2,026.9 | $ 1,226.1 | $ 3,874.3 | $ 3,009.9 |
Operating Profit (Loss) | 220.5 | (171.7) | 486.1 | (627.7) |
Intangible asset amortization | (154.6) | (147.7) | (310.1) | (295.3) |
Goodwill and intangible asset impairment | (16.3) | (33) | (16.3) | (645) |
Restructuring and other cost reduction initiatives | (19.6) | (28) | (41.4) | (73) |
Quality remediation | (11) | (9.7) | (21.2) | (26.1) |
Acquisition, integration, divestiture and related | (25.4) | (2.2) | (38.8) | (6.6) |
EMEA [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | 429.8 | 218.7 | 814 | 616.8 |
Asia Pacific [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | 357.5 | 273.7 | 705.7 | 558.1 |
Corporate Functions [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Operating Profit (Loss) | (162) | (229) | (318.4) | (393.4) |
Operating Segments [Member] | Americas Orthopedics [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | 1,058.3 | 626.5 | 2,004.5 | 1,569.5 |
Operating Profit (Loss) | 445.4 | 203.7 | 832.5 | 607 |
Operating Segments [Member] | EMEA [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | 392.9 | 204.1 | 742 | 575.4 |
Operating Profit (Loss) | 95.2 | 20.1 | 181.5 | 128.9 |
Operating Segments [Member] | Asia Pacific [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | 345.7 | 264.5 | 682.6 | 540.4 |
Operating Profit (Loss) | 111.4 | 78.4 | 231.7 | 171 |
Operating Segments [Member] | Americas Spine and Global Dental [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Net Sales | 230 | 131 | 445.2 | 324.6 |
Operating Profit (Loss) | 40.1 | (3.4) | 79.1 | 22.5 |
Segment Reconciling Items [Member] | ||||
Net Sales And Operating Profit Information [Line Items] | ||||
Inventory and manufacturing-related charges | (7.9) | (1.4) | (2) | (2) |
Intangible asset amortization | (154.6) | (147.7) | (310.1) | (295.3) |
Goodwill and intangible asset impairment | (16.3) | (33) | (16.3) | (645) |
Restructuring and other cost reduction initiatives | (19.7) | (28) | (41.6) | (73) |
Quality remediation | (11) | (9.9) | (21.2) | (25.8) |
Acquisition, integration, divestiture and related | (25.4) | (2.2) | (38.8) | (6.6) |
Litigation | (3.6) | (1.3) | (9.7) | (81.1) |
European Union Medical Device Regulation | (10.6) | (6.1) | (17.5) | (17.1) |
Certain R&D agreements | (65) | (65) | ||
Other charges | $ 4.5 | $ (11.9) | $ 1.9 | $ (17.8) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Thousands, $ in Millions | Feb. 13, 2019USD ($) | Feb. 13, 2019NOK (kr) | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Jan. 31, 2017EUR (€) | Dec. 31, 2016EUR (€) | Jun. 30, 2019EUR (€) | Jun. 30, 2021USD ($) |
Loss Contingencies [Line Items] | ||||||||
Loss contingency, damages awarded, value | $ 2.3 | kr 19,500,000 | ||||||
Durom Cup Related Claims [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated liability outstanding | $ 47.9 | |||||||
Metal Reaction Related Claims [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated liability outstanding | 49.2 | |||||||
Biomet Metal On Metal Hip Implant Claims [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated liability classified as short-term | 69.5 | |||||||
Heraeus Trade Secret Misappropriation Lawsuits [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages incurred | $ 16.6 | € 13,840 | ||||||
Heraeus Trade Secret Misappropriation Lawsuits [Member] | Germany [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss Contingency, Damages incurred | € | € 125,900 | € 121,900 | € 146,700 | |||||
Other Contingencies [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated liability outstanding | 0 | |||||||
Other contingencies estimated payments range | $ 380 |