Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 07, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ZIMMER BIOMET HOLDINGS, INC. | ||
Entity Central Index Key | 0001136869 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 209,177,445 | ||
Entity Public Float | $ 33,533,707,317 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Interactive Data Current | Yes | ||
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 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement with respect to the 2022 Annual Meeting of Stockholders | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Chicago, Illinois | ||
Auditor Firm ID | 238 | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | ZBH | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
1.414% Notes due 2022 [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | ZBH 22A | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | 1.414% Notes due 2022 | ||
2.425% Notes due 2026 [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | ZBH 26 | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | 2.425% Notes due 2026 | ||
1.164% Notes due 2027 [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | ZBH 27 | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | 1.164% Notes due 2027 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net Sales | $ 7,836.2 | $ 7,024.5 | $ 7,982.2 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of products sold, excluding intangible asset amortization | $ 2,341 | $ 2,128.3 | $ 2,252.6 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Intangible asset amortization | $ 615.7 | $ 597.6 | $ 584.3 |
Research and development | 497.2 | 372 | 449.3 |
Selling, general and administrative | 3,323.9 | 3,177.8 | 3,343.8 |
Goodwill and intangible asset impairment | 16.3 | 645 | 70.1 |
Restructuring and other cost reduction initiatives | 129.1 | 116.9 | 50 |
Quality remediation | 53.1 | 50.9 | 82.4 |
Acquisition, integration, divestiture and related | 79.8 | 23.8 | 12.2 |
Operating expenses | 7,056.1 | 7,112.3 | 6,844.7 |
Operating Profit (Loss) | 780.1 | (87.8) | 1,137.5 |
Other income (expense), net | 11.8 | 25.4 | (4.8) |
Interest expense, net | (208.4) | (212) | (226.9) |
Loss on early extinguishment of debt | (165.1) | ||
Earnings (Loss) before income taxes | 418.4 | (274.4) | 905.8 |
Provision (benefit) for income taxes | 16.3 | (137) | (225.7) |
Net Earnings (Loss) | 402.1 | (137.4) | 1,131.5 |
Less: Net earnings (loss) attributable to noncontrolling interest | 0.5 | 1.5 | (0.1) |
Net Earnings (Loss) of Zimmer Biomet Holdings, Inc. | $ 401.6 | $ (138.9) | $ 1,131.6 |
Earnings (Loss) Per Common Share - Basic | $ 1.93 | $ (0.67) | $ 5.52 |
Earnings (Loss) Per Common Share - Diluted | $ 1.91 | $ (0.67) | $ 5.47 |
Weighted Average Common Shares Outstanding | |||
Basic | 208.6 | 207 | 205.1 |
Diluted | 210.4 | 207 | 206.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Earnings (Loss) | $ 402.1 | $ (137.4) | $ 1,131.5 |
Other Comprehensive Income (Loss): | |||
Foreign currency cumulative translation adjustments, net of tax | (99.9) | 25.6 | (1.5) |
Unrealized cash flow hedge gains/(losses), net of tax | 86.4 | (33.5) | 30.6 |
Reclassification adjustments on cash flow hedges, net of tax | 1.3 | (38.5) | (35.1) |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 78.4 | (9.5) | (48.5) |
Total Other Comprehensive Income (Loss) | 66.2 | (55.9) | (54.5) |
Comprehensive Income (Loss) | 468.3 | (193.3) | 1,077 |
Comprehensive Income (Loss) Attributable to Noncontrolling Interest | 0.5 | 1.5 | (0.1) |
Comprehensive Income (Loss) Attributable to Zimmer Biomet Holdings, Inc. | $ 467.8 | $ (194.8) | $ 1,077.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 478.5 | $ 802.1 |
Accounts receivable, less allowance for credit losses | 1,404.9 | 1,452.7 |
Inventories | 2,394.5 | 2,450.7 |
Prepaid taxes | 329.5 | 208.8 |
Prepaid expenses and other current assets | 277.6 | 169 |
Total Current Assets | 4,885 | 5,083.3 |
Property, plant and equipment, net | 2,016.5 | 2,047.7 |
Goodwill | 9,192.2 | 9,261.8 |
Intangible assets, net | 6,299.8 | 7,055.5 |
Other assets | 1,062.9 | 969.4 |
Total Assets | 23,456.4 | 24,417.7 |
Current Liabilities: | ||
Accounts payable | 351.2 | 330 |
Income taxes payable | 65.1 | 59.5 |
Other current liabilities | 1,446.5 | 1,667.4 |
Current portion of long-term debt | 1,605.1 | 500 |
Total Current Liabilities | 3,467.9 | 2,556.9 |
Deferred income taxes, net | 665.6 | 790.4 |
Long-term income tax payable | 583.2 | 588.1 |
Other long-term liabilities | 609.6 | 656.4 |
Long-term debt | 5,463.7 | 7,626.5 |
Total Liabilities | 10,790 | 12,218.3 |
Commitments and Contingencies (Note 21) | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value, one billion shares authorized, 312.8 million (311.4 million in 2020) issued | 3.1 | 3.1 |
Paid-in capital | 9,314.8 | 9,121.6 |
Retained earnings | 10,292.2 | 10,086.9 |
Accumulated other comprehensive loss | (231.6) | (297.8) |
Treasury stock, 103.8 million shares (103.8 million shares in 2020) | (6,717.8) | (6,719.6) |
Total Zimmer Biomet Holdings, Inc. stockholders' equity | 12,660.7 | 12,194.2 |
Noncontrolling interest | 5.7 | 5.2 |
Total Stockholders' Equity | 12,666.4 | 12,199.4 |
Total Liabilities and Stockholders' Equity | $ 23,456.4 | $ 24,417.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 312,800,000 | 311,400,000 |
Treasury stock, shares | 103,800,000 | 103,800,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Shares [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2018 | $ 11,276.1 | $ 3.1 | $ 8,686.1 | $ 9,491.2 | $ (187.4) | $ (6,721.7) | $ 4.8 | ||
Balance, shares at Dec. 31, 2018 | 307.9 | (103.9) | |||||||
Net (loss) earnings | 1,131.5 | 1,131.6 | (0.1) | ||||||
Other comprehensive income (loss) | (54.5) | (54.5) | |||||||
Cash dividends declared | (197.2) | (197.2) | |||||||
Stock compensation plans | 236.9 | 234 | 1.7 | $ 1.2 | |||||
Stock compensation plans, shares | 2 | ||||||||
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) | |||||||
Acquisition of noncontrolling interest | (1) | (1) | |||||||
Net (loss) earnings | (137.4) | (138.9) | 1.5 | ||||||
Other comprehensive income (loss) | (55.9) | (55.9) | |||||||
Cash dividends declared | (198.9) | (198.9) | |||||||
Adoption Of New Accounting Standard | $ (3.1) | $ (3.1) | |||||||
Stock compensation plans | 202.9 | 201.5 | 0.5 | $ 0.9 | |||||
Stock compensation plans, shares | 1.5 | 0.1 | |||||||
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 (loss) earnings | 402.1 | 401.6 | 0.5 | ||||||
Other comprehensive income (loss) | 66.2 | 66.2 | |||||||
Cash dividends declared | (200.4) | (200.4) | |||||||
Stock compensation plans | 199.1 | 193.2 | 4.1 | $ 1.8 | |||||
Stock compensation plans, shares | 1.4 | ||||||||
Balance at Dec. 31, 2021 | $ 12,666.4 | $ 3.1 | $ 9,314.8 | $ 10,292.2 | $ (231.6) | $ (6,717.8) | $ 5.7 | ||
Balance, shares at Dec. 31, 2021 | 312.8 | (103.8) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividend declared per share | $ 0.96 | $ 0.96 | $ 0.96 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows provided by (used in) operating activities: | |||
Net Earnings (Loss) | $ 402.1 | $ (137.4) | $ 1,131.5 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,067.4 | 1,032.7 | 1,006.1 |
Share-based compensation | 85.3 | 79.7 | 84.3 |
Goodwill and intangible asset impairment | 16.3 | 645 | 70.1 |
Loss on early extinguishment of debt | 165.1 | ||
Deferred income tax (benefit) provision | (149.7) | 12 | (538.7) |
Changes in operating assets and liabilities, net of acquired assets and liabilities | |||
Income taxes | (123.2) | (291.1) | 111.4 |
Receivables | (15.1) | (70) | (93.8) |
Inventories | 18.8 | (40.8) | (125.2) |
Accounts payable and accrued liabilities | 76.4 | (95.1) | (42) |
Other assets and liabilities | (44.2) | 69.5 | (17.9) |
Net cash provided by operating activities | 1,499.2 | 1,204.5 | 1,585.8 |
Cash flows provided by (used in) investing activities: | |||
Additions to instruments | (301.8) | (291.7) | (315.9) |
Additions to other property, plant and equipment | (172) | (117.5) | (207.1) |
Net investment hedge settlements | 1.9 | 53.5 | 48.1 |
Business combination investments, net of acquired cash | (235.5) | (37.1) | |
Investments in other assets | (23.3) | (22.2) | (19.7) |
Net cash used in investing activities | (503.6) | (613.8) | (729.3) |
Cash flows provided by (used in) financing activities: | |||
Proceeds from senior notes | 1,599.8 | 1,497.1 | 549.2 |
Redemption of senior notes | (2,654.8) | (1,750) | (500) |
Proceeds from term loans | 200 | ||
Payments on term loans | (960) | ||
Net payments on other debt | (5.3) | ||
Dividends paid to stockholders | (200.1) | (198.5) | (196.7) |
Proceeds from employee stock compensation plans | 122.5 | 129.8 | 158.2 |
Net cash flows from unremitted collections from factoring programs | (54.6) | (12.2) | |
Business combination contingent consideration payments | (8.9) | (15) | (2.9) |
Debt issuance costs | (13.2) | (22.3) | (3.5) |
Deferred business combination payments | (145) | ||
Other financing activities | (6.3) | (8.3) | (6.7) |
Net cash used in financing activities | (1,306) | (421.8) | (779.9) |
Effect of exchange rates on cash and cash equivalents | (13.2) | 15.3 | (1.5) |
(Decrease) increase in cash and cash equivalents | (323.6) | 184.2 | 75.1 |
Cash and cash equivalents, beginning of year | 802.1 | 617.9 | 542.8 |
Cash and cash equivalents, end of period | 478.5 | 802.1 | 617.9 |
Intellectual Property Rights | |||
Cash flows provided by (used in) investing activities: | |||
Acquisition of intellectual property rights | $ (8.4) | $ (0.4) | $ (197.6) |
Business
Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | 1. We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, craniomaxillofacial and thoracic products; dental implants; and related surgical products. We collaborate with healthcare professionals around the globe to advance the pace of innovation. Our products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Together with healthcare professionals, we help millions of people live better lives. The words “Zimmer Biomet,” “we,” “us,” “our,” “the Company” and similar words refer to Zimmer Biomet Holdings, Inc. and its subsidiaries. “Zimmer Biomet Holdings” refers to the parent company only. In 2015, we completed our merger with LVB Acquisition, Inc., the parent company of Biomet, Inc. (“Biomet”). 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 continue to be deferred due to precautions in certain markets and staffing shortages. 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 an 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 named ZimVie Inc. (“ZimVie”). The planned transaction is intended to benefit our stockholders by enhancing the focus of both Zimmer Biomet and ZimVie 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 ZimVie. The expected completion date of the spinoff is March 1, 2022. Our Board of Directors has declared a pro rata dividend of 80.3% of the outstanding common stock of ZimVie to our stockholders of record as of the close of business on February 15, 2022. As a result of the dividend, our stockholders will receive one share of ZimVie common stock for every ten shares of our common stock. Immediately following the dividend, we will retain 19.7% of the outstanding shares of ZimVie common stock, which we intend to divest after the separation in a tax-efficient manner. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Basis of Presentation - The consolidated financial statements include the accounts of Zimmer Biomet Holdings and its subsidiaries in which it holds a controlling financial interest. All significant intercompany accounts and transactions are eliminated. Use of Estimates - The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“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. Foreign Currency Translation - The financial statements of our foreign subsidiaries are translated into U.S. Dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive loss in stockholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, we remeasure the transaction into the functional currency and recognize any transactional gains or losses in earnings. Shipping and Handling - Amounts billed to customers for shipping and handling of products are reflected in net sales and are not significant. Expenses incurred related to shipping and handling of products are reflected in selling, general and administrative (“SG&A”) expenses and were $295.8 million, $269.9 million and $292.7 million for the years ended December 31, 2021, 2020 and 2019, respectively Research and Development - We expense all research and development (“R&D”) costs as incurred except when there is an alternative future use for the R&D. R&D costs include salaries, prototypes, depreciation of equipment used in R&D, consultant fees, service fees paid to collaborative partners, and arrangements to gain access to or acquire third-party in-process R&D projects with no alternative future use. Where contingent milestone payments are due to third parties under R&D arrangements, we expense the milestone payment obligations when it is probable that the milestone results will be achieved. Litigation - We record an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Quality remediation - We use the financial statement line item “Quality remediation” to recognize expenses related to addressing inspectional observations on Form 483 and a warning letter issued by the FDA following its inspections of our Warsaw North Campus facility, among other matters. See Note 21 for additional information about the Form 483 and warning letter. The majority of these expenses are related to consultants who are helping us to update previous documents and redesign certain processes. Restructuring and other cost reduction initiatives - A restructuring is defined as a program that is planned and controlled by management, and materially changes either the scope of a business undertaken by an entity, or the manner in which that business is conducted. Restructuring charges include (i) employee termination benefits, (ii) contract termination costs and (iii) other related costs associated with exit or disposal activities. In December 2021, our management approved a new global restructuring program to reorganize our operations in preparation for the planned spinoff of ZimVie with an objective of reducing costs. In December 2019, our Board of Directors approved, and we initiated, a new global restructuring program with an objective of reducing costs to allow us to further invest in higher priority growth opportunities. Restructuring charges for the years ended December 31, 2021, 2020 and 2019 were primarily attributable to these programs. Acquisition, integration, divestiture and related – We use the financial statement line item, “Acquisition, integration, divestiture and related” to recognize expenses resulting from the consummation of business mergers and acquisitions and the related integration of those businesses, and expenses related to the divestiture of our businesses. Acquisition, integration, divestiture and related gains and expenses are primarily composed of: • Consulting and professional fees related to third-party integration and divestiture consulting performed in a variety of areas, such as finance, tax, compliance, logistics and human resources, and legal fees related to the consummation of mergers and acquisitions or divestitures. • Employee termination benefits related to terminating employees with overlapping responsibilities in various areas of our business. • Dedicated project personnel expenses which include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our integration of acquired businesses and employees who have been notified of termination, but are continuing to work on transferring their responsibilities. • Contract termination expenses related to terminated contracts, primarily with sales agents and distribution agreements. • Other various expenses to relocate facilities, integrate information technology, losses incurred on assets resulting from the applicable acquisition, and other various expenses. Cash and Cash Equivalents - We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value. Accounts Receivable - Accounts receivable consists of trade and other miscellaneous receivables. We grant credit to customers in the normal course of business and maintain an allowance for expected credit losses. We determine the allowance for credit losses by geographic market and take into consideration historical credit experience, creditworthiness of the customer and other pertinent information. We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off the account against the allowance when we determine the account is uncollectible. The allowance for credit losses was $74.6 million and $75.8 million as of December 31, 2021 and 2020, respectively We also have receivables purchase arrangements with unrelated third parties to transfer portions of our trade accounts receivable balance . We terminated our purchase arrangements in the U.S. and Japan during the year ended December 31, 2020, but continue to have arrangements in Europe. Funds received from the transfers are recorded as an increase to cash and a reduction to accounts receivable outstanding in our 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 consolidated statements of cash flows. Net expenses resulting from the sales of receivables are recognized in SG&A expense. Net expenses include any resulting gains or losses from the sales of receivables, credit insurance and factoring fees . Under the previous arrangement in the U.S. and Japan, any collections that we made that were unremitted to the third parties we re recognized on our consolidated balance sheets under other current liabilities and in our consolidated statements of cash flows in financing activities. In Europe, we have no continuing involvement with the factored receivable. Inventories - Inventories are stated at the lower of cost and net realizable value, with cost determined on a first-in first-out basis. Property, Plant and Equipment - Property, plant and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on estimated useful lives of ten to forty years for buildings and improvements and three to eight years for machinery and equipment. Maintenance and repairs are expensed as incurred. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. Software Costs - We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs generally include external direct costs of materials and services utilized in developing or obtaining computer software and compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line or weighted average estimated user basis when the software is ready for its intended use over the estimated useful lives of the software, which approximate three to fifteen years. For cloud computing arrangements that are considered a service contract, our capitalization of implementation costs is aligned with the internal use software requirements. However, on our consolidated balance sheet these implementation costs are recognized in other noncurrent assets. On our consolidated statement of cash flows, these implementations costs are recognized in operating cash flows. The implementation costs are recognized on a straight-line basis over the expected term of the related service contract. Instruments - Instruments are hand-held devices used by surgeons during total joint replacement and other surgical procedures. Instruments are recognized as long-lived assets and are included in property, plant and equipment. Undeployed instruments are carried at cost or realizable value. Instruments that have been deployed to be used in surgeries are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on average estimated useful lives, determined principally in reference to associated product life cycles, primarily five years. We review instruments for impairment whenever events or changes in circumstances indicate that the carrying value of an instrument may not be recoverable. Depreciation of instruments is recognized as SG&A expense. Goodwill - Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. Potential impairment of a reporting unit is identified by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed, the fair value of the reporting unit and the fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as estimated growth rates , forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount . If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the business unit exceeds the fair value. See Note 1 1 for more information regarding goodwill. Intangible Assets - Intangible assets are initially measured at their fair value. We have determined the fair value of our intangible assets either by the fair value of the consideration exchanged for the intangible asset or the estimated after-tax discounted cash flows expected to be generated from the intangible asset. Intangible assets with a finite life, including technology, certain trademarks and trade names, customer-related intangibles, intellectual property rights and patents and licenses are amortized on a straight-line basis over their estimated useful life or contractual life, which may range from less than one year to twenty years. Intangible assets with a finite life are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Intangible assets with an indefinite life, including certain trademarks and trade names and in-process research and development (“IPR&D”) projects, are not amortized. Indefinite life intangible assets are assessed annually to determine whether events and circumstances continue to support an indefinite life. Intangible assets with an indefinite life are tested for impairment annually or whenever events or circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The amount of the impairment loss to be recorded would be determined based upon the excess of the asset’s carrying value over its fair value. The fair values of indefinite lived intangible assets are determined based upon a discounted cash flow analysis using the relief from royalty method or a qualitative assessment may be performed for any changes to the asset’s fair value from the last quantitative assessment. The relief from royalty method estimates the cost savings associated with owning, rather than licensing, assets. Significant assumptions are incorporated into these discounted cash flow analyses such as estimated growth rates, royalty rates and risk-adjusted discount rates. We may do a qualitative assessment when the results of the previous quantitative test indicated that the asset’s fair value was significantly in excess of its carrying value. In determining the useful lives of intangible assets, we consider the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, we consider the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Trademarks and trade names that do not have a wasting characteristic (i.e., there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life) are assigned an indefinite life. Trademarks and trade names that are related to products expected to be phased out are assigned lives consistent with the period in which the products bearing each brand are expected to be sold. For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition. Intellectual property rights are assigned useful lives that approximate the contractual life of any related patent or the period for which we maintain exclusivity over the intellectual property. Income Taxes - We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the new tax rate is enacted. We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We operate on a global basis and are subject to numerous and complex tax laws and regulations. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Because income tax adjustments in certain jurisdictions can be significant, we record tax positions based upon our estimates. F or those tax positions where it is more likely than not that a tax benefit will be sustained, we ha ve recorded the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements . Derivative Financial Instruments - We measure all derivative instruments at fair value and report them on our consolidated balance sheet as assets or liabilities. We maintain written policies and procedures that permit, under appropriate circumstances and subject to proper authorization, the use of derivative financial instruments solely for risk management purposes. The use of derivative financial instruments for trading or speculative purposes is prohibited by our policy. See Note 15 for more information regarding our derivative and hedging activities. Accumulated Other Comprehensive Income (Loss) – Accumulated other comprehensive income (loss) (“AOCI”) refers to gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to stockholders’ equity. Our AOCI is comprised of foreign currency translation adjustments, including unrealized gains and losses on net investments hedges, unrealized gains and losses on cash flow hedges and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions. Treasury Stock - We account for repurchases of common stock under the cost method and present treasury stock as a reduction of stockholders’ equity. We reissue common stock held in treasury only for limited purposes. Noncontrolling Interest - We have investments in other companies in which we have a controlling financial interest, but not 100 percent of the equity. Further information related to the noncontrolling interests of those investments have not been provided as it is not significant to our consolidated financial statements. Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326). The new guidance describes the current expected credit loss (“CECL”) model which requires an estimate of expected impairment on financial instruments over the lifetime of the assets at each reporting date. Financial instruments in scope of the guidance include financial assets measured at amortized cost. Previous accounting guidance required recognition of impairment when it was probable the loss has been incurred. Under the CECL model, lifetime expected credit losses are measured and recognized at each reporting date based on historical experience, current conditions and forecasted information. We adopted this standard as of January 1, 2020. Adoption of this standard required the modified retrospective transition method, which resulted in a cumulative-effect adjustment to retained earnings of $3.1 million. The adoption primarily impacted our trade receivables. Our concentrations of credit risks are limited due to the large number of customers and their dispersion across a number of geographic areas. Substantially all of our trade receivables are concentrated in the public and private hospital and healthcare industry in the U.S. and internationally or with distributors or dealers who operate in international markets. Our historical credit losses have not been significant due to this dispersion and the financial stability of our customers. We consider credit losses immaterial to our business and, therefore, have not provided all the disclosures otherwise required by the standard. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Our policy for capitalizing implementation costs in a hosting arrangement was already aligned with the new guidance. ASU 2018-15 also provides guidance on how these implementation costs are to be recorded in the statement of earnings, balance sheet and statement of cash flows. We adopted this standard on a prospective basis as of January 1, 2020. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. In December 2019, the FASB issued 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, a mong 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. In July 2021, the FASB issued ASU 2021-05 Lessors – Certain Leases with Variable Lease Payments which is an amendment to Accounting Standards Codification Topic 842 – Leases (“ASC 842”). Under the current ASC 842 guidance, variable payments are excluded from the measurement of the initial net investment in the lease if the payments do not depend on an index or a rate. For sales-type or direct financing leases, this could result in the recognition of a day-one loss for leases with entire or partial variable payments. ASU 2021-05 requires lessors to classify leases with entire or partial variable payments as operating leases if otherwise a day-one loss would be recognized. The ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those years. Early adoption of this ASU is permitted. The ASU can either be applied retrospectively to leases that were commenced or modified on or after the adoption of ASC 842 or applied prospectively to leases that commence or are modified after the adoption of ASU 2021-05. We have not entered into leases that are comprised entirely of variable lease payments and therefore the adoption of this ASU will not have an impact 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 Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 3. Revenue Recognition We recognize revenue when our performance obligations under the terms of a contract with our customer are satisfied. This happens when we transfer control of our products to the customer, which generally occurs upon implantation or when title passes upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring our product. Taxes collected from customers and remitted to governmental authorities are excluded from revenues. We sell products through three principal channels: 1) direct to healthcare institutions, referred to as direct channel accounts; 2) through stocking distributors and healthcare dealers; and 3) directly to dental practices and dental laboratories. In direct channel accounts and with some healthcare dealers, inventory is generally consigned to sales agents or customers so that products are available when needed for surgical procedures. No revenue is recognized upon the placement of inventory into consignment, as we retain the ability to control the inventory. Upon implantation, we issue an invoice and revenue is recognized. Consignment sales represented approximately 80 percent of our net sales in 2021. Pricing for products is generally predetermined by contracts with customers, agents acting on behalf of customer groups or by government regulatory bodies, depending on the market. Price discounts under group purchasing contracts are generally linked to volume of implant purchases by customer healthcare institutions within a specified group. At negotiated thresholds within a contract buying period, price discounts may increase. Payment terms vary by customer, but are typically less than 90 days. With sales to stocking distributors, some healthcare dealers and hospitals, dental practices and dental laboratories, revenue is generally recognized when control of our product passes to the customer, which can be upon shipment of the product or receipt by the customer. We estimate sales recognized in this manner represented approximately 20 percent of our net sales in 2021. These customers may purchase items in large quantities if incentives are offered or if there are new product offerings in a market, which could cause period-to-period differences in sales. It is our accounting policy to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service. We have contracts with these customers or orders may be placed from available price lists. Payment terms vary by customer, but are typically less than 90 days. We offer standard warranties to our customers that our products are not defective. These standard warranties are not considered separate performance obligations. In limited circumstances, we offer extended warranties that are separate performance obligations. We have very few contracts that have multiple performance obligations. Since we do not have significant multiple element arrangements and essentially all of our sales are recognized upon implantation of a product or when title passes, very little judgment is required to allocate the transaction price of a contract or determine when control has passed to a customer. Our costs to obtain contracts consist primarily of sales commissions to employees or third-party agents that are earned when control of our product passes to the customer. Therefore, sales commissions are expensed as part of SG&A expenses at the same time revenue is recognized. Accordingly, we do not have significant contract assets, liabilities or future performance obligations. We offer volume-based discounts, rebates, prompt pay discounts, right of return and other various incentives which we account for under the variable consideration model. If sales incentives may be earned by a customer for purchasing a specified amount of our product, we estimate whether such incentives will be achieved and recognize these incentives as a reduction in revenue in the same period the underlying revenue transaction is recognized. We primarily use the expected value method to estimate incentives. Under the expected value method, we consider the historical experience of similar programs as well as review sales trends on a customer-by-customer basis to estimate what levels of incentives will be earned. Occasionally, products are returned and, accordingly, we maintain an estimated refund liability based upon the expected value method that is recorded as a reduction in revenue. We analyze sales by three geographies, the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific; and by the following product categories: Knees; Hips; Sports Medicine, Biologics, Foot and Ankle, Extremities and Trauma, and Craniomaxillofacial and Thoracic (“CMFT”) (“S.E.T.”); Spine & Dental; and Other. As discussed in Note 19, we have four operating segments which are Americas Orthopedics, EMEA, Asia Pacific and Americas Spine and Global Dental. Our sales analysis differs from our reporting operating segments because the underlying market trends in any particular geography tend to be similar across product categories and because we primarily sell the same products in all geographies. Net sales by geography are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Americas $ 4,800.2 $ 4,335.4 $ 4,875.8 EMEA 1,671.1 1,391.3 1,746.9 Asia Pacific 1,364.9 1,297.8 1,359.5 Total $ 7,836.2 $ 7,024.5 $ 7,982.2 Net sales by product category are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Knees $ 2,647.9 $ 2,378.3 $ 2,780.6 Hips 1,856.1 1,750.5 1,931.5 S.E.T 1,727.8 1,525.6 1,652.5 Spine & Dental 1,008.8 897.0 1,021.8 Other 595.6 473.1 595.8 Total $ 7,836.2 $ 7,024.5 $ 7,982.2 In the first quarter of 2021, we updated our product category revenue reporting. Product category sales include the following changes: • • • • • • Prior period product category sales have been reclassified to conform to the current presentation. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | 4. Restructuring In December 2021, our management approved a new global restructuring program (the “2021 Restructuring Plan”) to reorganize our operations in preparation for the planned spinoff of ZimVie with an objective of reducing costs. The pre-tax restructuring charges consist of employee termination benefits; contract terminations for sales agents; and other charges, such as consulting fees and project management. The restructuring charges incurred in the year ended December 31, 2021 primarily related to employee termination benefits, sales agent contract terminations, consulting and project management. Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2020 $ - $ - $ - $ - Additions 19.5 2.3 10.3 32.1 Cash payments - - - - Foreign currency exchange rate changes - - - - Balance, December 31, 2021 19.5 2.3 10.3 32.1 Expense estimated to be recognized for the 2021 Restructuring Plan $ 62.0 $ 167.0 $ 11.0 $ 240.0 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 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 year ended December 31, 2021 primarily related to employee termination benefits, distributor contract terminations, consulting and project management. The restructuring charges incurred in the year ended December 31, 2020, primarily related to employee termination benefits, 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 Balance, December 31, 2018 $ - $ - $ - $ - Additions 23.2 - 13.1 36.3 Cash Payments - - (9.0 ) (9.0 ) Balance, December 31, 2019 23.2 - 4.1 27.3 Additions 55.3 15.8 37.1 108.2 Cash payments (41.2 ) (4.9 ) (26.1 ) (72.2 ) Foreign currency exchange rate changes 1.4 - - 1.4 Balance, December 31, 2020 38.7 10.9 15.1 64.7 Additions 7.4 18.5 52.5 78.4 Cash payments (29.7 ) (12.9 ) (64.6 ) (107.2 ) Foreign currency exchange rate changes (1.6 ) - (0.1 ) (1.7 ) Balance, December 31, 2021 $ 14.8 $ 16.5 $ 2.9 $ 34.2 Expense incurred since the start of the 2019 Restructuring Plan $ 85.9 $ 34.3 $ 102.7 $ 222.9 Expense estimated to be recognized for the 2019 Restructuring Plan $ 180.0 $ 40.0 $ 155.0 $ 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 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. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation Our share-based payments primarily consist of stock options and restricted stock units (“RSUs”). Share-based compensation expense was as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Total expense, pre-tax $ 85.3 $ 79.7 $ 84.3 Tax benefit related to awards 18.7 16.9 21.8 Total expense, net of tax $ 66.6 $ 62.8 $ 62.5 We had two equity compensation plans in effect at December 31, 2021: the 2009 Stock Incentive Plan (“2009 Plan”) and the Stock Plan for Non-Employee Directors. We have reserved the maximum number of shares of common stock available for awards under the terms of each of these plans. We have registered 49.9 million shares of common stock under these plans. The 2009 Plan provides for the grant of nonqualified stock options and incentive stock options, long-term performance awards in the form of performance shares or units, restricted stock, RSUs and stock appreciation rights. The Compensation and Management Development Committee of the Board of Directors determines the grant date for annual grants under our equity compensation plans. The date for annual grants under the 2009 Plan to our executive officers is expected to occur in the first quarter of each year following the earnings announcements for the previous quarter and full year. The Stock Plan for Non-Employee Directors provides for awards of stock options, restricted stock and RSUs to non-employee directors. It has been our practice to issue shares of common stock upon exercise of stock options from previously unissued shares, except in limited circumstances where they are issued from treasury stock. The total number of awards which may be granted in a given year and/or over the life of the plan under each of our equity compensation plans is limited. At December 31, 2021 , an aggregate of 10.4 million shares were available for future grants and awards under these plans. Stock Options Stock options granted to date under our plans generally vest over four years and have a maximum contractual life of 10 years. As established under our equity compensation plans, vesting may accelerate upon retirement after the first anniversary date of the award if certain criteria are met. We recognize expense related to stock options on a straight-line basis over the requisite service period, less awards expected to be forfeited using estimated forfeiture rates. Due to the accelerated retirement provisions, the requisite service period of our stock options range from one to four years. Stock options are granted with an exercise price equal to the market price of our common stock on the date of grant, except in limited circumstances where local law may dictate otherwise. A summary of stock option activity for the year ended December 31, 2021 is as follows (options in thousands): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Intrinsic Value (in millions) Outstanding at January 1, 2021 7,423 $ 116.67 Options granted 1,278 163.47 Options exercised (871 ) 99.92 Options forfeited (219 ) 150.10 Options expired (64 ) 149.02 Outstanding at December 31, 2021 7,547 $ 125.32 6.0 $ 90.5 Vested or expected to vest as of December 31, 2021 7,291 $ 124.52 6.0 $ 90.0 Exercisable at December 31, 2021 4,805 $ 111.42 4.8 $ 85.6 We use a Black-Scholes option-pricing model to determine the fair value of our stock options. Expected volatility was derived from a combination of historical volatility and implied volatility because the options that were actively traded around the grant date of our stock options did not have maturities of over one year. The expected term of the stock options has been derived from historical employee exercise behavior. The risk-free interest rate was determined using the implied yield currently available for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options. The dividend yield was determined by using an estimated annual dividend and dividing it by the market price of our stock on the grant date. The following table presents information regarding the weighted average fair value of stock options granted, the assumptions used to determine fair value, the intrinsic value of options exercised and the tax benefit of options exercised in the indicated year: For the Years Ended December 31, 2021 2020 2019 Dividend yield 0.6 % 0.6 % 0.8 % Volatility 30.3 % 22.3 % 22.1 % Risk-free interest rate 0.7 % 1.3 % 2.4 % Expected life (years) 5.4 5.0 5.5 Weighted average fair value of options granted $ 43.91 $ 31.65 $ 28.68 Intrinsic value of options exercised (in millions) $ 54.6 $ 50.1 $ 76.8 Tax benefit of options exercised (in millions) $ 10.8 $ 9.6 $ 15.8 As of December 31, 2021, there was $55.2 million of unrecognized share-based payment expense related to nonvested stock options granted under our plans. That expense is expected to be recognized over a weighted average period of 2.5 years. RSUs We have awarded RSUs to certain of our employees. The terms of the awards are generally three or four years. Some of the awards have only service conditions while some have performance and market conditions in addition to service conditions. Future service conditions may be waived if an employee retires after the first anniversary date of the award, but performance and market conditions continue to apply. Accordingly, the requisite service period used for share-based payment expense on our RSUs range from one year to four years. A summary of nonvested RSU activity for the year ended December 31, 2021 is as follows (RSUs in thousands): Weighted Average Grant Date RSUs Fair Value Outstanding at January 1, 2021 1,070 $ 129.65 Granted 556 171.37 Vested (239 ) 119.32 Forfeited (348 ) 122.90 Outstanding at December 31, 2021 1,039 146.58 For the RSUs with service conditions only, the fair value of the awards was determined based upon the fair market value of our common stock on the date of grant. For the RSUs with market conditions, a Monte Carlo valuation technique was used to simulate the market conditions of the awards. The outcome of the simulation was used to determine the fair value of the awards. We are required to estimate the number of RSUs that will vest and recognize share-based payment expense on a straight-line basis over the requisite service period. As of December 31, 2021, we estimate that approximately 682,437 outstanding RSUs will vest. If our estimate were to change in the future, the cumulative effect of the change in estimate will be recorded in that period. Based upon the number of RSUs that we expect to vest, the unrecognized share-based payment expense as of December 31, 2021 was $57.9 million and is expected to be recognized over a weighted-average period of 2.2 years. The fair value of RSUs that vested during the years ended December 31, 2021, 2020 and 2019 based upon our stock price on the date of vesting was $40.0 million, $33.2 million, and $26.3 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. Inventories Inventories consisted of the following (in millions): As of December 31, 2021 2020 Finished goods $ 1,928.5 $ 1,954.6 Work in progress 202.1 223.7 Raw materials 263.9 272.4 Inventories $ 2,394.5 $ 2,450.7 Amounts charged to the consolidated statements of earnings for excess and obsolete inventory, including certain product lines we intend to discontinue, in the years ended December 31, 2021, 2020 and 2019 were $181.7 million, $250.0 million and $221.4 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 7. Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): As of December 31, 2021 2020 Land $ 27.3 $ 27.7 Building and equipment 2,311.4 2,197.8 Capitalized software costs 496.7 455.8 Instruments 3,776.2 3,518.3 Construction in progress 124.0 125.3 6,735.6 6,324.9 Accumulated depreciation (4,719.1 ) (4,277.2 ) Property, plant and equipment, net $ 2,016.5 $ 2,047.7 Depreciation expense was $451.7 million, $435.1 million and $421.8 million for the years ended December 31, 2021, 2020 and 2019, respectively. We had $11.6 million and $24.4 million of property, plant and equipment included in accounts payable as of December 31, 2021 and 2020, respectively. |
Transfers of Financial Assets
Transfers of Financial Assets | 12 Months Ended |
Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | |
Transfers of Financial Assets | 8 . 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 of accounts receivable outstanding in the consolidated balance sheets. We report the cash flows attributable to the sale of the receivables to third parties in cash flows from operating activities in our 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. For the years ended December 31, 2021, 2020 and 2019, we sold receivables having an aggregate face value of $160.9 million, $1,323.0 million and $3,116.2 million to third parties in exchange for cash proceeds of $159.7 million, $1,321.3 million and $3,113.9 million, respectively. Expenses recognized on these sales during the years ended December 31, 2021, 2020 and 2019 were not significant. For the years ended December 31, 2020 and 2019, under the U.S. and Japan programs, we collected $1,308.3 million and $2,857.4 million, respectively, from our customers and remitted that amount to the third party, and we effectively repurchased $146.5 million and $184.6 million, respectively, 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 consolidated statements of cash flows. No amounts were unremitted to third parties as of December 31, 2021 and 2020. |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | 9 . Fair Value Measurements of Assets and Liabilities The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): As of December 31, 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 hedges, current and long-term Foreign currency forward contracts $ 52.4 $ - $ 52.4 $ - Cross-currency interest rate swaps 23.0 - 23.0 - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.1 - 1.1 - Total Assets $ 76.5 $ - $ 76.5 $ - Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.3 $ - $ 0.3 $ - Cross-currency interest rate swaps 3.4 - 3.4 - Interest rate swaps 10.5 - 10.5 - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.5 - 1.5 - Contingent payments related to acquisitions 45.8 - - 45.8 Total Liabilities $ 61.5 $ - $ 15.7 $ 45.8 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, foreign currency exchange rates and the terms of our swaps, and we perform ongoing assessments of counterparty credit risk. 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 10 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 estimates 8.5 Settlements (10.2 ) Foreign currency impact (0.7 ) Ending balance December 31, 2021 $ 45.8 Changes in estimates for contingent payments related to acquisitions are recognized in Acquisition, integration, divestiture and related expenses on our consolidated statements of earnings. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 10. 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. An additional $145.0 million of guaranteed deferred payments were made in 2021 and were included in other current liabilities on the consolidated balance sheet as of December 31, 2020. We 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 following table summarizes the aggregate final estimates of fair value of the assets acquired and liabilities assumed related to the 2020 acquisitions (in millions): Current assets $ 31.7 Intangible assets subject to amortization: Technology 147.9 Trademarks and trade names 1.5 Customer relationships 92.7 Other 4.9 Goodwill 185.5 Other assets 5.4 Total assets acquired 469.6 Current liabilities 4.8 Deferred income taxes 43.5 Other long-term liabilities 0.1 Total liabilities assumed 48.4 Net assets acquired $ 421.2 In the year ended December 31, 2021, we adjusted the preliminary fair values that were recognized as of December 31, 2020. The adjustments primarily related to the customer relationships intangible assets 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 year ended December 31, 2021 that would have been recognized in the previous period if the adjustment were recognized as of the acquisition date. In addition, we revised our estimates related to net operating loss carryforwards based on updated tax calculations which reduced our deferred income tax liability and goodwill correspondingly. There were no other significant adjustments during the year ended December 31, 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 Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 1 1 . Goodwill and Other Intangible Assets The following table summarizes the changes in the carrying amount of goodwill (in millions): Americas Orthopedics EMEA Asia Pacific Americas Spine and Global Dental Immaterial Product Category Operating Segments Total Balance at January 1, 2020 Goodwill $ 7,699.8 $ 1,316.8 $ 507.4 $ - $ 1,729.3 $ 11,253.3 Accumulated impairment losses - (567.0 ) - - (1,086.6 ) (1,653.6 ) 7,699.8 749.8 507.4 - 642.7 9,599.7 Goodwill reportable segment change 1,661.3 17.0 51.0 - (1,729.3 ) - Accumulated impairment losses reportable segment change (1,086.6 ) - - - 1,086.6 - Other acquisitions 142.4 10.9 8.9 - - 162.2 Currency translation 80.2 18.2 13.5 - - 111.9 Impairment (142.0 ) (470.0 ) - - - (612.0 ) 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 15.4 5.2 2.3 - - 22.9 Other acquisitions 2.4 - - - - 2.4 Currency translation (64.4 ) (13.8 ) (14.1 ) (2.6 ) - (94.9 ) Balance at December 31, 2021 Goodwill 8,045.8 1,354.3 569.0 1,488.7 - 11,457.8 Accumulated impairment losses (7.7 ) (1,037.0 ) - (1,220.9 ) - (2,265.6 ) $ 8,038.1 $ 317.3 $ 569.0 $ 267.8 $ - $ 9,192.2 As discussed further in Note 19, our operating and reportable segments changed starting on April 1, 2021. 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. We perform our annual test of goodwill impairment in the fourth quarter of every year. In connection with the 2021 annual goodwill impairment test in the fourth quarter of 2021, we estimated the fair value of our Americas Orthopedics, Americas CMFT, EMEA, Asia Pacific and Global Dental reporting units using the income and market approaches. In the annual 2021 test, all our reporting units exceeded their carrying values by more than 20 percent. As discussed further in Note 10, we purchased A&E Medical, Relign and other immaterial companies during the year ended December 31, 2020, resulting in additional goodwill in 2020 and subsequent fair value adjustments recognized in 2021 as well. 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 $142.0 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 exceeded 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 primarily 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 previous 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 March 31, 2020 impairment test, we estimated that our cash flows in 2020 would be significantly lower than previously estimated in our prior 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 December 31, 2021, $317.3 million of goodwill remained in the EMEA reporting unit. The impairment charge of $142.0 million in our Global Dental reporting unit was primarily 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 might recover more slowly than our other reporting units because many dental procedures are not covered by insurance. Therefore, we estimated that economic uncertainty would likely result in patients deferring dental procedures for a longer period of time than procedures involving our other products. As of December 31, 2021, $267.8 million of goodwill remained 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. As of December 31, 2021, $290.9 million of goodwill remained in the Americas CMFT reporting unit. 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 revenues 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 will continue to monitor the fair value of our reporting units in our interim and annual reporting periods. If our estimated cash flows 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) additional recurrence of the COVID-19 virus, including variants, 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 from our restructuring programs, cost saving initiatives, and other 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. The components of identifiable intangible assets were as follows (in millions): Technology Intellectual Property Rights Trademarks and Trade Names Customer Relationships IPR&D Other Total As of December 31, 2021: Intangible assets subject to amortization: Gross carrying amount $ 3,804.6 $ 383.3 $ 665.3 $ 5,489.1 $ - $ 192.0 $ 10,534.3 Accumulated amortization (1,946.9 ) (231.6 ) (286.9 ) (2,111.1 ) - (128.0 ) (4,704.5 ) Intangible assets not subject to amortization: Gross carrying amount - - 457.0 - 13.0 - 470.0 Total identifiable intangible assets $ 1,857.7 $ 151.7 $ 835.4 $ 3,378.0 $ 13.0 $ 64.0 $ 6,299.8 As of December 31, 2020: Intangible assets subject to amortization: Gross carrying amount $ 3,902.0 $ 383.3 $ 677.0 $ 5,589.7 $ - $ 152.4 $ 10,704.4 Accumulated amortization (1,746.2 ) (211.6 ) (251.5 ) (1,820.9 ) - (110.9 ) (4,141.1 ) Intangible assets not subject to amortization: Gross carrying amount - - 462.7 - 29.5 - 492.2 Total identifiable intangible assets $ 2,155.8 $ 171.7 $ 888.2 $ 3,768.8 $ 29.5 $ 41.5 $ 7,055.5 We recognized IPR&D intangible asset impairment charges of $16.3 million, $33.0 million and $70.1 million in the years ended December 31, 2021, 2020 and 2019, respectively, in “Goodwill and intangible asset impairment” on our consolidated statements of earnings. These impairments were the result of terminated projects or delays and additional costs related to a project. 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 . Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2021 for the years ending December 31, 2022 through 2026 is (in millions): For the Years Ending December 31, 2022 $ 602.6 2023 595.6 2024 584.4 2025 535.1 2026 480.9 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Other Current Liabilities | 1 2 . Other Current Liabilities Other current liabilities consisted of the following (in millions): As of December 31, 2021 2020 Other current liabilities: License and service agreements $ 145.1 $ 172.7 Salaries, wages and benefits 357.0 319.5 Litigation and product liability 209.1 157.1 Deferred business combination payments - 145.0 Accrued liabilities 735.3 873.1 Total other current liabilities $ 1,446.5 $ 1,667.4 We have reclassified certain previously reported components of other current liabilities to conform to the current year presentation. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 1 3 . Debt Our debt consisted of the following (in millions): As of December 31, 2021 2020 Current portion of long-term debt Floating Rate Notes due 2021 - 200.0 3.375% Senior Notes due 2021 - 300.0 3.150% Senior Notes due 2022 750.0 - 1.414% Euro Notes due 2022 568.6 - Japan Term Loan A 101.6 - Japan Term Loan B 184.9 - Total short-term debt $ 1,605.1 $ 500.0 Long-term debt 3.150% Senior Notes due 2022 - 750.0 3.700% Senior Notes due 2023 86.3 300.0 1.450% Senior Notes due 2024 850.0 - 3.550% Senior Notes due 2025 863.0 2,000.0 3.050% Senior Notes due 2026 600.0 600.0 3.550% Senior Notes due 2030 257.5 900.0 2.600% Senior Notes due 2031 750.0 - 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 - 611.8 2.425% Euro Notes due 2026 568.6 611.8 1.164% Euro Notes due 2027 568.6 611.8 Japan Term Loan A - 113.3 Japan Term Loan B - 206.3 Debt discount and issuance costs (36.4 ) (48.2 ) Adjustment related to interest rate swaps (10.5 ) 3.1 Total long-term debt $ 5,463.7 $ 7,626.5 At December 31, 2021, our total current and non-current debt of $7.1 billion consisted of $6.8 billion aggregate principal amount of senior notes, which included €1.5 billion of Euro-denominated senior notes (“Euro notes”), an ¥11.7 billion Japanese Yen term loan agreement (“Japan Term Loan A”) and a ¥21.3 In 2021, we redeemed the $200.0 million outstanding principal amount of our Floating Rate Notes due 2021 and the $300.0 million outstanding principal amount of our 3.375% Senior Notes due 2021, in each case at a redemption price equal to 100% of the aggregate principal amount of the senior notes being redeemed, plus accrued and unpaid interest. On November 24, 2021, we completed the offering of $850.0 million aggregate principal amount of our 1.450% Senior Notes due November 22, 2024 and $750.0 million aggregate principal amount of our 2.600% Senior Notes due November 24, 2031. Interest is payable on the 1.450% Senior Notes due 2024 on May 22 and November 22 of each year until maturity. Interest is payable on the 2.600% Senior Notes due 2031 on May 24 and November 24 of each year until maturity. We received net proceeds of $1,599.8 million. On November 15, 2021, we commenced cash tender offers to purchase certain outstanding senior notes. The proceeds from the senior notes offering described above, together with cash on hand, were used to pay for the senior notes purchased in the cash tender offers. The cash tender offers resulted in the following principal amount of the notes tendered: $213.7 million of the 3.700% Senior Notes due 2023, $1,137.0 million of the 3.550% Senior Notes due 2025, and $642.5 million of the 3.550% Senior Notes due 2030. As a result, we recorded a loss on the extinguishment of debt in the amount of $165.1 million in our consolidated statement of earnings for the year ended December 31, 2021. The components of this loss were the reacquisition price of $ 2,154.8 million minus the carrying value of the debt of $ 1,982.7 million (including debt discount and issuance costs) plus debt tender fees of $ 5.0 million minus a gain of $ 12.0 million on a reverse treasury lock that we entered into to offset any increases or decreases to the premium associated with the tender offer from the date we entered into the lock . On December 30, 2020, we redeemed $250.0 million of the $450.0 million outstanding principal amount of our Floating Rate Notes due 2021, with cash on hand. 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 is payable on the 3.050% Senior Notes due 2026 on January 15 and July 15 of each year until maturity. Interest payable on the 3.550% Senior Notes is payable semi-annually, commencing on September 20, 2020 until maturity. The proceeds from this senior notes offering, together with cash on hand, were used to repay at maturity the $1.5 billion outstanding principal amount of our 2.700% Senior Notes due on April 1, 2020. On August 20, 2021, we entered into a new five-year revolving credit agreement (the “2021 Five-Year Credit Agreement”) and a new 364-day revolving credit agreement (the “2021 364-Day Revolving Credit Agreement”), as described below. These credit agreements will be used for general corporate purposes. The 2021 Five-Year Credit Agreement contains a five-year five-year The 2021 Five-Year Credit Agreement will mature on August 20, 2026, with two one-year extensions exercisable at our discretion and subject to required lender consent. The 2021 Five-Year Credit Agreement also includes an uncommitted incremental feature allowing us to request an increase of the facility by an aggregate amount of up to $500.0 million. As of December 31, 2021, there were no outstanding borrowings under the 2021 Five-Year Revolving Facility. Borrowings under the 2021 Five-Year Credit Agreement bear interest at floating rates, based upon either LIBOR for the applicable interest period or at an alternate base rate, in each case, plus an applicable margin determined by reference to our senior unsecured long-term debt credit rating. We pay a facility fee on the aggregate amount of the 2021 Five-Year Revolving Facility at a rate determined by reference to our senior unsecured long-term debt credit rating. The 2021 Five-Year 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. The Five-Year Credit Agreement also requires us to maintain a consolidated indebtedness to consolidated EBITDA ratio of no greater than 4.5 to 1.0 as of the last day of any period of four consecutive fiscal quarters (with such ratio subject to increase to 5.0 to 1.0 for a period of time in connection with a qualified material acquisition and certain other restrictions). We were in compliance with all covenants under the 2021 Five-Year Credit Agreement as of December 31, 2021. The 2021 364-Day Revolving Credit Agreement is an unsecured revolving credit facility in the principal amount of $1.0 billion (the “2021 364-Day Revolving Facility”). The 2021 364-Day Revolving Credit Agreement replaced a credit agreement entered into on September 18, 2020 which was also a 364-day unsecured revolving credit facility of $1.0 billion (the “September 2020 Revolving Facility”). There were no borrowings outstanding under the September 2020 Revolving Facility when it was terminated. The 2021 364-Day Revolving Facility will mature on August 19, 2022. Borrowings under the 2021 364-Day Revolving Credit Agreement bear interest at floating rates based upon either LIBOR for the applicable interest period or at an alternate base rate, in each case, plus an applicable margin determined by reference to our senior unsecured long-term debt credit rating. We pay a facility fee on the aggregate amount of the 2021 364-Day Revolving Facility at a rate determined by reference to our senior unsecured long-term debt credit rating. The 2021 364-Day Revolving 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 2021 364-Day Revolving Credit Agreement also requires us to maintain a consolidated indebtedness to consolidated EBITDA ratio of no greater than 4.5 to 1.0 as of the last day of any period of four consecutive fiscal quarters (with such ratio subject to increase to 5.0 to 1.0 in connection with a qualified material acquisition and certain other restrictions). We were in compliance with all covenants under the 2021 364-Day Revolving Credit Agreement, as of December 31, 2021. As of December 31, 2021, there were no outstanding borrowings under the 2021 364-Day Revolving Credit Agreement. The estimated fair value of our senior notes as of December 31, 2021, based on quoted prices for the specific securities from transactions in over-the-counter markets (Level 2), was $7,216.4 million. The estimated fair value of Japan Term Loan A and Japan Term Loan B, in the aggregate, as of December 31, 2021, based upon publicly available market yield curves and the terms of the debt (Level 2), was $286.2 million. We entered into interest rate swap agreements which we designated as fair value hedges of underlying fixed-rate obligations on our senior notes due 2019 and 2021. These fair value hedges were settled in 2016. In 2018 and 2019, we entered into cross-currency interest rate swaps that we designated as net investment hedges. The excluded component of these net investment hedges is recorded in interest expense, net. See Note 15 for additional information regarding our interest rate swap agreements. At December 31, 2021 and 2020, the weighted average interest rate for our borrowings was 2.8 percent and 3.0 percent, respectively. We paid $219.0 million, $193.1 million, and $226.9 million in interest during 2021, 2020, and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 1 4 . Accumulated Other Comprehensive Income 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 amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan. See Note 16 for more information on our defined benefit plans. The following table shows the changes in the components of AOCI, net of tax (in millions): Foreign Cash Defined Currency Flow Benefit Total Translation Hedges Plan Items AOCI Balance December 31, 2020 $ (7.2 ) $ (55.6 ) $ (235.0 ) $ (297.8 ) AOCI before reclassifications (99.9 ) 86.4 73.5 60.0 Reclassifications to statements of earnings - 1.3 4.9 6.2 Balance December 31, 2021 $ (107.1 ) $ 32.1 $ (156.6 ) $ (231.6 ) The following table shows the reclassification adjustments from AOCI (in millions): Amount of Gain / (Loss) Reclassified from AOCI For the Years Ended December 31, Location on Component of AOCI 2021 2020 2019 Statements of Earnings Cash flow hedges Foreign exchange forward contracts $ (0.8 ) $ 45.4 $ 38.4 Cost of products sold Interest rate swaps - - 2.8 Interest expense, net Forward starting interest rate swaps (0.6 ) (0.6 ) (0.6 ) Interest expense, net (1.4 ) 44.8 40.6 Total before tax (0.1 ) 6.3 5.5 Provision (benefit) for income taxes $ (1.3 ) $ 38.5 $ 35.1 Net of tax Defined benefit plans Prior service cost $ 4.0 $ 3.9 $ 7.3 Other income (expense), net Curtailment gain - - 7.2 Other income (expense), net Unrecognized actuarial loss (11.1 ) (8.5 ) (21.8 ) Other income (expense), net (7.1 ) (4.6 ) (7.3 ) Total before tax (2.2 ) (1.7 ) (2.3 ) Provision (benefit) for income taxes $ (4.9 ) $ (2.9 ) $ (5.0 ) Net of tax Total reclassifications $ (6.2 ) $ 35.6 $ 30.1 Net of tax The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions): For the Years Ended December 31, Before Tax Tax Net of Tax 2021 2020 2019 2021 2020 2019 2021 2020 2019 Foreign currency cumulative translation adjustments $ (54.8 ) $ (43.4 ) $ 12.1 $ 45.1 $ (69.0 ) $ 13.6 $ (99.9 ) $ 25.6 $ (1.5 ) Unrealized cash flow hedge gains (losses) 102.5 (42.7 ) 34.6 16.1 (9.2 ) 4.0 86.4 (33.5 ) 30.6 Reclassification adjustments on cash flow hedges 1.4 (44.8 ) (40.6 ) 0.1 (6.3 ) (5.5 ) 1.3 (38.5 ) (35.1 ) Adjustments to prior service cost and unrecognized actuarial assumptions 96.9 (20.9 ) (56.4 ) 18.5 (11.4 ) (7.9 ) 78.4 (9.5 ) (48.5 ) Total Other Comprehensive Income (Loss) $ 146.0 $ (151.8 ) $ (50.3 ) $ 79.8 $ (95.9 ) $ 4.2 $ 66.2 $ (55.9 ) $ (54.5 ) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 1 5 . 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. There was no remaining unamortized balance as of December 31, 2021 related to these discontinued hedges, since the unamortized balance was recognized in full upon the end of the maturity period of the hedged senior notes in the third quarter of 2021. As of December 31, 2021 and December 31, 2020, the following amounts were recorded on our 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 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Current portion of long-term debt $ - $ 303.0 $ - $ 3.1 Long-term debt 985.2 - (10.5 ) - 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 and other foreign currency exchange forward contracts 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 N otes in December 2016 and Novemb er 2019, as discussed in Note 13 , and designated 100 percent of the Euro N otes to hedge our net investment in certain wholly-owned foreign subsidiaries that have a functional currency of Euro. All changes in the fair value of the hedging instrument designated as a net investment hedge are recorded as a component of AOCI in our consolidated balance sheets. At December 31, 2021, we had receive-fixed-rate, pay-fixed-rate cross-currency interest rate swaps with notional amounts outstanding of Euro 675 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 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 eliminated. We recognize the excluded component in interest expense, net on our 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 consolidated statements of cash flows. In the twelve-month period ended December 31, 2021, Euro 775 million of these cross-currency interest rate swaps matured at a loss of $40.0 million. The settlement of this loss with the counterparties is reflected in investing cash flows in our consolidated statements of cash flows and will remain in AOCI on our 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 consolidated statements of cash flows, the settlements of these cash flow hedges are recognized in operating cash flows. For foreign currency exchange forward contracts outstanding at December 31, 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 January 2022 through June 2024. As of December 31, 2021, the notional amounts of outstanding forward contracts entered into with third parties to purchase U.S. Dollars were $1,295.2 million. As of December 31, 2021, the notional amounts of outstanding forward contracts entered into with third parties to purchase Swiss Francs were $347.0 million. Derivatives Not Designated as Hedging Instruments We enter into foreign currency forward exchange contracts with terms of one to three months to manage currency exposures for monetary assets and liabilities denominated in a currency other than an entity’s functional currency. 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 amount of these gains/losses is recorded in other income (expense), net. Outstanding contracts are recorded on the balance sheet at fair value 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. As discussed in Note 13, in 2021 we entered into a reverse treasury lock related to our bond tender offer to offset any increases or decreases to the premium associated with the tender offer from the date we entered into the lock. We recognized a gain of $12.0 million that was included in the loss on early extinguishment of debt. 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 consolidated statements of earnings, consolidated statements of comprehensive income (loss) and consolidated balance sheets (in millions): Amount of Gain / (Loss) Amount of Gain / (Loss) Recognized in AOCI Location on Reclassified from AOCI Years Ended December 31, Statement of Years Ended December 31, Derivative Instrument 2021 2020 2019 Earnings 2021 2020 2019 Foreign exchange forward contracts $ 102.5 $ (42.7 ) $ 34.6 Cost of products sold $ (0.8 ) $ 45.4 $ 38.4 Interest rate swaps - - - Interest expense, net - - 2.8 Forward starting interest rate swaps - - - Interest expense, net (0.6 ) (0.6 ) (0.6 ) $ 102.5 $ (42.7 ) $ 34.6 $ (1.4 ) $ 44.8 $ 40.6 The fair value of outstanding derivative instruments designated as cash flow hedges and recorded on the consolidated balance sheet at December 31, 2021, together with settled derivatives where the hedged item has not yet affected earnings, was a net unrealized gain of $33.8 million, or $32.1 million after taxes, which is deferred in AOCI. A gain of $27.9 million, or $23.6 million after taxes, is expected to be reclassified to earnings in cost of products sold and a loss of $0.7 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 effects of fair value, cash flow and net investment hedge accounting on our 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 Years Ended December 31, 2021 2020 2019 Cost of Interest Cost of Interest Cost of Interest Products Expense, Products Expense, Products Expense, 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 $ 2,341.0 $ (208.4 ) $ 2,128.3 $ (212.0 ) $ 2,252.6 $ (226.9 ) The effects of fair value, cash flow and net investment hedging: Gain on fair value hedging relationships Discontinued interest rate swaps - 3.1 - 3.3 - 8.2 Interest rate swaps - 6.4 - - - - Gain (loss) on cash flow hedging relationships Foreign exchange forward contracts (0.8 ) - 45.4 - 38.4 - Interest rate swaps - - - - - 2.8 Forward starting interest rate swaps - (0.6 ) - (0.6 ) - (0.6 ) Gain on net investment hedging relationships Cross-currency interest rate swaps - 37.5 - 53.5 - 52.2 Derivatives Not Designated as Hedging Instruments The following gains/(losses) from these derivative instruments were recognized on our consolidated statements of earnings (in millions): Location on Years Ended December 31, Derivative Instrument Statements of Earnings 2021 2020 2019 Foreign exchange forward contracts Other income (expense), net $ (1.8 ) $ 10.6 $ (11.0 ) Reverse treasury lock Other income (expense), net 12.0 - - These gains/(losses) do not reflect losses of $3.7 million, $22.8 million and $3.4 million in 2021, 2020 and 2019, respectively, recognized in other income (expense), 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 December 31, 2021 and 2020, all derivative instruments are recorded at fair value on our consolidated balance sheets. On our 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 December 31, 2021 As of December 31, 2020 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Asset Derivatives Designated as Hedges Foreign exchange forward contracts Other current assets $ 42.3 Other current assets $ 12.2 Cross-currency interest rate swaps Other current assets $ 16.3 Other current assets $ - Foreign exchange forward contracts Other assets 20.9 Other assets 3.7 Cross-currency interest rate swaps Other assets 6.7 Other assets - Total asset derivatives $ 86.2 $ 15.9 Asset Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current assets $ 1.4 Other current assets $ 1.5 Liability Derivatives Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 9.6 Other current liabilities $ 37.4 Cross-currency interest rate swaps Other current liabilities 0.1 Other current liabilities 55.0 Foreign exchange forward contracts Other long-term liabilities 1.5 Other long-term liabilities 26.5 Cross-currency interest rate swaps Other long-term liabilities 3.3 Other long-term liabilities 28.3 Interest rate swaps Other long-term liabilities 10.5 Other long-term liabilities - Total liability derivatives $ 25.0 $ 147.2 Liability Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 1.8 Other current liabilities $ 3.8 The table below presents the effects of our master netting agreements on our consolidated balance sheets (in millions): As of December 31, 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 $ 42.3 $ 9.5 $ 32.8 $ 12.2 $ 11.7 $ 0.5 Cash flow hedges Other assets 20.9 1.3 19.6 3.7 3.7 - Derivatives not designated as hedges Other current assets 1.4 0.3 1.1 1.5 0.6 0.9 Liability Derivatives Cash flow hedges Other current liabilities 9.6 9.5 0.1 37.4 11.7 25.7 Cash flow hedges Other long-term liabilities 1.5 1.3 0.2 26.5 3.7 22.8 Derivatives not designated as hedges Other current liabilities 1.8 0.3 1.5 3.8 0.6 3.2 The following net investment hedge gains (losses) were recognized on our consolidated statements of comprehensive income (loss) (in millions): Amount of Gain / (Loss) Recognized in AOCI Years Ended December 31, Derivative Instrument 2021 2020 2019 Euro Notes $ 129.6 $ (151.5 ) $ 10.7 Cross-currency interest rate swaps 103.0 (143.8 ) 47.9 $ 232.6 $ (295.3 ) $ 58.6 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefit Plans | 1 6 . Retirement Benefit Plans We have defined benefit pension plans covering certain U.S. and Puerto Rico employees. Plan benefits are primarily based on years of credited service and the participant’s average eligible compensation. The U.S. and Puerto Rico plans are frozen; meaning there are no new participants that can join the plan and participants in the plan do not accrue additional years of service or compensation. In addition to the U.S. and Puerto Rico defined benefit pension plans, we sponsor various foreign pension arrangements, including retirement and termination benefit plans required by local law or coordinated with government sponsored plans. We use a December 31 measurement date for our benefit plans. Defined Benefit Plans The components of net pension expense for our defined benefit retirement plans were as follows (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Service cost $ 0.9 $ 0.7 $ 7.1 $ 24.7 $ 24.7 $ 19.0 Interest cost 10.5 13.9 16.2 4.9 5.4 9.0 Expected return on plan assets (29.8 ) (32.9 ) (32.4 ) (15.6 ) (13.3 ) (13.4 ) Curtailment gain - - (7.2 ) - - - Settlements 6.4 0.5 0.8 0.5 (0.5 ) - Amortization of prior service cost 0.3 0.3 (3.4 ) (4.3 ) (4.2 ) (3.9 ) Amortization of unrecognized actuarial loss 8.6 7.2 19.3 2.5 1.3 2.5 Net periodic benefit (income) expense $ (3.1 ) $ (10.3 ) $ 0.4 $ 12.7 $ 13.4 $ 13.2 In our consolidated statements of earnings, service cost is reported in the same location as other compensation costs arising from services rendered by the pertinent employees while the other components of net pension expense are reported in other income (expense), net. The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.04 % 3.40 % 4.38 % 0.63 % 0.73 % 1.44 % Rate of compensation increase - - 3.29 % 2.39 % 2.28 % 2.50 % Expected long-term rate of return on plan assets 6.75 % 7.75 % 7.75 % 2.09 % 2.17 % 2.14 % The expected long-term rate of return on plan assets is based on the historical and estimated future rates of return on the different asset classes held in the plans. The expected long-term rate of return is the weighted average of the target asset allocation of each individual asset class. We believe that historical asset results approximate expected market returns applicable to the funding of a long-term benefit obligation. Discount rates were determined for each of our defined benefit retirement plans at their measurement date to reflect the yield of a portfolio of high quality bonds matched against the timing and amounts of projected future benefit payments. Changes in projected benefit obligations and plan assets were (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation - beginning of year $ 516.9 $ 472.0 $ 819.3 $ 740.4 Service cost 0.9 0.7 24.7 24.7 Interest cost 10.5 13.9 4.9 5.4 Plan amendments - - - 0.2 Employee contributions - - 23.4 22.1 Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Actuarial loss 3.0 55.6 6.1 12.5 Expenses paid - - (0.2 ) (0.3 ) Settlement (14.9 ) (1.3 ) (3.0 ) (4.5 ) Translation (gain) loss - - (25.6 ) 58.6 Projected benefit obligation - end of year $ 503.1 $ 516.9 $ 807.9 $ 819.3 For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Plan assets at fair market value - beginning of year $ 474.1 $ 444.9 $ 756.7 $ 665.2 Actual return on plan assets 50.5 51.4 86.6 40.0 Employer contributions 3.1 3.1 22.4 21.2 Employee contributions - - 23.4 22.1 Settlements (14.9 ) (1.3 ) (3.0 ) (4.5 ) Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Expenses paid - - (0.2 ) (0.3 ) Translation (loss) gain - - (23.0 ) 52.8 Plan assets at fair market value - end of year $ 499.5 $ 474.1 $ 821.2 $ 756.7 Funded status $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Amounts recognized in consolidated balance sheet: Prepaid pension $ 2.7 $ - $ 54.9 $ 20.4 Short-term accrued benefit liability (0.1 ) (0.1 ) (1.3 ) (1.3 ) Long-term accrued benefit liability (6.2 ) (42.7 ) (40.3 ) (81.7 ) Net amount recognized $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.70 % 2.70 % 3.40 % 0.73 % 0.61 % 0.74 % Rate of compensation increase - - 3.29 % 2.48 % 2.36 % 2.45 % Plans with projected benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation $ 468.5 $ 516.9 $ 38.8 $ 778.4 Plan assets at fair market value 462.2 474.1 8.1 709.5 Total accumulated benefit obligations and plans with accumulated benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Total accumulated benefit obligations $ 503.1 $ 516.9 $ 783.0 $ 801.3 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 468.5 516.9 36.4 560.9 Plan assets at fair market value 462.2 474.1 8.1 508.6 The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions): For the Years Ending December 31, U.S. and Puerto Rico Foreign 2022 $ 24.6 $ 32.8 2023 25.4 34.8 2024 25.7 33.6 2025 26.3 35.0 2026 27.0 34.7 2027-2031 133.1 175.7 The U.S. and Puerto Rico defined benefit retirement plans’ overall investment strategy is to balance total returns by emphasizing long-term growth of capital while mitigating risk. We have established target ranges of assets held by the plans of 30 to 65 percent for equity securities, 30 to 50 percent for debt securities and 0 to 15 percent in non-traditional investments. The plans strive to have sufficiently diversified assets so that adverse or unexpected results from one asset class will not have an unduly detrimental impact on the entire portfolio. We regularly review the investments in the plans and we may rebalance them from time-to-time based upon the target asset allocation of the plans. For the U.S. and Puerto Rico plans, we maintain an investment policy statement that guides the investment allocation in the plans. The investment policy statement describes the target asset allocation positions described above. Our benefits committee, along with our investment advisor, monitor compliance with and administer the investment policy statement and the plans’ assets and oversee the general investment strategy and objectives of the plans. Our benefits committee generally meets quarterly to review performance. The investment strategies of foreign based plans vary according to the plan provisions and local laws. The majority of the assets in foreign based plans are located in Switzerland-based plans. These assets are held in trusts and are commingled with the assets of other Swiss companies with representatives of all the companies making the investment decisions. The overall strategy is to maximize total returns while avoiding risk. The trustees of the assets have established target ranges of assets held by the plans of 30 to 50 percent in debt securities, 20 to 37 percent in equity securities, 15 to 24 percent in real estate, 3 to 15 percent in cash funds and 0 to 12 percent in other funds. The fair value of our U.S. and Puerto Rico pension plan assets by asset category was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3.8 $ 3.8 $ - $ - Equity securities 342.1 - 342.1 - Intermediate fixed income securities 153.6 - 153.6 - Total $ 499.5 $ 3.8 $ 495.7 $ - As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 7.3 $ 7.3 $ - $ - Equity securities 304.1 - 304.1 - Intermediate fixed income securities 162.7 - 162.7 - Total $ 474.1 $ 7.3 $ 466.8 $ - The fair value of our foreign pension plan assets was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 56.6 $ 56.6 $ - $ - Equity securities 185.5 149.6 35.9 - Fixed income securities 195.5 - 195.5 - Other types of investments 223.0 - 223.0 - Real estate 160.6 - - 160.6 Total $ 821.2 $ 206.2 $ 454.4 $ 160.6 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 42.7 $ 42.7 $ - $ - Equity securities 163.9 126.8 37.1 - Fixed income securities 262.5 - 262.5 - Other types of investments 142.3 - 142.3 - Real estate 145.3 - - 145.3 Total $ 756.7 $ 169.5 $ 441.9 $ 145.3 As of December 31, 2021 and 2020, our defined benefit pension plans’ assets did not hold any direct investment in Zimmer Biomet Holdings common stock. Equity securities are valued using a market approach, based on quoted prices for the specific security from transactions in active exchange markets (Level 1), or in some cases where we are invested in mutual or collective funds, based upon the net asset value per unit of the fund which is determined from quoted market prices of the underlying securities in the fund’s portfolio (Level 2). Fixed income securities are valued using a market approach, based upon quoted prices for the specific security or from institutional bid evaluations. Real estate is valued by discounting to present value the cash flows expected to be generated by the specific properties. The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions): December 31, 2021 Beginning Balance $ 145.3 Gain on assets sold 0.7 Change in fair value of assets 7.0 Net purchases and sales 11.9 Translation gain (4.3 ) Ending Balance $ 160.6 Contributions to the U.S. and Puerto Rico defined benefit retirement plans are estimated to be $1.8 million in 2022. Contributions to foreign defined benefit plans are estimated to be $19.1 million in 2022. We do not expect the assets in any of our plans to be returned to us in the next year. Defined Contribution Plans We also sponsor defined contribution plans for substantially all of the U.S. and Puerto Rico employees and certain employees in other countries. The benefits offered under these plans are reflective of local customs and practices in the countries concerned. We expensed $52.4 million, $49.6 million and $52.6 million related to these plans for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income The components of earnings (loss) before income taxes consisted of the following (in millions): For the Years Ended December 31, 2021 2020 2019 United States operations $ (275.7 ) $ (592.9 ) $ (125.9 ) Foreign operations 694.1 318.5 1,031.7 Total $ 418.4 $ (274.4 ) $ 905.8 The provision/(benefit) for income taxes and the income taxes paid consisted of the following (in millions): Current: Federal $ 32.2 $ (96.1 ) $ 65.5 State 10.4 4.6 9.8 Foreign 123.4 (57.5 ) 237.7 166.0 (149.0 ) 313.0 Deferred: Federal (115.8 ) (24.2 ) (90.2 ) State (21.6 ) (11.5 ) (4.2 ) Foreign (12.3 ) 47.7 (444.3 ) (149.7 ) 12.0 (538.7 ) Provision (benefit) for income taxes $ 16.3 $ (137.0 ) $ (225.7 ) Net income taxes paid $ 272.8 $ 147.4 $ 192.5 A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows: For the Years Ended December 31, 2021 2020 2019 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal deduction (3.0 ) 2.4 0.8 Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits (17.4 ) 14.9 (10.2 ) Change in valuation allowance (1.0 ) 1.5 1.5 Non-deductible expenses 2.0 (2.0 ) 0.4 Goodwill impairment - (46.1 ) - Tax rate change (0.4 ) 3.8 0.6 Tax impact of certain significant transactions 1.3 - - Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction 0.5 5.8 (4.5 ) R&D tax credit (2.8 ) 2.1 (1.2 ) Share-based compensation (0.6 ) 0.1 (0.4 ) Net uncertain tax positions, including interest and penalties 3.8 31.4 1.9 U.S. tax reform - - 0.1 Switzerland tax reform and certain restructuring transactions - 15.7 (34.8 ) Other 0.5 (0.7 ) (0.1 ) Effective income tax rate 3.9 % 49.9 % (24.9 ) % Our operations in Puerto Rico benefit from various tax incentive grants. These grants expire between fiscal years 2026 and 2029. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are recorded to reduce deferred income tax assets when it is more likely than not that an income tax benefit will not be realized. We reclassified certain prior period amounts to conform to the current period presentation. The components of deferred taxes consisted of the following (in millions): As of December 31, 2021 2020 Deferred tax assets: Inventory $ 273.6 $ 297.2 Net operating loss carryover 463.8 511.2 Tax credit carryover 86.6 55.1 Capital loss carryover 8.6 9.0 Product liability and litigation 45.8 53.9 Accrued liabilities 103.9 86.1 Share-based compensation 32.6 30.4 Accounts receivable 19.8 19.0 Foreign currency items - 57.4 Other 55.4 19.2 Total deferred tax assets 1,090.1 1,138.5 Less: Valuation allowances (470.1 ) (542.1 ) Total deferred tax assets after valuation allowances 620.0 596.4 Deferred tax liabilities: Fixed assets $ 132.7 $ 119.2 Intangible assets 687.5 787.6 Foreign currency items 3.8 - Other 32.2 28.2 Total deferred tax liabilities 856.2 935.0 Total net deferred income taxes $ (236.2 ) $ (338.6 ) We have reclassified certain previously reported components of deferred taxes to conform to the current year presentation. At December 31, 2021, the following net operating loss, tax credit carryovers, and capital loss carryovers are available to reduce future federal, state and foreign taxable earnings (in millions): Expiration Period: Net operating loss carryover Tax credit carryover Capital loss carryover 1-5 years $ 3.3 $ 15.1 $ 1.7 6-10 years 52.7 62.4 - 11+ years 279.5 1.6 - Indefinite 128.3 7.5 6.9 463.8 86.6 8.6 Valuation allowances $ 401.6 $ 46.7 $ 8.6 The remaining valuation allowances booked against deferred tax assets of $13.2 million related primarily to accrued liabilities and intangible assets that management believes, more likely than not, will not be realized. We intend to repatriate at least $5.0 to $6.0 billion of unremitted earnings, of which the additional tax related to remitting earnings is deemed immaterial as a portion of these earnings has already been taxed as toll tax or GILTI and is not subject to further U.S. federal tax. Portions of the additional tax would also be offset by allowable foreign tax credits. Of the $5.0 to $6.0 billion amount, we have an estimated $4.6 billion of cash and intercompany notes available to repatriate and the remainder is invested in the operations of our foreign entities. The remaining amounts earned overseas are expected to be permanently reinvested outside of the United States. If the Company decides at a later date to repatriate these earnings to the U.S., the Company would be required to provide for the net tax effects on these amounts. The Company estimates that the total tax effect of this repatriation would not be significant under current enacted tax laws and regulations and at current currency exchange rates. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions): For the Years Ended December 31, 2021 2020 2019 Balance at January 1 $ 619.4 $ 741.8 $ 685.5 Increases related to prior periods 11.5 75.3 24.7 Decreases related to prior periods (12.7 ) (158.3 ) (35.6 ) Increases related to current period 7.3 3.4 133.2 Decreases related to settlements with taxing authorities (65.1 ) (14.6 ) (60.2 ) Decreases related to lapse of statute of limitations (1.8 ) (28.2 ) (5.8 ) Balance at December 31 $ 558.6 $ 619.4 $ 741.8 Amounts impacting effective tax rate, if recognized balance at December 31 $ 426.4 $ 473.9 $ 599.2 We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. During 2021, we accrued interest and penalties of $8.9 million, and as of December 31, 2021, had a recognized liability for interest and penalties of $116.4 million, which does not include any increase related to business combinations. During 2020, we released interest and penalties of $1.7 million, and as of December 31, 2020, had a recognized liability for interest and penalties of $107.5 million, which does not include any increase related to business combinations. During 2019, we accrued interest and penalties of $15.0 million, and as of December 31, 2019, had a recognized liability for interest and penalties of $109.2 million, which does not include any increase related to business combinations. We operate on a global basis and are subject to numerous and complex tax laws and regulations. Additionally, tax laws have and continue to undergo rapid changes in both application and interpretation by various countries, including state aid interpretations and the Organization for Economic Cooperation and Development led initiatives. 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 $140 million decrease to a $20 million increase. We are under continuous audit by the Internal Revenue Service (“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. State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state impact of any federal changes generally remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax return positions in the process of examination, administrative appeals or litigation. In other major jurisdictions, open years are generally 2014 or later. 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 2021, we recognized benefits of $6.9 million related to certain adjustments to the estimated net deferred tax asset from the filing of tax returns. |
Capital Stock and Earnings per
Capital Stock and Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings per Share | 1 8 . Capital Stock and Earnings per Share We are authorized to issue 250.0 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2021. The numerator for both basic and diluted earnings per share is net earnings available to common stockholders. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards. The following is a reconciliation of weighted average shares for the basic and diluted share computations (in millions): For the Years Ended December 31, 2021 2020 2019 Weighted average shares outstanding for basic net earnings per share 208.6 207.0 205.1 Effect of dilutive stock options and other equity awards 1.8 - 1.6 Weighted average shares outstanding for diluted net earnings per share 210.4 207.0 206.7 For the years ended December 31, 2021 and 2019, an average of 1.3 million options and 0.9 million options, respectively, to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock. Since we incurred a net loss in the year ended December 31, 2020, no dilutive stock options or other equity awards were included as diluted shares. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Data | 19. Segment Data We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; spine, craniomaxillofacial and thoracic products (“CMFT”); 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 spinoff of ZimVie 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 certain 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, litigation settlement gain, certain European Union Medical Device Regulation expenses, other charges and corporate functions. Corporate functions include corporate legal, finance, information technology, human resources and other corporate departments as well as stock-based compensation. 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 other information by segment is as follows (in millions): Net Sales Operating Profit (Loss) Depreciation and Amortization Year Ended December 31, Year Ended December 31, Year Ended December 31, 2021 2020 2019 2021 2020 2019 2021 2020 2019 Americas Orthopedics $ 4,102.1 $ 3,699.5 $ 4,148.8 $ 1,709.3 $ 1,528.2 $ 1,831.8 $ 143.1 $ 135.6 $ 126.6 EMEA 1,533.8 1,288.6 1,623.1 392.7 308.9 484.0 74.4 77.5 77.0 Asia Pacific 1,318.3 1,256.9 1,323.8 429.4 420.5 472.7 74.6 71.3 65.3 Americas Spine and Global Dental 882.0 779.5 886.5 136.0 105.6 150.9 26.0 32.7 35.6 Total $ 7,836.2 $ 7,024.5 $ 7,982.2 Corporate Functions (632.2 ) (754.1 ) (750.9 ) 133.6 118.0 117.3 Inventory and manufacturing-related charges (41.8 ) (54.2 ) (53.9 ) - - - Intangible asset amortization (615.7 ) (597.6 ) (584.3 ) 615.7 597.6 584.3 Goodwill and intangible asset impairment (16.3 ) (645.0 ) (70.1 ) - - - Restructuring and other cost reduction initiatives (130.5 ) (116.9 ) (50.0 ) - - - Quality remediation (53.2 ) (49.8 ) (87.6 ) - - - Acquisition, integration, divestiture and related (81.8 ) (23.8 ) (12.2 ) - - - Litigation (192.9 ) (159.8 ) (65.0 ) - - - Litigation settlement gain - - 23.5 - - - European Union Medical Device Regulation (46.5 ) (25.3 ) (30.9 ) - - - Certain R&D agreements (65.0 ) - - - - - Other charges (11.4 ) (24.5 ) (120.5 ) - - - Total $ 780.1 $ (87.8 ) $ 1,137.5 $ 1,067.4 $ 1,032.7 $ 1,006.1 We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions): As of December 31, 2021 2020 United States $ 1,212.6 $ 1,252.6 Other countries 803.9 795.1 Property, plant and equipment, net $ 2,016.5 $ 2,047.7 U.S. sales were $4,529.5 million, $4,123.5 million, and $4,592.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. Sales within any other individual country were less than 10 percent of our consolidated sales in each of those years. Sales are attributable to a country based upon the customer's country of domicile. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 20 . Leases We own most of our manufacturing facilities, but lease various office space, vehicles and other less significant assets throughout the world. Our contracts contain a lease if they convey a right to control the use of an identified asset, either explicitly or implicitly, in exchange for consideration. As allowed by GAAP, we have elected not to recognize a right-of-use asset nor a lease liability for leases with an initial term of twelve months or less. Additionally, we have elected not to separate non-lease components from the leased components in the valuation of our right-of-use asset and lease liability for all asset classes. Our lease contracts are a necessary part of our business, but we do not believe they are significant to our overall operations. We do not have any significant finance leases. Additionally, we do not have significant leases: where we are considered a lessor; where we sublease our assets; with an initial term of twelve months or less; with related parties; with residual value guarantees; that impose restrictions or covenants on us; or that have not yet commenced, but create significant rights and obligations against us. Our real estate leases generally have terms of between 5 to 10 years and contain lease extension options that can vary from month-to-month extensions to up to 5 year extensions. We include extension options in our lease term if we are reasonably certain to exercise that option. Under GAAP, we are required to discount our lease liabilities to present value using the rate implicit in the lease, or our incremental borrowing rate for a similar term as the lease term if the implicit rate is not readily available. We generally do not have adequate information to know the implicit rate in a lease and therefore use our incremental borrowing rate. Under GAAP, the incremental borrowing rate must be on a collateralized basis, but our debt arrangements are unsecured. We have determined our incremental borrowing rate by using our credit rating to estimate our unsecured borrowing rate and applying reasonable assumptions to reduce the unsecured rate for a risk adjustment effect from collateral. Information on our leases is as follows ($ in millions): For the Years Ended December 31, 2021 2020 2019 Lease cost $ 85.8 $ 83.7 $ 76.0 Cash paid for leases recognized in operating cash flows $ 86.3 $ 81.4 $ 73.6 Right-of-use assets obtained in exchange for new lease liabilities $ 96.4 $ 83.5 $ 55.0 As of December 31, 2021 2020 Right-of-use assets recognized in Other assets $ 271.2 $ 274.5 Lease liabilities recognized in Other current liabilities $ 69.3 $ 75.0 Lease liabilities recognized in Other long-term liabilities $ 220.2 $ 217.8 Weighted-average remaining lease term 5.9 years 5.8 years Weighted-average discount rate 2.0 % 2.3 % Our variable lease costs are not significant. Our future minimum lease payments as of December 31, 2021 were (in millions): For the Years Ending December 31, 2022 $ 73.8 2023 59.5 2024 47.7 2025 35.4 2026 28.7 Thereafter 62.4 Total 307.5 Less imputed interest 18.0 Total $ 289.5 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 2 1 . 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 on an undiscounted basis when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. For matters where a loss is believed to be reasonably possible, but not probable, or if no reasonable estimate of known or probable loss is available, no accrual has been made. When determining the estimated loss or range of loss, significant judgment is required. Estimates of probable losses resulting from litigation and other contingences are inherently difficult to predict, particularly when the matters are in early procedural stages with incomplete facts or legal discovery, involve unsubstantiated or indeterminate claims for damages, and/or potentially involve penalties, fines or punitive damages. We recognize litigation-related charges and gains in Selling, general and administrative expense on our consolidated statement of earnings. During the years ended December 31, 2021, 2020, and 2019, we recognized $204.3 million, $166.9 million, and $52.7 million, respectively, of net litigation-related charges. At December 31, 2021 and 2020, accrued litigation liabilities were $420.5 million and $319.4 million, respectively. These litigation-related charges and accrued liabilities reflect all of our litigation-related contingencies and not just the matters discussed below. The ultimate cost of litigation could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on our financial condition and results of operations. 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 ( In Re: Zimmer Durom Hip Cup Products Liability Litigation ). 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 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 Although we are vigorously defending these lawsuits, their ultimate resolution is uncertain. We accrued a litigation-related charge in this matter based on an estimate of the possible loss, as discussed above. 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 (In Re: Biomet M2a Magnum Hip Implant Product Liability Litigation) 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 trial 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. We continue to refine our estimates of the potential liability to resolve the remaining claims and lawsuits 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 an order issued in September 2021, the District Court Darmstadt in charge of this matter decided that a technical expert is to be appointed to assess Heraeus’ alleged trade secrets and the alleged misuse. 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. In June 2021, Heraeus extended its damage claims to include Merck KGaA as a defendant, arguing that Merck KGaA and the involved Zimmer Biomet entities are jointly and severally liable for Heraeus’ alleged damages. In October 2021, Merck KGaA requested that the claims against it be separated from the ongoing proceedings between Heraeus and Zimmer Biomet. As of December 31, 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. 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 United States: On September 8, 2014, Heraeus filed a complaint against a Biomet supplier, Esschem, Inc. (“Esschem”), in the U.S. District Court for the Eastern District of Pennsylvania. The lawsuit contains allegations that focus on two copolymer compounds that Esschem sold to Biomet, which Biomet incorporated into certain bone cement products that compete d with Heraeus’ bone cement products. The complaint allege s that Biomet helped Esschem to develop these copolymers, using Heraeus trade secrets that Biomet allegedly misappropriated. The complaint assert s a claim under the Pennsylvania Uniform Trade Secrets Act, as well as other various common law tort claims, all based upon the same trade secret misappropriation theory. Heraeus sought to enjoin Esschem from supplying the copolymers (which are no longer supplied to Biomet) to any third party and actual damages for global sales of cements including Esschem copolymers . The complaint also seeks punitive damages, costs and attorneys’ fees. Although Biomet was not a party to this lawsuit, Biomet agreed, at Esschem’s request and subject to certain limitations, to indemnify Esschem for any liability, damages and legal costs related to this matter. On November 3, 2014, the court entered an order denying Heraeus’ motion for a temporary restraining order. On June 30, 2016, the court entered an order denying Heraeus’ request to give preclusive effect to the factual findings in the Frankfurt Decision. On June 6, 2017, the court entered an order denying Heraeus’ motion to add Biomet as a party to the lawsuit. On January 26, 2018, the court entered an order granting Esschem’s motion for summary judgment on statute of limitations grounds and dismissed all of Heraeus’ claims with prejudice. On February 21, 2018, Heraeus filed a notice of appeal to the U.S. Court of Appeals for the Third Circuit, which heard oral argument on the appeal on October 23, 2018. On June 21, 2019, the Third Circuit partially reversed the decision of the U.S. District Court for the Eastern District of Pennsylvania granting Esschem summary judgment and remanded the case back to the lower court. On July 5, 2019, Esschem filed a petition in the Third Circuit for rehearing en banc and a motion in the alternative to certify a question of state law to the Supreme Court of Pennsylvania, which was denied on August 1, 2019. On January 8, 2021, the court entered a scheduling order for the completion of fact and expert discovery and filing of dispositive motions but did not set a trial date . The court also reappointed a discovery special master to adjudicate the various discovery disputes . 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 (focused on the prior formulation (-1) bone cements). 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 manufacturing, selling and offering to sell bone cements in the U.S. and Europe, and actual damages for global sales of bone cements. The amended complaint also seeks punitive damages, costs and attorneys’ fees. On April 18, 2018, the Zimmer Biomet parties filed a motion to dismiss both claims, which remains pending as of December 31, 2021. On May 2, 2020, the court granted the Zimmer Biomet parties’ motion to further stay the proceedings pending the outcome of a U.S. International Trade Commission (“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 current (-3) bone cements, worldwide. Zimmer Biomet notified the court that it intends to revise its pending motion to dismiss. As of December 31, 2021, the court has not dissolved the stay. 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 remained pending as of December 31, 2021. 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. 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 $2.3 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, who was subsequently appointed, to ascertain whether the trade secrets enforced by Heraeus are secret according to the law and have been protected by adequate protective measures In March 2021, Heraeus initiated damages proceedings, claiming damages of €13.84 million, or approximately $16.6 million. We requested a dismissal of the case, or, in the alternative, a stay of the proceedings pending the outcome of the proceedings in France (see below) in which Heraeus seeks global damages (except for Germany only). 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. As of December 31, 2021, Heraeus had not yet initiated damages proceedings against us but indicated it intended to do so. 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. Based on various developments in these lawsuits in both the United States and Europe in the fourth quarter of 2021, the parties’ interests in exploring a negotiated resolution, and to avoid the continuing risks associated with potential negative outcomes, the projected legal spend and management distraction associated with continuing litigation, we determined that it was in the best interest of our company and our stockholders to settle all litigation with Heraeus globally. On January 20, 2022, Zimmer Biomet and Heraeus entered into a confidential memorandum of understanding to fully resolve all global disputes between and among them relating to both Heraeus’ alleged technical trade secrets misappropriation relating to bone cement and Zimmer Biomet’s alleged business trade secrets misappropriation relating to bone cement. Among other terms and conditions, the confidential memorandum of understanding includes the dismissal of all lawsuits by both parties, mutual general releases benefitting both parties, and mutual covenants not to sue, as well as no admission of wrongdoing by either party and no admission concerning the validity or existence of either parties’ alleged trade secrets. Zimmer Biomet and Heraeus are in the process of formalizing a definitive settlement agreement, which will reflect the material terms in the confidential memorandum of understanding. Our accrued litigation expense was adjusted in 2021 to reflect the portion of the confidential memorandum of understanding in excess of existing accruals, and our settlement payment to Heraeus will be made in agreed installments over an approximately three-year period beginning upon the execution of the settlement agreement. 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 material ly false statements. On September 14, 2020, the defendants filed motions to dismiss the Chancery Court actions. Oral argument occurred on June 15, 2021. On August 15, 2021, the Chancery Court granted the defendants’ motion to dismiss and dismissed the Chancery Court actions with prejudice. On September 22, 2021, the plaintiffs in the Chancery Court actions filed a Notice of Appeal to the Delaware Supreme Court. 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 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. We have not recorded an expense related to damages in connection with these matters because any potential loss is not currently probable or reasonably estimable, and we are unable to reasonably estimate the range of loss, if any, that may result from these matters. 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 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 December 31, 2021, 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 consolidated balance sheets. These estimated payments could range from $ 0 to approximately $ million. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II. Valuation and Qualifying Accounts (in millions): Additions Balance at Charged Deductions / Effects of Balance at Beginning (Credited) Other Additions Foreign End of Description of Period to Expense to Reserve Currency Period Allowance for Doubtful Accounts: Year Ended December 31, 2019 $ 65.7 $ 5.5 $ (5.3 ) $ (0.9 ) $ 65.0 Year Ended December 31, 2020 65.0 21.8 (12.7 ) (1) 1.7 75.8 Year Ended December 31, 2021 75.8 15.1 (14.2 ) (2.1 ) 74.6 Deferred Tax Asset Valuation Allowances: Year Ended December 31, 2019 $ 390.9 $ (6.6 ) $ 165.7 (2) $ (3.9 ) $ 546.1 Year Ended December 31, 2020 546.1 (3.8 ) (3.2 ) (2) 3.0 542.1 Year Ended December 31, 2021 542.1 (4.4 ) (64.0 ) (2) (3.6 ) 470.1 (1) Includes the $3.1 cumulative-effect adjustment related to the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). (2) Primarily relate to amounts generated by tax rate changes or current year activity which have offsetting changes to the associated attribute and therefore there is no resulting impact on tax expense in the consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation - The consolidated financial statements include the accounts of Zimmer Biomet Holdings and its subsidiaries in which it holds a controlling financial interest. All significant intercompany accounts and transactions are eliminated. |
Use of Estimates | Use of Estimates - The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“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. |
Foreign Currency Translation | Foreign Currency Translation - The financial statements of our foreign subsidiaries are translated into U.S. Dollars using period-end exchange rates for assets and liabilities and average exchange rates for operating results. Unrealized translation gains and losses are included in accumulated other comprehensive loss in stockholders’ equity. When a transaction is denominated in a currency other than the subsidiary’s functional currency, we remeasure the transaction into the functional currency and recognize any transactional gains or losses in earnings. |
Shipping and Handling | Shipping and Handling - Amounts billed to customers for shipping and handling of products are reflected in net sales and are not significant. Expenses incurred related to shipping and handling of products are reflected in selling, general and administrative (“SG&A”) expenses and were $295.8 million, $269.9 million and $292.7 million for the years ended December 31, 2021, 2020 and 2019, respectively |
Research and Development | Research and Development - We expense all research and development (“R&D”) costs as incurred except when there is an alternative future use for the R&D. R&D costs include salaries, prototypes, depreciation of equipment used in R&D, consultant fees, service fees paid to collaborative partners, and arrangements to gain access to or acquire third-party in-process R&D projects with no alternative future use. Where contingent milestone payments are due to third parties under R&D arrangements, we expense the milestone payment obligations when it is probable that the milestone results will be achieved. |
Litigation | Litigation - We record an undiscounted liability for contingent losses, including future legal costs, settlements and judgments, when we consider it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. |
Quality Remediation | Quality remediation - We use the financial statement line item “Quality remediation” to recognize expenses related to addressing inspectional observations on Form 483 and a warning letter issued by the FDA following its inspections of our Warsaw North Campus facility, among other matters. See Note 21 for additional information about the Form 483 and warning letter. The majority of these expenses are related to consultants who are helping us to update previous documents and redesign certain processes. |
Restructuring and Other Cost Reduction Initiatives | Restructuring and other cost reduction initiatives - A restructuring is defined as a program that is planned and controlled by management, and materially changes either the scope of a business undertaken by an entity, or the manner in which that business is conducted. Restructuring charges include (i) employee termination benefits, (ii) contract termination costs and (iii) other related costs associated with exit or disposal activities. |
Acquisition, Integration and Related | Acquisition, integration, divestiture and related – We use the financial statement line item, “Acquisition, integration, divestiture and related” to recognize expenses resulting from the consummation of business mergers and acquisitions and the related integration of those businesses, and expenses related to the divestiture of our businesses. Acquisition, integration, divestiture and related gains and expenses are primarily composed of: • Consulting and professional fees related to third-party integration and divestiture consulting performed in a variety of areas, such as finance, tax, compliance, logistics and human resources, and legal fees related to the consummation of mergers and acquisitions or divestitures. • Employee termination benefits related to terminating employees with overlapping responsibilities in various areas of our business. • Dedicated project personnel expenses which include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our integration of acquired businesses and employees who have been notified of termination, but are continuing to work on transferring their responsibilities. • Contract termination expenses related to terminated contracts, primarily with sales agents and distribution agreements. • Other various expenses to relocate facilities, integrate information technology, losses incurred on assets resulting from the applicable acquisition, and other various expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents - We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value. |
Accounts Receivable | Accounts Receivable - Accounts receivable consists of trade and other miscellaneous receivables. We grant credit to customers in the normal course of business and maintain an allowance for expected credit losses. We determine the allowance for credit losses by geographic market and take into consideration historical credit experience, creditworthiness of the customer and other pertinent information. We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off the account against the allowance when we determine the account is uncollectible. The allowance for credit losses was $74.6 million and $75.8 million as of December 31, 2021 and 2020, respectively We also have receivables purchase arrangements with unrelated third parties to transfer portions of our trade accounts receivable balance . We terminated our purchase arrangements in the U.S. and Japan during the year ended December 31, 2020, but continue to have arrangements in Europe. Funds received from the transfers are recorded as an increase to cash and a reduction to accounts receivable outstanding in our 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 consolidated statements of cash flows. Net expenses resulting from the sales of receivables are recognized in SG&A expense. Net expenses include any resulting gains or losses from the sales of receivables, credit insurance and factoring fees . Under the previous arrangement in the U.S. and Japan, any collections that we made that were unremitted to the third parties we re recognized on our consolidated balance sheets under other current liabilities and in our consolidated statements of cash flows in financing activities. In Europe, we have no continuing involvement with the factored receivable. |
Inventories | Inventories - Inventories are stated at the lower of cost and net realizable value, with cost determined on a first-in first-out basis. |
Property, Plant and Equipment | Property, Plant and Equipment - Property, plant and equipment is carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on estimated useful lives of ten to forty years for buildings and improvements and three to eight years for machinery and equipment. Maintenance and repairs are expensed as incurred. We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount. An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value. |
Software Costs | Software Costs - We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended. Capitalized software costs generally include external direct costs of materials and services utilized in developing or obtaining computer software and compensation and related benefits for employees who are directly associated with the software project. Capitalized software costs are included in property, plant and equipment on our balance sheet and amortized on a straight-line or weighted average estimated user basis when the software is ready for its intended use over the estimated useful lives of the software, which approximate three to fifteen years. For cloud computing arrangements that are considered a service contract, our capitalization of implementation costs is aligned with the internal use software requirements. However, on our consolidated balance sheet these implementation costs are recognized in other noncurrent assets. On our consolidated statement of cash flows, these implementations costs are recognized in operating cash flows. The implementation costs are recognized on a straight-line basis over the expected term of the related service contract. |
Instruments | Instruments - Instruments are hand-held devices used by surgeons during total joint replacement and other surgical procedures. Instruments are recognized as long-lived assets and are included in property, plant and equipment. Undeployed instruments are carried at cost or realizable value. Instruments that have been deployed to be used in surgeries are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on average estimated useful lives, determined principally in reference to associated product life cycles, primarily five years. We review instruments for impairment whenever events or changes in circumstances indicate that the carrying value of an instrument may not be recoverable. Depreciation of instruments is recognized as SG&A expense. |
Goodwill | Goodwill - Goodwill is not amortized but is subject to annual impairment tests. Goodwill has been assigned to reporting units. Potential impairment of a reporting unit is identified by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed, the fair value of the reporting unit and the fair value of goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as estimated growth rates , forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount . If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the business unit exceeds the fair value. See Note 1 1 for more information regarding goodwill. |
Intangible Assets | Intangible Assets - Intangible assets are initially measured at their fair value. We have determined the fair value of our intangible assets either by the fair value of the consideration exchanged for the intangible asset or the estimated after-tax discounted cash flows expected to be generated from the intangible asset. Intangible assets with a finite life, including technology, certain trademarks and trade names, customer-related intangibles, intellectual property rights and patents and licenses are amortized on a straight-line basis over their estimated useful life or contractual life, which may range from less than one year to twenty years. Intangible assets with a finite life are tested for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Intangible assets with an indefinite life, including certain trademarks and trade names and in-process research and development (“IPR&D”) projects, are not amortized. Indefinite life intangible assets are assessed annually to determine whether events and circumstances continue to support an indefinite life. Intangible assets with an indefinite life are tested for impairment annually or whenever events or circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The amount of the impairment loss to be recorded would be determined based upon the excess of the asset’s carrying value over its fair value. The fair values of indefinite lived intangible assets are determined based upon a discounted cash flow analysis using the relief from royalty method or a qualitative assessment may be performed for any changes to the asset’s fair value from the last quantitative assessment. The relief from royalty method estimates the cost savings associated with owning, rather than licensing, assets. Significant assumptions are incorporated into these discounted cash flow analyses such as estimated growth rates, royalty rates and risk-adjusted discount rates. We may do a qualitative assessment when the results of the previous quantitative test indicated that the asset’s fair value was significantly in excess of its carrying value. In determining the useful lives of intangible assets, we consider the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, we consider the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Trademarks and trade names that do not have a wasting characteristic (i.e., there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life) are assigned an indefinite life. Trademarks and trade names that are related to products expected to be phased out are assigned lives consistent with the period in which the products bearing each brand are expected to be sold. For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition. Intellectual property rights are assigned useful lives that approximate the contractual life of any related patent or the period for which we maintain exclusivity over the intellectual property. |
Income Taxes | Income Taxes - We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the new tax rate is enacted. We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We operate on a global basis and are subject to numerous and complex tax laws and regulations. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Because income tax adjustments in certain jurisdictions can be significant, we record tax positions based upon our estimates. F or those tax positions where it is more likely than not that a tax benefit will be sustained, we ha ve recorded the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements . |
Derivative Financial Instruments | Derivative Financial Instruments - We measure all derivative instruments at fair value and report them on our consolidated balance sheet as assets or liabilities. We maintain written policies and procedures that permit, under appropriate circumstances and subject to proper authorization, the use of derivative financial instruments solely for risk management purposes. The use of derivative financial instruments for trading or speculative purposes is prohibited by our policy. See Note 15 for more information regarding our derivative and hedging activities. |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive Income (Loss) – Accumulated other comprehensive income (loss) (“AOCI”) refers to gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to stockholders’ equity. Our AOCI is comprised of foreign currency translation adjustments, including unrealized gains and losses on net investments hedges, unrealized gains and losses on cash flow hedges and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions. |
Treasury Stock | Treasury Stock - We account for repurchases of common stock under the cost method and present treasury stock as a reduction of stockholders’ equity. We reissue common stock held in treasury only for limited purposes. |
Noncontrolling Interest | Noncontrolling Interest - We have investments in other companies in which we have a controlling financial interest, but not 100 percent of the equity. Further information related to the noncontrolling interests of those investments have not been provided as it is not significant to our consolidated financial statements. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326). The new guidance describes the current expected credit loss (“CECL”) model which requires an estimate of expected impairment on financial instruments over the lifetime of the assets at each reporting date. Financial instruments in scope of the guidance include financial assets measured at amortized cost. Previous accounting guidance required recognition of impairment when it was probable the loss has been incurred. Under the CECL model, lifetime expected credit losses are measured and recognized at each reporting date based on historical experience, current conditions and forecasted information. We adopted this standard as of January 1, 2020. Adoption of this standard required the modified retrospective transition method, which resulted in a cumulative-effect adjustment to retained earnings of $3.1 million. The adoption primarily impacted our trade receivables. Our concentrations of credit risks are limited due to the large number of customers and their dispersion across a number of geographic areas. Substantially all of our trade receivables are concentrated in the public and private hospital and healthcare industry in the U.S. and internationally or with distributors or dealers who operate in international markets. Our historical credit losses have not been significant due to this dispersion and the financial stability of our customers. We consider credit losses immaterial to our business and, therefore, have not provided all the disclosures otherwise required by the standard. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Our policy for capitalizing implementation costs in a hosting arrangement was already aligned with the new guidance. ASU 2018-15 also provides guidance on how these implementation costs are to be recorded in the statement of earnings, balance sheet and statement of cash flows. We adopted this standard on a prospective basis as of January 1, 2020. The adoption of this standard did not have a material impact on our financial position, results of operations or cash flows. In December 2019, the FASB issued 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, a mong 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. In July 2021, the FASB issued ASU 2021-05 Lessors – Certain Leases with Variable Lease Payments which is an amendment to Accounting Standards Codification Topic 842 – Leases (“ASC 842”). Under the current ASC 842 guidance, variable payments are excluded from the measurement of the initial net investment in the lease if the payments do not depend on an index or a rate. For sales-type or direct financing leases, this could result in the recognition of a day-one loss for leases with entire or partial variable payments. ASU 2021-05 requires lessors to classify leases with entire or partial variable payments as operating leases if otherwise a day-one loss would be recognized. The ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those years. Early adoption of this ASU is permitted. The ASU can either be applied retrospectively to leases that were commenced or modified on or after the adoption of ASC 842 or applied prospectively to leases that commence or are modified after the adoption of ASU 2021-05. We have not entered into leases that are comprised entirely of variable lease payments and therefore the adoption of this ASU will not have an impact 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 from Contract with Customer | We recognize revenue when our performance obligations under the terms of a contract with our customer are satisfied. This happens when we transfer control of our products to the customer, which generally occurs upon implantation or when title passes upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring our product. Taxes collected from customers and remitted to governmental authorities are excluded from revenues. We sell products through three principal channels: 1) direct to healthcare institutions, referred to as direct channel accounts; 2) through stocking distributors and healthcare dealers; and 3) directly to dental practices and dental laboratories. In direct channel accounts and with some healthcare dealers, inventory is generally consigned to sales agents or customers so that products are available when needed for surgical procedures. No revenue is recognized upon the placement of inventory into consignment, as we retain the ability to control the inventory. Upon implantation, we issue an invoice and revenue is recognized. Consignment sales represented approximately 80 percent of our net sales in 2021. Pricing for products is generally predetermined by contracts with customers, agents acting on behalf of customer groups or by government regulatory bodies, depending on the market. Price discounts under group purchasing contracts are generally linked to volume of implant purchases by customer healthcare institutions within a specified group. At negotiated thresholds within a contract buying period, price discounts may increase. Payment terms vary by customer, but are typically less than 90 days. With sales to stocking distributors, some healthcare dealers and hospitals, dental practices and dental laboratories, revenue is generally recognized when control of our product passes to the customer, which can be upon shipment of the product or receipt by the customer. We estimate sales recognized in this manner represented approximately 20 percent of our net sales in 2021. These customers may purchase items in large quantities if incentives are offered or if there are new product offerings in a market, which could cause period-to-period differences in sales. It is our accounting policy to account for shipping and handling activities as a fulfillment cost rather than as an additional promised service. We have contracts with these customers or orders may be placed from available price lists. Payment terms vary by customer, but are typically less than 90 days. We offer standard warranties to our customers that our products are not defective. These standard warranties are not considered separate performance obligations. In limited circumstances, we offer extended warranties that are separate performance obligations. We have very few contracts that have multiple performance obligations. Since we do not have significant multiple element arrangements and essentially all of our sales are recognized upon implantation of a product or when title passes, very little judgment is required to allocate the transaction price of a contract or determine when control has passed to a customer. Our costs to obtain contracts consist primarily of sales commissions to employees or third-party agents that are earned when control of our product passes to the customer. Therefore, sales commissions are expensed as part of SG&A expenses at the same time revenue is recognized. Accordingly, we do not have significant contract assets, liabilities or future performance obligations. We offer volume-based discounts, rebates, prompt pay discounts, right of return and other various incentives which we account for under the variable consideration model. If sales incentives may be earned by a customer for purchasing a specified amount of our product, we estimate whether such incentives will be achieved and recognize these incentives as a reduction in revenue in the same period the underlying revenue transaction is recognized. We primarily use the expected value method to estimate incentives. Under the expected value method, we consider the historical experience of similar programs as well as review sales trends on a customer-by-customer basis to estimate what levels of incentives will be earned. Occasionally, products are returned and, accordingly, we maintain an estimated refund liability based upon the expected value method that is recorded as a reduction in revenue. |
Leases | We own most of our manufacturing facilities, but lease various office space, vehicles and other less significant assets throughout the world. Our contracts contain a lease if they convey a right to control the use of an identified asset, either explicitly or implicitly, in exchange for consideration. As allowed by GAAP, we have elected not to recognize a right-of-use asset nor a lease liability for leases with an initial term of twelve months or less. Additionally, we have elected not to separate non-lease components from the leased components in the valuation of our right-of-use asset and lease liability for all asset classes. Our lease contracts are a necessary part of our business, but we do not believe they are significant to our overall operations. We do not have any significant finance leases. Additionally, we do not have significant leases: where we are considered a lessor; where we sublease our assets; with an initial term of twelve months or less; with related parties; with residual value guarantees; that impose restrictions or covenants on us; or that have not yet commenced, but create significant rights and obligations against us. Our real estate leases generally have terms of between 5 to 10 years and contain lease extension options that can vary from month-to-month extensions to up to 5 year extensions. We include extension options in our lease term if we are reasonably certain to exercise that option. Under GAAP, we are required to discount our lease liabilities to present value using the rate implicit in the lease, or our incremental borrowing rate for a similar term as the lease term if the implicit rate is not readily available. We generally do not have adequate information to know the implicit rate in a lease and therefore use our incremental borrowing rate. Under GAAP, the incremental borrowing rate must be on a collateralized basis, but our debt arrangements are unsecured. We have determined our incremental borrowing rate by using our credit rating to estimate our unsecured borrowing rate and applying reasonable assumptions to reduce the unsecured rate for a risk adjustment effect from collateral. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Schedule of Net Sales by Geography | Net sales by geography are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Americas $ 4,800.2 $ 4,335.4 $ 4,875.8 EMEA 1,671.1 1,391.3 1,746.9 Asia Pacific 1,364.9 1,297.8 1,359.5 Total $ 7,836.2 $ 7,024.5 $ 7,982.2 |
Schedule of Net Sales by Product Category | Net sales by product category are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Knees $ 2,647.9 $ 2,378.3 $ 2,780.6 Hips 1,856.1 1,750.5 1,931.5 S.E.T 1,727.8 1,525.6 1,652.5 Spine & Dental 1,008.8 897.0 1,021.8 Other 595.6 473.1 595.8 Total $ 7,836.2 $ 7,024.5 $ 7,982.2 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Summary of Liabilities Recognized Related to Restructuring Plan | The following table summarizes the liabilities recognized related to the 2021 Restructuring Plan (in millions): Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2020 $ - $ - $ - $ - Additions 19.5 2.3 10.3 32.1 Cash payments - - - - Foreign currency exchange rate changes - - - - Balance, December 31, 2021 19.5 2.3 10.3 32.1 Expense estimated to be recognized for the 2021 Restructuring Plan $ 62.0 $ 167.0 $ 11.0 $ 240.0 Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2018 $ - $ - $ - $ - Additions 23.2 - 13.1 36.3 Cash Payments - - (9.0 ) (9.0 ) Balance, December 31, 2019 23.2 - 4.1 27.3 Additions 55.3 15.8 37.1 108.2 Cash payments (41.2 ) (4.9 ) (26.1 ) (72.2 ) Foreign currency exchange rate changes 1.4 - - 1.4 Balance, December 31, 2020 38.7 10.9 15.1 64.7 Additions 7.4 18.5 52.5 78.4 Cash payments (29.7 ) (12.9 ) (64.6 ) (107.2 ) Foreign currency exchange rate changes (1.6 ) - (0.1 ) (1.7 ) Balance, December 31, 2021 $ 14.8 $ 16.5 $ 2.9 $ 34.2 Expense incurred since the start of the 2019 Restructuring Plan $ 85.9 $ 34.3 $ 102.7 $ 222.9 Expense estimated to be recognized for the 2019 Restructuring Plan $ 180.0 $ 40.0 $ 155.0 $ 375.0 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation Expense | Share-based compensation expense was as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Total expense, pre-tax $ 85.3 $ 79.7 $ 84.3 Tax benefit related to awards 18.7 16.9 21.8 Total expense, net of tax $ 66.6 $ 62.8 $ 62.5 |
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2021 is as follows (options in thousands): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Intrinsic Value (in millions) Outstanding at January 1, 2021 7,423 $ 116.67 Options granted 1,278 163.47 Options exercised (871 ) 99.92 Options forfeited (219 ) 150.10 Options expired (64 ) 149.02 Outstanding at December 31, 2021 7,547 $ 125.32 6.0 $ 90.5 Vested or expected to vest as of December 31, 2021 7,291 $ 124.52 6.0 $ 90.0 Exercisable at December 31, 2021 4,805 $ 111.42 4.8 $ 85.6 |
Weighted Average Fair Value for Stock Options Granted | The following table presents information regarding the weighted average fair value of stock options granted, the assumptions used to determine fair value, the intrinsic value of options exercised and the tax benefit of options exercised in the indicated year: For the Years Ended December 31, 2021 2020 2019 Dividend yield 0.6 % 0.6 % 0.8 % Volatility 30.3 % 22.3 % 22.1 % Risk-free interest rate 0.7 % 1.3 % 2.4 % Expected life (years) 5.4 5.0 5.5 Weighted average fair value of options granted $ 43.91 $ 31.65 $ 28.68 Intrinsic value of options exercised (in millions) $ 54.6 $ 50.1 $ 76.8 Tax benefit of options exercised (in millions) $ 10.8 $ 9.6 $ 15.8 |
Summary of Nonvested RSU Activity | A summary of nonvested RSU activity for the year ended December 31, 2021 is as follows (RSUs in thousands): Weighted Average Grant Date RSUs Fair Value Outstanding at January 1, 2021 1,070 $ 129.65 Granted 556 171.37 Vested (239 ) 119.32 Forfeited (348 ) 122.90 Outstanding at December 31, 2021 1,039 146.58 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following (in millions): As of December 31, 2021 2020 Finished goods $ 1,928.5 $ 1,954.6 Work in progress 202.1 223.7 Raw materials 263.9 272.4 Inventories $ 2,394.5 $ 2,450.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in millions): As of December 31, 2021 2020 Land $ 27.3 $ 27.7 Building and equipment 2,311.4 2,197.8 Capitalized software costs 496.7 455.8 Instruments 3,776.2 3,518.3 Construction in progress 124.0 125.3 6,735.6 6,324.9 Accumulated depreciation (4,719.1 ) (4,277.2 ) Property, plant and equipment, net $ 2,016.5 $ 2,047.7 |
Fair Value Measurements of As_2
Fair Value Measurements of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): As of December 31, 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 hedges, current and long-term Foreign currency forward contracts $ 52.4 $ - $ 52.4 $ - Cross-currency interest rate swaps 23.0 - 23.0 - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.1 - 1.1 - Total Assets $ 76.5 $ - $ 76.5 $ - Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.3 $ - $ 0.3 $ - Cross-currency interest rate swaps 3.4 - 3.4 - Interest rate swaps 10.5 - 10.5 - Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.5 - 1.5 - Contingent payments related to acquisitions 45.8 - - 45.8 Total Liabilities $ 61.5 $ - $ 15.7 $ 45.8 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 estimates 8.5 Settlements (10.2 ) Foreign currency impact (0.7 ) Ending balance December 31, 2021 $ 45.8 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
2020 Acquisitions [Member] | |
Summary of Aggregate Final Estimates of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate final estimates of fair value of the assets acquired and liabilities assumed related to the 2020 acquisitions (in millions): Current assets $ 31.7 Intangible assets subject to amortization: Technology 147.9 Trademarks and trade names 1.5 Customer relationships 92.7 Other 4.9 Goodwill 185.5 Other assets 5.4 Total assets acquired 469.6 Current liabilities 4.8 Deferred income taxes 43.5 Other long-term liabilities 0.1 Total liabilities assumed 48.4 Net assets acquired $ 421.2 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 (in millions): Americas Orthopedics EMEA Asia Pacific Americas Spine and Global Dental Immaterial Product Category Operating Segments Total Balance at January 1, 2020 Goodwill $ 7,699.8 $ 1,316.8 $ 507.4 $ - $ 1,729.3 $ 11,253.3 Accumulated impairment losses - (567.0 ) - - (1,086.6 ) (1,653.6 ) 7,699.8 749.8 507.4 - 642.7 9,599.7 Goodwill reportable segment change 1,661.3 17.0 51.0 - (1,729.3 ) - Accumulated impairment losses reportable segment change (1,086.6 ) - - - 1,086.6 - Other acquisitions 142.4 10.9 8.9 - - 162.2 Currency translation 80.2 18.2 13.5 - - 111.9 Impairment (142.0 ) (470.0 ) - - - (612.0 ) 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 15.4 5.2 2.3 - - 22.9 Other acquisitions 2.4 - - - - 2.4 Currency translation (64.4 ) (13.8 ) (14.1 ) (2.6 ) - (94.9 ) Balance at December 31, 2021 Goodwill 8,045.8 1,354.3 569.0 1,488.7 - 11,457.8 Accumulated impairment losses (7.7 ) (1,037.0 ) - (1,220.9 ) - (2,265.6 ) $ 8,038.1 $ 317.3 $ 569.0 $ 267.8 $ - $ 9,192.2 |
Components of Identifiable Intangible Assets | The components of identifiable intangible assets were as follows (in millions): Technology Intellectual Property Rights Trademarks and Trade Names Customer Relationships IPR&D Other Total As of December 31, 2021: Intangible assets subject to amortization: Gross carrying amount $ 3,804.6 $ 383.3 $ 665.3 $ 5,489.1 $ - $ 192.0 $ 10,534.3 Accumulated amortization (1,946.9 ) (231.6 ) (286.9 ) (2,111.1 ) - (128.0 ) (4,704.5 ) Intangible assets not subject to amortization: Gross carrying amount - - 457.0 - 13.0 - 470.0 Total identifiable intangible assets $ 1,857.7 $ 151.7 $ 835.4 $ 3,378.0 $ 13.0 $ 64.0 $ 6,299.8 As of December 31, 2020: Intangible assets subject to amortization: Gross carrying amount $ 3,902.0 $ 383.3 $ 677.0 $ 5,589.7 $ - $ 152.4 $ 10,704.4 Accumulated amortization (1,746.2 ) (211.6 ) (251.5 ) (1,820.9 ) - (110.9 ) (4,141.1 ) Intangible assets not subject to amortization: Gross carrying amount - - 462.7 - 29.5 - 492.2 Total identifiable intangible assets $ 2,155.8 $ 171.7 $ 888.2 $ 3,768.8 $ 29.5 $ 41.5 $ 7,055.5 |
Estimated Annual Amortization Expense Based on Intangible Assets Recognized | Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2021 for the years ending December 31, 2022 through 2026 is (in millions): For the Years Ending December 31, 2022 $ 602.6 2023 595.6 2024 584.4 2025 535.1 2026 480.9 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables And Accruals [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consisted of the following (in millions): As of December 31, 2021 2020 Other current liabilities: License and service agreements $ 145.1 $ 172.7 Salaries, wages and benefits 357.0 319.5 Litigation and product liability 209.1 157.1 Deferred business combination payments - 145.0 Accrued liabilities 735.3 873.1 Total other current liabilities $ 1,446.5 $ 1,667.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Our debt consisted of the following (in millions): As of December 31, 2021 2020 Current portion of long-term debt Floating Rate Notes due 2021 - 200.0 3.375% Senior Notes due 2021 - 300.0 3.150% Senior Notes due 2022 750.0 - 1.414% Euro Notes due 2022 568.6 - Japan Term Loan A 101.6 - Japan Term Loan B 184.9 - Total short-term debt $ 1,605.1 $ 500.0 Long-term debt 3.150% Senior Notes due 2022 - 750.0 3.700% Senior Notes due 2023 86.3 300.0 1.450% Senior Notes due 2024 850.0 - 3.550% Senior Notes due 2025 863.0 2,000.0 3.050% Senior Notes due 2026 600.0 600.0 3.550% Senior Notes due 2030 257.5 900.0 2.600% Senior Notes due 2031 750.0 - 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 - 611.8 2.425% Euro Notes due 2026 568.6 611.8 1.164% Euro Notes due 2027 568.6 611.8 Japan Term Loan A - 113.3 Japan Term Loan B - 206.3 Debt discount and issuance costs (36.4 ) (48.2 ) Adjustment related to interest rate swaps (10.5 ) 3.1 Total long-term debt $ 5,463.7 $ 7,626.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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, net of tax (in millions): Foreign Cash Defined Currency Flow Benefit Total Translation Hedges Plan Items AOCI Balance December 31, 2020 $ (7.2 ) $ (55.6 ) $ (235.0 ) $ (297.8 ) AOCI before reclassifications (99.9 ) 86.4 73.5 60.0 Reclassifications to statements of earnings - 1.3 4.9 6.2 Balance December 31, 2021 $ (107.1 ) $ 32.1 $ (156.6 ) $ (231.6 ) |
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 For the Years Ended December 31, Location on Component of AOCI 2021 2020 2019 Statements of Earnings Cash flow hedges Foreign exchange forward contracts $ (0.8 ) $ 45.4 $ 38.4 Cost of products sold Interest rate swaps - - 2.8 Interest expense, net Forward starting interest rate swaps (0.6 ) (0.6 ) (0.6 ) Interest expense, net (1.4 ) 44.8 40.6 Total before tax (0.1 ) 6.3 5.5 Provision (benefit) for income taxes $ (1.3 ) $ 38.5 $ 35.1 Net of tax Defined benefit plans Prior service cost $ 4.0 $ 3.9 $ 7.3 Other income (expense), net Curtailment gain - - 7.2 Other income (expense), net Unrecognized actuarial loss (11.1 ) (8.5 ) (21.8 ) Other income (expense), net (7.1 ) (4.6 ) (7.3 ) Total before tax (2.2 ) (1.7 ) (2.3 ) Provision (benefit) for income taxes $ (4.9 ) $ (2.9 ) $ (5.0 ) Net of tax Total reclassifications $ (6.2 ) $ 35.6 $ 30.1 Net of tax |
Tax Effects on Each Component of Accumulated Other Comprehensive Income Recognized in Statements of Comprehensive Income (Loss) | The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions): For the Years Ended December 31, Before Tax Tax Net of Tax 2021 2020 2019 2021 2020 2019 2021 2020 2019 Foreign currency cumulative translation adjustments $ (54.8 ) $ (43.4 ) $ 12.1 $ 45.1 $ (69.0 ) $ 13.6 $ (99.9 ) $ 25.6 $ (1.5 ) Unrealized cash flow hedge gains (losses) 102.5 (42.7 ) 34.6 16.1 (9.2 ) 4.0 86.4 (33.5 ) 30.6 Reclassification adjustments on cash flow hedges 1.4 (44.8 ) (40.6 ) 0.1 (6.3 ) (5.5 ) 1.3 (38.5 ) (35.1 ) Adjustments to prior service cost and unrecognized actuarial assumptions 96.9 (20.9 ) (56.4 ) 18.5 (11.4 ) (7.9 ) 78.4 (9.5 ) (48.5 ) Total Other Comprehensive Income (Loss) $ 146.0 $ (151.8 ) $ (50.3 ) $ 79.8 $ (95.9 ) $ 4.2 $ 66.2 $ (55.9 ) $ (54.5 ) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Amounts Recorded On Balance Sheet Related To Cumulative Basis Adjustments For Fair Value Hedges | 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 December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Current portion of long-term debt $ - $ 303.0 $ - $ 3.1 Long-term debt 985.2 - (10.5 ) - |
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 consolidated statements of earnings, consolidated statements of comprehensive income (loss) and consolidated balance sheets (in millions): Amount of Gain / (Loss) Amount of Gain / (Loss) Recognized in AOCI Location on Reclassified from AOCI Years Ended December 31, Statement of Years Ended December 31, Derivative Instrument 2021 2020 2019 Earnings 2021 2020 2019 Foreign exchange forward contracts $ 102.5 $ (42.7 ) $ 34.6 Cost of products sold $ (0.8 ) $ 45.4 $ 38.4 Interest rate swaps - - - Interest expense, net - - 2.8 Forward starting interest rate swaps - - - Interest expense, net (0.6 ) (0.6 ) (0.6 ) $ 102.5 $ (42.7 ) $ 34.6 $ (1.4 ) $ 44.8 $ 40.6 |
Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Consolidated Statements of Earnings | The following table presents the effects of fair value, cash flow and net investment hedge accounting on our 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 Years Ended December 31, 2021 2020 2019 Cost of Interest Cost of Interest Cost of Interest Products Expense, Products Expense, Products Expense, 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 $ 2,341.0 $ (208.4 ) $ 2,128.3 $ (212.0 ) $ 2,252.6 $ (226.9 ) The effects of fair value, cash flow and net investment hedging: Gain on fair value hedging relationships Discontinued interest rate swaps - 3.1 - 3.3 - 8.2 Interest rate swaps - 6.4 - - - - Gain (loss) on cash flow hedging relationships Foreign exchange forward contracts (0.8 ) - 45.4 - 38.4 - Interest rate swaps - - - - - 2.8 Forward starting interest rate swaps - (0.6 ) - (0.6 ) - (0.6 ) Gain on net investment hedging relationships Cross-currency interest rate swaps - 37.5 - 53.5 - 52.2 |
Derivative Instruments Not Designated as Hedging Instruments | The following gains/(losses) from these derivative instruments were recognized on our consolidated statements of earnings (in millions): Location on Years Ended December 31, Derivative Instrument Statements of Earnings 2021 2020 2019 Foreign exchange forward contracts Other income (expense), net $ (1.8 ) $ 10.6 $ (11.0 ) Reverse treasury lock Other income (expense), net 12.0 - - |
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 December 31, 2021 As of December 31, 2020 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Asset Derivatives Designated as Hedges Foreign exchange forward contracts Other current assets $ 42.3 Other current assets $ 12.2 Cross-currency interest rate swaps Other current assets $ 16.3 Other current assets $ - Foreign exchange forward contracts Other assets 20.9 Other assets 3.7 Cross-currency interest rate swaps Other assets 6.7 Other assets - Total asset derivatives $ 86.2 $ 15.9 Asset Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current assets $ 1.4 Other current assets $ 1.5 Liability Derivatives Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 9.6 Other current liabilities $ 37.4 Cross-currency interest rate swaps Other current liabilities 0.1 Other current liabilities 55.0 Foreign exchange forward contracts Other long-term liabilities 1.5 Other long-term liabilities 26.5 Cross-currency interest rate swaps Other long-term liabilities 3.3 Other long-term liabilities 28.3 Interest rate swaps Other long-term liabilities 10.5 Other long-term liabilities - Total liability derivatives $ 25.0 $ 147.2 Liability Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 1.8 Other current liabilities $ 3.8 |
Schedule of Effects of Master Netting Agreements on Consolidated Balance Sheets | The table below presents the effects of our master netting agreements on our consolidated balance sheets (in millions): As of December 31, 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 $ 42.3 $ 9.5 $ 32.8 $ 12.2 $ 11.7 $ 0.5 Cash flow hedges Other assets 20.9 1.3 19.6 3.7 3.7 - Derivatives not designated as hedges Other current assets 1.4 0.3 1.1 1.5 0.6 0.9 Liability Derivatives Cash flow hedges Other current liabilities 9.6 9.5 0.1 37.4 11.7 25.7 Cash flow hedges Other long-term liabilities 1.5 1.3 0.2 26.5 3.7 22.8 Derivatives not designated as hedges Other current liabilities 1.8 0.3 1.5 3.8 0.6 3.2 |
Net Investment Hedge Gains Recognized on Consolidated Statements of Comprehensive Income | The following net investment hedge gains (losses) were recognized on our consolidated statements of comprehensive income (loss) (in millions): Amount of Gain / (Loss) Recognized in AOCI Years Ended December 31, Derivative Instrument 2021 2020 2019 Euro Notes $ 129.6 $ (151.5 ) $ 10.7 Cross-currency interest rate swaps 103.0 (143.8 ) 47.9 $ 232.6 $ (295.3 ) $ 58.6 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Components of Net Pension Expense | The components of net pension expense for our defined benefit retirement plans were as follows (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Service cost $ 0.9 $ 0.7 $ 7.1 $ 24.7 $ 24.7 $ 19.0 Interest cost 10.5 13.9 16.2 4.9 5.4 9.0 Expected return on plan assets (29.8 ) (32.9 ) (32.4 ) (15.6 ) (13.3 ) (13.4 ) Curtailment gain - - (7.2 ) - - - Settlements 6.4 0.5 0.8 0.5 (0.5 ) - Amortization of prior service cost 0.3 0.3 (3.4 ) (4.3 ) (4.2 ) (3.9 ) Amortization of unrecognized actuarial loss 8.6 7.2 19.3 2.5 1.3 2.5 Net periodic benefit (income) expense $ (3.1 ) $ (10.3 ) $ 0.4 $ 12.7 $ 13.4 $ 13.2 |
Weighted Average Actuarial Assumptions Used to Determine Net Pension Expense for Our Defined Benefit Retirement Plans | The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.04 % 3.40 % 4.38 % 0.63 % 0.73 % 1.44 % Rate of compensation increase - - 3.29 % 2.39 % 2.28 % 2.50 % Expected long-term rate of return on plan assets 6.75 % 7.75 % 7.75 % 2.09 % 2.17 % 2.14 % |
Changes in Projected Benefit Obligations | Changes in projected benefit obligations and plan assets were (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation - beginning of year $ 516.9 $ 472.0 $ 819.3 $ 740.4 Service cost 0.9 0.7 24.7 24.7 Interest cost 10.5 13.9 4.9 5.4 Plan amendments - - - 0.2 Employee contributions - - 23.4 22.1 Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Actuarial loss 3.0 55.6 6.1 12.5 Expenses paid - - (0.2 ) (0.3 ) Settlement (14.9 ) (1.3 ) (3.0 ) (4.5 ) Translation (gain) loss - - (25.6 ) 58.6 Projected benefit obligation - end of year $ 503.1 $ 516.9 $ 807.9 $ 819.3 |
Changes in Fair Value of Plan Assets | For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Plan assets at fair market value - beginning of year $ 474.1 $ 444.9 $ 756.7 $ 665.2 Actual return on plan assets 50.5 51.4 86.6 40.0 Employer contributions 3.1 3.1 22.4 21.2 Employee contributions - - 23.4 22.1 Settlements (14.9 ) (1.3 ) (3.0 ) (4.5 ) Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Expenses paid - - (0.2 ) (0.3 ) Translation (loss) gain - - (23.0 ) 52.8 Plan assets at fair market value - end of year $ 499.5 $ 474.1 $ 821.2 $ 756.7 Funded status $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) |
Summary of Amounts Recognized in Balance Sheet | For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Amounts recognized in consolidated balance sheet: Prepaid pension $ 2.7 $ - $ 54.9 $ 20.4 Short-term accrued benefit liability (0.1 ) (0.1 ) (1.3 ) (1.3 ) Long-term accrued benefit liability (6.2 ) (42.7 ) (40.3 ) (81.7 ) Net amount recognized $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) |
Weighted Average Actuarial Assumptions Used to Determine Projected Benefit Obligation for Defined Benefit Retirement Plans | The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.70 % 2.70 % 3.40 % 0.73 % 0.61 % 0.74 % Rate of compensation increase - - 3.29 % 2.48 % 2.36 % 2.45 % |
Plans with Benefit Obligations in Excess of Plan Assets | Plans with projected benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation $ 468.5 $ 516.9 $ 38.8 $ 778.4 Plan assets at fair market value 462.2 474.1 8.1 709.5 |
Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Total accumulated benefit obligations and plans with accumulated benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Total accumulated benefit obligations $ 503.1 $ 516.9 $ 783.0 $ 801.3 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 468.5 516.9 36.4 560.9 Plan assets at fair market value 462.2 474.1 8.1 508.6 |
Summary of Benefits Expected to be Paid Out | The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions): For the Years Ending December 31, U.S. and Puerto Rico Foreign 2022 $ 24.6 $ 32.8 2023 25.4 34.8 2024 25.7 33.6 2025 26.3 35.0 2026 27.0 34.7 2027-2031 133.1 175.7 |
Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value | The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions): December 31, 2021 Beginning Balance $ 145.3 Gain on assets sold 0.7 Change in fair value of assets 7.0 Net purchases and sales 11.9 Translation gain (4.3 ) Ending Balance $ 160.6 |
U.S. and Puerto Rico [Member] | |
Fair Value of Pension Plan Assets | The fair value of our U.S. and Puerto Rico pension plan assets by asset category was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3.8 $ 3.8 $ - $ - Equity securities 342.1 - 342.1 - Intermediate fixed income securities 153.6 - 153.6 - Total $ 499.5 $ 3.8 $ 495.7 $ - As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 7.3 $ 7.3 $ - $ - Equity securities 304.1 - 304.1 - Intermediate fixed income securities 162.7 - 162.7 - Total $ 474.1 $ 7.3 $ 466.8 $ - |
Foreign [Member] | |
Fair Value of Pension Plan Assets | The fair value of our foreign pension plan assets was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 56.6 $ 56.6 $ - $ - Equity securities 185.5 149.6 35.9 - Fixed income securities 195.5 - 195.5 - Other types of investments 223.0 - 223.0 - Real estate 160.6 - - 160.6 Total $ 821.2 $ 206.2 $ 454.4 $ 160.6 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 42.7 $ 42.7 $ - $ - Equity securities 163.9 126.8 37.1 - Fixed income securities 262.5 - 262.5 - Other types of investments 142.3 - 142.3 - Real estate 145.3 - - 145.3 Total $ 756.7 $ 169.5 $ 441.9 $ 145.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings (Loss) Before Income Taxes | The components of earnings (loss) before income taxes consisted of the following (in millions): For the Years Ended December 31, 2021 2020 2019 United States operations $ (275.7 ) $ (592.9 ) $ (125.9 ) Foreign operations 694.1 318.5 1,031.7 Total $ 418.4 $ (274.4 ) $ 905.8 |
Provision/(Benefit) for Income Taxes and Income Taxes Paid | The provision/(benefit) for income taxes and the income taxes paid consisted of the following (in millions): Current: Federal $ 32.2 $ (96.1 ) $ 65.5 State 10.4 4.6 9.8 Foreign 123.4 (57.5 ) 237.7 166.0 (149.0 ) 313.0 Deferred: Federal (115.8 ) (24.2 ) (90.2 ) State (21.6 ) (11.5 ) (4.2 ) Foreign (12.3 ) 47.7 (444.3 ) (149.7 ) 12.0 (538.7 ) Provision (benefit) for income taxes $ 16.3 $ (137.0 ) $ (225.7 ) Net income taxes paid $ 272.8 $ 147.4 $ 192.5 |
Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate | A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows: For the Years Ended December 31, 2021 2020 2019 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal deduction (3.0 ) 2.4 0.8 Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits (17.4 ) 14.9 (10.2 ) Change in valuation allowance (1.0 ) 1.5 1.5 Non-deductible expenses 2.0 (2.0 ) 0.4 Goodwill impairment - (46.1 ) - Tax rate change (0.4 ) 3.8 0.6 Tax impact of certain significant transactions 1.3 - - Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction 0.5 5.8 (4.5 ) R&D tax credit (2.8 ) 2.1 (1.2 ) Share-based compensation (0.6 ) 0.1 (0.4 ) Net uncertain tax positions, including interest and penalties 3.8 31.4 1.9 U.S. tax reform - - 0.1 Switzerland tax reform and certain restructuring transactions - 15.7 (34.8 ) Other 0.5 (0.7 ) (0.1 ) Effective income tax rate 3.9 % 49.9 % (24.9 ) % |
Components of Deferred Taxes | The components of deferred taxes consisted of the following (in millions): As of December 31, 2021 2020 Deferred tax assets: Inventory $ 273.6 $ 297.2 Net operating loss carryover 463.8 511.2 Tax credit carryover 86.6 55.1 Capital loss carryover 8.6 9.0 Product liability and litigation 45.8 53.9 Accrued liabilities 103.9 86.1 Share-based compensation 32.6 30.4 Accounts receivable 19.8 19.0 Foreign currency items - 57.4 Other 55.4 19.2 Total deferred tax assets 1,090.1 1,138.5 Less: Valuation allowances (470.1 ) (542.1 ) Total deferred tax assets after valuation allowances 620.0 596.4 Deferred tax liabilities: Fixed assets $ 132.7 $ 119.2 Intangible assets 687.5 787.6 Foreign currency items 3.8 - Other 32.2 28.2 Total deferred tax liabilities 856.2 935.0 Total net deferred income taxes $ (236.2 ) $ (338.6 ) |
Summary of Tax Credit Carryforwards | At December 31, 2021, the following net operating loss, tax credit carryovers, and capital loss carryovers are available to reduce future federal, state and foreign taxable earnings (in millions): Expiration Period: Net operating loss carryover Tax credit carryover Capital loss carryover 1-5 years $ 3.3 $ 15.1 $ 1.7 6-10 years 52.7 62.4 - 11+ years 279.5 1.6 - Indefinite 128.3 7.5 6.9 463.8 86.6 8.6 Valuation allowances $ 401.6 $ 46.7 $ 8.6 |
Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions): For the Years Ended December 31, 2021 2020 2019 Balance at January 1 $ 619.4 $ 741.8 $ 685.5 Increases related to prior periods 11.5 75.3 24.7 Decreases related to prior periods (12.7 ) (158.3 ) (35.6 ) Increases related to current period 7.3 3.4 133.2 Decreases related to settlements with taxing authorities (65.1 ) (14.6 ) (60.2 ) Decreases related to lapse of statute of limitations (1.8 ) (28.2 ) (5.8 ) Balance at December 31 $ 558.6 $ 619.4 $ 741.8 Amounts impacting effective tax rate, if recognized balance at December 31 $ 426.4 $ 473.9 $ 599.2 |
Capital Stock and Earnings pe_2
Capital Stock and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 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 share computations (in millions): For the Years Ended December 31, 2021 2020 2019 Weighted average shares outstanding for basic net earnings per share 208.6 207.0 205.1 Effect of dilutive stock options and other equity awards 1.8 - 1.6 Weighted average shares outstanding for diluted net earnings per share 210.4 207.0 206.7 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Net Sales and Other Information by Segment | Net sales and other information by segment is as follows (in millions): Net Sales Operating Profit (Loss) Depreciation and Amortization Year Ended December 31, Year Ended December 31, Year Ended December 31, 2021 2020 2019 2021 2020 2019 2021 2020 2019 Americas Orthopedics $ 4,102.1 $ 3,699.5 $ 4,148.8 $ 1,709.3 $ 1,528.2 $ 1,831.8 $ 143.1 $ 135.6 $ 126.6 EMEA 1,533.8 1,288.6 1,623.1 392.7 308.9 484.0 74.4 77.5 77.0 Asia Pacific 1,318.3 1,256.9 1,323.8 429.4 420.5 472.7 74.6 71.3 65.3 Americas Spine and Global Dental 882.0 779.5 886.5 136.0 105.6 150.9 26.0 32.7 35.6 Total $ 7,836.2 $ 7,024.5 $ 7,982.2 Corporate Functions (632.2 ) (754.1 ) (750.9 ) 133.6 118.0 117.3 Inventory and manufacturing-related charges (41.8 ) (54.2 ) (53.9 ) - - - Intangible asset amortization (615.7 ) (597.6 ) (584.3 ) 615.7 597.6 584.3 Goodwill and intangible asset impairment (16.3 ) (645.0 ) (70.1 ) - - - Restructuring and other cost reduction initiatives (130.5 ) (116.9 ) (50.0 ) - - - Quality remediation (53.2 ) (49.8 ) (87.6 ) - - - Acquisition, integration, divestiture and related (81.8 ) (23.8 ) (12.2 ) - - - Litigation (192.9 ) (159.8 ) (65.0 ) - - - Litigation settlement gain - - 23.5 - - - European Union Medical Device Regulation (46.5 ) (25.3 ) (30.9 ) - - - Certain R&D agreements (65.0 ) - - - - - Other charges (11.4 ) (24.5 ) (120.5 ) - - - Total $ 780.1 $ (87.8 ) $ 1,137.5 $ 1,067.4 $ 1,032.7 $ 1,006.1 |
Disclosure on Geographic Areas, Long-Lived Assets | We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions): As of December 31, 2021 2020 United States $ 1,212.6 $ 1,252.6 Other countries 803.9 795.1 Property, plant and equipment, net $ 2,016.5 $ 2,047.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Information on Leases | Information on our leases is as follows ($ in millions): For the Years Ended December 31, 2021 2020 2019 Lease cost $ 85.8 $ 83.7 $ 76.0 Cash paid for leases recognized in operating cash flows $ 86.3 $ 81.4 $ 73.6 Right-of-use assets obtained in exchange for new lease liabilities $ 96.4 $ 83.5 $ 55.0 As of December 31, 2021 2020 Right-of-use assets recognized in Other assets $ 271.2 $ 274.5 Lease liabilities recognized in Other current liabilities $ 69.3 $ 75.0 Lease liabilities recognized in Other long-term liabilities $ 220.2 $ 217.8 Weighted-average remaining lease term 5.9 years 5.8 years Weighted-average discount rate 2.0 % 2.3 % |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of December 31, 2021 were (in millions): For the Years Ending December 31, 2022 $ 73.8 2023 59.5 2024 47.7 2025 35.4 2026 28.7 Thereafter 62.4 Total 307.5 Less imputed interest 18.0 Total $ 289.5 |
Business - Additional Informati
Business - Additional Information (Details) - Planned Spinoff [Member] shares in Millions | 1 Months Ended |
Feb. 05, 2021shares | |
Spinoff transaction ratio- Zimmer Biomet shares owned | 10 |
Common Stock [Member] | |
Spin-off percentage retained | 19.70% |
Board of Directors [Member] | Common Stock [Member] | |
Spin-off percentage | 80.30% |
Zim Vie | |
Spinoff transaction ratio- ZimVie shares received | 1 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Business And Significant Accounting Policies [Line Items] | |||||
Expenses incurred related to shipping and handling of products | $ 3,323.9 | $ 3,177.8 | $ 3,343.8 | ||
Restructuring and other cost reduction initiatives | $ 129.1 | 116.9 | 50 | ||
Employees dedication percentage for dedicated project personnel expenses | 100.00% | ||||
Allowance for doubtful accounts | $ 74.6 | 75.8 | |||
Cumulative adjustment to retained earnings | $ 12,666.4 | 12,199.4 | 12,392.8 | $ 11,276.1 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Cumulative adjustment to retained earnings | $ 3.1 | ||||
Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Useful life of finite lived intangibles | 1 year | ||||
Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Useful life of finite lived intangibles | 20 years | ||||
Building and Building Improvements [Member] | Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 10 years | ||||
Building and Building Improvements [Member] | Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 40 years | ||||
Machinery and Equipment [Member] | Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 3 years | ||||
Machinery and Equipment [Member] | Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 8 years | ||||
Capitalized Software Costs [Member] | Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 3 years | ||||
Capitalized Software Costs [Member] | Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 15 years | ||||
Instruments [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 5 years | ||||
Shipping and Handling [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Expenses incurred related to shipping and handling of products | $ 295.8 | $ 269.9 | $ 292.7 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021USD ($)Segment | |
Revenue Recognition [Abstract] | |
Percentage of sales through direct channel | 80.00% |
Period terms for payment | 90 days |
Percentage of sales through indirect channel | 20.00% |
Contract assets | $ 0 |
Contract liabilities | 0 |
Future performance obligations | $ 0 |
Number of geographic segments | Segment | 3 |
Number of operating segments | Segment | 4 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Net Sales by Geography (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales Information [Line Items] | |||
Net Sales | $ 7,836.2 | $ 7,024.5 | $ 7,982.2 |
Americas [Member] | |||
Sales Information [Line Items] | |||
Net Sales | 4,800.2 | 4,335.4 | 4,875.8 |
EMEA [Member] | |||
Sales Information [Line Items] | |||
Net Sales | 1,671.1 | 1,391.3 | 1,746.9 |
Asia Pacific [Member] | |||
Sales Information [Line Items] | |||
Net Sales | $ 1,364.9 | $ 1,297.8 | $ 1,359.5 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Net Sales by Product Category (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | $ 7,836.2 | $ 7,024.5 | $ 7,982.2 |
Knees [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 2,647.9 | 2,378.3 | 2,780.6 |
Hips [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 1,856.1 | 1,750.5 | 1,931.5 |
S.E.T [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 1,727.8 | 1,525.6 | 1,652.5 |
Spine & Dental [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 1,008.8 | 897 | 1,021.8 |
Other [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | $ 595.6 | $ 473.1 | $ 595.8 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 240 | |
2021 Restructuring Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | 240 | |
Reduction in annual pre-tax operating expenses | $ 210 | |
Restructuring program benefits realized period | 2024 | |
2019 Restructuring Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 375 | |
Restructuring program benefits realized period | 2023 | |
2019 Restructuring Plan [Member] | Minimum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 350 | |
Reduction in annual pre-tax operating expenses | 200 | |
2019 Restructuring Plan [Member] | 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) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost And Reserve [Line Items] | |||
Additions | $ 32.1 | ||
Ending Balance | 32.1 | ||
Expense estimated to be recognized for the Restructuring Plan | 240 | ||
2021 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Expense estimated to be recognized for the Restructuring Plan | 240 | ||
2021 Restructuring Plan [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 19.5 | ||
Ending Balance | 19.5 | ||
Expense estimated to be recognized for the Restructuring Plan | 62 | ||
2021 Restructuring Plan [Member] | Contract Termination [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 2.3 | ||
Ending Balance | 2.3 | ||
Expense estimated to be recognized for the Restructuring Plan | 167 | ||
2021 Restructuring Plan [Member] | Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 10.3 | ||
Ending Balance | 10.3 | ||
Expense estimated to be recognized for the Restructuring Plan | 11 | ||
2019 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning Balance | 64.7 | $ 27.3 | |
Additions | 78.4 | 108.2 | $ 36.3 |
Cash payments | (107.2) | (72.2) | (9) |
Foreign currency exchange rate changes | (1.7) | 1.4 | |
Ending Balance | 34.2 | 64.7 | 27.3 |
Expense estimated to be recognized for the Restructuring Plan | 375 | ||
Expense incurred since the start of the 2019 Restructuring Plan | 222.9 | ||
2019 Restructuring Plan [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning Balance | 38.7 | 23.2 | |
Additions | 7.4 | 55.3 | 23.2 |
Cash payments | (29.7) | (41.2) | |
Foreign currency exchange rate changes | (1.6) | 1.4 | |
Ending Balance | 14.8 | 38.7 | 23.2 |
Expense estimated to be recognized for the Restructuring Plan | 180 | ||
Expense incurred since the start of the 2019 Restructuring Plan | 85.9 | ||
2019 Restructuring Plan [Member] | Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning Balance | 15.1 | 4.1 | |
Additions | 52.5 | 37.1 | 13.1 |
Cash payments | (64.6) | (26.1) | (9) |
Foreign currency exchange rate changes | (0.1) | ||
Ending Balance | 2.9 | 15.1 | $ 4.1 |
Expense estimated to be recognized for the Restructuring Plan | 155 | ||
Expense incurred since the start of the 2019 Restructuring Plan | 102.7 | ||
2019 Restructuring Plan [Member] | Contract Termination [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Beginning Balance | 10.9 | ||
Additions | 18.5 | 15.8 | |
Cash payments | (12.9) | (4.9) | |
Ending Balance | 16.5 | $ 10.9 | |
Expense estimated to be recognized for the Restructuring Plan | 40 | ||
Expense incurred since the start of the 2019 Restructuring Plan | $ 34.3 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |||
Total expense, pre-tax | $ 85.3 | $ 79.7 | $ 84.3 |
Tax benefit related to awards | 18.7 | 16.9 | 21.8 |
Total expense, net of tax | $ 66.6 | $ 62.8 | $ 62.5 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Planshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum contractual life | 10 years | ||
Unrecognized share-based payment expense | $ | $ 55.2 | ||
Weighted average period expected to be recognized | 2 years 6 months | ||
Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Requisite service period for stock award | 1 year | ||
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period for stock award | 4 years | ||
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period expected to be recognized | 2 years 2 months 12 days | ||
Estimated outstanding RSU | shares | 682,437 | ||
Unrecognized share-based payment expense related to nonvested stock options | $ | $ 57.9 | ||
Fair value of RSUs vesting during the year | $ | $ 40 | $ 33.2 | $ 26.3 |
RSUs [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Requisite service period for stock award | 1 year | ||
RSUs [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Requisite service period for stock award | 4 years | ||
2009 Plan and the Stock Plan for Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity compensation plans | Plan | 2 | ||
Number of common stock registered for award | shares | 49,900,000 | ||
Shares available for future grants | shares | 10,400,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Outstanding stock options, Beginning balance | shares | 7,423 |
Options granted | shares | 1,278 |
Options exercised | shares | (871) |
Options forfeited | shares | (219) |
Options expired | shares | (64) |
Outstanding stock options, Ending Balance | shares | 7,547 |
Number of outstanding options, Vested or expected to vest | shares | 7,291 |
Exercisable, Stock options | shares | 4,805 |
Outstanding Weighted average exercise price, Beginning Balance | $ / shares | $ 116.67 |
Options granted, Weighted average exercise price | $ / shares | 163.47 |
Options exercised, Weighted average exercise price | $ / shares | 99.92 |
Options forfeited, Weighted average exercise price | $ / shares | 150.10 |
Options expired, Weighted average exercise price | $ / shares | 149.02 |
Outstanding Weighted average exercise price, ending Balance | $ / shares | 125.32 |
Outstanding Weighted average exercise price, Vested or expected to vest | $ / shares | 124.52 |
Exercisable, Weighted average exercise price | $ / shares | $ 111.42 |
Weighted Average Remaining Contractual Life, Outstanding at December 31, 2021 | 6 years |
Weighted Average Remaining Contractual Life, Vested or expected to vest as of December 31, 2021 | 6 years |
Weighted Average Remaining Contractual Life, Exercisable at December 31, 2021 | 4 years 9 months 18 days |
Intrinsic Value, Outstanding at December 31, 2021 | $ | $ 90.5 |
Intrinsic Value, Vested or expected to vest as of December 31, 2021 | $ | 90 |
Intrinsic Value, Exercisable at December 31, 2021 | $ | $ 85.6 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Fair Value for Stock Options Granted (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Dividend yield | 0.60% | 0.60% | 0.80% |
Volatility | 30.30% | 22.30% | 22.10% |
Risk-free interest rate | 0.70% | 1.30% | 2.40% |
Expected life (years) | 5 years 4 months 24 days | 5 years | 5 years 6 months |
Weighted average fair value of options granted | $ 43.91 | $ 31.65 | $ 28.68 |
Intrinsic value of options exercised (in millions) | $ 54.6 | $ 50.1 | $ 76.8 |
Tax benefit of options exercised (in millions) | $ 10.8 | $ 9.6 | $ 15.8 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Nonvested RSU Activity (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
RSUs, Outstanding Beginning Balance | shares | 1,070 |
RSUs, Granted | shares | 556 |
RSUs, Vested | shares | (239) |
RSUs, Forfeited | shares | (348) |
RSUs, Outstanding Ending Balance | shares | 1,039 |
Weighted Average Grant Date Fair Value, Outstanding Beginning Balance | $ / shares | $ 129.65 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 171.37 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 119.32 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 122.90 |
Weighted Average Grant Date Fair Value, Outstanding Ending Balance | $ / shares | $ 146.58 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,928.5 | $ 1,954.6 |
Work in progress | 202.1 | 223.7 |
Raw materials | 263.9 | 272.4 |
Inventories | $ 2,394.5 | $ 2,450.7 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Amounts charged for excess obsolete inventory, including certain product lines intend to discontinue | $ 181.7 | $ 250 | $ 221.4 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 6,735.6 | $ 6,324.9 |
Accumulated depreciation | (4,719.1) | (4,277.2) |
Property, plant and equipment, net | 2,016.5 | 2,047.7 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 27.3 | 27.7 |
Building And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,311.4 | 2,197.8 |
Capitalized Software Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 496.7 | 455.8 |
Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 3,776.2 | 3,518.3 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 124 | $ 125.3 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 451.7 | $ 435.1 | $ 421.8 |
Property plant and equipment included in accounts payable | $ 11.6 | $ 24.4 |
Transfers of Financial Assets -
Transfers of Financial Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Transfers And Servicing [Abstract] | |||
Aggregate face value of receivables sold | $ 1,323 | $ 3,116.2 | $ 160.9 |
Cash proceeds from receivables | 1,321.3 | 3,113.9 | 159.7 |
Proceeds from customers | 1,308.3 | 2,857.4 | |
Repurchase of accounts receivables sold | 146.5 | $ 184.6 | |
Proceeds from other current liabilities | $ 0 | $ 0 |
Fair Value Measurements of As_3
Fair Value Measurements of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 76.5 | $ 1.4 |
Contingent payments related to acquisitions | 45.8 | 48.2 |
Total Liabilities | 61.5 | 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 | 76.5 | 1.4 |
Total Liabilities | 15.7 | 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 | 45.8 | 48.2 |
Total Liabilities | 45.8 | 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 | 52.4 | 0.5 |
Derivatives, current and long-term | 0.3 | 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 | 1.1 | 0.9 |
Derivatives, current and long-term | 1.5 | 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 | 52.4 | 0.5 |
Derivatives, current and long-term | 0.3 | 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 | 1.1 | 0.9 |
Derivatives, current and long-term | 1.5 | 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 | 23 | |
Derivatives, current and long-term | 3.4 | 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 | 23 | |
Derivatives, current and long-term | 3.4 | $ 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 | 10.5 | |
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 | $ 10.5 |
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 | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Beginning balance December 31, 2020 | $ 48.2 |
Change in estimates | 8.5 |
Settlements | (10.2) |
Foreign currency impact | (0.7) |
Ending balance December 31, 2021 | $ 45.8 |
Acquisitions-Additional Informa
Acquisitions-Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Guaranteed deferred business combination payments | $ 145 |
2020 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Cash payments to acquire businesses | 244.9 |
Guaranteed deferred business combination payments | 145 |
Contingent consideration | 31.3 |
Goodwill amount deductible for tax purpose | $ 0 |
2020 Acquisitions [Member] | Technology [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 13 years |
2020 Acquisitions [Member] | Trademarks and trade names [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 12 years |
2020 Acquisitions [Member] | Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 15 years |
2020 Acquisitions [Member] | 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 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 9,192.2 | $ 9,261.8 | $ 9,599.7 |
2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 31.7 | ||
Goodwill | 185.5 | ||
Other assets | 5.4 | ||
Total assets acquired | 469.6 | ||
Current liabilities | 4.8 | ||
Deferred income taxes | 43.5 | ||
Other long-term liabilities | 0.1 | ||
Total liabilities assumed | 48.4 | ||
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 Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 11,527.4 | $ 11,253.3 |
Accumulated impairment losses, Beginning Balance | (2,265.6) | (1,653.6) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 9,261.8 | 9,599.7 |
Purchase accounting adjustments | 22.9 | |
Other acquisitions | 2.4 | 162.2 |
Currency translation | (94.9) | 111.9 |
Impairment | (612) | |
Goodwill, Ending Balance | 11,457.8 | 11,527.4 |
Accumulated impairment losses, Ending Balance | (2,265.6) | (2,265.6) |
Goodwill, net of accumulated impairment losses, Ending Balance | 9,192.2 | 9,261.8 |
Americas [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 9,583.7 | 7,699.8 |
Accumulated impairment losses, Beginning Balance | (1,228.6) | |
Goodwill, net of accumulated impairment losses, Beginning Balance | 8,355.1 | 7,699.8 |
Goodwill reportable segment change | (1,491.3) | 1,661.3 |
Accumulated impairment losses reportable segment change | 1,220.9 | (1,086.6) |
Purchase accounting adjustments | 15.4 | |
Other acquisitions | 2.4 | 142.4 |
Currency translation | (64.4) | 80.2 |
Impairment | (142) | |
Goodwill, Ending Balance | 8,045.8 | 9,583.7 |
Accumulated impairment losses, Ending Balance | (7.7) | (1,228.6) |
Goodwill, net of accumulated impairment losses, Ending Balance | 8,038.1 | 8,355.1 |
EMEA [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,362.9 | 1,316.8 |
Accumulated impairment losses, Beginning Balance | (1,037) | (567) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 325.9 | 749.8 |
Goodwill reportable segment change | 17 | |
Purchase accounting adjustments | 5.2 | |
Other acquisitions | 10.9 | |
Currency translation | (13.8) | 18.2 |
Impairment | (470) | |
Goodwill, Ending Balance | 1,354.3 | 1,362.9 |
Accumulated impairment losses, Ending Balance | (1,037) | (1,037) |
Goodwill, net of accumulated impairment losses, Ending Balance | 317.3 | 325.9 |
Asia Pacific [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 580.8 | 507.4 |
Goodwill, net of accumulated impairment losses, Beginning Balance | 580.8 | 507.4 |
Goodwill reportable segment change | 51 | |
Purchase accounting adjustments | 2.3 | |
Other acquisitions | 8.9 | |
Currency translation | (14.1) | 13.5 |
Goodwill, Ending Balance | 569 | 580.8 |
Goodwill, net of accumulated impairment losses, Ending Balance | 569 | 580.8 |
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 | (2.6) | |
Goodwill, Ending Balance | 1,488.7 | |
Accumulated impairment losses, Ending Balance | (1,220.9) | |
Goodwill, net of accumulated impairment losses, Ending Balance | $ 267.8 | |
Immaterial Product Category Operating Segments [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,729.3 | |
Accumulated impairment losses, Beginning Balance | (1,086.6) | |
Goodwill, net of accumulated impairment losses, Beginning Balance | 642.7 | |
Goodwill reportable segment change | (1,729.3) | |
Accumulated impairment losses reportable segment change | $ 1,086.6 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Reporting units with goodwill assigned to them | 3 | |||
Impairment | $ 612 | |||
Goodwill | $ 9,192.2 | 9,261.8 | $ 9,599.7 | |
In Process Research and Development (IPR&D) [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible asset impairment | 16.3 | 33 | 70.1 | |
Global Dental [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Impairment | 142 | |||
Goodwill | 267.8 | |||
EMEA [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Impairment | 470 | |||
Goodwill | 317.3 | $ 325.9 | $ 749.8 | |
America CMFT [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Reporting units with goodwill assigned to them | 2 | |||
Goodwill | $ 290.9 | |||
Percentage of fair value in excess of carrying amount | 5.00% |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | $ 10,534.3 | $ 10,704.4 |
Accumulated amortization | (4,704.5) | (4,141.1) |
Gross carrying amount | 470 | 492.2 |
Total identifiable intangible assets | 6,299.8 | 7,055.5 |
Technology [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 3,804.6 | 3,902 |
Accumulated amortization | (1,946.9) | (1,746.2) |
Total identifiable intangible assets | 1,857.7 | 2,155.8 |
Intellectual Property Rights [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 383.3 | 383.3 |
Accumulated amortization | (231.6) | (211.6) |
Total identifiable intangible assets | 151.7 | 171.7 |
Trademarks and trade names [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 665.3 | 677 |
Accumulated amortization | (286.9) | (251.5) |
Gross carrying amount | 457 | 462.7 |
Total identifiable intangible assets | 835.4 | 888.2 |
Customer relationships [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 5,489.1 | 5,589.7 |
Accumulated amortization | (2,111.1) | (1,820.9) |
Total identifiable intangible assets | 3,378 | 3,768.8 |
In Process Research and Development (IPR&D) [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 13 | 29.5 |
Total identifiable intangible assets | 13 | 29.5 |
Other [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 192 | 152.4 |
Accumulated amortization | (128) | (110.9) |
Total identifiable intangible assets | $ 64 | $ 41.5 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Annual Amortization Expense Based on Intangible Assets Recognized (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2022 | $ 602.6 |
2023 | 595.6 |
2024 | 584.4 |
2025 | 535.1 |
2026 | $ 480.9 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other current liabilities: | ||
License and service agreements | $ 145.1 | $ 172.7 |
Salaries, wages and benefits | 357 | 319.5 |
Litigation and product liability | 209.1 | 157.1 |
Deferred business combination payments | 145 | |
Accrued liabilities | 735.3 | 873.1 |
Total other current liabilities | $ 1,446.5 | $ 1,667.4 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Detail) $ in Millions, € in Billions, ¥ in Billions | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021JPY (¥) | Nov. 24, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 20, 2020USD ($) | Mar. 19, 2018USD ($) |
Current portion of long-term debt | |||||||
Current portion of long-term debt | $ 1,605.1 | $ 500 | |||||
Long-term debt | |||||||
Senior Notes due | 6,800 | ||||||
Debt discount and issuance costs | (36.4) | (48.2) | |||||
Adjustment related to interest rate swaps | (10.5) | 3.1 | |||||
Total long-term debt | 5,463.7 | 7,626.5 | |||||
Senior Notes [Member] | Due in 2020 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | $ 450 | ||||||
Senior Notes [Member] | Due in 2026 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | $ 600 | ||||||
Senior Notes [Member] | 3.375% [Member] | Due in 2020 [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 300 | ||||||
Senior Notes [Member] | 3.700% [Member] | Due in 2023 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 86.3 | 300 | |||||
Senior Notes [Member] | 3.150% [Member] | 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] | 1.450% [Member] | Due in 2024 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 850 | $ 850 | |||||
Senior Notes [Member] | 3.550% [Member] | Due in 2025 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 863 | 2,000 | |||||
Senior Notes [Member] | 3.550% [Member] | Due in 2030 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 257.5 | 900 | $ 900 | ||||
Senior Notes [Member] | 3.050% [Member] | Due in 2026 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 600 | 600 | |||||
Senior Notes [Member] | 2.600% [Member] | Due in 2031 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 750 | $ 750 | |||||
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 | |||||
Euro Notes | |||||||
Long-term debt | |||||||
Term loan | € | € 1.5 | ||||||
Euro Notes | 1.414% [Member] | Two Thousand Twenty Two | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 568.6 | ||||||
Long-term debt | |||||||
Term loan | 611.8 | ||||||
Euro Notes | 2.425% [Member] | Due in 2026 [Member] | |||||||
Long-term debt | |||||||
Term loan | 568.6 | 611.8 | |||||
Euro Notes | 1.164% [Member] | Due in 2027 [Member] | |||||||
Long-term debt | |||||||
Term loan | 568.6 | 611.8 | |||||
Japan Term Loan A [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 101.6 | ||||||
Long-term debt | |||||||
Term loan | ¥ 11.7 | 113.3 | |||||
Japan Term Loan B [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | $ 184.9 | ||||||
Long-term debt | |||||||
Term loan | ¥ 21.3 | 206.3 | |||||
Floating Rate Notes [Member] | Due in 2020 [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | $ 200 |
Debt - Summary of Debt Instru_2
Debt - Summary of Debt Instruments (Parenthetical) (Detail) | Dec. 31, 2021 | Nov. 24, 2021 | Dec. 31, 2020 | Mar. 20, 2020 |
Due in 2026 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.05% | 3.05% | 3.05% | |
3.375% [Member] | Due in 2020 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.375% | 3.375% | ||
1.414% [Member] | Two Thousand Twenty Two | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.414% | 1.414% | ||
1.414% [Member] | Two Thousand Twenty Two | Euro Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.414% | 1.414% | ||
3.150% [Member] | Two Thousand Twenty Two | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.15% | 3.15% | ||
1.450% [Member] | Due in 2024 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.45% | 1.45% | 1.45% | |
3.700% [Member] | Due in 2023 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.70% | 3.70% | ||
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% | |
2.600% [Member] | Due in 2031 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.60% | 2.60% | 2.60% | |
4.450% [Member] | Due in 2045 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.45% | 4.45% | ||
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% | ||
2.425% [Member] | Due in 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.425% | 2.425% | ||
1.164% [Member] | Due in 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.164% | 1.164% |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Billions, ¥ in Billions | Aug. 20, 2021USD ($) | Apr. 01, 2020USD ($) | Mar. 20, 2020USD ($) | Nov. 24, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021JPY (¥) | Sep. 18, 2020USD ($) | Mar. 19, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Debt, long-term and short-term, combined amount | $ 7,100,000,000 | |||||||||||
Aggregate principal amount of Senior Notes | 6,800,000,000 | |||||||||||
Other debt and fair value adjustments, total | 10,500,000 | |||||||||||
Debt discount and issuance costs | $ 36,400,000 | $ 48,200,000 | ||||||||||
Redemption price percent | 100.00% | 100.00% | 100.00% | |||||||||
Proceeds from senior notes | $ 1,599,800,000 | $ 1,599,800,000 | $ 1,497,100,000 | $ 549,200,000 | ||||||||
Loss on early extinguishment of debt | 165,100,000 | |||||||||||
Debt re-acquisition price | 2,154,800,000 | |||||||||||
Long-term debt, carrying value | 1,982,700,000 | |||||||||||
Debt tender fees | 5,000,000 | |||||||||||
Gain on reverse treasury lock | 12,000,000 | |||||||||||
Estimated fair value | $ 7,216,400,000 | |||||||||||
Weighted average interest rate for all borrowings, long-term debt | 2.80% | 3.00% | 2.80% | 2.80% | ||||||||
Interest paid on Debt | $ 219,000,000 | $ 193,100,000 | $ 226,900,000 | |||||||||
Two Thousand Twenty One Five Year Credit Agreement | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 4.50% | 4.50% | 4.50% | |||||||||
Consolidated EBITDA ratio thereafter | 5.00% | 5.00% | 5.00% | |||||||||
Two Thousand Twenty One Five Year Credit Agreement | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 1.00% | 1.00% | 1.00% | |||||||||
Consolidated EBITDA ratio thereafter | 1.00% | 1.00% | 1.00% | |||||||||
2021 364-Revolving Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Aug. 19, 2022 | |||||||||||
Principal amount, unsecured credit facility | $ 1,000,000,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
2021 364-Revolving Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 4.50% | 4.50% | 4.50% | |||||||||
Consolidated EBITDA ratio thereafter | 5.00% | 5.00% | 5.00% | |||||||||
2021 364-Revolving Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 1.00% | 1.00% | 1.00% | |||||||||
Consolidated EBITDA ratio thereafter | 1.00% | 1.00% | 1.00% | |||||||||
September 2020 Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount, unsecured credit facility | $ 1,000,000,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Euro Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | € | € 1.5 | |||||||||||
Japan Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | 113,300,000 | ¥ 11.7 | ||||||||||
Maturity date of debt instrument | Sep. 27, 2022 | |||||||||||
Japan Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | 206,300,000 | ¥ 21.3 | ||||||||||
Maturity date of debt instrument | Sep. 27, 2022 | |||||||||||
Floating Rate Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | $ 200,000,000 | |||||||||||
Floating Rate Notes [Member] | Due in 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | 200,000,000 | |||||||||||
Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | $ 300,000,000 | |||||||||||
Senior Notes [Member] | Due in 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 450,000,000 | |||||||||||
Repayments of term loan | $ 250,000,000 | |||||||||||
Senior Notes [Member] | Due in 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 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] | 3.375% [Member] | Due in 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | $ 300,000,000 | |||||||||||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% | ||||||||
Senior Notes [Member] | 1.450% [Member] | Due in 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 850,000,000 | $ 850,000,000 | ||||||||||
Maturity date of debt instrument | Nov. 22, 2024 | |||||||||||
Interest rate | 1.45% | 1.45% | 1.45% | 1.45% | 1.45% | |||||||
Senior Notes [Member] | 2.600% [Member] | Due in 2031 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 750,000,000 | $ 750,000,000 | ||||||||||
Maturity date of debt instrument | Nov. 24, 2031 | |||||||||||
Interest rate | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | |||||||
Senior Notes [Member] | 3.700% [Member] | Due in 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 86,300,000 | $ 300,000,000 | ||||||||||
Interest rate | 3.70% | 3.70% | 3.70% | 3.70% | ||||||||
Notes tendered, principal amount | $ 213,700,000 | |||||||||||
Senior Notes [Member] | 3.550% [Member] | Due in 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 863,000,000 | $ 2,000,000,000 | ||||||||||
Interest rate | 3.55% | 3.55% | 3.55% | 3.55% | ||||||||
Notes tendered, principal amount | $ 1,137,000,000 | |||||||||||
Senior Notes [Member] | 3.550% [Member] | Due in 2030 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 900,000,000 | $ 257,500,000 | $ 900,000,000 | |||||||||
Maturity date of debt instrument | Mar. 20, 2030 | |||||||||||
Interest rate | 3.55% | 3.55% | 3.55% | 3.55% | 3.55% | |||||||
Notes tendered, principal amount | $ 642,500,000 | |||||||||||
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% | |||||||||||
Multi Currency Revolving Facility | Two Thousand Twenty One Five Year Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Aug. 20, 2026 | |||||||||||
Principal amount, unsecured credit facility | $ 1,500,000,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Uncommitted incremental feature | 500,000,000 | |||||||||||
Multi Currency Revolving Facility | Two Thousand Nineteen Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount, unsecured credit facility | $ 1,500,000,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Five Year Revolving Facility | Two Thousand Twenty One Five Year Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowings | 0 | |||||||||||
Japan Term Loan A and Japan Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 286,200,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Components of Accumulated Other Comprehensive Income, Net of Tax (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | $ 12,194.2 |
AOCI before reclassifications | 60 |
Reclassifications to statements of earnings | 6.2 |
Stockholders equity, ending balance | 12,660.7 |
Foreign Currency Translation [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (7.2) |
AOCI before reclassifications | (99.9) |
Stockholders equity, ending balance | (107.1) |
Defined Benefit Plan Items [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (235) |
AOCI before reclassifications | 73.5 |
Reclassifications to statements of earnings | 4.9 |
Stockholders equity, ending balance | (156.6) |
Total AOCI [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (297.8) |
Stockholders equity, ending balance | (231.6) |
Cash Flow Hedges [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (55.6) |
AOCI before reclassifications | 86.4 |
Reclassifications to statements of earnings | 1.3 |
Stockholders equity, ending balance | $ 32.1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification Adjustments from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income Loss [Line Items] | |||
Cost of products sold | $ (2,341) | $ (2,128.3) | $ (2,252.6) |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Interest expense, net | $ (208.4) | $ (212) | $ (226.9) |
Earnings (Loss) before income taxes | 418.4 | (274.4) | 905.8 |
Provision (benefit) for income taxes | 16.3 | (137) | (225.7) |
Other income (expense), net | 11.8 | 25.4 | (4.8) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Net of tax | (6.2) | 35.6 | 30.1 |
Net of tax | (6.2) | 35.6 | 30.1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Earnings (Loss) before income taxes | (1.4) | 44.8 | 40.6 |
Provision (benefit) for income taxes | (0.1) | 6.3 | 5.5 |
Net of tax | (1.3) | 38.5 | 35.1 |
Net of tax | (1.3) | 38.5 | 35.1 |
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 | $ (0.8) | $ 45.4 | $ 38.4 |
Type of Cost, Good or Service [Extensible List] | 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 | $ (0.6) | $ (0.6) | $ (0.6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Interest expense, net | 2.8 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Earnings (Loss) before income taxes | (7.1) | (4.6) | (7.3) |
Provision (benefit) for income taxes | (2.2) | (1.7) | (2.3) |
Net of tax | (4.9) | (2.9) | (5) |
Net of tax | (4.9) | (2.9) | (5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Curtailment Gain [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Other income (expense), net | 7.2 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Prior Service Cost [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Other income (expense), net | 4 | 3.9 | 7.3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Unrecognized Actuarial (Loss) [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Other income (expense), net | $ (11.1) | $ (8.5) | $ (21.8) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - Tax Effects on Each Component of Accumulated Other Comprehensive Income Recognized in Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Foreign currency cumulative translation adjustments, before tax | $ (54.8) | $ (43.4) | $ 12.1 |
Unrealized cash flow hedge gains (losses) | 102.5 | (42.7) | 34.6 |
Reclassification adjustments on cash flow hedges, before tax | 1.4 | (44.8) | (40.6) |
Adjustments to prior service cost and unrecognized actuarial assumptions, before tax | 96.9 | (20.9) | (56.4) |
Total Other Comprehensive Income (Loss) | 146 | (151.8) | (50.3) |
Foreign currency cumulative translation adjustments, tax | 45.1 | (69) | 13.6 |
Unrealized cash flow hedge gains (losses) | 16.1 | (9.2) | 4 |
Reclassification adjustments on cash flow hedges, tax | 0.1 | (6.3) | (5.5) |
Adjustments to prior service cost and unrecognized actuarial assumptions, tax | 18.5 | (11.4) | (7.9) |
Total Other Comprehensive Income (Loss) | 79.8 | (95.9) | 4.2 |
Foreign currency cumulative translation adjustments, net of tax | (99.9) | 25.6 | (1.5) |
Unrealized cash flow hedge gains/(losses), net of tax | 86.4 | (33.5) | 30.6 |
Reclassification adjustments on cash flow hedges, net of tax | 1.3 | (38.5) | (35.1) |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 78.4 | (9.5) | (48.5) |
Total Other Comprehensive Income (Loss) | $ 66.2 | $ (55.9) | $ (54.5) |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) € in Millions, SFr in Millions, ¥ in Billions | 12 Months Ended | ||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021JPY (¥) | Dec. 31, 2021CHF (SFr) | Jun. 30, 2021USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value hedges of fixed rate obligations | $ 1,000,000 | ||||||
Unamortized balance related to discontinued hedges instruments which will be recognized under effective interest rate method | $ 0 | ||||||
Forward starting interest rate swap cash flow hedge to be amortized | $ 25,300,000 | ||||||
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 | ||||||
Loss on early extinguishment of debt | $ (165,100,000) | ||||||
Fair value of outstanding derivative instruments, net unrealized loss deferred in accumulated other comprehensive income | (33,800,000) | ||||||
Gains (losses) on derivatives | (3,700,000) | $ (22,800,000) | $ (3,400,000) | ||||
Cost of Products Sold [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value of outstanding derivative instruments, loss, expected to be reclassified to earnings | 27,900,000 | ||||||
Fair value of outstanding derivative instruments, loss, net of taxes expected to be reclassified to earnings | 23,600,000 | ||||||
Interest Expense [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value of outstanding derivative instruments, loss, net of taxes expected to be reclassified to earnings | (500,000) | ||||||
Fair value of outstanding derivative instruments, loss, expected to be reclassified to earnings | (700,000) | ||||||
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 | (32,100,000) | ||||||
Cross Currency Interest Rate Swaps [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | € 675 | ¥ 7 | SFr 50 | ||||
Cross-Currency Interest Rate Swaps Matured [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | € | € 775 | ||||||
Net Investment Hedge Gain Loss At Maturity | 40,000,000 | ||||||
Foreign Exchange Contract [Member] | U.S. Dollars [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | 1,295,200,000 | ||||||
Foreign Exchange Contract [Member] | Swiss Francs [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | $ 347,000,000 | ||||||
4.450% [Member] | Senior Notes [Member] | Due in 2045 [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Hedged senior notes maturity period | 30 years | ||||||
Interest rate | 4.45% | 4.45% | 4.45% | 4.45% | 4.45% | ||
Derivatives Designated as Hedges [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | $ 1,000,000 | ||||||
Derivatives Not Designated as Hedges [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loss on early extinguishment of debt | $ 12,000,000 | ||||||
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 | ||||||
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 |
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 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Current portion of long-term debt | $ 1,605.1 | $ 500 | |
Fair value hedges of fixed rate obligations | $ 1 | ||
Carrying Amount of Hedged Liabilities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Current portion of long-term debt | 303 | ||
Fair value hedges of fixed rate obligations | 985.2 | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of Hedged Liabilities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Current portion of long-term debt | $ 3.1 | ||
Fair value hedges of fixed rate obligations | $ (10.5) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Gross Unrealized Losses from Derivative Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | $ 102.5 | $ (42.7) | $ 34.6 |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | 102.5 | (42.7) | 34.6 |
Amount of Gain / (Loss) Reclassified from AOCI | (1.4) | 44.8 | 40.6 |
Amount of Gain / (Loss) Reclassified from AOCI | (1.4) | 44.8 | 40.6 |
Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | 102.5 | (42.7) | 34.6 |
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 | (0.8) | 45.4 | 38.4 |
Amount of Gain / (Loss) Reclassified from AOCI | (0.8) | 45.4 | 38.4 |
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | 2.8 | ||
Amount of Gain / (Loss) Reclassified from AOCI | 2.8 | ||
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 | (0.6) | (0.6) | (0.6) |
Amount of Gain / (Loss) Reclassified from AOCI | $ (0.6) | $ (0.6) | $ (0.6) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Consolidated Statements of Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on net investment hedging relationships | $ 232.6 | $ (295.3) | $ 58.6 |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (1.4) | 44.8 | 40.6 |
Cross Currency Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on net investment hedging relationships | 103 | (143.8) | 47.9 |
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 | 2,341 | 2,128.3 | 2,252.6 |
Cost of Products Sold [Member] | Foreign Exchange Forward Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (0.8) | 45.4 | 38.4 |
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 | (208.4) | (212) | (226.9) |
Interest Expense [Member] | Discontinued Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on fair value hedging relationships | 3.1 | 3.3 | 8.2 |
Interest Expense [Member] | Interest Rate Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on fair value hedging relationships | 6.4 | ||
Interest Expense [Member] | Forward Starting Interest Rate Swaps [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (0.6) | (0.6) | (0.6) |
Interest Expense [Member] | Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | 2.8 | ||
Interest Expense [Member] | Cross Currency Interest Rate Swaps [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on net investment hedging relationships | $ 37.5 | $ 53.5 | $ 52.2 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivative Instruments Not Designated as Hedging Instruments (Detail) - Derivatives Not Designated as Hedges [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | $ (1.8) | $ 10.6 | $ (11) |
Reverse Treasury Lock [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) from derivative instruments not designated as hedging instruments | $ 12 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on Gross Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 86.2 | $ 15.9 |
Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 25 | 147.2 |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.4 | 1.5 |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.8 | 3.8 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 42.3 | 12.2 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.4 | 1.5 |
Foreign Exchange Forward Contracts [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 20.9 | 3.7 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 9.6 | 37.4 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.8 | 3.8 |
Foreign Exchange Forward Contracts [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.5 | 26.5 |
Cross Currency Interest Rate Swaps [Member] | Other Current Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 16.3 | |
Cross Currency Interest Rate Swaps [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6.7 | |
Cross Currency Interest Rate Swaps [Member] | Other Current Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.1 | 55 |
Cross Currency Interest Rate Swaps [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3.3 | $ 28.3 |
Interest Rate Swaps [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 10.5 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Schedule of Effects of Master Netting Agreements on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | $ 86.2 | $ 15.9 |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 1.4 | 1.5 |
Offset | 0.3 | 0.6 |
Net Amount in Balance Sheet | 1.1 | 0.9 |
Other Current Assets [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 42.3 | 12.2 |
Offset | 9.5 | 11.7 |
Net Amount in Balance Sheet | 32.8 | 0.5 |
Other Assets [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 20.9 | 3.7 |
Offset | 1.3 | 3.7 |
Net Amount in Balance Sheet | 19.6 | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 1.8 | 3.8 |
Offset | 0.3 | 0.6 |
Net Amount in Balance Sheet | 1.5 | 3.2 |
Other Current Liabilities [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 9.6 | 37.4 |
Offset | 9.5 | 11.7 |
Net Amount in Balance Sheet | 0.1 | 25.7 |
Other Long-term Liabilities [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 1.5 | 26.5 |
Offset | 1.3 | 3.7 |
Net Amount in Balance Sheet | $ 0.2 | $ 22.8 |
Derivative Instruments and H_10
Derivative Instruments and Hedging Activities - Net Investment Hedge Gains Recognized on Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | $ 232.6 | $ (295.3) | $ 58.6 |
Euro Notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | 129.6 | (151.5) | 10.7 |
Cross Currency Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | $ 103 | $ (143.8) | $ 47.9 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States | |||
Net Periodic Benefit Cost | |||
Service cost | $ 0.9 | $ 0.7 | $ 7.1 |
Interest cost | 10.5 | 13.9 | 16.2 |
Expected return on plan assets | (29.8) | (32.9) | (32.4) |
Curtailment gain | (7.2) | ||
Settlements | 6.4 | 0.5 | 0.8 |
Amortization of prior service cost | 0.3 | 0.3 | (3.4) |
Amortization of unrecognized actuarial loss | 8.6 | 7.2 | 19.3 |
Net periodic benefit (income) expense | (3.1) | (10.3) | 0.4 |
Foreign [Member] | |||
Net Periodic Benefit Cost | |||
Service cost | 24.7 | 24.7 | 19 |
Interest cost | 4.9 | 5.4 | 9 |
Expected return on plan assets | (15.6) | (13.3) | (13.4) |
Settlements | 0.5 | (0.5) | |
Amortization of prior service cost | (4.3) | (4.2) | (3.9) |
Amortization of unrecognized actuarial loss | 2.5 | 1.3 | 2.5 |
Net periodic benefit (income) expense | $ 12.7 | $ 13.4 | $ 13.2 |
Retirement Benefit Plans - Weig
Retirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine Net Pension Expense for Our Defined Benefit Retirement Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 2.04% | 3.40% | 4.38% |
Rate of compensation increase | 3.29% | ||
Expected long-term rate of return on plan assets | 6.75% | 7.75% | 7.75% |
Foreign [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 0.63% | 0.73% | 1.44% |
Rate of compensation increase | 2.39% | 2.28% | 2.50% |
Expected long-term rate of return on plan assets | 2.09% | 2.17% | 2.14% |
Retirement Benefit Plans - Chan
Retirement Benefit Plans - Changes in Projected Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
United States | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation - beginning of year | $ 516.9 | $ 472 | |
Service cost | 0.9 | 0.7 | $ 7.1 |
Interest cost | 10.5 | 13.9 | 16.2 |
Benefits paid | (13.3) | (24) | |
Actuarial loss | 3 | 55.6 | |
Settlement | (14.9) | (1.3) | |
Projected benefit obligation - end of year | 503.1 | 516.9 | 472 |
Foreign [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation - beginning of year | 819.3 | 740.4 | |
Service cost | 24.7 | 24.7 | 19 |
Interest cost | 4.9 | 5.4 | 9 |
Plan amendments | 0.2 | ||
Employee contributions | 23.4 | 22.1 | |
Benefits paid | (41.7) | (39.8) | |
Actuarial loss | 6.1 | 12.5 | |
Expenses paid | (0.2) | (0.3) | |
Settlement | (3) | (4.5) | |
Translation (gain) loss | (25.6) | 58.6 | |
Projected benefit obligation - end of year | $ 807.9 | $ 819.3 | $ 740.4 |
Retirement Benefit Plan - Chang
Retirement Benefit Plan - Changes in Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
United States | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Plan assets at fair market value - beginning of year | $ 474.1 | $ 444.9 |
Actual return on plan assets | 50.5 | 51.4 |
Employer contributions | 3.1 | 3.1 |
Settlements | (14.9) | (1.3) |
Benefits paid | (13.3) | (24) |
Plan assets at fair market value - end of year | 499.5 | 474.1 |
Funded status | (3.6) | (42.8) |
Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Plan assets at fair market value - beginning of year | 756.7 | 665.2 |
Actual return on plan assets | 86.6 | 40 |
Employer contributions | 22.4 | 21.2 |
Employee contributions | 23.4 | 22.1 |
Settlements | (3) | (4.5) |
Benefits paid | (41.7) | (39.8) |
Expenses paid | (0.2) | (0.3) |
Translation (loss) gain | (23) | 52.8 |
Plan assets at fair market value - end of year | 821.2 | 756.7 |
Funded status | $ 13.3 | $ (62.6) |
Retirement Benefit Plan - Summa
Retirement Benefit Plan - Summary of Amounts Recognized in Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
United States | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Prepaid pension | $ 2.7 | |
Short-term accrued benefit liability | (0.1) | $ (0.1) |
Long-term accrued benefit liability | (6.2) | (42.7) |
Net amount recognized | (3.6) | (42.8) |
Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Prepaid pension | 54.9 | 20.4 |
Short-term accrued benefit liability | (1.3) | (1.3) |
Long-term accrued benefit liability | (40.3) | (81.7) |
Net amount recognized | $ 13.3 | $ (62.6) |
Retirement Benefit Plans - We_2
Retirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine Projected Benefit Obligation for Defined Benefit Retirement Plans (Detail) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
United States | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 2.70% | 2.70% | 3.40% |
Rate of compensation increase | 3.29% | ||
Foreign [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 0.73% | 0.61% | 0.74% |
Rate of compensation increase | 2.48% | 2.36% | 2.45% |
Retirement Benefit Plans - Plan
Retirement Benefit Plans - Plans with Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
United States | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | $ 468.5 | $ 516.9 |
Plan assets at fair market value | 462.2 | 474.1 |
Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | 38.8 | 778.4 |
Plan assets at fair market value | $ 8.1 | $ 709.5 |
Retirement Benefit Plans - Tota
Retirement Benefit Plans - Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
United States | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Total accumulated benefit obligations | $ 503.1 | $ 516.9 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 468.5 | 516.9 |
Plan assets at fair market value | 462.2 | 474.1 |
Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Total accumulated benefit obligations | 783 | 801.3 |
Plans with accumulated benefit obligations in excess of plan assets: | ||
Accumulated benefit obligation | 36.4 | 560.9 |
Plan assets at fair market value | $ 8.1 | $ 508.6 |
Retirement Benefit Plans - Summ
Retirement Benefit Plans - Summary of Benefits Expected to be Paid Out (Detail) $ in Millions | Dec. 31, 2021USD ($) |
United States | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
2022 | $ 24.6 |
2023 | 25.4 |
2024 | 25.7 |
2025 | 26.3 |
2026 | 27 |
2027-2031 | 133.1 |
Foreign [Member] | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
2022 | 32.8 |
2023 | 34.8 |
2024 | 33.6 |
2025 | 35 |
2026 | 34.7 |
2027-2031 | $ 175.7 |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Expense related to defined contribution plan | $ 52.4 | $ 49.6 | $ 52.6 |
Foreign [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Contribution towards defined benefit plans | $ 19.1 | ||
Minimum [Member] | United States | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 30.00% | ||
Minimum [Member] | United States | Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 30.00% | ||
Minimum [Member] | United States | Non-Traditional Investments [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 0.00% | ||
Minimum [Member] | Foreign [Member] | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 20.00% | ||
Minimum [Member] | Foreign [Member] | Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 30.00% | ||
Minimum [Member] | Foreign [Member] | Real Estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 15.00% | ||
Minimum [Member] | Foreign [Member] | Cash Fund [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 3.00% | ||
Minimum [Member] | Foreign [Member] | Other Funds [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 0.00% | ||
Maximum [Member] | United States | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 65.00% | ||
Maximum [Member] | United States | Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 50.00% | ||
Maximum [Member] | United States | Non-Traditional Investments [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 15.00% | ||
Maximum [Member] | Foreign [Member] | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 37.00% | ||
Maximum [Member] | Foreign [Member] | Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 50.00% | ||
Maximum [Member] | Foreign [Member] | Real Estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 24.00% | ||
Maximum [Member] | Foreign [Member] | Cash Fund [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 15.00% | ||
Maximum [Member] | Foreign [Member] | Other Funds [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 12.00% |
Retirement Benefit Plans - Fair
Retirement Benefit Plans - Fair Value of U.S. and Puerto Rico Pension Plan Assets (Detail) - United States - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 499.5 | $ 474.1 | $ 444.9 |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 3.8 | 7.3 | |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 495.7 | 466.8 | |
Cash and Cash Equivalents [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 3.8 | 7.3 | |
Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 3.8 | 7.3 | |
Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 342.1 | 304.1 | |
Equity Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 342.1 | 304.1 | |
Intermediate Fixed Income Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 153.6 | 162.7 | |
Intermediate Fixed Income Debt Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 153.6 | $ 162.7 |
Retirement Benefit Plans - Fa_2
Retirement Benefit Plans - Fair Value of Foreign Pension Plan Assets (Detail) - Foreign [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 821.2 | $ 756.7 | $ 665.2 |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 206.2 | 169.5 | |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 454.4 | 441.9 | |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 160.6 | 145.3 | |
Cash and Cash Equivalents [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 56.6 | 42.7 | |
Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 56.6 | 42.7 | |
Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 185.5 | 163.9 | |
Equity Securities [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 149.6 | 126.8 | |
Equity Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 35.9 | 37.1 | |
Fixed Income Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 195.5 | 262.5 | |
Fixed Income Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 195.5 | 262.5 | |
Other Types of Investments [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 223 | 142.3 | |
Other Types of Investments [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 223 | 142.3 | |
Real Estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 160.6 | 145.3 | |
Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 160.6 | $ 145.3 |
Retirement Benefit Plans - Reco
Retirement Benefit Plans - Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value (Detail) - Foreign [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Fair Values of Plan Assets [Line Items] | ||
Plan assets at fair market value - beginning of year | $ 756.7 | $ 665.2 |
Translation gain | (23) | 52.8 |
Plan assets at fair market value - end of year | 821.2 | 756.7 |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | ||
Schedule of Fair Values of Plan Assets [Line Items] | ||
Plan assets at fair market value - beginning of year | 145.3 | |
Gain on assets sold | 0.7 | |
Change in fair value of assets | 7 | |
Net purchases and sales | 11.9 | |
Translation gain | (4.3) | |
Plan assets at fair market value - end of year | $ 160.6 | $ 145.3 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings (Loss) Before Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States operations | $ (275.7) | $ (592.9) | $ (125.9) |
Foreign operations | 694.1 | 318.5 | 1,031.7 |
Earnings (Loss) before income taxes | $ 418.4 | $ (274.4) | $ 905.8 |
Income Taxes - Provision_(Benef
Income Taxes - Provision/(Benefit) for Income Taxes and Income Taxes Paid (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 32.2 | $ (96.1) | $ 65.5 |
State | 10.4 | 4.6 | 9.8 |
Foreign | 123.4 | (57.5) | 237.7 |
Current, Total | 166 | (149) | 313 |
Deferred: | |||
Federal | (115.8) | (24.2) | (90.2) |
State | (21.6) | (11.5) | (4.2) |
Foreign | (12.3) | 47.7 | (444.3) |
Deferred, Total | (149.7) | 12 | (538.7) |
Provision (benefit) for income taxes | 16.3 | (137) | (225.7) |
Net income taxes paid | $ 272.8 | $ 147.4 | $ 192.5 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal deduction | (3.00%) | 2.40% | 0.80% |
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits | (17.40%) | 14.90% | (10.20%) |
Change in valuation allowance | (1.00%) | 1.50% | 1.50% |
Non-deductible expenses | 2.00% | (2.00%) | 0.40% |
Goodwill impairment | (46.10%) | ||
Tax rate change | (0.40%) | 3.80% | 0.60% |
Tax impact of certain significant transactions | 1.30% | ||
Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction | 0.50% | 5.80% | (4.50%) |
R&D tax credit | (2.80%) | 2.10% | (1.20%) |
Share-based compensation | (0.60%) | 0.10% | (0.40%) |
Net uncertain tax positions, including interest and penalties | 3.80% | 31.40% | 1.90% |
U.S. tax reform | 0.10% | ||
Switzerland tax reform and certain restructuring transactions | 15.70% | (34.80%) | |
Other | 0.50% | (0.70%) | (0.10%) |
Effective income tax rate | 3.90% | 49.90% | (24.90%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Inventory | $ 273.6 | $ 297.2 |
Net operating loss carryover | 463.8 | 511.2 |
Tax credit carryover | 86.6 | 55.1 |
Capital loss carryover | 8.6 | 9 |
Product liability and litigation | 45.8 | 53.9 |
Accrued liabilities | 103.9 | 86.1 |
Share-based compensation | 32.6 | 30.4 |
Accounts receivable | 19.8 | 19 |
Foreign currency items | 57.4 | |
Other | 55.4 | 19.2 |
Total deferred tax assets | 1,090.1 | 1,138.5 |
Less: Valuation allowances | (470.1) | (542.1) |
Total deferred tax assets after valuation allowances | 620 | 596.4 |
Deferred tax liabilities: | ||
Fixed assets | 132.7 | 119.2 |
Intangible assets | 687.5 | 787.6 |
Foreign currency items | 3.8 | |
Other | 32.2 | 28.2 |
Total deferred tax liabilities | 856.2 | 935 |
Total net deferred income taxes | $ (236.2) | $ (338.6) |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | $ 463.8 | $ 511.2 |
Tax credit carryover | 86.6 | 55.1 |
Capital loss carryover | 8.6 | $ 9 |
Net operating loss carryover valuation allowance | 401.6 | |
Tax credit carryover valuation allowance | 46.7 | |
Capital loss carryover valuation allowance | 8.6 | |
1-5 Years [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 3.3 | |
Tax credit carryover | 15.1 | |
Capital loss carryover | 1.7 | |
6-10 Years [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 52.7 | |
Tax credit carryover | 62.4 | |
11+ Years [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 279.5 | |
Tax credit carryover | 1.6 | |
Indefinite [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 128.3 | |
Tax credit carryover | 7.5 | |
Capital loss carryover | $ 6.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes Disclosure [Line Items] | |||
Valuation allowances for potential capital losses | $ 13.2 | ||
Estimated of cash and repatriate of foreign entities | 4,600 | ||
Unrecognized tax benefits income tax penalties and interest expense recognized | 8.9 | $ 1.7 | $ 15 |
Recognized liability for interest and penalties | 116.4 | $ 107.5 | $ 109.2 |
Decrease in unrecognized tax benefits within the next twelve months | 140 | ||
Increase in unrecognized tax benefits within the next twelve months | 20 | ||
Amount of potential additional income tax expense related to an IRS notice of proposed adjustment subject to interest and penalties. | $ 370 | ||
State examination period after notification | up to one year | ||
Minimum [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income tax expense repatriation of E&P | $ 5,000 | ||
State jurisdictions statutes of limitation period | 3 years | ||
Maximum [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income tax expense repatriation of E&P | $ 6,000 | ||
State jurisdictions statutes of limitation period | 5 years |
Income Taxes - Tabular Reconcil
Income Taxes - Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1 | $ 619.4 | $ 741.8 | $ 685.5 |
Increases related to prior periods | 11.5 | 75.3 | 24.7 |
Decreases related to prior periods | (12.7) | (158.3) | (35.6) |
Increases related to current period | 7.3 | 3.4 | 133.2 |
Decreases related to settlements with taxing authorities | (65.1) | (14.6) | (60.2) |
Decreases related to lapse of statute of limitations | (1.8) | (28.2) | (5.8) |
Balance at December 31 | 558.6 | 619.4 | 741.8 |
Amounts impacting effective tax rate, if recognized balance at December 31 | $ 426.4 | $ 473.9 | $ 599.2 |
Capital Stock and Earnings pe_3
Capital Stock and Earnings per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Preferred stock, shares authorized | 250,000,000 | ||
Preferred stock, shares issued | 0 | ||
Preferred stock, shares outstanding | 0 | ||
Options to purchase shares of common stock not included in the computation of diluted earnings per share | 1,300,000 | 0 | 900,000 |
Capital Stock and Earnings pe_4
Capital Stock and Earnings per Share - Reconciliation of Weighted Average Shares for Basic and Diluted Shares Computations (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding for basic net earnings per share | 208.6 | 207 | 205.1 |
Effect of dilutive stock options and other equity awards | 1.8 | 1.6 | |
Weighted average shares outstanding for diluted net earnings per share | 210.4 | 207 | 206.7 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 4 | ||
Net Sales | $ 7,836.2 | $ 7,024.5 | $ 7,982.2 |
Share of revenue from an individual country in net sales | less than 10 percent | ||
US [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | $ 4,529.5 | $ 4,123.5 | $ 4,592.1 |
Segment Data - Summary of Net S
Segment Data - Summary of Net Sales and Other Information by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | $ 7,836.2 | $ 7,024.5 | $ 7,982.2 |
Operating Profit (Loss) | 780.1 | (87.8) | 1,137.5 |
Depreciation and Amortization | 1,067.4 | 1,032.7 | 1,006.1 |
Intangible asset amortization | 615.7 | 597.6 | 584.3 |
Goodwill and intangible asset impairment | (16.3) | (645) | (70.1) |
Restructuring and other cost reduction initiatives | (129.1) | (116.9) | (50) |
Quality remediation | (53.1) | (50.9) | (82.4) |
Acquisition, integration, divestiture and related | (79.8) | (23.8) | (12.2) |
Intangible asset amortization | (615.7) | (597.6) | (584.3) |
Americas Orthopedics [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 4,102.1 | 3,699.5 | 4,148.8 |
Operating Profit (Loss) | 1,709.3 | 1,528.2 | 1,831.8 |
Depreciation and Amortization | 143.1 | 135.6 | 126.6 |
EMEA [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,671.1 | 1,391.3 | 1,746.9 |
Asia Pacific [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,364.9 | 1,297.8 | 1,359.5 |
Americas Spine and Global Dental [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 882 | 779.5 | 886.5 |
Operating Profit (Loss) | 136 | 105.6 | 150.9 |
Depreciation and Amortization | 26 | 32.7 | 35.6 |
Operating Segments [Member] | EMEA [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,533.8 | 1,288.6 | 1,623.1 |
Operating Profit (Loss) | 392.7 | 308.9 | 484 |
Depreciation and Amortization | 74.4 | 77.5 | 77 |
Operating Segments [Member] | Asia Pacific [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,318.3 | 1,256.9 | 1,323.8 |
Operating Profit (Loss) | 429.4 | 420.5 | 472.7 |
Depreciation and Amortization | 74.6 | 71.3 | 65.3 |
Segment Reconciling Items [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Corporate Functions | (632.2) | (754.1) | (750.9) |
Inventory and manufacturing-related charges | (41.8) | (54.2) | (53.9) |
Intangible asset amortization | (615.7) | (597.6) | (584.3) |
Goodwill and intangible asset impairment | (16.3) | (645) | (70.1) |
Restructuring and other cost reduction initiatives | (130.5) | (116.9) | (50) |
Quality remediation | (53.2) | (49.8) | (87.6) |
Acquisition, integration, divestiture and related | (81.8) | (23.8) | (12.2) |
Litigation | (192.9) | (159.8) | (65) |
Litigation settlement gain | 23.5 | ||
European Union Medical Device Regulation | (46.5) | (25.3) | (30.9) |
Certain R&D agreements | (65) | ||
Other charges | (11.4) | (24.5) | (120.5) |
Depreciation of corporate functions | 133.6 | 118 | 117.3 |
Intangible asset amortization | $ 615.7 | $ 597.6 | $ 584.3 |
Segment Data - Disclosure on Ge
Segment Data - Disclosure on Geographic Areas, Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 2,016.5 | $ 2,047.7 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 1,212.6 | 1,252.6 |
Other Countries [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 803.9 | $ 795.1 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate Leases [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, option to extend | Our real estate leases generally have terms of between 5 to 10 years and contain lease extension options that can vary from month-to-month extensions to up to 5 year extensions. We include extension options in our lease term if we are reasonably certain to exercise that option. |
Lessee, operating lease, existence of option to extend | true |
Real Estate Leases [Member] | Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Real Estate Leases [Member] | Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Lessee, operating lease, renewal term | 5 years |
Vehicle Leases [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, option to extend | Our vehicle leases generally have terms of between 3 to 5 years and contain lease extension options on a month-to-month basis. Our vehicle leases are generally not reasonably certain to be extended. |
Lessee, operating lease, existence of option to extend | true |
Vehicle Leases [Member] | Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 3 years |
Vehicle Leases [Member] | Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Leases - Schedule of Informatio
Leases - Schedule of Information on Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lease cost | $ 85.8 | $ 83.7 | $ 76 |
Cash paid for leases recognized in operating cash flows | 86.3 | 81.4 | 73.6 |
Right-of-use assets obtained in exchange for new lease liabilities | 96.4 | 83.5 | $ 55 |
Right-of-use assets recognized in Other assets | $ 271.2 | $ 274.5 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | |
Lease liabilities recognized in Other current liabilities | $ 69.3 | $ 75 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Lease liabilities recognized in Other long-term liabilities | $ 220.2 | $ 217.8 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities | |
Weighted-average remaining lease term | 5 years 10 months 24 days | 5 years 9 months 18 days | |
Weighted-average discount rate | 2.00% | 2.30% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 73.8 |
2023 | 59.5 |
2024 | 47.7 |
2025 | 35.4 |
2026 | 28.7 |
Thereafter | 62.4 |
Total | 307.5 |
Less imputed interest | 18 |
Total | $ 289.5 |
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 (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||||
Net Litigation Related Charges | $ 204.3 | $ 166.9 | $ 52.7 | |||||||
Accrued litigation liabilities | 420.5 | $ 319.4 | ||||||||
Loss contingency, damages awarded, value | $ 2.3 | kr 19,500,000 | ||||||||
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] | ||||||||||
Loss Contingency Accrual | 0 | |||||||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 365 |
Schedule - Valuation and Qualif
Schedule - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 75.8 | $ 65 | $ 65.7 |
Additions Charged (Credited) to Expense | 15.1 | 21.8 | 5.5 |
Deductions / Other Additions to Reserve | (14.2) | (12.7) | (5.3) |
Effects of Foreign Currency | (2.1) | 1.7 | (0.9) |
Balance at End of Period | 74.6 | 75.8 | 65 |
Deferred Tax Asset Valuation Allowances [Member] | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 542.1 | 546.1 | 390.9 |
Additions Charged (Credited) to Expense | (4.4) | (3.8) | (6.6) |
Deductions / Other Additions to Reserve | (64) | (3.2) | 165.7 |
Effects of Foreign Currency | (3.6) | 3 | (3.9) |
Balance at End of Period | $ 470.1 | $ 542.1 | $ 546.1 |
Schedule - Valuation and Qual_2
Schedule - Valuation and Qualifying Accounts (Detail) (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounting Standards Update 2016-13 [Member] | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |
Cumulative Effect Adjustment Credit Losses | $ 3.1 |