Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
31-May-14 | Jul. 31, 2014 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'LVB Acquisition, Inc. | ' |
Entity Central Index Key | '0001402366 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-May-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'FY | ' |
Current Fiscal Year End Date | '--05-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Public Float | $0 | ' |
Entity Common Stock, Shares Outstanding | ' | 552,486,996 |
Biomet, Inc. [Member] | ' | ' |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'BIOMET INC | ' |
Entity Central Index Key | '0000351346 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-May-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'FY | ' |
Current Fiscal Year End Date | '--05-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Public Float | $0 | ' |
Entity Common Stock, Shares Outstanding | ' | 1,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | 31-May-14 | 31-May-13 |
Current assets: | ' | ' |
Cash and cash equivalents | $247,600,000 | $355,600,000 |
Accounts receivable, less allowance for doubtful accounts receivables of $31.9 ($33.5 at May 31, 2013) | 577,300,000 | 531,800,000 |
Inventories | 693,400,000 | 624,000,000 |
Deferred income taxes | 149,900,000 | 119,900,000 |
Prepaid expenses and other | 202,900,000 | 141,300,000 |
Total current assets | 1,871,100,000 | 1,772,600,000 |
Property, plant and equipment, net | 716,000,000 | 665,200,000 |
Investments | 12,500,000 | 23,000,000 |
Intangible assets, net | 3,439,600,000 | 3,630,200,000 |
Goodwill | 3,634,400,000 | 3,600,900,000 |
Other assets | 93,000,000 | 102,800,000 |
Total assets | 9,766,600,000 | 9,794,700,000 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 133,100,000 | 40,300,000 |
Accounts payable | 135,300,000 | 111,500,000 |
Accrued interest | 53,400,000 | 56,200,000 |
Accrued wages and commissions | 168,700,000 | 150,100,000 |
Other accrued expenses | 354,700,000 | 206,000,000 |
Total current liabilities | 845,200,000 | 564,100,000 |
Long-term liabilities: | ' | ' |
Long-term debt, net of current portion | 5,587,300,000 | 5,926,100,000 |
Deferred income taxes | 968,600,000 | 1,129,800,000 |
Other long-term liabilities | 256,300,000 | 206,100,000 |
Total liabilities | 7,657,400,000 | 7,826,100,000 |
Commitments and contingencies | ' | ' |
Shareholder’s equity: | ' | ' |
Common stock | 5,500,000 | 5,500,000 |
Contributed and additional paid-in capital | 5,681,500,000 | 5,662,000,000 |
Accumulated deficit | -3,617,100,000 | -3,693,000,000 |
Accumulated other comprehensive income (loss) | 39,300,000 | -5,900,000 |
Total shareholder’s equity | 2,109,200,000 | 1,968,600,000 |
Total liabilities and shareholder’s equity | 9,766,600,000 | 9,794,700,000 |
Biomet, Inc. [Member] | ' | ' |
Current assets: | ' | ' |
Cash and cash equivalents | 247,600,000 | 355,600,000 |
Accounts receivable, less allowance for doubtful accounts receivables of $31.9 ($33.5 at May 31, 2013) | 577,300,000 | 531,800,000 |
Inventories | 693,400,000 | 624,000,000 |
Deferred income taxes | 149,900,000 | 119,900,000 |
Prepaid expenses and other | 202,900,000 | 141,300,000 |
Total current assets | 1,871,100,000 | 1,772,600,000 |
Property, plant and equipment, net | 716,000,000 | 665,200,000 |
Investments | 12,500,000 | 23,000,000 |
Intangible assets, net | 3,439,600,000 | 3,630,200,000 |
Goodwill | 3,634,400,000 | 3,600,900,000 |
Other assets | 93,000,000 | 102,800,000 |
Total assets | 9,766,600,000 | 9,794,700,000 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 133,100,000 | 40,300,000 |
Accounts payable | 135,300,000 | 111,500,000 |
Accrued interest | 53,400,000 | 56,200,000 |
Accrued wages and commissions | 168,700,000 | 150,100,000 |
Other accrued expenses | 354,700,000 | 206,000,000 |
Total current liabilities | 845,200,000 | 564,100,000 |
Long-term liabilities: | ' | ' |
Long-term debt, net of current portion | 5,587,300,000 | 5,926,100,000 |
Deferred income taxes | 968,600,000 | 1,129,800,000 |
Other long-term liabilities | 256,300,000 | 206,100,000 |
Total liabilities | 7,657,400,000 | 7,826,100,000 |
Commitments and contingencies | ' | ' |
Shareholder’s equity: | ' | ' |
Common stock | 0 | 0 |
Contributed and additional paid-in capital | 5,687,000,000 | 5,667,500,000 |
Accumulated deficit | -3,617,100,000 | -3,693,000,000 |
Accumulated other comprehensive income (loss) | 39,300,000 | -5,900,000 |
Total shareholder’s equity | 2,109,200,000 | 1,968,600,000 |
Total liabilities and shareholder’s equity | $9,766,600,000 | $9,794,700,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | 31-May-14 | 31-May-13 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful receivables | $31.90 | $33.50 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 740,000,000 | 740,000,000 |
Common stock, shares issued | 552,484,996 | 552,359,416 |
Common stock, shares outstanding | 552,484,996 | 552,359,416 |
Biomet, Inc. [Member] | ' | ' |
Allowance for doubtful receivables | $31.90 | $33.50 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Net sales | $3,223.40 | $3,052.90 | $2,838.10 |
Cost of sales | 1,040.20 | 873.4 | 775.5 |
Gross profit | 2,183.20 | 2,179.50 | 2,062.60 |
Selling, general and administrative expense | 1,393.20 | 1,312.50 | 1,172.20 |
Research and development expense | 169.6 | 150.3 | 126.8 |
Amortization | 307.2 | 313.8 | 327.2 |
Goodwill impairment charge | 0 | 473 | 291.9 |
Intangible assets impairment charge | 0 | 94.4 | 237.9 |
Operating income (loss) | 313.2 | -164.5 | -93.4 |
Interest expense | 355.9 | 398.8 | 479.8 |
Other (income) expense | -2.8 | 177.8 | 17.6 |
Other expense, net | 353.1 | 576.6 | 497.4 |
Loss before income taxes | -39.9 | -741.1 | -590.8 |
Benefit from income taxes | -115.8 | -117.7 | -132 |
Net income (loss) | 75.9 | -623.4 | -458.8 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in unrealized holding value on available for sale securities | -2.8 | 3.3 | 4.3 |
Interest rate swap unrealized gain | 21.9 | 13.1 | 13.1 |
Foreign currency related gains (losses) | 27.1 | -138.2 | -62.1 |
Unrecognized actuarial gains (losses) | -1 | -7 | -4.2 |
Total other comprehensive income (loss) | 45.2 | -128.8 | -48.9 |
Comprehensive income (loss) | 121.1 | -752.2 | -507.7 |
Biomet, Inc. [Member] | ' | ' | ' |
Net sales | 3,223.40 | 3,052.90 | 2,838.10 |
Cost of sales | 1,040.20 | 873.4 | 775.5 |
Gross profit | 2,183.20 | 2,179.50 | 2,062.60 |
Selling, general and administrative expense | 1,393.20 | 1,312.50 | 1,172.20 |
Research and development expense | 169.6 | 150.3 | 126.8 |
Amortization | 307.2 | 313.8 | 327.2 |
Goodwill impairment charge | 0 | 473 | 291.9 |
Intangible assets impairment charge | 0 | 94.4 | 237.9 |
Operating income (loss) | 313.2 | -164.5 | -93.4 |
Interest expense | 355.9 | 398.8 | 479.8 |
Other (income) expense | -2.8 | 177.8 | 17.6 |
Other expense, net | 353.1 | 576.6 | 497.4 |
Loss before income taxes | -39.9 | -741.1 | -590.8 |
Benefit from income taxes | -115.8 | -117.7 | -132 |
Net income (loss) | 75.9 | -623.4 | -458.8 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Change in unrealized holding value on available for sale securities | -2.8 | 3.3 | 4.3 |
Interest rate swap unrealized gain | 21.9 | 13.1 | 13.1 |
Foreign currency related gains (losses) | 27.1 | -138.2 | -62.1 |
Unrecognized actuarial gains (losses) | -1 | -7 | -4.2 |
Total other comprehensive income (loss) | 45.2 | -128.8 | -48.9 |
Comprehensive income (loss) | $121.10 | ($752.20) | ($507.70) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholder's Equity (USD $) | Total | Common Stock [Member] | Contributed and Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Biomet, Inc. [Member] | Biomet, Inc. [Member] | Biomet, Inc. [Member] | Biomet, Inc. [Member] | Biomet, Inc. [Member] |
Common Stock [Member] | Contributed and Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||||
Beginning Balance at May. 31, 2011 | $3,175,100,000 | $5,500,000 | $5,608,600,000 | ($2,610,800,000) | $171,800,000 | $3,175,100,000 | ' | $5,614,100,000 | ($2,610,800,000) | $171,800,000 |
Beginning Shares at May. 31, 2011 | ' | 552,531,316 | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -458,800,000 | 0 | 0 | -458,800,000 | 0 | -458,800,000 | ' | 0 | -458,800,000 | 0 |
Other comprehensive income (loss) | -48,900,000 | 0 | 0 | 0 | -48,900,000 | -48,900,000 | ' | 0 | 0 | -48,900,000 |
Stock-based compensation expense | 16,000,000 | 0 | 16,000,000 | 0 | 0 | 16,000,000 | ' | 16,000,000 | 0 | 0 |
Repurchase of LVB Acquisition, Inc. shares, in shares | ' | -222,940 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of LVB Acquisition, Inc. shares, value | -1,300,000 | 0 | -1,300,000 | 0 | 0 | -1,300,000 | ' | -1,300,000 | 0 | 0 |
Ending Balance at May. 31, 2012 | 2,682,100,000 | 5,500,000 | 5,623,300,000 | -3,069,600,000 | 122,900,000 | 2,682,100,000 | ' | 5,628,800,000 | -3,069,600,000 | 122,900,000 |
Ending Shares at May. 31, 2012 | ' | 552,308,376 | ' | ' | ' | ' | 1,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -623,400,000 | 0 | 0 | -623,400,000 | 0 | -623,400,000 | ' | 0 | -623,400,000 | 0 |
Other comprehensive income (loss) | -128,800,000 | 0 | 0 | 0 | -128,800,000 | -128,800,000 | ' | 0 | 0 | -128,800,000 |
Stock-based compensation expense | 38,300,000 | 0 | 38,300,000 | 0 | 0 | 38,300,000 | ' | 38,300,000 | 0 | 0 |
Repurchase of LVB Acquisition, Inc. shares, in shares | ' | -12,501 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of LVB Acquisition, Inc. shares, value | -100,000 | 0 | -100,000 | 0 | 0 | -100,000 | ' | -100,000 | 0 | 0 |
Other, in shares | ' | 63,541 | ' | ' | ' | ' | ' | ' | ' | ' |
Other, value | 500,000 | 0 | 500,000 | 0 | 0 | 500,000 | ' | 500,000 | 0 | 0 |
Ending Balance at May. 31, 2013 | 1,968,600,000 | 5,500,000 | 5,662,000,000 | -3,693,000,000 | -5,900,000 | 1,968,600,000 | ' | 5,667,500,000 | -3,693,000,000 | -5,900,000 |
Ending Shares at May. 31, 2013 | 552,359,416 | 552,359,416 | ' | ' | ' | 1,000 | 1,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | 75,900,000 | 0 | 0 | 75,900,000 | 0 | 75,900,000 | ' | 0 | 75,900,000 | 0 |
Other comprehensive income (loss) | 45,200,000 | 0 | 0 | 0 | 45,200,000 | 45,200,000 | ' | 0 | 0 | 45,200,000 |
Stock-based compensation expense | 18,200,000 | 0 | 18,200,000 | 0 | 0 | 18,200,000 | ' | 18,200,000 | 0 | 0 |
Other, in shares | ' | 125,580 | ' | ' | ' | ' | ' | ' | ' | ' |
Other, value | 1,300,000 | 0 | 1,300,000 | 0 | 0 | 1,300,000 | ' | 1,300,000 | 0 | 0 |
Ending Balance at May. 31, 2014 | $2,109,200,000 | $5,500,000 | $5,681,500,000 | ($3,617,100,000) | $39,300,000 | $2,109,200,000 | $1,000 | $5,687,000,000 | ($3,617,100,000) | $39,300,000 |
Ending Shares at May. 31, 2014 | 552,484,996 | 552,484,996 | ' | ' | ' | 1,000 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Cash flows provided by (used in) operating activities: | ' | ' | ' |
Net loss | $75.90 | ($623.40) | ($458.80) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 501.2 | 495.4 | 509.4 |
Amortization of deferred financing costs | 22.7 | 31 | 11.1 |
Stock-based compensation expense | 18.2 | 38.3 | 16 |
Loss on extinguishment of debt | 0 | 155.2 | 0 |
Recovery of doubtful accounts receivable | 5.9 | -4.9 | -5.3 |
Realized gain on investments | -6.6 | -0.2 | -2 |
Loss on impairment of investments | 0 | 0 | 20.1 |
Goodwill and intangible assets impairment charge | 0 | 567.4 | 529.8 |
Property, plant and equipment impairment charge | 0 | 0 | 0.4 |
Deferred income taxes | -238.5 | -215.5 | -204.3 |
Other | -14 | 17.7 | -4.5 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -29.1 | -40.4 | -36.6 |
Inventories | -23.4 | -36 | 13.4 |
Prepaid expenses | -15.9 | 30.5 | -12.3 |
Accounts payable | 12.3 | -3.4 | 28.9 |
Income taxes | 29.5 | -38.4 | -29 |
Accrued interest | -2.9 | -0.3 | -7.6 |
Accrued expenses and other | 193.7 | 95.5 | 8.6 |
Net cash provided by operating activities | 529 | 468.5 | 377.3 |
Cash flows provided by (used in) investing activities: | ' | ' | ' |
Proceeds from sales/maturities of investments | 42.8 | 5.5 | 42.1 |
Purchases of investments | -29.4 | -6.4 | -0.4 |
Net proceeds from sale of property and equipment | 2.4 | 14 | 14.7 |
Capital expenditures | -228.7 | -204 | -179.3 |
Acquisitions, net of cash acquired - 2013 Spine Acquisition | -148.8 | 0 | 0 |
Acquisitions, net of cash acquired - 2012 Trauma Acquisition | 0 | -280 | 0 |
Other acquisitions, net of cash acquired | -3.4 | -17.7 | -21.1 |
Net cash used in investing activities | -365.1 | -488.6 | -144 |
Debt: | ' | ' | ' |
Payments under European facilities | -2.3 | -1.3 | -1.4 |
Payments under senior secured credit facilities | -30.3 | -33.5 | -35.4 |
Proceeds under revolvers/facility | 159.3 | 86.6 | 0 |
Payments under revolvers/facility | -165.3 | -80.6 | 0 |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 870.5 | 3,396.20 | 0 |
Tender/retirement of senior notes due 2017 and term loans | -1,091.60 | -3,423 | 0 |
Payment of fees related to refinancing activities | -15.5 | -79 | 0 |
Equity: | ' | ' | ' |
Repurchase of LVB Acquisition, Inc. shares | 0 | -0.1 | -1.3 |
Option exercises | 1.3 | 0 | 0 |
Net cash used in financing activities | -273.9 | -134.7 | -38.1 |
Effect of exchange rate changes on cash | 2 | 18 | -30.6 |
Increase (decrease) in cash and cash equivalents | -108 | -136.8 | 164.6 |
Cash and cash equivalents, beginning of period | 355.6 | 492.4 | 327.8 |
Cash and cash equivalents, end of period | 247.6 | 355.6 | 492.4 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Interest | 347.4 | 388.6 | 477.1 |
Income taxes | 82.5 | 81.5 | 95 |
Biomet, Inc. [Member] | ' | ' | ' |
Cash flows provided by (used in) operating activities: | ' | ' | ' |
Net loss | 75.9 | -623.4 | -458.8 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 501.2 | 495.4 | 509.4 |
Amortization of deferred financing costs | 22.7 | 31 | 11.1 |
Stock-based compensation expense | 18.2 | 38.3 | 16 |
Loss on extinguishment of debt | 0 | 155.2 | 0 |
Recovery of doubtful accounts receivable | 5.9 | -4.9 | -5.3 |
Realized gain on investments | -6.6 | -0.2 | -2 |
Loss on impairment of investments | 0 | 0 | 20.1 |
Goodwill and intangible assets impairment charge | 0 | 567.4 | 529.8 |
Property, plant and equipment impairment charge | 0 | 0 | 0.4 |
Deferred income taxes | -238.5 | -215.5 | -204.3 |
Other | -14 | 17.7 | -4.5 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -29.1 | -40.4 | -36.6 |
Inventories | -23.4 | -36 | 13.4 |
Prepaid expenses | -15.9 | 30.5 | -12.3 |
Accounts payable | 12.3 | -3.4 | 28.9 |
Income taxes | 29.5 | -38.4 | -29 |
Accrued interest | -2.9 | -0.3 | -7.6 |
Accrued expenses and other | 193.7 | 95.5 | 8.6 |
Net cash provided by operating activities | 529 | 468.5 | 377.3 |
Cash flows provided by (used in) investing activities: | ' | ' | ' |
Proceeds from sales/maturities of investments | 42.8 | 5.5 | 42.1 |
Purchases of investments | -29.4 | -6.4 | -0.4 |
Net proceeds from sale of property and equipment | 2.4 | 14 | 14.7 |
Capital expenditures | -228.7 | -204 | -179.3 |
Acquisitions, net of cash acquired - 2013 Spine Acquisition | -148.8 | 0 | 0 |
Acquisitions, net of cash acquired - 2012 Trauma Acquisition | 0 | -280 | 0 |
Other acquisitions, net of cash acquired | -3.4 | -17.7 | -21.1 |
Net cash used in investing activities | -365.1 | -488.6 | -144 |
Debt: | ' | ' | ' |
Payments under European facilities | -2.3 | -1.3 | -1.4 |
Payments under senior secured credit facilities | -30.3 | -33.5 | -35.4 |
Proceeds under revolvers/facility | 159.3 | 86.6 | 0 |
Payments under revolvers/facility | -165.3 | -80.6 | 0 |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 870.5 | 3,396.20 | 0 |
Tender/retirement of senior notes due 2017 and term loans | -1,091.60 | -3,423 | 0 |
Payment of fees related to refinancing activities | -15.5 | -79 | ' |
Equity: | ' | ' | ' |
Repurchase of LVB Acquisition, Inc. shares | 0 | -0.1 | -1.3 |
Option exercises | 1.3 | 0 | 0 |
Net cash used in financing activities | -273.9 | -134.7 | -38.1 |
Effect of exchange rate changes on cash | 2 | 18 | -30.6 |
Increase (decrease) in cash and cash equivalents | -108 | -136.8 | 164.6 |
Cash and cash equivalents, beginning of period | 355.6 | 492.4 | 327.8 |
Cash and cash equivalents, end of period | 247.6 | 355.6 | 492.4 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Interest | 347.4 | 388.6 | 477.1 |
Income taxes | $82.50 | $81.50 | $95 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies and Nature of Operations | 12 Months Ended |
31-May-14 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies and Nature of Operations | ' |
Summary of Significant Accounting Policies and Nature of Operations. | |
The accompanying consolidated financial statements include the accounts of Biomet, Inc. and its subsidiaries (individually and collectively with its subsidiaries referred to as “Biomet”, the “Company”, “we”, “us”, or “our”). Biomet is a wholly-owned subsidiary of LVB Acquisition, Inc. (“LVB” or “Parent”). LVB has no other operations beyond its ownership of Biomet. Intercompany accounts and transactions have been eliminated in consolidation. | |
Zimmer Merger | |
On April 24, 2014, LVB, a Delaware corporation, which owns all of the outstanding shares of common stock of Biomet, Inc., entered into an Agreement and Plan of Merger (the “Merger Agreement”), with Zimmer Holdings, Inc., a Delaware corporation, and Owl Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Zimmer. Zimmer and LVB currently expect to complete the merger in the first quarter of 2015, subject to the receipt of regulatory approvals and the satisfaction or waiver of the other conditions to the merger contained in the Merger Agreement. However, it is possible that factors outside the control of Zimmer and LVB could require Zimmer and LVB to complete the merger at a later date or not complete it at all. | |
LVB Acquisition Holding, LLC (“Holdings”) and the Principal Stockholders (as defined below) have entered into a voting agreement with Zimmer (the “Voting Agreement”). Under the Voting Agreement, Holdings agreed to execute and deliver a written consent with respect to the shares of LVB common stock owned by it, adopting the Merger Agreement and approving the merger. As of July 31, 2014, Holdings owned approximately 536,034,330 shares, or 97.16%, of our common stock outstanding. Therefore, pursuant to the voting agreement, we expect to receive written consents sufficient to approve our proposed merger with Zimmer. | |
Under the Merger Agreement, LVB will be acquired for an aggregate purchase price based on a total enterprise value of $13.35 billion, which will consist of $10.35 billion in cash (which is subject to adjustment) and 32,704,677 shares of Zimmer common stock (which number of shares represents the quotient of $3.0 billion divided by $91.73, the volume weighted average price of Zimmer’s common stock on the New York Stock Exchange for the five trading days prior to the date of the Merger Agreement). According to Zimmer’s Form 8-K filed on April 30, 2014, in connection with the merger, Zimmer expects to pay off all of the outstanding funded debt of LVB, totaling $5,681.8 million as of July 31, 2014 and its subsidiaries, and the aggregate cash merger consideration paid by Zimmer at the closing will be reduced by such amount. Zimmer is expected to fund the cash portion of the merger consideration and the repayment of the outstanding funded debt of LVB and its subsidiaries with a combination of new debt and cash on hand. The closing of the merger is not conditioned on the receipt of any debt financing by Zimmer. Zimmer, however, is not required to consummate the merger until the completion of a 15 consecutive business day marketing period. | |
Transactions with the Principal Stockholders | |
On December 18, 2006, Biomet, Inc. entered into an Agreement and Plan of Merger with LVB Acquisition, LLC, a Delaware limited liability company, which was subsequently converted to a corporation, LVB Acquisition, Inc., and LVB Acquisition Merger Sub, Inc., an Indiana corporation and a wholly-owned subsidiary of Parent (“Purchaser”), which agreement was amended and restated as of June 7, 2007 and which we refer to as the “2007 Merger Agreement.” Pursuant to the 2007 Merger Agreement, on June 13, 2007, Purchaser commenced a cash tender offer (the “Offer”) to purchase all of Biomet, Inc.’s outstanding common shares, without par value (the “Shares”) at a price of $46.00 per Share (the “Offer Price”) without interest and less any required withholding taxes. The Offer was made pursuant to Purchaser’s offer to purchase dated June 13, 2007 and the related letter of transmittal, each of which was filed with the SEC on June 13, 2007. In connection with the Offer, Purchaser entered into a credit agreement dated as of July 11, 2007 for a $6,165.0 million senior secured term loan facility (the “Tender Facility”), maturing on June 6, 2008, and pursuant to which it borrowed approximately $4,181.0 million to finance a portion of the Offer and pay related fees and expenses. The Offer expired at midnight, New York City time, on July 11, 2007, with approximately 82% of the outstanding Shares having been tendered to Purchaser. At Biomet, Inc.’s special meeting of shareholders held on September 5, 2007, more than 91% of Biomet, Inc.’s shareholders voted to approve the proposed merger, and Parent acquired Biomet, Inc. on September 25, 2007 through a reverse subsidiary merger with Biomet, Inc. being the surviving company (the “2007 Merger”). Subsequent to the acquisition, Biomet, Inc. became a subsidiary of Parent. Approximately 97% of the outstanding shares of Parent common stock are owned by LVB Acquisition Holding, LLC, or “Holding”, an entity controlled collectively by a consortium of private equity funds affiliated with The Blackstone Group, Goldman, Sachs & Co., Kohlberg Kravis Roberts & Co., and TPG Global, LLC (each a “Principal Stockholder” and collectively, the “Principal Stockholders”), and certain investors who agreed to co-invest with the Principal Stockholders, or (the “Co-Investors”). These transactions, including the 2007 Merger and the Company’s payment of any fees and expenses related to these transactions, are referred to collectively as the “2007 Acquisition.” | |
General—Biomet, Inc. is the wholly owned subsidiary of LVB. LVB has no other operations beyond its ownership of Biomet. The Company is one of the largest orthopedic medical device companies in the United States and worldwide with operations in over 50 locations throughout the world and distribution in approximately 90 countries. The Company designs, manufactures and markets a comprehensive range of both surgical and non-surgical products used primarily by orthopedic surgeons and other musculoskeletal medical specialists. For over 30 years, the Company has applied advanced engineering and manufacturing technology to the development of highly durable joint replacement systems. | |
Basis of Presentation—The accompanying consolidated financial statements include the accounts of LVB and its subsidiaries (individually and collectively referred to as “Biomet” or the “Company”). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. | |
Products—The Company operates in one reportable business segment, musculoskeletal products, which includes the design, manufacture and marketing of products in six major categories: Knees, Hips, Sports, Extremities, Trauma (“S.E.T.”), Spine, Bone Healing and Microfixation, Dental and Cement, Biologics and Other Products. The Company has three geographic markets: United States, Europe and International. | |
Knees and Hips—Orthopedic reconstructive implants are used to replace joints that have deteriorated as a result of disease (principally osteoarthritis) or injury. Reconstructive joint surgery involves the modification of the area surrounding the affected joint and the implantation of one or more manufactured components. | |
S.E.T.—The Company manufactures and distributes a number of sports medicine products (used in minimally-invasive orthopedic surgical procedures). Extremity reconstructive implants are used to replace joints other than hips and knees that have deteriorated as a result of disease or injury. Our key reconstructive joint in this product category is the shoulder, but the Company produces other joints as well. Trauma devices are used for setting and stabilizing bone fractures to support and/or augment the body’s natural healing process. Trauma products include plates, screws, nails, pins and wires designed to internally stabilize fractures; devices utilized to externally stabilize fractures when alternative methods of fixation are not suitable; and implantable bone growth stimulation devices for trauma. | |
Spine, Bone Healing and Microfixation Products—The Company’s spine products include spinal fixation systems for cervical, thoracolumbar, deformity correction and spacer applications; implantable bone growth stimulation devices for spine applications; and osteobiologics, including bone substitute materials, as well as allograft services for spinal applications. Bone healing products include non-invasive bone growth stimulation devices used for spine and trauma indications. Microfixation includes products for patients in the neurosurgical and craniomaxillofacial reconstruction markets, as well as thoracic solutions for fixation and stabilization of the bones of the chest. | |
Dental Products—Dental reconstructive devices and associated instrumentation are used for oral rehabilitation through the replacement of teeth and repair of hard and soft tissues. The Company also offers crown and bridge products. | |
Cement, Biologics and Other Products—The Company manufactures and distributes bone cements and cement delivery systems, autologous therapies and other products, including operating room supplies, casting materials, general surgical instruments, wound care products and other miscellaneous surgical products. | |
Effect of Foreign Currency—Assets and liabilities of foreign subsidiaries are translated at rates of exchange in effect at the close of their calendar month end. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are accumulated within accumulated other comprehensive income (loss) as a separate component of shareholders’ equity. Foreign currency transaction gains and losses are included in other (income) expense. | |
Cash and Cash Equivalents—The Company considers all investments that are highly liquid at the date acquired and have original maturities of three months or less to be cash equivalents. | |
Investments—The Company invests the majority of its excess cash in money market funds. The Company also holds a time deposit and corporate securities. The Company accounts for its investments in equity securities in accordance with guidance issued by the Financial Accounting Standards Board (“FASB”), which requires certain securities to be categorized as trading, available-for-sale or held-to-maturity. The Company also accounts for its investments under guidance for fair value measurements, which establishes a framework for measuring fair value, clarifies the definition of fair value within that framework, and expands disclosures about fair value measurements. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of tax, recorded within accumulated other comprehensive income (loss) as a separate component of shareholders’ equity. The Company has no held-to-maturity investments. Trading securities are carried at fair value with the realized gains and losses, recorded within other (income) expense. The cost of investment securities sold is determined by the specific identification method. Dividend and interest income are accrued as earned. The Company reviews its investments quarterly for declines in fair value that are other-than-temporary. Investments that have declined in market value that are determined to be other-than-temporary are charged to other (income) expense, by writing that investment down to fair value. Investments are classified as short-term for those expected to mature or be sold within twelve months and the remaining portion is classified in long-term investments. | |
Other Comprehensive Income (Loss)—Other comprehensive income (loss) includes currency translation adjustments, certain derivative-related activity, changes in the value of available-for-sale investments, and actuarial gains (losses) from pension plans. The Company generally deems its foreign investments to be permanent in nature and does not provide for taxes on currency translation adjustments arising from translating the investment in a foreign currency to U.S. dollars. When the Company determines that a foreign investment is no longer permanent in nature, estimated taxes are provided for the related deferred tax liability (asset), if any, resulting from currency translation adjustments. As of May 31, 2014, foreign investments were all permanent in nature. | |
Concentrations of Credit Risk and Allowance for Doubtful Receivables—The Company provides credit, in the normal course of business, to hospitals, private and governmental institutions and healthcare agencies, insurance providers, dental practices and laboratories, and physicians. The Company maintains an allowance for doubtful receivables based on estimated collection rates and charges actual losses to the allowance when incurred. The determination of estimated collection rates requires management judgment. | |
Other Loss Contingencies—In accordance with guidance issued by the FASB for contingencies, the Company accrues anticipated costs of settlement, damages, and loss of product liability claims based on historical experience or to the extent specific losses are probable and estimable. If the estimate of a probable loss is in a range and no amount within the range is more likely, the Company accrues the minimum amount of the range. Such estimates and any subsequent changes in estimates may result in adjustments to the Company’s operating results in the future. The Company has self-insured reserves against product liability claims with insurance coverage above the retention limits. There are various other claims, lawsuits and disputes with third parties, investigations and pending actions involving various allegations against it. Product liability claims are routinely reviewed by the Company’s insurance carriers and management routinely reviews all claims for purposes of establishing ultimate loss estimates. | |
Revenue Recognition—The Company sells product through four principal channels: (1) directly to healthcare institutions, referred to as direct channel accounts, (2) through stocking distributors and healthcare dealers, (3) indirectly through insurance companies and (4) directly to dental practices and dental laboratories. Sales through the direct and distributor/dealer channels account for a majority of net sales. Through these channels, inventory is consigned to sales agents or customers so that products are available when needed for surgical procedures. Revenue is not recognized upon the placement of inventory into consignment as the Company retains title and maintains the inventory on the balance sheet; rather, it is recognized upon implantation and receipt of proper purchase order and/or purchase requisition documentation. Pricing for products is 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 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. The Company presents on a net basis and excludes from revenue the taxes collected from customers and remitted to governmental authorities. | |
At certain locations, the Company records a contractual allowance that is offset against revenue for each sale to a non-contracted payor so that revenue is recorded at the estimated determinable price at the time of the sale. Those non-contracted payors and insurance companies in some cases do not have contracted rates for products sold, but may have pricing available for certain products through their respective web sites. The Company will invoice at its list price and establish the contractual allowance to estimate what the non-contracted payor will settle the claim for based on the information available as noted above. At certain locations, revenue is recognized on sales to stocking distributors, healthcare dealers, dental practices and dental laboratories when title to product passes to them, generally upon shipment. Certain subsidiaries allow customers to return product in the event that the Company terminates the relationship. Under those circumstances, the Company records an estimated sales return in the period in which constructive notice of termination is given to a distributor. Product returns were not significant for any period presented. | |
The Company also maintains a separate allowance for doubtful accounts for estimated losses based on its assessment of the collectability of specific customer accounts and the aging of the accounts receivable. The Company analyzes accounts receivable and historical bad debts, customer concentrations, customer solvency, current economic and geographic trends, and changes in customer payment terms and practices when evaluating the adequacy of its current and future allowance. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for bad debt is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. The Company monitors and analyzes the accuracy of the allowance for doubtful accounts estimate by reviewing past collectability and adjusts it for future expectations to determine the adequacy of the Company’s current and future allowance. The Company’s reserve levels have generally been sufficient to cover credit losses. | |
Accounting for Shipping and Handling Revenue, Fees and Costs—The Company classifies amounts billed for shipping and handling as a component of net sales. The related shipping and handling fees and costs as well as other distribution costs are included in cost of sales. | |
Instruments—The Company provides instruments to surgeons to use during surgical procedures. Instruments are classified as non-current assets and are recorded as property, plant and equipment. Instruments are carried at cost, until they are placed into service and are held at book value (cost less accumulated depreciation). Depreciation is calculated using the straight-line method using a four year useful life. | |
Excess and Obsolete Inventory—In the Company’s industry, inventory is routinely placed at hospitals to provide the healthcare provider with the appropriate product when needed. Because product usage tends to follow a bell curve, larger and smaller sizes of inventory are provided, but infrequently used. In addition, the musculoskeletal market is highly competitive, with new products, raw materials and procedures being introduced continually, which may make those products currently on the market obsolete. The Company makes estimates regarding the future use of these products which are used to adjust inventory to the lower of cost or market. If actual product life cycles, product demand or market conditions are less favorable than those projected by management, additional inventory write-downs may be required which would affect future operating results. | |
Research and Development—Research and development costs are charged to expense as incurred. | |
Legal Fees—Legal fees are charged to expense and are not accrued based on specific cases. | |
Income Taxes—There are inherent risks that could create uncertainties related to the Company’s income tax estimates. The Company adjusts estimates based on normal operating circumstances and conclusions related to tax audits. While the Company does not believe any audit finding could materially affect its financial position, there could be a material impact on its consolidated results of operations and cash flows of a given period. | |
The Company’s operations are subject to the tax laws, regulations and administrative practices of the United States, U.S. state jurisdictions and other countries in which it does business. The Company must make estimates and judgments in determining the provision for taxes for financial reporting purposes. These estimates and judgments occur in the calculation of tax credits, benefits, and deductions, and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes, as well as the interest and penalties related to uncertain tax positions. Significant changes in these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. | |
The calculation of the Company’s tax liabilities involves accounting for uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions (“UTPs”) based on a two-step process. The Company recognizes the tax benefit from an UTP only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The amount of UTPs is measured as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes its estimates for UTPs are appropriate and sufficient for any assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties, where appropriate, related to UTPs as a component of income tax expense. | |
Certain items are included in the Company’s tax return at different times than they are reflected in its financial statements. Such timing differences create deferred tax assets and liabilities. Deferred tax assets are generally items that can be used as a tax deduction or credit in the tax return in future years but for which the Company has already recorded the tax benefit in the financial statements. The Company has recorded valuation allowances against certain of its deferred tax assets, primarily those that have been generated from net operating losses and tax credit carryforwards in certain taxing jurisdictions. In evaluating whether the Company would more likely than not recover these deferred tax assets, it has not assumed any future taxable income or tax planning strategies in the jurisdictions associated with these carryforwards where history does not support such an assumption. Implementation of tax planning strategies to recover these deferred tax assets or future income generation in these jurisdictions could lead to the reversal of these valuation allowances and a reduction of income tax expense. Deferred tax liabilities are either: (i) a tax expense recognized in the financial statements for which payment has been deferred; or (ii) an expense for which the Company has already taken a deduction on the tax return, but have not yet recognized the expense in the financial statements. | |
Goodwill and Other Intangible Assets—The Company operates in one reportable segment and evaluates goodwill for impairment at the reporting unit level. The reporting units are based on the Company’s current administrative organizational structure and the availability of discrete financial information. | |
The Company tests its goodwill and indefinite lived intangible asset balances as of March 31 of each fiscal year for impairment. The Company tests these balances more frequently if indicators are present or changes in circumstances suggest that impairment may exist. In performing the test on goodwill, the Company utilizes the two-step approach prescribed under guidance issued by the FASB for goodwill and other intangible assets. The first step under this guidance requires a comparison of the carrying value of the reporting units, of which the Company has identified six in total, to the fair value of these units. The Company generally uses the income approach to determine the fair value of each reporting unit. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. To derive the carrying value of the Company’s reporting units, the Company assigns assets and liabilities, including goodwill, to the reporting units. These would include corporate assets, which relate to a reporting unit’s operations, and would be considered in determining fair value. The Company allocates assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based primarily on the respective revenue contribution of each reporting unit. If the carrying value of a reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to measure the amount of impairment loss, if any. | |
The second step of the goodwill impairment test compares the implied fair value of a reporting unit’s goodwill to its carrying value. If the Company is unable to complete the second step of the test prior to the issuance of its financial statements and an impairment loss is probable and could be reasonably estimated, the Company recognizes its best estimate of the loss in its current period financial statements and discloses that amount as an estimate. The Company then recognizes any adjustment to that estimate in subsequent reporting periods, once the Company has finalized the second step of the impairment test. | |
The Company determines the fair value of intangible assets using an income based approach to determine the fair value. The approach calculates fair value by estimating the after-tax cash flows attributable to the asset and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. The calculated fair value is compared to the carrying value to determine if any impairment exists. | |
If events or circumstances change, a determination is made by management to ascertain whether property and equipment and finite-lived intangibles have been impaired based on the sum of expected future undiscounted cash flows from operating activities. If the estimated undiscounted net cash flows are less than the carrying amount of such assets, an impairment loss is recognized in an amount necessary to write-down the assets to fair value as determined from expected future discounted cash flows. | |
Management’s Estimates and Assumptions—In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America, management must often make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements and during the reporting period. Some of those judgments can be subjective and complex. Consequently, actual results could differ from those estimates. | |
Recent Accounting Pronouncements | |
Income Taxes—In July 2013, the FASB issued ASU 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance is effective for fiscal year and interim periods beginning after December 15, 2013. The Company is currently evaluating the impact this ASU will have on its financial position, results of operations and cash flows. | |
Property, Plant and Equipment—In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. This update also expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. This update is effective for annual and interim periods beginning after December 15, 2014. The Company does not expect this ASU to have an impact on its financial position, results of operations or cash flows. | |
Revenue—In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2016. Early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the impact this ASU will have on its financial position, results of operations and cash flows. |
Recent_Acquisitions_by_Biomet
Recent Acquisitions by Biomet | 12 Months Ended | |||||||
31-May-14 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Recent Acquisitions by Biomet | ' | |||||||
Recent Acquisitions by Biomet. | ||||||||
2013 Spine Acquisition | ||||||||
On October 5, 2013, the Company and its wholly-owned subsidiaries EBI Holdings, LLC, a Delaware limited liability company (“EBI”), and LNX Acquisition, Inc., a Delaware corporation (“Merger Sub Lanx”), entered into an Agreement and Plan of Merger with Lanx, Inc., a Delaware corporation (“Lanx”). On October 31, 2013, Merger Sub Lanx merged with and into Lanx and the separate corporate existence of Merger Sub Lanx ceased (the “Lanx Merger”). Upon the consummation of the Lanx Merger, Lanx became a wholly-owned subsidiary of EBI and the Company (“2013 Spine Acquisition”). As of November 1, 2013, the activities of Lanx were included in the Company’s consolidated results. The aggregate purchase price for the acquisition was approximately $150.8 million on a debt-free basis. The Company acquired Lanx to strengthen its spine product portfolio, as well as integrate and focus its distribution network to grow the spine business. | ||||||||
The acquisition has been accounted for as a business combination. The preliminary purchase price was allocated to the acquired assets and liabilities based on the estimated fair value of the acquired assets at the date of acquisition. As of May 31, 2014, the Company recorded a preliminary allocation of the purchase price to acquired tangible and identifiable intangible assets and liabilities assumed based on their fair value at the initial acquisition date. The Company is in the process of obtaining valuations of certain tangible and intangible assets and determining certain employee liabilities. The Company expects to complete the purchase price allocation in the first quarter of fiscal year 2015 after all valuations have been finalized. | ||||||||
The following table summarizes the preliminary purchase price allocation: | ||||||||
(in millions) | ||||||||
Cash | $ | 2 | ||||||
Accounts receivable | 16.5 | |||||||
Inventory | 24.8 | |||||||
Prepaid expenses and other | 11 | |||||||
Instruments | 9.9 | |||||||
Other property, plant and equipment | 2.1 | |||||||
Deferred tax liability | (39.5 | ) | ||||||
Other liabilities assumed | (20.7 | ) | ||||||
Intangible assets | 102.3 | |||||||
Goodwill | 42.4 | |||||||
Preliminary purchase price | $ | 150.8 | ||||||
The results of operations of the business have been included subsequent to the October 31, 2013 closing date in the accompanying consolidated financial statements. Acquisition-related costs for the year ended May 31, 2014 were $17.7 million and are recorded in cost of sales and selling, general and administrative expenses. The intangible assets are allocated to core technology, product trade names and customer relationships. The goodwill arising from the acquisition consists largely of the synergies and economies of scale from combining operations as well as the value of the workforce. All of the intangible assets and goodwill were assigned to the spine and bone healing reporting unit. The goodwill value is not expected to be tax deductible. | ||||||||
The amounts of net sales and net loss of Lanx included in the Company’s condensed consolidated statement of operations from the acquisition date of October 31, 2013 to the year ended May 31, 2014 is as follows: | ||||||||
(in millions) | Year Ended | |||||||
31-May-14 | ||||||||
Net sales | $ | 41 | ||||||
Net loss | $ | (19.1 | ) | |||||
The following pro forma financial information summarizes the combined results of the Company and Lanx, which assumes that they were combined as of the beginning of the Company’s fiscal year 2013. | ||||||||
The unaudited pro forma financial information for the combined entity is as follows: | ||||||||
Year Ended May 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Net sales | $ | 3,262.30 | $ | 3,139.60 | ||||
Net income (loss) | $ | 94.1 | $ | (655.4 | ) | |||
Pro forma adjustments have been made to the historical financial statements to account for those items directly attributable to the transaction and to include only adjustments which have a continuing impact. Pro forma adjustments include the incremental amortization and depreciation of assets of $1.9 million and $4.6 million for the years ended May 31, 2014 and 2013, respectively. The pro forma financial statements also reflect the elimination of $17.7 million for the year ended May 31, 2014 of transaction costs directly attributable to the acquisition. The May 31, 2013 pro forma results were adjusted to include the transaction costs. Adjustments reflect the elimination of the historical interest expense of Lanx as the transaction was a debt-free transaction. All pro forma adjustments were calculated with no tax impact due to the historical and acquired net operating losses. | ||||||||
2012 Trauma Acquisition | ||||||||
On May 24, 2012, DePuy Orthopaedics, Inc. accepted the Company’s binding offer to purchase certain assets representing substantially all of DePuy’s worldwide trauma business (the “2012 Trauma Acquisition”), which involves researching, developing, manufacturing, marketing, distributing and selling products to treat certain bone fractures or deformities in the human body, including certain intellectual property assets, and to assume certain liabilities, for approximately $280.0 million in cash. The Company acquired the DePuy worldwide trauma business to strengthen its trauma business and to continue to build a stronger presence in the global trauma market. On June 15, 2012, the Company announced the initial closing of the transaction. During the first and second quarters of fiscal year 2013, subsequent closings in various foreign countries occurred on a staggered basis, with the final closing occurring on December 7, 2012. | ||||||||
The acquisition has been accounted for as a business combination. The purchase price was allocated to the acquired assets and liabilities based on the estimated fair value of the acquired assets at the date of acquisition. | ||||||||
The following table summarizes the purchase price allocation: | ||||||||
(in millions) | ||||||||
Inventory | $ | 93.7 | ||||||
Prepaid expenses and other | 2.1 | |||||||
Instruments | 29.2 | |||||||
Other property, plant and equipment | 7.2 | |||||||
Liabilities assumed | (5.6 | ) | ||||||
Intangible assets | 141.5 | |||||||
Goodwill | 11.9 | |||||||
Purchase price | $ | 280 | ||||||
The results of operations of the business have been included subsequent to the respective country closing dates in the accompanying consolidated financial statements. Acquisition-related costs for the year ended May 31, 2013 were $12.2 million and are recorded in cost of sales and selling, general and administrative expenses. The goodwill value is not tax deductible. | ||||||||
The pro forma information required under Accounting Standards Codification 805 is impracticable to include due to different fiscal year ends and individual country closings. |
Inventories
Inventories | 12 Months Ended | |||||||
31-May-14 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories. | ||||||||
Inventories are stated at the lower of cost or market, with cost determined under the first-in, first-out method. The Company reviews inventory on hand and writes down excess and slow-moving inventory based on an assessment of future demand and historical experience. Inventories consisted of the following: | ||||||||
(in millions) | May 31, 2014 | May 31, 2013 | ||||||
Raw materials | $ | 83.1 | $ | 78.8 | ||||
Work-in-process | 54.4 | 44.7 | ||||||
Finished goods | 555.9 | 500.5 | ||||||
Inventories | $ | 693.4 | $ | 624 | ||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
31-May-14 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
Property, Plant and Equipment. | ||||||||
Property, plant and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Related maintenance and repairs are expensed as incurred. | ||||||||
The Company reviews 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 undiscounted future cash flows relating to the asset, or asset group, are less than its carrying value, with the amount of the loss equal to the excess of carrying value of the asset, or asset group, over the estimated fair value. | ||||||||
Useful lives by major product category consisted of the following: | ||||||||
Useful life | ||||||||
Land improvements | 20 years | |||||||
Buildings and leasehold improvements | 30 years | |||||||
Machinery and equipment | 5-10 years | |||||||
Instruments | 4 years | |||||||
Property, plant and equipment consisted of the following: | ||||||||
(in millions) | May 31, 2014 | May 31, 2013 | ||||||
Land and land improvements | $ | 40.8 | $ | 40.5 | ||||
Buildings and leasehold improvements | 126.8 | 106.3 | ||||||
Machinery and equipment | 414.5 | 375.4 | ||||||
Instruments | 791.9 | 710.5 | ||||||
Construction in progress | 47.9 | 48.8 | ||||||
Total property, plant and equipment | 1,421.90 | 1,281.50 | ||||||
Accumulated depreciation | -705.9 | -616.3 | ||||||
Total property, plant and equipment, net | $ | 716 | $ | 665.2 | ||||
The Company recorded depreciation expense of $202.9 million, $181.6 million and $182.2 for the years ended May 31, 2014, 2013 and 2012, respectively. |
Investments
Investments | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments. | ||||||||||||||||
At May 31, 2014, the Company’s investment securities were classified as follows: | ||||||||||||||||
Unrealized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Equity securities | $ | 0.2 | $ | 0.6 | $ | (0.3 | ) | $ | 0.5 | |||||||
Time deposit | 10.2 | — | — | 10.2 | ||||||||||||
Total available-for-sale investments | $ | 10.4 | $ | 0.6 | $ | (0.3 | ) | $ | 10.7 | |||||||
Realized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Trading: | ||||||||||||||||
Equity securities | $ | 1.6 | $ | 0.3 | $ | (0.1 | ) | $ | 1.8 | |||||||
Total trading investments | $ | 1.6 | $ | 0.3 | $ | (0.1 | ) | $ | 1.8 | |||||||
At May 31, 2013, the Company’s investment securities were classified as follows: | ||||||||||||||||
Unrealized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Equity securities | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.4 | ||||||||
Time deposit | 15.9 | 0.1 | — | 16 | ||||||||||||
Greek bonds | 1.1 | 4.5 | — | 5.6 | ||||||||||||
Total available-for-sale investments | $ | 17.2 | $ | 4.8 | $ | — | $ | 22 | ||||||||
Realized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Trading: | ||||||||||||||||
Equity securities | $ | 0.8 | $ | 0.2 | $ | — | $ | 1 | ||||||||
Total trading investments | $ | 0.8 | $ | 0.2 | $ | — | $ | 1 | ||||||||
The Company recorded proceeds on the sales/maturities of investments of $42.8 million, $5.5 million and $42.1 million for the years ended May 31, 2014, 2013 and 2012, respectively. The Company recorded purchases of investments of $29.4 million, $6.4 million and $0.4 million for the years ended May 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
The Company reviews impairments to investment securities quarterly to determine if the impairment is “temporary” or “other-than-temporary.” The Company reviews several factors to determine whether losses are other- than-temporary, including but not limited to (1) the length of time each security was in an unrealized loss position, (2) the extent to which fair value was less than cost, (3) the financial condition and near-term prospects of the issuer, and (4) the Company’s intent and ability to hold each security for a period of time sufficient to allow for any anticipated recovery in fair value. | ||||||||||||||||
Investment income on available-for-sale securities included in other (income) expense consists of the following: | ||||||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||||||
Interest income | $ | 1.2 | $ | 0.1 | $ | 0.4 | ||||||||||
Dividend income | — | 0.2 | 0.2 | |||||||||||||
Net realized gains | 6.6 | 0.2 | 2 | |||||||||||||
Total investment income | $ | 7.8 | $ | 0.5 | $ | 2.6 | ||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets. | ||||||||||||||||||||||||
The Company operates in one reportable segment and evaluates goodwill for impairment at the reporting unit level. The reporting units are based on the Company’s current administrative organizational structure and the availability of discrete financial information. | ||||||||||||||||||||||||
Fiscal Year 2013 Impairment Charges | ||||||||||||||||||||||||
During the fourth quarter of fiscal year 2013, the Company recorded a $240.0 million goodwill asset impairment charge related to its Europe reporting unit, primarily related to the impact of continued austerity measures on procedural volumes and pricing in certain European countries when compared to the Company’s prior projections used to establish the fair value of goodwill. | ||||||||||||||||||||||||
During the fourth quarter of fiscal year 2013, the Company finalized a $327.4 million goodwill and definite and indefinite-lived intangible assets impairment charge related to its dental reconstructive reporting unit, primarily due to declining industry market growth rates in certain European and Asia Pacific markets and corresponding unfavorable margin trends, when compared to the Company’s prior projections used to establish the fair value of goodwill and intangible assets. The impairment charge was a result of the finalization of the Company’s preliminary impairment work as of November 30, 2012. | ||||||||||||||||||||||||
Fiscal Year 2012 Impairment Charges | ||||||||||||||||||||||||
During the fourth quarter of fiscal year 2012, the Company recorded a $529.8 million goodwill and definite and indefinite-lived intangible asset impairment charge primarily associated with its spine & bone healing and dental reconstructive reporting units. As of February 29, 2012, the Company concluded that certain indicators were present that suggested impairment may exist for its dental reconstructive reporting unit’s goodwill and intangible assets. The indicators of impairment in the Company’s dental reconstructive reporting unit included evidence of declining industry market growth rates in certain European and Asia Pacific markets and unfavorable margin trends resulting from change in product mix. The impact of these recent items resulted in management initiating an interim preliminary impairment test as of February 29, 2012. However, the preliminary result of this interim test of impairment for the dental reconstructive reporting unit’s goodwill and intangibles was inconclusive during the third quarter of fiscal year 2012. The Company finalized the impairment test during the fourth quarter of fiscal year 2012. During the annual impairment test, described below, the Company’s spine and bone healing reporting unit failed step one. The indicators were primarily due to growth rate declines as compared to prior assumptions. | ||||||||||||||||||||||||
The Company used the income approach, specifically the discounted cash flow method, to determine the fair value of the dental reconstructive, spine & bone healing and Europe reporting units, or Impaired Reporting Units, and the associated amount of the impairment charges. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. This methodology is consistent with how the Company estimates the fair value of its reporting units during its annual goodwill and indefinite lived intangible asset impairment tests. In applying the income approach to calculate the fair value of the Impaired Reporting Units, the Company used assumptions about future revenue contributions and cost structures. In addition, the application of the income approach for both goodwill and intangibles requires judgment in determining a risk-adjusted discount rate at the reporting unit level. The Company based this determination on estimates of the weighted-average costs of capital of market participants. The Company performed a peer company analysis and considered the industry the weighted-average return on debt and equity from a market participant perspective. | ||||||||||||||||||||||||
To calculate the amount of the impairment charge related to the Impaired Reporting Units, the Company allocated the reporting unit’s fair value to all of its assets and liabilities, including certain unrecognized intangible assets, in order to determine the implied fair value of goodwill. This allocation process required judgment and the use of additional valuation assumptions in deriving the individual fair values of the Company’s Impaired Reporting Unit’s assets and liabilities as if the reporting units had been acquired in a business combination. | ||||||||||||||||||||||||
The Company determines the fair value of intangible assets using an income based approach to determine the fair value. The approach calculates fair value by estimating the after-tax cash flows attributable to the asset and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. The calculated fair value is compared to the carrying value to determine if any impairment exists. | ||||||||||||||||||||||||
The Company performed its annual assessment for impairment as of March 31, 2014 for all six reporting units. The Company utilized a discount rate of 10.4%. Based on the discount rate used in its most recent test for impairment, if the discount rate increased by 1% the fair value of the consolidated company could be lower by approximately $1.2 billion and a decrease in the discount rate of 1% results in an increase in fair value of $1.5 billion. The step one test also includes assumptions derived from competitor market capitalization and beta values as well as the twenty year Treasury bill rate as of March 31, 2014. All reporting units passed step one in fiscal year 2014. | ||||||||||||||||||||||||
The estimates and assumptions underlying the fair value calculations used in the Company’s annual impairment tests are uncertain by their nature and can vary significantly from actual results. Factors that management must estimate include, but are not limited to, industry and market conditions, sales volume and pricing, raw material costs, capital expenditures, working capital changes, cost of capital, royalty rates and tax rates. These factors are especially difficult to predict when global financial markets are volatile. The estimates and assumptions used in its impairment tests are consistent with those the Company use in its internal planning. These estimates and assumptions may change from period to period. If the Company uses different estimates and assumptions in the future, future impairment charges may occur and could be material. | ||||||||||||||||||||||||
The Company uses an accelerated method for amortizing customer relationship intangibles, as the value for those relationships is greater at the beginning of their life. The accelerated method was calculated using historical customer attrition rates. The remaining finite-lived intangibles are amortized on a straight line basis. The decrease in the net intangible asset balance is primarily due to amortization, partially offset by the intangibles recorded related to the 2013 Spine Acquisition, which is described in Note 2 – Acquisition. | ||||||||||||||||||||||||
The following tables summarize the changes in the carrying amount of goodwill: | ||||||||||||||||||||||||
(in millions) | 31-May-14 | 31-May-13 | 31-May-12 | |||||||||||||||||||||
Beginning of period | $ | 3,600.90 | $ | 4,114.40 | $ | 4,470.10 | ||||||||||||||||||
Goodwill acquired | 42.4 | 11.9 | — | |||||||||||||||||||||
Currency translation | -8.9 | (52.4 | ) | -63.8 | ||||||||||||||||||||
Impairment charge | — | (473.0 | ) | (291.9 | ) | |||||||||||||||||||
End of period | $ | 3,634.40 | $ | 3,600.90 | $ | 4,114.40 | ||||||||||||||||||
(in millions) | 31-May-14 | 31-May-13 | 31-May-12 | |||||||||||||||||||||
Gross carrying amount | $ | 5,317.70 | $ | 5,284.20 | $ | 5,324.70 | ||||||||||||||||||
Accumulated impairment losses | -1,683.30 | -1,683.30 | -1210.3 | |||||||||||||||||||||
Net carrying amount | $ | 3,634.40 | $ | 3,600.90 | $ | 4,114.40 | ||||||||||||||||||
Intangible assets consist of the following at May 31, 2014 and 2013: | ||||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
(in millions) | Gross | Accumulated Amortization | Net | |||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Core technology | $ | 1,743.30 | $ | (569.8 | ) | $ | 1,173.50 | |||||||||||||||||
Completed technology | 672 | (262.1 | ) | 409.9 | ||||||||||||||||||||
Product trade names | 208.1 | (77.6 | ) | 130.5 | ||||||||||||||||||||
Customer relationships | 2,371.60 | (955.9 | ) | 1,415.70 | ||||||||||||||||||||
Non-compete contracts | 4.9 | (4.6 | ) | 0.3 | ||||||||||||||||||||
Sub-total | 4,999.90 | (1,870.0 | ) | 3,129.90 | ||||||||||||||||||||
Corporate trade names | 309.7 | — | 309.7 | |||||||||||||||||||||
Total | $ | 5,309.60 | $ | (1,870.0 | ) | $ | 3,439.60 | |||||||||||||||||
31-May-13 | ||||||||||||||||||||||||
(in millions) | Gross | Impairment Charge | New | Accumulated Amortization | Impairment Charge | Net | ||||||||||||||||||
Carrying | Carrying | Carrying | ||||||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||
Core technology | $ | 1,772.60 | $ | (39.0 | ) | $ | 1,733.60 | $ | (481.1 | ) | $ | 4.1 | $ | 1,256.60 | ||||||||||
Completed technology | 628.8 | (48.5 | ) | 580.3 | (254.9 | ) | 36.7 | 362.1 | ||||||||||||||||
Product trade names | 204.2 | — | 204.2 | (65.9 | ) | — | 138.3 | |||||||||||||||||
Customer relationships | 2,429.50 | -46.1 | 2,383.40 | (828.4 | ) | 9.9 | 1,564.90 | |||||||||||||||||
Non-compete contracts | 4.6 | — | 4.6 | (3.8 | ) | — | 0.8 | |||||||||||||||||
Sub-total | 5,039.70 | -133.6 | 4,906.10 | (1,634.1 | ) | 50.7 | 3,322.70 | |||||||||||||||||
Corporate trade names | 319 | -11.5 | 307.5 | — | — | 307.5 | ||||||||||||||||||
Total | $ | 5,358.70 | $ | (145.1 | ) | $ | 5,213.60 | $ | (1,634.1 | ) | $ | 50.7 | $ | 3,630.20 | ||||||||||
The weighted average useful life of the intangibles at May 31, 2014 is as follows: | ||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||
Useful Life | ||||||||||||||||||||||||
Core technology | 15 Years | |||||||||||||||||||||||
Completed technology | 9 Years | |||||||||||||||||||||||
Product trade names | 13 Years | |||||||||||||||||||||||
Customer relationships | 14 Years | |||||||||||||||||||||||
Non-compete contracts | 1 Year | |||||||||||||||||||||||
Corporate trade names | Indefinite life | |||||||||||||||||||||||
Expected amortization expense, for the intangible assets stated above, for the years ending May 31, 2015 through 2019 is $278.6 million, $273.7 million, $270.0 million, $252.6 million, and $246.6 million, respectively. |
Debt
Debt | 12 Months Ended | |||||||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Debt | ' | |||||||||||||||||||||||||||
Debt. | ||||||||||||||||||||||||||||
The senior secured credit facilities and all of the notes are guaranteed by Biomet, Inc., and subject to certain exceptions, each of its existing and future wholly-owned domestic subsidiaries. The asset-based revolving credit facility is guaranteed by the Company and secured, subject to certain exceptions, by a first-priority security interest in substantially all of the Company’s assets and the assets of subsidiary borrowers that consist of all accounts receivable, inventory, cash, deposit accounts, and certain intangible assets. The facilities and notes bear interest at the rates set forth below. Interest is payable in cash. The terms and carrying value of each debt instrument at May 31, 2014 and 2013 are set forth below: | ||||||||||||||||||||||||||||
(U.S. dollars and euros in millions) | Maturity Date | Interest Rate | Currency | 31-May-14 | May 31, 2013 | |||||||||||||||||||||||
Debt Instruments | ||||||||||||||||||||||||||||
European facility | No Maturity Date | Interest Free | EUR | € | — | € | 1.8 | |||||||||||||||||||||
$ | — | $ | 2.3 | |||||||||||||||||||||||||
China facility | January 16, 2016 | LIBOR + 2.10% | USD | $ | — | $ | 6 | |||||||||||||||||||||
Term loan facility B | March 25, 2015 | LIBOR + 3.00% | USD | $ | 103.3 | $ | 104.3 | |||||||||||||||||||||
Term loan facility B-1 | July 25, 2017 | LIBOR + 3.50% | USD | $ | 2,959.60 | $ | 2,116.80 | |||||||||||||||||||||
Term loan facility B | March 25, 2015 | LIBOR + 3.00% | EUR | € | — | € | 167.8 | |||||||||||||||||||||
$ | — | $ | 217.9 | |||||||||||||||||||||||||
Term loan facility B-1 | July 25, 2017 | LIBOR + 4.00% | EUR | € | — | € | 659.4 | |||||||||||||||||||||
$ | — | $ | 856.4 | |||||||||||||||||||||||||
Cash flow revolving credit facility | April 25, 2017 | LIBOR + 3.50% | USD | $ | — | $ | — | |||||||||||||||||||||
Cash flow revolving credit facility | April 25, 2017 | LIBOR + 3.50% | USD/EUR | $ | — | $ | — | |||||||||||||||||||||
Asset-based revolving credit facility | July 25, 2017 | LIBOR + 2.00% | USD | $ | — | $ | — | |||||||||||||||||||||
Senior notes | August 1, 2020 | 6.50% | USD | $ | 1,825.00 | $ | 1,825.00 | |||||||||||||||||||||
Senior subordinated notes | October 1, 2020 | 6.50% | USD | $ | 800 | $ | 800 | |||||||||||||||||||||
Premium on notes | $ | 32.5 | $ | 37.7 | ||||||||||||||||||||||||
Total debt | $ | 5,720.40 | $ | 5,966.40 | ||||||||||||||||||||||||
The Company has the option to choose the frequency with which it resets and pays interest on its term loans. The Company currently pays interest on the majority of its term loans and interest rate swaps each month. The remaining term loan and swap interest is paid quarterly. Interest on the 6.500% senior notes due 2020 is paid semiannually in February and August. Interest on the 6.500% senior subordinated notes due 2020 is paid semiannually in April and October. | ||||||||||||||||||||||||||||
The Company currently elects to use 1-month LIBOR for setting the interest rates on 90% of its U.S. dollar-denominated term loans. The 1-month LIBOR rate for the majority of the U.S. dollar-denominated term loan and asset-based revolver as of May 31, 2014 was 0.15%. The 3-month LIBOR rate is used on the remainder of the U.S. dollar-denominated term loan and was 0.23% as of May 31, 2014. The Company’s term loan facilities require payments each year in an amount equal to (x) 0.25% of the product of (i) the aggregate principal amount of all dollar-denominated term loans outstanding under the original credit agreement on the closing date multiplied by (ii) a fraction, the numerator of which is the aggregate principal amount of dollar-denominated term B loans outstanding on August 2, 2012 (after giving effect to certain conversions to occur on or after August 2, 2012 pursuant to the amended and restated credit agreement) and the denominator of which is the aggregate principal amount of all outstanding term loans on August 2, 2012 and (y) 0.25% of the aggregate principal amount of all outstanding dollar-denominated term B-1 loans, in each case in equal calendar quarterly installments until maturity of the loan and after giving effect to the application of any prepayments. The total amount of required payments under the Company’s term loan facilities was $31.4 million for the year ended May 31, 2014. The cash flow and asset-based revolving credit facilities and the notes do not have terms for mandatory principal paydowns. | ||||||||||||||||||||||||||||
The Company’s revolving borrowing base available under all debt facilities at May 31, 2014 was $689.7 million, which is net of the borrowing base limitations relating to the asset-based revolving credit facility. | ||||||||||||||||||||||||||||
As of May 31, 2014, $72.6 million of financing fees related to the Company’s credit agreement and refinancing referenced below remain in long-term assets and continue to be amortized through interest expense over the remaining life of the credit agreement and new debt instruments. | ||||||||||||||||||||||||||||
Each of Biomet, Inc.’s existing wholly owned domestic subsidiaries fully, unconditionally, jointly, and severally guarantee the 6.500% senior notes due 2020 on a senior unsecured basis and the 6.500% senior subordinated notes due 2020 on a senior subordinated unsecured basis, in each case to the extent such subsidiaries guarantee Biomet, Inc.’s senior secured credit facilities. LVB Acquisition, Inc. is neither an issuer nor guarantor of the notes described within this footnote. | ||||||||||||||||||||||||||||
Notes Offerings and Concurrent Tender Offers | ||||||||||||||||||||||||||||
On August 8, 2012, Biomet completed its offering of $1,000.0 million aggregate principal amount of new 6.500% senior notes due 2020. Biomet used the net proceeds of that offering to fund a tender offer for any and all of its outstanding 103/8% / 111/8% senior PIK toggle notes due 2017 (“Senior Toggle Notes”) including related fees and expenses, to redeem the remaining Senior Toggle Notes not tendered in the tender offer and to redeem $140.0 million aggregate principal amount of the 115/8% senior subordinated notes due 2017 (“115/8% Senior Subordinated Notes”). Approximately 70% of the Senior Toggle Notes were tendered in August 2012. The remaining Senior Toggle Notes and $140.0 million aggregate principal amount of the 115/8% Senior Subordinated Notes were redeemed in September 2012. | ||||||||||||||||||||||||||||
On October 2, 2012, Biomet, Inc. completed its offering of $825.0 million aggregate principal amount of 6.500% senior notes due 2020 as part of a further issuance of 6.500% senior notes due 2020. The Company used the net proceeds of this offering to fund a tender offer for any and all of its 10% senior notes due 2017 (“10% Senior Notes”), including related fees and expenses and to redeem 10% Senior Notes not accepted for purchase in such tender offer. Concurrently with this offering, Biomet also completed an offering of $800.0 million aggregate principal amount of 6.500% senior subordinated notes due 2020. Biomet used the net proceeds of the subordinated notes offering together with cash on hand, to fund a tender offer for up to $800.0 million aggregate principal amount of its 115/8% Senior Subordinated Notes, including related fees and expenses and to redeem 115/8% Senior Subordinated Notes not accepted for purchase in such tender offer, $343.4 million in aggregate principal amount of 10% Senior Notes, or approximately 45.12% of the 10% Senior Notes outstanding, were validly tendered and not withdrawn, and $384.2 million aggregate principal amount of 115/8% Senior Subordinated Notes, or approximately 43.91% of the 115/8% Senior Subordinated Notes outstanding, were validly tendered and not withdrawn, in each case as of the early tender deadline of October 1, 2012. On November 1, 2012, Biomet redeemed and retired all outstanding 10% Senior Notes and 115/8% Senior Subordinated Notes not accepted for purchase in the tender offer using cash on hand and asset-based revolver proceeds. | ||||||||||||||||||||||||||||
The Company recorded a loss on the retirement of bonds of $155.2 million during the year ended May 31, 2013 in other (income) expense, related to the tender/retirement of the Senior Toggle Notes, 10% Senior Notes and 115/8% Senior Subordinated Notes. The Company wrote off deferred financing fees related to the tender/retirement of the Senior Toggle Notes, 10% Senior Notes and 115/8% Senior Subordinated Notes described above and the replacement of the existing cash flow revolvers, asset-based revolver and term loans described below of $17.1 million during the year ended May 31, 2013, in other (income) expense. | ||||||||||||||||||||||||||||
Amendment and Restatement Agreement-Senior Secured Credit Facilities | ||||||||||||||||||||||||||||
On August 2, 2012, Biomet entered into an amendment and restatement agreement that amended its existing senior secured credit facilities. The amendment (i) extended the maturing of approximately $1,007.2 million of its U.S. dollar-denominated term loans and approximately €631.3 million of its euro-denominated term loans under the credit facility to July 25, 2017 and (ii) refinanced and replaced the then-existing alternative currency revolving credit commitments under the credit facility with a new class of alternative currency revolving credit commitments in an aggregate amount of $165.0 million and refinanced and replaced the then-existing U.S. dollar revolving credit commitments under the credit facility with a new class of U.S. dollar-denominated revolving credit commitments in an aggregate amount of $165.0 million. The new revolving credit commitments will mature on April 25, 2017, except that if as of December 23, 2014, there is an outstanding aggregate principal amount of non-extended U.S. dollar and euro term loans in excess of $200.0 million, then such revolving credit commitments will mature on December 24, 2014. The remaining term loans of the lenders under the senior secured credit facilities who did not elect to extend such loans will continue to mature on March 25, 2015. | ||||||||||||||||||||||||||||
Joinder Agreement | ||||||||||||||||||||||||||||
On October 4, 2012, LVB, Biomet and certain subsidiaries of Biomet entered into a joinder agreement (the “Joinder”) with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, each lender from time to time party thereto and each of the other parties identified as an “Extending Term Lender.” The Joinder was entered into pursuant to its credit agreement, dated as of September 25, 2007, as amended and restated by the amendment and restatement agreement dated as of August 2, 2012 (the “Amendment”), by and among Biomet, LVB, certain subsidiaries of Biomet, Bank of America, N.A. and each lender from time to time party thereto. | ||||||||||||||||||||||||||||
By entering into the Joinder, the joining lenders agreed to extend the maturity of (i) approximately $392.7 million of Biomet’s U.S. dollar-denominated term loans and (ii) approximately €32.9 million of Biomet’s euro-denominated term loans, to July 25, 2017. The term loans extended pursuant to the Joinder are on terms identical to the terms loans that were extended pursuant to the Amendment. The remaining term loans of the lenders who have not elected to extend their loans will mature on March 25, 2015. | ||||||||||||||||||||||||||||
Refinancing of Asset-Based Revolving Credit Facility | ||||||||||||||||||||||||||||
On November 14, 2012, Biomet replaced and refinanced its asset-based revolving credit facility with a new asset-based revolving credit facility that has a U.S. tranche of up to $400.0 million and a European borrower tranche denominated in euros of up to the euro-equivalent of $100.0 million. The European borrower tranche is secured by certain foreign assets of European subsidiary borrowers and the U.S. borrowers under the U.S. tranche guarantee the obligations of any such European subsidiary borrowers (and such guarantees are secured by the current assets collateral that secures the direct obligations of such U.S. borrowers under such U.S. tranche). On May 31, 2014, the European borrower tranche was closed at the discretion of the Company. | ||||||||||||||||||||||||||||
Refinancing of U.S. dollar-denominated Term Loan | ||||||||||||||||||||||||||||
On December 27, 2012, Biomet completed a $730.0 million add-on to the extended U.S. dollar-denominated term loan. The proceeds from the add-on were used to refinance the non-extended U.S. dollar-denominated term B loan, which was net of fees associated with the add-on closing. The terms of the add-on are consistent with the terms in the Amendment and Restatement Agreement-Senior Secured Credit Facilities explanation above. | ||||||||||||||||||||||||||||
Retirement of euro-denominated Term Loan and Repricing of U.S. dollar-denominated Term B-1 Loan | ||||||||||||||||||||||||||||
On September 10, 2013, Biomet retired €167.3 million ($221.4 million) principal amount of its euro-denominated term loan using cash on hand. On September 25, 2013, Biomet completed an $870.5 million U.S. dollar-denominated term loan offering, the proceeds of which were used to retire the remaining euro-denominated term loan principal balance of €657.7 million ($870.2 million). Concurrently with the new $870.5 million U.S. dollar-denominated term loan offering, Biomet also completed a repricing of its existing $2,111.4 million extended U.S. dollar-denominated term loan to LIBOR + 3.50%. The terms of the new term loan are consistent with the existing extended U.S. dollar-denominated term loan. | ||||||||||||||||||||||||||||
As of May 31, 2014 and 2013, short-term borrowings consisted of the following: | ||||||||||||||||||||||||||||
(in millions) | May 31, 2014 | May 31, 2013 | ||||||||||||||||||||||||||
Senior secured credit facilities | $ | 133.1 | $ | 33.3 | ||||||||||||||||||||||||
Non-U.S. facilities | — | 7 | ||||||||||||||||||||||||||
Total | $ | 133.1 | $ | 40.3 | ||||||||||||||||||||||||
Summarized in the table below are the Company’s long-term obligations as of May 31, 2014: | ||||||||||||||||||||||||||||
(in millions) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||
Long-term debt (including current maturities) | $ | 5,720.40 | $ | 133.1 | $ | 29.8 | $ | 29.8 | $ | 2,870.20 | $ | — | $ | 2,657.50 | ||||||||||||||
The Company currently is restricted in its ability to pay dividends under various covenants of its debt agreements, including its credit facilities and the indentures governing its notes. The Company does not expect for the foreseeable future to pay dividends on its common stock, and did not during fiscal 2014 or fiscal 2013. Any future determination to pay dividends will depend upon, among other factors, its results of operations, financial condition, cash flows, capital requirements, any contractual restrictions and any other considerations the Company’s Board of Directors deems relevant. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Fair value measurements are principally applied to (1) financial assets and liabilities such as marketable equity securities and debt securities, (2) investments in equity and other securities and (3) derivative instruments consisting of interest rate swaps. These items are marked-to-market at each reporting period to fair value. The information in the following paragraphs and tables primarily addresses matters relative to these financial assets and liabilities. | ||||||||||||||||
• | Level 1—Inputs are quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets include money market investments and marketable equity securities. | |||||||||||||||
• | Level 2—Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. The Company’s Level 2 assets and liabilities primarily include time deposits, interest rate swaps, pension plan assets (equity securities, debt securities and other) and foreign currency exchange contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. | |||||||||||||||
• | Level 3—Inputs are unobservable for the asset or liability. The Company’s Level 3 assets include other equity investments. See the section below titled Level 3 Valuation Techniques for further discussion of how the Company determines fair value for investments classified as Level 3. | |||||||||||||||
The following table provides information by level for assets and liabilities that are measured at fair value on a recurring basis at May 31, 2014 and 2013: | ||||||||||||||||
Fair Value at | Fair Value Measurement | |||||||||||||||
Using Inputs Considered as | ||||||||||||||||
(in millions) | 31-May-14 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 145 | $ | 145 | $ | — | $ | — | ||||||||
Time deposits | 25.8 | — | 25.8 | — | ||||||||||||
Pension plan assets | 147.5 | — | 132.5 | 15 | ||||||||||||
Foreign currency exchange contracts | 1.1 | — | 1.1 | — | ||||||||||||
Equity securities | 0.5 | 0.3 | — | 0.2 | ||||||||||||
Total assets | $ | 319.9 | $ | 145.3 | $ | 159.4 | $ | 15.2 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 20.2 | $ | — | $ | 20.2 | $ | — | ||||||||
Foreign currency exchange contracts | 1.3 | — | 1.3 | — | ||||||||||||
Total liabilities | $ | 21.5 | $ | — | $ | 21.5 | $ | — | ||||||||
Fair Value at | Fair Value Measurement | |||||||||||||||
Using Inputs Considered as | ||||||||||||||||
(in millions) | 31-May-13 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 93.1 | $ | 93.1 | $ | — | $ | — | ||||||||
Time deposits | 31.5 | — | 31.5 | — | ||||||||||||
Greek bonds | 5.6 | — | 5.6 | — | ||||||||||||
Pension plan assets | 137.6 | — | 137.6 | — | ||||||||||||
Foreign currency exchange contracts | 0.5 | — | 0.5 | — | ||||||||||||
Equity securities | 1.4 | 1.3 | — | 0.1 | ||||||||||||
Total assets | $ | 269.7 | $ | 94.4 | $ | 175.2 | $ | 0.1 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 54.1 | $ | — | $ | 54.1 | $ | — | ||||||||
Foreign currency exchange contracts | 0.6 | — | 0.6 | — | ||||||||||||
Total liabilities | $ | 54.7 | $ | — | $ | 54.7 | $ | — | ||||||||
Level 3 Valuation Techniques | ||||||||||||||||
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial assets also include certain investment securities for which there is limited market activity where the determination of fair value requires significant judgment or estimation. Level 3 investment securities primarily include other equity investments for which there was a decrease in the observation of market pricing. As of May 31, 2014 and 2013, these securities were valued primarily using internal cash flow valuation that incorporates transaction details such as contractual terms, maturity, timing and amount of future cash flows, as well as assumptions about liquidity and credit valuation adjustments of marketplace participants. | ||||||||||||||||
The estimated fair value of the Company’s long-term debt, including the current portion, at May 31, 2014 and 2013 was $5,912.9 million and $6,090.4 million, respectively, compared to carrying values of $5,720.4 million. and $5,966.4 million, respectively. The fair value of the Company’s traded debt is considered Level 3 and was estimated using quoted market prices for the same or similar instruments, among other inputs. The fair value of the Company’s variable rate term debt was estimated using Bloomberg composite quotes. In determining the fair values and carrying values, the Company considers the terms of the related debt and excludes the impacts of debt discounts and interest rate swaps. | ||||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||
During the years ended May 31, 2013 and 2012, the Company measured nonfinancial long-lived assets and liabilities at fair value in conjunction with the impairments of the spine & bone healing, dental and Europe reporting units. The Company used the income approach to measure the fair value of the reporting unit and related intangible assets. See Note 6 for a full description of key assumptions. The inputs used in the impairment fair value analysis fall within Level 3 due to the significant unobservable inputs used to determine fair value. During the year ended May 31, 2014, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||
31-May-14 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||||
Derivative Instruments and Hedging Activities. | |||||||||||||||||||
The Company is exposed to certain market risks relating to its ongoing business operations, including foreign currency risk, interest rate risk and commodity price risk. The Company currently manages foreign currency risk and interest rate risk through the use of derivatives. | |||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||
Foreign Currency Instruments—Certain assets, liabilities and forecasted transactions are exposed to foreign currency risk, primarily the fluctuation of the U.S. dollar against the euro. The Company has hedged a portion of its net investment in its European subsidiaries with the issuance of a €875.0 million (approximately $1,207.4 million at September 25, 2007) principal amount euro term loan on September 25, 2007. Effective September 25, 2013, with the retirement of the euro-denominated term loan discussed in Note 7, the Company no longer has a net investment hedge related to its European subsidiaries. Hedge effectiveness is tested quarterly to determine whether hedge treatment is still appropriate. The Company tests effectiveness on this net investment hedge by determining if the net investment in its European subsidiaries is greater than the outstanding euro-denominated debt balance. Any amount of a derivative instrument designated as a hedge determined to be ineffective is recorded as other (income) expense. | |||||||||||||||||||
Interest Rate Instruments—The Company uses interest rate swap agreements (cash flow hedges) in both U.S. dollars and euros as a means of fixing the interest rate on portions of its floating-rate debt instruments. As of May 31, 2014, the Company had swap liabilities of $20.2 million, which consisted of $8.8 million short-term, and $11.6 million long-term, partially offset by a $0.2 million credit valuation adjustment. As of May 31, 2013, the Company had swap liabilities of $54.1 million, which consisted of $19.9 million short-term, and $34.8 million long-term, partially offset by a $0.6 million credit valuation adjustment. | |||||||||||||||||||
The table below summarizes existing swap agreements at May 31, 2014 and 2013: | |||||||||||||||||||
(U.S. dollars and euros in millions) | Fair Value at | Fair Value at | |||||||||||||||||
Notional | 31-May-14 | May 31, 2013 | |||||||||||||||||
Structure | Currency | Amount | Effective Date | Termination Date | Asset (Liability) | Asset (Liability) | |||||||||||||
5 years | EUR(1) | € | 200 | September 25, 2012 | September 25, 2017 | $ | — | $ | (11.3 | ) | |||||||||
5 years | EUR(1) | 200 | September 25, 2012 | September 25, 2017 | — | (11.1 | ) | ||||||||||||
5 years | USD | $ | 325 | December 26, 2008 | December 25, 2013 | — | (3.8 | ) | |||||||||||
5 years | USD | 195 | September 25, 2009 | September 25, 2014 | (1.7 | ) | (6.7 | ) | |||||||||||
2 years | USD | 190 | March 25, 2013 | March 25, 2015 | (1.0 | ) | (1.7 | ) | |||||||||||
3 years | USD | 270 | December 27, 2013 | September 25, 2016 | (5.8 | ) | (5.2 | ) | |||||||||||
5 years | USD | 350 | September 25, 2012 | September 25, 2017 | (6.0 | ) | (7.5 | ) | |||||||||||
5 years | USD | 350 | September 25, 2012 | September 25, 2017 | (5.9 | ) | (7.4 | ) | |||||||||||
Credit valuation adjustment | 0.2 | 0.6 | |||||||||||||||||
Total interest rate instruments | $ | (20.2 | ) | $ | (54.1 | ) | |||||||||||||
(1) The euro interest rate swaps were terminated during the second quarter of fiscal year 2014. | |||||||||||||||||||
The interest rate swaps are recorded in other accrued expenses and other long-term liabilities. As a result of cash flow hedge treatment being applied, all unrealized gains and losses related to the derivative instruments are recorded in accumulated other comprehensive income (loss). Hedge effectiveness is tested quarterly to determine if hedge treatment is still appropriate. The tables below summarize the effective portion and ineffective portion of the Company’s interest rate swaps before tax for the years ended May 31, 2014, 2013 and 2012: | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives in cash flow hedging relationship | 31-May-14 | 31-May-13 | 31-May-12 | ||||||||||||||||
Interest rate swaps: | |||||||||||||||||||
Amount of gain (loss) recognized in OCI | $ | 34 | $ | 22 | $ | 20.5 | |||||||||||||
Amount of (gain) loss reclassified from accumulated OCI into interest expense (effective portion) | 25.3 | 49.5 | 69 | ||||||||||||||||
Amount of (gain) loss recognized in other income (expense) (ineffective portion and amount excluded from effectiveness testing) | 21.8 | — | — | ||||||||||||||||
As of May 31, 2014, the effective interest rate, including the applicable lending margin, on 44.24% ($1,355.0 million) of the outstanding principal of the Company’s U.S. dollar term loan was fixed at 5.07% through the use of interest rate swaps. The remaining unhedged balances of the U.S. dollar term loans had effective interest rates of 3.62%. As of May 31, 2014 and 2013, the Company’s effective weighted average interest rate on all outstanding debt, including the interest rate swaps, was 5.37% and 6.29%, respectively. | |||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||
Foreign Currency Instruments—The Company faces transactional currency exposures that arise when it or its foreign subsidiaries enter into transactions, primarily on an intercompany basis, denominated in currencies other than their functional currency. The Company may enter into short-term forward currency exchange contracts in order to mitigate the currency exposure related to these intercompany payables and receivables arising from intercompany trade. The Company does not designate these contracts as hedges; therefore, all forward currency exchange contracts are recorded at their fair value each period, with the resulting gains and losses recorded in other (income) expense. Any foreign currency remeasurement gains or losses recognized in a period are generally offset with gains or losses on the forward currency exchange contracts. As of May 31, 2014, the fair value of the Company’s derivatives not designated as hedging instruments on a gross basis were assets of $1.1 million recorded in prepaid expenses and other, and liabilities of $1.3 million recorded in other accrued expenses. |
Retirement_and_Pension_Plans
Retirement and Pension Plans | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Retirement and Pension Plans | ' | |||||||||||
Retirement and Pension Plans. | ||||||||||||
The Company has a defined contribution profit sharing plan which covers substantially all of the employees, or team members, within the continental U.S. and allows participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code. The Company currently matches 100% of the team member’s contribution, up to a maximum amount equal to 6% of the team member’s compensation. The amounts expensed under this profit sharing plan for the years ended May 31, 2014, 2013 and 2012 were $13.6 million, $12.7 million and $11.6 million, respectively. | ||||||||||||
The Company’s European executive officers in certain countries were eligible to participate in Europe’s defined contribution plan. Each year, in the Company’s sole discretion, the Company may contribute a percentage of employees’ pensionable salaries based on their age at January 1. The amounts expensed under this profit sharing plan for the years ended May 31, 2014, 2013 and 2012 were $10.3 million, $8.0 million and $7.2 million, respectively. | ||||||||||||
The Company sponsors various retirement and pension plans, including defined benefit plans, for some of its foreign operations. Many foreign employees are covered by government sponsored programs for which the direct cost to the Company is not significant. Retirement plan benefits are primarily based on the employee’s compensation during the last several years before retirement and the employee’s number of years of service for the Company. | ||||||||||||
Some foreign subsidiaries have plans under which funds are deposited with trustees, annuities are purchased under group contracts or reserves are provided. The Company used May 31, 2014, 2013 and 2012 as the measurement date for the foreign pension plans. | ||||||||||||
Net periodic benefit costs for the Company’s defined benefit plans include the following components: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Net periodic benefit costs: | ||||||||||||
Service costs | $ | 5 | $ | 2.9 | $ | 0.6 | ||||||
Interest costs | 6.9 | 6.1 | 6.3 | |||||||||
Expected return on plan assets | (6.9 | ) | (5.1 | ) | (5.6 | ) | ||||||
Recognized actuarial losses | 1.5 | 2.7 | 1.6 | |||||||||
Net periodic benefit costs: | $ | 6.5 | $ | 6.6 | $ | 2.9 | ||||||
The following table sets forth information related to the benefit obligation and the fair value of plan assets at May 31, 2014 and 2013 for the Company’s defined benefit retirement plans. The Company maintains no post-retirement medical or other post-retirement plans in the United States. | ||||||||||||
(in millions) | 31-May-14 | 31-May-13 | ||||||||||
Change in Benefit Obligation | ||||||||||||
Projected benefit obligation—beginning of year | $ | 167.5 | $ | 128.1 | ||||||||
Service costs | 5 | 2.9 | ||||||||||
Interest costs | 6.9 | 6.1 | ||||||||||
Plan participant contribution | — | 0.4 | ||||||||||
Actuarial (gains)/losses | 9 | 20.1 | ||||||||||
Benefits paid from plan | (5.9 | ) | (4.2 | ) | ||||||||
Plan amendments | (0.5 | ) | — | |||||||||
Plan settlements | 3.6 | — | ||||||||||
Net transfer in (out) | (23.2 | ) | 16.6 | |||||||||
Effect of exchange rates | 14.9 | (2.5 | ) | |||||||||
Projected benefit obligation—end of year | $ | 177.3 | $ | 167.5 | ||||||||
Accumulated benefit obligation | $ | 168.3 | $ | 165.1 | ||||||||
Change in Plan Assets | ||||||||||||
Plan assets at fair value—beginning of year | $ | 137.6 | $ | 108.7 | ||||||||
Actual return on plan assets | 11.1 | 15.5 | ||||||||||
Company contribution | 9.1 | 7.6 | ||||||||||
Plan participant contribution | — | 0.4 | ||||||||||
Benefits paid from plan | (5.9 | ) | (4.0 | ) | ||||||||
Plan settlements | (0.5 | ) | — | |||||||||
Net transfer in (out) | (16.7 | ) | 12.1 | |||||||||
Effect of exchange rates | 12.8 | (2.7 | ) | |||||||||
Plan assets at fair value—end of year | $ | 147.5 | $ | 137.6 | ||||||||
Unfunded status at end of year | $ | 29.8 | $ | 29.9 | ||||||||
Amounts recognized in the Company’s consolidated balance sheets consist of the following: | ||||||||||||
(in millions) | 31-May-14 | 31-May-13 | ||||||||||
Deferred income tax asset | $ | 9.8 | $ | 9.5 | ||||||||
Employee related obligations | 29.8 | 29.9 | ||||||||||
Other comprehensive income (loss) | -11 | -10 | ||||||||||
Year Ended | ||||||||||||
31-May-15 | ||||||||||||
Amounts expected to be recognized in Net Periodic Cost in the coming year for the Company’s defined benefit retirement plans (in millions) | ||||||||||||
Amortization of net actuarial losses | $ | 3.9 | ||||||||||
The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for periods presented and also the net periodic benefit cost for the following years. | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
31-May-14 | 31-May-13 | 31-May-12 | ||||||||||
Discount rate | 4.11 | % | 4 | % | 4.57 | % | ||||||
Expected long-term rate of return on plan assets | 4.22 | % | 4.2 | % | 4.51 | % | ||||||
Rate increase in compensation levels | 2.85 | % | 2.7 | % | 2.58 | % | ||||||
The projected future benefit payments from the Company’s defined benefit retirement plans are $5.4 million for fiscal 2015, $5.3 million for fiscal 2016, $5.6 million for fiscal 2017, $5.9 million for fiscal 2018, $6.1 million for fiscal 2019 and $37.3 million for fiscal 2020 to 2024. The Company expects to pay $5.4 million into the plans during fiscal 2015. In certain countries, the funding of pension plans is not a common practice. Consequently, the Company has several pension plans which are not funded. | ||||||||||||
The Company’s retirement plan asset allocation at May 31, 2014 was 47% to debt securities, 30% to equity securities, and 23% to other. The Company’s retirement plan asset allocation at May 31, 2013 was 45% to debt securities, 31% to equity securities, and 24% to other. | ||||||||||||
Strategic asset allocations are determined by country, based on the nature of the liabilities and considering demographic composition of the plan participants (average age, years of service and active versus retiree status). The Company’s plans are considered non-mature plans and the long-term strategic asset allocations are consistent with these types of plans. Emphasis is placed on diversifying on a broad basis combined with currency matching the fixed income assets. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss). | |||||||||||||||||||||
Accumulated other comprehensive income (loss) includes currency translation adjustments, certain derivative-related activity, changes in the value of available-for-sale investments and changes in pension assets. The Company generally deems its foreign investments to be essentially permanent in nature and does not provide for taxes on currency translation adjustments arising from translating the investment in a foreign currency to U.S. dollars. When the Company determines that a foreign investment is no longer permanent in nature, estimated taxes are provided for the related deferred tax liability (asset), if any, resulting from currency translation adjustments. | |||||||||||||||||||||
Accumulated other comprehensive income (loss) and the related components, net of tax, are included in the table below: | |||||||||||||||||||||
(in millions) | Unrecognized | Foreign currency | Unrealized gain | Unrealized gain | Accumulated | ||||||||||||||||
actuarial | translation | (loss) on interest | (loss) on | other | |||||||||||||||||
gain (loss) | adjustments | rate swaps | available-for-sale | comprehensive | |||||||||||||||||
securities | income (loss) | ||||||||||||||||||||
31-May-12 | $ | (3.0 | ) | $ | 173.7 | $ | (47.3 | ) | $ | (0.5 | ) | $ | 122.9 | ||||||||
OCI before reclassifications | (7.0 | ) | (138.2 | ) | (18.1 | ) | 3.3 | (160.0 | ) | ||||||||||||
Reclassifications | — | — | 31.2 | — | 31.2 | ||||||||||||||||
31-May-13 | (10.0 | ) | 35.5 | (34.2 | ) | 2.8 | (5.9 | ) | |||||||||||||
OCI before reclassifications | (1.0 | ) | 27.1 | 5.9 | (2.8 | ) | 29.2 | ||||||||||||||
Reclassifications | — | — | 16 | — | 16 | ||||||||||||||||
31-May-14 | $ | (11.0 | ) | $ | 62.6 | $ | (12.3 | ) | $ | — | $ | 39.3 | |||||||||
Reclassifications adjustments from OCI are included in the table below: | |||||||||||||||||||||
(in millions) | Year Ended May 31, | Year Ended May 31, | Year Ended May 31, | Location on Statement | |||||||||||||||||
2014 | 2013 | 2012 | of Operations | ||||||||||||||||||
Interest rate swaps | $ | 25.3 | $ | 49.5 | $ | 69 | Interest expense | ||||||||||||||
The tax effects in other comprehensive income (loss) are included in the tables below: | |||||||||||||||||||||
Year Ended May 31, 2014 | |||||||||||||||||||||
(in millions) | Before Tax | Tax | Net of Tax | ||||||||||||||||||
Unrecognized actuarial gain (loss) | $ | 11.7 | $ | (12.7 | ) | $ | (1.0 | ) | |||||||||||||
Foreign currency translation adjustments | 27.4 | (0.3 | ) | 27.1 | |||||||||||||||||
Unrealized gain (loss) on interest rate swaps | 8.7 | (2.8 | ) | 5.9 | |||||||||||||||||
Reclassifications on interest rate swaps | 25.3 | (9.3 | ) | 16 | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | (2.8 | ) | — | (2.8 | ) | ||||||||||||||||
Other comprehensive income (loss): | $ | 70.3 | $ | (25.1 | ) | $ | 45.2 | ||||||||||||||
Year Ended May 31, 2013 | |||||||||||||||||||||
(in millions) | Before Tax | Tax | Net of Tax | ||||||||||||||||||
Unrecognized actuarial gain (loss) | $ | (7.1 | ) | $ | 0.1 | $ | (7.0 | ) | |||||||||||||
Foreign currency translation adjustments | (142.5 | ) | 4.3 | (138.2 | ) | ||||||||||||||||
Unrealized gain (loss) on interest rate swaps | (27.6 | ) | 9.5 | (18.1 | ) | ||||||||||||||||
Reclassifications on interest rate swaps | 49.5 | (18.3 | ) | 31.2 | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 3.4 | (0.1 | ) | 3.3 | |||||||||||||||||
Other comprehensive income (loss): | $ | (124.3 | ) | $ | (4.5 | ) | $ | (128.8 | ) | ||||||||||||
Year Ended May 31, 2012 | |||||||||||||||||||||
(in millions) | Before Tax | Tax | Net of Tax | ||||||||||||||||||
Unrecognized actuarial gain (loss) | $ | (3.4 | ) | $ | (0.8 | ) | $ | (4.2 | ) | ||||||||||||
Foreign currency translation adjustments | (79.9 | ) | 17.8 | (62.1 | ) | ||||||||||||||||
Unrealized gain (loss) on interest rate swaps | (48.1 | ) | 17.7 | (30.4 | ) | ||||||||||||||||
Reclassifications on interest rate swaps | 69 | (25.5 | ) | 43.5 | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 4.3 | — | 4.3 | ||||||||||||||||||
Other comprehensive income (loss): | $ | (58.1 | ) | $ | 9.2 | $ | (48.9 | ) | |||||||||||||
The tables above have been modified to reflect the retrospective application of ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income for all periods presented. |
Sharebased_Compensation_and_St
Share-based Compensation and Stock Plans | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Stock-based Compensation and Stock Plans | ' | |||||||||||||||
Share-based Compensation and Stock Plans. | ||||||||||||||||
The Company expenses all share-based payments to employees and non-employee distributors, including stock options, leveraged share awards and restricted stock units (“RSUs”), based on the grant date fair value over the required award service period using the graded vesting attribution method. As the Company’s common stock is not currently traded on a national securities exchange, the fair market value of the Company’s common shares is determined by the Compensation Committee. For awards with a performance vesting condition, the Company recognizes expense when the performance condition is considered probable to occur. Share-based compensation expense recognized for the years ended May 31, 2014, 2013 and 2012 was $18.2 million, $38.3 million and $16.0 million, respectively. The increase in the expense for the year ended May 31, 2013 was related to the modification that is described below. | ||||||||||||||||
On July 2, 2012, LVB launched a tender offer to eligible employees to exchange all of the stock options and RSUs held by such employees for new stock options and RSUs. Following the expiration of the tender offer on July 30, 2012, LVB accepted for exchange eligible options to purchase an aggregate of 29,821,500 shares of common stock of LVB and eligible RSUs underlying an aggregate of 3,665,000 shares of common stock of LVB. In accordance with the terms and conditions of the tender offer, on July 31, 2012, LVB granted 29,821,500 new options and 10,795,000 new RSUs in exchange for the cancellation of such tendered options and RSUs. | ||||||||||||||||
The objective of the tender offer was to provide employees who elected to participate with new options and new RSUs, the terms of which preserve the original incentive effect of the Company’s equity incentive programs in light of market and industry-wide economic conditions. The terms of the new stock options differed in respect to the tendered options principally with respect to: | ||||||||||||||||
• | Exercise Price—The exercise price for the new stock options was lowered to the then current fair value of $7.88 per share. | |||||||||||||||
• | Vesting Periods—All prior options that were vested as of the completion date of the tender offer remain vested. All time-vesting options which were unvested as of the completion date of the tender offer will continue to vest on the same schedule on which they were originally granted. All unvested replacement extended time vesting options and modified performance options will vest on a schedule which is generally two years longer than the original vesting schedule, but in no case past 2017. | |||||||||||||||
• | Performance Vesting Threshold—The new modified performance options will vest over the new vesting period if, as of the end of the Company’s most recent fiscal year ending on or prior to such vesting date, Biomet, Inc. has achieved the EBITDA target for such fiscal year determined by the Compensation Committee of the Board of Directors of the Company on or before the ninetieth (90th) day of such fiscal year and consistent with the Company’s business plan. | |||||||||||||||
The terms of the new RSUs are different from the tendered RSUs with respect to the vesting schedule, performance conditions and settlement. The new RSUs are granted subject to either a time-based vesting or a performance-based vesting requirement. Unlike the exchanged RSUs, the new RSUs do not vest in full on May 31, 2016 regardless of satisfaction of the vesting conditions. In addition, following the termination of employment with the Company, new RSUs, whether vested or unvested, will be forfeited if such employee provides services to any competitor of the Company. In addition, participants holding new RSUs will also receive new awards called management dividend awards representing the right to receive a cash payment. Management dividend awards vest on a one-to-one basis with each new time-based RSU. Vested management dividend awards are paid by cash distributions promptly following each anniversary of the grant date until the earlier of an initial public offering of the Company or the fifth anniversary of the grant date, subject to withholding taxes. Upon termination of employment for any reason, management dividend awards will be forfeited. The new RSUs were granted under the Company’s 2012 Restricted Stock Unit Plan, which was adopted by LVB on July 31, 2012. The maximum number of shares of common stock, par value $0.01 per share, that may be issued under the Company’s 2012 Restricted Stock Unit Plan is 14,000,000, subject to adjustment as described in the Plan. The management dividend awards are accounted for as liabilities. | ||||||||||||||||
On March 27, 2013, the Compensation Committee of LVB approved and adopted an Amended LVB Acquisition, Inc. 2012 Restricted Stock Unit Plan. The amendment permits certain participants in the Plan to be eligible to elect to receive a cash award with respect to their vested time-based RSUs subject to certain conditions, including the satisfaction of certain Company performance thresholds with respect to Adjusted EBITDA and unlevered free cash flow. To the extent the Company performance conditions have been satisfied for the applicable fiscal year, eligible participants will be entitled to elect to receive a cash award based on the fair market value of the Parent's common stock on the first day of the applicable election period, payable in three installments over a two-year period, with respect to their vested time-based restricted stock units and such vested time-based restricted stock unit will be forfeited upon such election. Payment of the cash award is subject to the participants’ continued employment through the payment date (other than with respect to a termination by the Company without cause). | ||||||||||||||||
During the second quarter of fiscal year 2013, the distributor options were modified to lower the exercise price to the current fair value of $7.88 per share. | ||||||||||||||||
Stock Options | ||||||||||||||||
The Company grants stock option awards under the LVB Acquisition, Inc. 2007 Management Equity Incentive Plan (the “2007 LVB Plan”), with the modifications described above. When the 2007 LVB Plan became effective, there were 37,520,000 shares of LVB common stock reserved for issuance in connection with LVB Awards to be granted thereunder. Effective December 31, 2010, the 2007 LVB Plan was amended to increase the authorized share pool by 1,000,000 shares. During the year ended May 31, 2014, stock options were granted with 10-year terms. The fair value is determined by taking the average value assigned to the Company on a quarterly basis by its Principal Stockholders, three of which have SEC periodic reporting requirements. Vesting of employee stock options are split into two categories: 1) time based options-75% of option grants generally vesting ratably over 5 years and 2) performance based options-25% of stock option grants generally vesting over 5 years, contingent upon the Company achieving certain Adjusted EBITDA targets in each of those years. As of May 31, 2014, there were 1,851,173 shares available for issuance under the 2007 LVB Plan. | ||||||||||||||||
In 2008, the Board of Directors of LVB adopted an addendum to the 2007 LVB Plan, which provides for the grant of leveraged equity awards in LVB under the 2007 LVB Plan (the “LVB Leveraged Awards,” and together with the LVB Options, the “LVB Awards”) to certain of the Company’s European employees. LVB Leveraged Awards permit participants to purchase shares of LVB common stock using the proceeds of non-recourse loans from LVB, which shares remain subject to forfeiture and other restrictions prior to the participant’s repayment of the loan. LVB leveraged award shares outstanding were 467,963 shares, 504,500 shares and 504,500 shares as of May 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Upon termination of a participant’s employment, the 2007 LVB Plan provides that any unvested portion of a participant’s LVB Award will be forfeited, and that the vested portion of his or her LVB Award will expire on the earliest of (1) the date the participant’s employment is terminated for cause, (2) 30 days following the date the participant resigns without good reason, (3) 90 days after the date the participant’s employment is terminated either by us for any reason other than cause, death or disability or by the participant with good reason, (4) one year after the date the participant’s employment is terminated by reason of death or disability, or (5) the tenth anniversary of the grant date of the LVB Award. | ||||||||||||||||
Prior to receiving shares of LVB common stock (whether pursuant to the exercise of LVB Options, purchased pursuant to an LVB Leveraged Award or otherwise), participants must execute a Management Stockholders’ Agreement, which provides that the shares are subject to certain transfer restrictions, put and call rights, and tag along and drag along rights (and, with respect to certain senior members of management, limited re-offer registration and preemptive rights). | ||||||||||||||||
The following table summarizes stock option activity for the years ended May 31, 2014, 2013 and 2012: | ||||||||||||||||
Stock Options | Weighted Average Exercise Price | |||||||||||||||
Outstanding, May 31, 2011 | 35,024,625 | $ | 10 | |||||||||||||
Granted | 2,594,500 | 10 | ||||||||||||||
Forfeitures | -2,867,417 | 10 | ||||||||||||||
Outstanding, May 31, 2012 | 34,751,708 | $ | 10 | |||||||||||||
Granted | 3,564,600 | 7.88 | ||||||||||||||
Forfeitures | -2,349,019 | 7.88 | ||||||||||||||
Outstanding, May 31, 2013 | 35,967,289 | $ | 7.88 | |||||||||||||
Granted | 2,843,100 | 8.37 | ||||||||||||||
Exercised | 162,117 | 7.88 | ||||||||||||||
Forfeitures | -2,303,679 | 7.88 | ||||||||||||||
Outstanding, May 31, 2014 | 36,668,827 | $ | 8.01 | |||||||||||||
The weighted average fair value of options granted during the years ended May 31, 2014, 2013 and 2012, was $2.03, $2.23 and $1.76, respectively. The Company estimates the fair value of each option primarily using the Black-Scholes option pricing model. Expected volatilities for grants are generally based on historical volatility of the Company’s competitors’ stock. The risk-free rates for periods within the expected life of the option are based on the U.S. Treasury yield curve in effect at the time of grant. As of May 31, 2014, there was approximately $17.4 million of unrecognized share-based compensation expense related to nonvested employee stock options granted under the Company’s plan and is expected to be recognized over a weighted average period of 2.4 years. | ||||||||||||||||
The fair value estimates are based on the following weighted average assumptions: | ||||||||||||||||
May 31, 2014 | May 31, 2013 | |||||||||||||||
Risk-free interest rate | 1.5 | % | 0.69 | % | ||||||||||||
Dividend yield | — | — | ||||||||||||||
Expected volatility | 24.45 | % | 30.91 | % | ||||||||||||
Expected life in years | 6 | 6 | ||||||||||||||
The following table summarizes information about outstanding stock options, as of May 31, 2014 and 2013, that were (a) vested and (b) exercisable: | ||||||||||||||||
Outstanding Stock Options Already Vested and Expected to Vest | Options that are Exercisable | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Number of outstanding options | 36,668,827 | 35,967,289 | 26,284,126 | 24,620,247 | ||||||||||||
Weighted average remaining contractual life | 5.8 years | 6.8 years | 5.4 years | 6.4 years | ||||||||||||
Weighted average exercise price per share | $ | 8.01 | $ | 7.88 | $ | 7.88 | $ | 7.88 | ||||||||
Intrinsic value | — | — | — | — | ||||||||||||
Restricted Stock Units | ||||||||||||||||
Effective February 10, 2011, the Board of Directors of LVB adopted and approved a Restricted Stock Unit Plan (the “Prior RSU Plan”). Following the expiration of the tender offer with respect to the RSUs described above, the Board of Directors of LVB adopted and approved the LVB Acquisition, Inc. 2012 Restricted Stock Unit Plan (the “New RSU Plan” and, together with the Prior RSU Plan, the “RSU Plans”). The new RSUs issued pursuant to the tender offer were issued under the New RSU Plan. All of the outstanding RSUs issued under the Prior RSU Plan were tendered for exchange pursuant to the tender offer and no RSUs issued under the Prior RSU Plan remain outstanding. The aggregate number of shares available for issuance pursuant to the terms of the New RSU Plan is 14,000,000, up to 10,000,000 of which may be time-based RSUs and up to 4,000,000 of which may be performance-based RSUs. As of May 31, 2014, there were 1,324,375 shares available for issuance under the New RSU Plan. The purpose of the RSU Plans is to provide executives and certain key employees with the opportunity to receive stock-based performance incentives to retain qualified individuals and to align their interests with the interests of the stockholders. Under the terms of the RSU Plans, the Compensation Committee of the Board of Directors may grant participants RSUs each of which represents the right to receive one share of common stock, subject to certain vesting restrictions and risk of forfeiture. Once granted, RSUs are generally expensed over the required service period. The Company continues to record expense for the Prior RSU Plan. The New RSU Plan requires a liquidity event condition and the incremental expense for the New RSU Plan will be expensed once that condition is met. | ||||||||||||||||
The following table summarizes RSU activity for the years ended May 31, 2014, 2013 and 2012: | ||||||||||||||||
RSUs | Weighted Average Grant Date Fair Value | |||||||||||||||
Outstanding at May 31, 2011 | 3,835,000 | 10 | ||||||||||||||
Granted | 30,000 | 10 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (200,000 | ) | 10 | |||||||||||||
Outstanding at May 31, 2012 | 3,665,000 | 10 | ||||||||||||||
Modification impact | (3,665,000 | ) | 10 | |||||||||||||
Granted | 13,631,500 | 7.88 | ||||||||||||||
Vested | — | 0 | ||||||||||||||
Forfeited | (578,000 | ) | 7.88 | |||||||||||||
Outstanding at May 31, 2013 | 13,053,500 | 7.88 | ||||||||||||||
Granted | 643,500 | 8.56 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (1,021,375 | ) | 7.88 | |||||||||||||
Outstanding at May 31, 2014 | 12,675,625 | 7.91 | ||||||||||||||
The RSUs are measured at their grant date fair value. The expense is recognized for the RSUs ultimately expected to vest, using the straight line method over the service period, which is estimated at approximately five years from the initial grant date. As of May 31, 2014, there was approximately $12.4 million of unrecognized share-based compensation expense related to nonvested RSUs granted under the RSU Plan and is expected to be recognized over a weighted average period of 2.0 years, additionally $80.3 million of expense will be recognized if certain liquidity events occur as detailed in the RSU Plan Agreement. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes. | ||||||||||||
The components of loss before income taxes are as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Domestic | $ | (309.0 | ) | $ | (747.4 | ) | $ | (796.1 | ) | |||
Foreign | 269.1 | 6.3 | 205.3 | |||||||||
Total | $ | (39.9 | ) | $ | (741.1 | ) | $ | (590.8 | ) | |||
The income tax benefit is summarized as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 43.9 | $ | 13.7 | $ | (9.5 | ) | |||||
State | 8.4 | 6.8 | 3 | |||||||||
Foreign | 70.6 | 35.5 | 42.6 | |||||||||
Sub-total | 122.9 | 56 | 36.1 | |||||||||
Deferred: | ||||||||||||
Federal | (118.7 | ) | (169.3 | ) | (83.6 | ) | ||||||
State | (86.6 | ) | 11.9 | (0.9 | ) | |||||||
Foreign | (33.4 | ) | (16.3 | ) | (83.6 | ) | ||||||
Sub-total | (238.7 | ) | (173.7 | ) | (168.1 | ) | ||||||
Total income tax benefit | $ | (115.8 | ) | $ | (117.7 | ) | $ | (132.0 | ) | |||
A reconciliation of the statutory federal income tax rate to the Company’s U.S. effective tax rate is as follows: | ||||||||||||
Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | ||||||||||
Income tax computed at U.S. statutory rate | $ | (14.0 | ) | $ | (259.4 | ) | $ | (206.8 | ) | |||
State taxes, net of federal deduction | (18.5 | ) | (13.3 | ) | (3.0 | ) | ||||||
Effect of foreign taxes | (62.5 | ) | (11.9 | ) | (6.5 | ) | ||||||
Change in liability for uncertain tax positions | 69.5 | 19.3 | (21.9 | ) | ||||||||
Goodwill impairment | — | 166 | 102.2 | |||||||||
Change in tax laws and rates | (10.9 | ) | 14.8 | (15.4 | ) | |||||||
Tax on foreign earnings, net of foreign tax credits | (38.6 | ) | (43.7 | ) | 52.6 | |||||||
Nondeductible/nontaxable items | (24.2 | ) | 4.1 | (23.6 | ) | |||||||
Adjustment of prior estimates | 13.3 | 3.7 | (22.6 | ) | ||||||||
Change in valuation allowance | (32.4 | ) | — | (0.4 | ) | |||||||
Other | 2.5 | 2.7 | 13.4 | |||||||||
Income tax computed at effective worldwide tax rates | $ | (115.8 | ) | $ | (117.7 | ) | $ | (132.0 | ) | |||
The components of the net deferred income tax assets and liabilities at May 31, 2014 and 2013 are as follows: | ||||||||||||
(in millions) | 31-May-14 | 31-May-13 | ||||||||||
Deferred income tax assets: | ||||||||||||
Accounts receivable | $ | 11.3 | $ | 14.1 | ||||||||
Inventories | 86.7 | 68.8 | ||||||||||
Reserves and accrued expenses | 120.4 | 85.7 | ||||||||||
Tax benefit of net operating losses, tax credits and other carryforwards | 109.1 | 106.3 | ||||||||||
Future benefit of uncertain tax positions | 15.9 | 13 | ||||||||||
Stock-based compensation | 62.4 | 55.7 | ||||||||||
Unrealized mark-to-mark and currency gains and losses | 9.9 | 33.9 | ||||||||||
Federal effect of state tax | 8.2 | 35.4 | ||||||||||
Other | 18.7 | (23.9 | ) | |||||||||
Deferred income tax assets | 442.6 | 389 | ||||||||||
Less: Valuation allowance | (16.7 | ) | (68.8 | ) | ||||||||
Total deferred income tax assets | 425.9 | 320.2 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Property, plant, equipment and intangibles | (1,234.8 | ) | (1,316.2 | ) | ||||||||
Unremitted foreign earnings | — | (4.4 | ) | |||||||||
Other | (9.8 | ) | (9.5 | ) | ||||||||
Total deferred income tax liabilities | (1,244.6 | ) | (1,330.1 | ) | ||||||||
Total net deferred income tax liabilities | $ | (818.7 | ) | $ | (1,009.9 | ) | ||||||
The Company’s deferred tax assets include federal, state, and foreign net operating loss carryforwards of $5.8 million, $64.2 million ($41.7 million, net of federal benefit) and $13.6 million, respectively. Federal net operating loss carryforwards available are $16.6 million, which begin to expire in 2033. The Company believes it is more likely than not that it will be able to utilize the federal and state net operating loss carryforwards. The state and foreign net operating loss carryforwards are from various jurisdictions with various carryforward periods. | ||||||||||||
Deferred tax assets related to tax credits and other carryforwards total $25.5 million as of May 31, 2014. This includes a deferred tax asset for foreign tax credit carryforwards in the amount of $15.2 million, which begin to expire in 2024. The Company believes it is more likely than not that it will be able to utilize the foreign tax credit carryforwards. | ||||||||||||
As of May 31, 2014, the Company has a $16.7 million valuation allowance against deferred tax assets. This valuation allowance consists of $5.0 million relating to net deferred tax assets for unrealized losses on investments and $11.7 million for net deferred tax assets related to state and foreign net operating losses that management believes, more likely than not, will not be realized. | ||||||||||||
As of May 31, 2013, a valuation allowance of approximately $59.2 million ($38.5 million, net of federal benefit) was recorded against separate state net operating losses (“NOLs”) of $62.5 million. As a result of state tax restructuring during the year ended May 31, 2014, these separate state NOLs are now expected to be fully utilized to offset projected state income taxes within the carryforward period. Thus, the valuation allowance against those NOLs was released as of May 31, 2014. | ||||||||||||
The Company has not historically provided for U.S. or additional foreign taxes on the excess of the amount of financial reporting over the tax basis of investments in non-U.S. subsidiaries. A company is not required to recognize a deferred tax liability for the outside basis difference of an investment in a non-U.S. subsidiary or a non-U.S. corporate joint venture that is essentially permanent in duration, unless it becomes apparent that such difference will reverse in the foreseeable future. The excess of financial reporting basis over tax basis of investments in non-U.S. subsidiaries is primarily attributable to the financial restatement of the carrying amount of these investments due to the Merger, adjusted for subsequent accumulation of earnings and losses. It is the Company’s practice and intention to continue to permanently reinvest a substantial portion of the reported earnings of its non-U.S. subsidiaries in non-U.S. operations. It is also the Company’s practice and intention to continue to permanently reinvest a substantial portion of the excess cash generated by its non-U.S. subsidiaries. Currently, there are no plans to divest any of the Company’s investments in non-U.S. subsidiaries. As of May 31, 2014, the Company has an accumulated book loss in its non-U.S. subsidiaries. Therefore, there are no undistributed earnings to disclose. To the extent it is determined that the book tax basis difference could reverse in the foreseeable future, other than related to undistributed earnings, the Company will record a deferred tax liability reflecting the estimated amount of tax that will be payable due to such reversal. If future events, including material changes in estimates of cash, working capital and long-term investment requirements necessitate repatriation of portions of the earnings currently treated as permanently reinvested, under current tax laws an additional tax provision may be required which could have a material effect on our financial results. | ||||||||||||
As of May 31, 2014, the Company anticipates there will be no decrease in the financial reporting over the tax basis of investments in non-U.S. subsidiaries in the foreseeable future that will result in either a cash tax liability, utilization of a tax attribute previously recorded on the balance sheet or generation of additional tax attributes. Accordingly, the Company has reduced its deferred tax liability related to unremitted foreign earnings from $4.4 million at May 31, 2013 to zero at May 31, 2014. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Unrecognized tax benefits, beginning of period | $ | 78.4 | $ | 63 | $ | 90.9 | ||||||
Addition based on tax positions related to the current year | 60.5 | 14.1 | 10.9 | |||||||||
Addition (reduction) for tax positions of prior periods | 4.1 | 1.3 | (14.8 | ) | ||||||||
Reduction related to settlements with tax authorities | (1.0 | ) | — | (0.1 | ) | |||||||
Reduction related to lapse of statute of limitations | — | 0 | (23.9 | ) | ||||||||
Unrecognized tax benefits, end of period | $ | 142 | $ | 78.4 | $ | 63 | ||||||
Included in the amount of unrecognized tax benefits at May 31, 2014 and 2013 are $132.9 million and $70.4 million, respectively, of tax benefits that would impact the Company’s effective tax rate, if recognized. | ||||||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Related to unrecognized tax benefits noted above, the Company accrued interest of $5.2 million and $3.8 million during the years ended May 31, 2014 and 2013, respectively. As of May 31, 2014 and 2013, the Company has recognized a liability for interest of $19.0 million and $14.4 million, respectively. The Company accrued and recognized an immaterial amount of penalties for the years disclosed. | ||||||||||||
The Company conducts business globally and, as a result, certain of its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. In the normal course of business, the Company is subject to examinations by taxing authorities throughout the world, including major jurisdictions such as Australia, Canada, China, France, Germany, Japan, Luxembourg, the Netherlands, Spain, the United Kingdom and the United States. In addition, certain state and foreign tax returns are under examination by various regulatory authorities. The Company is no longer subject to U.S. federal income tax examinations for the fiscal years prior to and including the year ended May 31, 2010. | ||||||||||||
The Company regularly reviews issues that are raised from ongoing examinations and open tax years to evaluate the adequacy of its liabilities. As the various taxing authorities continue with their audit/examination programs, the Company will adjust its reserves accordingly to reflect these settlements. As of May 31, 2014, the Company does not anticipate a significant change in its worldwide gross liabilities for unrecognized tax benefits within the succeeding twelve months. |
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting. | ||||||||||||
The Company operates in one reportable segment, musculoskeletal products, which includes the designing, manufacturing and marketing of knees; hips; sports, extremities and trauma (“S.E.T.”); spine, bone healing and microfixation; dental; and cement, biologics and other products. Other products consist primarily of general instruments and operating room supplies. The Company operates in various geographies. These geographic markets are comprised of the United States, Europe and International. Major markets included in the International geographic market are Canada, Latin America and the Asia Pacific region. | ||||||||||||
Net sales by product category for the years ended May 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended | Year Ended | |||||||||
31-May-13 | 31-May-12 | |||||||||||
Net sales by product: | ||||||||||||
Knees | $ | 995.7 | $ | 940 | $ | 941.8 | ||||||
Hips | 649.2 | 632.7 | 633 | |||||||||
S.E.T. | 647.5 | 600.1 | 361.6 | |||||||||
Spine, Bone Healing and Microfixation | 446.7 | 408.8 | 411.5 | |||||||||
Dental | 259.1 | 257 | 267.7 | |||||||||
Cement, Biologics and Other | 225.2 | 214.3 | 222.5 | |||||||||
Total | $ | 3,223.40 | $ | 3,052.90 | $ | 2,838.10 | ||||||
Net sales by geography for the years ended May 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Net sales by geography: | ||||||||||||
United States | $ | 1,970.40 | $ | 1,862.20 | $ | 1,713.30 | ||||||
Europe | 772 | 710.2 | 702.7 | |||||||||
International(1) | 481 | 480.5 | 422.1 | |||||||||
Total | $ | 3,223.40 | $ | 3,052.90 | $ | 2,838.10 | ||||||
-1 | International primarily includes Canada, Latin America and the Asia Pacific region. | |||||||||||
Long-term assets by geography as of May 31, 2014 and 2013 were as follows: | ||||||||||||
(in millions) | May 31, 2014 | 31-May-13 | 31-May-12 | |||||||||
Long-term assets(1) by geography: | ||||||||||||
United States | $ | 396.9 | $ | 336.8 | $ | 306.8 | ||||||
Europe | 241.4 | 255.7 | 224.3 | |||||||||
International | 77.7 | 72.7 | 62.5 | |||||||||
Total | $ | 716 | $ | 665.2 | $ | 593.6 | ||||||
-1 | Defined as property, plant and equipment. |
Guarantor_and_NonGuarantor_Fin
Guarantor and Non-Guarantor Financial Statements | 12 Months Ended | |||||||||||||||||||
31-May-14 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Guarantor and Non-Guarantor Financial Statements | ' | |||||||||||||||||||
Guarantor and Non-guarantor Financial Statements. | ||||||||||||||||||||
Each of Biomet’s existing wholly owned domestic subsidiaries fully, unconditionally, jointly, and severally guarantee the senior notes on a senior unsecured basis and the senior subordinated notes on a senior subordinated unsecured basis, in each case to the extent such subsidiaries guarantee Biomet’s senior secured cash flow facilities. The Company believes such amounts are immaterial. LVB is neither an issuer nor guarantor of the notes described in Note 7. | ||||||||||||||||||||
The following financial information presents the composition of the combined guarantor subsidiaries: | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
May 31, 2014 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 101.8 | $ | 145.8 | $ | — | $ | 247.6 | ||||||||||
Accounts receivable, net | — | 284.6 | 292.7 | — | 577.3 | |||||||||||||||
Inventories | — | 374.3 | 319.1 | — | 693.4 | |||||||||||||||
Deferred income taxes | — | 117.9 | 32 | — | 149.9 | |||||||||||||||
Prepaid expenses and other | — | 128 | 74.9 | — | 202.9 | |||||||||||||||
Total current assets | — | 1,006.60 | 864.5 | — | 1,871.10 | |||||||||||||||
Property, plant and equipment, net | — | 412.4 | 303.6 | — | 716 | |||||||||||||||
Investments | — | 11.9 | 0.6 | — | 12.5 | |||||||||||||||
Investment in subsidiaries | 7,882.90 | — | — | (7,882.9 | ) | — | ||||||||||||||
Intangible assets, net | — | 2,740.10 | 699.5 | — | 3,439.60 | |||||||||||||||
Goodwill | — | 3,146.70 | 487.7 | — | 3,634.40 | |||||||||||||||
Other assets | — | 81.5 | 11.5 | — | 93 | |||||||||||||||
Total assets | $ | 7,882.90 | $ | 7,399.20 | $ | 2,367.40 | $ | (7,882.9 | ) | $ | 9,766.60 | |||||||||
Liabilities & Shareholder’s Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 133.1 | $ | — | $ | — | $ | — | $ | 133.1 | ||||||||||
Accounts payable | — | 86.9 | 48.4 | — | 135.3 | |||||||||||||||
Accrued interest | 53.3 | — | 0.1 | — | 53.4 | |||||||||||||||
Accrued wages and commissions | — | 90 | 78.7 | — | 168.7 | |||||||||||||||
Other accrued expenses | — | 259.4 | 95.3 | — | 354.7 | |||||||||||||||
Total current liabilities | 186.4 | 436.3 | 222.5 | — | 845.2 | |||||||||||||||
Long-term debt | 5,587.30 | — | — | — | 5,587.30 | |||||||||||||||
Deferred income taxes | — | 811.3 | 157.3 | — | 968.6 | |||||||||||||||
Other long-term liabilities | — | 170.8 | 85.5 | — | 256.3 | |||||||||||||||
Total liabilities | 5,773.70 | 1,418.40 | 465.3 | — | 7,657.40 | |||||||||||||||
Shareholder’s equity | 2,109.20 | 5,980.80 | 1,902.10 | (7,882.9 | ) | 2,109.20 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 7,882.90 | $ | 7,399.20 | $ | 2,367.40 | $ | (7,882.9 | ) | $ | 9,766.60 | |||||||||
31-May-13 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 35.3 | $ | 320.3 | $ | — | $ | 355.6 | ||||||||||
Accounts receivable, net | — | 254.1 | 277.7 | — | 531.8 | |||||||||||||||
Inventories | — | 286.9 | 337.1 | — | 624 | |||||||||||||||
Deferred income taxes | — | 78.3 | 41.6 | — | 119.9 | |||||||||||||||
Prepaid expenses and other | — | 73.7 | 67.6 | — | 141.3 | |||||||||||||||
Total current assets | — | 728.3 | 1,044.30 | — | 1,772.60 | |||||||||||||||
Property, plant and equipment, net | — | 350.1 | 315.1 | — | 665.2 | |||||||||||||||
Investments | — | 10.9 | 12.1 | — | 23 | |||||||||||||||
Investment in subsidiaries | 7,982.80 | — | — | (7,982.8 | ) | — | ||||||||||||||
Intangible assets, net | — | 2,890.40 | 739.8 | — | 3,630.20 | |||||||||||||||
Goodwill | — | 3,104.00 | 496.9 | — | 3,600.90 | |||||||||||||||
Other assets | — | 88.9 | 13.9 | — | 102.8 | |||||||||||||||
Total assets | $ | 7,982.80 | $ | 7,172.60 | $ | 2,622.10 | $ | (7,982.8 | ) | $ | 9,794.70 | |||||||||
Liabilities & Shareholder’s Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 33.3 | $ | — | $ | 7 | $ | — | $ | 40.3 | ||||||||||
Accounts payable | — | 63.8 | 47.7 | — | 111.5 | |||||||||||||||
Accrued interest | 56.1 | — | 0.1 | — | 56.2 | |||||||||||||||
Accrued wages and commissions | — | 82.1 | 68 | — | 150.1 | |||||||||||||||
Other accrued expenses | — | 141.7 | 64.3 | — | 206 | |||||||||||||||
Total current liabilities | 89.4 | 287.6 | 187.1 | — | 564.1 | |||||||||||||||
Long-term debt | 5,924.80 | — | 1.3 | — | 5,926.10 | |||||||||||||||
Deferred income taxes | — | 942 | 187.8 | — | 1,129.80 | |||||||||||||||
Other long-term liabilities | — | 142.9 | 63.2 | — | 206.1 | |||||||||||||||
Total liabilities | 6,014.20 | 1,372.50 | 439.4 | — | 7,826.10 | |||||||||||||||
Shareholder’s equity | 1,968.60 | 5,800.10 | 2,182.70 | (7,982.8 | ) | 1,968.60 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 7,982.80 | $ | 7,172.60 | $ | 2,622.10 | $ | (7,982.8 | ) | $ | 9,794.70 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
Year Ended May 31, 2014 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 2,039.90 | $ | 1,183.50 | $ | — | $ | 3,223.40 | ||||||||||
Cost of sales | — | 878.1 | 162.1 | — | 1,040.20 | |||||||||||||||
Gross profit | — | 1,161.80 | 1,021.40 | — | 2,183.20 | |||||||||||||||
Selling, general and administrative expense | — | 889.2 | 504 | — | 1,393.20 | |||||||||||||||
Research and development expense | — | 126.3 | 43.3 | — | 169.6 | |||||||||||||||
Amortization | — | 254.2 | 53 | — | 307.2 | |||||||||||||||
Operating income (loss) | — | (107.9 | ) | 421.1 | — | 313.2 | ||||||||||||||
Interest expense | 355.7 | — | 0.2 | — | 355.9 | |||||||||||||||
Other (income) expense | — | 3.6 | (6.4 | ) | — | (2.8 | ) | |||||||||||||
Income (loss) before income taxes | (355.7 | ) | (111.5 | ) | 427.3 | — | (39.9 | ) | ||||||||||||
Tax expense (benefit) | (135.2 | ) | (42.3 | ) | 61.7 | — | (115.8 | ) | ||||||||||||
Equity in earnings of subsidiaries | 296.4 | — | — | (296.4 | ) | — | ||||||||||||||
Net income (loss) | 75.9 | (69.2 | ) | 365.6 | (296.4 | ) | 75.9 | |||||||||||||
Other comprehensive income (loss) | 21.9 | — | 23.3 | — | 45.2 | |||||||||||||||
Total comprehensive income (loss) | $ | 97.8 | $ | (69.2 | ) | $ | 388.9 | $ | (296.4 | ) | $ | 121.1 | ||||||||
Year Ended May 31, 2013 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,922.30 | $ | 1,130.60 | $ | — | $ | 3,052.90 | ||||||||||
Cost of sales | — | 689.8 | 183.6 | — | 873.4 | |||||||||||||||
Gross profit | — | 1,232.50 | 947 | — | 2,179.50 | |||||||||||||||
Selling, general and administrative expense | — | 820.6 | 491.9 | — | 1,312.50 | |||||||||||||||
Research and development expense | — | 112.8 | 37.5 | — | 150.3 | |||||||||||||||
Amortization | — | 260.6 | 53.2 | — | 313.8 | |||||||||||||||
Goodwill impairment charge | — | 167.9 | 305.1 | — | 473 | |||||||||||||||
Intangible assets impairment charge | — | 94.4 | — | — | 94.4 | |||||||||||||||
Operating income (loss) | — | (223.8 | ) | 59.3 | — | (164.5 | ) | |||||||||||||
Interest expense | 395.2 | — | 3.6 | — | 398.8 | |||||||||||||||
Other (income) expense | 177.6 | 6.1 | (5.9 | ) | — | 177.8 | ||||||||||||||
Income (loss) before income taxes | (572.8 | ) | (229.9 | ) | 61.6 | — | (741.1 | ) | ||||||||||||
Tax expense (benefit) | (217.7 | ) | (87.4 | ) | 187.4 | — | (117.7 | ) | ||||||||||||
Equity in earnings of subsidiaries | (268.3 | ) | — | — | 268.3 | — | ||||||||||||||
Net income (loss) | (623.4 | ) | (142.5 | ) | (125.8 | ) | 268.3 | (623.4 | ) | |||||||||||
Other comprehensive income (loss) | 13.1 | — | (141.9 | ) | — | (128.8 | ) | |||||||||||||
Total comprehensive income (loss) | $ | (610.3 | ) | $ | (142.5 | ) | $ | (267.7 | ) | $ | 268.3 | $ | (752.2 | ) | ||||||
Year Ended May 31, 2012 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,769.80 | $ | 1,068.30 | $ | — | $ | 2,838.10 | ||||||||||
Cost of sales | — | 437.2 | 338.3 | — | 775.5 | |||||||||||||||
Gross profit | — | 1,332.60 | 730 | — | 2,062.60 | |||||||||||||||
Selling, general and administrative expense | — | 724.9 | 447.3 | — | 1,172.20 | |||||||||||||||
Research and development expense | — | 94.7 | 32.1 | — | 126.8 | |||||||||||||||
Amortization | — | 258.8 | 68.4 | — | 327.2 | |||||||||||||||
Goodwill impairment charge | — | 189.4 | 102.5 | — | 291.9 | |||||||||||||||
Intangible assets impairment charge | — | 74.9 | 163 | — | 237.9 | |||||||||||||||
Operating income (loss) | — | (10.1 | ) | (83.3 | ) | — | (93.4 | ) | ||||||||||||
Interest expense | 477.1 | — | 2.7 | — | 479.8 | |||||||||||||||
Other (income) expense | — | 3.1 | 14.5 | — | 17.6 | |||||||||||||||
Income (loss) before income taxes | (477.1 | ) | (13.2 | ) | (100.5 | ) | — | (590.8 | ) | |||||||||||
Tax expense (benefit) | (181.3 | ) | 86.8 | (37.5 | ) | — | (132.0 | ) | ||||||||||||
Equity in earnings of subsidiaries | (163.0 | ) | — | — | 163 | — | ||||||||||||||
Net income (loss) | (458.8 | ) | (100.0 | ) | (63.0 | ) | 163 | (458.8 | ) | |||||||||||
Other comprehensive income (loss) | 13.1 | — | (62.0 | ) | — | (48.9 | ) | |||||||||||||
Total comprehensive income (loss) | $ | (445.7 | ) | $ | (100.0 | ) | $ | (125.0 | ) | $ | 163 | $ | (507.7 | ) | ||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended May 31, 2014 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | 266.9 | $ | 351.7 | $ | (89.6 | ) | $ | — | $ | 529 | |||||||||
Capital expenditures | — | (135.7 | ) | (93.0 | ) | — | (228.7 | ) | ||||||||||||
Acquisitions, net of cash acquired - 2013 Spine Acquisition | — | (148.8 | ) | 0 | — | (148.8 | ) | |||||||||||||
Other | — | (2.0 | ) | 14.4 | — | 12.4 | ||||||||||||||
Cash flows provided by (used in) investing activities | — | (286.5 | ) | (78.6 | ) | — | (365.1 | ) | ||||||||||||
Proceeds under revolvers/facility | 155 | — | 4.3 | — | 159.3 | |||||||||||||||
Payments under revolvers/facility | (155.0 | ) | — | (10.3 | ) | — | (165.3 | ) | ||||||||||||
Proceeds from senior and senior subordinated notes due 2020 and term loans | 870.5 | — | — | — | 870.5 | |||||||||||||||
Tender/retirement of senior notes due 2017 and term loans | (1,091.6 | ) | — | — | — | (1,091.6 | ) | |||||||||||||
Other | (45.8 | ) | 1.3 | (2.3 | ) | — | (46.8 | ) | ||||||||||||
Cash flows used in financing activities | (266.9 | ) | 1.3 | (8.3 | ) | — | (273.9 | ) | ||||||||||||
Effect of exchange rate changes on | — | — | 2 | — | 2 | |||||||||||||||
cash | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 66.5 | (174.5 | ) | — | (108.0 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | — | 35.3 | 320.3 | — | 355.6 | |||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 101.8 | $ | 145.8 | $ | — | $ | 247.6 | ||||||||||
Year Ended May 31, 2013 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | 128.6 | $ | 228.2 | $ | 111.7 | $ | — | $ | 468.5 | ||||||||||
Capital expenditures | — | (102.9 | ) | (101.1 | ) | — | (204.0 | ) | ||||||||||||
Acquisitions, net of cash acquired - 2012 Trauma Acquisition | — | (277.5 | ) | (2.5 | ) | — | (280.0 | ) | ||||||||||||
Other | — | (2.5 | ) | (2.1 | ) | — | (4.6 | ) | ||||||||||||
Cash flows provided by (used in) investing activities | — | (382.9 | ) | (105.7 | ) | — | (488.6 | ) | ||||||||||||
Proceeds under revolvers/facility | 80 | — | 6.6 | — | 86.6 | |||||||||||||||
Payments under revolvers/facility | (80.0 | ) | — | (0.6 | ) | — | (80.6 | ) | ||||||||||||
Proceeds from senior and senior subordinated notes due 2020 and term loans | 3,396.20 | — | — | — | 3,396.20 | |||||||||||||||
Tender/retirement of senior notes due 2017 and term loans | (3,423.0 | ) | — | — | — | (3,423.0 | ) | |||||||||||||
Payment of fees related to refinancing activities | (79.0 | ) | — | — | — | (79.0 | ) | |||||||||||||
Other | (22.8 | ) | (0.1 | ) | (12.0 | ) | — | (34.9 | ) | |||||||||||
Cash flows used in financing activities | (128.6 | ) | (0.1 | ) | (6.0 | ) | — | (134.7 | ) | |||||||||||
Effect of exchange rate changes on | — | — | 18 | — | 18 | |||||||||||||||
cash | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | — | (154.8 | ) | 18 | — | (136.8 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | — | 190.1 | 302.3 | — | 492.4 | |||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 35.3 | $ | 320.3 | $ | — | $ | 355.6 | ||||||||||
Year Ended May 31, 2012 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | 36.7 | $ | 63 | $ | 277.6 | $ | — | $ | 377.3 | ||||||||||
Proceeds from sales/maturities of investments | — | 42.1 | — | — | 42.1 | |||||||||||||||
Capital expenditures | — | (89.9 | ) | (89.4 | ) | — | (179.3 | ) | ||||||||||||
Other | — | (1.5 | ) | (5.3 | ) | — | (6.8 | ) | ||||||||||||
Cash flows provided by (used in) investing activities | — | (49.3 | ) | (94.7 | ) | — | (144.0 | ) | ||||||||||||
Payments under senior secured credit facilities | (35.4 | ) | — | — | — | (35.4 | ) | |||||||||||||
Other | (1.3 | ) | — | (1.4 | ) | — | (2.7 | ) | ||||||||||||
Cash flows used in financing activities | (36.7 | ) | — | (1.4 | ) | — | (38.1 | ) | ||||||||||||
Effect of exchange rate changes on | — | — | (30.6 | ) | — | (30.6 | ) | |||||||||||||
cash | ||||||||||||||||||||
Increase in cash and cash equivalents | — | 13.7 | 150.9 | — | 164.6 | |||||||||||||||
Cash and cash equivalents, beginning | — | 176.4 | 151.4 | — | 327.8 | |||||||||||||||
of period | ||||||||||||||||||||
Cash and cash equivalents, end of | $ | — | $ | 190.1 | $ | 302.3 | $ | — | $ | 492.4 | ||||||||||
period | ||||||||||||||||||||
Restructuring
Restructuring | 12 Months Ended | |||
31-May-14 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
Restructuring | ' | |||
Restructuring. | ||||
The Company recorded $53.7 million, $5.7 million and $19.5 million in restructuring costs during the years ended May 31, 2014, 2013 and 2012, respectively. During fiscal years 2013 and 2012 the expense is employee severance costs, with fiscal year 2014 including both employee severance costs and plant closure costs. The expense during fiscal 2014 and 2013 resulted primarily from the planned closures of the Swindon, United Kingdom manufacturing facility and the Le Locle, Switzerland manufacturing facility. The expense during fiscal 2012 resulted primarily from the global reconstructive products reorganization program and the planned closure of the Swindon, United Kingdom manufacturing facility. These restructuring charges were recorded within cost of sales, selling, general and administrative expense, and research and development expense and other accrued expenses. A summary of the severance and benefit costs in the periods presented is as follows: | ||||
(in millions) | Restructuring Costs | |||
Restructuring Accrual: | ||||
Balance at May 31, 2011 | $ | 5.9 | ||
Costs incurred and charged to expense | 19.5 | |||
Costs paid or otherwise settled | (14.2 | ) | ||
Non-cash adjustments(1) | (1.7 | ) | ||
Balance at May 31, 2012 | 9.5 | |||
Costs incurred and charged to expense | 5.7 | |||
Costs paid or otherwise settled | (6.4 | ) | ||
Non-cash adjustments(1) | 0.1 | |||
Balance at May 31, 2013 | 8.9 | |||
Costs incurred and charged to expense | 53.7 | |||
Costs paid or otherwise settled | (22.3 | ) | ||
Non-cash adjustments(1) | 2.2 | |||
Balance at May 31, 2014 | $ | 42.5 | ||
-1 | Primarily related to foreign currency fluctuations. |
Contingencies
Contingencies | 12 Months Ended |
31-May-14 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Contingencies. | |
The Company is involved in various proceedings, legal actions and claims arising in the normal course of business, including proceedings related to product liability, governmental investigations, intellectual property, commercial litigation and other matters. The outcomes of these matters will generally not be known for an extended period of time. In certain of the legal proceedings, the claimants seek damages, as well as other compensatory relief, which could result in the payment of significant claims and settlements. For legal matters for which management has sufficient information to reasonably estimate the Company’s future obligations, a liability representing management’s best estimate of the probable cost, or the minimum of the range of probable losses when a best estimate within the range is not known, for the resolution of these legal matters is recorded. The estimates are based on consultation with legal counsel, previous settlement experience and settlement strategies. The Company’s accrual for contingencies, except for claims associated with metal-on-metal hip products was $39.1 million and $40.0 million at May 31, 2014 and 2013, respectively, and primarily relate to certain product liability claims and the Massachusetts U.S. Department of Justice EBI products investigation described below. | |
Other than the Massachusetts U.S. Department of Justice EBI products investigation, claims associated with metal-on-metal hips and certain product liability claims, for which the estimated loss is included in the accrual amounts disclosed within this footnote, the relatively early stages of the other governmental investigations and other product liability claims described below, and the complexities involved in these matters, the Company is unable to estimate a possible loss or range of possible loss for such matters until the Company knows, among other factors, (i) what claims, if any will survive dispositive motion practice, (ii) the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate, (iii) how the discovery process will affect the litigation, (iv) the settlement posture of the other parties to the litigation and (v) any other factors that may have a material effect on the litigation. | |
U.S. Securities and Exchange Commission (“SEC”) Investigation | |
On September 25, 2007, Biomet received a letter from the SEC informing the Company that it was conducting an investigation regarding possible violations of the Foreign Corrupt Practices Act, or FCPA, in the marketing and sale of medical devices in certain foreign countries by companies in the medical devices industry. The FCPA prohibits domestic concerns, including U.S. companies and their officers, directors, employees, shareholders acting on their behalf and agents, from offering, promising, authorizing or making payments to foreign officials for the purpose of obtaining or retaining business abroad or otherwise obtaining an improper advantage. This law also requires issuers of publicly registered securities to maintain records which fairly and accurately reflect transactions and to maintain an adequate system of internal controls. In many countries, hospitals and clinics are government-owned and, therefore, healthcare professionals employed by such hospitals and clinics, with whom the Company regularly interacts, may meet the definition of a foreign official for purposes of the FCPA. On November 9, 2007, the Company received a letter from the DOJ requesting that any information provided to the SEC also be provided to the DOJ on a voluntary basis. | |
On March 26, 2012, Biomet resolved the DOJ's and SEC's investigations by entering into a Deferred Prosecution Agreement (“DPA”) with the U.S. Department of Justice (“DOJ”) and a Consent to Final Judgment (“Consent Agreement”) with the SEC. Pursuant to the DPA, the DOJ has agreed to defer prosecution of Biomet in connection with this matter, provided that Biomet satisfies its obligations under the agreement over the term of the DPA. The DOJ has further agreed to not continue its prosecution and seek to dismiss its indictment should Biomet satisfy its obligations under the agreement over the term of the DPA. The DPA has a three-year term but provides that it may be extended in the sole discretion of the DOJ for an additional year. Pursuant to the Consent, Biomet consented to the entry of a Final Judgment which, among other things, permanently enjoined Biomet from violating the provisions of the Foreign Corrupt Practices Act. | |
In addition, pursuant to the terms of the DPA, an independent external compliance monitor has been appointed to review Biomet’s compliance with the DPA, particularly in relation to Biomet’s international sales practices, for at least the first 18 months of the three-year term of the DPA. The monitor has divided his review into two phases. The first phase consisted of the monitor familiarizing himself with our global compliance program, assessing the effectiveness of the program and making recommendations for enhancement of our compliance program based on that review. The second phase commenced in June 2013 and consists of the monitor testing implementation of his recommended enhancements to our compliance program. The monitor recently identified that certain of the Company’s compliance enhancements have been implemented too recently to be satisfactorily tested, and the Company continues to work with the monitor to allow for such transactional testing. The Consent Biomet entered into with the SEC mirrors the DPA’s provisions with respect to the compliance monitor. Compliance with the DPA requires substantial cooperation of the Company’s employees, distributors and sales agents and the healthcare professionals with whom they interact. These efforts not only involve expense, but also require management and other key employees to focus extensively on these matters. | |
Biomet agreed to pay a monetary penalty of $17.3 million to resolve the charges brought by the DOJ. The terms of the DPA and the associated monetary penalty reflect Biomet’s full cooperation throughout the investigation. Biomet further agreed in its Consent to disgorge profits and pay prejudgment interest in the aggregate amount of $5.6 million. | |
In October 2013, Biomet became aware of certain alleged improprieties regarding its operations in Brazil and Mexico. Biomet retained counsel and other experts to investigate both matters. Based on the results of the investigation, Biomet terminated, suspended or otherwise disciplined certain of the employees and executives involved in these matters, and took certain other remedial measures. Additionally, pursuant to the terms of the DPA, in April 2014, Biomet disclosed these matters to the independent compliance monitor and to the DOJ and SEC. | |
On July 2, 2014, the SEC issued a subpoena to Biomet requiring that Biomet produce certain documents relating to such matters. Moreover, pursuant to the DPA, the DOJ has sole discretion to determine whether conduct by Biomet constitutes a violation or breach of the DPA. If the DOJ determines that the conduct underlying these investigations constitutes a violation or breach of the DPA, the DOJ could, among other things, extend or revoke the DPA or prosecute Biomet and/or the involved employees and executives. Biomet continues to cooperate with the SEC and DOJ and expects that discussions with the SEC and the DOJ will continue. | |
U.S. Department of Justice EBI Products Investigations and Other Matters | |
In June 2013, Biomet received a subpoena from the U.S. Attorney’s Office for the District of New Jersey requesting various documents relating to the fitting of custom-fabricated or custom-fitted orthoses, or bracing, to patients in New Jersey, Texas and Washington. The Company has produced responsive documents and is fully cooperating with the request of the U.S. Attorney’s Office. The Company can make no assurances as to the time or resources that will be needed to devote to this inquiry or its final outcome. | |
In February 2010, Biomet received a subpoena from the Office of the Inspector General of the U.S. Department of Health and Human Services requesting various documents relating to agreements or arrangements between physicians and the Company’s Interpore Cross subsidiary for the period from 1999 through the present and the marketing and sales activities associated with Interpore Cross’ spinal products. Biomet is cooperating with the request of the Office of the Inspector General. The Company can make no assurances as to the time or resources that will be needed to devote to this inquiry or its final outcome. | |
In April 2009, Biomet received an administrative subpoena from the U.S. Attorney’s Office for the District of Massachusetts requesting various documents relating primarily to the Medicare reimbursement of and certain business practices related to the Company’s EBI subsidiary’s non-invasive bone growth stimulators. It is the Company’s understanding that competitors in the non-invasive bone growth stimulation market received similar subpoenas. The Company received subsequent subpoenas in connection with the investigation in September 2009, June 2010, February 2011 and March 2012 along with several informal requests for information. Biomet has produced responsive documents and is fully cooperating in the investigation. | |
In April 2009, the Company became aware of a qui tam complaint alleging violations of the federal and various state False Claims Acts filed in the United States District Court for the District of Massachusetts, where it is currently pending. Biomet, Parent, and several of the Company’s competitors in the non-invasive bone growth stimulation market were named as defendants in this action. The allegations in the complaint are similar in nature to certain categories of requested documents in the above-referenced administrative subpoenas. The U.S. government has not intervened in the action. The Company is vigorously defending this matter and intends to continue to do so. The Company can make no assurances as to the time or resources that will be needed to devote to this investigation or its final outcome. | |
U.S. Department of Justice Civil Division Investigation | |
In September 2010, Biomet received a Civil Investigative Demand (“CID”) issued by the U.S. Department of Justice—Civil Division pursuant to the False Claims Act. The CID requests that the Company provide documents and testimony related to allegations that Biomet, OtisMed Corp. and Stryker Corp. have violated the False Claims Act relating to the marketing of, and payment submissions for, OtisMed’s OtisKnee® (a registered trademark of OtisMed Corporation) knee replacement system. The Company has produced responsive documents and is fully cooperating in the investigation. | |
Product Liability | |
The Company has received claims for personal injury associated with its metal-on-metal hip products. The Company's accrual for contingencies for claims associated with metal-on-metal hip products at May 31, 2014 and 2013 is $123.5 million and $23.5 million, respectively. The pre-trial management of certain of these claims has been consolidated in a multi-district proceeding in a federal court in South Bend, Indiana. Certain other claims are pending in various state courts. The Company believes the number of claims continues to increase incrementally due to the negative publicity regarding metal-on-metal hip products generally. The Company believes it has data that supports the efficacy and safety of its metal-on-metal hip products, and the Company intends to vigorously defend itself in these matters. The Company currently accounts for these claims in accordance with its standard product liability accrual methodology on a case by case basis. Given the substantial or indeterminate amounts sought in these matters, and the inherent unpredictability of such matters, an adverse outcome in these matters in excess of the amounts included in the Company’s accrual for contingencies could have a material adverse effect on our financial condition, results of operations and cash flow. | |
The Company accrues anticipated costs of settlement, damages, and loss of product liability claims based on historical experience or to the extent specific losses are probable and estimable. If the estimate of a probable loss is in a range and no amount within the range is more likely, the Company accrues the minimum amount of the range. Such estimates and any subsequent changes in estimates may result in adjustments to the Company’s operating results in the future. The Company has self-insured reserves against product liability claims with insurance coverage above the retention limits. There are various other claims, lawsuits and disputes with third parties, investigations and pending actions involving various allegations against it. Product liability claims are routinely reviewed by the Company’s insurance carriers and management routinely reviews all claims for purposes of establishing ultimate loss estimates. | |
As of August 8, 2014, the Company is a defendant in 2,434 product liability lawsuits relating to metal-on-metal hip implants, most of which were filed in 2014. The majority of these cases involve the M2a-Magnum hip system, 502 cases involve the M2a-38 hip system, 93 involve the M2a-Taper system, and 15 involve the M2a-Ringloc system. The cases are currently venued in various state and federal courts. 2,322 federal cases have been consolidated in one multi-district proceeding in the U.S. District Court for the Northern District of Indiana. The Company has seen a decrease in the number of claims filed since the last date to participate in the settlement reached in the multi-district litigation involving our metal-on-metal hip systems expired in April 2014. | |
On February 3, 2014, the Company announced the settlement of the Multi-District Litigation entitled MDL 2,391 - In Re: Biomet M2a-Magnum Hip Implant Product Liability Litigation. Lawsuits filed in the MDL by April 15, 2014 may participate in the settlement. The Company continues to evaluate the inventory of lawsuits in the MDL pursuant to the categories and procedures set forth in the settlement agreement, and as such the final payment amount is uncertain. As of May 31, 2014, the Company accrued $123.5 million for contingencies associated with metal-on-metal hip products, which is increased from $50.0 million as of November 30, 2013. | |
The Company believes that the payments under the settlement will exhaust its self-insured retention under the Company’s insurance program, which is $50.0 million. If this should occur, the Company would submit an insurance claim for the amount by which ultimate losses under the settlement exceed the self-insured retention amount. The Company maintains $100.0 million of third-party insurance coverage. The Company’s insurance carriers have been placed on notice of the claims associated with metal-on-metal hip products that are subject to the settlement and have been placed on notice of the terms of the settlement. As is customary in these situations, certain of the Company’s insurance carriers have reserved all rights under their respective policies. The Company has received a letter from one of its carriers denying coverage, and certain of its other insurance carriers could also deny coverage for some or all of the Company’s insurance claims. The Company continues to believe its contracts with the insurance carriers are enforceable for these claims and the settlement agreement. However, the Company would be responsible for any amounts that its insurance carriers do not cover or for the amount by which ultimate losses exceed the amount of the Company’s third-party insurance coverage. The settlement does not affect certain other claims relating to the Company’s metal-on-metal hip products that are pending in various state courts, or other claims that may be filed in the future. The Company is currently assessing any potential receivables to be recorded for recoveries from the insurance carriers. As of May 31, 2014 no receivable has been recorded. | |
Future revisions in the Company’s estimates of these provisions could materially impact its results of operations and financial position. The Company uses the best information available to determine the level of accrued product liabilities, and the Company believes its accruals are adequate. | |
Intellectual Property Litigation | |
On May 3, 2013, Bonutti Skeletal Innovations LLC, a company formed to hold certain patents acquired from Dr. Peter M. Bonutti and an affiliate of patent licensing firm Acacia Research Group LLC, filed suit against us in the U.S. District Court for the Eastern District of Texas, alleging a failure to pay royalties due under a license agreement with Dr. Bonutti, misuse of confidential information and infringement of U.S. Patent Nos. 5,921,986; 6,099,531; 6,423,063; 6,638,279; 6,702,821; 7,070,557; 7,087,073; 7,104,996; 7,708,740; 7,806,896; 7,806,897; 7,828,852; 7,931,690; 8,133,229; and 8,147,514. Prior to the filing of this lawsuit, on March 8, 2013, the Company filed a complaint for declaratory judgment with the U.S. District Court for the Northern District of Indiana seeking a judgment of non-infringement and invalidity of the patents at issue, and Acacia Research Group LLC entered counterclaims of infringement seeking damages in an amount yet to be determined and injunctive relief. On September 17, 2013, the May 3, 2013 case filed in the Eastern District of Texas was dismissed. On March 31, 2014, the Company entered into a Settlement and License Agreement with Bonutti Skeletal Innovations LLC settling all claims related to U.S. Patents 5,921,986, 6,638,279, 7,070,557, 7,087,073, and 8,147,514 for a one-time payment, and on June 25, 2014, the U.S. District Court for the Northern District of Indiana issued an order dismissing the claims related to these patents with prejudice. The Company is vigorously defending this matter and believes that its defenses against infringement for the patents remaining in the suit are valid and meritorious. The Company can make no assurances as to the time or resources that will be needed to devote to this litigation or its final outcome. | |
In December 2008, Heraeus Kulzer GmbH (“Heraeus”), initiated legal proceedings in Germany against Biomet, Biomet Europe BV and certain other subsidiaries, alleging that Biomet and Biomet Europe BV misappropriated Heraeus trade secrets when developing Biomet Europe’s Refobacin and Biomet Bone Cement line of cements, which are referred to as European Cements in this consent solicitation statement/prospectus. The lawsuit sought to preclude the defendants from producing, marketing and offering for sale their current line of European Cements and to compensate Heraeus for any damages incurred (alleged to be in excess of €30.0 million). On December 20, 2012, the trial court dismissed Biomet, Biomet Europe BV, Biomet Deutschland GmbH and other defendants from the lawsuit. Biomet Orthopaedics Switzerland GmbH was the only Biomet entity remaining as a defendant. | |
Following an appeal by Heraeus, on June 5, 2014, the German appeals court (i) enjoined Biomet, 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. Damages have not been determined. The judgment is not final and the defendants will seek review (including review of the appeals court ruling that no further review may be sought) from Germany’s Supreme Court. The defendants issued a bank guaranty in favor of Heraeus for €11.25 million in order to stay the judgment. During the pendency of the stay, the defendants were entitled to continue the manufacture, marketing, sale and offering of European Cements in their current composition. On July 3, 2014, Heraeus offered security and may now execute the judgment in Germany at any time. If Heraeus were to execute the judgment, Biomet, Biomet Europe BV and Biomet Deutschland GmbH would be immediately enjoined from the manufacture, marketing, sale and offering of European Cements in Germany. While Heraeus has indicated that it intends to take the position that the judgment would prohibit the manufacture, marketing, sale and offering of European Cements outside of Germany as well, Biomet, Biomet Europe BV and Biomet Deutschland GmbH will vigorously contest any attempt to extend the effect of the judgment beyond Germany. | |
No prediction can be made as to the likelihood of review being granted by Germany’s Supreme Court nor can any assurance be made as to the time or resources that will be needed to devote to this litigation or its final outcome. | |
Other Matters | |
There are various other claims, lawsuits, disputes with third parties, investigations and pending actions involving various allegations against the Company incident to the operation of its business, principally product liability and intellectual property cases. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be resolved unfavorably to the Company. The Company accrues for losses that are deemed to be probable and subject to reasonable estimate. | |
Based on the advice of the Company’s counsel in these matters, it is unlikely that the resolution of any of these matters and any liabilities in excess of amounts provided will be material to the Company’s financial position, results of operations or cash flows. |
Related_Parties
Related Parties | 12 Months Ended |
31-May-14 | |
Related Party Transactions [Abstract] | ' |
Related Parties | ' |
Related Parties. | |
Management Services Agreement | |
Upon completion of the 2007 Acquisition, Biomet entered into a management services agreement with certain affiliates of the Principal Stockholders, pursuant to which such affiliates of the Principal Stockholders or their successors assigns, affiliates, officers, employees, and/or representatives and third parties (collectively, the “Managers”) provide management, advisory, and consulting services to the Company. Pursuant to such agreement, the Managers received a transaction fee equal to 1% of total enterprise value of the 2007 Acquisition for the services rendered by such entities related to the 2007 Acquisition upon entering into the agreement, and the Principal Stockholders receive an annual monitoring fee equal to 1% of the Company’s annual Adjusted EBITDA (as defined in the credit agreement) as compensation for the services rendered and reimbursement for out-of-pocket expenses incurred by the Managers in connection with the agreement and the 2007 Acquisition. The Company is required to pay the Principal Stockholders the monitoring fee on a quarterly basis in arrears. The total amount of Principal Stockholder fees was $11.1 million, $11.0 million and $10.3 million for the years ended May 31, 2014, 2013 and 2012, respectively. The management services agreement includes customary exculpation and indemnification provisions in favor of the Managers and their affiliates. The Company is also required by the management services agreement to pay certain subsequent fees for advice rendered in connection with financings or refinancings (equity or debt), acquisitions, dispositions, spin-offs, split-offs, dividends, recapitalizations, an initial underwritten public offering and change of control transactions involving the Company. Upon completion of the Zimmer Merger, which represents a change in control, the Company expects to pay a one-time fee to affiliates of its Principal Stockholders in the amount of $88.0 million. | |
Amended and Restated Limited Liability Company Operating Agreement of LVB Holding | |
On September 27, 2007, certain investment funds associated with or designated by the Principal Stockholders, or the Principal Stockholder Funds, entered into an amended and restated limited liability company operating agreement, or the “LLC Agreement,” in respect of LVB Holding. The LLC Agreement contains agreements among the parties with respect to the election of the Company’s directors and the directors of its parent companies, restrictions on the issuance or transfer of interests in the Company and other corporate governance provisions (including the right to approve various corporate actions). | |
Pursuant to the LLC Agreement, each of the Principal Stockholders has the right to nominate, and has nominated, two directors to Biomet’s and LVB’s Board of Directors and also is entitled to appoint one non-voting observer to Biomet’s and LVB’s Board of Directors for so long as such Principal Stockholder remains a member of LVB Holding. In addition to their right to appoint non-voting observers to Biomet’s and LVB’s Board of Directors, certain of the Principal Stockholder Funds have certain other management rights to the extent that any such Principal Stockholder Fund is required to operate as a “venture capital operating company” as defined in the regulations issued by the U.S. Department of Labor at Section 2510.3-101 of Part 2510 of Chapter XXV, Title 29 of the Code of Federal Regulations, or any successor regulations. Each Principal Stockholder’s right to nominate directors is freely assignable to funds affiliated with such Principal Stockholder, and is assignable to non-affiliates of such Principal Stockholder only if the assigning Principal Stockholder transfers its entire interest in LVB Holding not previously transferred and only with the prior written consent of the Principal Stockholders holding at least 70% of the membership interests in LVB Holding, or “requisite Principal Stockholder consent”. In addition to their rights under the LLC Agreement, the Principal Stockholders may also appoint one or more persons unaffiliated with any of the Principal Stockholders to the Board of Directors. Following Purchaser’s purchase of the Shares tendered in the Offer, the Principal Stockholders jointly appointed Dane A. Miller, Ph.D. to the Board of Directors in addition to the two directors appointed by each of the Principal Stockholders. In addition, as provided under the LLC Agreement, Jeffrey R. Binder, the CEO of Biomet serves on Biomet’s and LVB’s Board of Directors. | |
Pursuant to the LLC Agreement, each director has one vote for purposes of any Board of Directors action, and all decisions of the Board of Directors require the approval of a majority of the directors designated by the Principal Stockholders. In addition, the LLC Agreement provides that certain major decisions regarding the Company or its parent companies require the requisite Principal Stockholder consent. | |
The LLC Agreement includes certain customary agreements with respect to restrictions on the issuance or transfer of interests in Biomet and LVB, including preemptive rights, tag-along rights and drag-along rights. | |
The Co-Investors have also been admitted as members of LVB Holding, both directly and through Principal Stockholder-controlled investment vehicles. Although the Co-Investors are therefore parties to the LLC Agreement, they have no rights with respect to the election of Biomet’s or LVB’s directors or the approval of its corporate actions. | |
The Principal Stockholders have also caused LVB Holding and Parent to enter into an agreement with the Company obligating the Company and Parent to take all actions necessary to give effect to the corporate governance, preemptive rights, transfer restriction and certain other provisions of the LLC Agreement, and prohibiting the Company and Parent from taking any actions that would be inconsistent with such provisions of the LLC Agreement. | |
Registration Rights Agreement | |
The Principal Stockholder Funds and the Co-Investors also entered into a registration rights agreement with Holding, LVB and Biomet upon the closing of the 2007 Acquisition. Pursuant to this agreement, the Principal Stockholder Funds have the power to cause LVB Holding, LVB and Biomet to register their, the Co-Investors’ and certain other persons’ equity interests under the Securities Act and to maintain a shelf registration statement effective with respect to such interests. The agreement also entitles the Principal Stockholder Funds and the Co-Investors to participate in any future registration of equity interests under the Securities Act that LVB Holding, LVB or Biomet may undertake. Certain trusts associated with Dr. Dane A. Miller, Ph.D., one of our directors, are also parties to the registration rights agreement and benefit from its provisions. | |
On August 8, 2012 and October 2, 2012, Goldman, Sachs & Co. and the other initial purchasers of the new senior notes and new senior subordinated notes entered into registration rights agreements with Biomet. Pursuant to these agreements, Biomet is obligated, for the sole benefit of Goldman, Sachs & Co. in connection with its market-making activities with respect to the new senior notes and new senior subordinated notes, to file a registration statement under the Securities Act in a form approved by Goldman, Sachs & Co. and to keep such registration statement continually effective for so long as Goldman, Sachs & Co. may be required to deliver a prospectus in connection with transactions in senior and senior subordinated notes due 2020 and to supplement or make amendments to such registration statement as when required by the rules and regulations applicable to such registration statement. | |
Management Stockholders’ Agreements | |
On September 13, 2007 and November 6, 2007, LVB Holding, LVB and the Principal Stockholder Funds entered into stockholders agreements with certain of the Company’s senior executives and other management stockholders. Pursuant to the terms of the LVB Acquisition, Inc. Management Equity Incentive Plan, LVB Acquisition, Inc. Restricted Stock Unit Plan and LVB Acquisition, Inc. 2012 Restricted Stock Unit Plan, participants who exercise their vested options or settle their vested restricted stock units are required to become parties to the agreement dated November 6, 2007. The stockholder agreements contain agreements among the parties with respect to restrictions on the transfer and issuance of shares, including preemptive, drag-along, tag-along, and call/put rights. | |
Agreements with Dr. Dane A. Miller, Ph.D. | |
On January 14, 2010, Biomet entered into a consulting agreement with Dr. Dane A. Miller, Ph.D., pursuant to which it will pay Dr. Miller a consulting fee of $0.25 million per fiscal year for Dr. Miller’s consulting services and will reimburse Dr. Miller for out-of-pocket fees and expenses relating to an off-site office and administrative support in an amount of $0.1 million per year. The term of the agreement extends through the earlier of September 1, 2011, an initial public offering or a change of control. The agreement also contains certain restrictive covenants prohibiting Dr. Miller from competing with the Company and soliciting employees of the Company during the term of the agreement and for a period of one year following such term. On September 6, 2011, the Company entered into an amendment to the consulting agreement with Dr. Miller, pursuant to which it agreed to increase the expenses relating to an off-site office and administrative support from $0.1 million per year to $0.15 million per year and extend the term of the agreement through the earlier of September 1, 2013, an initial public offering or a change of control. On August 19, 2013, the Company entered into an amendment to the consulting agreement with Dr. Miller, pursuant to which it agreed to extend the term of the agreement through the earlier of September 1, 2014, an initial public offering or a change of control. On April 22, 2014, Biomet entered into a third amendment to the consulting agreement with Dr. Miller, pursuant to which it agreed to pay him, upon a termination of his consulting agreement, consulting fees owed to date and a termination fee of $2 million upon the earlier of a change in control or an initial public offering, provided such event occurs prior to January 1, 2016. Dr. Miller received payments under the consulting agreement of $0.4 million, $0.4 million and $0.4 million for the years ended May 31, 2014, 2013 and 2012, respectively. | |
In addition, on April 25, 2008, LVB Holding, LVB and two trusts associated with Dr. Miller, the Dane Miller Trust and the Mary Louise Miller Trust, entered into a stockholders agreement. Certain additional trusts associated with Dr. Miller have since become party to that stockholders agreement. The stockholder agreement contains agreements among the parties with respect to restriction on transfer of shares, including rights of first offer, drag-along and tag-along rights. | |
Indemnification Priority Agreement | |
On January 11, 2010, Biomet and LVB entered into an indemnification priority agreement with the Principal Stockholders (or certain affiliates designated by the Principal Stockholders) pursuant to which Biomet and LVB clarified certain matters regarding the existing indemnification and advancement of expenses rights provided by Biomet and LVB pursuant to their respective charters and the management services agreement described above. In particular, pursuant to the terms of the indemnification agreement, Biomet acknowledged that as among Biomet, LVB and the Principal Stockholders and their respective affiliates, the obligation to indemnify or advance expenses to any director appointed by any of the Principal Stockholders will be payable in the following priority: Biomet will be the primary source of indemnification and advancement; LVB will be the secondary source of indemnification and advancement; and any obligation of a Principal Stockholder-affiliated indemnitor to indemnify or advance expenses to such director will be tertiary to Biomet’s and, then, LVB obligations. In the event that either Biomet or LVB fails to indemnify or advance expenses to any such director in contravention of its obligations, and any Principal Stockholder-affiliated indemnitor makes any indemnification payment or advancement of expenses to such director on account of such unpaid liability, such Principal Stockholder-affiliated indemnitor will be subrogated to the rights of such director under any such Biomet or LVB indemnification agreement. | |
Equity Healthcare | |
Effective January 1, 2009, Biomet entered into an employer health program agreement with Equity Healthcare LLC (“Equity Healthcare”). Equity Healthcare negotiates with providers of standard administrative services for health benefit plans as well as other related services for cost discounts and quality of service monitoring capability by Equity Healthcare. Because of the combined purchasing power of its client participants, Equity Healthcare is able to negotiate pricing terms for providers that are believed to be more favorable than the companies could obtain for themselves on an individual basis. | |
In consideration for Equity Healthcare’s provision of access to these favorable arrangements and its monitoring of the contracted third parties’ delivery of contracted services to the Company, the Company pays Equity Healthcare a fee of $2 per participating employee per month (“PEPM Fee”). As of May 31, 2013, the Company had approximately 3,275 employees enrolled in its health benefit plans in the United States. | |
Equity Healthcare may also receive a fee (“Health Plan Fees”) from one or more of the health plans with whom Equity Healthcare has contractual arrangements if the total number of employees joining such health plans from participating companies exceeds specified thresholds. If and when Equity Healthcare reaches the point at which the aggregate of its receipts from the PEPM Fee and the Health Plan Fees have covered all of its allocated costs, it will apply the incremental revenues derived from all such fees to (a) reduce the PEPM Fee otherwise payable by the Company; (b) avoid or reduce an increase in the PEPM Fee that might otherwise have occurred on contract renewal; or (c) arrange for additional services to the Company at no cost or reduced cost. | |
Equity Healthcare is an affiliate of Blackstone, with whom Timur Akazhanov and Chinh Chu, members of the Company’s Board of Directors, are affiliated and in which they may have an indirect pecuniary interest. | |
There were payments of $0.1 million made during each of the years ended May 31, 2014, 2013 and 2012. | |
Core Trust Purchasing Group Participation Agreement | |
Effective May 1, 2007, Biomet entered into a 5-year participation agreement (“Participation Agreement”) with Core Trust Purchasing Group, a division of HealthTrust Purchasing Corporation (“CPG”), designating CPG as the Company’s exclusive “group purchasing organization” for the purchase of certain products and services from third party vendors. Effective June 1, 2012, Biomet entered into an amendment to extend the term of the Participation Agreement with CPG. CPG secures from vendors pricing terms for goods and services that are believed to be more favorable than participants in the group purchasing organization could obtain for themselves on an individual basis. Under the participation agreement, the Company must purchase 80% of the requirements of its participating locations for core categories of specified products and services, from vendors participating in the group purchasing arrangement with CPG or CPG may terminate the contract. In connection with purchases by its participants (including the Company), CPG receives a commission from the vendors in respect of such purchases. The total amount of fees paid to CPG was $0.6 million, $0.8 million and $0.5 million for the years ended May 31, 2014, 2013 and 2012, respectively. | |
Although CPG is not affiliated with Blackstone, in consideration for Blackstone’s facilitating Biomet’s participation in CPG and monitoring the services CPG provides to the Company, CPG remits a portion of the commissions received from vendors in respect of the Company’s purchases under the Participation Agreement to an affiliate of Blackstone, with whom Timur Akazhanov and Chinh Chu, members of the Company’s Board of Directors, are affiliated and in which they may have an indirect pecuniary interest. | |
Refinancing Activities | |
Goldman Sachs served as a dealer manager and arranger for the refinancing activities explained in Note 7 – Debt and received fees of $1.3 million during the year ended May 31, 2013 for their services. Goldman Sachs also received an underwriting discount of $2.3 million during the first quarter of fiscal year 2013 as one of the initial purchasers of the $1.0 billion aggregate principal amount note offering of 6.50% senior notes due 2020, an underwriting discount of $2.6 million during the second quarter of fiscal year 2013 as of one the initial purchasers of the $825.0 million aggregate principal amount note add-on offering to the 6.50% senior notes due 2020 and an underwriting discount of $2.5 million during the second quarter of fiscal year 2013 as one of the initial purchasers of the $800.0 million aggregate principal amount note offering of the 6.50% senior subordinated notes due 2020. | |
Other | |
Biomet currently holds interest rate swaps with Goldman Sachs. As part of this relationship, the Company receives information from Goldman Sachs that allows it to perform effectiveness testing on a monthly basis. | |
Biomet may from time to time, depending upon market conditions, seek to purchase debt securities issued by Biomet or its subsidiaries in open market or privately negotiated transactions or by other means. Biomet understands that its indirect controlling stockholders may from time to time also seek to purchase debt securities issued by the Company or its subsidiaries in open market or privately negotiated transactions or by other means. | |
The Company engaged Capstone Consulting LLC, a consulting company that works exclusively with KKR and its portfolio companies, to provide analysis for certain restructuring initiatives. The Company or its affiliates paid Capstone $2.2 million and $1.9 million during the years ended May 31, 2013 and 2012, respectively, with no payments during the year ended May 31, 2014. | |
Capital Contributions and Share Repurchases | |
At the direction of LVB, Biomet may fund the repurchase of common shares of its parent company of $0.1 million and $1.3 million for the years ended May 31, 2013 and 2012, respectively, from former employees pursuant to the LVB Acquisition, Inc. Management Stockholders’ Agreement. There were no repurchases of common shares during the year ended May 31, 2014. There were no additional contributions for the years ended May 31, 2014, 2013 and 2012. |
Schedule_ICondensed_Financial_
Schedule IbCondensed Financial Information (Notes) | 12 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Schedule IbCondensed Financial Information | ' | ||||||||||||
LVB Acquisition, Inc. Schedule I—Condensed Financial Information | |||||||||||||
LVB Acquisition, Inc. Parent Only Condensed Balance Sheets | |||||||||||||
(in millions, except shares) | May 31, | May 31, | |||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Investment in wholly owned subsidiary | $ | 2,109.20 | $ | 1,968.60 | |||||||||
Total assets | $ | 2,109.20 | $ | 1,968.60 | |||||||||
Liabilities & Shareholders’ Equity | |||||||||||||
Total liabilities | — | — | |||||||||||
Shareholders’ equity: | |||||||||||||
Common stock, par value $0.01 per share; 740,000,000 shares authorized; 552,484,996 and 552,359,416 shares issued and outstanding | $ | 5.5 | $ | 5.5 | |||||||||
Contributed and additional paid-in capital | 5,681.50 | 5,662.00 | |||||||||||
Accumulated deficit | (3,617.1 | ) | (3,693.0 | ) | |||||||||
Accumulated other comprehensive income (loss) | 39.3 | (5.9 | ) | ||||||||||
Total shareholders’ equity | 2,109.20 | 1,968.60 | |||||||||||
Total liabilities and shareholders’ equity | $ | 2,109.20 | $ | 1,968.60 | |||||||||
LVB Acquisition, Inc. Parent Only Condensed Statements of Operations and Comprehensive Income (Loss) | |||||||||||||
(in millions) | For the Year-Ended May 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equity in net income (loss) of subsidiary | $ | 75.9 | $ | (623.4 | ) | $ | (458.8 | ) | |||||
Net income (loss) | 75.9 | (623.4 | ) | (458.8 | ) | ||||||||
Other comprehensive income (loss) | — | — | — | ||||||||||
Comprehensive income (loss) | $ | 75.9 | $ | (623.4 | ) | $ | (458.8 | ) | |||||
LVB Acquisition, Inc. Parent Only Condensed Statements of Cash Flows | |||||||||||||
For the Year-Ended May 31, | |||||||||||||
(in millions) | 2014 | 2013 | 2012 | ||||||||||
Cash flows provided by (used in) operating activities: | |||||||||||||
Net income (loss) | $ | 75.9 | $ | (623.4 | ) | $ | (458.8 | ) | |||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||
Equity in net income (loss) of subsidiary | (75.9 | ) | 623.4 | 458.8 | |||||||||
Net cash provided by operating activities | — | — | — | ||||||||||
Cash flows provided by (used in) investing activities: | |||||||||||||
Net cash used in investing activities | — | — | — | ||||||||||
Cash flows provided by (used in) financing activities: | |||||||||||||
Equity: | |||||||||||||
Option exercise | 1.3 | — | — | ||||||||||
Cash dividend from (to) Biomet, Inc. | (1.3 | ) | 0.1 | 1.3 | |||||||||
Repurchase of LVB Acquisition, Inc. shares | — | (0.1 | ) | (1.3 | ) | ||||||||
Net cash used in financing activities | — | — | — | ||||||||||
Increase (decrease) in cash and cash equivalents | — | — | — | ||||||||||
Cash and cash equivalents, beginning of period | — | — | — | ||||||||||
Cash and cash equivalents, end of period | $ | — | $ | — | $ | — | |||||||
Note 1—Summary of Significant Accounting Policies and Nature of Operations. | |||||||||||||
LVB Acquisition, Inc. (“Parent”) was incorporated as part of the 2007 Acquisition. Parent has no other operations beyond its ownership of Biomet, Inc. and its subsidiaries (“Biomet”). | |||||||||||||
The condensed parent company financial information includes the activity of the Parent and its investment in Biomet using the equity method only. The consolidated activity of Parent and its subsidiaries are not included and are meant to be read in conjunction with the LVB Acquisition, Inc. consolidated financial statements included elsewhere in this annual report. | |||||||||||||
Note 2—Guarantees | |||||||||||||
Parent fully and unconditionally guarantees the senior secured credit facilities, the cash flow revolving credit facilities and asset-based revolving credit facilities. | |||||||||||||
Note 3—Dividends from Subsidiaries | |||||||||||||
Parent paid a dividend of $1.3 million during the year ended May 31, 2014 and received dividends of $0.1 million and $1.3 million for the years ended May 31, 2013 and 2012, respectively. The cash was used to call purchased shares for certain former employees. |
Schedule_IIValuation_and_Quali
Schedule IIbValuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Schedule IIbValuation and Qualifying Accounts | ' | |||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||
For the years ended May 31, 2014, 2013 and 2012: | ||||||||||||||||
(in millions) | Additions | |||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | |||||||||||
Beginning | Costs and | Other Accounts | End of Year | |||||||||||||
of Period | Expenses | |||||||||||||||
Allowance for doubtful receivables: | ||||||||||||||||
For the year ended | ||||||||||||||||
May 31, 2014 | $ | 33.5 | $ | 10.7 | $ 0.5(B) | $ (12.8)(A)(C) | $ | 31.9 | ||||||||
For the year ended | ||||||||||||||||
May 31, 2013 | $ | 36.5 | $ | 17.7 | $ (0.5)(B) | $ (20.2)(A)(C) | $ | 33.5 | ||||||||
For the year ended | ||||||||||||||||
May 31, 2012 | $ | 38.2 | $ | 15.7 | $ (16.2)(B) | $ (1.2)(A) | $ | 36.5 | ||||||||
(A) | Uncollectible accounts written off. | |||||||||||||||
(B) | Primarily effect of foreign currency translation. | |||||||||||||||
(C) | Includes $5.1 million related to the bracing divestiture. |
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | |||||||||||||||||||
31-May-14 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Quarterly Results (Unaudited) | ' | |||||||||||||||||||
Quarterly Results (Unaudited) | ||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||
Quarter ended | ||||||||||||||||||||
(in millions) | 31-Aug-13 | 30-Nov-13 | 28-Feb-14 | 31-May-14 | Fiscal year ended | |||||||||||||||
31-May-14 | ||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||
Net sales | $ | 730.7 | $ | 825.7 | $ | 822.5 | $ | 844.5 | $ | 3,223.40 | ||||||||||
Gross profit | 522.7 | 570.6 | 495.6 | 594.3 | 2,183.20 | |||||||||||||||
Net income (loss) | 31.1 | 4.9 | (65.9 | ) | 105.8 | 75.9 | ||||||||||||||
Fiscal 2013 | ||||||||||||||||||||
• | Net loss for the third and fourth quarters of fiscal 2013 were impacted by goodwill and intangible asset impairment charges of $567.4 million of which $334.1 million was recorded during the third quarter, primarily due to the impact of continued austerity measures on procedural volumes and pricing in certain European countries when compared to the Company’s prior projections used to establish the fair value of goodwill for our Europe reporting unit and primarily due to declining industry market growth rates in certain European and Asia Pacific markets and corresponding unfavorable margin trends when compared to the Company’s prior projections used to establish the fair value of goodwill and intangible assets for our dental reconstructive reporting unit. | |||||||||||||||||||
Quarter ended | ||||||||||||||||||||
(in millions) | August 31, 2012 | November 30, 2012 | February 28, 2013 | May 31, 2013 | Fiscal year ended | |||||||||||||||
31-May-13 | ||||||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||
Net sales | $ | 707.4 | $ | 790.1 | $ | 771.5 | $ | 783.9 | $ | 3,052.90 | ||||||||||
Gross profit | 507 | 582.4 | 533 | 557.1 | 2,179.50 | |||||||||||||||
Net loss | (31.5 | ) | (66.2 | ) | (304.5 | ) | (221.2 | ) | (623.4 | ) |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies and Nature of Operations (Policies) | 12 Months Ended |
31-May-14 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation—The accompanying consolidated financial statements include the accounts of LVB and its subsidiaries (individually and collectively referred to as “Biomet” or the “Company”). The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. | |
Products | ' |
Products—The Company operates in one reportable business segment, musculoskeletal products, which includes the design, manufacture and marketing of products in six major categories: Knees, Hips, Sports, Extremities, Trauma (“S.E.T.”), Spine, Bone Healing and Microfixation, Dental and Cement, Biologics and Other Products. The Company has three geographic markets: United States, Europe and International. | |
Knees and Hips—Orthopedic reconstructive implants are used to replace joints that have deteriorated as a result of disease (principally osteoarthritis) or injury. Reconstructive joint surgery involves the modification of the area surrounding the affected joint and the implantation of one or more manufactured components. | |
S.E.T.—The Company manufactures and distributes a number of sports medicine products (used in minimally-invasive orthopedic surgical procedures). Extremity reconstructive implants are used to replace joints other than hips and knees that have deteriorated as a result of disease or injury. Our key reconstructive joint in this product category is the shoulder, but the Company produces other joints as well. Trauma devices are used for setting and stabilizing bone fractures to support and/or augment the body’s natural healing process. Trauma products include plates, screws, nails, pins and wires designed to internally stabilize fractures; devices utilized to externally stabilize fractures when alternative methods of fixation are not suitable; and implantable bone growth stimulation devices for trauma. | |
Spine, Bone Healing and Microfixation Products—The Company’s spine products include spinal fixation systems for cervical, thoracolumbar, deformity correction and spacer applications; implantable bone growth stimulation devices for spine applications; and osteobiologics, including bone substitute materials, as well as allograft services for spinal applications. Bone healing products include non-invasive bone growth stimulation devices used for spine and trauma indications. Microfixation includes products for patients in the neurosurgical and craniomaxillofacial reconstruction markets, as well as thoracic solutions for fixation and stabilization of the bones of the chest. | |
Dental Products—Dental reconstructive devices and associated instrumentation are used for oral rehabilitation through the replacement of teeth and repair of hard and soft tissues. The Company also offers crown and bridge products. | |
Cement, Biologics and Other Products—The Company manufactures and distributes bone cements and cement delivery systems, autologous therapies and other products, including operating room supplies, casting materials, general surgical instruments, wound care products and other miscellaneous surgical products. | |
Effect of Foreign Currency | ' |
Effect of Foreign Currency—Assets and liabilities of foreign subsidiaries are translated at rates of exchange in effect at the close of their calendar month end. Revenues and expenses are translated at the average exchange rates during the period. Translation gains and losses are accumulated within accumulated other comprehensive income (loss) as a separate component of shareholders’ equity. Foreign currency transaction gains and losses are included in other (income) expense. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents—The Company considers all investments that are highly liquid at the date acquired and have original maturities of three months or less to be cash equivalents. | |
Investments | ' |
Investments—The Company invests the majority of its excess cash in money market funds. The Company also holds a time deposit and corporate securities. The Company accounts for its investments in equity securities in accordance with guidance issued by the Financial Accounting Standards Board (“FASB”), which requires certain securities to be categorized as trading, available-for-sale or held-to-maturity. The Company also accounts for its investments under guidance for fair value measurements, which establishes a framework for measuring fair value, clarifies the definition of fair value within that framework, and expands disclosures about fair value measurements. Available-for-sale securities are carried at fair value with unrealized gains and losses, net of tax, recorded within accumulated other comprehensive income (loss) as a separate component of shareholders’ equity. The Company has no held-to-maturity investments. Trading securities are carried at fair value with the realized gains and losses, recorded within other (income) expense. The cost of investment securities sold is determined by the specific identification method. Dividend and interest income are accrued as earned. The Company reviews its investments quarterly for declines in fair value that are other-than-temporary. Investments that have declined in market value that are determined to be other-than-temporary are charged to other (income) expense, by writing that investment down to fair value. Investments are classified as short-term for those expected to mature or be sold within twelve months and the remaining portion is classified in long-term investments. | |
Other Comprehensive Income (Loss) | ' |
Other Comprehensive Income (Loss)—Other comprehensive income (loss) includes currency translation adjustments, certain derivative-related activity, changes in the value of available-for-sale investments, and actuarial gains (losses) from pension plans. The Company generally deems its foreign investments to be permanent in nature and does not provide for taxes on currency translation adjustments arising from translating the investment in a foreign currency to U.S. dollars. When the Company determines that a foreign investment is no longer permanent in nature, estimated taxes are provided for the related deferred tax liability (asset), if any, resulting from currency translation adjustments. As of May 31, 2014, foreign investments were all permanent in nature. | |
Concentration Risk of Credit Risk and Allowance for Doubful Receivables | ' |
Concentrations of Credit Risk and Allowance for Doubtful Receivables—The Company provides credit, in the normal course of business, to hospitals, private and governmental institutions and healthcare agencies, insurance providers, dental practices and laboratories, and physicians. The Company maintains an allowance for doubtful receivables based on estimated collection rates and charges actual losses to the allowance when incurred. The determination of estimated collection rates requires management judgment. | |
Other Loss Contingencies | ' |
Other Loss Contingencies—In accordance with guidance issued by the FASB for contingencies, the Company accrues anticipated costs of settlement, damages, and loss of product liability claims based on historical experience or to the extent specific losses are probable and estimable. If the estimate of a probable loss is in a range and no amount within the range is more likely, the Company accrues the minimum amount of the range. Such estimates and any subsequent changes in estimates may result in adjustments to the Company’s operating results in the future. The Company has self-insured reserves against product liability claims with insurance coverage above the retention limits. There are various other claims, lawsuits and disputes with third parties, investigations and pending actions involving various allegations against it. Product liability claims are routinely reviewed by the Company’s insurance carriers and management routinely reviews all claims for purposes of establishing ultimate loss estimates. | |
Revenue Recognition | ' |
Revenue Recognition—The Company sells product through four principal channels: (1) directly to healthcare institutions, referred to as direct channel accounts, (2) through stocking distributors and healthcare dealers, (3) indirectly through insurance companies and (4) directly to dental practices and dental laboratories. Sales through the direct and distributor/dealer channels account for a majority of net sales. Through these channels, inventory is consigned to sales agents or customers so that products are available when needed for surgical procedures. Revenue is not recognized upon the placement of inventory into consignment as the Company retains title and maintains the inventory on the balance sheet; rather, it is recognized upon implantation and receipt of proper purchase order and/or purchase requisition documentation. Pricing for products is 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 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. The Company presents on a net basis and excludes from revenue the taxes collected from customers and remitted to governmental authorities. | |
At certain locations, the Company records a contractual allowance that is offset against revenue for each sale to a non-contracted payor so that revenue is recorded at the estimated determinable price at the time of the sale. Those non-contracted payors and insurance companies in some cases do not have contracted rates for products sold, but may have pricing available for certain products through their respective web sites. The Company will invoice at its list price and establish the contractual allowance to estimate what the non-contracted payor will settle the claim for based on the information available as noted above. At certain locations, revenue is recognized on sales to stocking distributors, healthcare dealers, dental practices and dental laboratories when title to product passes to them, generally upon shipment. Certain subsidiaries allow customers to return product in the event that the Company terminates the relationship. Under those circumstances, the Company records an estimated sales return in the period in which constructive notice of termination is given to a distributor. Product returns were not significant for any period presented. | |
The Company also maintains a separate allowance for doubtful accounts for estimated losses based on its assessment of the collectability of specific customer accounts and the aging of the accounts receivable. The Company analyzes accounts receivable and historical bad debts, customer concentrations, customer solvency, current economic and geographic trends, and changes in customer payment terms and practices when evaluating the adequacy of its current and future allowance. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations, a specific allowance for bad debt is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. The Company monitors and analyzes the accuracy of the allowance for doubtful accounts estimate by reviewing past collectability and adjusts it for future expectations to determine the adequacy of the Company’s current and future allowance. The Company’s reserve levels have generally been sufficient to cover credit losses. | |
Accounting for Shipping and Handling Revenue, Fees and Costs | ' |
Accounting for Shipping and Handling Revenue, Fees and Costs—The Company classifies amounts billed for shipping and handling as a component of net sales. The related shipping and handling fees and costs as well as other distribution costs are included in cost of sales. | |
Instruments | ' |
Instruments—The Company provides instruments to surgeons to use during surgical procedures. Instruments are classified as non-current assets and are recorded as property, plant and equipment. Instruments are carried at cost, until they are placed into service and are held at book value (cost less accumulated depreciation). Depreciation is calculated using the straight-line method using a four year useful life. | |
Excess and Obsolete Inventory | ' |
Excess and Obsolete Inventory—In the Company’s industry, inventory is routinely placed at hospitals to provide the healthcare provider with the appropriate product when needed. Because product usage tends to follow a bell curve, larger and smaller sizes of inventory are provided, but infrequently used. In addition, the musculoskeletal market is highly competitive, with new products, raw materials and procedures being introduced continually, which may make those products currently on the market obsolete. The Company makes estimates regarding the future use of these products which are used to adjust inventory to the lower of cost or market. If actual product life cycles, product demand or market conditions are less favorable than those projected by management, additional inventory write-downs may be required which would affect future operating results. | |
Research and Development | ' |
Research and Development—Research and development costs are charged to expense as incurred. | |
Legal Fees | ' |
Legal Fees—Legal fees are charged to expense and are not accrued based on specific cases. | |
Income Tax | ' |
Income Taxes—There are inherent risks that could create uncertainties related to the Company’s income tax estimates. The Company adjusts estimates based on normal operating circumstances and conclusions related to tax audits. While the Company does not believe any audit finding could materially affect its financial position, there could be a material impact on its consolidated results of operations and cash flows of a given period. | |
The Company’s operations are subject to the tax laws, regulations and administrative practices of the United States, U.S. state jurisdictions and other countries in which it does business. The Company must make estimates and judgments in determining the provision for taxes for financial reporting purposes. These estimates and judgments occur in the calculation of tax credits, benefits, and deductions, and in the calculation of certain tax assets and liabilities that arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes, as well as the interest and penalties related to uncertain tax positions. Significant changes in these estimates may result in an increase or decrease to the Company’s tax provision in a subsequent period. | |
The calculation of the Company’s tax liabilities involves accounting for uncertainties in the application of complex tax regulations. The Company recognizes liabilities for uncertain tax positions (“UTPs”) based on a two-step process. The Company recognizes the tax benefit from an UTP only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The amount of UTPs is measured as appropriate for changes in facts and circumstances, such as significant amendments to existing tax law, new regulations or interpretations by the taxing authorities, new information obtained during a tax examination, or resolution of an examination. The Company believes its estimates for UTPs are appropriate and sufficient for any assessments that may result from examinations of its tax returns. The Company recognizes both accrued interest and penalties, where appropriate, related to UTPs as a component of income tax expense. | |
Certain items are included in the Company’s tax return at different times than they are reflected in its financial statements. Such timing differences create deferred tax assets and liabilities. Deferred tax assets are generally items that can be used as a tax deduction or credit in the tax return in future years but for which the Company has already recorded the tax benefit in the financial statements. The Company has recorded valuation allowances against certain of its deferred tax assets, primarily those that have been generated from net operating losses and tax credit carryforwards in certain taxing jurisdictions. In evaluating whether the Company would more likely than not recover these deferred tax assets, it has not assumed any future taxable income or tax planning strategies in the jurisdictions associated with these carryforwards where history does not support such an assumption. Implementation of tax planning strategies to recover these deferred tax assets or future income generation in these jurisdictions could lead to the reversal of these valuation allowances and a reduction of income tax expense. Deferred tax liabilities are either: (i) a tax expense recognized in the financial statements for which payment has been deferred; or (ii) an expense for which the Company has already taken a deduction on the tax return, but have not yet recognized the expense in the financial statements. | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets—The Company operates in one reportable segment and evaluates goodwill for impairment at the reporting unit level. The reporting units are based on the Company’s current administrative organizational structure and the availability of discrete financial information. | |
The Company tests its goodwill and indefinite lived intangible asset balances as of March 31 of each fiscal year for impairment. The Company tests these balances more frequently if indicators are present or changes in circumstances suggest that impairment may exist. In performing the test on goodwill, the Company utilizes the two-step approach prescribed under guidance issued by the FASB for goodwill and other intangible assets. The first step under this guidance requires a comparison of the carrying value of the reporting units, of which the Company has identified six in total, to the fair value of these units. The Company generally uses the income approach to determine the fair value of each reporting unit. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. To derive the carrying value of the Company’s reporting units, the Company assigns assets and liabilities, including goodwill, to the reporting units. These would include corporate assets, which relate to a reporting unit’s operations, and would be considered in determining fair value. The Company allocates assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based primarily on the respective revenue contribution of each reporting unit. If the carrying value of a reporting unit exceeds its fair value, the Company performs the second step of the goodwill impairment test to measure the amount of impairment loss, if any. | |
The second step of the goodwill impairment test compares the implied fair value of a reporting unit’s goodwill to its carrying value. If the Company is unable to complete the second step of the test prior to the issuance of its financial statements and an impairment loss is probable and could be reasonably estimated, the Company recognizes its best estimate of the loss in its current period financial statements and discloses that amount as an estimate. The Company then recognizes any adjustment to that estimate in subsequent reporting periods, once the Company has finalized the second step of the impairment test. | |
The Company determines the fair value of intangible assets using an income based approach to determine the fair value. The approach calculates fair value by estimating the after-tax cash flows attributable to the asset and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. The calculated fair value is compared to the carrying value to determine if any impairment exists. | |
If events or circumstances change, a determination is made by management to ascertain whether property and equipment and finite-lived intangibles have been impaired based on the sum of expected future undiscounted cash flows from operating activities. If the estimated undiscounted net cash flows are less than the carrying amount of such assets, an impairment loss is recognized in an amount necessary to write-down the assets to fair value as determined from expected future discounted cash flows. | |
Management's Estimates and Assumptions | ' |
Management’s Estimates and Assumptions—In preparing the financial statements in accordance with accounting principles generally accepted in the United States of America, management must often make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements and during the reporting period. Some of those judgments can be subjective and complex. Consequently, actual results could differ from those estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Income Taxes—In July 2013, the FASB issued ASU 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The new guidance is effective for fiscal year and interim periods beginning after December 15, 2013. The Company is currently evaluating the impact this ASU will have on its financial position, results of operations and cash flows. | |
Property, Plant and Equipment—In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360), Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update modifies the requirements for reporting discontinued operations. Under the amendments in ASU 2014-08, the definition of discontinued operation has been modified to only include those disposals of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. This update also expands the disclosure requirements for disposals that meet the definition of a discontinued operation and requires entities to disclose information about disposals of individually significant components that do not meet the definition of discontinued operations. This update is effective for annual and interim periods beginning after December 15, 2014. The Company does not expect this ASU to have an impact on its financial position, results of operations or cash flows. | |
Revenue—In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. This update is effective for annual and interim periods beginning after December 15, 2016. Early application is not permitted. This update permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the impact this ASU will have on its financial position, results of operations and cash flows. |
Recent_Acquisitions_by_Biomet_
Recent Acquisitions by Biomet (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Preliminary Purchase Price Allocation | ' | |||||||
The following table summarizes the purchase price allocation: | ||||||||
(in millions) | ||||||||
Inventory | $ | 93.7 | ||||||
Prepaid expenses and other | 2.1 | |||||||
Instruments | 29.2 | |||||||
Other property, plant and equipment | 7.2 | |||||||
Liabilities assumed | (5.6 | ) | ||||||
Intangible assets | 141.5 | |||||||
Goodwill | 11.9 | |||||||
Purchase price | $ | 280 | ||||||
The following table summarizes the preliminary purchase price allocation: | ||||||||
(in millions) | ||||||||
Cash | $ | 2 | ||||||
Accounts receivable | 16.5 | |||||||
Inventory | 24.8 | |||||||
Prepaid expenses and other | 11 | |||||||
Instruments | 9.9 | |||||||
Other property, plant and equipment | 2.1 | |||||||
Deferred tax liability | (39.5 | ) | ||||||
Other liabilities assumed | (20.7 | ) | ||||||
Intangible assets | 102.3 | |||||||
Goodwill | 42.4 | |||||||
Preliminary purchase price | $ | 150.8 | ||||||
Pro Forma Information | ' | |||||||
The amounts of net sales and net loss of Lanx included in the Company’s condensed consolidated statement of operations from the acquisition date of October 31, 2013 to the year ended May 31, 2014 is as follows: | ||||||||
(in millions) | Year Ended | |||||||
31-May-14 | ||||||||
Net sales | $ | 41 | ||||||
Net loss | $ | (19.1 | ) | |||||
The following pro forma financial information summarizes the combined results of the Company and Lanx, which assumes that they were combined as of the beginning of the Company’s fiscal year 2013. | ||||||||
The unaudited pro forma financial information for the combined entity is as follows: | ||||||||
Year Ended May 31, | ||||||||
(in millions) | 2014 | 2013 | ||||||
Net sales | $ | 3,262.30 | $ | 3,139.60 | ||||
Net income (loss) | $ | 94.1 | $ | (655.4 | ) | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventories | ' | |||||||
Inventories consisted of the following: | ||||||||
(in millions) | May 31, 2014 | May 31, 2013 | ||||||
Raw materials | $ | 83.1 | $ | 78.8 | ||||
Work-in-process | 54.4 | 44.7 | ||||||
Finished goods | 555.9 | 500.5 | ||||||
Inventories | $ | 693.4 | $ | 624 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
31-May-14 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Useful Lives of Property, Plant and Equipment | ' | |||||||
Useful lives by major product category consisted of the following: | ||||||||
Useful life | ||||||||
Land improvements | 20 years | |||||||
Buildings and leasehold improvements | 30 years | |||||||
Machinery and equipment | 5-10 years | |||||||
Instruments | 4 years | |||||||
Components of Property, Plant and Equipment | ' | |||||||
Property, plant and equipment consisted of the following: | ||||||||
(in millions) | May 31, 2014 | May 31, 2013 | ||||||
Land and land improvements | $ | 40.8 | $ | 40.5 | ||||
Buildings and leasehold improvements | 126.8 | 106.3 | ||||||
Machinery and equipment | 414.5 | 375.4 | ||||||
Instruments | 791.9 | 710.5 | ||||||
Construction in progress | 47.9 | 48.8 | ||||||
Total property, plant and equipment | 1,421.90 | 1,281.50 | ||||||
Accumulated depreciation | -705.9 | -616.3 | ||||||
Total property, plant and equipment, net | $ | 716 | $ | 665.2 | ||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Schedule of Investment Securities | ' | |||||||||||||||
At May 31, 2014, the Company’s investment securities were classified as follows: | ||||||||||||||||
Unrealized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Equity securities | $ | 0.2 | $ | 0.6 | $ | (0.3 | ) | $ | 0.5 | |||||||
Time deposit | 10.2 | — | — | 10.2 | ||||||||||||
Total available-for-sale investments | $ | 10.4 | $ | 0.6 | $ | (0.3 | ) | $ | 10.7 | |||||||
Realized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Trading: | ||||||||||||||||
Equity securities | $ | 1.6 | $ | 0.3 | $ | (0.1 | ) | $ | 1.8 | |||||||
Total trading investments | $ | 1.6 | $ | 0.3 | $ | (0.1 | ) | $ | 1.8 | |||||||
At May 31, 2013, the Company’s investment securities were classified as follows: | ||||||||||||||||
Unrealized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Available-for-sale: | ||||||||||||||||
Equity securities | $ | 0.2 | $ | 0.2 | $ | — | $ | 0.4 | ||||||||
Time deposit | 15.9 | 0.1 | — | 16 | ||||||||||||
Greek bonds | 1.1 | 4.5 | — | 5.6 | ||||||||||||
Total available-for-sale investments | $ | 17.2 | $ | 4.8 | $ | — | $ | 22 | ||||||||
Realized | ||||||||||||||||
(in millions) | Amortized Cost | Gains | Losses | Fair Value | ||||||||||||
Trading: | ||||||||||||||||
Equity securities | $ | 0.8 | $ | 0.2 | $ | — | $ | 1 | ||||||||
Total trading investments | $ | 0.8 | $ | 0.2 | $ | — | $ | 1 | ||||||||
Investment Income on Available-for-Sale Securities | ' | |||||||||||||||
Investment income on available-for-sale securities included in other (income) expense consists of the following: | ||||||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||||||
Interest income | $ | 1.2 | $ | 0.1 | $ | 0.4 | ||||||||||
Dividend income | — | 0.2 | 0.2 | |||||||||||||
Net realized gains | 6.6 | 0.2 | 2 | |||||||||||||
Total investment income | $ | 7.8 | $ | 0.5 | $ | 2.6 | ||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
The following tables summarize the changes in the carrying amount of goodwill: | ||||||||||||||||||||||||
(in millions) | 31-May-14 | 31-May-13 | 31-May-12 | |||||||||||||||||||||
Beginning of period | $ | 3,600.90 | $ | 4,114.40 | $ | 4,470.10 | ||||||||||||||||||
Goodwill acquired | 42.4 | 11.9 | — | |||||||||||||||||||||
Currency translation | -8.9 | (52.4 | ) | -63.8 | ||||||||||||||||||||
Impairment charge | — | (473.0 | ) | (291.9 | ) | |||||||||||||||||||
End of period | $ | 3,634.40 | $ | 3,600.90 | $ | 4,114.40 | ||||||||||||||||||
(in millions) | 31-May-14 | 31-May-13 | 31-May-12 | |||||||||||||||||||||
Gross carrying amount | $ | 5,317.70 | $ | 5,284.20 | $ | 5,324.70 | ||||||||||||||||||
Accumulated impairment losses | -1,683.30 | -1,683.30 | -1210.3 | |||||||||||||||||||||
Net carrying amount | $ | 3,634.40 | $ | 3,600.90 | $ | 4,114.40 | ||||||||||||||||||
Schedule of Intangible Assets | ' | |||||||||||||||||||||||
Intangible assets consist of the following at May 31, 2014 and 2013: | ||||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||
(in millions) | Gross | Accumulated Amortization | Net | |||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Core technology | $ | 1,743.30 | $ | (569.8 | ) | $ | 1,173.50 | |||||||||||||||||
Completed technology | 672 | (262.1 | ) | 409.9 | ||||||||||||||||||||
Product trade names | 208.1 | (77.6 | ) | 130.5 | ||||||||||||||||||||
Customer relationships | 2,371.60 | (955.9 | ) | 1,415.70 | ||||||||||||||||||||
Non-compete contracts | 4.9 | (4.6 | ) | 0.3 | ||||||||||||||||||||
Sub-total | 4,999.90 | (1,870.0 | ) | 3,129.90 | ||||||||||||||||||||
Corporate trade names | 309.7 | — | 309.7 | |||||||||||||||||||||
Total | $ | 5,309.60 | $ | (1,870.0 | ) | $ | 3,439.60 | |||||||||||||||||
31-May-13 | ||||||||||||||||||||||||
(in millions) | Gross | Impairment Charge | New | Accumulated Amortization | Impairment Charge | Net | ||||||||||||||||||
Carrying | Carrying | Carrying | ||||||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||
Core technology | $ | 1,772.60 | $ | (39.0 | ) | $ | 1,733.60 | $ | (481.1 | ) | $ | 4.1 | $ | 1,256.60 | ||||||||||
Completed technology | 628.8 | (48.5 | ) | 580.3 | (254.9 | ) | 36.7 | 362.1 | ||||||||||||||||
Product trade names | 204.2 | — | 204.2 | (65.9 | ) | — | 138.3 | |||||||||||||||||
Customer relationships | 2,429.50 | -46.1 | 2,383.40 | (828.4 | ) | 9.9 | 1,564.90 | |||||||||||||||||
Non-compete contracts | 4.6 | — | 4.6 | (3.8 | ) | — | 0.8 | |||||||||||||||||
Sub-total | 5,039.70 | -133.6 | 4,906.10 | (1,634.1 | ) | 50.7 | 3,322.70 | |||||||||||||||||
Corporate trade names | 319 | -11.5 | 307.5 | — | — | 307.5 | ||||||||||||||||||
Total | $ | 5,358.70 | $ | (145.1 | ) | $ | 5,213.60 | $ | (1,634.1 | ) | $ | 50.7 | $ | 3,630.20 | ||||||||||
Weighted Average Useful Life of Intangible Assets | ' | |||||||||||||||||||||||
The weighted average useful life of the intangibles at May 31, 2014 is as follows: | ||||||||||||||||||||||||
Weighted Average | ||||||||||||||||||||||||
Useful Life | ||||||||||||||||||||||||
Core technology | 15 Years | |||||||||||||||||||||||
Completed technology | 9 Years | |||||||||||||||||||||||
Product trade names | 13 Years | |||||||||||||||||||||||
Customer relationships | 14 Years | |||||||||||||||||||||||
Non-compete contracts | 1 Year | |||||||||||||||||||||||
Corporate trade names | Indefinite life |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
31-May-14 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Terms and Carrying Value of Debt Instrument | ' | |||||||||||||||||||||||||||
The terms and carrying value of each debt instrument at May 31, 2014 and 2013 are set forth below: | ||||||||||||||||||||||||||||
(U.S. dollars and euros in millions) | Maturity Date | Interest Rate | Currency | 31-May-14 | May 31, 2013 | |||||||||||||||||||||||
Debt Instruments | ||||||||||||||||||||||||||||
European facility | No Maturity Date | Interest Free | EUR | € | — | € | 1.8 | |||||||||||||||||||||
$ | — | $ | 2.3 | |||||||||||||||||||||||||
China facility | January 16, 2016 | LIBOR + 2.10% | USD | $ | — | $ | 6 | |||||||||||||||||||||
Term loan facility B | March 25, 2015 | LIBOR + 3.00% | USD | $ | 103.3 | $ | 104.3 | |||||||||||||||||||||
Term loan facility B-1 | July 25, 2017 | LIBOR + 3.50% | USD | $ | 2,959.60 | $ | 2,116.80 | |||||||||||||||||||||
Term loan facility B | March 25, 2015 | LIBOR + 3.00% | EUR | € | — | € | 167.8 | |||||||||||||||||||||
$ | — | $ | 217.9 | |||||||||||||||||||||||||
Term loan facility B-1 | July 25, 2017 | LIBOR + 4.00% | EUR | € | — | € | 659.4 | |||||||||||||||||||||
$ | — | $ | 856.4 | |||||||||||||||||||||||||
Cash flow revolving credit facility | April 25, 2017 | LIBOR + 3.50% | USD | $ | — | $ | — | |||||||||||||||||||||
Cash flow revolving credit facility | April 25, 2017 | LIBOR + 3.50% | USD/EUR | $ | — | $ | — | |||||||||||||||||||||
Asset-based revolving credit facility | July 25, 2017 | LIBOR + 2.00% | USD | $ | — | $ | — | |||||||||||||||||||||
Senior notes | August 1, 2020 | 6.50% | USD | $ | 1,825.00 | $ | 1,825.00 | |||||||||||||||||||||
Senior subordinated notes | October 1, 2020 | 6.50% | USD | $ | 800 | $ | 800 | |||||||||||||||||||||
Premium on notes | $ | 32.5 | $ | 37.7 | ||||||||||||||||||||||||
Total debt | $ | 5,720.40 | $ | 5,966.40 | ||||||||||||||||||||||||
Schedule of Short-term Borrowings | ' | |||||||||||||||||||||||||||
As of May 31, 2014 and 2013, short-term borrowings consisted of the following: | ||||||||||||||||||||||||||||
(in millions) | May 31, 2014 | May 31, 2013 | ||||||||||||||||||||||||||
Senior secured credit facilities | $ | 133.1 | $ | 33.3 | ||||||||||||||||||||||||
Non-U.S. facilities | — | 7 | ||||||||||||||||||||||||||
Total | $ | 133.1 | $ | 40.3 | ||||||||||||||||||||||||
Schedule of Long-term Obligations | ' | |||||||||||||||||||||||||||
Summarized in the table below are the Company’s long-term obligations as of May 31, 2014: | ||||||||||||||||||||||||||||
(in millions) | Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||
Long-term debt (including current maturities) | $ | 5,720.40 | $ | 133.1 | $ | 29.8 | $ | 29.8 | $ | 2,870.20 | $ | — | $ | 2,657.50 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value of Assets and Liabilities Measured on Recurring Basis | ' | |||||||||||||||
The following table provides information by level for assets and liabilities that are measured at fair value on a recurring basis at May 31, 2014 and 2013: | ||||||||||||||||
Fair Value at | Fair Value Measurement | |||||||||||||||
Using Inputs Considered as | ||||||||||||||||
(in millions) | 31-May-14 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 145 | $ | 145 | $ | — | $ | — | ||||||||
Time deposits | 25.8 | — | 25.8 | — | ||||||||||||
Pension plan assets | 147.5 | — | 132.5 | 15 | ||||||||||||
Foreign currency exchange contracts | 1.1 | — | 1.1 | — | ||||||||||||
Equity securities | 0.5 | 0.3 | — | 0.2 | ||||||||||||
Total assets | $ | 319.9 | $ | 145.3 | $ | 159.4 | $ | 15.2 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 20.2 | $ | — | $ | 20.2 | $ | — | ||||||||
Foreign currency exchange contracts | 1.3 | — | 1.3 | — | ||||||||||||
Total liabilities | $ | 21.5 | $ | — | $ | 21.5 | $ | — | ||||||||
Fair Value at | Fair Value Measurement | |||||||||||||||
Using Inputs Considered as | ||||||||||||||||
(in millions) | 31-May-13 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Money market funds | $ | 93.1 | $ | 93.1 | $ | — | $ | — | ||||||||
Time deposits | 31.5 | — | 31.5 | — | ||||||||||||
Greek bonds | 5.6 | — | 5.6 | — | ||||||||||||
Pension plan assets | 137.6 | — | 137.6 | — | ||||||||||||
Foreign currency exchange contracts | 0.5 | — | 0.5 | — | ||||||||||||
Equity securities | 1.4 | 1.3 | — | 0.1 | ||||||||||||
Total assets | $ | 269.7 | $ | 94.4 | $ | 175.2 | $ | 0.1 | ||||||||
Liabilities: | ||||||||||||||||
Interest rate swaps | $ | 54.1 | $ | — | $ | 54.1 | $ | — | ||||||||
Foreign currency exchange contracts | 0.6 | — | 0.6 | — | ||||||||||||
Total liabilities | $ | 54.7 | $ | — | $ | 54.7 | $ | — | ||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||
31-May-14 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of Summary Existing Swap Agreements | ' | ||||||||||||||||||
The table below summarizes existing swap agreements at May 31, 2014 and 2013: | |||||||||||||||||||
(U.S. dollars and euros in millions) | Fair Value at | Fair Value at | |||||||||||||||||
Notional | 31-May-14 | May 31, 2013 | |||||||||||||||||
Structure | Currency | Amount | Effective Date | Termination Date | Asset (Liability) | Asset (Liability) | |||||||||||||
5 years | EUR(1) | € | 200 | September 25, 2012 | September 25, 2017 | $ | — | $ | (11.3 | ) | |||||||||
5 years | EUR(1) | 200 | September 25, 2012 | September 25, 2017 | — | (11.1 | ) | ||||||||||||
5 years | USD | $ | 325 | December 26, 2008 | December 25, 2013 | — | (3.8 | ) | |||||||||||
5 years | USD | 195 | September 25, 2009 | September 25, 2014 | (1.7 | ) | (6.7 | ) | |||||||||||
2 years | USD | 190 | March 25, 2013 | March 25, 2015 | (1.0 | ) | (1.7 | ) | |||||||||||
3 years | USD | 270 | December 27, 2013 | September 25, 2016 | (5.8 | ) | (5.2 | ) | |||||||||||
5 years | USD | 350 | September 25, 2012 | September 25, 2017 | (6.0 | ) | (7.5 | ) | |||||||||||
5 years | USD | 350 | September 25, 2012 | September 25, 2017 | (5.9 | ) | (7.4 | ) | |||||||||||
Credit valuation adjustment | 0.2 | 0.6 | |||||||||||||||||
Total interest rate instruments | $ | (20.2 | ) | $ | (54.1 | ) | |||||||||||||
(1) The euro interest rate swaps were terminated during the second quarter of fiscal year 2014. | |||||||||||||||||||
Schedule of Interest Rate Swap | ' | ||||||||||||||||||
The tables below summarize the effective portion and ineffective portion of the Company’s interest rate swaps before tax for the years ended May 31, 2014, 2013 and 2012: | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Derivatives in cash flow hedging relationship | 31-May-14 | 31-May-13 | 31-May-12 | ||||||||||||||||
Interest rate swaps: | |||||||||||||||||||
Amount of gain (loss) recognized in OCI | $ | 34 | $ | 22 | $ | 20.5 | |||||||||||||
Amount of (gain) loss reclassified from accumulated OCI into interest expense (effective portion) | 25.3 | 49.5 | 69 | ||||||||||||||||
Amount of (gain) loss recognized in other income (expense) (ineffective portion and amount excluded from effectiveness testing) | 21.8 | — | — | ||||||||||||||||
Retirement_and_Pension_Plans_T
Retirement and Pension Plans (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||
Schedule of Net Periodic Benefit Costs for Defined Benefit Plans | ' | |||||||||||
Net periodic benefit costs for the Company’s defined benefit plans include the following components: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Net periodic benefit costs: | ||||||||||||
Service costs | $ | 5 | $ | 2.9 | $ | 0.6 | ||||||
Interest costs | 6.9 | 6.1 | 6.3 | |||||||||
Expected return on plan assets | (6.9 | ) | (5.1 | ) | (5.6 | ) | ||||||
Recognized actuarial losses | 1.5 | 2.7 | 1.6 | |||||||||
Net periodic benefit costs: | $ | 6.5 | $ | 6.6 | $ | 2.9 | ||||||
Schedule of Information Related to the Benefit Obligation Fair Value of Plan Assets | ' | |||||||||||
The following table sets forth information related to the benefit obligation and the fair value of plan assets at May 31, 2014 and 2013 for the Company’s defined benefit retirement plans. The Company maintains no post-retirement medical or other post-retirement plans in the United States. | ||||||||||||
(in millions) | 31-May-14 | 31-May-13 | ||||||||||
Change in Benefit Obligation | ||||||||||||
Projected benefit obligation—beginning of year | $ | 167.5 | $ | 128.1 | ||||||||
Service costs | 5 | 2.9 | ||||||||||
Interest costs | 6.9 | 6.1 | ||||||||||
Plan participant contribution | — | 0.4 | ||||||||||
Actuarial (gains)/losses | 9 | 20.1 | ||||||||||
Benefits paid from plan | (5.9 | ) | (4.2 | ) | ||||||||
Plan amendments | (0.5 | ) | — | |||||||||
Plan settlements | 3.6 | — | ||||||||||
Net transfer in (out) | (23.2 | ) | 16.6 | |||||||||
Effect of exchange rates | 14.9 | (2.5 | ) | |||||||||
Projected benefit obligation—end of year | $ | 177.3 | $ | 167.5 | ||||||||
Accumulated benefit obligation | $ | 168.3 | $ | 165.1 | ||||||||
Change in Plan Assets | ||||||||||||
Plan assets at fair value—beginning of year | $ | 137.6 | $ | 108.7 | ||||||||
Actual return on plan assets | 11.1 | 15.5 | ||||||||||
Company contribution | 9.1 | 7.6 | ||||||||||
Plan participant contribution | — | 0.4 | ||||||||||
Benefits paid from plan | (5.9 | ) | (4.0 | ) | ||||||||
Plan settlements | (0.5 | ) | — | |||||||||
Net transfer in (out) | (16.7 | ) | 12.1 | |||||||||
Effect of exchange rates | 12.8 | (2.7 | ) | |||||||||
Plan assets at fair value—end of year | $ | 147.5 | $ | 137.6 | ||||||||
Unfunded status at end of year | $ | 29.8 | $ | 29.9 | ||||||||
Schedule of Amounts Recognized in Consolidated Balance Sheets | ' | |||||||||||
Amounts recognized in the Company’s consolidated balance sheets consist of the following: | ||||||||||||
(in millions) | 31-May-14 | 31-May-13 | ||||||||||
Deferred income tax asset | $ | 9.8 | $ | 9.5 | ||||||||
Employee related obligations | 29.8 | 29.9 | ||||||||||
Other comprehensive income (loss) | -11 | -10 | ||||||||||
Schedule of Amounts Expected to be Recognized in Net Periodic Cost in the Coming Year | ' | |||||||||||
Year Ended | ||||||||||||
31-May-15 | ||||||||||||
Amounts expected to be recognized in Net Periodic Cost in the coming year for the Company’s defined benefit retirement plans (in millions) | ||||||||||||
Amortization of net actuarial losses | $ | 3.9 | ||||||||||
Schedule of the Weighted-average Assumptions | ' | |||||||||||
The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for periods presented and also the net periodic benefit cost for the following years. | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
31-May-14 | 31-May-13 | 31-May-12 | ||||||||||
Discount rate | 4.11 | % | 4 | % | 4.57 | % | ||||||
Expected long-term rate of return on plan assets | 4.22 | % | 4.2 | % | 4.51 | % | ||||||
Rate increase in compensation levels | 2.85 | % | 2.7 | % | 2.58 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||
Accumulated other comprehensive income (loss) and the related components, net of tax, are included in the table below: | |||||||||||||||||||||
(in millions) | Unrecognized | Foreign currency | Unrealized gain | Unrealized gain | Accumulated | ||||||||||||||||
actuarial | translation | (loss) on interest | (loss) on | other | |||||||||||||||||
gain (loss) | adjustments | rate swaps | available-for-sale | comprehensive | |||||||||||||||||
securities | income (loss) | ||||||||||||||||||||
31-May-12 | $ | (3.0 | ) | $ | 173.7 | $ | (47.3 | ) | $ | (0.5 | ) | $ | 122.9 | ||||||||
OCI before reclassifications | (7.0 | ) | (138.2 | ) | (18.1 | ) | 3.3 | (160.0 | ) | ||||||||||||
Reclassifications | — | — | 31.2 | — | 31.2 | ||||||||||||||||
31-May-13 | (10.0 | ) | 35.5 | (34.2 | ) | 2.8 | (5.9 | ) | |||||||||||||
OCI before reclassifications | (1.0 | ) | 27.1 | 5.9 | (2.8 | ) | 29.2 | ||||||||||||||
Reclassifications | — | — | 16 | — | 16 | ||||||||||||||||
31-May-14 | $ | (11.0 | ) | $ | 62.6 | $ | (12.3 | ) | $ | — | $ | 39.3 | |||||||||
The tax effects in other comprehensive income (loss) are included in the tables below: | |||||||||||||||||||||
Year Ended May 31, 2014 | |||||||||||||||||||||
(in millions) | Before Tax | Tax | Net of Tax | ||||||||||||||||||
Unrecognized actuarial gain (loss) | $ | 11.7 | $ | (12.7 | ) | $ | (1.0 | ) | |||||||||||||
Foreign currency translation adjustments | 27.4 | (0.3 | ) | 27.1 | |||||||||||||||||
Unrealized gain (loss) on interest rate swaps | 8.7 | (2.8 | ) | 5.9 | |||||||||||||||||
Reclassifications on interest rate swaps | 25.3 | (9.3 | ) | 16 | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | (2.8 | ) | — | (2.8 | ) | ||||||||||||||||
Other comprehensive income (loss): | $ | 70.3 | $ | (25.1 | ) | $ | 45.2 | ||||||||||||||
Year Ended May 31, 2013 | |||||||||||||||||||||
(in millions) | Before Tax | Tax | Net of Tax | ||||||||||||||||||
Unrecognized actuarial gain (loss) | $ | (7.1 | ) | $ | 0.1 | $ | (7.0 | ) | |||||||||||||
Foreign currency translation adjustments | (142.5 | ) | 4.3 | (138.2 | ) | ||||||||||||||||
Unrealized gain (loss) on interest rate swaps | (27.6 | ) | 9.5 | (18.1 | ) | ||||||||||||||||
Reclassifications on interest rate swaps | 49.5 | (18.3 | ) | 31.2 | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 3.4 | (0.1 | ) | 3.3 | |||||||||||||||||
Other comprehensive income (loss): | $ | (124.3 | ) | $ | (4.5 | ) | $ | (128.8 | ) | ||||||||||||
Year Ended May 31, 2012 | |||||||||||||||||||||
(in millions) | Before Tax | Tax | Net of Tax | ||||||||||||||||||
Unrecognized actuarial gain (loss) | $ | (3.4 | ) | $ | (0.8 | ) | $ | (4.2 | ) | ||||||||||||
Foreign currency translation adjustments | (79.9 | ) | 17.8 | (62.1 | ) | ||||||||||||||||
Unrealized gain (loss) on interest rate swaps | (48.1 | ) | 17.7 | (30.4 | ) | ||||||||||||||||
Reclassifications on interest rate swaps | 69 | (25.5 | ) | 43.5 | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 4.3 | — | 4.3 | ||||||||||||||||||
Other comprehensive income (loss): | $ | (58.1 | ) | $ | 9.2 | $ | (48.9 | ) | |||||||||||||
The tables above have been modified to reflect the retrospective application of ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income for all periods presented. | |||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||
Reclassifications adjustments from OCI are included in the table below: | |||||||||||||||||||||
(in millions) | Year Ended May 31, | Year Ended May 31, | Year Ended May 31, | Location on Statement | |||||||||||||||||
2014 | 2013 | 2012 | of Operations | ||||||||||||||||||
Interest rate swaps | $ | 25.3 | $ | 49.5 | $ | 69 | Interest expense | ||||||||||||||
Sharebased_Compensation_and_St1
Share-based Compensation and Stock Plans (Tables) | 12 Months Ended | |||||||||||||||
31-May-14 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||||
The following table summarizes stock option activity for the years ended May 31, 2014, 2013 and 2012: | ||||||||||||||||
Stock Options | Weighted Average Exercise Price | |||||||||||||||
Outstanding, May 31, 2011 | 35,024,625 | $ | 10 | |||||||||||||
Granted | 2,594,500 | 10 | ||||||||||||||
Forfeitures | -2,867,417 | 10 | ||||||||||||||
Outstanding, May 31, 2012 | 34,751,708 | $ | 10 | |||||||||||||
Granted | 3,564,600 | 7.88 | ||||||||||||||
Forfeitures | -2,349,019 | 7.88 | ||||||||||||||
Outstanding, May 31, 2013 | 35,967,289 | $ | 7.88 | |||||||||||||
Granted | 2,843,100 | 8.37 | ||||||||||||||
Exercised | 162,117 | 7.88 | ||||||||||||||
Forfeitures | -2,303,679 | 7.88 | ||||||||||||||
Outstanding, May 31, 2014 | 36,668,827 | $ | 8.01 | |||||||||||||
Schedule of Weighted Average Assumptions Used to Determine Fair Value of Stock Options | ' | |||||||||||||||
The fair value estimates are based on the following weighted average assumptions: | ||||||||||||||||
May 31, 2014 | May 31, 2013 | |||||||||||||||
Risk-free interest rate | 1.5 | % | 0.69 | % | ||||||||||||
Dividend yield | — | — | ||||||||||||||
Expected volatility | 24.45 | % | 30.91 | % | ||||||||||||
Expected life in years | 6 | 6 | ||||||||||||||
Summary of Outstanding Stock Options Vested and Exercisable | ' | |||||||||||||||
The following table summarizes information about outstanding stock options, as of May 31, 2014 and 2013, that were (a) vested and (b) exercisable: | ||||||||||||||||
Outstanding Stock Options Already Vested and Expected to Vest | Options that are Exercisable | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Number of outstanding options | 36,668,827 | 35,967,289 | 26,284,126 | 24,620,247 | ||||||||||||
Weighted average remaining contractual life | 5.8 years | 6.8 years | 5.4 years | 6.4 years | ||||||||||||
Weighted average exercise price per share | $ | 8.01 | $ | 7.88 | $ | 7.88 | $ | 7.88 | ||||||||
Intrinsic value | — | — | — | — | ||||||||||||
Summary of RSU Activity | ' | |||||||||||||||
The following table summarizes RSU activity for the years ended May 31, 2014, 2013 and 2012: | ||||||||||||||||
RSUs | Weighted Average Grant Date Fair Value | |||||||||||||||
Outstanding at May 31, 2011 | 3,835,000 | 10 | ||||||||||||||
Granted | 30,000 | 10 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (200,000 | ) | 10 | |||||||||||||
Outstanding at May 31, 2012 | 3,665,000 | 10 | ||||||||||||||
Modification impact | (3,665,000 | ) | 10 | |||||||||||||
Granted | 13,631,500 | 7.88 | ||||||||||||||
Vested | — | 0 | ||||||||||||||
Forfeited | (578,000 | ) | 7.88 | |||||||||||||
Outstanding at May 31, 2013 | 13,053,500 | 7.88 | ||||||||||||||
Granted | 643,500 | 8.56 | ||||||||||||||
Vested | — | — | ||||||||||||||
Forfeited | (1,021,375 | ) | 7.88 | |||||||||||||
Outstanding at May 31, 2014 | 12,675,625 | 7.91 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Loss Before Income Taxes | ' | |||||||||||
The components of loss before income taxes are as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Domestic | $ | (309.0 | ) | $ | (747.4 | ) | $ | (796.1 | ) | |||
Foreign | 269.1 | 6.3 | 205.3 | |||||||||
Total | $ | (39.9 | ) | $ | (741.1 | ) | $ | (590.8 | ) | |||
Schedule of Income Tax Benefit | ' | |||||||||||
The income tax benefit is summarized as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 43.9 | $ | 13.7 | $ | (9.5 | ) | |||||
State | 8.4 | 6.8 | 3 | |||||||||
Foreign | 70.6 | 35.5 | 42.6 | |||||||||
Sub-total | 122.9 | 56 | 36.1 | |||||||||
Deferred: | ||||||||||||
Federal | (118.7 | ) | (169.3 | ) | (83.6 | ) | ||||||
State | (86.6 | ) | 11.9 | (0.9 | ) | |||||||
Foreign | (33.4 | ) | (16.3 | ) | (83.6 | ) | ||||||
Sub-total | (238.7 | ) | (173.7 | ) | (168.1 | ) | ||||||
Total income tax benefit | $ | (115.8 | ) | $ | (117.7 | ) | $ | (132.0 | ) | |||
Reconciliation of Statutory Federal Income Tax Rate to Effective Tax Rate | ' | |||||||||||
A reconciliation of the statutory federal income tax rate to the Company’s U.S. effective tax rate is as follows: | ||||||||||||
Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | ||||||||||
Income tax computed at U.S. statutory rate | $ | (14.0 | ) | $ | (259.4 | ) | $ | (206.8 | ) | |||
State taxes, net of federal deduction | (18.5 | ) | (13.3 | ) | (3.0 | ) | ||||||
Effect of foreign taxes | (62.5 | ) | (11.9 | ) | (6.5 | ) | ||||||
Change in liability for uncertain tax positions | 69.5 | 19.3 | (21.9 | ) | ||||||||
Goodwill impairment | — | 166 | 102.2 | |||||||||
Change in tax laws and rates | (10.9 | ) | 14.8 | (15.4 | ) | |||||||
Tax on foreign earnings, net of foreign tax credits | (38.6 | ) | (43.7 | ) | 52.6 | |||||||
Nondeductible/nontaxable items | (24.2 | ) | 4.1 | (23.6 | ) | |||||||
Adjustment of prior estimates | 13.3 | 3.7 | (22.6 | ) | ||||||||
Change in valuation allowance | (32.4 | ) | — | (0.4 | ) | |||||||
Other | 2.5 | 2.7 | 13.4 | |||||||||
Income tax computed at effective worldwide tax rates | $ | (115.8 | ) | $ | (117.7 | ) | $ | (132.0 | ) | |||
Schedule of Components of Net Deferred Income Tax Assets and Liabilities | ' | |||||||||||
The components of the net deferred income tax assets and liabilities at May 31, 2014 and 2013 are as follows: | ||||||||||||
(in millions) | 31-May-14 | 31-May-13 | ||||||||||
Deferred income tax assets: | ||||||||||||
Accounts receivable | $ | 11.3 | $ | 14.1 | ||||||||
Inventories | 86.7 | 68.8 | ||||||||||
Reserves and accrued expenses | 120.4 | 85.7 | ||||||||||
Tax benefit of net operating losses, tax credits and other carryforwards | 109.1 | 106.3 | ||||||||||
Future benefit of uncertain tax positions | 15.9 | 13 | ||||||||||
Stock-based compensation | 62.4 | 55.7 | ||||||||||
Unrealized mark-to-mark and currency gains and losses | 9.9 | 33.9 | ||||||||||
Federal effect of state tax | 8.2 | 35.4 | ||||||||||
Other | 18.7 | (23.9 | ) | |||||||||
Deferred income tax assets | 442.6 | 389 | ||||||||||
Less: Valuation allowance | (16.7 | ) | (68.8 | ) | ||||||||
Total deferred income tax assets | 425.9 | 320.2 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Property, plant, equipment and intangibles | (1,234.8 | ) | (1,316.2 | ) | ||||||||
Unremitted foreign earnings | — | (4.4 | ) | |||||||||
Other | (9.8 | ) | (9.5 | ) | ||||||||
Total deferred income tax liabilities | (1,244.6 | ) | (1,330.1 | ) | ||||||||
Total net deferred income tax liabilities | $ | (818.7 | ) | $ | (1,009.9 | ) | ||||||
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Unrecognized tax benefits, beginning of period | $ | 78.4 | $ | 63 | $ | 90.9 | ||||||
Addition based on tax positions related to the current year | 60.5 | 14.1 | 10.9 | |||||||||
Addition (reduction) for tax positions of prior periods | 4.1 | 1.3 | (14.8 | ) | ||||||||
Reduction related to settlements with tax authorities | (1.0 | ) | — | (0.1 | ) | |||||||
Reduction related to lapse of statute of limitations | — | 0 | (23.9 | ) | ||||||||
Unrecognized tax benefits, end of period | $ | 142 | $ | 78.4 | $ | 63 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||
31-May-14 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Net Sales by Product Category | ' | |||||||||||
Net sales by product category for the years ended May 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended | Year Ended | |||||||||
31-May-13 | 31-May-12 | |||||||||||
Net sales by product: | ||||||||||||
Knees | $ | 995.7 | $ | 940 | $ | 941.8 | ||||||
Hips | 649.2 | 632.7 | 633 | |||||||||
S.E.T. | 647.5 | 600.1 | 361.6 | |||||||||
Spine, Bone Healing and Microfixation | 446.7 | 408.8 | 411.5 | |||||||||
Dental | 259.1 | 257 | 267.7 | |||||||||
Cement, Biologics and Other | 225.2 | 214.3 | 222.5 | |||||||||
Total | $ | 3,223.40 | $ | 3,052.90 | $ | 2,838.10 | ||||||
Net Sales by Geography | ' | |||||||||||
Net sales by geography for the years ended May 31, 2014, 2013 and 2012 were as follows: | ||||||||||||
(in millions) | Year Ended May 31, 2014 | Year Ended May 31, 2013 | Year Ended May 31, 2012 | |||||||||
Net sales by geography: | ||||||||||||
United States | $ | 1,970.40 | $ | 1,862.20 | $ | 1,713.30 | ||||||
Europe | 772 | 710.2 | 702.7 | |||||||||
International(1) | 481 | 480.5 | 422.1 | |||||||||
Total | $ | 3,223.40 | $ | 3,052.90 | $ | 2,838.10 | ||||||
-1 | International primarily includes Canada, Latin America and the Asia Pacific region. | |||||||||||
Long-Term Assets by Geography | ' | |||||||||||
Long-term assets by geography as of May 31, 2014 and 2013 were as follows: | ||||||||||||
(in millions) | May 31, 2014 | 31-May-13 | 31-May-12 | |||||||||
Long-term assets(1) by geography: | ||||||||||||
United States | $ | 396.9 | $ | 336.8 | $ | 306.8 | ||||||
Europe | 241.4 | 255.7 | 224.3 | |||||||||
International | 77.7 | 72.7 | 62.5 | |||||||||
Total | $ | 716 | $ | 665.2 | $ | 593.6 | ||||||
-1 | Defined as property, plant and equipment. |
Guarantor_and_NonGuarantor_Fin1
Guarantor and Non-Guarantor Financial Statements (Tables) | 12 Months Ended | |||||||||||||||||||
31-May-14 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheets | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
May 31, 2014 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 101.8 | $ | 145.8 | $ | — | $ | 247.6 | ||||||||||
Accounts receivable, net | — | 284.6 | 292.7 | — | 577.3 | |||||||||||||||
Inventories | — | 374.3 | 319.1 | — | 693.4 | |||||||||||||||
Deferred income taxes | — | 117.9 | 32 | — | 149.9 | |||||||||||||||
Prepaid expenses and other | — | 128 | 74.9 | — | 202.9 | |||||||||||||||
Total current assets | — | 1,006.60 | 864.5 | — | 1,871.10 | |||||||||||||||
Property, plant and equipment, net | — | 412.4 | 303.6 | — | 716 | |||||||||||||||
Investments | — | 11.9 | 0.6 | — | 12.5 | |||||||||||||||
Investment in subsidiaries | 7,882.90 | — | — | (7,882.9 | ) | — | ||||||||||||||
Intangible assets, net | — | 2,740.10 | 699.5 | — | 3,439.60 | |||||||||||||||
Goodwill | — | 3,146.70 | 487.7 | — | 3,634.40 | |||||||||||||||
Other assets | — | 81.5 | 11.5 | — | 93 | |||||||||||||||
Total assets | $ | 7,882.90 | $ | 7,399.20 | $ | 2,367.40 | $ | (7,882.9 | ) | $ | 9,766.60 | |||||||||
Liabilities & Shareholder’s Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 133.1 | $ | — | $ | — | $ | — | $ | 133.1 | ||||||||||
Accounts payable | — | 86.9 | 48.4 | — | 135.3 | |||||||||||||||
Accrued interest | 53.3 | — | 0.1 | — | 53.4 | |||||||||||||||
Accrued wages and commissions | — | 90 | 78.7 | — | 168.7 | |||||||||||||||
Other accrued expenses | — | 259.4 | 95.3 | — | 354.7 | |||||||||||||||
Total current liabilities | 186.4 | 436.3 | 222.5 | — | 845.2 | |||||||||||||||
Long-term debt | 5,587.30 | — | — | — | 5,587.30 | |||||||||||||||
Deferred income taxes | — | 811.3 | 157.3 | — | 968.6 | |||||||||||||||
Other long-term liabilities | — | 170.8 | 85.5 | — | 256.3 | |||||||||||||||
Total liabilities | 5,773.70 | 1,418.40 | 465.3 | — | 7,657.40 | |||||||||||||||
Shareholder’s equity | 2,109.20 | 5,980.80 | 1,902.10 | (7,882.9 | ) | 2,109.20 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 7,882.90 | $ | 7,399.20 | $ | 2,367.40 | $ | (7,882.9 | ) | $ | 9,766.60 | |||||||||
31-May-13 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 35.3 | $ | 320.3 | $ | — | $ | 355.6 | ||||||||||
Accounts receivable, net | — | 254.1 | 277.7 | — | 531.8 | |||||||||||||||
Inventories | — | 286.9 | 337.1 | — | 624 | |||||||||||||||
Deferred income taxes | — | 78.3 | 41.6 | — | 119.9 | |||||||||||||||
Prepaid expenses and other | — | 73.7 | 67.6 | — | 141.3 | |||||||||||||||
Total current assets | — | 728.3 | 1,044.30 | — | 1,772.60 | |||||||||||||||
Property, plant and equipment, net | — | 350.1 | 315.1 | — | 665.2 | |||||||||||||||
Investments | — | 10.9 | 12.1 | — | 23 | |||||||||||||||
Investment in subsidiaries | 7,982.80 | — | — | (7,982.8 | ) | — | ||||||||||||||
Intangible assets, net | — | 2,890.40 | 739.8 | — | 3,630.20 | |||||||||||||||
Goodwill | — | 3,104.00 | 496.9 | — | 3,600.90 | |||||||||||||||
Other assets | — | 88.9 | 13.9 | — | 102.8 | |||||||||||||||
Total assets | $ | 7,982.80 | $ | 7,172.60 | $ | 2,622.10 | $ | (7,982.8 | ) | $ | 9,794.70 | |||||||||
Liabilities & Shareholder’s Equity | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 33.3 | $ | — | $ | 7 | $ | — | $ | 40.3 | ||||||||||
Accounts payable | — | 63.8 | 47.7 | — | 111.5 | |||||||||||||||
Accrued interest | 56.1 | — | 0.1 | — | 56.2 | |||||||||||||||
Accrued wages and commissions | — | 82.1 | 68 | — | 150.1 | |||||||||||||||
Other accrued expenses | — | 141.7 | 64.3 | — | 206 | |||||||||||||||
Total current liabilities | 89.4 | 287.6 | 187.1 | — | 564.1 | |||||||||||||||
Long-term debt | 5,924.80 | — | 1.3 | — | 5,926.10 | |||||||||||||||
Deferred income taxes | — | 942 | 187.8 | — | 1,129.80 | |||||||||||||||
Other long-term liabilities | — | 142.9 | 63.2 | — | 206.1 | |||||||||||||||
Total liabilities | 6,014.20 | 1,372.50 | 439.4 | — | 7,826.10 | |||||||||||||||
Shareholder’s equity | 1,968.60 | 5,800.10 | 2,182.70 | (7,982.8 | ) | 1,968.60 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 7,982.80 | $ | 7,172.60 | $ | 2,622.10 | $ | (7,982.8 | ) | $ | 9,794.70 | |||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income (Loss) | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
Year Ended May 31, 2014 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 2,039.90 | $ | 1,183.50 | $ | — | $ | 3,223.40 | ||||||||||
Cost of sales | — | 878.1 | 162.1 | — | 1,040.20 | |||||||||||||||
Gross profit | — | 1,161.80 | 1,021.40 | — | 2,183.20 | |||||||||||||||
Selling, general and administrative expense | — | 889.2 | 504 | — | 1,393.20 | |||||||||||||||
Research and development expense | — | 126.3 | 43.3 | — | 169.6 | |||||||||||||||
Amortization | — | 254.2 | 53 | — | 307.2 | |||||||||||||||
Operating income (loss) | — | (107.9 | ) | 421.1 | — | 313.2 | ||||||||||||||
Interest expense | 355.7 | — | 0.2 | — | 355.9 | |||||||||||||||
Other (income) expense | — | 3.6 | (6.4 | ) | — | (2.8 | ) | |||||||||||||
Income (loss) before income taxes | (355.7 | ) | (111.5 | ) | 427.3 | — | (39.9 | ) | ||||||||||||
Tax expense (benefit) | (135.2 | ) | (42.3 | ) | 61.7 | — | (115.8 | ) | ||||||||||||
Equity in earnings of subsidiaries | 296.4 | — | — | (296.4 | ) | — | ||||||||||||||
Net income (loss) | 75.9 | (69.2 | ) | 365.6 | (296.4 | ) | 75.9 | |||||||||||||
Other comprehensive income (loss) | 21.9 | — | 23.3 | — | 45.2 | |||||||||||||||
Total comprehensive income (loss) | $ | 97.8 | $ | (69.2 | ) | $ | 388.9 | $ | (296.4 | ) | $ | 121.1 | ||||||||
Year Ended May 31, 2013 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,922.30 | $ | 1,130.60 | $ | — | $ | 3,052.90 | ||||||||||
Cost of sales | — | 689.8 | 183.6 | — | 873.4 | |||||||||||||||
Gross profit | — | 1,232.50 | 947 | — | 2,179.50 | |||||||||||||||
Selling, general and administrative expense | — | 820.6 | 491.9 | — | 1,312.50 | |||||||||||||||
Research and development expense | — | 112.8 | 37.5 | — | 150.3 | |||||||||||||||
Amortization | — | 260.6 | 53.2 | — | 313.8 | |||||||||||||||
Goodwill impairment charge | — | 167.9 | 305.1 | — | 473 | |||||||||||||||
Intangible assets impairment charge | — | 94.4 | — | — | 94.4 | |||||||||||||||
Operating income (loss) | — | (223.8 | ) | 59.3 | — | (164.5 | ) | |||||||||||||
Interest expense | 395.2 | — | 3.6 | — | 398.8 | |||||||||||||||
Other (income) expense | 177.6 | 6.1 | (5.9 | ) | — | 177.8 | ||||||||||||||
Income (loss) before income taxes | (572.8 | ) | (229.9 | ) | 61.6 | — | (741.1 | ) | ||||||||||||
Tax expense (benefit) | (217.7 | ) | (87.4 | ) | 187.4 | — | (117.7 | ) | ||||||||||||
Equity in earnings of subsidiaries | (268.3 | ) | — | — | 268.3 | — | ||||||||||||||
Net income (loss) | (623.4 | ) | (142.5 | ) | (125.8 | ) | 268.3 | (623.4 | ) | |||||||||||
Other comprehensive income (loss) | 13.1 | — | (141.9 | ) | — | (128.8 | ) | |||||||||||||
Total comprehensive income (loss) | $ | (610.3 | ) | $ | (142.5 | ) | $ | (267.7 | ) | $ | 268.3 | $ | (752.2 | ) | ||||||
Year Ended May 31, 2012 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||||
Net sales | $ | — | $ | 1,769.80 | $ | 1,068.30 | $ | — | $ | 2,838.10 | ||||||||||
Cost of sales | — | 437.2 | 338.3 | — | 775.5 | |||||||||||||||
Gross profit | — | 1,332.60 | 730 | — | 2,062.60 | |||||||||||||||
Selling, general and administrative expense | — | 724.9 | 447.3 | — | 1,172.20 | |||||||||||||||
Research and development expense | — | 94.7 | 32.1 | — | 126.8 | |||||||||||||||
Amortization | — | 258.8 | 68.4 | — | 327.2 | |||||||||||||||
Goodwill impairment charge | — | 189.4 | 102.5 | — | 291.9 | |||||||||||||||
Intangible assets impairment charge | — | 74.9 | 163 | — | 237.9 | |||||||||||||||
Operating income (loss) | — | (10.1 | ) | (83.3 | ) | — | (93.4 | ) | ||||||||||||
Interest expense | 477.1 | — | 2.7 | — | 479.8 | |||||||||||||||
Other (income) expense | — | 3.1 | 14.5 | — | 17.6 | |||||||||||||||
Income (loss) before income taxes | (477.1 | ) | (13.2 | ) | (100.5 | ) | — | (590.8 | ) | |||||||||||
Tax expense (benefit) | (181.3 | ) | 86.8 | (37.5 | ) | — | (132.0 | ) | ||||||||||||
Equity in earnings of subsidiaries | (163.0 | ) | — | — | 163 | — | ||||||||||||||
Net income (loss) | (458.8 | ) | (100.0 | ) | (63.0 | ) | 163 | (458.8 | ) | |||||||||||
Other comprehensive income (loss) | 13.1 | — | (62.0 | ) | — | (48.9 | ) | |||||||||||||
Total comprehensive income (loss) | $ | (445.7 | ) | $ | (100.0 | ) | $ | (125.0 | ) | $ | 163 | $ | (507.7 | ) | ||||||
Condensed Consolidating Statements of Cash Flows | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended May 31, 2014 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | 266.9 | $ | 351.7 | $ | (89.6 | ) | $ | — | $ | 529 | |||||||||
Capital expenditures | — | (135.7 | ) | (93.0 | ) | — | (228.7 | ) | ||||||||||||
Acquisitions, net of cash acquired - 2013 Spine Acquisition | — | (148.8 | ) | 0 | — | (148.8 | ) | |||||||||||||
Other | — | (2.0 | ) | 14.4 | — | 12.4 | ||||||||||||||
Cash flows provided by (used in) investing activities | — | (286.5 | ) | (78.6 | ) | — | (365.1 | ) | ||||||||||||
Proceeds under revolvers/facility | 155 | — | 4.3 | — | 159.3 | |||||||||||||||
Payments under revolvers/facility | (155.0 | ) | — | (10.3 | ) | — | (165.3 | ) | ||||||||||||
Proceeds from senior and senior subordinated notes due 2020 and term loans | 870.5 | — | — | — | 870.5 | |||||||||||||||
Tender/retirement of senior notes due 2017 and term loans | (1,091.6 | ) | — | — | — | (1,091.6 | ) | |||||||||||||
Other | (45.8 | ) | 1.3 | (2.3 | ) | — | (46.8 | ) | ||||||||||||
Cash flows used in financing activities | (266.9 | ) | 1.3 | (8.3 | ) | — | (273.9 | ) | ||||||||||||
Effect of exchange rate changes on | — | — | 2 | — | 2 | |||||||||||||||
cash | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 66.5 | (174.5 | ) | — | (108.0 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | — | 35.3 | 320.3 | — | 355.6 | |||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 101.8 | $ | 145.8 | $ | — | $ | 247.6 | ||||||||||
Year Ended May 31, 2013 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | 128.6 | $ | 228.2 | $ | 111.7 | $ | — | $ | 468.5 | ||||||||||
Capital expenditures | — | (102.9 | ) | (101.1 | ) | — | (204.0 | ) | ||||||||||||
Acquisitions, net of cash acquired - 2012 Trauma Acquisition | — | (277.5 | ) | (2.5 | ) | — | (280.0 | ) | ||||||||||||
Other | — | (2.5 | ) | (2.1 | ) | — | (4.6 | ) | ||||||||||||
Cash flows provided by (used in) investing activities | — | (382.9 | ) | (105.7 | ) | — | (488.6 | ) | ||||||||||||
Proceeds under revolvers/facility | 80 | — | 6.6 | — | 86.6 | |||||||||||||||
Payments under revolvers/facility | (80.0 | ) | — | (0.6 | ) | — | (80.6 | ) | ||||||||||||
Proceeds from senior and senior subordinated notes due 2020 and term loans | 3,396.20 | — | — | — | 3,396.20 | |||||||||||||||
Tender/retirement of senior notes due 2017 and term loans | (3,423.0 | ) | — | — | — | (3,423.0 | ) | |||||||||||||
Payment of fees related to refinancing activities | (79.0 | ) | — | — | — | (79.0 | ) | |||||||||||||
Other | (22.8 | ) | (0.1 | ) | (12.0 | ) | — | (34.9 | ) | |||||||||||
Cash flows used in financing activities | (128.6 | ) | (0.1 | ) | (6.0 | ) | — | (134.7 | ) | |||||||||||
Effect of exchange rate changes on | — | — | 18 | — | 18 | |||||||||||||||
cash | ||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | — | (154.8 | ) | 18 | — | (136.8 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | — | 190.1 | 302.3 | — | 492.4 | |||||||||||||||
Cash and cash equivalents, end of period | $ | — | $ | 35.3 | $ | 320.3 | $ | — | $ | 355.6 | ||||||||||
Year Ended May 31, 2012 | ||||||||||||||||||||
(in millions) | Biomet, Inc. | Guarantor | Non-Guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | 36.7 | $ | 63 | $ | 277.6 | $ | — | $ | 377.3 | ||||||||||
Proceeds from sales/maturities of investments | — | 42.1 | — | — | 42.1 | |||||||||||||||
Capital expenditures | — | (89.9 | ) | (89.4 | ) | — | (179.3 | ) | ||||||||||||
Other | — | (1.5 | ) | (5.3 | ) | — | (6.8 | ) | ||||||||||||
Cash flows provided by (used in) investing activities | — | (49.3 | ) | (94.7 | ) | — | (144.0 | ) | ||||||||||||
Payments under senior secured credit facilities | (35.4 | ) | — | — | — | (35.4 | ) | |||||||||||||
Other | (1.3 | ) | — | (1.4 | ) | — | (2.7 | ) | ||||||||||||
Cash flows used in financing activities | (36.7 | ) | — | (1.4 | ) | — | (38.1 | ) | ||||||||||||
Effect of exchange rate changes on | — | — | (30.6 | ) | — | (30.6 | ) | |||||||||||||
cash | ||||||||||||||||||||
Increase in cash and cash equivalents | — | 13.7 | 150.9 | — | 164.6 | |||||||||||||||
Cash and cash equivalents, beginning | — | 176.4 | 151.4 | — | 327.8 | |||||||||||||||
of period | ||||||||||||||||||||
Cash and cash equivalents, end of | $ | — | $ | 190.1 | $ | 302.3 | $ | — | $ | 492.4 | ||||||||||
period | ||||||||||||||||||||
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | |||
31-May-14 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
A summary of restructuring accrual | ' | |||
A summary of the severance and benefit costs in the periods presented is as follows: | ||||
(in millions) | Restructuring Costs | |||
Restructuring Accrual: | ||||
Balance at May 31, 2011 | $ | 5.9 | ||
Costs incurred and charged to expense | 19.5 | |||
Costs paid or otherwise settled | (14.2 | ) | ||
Non-cash adjustments(1) | (1.7 | ) | ||
Balance at May 31, 2012 | 9.5 | |||
Costs incurred and charged to expense | 5.7 | |||
Costs paid or otherwise settled | (6.4 | ) | ||
Non-cash adjustments(1) | 0.1 | |||
Balance at May 31, 2013 | 8.9 | |||
Costs incurred and charged to expense | 53.7 | |||
Costs paid or otherwise settled | (22.3 | ) | ||
Non-cash adjustments(1) | 2.2 | |||
Balance at May 31, 2014 | $ | 42.5 | ||
-1 | Primarily related to foreign currency fluctuations. |
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
31-May-14 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Quarterly Results | ' | |||||||||||||||||||
Quarter ended | ||||||||||||||||||||
(in millions) | August 31, 2012 | November 30, 2012 | February 28, 2013 | May 31, 2013 | Fiscal year ended | |||||||||||||||
31-May-13 | ||||||||||||||||||||
Fiscal 2013 | ||||||||||||||||||||
Net sales | $ | 707.4 | $ | 790.1 | $ | 771.5 | $ | 783.9 | $ | 3,052.90 | ||||||||||
Gross profit | 507 | 582.4 | 533 | 557.1 | 2,179.50 | |||||||||||||||
Net loss | (31.5 | ) | (66.2 | ) | (304.5 | ) | (221.2 | ) | (623.4 | ) | ||||||||||
Quarter ended | ||||||||||||||||||||
(in millions) | 31-Aug-13 | 30-Nov-13 | 28-Feb-14 | 31-May-14 | Fiscal year ended | |||||||||||||||
31-May-14 | ||||||||||||||||||||
Fiscal 2014 | ||||||||||||||||||||
Net sales | $ | 730.7 | $ | 825.7 | $ | 822.5 | $ | 844.5 | $ | 3,223.40 | ||||||||||
Gross profit | 522.7 | 570.6 | 495.6 | 594.3 | 2,183.20 | |||||||||||||||
Net income (loss) | 31.1 | 4.9 | (65.9 | ) | 105.8 | 75.9 | ||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies and Nature of Operations (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||
Mar. 31, 2013 | 31-May-14 | 31-May-13 | 31-May-12 | Sep. 05, 2007 | Jul. 11, 2007 | Jun. 13, 2007 | Jul. 11, 2007 | Apr. 24, 2014 | Apr. 24, 2014 | Apr. 24, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | |
reporting_unit | product_category | Senior Secured Term Loan Facility [Member] | LVB Acquisition Holding, LLC [Member] | Zimmer [Member] | Zimmer [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
geographic_market | Biomet, Inc. [Member] | LVB Acquisition, Inc. [Member] | LVB Acquisition, Inc. [Member] | LVB Acquisition, Inc. [Member] | Zimmer [Member] | ||||||||
reportable_segment | LVB Acquisition, Inc. [Member] | ||||||||||||
principal_sales_channel | |||||||||||||
reporting_unit | |||||||||||||
country | |||||||||||||
operation_location | |||||||||||||
Shares eligible to vote on Merger Approval | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 536,034,330 | ' |
Shares eligible to vote on Merger Approval as a percentage of outstanding stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97.16% | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,350,000,000 | ' | ' | ' |
Cash paid to acquire business | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,350,000,000 | ' | ' | ' |
Number of shares issued in acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,704,677 | ' | ' | ' |
Equity interest issued as consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000,000 | ' | ' | ' |
Share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $91.73 | ' | ' |
Number of consecutive trading days used to determine the basis of share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | ' | ' | ' |
Repayments of outstanding debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,681,800,000 |
Days to consummate merger | ' | ' | ' | ' | ' | ' | ' | ' | ' | '15 days | ' | ' | ' |
Reclassification of instrument depreciation | ' | 202,900,000 | 181,600,000 | 182,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offer price | ' | ' | ' | ' | ' | ' | $46 | ' | ' | ' | ' | ' | ' |
Amount of credit agreement | ' | ' | ' | ' | ' | ' | ' | 6,165,000,000 | ' | ' | ' | ' | ' |
Borrowings to finance portion of the Offer and pay related fees and expenses | ' | ' | ' | ' | ' | 4,181,000,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding Shares tendered to Purchaser | ' | ' | ' | ' | ' | 82.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage of shareholders voted to approve the proposed merger | ' | ' | ' | ' | 91.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage, subsequent to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 97.00% | ' | ' | ' | ' |
Number of worldwide locations with operations (over 50) | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate number of countries with distribution | ' | 90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time period of development of highly durable joint replacement systems (over 30 years) | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of major product categories | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of geographic units | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held-to-maturity investments | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Swap liability | ' | ($20,200,000) | ($54,100,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of principal sales channels | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reporting units for purposes of testing goodwill | 6 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recent_Acquisitions_by_Biomet_1
Recent Acquisitions by Biomet - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | Oct. 05, 2013 | 31-May-14 | 31-May-13 | Feb. 28, 2014 | 24-May-12 | 31-May-14 |
Spine Acquisition [Member] | Spine Acquisition [Member] | Spine Acquisition [Member] | Spine Acquisition [Member] | Trauma [Member] | Trauma [Member] | ||||||||||||
Selling, general and administrative expense [Member] | Selling, general and administrative expense [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $150.80 | ' | ' | ' | ' | ' |
Cash paid to acquire business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 280 | ' |
Net sales | 844.5 | 822.5 | 825.7 | 730.7 | 783.9 | 771.5 | 790.1 | 707.4 | 3,223.40 | 3,052.90 | 2,838.10 | ' | ' | ' | ' | ' | ' |
Acquisition-related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.7 | ' | 17.7 | ' | 12.2 |
Incremental amortization and depreciation | ' | ' | ' | ' | ' | ' | ' | ' | $501.20 | $495.40 | $509.40 | ' | $1.90 | $4.60 | ' | ' | ' |
Recent_Acquisitions_by_Biomet_2
Recent Acquisitions by Biomet - Preliminary Purchase Price Allocation (Detail) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 | Oct. 05, 2013 | 24-May-12 |
In Millions, unless otherwise specified | Spine Acquisition [Member] | Trauma [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | $2 | ' |
Accounts receivable | ' | ' | ' | ' | 16.5 | ' |
Inventory | ' | ' | ' | ' | 24.8 | 93.7 |
Prepaid expenses and other | ' | ' | ' | ' | 11 | 2.1 |
Instruments | ' | ' | ' | ' | 9.9 | 29.2 |
Other property, plant and equipment | ' | ' | ' | ' | 2.1 | 7.2 |
Deferred tax liability | ' | ' | ' | ' | -39.5 | ' |
Liabilities assumed | ' | ' | ' | ' | ' | -5.6 |
Other liabilities assumed | ' | ' | ' | ' | -20.7 | ' |
Intangible assets | ' | ' | ' | ' | 102.3 | 141.5 |
Goodwill | 3,634.40 | 3,600.90 | 4,114.40 | 4,470.10 | 42.4 | 11.9 |
Preliminary purchase price | ' | ' | ' | ' | $150.80 | $280 |
Recent_Acquisitions_by_Biomet_3
Recent Acquisitions by Biomet - Pro Forma Information (Details) (Spine Acquisition [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Spine Acquisition [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Net sales from Acquiree | $41 | ' |
Net loss from Acquiree | -19.1 | ' |
Pro forma net sales | 3,262.30 | 3,139.60 |
Pro forma net income (loss) | $94.10 | ($655.40) |
Inventories_Components_of_Inve
Inventories - Components of Inventories (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $83.10 | $78.80 |
Work-in-process | 54.4 | 44.7 |
Finished goods | 555.9 | 500.5 |
Inventories | $693.40 | $624 |
Property_Plant_and_Equipment_U
Property, Plant and Equipment - Useful Lives (Detail) | 12 Months Ended |
31-May-14 | |
Land improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '20 years |
Buildings and leasehold improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '30 years |
Machinery and equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '5 years |
Machinery and equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '10 years |
Instruments [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property, plant and equipment | '4 years |
Property_Plant_and_Equipment_C
Property, Plant and Equipment - Components (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment | $1,421.90 | $1,281.50 |
Accumulated depreciation | -705.9 | -616.3 |
Total property, plant and equipment, net | 716 | 665.2 |
Land and land improvements [Member} | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment | 40.8 | 40.5 |
Buildings and leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment | 126.8 | 106.3 |
Machinery and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment | 414.5 | 375.4 |
Instruments [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment | 791.9 | 710.5 |
Construction in progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total property, plant and equipment | $47.90 | $48.80 |
Property_Plant_and_Equipment_T1
Property, Plant and Equipment - Textuals (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Depreciation expense | $202.90 | $181.60 | $182.20 |
Investments_Summary_of_Company
Investments - Summary of Company's Investment Securities (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Summary of Investment Holdings [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | $10.40 | $17.20 |
Available-for-sale, Unrealized Gains | 0.6 | 4.8 |
Available-for-sale, Unrealized Losses | 0.3 | 0 |
Available-for-sale, Fair Value | 10.7 | 22 |
Trading, Amortized Cost | 1.6 | 0.8 |
Trading, Realized Gains | 0.3 | 0.2 |
Trading, Realized Losses | -0.1 | 0 |
Trading, Fair Value | 1.8 | 1 |
Equity securities [Member] | ' | ' |
Summary of Investment Holdings [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 0.2 | 0.2 |
Available-for-sale, Unrealized Gains | 0.6 | 0.2 |
Available-for-sale, Unrealized Losses | 0.3 | 0 |
Available-for-sale, Fair Value | 0.5 | 0.4 |
Trading, Amortized Cost | 1.6 | 0.8 |
Trading, Realized Gains | 0.3 | 0.2 |
Trading, Realized Losses | -0.1 | 0 |
Trading, Fair Value | 1.8 | 1 |
Time deposit [Member] | ' | ' |
Summary of Investment Holdings [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 10.2 | 15.9 |
Available-for-sale, Unrealized Gains | 0 | 0.1 |
Available-for-sale, Unrealized Losses | 0 | 0 |
Available-for-sale, Fair Value | 10.2 | 16 |
Greek bonds [Member] | ' | ' |
Summary of Investment Holdings [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | ' | 1.1 |
Available-for-sale, Unrealized Gains | ' | 4.5 |
Available-for-sale, Unrealized Losses | ' | 0 |
Available-for-sale, Fair Value | ' | $5.60 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Proceeds on sales/maturities of investments | $42.80 | $5.50 | $42.10 |
Purchases of investments | $29.40 | $6.40 | $0.40 |
Investments_Summary_of_Investm
Investments - Summary of Investment Income (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Interest income | $1.20 | $0.10 | $0.40 |
Dividend income | 0 | 0.2 | 0.2 |
Net realized gains | 6.6 | 0.2 | 2 |
Total investment income | $7.80 | $0.50 | $2.60 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2013 | 31-May-13 | Feb. 28, 2013 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 | 31-May-14 | 31-May-14 | 31-May-13 | |
reporting_unit | reportable_segment | Europe [Member] | Dental Reconstructive [Member] | Spine and Bone Healing and Dental Reconstructive [Member] | ||||||
reporting_unit | ||||||||||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | $3,600,900,000 | ' | $3,634,400,000 | $3,600,900,000 | $4,114,400,000 | $4,470,100,000 | ' | ' | ' |
Number of reportable segments | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Number of reporting units for purposes of testing goodwill | 6 | ' | ' | 6 | ' | ' | ' | ' | ' | ' |
Goodwill and intangible assets impairment charge | ' | 334,100,000 | 567,400,000 | 0 | 567,400,000 | 529,800,000 | ' | 240,000,000 | 327,400,000 | 529,800,000 |
Discount rates used in impairment test | 10.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on fair value of the consolidated company by a 1% increase in discount rate utilized | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impact on fair value of the consolidated company by a 1% decrease in discount rate utilized | 1,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment charge | ' | ' | ' | 0 | 473,000,000 | 291,900,000 | ' | ' | ' | ' |
Intangible assets, expected amortization expense during next 12 months | ' | ' | ' | 278,600,000 | ' | ' | ' | ' | ' | ' |
Intangible assets, expected amortization expense for year 2 | ' | ' | ' | 273,700,000 | ' | ' | ' | ' | ' | ' |
Intangible assets, expected amortization expense for year 3 | ' | ' | ' | 270,000,000 | ' | ' | ' | ' | ' | ' |
Intangible assets, expected amortization expense for year 4 | ' | ' | ' | 252,600,000 | ' | ' | ' | ' | ' | ' |
Intangible assets, expected amortization expense for year 5 | ' | ' | ' | $246,600,000 | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning of period | $3,600.90 | $4,114.40 | $4,470.10 |
Goodwill acquired | 42.4 | 11.9 | 0 |
Currency translation | -8.9 | -52.4 | -63.8 |
Impairment charge | 0 | -473 | -291.9 |
End of Period | 3,634.40 | 3,600.90 | 4,114.40 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ' | ' | ' |
Gross carrying amount | 5,317.70 | 5,284.20 | 5,324.70 |
Accumulated impairment losses | -1,683.30 | -1,683.30 | -1,210.30 |
Net carrying amount | $3,634.40 | $3,600.90 | $4,114.40 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-13 | 31-May-14 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | $5,309.60 |
Gross Carrying Amount | 5,358.70 | ' |
Impairment Charge | -145.1 | ' |
New Carrying Amount | 5,213.60 | ' |
Accumulated Amortization | -1,634.10 | -1,870 |
Impairment Charge | 50.7 | ' |
Net Carrying Amount | 3,630.20 | 3,439.60 |
Core technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 1,743.30 |
Gross Carrying Amount | 1,772.60 | ' |
Impairment Charge | -39 | ' |
New Carrying Amount | 1,733.60 | ' |
Accumulated Amortization | -481.1 | -569.8 |
Impairment Charge | 4.1 | ' |
Net Carrying Amount | 1,256.60 | 1,173.50 |
Completed technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 672 |
Gross Carrying Amount | 628.8 | ' |
Impairment Charge | -48.5 | ' |
New Carrying Amount | 580.3 | ' |
Accumulated Amortization | -254.9 | -262.1 |
Impairment Charge | 36.7 | ' |
Net Carrying Amount | 362.1 | 409.9 |
Product trade names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 208.1 |
Gross Carrying Amount | 204.2 | ' |
Impairment Charge | 0 | ' |
New Carrying Amount | 204.2 | ' |
Accumulated Amortization | -65.9 | -77.6 |
Impairment Charge | 0 | ' |
Net Carrying Amount | 138.3 | 130.5 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 2,371.60 |
Gross Carrying Amount | 2,429.50 | ' |
Impairment Charge | -46.1 | ' |
New Carrying Amount | 2,383.40 | ' |
Accumulated Amortization | -828.4 | -955.9 |
Impairment Charge | 9.9 | ' |
Net Carrying Amount | 1,564.90 | 1,415.70 |
Non-compete contracts [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 4.9 |
Gross Carrying Amount | 4.6 | ' |
Impairment Charge | 0 | ' |
New Carrying Amount | 4.6 | ' |
Accumulated Amortization | -3.8 | -4.6 |
Impairment Charge | 0 | ' |
Net Carrying Amount | 0.8 | 0.3 |
Sub-total [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 4,999.90 |
Gross Carrying Amount | 5,039.70 | ' |
Impairment Charge | -133.6 | ' |
New Carrying Amount | 4,906.10 | ' |
Accumulated Amortization | -1,634.10 | -1,870 |
Impairment Charge | 50.7 | ' |
Net Carrying Amount | 3,322.70 | 3,129.90 |
Corporate trade names [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | ' | 309.7 |
Gross Carrying Amount | 319 | ' |
Impairment Charge | -11.5 | ' |
New Carrying Amount | 307.5 | ' |
Accumulated Amortization | 0 | 0 |
Impairment Charge | 0 | ' |
Net Carrying Amount | $307.50 | $309.70 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Weighted Average Useful Lives (Detail) | 12 Months Ended |
31-May-14 | |
Core technology [Member] | ' |
Goodwill And Other Intangible Assets [Line Items] | ' |
Weighted Average Useful Life | '15 years |
Completed technology [Member] | ' |
Goodwill And Other Intangible Assets [Line Items] | ' |
Weighted Average Useful Life | '9 years |
Product trade names [Member] | ' |
Goodwill And Other Intangible Assets [Line Items] | ' |
Weighted Average Useful Life | '13 years |
Customer relationships [Member] | ' |
Goodwill And Other Intangible Assets [Line Items] | ' |
Weighted Average Useful Life | '14 years |
Non-compete contracts [Member] | ' |
Goodwill And Other Intangible Assets [Line Items] | ' |
Weighted Average Useful Life | '1 year |
Debt_Schedule_of_Terms_and_Car
Debt - Schedule of Terms and Carrying Value of Debt Instrument (Detail) | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | Sep. 25, 2013 | Aug. 02, 2012 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Senior notes [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Senior notes [Member] | Senior subordinated notes [Member] | Senior subordinated notes [Member] |
USD [Member] | China Facility [Member] | China Facility [Member] | China Facility [Member] | China Facility [Member] | China Facility [Member] | China Facility [Member] | China Facility [Member] | European facilities [Member] | European facilities [Member] | European facilities [Member] | European facilities [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | United States of America, Dollars | Asset-based revolving credit facility [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | 7% Senior Notes Due Two Thousand Twenty [Member] | 6.50% Senior Subordinated Notes Due Two Thousand Twenty [Member] | 6.50% Senior Subordinated Notes Due Two Thousand Twenty [Member] | |||
China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | China, Yuan Renminbi | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | USD ($) | EUR (€) | USD ($) | EUR (€) | Cash flow revolving credit facility, 25-Apr-17 [Member] | Cash flow revolving credit facility, 25-Apr-17 [Member] | Cash flow revolving credit facility, 25-Apr-17 [Member] | Asset-based revolving credit facility [Member] | Asset-based revolving credit facility [Member] | Asset-based revolving credit facility [Member] | LIBOR [Member] | Euro Member Countries, Euro | Euro Member Countries, Euro | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | USD ($) | USD ($) | ||||||
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | LIBOR [Member] | USD ($) | USD ($) | LIBOR [Member] | USD ($) | USD ($) | LIBOR [Member] | LIBOR [Member] | USD ($) | USD ($) | LIBOR [Member] | USD ($) | EUR (€) | USD ($) | EUR (€) | LIBOR [Member] | USD ($) | USD ($) | LIBOR [Member] | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of term loan under the credit facility | ' | ' | 1-Aug-20 | ' | ' | ' | ' | 16-Jan-16 | ' | ' | ' | ' | ' | ' | 25-Apr-17 | ' | ' | 25-Jul-17 | ' | ' | ' | 25-Jul-17 | 25-Jul-17 | ' | 25-Jul-17 | ' | ' | 25-Mar-15 | 25-Mar-15 | ' | ' | ' | 25-Mar-15 | ' | ' | ' | 1-Oct-20 | ' |
Interest rate description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'InterestB Free | 'InterestB Free | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | 6.50% | ' |
Debt Instruments basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.10% | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | 2.00% | 3.50% | ' | ' | 4.00% | ' | ' | 3.50% | ' | ' | ' | ' | 3.00% | ' | ' | 3.00% | ' | ' | ' |
Premium on notes | $32.50 | $37.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | $5,720.40 | $5,966.40 | ' | $2,959.60 | 103.3 | $2,116.80 | 104.3 | $0 | $6 | ' | $0 | € 0 | $2.30 | € 1.80 | $0 | $0 | ' | $0 | $0 | ' | ' | ' | ' | ' | $0 | $217.90 | ' | $0 | € 0 | $856.40 | € 659.40 | ' | $0 | $167.80 | ' | ' | $800 | $800 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
31-May-14 | 31-May-13 | 31-May-12 | Aug. 02, 2012 | Aug. 02, 2012 | Aug. 02, 2012 | Oct. 04, 2012 | 31-May-14 | Aug. 02, 2012 | Aug. 02, 2012 | Nov. 14, 2012 | Nov. 14, 2012 | 31-May-14 | Oct. 02, 2012 | 31-May-14 | 31-May-13 | Oct. 02, 2012 | Aug. 08, 2012 | Aug. 08, 2012 | 31-May-14 | 31-May-13 | Oct. 02, 2012 | Oct. 02, 2012 | 31-May-14 | Aug. 31, 2012 | Aug. 08, 2012 | 31-May-14 | Sep. 25, 2013 | Sep. 25, 2013 | Sep. 10, 2013 | Sep. 10, 2013 | 31-May-14 | Feb. 28, 2014 | Sep. 25, 2013 | Aug. 02, 2012 | Aug. 02, 2012 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-13 | 31-May-14 | 31-May-13 | Aug. 02, 2012 | 31-May-14 | 31-May-14 | Sep. 25, 2013 | 31-May-14 | 31-May-14 | |
USD ($) | USD ($) | USD ($) | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Jul-17 [Member] | Term loan facility, 25-Jul-17 [Member] | Non Extended Term Loans [Member] | Term loan facility, 25-Mar-15 [Member] | Asset-based revolving credit facility [Member] | Asset-based revolving credit facility [Member] | Senior subordinated notes [Member] | Senior subordinated notes [Member] | Senior subordinated notes [Member] | Senior subordinated notes [Member] | Senior subordinated notes [Member] | Senior subordinated notes [Member] | Senior notes [Member] | Senior notes [Member] | Senior notes [Member] | Senior notes [Member] | Senior notes [Member] | Senior notes [Member] | Senior notes [Member] | Senior notes [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | Loans Payable [Member] | |
USD ($) | United States of America, Dollars | Euro Member Countries, Euro | United States of America, Dollars | USD ($) | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | 6.500% senior notes due 2020 [Member] | 6.500% senior notes due 2020 [Member] | 6.50% Senior Subordinated Notes Due Two Thousand Twenty [Member] | 6.50% Senior Subordinated Notes Due Two Thousand Twenty [Member] | 11.625% Senior Subordinated Notes [Member] | 11.625% Senior Subordinated Notes [Member] | 6.500% senior notes due 2020 [Member] | 6.500% senior notes due 2020 [Member] | 6.500% senior notes due 2020 [Member] | 6.500% senior notes due 2020 [Member] | 10%t Senior Notes Due 2017 [Member] | 10.375% And 11.1% Senior PIK Toggle Notes Due Two Thousand Seventeen [Member] | 10.375% And 11.1% Senior PIK Toggle Notes Due Two Thousand Seventeen [Member] | 11.625% Senior Subordinated Notes [Member] | USD ($) | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | Senior secured credit facility [Member] | Senior secured credit facility [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | Asset-based revolving credit facility [Member] | One-month LIBOR [Member] | Three-month LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | LIBOR [Member] | ||||||
USD ($) | Joinder Agreement [Member] | Joinder Agreement [Member] | Euro Member Countries, Euro | United States of America, Dollars | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | Euro Member Countries, Euro | United States of America, Dollars | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | Euro Member Countries, Euro | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | United States of America, Dollars | Term loan facility, 25-Mar-15 [Member] | Term loan facility, 25-Mar-15 [Member] | ||||||||||||||
EUR (€) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | USD ($) | Euro Member Countries, Euro | United States of America, Dollars | ||||||||||||||||||||||||||||||||||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | 6.50% | ' | ' | ' | 6.50% | 6.50% | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2020 | ' | '2020 | ' | ' | ' | '2020 | '2020 | ' | ' | ' | '2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of term loans subject to variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | 0.23% | ' | ' | ' |
Term loan payment in each year, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of required payments under the term loan facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $31,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving borrowing base | 689,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing fees related to credit agreement | 72,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Refinancing Fees And Expenses | 15,500,000 | 79,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000,000 | ' | ' | 384,200,000 | 140,000,000 | 1,000,000,000 | ' | ' | 825,000,000 | 343,400,000 | ' | ' | 140,000,000 | ' | 870,500,000 | ' | ' | ' | ' | ' | 870,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Toggle notes tender percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43.91% | ' | ' | ' | ' | ' | 45.12% | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of term loan under the credit facility | ' | ' | ' | ' | ' | 25-Apr-17 | ' | ' | 24-Dec-14 | 25-Mar-15 | ' | ' | ' | ' | 1-Oct-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25-Mar-15 | 25-Mar-15 | ' | ' | 25-Mar-15 | ' | 25-Jul-17 | ' | ' | ' | ' | ' |
Loss on the retirement of bonds | 155,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of deferred financing fees | 17,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess of term loan | ' | ' | ' | 165,000,000 | 165,000,000 | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,111,400,000 | ' | 631,300,000 | 1,007,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | 5,720,400,000 | 5,966,400,000 | ' | ' | ' | ' | 32,900,000 | 392,700,000 | ' | ' | ' | ' | ' | ' | 800,000,000 | 800,000,000 | ' | ' | ' | 1,825,000,000 | 1,825,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 856,400,000 | 659,400,000 | 0 | 167,800,000 | ' | ' | ' | ' | ' | ' |
New asset-based revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Add-on to the extended U.S. dollar term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 730,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt retired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $870,200,000 | € 657,700,000 | $221,400,000 | € 167,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | 3.00% | 3.00% |
Debt_Debt_Shortterm_and_Longte
Debt Debt - Short-term and Long-term Classification (Details) (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Short-term borrowings | $133.10 | $40.30 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' |
2015 | 133.1 | ' |
2016 | 29.8 | ' |
2017 | 29.8 | ' |
2018 | 2,870.20 | ' |
2018 | 0 | ' |
Thereafter | 2,657.50 | ' |
Long-term debt (including current maturities) | 5,720.40 | 5,966.40 |
Senior secured credit facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short-term borrowings | 133.1 | 33.3 |
European facilities [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Short-term borrowings | $0 | $7 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Detail) (USD $) | 31-May-14 | 31-May-13 |
In Millions, unless otherwise specified | ||
Liabilities: | ' | ' |
Fair value of long-term debt | $5,912.90 | $6,090.40 |
Carrying value of long-term debt | 5,720.40 | 5,966.40 |
Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 319.9 | 269.7 |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 21.5 | 54.7 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 145.3 | 94.4 |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 0 | 0 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 159.4 | 175.2 |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 21.5 | 54.7 |
Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 15.2 | 0.1 |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 0 | 0 |
Money market funds [Member] | Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 145 | 93.1 |
Money market funds [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 145 | 93.1 |
Money market funds [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Money market funds [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Time deposit [Member] | Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 25.8 | 31.5 |
Time deposit [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Time deposit [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 25.8 | 31.5 |
Time deposit [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Greek bonds [Member] | Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | ' | 5.6 |
Greek bonds [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | ' | 0 |
Greek bonds [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | ' | 5.6 |
Greek bonds [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | ' | 0 |
Pension plan assets [Member] | Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 147.5 | 137.6 |
Pension plan assets [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Pension plan assets [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 132.5 | 137.6 |
Pension plan assets [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 15 | 0 |
Foreign currency exchange contracts [Member] | Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 1.1 | 0.5 |
Foreign currency exchange contracts [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Foreign currency exchange contracts [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 1.1 | 0.5 |
Foreign currency exchange contracts [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Equity securities [Member] | Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0.5 | 1.4 |
Equity securities [Member] | Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0.3 | 1.3 |
Equity securities [Member] | Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0 | 0 |
Equity securities [Member] | Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Total assets, Fair Value | 0.2 | 0.1 |
Interest rate swaps [Member] | Fair Value [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 20.2 | 54.1 |
Interest rate swaps [Member] | Level 1 [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 0 | 0 |
Interest rate swaps [Member] | Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 20.2 | 54.1 |
Interest rate swaps [Member] | Level 3 [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 0 | 0 |
Foreign currency exchange contracts [Member] | Fair Value [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 1.3 | 0.6 |
Foreign currency exchange contracts [Member] | Level 1 [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 0 | 0 |
Foreign currency exchange contracts [Member] | Level 2 [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | 1.3 | 0.6 |
Foreign currency exchange contracts [Member] | Level 3 [Member] | ' | ' |
Liabilities: | ' | ' |
Total liabilities, Fair Value | $0 | $0 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | Sep. 25, 2007 | Sep. 25, 2007 | 31-May-14 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Swap agreements | Swap agreements | Derivative Current [Member] | Derivative Current [Member] | Derivative Noncurrent [Member] | Derivative Noncurrent [Member] | Credit valuation adjustment [Member] | Credit valuation adjustment [Member] | Euro term loan [Member] | Euro term loan [Member] | U.S. dollar term loan [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | |||||
Derivative Instruments And Hedging Activities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedged portion of net investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,207.40 | € 875 | ' |
Swap liability | 20.2 | 54.1 | ' | ' | 8.8 | 19.9 | 11.6 | 34.8 | -0.2 | -0.6 | ' | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.24% |
Effective interest rate amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,355 |
Term loan fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.07% |
Derivative Effective Interest Rate, Unhedged Portion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.62% |
Effective weighted average interest rate on all outstanding debt, including the interest rate swaps | ' | ' | 5.37% | 6.29% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives not designated as hedging instruments on a gross basis assets | 1.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives not designated as hedging instruments prepaid expenses and other and liabilities | $1.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Schedule of Summary Existing Swap Agreements (Detail) | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | ||
In Millions, unless otherwise specified | USD ($) | USD ($) | Credit valuation adjustment [Member] | Credit valuation adjustment [Member] | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | Swap agreements | ||
USD ($) | USD ($) | Euro [Member] | Euro [Member] | Euro [Member] | Euro [Member] | Euro [Member] | Euro [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | USD [Member] | |||||
September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | September 25, 2017 [Member] | December 25, 2013 [Member] | December 25, 2013 [Member] | September 25, 2014 [Member] | September 25, 2014 [Member] | March 25, 2015 [Member] | March 25, 2015 [Member] | September 25, 2016 [Member] | September 25, 2016 [Member] | |||||||
USD ($) | EUR (€) | USD ($) | September 25, 2012 [Member] | September 25, 2012 [Member] | September 25, 2012 [Member] | USD ($) | USD ($) | September 25, 2012 [Member] | September 25, 2012 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||
USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||
Outstanding Interest Rate Swap Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Structure | ' | ' | ' | ' | '5 years | '5 years | ' | '5 years | '5 years | ' | '5 years | ' | '5 years | ' | '5 years | ' | '5 years | ' | '2 years | ' | '3 years | ' | ||
Derivative, Notional Amount | ' | ' | ' | ' | ' | € 200 | [1] | ' | ' | € 200 | [1] | ' | $350 | ' | $350 | ' | $325 | ' | $195 | ' | $190 | ' | $270 | ' |
Effective Date | ' | ' | ' | ' | 'September 25, 2012 | 'September 25, 2012 | ' | 'September 25, 2012 | 'September 25, 2012 | ' | 'September 25, 2012 | ' | 'September 25, 2012 | ' | 'December 26, 2008 | ' | 'September 25, 2009 | ' | 'March 25, 2013 | ' | 'December 27, 2013 | ' | ||
Termination Date | ' | ' | ' | ' | 'September 25, 2017 | 'September 25, 2017 | ' | 'September 25, 2017 | 'September 25, 2017 | ' | 'September 25, 2017 | ' | 'September 25, 2017 | ' | 'December 25, 2013 | ' | 'September 25, 2014 | ' | 'March 25, 2015 | ' | 'September 25, 2016 | ' | ||
Fair Value Asset (Liability) | ($20.20) | ($54.10) | $0.20 | $0.60 | $0 | ' | ($11.10) | $0 | ' | ($11.30) | ($5.90) | ($7.40) | ($6) | ($7.50) | $0 | ($3.80) | ($1.70) | ($6.70) | ($1) | ($1.70) | ($5.80) | ($5.20) | ||
[1] | The euro interest rate swaps were terminated during the second quarter of fiscal year 2014. |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Schedule of Interest Rate Swap (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Amount of gain (loss) recognized in OCI | $34 | $22 | $20.50 |
Amount of (gain) loss reclassified from accumulated OCI into interest expense (effective portion) | 25.3 | 49.5 | 69 |
Amount (gain) loss recognized in other income (expense) (ineffective portion and amount excluded from effectiveness testing) | $21.80 | $0 | $0 |
Retirement_and_Pension_Plans_A
Retirement and Pension Plans - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
U.S. [Member] | ' | ' | ' |
Defined contribution profit sharing plan | ' | ' | ' |
Percentage of team member's contribution matched by company | 100.00% | ' | ' |
Maximum percentage of team member's compensation matched by Company | 6.00% | ' | ' |
Amounts expensed under profit sharing plan | $13.60 | $12.70 | $11.60 |
Europe [Member] | ' | ' | ' |
Defined contribution profit sharing plan | ' | ' | ' |
Amounts expensed under profit sharing plan | $10.30 | $8 | $7.20 |
Retirement_and_Pension_Plans_D
Retirement and Pension Plans - Defined Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service costs | $5 | $2.90 | $0.60 |
Interest costs | 6.9 | 6.1 | 6.3 |
Expected return on plan assets | -6.9 | -5.1 | -5.6 |
Recognized actuarial losses | 1.5 | 2.7 | 1.6 |
Net periodic benefit costs: | 6.5 | 6.6 | 2.9 |
Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligationbbeginning of year | 167.5 | 128.1 | ' |
Service costs | 5 | 2.9 | 0.6 |
Interest costs | 6.9 | 6.1 | 6.3 |
Plan participant contribution | 0 | 0.4 | ' |
Actuarial (gains)/losses | 9 | 20.1 | ' |
Benefits paid from plan | -5.9 | -4.2 | ' |
Plan amendments | -0.5 | 0 | ' |
Plan settlements | 3.6 | 0 | ' |
Net transfer in (out) | -23.2 | 16.6 | ' |
Effect of exchange rates | 14.9 | -2.5 | ' |
Projected benefit obligationbend of year | 177.3 | 167.5 | 128.1 |
Accumulated benefit obligation | 168.3 | 165.1 | ' |
Change in Plan Assets [Roll Forward] | ' | ' | ' |
Plan assets at fair valuebbeginning of year | 137.6 | 108.7 | ' |
Actual return on plan assets | 11.1 | 15.5 | ' |
Company contribution | 9.1 | 7.6 | ' |
Plan participant contribution | 0 | 0.4 | ' |
Benefits paid from plan | -5.9 | -4 | ' |
Plan settlements | -0.5 | 0 | ' |
Net transfer in (out) | -16.7 | 12.1 | ' |
Effect of exchange rates | 12.8 | -2.7 | ' |
Plan assets at fair valuebend of year | 147.5 | 137.6 | 108.7 |
Unfunded status at end of year | 29.8 | 29.9 | ' |
Amounts Expected to be Recognized in Net Periodic Cost in Next Fiscal Year [Abstract] | ' | ' | ' |
Amortization of net actuarial losses | 3.9 | ' | ' |
Weighted-average Assumptions Used to Project Benefit Obligation and Net Periodic Benefit Cost | ' | ' | ' |
Discount rate | 4.11% | 4.00% | 4.57% |
Expected long-term rate of return on plan assets | 4.22% | 4.20% | 4.51% |
Rate increase in compensation levels | 2.85% | 2.70% | 2.58% |
Projected Future Benefit Payments [Abstract] | ' | ' | ' |
Projected future benefit payments, fiscal 2013 | 5.4 | ' | ' |
Projected future benefit payments, fiscal 2014 | 5.3 | ' | ' |
Projected future benefit payments, fiscal 2015 | 5.6 | ' | ' |
Projected future benefit payments, fiscal 2016 | 5.9 | ' | ' |
Projected future benefit payments, fiscal 2017 | 6.1 | ' | ' |
Projected future benefit payments, fiscal 2018 to 2021 | 37.3 | ' | ' |
Expected Company contribution during fiscal 2013 | 5.4 | ' | ' |
Debt securities [Member] | ' | ' | ' |
Projected Future Benefit Payments [Abstract] | ' | ' | ' |
Retirement plan asset allocation | 47.00% | 45.00% | ' |
Equity securities [Member] | ' | ' | ' |
Projected Future Benefit Payments [Abstract] | ' | ' | ' |
Retirement plan asset allocation | 30.00% | 31.00% | ' |
Other plan asset categories [Member] | ' | ' | ' |
Projected Future Benefit Payments [Abstract] | ' | ' | ' |
Retirement plan asset allocation | 23.00% | 24.00% | ' |
Deferred income tax asset [Member] | ' | ' | ' |
Amounts Recognized in Consolidated Balance Sheets [Abstract] | ' | ' | ' |
Amounts recognized in consolidated balance sheets | 9.8 | 9.5 | ' |
Employee related obligations [Member] | ' | ' | ' |
Amounts Recognized in Consolidated Balance Sheets [Abstract] | ' | ' | ' |
Amounts recognized in consolidated balance sheets | 29.8 | 29.9 | ' |
Other comprehensive income (loss) [Member] | ' | ' | ' |
Amounts Recognized in Consolidated Balance Sheets [Abstract] | ' | ' | ' |
Amounts recognized in consolidated balance sheets | ($11) | ($10) | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes In Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ($5.90) | $122.90 |
OCI before reclassifications | 29.2 | -160 |
Reclassifications | 16 | 31.2 |
Accumulated other comprehensive income (loss), ending balance | 39.3 | -5.9 |
Unrecognized actuarial gain (loss) | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | -10 | -3 |
OCI before reclassifications | -1 | -7 |
Reclassifications | 0 | 0 |
Accumulated other comprehensive income (loss), ending balance | -11 | -10 |
Foreign currency translation adjustments | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | 35.5 | 173.7 |
OCI before reclassifications | 27.1 | -138.2 |
Reclassifications | 0 | 0 |
Accumulated other comprehensive income (loss), ending balance | 62.6 | 35.5 |
Unrealized gain (loss) on interest rate swaps | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | -34.2 | -47.3 |
OCI before reclassifications | 5.9 | -18.1 |
Reclassifications | 16 | 31.2 |
Accumulated other comprehensive income (loss), ending balance | -12.3 | -34.2 |
Unrealized gain (loss) on available-for-sale securities | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net Of Tax [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | 2.8 | -0.5 |
OCI before reclassifications | -2.8 | 3.3 |
Reclassifications | 0 | 0 |
Accumulated other comprehensive income (loss), ending balance | $0 | $2.80 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification Adjustments from OCI) (Details) (Swap agreements, Unrealized gain (loss) on interest rate swaps, Reclassification out of Accumulated Other Comprehensive Income [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Swap agreements | Unrealized gain (loss) on interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Interest expense | $25.30 | $49.50 | $69 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Tax Effect in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Equity [Abstract] | ' | ' | ' |
Unrecognized actuarial gain (loss), before tax | $11.70 | ($7.10) | ($3.40) |
Unrecognized actuarial gain (loss), tax | -12.7 | 0.1 | -0.8 |
Unrecognized actuarial gain (loss), net of tax | -1 | -7 | -4.2 |
Foreign currency translation adjustments, before tax | 27.4 | -142.5 | -79.9 |
Foreign currency translation adjustments, tax | -0.3 | 4.3 | 17.8 |
Foreign currency translation adjustments, net of tax | 27.1 | -138.2 | -62.1 |
Unrealized gain (loss) on interest rate swaps, before tax | 8.7 | -27.6 | -48.1 |
Unrealized gain (loss) on interest rate swaps, tax | -2.8 | 9.5 | 17.7 |
Unrealized gain (loss) on interest rate swaps, net of tax | 5.9 | -18.1 | -30.4 |
Reclassifications on interest rate swaps, before tax | 25.3 | 49.5 | 69 |
Reclassifications on interest rate swaps, tax | -9.3 | -18.3 | -25.5 |
Reclassifications on interest rate swaps, net of tax | 16 | 31.2 | 43.5 |
Unrealized gain (loss) on available-for-sale securities, before tax | -2.8 | 3.4 | 4.3 |
Unrealized gain (loss) on available-for-sale securities, tax | 0 | -0.1 | 0 |
Unrealized gain (loss) on available-for-sale securities, net of tax | -2.8 | 3.3 | 4.3 |
Other comprehensive income (loss), before tax | 70.3 | -124.3 | -58.1 |
Other comprehensive income (loss), tax | -25.1 | -4.5 | 9.2 |
Total other comprehensive income (loss) | $45.20 | ($128.80) | ($48.90) |
Sharebased_Compensation_and_St2
Share-based Compensation and Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Nov. 30, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-12 | Dec. 31, 2011 | Jul. 31, 2012 | Jul. 30, 2012 | 31-May-07 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | Jul. 31, 2012 | Jul. 30, 2012 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-13 | 31-May-12 |
management_dividend_award | LVB Acquisition, Inc. [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Stock options [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Restricted stock units [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | ||||
sponsor | Participant resigns without good reason [Member] | Participant terminated for any reason other than cause, death or disability, or by the participant with good reason [Member] | Participant terminated by reason of death or disability [Member] | Time-based options [Member] | Performance-based options [Member] | 2012 Restricted Stock Unit Plan [Member] | New RSU Plan [Member] | Time-based options [Member] | Performance-based options [Member] | |||||||||||||||||
Installment | New RSU Plan [Member] | New RSU Plan [Member] | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | ' | $18.20 | $38.30 | $16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of common stock authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,520,000 | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | 10,000,000 | 4,000,000 | ' | ' | ' |
Increase in authorized share pool (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of shares granted (usd per share) | ' | $8.37 | $7.88 | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sharebased Compensation Arrangement By Share-based Payment Award, Options, Contractual Term | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years | ' | ' | '2 years | ' | ' | ' | '5 years | ' | ' |
Sponsors with SEC periodic reporting requirements | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time based options as a percentage of total options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance based options as a percentage of total options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance | ' | ' | ' | ' | ' | 1,851,173 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,324,375 | ' | ' | ' | ' | ' |
Leverage award shares outstanding | ' | ' | ' | ' | ' | 467,963 | 504,500 | 504,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration period of vested awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '90 days | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of options granted during the period | ' | ' | ' | ' | ' | $2.03 | $2.23 | $1.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share-based compensation expense | ' | ' | ' | ' | ' | $17.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected weighted average period of recognition | ' | ' | ' | ' | ' | '2 years 5 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 0 months | ' | ' |
Purchase of aggregate shares of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,821,500 | ' | ' | ' | ' | ' | ' | ' | 3,665,000 | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation, new options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,821,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation, restricted stock units granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,795,000 | ' | ' | ' | ' | ' | 643,500 | 13,631,500 | 30,000 |
Exercise price for stock options decreased to current fair value | $7.88 | $7.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting schedule in excess of original vesting schedule | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management dividend awards vested per each restricted stock unit | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value | ' | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of common stock | ' | 14,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock Units, Settled With Cash, Number of Installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Sharebased_Compensation_and_St3
Share-based Compensation and Stock Plans - Stock Option Schedules (Details) (USD $) | 12 Months Ended | ||
31-May-14 | 31-May-13 | 31-May-12 | |
Stock Options Outstanding [Roll Forward] | ' | ' | ' |
Outstanding, beginning of period (shares) | 35,967,289 | 34,751,708 | 35,024,625 |
Granted (shares) | 2,843,100 | 3,564,600 | 2,594,500 |
Forfeitures (shares) | -2,303,679 | -2,349,019 | -2,867,417 |
Exercised (shares) | 162,117 | ' | ' |
Outstanding, end of period (shares) | 36,668,827 | 35,967,289 | 34,751,708 |
Stock Options Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Outstanding, beginning of period (usd per share) | $7.88 | $10 | $10 |
Granted (usd per share) | $8.37 | $7.88 | $10 |
Forfeitures (usd per share) | $7.88 | $7.88 | $10 |
Exercised (usd per share) | $7.88 | ' | ' |
Outstanding, end of period (usd per share) | $8.01 | $7.88 | $10 |
Stock Options Fair Value Assumptions [Abstract] | ' | ' | ' |
Risk-free interest rate | 1.50% | 0.69% | ' |
Dividend yield | 0.00% | 0.00% | ' |
Expected volatility | 24.45% | 30.91% | ' |
Expected life in years | '6 years | '6 years | ' |
Stock Options Outstanding Vested and Exercisable [Abstract] | ' | ' | ' |
Oustanding Stock Options Vested and Expected to Vest, Number of outstanding options | 36,668,827 | 35,967,289 | ' |
Oustanding Stock Options Vested and Expected to Vest, Weighted average remaining contractual life | '5 years 10 months 6 days | '6 years 10 months 6 days | ' |
Oustanding Stock Options Vested and Expected to Vest, Weighted average exercise price per share | $8.01 | $7.88 | ' |
Oustanding Stock Options Vested and Expected to Vest, Intrinsic value | $0 | $0 | ' |
Options that are Exercisable, Number of oustanding options | 26,284,126 | 24,620,247 | ' |
Options that are Exercisable, Weighted average remaining contractual life | '5 years 5 months 5 days | '6 years 5 months 5 days | ' |
Options that are Exercisable, Weighted average exercise price per share | $7.88 | $7.88 | ' |
Options that are Exercisable, Intrinsic value | $0 | $0 | ' |
Sharebased_Compensation_and_St4
Share-based Compensation and Stock Plans - Restricted Stock Units (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | Feb. 10, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock, par value | $0.01 | $0.01 | ' | ' |
Restricted Stock Units Outstanding [Roll Forward] | ' | ' | ' | ' |
Outstanding, end of period (shares) | ' | 13,053,500 | ' | ' |
Restricted Stock Units Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Outstanding, end of period (usd per share) | ' | $7.88 | ' | ' |
LVB Acquisition, Inc. [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock, par value | $0.01 | ' | ' | ' |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Number of shares of common stock called per restricted stock unit | ' | ' | ' | 1 |
Award vesting period | '5 years | ' | ' | ' |
Unrecognized share-based compensation expense | $12.40 | ' | ' | ' |
Potential accelerated compensation cost | $80.30 | ' | ' | ' |
Expected weighted average period of recognition | '2 years 0 months | ' | ' | ' |
Restricted Stock Units Outstanding [Roll Forward] | ' | ' | ' | ' |
Outstanding, beginning of period (shares) | ' | 3,665,000 | 3,835,000 | ' |
Granted (shares) | 643,500 | 13,631,500 | 30,000 | ' |
Vested (shares) | 0 | 0 | 0 | ' |
Forfeited (shares) | -1,021,375 | -578,000 | -200,000 | ' |
Outstanding, end of period (shares) | 12,675,625 | ' | 3,665,000 | ' |
Modification impact (shares) | ' | -3,665,000 | ' | ' |
Restricted Stock Units Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Outstanding, beginning of period (usd per share) | ' | $10 | $10 | ' |
Granted (usd per share) | $8.56 | $7.88 | $10 | ' |
Vested (usd per share) | $0 | $0 | $0 | ' |
Forfeited (usd per share) | $7.88 | $7.88 | $10 | ' |
Outstanding, end of period (usd per share) | $7.91 | ' | $10 | ' |
Modification impact (usd per share) | ' | $10 | ' | ' |
Sharebased_Compensation_and_St5
Share-based Compensation and Stock Plans - Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Nov. 30, 2012 | 31-May-14 | 31-May-13 | Jul. 31, 2012 | Jul. 30, 2012 | Jul. 31, 2012 | Jul. 30, 2012 | |
management_dividend_award | Stock options [Member] | Stock options [Member] | Restricted stock units [Member] | Restricted stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Purchase of aggregate shares of common stock | ' | ' | ' | ' | 29,821,500 | ' | 3,665,000 |
Stock based compensation, new options granted | ' | ' | ' | 29,821,500 | ' | ' | ' |
Stock based compensation, restricted stock units granted | ' | ' | ' | ' | ' | 10,795,000 | ' |
Exercise price for stock options decreased to current fair value | $7.88 | $7.88 | ' | ' | ' | ' | ' |
Vesting schedule in excess of original vesting schedule | ' | '2 years | ' | ' | ' | ' | ' |
Management dividend awards vested per each restricted stock unit | ' | 1 | ' | ' | ' | ' | ' |
Common stock, par value | ' | $0.01 | $0.01 | ' | ' | ' | ' |
Maximum number of shares of common stock | ' | 14,000,000 | ' | ' | ' | ' | ' |
Income_Taxes_Schedules_Details
Income Taxes - Schedules (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Components of loss before income taxes [Abstract] | ' | ' | ' |
Domestic | ($309) | ($747.40) | ($796.10) |
Foreign | 269.1 | 6.3 | 205.3 |
Loss before income taxes | -39.9 | -741.1 | -590.8 |
Current: | ' | ' | ' |
Federal | 43.9 | 13.7 | -9.5 |
State | 8.4 | 6.8 | 3 |
Foreign | 70.6 | 35.5 | 42.6 |
Sub-total | 122.9 | 56 | 36.1 |
Deferred: | ' | ' | ' |
Federal | -118.7 | -169.3 | -83.6 |
State | -86.6 | 11.9 | -0.9 |
Foreign | -33.4 | -16.3 | -83.6 |
Sub-total | -238.7 | -173.7 | -168.1 |
Total income tax benefit | -115.8 | -117.7 | -132 |
Reconciliation of statutory federal income tax rate to effective tax rate [Abstract] | ' | ' | ' |
Income tax computed at U.S. statutory rate | -14 | -259.4 | -206.8 |
State taxes, net of federal deduction | -18.5 | -13.3 | -3 |
Effect of foreign taxes | -62.5 | -11.9 | -6.5 |
Change in liability for uncertain tax positions | 69.5 | 19.3 | -21.9 |
Goodwill impairment | 0 | 166 | 102.2 |
Change in tax laws and rates | -10.9 | 14.8 | -15.4 |
Tax on foreign earnings, net of foreign tax credits | -38.6 | -43.7 | 52.6 |
Nondeductible/nontaxable items | -24.2 | 4.1 | -23.6 |
Adjustment of prior estimates | 13.3 | 3.7 | -22.6 |
Change in valuation allowance | -32.4 | 0 | -0.4 |
Other | 2.5 | 2.7 | 13.4 |
Total income tax benefit | -115.8 | -117.7 | -132 |
Deferred income tax assets: | ' | ' | ' |
Accounts receivable | 11.3 | 14.1 | ' |
Inventories | 86.7 | 68.8 | ' |
Reserves and accrued expenses | 120.4 | 85.7 | ' |
Tax benefit of net operating losses, tax credits and other carryforwards | 109.1 | 106.3 | ' |
Future benefit of uncertain tax positions | 15.9 | 13 | ' |
Stock-based compensation | 62.4 | 55.7 | ' |
Unrealized mark-to-mark and currency gains and losses | 9.9 | 33.9 | ' |
Federal effect of state tax | 8.2 | 35.4 | ' |
Other | 18.7 | -23.9 | ' |
Deferred income tax assets | 442.6 | 389 | ' |
Less: Valuation allowance | ' | ' | ' |
Less: Valuation allowance | -16.7 | -68.8 | ' |
Total deferred income tax assets | 425.9 | 320.2 | ' |
Deferred income tax liabilities: | ' | ' | ' |
Property, plant, equipment and intangibles | -1,234.80 | -1,316.20 | ' |
Unremitted foreign earnings | 0 | -4.4 | ' |
Other | -9.8 | -9.5 | ' |
Total deferred income tax liabilities | -1,244.60 | -1,330.10 | ' |
Total net deferred income tax liabilities | -818.7 | -1,009.90 | ' |
Reconciliation of beginning and ending amount of unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning of period | 78.4 | 63 | 90.9 |
Addition based on tax positions related to the current year | 60.5 | 14.1 | 10.9 |
Addition (reduction) for tax positions of prior periods | 4.1 | 1.3 | -14.8 |
Reduction related to settlements with tax authorities | -1 | 0 | -0.1 |
Reduction related to lapse of statute of limitations | 0 | 0 | -23.9 |
Unrecognized tax benefits, end of period | $142 | $78.40 | $63 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 |
Income Tax Disclosure [Abstract] | ' | ' |
Net operating loss carryforwards, federal | $5.80 | ' |
Net operating loss carryforwards, state | 64.2 | ' |
Net operating loss carryforwards, state net of federal benefit | 41.7 | ' |
Net operating loss carryforwards, foreign | 13.6 | ' |
Net operating loss carryforwards available, federal | 16.6 | ' |
Total tax credits and other carryforwards | 25.5 | ' |
Foreign tax credit carryforwards | 15.2 | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Total valuation allowance | 16.7 | 68.8 |
Valuation allowance relating to unrealized losses on investments | 5 | ' |
Valuation allowance related to state and foreign net operating losses | 11.7 | ' |
Deferred tax liabilities related to undistributed foreign earnings | 0 | 4.4 |
Amount of unrecognized tax benefits that would impact the effective tax rate | 132.9 | 70.4 |
Interest accrued during the year related to unrecognized tax benefits | 5.2 | 3.8 |
Total liability for interest on unrecognized tax benefits | 19 | 14.4 |
Federal [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Federal benefit related to state NOL | ' | 38.5 |
State [Member] | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Total valuation allowance | ' | 59.2 |
Operating loss carryforwards | ' | $62.50 |
Segment_Reporting_Net_Sales_by
Segment Reporting - Net Sales by Product Category (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 |
reportable_segment | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $844.50 | $822.50 | $825.70 | $730.70 | $783.90 | $771.50 | $790.10 | $707.40 | $3,223.40 | $3,052.90 | $2,838.10 |
Knees [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 995.7 | 940 | 941.8 |
Hips [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 649.2 | 632.7 | 633 |
S.E.T. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 647.5 | 600.1 | 361.6 |
Spine, Bone Healing and Microfixation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 446.7 | 408.8 | 411.5 |
Dental [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 259.1 | 257 | 267.7 |
Cement, Biologies & Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales by product: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $225.20 | $214.30 | $222.50 |
Segment_Reporting_Net_Sales_by1
Segment Reporting - Net Sales by Geography (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | $844.50 | $822.50 | $825.70 | $730.70 | $783.90 | $771.50 | $790.10 | $707.40 | $3,223.40 | $3,052.90 | $2,838.10 | |||
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,970.40 | 1,862.20 | 1,713.30 | |||
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 772 | 710.2 | 702.7 | |||
International [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $481 | [1] | $480.50 | [1] | $422.10 | [1] |
[1] | International primarily includes Canada, Latin America and the Asia Pacific region. |
Segment_Reporting_LongTerm_Ass
Segment Reporting - Long-Term Assets by Geography (Detail) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 | |||
In Millions, unless otherwise specified | ||||||
Long-term assets by geography: | ' | ' | ' | |||
Long-term assets | $716 | [1] | $665.20 | [1] | $593.60 | [1] |
United States [Member] | ' | ' | ' | |||
Long-term assets by geography: | ' | ' | ' | |||
Long-term assets | 396.9 | [1] | 336.8 | [1] | 306.8 | [1] |
Europe [Member] | ' | ' | ' | |||
Long-term assets by geography: | ' | ' | ' | |||
Long-term assets | 241.4 | [1] | 255.7 | [1] | 224.3 | [1] |
International [Member] | ' | ' | ' | |||
Long-term assets by geography: | ' | ' | ' | |||
Long-term assets | $77.70 | [1] | $72.70 | [1] | $62.50 | [1] |
[1] | Defined as property, plant and equipment. |
Guarantor_and_NonGuarantor_Fin2
Guarantor and Non-Guarantor Financial Statements - Condensed Consolidating Balance Sheets (Detail) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $247,600,000 | $355,600,000 | $492,400,000 | $327,800,000 |
Accounts receivable, net | 577,300,000 | 531,800,000 | ' | ' |
Inventories | 693,400,000 | 624,000,000 | ' | ' |
Deferred income taxes | 149,900,000 | 119,900,000 | ' | ' |
Prepaid expenses and other | 202,900,000 | 141,300,000 | ' | ' |
Total current assets | 1,871,100,000 | 1,772,600,000 | ' | ' |
Property, plant and equipment, net | 716,000,000 | 665,200,000 | ' | ' |
Investments | 12,500,000 | 23,000,000 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Intangible assets, net | 3,439,600,000 | 3,630,200,000 | ' | ' |
Goodwill | 3,634,400,000 | 3,600,900,000 | 4,114,400,000 | 4,470,100,000 |
Other assets | 93,000,000 | 102,800,000 | ' | ' |
Total assets | 9,766,600,000 | 9,794,700,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of long-term debt | 133,100,000 | 40,300,000 | ' | ' |
Accounts payable | 135,300,000 | 111,500,000 | ' | ' |
Accrued interest | 53,400,000 | 56,200,000 | ' | ' |
Accrued wages and commissions | 168,700,000 | 150,100,000 | ' | ' |
Other accrued expenses | 354,700,000 | 206,000,000 | ' | ' |
Total current liabilities | 845,200,000 | 564,100,000 | ' | ' |
Long-term debt | 5,587,300,000 | 5,926,100,000 | ' | ' |
Deferred income taxes | 968,600,000 | 1,129,800,000 | ' | ' |
Other long-term liabilities | 256,300,000 | 206,100,000 | ' | ' |
Total liabilities | 7,657,400,000 | 7,826,100,000 | ' | ' |
Shareholderbs equity | 2,109,200,000 | 1,968,600,000 | 2,682,100,000 | 3,175,100,000 |
Total liabilities and shareholderbs equity | 9,766,600,000 | 9,794,700,000 | ' | ' |
Biomet, Inc. [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Inventories | ' | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Investments | 0 | 0 | ' | ' |
Investment in subsidiaries | 7,882,900,000 | 7,982,800,000 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | 7,882,900,000 | 7,982,800,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of long-term debt | 133,100,000 | 33,300,000 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued interest | 53,300,000 | 56,100,000 | ' | ' |
Accrued wages and commissions | 0 | 0 | ' | ' |
Other accrued expenses | 0 | 0 | ' | ' |
Total current liabilities | 186,400,000 | 89,400,000 | ' | ' |
Long-term debt | 5,587,300,000 | 5,924,800,000 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | 5,773,700,000 | 6,014,200,000 | ' | ' |
Shareholderbs equity | 2,109,200,000 | 1,968,600,000 | ' | ' |
Total liabilities and shareholderbs equity | 7,882,900,000 | 7,982,800,000 | ' | ' |
Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 101,800,000 | 35,300,000 | 190,100,000 | 176,400,000 |
Accounts receivable, net | 284,600,000 | 254,100,000 | ' | ' |
Inventories | 374,300,000 | 286,900,000 | ' | ' |
Deferred income taxes | 117,900,000 | 78,300,000 | ' | ' |
Prepaid expenses and other | 128,000,000 | 73,700,000 | ' | ' |
Total current assets | 1,006,600,000 | 728,300,000 | ' | ' |
Property, plant and equipment, net | 412,400,000 | 350,100,000 | ' | ' |
Investments | 11,900,000 | 10,900,000 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Intangible assets, net | 2,740,100,000 | 2,890,400,000 | ' | ' |
Goodwill | 3,146,700,000 | 3,104,000,000 | ' | ' |
Other assets | 81,500,000 | 88,900,000 | ' | ' |
Total assets | 7,399,200,000 | 7,172,600,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 86,900,000 | 63,800,000 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Accrued wages and commissions | 90,000,000 | 82,100,000 | ' | ' |
Other accrued expenses | 259,400,000 | 141,700,000 | ' | ' |
Total current liabilities | 436,300,000 | 287,600,000 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | 811,300,000 | 942,000,000 | ' | ' |
Other long-term liabilities | 170,800,000 | 142,900,000 | ' | ' |
Total liabilities | 1,418,400,000 | 1,372,500,000 | ' | ' |
Shareholderbs equity | 5,980,800,000 | 5,800,100,000 | ' | ' |
Total liabilities and shareholderbs equity | 7,399,200,000 | 7,172,600,000 | ' | ' |
Non-Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 145,800,000 | 320,300,000 | 302,300,000 | 151,400,000 |
Accounts receivable, net | 292,700,000 | 277,700,000 | ' | ' |
Inventories | 319,100,000 | 337,100,000 | ' | ' |
Deferred income taxes | 32,000,000 | 41,600,000 | ' | ' |
Prepaid expenses and other | 74,900,000 | 67,600,000 | ' | ' |
Total current assets | 864,500,000 | 1,044,300,000 | ' | ' |
Property, plant and equipment, net | 303,600,000 | 315,100,000 | ' | ' |
Investments | 600,000 | 12,100,000 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Intangible assets, net | 699,500,000 | 739,800,000 | ' | ' |
Goodwill | 487,700,000 | 496,900,000 | ' | ' |
Other assets | 11,500,000 | 13,900,000 | ' | ' |
Total assets | 2,367,400,000 | 2,622,100,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 7,000,000 | ' | ' |
Accounts payable | 48,400,000 | 47,700,000 | ' | ' |
Accrued interest | 100,000 | 100,000 | ' | ' |
Accrued wages and commissions | 78,700,000 | 68,000,000 | ' | ' |
Other accrued expenses | 95,300,000 | 64,300,000 | ' | ' |
Total current liabilities | 222,500,000 | 187,100,000 | ' | ' |
Long-term debt | 0 | 1,300,000 | ' | ' |
Deferred income taxes | 157,300,000 | 187,800,000 | ' | ' |
Other long-term liabilities | 85,500,000 | 63,200,000 | ' | ' |
Total liabilities | 465,300,000 | 439,400,000 | ' | ' |
Shareholderbs equity | 1,902,100,000 | 2,182,700,000 | ' | ' |
Total liabilities and shareholderbs equity | 2,367,400,000 | 2,622,100,000 | ' | ' |
Eliminations [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | ' | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses and other | 0 | 0 | ' | ' |
Total current assets | 0 | 0 | ' | ' |
Property, plant and equipment, net | 0 | 0 | ' | ' |
Investments | 0 | 0 | ' | ' |
Investment in subsidiaries | -7,882,900,000 | -7,982,800,000 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -7,882,900,000 | -7,982,800,000 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current portion of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Accrued interest | 0 | 0 | ' | ' |
Accrued wages and commissions | 0 | 0 | ' | ' |
Other accrued expenses | 0 | 0 | ' | ' |
Total current liabilities | 0 | 0 | ' | ' |
Long-term debt | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Other long-term liabilities | 0 | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Shareholderbs equity | -7,882,900,000 | -7,982,800,000 | ' | ' |
Total liabilities and shareholderbs equity | ($7,882,900,000) | ($7,982,800,000) | ' | ' |
Guarantor_and_NonGuarantor_Fin3
Guarantor and Non-Guarantor Financial Statements - Schedule of Condensed Statements of Operations and Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $844.50 | $822.50 | $825.70 | $730.70 | $783.90 | $771.50 | $790.10 | $707.40 | $3,223.40 | $3,052.90 | $2,838.10 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,040.20 | 873.4 | 775.5 |
Gross profit | 594.3 | 495.6 | 570.6 | 522.7 | 557.1 | 533 | 582.4 | 507 | 2,183.20 | 2,179.50 | 2,062.60 |
Selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,393.20 | 1,312.50 | 1,172.20 |
Research and development expense | ' | ' | ' | ' | ' | ' | ' | ' | 169.6 | 150.3 | 126.8 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 307.2 | 313.8 | 327.2 |
Goodwill impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 473 | 291.9 |
Intangible assets impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 94.4 | 237.9 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 313.2 | -164.5 | -93.4 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 355.9 | 398.8 | 479.8 |
Other (income) expense | ' | ' | ' | ' | ' | ' | ' | ' | -2.8 | 177.8 | 17.6 |
Loss before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -39.9 | -741.1 | -590.8 |
Tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -115.8 | -117.7 | -132 |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | 105.8 | -65.9 | 4.9 | 31.1 | -221.2 | -304.5 | -66.2 | -31.5 | 75.9 | -623.4 | -458.8 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 45.2 | -128.8 | -48.9 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 121.1 | -752.2 | -507.7 |
Biomet, Inc. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Research and development expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Goodwill impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Intangible assets impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 355.7 | 395.2 | 477.1 |
Other (income) expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 177.6 | 0 |
Loss before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -355.7 | -572.8 | -477.1 |
Tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -135.2 | -217.7 | -181.3 |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 296.4 | -268.3 | -163 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 75.9 | -623.4 | -458.8 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 21.9 | 13.1 | 13.1 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 97.8 | -610.3 | -445.7 |
Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,039.90 | 1,922.30 | 1,769.80 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 878.1 | 689.8 | 437.2 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,161.80 | 1,232.50 | 1,332.60 |
Selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 889.2 | 820.6 | 724.9 |
Research and development expense | ' | ' | ' | ' | ' | ' | ' | ' | 126.3 | 112.8 | 94.7 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 254.2 | 260.6 | 258.8 |
Goodwill impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167.9 | 189.4 |
Intangible assets impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94.4 | 74.9 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -107.9 | -223.8 | -10.1 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Other (income) expense | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | 6.1 | 3.1 |
Loss before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -111.5 | -229.9 | -13.2 |
Tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -42.3 | -87.4 | 86.8 |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -69.2 | -142.5 | -100 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -69.2 | -142.5 | -100 |
Non-Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,183.50 | 1,130.60 | 1,068.30 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 162.1 | 183.6 | 338.3 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 1,021.40 | 947 | 730 |
Selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 504 | 491.9 | 447.3 |
Research and development expense | ' | ' | ' | ' | ' | ' | ' | ' | 43.3 | 37.5 | 32.1 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 53 | 53.2 | 68.4 |
Goodwill impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 305.1 | 102.5 |
Intangible assets impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 163 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 421.1 | 59.3 | -83.3 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 3.6 | 2.7 |
Other (income) expense | ' | ' | ' | ' | ' | ' | ' | ' | -6.4 | -5.9 | 14.5 |
Loss before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 427.3 | 61.6 | -100.5 |
Tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 61.7 | 187.4 | -37.5 |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 365.6 | -125.8 | -63 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 23.3 | -141.9 | -62 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 388.9 | -267.7 | -125 |
Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Condensed Statements Of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Selling, general and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Research and development expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Goodwill impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Intangible assets impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Interest Expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Other (income) expense | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Loss before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -296.4 | 268.3 | 163 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -296.4 | 268.3 | 163 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($296.40) | $268.30 | $163 |
Guarantor_and_NonGuarantor_Fin4
Guarantor and Non-Guarantor Financial Statements - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items] | ' | ' | ' |
Cash flows provided by (used in) operating activities | $529 | $468.50 | $377.30 |
Capital expenditures | -228.7 | -204 | -179.3 |
Payments to Acquire Business Two, Net of Cash Acquired | 0 | 280 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | -148.8 | 0 | 0 |
Other | 12.4 | -4.6 | -6.8 |
Proceeds from sales/maturities of investments | 42.8 | 5.5 | 42.1 |
Purchases of investments | -29.4 | -6.4 | -0.4 |
Net cash used in investing activities | -365.1 | -488.6 | -144 |
Payments under senior secured credit facilities | -30.3 | -33.5 | -35.4 |
Proceeds under revolvers/facility | 159.3 | 86.6 | 0 |
Payments under revolvers/facility | -165.3 | -80.6 | 0 |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 870.5 | 3,396.20 | 0 |
Tender/retirement of senior notes due 2017 and term loans | -1,091.60 | -3,423 | 0 |
Payment of fees related to refinancing activities | -15.5 | -79 | 0 |
Other | -46.8 | -34.9 | -2.7 |
Net cash used in financing activities | -273.9 | -134.7 | -38.1 |
Effect of exchange rate changes on cash | 2 | 18 | -30.6 |
Increase (decrease) in cash and cash equivalents | -108 | -136.8 | 164.6 |
Cash and cash equivalents, beginning of period | 355.6 | 492.4 | 327.8 |
Cash and cash equivalents, end of period | 247.6 | 355.6 | 492.4 |
Biomet, Inc. [Member] | ' | ' | ' |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items] | ' | ' | ' |
Cash flows provided by (used in) operating activities | 266.9 | 128.6 | 36.7 |
Capital expenditures | 0 | 0 | 0 |
Payments to Acquire Business Two, Net of Cash Acquired | ' | 0 | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ' | ' |
Other | 0 | 0 | 0 |
Proceeds from sales/maturities of investments | ' | ' | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Payments under senior secured credit facilities | ' | ' | -35.4 |
Proceeds under revolvers/facility | 155 | 80 | ' |
Payments under revolvers/facility | -155 | -80 | ' |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 870.5 | 3,396.20 | ' |
Tender/retirement of senior notes due 2017 and term loans | -1,091.60 | -3,423 | ' |
Payment of fees related to refinancing activities | ' | -79 | ' |
Other | -45.8 | -22.8 | -1.3 |
Net cash used in financing activities | -266.9 | -128.6 | -36.7 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Guarantors [Member] | ' | ' | ' |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items] | ' | ' | ' |
Cash flows provided by (used in) operating activities | 351.7 | 228.2 | 63 |
Capital expenditures | -135.7 | -102.9 | -89.9 |
Payments to Acquire Business Two, Net of Cash Acquired | ' | 277.5 | ' |
Payments to Acquire Businesses, Net of Cash Acquired | -148.8 | ' | ' |
Other | -2 | -2.5 | -1.5 |
Proceeds from sales/maturities of investments | ' | ' | 42.1 |
Net cash used in investing activities | -286.5 | -382.9 | -49.3 |
Payments under senior secured credit facilities | ' | ' | 0 |
Proceeds under revolvers/facility | 0 | 0 | ' |
Payments under revolvers/facility | 0 | 0 | ' |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 0 | 0 | ' |
Tender/retirement of senior notes due 2017 and term loans | 0 | 0 | ' |
Payment of fees related to refinancing activities | ' | 0 | ' |
Other | 1.3 | -0.1 | 0 |
Net cash used in financing activities | 1.3 | -0.1 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 66.5 | -154.8 | 13.7 |
Cash and cash equivalents, beginning of period | 35.3 | 190.1 | 176.4 |
Cash and cash equivalents, end of period | 101.8 | 35.3 | 190.1 |
Non-Guarantors [Member] | ' | ' | ' |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items] | ' | ' | ' |
Cash flows provided by (used in) operating activities | -89.6 | 111.7 | 277.6 |
Capital expenditures | -93 | -101.1 | -89.4 |
Payments to Acquire Business Two, Net of Cash Acquired | ' | 2.5 | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ' | ' |
Other | 14.4 | -2.1 | -5.3 |
Proceeds from sales/maturities of investments | ' | ' | 0 |
Net cash used in investing activities | -78.6 | -105.7 | -94.7 |
Payments under senior secured credit facilities | ' | ' | 0 |
Proceeds under revolvers/facility | 4.3 | 6.6 | ' |
Payments under revolvers/facility | -10.3 | -0.6 | ' |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 0 | 0 | ' |
Tender/retirement of senior notes due 2017 and term loans | 0 | 0 | ' |
Payment of fees related to refinancing activities | ' | 0 | ' |
Other | -2.3 | -12 | -1.4 |
Net cash used in financing activities | -8.3 | -6 | -1.4 |
Effect of exchange rate changes on cash | 2 | 18 | -30.6 |
Increase (decrease) in cash and cash equivalents | -174.5 | 18 | 150.9 |
Cash and cash equivalents, beginning of period | 320.3 | 302.3 | 151.4 |
Cash and cash equivalents, end of period | 145.8 | 320.3 | 302.3 |
Eliminations [Member] | ' | ' | ' |
Schedule Of Condensed Consolidating Statement Of Cash Flows [Line Items] | ' | ' | ' |
Cash flows provided by (used in) operating activities | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Payments to Acquire Business Two, Net of Cash Acquired | ' | 0 | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | ' | ' |
Other | 0 | 0 | 0 |
Proceeds from sales/maturities of investments | ' | ' | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Payments under senior secured credit facilities | ' | ' | 0 |
Proceeds under revolvers/facility | 0 | 0 | ' |
Payments under revolvers/facility | 0 | 0 | ' |
Proceeds from senior and senior subordinated notes due 2020 and term loans | 0 | 0 | ' |
Tender/retirement of senior notes due 2017 and term loans | 0 | 0 | ' |
Payment of fees related to refinancing activities | ' | 0 | ' |
Other | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | $0 | $0 | $0 |
Restructuring_Details
Restructuring (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Restructuring Reserve [Roll Forward] | ' | ' | ' | |||
Restructuring reserve, beginning balance | $8.90 | $9.50 | $5.90 | |||
Costs incurred and charged to expense | 53.7 | 5.7 | 19.5 | |||
Costs paid or otherwise settled | -22.3 | -6.4 | -14.2 | |||
Non-cash adjustments | 2.2 | [1] | 0.1 | [1] | -1.7 | [1] |
Restructuring reserve, ending balance | $42.50 | $8.90 | $9.50 | |||
[1] | Primarily related to foreign currency fluctuations. |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 26, 2012 | 31-May-14 | 31-May-13 | 31-May-14 | Nov. 30, 2013 | Dec. 31, 2008 | 31-May-14 | 31-May-13 | Jun. 24, 2014 | Jun. 05, 2014 | Jun. 24, 2014 | Jun. 24, 2014 | Jun. 24, 2014 | Jun. 24, 2014 |
USD ($) | USD ($) | USD ($) | Multi-District Litigation [Member] | Multi-District Litigation [Member] | Heraeus Litigation [Member] | Metal-On-Metal Hip Products [Member] | Metal-On-Metal Hip Products [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | Multi-District Litigation [Member] | Heraeus Litigation [Member] | Metal-On-Metal Hip Products [Member] | M2a-38TM Hip System [Member] | M2a-Taper System [Member] | M2a-Ringloc System [Member] | ||||
claim | EUR (€) | claim | claim | claim | claim | |||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement obligation satisfaction period subsequent to agreement | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum time period of international sales compliance monitor | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Penalty paid | $5.60 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid to settle claims | 17.3 | ' | ' | ' | ' | ' | ' | ' | ' | 11.25 | ' | ' | ' | ' |
Claims filed | ' | ' | ' | ' | ' | ' | ' | ' | 2,322 | ' | 2,434 | 502 | 93 | 15 |
Self insurance annual coverage limit | ' | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Third-party insurance coverage | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual amount for contingencies | ' | 39.1 | 40 | 123.5 | 50 | ' | 123.5 | 23.5 | ' | ' | ' | ' | ' | ' |
Lawsuit seeking amount for damages | ' | ' | ' | ' | ' | € 30 | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Parties_Additional_Inf
Related Parties - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||
Jan. 14, 2010 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 | Sep. 25, 2007 | Nov. 30, 2012 | Nov. 30, 2012 | 31-May-13 | Aug. 31, 2012 | Nov. 30, 2012 | Nov. 30, 2012 | 31-May-14 | Apr. 22, 2014 | 31-May-14 | 31-May-13 | 31-May-11 | 1-May-07 | Jan. 14, 2010 | Sep. 06, 2011 | |
Employee | Senior notes [Member] | Senior subordinated notes [Member] | Goldman Sachs [Member] | 6.500% senior notes due 2020 [Member] | 6.500% senior notes due 2020 [Member] | 6.500% senior notes due 2020 [Member] | Principal Stockholders [Member] | Director [Member] | Equity Healthcare [Member] | Equity Healthcare [Member] | Equity Healthcare [Member] | Core Trust Purchasing Group [Member] | Minimum [Member] | Maximum [Member] | |||||||
non-voting_observer | Senior notes [Member] | Senior subordinated notes [Member] | One Time Merger Fee [Member] | Termination Fee [Member] | |||||||||||||||||
vote | |||||||||||||||||||||
director | |||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of transaction fee on total enterprise value | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of annual monitoring fee on Company's annual Adjusted EBITDA | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of Sponsor fees | ' | ' | $11,100,000 | $11,000,000 | $10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' |
Number of directors each Sponsor has the right to nominate | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non-voting observer each Sponsor is entitled to appoint | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum percentage of membership interests that the sponsors should hold | ' | ' | 70.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non-affiliate directors each Sponsor may appoint (one or more) | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of votes each director has for purposes of any Board of Directors action | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting fee | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Out-of-pocket fees and expenses relating to an off-site office and administrative support | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 150,000 |
Non competition time period following term of agreement | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid under consulting agreement | ' | ' | 400,000 | 400,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fee per participating employee per month | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees enrolled in its health benefit plans | ' | ' | 3,275 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments made to Equity Healthcare | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 100,000 | 100,000 | ' | ' | ' |
Term of participation agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Percentage of purchase requirements | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of fees paid | ' | ' | 600,000 | 800,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees received | ' | ' | 15,500,000 | 79,000,000 | 0 | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriting discount received | ' | 2,300,000 | ' | ' | ' | ' | ' | 2,600,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of bonds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000,000 | 825,000,000 | 800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | 6.50% | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2020 | '2020 | '2020 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount paid to consulting company | ' | ' | 0 | 2,200,000 | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares | ' | ' | ' | 100,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased (in shares) | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend from (to) Biomet, Inc. | ' | ' | $0 | $0 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule_ICondensed_Financial_1
Schedule IbCondensed Financial Information - Condensed Balance Sheets (Details) (USD $) | 31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Total assets | $9,766,600,000 | $9,794,700,000 | ' | ' |
Total liabilities | 7,657,400,000 | 7,826,100,000 | ' | ' |
Common stock, par value $0.01 per share; 740,000,000 shares authorized; 552,484,996 and 552,359,416 shares issued and outstanding | 5,500,000 | 5,500,000 | ' | ' |
Contributed and additional paid-in capital | 5,681,500,000 | 5,662,000,000 | ' | ' |
Accumulated deficit | -3,617,100,000 | -3,693,000,000 | ' | ' |
Accumulated other comprehensive income (loss) | 39,300,000 | -5,900,000 | 122,900,000 | ' |
Shareholderbs equity | 2,109,200,000 | 1,968,600,000 | 2,682,100,000 | 3,175,100,000 |
Total liabilities and shareholderbs equity | 9,766,600,000 | 9,794,700,000 | ' | ' |
Parent Only [Member] | ' | ' | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' | ' | ' |
Investment in wholly owned subsidiary | 2,109,200,000 | 1,968,600,000 | ' | ' |
Total assets | 2,109,200,000 | 1,968,600,000 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Common stock, par value $0.01 per share; 740,000,000 shares authorized; 552,484,996 and 552,359,416 shares issued and outstanding | 5,500,000 | 5,500,000 | ' | ' |
Contributed and additional paid-in capital | 5,681,500,000 | 5,662,000,000 | ' | ' |
Accumulated deficit | -3,617,100,000 | -3,693,000,000 | ' | ' |
Accumulated other comprehensive income (loss) | 39,300,000 | -5,900,000 | ' | ' |
Shareholderbs equity | 2,109,200,000 | 1,968,600,000 | ' | ' |
Total liabilities and shareholderbs equity | $2,109,200,000 | $1,968,600,000 | ' | ' |
Schedule_ICondensed_Financial_2
Schedule IbCondensed Financial Information (Parenthetical) (Details) (USD $) | 31-May-14 | 31-May-13 |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 740,000,000 | 740,000,000 |
Common stock, shares issued | 552,484,996 | 552,359,416 |
Common stock, shares outstanding | 552,484,996 | 552,359,416 |
Parent Only [Member] | ' | ' |
Condensed Balance Sheet Statements, Captions [Line Items] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 740,000,000 | 740,000,000 |
Common stock, shares issued | 552,359,416 | 552,359,416 |
Common stock, shares outstanding | 552,308,376 | 552,308,376 |
Schedule_ICondensed_Financial_3
Schedule IbCondensed Financial Information - Condensed Statements of Operations and Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | $105.80 | ($65.90) | $4.90 | $31.10 | ($221.20) | ($304.50) | ($66.20) | ($31.50) | $75.90 | ($623.40) | ($458.80) |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 45.2 | -128.8 | -48.9 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 121.1 | -752.2 | -507.7 |
Parent Only [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in net income (loss) of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 75.9 | -623.4 | -458.8 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | 75.9 | -623.4 | -458.8 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $75.90 | ($623.40) | ($458.80) |
Schedule_ICondensed_Financial_4
Schedule IbCondensed Financial Information - Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | |||
31-May-14 | 31-May-13 | 31-May-12 | 31-May-11 | |
Cash flows provided by (used in) operating activities: | ' | ' | ' | ' |
Net loss | $75,900,000 | ($623,400,000) | ($458,800,000) | ' |
Net cash provided by operating activities | 529,000,000 | 468,500,000 | 377,300,000 | ' |
Cash flows provided by (used in) investing activities: | ' | ' | ' | ' |
Net cash used in investing activities | -365,100,000 | -488,600,000 | -144,000,000 | ' |
Cash flows provided by (used in) financing activities: | ' | ' | ' | ' |
Option exercises | 1,300,000 | 0 | 0 | ' |
Cash dividend from (to) Biomet, Inc. | 0 | 0 | ' | 0 |
Repurchase of LVB Acquisition, Inc. shares | 0 | -100,000 | -1,300,000 | ' |
Net cash used in financing activities | -273,900,000 | -134,700,000 | -38,100,000 | ' |
Increase (decrease) in cash and cash equivalents | -108,000,000 | -136,800,000 | 164,600,000 | ' |
Cash and cash equivalents, beginning of period | 355,600,000 | 492,400,000 | 327,800,000 | ' |
Cash and cash equivalents, end of period | 247,600,000 | 355,600,000 | 492,400,000 | 327,800,000 |
Parent Only [Member] | ' | ' | ' | ' |
Cash flows provided by (used in) operating activities: | ' | ' | ' | ' |
Net loss | 75,900,000 | -623,400,000 | -458,800,000 | ' |
Income (Loss) from Subsidiaries, Net of Tax | -75,900,000 | 623,400,000 | 458,800,000 | ' |
Net cash provided by operating activities | 0 | 0 | 0 | ' |
Cash flows provided by (used in) investing activities: | ' | ' | ' | ' |
Net cash used in investing activities | 0 | 0 | 0 | ' |
Cash flows provided by (used in) financing activities: | ' | ' | ' | ' |
Option exercises | 1,300,000 | 0 | 0 | ' |
Cash dividend from (to) Biomet, Inc. | -1,300,000 | 100,000 | 1,300,000 | ' |
Repurchase of LVB Acquisition, Inc. shares | 0 | -100,000 | -1,300,000 | ' |
Net cash used in financing activities | 0 | 0 | 0 | ' |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ' |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 | ' |
Cash and cash equivalents, end of period | $0 | $0 | $0 | ' |
Schedule_IIValuation_and_Quali1
Schedule IIbValuation and Qualifying Accounts (Details) (Allowance for doubtful receivables [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | 31-May-14 | 31-May-13 | 31-May-12 | |||
Allowance for doubtful receivables [Member] | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning of Period | $33.50 | $36.50 | $38.20 | |||
Charged to Costs and Expenses | 10.7 | 17.7 | 15.7 | |||
Charged to Other Accounts | -0.5 | [1] | -16.2 | [1] | -12.3 | [1] |
Deductions | -12.8 | [2],[3] | -20.2 | [2] | -1.2 | [2] |
Balance at End of Year | $31.90 | $33.50 | $36.50 | |||
[1] | Primarily effect of foreign currency translation. | |||||
[2] | Uncollectible accounts written off. | |||||
[3] | Includes $5.1 million related to the bracing divestiture. |
Quarterly_Results_Unaudited_De
Quarterly Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Nov. 30, 2012 | Aug. 31, 2012 | 31-May-14 | 31-May-13 | 31-May-12 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and intangible asset impairment charge | ' | ' | ' | ' | $334.10 | $567.40 | ' | ' | $0 | $567.40 | $529.80 |
Net sales | 844.5 | 822.5 | 825.7 | 730.7 | 783.9 | 771.5 | 790.1 | 707.4 | 3,223.40 | 3,052.90 | 2,838.10 |
Gross profit | 594.3 | 495.6 | 570.6 | 522.7 | 557.1 | 533 | 582.4 | 507 | 2,183.20 | 2,179.50 | 2,062.60 |
Net loss | $105.80 | ($65.90) | $4.90 | $31.10 | ($221.20) | ($304.50) | ($66.20) | ($31.50) | $75.90 | ($623.40) | ($458.80) |