0001564590-18-007785.txt : 20180406 0001564590-18-007785.hdr.sgml : 20180406 20180406170022 ACCESSION NUMBER: 0001564590-18-007785 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20180406 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180406 DATE AS OF CHANGE: 20180406 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ZIMMER BIOMET HOLDINGS, INC. CENTRAL INDEX KEY: 0001136869 STANDARD INDUSTRIAL CLASSIFICATION: ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842] IRS NUMBER: 134151777 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16407 FILM NUMBER: 18743835 BUSINESS ADDRESS: STREET 1: 345 EAST MAIN STREET CITY: WARSAW STATE: IN ZIP: 46580 BUSINESS PHONE: 5742676131 MAIL ADDRESS: STREET 1: 345 EAST MAIN STREET CITY: WARSAW STATE: IN ZIP: 46580 FORMER COMPANY: FORMER CONFORMED NAME: ZIMMER HOLDINGS INC DATE OF NAME CHANGE: 20010315 8-K 1 zbh-8k_20180402.htm 8-K zbh-8k_20180402.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 6, 2018

 

 

ZIMMER BIOMET HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-16407

13-4151777

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

 

345 East Main Street

Warsaw, Indiana 46580

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:  (574) 267-6131

Not applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 


Item 7.01

Regulation FD Disclosure.

 

As discussed in Zimmer Biomet Holdings, Inc.’s (the “Company,” “we” or “us”) Annual Report on Form 10-K for the year ended December 31, 2017, effective January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”).  We are furnishing this Form 8-K under Regulation FD to supplementally present, for informational purposes only, certain previously-reported financial information on an adjusted basis consistent with the new standards.  This adjusted financial information is also being made available on our investor relations website.  Beginning with the quarter ended March 31, 2018, our financial information will reflect the adoption of these standards, with prior periods adjusted accordingly.

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09.  This ASU provides a five-step model for revenue recognition that all industries will apply to recognize revenue when a customer obtains control of a good or service.  For us, the principal impact of the standard is the reclassification of certain immaterial costs from selling, general and administrative expense to net sales, which results in a reduction of net sales, but has no impact on operating profit.  Under this ASU, entities are permitted to apply the standard and related amendments either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the ASU recognized at the date of initial application.  We elected to adopt this new standard using the retrospective method, which results in us restating prior reporting periods presented.

 

In March 2017, the FASB issued ASU 2017-07.  This ASU requires us to report the service cost component of pensions in the same location as other compensation costs arising from services rendered by the pertinent employees during the period.  We are required to report the other components of net benefit costs in Other income (expense) in the statement of earnings.  This ASU must be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost in the statement of earnings and prospectively, on and after January 1, 2018, for the capitalization of the service cost component of net periodic pension cost in assets.  Therefore, our prior period operating and non-operating expenses are impacted by offsetting amounts.

 

The application of the new standards only changes the financial statement line items in which we present certain costs.  Accordingly, there has been no change to our reported or adjusted net income.

 

Exhibit 99.1 to this Current Report on Form 8-K presents, for informational purposes only, supplemental financial information for the years ended December 31, 2017 and 2016, as well as each quarterly period in those years, on an adjusted basis consistent with the new standards.  Additional information regarding the impact of the adoption of the new standards and related disclosures will be included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and in subsequent filings that we make with the Securities and Exchange Commission.

 

The information in this Item 7.01, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.



 

Item 9.01

Financial Statements and Exhibits.

 

 

(d)

Exhibits

 

EXHIBIT INDEX

Exhibit No.

 

Description

99.1

 

Supplemental Financial Information of Zimmer Biomet Holdings, Inc.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Dated:  April 6, 2018

ZIMMER BIOMET HOLDINGS, INC.

 

 

 

 

By:

/s/ Tony W. Collins

 

Name:

Tony W. Collins

 

Title:

Vice President, Corporate Controller and
Chief Accounting Officer

 

 

EX-99.1 2 zbh-ex991_14.htm EX-99.1 zbh-ex991_14.htm

 

 

 

 

345 E. Main St.

 

Warsaw, IN 46580

 

www.zimmerbiomet.com

Exhibit 99.1

 

 

Media

Investors

Monica Kendrick

Cole Lannum

(574) 372-4989

(574) 371-9480

Monica.Kendrick@ZimmerBiomet.com

Cole.Lannum@ZimmerBiomet.com

 

 

Derek Davis

(574) 372-4250

Derek.Davis@ZimmerBiomet.com

 

 

Barbara Goslee

 

(574) 371-9449

 

Barb.Goslee@ZimmerBiomet.com  

 

The following supplemental financial information presents, for informational purposes only, certain previously-reported financial information of Zimmer Biomet Holdings, Inc. (the “Company”), as adjusted to reflect the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”).

Certain of the previously-reported financial information consisted of reconciliations of financial measures not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) to the most directly comparable GAAP measures.  These reconciliations are presented below, updated to utilize the revised GAAP financial measures, which have been adjusted to reflect the adoption of ASU 2014-09 and ASU 2017-07, in the reconciliations.  The non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.  

Revised gross profit, revised gross margin, revised operating profit (loss) and revised operating profit (loss) margin (in each case, revised to reflect the adoption of ASU 2014-09 and ASU


2017-07) are presented on a GAAP basis and on an adjusted basis.  Adjusted revised gross profit and adjusted revised gross margin exclude the effects of inventory step-up, other inventory and manufacturing-related charges and intangible asset amortization.  Adjusted revised operating profit and adjusted revised operating profit margin exclude the effects of inventory step-up, other inventory and manufacturing-related charges, intangible asset amortization, goodwill impairment and special items.

Management of the Company uses these non-GAAP financial measures internally to evaluate the performance of the business and believes they are useful measures that provide meaningful supplemental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported operating results, to perform trend analysis, to better identify operating trends that may otherwise be masked or distorted by these types of items and to provide additional transparency of certain items.  In addition, certain of these non-GAAP financial measures are used as performance metrics in the Company's incentive compensation programs.

Certain amounts in the 2016 and 2017 net sales by product categories have been reclassified to conform to the 2018 presentation.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

1,904.0

 

 

$

(3.2

)

 

$

1,900.8

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

640.6

 

 

 

-

 

 

 

640.6

 

 

Intangible asset amortization

 

 

126.6

 

 

 

-

 

 

 

126.6

 

 

Research and development

 

 

85.7

 

 

 

-

 

 

 

85.7

 

 

Selling, general and administrative

 

 

716.9

 

 

 

(2.0

)

 

 

714.9

 

 

Special items

 

 

88.7

 

 

 

-

 

 

 

88.7

 

 

Operating expenses

 

 

1,658.5

 

 

 

(2.0

)

 

 

1,656.5

 

 

Operating Profit

 

 

245.5

 

 

 

(1.2

)

 

 

244.3

 

 

Other expense, net

 

 

(3.8

)

 

 

1.2

 

 

 

(2.6

)

 

Interest income

 

 

1.3

 

 

 

-

 

 

 

1.3

 

 

Interest expense

 

 

(88.2

)

 

 

-

 

 

 

(88.2

)

 

Earnings before income taxes

 

 

154.8

 

 

 

-

 

 

 

154.8

 

 

Provision for income taxes

 

 

46.1

 

 

 

-

 

 

 

46.1

 

 

Net Earnings

 

 

108.7

 

 

 

-

 

 

 

108.7

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(0.1

)

 

 

-

 

 

 

(0.1

)

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

108.8

 

 

$

-

 

 

$

108.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.54

 

 

$

-

 

 

$

0.54

 

 

Diluted

 

$

0.54

 

 

$

-

 

 

$

0.54

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

200.1

 

 

 

-

 

 

 

200.1

 

 

Diluted

 

 

202.2

 

 

 

-

 

 

 

202.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED JUNE 30, 2016

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

1,934.0

 

 

$

(3.9

)

 

$

1,930.1

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

640.1

 

 

 

-

 

 

 

640.1

 

 

Intangible asset amortization

 

 

133.8

 

 

 

-

 

 

 

133.8

 

 

Research and development

 

 

88.6

 

 

 

-

 

 

 

88.6

 

 

Selling, general and administrative

 

 

732.0

 

 

 

(2.7

)

 

 

729.3

 

 

Special items

 

 

137.9

 

 

 

-

 

 

 

137.9

 

 

Operating expenses

 

 

1,732.4

 

 

 

(2.7

)

 

 

1,729.7

 

 

Operating Profit

 

 

201.6

 

 

 

(1.2

)

 

 

200.4

 

 

Other expense, net

 

 

(3.8

)

 

 

1.2

 

 

 

(2.6

)

 

Interest income

 

 

0.8

 

 

 

-

 

 

 

0.8

 

 

Interest expense

 

 

(88.1

)

 

 

-

 

 

 

(88.1

)

 

Earnings before income taxes

 

 

110.5

 

 

 

-

 

 

 

110.5

 

 

Provision for income taxes

 

 

142.2

 

 

 

-

 

 

 

142.2

 

 

Net (Loss)

 

 

(31.7

)

 

 

-

 

 

 

(31.7

)

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(0.4

)

 

 

-

 

 

 

(0.4

)

 

Net (Loss) of Zimmer Biomet

   Holdings, Inc.

 

$

(31.3

)

 

$

-

 

 

$

(31.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.16

)

 

$

-

 

 

$

(0.16

)

 

Diluted

 

$

(0.16

)

 

$

-

 

 

$

(0.16

)

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

199.4

 

 

 

-

 

 

 

199.4

 

 

Diluted

 

 

199.4

 

 

 

-

 

 

 

199.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

1,832.8

 

 

$

(3.6

)

 

$

1,829.2

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

479.3

 

 

 

-

 

 

 

479.3

 

 

Intangible asset amortization

 

 

164.3

 

 

 

-

 

 

 

164.3

 

 

Research and development

 

 

95.6

 

 

 

-

 

 

 

95.6

 

 

Selling, general and administrative

 

 

727.7

 

 

 

(2.4

)

 

 

725.3

 

 

Special items

 

 

170.4

 

 

 

-

 

 

 

170.4

 

 

Operating expenses

 

 

1,637.3

 

 

 

(2.4

)

 

 

1,634.9

 

 

Operating Profit

 

 

195.5

 

 

 

(1.2

)

 

 

194.3

 

 

Other (expense)/income, net

 

 

(1.1

)

 

 

1.2

 

 

 

0.1

 

 

Interest income

 

 

0.6

 

 

 

-

 

 

 

0.6

 

 

Interest expense

 

 

(91.5

)

 

 

-

 

 

 

(91.5

)

 

Earnings before income taxes

 

 

103.5

 

 

 

-

 

 

 

103.5

 

 

Provision for income taxes

 

 

(54.4

)

 

 

-

 

 

 

(54.4

)

 

Net Earnings

 

 

157.9

 

 

 

-

 

 

 

157.9

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(0.9

)

 

 

-

 

 

 

(0.9

)

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

158.8

 

 

$

-

 

 

$

158.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.79

 

 

$

-

 

 

$

0.79

 

 

Diluted

 

$

0.78

 

 

$

-

 

 

$

0.78

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

200.1

 

 

 

-

 

 

 

200.1

 

 

Diluted

 

 

202.9

 

 

 

-

 

 

 

202.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2016

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

2,013.1

 

 

$

(4.8

)

 

$

2,008.3

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

621.8

 

 

 

-

 

 

 

621.8

 

 

Intangible asset amortization

 

 

141.2

 

 

 

-

 

 

 

141.2

 

 

Research and development

 

 

95.7

 

 

 

-

 

 

 

95.7

 

 

Selling, general and administrative

 

 

756.3

 

 

 

(3.6

)

 

 

752.7

 

 

Special items

 

 

214.8

 

 

 

-

 

 

 

214.8

 

 

    Operating expenses

 

 

1,829.8

 

 

 

(3.6

)

 

 

1,826.2

 

 

Operating Profit

 

 

183.3

 

 

 

(1.2

)

 

 

182.1

 

 

Other expense, net

 

 

(62.6

)

 

 

1.2

 

 

 

(61.4

)

 

Interest income

 

 

0.2

 

 

 

-

 

 

 

0.2

 

 

Interest expense

 

 

(90.1

)

 

 

-

 

 

 

(90.1

)

 

Earnings before income taxes

 

 

30.8

 

 

 

-

 

 

 

30.8

 

 

Provision for income taxes

 

 

(38.9

)

 

 

-

 

 

 

(38.9

)

 

Net Earnings

 

 

69.7

 

 

 

-

 

 

 

69.7

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

0.1

 

 

 

-

 

 

 

0.1

 

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

69.6

 

 

$

-

 

 

$

69.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.35

 

 

$

-

 

 

$

0.35

 

 

   Diluted

 

$

0.34

 

 

$

-

 

 

$

0.34

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

200.4

 

 

 

-

 

 

 

200.4

 

 

   Diluted

 

 

202.5

 

 

 

-

 

 

 

202.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE YEAR ENDED DECEMBER 31, 2016

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

7,683.9

 

 

$

(15.5

)

 

$

7,668.4

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

2,381.8

 

 

 

-

 

 

 

2,381.8

 

 

Intangible asset amortization

 

 

565.9

 

 

 

-

 

 

 

565.9

 

 

Research and development

 

 

365.6

 

 

 

-

 

 

 

365.6

 

 

Selling, general and administrative

 

 

2,932.9

 

 

 

(10.7

)

 

 

2,922.2

 

 

Special items

 

 

611.8

 

 

 

-

 

 

 

611.8

 

 

     Operating expenses

 

 

6,858.0

 

 

 

(10.7

)

 

 

6,847.3

 

 

Operating Profit

 

 

825.9

 

 

 

(4.8

)

 

 

821.1

 

 

Other expense, net

 

 

(71.3

)

 

 

4.8

 

 

 

(66.5

)

 

Interest income

 

 

2.9

 

 

 

-

 

 

 

2.9

 

 

Interest expense

 

 

(357.9

)

 

 

-

 

 

 

(357.9

)

 

Earnings before income taxes

 

 

399.6

 

 

 

-

 

 

 

399.6

 

 

Provision for income taxes

 

 

95.0

 

 

 

-

 

 

 

95.0

 

 

Net Earnings

 

 

304.6

 

 

 

-

 

 

 

304.6

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(1.3

)

 

 

-

 

 

 

(1.3

)

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

305.9

 

 

$

-

 

 

$

305.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

1.53

 

 

$

-

 

 

$

1.53

 

 

   Diluted

 

$

1.51

 

 

$

-

 

 

$

1.51

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

200.0

 

 

 

-

 

 

 

200.0

 

 

   Diluted

 

 

202.4

 

 

 

-

 

 

 

202.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

1,977.3

 

 

$

(4.9

)

 

$

1,972.4

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

512.9

 

 

 

-

 

 

 

512.9

 

 

Intangible asset amortization

 

 

152.0

 

 

 

-

 

 

 

152.0

 

 

Research and development

 

 

91.1

 

 

 

-

 

 

 

91.1

 

 

Selling, general and administrative

 

 

760.8

 

 

 

(2.6

)

 

 

758.2

 

 

Special items

 

 

110.1

 

 

 

-

 

 

 

110.1

 

 

     Operating expenses

 

 

1,626.9

 

 

 

(2.6

)

 

 

1,624.3

 

 

Operating Profit

 

 

350.4

 

 

 

(2.3

)

 

 

348.1

 

 

Other expense, net

 

 

(2.8

)

 

 

2.3

 

 

 

(0.5

)

 

Interest income

 

 

0.5

 

 

 

-

 

 

 

0.5

 

 

Interest expense

 

 

(82.9

)

 

 

-

 

 

 

(82.9

)

 

Earnings before income taxes

 

 

265.2

 

 

 

-

 

 

 

265.2

 

 

Provision for income taxes

 

 

(34.1

)

 

 

-

 

 

 

(34.1

)

 

Net Earnings

 

 

299.3

 

 

 

-

 

 

 

299.3

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(0.1

)

 

 

-

 

 

 

(0.1

)

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

299.4

 

 

$

-

 

 

$

299.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

1.49

 

 

$

-

 

 

$

1.49

 

 

   Diluted

 

$

1.47

 

 

$

-

 

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

201.1

 

 

 

-

 

 

 

201.1

 

 

   Diluted

 

 

203.1

 

 

 

-

 

 

 

203.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED JUNE 30, 2017

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

1,954.4

 

 

$

(4.9

)

 

$

1,949.5

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

527.7

 

 

 

-

 

 

 

527.7

 

 

Intangible asset amortization

 

 

147.7

 

 

 

-

 

 

 

147.7

 

 

Research and development

 

 

90.1

 

 

 

-

 

 

 

90.1

 

 

Selling, general and administrative

 

 

748.0

 

 

 

(2.7

)

 

 

745.3

 

 

Special items

 

 

158.6

 

 

 

-

 

 

 

158.6

 

 

     Operating expenses

 

 

1,672.1

 

 

 

(2.7

)

 

 

1,669.4

 

 

Operating Profit

 

 

282.3

 

 

 

(2.2

)

 

 

280.1

 

 

Other expense, net

 

 

(3.9

)

 

 

2.2

 

 

 

(1.7

)

 

Interest income

 

 

0.3

 

 

 

-

 

 

 

0.3

 

 

Interest expense

 

 

(82.3

)

 

 

-

 

 

 

(82.3

)

 

Earnings before income taxes

 

 

196.4

 

 

 

-

 

 

 

196.4

 

 

Provision for income taxes

 

 

12.3

 

 

 

-

 

 

 

12.3

 

 

Net Earnings

 

 

184.1

 

 

 

-

 

 

 

184.1

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(0.1

)

 

 

-

 

 

 

(0.1

)

 

Net Earnings of Zimmer Biomet

    Holdings, Inc.

 

$

184.2

 

 

$

-

 

 

$

184.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.91

 

 

$

-

 

 

$

0.91

 

 

   Diluted

 

$

0.90

 

 

$

-

 

 

$

0.90

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

201.8

 

 

 

-

 

 

 

201.8

 

 

   Diluted

 

 

203.7

 

 

 

-

 

 

 

203.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

1,818.1

 

 

$

(5.0

)

 

$

1,813.1

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

500.9

 

 

 

-

 

 

 

500.9

 

 

Intangible asset amortization

 

 

152.7

 

 

 

-

 

 

 

152.7

 

 

Research and development

 

 

91.2

 

 

 

-

 

 

 

91.2

 

 

Selling, general and administrative

 

 

694.5

 

 

 

(2.8

)

 

 

691.7

 

 

Goodwill impairment

 

 

32.7

 

 

 

-

 

 

 

32.7

 

 

Special items

 

 

132.7

 

 

 

-

 

 

 

132.7

 

 

     Operating expenses

 

 

1,604.7

 

 

 

(2.8

)

 

 

1,601.9

 

 

Operating Profit

 

 

213.4

 

 

 

(2.2

)

 

 

211.2

 

 

Other expense, net

 

 

(4.5

)

 

 

2.2

 

 

 

(2.3

)

 

Interest income

 

 

0.6

 

 

 

-

 

 

 

0.6

 

 

Interest expense

 

 

(82.3

)

 

 

-

 

 

 

(82.3

)

 

Earnings before income taxes

 

 

127.2

 

 

 

-

 

 

 

127.2

 

 

Provision for income taxes

 

 

28.4

 

 

 

-

 

 

 

28.4

 

 

Net Earnings

 

 

98.8

 

 

 

-

 

 

 

98.8

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

-

 

 

 

-

 

 

 

-

 

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

98.8

 

 

$

-

 

 

$

98.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.49

 

 

$

-

 

 

$

0.49

 

 

   Diluted

 

$

0.48

 

 

$

-

 

 

$

0.48

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

202.3

 

 

 

-

 

 

 

202.3

 

 

   Diluted

 

 

204.0

 

 

 

-

 

 

 

204.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED DECEMBER 31, 2017

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

2,074.3

 

 

$

(6.0

)

 

$

2,068.3

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

591.4

 

 

 

-

 

 

 

591.4

 

 

Intangible asset amortization

 

 

151.5

 

 

 

-

 

 

 

151.5

 

 

Research and development

 

 

95.0

 

 

 

-

 

 

 

95.0

 

 

Selling, general and administrative

 

 

770.6

 

 

 

(3.8

)

 

 

766.8

 

 

Goodwill impairment

 

 

272.0

 

 

 

-

 

 

 

272.0

 

 

Special items

 

 

231.7

 

 

 

-

 

 

 

231.7

 

 

     Operating expenses

 

 

2,112.2

 

 

 

(3.8

)

 

 

2,108.4

 

 

Operating Profit

 

 

(37.9

)

 

 

(2.2

)

 

 

(40.1

)

 

Other expense, net

 

 

(7.1

)

 

 

2.2

 

 

 

(4.9

)

 

Interest income

 

 

0.8

 

 

 

-

 

 

 

0.8

 

 

Interest expense

 

 

(80.0

)

 

 

-

 

 

 

(80.0

)

 

Earnings before income taxes

 

 

(124.2

)

 

 

-

 

 

 

(124.2

)

 

Provision for income taxes

 

 

(1,355.4

)

 

 

-

 

 

 

(1,355.4

)

 

Net Earnings

 

 

1,231.2

 

 

 

-

 

 

 

1,231.2

 

 

Less: Net Loss attributable to

   noncontrolling interest

 

 

(0.2

)

 

 

-

 

 

 

(0.2

)

 

Net Earnings of Zimmer Biomet

   Holdings, Inc.

 

$

1,231.4

 

 

$

-

 

 

$

1,231.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

6.08

 

 

$

-

 

 

$

6.08

 

 

   Diluted

 

$

6.03

 

 

$

-

 

 

$

6.03

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

202.5

 

 

 

-

 

 

 

202.5

 

 

   Diluted

 

 

204.1

 

 

 

-

 

 

 

204.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE YEAR ENDED DECEMBER 31, 2017

(in millions, except per share amounts, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Net Sales

 

$

7,824.1

 

 

$

(20.8

)

 

$

7,803.3

 

 

Cost of products sold, excluding intangible asset

   amortization

 

 

2,132.9

 

 

 

-

 

 

 

2,132.9

 

 

Intangible asset amortization

 

 

603.9

 

 

 

-

 

 

 

603.9

 

 

Research and development

 

 

367.4

 

 

 

-

 

 

 

367.4

 

 

Selling, general and administrative

 

 

2,973.9

 

 

 

(11.9

)

 

 

2,962.0

 

 

Goodwill impairment

 

 

304.7

 

 

 

-

 

 

 

304.7

 

 

Special items

 

 

633.1

 

 

 

-

 

 

 

633.1

 

 

     Operating expenses

 

 

7,015.9

 

 

 

(11.9

)

 

 

7,004.0

 

 

Operating Profit

 

 

808.2

 

 

 

(8.9

)

 

 

799.3

 

 

Other expense, net

 

 

(18.3

)

 

 

8.9

 

 

 

(9.4

)

 

Interest income

 

 

2.2

 

 

 

-

 

 

 

2.2

 

 

Interest expense

 

 

(327.5

)

 

 

-

 

 

 

(327.5

)

 

Earnings before income taxes

 

 

464.6

 

 

 

-

 

 

 

464.6

 

 

Provision for income taxes

 

 

(1,348.8

)

 

 

-

 

 

 

(1,348.8

)

 

Net Earnings

 

 

1,813.4

 

 

 

-

 

 

 

1,813.4

 

 

Less: Net Loss attributable to noncontrolling

   interest

 

 

(0.4

)

 

 

-

 

 

 

(0.4

)

 

Net Earnings of Zimmer Biomet

    Holdings, Inc.

 

$

1,813.8

 

 

$

-

 

 

$

1,813.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

8.98

 

 

$

-

 

 

$

8.98

 

 

   Diluted

 

$

8.90

 

 

$

-

 

 

$

8.90

 

 

Weighted Average Common Shares

   Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

201.9

 

 

 

-

 

 

 

201.9

 

 

   Diluted

 

 

203.7

 

 

 

-

 

 

 

203.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting standard adjustments include a reclassication of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a

    reclassification of certain components of pension expense from Selling, general and

    administrative expenses to Other expense, net due to the adoption of ASU 2017-07.

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

NET SALES

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,177.2

 

 

$

(3.2

)

 

$

1,174.0

 

 

EMEA

 

 

456.3

 

 

 

-

 

 

 

456.3

 

 

Asia Pacific

 

 

270.5

 

 

 

-

 

 

 

270.5

 

 

Total

 

$

1,904.0

 

 

$

(3.2

)

 

$

1,900.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

430.2

 

 

$

(1.1

)

 

$

429.1

 

 

EMEA

 

 

174.0

 

 

 

-

 

 

 

174.0

 

 

Asia Pacific

 

 

99.9

 

 

 

-

 

 

 

99.9

 

 

Total

 

 

704.1

 

 

 

(1.1

)

 

 

703.0

 

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

245.2

 

 

$

(0.7

)

 

$

244.5

 

 

EMEA

 

 

136.7

 

 

 

-

 

 

 

136.7

 

 

Asia Pacific

 

 

85.1

 

 

 

-

 

 

 

85.1

 

 

Total

 

 

467.0

 

 

 

(0.7

)

 

 

466.3

 

 

  S.E.T.(2)

 

 

401.0

 

 

 

(1.1

)

 

 

399.9

 

 

  Dental

 

 

108.6

 

 

 

-

 

 

 

108.6

 

 

  Spine & CMF

 

 

141.2

 

 

 

-

 

 

 

141.2

 

 

  Other

 

 

82.1

 

 

 

(0.3

)

 

 

81.8

 

 

Total

 

$

1,904.0

 

 

$

(3.2

)

 

$

1,900.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

NET SALES

FOR THE THREE MONTHS ENDED JUNE 30, 2016

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,181.0

 

 

$

(3.9

)

 

$

1,177.1

 

 

EMEA

 

 

460.9

 

 

 

-

 

 

 

460.9

 

 

Asia Pacific

 

 

292.1

 

 

 

-

 

 

 

292.1

 

 

Total

 

$

1,934.0

 

 

$

(3.9

)

 

$

1,930.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

417.9

 

 

$

(1.1

)

 

$

416.8

 

 

EMEA

 

 

168.8

 

 

 

-

 

 

 

168.8

 

 

Asia Pacific

 

 

111.1

 

 

 

-

 

 

 

111.1

 

 

Total

 

 

697.8

 

 

 

(1.1

)

 

 

696.7

 

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

247.9

 

 

$

(0.6

)

 

$

247.3

 

 

EMEA

 

 

138.7

 

 

 

-

 

 

 

138.7

 

 

Asia Pacific

 

 

89.8

 

 

 

-

 

 

 

89.8

 

 

Total

 

 

476.4

 

 

 

(0.6

)

 

 

475.8

 

 

  S.E.T.(2)

 

 

412.2

 

 

 

(1.4

)

 

 

410.8

 

 

  Dental

 

 

118.0

 

 

 

-

 

 

 

118.0

 

 

  Spine & CMF

 

 

145.8

 

 

 

(0.4

)

 

 

145.4

 

 

  Other

 

 

83.8

 

 

 

(0.4

)

 

 

83.4

 

 

Total

 

$

1,934.0

 

 

$

(3.9

)

 

$

1,930.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,175.9

 

 

$

(3.6

)

 

$

1,172.3

 

EMEA

 

 

368.8

 

 

 

-

 

 

 

368.8

 

Asia Pacific

 

 

288.1

 

 

 

-

 

 

 

288.1

 

Total

 

$

1,832.8

 

 

$

(3.6

)

 

$

1,829.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

398.2

 

 

$

(1.2

)

 

$

397.0

 

EMEA

 

 

130.3

 

 

 

-

 

 

 

130.3

 

Asia Pacific

 

 

103.9

 

 

 

-

 

 

 

103.9

 

Total

 

 

632.4

 

 

 

(1.2

)

 

 

631.2

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

238.3

 

 

$

(0.7

)

 

$

237.6

 

EMEA

 

 

112.1

 

 

 

-

 

 

 

112.1

 

Asia Pacific

 

 

89.3

 

 

 

-

 

 

 

89.3

 

Total

 

 

439.7

 

 

 

(0.7

)

 

 

439.0

 

  S.E.T.(2)

 

 

401.8

 

 

 

(1.3

)

 

 

400.5

 

  Dental

 

 

95.9

 

 

 

-

 

 

 

95.9

 

  Spine & CMF

 

 

183.7

 

 

 

(0.1

)

 

 

183.6

 

  Other

 

 

79.3

 

 

 

(0.3

)

 

 

79.0

 

Total

 

$

1,832.8

 

 

$

(3.6

)

 

$

1,829.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE THREE MONTHS ENDED DECEMBER 31, 2016

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,268.1

 

 

$

(4.8

)

 

$

1,263.3

 

EMEA

 

 

444.4

 

 

 

-

 

 

 

444.4

 

Asia Pacific

 

 

300.6

 

 

 

-

 

 

 

300.6

 

Total

 

$

2,013.1

 

 

$

(4.8

)

 

$

2,008.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

445.1

 

 

$

(1.5

)

 

$

443.6

 

EMEA

 

 

165.0

 

 

 

-

 

 

 

165.0

 

Asia Pacific

 

 

111.7

 

 

 

-

 

 

 

111.7

 

Total

 

 

721.8

 

 

 

(1.5

)

 

 

720.3

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

253.3

 

 

$

(0.6

)

 

$

252.7

 

EMEA

 

 

134.6

 

 

 

-

 

 

 

134.6

 

Asia Pacific

 

 

93.4

 

 

 

-

 

 

 

93.4

 

Total

 

 

481.3

 

 

 

(0.6

)

 

 

480.7

 

  S.E.T.(2)

 

 

429.4

 

 

 

(1.5

)

 

 

427.9

 

  Dental

 

 

105.4

 

 

 

-

 

 

 

105.4

 

  Spine & CMF

 

 

191.3

 

 

 

(0.8

)

 

 

190.5

 

  Other

 

 

83.9

 

 

 

(0.4

)

 

 

83.5

 

Total

 

$

2,013.1

 

 

$

(4.8

)

 

$

2,008.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE YEAR ENDED DECEMBER 31, 2016

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

4,802.2

 

 

$

(15.5

)

 

$

4,786.7

 

EMEA

 

 

1,730.4

 

 

 

-

 

 

 

1,730.4

 

Asia Pacific

 

 

1,151.3

 

 

 

-

 

 

 

1,151.3

 

Total

 

$

7,683.9

 

 

$

(15.5

)

 

$

7,668.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,691.4

 

 

$

(4.9

)

 

$

1,686.5

 

EMEA

 

 

638.1

 

 

 

-

 

 

 

638.1

 

Asia Pacific

 

 

426.6

 

 

 

-

 

 

 

426.6

 

Total

 

 

2,756.1

 

 

 

(4.9

)

 

 

2,751.2

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

984.7

 

 

$

(2.6

)

 

$

982.1

 

EMEA

 

 

522.1

 

 

 

-

 

 

 

522.1

 

Asia Pacific

 

 

357.6

 

 

 

-

 

 

 

357.6

 

Total

 

 

1,864.4

 

 

 

(2.6

)

 

 

1,861.8

 

  S.E.T.(2)

 

 

1,644.4

 

 

 

(5.3

)

 

 

1,639.1

 

  Dental

 

 

427.9

 

 

 

-

 

 

 

427.9

 

  Spine & CMF

 

 

662.0

 

 

 

(1.3

)

 

 

660.7

 

  Other

 

 

329.1

 

 

 

(1.4

)

 

 

327.7

 

Total

 

$

7,683.9

 

 

$

(15.5

)

 

$

7,668.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE THREE MONTHS ENDED MARCH 31, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,234.8

 

 

$

(4.9

)

 

$

1,229.9

 

EMEA

 

 

453.2

 

 

 

-

 

 

 

453.2

 

Asia Pacific

 

 

289.3

 

 

 

-

 

 

 

289.3

 

Total

 

$

1,977.3

 

 

$

(4.9

)

 

$

1,972.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

429.9

 

 

$

(1.9

)

 

$

428.0

 

EMEA

 

 

167.9

 

 

 

-

 

 

 

167.9

 

Asia Pacific

 

 

104.9

 

 

 

-

 

 

 

104.9

 

Total

 

 

702.7

 

 

 

(1.9

)

 

 

700.8

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

245.5

 

 

$

(1.0

)

 

$

244.5

 

EMEA

 

 

136.2

 

 

 

-

 

 

 

136.2

 

Asia Pacific

 

 

93.1

 

 

 

-

 

 

 

93.1

 

Total

 

 

474.8

 

 

 

(1.0

)

 

 

473.8

 

  S.E.T.(2)

 

 

425.1

 

 

 

(1.6

)

 

 

423.5

 

  Dental

 

 

107.8

 

 

 

-

 

 

 

107.8

 

  Spine & CMF

 

 

186.3

 

 

 

-

 

 

 

186.3

 

  Other

 

 

80.6

 

 

 

(0.4

)

 

 

80.2

 

Total

 

$

1,977.3

 

 

$

(4.9

)

 

$

1,972.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE THREE MONTHS ENDED JUNE 30, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,208.8

 

 

$

(4.9

)

 

$

1,203.9

 

EMEA

 

 

438.2

 

 

 

-

 

 

 

438.2

 

Asia Pacific

 

 

307.4

 

 

 

-

 

 

 

307.4

 

Total

 

$

1,954.4

 

 

$

(4.9

)

 

$

1,949.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

406.8

 

 

$

(1.4

)

 

$

405.4

 

EMEA

 

 

159.8

 

 

 

-

 

 

 

159.8

 

Asia Pacific

 

 

114.8

 

 

 

-

 

 

 

114.8

 

Total

 

 

681.4

 

 

 

(1.4

)

 

 

680.0

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

244.2

 

 

$

(0.8

)

 

$

243.4

 

EMEA

 

 

130.7

 

 

 

-

 

 

 

130.7

 

Asia Pacific

 

 

93.9

 

 

 

-

 

 

 

93.9

 

Total

 

 

468.8

 

 

 

(0.8

)

 

 

468.0

 

  S.E.T.(2)

 

 

422.8

 

 

 

(1.7

)

 

 

421.1

 

  Dental

 

 

110.4

 

 

 

-

 

 

 

110.4

 

  Spine & CMF

 

 

194.0

 

 

 

(0.7

)

 

 

193.3

 

  Other

 

 

77.0

 

 

 

(0.3

)

 

 

76.7

 

Total

 

$

1,954.4

 

 

$

(4.9

)

 

$

1,949.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,142.0

 

 

$

(5.0

)

 

$

1,137.0

 

EMEA

 

 

381.1

 

 

 

-

 

 

 

381.1

 

Asia Pacific

 

 

295.0

 

 

 

-

 

 

 

295.0

 

Total

 

$

1,818.1

 

 

$

(5.0

)

 

$

1,813.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

383.2

 

 

$

(1.7

)

 

$

381.5

 

EMEA

 

 

135.1

 

 

 

-

 

 

 

135.1

 

Asia Pacific

 

 

106.3

 

 

 

-

 

 

 

106.3

 

Total

 

 

624.6

 

 

 

(1.7

)

 

 

622.9

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

227.4

 

 

$

(0.8

)

 

$

226.6

 

EMEA

 

 

115.1

 

 

 

-

 

 

 

115.1

 

Asia Pacific

 

 

91.1

 

 

 

-

 

 

 

91.1

 

Total

 

 

433.6

 

 

 

(0.8

)

 

 

432.8

 

  S.E.T.(2)

 

 

406.6

 

 

 

(1.8

)

 

 

404.8

 

  Dental

 

 

92.9

 

 

 

-

 

 

 

92.9

 

  Spine & CMF

 

 

184.9

 

 

 

(0.4

)

 

 

184.5

 

  Other

 

 

75.5

 

 

 

(0.3

)

 

 

75.2

 

Total

 

$

1,818.1

 

 

$

(5.0

)

 

$

1,813.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE THREE MONTHS ENDED DECEMBER 31, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,280.0

 

 

$

(6.0

)

 

$

1,274.0

 

EMEA

 

 

472.7

 

 

 

-

 

 

 

472.7

 

Asia Pacific

 

 

321.6

 

 

 

-

 

 

 

321.6

 

Total

 

$

2,074.3

 

 

$

(6.0

)

 

$

2,068.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

443.4

 

 

$

(1.8

)

 

$

441.6

 

EMEA

 

 

181.6

 

 

 

-

 

 

 

181.6

 

Asia Pacific

 

 

107.1

 

 

 

-

 

 

 

107.1

 

Total

 

 

732.1

 

 

 

(1.8

)

 

 

730.3

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

255.4

 

 

$

(1.0

)

 

$

254.4

 

EMEA

 

 

136.4

 

 

 

-

 

 

 

136.4

 

Asia Pacific

 

 

106.4

 

 

 

-

 

 

 

106.4

 

Total

 

 

498.2

 

 

 

(1.0

)

 

 

497.2

 

  S.E.T.(2)

 

 

454.6

 

 

 

(2.2

)

 

 

452.4

 

  Dental

 

 

107.5

 

 

 

-

 

 

 

107.5

 

  Spine & CMF

 

 

194.3

 

 

 

(0.5

)

 

 

193.8

 

  Other

 

 

87.6

 

 

 

(0.5

)

 

 

87.1

 

Total

 

$

2,074.3

 

 

$

(6.0

)

 

$

2,068.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

NET SALES

 

FOR THE YEAR ENDED DECEMBER 31, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As Originally

Reported

 

 

Adjustments (1)

 

 

As Adjusted

 

Geographic Results

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

4,865.6

 

 

$

(20.8

)

 

$

4,844.8

 

EMEA

 

 

1,745.2

 

 

 

-

 

 

 

1,745.2

 

Asia Pacific

 

 

1,213.3

 

 

 

-

 

 

 

1,213.3

 

Total

 

$

7,824.1

 

 

$

(20.8

)

 

$

7,803.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Categories

 

 

 

 

 

 

 

 

 

 

 

 

  Knees

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

1,663.3

 

 

$

(6.8

)

 

$

1,656.5

 

EMEA

 

 

644.4

 

 

 

-

 

 

 

644.4

 

Asia Pacific

 

 

433.1

 

 

 

-

 

 

 

433.1

 

Total

 

 

2,740.8

 

 

 

(6.8

)

 

 

2,734.0

 

  Hips

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

972.5

 

 

$

(3.6

)

 

$

968.9

 

EMEA

 

 

518.4

 

 

 

-

 

 

 

518.4

 

Asia Pacific

 

 

384.5

 

 

 

-

 

 

 

384.5

 

Total

 

 

1,875.4

 

 

 

(3.6

)

 

 

1,871.8

 

  S.E.T.(2)

 

 

1,709.1

 

 

 

(7.3

)

 

 

1,701.8

 

  Dental

 

 

418.6

 

 

 

-

 

 

 

418.6

 

  Spine & CMF

 

 

759.5

 

 

 

(1.6

)

 

 

757.9

 

  Other

 

 

320.7

 

 

 

(1.5

)

 

 

319.2

 

Total

 

$

7,824.1

 

 

$

(20.8

)

 

$

7,803.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) New accounting  standard adjustments include a reclassification of certain costs from Selling,

    general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.

 

(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma

 

 


ZIMMER BIOMET HOLDINGS, INC.

 

Reconciliation of Revised Gross Profit & Margin to Adjusted Gross Profit & Margin

 

For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three

Months Ended

 

 

Three Months Ended

 

 

Year Ended

 

 

 

March 31, 2017

 

 

June 30, 2017

 

 

September 30, 2017

 

 

December 31, 2017

 

 

December 31, 2017

 

Revised(1) Net Sales

 

$

1,972.4

 

 

$

1,949.5

 

 

$

1,813.1

 

 

$

2,068.3

 

 

$

7,803.3

 

Cost of products sold, excluding

   intangible asset amortization

 

 

512.9

 

 

 

527.7

 

 

 

500.9

 

 

 

591.4

 

 

 

2,132.9

 

Intangible asset amortization

 

 

152.0

 

 

 

147.7

 

 

 

152.7

 

 

 

151.5

 

 

 

603.9

 

Revised(1) Gross profit

 

$

1,307.5

 

 

$

1,274.1

 

 

$

1,159.5

 

 

$

1,325.4

 

 

$

5,066.5

 

Inventory step-up and other

   inventory and manufacturing

   related charges

 

 

23.2

 

 

 

24.9

 

 

 

10.4

 

 

 

26.1

 

 

 

84.6

 

Intangible asset amortization

 

 

152.0

 

 

 

147.7

 

 

 

152.7

 

 

 

151.5

 

 

 

603.9

 

Adjusted gross profit

 

$

1,482.7

 

 

$

1,446.7

 

 

$

1,322.6

 

 

$

1,503.0

 

 

$

5,755.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised(1) Gross margin

 

 

66.3

%

 

 

65.4

%

 

 

64.0

%

 

 

64.1

%

 

 

64.9

%

Inventory step-up and other

   inventory and manufacturing

   related charges

 

 

1.2

 

 

 

1.2

 

 

 

0.5

 

 

 

1.3

 

 

 

1.2

 

Intangible asset amortization

 

 

7.7

 

 

 

7.6

 

 

 

8.4

 

 

 

7.3

 

 

 

7.7

 

Adjusted gross margin

 

 

75.2

%

 

 

74.2

%

 

 

72.9

%

 

 

72.7

%

 

 

73.8

%

 

(1)  Revisions resulting from adoption of ASU 2014-09

 


ZIMMER BIOMET HOLDINGS, INC.

 

Reconciliation of Revised Gross Profit & Margin to Adjusted Gross Profit & Margin

 

For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2016

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three

Months Ended

 

 

Three Months Ended

 

 

Year Ended

 

 

 

March 31, 2016

 

 

June 30, 2016

 

 

September 30, 2016

 

 

December 31, 2016

 

 

December 31, 2016

 

Revised(1) Net Sales

 

$

1,900.8

 

 

$

1,930.1

 

 

$

1,829.2

 

 

$

2,008.3

 

 

$

7,668.4

 

Cost of products sold, excluding

   intangible asset amortization

 

 

640.6

 

 

 

640.1

 

 

 

479.3

 

 

 

621.8

 

 

 

2,381.8

 

Intangible asset amortization

 

 

126.6

 

 

 

133.8

 

 

 

164.3

 

 

 

141.2

 

 

 

565.9

 

Revised(1) Gross profit

 

$

1,133.6

 

 

$

1,156.2

 

 

$

1,185.6

 

 

$

1,245.3

 

 

$

4,720.7

 

Inventory step-up and other

   inventory and manufacturing

   related charges

 

 

178.3

 

 

 

156.6

 

 

 

22.8

 

 

 

111.4

 

 

 

469.1

 

Intangible asset amortization

 

 

126.6

 

 

 

133.8

 

 

 

164.3

 

 

 

141.2

 

 

 

565.9

 

Adjusted gross profit

 

$

1,438.5

 

 

$

1,446.6

 

 

$

1,372.7

 

 

$

1,497.9

 

 

$

5,755.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised(1) Gross margin

 

 

59.6

%

 

 

59.9

%

 

 

64.8

%

 

 

62.0

%

 

 

61.6

%

Inventory step-up and other

   inventory and manufacturing

   related charges

 

 

9.4

 

 

 

8.1

 

 

 

1.2

 

 

 

5.6

 

 

 

6.1

 

Intangible asset amortization

 

 

6.7

 

 

 

6.9

 

 

 

9.0

 

 

 

7.0

 

 

 

7.4

 

Adjusted gross margin

 

 

75.7

%

 

 

74.9

%

 

 

75.0

%

 

 

74.6

%

 

 

75.1

%

 

(1)  Revisions resulting from adoption of ASU 2014-09


ZIMMER BIOMET HOLDINGS, INC.

 

Reconciliation of Revised Operating Profit (Loss) & Margin to Adjusted Operating Profit & Margin

 

For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2017

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three

Months Ended

 

 

Three Months Ended

 

 

Year Ended

 

 

 

March 31, 2017

 

 

June 30, 2017

 

 

September 30, 2017

 

 

December 31, 2017

 

 

December 31, 2017

 

Revised(1) Operating profit (loss)

 

$

348.1

 

 

$

280.1

 

 

$

211.2

 

 

$

(40.1

)

 

$

799.3

 

Inventory step-up and other inventory

   and manufacturing related charges

 

 

23.2

 

 

 

24.9

 

 

 

10.4

 

 

 

26.1

 

 

 

84.6

 

Intangible asset amortization

 

 

152.0

 

 

 

147.7

 

 

 

152.7

 

 

 

151.5

 

 

 

603.9

 

Goodwill impairment

 

 

-

 

 

 

-

 

 

 

32.7

 

 

 

272.0

 

 

 

304.7

 

Special items

 

 

110.1

 

 

 

158.6

 

 

 

132.7

 

 

 

231.7

 

 

 

633.1

 

Adjusted operating profit

 

$

633.4

 

 

$

611.3

 

 

$

539.7

 

 

$

641.2

 

 

$

2,425.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised(1) Operating profit (loss)

   margin

 

 

17.7

%

 

 

14.4

%

 

 

11.7

%

 

 

(1.9

)%

 

 

10.2

%

Inventory step-up and other inventory

   and manufacturing related charges

 

 

1.2

 

 

 

1.2

 

 

 

0.5

 

 

 

1.3

 

 

 

1.2

 

Intangible asset amortization

 

 

7.7

 

 

 

7.6

 

 

 

8.4

 

 

 

7.3

 

 

 

7.7

 

Goodwill impairment

 

 

-

 

 

 

-

 

 

 

1.8

 

 

 

13.2

 

 

 

3.9

 

Special items

 

 

5.5

 

 

 

8.2

 

 

 

7.4

 

 

 

11.1

 

 

 

8.1

 

Adjusted operating profit margin

 

 

32.1

%

 

 

31.4

%

 

 

29.8

%

 

 

31.0

%

 

 

31.1

%

 

(1)  Revisions resulting from adoption of ASU 2014-09 and ASU 2017-07

 


ZIMMER BIOMET HOLDINGS, INC.

 

Reconciliation of Operating Profit & Margin to Adjusted Operating Profit & Margin

 

For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2016

 

(in millions, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three

Months Ended

 

 

Three Months Ended

 

 

Year Ended

 

 

 

March 31, 2016

 

 

June 30, 2016

 

 

September 30, 2016

 

 

December 31, 2016

 

 

December 31, 2016

 

Revised(1) Operating profit

 

$

244.3

 

 

$

200.4

 

 

$

194.3

 

 

$

182.1

 

 

$

821.1

 

Inventory step-up and other inventory

   and manufacturing related charges

 

 

178.3

 

 

 

156.6

 

 

 

22.8

 

 

 

111.4

 

 

 

469.1

 

Intangible asset amortization

 

 

126.6

 

 

 

133.8

 

 

 

164.3

 

 

 

141.2

 

 

 

565.9

 

Special items

 

 

88.7

 

 

 

137.9

 

 

 

170.4

 

 

 

214.8

 

 

 

611.8

 

Adjusted operating profit

 

$

637.9

 

 

$

628.7

 

 

$

551.8

 

 

$

649.5

 

 

$

2,467.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised(1) Operating profit margin

 

 

12.9

%

 

 

10.4

%

 

 

10.6

%

 

 

9.1

%

 

 

10.7

%

Inventory step-up and other inventory

   and manufacturing related charges

 

 

9.4

 

 

 

8.1

 

 

 

1.2

 

 

 

5.6

 

 

 

6.1

 

Intangible asset amortization

 

 

6.7

 

 

 

6.9

 

 

 

9.0

 

 

 

7.0

 

 

 

7.4

 

Special items

 

 

4.6

 

 

 

7.2

 

 

 

9.4

 

 

 

10.6

 

 

 

8.0

 

Adjusted operating profit margin

 

 

33.6

%

 

 

32.6

%

 

 

30.2

%

 

 

32.3

%

 

 

32.2

%

 

(1)  Revisions resulting from adoption of ASU 2014-09 and ASU 2017-07

 

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