Cover Page
Cover Page | Jun. 22, 2022 |
Document Information [Line Items] | |
Document Type | 8-K |
Entity Central Index Key | 0001136869 |
Entity Registrant Name | ZIMMER BIOMET HOLDINGS, INC. |
Amendment Flag | false |
Entity File Number | 001-16407 |
Document Period End Date | Jun. 22, 2022 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-4151777 |
Entity Address, Address Line One | 345 East Main Street |
Entity Address, Postal Zip Code | 46580 |
Entity Address, City or Town | Warsaw |
City Area Code | 574 |
Local Phone Number | 267-6131 |
Entity Address, State or Province | IN |
Entity Emerging Growth Company | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Common Stock [Member] | |
Document Information [Line Items] | |
Trading Symbol | ZBH |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Stock, $0.01 par value |
1.414% Notes due 2022 | |
Document Information [Line Items] | |
Trading Symbol | ZBH 22A |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.414% Notes due 2022 |
2.425% Notes due 2026 | |
Document Information [Line Items] | |
Trading Symbol | ZBH 26 |
Security Exchange Name | NYSE |
Title of 12(b) Security | 2.425% Notes due 2026 |
1.164% Notes due 2027 | |
Document Information [Line Items] | |
Trading Symbol | ZBH 27 |
Security Exchange Name | NYSE |
Title of 12(b) Security | 1.164% Notes due 2027 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net Sales | $ 6,827.3 | $ 6,127.5 | $ 6,960.6 |
Type of Revenue [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of products sold, excluding intangible asset amortization | $ 1,960.4 | $ 1,824.3 | $ 1,943.7 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Intangible asset amortization | $ 529.5 | $ 512.1 | $ 500.9 |
Research and development | 435.8 | 322.8 | 394.1 |
Selling, general and administrative | 2,843.4 | 2,712.7 | 2,810.1 |
Goodwill and intangible asset impairment | 16.3 | 503 | 70.1 |
Restructuring and other cost reduction initiatives | 125.7 | 107.2 | 48.2 |
Quality remediation | 52.8 | 50.9 | 82 |
Acquisition, integration, divestiture and related | 3.1 | 11.4 | (0.5) |
Operating expenses | 5,967 | 6,044.4 | 5,848.6 |
Operating Profit | 860.3 | 83.1 | 1,112 |
Other income (expense), net | 12.2 | 23.8 | (4.9) |
Interest expense, net | (208.4) | (212.1) | (227) |
Loss on early extinguishment of debt | (165.1) | 0 | 0 |
Earnings (loss) from continuing operations before income taxes | 499 | (105.2) | 880.1 |
Provision (benefit) for income taxes from continuing operations | 53.5 | (96) | (238) |
Net Earnings (Loss) from Continuing Operations | 445.5 | (9.2) | 1,118.1 |
Less: Net earnings (loss) attributable to noncontrolling interest | 0.5 | 1.5 | (0.1) |
Net Earnings (Loss) from Continuing Operations of Zimmer Biomet Holdings, Inc. | 445 | (10.7) | 1,118.2 |
(Loss) Earnings from Discontinued Operations, Net of Tax | (43.4) | (128.2) | 13.4 |
Net Earnings (Loss) of Zimmer Biomet Holdings, Inc. | $ 401.6 | $ (138.9) | $ 1,131.6 |
Basic Earnings Per Common Share | |||
Earnings (Loss) from Continuing Operations | $ 2.14 | $ (0.05) | $ 5.45 |
(Loss) Earnings from Discontinued Operations | (0.21) | (0.62) | 0.07 |
Basic Earnings (Loss) Per Common Share | 1.93 | (0.67) | 5.52 |
Diluted Earnings Per Common Share | |||
Earnings (Loss) from Continuing Operations | 2.12 | (0.05) | 5.41 |
(Loss) Earnings from Discontinued Operations | (0.21) | (0.62) | 0.06 |
Diluted Earnings (Loss) Per Common Share | $ 1.91 | $ (0.67) | $ 5.47 |
Weighted Average Common Shares Outstanding | |||
Basic | 208.6 | 207 | 205.1 |
Diluted | 210.4 | 207 | 206.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net Earnings (Loss) of Zimmer Biomet Holdings, Inc. | $ 401.6 | $ (138.9) | $ 1,131.6 |
Other Comprehensive Income (Loss): | |||
Foreign currency cumulative translation adjustments, net of tax | (99.9) | 25.6 | (1.5) |
Unrealized cash flow hedge gains/(losses), net of tax | 86.4 | (33.5) | 30.6 |
Reclassification adjustments on hedges, net of tax | 1.3 | (38.5) | (35.1) |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 78.4 | (9.5) | (48.5) |
Total Other Comprehensive Income (Loss) | 66.2 | (55.9) | (54.5) |
Comprehensive Income (Loss) Attributable to Zimmer Biomet Holdings, Inc. | $ 467.8 | $ (194.8) | $ 1,077.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 378.1 | $ 774.7 |
Accounts receivable, less allowance for credit losses | 1,259.6 | 1,278.1 |
Inventories | 2,148 | 2,174.2 |
Prepaid taxes | 326.7 | 206.3 |
Prepaid expenses and other current assets | 271 | 161.8 |
Current assets of discontinued operations | 501.6 | 488.2 |
Total Current Assets | 4,885 | 5,083.3 |
Property, plant and equipment, net | 1,836.6 | 1,863.8 |
Goodwill | 8,919.4 | 8,983.1 |
Intangible assets, net | 5,533.6 | 6,164.4 |
Other assets | 1,005 | 906.2 |
Noncurrent assets of discontinued operations | 1,276.8 | 1,416.9 |
Total Assets | 23,456.4 | 24,417.7 |
Current Liabilities: | ||
Accounts payable | 306.5 | 281.9 |
Income taxes payable | 62 | 55.7 |
Other current liabilities | 1,317.1 | 1,511.8 |
Current portion of long-term debt | 1,605.1 | 500 |
Current liabilities of discontinued operations | 177.2 | 207.5 |
Total Current Liabilities | 3,467.9 | 2,556.9 |
Deferred income taxes, net | 558.5 | 626.4 |
Long-term income tax payable | 583 | 587.9 |
Other long-term liabilities | 548.5 | 593.7 |
Long-term debt | 5,463.7 | 7,626.5 |
Noncurrent liabilities of discontinued operations | 168.4 | 226.9 |
Total Liabilities | 10,790 | 12,218.3 |
Commitments and Contingencies (Note 22) | ||
Stockholders' Equity: | ||
Common stock, $0.01 par value, one billion shares authorized, 312.8 million (311.4 million in 2020) issued | 3.1 | 3.1 |
Paid-in capital | 9,314.8 | 9,121.6 |
Retained earnings | 10,292.2 | 10,086.9 |
Accumulated other comprehensive loss | (231.6) | (297.8) |
Treasury stock, 103.8 million shares (103.8 million shares in 2020) | (6,717.8) | (6,719.6) |
Total Zimmer Biomet Holdings, Inc. stockholders' equity | 12,660.7 | 12,194.2 |
Noncontrolling interest | 5.7 | 5.2 |
Total Stockholders' Equity | 12,666.4 | 12,199.4 |
Total Liabilities and Stockholders' Equity | $ 23,456.4 | $ 24,417.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 312,800,000 | 311,400,000 |
Treasury stock, shares | 103,800,000 | 103,800,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Shares [Member] | Noncontrolling Interest [Member] |
Balance at Dec. 31, 2018 | $ 11,276.1 | $ 3.1 | $ 8,686.1 | $ 9,491.2 | $ (187.4) | $ (6,721.7) | $ 4.8 |
Balance, shares at Dec. 31, 2018 | 307.9 | (103.9) | |||||
Net (loss) earnings | 1,131.5 | 1,131.6 | (0.1) | ||||
Other comprehensive income (loss) | (54.5) | (54.5) | |||||
Cash dividends declared | (197.2) | (197.2) | |||||
Stock compensation plans | 236.9 | 234 | 1.7 | $ 1.2 | |||
Stock compensation plans, shares | 2 | ||||||
Balance at Dec. 31, 2019 | 12,392.8 | $ 3.1 | 8,920.1 | 10,427.3 | (241.9) | $ (6,720.5) | 4.7 |
Balance, shares at Dec. 31, 2019 | 309.9 | (103.9) | |||||
Net (loss) earnings | (137.4) | (138.9) | 1.5 | ||||
Other comprehensive income (loss) | (55.9) | (55.9) | |||||
Cash dividends declared | (198.9) | (198.9) | |||||
Adoption of new accounting standard | (3.1) | (3.1) | |||||
Acquisition of noncontrolling interest | (1) | (1) | |||||
Stock compensation plans | 202.9 | 201.5 | 0.5 | $ 0.9 | |||
Stock compensation plans, shares | 1.5 | 0.1 | |||||
Balance at Dec. 31, 2020 | 12,199.4 | $ 3.1 | 9,121.6 | 10,086.9 | (297.8) | $ (6,719.6) | 5.2 |
Balance, shares at Dec. 31, 2020 | 311.4 | (103.8) | |||||
Net (loss) earnings | 402.1 | 401.6 | 0.5 | ||||
Other comprehensive income (loss) | 66.2 | 66.2 | |||||
Cash dividends declared | (200.4) | (200.4) | |||||
Stock compensation plans | 199.1 | 193.2 | 4.1 | $ 1.8 | |||
Stock compensation plans, shares | 1.4 | ||||||
Balance at Dec. 31, 2021 | $ 12,666.4 | $ 3.1 | $ 9,314.8 | $ 10,292.2 | $ (231.6) | $ (6,717.8) | $ 5.7 |
Balance, shares at Dec. 31, 2021 | 312.8 | (103.8) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividend declared per share | $ 0.96 | $ 0.96 | $ 0.96 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows provided by (used in) operating activities from continuing operations: | |||
Net earnings (loss) from continuing operations | $ 445.5 | $ (9.2) | $ 1,118.1 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 937.7 | 898.4 | 871 |
Share-based compensation | 76 | 73.8 | 77.2 |
Goodwill and intangible asset impairment | 16.3 | 503 | 70.1 |
Loss on early extinguishment of debt | 165.1 | 0 | 0 |
Deferred income tax (benefit) provision | (102.1) | 39.4 | (587.8) |
Changes in operating assets and liabilities, net of acquired assets and liabilities | |||
Income taxes | (123.9) | (293.9) | 148.2 |
Receivables | (40.8) | (66.2) | (103.9) |
Inventories | (8.4) | (34.5) | (124.7) |
Accounts payable and accrued liabilities | 86.5 | (96.3) | (43.1) |
Other assets and liabilities | (47.6) | 61.1 | (35.3) |
Net cash provided by operating activities from continuing operations | 1,404.3 | 1,075.6 | 1,389.8 |
Cash flows provided by (used in) investing activities from continuing operations: | |||
Additions to instruments | (273.6) | (259) | (271.6) |
Additions to other property, plant and equipment | (143.6) | (111.9) | (198.4) |
Net investment hedge settlements | 1.9 | 53.5 | 48.1 |
Acquisition of intellectual property rights | (8.4) | (0.4) | (197.6) |
Business combination investments, net of acquired cash | (227.1) | (9.5) | |
Investments in other assets | (19.6) | (19.4) | (15.7) |
Net cash used in investing activities from continuing operations | (443.3) | (564.3) | (644.7) |
Cash flows provided by (used in) financing activities from continuing operations: | |||
Proceeds from senior notes | 1,599.8 | 1,497.1 | 549.2 |
Redemption of senior notes | (2,654.8) | (1,750) | (500) |
Proceeds from term loans | 200 | ||
Payments on term loans | (960) | ||
Net payments on other debt | (5.3) | ||
Dividends paid to stockholders | (200.1) | (198.5) | (196.7) |
Proceeds from employee stock compensation plans | 122.5 | 129.8 | 158.2 |
Net cash flows from unremitted collections from factoring programs | (53) | (9.9) | |
Business combination contingent consideration payments | (8.9) | (15) | (2.9) |
Debt issuance costs | (13.2) | (22.3) | (3.5) |
Deferred business combination payments | (145) | ||
Other financing activities | (6.3) | (8.3) | (6.7) |
Net cash used in financing activities from continuing operations | (1,306) | (420.2) | (777.6) |
Cash flows provided by (used in) discontinued operations: | |||
Net cash provided by operating activities | 94.9 | 128.9 | 196 |
Net cash used in investing activities | (60.3) | (49.5) | (84.6) |
Net cash used in financing activities | 0 | (1.6) | (2.3) |
Net cash provided by discontinued operations | 34.6 | 77.8 | 109.1 |
Effect of exchange rates on cash and cash equivalents | (13.2) | 15.3 | (1.5) |
(Decrease) increase in cash and cash equivalents | (323.6) | 184.2 | 75.1 |
Cash and cash equivalents, beginning of year (includes $27.4 million, $36.7 million and $46.3 million at January 1, 2021, 2020 and 2019, respectively, of discontinued operations cash) | 802.1 | 617.9 | 542.8 |
Cash and cash equivalents, end of year (includes $100.4 million, $27.4 million and $36.7 million at December 31, 2021, 2020 and 2019, respectively, of discontinued operations cash) | $ 478.5 | $ 802.1 | $ 617.9 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (unaudited) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Statement of Cash Flows [Abstract] | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Disposal Group, Including Discontinued Operations | $ 100.4 | $ 27.4 | $ 27.4 | $ 36.7 | $ 36.7 | $ 46.3 |
Business
Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | 1. Business We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; craniomaxillofacial and thoracic products; and related surgical products. We collaborate with healthcare professionals around the globe to advance the pace of innovation. Our products and solutions help treat patients suffering from disorders of, or injuries to, bones, joints or supporting soft tissues. Together with healthcare professionals, we help millions of people live better lives. The words “Zimmer Biomet,” “we,” “us,” “our,” “the Company” and similar words refer to Zimmer Biomet Holdings, Inc. and its subsidiaries. “Zimmer Biomet Holdings” refers to the parent company only. In 2015, we completed our merger with LVB Acquisition, Inc., the parent company of Biomet, Inc. (“Biomet”). Risks and Uncertainties COVID-19 COVID-19 COVID-19 Spinoff of the outstanding shares of common stock of ZimVie Inc. (“ZimVie”) to Zimmer Biomet Holding’s stockholders. The historical results of our spine and dental businesses that were contributed to ZimVie in the spinoff have been reflected as discontinued operations in our consolidated financial statements as the spinoff represents a strategic shift in our business that has a major effect on operations and financial results. As of December 31, 2021 and 2020, the assets and liabilities associated with these businesses are classified as assets and liabilities of discontinued operations in the consolidated balance sheets. Additionally, we use a centralized approach to cash management and financing of operations, which historically included the spine and dental businesses. Cash transfers to and from us and the spine and dental business are eliminated in consolidation. The disclosures presented in our notes to the consolidated financial statements are presented on a continuing operations basis. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation interest Use of Estimates - We COVID-19 Foreign Currency Translation - period-end Shipping and Handling Research and Development - in-process Litigation Quality remediation - Restructuring and other cost reduction initiatives - In December 2021, our management approved a new global restructuring program to reorganize our operations in preparation for the planned spinoff of ZimVie with an objective of reducing costs. In December 2019, our Board of Directors approved, and we initiated, a new global restructuring program with an objective of reducing costs to allow us to further invest in higher priority growth opportunities. Restructuring charges for the years ended December 31, 2021, 2020 and 2019 were primarily attributable to these programs. Acquisition, integration, divestiture and related – • Consulting and professional fees related to third-party integration and divestiture consulting performed in a variety of areas, such as finance, tax, compliance, logistics and human resources, and legal fees related to the consummation of mergers and acquisitions or divestitures. • Employee termination benefits related to terminating employees with overlapping responsibilities in various areas of our business. • Dedicated project personnel expenses which include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our integration of acquired businesses and employees who have been notified of termination, but are continuing to work on transferring their responsibilities. • Contract termination expenses related to terminated contracts, primarily with sales agents and distribution agreements. • Other various expenses to relocate facilities, integrate information technology, losses incurred on assets resulting from the applicable acquisition, and other various expenses. Cash and Cash Equivalents - Accounts Receivable creditworthiness of the customer and other pertinent information. We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off We also have receivables purchase arrangements with unrelated third parties to transfer portions of our trade accounts receivable balance. We terminated our purchase arrangements in the U.S. and Japan during the year ended December 31, 2020, but continue to have arrangements in Europe. Funds received from the transfers are recorded as an increase to cash and a reduction to accounts receivable outstanding in our consolidated balance sheets. We report the cash flows attributable to the sale of receivables to third parties in cash flows from operating activities in our consolidated statements of cash flows. Net expenses resulting from the sales of receivables are recognized in SG&A expense. Net expenses include any resulting gains or losses from the sales of receivables, credit insurance and factoring fees. Under the previous arrangement in the U.S. and Japan, any collections that we made that were unremitted to the third parties were recognized on our consolidated balance sheets under other current liabilities and in our consolidated statements of cash flows in financing activities. In Europe, we have no continuing involvement with Inventories - first-in first-out Property, Plant and Equipment - ten three Software Costs three For cloud computing arrangements that are considered a service contract, our capitalization of implementation costs is aligned with the internal use software requirements. However, on our consolidated balance sheet these implementation costs are recognized in other noncurrent assets. On our consolidated statement of cash flows, these implementations costs are recognized in operating cash flows. The implementation costs are recognized on a straight-line basis over the expected term of the related service contract. Instruments Goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as estimated growth rates, forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the business unit exceeds the fair value. See Note 12 for more information regarding goodwill. Intangible Assets after-tax Intangible assets with an indefinite life, including certain trademarks and trade names and in-process In determining the useful lives of intangible assets, we consider the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, we consider the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Trademarks and trade names that do not have a wasting characteristic (i.e., there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life) are assigned an indefinite life. Trademarks and trade names that are related to products expected to be phased out are assigned lives consistent with the period in which the products bearing each brand are expected to be sold. For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition. Intellectual property rights are assigned useful lives that approximate the contractual life of any related patent or the period for which we maintain exclusivity over the intellectual property. Income Taxes - We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We operate on a global basis and are subject to numerous and complex tax laws and regulations. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Because income tax adjustments in certain jurisdictions can be significant, we record tax positions based upon our estimates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Derivative Financial Instruments - financial Accumulated Other Comprehensive Income (Loss) – hedges Treasury Stock account held Noncontrolling Interest Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, In August 2018, the FASB issued ASU 2018-15, Other-Internal-Use 2018-15 internal-use 2018-15 In December 2019, the FASB issued ASU 2019-12 2019-12 step-up Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 2020-04 In July 2021, the FASB issued ASU 2021-05 day-one 2021-05 day-one 2021-05. There are no recently issued accounting pronouncements that we have not yet adopted that are expected to have a material effect on our financial position, results of operations or cash flows. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations On March 1, 2022, we completed the previously announced separation of our spine and dental businesses through the distribution of 80.3% of the outstanding shares of common stock of ZimVie to our stockholders at the close of business on February 15, 2022 (the “Record Date”). The distribution was made in the amount of one share of ZimVie common stock for every ten shares of our common stock owned by our stockholders at the close of business on the Record Date. Fractional shares of ZimVie common stock were not issued but instead were aggregated and sold in the open market with the proceeds being distributed pro rata in lieu of such fractional shares. We retained 19.7 percent of the outstanding common shares of ZimVie. In the fourth quarter of 2021, ZimVie entered into a credit agreement with a financial institution providing for revolving loans of up to $175.0 million and term loan borrowings of up to $595.0 million. On February 28, 2022, prior to separation, ZimVie borrowed the entire $595.0 million available under the term loan. Approximately $540.6 million of this amount was paid by ZimVie to Zimmer Biomet in the form of a dividend at separation. We used proceeds from the dividend, along with cash on hand and proceeds from a draw on our revolving credit facility, to repay our 3.150% Senior Notes due 2022 which had an outstanding principal balance of $750.0 million. Also, in connection with the spinoff, we entered into definitive agreements with ZimVie that, among other things, set forth the terms and conditions of the separation and distribution. The agreements set forth the principles and actions taken or to be taken in connection with the separation and the distribution and provide a framework for our relationship with ZimVie from and after the separation and the distribution. The agreements include a Separation and Distribution Agreement, a Tax Matters Agreement, an Employee Matters Agreement, a Transition Services Agreement (the “TSA”), an Intellectual Property Matters Agreement, a Stockholder and Registration Rights Agreement, a Transition Manufacturing and Supply Agreement (the “TMA”), a Reverse Transition Manufacturing and Supply Agreement (the “Reverse TMA”) and a Transitional Trademark License Agreement, each dated as of March 1, 2022. Pursuant to the TSA, both we and ZimVie agree to provide certain services to each other, on an interim, transitional basis from and after the separation and the distribution. The services include certain regulatory services, commercial services, operational services, tax services, clinical affairs services, information technology services, finance and accounting services and human resource and employee benefits services. The remuneration to be paid for such services is generally intended to allow the company providing the services to recover all of its costs and expenses of providing such services. The TSA will terminate on the expiration of the term of the last service provided thereunder, which will generally be no later than March 31, 2025. However, we expect most TSA services will be completed by the end of 2023. Pursuant to the TMA and the Reverse TMA, Zimmer Biomet or ZimVie, as the case may be, will manufacture or cause to be manufactured certain products for the other party, on an interim, transitional basis. Pursuant to such agreements, Zimmer Biomet or ZimVie, as the case may be, will be required to purchase certain minimum amounts of products from the other party. Each of the TMA and the Reverse TMA has a two-year one-year We recognize any gains or losses from the TSA and TMA agreements in Acquisition, integration, divestiture and related expense in our consolidated statements of earnings. Amounts included in the consolidated statements of earnings related to these agreements for the years ended December 31, 2021 and 2020 were immaterial. As discussed in Note 1, Business, the results of our spine and dental businesses have been reflected as discontinued operations in the consolidated statements of earnings for the years presented. Details of earnings (loss) from discontinued operations included in our consolidated statements of earnings are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Net Sales $ 1,008.8 $ 896.9 $ 1,021.6 Cost of products sold, excluding intangible asset amortization 380.6 304.0 308.9 Intangible asset amortization 86.2 85.5 83.4 Research and development 61.3 49.0 55.2 Selling, general and administrative 480.5 465.0 533.7 Goodwill and intangible asset impairment — 142.0 — Restructuring and other cost reduction initiatives 3.3 9.7 1.8 Quality remediation 0.2 0.2 0.4 Acquisition, integration, divestiture and related 76.8 12.4 12.7 Other expense (income), net 0.5 (1.6 ) (0.2 ) (Loss) Earnings from discontinued operations before income taxes (80.6 ) (169.3 ) 25.7 (Benefit) Provision for income taxes from discontinued operations (37.2 ) (41.1 ) 12.3 (Loss) Earnings from discontinued operations, net of tax $ (43.4 ) $ (128.2 ) $ 13.4 Details of assets and liabilities of discontinued operations are as follows (in millions): December 31, 2021 December 31, 2020 Cash and cash equivalents $ 100.4 $ 27.4 Accounts receivable, less allowance for credit losses 145.3 174.6 Inventories 246.5 276.5 Prepaid expenses and other current assets 9.4 9.7 Total Current Assets of Discontinued Operations $ 501.6 $ 488.2 Property, plant and equipment, net $ 179.9 $ 183.9 Goodwill 272.8 278.7 Intangible assets, net 766.2 891.0 Other assets 57.9 63.3 Total Noncurrent Assets of Discontinued Operations $ 1,276.8 $ 1,416.9 Accounts payable $ 44.7 $ 48.1 Income taxes payable 3.1 3.8 Other current liabilities 129.4 155.6 Total Current Liabilities of Discontinued Operations $ 177.2 $ 207.5 Deferred income taxes, net $ 107.1 $ 164.0 Other long-term liabilities 61.3 62.9 Total Noncurrent Liabilities of Discontinued Operations $ 168.4 $ 226.9 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 4 . Revenue Recognition We recognize revenue when our performance obligations under the terms of a contract with our customer are satisfied. This happens when we transfer control of our products to the customer, which generally occurs upon implantation or when title passes upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring our product. Taxes collected from customers and remitted to governmental authorities are excluded from revenues. We sell products through two principal channels: 1) direct to healthcare institutions, referred to as direct channel accounts; and 2) through stocking distributors and healthcare dealers. In direct channel accounts and with some healthcare dealers, inventory is generally consigned to sales agents or customers so that products are available when needed for surgical procedures. No revenue is recognized upon the placement of inventory into consignment, as we retain the ability to control the inventory. Upon implantation, we issue an invoice and revenue is recognized. Consignment sales represented approximately 85 percent of our net sales in 2021. Pricing for products is generally predetermined by contracts with customers, agents acting on behalf of customer groups or by government regulatory bodies, depending on the market. Price discounts under group purchasing contracts are generally linked to volume of implant purchases by customer healthcare institutions within a specified group. At negotiated thresholds within a contract buying period, price discounts may increase. Payment terms vary by customer, but are typically less than 90 days. With sales to stocking distributors and some healthcare dealers and hospitals, revenue is generally recognized when control of our product passes to the customer, which can be upon shipment of the product or receipt by the customer. We estimate sales recognized in this manner represented approximately 15 percent of our net sales in 2021. These customers may purchase items in large quantities if incentives are offered or if there are new product offerings in a market, which could cause period-to-period We offer standard warranties to our customers that our products are not defective. These standard warranties are not considered separate performance obligations. In limited circumstances, we offer extended warranties that are separate performance obligations. We have very few contracts that have multiple performance obligations. Since we do not have significant multiple element arrangements and essentially all of our sales are recognized upon implantation of a product or when title passes, very little judgment is required to allocate the transaction price of a contract or determine when control has passed to a customer. Our costs to obtain contracts consist primarily of sales commissions to employees or third-party agents that are earned when control of our product passes to the customer. Therefore, sales commissions are expensed as part of SG&A expenses at the same time revenue is recognized. Accordingly, we do not have significant contract assets, liabilities or future performance obligations. We offer volume-based discounts, rebates, prompt pay discounts, right of return and other various incentives which we account for under the variable consideration model. If sales incentives may be earned by a customer for purchasing a specified amount of our product, we estimate whether such incentives will be achieved and recognize these incentives as a reduction in revenue in the same period the underlying revenue transaction is recognized. We primarily use the expected value method to estimate incentives. Under the expected value method, we consider the historical experience of similar programs as well as review sales trends on a customer-by-customer We analyze sales by three geographies, the Americas; Europe, Middle East and Africa (“EMEA”); and Asia Pacific; and by the following product categories: Knees; Hips; Sports Medicine, Biologics, Foot and Ankle, Extremities and Trauma, and Craniomaxillofacial and Thoracic (“CMFT”) (“S.E.T.”); and Other. Net sales by geography are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Americas $ 4,102.1 $ 3,699.5 $ 4,148.8 EMEA 1,477.2 1,237.3 1,554.8 Asia Pacific 1,248.0 1,190.7 1,257.0 Total $ 6,827.3 $ 6,127.5 $ 6,960.6 Net sales by product category are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Knees $ 2,647.9 $ 2,378.3 $ 2,780.6 Hips 1,856.1 1,750.5 1,931.5 S.E.T 1,727.8 1,525.6 1,652.5 Other 595.5 473.1 596.0 Total $ 6,827.3 $ 6,127.5 $ 6,960.6 In the first quarter of 2021, we updated our product category revenue reporting. Product category sales include the following changes: • Orthopedic robotic capital sales and services, previously reported in the Knee product category, are included in the Other product category; • Disposable products used in computer-assisted surgeries, previously reported in the Other product category, are included in the Knees product category; • CMFT products are included in the S.E.T. product category; • Other immaterial adjustments across product categories related to brand alignment. Prior period product category sales have been reclassified to conform to the current presentation. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 5. Restructuring In December 2021, our management approved a new global restructuring program (the “2021 Restructuring Plan”) to reorganize our operations in preparation for the planned spinoff of ZimVie with an objective of reducing costs. The 2021 Restructuring Plan is expected to result in total pre-tax pre-tax pre-tax agent contract terminations, consulting and project management. The following table summarizes the liabilities recognized related to the 2021 Restructuring Plan (in millions): Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2020 $ — $ — $ — $ — Additions 19.5 2.3 10.3 32.1 Cash payments — — — — Foreign currency exchange rate changes — — — — Balance, December 31, 2021 19.5 2.3 10.3 32.1 Expense estimated to be recognized for the 2021 Restructuring Plan $ 62.0 $ 167.0 $ 11.0 $ 240.0 In December 2019, our Board of Directors approved, and we initiated, a new global restructuring program (the “2019 Restructuring Plan”) with an objective of reducing costs to allow us to further invest in higher priority growth opportunities. The 2019 Restructuring Plan is expected to result in total pre-tax pre-tax pre-tax Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2018 $ — $ — $ — $ — Additions 22.3 — 12.2 34.5 Cash Payments — — (8.1 ) (8.1 ) Balance, December 31, 2019 22.3 — 4.1 26.4 Additions 49.6 15.8 33.1 98.5 Cash payments (35.5 ) (4.9 ) (22.1 ) (62.5 ) Foreign currency exchange rate changes 1.4 — — 1.4 Balance, December 31, 2020 37.8 10.9 15.1 63.8 Additions 7.3 18.5 49.2 75.0 Cash payments (28.7 ) (12.9 ) (64.2 ) (105.8 ) Foreign currency exchange rate changes (1.6 ) — (0.1 ) (1.7 ) Balance, December 31, 2021 $ 14.8 $ 16.5 $ — $ 31.3 Expense incurred since the start of the 2019 Restructuring Plan $ 79.2 $ 34.3 $ 94.5 $ 208.0 Expense estimated to be recognized for the 2019 Restructuring Plan $ 175.0 $ 40.0 $ 145.0 $ 360.0 For the expense estimated to be recognized for the 2019 Restructuring Plan, we have disclosed the midpoint in our estimated range of expenses. We do not include restructuring charges in the operating profit of our reportable segments. In our consolidated statement of earnings, we report restructuring charges in our “Restructuring and other cost reduction initiatives” financial statement line item. We report the expenses for other cost reduction initiatives with restructuring expenses because these activities also have the goal of reducing costs across the organization. However, since the cost reduction initiative expenses are not considered restructuring, they have been excluded from the amounts presented in this note. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | 6. Share-Based Compensation Our share-based payments primarily consist of stock options and restricted stock units (“RSUs”). Share-based compensation expense was as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Total expense, pre-tax $ 76.0 $ 73.8 $ 77.2 Tax benefit related to awards 17.2 15.6 19.7 Total expense, net of tax $ 58.8 $ 58.2 $ 57.5 We had two equity compensation plans in effect at December 31, 2021: the 2009 Stock Incentive Plan (“2009 Plan”) and the Stock Plan for Non-Employee Non-Employee non-employee Stock Options Stock options granted to date under our plans generally vest over four years and have a maximum contractual life of 10 years. As established under our equity compensation plans, vesting may accelerate upon retirement after the first anniversary date of the award if certain criteria are met. We recognize expense related to stock options on a straight-line basis over the requisite service period, less awards expected to be forfeited using estimated forfeiture rates. Due to the accelerated retirement provisions, the requisite service period of our stock options range from one A summary of stock option activity for the year ended December 31, 2021 is as follows (options in thousands): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Intrinsic Value (in millions) Outstanding at January 1, 2021 7,423 $ 116.67 Options granted 1,278 163.47 Options exercised (871 ) 99.92 Options forfeited (219 ) 150.10 Options expired (64 ) 149.02 Outstanding at December 31, 2021 7,547 $ 125.32 6.0 $ 90.5 Vested or expected to vest as of December 31, 2021 7,291 $ 124.52 6.0 $ 90.0 Exercisable at December 31, 2021 4,805 $ 111.42 4.8 $ 85.6 We use a Black-Scholes option-pricing model to determine the fair value of our stock options. Expected volatility was derived from a combination of historical volatility and implied volatility because the options that were actively traded around the grant date of our stock options did not have maturities of over one year. The expected term of the stock options has been derived from historical employee exercise behavior. The risk-free interest rate was determined using the implied yield currently available for zero-coupon The following table presents information regarding the weighted average fair value of stock options granted, the assumptions used to determine fair value, the intrinsic value of options exercised and the tax benefit of options exercised in the indicated year: For the Years Ended December 31, 2021 2020 2019 Dividend yield 0.6 % 0.6 % 0.8 % Volatility 30.3 % 22.3 % 22.1 % Risk-free interest rate 0.7 % 1.3 % 2.4 % Expected life (years) 5.4 5.0 5.5 Weighted average fair value of options granted $ 43.91 $ 31.65 $ 28.68 Intrinsic value of options exercised (in millions) $ 54.6 $ 50.1 $ 76.8 Tax benefit of options exercised (in millions) $ 10.8 $ 9.6 $ 15.8 As of December 31, 2021, there was $55.2 million of unrecognized share-based payment expense related to nonvested stock options granted under our plans. That expense is expected to be recognized over a weighted average period of 2.5 years. RSUs We have awarded RSUs to certain of our employees. The terms of the awards are generally three A summary of nonvested RSU activity for the year ended December 31, 2021 is as follows (RSUs in thousands): RSUs Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 1,070 $ 129.65 Granted 556 171.37 Vested (239 ) 119.32 Forfeited (348 ) 122.90 Outstanding at December 31, 2021 1,039 146.58 For the RSUs with service conditions only, the fair value of the awards was determined based upon the fair market value of our common stock on the date of grant. For the RSUs with market conditions, a Monte Carlo valuation technique was used to simulate the market conditions of the awards. The outcome of the simulation was used to determine the fair value of the awards. We are required to estimate the number of RSUs that will vest and recognize share-based payment expense on a straight-line basis over the requisite service period. As of December 31, 2021, we estimate that approximately 682,437 outstanding RSUs will vest. If our estimate were to change in the future, the cumulative effect of the change in estimate will be recorded in that period. Based upon the number of RSUs that we expect to vest, the unrecognized share-based payment expense as of December 31, 2021 was $57.9 million and is expected to be recognized over a weighted-average period of 2.2 years. The fair value of RSUs that vested during the years ended December 31, 2021, 2020 and 2019 based upon our stock price on the date of vesting was $40.0 million, $33.2 million, and $26.3 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories Inventories consisted of the following (in millions): As of December 31, 2021 2020 Finished goods $ 1,729.2 $ 1,712.4 Work in progress 175.5 200.1 Raw materials 243.3 261.7 Inventories $ 2,148.0 $ 2,174.2 Amounts charged to the consolidated statements of earnings for excess and obsolete inventory, including certain product lines we intend to discontinue, in the years ended December 31, 2021, 2020 and 2019 were $117.3 million, $230.0 million and $197.0 million, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. Property, Plant and Equipment Property, plant and equipment consisted of the following (in millions): As of December 31, 2021 2020 Land $ 20.1 $ 20.4 Building and equipment 2,086.0 1,973.9 Capitalized software costs 454.9 425.9 Instruments 3,460.4 3,191.0 Construction in progress 116.3 121.9 6,137.7 5,733.1 Accumulated depreciation (4,301.1 ) (3,869.3 ) Property, plant and equipment, net $ 1,836.6 $ 1,863.8 Depreciation expense was $408.1 million, $386.3 million and $370.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. We had $10.3 million and $22.0 million of property, plant and equipment included in accounts payable as of December 31, 2021 and 2020, respectively. |
Transfers of Financial Assets
Transfers of Financial Assets | 12 Months Ended |
Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Transfers of Financial Assets | 9. Transfers of Financial Assets We have receivables purchase arrangements with unrelated third parties to liquidate portions of our trade accounts receivable balance. The receivables relate to products sold to customers and are short-term in nature. The factorings are treated as sales of our accounts receivable. Proceeds from the transfers reflect either the face value of the accounts receivable or the face value less factoring fees. We terminated our programs in the U.S. and Japan in the fourth quarter of 2020. We acted as the collection agent on behalf of the third party, but had no significant retained interests or servicing liabilities related to the accounts receivable sold. As of December 31, 2020, we had collected and remitted or repurchased all factored receivables at the time of the termination of those programs in 2020. In Europe, we sell to a third party and have no continuing involvement or significant risk with the factored accounts receivable. Funds received from the transfers are recorded as an increase to cash and a reduction of accounts receivable outstanding in the consolidated balance sheets. We report the cash flows attributable to the sale of the receivables to third parties in cash flows from operating activities in our consolidated statements of cash flows. Net expenses resulting from the sales of receivables are recognized in selling, general and administrative expense. Net expenses include any resulting gains or losses from the sales of receivables, credit insurance and factoring fees. For the years ended December 31, 2021, 2020 and 2019, we sold receivables having an aggregate face value of $153.4 million, $1,269.2 million and $2,989.8 million to third parties in exchange for cash proceeds of $152.3 million, $1,267.6 million and $2,987.6 million, respectively. Expenses recognized on these sales during the years ended December 31, 2021, 2020 and 2019 were not significant. For the years ended December 31, 2020 and 2019, under the U.S. and Japan programs, we collected $1,258.2 million and $2,749.6 million, respectively, from our customers and remitted that amount to the third party, and we effectively repurchased $139.5 million and $166.0 million, respectively, of previously sold accounts receivable from the third party due to the programs’ revolving nature. The initial collection of cash from customers and its remittance to the third party is reflected in net cash provided by/(used in) financing activities in our consolidated statements of cash flows. No amounts were unremitted to third parties as of December 31, 2021 and 2020. |
Fair Value Measurements of Asse
Fair Value Measurements of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | 10. Fair Value Measurements of Assets and Liabilities The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 52.4 $ — $ 52.4 $ — Cross-currency interest rate swaps 23.0 — 23.0 — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.1 — 1.1 — Total Assets $ 76.5 $ — $ 76.5 $ — Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.3 $ — $ 0.3 $ — Cross-currency interest rate swaps 3.4 — 3.4 — Interest rate swaps 10.5 — 10.5 — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.5 — 1.5 — Contingent payments related to acquisitions 35.6 — — 35.6 Total Liabilities $ 51.3 $ — $ 15.7 $ 35.6 39 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.5 $ — $ 0.5 $ — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 0.9 $ — 0.9 $ — Total Assets $ 1.4 $ — $ 1.4 $ — Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 48.5 $ — $ 48.5 $ — Cross-currency interest rate swaps 83.3 — 83.3 — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 3.2 — 3.2 — Contingent payments related to acquisitions 38.2 — — 38.2 Total Liabilities $ 173.2 $ — $ 135.0 $ 38.2 We value our foreign currency forward contracts using a market approach based on foreign currency exchange rates obtained from active markets, and we perform ongoing assessments of counterparty credit risk. We value our interest rate swaps using a market approach based on publicly available market yield curves, foreign currency exchange rates and the terms of our swaps, and we perform ongoing assessments of counterparty credit risk. Contingent payments related to acquisitions consist of sales-based payments, and are valued using discounted cash flow techniques. The fair value of sales-based payments is based upon probability-weighted future revenue estimates, and increases as revenue estimates increase. See Note 11 for additional information regarding contingent payments related to acquisitions. The following table provides a reconciliation of the beginning and ending balances of items related to continuing operations measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) (in millions): Level 3 - Liabilities Contingent payments related to acquisitions Beginning balance December 31, 2020 $ 38.2 Change in estimates 7.0 Settlements (9.5 ) Foreign currency impact (0.1 ) Ending balance December 31, 2021 $ 35.6 Changes in estimates for contingent payments related to acquisitions included in continuing operations are recognized in Acquisition, integration, divestiture and related expenses on our consolidated statements of earnings. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 11. Acquisitions In the fourth quarter of 2020, we completed the acquisitions of A&E Medical Corporation (“A&E Medical”), a sternal closure company, and Relign Corp. (“Relign”), an arthroscopy equipment company (collectively referred to as the “2020 acquisitions”). The 2020 acquisitions were completed primarily to expand our product offerings in the CMFT and sports medicine markets. The total aggregate cash consideration paid in 2020 related to the 2020 acquisitions was $235.7 million. An additional $145.0 million of guaranteed deferred payments were made in 2021 and were included in other current liabilities on the consolidated balance sheet as of December 31, 2020. We assigned a fair value of $23.0 million for potential additional payments as of the acquisition dates related to these acquisitions that are contingent on the respective acquired companies’ future product sales. The estimated fair value of the aggregate contingent payment liabilities was calculated based on the probability of achieving the specified sales growth and discounting to present value the estimated payments. The goodwill related to the 2020 acquisitions represents the excess of the consideration transferred over the fair value of the net assets acquired. The goodwill related to the 2020 acquisitions is generated from the operational synergies and cross-selling opportunities we expect to achieve from the technologies acquired. None of the goodwill related to these acquisitions is expected to be deductible for tax purposes. The following table summarizes the aggregate final estimates of fair value of the assets acquired and liabilities assumed related to the 2020 acquisitions (in millions): Current assets $ 30.5 Intangible assets subject to amortization: Technology 147.9 Trademarks and trade names 1.5 Customer relationships 92.7 Goodwill 172.6 Other assets 5.1 Total assets acquired 450.3 Current liabilities 4.6 Deferred income taxes 42.0 Total liabilities assumed 46.6 Net assets acquired $ 403.7 In the year ended December 31, 2021, we adjusted the preliminary fair values that were recognized as of December 31, 2020. The adjustments primarily related to the customer relationships intangible assets and the related deferred income tax liability as we refined our estimates by analyzing historical purchasing patterns of existing customers. The adjustment did not result in a significant change to intangible asset amortization expense recognized in the year ended December 31, 2021 that would have been recognized in the previous period if the adjustment were recognized as of the acquisition date. In addition, we revised our estimates related to net operating loss carryforwards based on updated tax calculations which reduced our deferred income tax liability and goodwill correspondingly. There were no other significant adjustments during the year ended December 31, 2021. The weighted average amortization period selected for technology, trademarks and trade names, and customer relationships were 13 years, 12 years, and 15 years, respectively. We have not included pro forma information and certain other information under GAAP for the 2020 acquisitions because they did not have a material impact on our financial position or results of operations. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 12. Goodwill and Other Intangible Assets The following table summarizes the changes in the carrying amount of goodwill related to continuing operations (in millions): Americas EMEA Asia Pacific Total Balance at January 1, 2020 Goodwill $ 7,884.6 $ 1,333.8 $ 553.4 $ 9,771.8 Accumulated impairment losses (7.7 ) (567.0 ) — (574.7 ) 7,876.9 766.8 553.4 9,197.1 Other acquisitions 129.8 10.9 8.9 149.6 Currency translation 74.7 18.2 13.5 106.4 Impairment — (470.0 ) — (470.0 ) Balance at December 31, 2020 Goodwill 8,089.1 1,362.9 575.8 10,027.8 Accumulated impairment losses (7.7 ) (1,037.0 ) — (1,044.7 ) 8,081.4 325.9 575.8 8,983.1 Purchase accounting adjustments 15.4 5.2 2.3 22.9 Other acquisitions 2.4 — — 2.4 Currency translation (61.1 ) (13.8 ) (14.1 ) (89.0 ) Balance at December 31, 2021 Goodwill 8,045.8 1,354.3 564.0 9,964.1 Accumulated impairment losses (7.7 ) (1,037.0 ) — (1,044.7 ) $ 8,038.1 $ 317.3 $ 564.0 $ 8,919.4 We perform our annual test of goodwill impairment in the fourth quarter of every year. In connection with the 2021 annual goodwill impairment test in the fourth quarter of 2021, we estimated the fair value of our Americas Orthopedics, Americas CMFT, EMEA, and Asia Pacific reporting units using the income and market approaches. In the annual 2021 test, all our reporting units exceeded their carrying values by more than 20 percent. As discussed further in Note 11, we purchased A&E Medical and Relign during the year ended December 31, 2020, resulting in additional goodwill in 2020 and subsequent fair value adjustments recognized in 2021 as well. As of March 31, 2020, we tested two of our reporting units for impairment due to: i) the significant adverse effect the COVID-19 The impairment charge of $470.0 million in our EMEA reporting unit was primarily due to the COVID-19 COVID-19 non-operational The second reporting unit we tested for impairment, Americas CMFT, had an estimated fair value that exceeded its carrying value by less than 5 percent. The Americas CMFT reporting unit’s estimated fair value was also adversely impacted by the COVID-19 We estimated the fair value of the EMEA and Americas CMFT reporting units based on income and market approaches. Fair value under the income approach was determined by discounting to present value the estimated future cash flows of the reporting unit. Fair value under the market approach utilized the guideline public company methodology, which uses valuation indicators from publicly-traded companies that are similar to our EMEA and Americas CMFT reporting units and considers differences between our reporting unit and the comparable companies. In estimating the future cash flows of the reporting units, we utilized a combination of market and company-specific inputs that a market participant would use in assessing the fair value of the reporting units. The primary market input was revenue growth rates. These rates were based upon historical trends and estimated future growth drivers such as an aging global population, obesity and more active lifestyles. The impact of declining revenues from the COVID-19 Under the guideline public company methodology, we took into consideration specific risk differences between our reporting unit and the comparable companies, such as recent financial performance, size risks and product portfolios, among other considerations. We will continue to monitor the fair value of our reporting units in our interim and annual reporting periods. If our estimated cash flows decrease, we may have to record further impairment charges in the future. Factors that could result in our cash flows being lower than our current estimates include: 1) additional recurrence of the COVID-19 The components of identifiable intangible assets related to continuing operations were as follows (in millions): Technology Intellectual Property Rights Trademarks and Trade Names Customer Relationships IPR&D Other Total As of December 31, 2021: Intangible assets subject to amortization: Gross carrying amount $ 2,930.7 $ 381.9 $ 522.1 $ 5,109.1 $ — $ 136.6 $ 9,080.4 Accumulated amortization (1,537.1 ) (230.2 ) (230.7 ) (1,939.5 ) — (79.3 ) (4,016.8 ) Intangible assets not subject to amortization: Gross carrying amount — — 457.0 — 13.0 — 470.0 Total identifiable intangible assets $ 1,393.6 $ 151.7 $ 748.4 $ 3,169.6 $ 13.0 $ 57.3 $ 5,533.6 As of December 31, 2020: Intangible assets subject to amortization: Gross carrying amount $ 2,992.0 $ 381.9 $ 527.1 $ 5,194.7 $ — $ 98.6 $ 9,194.3 Accumulated amortization (1,372.4 ) (210.3 ) (202.3 ) (1,670.8 ) — (66.3 ) (3,522.1 ) Intangible assets not subject to amortization: Gross carrying amount — — 462.7 — 29.5 — 492.2 Total identifiable intangible assets $ 1,619.6 $ 171.6 $ 787.5 $ 3,523.9 $ 29.5 $ 32.3 $ 6,164.4 We recognized IPR&D intangible asset impairment charges of $16.3 million, $33.0 million and $70.1 million in the years ended December 31, 2021, 2020 and 2019, respectively, in “Goodwill and intangible asset impairment” on our consolidated statements of earnings. These impairments were the result of terminated projects or delays and additional costs related to a project. Since these projects had a low probability of success or were not a priority, their terminations are not expected to have a significant impact on our future cash flows. Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2021 for the years ending December 31, 2022 through 2026 is (in millions): For the Years Ending December 31, 2022 $ 521.5 2023 515.2 2024 506.4 2025 459.9 2026 408.3 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | 13. Other Current Liabilities Other current liabilities consisted of the following (in millions): As of December 31, 2021 2020 Other current liabilities: License and service agreements $ 133.9 $ 147.1 Salaries, wages and benefits 317.6 282.4 Litigation and product liability 199.9 150.3 Deferred business combination payments — 145.0 Accrued liabilities 665.7 787.0 Total other current liabilities $ 1,317.1 $ 1,511.8 We have reclassified certain previously reported components of other current liabilities to conform to the current year presentation. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 14. Debt Our debt consisted of the following (in millions): As of December 31, 2021 2020 Current portion of long-term debt Floating Rate Notes due 2021 — 200.0 3.375% Senior Notes due 2021 — 300.0 3.150% Senior Notes due 2022 750.0 — 1.414% Euro Notes due 2022 568.6 — Japan Term Loan A 101.6 — Japan Term Loan B 184.9 — Total short-term debt $ 1,605.1 $ 500.0 Long-term debt 3.150% Senior Notes due 2022 — 750.0 3.700% Senior Notes due 2023 86.3 300.0 1.450% Senior Notes due 2024 850.0 — 3.550% Senior Notes due 2025 863.0 2,000.0 3.050% Senior Notes due 2026 600.0 600.0 3.550% Senior Notes due 2030 257.5 900.0 2.600% Senior Notes due 2031 750.0 — 4.250% Senior Notes due 2035 253.4 253.4 5.750% Senior Notes due 2039 317.8 317.8 4.450% Senior Notes due 2045 395.4 395.4 1.414% Euro Notes due 2022 — 611.8 2.425% Euro Notes due 2026 568.6 611.8 1.164% Euro Notes due 2027 568.6 611.8 Japan Term Loan A — 113.3 Japan Term Loan B — 206.3 Debt discount and issuance costs (36.4 ) (48.2 ) Adjustment related to interest rate swaps (10.5 ) 3.1 Total long-term debt $ 5,463.7 $ 7,626.5 At December 31, 2021, our total current and non-current In 2021, we redeemed the $200.0 million outstanding principal amount of our Floating Rate Notes due 2021 and the $300.0 million outstanding principal amount of our 3.375% Senior Notes due 2021, in each case at a redemption price equal to 100% of the aggregate principal amount of the senior notes being redeemed, plus accrued and unpaid interest. On November 24, 2021, we completed the offering of $850.0 million aggregate principal amount of our 1.450% Senior Notes due November 22, 2024 and $750.0 million aggregate principal amount of our 2.600% Senior Notes due November 24, 2031. Interest is payable on the 1.450% Senior Notes due 2024 on May 22 and November 22 of each year until maturity. Interest is payable on the 2.600% Senior Notes due 2031 on May 24 and November 24 of each year until maturity. We received net proceeds of $1,599.8 million. On November 15, 2021, we commenced cash tender offers to purchase certain outstanding senior notes. The proceeds from the senior notes offering described above, together with cash on hand, were used to pay for the senior notes purchased in the cash tender offers. The cash tender offers resulted in the following principal amount of the notes tendered: $213.7 million of the 3.700% Senior Notes due 2023, $1,137.0 million of the 3.550% Senior Notes due 2025, and $642.5 million of the 3.550% Senior Notes due 2030. As a result, we recorded a loss on the extinguishment of debt in the amount of $165.1 million in our consolidated statement of earnings for the year ended December 31, 2021. The components of this loss were the reacquisition price of $2,154.8 million minus the carrying value of the debt of $1,982.7 million (including debt discount and issuance costs) plus debt tender fees of $5.0 million minus a gain of $12.0 million on a reverse treasury lock that we entered into to offset any increases or decreases to the premium associated with the tender offer from the date we entered into the lock. On December 30, 2020, we redeemed $250.0 million of the $450.0 million outstanding principal amount of our Floating Rate Notes due 2021, with cash on hand. On March 20, 2020, we completed the offering of $600.0 million aggregate principal amount of our 3.050% Senior Notes due on January 15, 2026 and $900.0 million aggregate principal amount of our 3.550% Senior Notes due on March 20, 2030. Interest is payable on the 3.050% Senior Notes due 2026 on January 15 and July 15 of each year until maturity. Interest payable on the 3.550% Senior Notes is payable semi-annually, commencing on September 20, 2020 until maturity. The proceeds from this senior notes offering, together with cash on hand, were used to repay at maturity the $1.5 billion outstanding principal amount of our 2.700% Senior Notes due on April 1, 2020. On August 20, 2021, we entered into a new five-year revolving credit agreement (the “2021 Five-Year Credit Agreement”) and a new 364-day 364-Day The 2021 Five-Year Credit Agreement contains a five-year unsecured revolving facility of $1.5 billion (the “2021 Five-Year Revolving Facility”). The 2021 Five-Year Credit Agreement replaces the previous revolving credit agreement (the “2019 Credit Agreement”), which contained a five-year unsecured multicurrency revolving facility of $1.5 billion (the “2019 Multicurrency Revolving Facility”). There were no borrowings outstanding under the 2019 Credit Agreement at the time it was terminated. The 2021 Five-Year Credit Agreement will mature on August 20, 2026, with two one-year Borrowings under the 2021 Five-Year Credit Agreement bear interest at floating rates, based upon either LIBOR for the applicable interest period or at an alternate base rate, in each case, plus an applicable margin determined by reference to our senior unsecured long-term debt credit rating. We pay a facility fee on the aggregate amount of the 2021 Five-Year Revolving Facility at a rate determined by reference to our senior unsecured long-term debt credit rating. The 2021 Five-Year Credit Agreement contains customary affirmative and negative covenants and events of default for unsecured financing arrangements, including, among other things, limitations on consolidations, mergers, and sales of assets. The Five-Year Credit Agreement also requires us to maintain a consolidated indebtedness to consolidated EBITDA ratio of no greater than 4.5 to 1.0 as of the last day of any period of four consecutive fiscal quarters (with such ratio subject to increase to 5.0 to 1.0 for a period of time in connection with a qualified material acquisition and certain other restrictions). We were in compliance with all covenants under the 2021 Five-Year Credit Agreement as of December 31, 2021. The 2021 364-Day 364-Day 364-Day 364-day The 2021 364-Day 364-Day 364-Day 364-Day 364-Day 364-Day 364-Day The estimated fair value of our senior notes as of December 31, 2021, based on quoted prices for the specific securities from transactions in over-the-counter We entered into interest rate swap agreements which we designated as fair value hedges of underlying fixed-rate obligations on our senior notes due 2019 and 2021. These fair value hedges were settled in 2016. In 2018 and 2019, we entered into cross-currency interest rate swaps that we designated as net investment hedges. The excluded component of these net investment hedges is recorded in interest expense, net. See Note 1 6 At December 31, 2021 and 2020, the weighted average interest rate for our borrowings was 2.8 percent and 3.0 percent, respectively. We paid $219.0 million, $193.1 million, and $226.9 million in interest during 2021, 2020, and 2019, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 15. Accumulated Other Comprehensive Income AOCI refers to certain gains and losses that under GAAP are included in comprehensive income but are excluded from net earnings as these amounts are initially recorded as an adjustment to stockholders’ equity. Amounts in AOCI may be reclassified to net earnings upon the occurrence of certain events. Our AOCI is comprised of foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions on our defined benefit plans. Foreign currency translation adjustments are reclassified to net earnings upon sale or upon a complete or substantially complete liquidation of an investment in a foreign entity. Unrealized gains and losses on cash flow hedges are reclassified to net earnings when the hedged item affects net earnings. Amounts related to defined benefit plans that are in AOCI are reclassified over the service periods of employees in the plan. See Note 1 7 The following table shows the changes in the components of AOCI, net of tax (in millions): Foreign Cash Defined Currency Flow Benefit Total Translation Hedges Plan Items AOCI Balance December 31, 2020 $ (7.2 ) $ (55.6 ) $ (235.0 ) $ (297.8 ) AOCI before reclassifications (99.9 ) 86.4 73.5 60.0 Reclassifications to statements of earnings — 1.3 4.9 6.2 Balance December 31, 2021 $ (107.1 ) $ 32.1 $ (156.6 ) $ (231.6 ) The following table shows the reclassification adjustments from AOCI (in millions): Amount of Gain / (Loss) Reclassified from AOCI For the Years Ended December 31, Location on Component of AOCI 2021 2020 2019 Statements of Earnings Cash flow hedges Foreign exchange forward contracts $ (0.8 ) $ 45.4 $ 38.4 Cost of products sold Interest rate swaps — — 2.8 Interest expense, net Forward starting interest rate swaps (0.6 ) (0.6 ) (0.6 ) Interest expense, net (1.4 ) 44.8 40.6 Total before tax (0.1 ) 6.3 5.5 Provision (benefit) for income taxes $ (1.3 ) $ 38.5 $ 35.1 Net of tax Defined benefit plans Prior service cost $ 4.0 $ 3.9 $ 7.3 Other income (expense), net Curtailment gain — — 7.2 Other income (expense), net Unrecognized actuarial loss (11.1 ) (8.5 ) (21.8 ) Other income (expense), net (7.1 ) (4.6 ) (7.3 ) Total before tax (2.2 ) (1.7 ) (2.3 ) Provision (benefit) for income taxes $ (4.9 ) $ (2.9 ) $ (5.0 ) Net of tax Total reclassifications $ (6.2 ) $ 35.6 $ 30.1 Net of tax The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions): For the Years Ended December 31, Before Tax Tax Net of Tax 2021 2020 2019 2021 2020 2019 2021 2020 2019 Foreign currency cumulative translation adjustments $ (54.8 ) $ (43.4 ) $ 12.1 $ 45.1 $ (69.0 ) $ 13.6 $ (99.9 ) $ 25.6 $ (1.5 ) Unrealized cash flow hedge gains (losses) 102.5 (42.7 ) 34.6 16.1 (9.2 ) 4.0 86.4 (33.5 ) 30.6 Reclassification adjustments on cash flow hedges 1.4 (44.8 ) (40.6 ) 0.1 (6.3 ) (5.5 ) 1.3 (38.5 ) (35.1 ) Adjustments to prior service cost and unrecognized actuarial assumptions 96.9 (20.9 ) (56.4 ) 18.5 (11.4 ) (7.9 ) 78.4 (9.5 ) (48.5 ) Total Other Comprehensive Income (Loss) $ 146.0 $ (151.8 ) $ (50.3 ) $ 79.8 $ (95.9 ) $ 4.2 $ 66.2 $ (55.9 ) $ (54.5 ) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 16. Derivative Instruments and Hedging Activities We are exposed to certain market risks relating to our ongoing business operations, including foreign currency exchange rate risk, commodity price risk, interest rate risk and credit risk. We manage our exposure to these and other market risks through regular operating and financing activities. Currently, the only risks that we manage through the use of derivative instruments are interest rate risk and foreign currency exchange rate risk. Interest Rate Risk Derivatives Designated as Fair Value Hedges We currently use fixed-to-variable . In June 2021, we entered into $1 billion of fixed-to-variable In prior years, we entered into various fixed-to-variable Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities Balance Sheet Line Item December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Current portion of long-term debt $ — $ 303.0 $ — $ 3.1 Long-term debt 985.2 — (10.5 ) — Derivatives Designated as Cash Flow Hedges In 2014, we entered into forward starting interest rate swaps that were designated as cash flow hedges of our thirty-year tranche of senior notes (the 4.450% Senior Notes due 2045) we expected to issue in 2015. The forward starting interest rate swaps mitigated the risk of changes in interest rates prior to the completion of the notes offering. The interest rate swaps were settled, and the remaining loss to be recognized at December 31, 2021 was $25.3 million, which will be recognized using the effective interest rate method over the remaining maturity period of the hedged notes. Foreign Currency Exchange Rate Risk We operate on a global basis and are exposed to the risk that our financial condition, results of operations and cash flows could be adversely affected by changes in foreign currency exchange rates. To reduce the potential effects of foreign currency exchange rate movements on net earnings, we enter into derivative financial instruments in the form of foreign currency exchange forward contracts with major financial institutions. We also designated our Euro notes and other foreign currency exchange forward contracts as net investment hedges of investments in foreign subsidiaries. We are primarily exposed to foreign currency exchange rate risk with respect to transactions and net assets denominated in Euros, Swiss Francs, Japanese Yen, British Pounds, Canadian Dollars, Australian Dollars, Korean Won, Swedish Krona, Czech Koruna, Thai Baht, Taiwan Dollars, South African Rand, Russian Rubles, Indian Rupees, Turkish Lira, Polish Zloty, Danish Krone, and Norwegian Krone. We do not use derivative financial instruments for trading or speculative purposes. Derivatives Designated as Net Investment Hedges We are exposed to the impact of foreign exchange rate fluctuations in the investments in our wholly-owned foreign subsidiaries that are denominated in currencies other than the U.S. Dollar. In order to mitigate the volatility in foreign exchange rates, we issued Euro Notes in December 2016 and November 2019, as discussed in Note 1 4 At December 31, 2021, we had receive-fixed-rate, pay-fixed-rate pay-fixed-rate Derivatives Designated as Cash Flow Hedges Our revenues are generated in various currencies throughout the world. However, a significant amount of our inventory is produced in U.S. Dollars. Therefore, movements in foreign currency exchange rates may have different proportional effects on our revenues compared to our cost of products sold. To minimize the effects of foreign currency exchange rate movements on cash flows, we hedge intercompany sales of inventory expected to occur within the next 30 months with foreign currency exchange forward contracts. We designate these derivative instruments as cash flow hedges. We perform quarterly assessments of hedge effectiveness by verifying and documenting the critical terms of the hedge instrument and confirming that forecasted transactions have not changed significantly. We also assess on a quarterly basis whether there have been adverse developments regarding the risk of a counterparty default. For derivatives which qualify as hedges of future cash flows, the gains and losses are temporarily recorded in AOCI and then recognized in cost of products sold when the hedged item affects net earnings. On our consolidated statements of cash flows, the settlements of these cash flow hedges are recognized in operating cash flows. For foreign currency exchange forward contracts outstanding at December 31, 2021, we had obligations to purchase U.S. Dollars and sell Euros, Japanese Yen, British Pounds, Canadian Dollars, Australian Dollars, Korean Won, Swedish Krona, Czech Koruna, Thai Baht, Taiwan Dollars, South African Rand, Russian Rubles, Indian Rupees, Polish Zloty, Danish Krone, and Norwegian Krone and obligations to purchase Swiss Francs and sell U.S. Dollars. These derivatives mature at dates ranging from January 2022 through June 2024. As of December 31, 2021, the notional amounts of outstanding forward contracts entered into with third parties to purchase U.S. Dollars were $1,295.2 million. As of December 31, 2021, the notional amounts of outstanding forward contracts entered into with third parties to purchase Swiss Francs were $347.0 million. Derivatives Not Designated as Hedging Instruments We enter into foreign currency forward exchange contracts with terms of one to three months to manage currency exposures for monetary assets and liabilities denominated in a currency other than an entity’s functional currency. Any foreign currency re-measurement As discussed in Note 1 4 Income Statement Presentation Derivatives Designated as Cash Flow Hedges Derivative instruments designated as cash flow hedges had the following effects, before taxes, on AOCI and net earnings on our consolidated statements of earnings, consolidated statements of comprehensive income (loss) and consolidated balance sheets (in millions): Amount of Gain / (Loss) Amount of Gain / (Loss) Recognized in AOCI Location on Reclassified from AOCI Years Ended December 31, Statement of Years Ended December 31, Derivative Instrument 2021 2020 2019 Earnings 2021 2020 2019 Foreign exchange forward contracts $ 102.5 $ (42.7 ) $ 34.6 Cost of products sold $ (0.8 ) $ 45.4 $ 38.4 Interest rate swaps — — — Interest expense, net — — 2.8 Forward starting interest rate swaps — — — Interest expense, net (0.6 ) (0.6 ) (0.6 ) $ 102.5 $ (42.7 ) $ 34.6 $ (1.4 ) $ 44.8 $ 40.6 The fair value of outstanding derivative instruments designated as cash flow hedges and recorded on the consolidated balance sheet at December 31, 2021, together with settled derivatives where the hedged item has not yet affected earnings, was a net unrealized gain of $33.8 million, or $32.1 million after taxes, which is deferred in AOCI. A gain of $27.9 million, or $23.6 million after taxes, is expected to be reclassified to earnings in cost of products sold and a loss of $0.7 million, or $0.5 million after taxes, is expected to be reclassified to earnings in interest expense, net over the next twelve months. The following table presents the effects of fair value, cash flow and net investment hedge accounting on our consolidated statements of earnings (in millions): Location and Amount of Gain/(Loss) Recognized in Income on Fair Value, Cash Flow and Net Investment Hedging Relationships Years Ended December 31, 2021 2020 2019 Cost of Interest Cost of Interest Cost of Interest Products Expense, Products Expense, Products Expense, Sold Net Sold Net Sold Net Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded $ 1,960.4 $ (208.4 ) $ 1,824.3 $ (212.1 ) $ 1,943.7 $ (227.0 ) The effects of fair value, cash flow and net investment hedging: Gain on fair value hedging relationships Discontinued interest rate swaps — 3.1 — 3.3 — 8.2 Interest rate swaps — 6.4 — — — — Gain (loss) on cash flow hedging relationships Foreign exchange forward contracts (0.8 ) — 45.4 — 38.4 — Interest rate swaps — — — — — 2.8 Forward starting interest rate swaps — (0.6 ) — (0.6 ) — (0.6 ) Gain on net investment hedging relationships Cross-currency interest rate swaps — 37.5 — 53.5 — 52.2 Derivatives Not Designated as Hedging Instruments The following gains/(losses) from these derivative instruments were recognized on our consolidated statements of earnings (in millions): Location on Years Ended December 31, Derivative Instrument Statements of Earnings 2021 2020 2019 Foreign exchange forward contracts Other income (expense), net $ (1.8 ) $ 10.6 $ (11.0 ) Reverse treasury lock Other income 12.0 — — These gains/(losses) do not reflect losses of $3.7 million, $22.8 million and $3.4 million in 2021, 2020 and 2019, respectively, recognized in other income (expense), net as a result of foreign currency re-measurement Balance Sheet Presentation As of December 31, 2021 and 2020, all derivative instruments are recorded at fair value on our consolidated balance sheets. On our consolidated balance sheets, we recognize individual forward contracts with the same counterparty on a net asset/liability basis if we have a master netting agreement with the counterparty. Under these master netting agreements, we are able to settle derivative instrument assets and liabilities with the same counterparty in a single transaction, instead of settling each derivative instrument separately. We have master netting agreements with all of our counterparties. The fair value of derivative instruments on a gross basis is as follows (in millions): As of December 31, 2021 As of December 31, 2020 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Asset Derivatives Designated as Hedges Foreign exchange forward contracts Other current assets $ 42.3 Other current assets $ 12.2 Cross-currency interest rate swaps Other current assets 16.3 Other current assets — Foreign exchange forward contracts Other assets 20.9 Other assets 3.7 Cross-currency interest rate swaps Other assets 6.7 Other assets — Total asset derivatives $ 86.2 $ 15.9 Asset Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current assets $ 1.4 Other current assets $ 1.5 Liability Derivatives Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 9.6 Other current liabilities $ 37.4 Cross-currency interest rate swaps Other current liabilities 0.1 Other current liabilities 55.0 Foreign exchange forward contracts Other long-term liabilities 1.5 Other long-term liabilities 26.5 Cross-currency interest rate swaps Other long-term liabilities 3.3 Other long-term liabilities 28.3 Interest rate swaps Other long-term liabilities 10.5 Other long-term liabilities — Total liability derivatives $ 25.0 $ 147.2 Liability Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 1.8 Other current liabilities $ 3.8 The table below presents the effects of our master netting agreements on our consolidated balance sheets (in millions): As of December 31, 2021 As of December 31, 2020 Description Location Gross Amount Offset Net Amount in Balance Sheet Gross Amount Offset Net Amount in Balance Sheet Asset Derivatives Cash flow hedges Other current assets $ 42.3 $ 9.5 $ 32.8 $ 12.2 $ 11.7 $ 0.5 Cash flow hedges Other assets 20.9 1.3 19.6 3.7 3.7 — Derivatives not designated as hedges Other current assets 1.4 0.3 1.1 1.5 0.6 0.9 Liability Derivatives Cash flow hedges Other current liabilities 9.6 9.5 0.1 37.4 11.7 25.7 Cash flow hedges Other long-term liabilities 1.5 1.3 0.2 26.5 3.7 22.8 Derivatives not designated as hedges Other current liabilities 1.8 0.3 1.5 3.8 0.6 3.2 The following net investment hedge gains (losses) were recognized on our consolidated statements of comprehensive income (loss) (in millions): Amount of Gain / (Loss) Recognized in AOCI Years Ended December 31, Derivative Instrument 2021 2020 2019 Euro Notes $ 129.6 $ (151.5 ) $ 10.7 Cross-currency interest rate swaps 103.0 (143.8 ) 47.9 $ 232.6 $ (295.3 ) $ 58.6 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | 17. Retirement Benefit Plans We have defined benefit pension plans covering certain U.S. and Puerto Rico employees. Plan benefits are primarily based on years of credited service and the participant’s average eligible compensation. The U.S. and Puerto Rico plans are frozen; meaning there are no new participants that can join the plan and participants in the plan do not accrue additional years of service or compensation. In addition to the U.S. and Puerto Rico defined benefit pension plans, we sponsor various foreign pension arrangements, including retirement and termination benefit plans required by local law or coordinated with government sponsored plans. We use a December 31 measurement date for our benefit plans. Defined Benefit Plans The components of net pension expense for our defined benefit retirement plans were as follows (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Service cost $ 0.9 $ 0.7 $ 7.1 $ 24.7 $ 24.7 $ 19.0 Interest cost 10.5 13.9 16.2 4.9 5.4 9.0 Expected return on plan assets (29.8 ) (32.9 ) (32.4 ) (15.6 ) (13.3 ) (13.4 ) Curtailment gain — — (7.2 ) — — — Settlements 6.4 0.5 0.8 0.5 (0.5 ) — Amortization of prior service cost 0.3 0.3 (3.4 ) (4.3 ) (4.2 ) (3.9 ) Amortization of unrecognized actuarial loss 8.6 7.2 19.3 2.5 1.3 2.5 Net periodic benefit (income) expense $ (3.1 ) $ (10.3 ) $ 0.4 $ 12.7 $ 13.4 $ 13.2 In our consolidated statements of earnings, service cost is reported in the same location as other compensation costs arising from services rendered by the pertinent employees while the other components of net pension expense are reported in other income (expense), net. The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.04 % 3.40 % 4.38 % 0.63 % 0.73 % 1.44 % Rate of compensation increase — — 3.29 % 2.39 % 2.28 % 2.50 % Expected long-term rate of return on plan assets 6.75 % 7.75 % 7.75 % 2.09 % 2.17 % 2.14 % The expected long-term rate of return on plan assets is based on the historical and estimated future rates of return on the different asset classes held in the plans. The expected long-term rate of return is the weighted average of the target asset allocation of each individual asset class. We believe that historical asset results approximate expected market returns applicable to the funding of a long-term benefit obligation. Discount rates were determined for each of our defined benefit retirement plans at their measurement date to reflect the yield of a portfolio of high quality bonds matched against the timing and amounts of projected future benefit payments. Changes in projected benefit obligations and plan assets were (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation - beginning of year $ 516.9 $ 472.0 $ 819.3 $ 740.4 Service cost 0.9 0.7 24.7 24.7 Interest cost 10.5 13.9 4.9 5.4 Plan amendments — — — 0.2 Employee contributions — — 23.4 22.1 Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Actuarial loss 3.0 55.6 6.1 12.5 Expenses paid — — (0.2 ) (0.3 ) Settlement (14.9 ) (1.3 ) (3.0 ) (4.5 ) Translation (gain) loss — — (25.6 ) 58.6 Projected benefit obligation - end of year $ 503.1 $ 516.9 $ 807.9 $ 819.3 For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Plan assets at fair market value - beginning of year $ 474.1 $ 444.9 $ 756.7 $ 665.2 Actual return on plan assets 50.5 51.4 86.6 40.0 Employer contributions 3.1 3.1 22.4 21.2 Employee contributions — — 23.4 22.1 Settlements (14.9 ) (1.3 ) (3.0 ) (4.5 ) Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Expenses paid — — (0.2 ) (0.3 ) Translation (loss) gain — — (23.0 ) 52.8 Plan assets at fair market value - end of year $ 499.5 $ 474.1 $ 821.2 $ 756.7 Funded status $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Amounts recognized in consolidated balance sheet: Prepaid pension $ 2.7 $ — $ 54.9 $ 20.4 Short-term accrued benefit liability (0.1 ) (0.1 ) (1.3 ) (1.3 ) Long-term accrued benefit liability (6.2 ) (42.7 ) (40.3 ) (81.7 ) Net amount recognized $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.70 % 2.70 % 3.40 % 0.73 % 0.61 % 0.74 % Rate of compensation increase — — 3.29 % 2.48 % 2.36 % 2.45 % Plans with projected benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation $ 468.5 $ 516.9 $ 38.8 $ 778.4 Plan assets at fair market value 462.2 474.1 8.1 709.5 Total accumulated benefit obligations and plans with accumulated benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Total accumulated benefit obligations $ 503.1 $ 516.9 $ 783.0 $ 801.3 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 468.5 516.9 36.4 560.9 Plan assets at fair market value 462.2 474.1 8.1 508.6 The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions): For the Years Ending December 31, U.S. and Puerto Rico Foreign 2022 $ 24.6 $ 32.8 2023 25.4 34.8 2024 25.7 33.6 2025 26.3 35.0 2026 27.0 34.7 2027-2031 133.1 175.7 The U.S. and Puerto Rico defined benefit retirement plans’ overall investment strategy is to balance total returns by emphasizing long-term growth of capital while mitigating risk. We have established target ranges of assets held by the plans of 30 to 65 percent for equity securities, 30 to 50 percent for debt securities and 0 to 15 percent in non-traditional time-to-time For the U.S. and Puerto Rico plans, we maintain an investment policy statement that guides the investment allocation in the plans. The investment policy statement describes the target asset allocation positions described above. Our benefits committee, along with our investment advisor, monitor compliance with and administer the investment policy statement and the plans’ assets and oversee the general investment strategy and objectives of the plans. Our benefits committee generally meets quarterly to review performance. The investment strategies of foreign based plans vary according to the plan provisions and local laws. The majority of the assets in foreign based plans are located in Switzerland-based plans. These assets are held in trusts and are commingled with the assets of other Swiss companies with representatives of all the companies making the investment decisions. The overall strategy is to maximize total returns while avoiding risk. The trustees of the assets have established target ranges of assets held by the plans of 30 to 50 percent in debt securities, 20 to 37 percent in equity securities, 15 to 24 percent in real estate, 3 to 15 percent in cash funds and 0 to 12 percent in other funds. The fair value of our U.S. and Puerto Rico pension plan assets by asset category was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3.8 $ 3.8 $ — $ — Equity securities 342.1 — 342.1 — Intermediate fixed income securities 153.6 — 153.6 — Total $ 499.5 $ 3.8 $ 495.7 $ — As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 7.3 $ 7.3 $ — $ — Equity securities 304.1 — 304.1 — Intermediate fixed income securities 162.7 — 162.7 — Total $ 474.1 $ 7.3 $ 466.8 $ — The fair value of our foreign pension plan assets was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 56.6 $ 56.6 $ — $ — Equity securities 185.5 149.6 35.9 — Fixed income securities 195.5 — 195.5 — Other types of investments 223.0 — 223.0 — Real estate 160.6 — — 160.6 Total $ 821.2 $ 206.2 $ 454.4 $ 160.6 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 42.7 $ 42.7 $ — $ — Equity securities 163.9 126.8 37.1 — Fixed income securities 262.5 — 262.5 — Other types of investments 142.3 — 142.3 — Real estate 145.3 — — 145.3 Total $ 756.7 $ 169.5 $ 441.9 $ 145.3 As of December 31, 2021 and 2020, our defined benefit pension plans’ assets did not hold any direct investment in Zimmer Biomet Holdings common stock. Equity securities are valued using a market approach, based on quoted prices for the specific security from transactions in active exchange markets (Level 1), or in some cases where we are invested in mutual or collective funds, based upon the net asset value per unit of the fund which is determined from quoted market prices of the underlying securities in the fund’s portfolio (Level 2). Fixed income securities are valued using a market approach, based upon quoted prices for the specific security or from institutional bid evaluations. Real estate is valued by discounting to present value the cash flows expected to be generated by the specific properties. The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions): December 31, 2021 Beginning Balance $ 145.3 Gain on assets sold 0.7 Change in fair value of assets 7.0 Net purchases and sales 11.9 Translation gain (4.3 ) Ending Balance $ 160.6 Contributions to the U.S. and Puerto Rico defined benefit retirement plans are estimated to be $1.8 million in 2022. Contributions to foreign defined benefit plans are estimated to be $19.1 million in 2022. We do not expect the assets in any of our plans to be returned to us in the next year. Defined Contribution Plans We also sponsor defined contribution plans for substantially all of the U.S. and Puerto Rico employees and certain employees in other countries. The benefits offered under these plans are reflective of local customs and practices in the countries concerned. We expensed $46.3 million, $43.5 million and $46.0 million related to these plans for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 18. Income Taxes The components of earnings (loss) from continuing operations before income taxes consisted of the following (in millions): For the Years Ended December 31, 2021 2020 2019 United States operations $ (118.8 ) $ (387.6 ) $ (126.1 ) Foreign operations 617.8 282.4 1,006.2 Total $ 499.0 $ (105.2 ) $ 880.1 The provision/(benefit) for income taxes and the income taxes paid consisted of the following (in millions): Current: Federal $ 44.3 $ (58.4 ) $ 86.4 State 7.2 2.7 9.0 Foreign 104.1 (79.7 ) 254.4 155.6 (135.4 ) 349.8 Deferred: Federal (83.5 ) (12.7 ) (119.2 ) State (19.4 ) (10.0 ) (4.2 ) Foreign 0.8 62.1 (464.4 ) (102.1 ) 39.4 (587.8 ) Provision (benefit) for income taxes $ 53.5 $ (96.0 ) $ (238.0 ) Net income taxes paid $ 258.4 $ 142.0 $ 183.6 A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows: For the Years Ended December 31, 2021 2020 2019 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal deduction (2.8 ) 6.6 0.7 Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits (10.3 ) 37.4 (11.6 ) Change in valuation allowance (0.5 ) 3.8 1.6 Non-deductible 1.3 (4.3 ) 0.3 Goodwill impairment — (92.0 ) — Tax rate change 0.1 5.5 0.7 Tax impact of certain significant transactions 1.1 — — Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction 0.4 14.2 (4.4 ) R&D tax credit (2.2 ) 4.8 (1.1 ) Share-based compensation (0.2 ) (1.0 ) (0.2 ) Net uncertain tax positions, including interest and penalties 2.9 56.9 1.8 U.S. tax reform — — 0.1 Switzerland tax reform and certain restructuring transactions — 40.9 (35.8 ) Other (0.1 ) (2.5 ) (0.1 ) Effective income tax rate 10.7 % 91.3 % (27.0 )% Our operations in Puerto Rico benefit from a tax incentive grant which expires in fiscal year 2026. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Valuation allowances are recorded to reduce deferred income tax assets when it is more likely than not that an income tax benefit will not be realized. We reclassified certain prior period amounts to conform to the current period presentation. The components of deferred taxes consisted of the following (in millions): As of December 31, 2021 2020 Deferred tax assets: Inventory $ 204.2 $ 226.4 Net operating loss carryover 454.0 494.6 Tax credit carryover 79.7 75.7 Capital loss carryover 8.6 9.0 Product liability and litigation 44.4 53.0 Accrued liabilities 101.7 82.7 Share-based compensation 30.2 28.7 Accounts receivable 14.8 15.0 Foreign currency items — 57.1 Other 56.9 19.1 Total deferred tax assets 994.5 1,061.3 Less: Valuation allowances (460.1 ) (527.3 ) Total deferred tax assets after valuation allowances 534.4 534.0 Deferred tax liabilities: Fixed assets $ 117.1 $ 102.0 Intangible assets 509.7 578.9 Foreign currency items 3.5 — Other 34.0 28.1 Total deferred tax liabilities 664.3 709.0 Total net deferred income taxes $ (129.9 ) $ (175.0 ) We have reclassified certain previously reported components of deferred taxes to conform to the current year presentation. At December 31, 2021, the following net operating loss, tax credit carryovers, and capital loss carryovers are available to reduce future federal, state and foreign taxable earnings (in millions): Expiration Period: Net Tax credit Capital 1-5 $ 2.4 $ 15.1 $ 1.7 6-10 52.4 55.5 — 11+ years 276.9 1.6 — Indefinite 122.3 7.5 6.9 454.0 79.7 8.6 Valuation allowances $ 391.6 $ 46.7 $ 8.6 The remaining valuation allowances booked against deferred tax assets of $13.2 million related primarily to accrued liabilities and intangible assets that management believes, more likely than not, will not be realized. We intend to repatriate at least $5.0 to $6.0 billion of unremitted earnings, of which the additional tax related to remitting earnings is deemed immaterial as a portion of these earnings has already been taxed as toll tax or GILTI and is not subject to further U.S. federal tax. Portions of the additional tax would also be offset by allowable foreign tax credits. Of the $5.0 to $6.0 billion amount, we have an estimated $4.6 billion of cash and intercompany notes available to repatriate and the remainder is invested in the operations of our foreign entities. The remaining amounts earned overseas are expected to be permanently reinvested outside of the United States. If the Company decides at a later date to repatriate these earnings to the U.S., the Company would be required to provide for the net tax effects on these amounts. The Company estimates that the total tax effect of this repatriation would not be significant under current enacted tax laws and regulations and at current currency exchange rates. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions): For the Years Ended December 31, 2021 2020 2019 Balance at January 1 $ 619.4 $ 741.8 $ 685.2 Increases related to prior periods 11.5 75.3 24.7 Decreases related to prior periods (12.7 ) (158.3 ) (35.6 ) Increases related to current period 7.3 3.4 133.2 Decreases related to settlements with taxing authorities (65.1 ) (14.6 ) (60.2 ) Decreases related to lapse of statute of limitations (1.8 ) (28.2 ) (5.5 ) Balance at December 31 $ 558.6 $ 619.4 $ 741.8 Amounts impacting effective tax rate, if recognized balance at December 31 $ 426.4 $ 473.9 $ 599.2 We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. During 2021, we accrued interest and penalties of $8.9 million, and as of December 31, 2021, had a recognized liability for interest and penalties of $116.2 million, which does not include any increase related to business combinations. During 2020, we released interest and penalties of $1.7 million, and as of December 31, 2020, had a recognized liability for interest and penalties of $107.4 million, which does not include any increase related to business combinations. During 2019, we accrued interest and penalties of $15.9 million, and as of December 31, 2019, had a recognized liability for interest and penalties of $109.4 million, which does not include any increase related to business combinations. We operate on a global basis and are subject to numerous and complex tax laws and regulations. Additionally, tax laws have and continue to undergo rapid changes in both application and interpretation by various countries, including state aid interpretations and the Organization for Economic Cooperation and Development led initiatives. Our income tax filings are subject to examinations by taxing authorities throughout the world. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Although ultimate timing is uncertain, the net amount of tax liability for unrecognized tax benefits may change within the next twelve months due to changes in audit status, expiration of statutes of limitations, settlements of tax assessments and other events. Management’s best estimate of such change is within the range of a $140 million decrease to a $20 million increase. We are under continuous audit by the Internal Revenue Service (“IRS”) and other taxing authorities. During the course of these audits, we receive proposed adjustments from taxing authorities that may be material. Therefore, there is a possibility that an adverse outcome in these audits could have a material effect on our results of operations and financial condition. Our U.S. Federal income tax returns have been audited through 2015 and are currently under audit for years 2016-2019. In October 2020, we reached agreement with the IRS for tax years 2006-2012 related to the reallocation of profits between the U.S. and Puerto Rico as well as other miscellaneous adjustments. The IRS has proposed adjustments for tax years 2010-2012, primarily related to reallocating profits between certain of our U.S. and foreign subsidiaries, which remain unsettled. We have disputed these adjustments and intend to continue to vigorously defend our positions as we pursue resolution through the administrative process with the IRS Independent Office of Appeals. The IRS has proposed adjustments for tax years 2013-2015 relating to transfer pricing involving our cost sharing agreement between the U.S. and Switzerland affiliated companies and reallocating profits between certain of our U.S. and foreign subsidiaries. This includes a proposed increase to our U.S. Federal taxable income, which would result in additional tax expense related to 2013 of approximately $370 million, subject to interest and penalties related to our cost sharing agreement. We strongly believe that the position of the IRS, with regard to this matter, is inconsistent with the applicable U.S. Treasury regulations governing our cost sharing agreement. We do not expect changes to our reserves relative to these matters within the next twelve months. We intend to vigorously contest the adjustment, and we will pursue all available administrative and, if necessary, judicial remedies. If we pursue judicial remedies in the U.S. Tax Court for years 2013-2015, a number of years will likely elapse before such matters are finally resolved. No payment of any amount related to this matter is required to be made, if at all, until all applicable proceedings have been completed. State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state impact of any federal changes generally remains subject to examination by various states for a period of up to one year after formal notification to the states. We have various state income tax return positions in the process of examination, administrative appeals or litigation. In other major jurisdictions, open years are generally 2014 or later. A public referendum held in Switzerland passed the Federal Act on Tax Reform and AHV Financing (“TRAF”), effective January 1, 2020. The TRAF provides transitional relief measures for companies that are losing the tax benefit of a ruling, including a “step-up” |
Capital Stock and Earnings per
Capital Stock and Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Capital Stock and Earnings per Share | 19. Capital Stock and Earnings per Share We are authorized to issue 250.0 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2021. The numerator for both basic and diluted earnings per share is net earnings available to common stockholders. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards. The following is a reconciliation of weighted average shares for the basic and diluted share computations (in millions): For the Years Ended December 31, 2021 2020 2019 Weighted average shares outstanding for basic net earnings per share 208.6 207.0 205.1 Effect of dilutive stock options and other equity awards 1.8 — 1.6 Weighted average shares outstanding for diluted net earnings per share 210.4 207.0 206.7 For the years ended December 31, 2021 and 2019, an average of 1.3 million options and 0.9 million options, respectively, to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock. Since we incurred a net loss in the year ended December 31, 2020, no dilutive stock options or other equity awards were included as diluted shares. |
Segment Data
Segment Data | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Data | 20. Segment Data We design, manufacture and market orthopedic reconstructive products; sports medicine, biologics, extremities and trauma products; craniomaxillofacial and thoracic products (“CMFT”); and related surgical products. Our chief operating decision maker (“CODM”) allocates resources to achieve our operating profit goals through three operating segments. These operating segments, which also constitute our reportable segments, are Americas; EMEA; and Asia Pacific. Our CODM evaluates performance based upon segment operating profit exclusive of operating expenses pertaining to certain inventory and manufacturing-related charges, intangible asset amortization, goodwill and intangible asset impairment, restructuring and other cost reduction initiatives, quality remediation, acquisition, integration, divestiture and related, litigation, litigation settlement gain, certain European Union Medical Device Regulation expenses, other charges and corporate functions. Corporate functions include corporate legal, finance, information technology, human resources and other corporate departments as well as stock-based compensation and certain operations, distribution, quality assurance and regulatory expenses. Intercompany transactions have been eliminated from segment operating profit. Our Americas operating segment is comprised principally of the U.S. and includes other North, Central and South American markets. This segment also includes research, development engineering, medical education, and brand management for our orthopedic product category headquarter locations. Our EMEA operating segment is comprised principally of Europe and includes the Middle East and African markets. Our Asia Pacific operating segment is comprised principally of Japan, China and Australia and includes other Asian and Pacific markets. The EMEA and Asia Pacific operating segments include the commercial operations as well as regional headquarter expenses to operate in those markets. Since the Americas segment includes additional costs related to centralized product category headquarter expenses, profitability metrics in this operating segment are not comparable to the EMEA and Asia Pacific operating segments. Our CODM does not review asset information by operating segment. Instead, our CODM reviews cash flow and other financial ratios by operating segment. Net sales and other information by segment is as follows (in millions): Net Sales Operating Profit (Loss) Depreciation and Amortization Year Ended December 31, Year Ended December 31, Year Ended December 31, 2021 2020 2019 2021 2020 2019 2021 2020 2019 Americas $ 4,102.1 $ 3,699.5 $ 4,148.8 $ 1,709.3 $ 1,528.2 $ 1,831.8 $ 143.1 $ 135.6 $ 126.6 EMEA 1,477.2 1,237.3 1,554.8 380.3 303.0 478.5 71.4 73.9 71.9 Asia Pacific 1,248.0 1,190.7 1,257.0 401.3 395.4 447.9 66.7 63.0 57.7 Total $ 6,827.3 $ 6,127.5 $ 6,960.6 Corporate Functions (588.6 ) (695.6 ) (698.2 ) 126.9 113.8 113.9 Inventory and manufacturing-related charges (5.1 ) (55.0 ) (59.3 ) — — — Intangible asset amortization (529.5 ) (512.1 ) (500.9 ) 529.5 512.1 500.9 Goodwill and intangible asset impairment (16.3 ) (503.0 ) (70.1 ) — — — Restructuring and other cost reduction initiatives (125.7 ) (107.2 ) (48.2 ) — — — Quality remediation (52.8 ) (51.1 ) (87.2 ) — — — Acquisition, integration, divestiture and related (3.1 ) (11.4 ) 0.5 — — — Litigation (192.9 ) (159.8 ) (65.0 ) — — — Litigation settlement gain — — 23.5 — — — European Union Medical Device Regulation (40.8 ) (22.5 ) (27.0 ) — — — Certain R&D agreements (65.0 ) — — — — — Other charges (10.8 ) (25.8 ) (114.3 ) — — — Total $ 860.3 $ 83.1 $ 1,112.0 $ 937.6 $ 898.4 $ 871.0 We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions): As of December 31, 2021 2020 United States $ 1,084.2 $ 1,122.1 Other countries 752.4 741.7 Property, plant and equipment, net $ 1,836.6 $ 1,863.8 U.S. sales were $3,853.9 million, $3,507.7 million, and $3,894.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Sales within any other individual country were less than 10 percent of our consolidated sales in each of those years. Sales are attributable to a country based upon the customer’s country of domicile. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 21. Leases We own most of our manufacturing facilities, but lease various office space, vehicles and other less significant assets throughout the world. Our contracts contain a lease if they convey a right to control the use of an identified asset, either explicitly or implicitly, in exchange for consideration. As allowed by GAAP, we have elected not to recognize a right-of-use non-lease right-of-use Our real estate leases generally have terms of between 5 to 10 years and contain lease extension options that can vary from month-to-month month-to-month Under GAAP, we are required to discount our lease liabilities to present value using the rate implicit in the lease, or our incremental borrowing rate for a similar term as the lease term if the implicit rate is not readily available. We generally do not have adequate information to know the implicit rate in a lease and therefore use our incremental borrowing rate. Under GAAP, the incremental borrowing rate must be on a collateralized basis, but our debt arrangements are unsecured. We have determined our incremental borrowing rate by using our credit rating to estimate our unsecured borrowing rate and applying reasonable assumptions to reduce the unsecured rate for a risk adjustment effect from collateral. Information on our leases is as follows ($ in millions): For the Years Ended December 31, 2021 2020 2019 Lease cost $ 71.1 $ 68.8 $ 61.8 Cash paid for leases recognized in operating cash flows $ 70.5 $ 66.6 $ 60.0 Right-of-use $ 88.8 $ 74.2 $ 50.9 As of December 31, 2021 2020 Right-of-use Other asse $ 219.4 $ 215.1 Lease liabilities recognized in Other current liabilities $ 56.7 $ 61.0 Lease liabilities recognized in Other long-term liabilities $ 174.9 $ 165.2 Weighted-average remaining lease term 6.1 years 5.8 years Weighted-average discount rate 1.8 % 2.1 % Our variable lease costs are not significant. Our future minimum lease payments as of December 31, 2021 were (in millions): For the Years Ending December 31, 2022 $ 59.9 2023 46.9 2024 35.9 2025 26.5 2026 21.2 Thereafter 54.8 Total 245.2 Less imputed interest 13.6 Total $ 231.6 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 22. Commitments and Contingencies On a quarterly and annual basis, we review relevant information with respect to loss contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. We establish liabilities for loss contingencies on an undiscounted basis when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. For matters where a loss is believed to be reasonably possible, but not probable, or if no reasonable estimate of known or probable loss is available, no accrual has been made. When determining the estimated loss or range of loss, significant judgment is required. Estimates of probable losses resulting from litigation and other contingences are inherently difficult to predict, particularly when the matters are in early procedural stages with incomplete facts or legal discovery, involve unsubstantiated or indeterminate claims for damages, and/or potentially involve penalties, fines or punitive damages. We recognize litigation-related charges and gains in Selling, general and administrative expense on our consolidated statement of earnings. During the years ended December 31, 2021, 2020, and 2019, we recognized $201.0 million, $166.0 million, and $51.4 million, respectively, of net litigation-related charges. At December 31, 2021 and 2020, accrued litigation liabilities were $407.9 million and $309.4 million, respectively. These litigation-related charges and accrued liabilities reflect all of our litigation-related contingencies and not just the matters discussed below. The ultimate cost of litigation could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on our financial condition and results of operations. Litigation Durom Cup-related In Re: Zimmer Durom Hip Cup Products Liability Litigation Our understanding of clinical outcomes with the Durom Cup and other large diameter hip cups continues to evolve. We rely on significant estimates in determining the provisions for Durom Cup-related Cup-related Zimmer M/L Taper, M/L Taper with Kinectiv Technology, and Versys Femoral Head-related claims (“Metal Reaction” claims) The majority of the cases are consolidated in an MDL that was created on October 3, 2018 in the U.S. District Court for the Southern District of New York ( In Re: Zimmer M/L Taper Hip Prosthesis or M/L Taper Hip Prosthesis with Kinectiv Technology and Versys Femoral Head Products Liability Litigation Biomet metal-on-metal metal-on-metal M2a-Magnum (In Re: Biomet M2a Magnum Hip Implant Product Liability Litigation) On February 3, 2014, Biomet announced the settlement of the MDL. Lawsuits filed in the MDL by April 15, 2014 were eligible to participate in the settlement. Those claims that did not settle via the MDL settlement program have re-commenced metal-on-metal Heraeus trade secret misappropriation lawsuits: Germany: On June 5, 2014, the German appeals court in Frankfurt (i) enjoined Biomet, Inc., Biomet Europe BV and Biomet Deutschland GmbH from manufacturing, selling or offering the European Cements to the extent they contain certain raw materials in particular specifications; (ii) held the defendants jointly and severally liable to Heraeus for any damages from the sale of European Cements since 2005; and (iii) ruled that no further review may be sought (the “Frankfurt Decision”). The Heraeus and Biomet parties both sought appeal against the Frankfurt Decision. In a decision dated June 16, 2016, the German Supreme Court dismissed the parties’ appeals without reaching the merits, rendering that decision final. In December 2016, Heraeus filed papers to restart proceedings against Biomet Orthopaedics Switzerland GmbH (now Zimmer GmbH), seeking to require that entity to relinquish its CE certificates for the European Cements. In an order issued in September 2021, the District Court Darmstadt in charge of this matter decided that a technical expert is to be appointed to assess Heraeus’ alleged trade secrets and the alleged misuse. In January 2017, Heraeus notified Biomet it had filed a claim for damages in the amount of €121.9 million for sales in Germany, which it first increased to €125.9 million and with a filing in June 2019 further increased to €146.7 million plus statutory interest. In a court filing, Heraeus indicated that it might further increase its claims in the course of the proceedings. In June 2021, Heraeus extended its damage claims to include Merck KGaA as a defendant, arguing that Merck KGaA and the involved Zimmer Biomet entities are jointly and severally liable for Heraeus’ alleged damages. In October 2021, Merck KGaA requested that the claims against it be separated from the ongoing proceedings between Heraeus and Zimmer Biomet. As of December 31, 2021, these two proceedings remained pending in front of the Darmstadt court. In September 2017, Heraeus filed an enforcement action in the Darmstadt court against Biomet Europe (now Zimmer Biomet Nederland B.V.), requesting that a fine be imposed against Biomet Europe for failure to disclose the amount of the European Cements which Biomet Orthopaedics Switzerland had ordered to be manufactured in Germany (e.g., for the Chinese market). In June 2018, the Darmstadt court dismissed Heraeus’ request. Heraeus appealed the decision. Also in September 2017, Heraeus filed suit against Zimmer Biomet Deutschland in the court of first instance in Freiburg concerning the sale of the European Cements with certain changed raw materials. Heraeus sought an injunction on the basis that the continued use of the product names for the European Cements was misleading for customers and thus an act of unfair competition. On June 29, 2018, the court in Freiburg, Germany dismissed Heraeus’ request for an injunction prohibiting the marketing of the European Cements under their current names on the grounds that the same request had already been decided upon by the Frankfurt Decision which became final and binding. Heraeus appealed this decision to the Court of Appeals in Karlsruhe, Germany. The appeals hearing occurred in December 2019 and on June 19, 2020, the court dismissed the appeal on different grounds, namely that the appeals court did not find any unfair competition in the continued use of the product names. Although the appeals court did not grant leave to appeal, Heraeus had initially filed a request for appeal with the German Supreme Court, but it withdrew that request in November 2020. United States: On September 8, 2014, Heraeus filed a complaint against a Biomet supplier, Esschem, Inc. (“Esschem”), in the U.S. District Court for the Eastern District of Pennsylvania. The lawsuit contains allegations that focus on two copolymer compounds that Esschem sold to Biomet, which Biomet incorporated into certain bone cement products that competed with Heraeus’ bone cement products. The complaint alleges that Biomet helped Esschem to develop these copolymers, using Heraeus trade secrets that Biomet allegedly misappropriated. The complaint asserts a claim under the Pennsylvania Uniform Trade Secrets Act, as well as other various common law tort claims, all based upon the same trade secret misappropriation theory. Heraeus sought to enjoin Esschem from supplying the copolymers (which are no longer supplied to Biomet) to any third party and actual damages for global sales of cements including Esschem copolymers. The complaint also seeks punitive damages, costs and attorneys’ fees. Although Biomet was not a party to this lawsuit, Biomet agreed, at Esschem’s request and subject to certain limitations, to indemnify Esschem for any liability, damages and legal costs related to this matter. On November 3, 2014, the court entered an order denying Heraeus’ motion for a temporary restraining order. On June 30, 2016, the court entered an order denying Heraeus’ request to give preclusive effect to the factual findings in the Frankfurt Decision. On June 6, 2017, the court entered an order denying Heraeus’ motion to add Biomet as a party to the lawsuit. On January 26, 2018, the court entered an order granting Esschem’s motion for summary judgment on statute of limitations grounds and dismissed all of Heraeus’ claims with prejudice. On February 21, 2018, Heraeus filed a notice of appeal to the U.S. Court of Appeals for the Third Circuit, which heard oral argument on the appeal on October 23, 2018. On June 21, 2019, the Third Circuit partially reversed the decision of the U.S. District Court for the Eastern District of Pennsylvania granting Esschem summary judgment and remanded the case back to the lower court. On July 5, 2019, Esschem filed a petition in the Third Circuit for rehearing en banc On December 7, 2017, Heraeus filed a complaint against Zimmer Biomet Holdings, Inc. and Biomet, Inc. in the U.S. District Court for the Eastern District of Pennsylvania alleging a single claim of trade secret misappropriation under the Pennsylvania Uniform Trade Secrets Act based on the same factual allegations as the Esschem litigation (focused on the prior formulation (-1) (“ITC”) complaint filed by Heraeus. The related ITC investigation is complete, and the Heraeus complaint concluded with a January 12, 2021 Final Determination in our favor, and which Heraeus did not appeal. In June 2021, Heraeus filed a motion to lift the stay of proceedings and attached a draft motion for preliminary injunction enjoining Zimmer Biomet from continuing to manufacture and sell its current (-3) Other European Countries: Heraeus continues to pursue other related legal proceedings in Europe seeking various forms of relief, including injunctive relief and damages, against various Biomet-related and local Zimmer Biomet entities relating to the European Cements, including those described herein. On October 2, 2018, the Belgian Court of Appeal of Mons issued a judgment in favor of Heraeus relating to its request for past damages caused by the alleged misappropriation of its trade secrets, and an injunction preventing future sales of certain European Cements in Belgium (the “Belgian Decision”). We appealed this judgment to the Belgian Supreme Court. The Belgian Supreme Court dismissed our appeal in October 2019 and this decision is final. Proceedings to assess the amount of damages potentially owed to Heraeus under the Belgian Decision remained pending as of December 31, 2021. Heraeus filed a suit in Belgium concerning the continued sale of the European Cements with certain changed materials. Like its former suit in Germany, Heraeus seeks an injunction on the basis that the continued use of the product names for the European Cements is misleading for customers and thus an act of unfair competition. On May 7, 2019, the Liège Commercial Court issued a judgment that Zimmer Biomet failed to inform its hospital and surgeon customers of the changes made to the composition of the cement with certain changed materials and ordered, as a sole remedy, that Zimmer Biomet send letters to those customers, which we have done. An appeals hearing took place on January 13, 2021. On February 10, 2021, the court of appeals dismissed the appeals of Heraeus and Zimmer Biomet, which ended the unfair competition proceedings regarding the continued use of the product names. In November 2020, Heraeus also initiated proceedings in Belgium seeking an injunction and damages related to the distribution of the European Cements in the revised formulation. Heraeus claims that the revised formulation still misappropriates its alleged trade secrets. On February 13, 2019, a Norwegian court of first instance issued a judgment in favor of Heraeus on its claim for misappropriation of trade secrets. The court awarded damages of 19,500,000 NOK, or approximately $2.3 million, plus attorneys’ fees, and issued an injunction, which was never enforced, preventing Zimmer Biomet Norway from marketing in Norway bone cements identified with the current product names and bone cements making use of the trade secrets which were acknowledged in the Frankfurt Decision. We appealed the Norwegian judgment to the court of second instance and an appeals trial was held in March 2021. On April 30, 2021, the appeals court in Norway found in favor of Zimmer Biomet and reversed the decision of the court of first instance. The appeals court ruled that Heraeus did not substantiate that the alleged trade secrets were useful and thus did not qualify as trade secrets, and additionally determined that the alleged trade secrets were not actually used or misappropriated. Heraeus sought leave to appeal to the Norwegian supreme court, which the court denied on July 13, 2021. The decision of the appeals court in favor of Zimmer Biomet is now final. On October 29, 2019, an Italian court of first instance issued a judgment in favor of Heraeus on its claim of misappropriation of trade secrets, but did not yet order an award of damages. We filed a timely appeal of the decision and the appellate hearing took place on May 27, 2021. On July 19, 2021, the court of appeals reopened the case and ordered the appointment of a technical expert, who was subsequently appointed, to ascertain whether the trade secrets enforced by Heraeus are secret according to the law and have been protected by adequate protective measures. In March 2021, Heraeus initiated damages proceedings, claiming damages of €13.84 million, or approximately $16.6 million. We requested a dismissal of the case, or, in the alternative, a stay of the proceedings pending the outcome of the proceedings in France (see below) in which Heraeus seeks global damages (except for Germany only). As of December 31, 2021, Heraeus had not initiated damages proceedings but could do so in the future based on the non-final On January 23, 2020, a Finnish Market Court issued a judgment partly in favor of Heraeus on its claim of misappropriation of certain trade secrets. Damage claims were not raised in the proceedings. We appealed the decision to the Finnish Supreme Court. On July 3, 2020, the Finnish Supreme Court declined to review the case, rendering the Market Court decision final. As of December 31, 2021, Heraeus had not yet initiated damages proceedings against us but indicated it intended to do so. Heraeus is pursuing damages and injunctive relief in France in an effort to prevent us from manufacturing, marketing and selling the European Cements (the “France Litigation”). The European Cements are manufactured at our facility in Valence, France. On December 11, 2018, a hearing was held in the France Litigation before the commercial court in Romans-sur-Isère. Based on various developments in these lawsuits in both the United States and Europe in the fourth quarter of 2021, the parties’ interests in exploring a negotiated resolution, and to avoid the continuing risks associated with potential negative outcomes, the projected legal spend and management distraction associated with continuing litigation, we determined that it was in the best interest of our company and our stockholders to settle all litigation with Heraeus globally. On January 20, 2022, Zimmer Biomet and Heraeus entered into a confidential memorandum of understanding to fully resolve all global disputes between and among them relating to both Heraeus’ alleged technical trade secrets misappropriation relating to bone cement and Zimmer Biomet’s alleged business trade secrets misappropriation relating to bone cement. Among other terms and conditions, the confidential memorandum of understanding includes the dismissal of all lawsuits by both parties, mutual general releases benefitting both parties, and mutual covenants not to sue, as well as no admission of wrongdoing by either party and no admission concerning the validity or existence of either parties’ alleged trade secrets. Zimmer Biomet and Heraeus are in the process of formalizing a definitive settlement agreement, which will reflect the material terms in the confidential memorandum of understanding. Our accrued litigation expense was adjusted in 2021 to reflect the portion of the confidential memorandum of understanding in excess of existing accruals, and our settlement payment to Heraeus will be made in agreed installments over an approximately three-year period beginning upon the execution of the settlement agreement. Shareholder Derivative Actions Green v. Begley et al. Detectives Endowment Association Annuity Fund v. Begley et al. Karp v. Begley et al. DiGaudio v. Begley et al. Regulatory Matters, Government Investigations and Other Matters U.S. International Trade Commission Investigation FDA warning letter: non-conformities Other Contingencies Contractual obligations |
Subsequent Events (Unaudited)
Subsequent Events (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. Subsequent Events (Unaudited) In April 2022, we acquired another company for approximately $100 million. In order to fund the acquisition, we borrowed an additional $100.0 million tranche under our 2021 Five-Year Revolving Facility. This acquisition is not expected to have a significant effect on our results of operations or financial position and therefore no further information has been provided. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation interest |
Use of Estimates | Use of Estimates - We COVID-19 |
Foreign Currency Translation | Foreign Currency Translation - period-end |
Shipping and Handling | Shipping and Handling |
Research and Development | Research and Development - in-process |
Litigation | Litigation |
Quality Remediation | Quality remediation - |
Restructuring and Other Cost Reduction Initiatives | Restructuring and other cost reduction initiatives - In December 2021, our management approved a new global restructuring program to reorganize our operations in preparation for the planned spinoff of ZimVie with an objective of reducing costs. In December 2019, our Board of Directors approved, and we initiated, a new global restructuring program with an objective of reducing costs to allow us to further invest in higher priority growth opportunities. Restructuring charges for the years ended December 31, 2021, 2020 and 2019 were primarily attributable to these programs. |
Acquisition, Integration and Related | Acquisition, integration, divestiture and related – • Consulting and professional fees related to third-party integration and divestiture consulting performed in a variety of areas, such as finance, tax, compliance, logistics and human resources, and legal fees related to the consummation of mergers and acquisitions or divestitures. • Employee termination benefits related to terminating employees with overlapping responsibilities in various areas of our business. • Dedicated project personnel expenses which include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our integration of acquired businesses and employees who have been notified of termination, but are continuing to work on transferring their responsibilities. • Contract termination expenses related to terminated contracts, primarily with sales agents and distribution agreements. • Other various expenses to relocate facilities, integrate information technology, losses incurred on assets resulting from the applicable acquisition, and other various expenses. |
Cash and Cash Equivalents | Cash and Cash Equivalents - |
Accounts Receivable | Accounts Receivable creditworthiness of the customer and other pertinent information. We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off We also have receivables purchase arrangements with unrelated third parties to transfer portions of our trade accounts receivable balance. We terminated our purchase arrangements in the U.S. and Japan during the year ended December 31, 2020, but continue to have arrangements in Europe. Funds received from the transfers are recorded as an increase to cash and a reduction to accounts receivable outstanding in our consolidated balance sheets. We report the cash flows attributable to the sale of receivables to third parties in cash flows from operating activities in our consolidated statements of cash flows. Net expenses resulting from the sales of receivables are recognized in SG&A expense. Net expenses include any resulting gains or losses from the sales of receivables, credit insurance and factoring fees. Under the previous arrangement in the U.S. and Japan, any collections that we made that were unremitted to the third parties were recognized on our consolidated balance sheets under other current liabilities and in our consolidated statements of cash flows in financing activities. In Europe, we have no continuing involvement with |
Inventories | Inventories - first-in first-out |
Property, Plant and Equipment | Property, Plant and Equipment - ten three |
Software Costs | Software Costs three For cloud computing arrangements that are considered a service contract, our capitalization of implementation costs is aligned with the internal use software requirements. However, on our consolidated balance sheet these implementation costs are recognized in other noncurrent assets. On our consolidated statement of cash flows, these implementations costs are recognized in operating cash flows. The implementation costs are recognized on a straight-line basis over the expected term of the related service contract. |
Instruments | Instruments |
Goodwill | Goodwill are determined based upon a discounted cash flow analysis and/or use of a market approach by looking at market values of comparable companies. Significant assumptions are incorporated into our discounted cash flow analyses such as estimated growth rates, forecasted operating expenses and risk-adjusted discount rates. We perform this test in the fourth quarter of the year or whenever events or changes in circumstances indicate that the fair value of the reporting unit is more likely than not below its carrying amount. If the fair value of the reporting unit is less than its carrying value, an impairment loss is recorded in the amount that the carrying value of the business unit exceeds the fair value. See Note 12 for more information regarding goodwill. |
Intangible Assets | Intangible Assets after-tax Intangible assets with an indefinite life, including certain trademarks and trade names and in-process In determining the useful lives of intangible assets, we consider the expected use of the assets and the effects of obsolescence, demand, competition, anticipated technological advances, changes in surgical techniques, market influences and other economic factors. For technology-based intangible assets, we consider the expected life cycles of products, absent unforeseen technological advances, which incorporate the corresponding technology. Trademarks and trade names that do not have a wasting characteristic (i.e., there are no legal, regulatory, contractual, competitive, economic or other factors which limit the useful life) are assigned an indefinite life. Trademarks and trade names that are related to products expected to be phased out are assigned lives consistent with the period in which the products bearing each brand are expected to be sold. For customer relationship intangible assets, we assign useful lives based upon historical levels of customer attrition. Intellectual property rights are assigned useful lives that approximate the contractual life of any related patent or the period for which we maintain exclusivity over the intellectual property. |
Income Taxes | Income Taxes - We reduce our deferred tax assets by a valuation allowance if it is more likely than not that we will not realize some portion or all of the deferred tax assets. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance which would reduce the provision for income taxes. We operate on a global basis and are subject to numerous and complex tax laws and regulations. The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in a multitude of jurisdictions across our global operations. Our income tax filings are regularly under audit in multiple federal, state and foreign jurisdictions. Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed. Because income tax adjustments in certain jurisdictions can be significant, we record tax positions based upon our estimates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50 percent likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. |
Derivative Financial Instruments | Derivative Financial Instruments - financial |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive Income (Loss) – hedges |
Treasury Stock | Treasury Stock account held |
Noncontrolling Interest | Noncontrolling Interest |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, In August 2018, the FASB issued ASU 2018-15, Other-Internal-Use 2018-15 internal-use 2018-15 In December 2019, the FASB issued ASU 2019-12 2019-12 step-up Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04 2020-04 In July 2021, the FASB issued ASU 2021-05 day-one 2021-05 day-one 2021-05. There are no recently issued accounting pronouncements that we have not yet adopted that are expected to have a material effect on our financial position, results of operations or cash flows. |
Revenue from Contract with Customer | We recognize revenue when our performance obligations under the terms of a contract with our customer are satisfied. This happens when we transfer control of our products to the customer, which generally occurs upon implantation or when title passes upon shipment. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring our product. Taxes collected from customers and remitted to governmental authorities are excluded from revenues. We sell products through two principal channels: 1) direct to healthcare institutions, referred to as direct channel accounts; and 2) through stocking distributors and healthcare dealers. In direct channel accounts and with some healthcare dealers, inventory is generally consigned to sales agents or customers so that products are available when needed for surgical procedures. No revenue is recognized upon the placement of inventory into consignment, as we retain the ability to control the inventory. Upon implantation, we issue an invoice and revenue is recognized. Consignment sales represented approximately 85 percent of our net sales in 2021. Pricing for products is generally predetermined by contracts with customers, agents acting on behalf of customer groups or by government regulatory bodies, depending on the market. Price discounts under group purchasing contracts are generally linked to volume of implant purchases by customer healthcare institutions within a specified group. At negotiated thresholds within a contract buying period, price discounts may increase. Payment terms vary by customer, but are typically less than 90 days. With sales to stocking distributors and some healthcare dealers and hospitals, revenue is generally recognized when control of our product passes to the customer, which can be upon shipment of the product or receipt by the customer. We estimate sales recognized in this manner represented approximately 15 percent of our net sales in 2021. These customers may purchase items in large quantities if incentives are offered or if there are new product offerings in a market, which could cause period-to-period We offer standard warranties to our customers that our products are not defective. These standard warranties are not considered separate performance obligations. In limited circumstances, we offer extended warranties that are separate performance obligations. We have very few contracts that have multiple performance obligations. Since we do not have significant multiple element arrangements and essentially all of our sales are recognized upon implantation of a product or when title passes, very little judgment is required to allocate the transaction price of a contract or determine when control has passed to a customer. Our costs to obtain contracts consist primarily of sales commissions to employees or third-party agents that are earned when control of our product passes to the customer. Therefore, sales commissions are expensed as part of SG&A expenses at the same time revenue is recognized. Accordingly, we do not have significant contract assets, liabilities or future performance obligations. We offer volume-based discounts, rebates, prompt pay discounts, right of return and other various incentives which we account for under the variable consideration model. If sales incentives may be earned by a customer for purchasing a specified amount of our product, we estimate whether such incentives will be achieved and recognize these incentives as a reduction in revenue in the same period the underlying revenue transaction is recognized. We primarily use the expected value method to estimate incentives. Under the expected value method, we consider the historical experience of similar programs as well as review sales trends on a customer-by-customer |
Leases | We own most of our manufacturing facilities, but lease various office space, vehicles and other less significant assets throughout the world. Our contracts contain a lease if they convey a right to control the use of an identified asset, either explicitly or implicitly, in exchange for consideration. As allowed by GAAP, we have elected not to recognize a right-of-use non-lease right-of-use Our real estate leases generally have terms of between 5 to 10 years and contain lease extension options that can vary from month-to-month month-to-month Under GAAP, we are required to discount our lease liabilities to present value using the rate implicit in the lease, or our incremental borrowing rate for a similar term as the lease term if the implicit rate is not readily available. We generally do not have adequate information to know the implicit rate in a lease and therefore use our incremental borrowing rate. Under GAAP, the incremental borrowing rate must be on a collateralized basis, but our debt arrangements are unsecured. We have determined our incremental borrowing rate by using our credit rating to estimate our unsecured borrowing rate and applying reasonable assumptions to reduce the unsecured rate for a risk adjustment effect from collateral. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Details of Earnings (Loss), Asset and Liabilities from Discontinued operation | Details of earnings (loss) from discontinued operations included in our consolidated statements of earnings are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Net Sales $ 1,008.8 $ 896.9 $ 1,021.6 Cost of products sold, excluding intangible asset amortization 380.6 304.0 308.9 Intangible asset amortization 86.2 85.5 83.4 Research and development 61.3 49.0 55.2 Selling, general and administrative 480.5 465.0 533.7 Goodwill and intangible asset impairment — 142.0 — Restructuring and other cost reduction initiatives 3.3 9.7 1.8 Quality remediation 0.2 0.2 0.4 Acquisition, integration, divestiture and related 76.8 12.4 12.7 Other expense (income), net 0.5 (1.6 ) (0.2 ) (Loss) Earnings from discontinued operations before income taxes (80.6 ) (169.3 ) 25.7 (Benefit) Provision for income taxes from discontinued operations (37.2 ) (41.1 ) 12.3 (Loss) Earnings from discontinued operations, net of tax $ (43.4 ) $ (128.2 ) $ 13.4 Details of assets and liabilities of discontinued operations are as follows (in millions): December 31, 2021 December 31, 2020 Cash and cash equivalents $ 100.4 $ 27.4 Accounts receivable, less allowance for credit losses 145.3 174.6 Inventories 246.5 276.5 Prepaid expenses and other current assets 9.4 9.7 Total Current Assets of Discontinued Operations $ 501.6 $ 488.2 Property, plant and equipment, net $ 179.9 $ 183.9 Goodwill 272.8 278.7 Intangible assets, net 766.2 891.0 Other assets 57.9 63.3 Total Noncurrent Assets of Discontinued Operations $ 1,276.8 $ 1,416.9 Accounts payable $ 44.7 $ 48.1 Income taxes payable 3.1 3.8 Other current liabilities 129.4 155.6 Total Current Liabilities of Discontinued Operations $ 177.2 $ 207.5 Deferred income taxes, net $ 107.1 $ 164.0 Other long-term liabilities 61.3 62.9 Total Noncurrent Liabilities of Discontinued Operations $ 168.4 $ 226.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Schedule of Net Sales by Geography | Net sales by geography are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Americas $ 4,102.1 $ 3,699.5 $ 4,148.8 EMEA 1,477.2 1,237.3 1,554.8 Asia Pacific 1,248.0 1,190.7 1,257.0 Total $ 6,827.3 $ 6,127.5 $ 6,960.6 |
Schedule of Net Sales by Product Category | Net sales by product category are as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Knees $ 2,647.9 $ 2,378.3 $ 2,780.6 Hips 1,856.1 1,750.5 1,931.5 S.E.T 1,727.8 1,525.6 1,652.5 Other 595.5 473.1 596.0 Total $ 6,827.3 $ 6,127.5 $ 6,960.6 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Liabilities Recognized Related to Restructuring Plan | The following table summarizes the liabilities recognized related to the 2021 Restructuring Plan (in millions): Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2020 $ — $ — $ — $ — Additions 19.5 2.3 10.3 32.1 Cash payments — — — — Foreign currency exchange rate changes — — — — Balance, December 31, 2021 19.5 2.3 10.3 32.1 Expense estimated to be recognized for the 2021 Restructuring Plan $ 62.0 $ 167.0 $ 11.0 $ 240.0 Employee Termination Contract Benefits Terminations Other Total Balance, December 31, 2018 $ — $ — $ — $ — Additions 22.3 — 12.2 34.5 Cash Payments — — (8.1 ) (8.1 ) Balance, December 31, 2019 22.3 — 4.1 26.4 Additions 49.6 15.8 33.1 98.5 Cash payments (35.5 ) (4.9 ) (22.1 ) (62.5 ) Foreign currency exchange rate changes 1.4 — — 1.4 Balance, December 31, 2020 37.8 10.9 15.1 63.8 Additions 7.3 18.5 49.2 75.0 Cash payments (28.7 ) (12.9 ) (64.2 ) (105.8 ) Foreign currency exchange rate changes (1.6 ) — (0.1 ) (1.7 ) Balance, December 31, 2021 $ 14.8 $ 16.5 $ — $ 31.3 Expense incurred since the start of the 2019 Restructuring Plan $ 79.2 $ 34.3 $ 94.5 $ 208.0 Expense estimated to be recognized for the 2019 Restructuring Plan $ 175.0 $ 40.0 $ 145.0 $ 360.0 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Expense | Share-based compensation expense was as follows (in millions): For the Years Ended December 31, 2021 2020 2019 Total expense, pre-tax $ 76.0 $ 73.8 $ 77.2 Tax benefit related to awards 17.2 15.6 19.7 Total expense, net of tax $ 58.8 $ 58.2 $ 57.5 |
Summary of Stock Option Activity | A summary of stock option activity for the year ended December 31, 2021 is as follows (options in thousands): Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life Intrinsic Value (in millions) Outstanding at January 1, 2021 7,423 $ 116.67 Options granted 1,278 163.47 Options exercised (871 ) 99.92 Options forfeited (219 ) 150.10 Options expired (64 ) 149.02 Outstanding at December 31, 2021 7,547 $ 125.32 6.0 $ 90.5 Vested or expected to vest as of December 31, 2021 7,291 $ 124.52 6.0 $ 90.0 Exercisable at December 31, 2021 4,805 $ 111.42 4.8 $ 85.6 |
Weighted Average Fair Value for Stock Options Granted | The following table presents information regarding the weighted average fair value of stock options granted, the assumptions used to determine fair value, the intrinsic value of options exercised and the tax benefit of options exercised in the indicated year: For the Years Ended December 31, 2021 2020 2019 Dividend yield 0.6 % 0.6 % 0.8 % Volatility 30.3 % 22.3 % 22.1 % Risk-free interest rate 0.7 % 1.3 % 2.4 % Expected life (years) 5.4 5.0 5.5 Weighted average fair value of options granted $ 43.91 $ 31.65 $ 28.68 Intrinsic value of options exercised (in millions) $ 54.6 $ 50.1 $ 76.8 Tax benefit of options exercised (in millions) $ 10.8 $ 9.6 $ 15.8 |
Summary of Nonvested RSU Activity | A summary of nonvested RSU activity for the year ended December 31, 2021 is as follows (RSUs in thousands): RSUs Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 1,070 $ 129.65 Granted 556 171.37 Vested (239 ) 119.32 Forfeited (348 ) 122.90 Outstanding at December 31, 2021 1,039 146.58 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following (in millions): As of December 31, 2021 2020 Finished goods $ 1,729.2 $ 1,712.4 Work in progress 175.5 200.1 Raw materials 243.3 261.7 Inventories $ 2,148.0 $ 2,174.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment consisted of the following (in millions): As of December 31, 2021 2020 Land $ 20.1 $ 20.4 Building and equipment 2,086.0 1,973.9 Capitalized software costs 454.9 425.9 Instruments 3,460.4 3,191.0 Construction in progress 116.3 121.9 6,137.7 5,733.1 Accumulated depreciation (4,301.1 ) (3,869.3 ) Property, plant and equipment, net $ 1,836.6 $ 1,863.8 |
Fair Value Measurements of As_2
Fair Value Measurements of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Assets and Liabilities | The following financial assets and liabilities are recorded at fair value on a recurring basis (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 52.4 $ — $ 52.4 $ — Cross-currency interest rate swaps 23.0 — 23.0 — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.1 — 1.1 — Total Assets $ 76.5 $ — $ 76.5 $ — Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.3 $ — $ 0.3 $ — Cross-currency interest rate swaps 3.4 — 3.4 — Interest rate swaps 10.5 — 10.5 — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 1.5 — 1.5 — Contingent payments related to acquisitions 35.6 — — 35.6 Total Liabilities $ 51.3 $ — $ 15.7 $ 35.6 39 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Description Recorded Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 0.5 $ — $ 0.5 $ — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 0.9 $ — 0.9 $ — Total Assets $ 1.4 $ — $ 1.4 $ — Liabilities Derivatives designated as hedges, current and long-term Foreign currency forward contracts $ 48.5 $ — $ 48.5 $ — Cross-currency interest rate swaps 83.3 — 83.3 — Derivatives not designated as hedges, current and long-term Foreign currency forward contracts 3.2 — 3.2 — Contingent payments related to acquisitions 38.2 — — 38.2 Total Liabilities $ 173.2 $ — $ 135.0 $ 38.2 |
Fair Value Liabilities Measured on Recurring Basis | The following table provides a reconciliation of the beginning and ending balances of items related to continuing operations measured at fair value on a recurring basis in the tables above that used significant unobservable inputs (Level 3) (in millions): Level 3 - Liabilities Contingent payments related to acquisitions Beginning balance December 31, 2020 $ 38.2 Change in estimates 7.0 Settlements (9.5 ) Foreign currency impact (0.1 ) Ending balance December 31, 2021 $ 35.6 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
2020 Acquisitions [Member] | |
Summary of Aggregate Final Estimates of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the aggregate final estimates of fair value of the assets acquired and liabilities assumed related to the 2020 acquisitions (in millions): Current assets $ 30.5 Intangible assets subject to amortization: Technology 147.9 Trademarks and trade names 1.5 Customer relationships 92.7 Goodwill 172.6 Other assets 5.1 Total assets acquired 450.3 Current liabilities 4.6 Deferred income taxes 42.0 Total liabilities assumed 46.6 Net assets acquired $ 403.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill related to continuing operations (in millions): Americas EMEA Asia Pacific Total Balance at January 1, 2020 Goodwill $ 7,884.6 $ 1,333.8 $ 553.4 $ 9,771.8 Accumulated impairment losses (7.7 ) (567.0 ) — (574.7 ) 7,876.9 766.8 553.4 9,197.1 Other acquisitions 129.8 10.9 8.9 149.6 Currency translation 74.7 18.2 13.5 106.4 Impairment — (470.0 ) — (470.0 ) Balance at December 31, 2020 Goodwill 8,089.1 1,362.9 575.8 10,027.8 Accumulated impairment losses (7.7 ) (1,037.0 ) — (1,044.7 ) 8,081.4 325.9 575.8 8,983.1 Purchase accounting adjustments 15.4 5.2 2.3 22.9 Other acquisitions 2.4 — — 2.4 Currency translation (61.1 ) (13.8 ) (14.1 ) (89.0 ) Balance at December 31, 2021 Goodwill 8,045.8 1,354.3 564.0 9,964.1 Accumulated impairment losses (7.7 ) (1,037.0 ) — (1,044.7 ) $ 8,038.1 $ 317.3 $ 564.0 $ 8,919.4 |
Components of Identifiable Intangible Assets | The components of identifiable intangible assets related to continuing operations were as follows (in millions): Technology Intellectual Property Rights Trademarks and Trade Names Customer Relationships IPR&D Other Total As of December 31, 2021: Intangible assets subject to amortization: Gross carrying amount $ 2,930.7 $ 381.9 $ 522.1 $ 5,109.1 $ — $ 136.6 $ 9,080.4 Accumulated amortization (1,537.1 ) (230.2 ) (230.7 ) (1,939.5 ) — (79.3 ) (4,016.8 ) Intangible assets not subject to amortization: Gross carrying amount — — 457.0 — 13.0 — 470.0 Total identifiable intangible assets $ 1,393.6 $ 151.7 $ 748.4 $ 3,169.6 $ 13.0 $ 57.3 $ 5,533.6 As of December 31, 2020: Intangible assets subject to amortization: Gross carrying amount $ 2,992.0 $ 381.9 $ 527.1 $ 5,194.7 $ — $ 98.6 $ 9,194.3 Accumulated amortization (1,372.4 ) (210.3 ) (202.3 ) (1,670.8 ) — (66.3 ) (3,522.1 ) Intangible assets not subject to amortization: Gross carrying amount — — 462.7 — 29.5 — 492.2 Total identifiable intangible assets $ 1,619.6 $ 171.6 $ 787.5 $ 3,523.9 $ 29.5 $ 32.3 $ 6,164.4 |
Estimated Annual Amortization Expense Based on Intangible Assets Recognized | Estimated annual amortization expense based upon intangible assets recognized as of December 31, 2021 for the years ending December 31, 2022 through 2026 is (in millions): For the Years Ending December 31, 2022 $ 521.5 2023 515.2 2024 506.4 2025 459.9 2026 408.3 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consisted of the following (in millions): As of December 31, 2021 2020 Other current liabilities: License and service agreements $ 133.9 $ 147.1 Salaries, wages and benefits 317.6 282.4 Litigation and product liability 199.9 150.3 Deferred business combination payments — 145.0 Accrued liabilities 665.7 787.0 Total other current liabilities $ 1,317.1 $ 1,511.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | Our debt consisted of the following (in millions): As of December 31, 2021 2020 Current portion of long-term debt Floating Rate Notes due 2021 — 200.0 3.375% Senior Notes due 2021 — 300.0 3.150% Senior Notes due 2022 750.0 — 1.414% Euro Notes due 2022 568.6 — Japan Term Loan A 101.6 — Japan Term Loan B 184.9 — Total short-term debt $ 1,605.1 $ 500.0 Long-term debt 3.150% Senior Notes due 2022 — 750.0 3.700% Senior Notes due 2023 86.3 300.0 1.450% Senior Notes due 2024 850.0 — 3.550% Senior Notes due 2025 863.0 2,000.0 3.050% Senior Notes due 2026 600.0 600.0 3.550% Senior Notes due 2030 257.5 900.0 2.600% Senior Notes due 2031 750.0 — 4.250% Senior Notes due 2035 253.4 253.4 5.750% Senior Notes due 2039 317.8 317.8 4.450% Senior Notes due 2045 395.4 395.4 1.414% Euro Notes due 2022 — 611.8 2.425% Euro Notes due 2026 568.6 611.8 1.164% Euro Notes due 2027 568.6 611.8 Japan Term Loan A — 113.3 Japan Term Loan B — 206.3 Debt discount and issuance costs (36.4 ) (48.2 ) Adjustment related to interest rate swaps (10.5 ) 3.1 Total long-term debt $ 5,463.7 $ 7,626.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in Components of Accumulated Other Comprehensive Income, Net of Tax | The following table shows the changes in the components of AOCI, net of tax (in millions): Foreign Cash Defined Currency Flow Benefit Total Translation Hedges Plan Items AOCI Balance December 31, 2020 $ (7.2 ) $ (55.6 ) $ (235.0 ) $ (297.8 ) AOCI before reclassifications (99.9 ) 86.4 73.5 60.0 Reclassifications to statements of earnings — 1.3 4.9 6.2 Balance December 31, 2021 $ (107.1 ) $ 32.1 $ (156.6 ) $ (231.6 ) |
Reclassification Adjustments from Accumulated Other Comprehensive Income | The following table shows the reclassification adjustments from AOCI (in millions): Amount of Gain / (Loss) Reclassified from AOCI For the Years Ended December 31, Location on Component of AOCI 2021 2020 2019 Statements of Earnings Cash flow hedges Foreign exchange forward contracts $ (0.8 ) $ 45.4 $ 38.4 Cost of products sold Interest rate swaps — — 2.8 Interest expense, net Forward starting interest rate swaps (0.6 ) (0.6 ) (0.6 ) Interest expense, net (1.4 ) 44.8 40.6 Total before tax (0.1 ) 6.3 5.5 Provision (benefit) for income taxes $ (1.3 ) $ 38.5 $ 35.1 Net of tax Defined benefit plans Prior service cost $ 4.0 $ 3.9 $ 7.3 Other income (expense), net Curtailment gain — — 7.2 Other income (expense), net Unrecognized actuarial loss (11.1 ) (8.5 ) (21.8 ) Other income (expense), net (7.1 ) (4.6 ) (7.3 ) Total before tax (2.2 ) (1.7 ) (2.3 ) Provision (benefit) for income taxes $ (4.9 ) $ (2.9 ) $ (5.0 ) Net of tax Total reclassifications $ (6.2 ) $ 35.6 $ 30.1 Net of tax |
Tax Effects on Each Component of Accumulated Other Comprehensive Income Recognized in Statements of Comprehensive Income (Loss) | The following table shows the tax effects on each component of AOCI recognized in our consolidated statements of comprehensive income (loss) (in millions): For the Years Ended December 31, Before Tax Tax Net of Tax 2021 2020 2019 2021 2020 2019 2021 2020 2019 Foreign currency cumulative translation adjustments $ (54.8 ) $ (43.4 ) $ 12.1 $ 45.1 $ (69.0 ) $ 13.6 $ (99.9 ) $ 25.6 $ (1.5 ) Unrealized cash flow hedge gains (losses) 102.5 (42.7 ) 34.6 16.1 (9.2 ) 4.0 86.4 (33.5 ) 30.6 Reclassification adjustments on cash flow hedges 1.4 (44.8 ) (40.6 ) 0.1 (6.3 ) (5.5 ) 1.3 (38.5 ) (35.1 ) Adjustments to prior service cost and unrecognized actuarial assumptions 96.9 (20.9 ) (56.4 ) 18.5 (11.4 ) (7.9 ) 78.4 (9.5 ) (48.5 ) Total Other Comprehensive Income (Loss) $ 146.0 $ (151.8 ) $ (50.3 ) $ 79.8 $ (95.9 ) $ 4.2 $ 66.2 $ (55.9 ) $ (54.5 ) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Amounts Recorded On Balance Sheet Related To Cumulative Basis Adjustments For Fair Value Hedges | As of December 31, 2021 and December 31, 2020, the following amounts were recorded on our consolidated balance sheets related to cumulative basis adjustments for fair value hedges (in millions): Carrying Amount of the Hedged Liabilities Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities Balance Sheet Line Item December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Current portion of long-term debt $ — $ 303.0 $ — $ 3.1 Long-term debt 985.2 — (10.5 ) — |
Gross Unrealized Losses from Derivative Instruments | Derivative instruments designated as cash flow hedges had the following effects, before taxes, on AOCI and net earnings on our consolidated statements of earnings, consolidated statements of comprehensive income (loss) and consolidated balance sheets (in millions): Amount of Gain / (Loss) Amount of Gain / (Loss) Recognized in AOCI Location on Reclassified from AOCI Years Ended December 31, Statement of Years Ended December 31, Derivative Instrument 2021 2020 2019 Earnings 2021 2020 2019 Foreign exchange forward contracts $ 102.5 $ (42.7 ) $ 34.6 Cost of products sold $ (0.8 ) $ 45.4 $ 38.4 Interest rate swaps — — — Interest expense, net — — 2.8 Forward starting interest rate swaps — — — Interest expense, net (0.6 ) (0.6 ) (0.6 ) $ 102.5 $ (42.7 ) $ 34.6 $ (1.4 ) $ 44.8 $ 40.6 |
Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Consolidated Statements of Earnings | The following table presents the effects of fair value, cash flow and net investment hedge accounting on our consolidated statements of earnings (in millions): Location and Amount of Gain/(Loss) Recognized in Income on Fair Value, Cash Flow and Net Investment Hedging Relationships Years Ended December 31, 2021 2020 2019 Cost of Interest Cost of Interest Cost of Interest Products Expense, Products Expense, Products Expense, Sold Net Sold Net Sold Net Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded $ 1,960.4 $ (208.4 ) $ 1,824.3 $ (212.1 ) $ 1,943.7 $ (227.0 ) The effects of fair value, cash flow and net investment hedging: Gain on fair value hedging relationships Discontinued interest rate swaps — 3.1 — 3.3 — 8.2 Interest rate swaps — 6.4 — — — — Gain (loss) on cash flow hedging relationships Foreign exchange forward contracts (0.8 ) — 45.4 — 38.4 — Interest rate swaps — — — — — 2.8 Forward starting interest rate swaps — (0.6 ) — (0.6 ) — (0.6 ) Gain on net investment hedging relationships Cross-currency interest rate swaps — 37.5 — 53.5 — 52.2 |
Derivative Instruments Not Designated as Hedging Instruments | The following gains/(losses) from these derivative instruments were recognized on our consolidated statements of earnings (in millions): Location on Years Ended December 31, Derivative Instrument Statements of Earnings 2021 2020 2019 Foreign exchange forward contracts Other income (expense), net $ (1.8 ) $ 10.6 $ (11.0 ) Reverse treasury lock Other income 12.0 — — |
Fair Value of Derivative Instruments on Gross Basis | The fair value of derivative instruments on a gross basis is as follows (in millions): As of December 31, 2021 As of December 31, 2020 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Asset Derivatives Designated as Hedges Foreign exchange forward contracts Other current assets $ 42.3 Other current assets $ 12.2 Cross-currency interest rate swaps Other current assets 16.3 Other current assets — Foreign exchange forward contracts Other assets 20.9 Other assets 3.7 Cross-currency interest rate swaps Other assets 6.7 Other assets — Total asset derivatives $ 86.2 $ 15.9 Asset Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current assets $ 1.4 Other current assets $ 1.5 Liability Derivatives Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 9.6 Other current liabilities $ 37.4 Cross-currency interest rate swaps Other current liabilities 0.1 Other current liabilities 55.0 Foreign exchange forward contracts Other long-term liabilities 1.5 Other long-term liabilities 26.5 Cross-currency interest rate swaps Other long-term liabilities 3.3 Other long-term liabilities 28.3 Interest rate swaps Other long-term liabilities 10.5 Other long-term liabilities — Total liability derivatives $ 25.0 $ 147.2 Liability Derivatives Not Designated as Hedges Foreign exchange forward contracts Other current liabilities $ 1.8 Other current liabilities $ 3.8 |
Schedule of Effects of Master Netting Agreements on Consolidated Balance Sheets | The table below presents the effects of our master netting agreements on our consolidated balance sheets (in millions): As of December 31, 2021 As of December 31, 2020 Description Location Gross Amount Offset Net Amount in Balance Sheet Gross Amount Offset Net Amount in Balance Sheet Asset Derivatives Cash flow hedges Other current assets $ 42.3 $ 9.5 $ 32.8 $ 12.2 $ 11.7 $ 0.5 Cash flow hedges Other assets 20.9 1.3 19.6 3.7 3.7 — Derivatives not designated as hedges Other current assets 1.4 0.3 1.1 1.5 0.6 0.9 Liability Derivatives Cash flow hedges Other current liabilities 9.6 9.5 0.1 37.4 11.7 25.7 Cash flow hedges Other long-term liabilities 1.5 1.3 0.2 26.5 3.7 22.8 Derivatives not designated as hedges Other current liabilities 1.8 0.3 1.5 3.8 0.6 3.2 |
Net Investment Hedge Gains Recognized on Consolidated Statements of Comprehensive Income | The following net investment hedge gains (losses) were recognized on our consolidated statements of comprehensive income (loss) (in millions): Amount of Gain / (Loss) Recognized in AOCI Years Ended December 31, Derivative Instrument 2021 2020 2019 Euro Notes $ 129.6 $ (151.5 ) $ 10.7 Cross-currency interest rate swaps 103.0 (143.8 ) 47.9 $ 232.6 $ (295.3 ) $ 58.6 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Components of Net Pension Expense | The components of net pension expense for our defined benefit retirement plans were as follows (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Service cost $ 0.9 $ 0.7 $ 7.1 $ 24.7 $ 24.7 $ 19.0 Interest cost 10.5 13.9 16.2 4.9 5.4 9.0 Expected return on plan assets (29.8 ) (32.9 ) (32.4 ) (15.6 ) (13.3 ) (13.4 ) Curtailment gain — — (7.2 ) — — — Settlements 6.4 0.5 0.8 0.5 (0.5 ) — Amortization of prior service cost 0.3 0.3 (3.4 ) (4.3 ) (4.2 ) (3.9 ) Amortization of unrecognized actuarial loss 8.6 7.2 19.3 2.5 1.3 2.5 Net periodic benefit (income) expense $ (3.1 ) $ (10.3 ) $ 0.4 $ 12.7 $ 13.4 $ 13.2 |
Weighted Average Actuarial Assumptions Used to Determine Net Pension Expense for Our Defined Benefit Retirement Plans | The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.04 % 3.40 % 4.38 % 0.63 % 0.73 % 1.44 % Rate of compensation increase — — 3.29 % 2.39 % 2.28 % 2.50 % Expected long-term rate of return on plan assets 6.75 % 7.75 % 7.75 % 2.09 % 2.17 % 2.14 % |
Changes in Projected Benefit Obligations | Changes in projected benefit obligations and plan assets were (in millions): For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation - beginning of year $ 516.9 $ 472.0 $ 819.3 $ 740.4 Service cost 0.9 0.7 24.7 24.7 Interest cost 10.5 13.9 4.9 5.4 Plan amendments — — — 0.2 Employee contributions — — 23.4 22.1 Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Actuarial loss 3.0 55.6 6.1 12.5 Expenses paid — — (0.2 ) (0.3 ) Settlement (14.9 ) (1.3 ) (3.0 ) (4.5 ) Translation (gain) loss — — (25.6 ) 58.6 Projected benefit obligation - end of year $ 503.1 $ 516.9 $ 807.9 $ 819.3 |
Changes in Fair Value of Plan Assets | For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Plan assets at fair market value - beginning of year $ 474.1 $ 444.9 $ 756.7 $ 665.2 Actual return on plan assets 50.5 51.4 86.6 40.0 Employer contributions 3.1 3.1 22.4 21.2 Employee contributions — — 23.4 22.1 Settlements (14.9 ) (1.3 ) (3.0 ) (4.5 ) Benefits paid (13.3 ) (24.0 ) (41.7 ) (39.8 ) Expenses paid — — (0.2 ) (0.3 ) Translation (loss) gain — — (23.0 ) 52.8 Plan assets at fair market value - end of year $ 499.5 $ 474.1 $ 821.2 $ 756.7 Funded status $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) |
Summary of Amounts Recognized in Balance Sheet | For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Amounts recognized in consolidated balance sheet: Prepaid pension $ 2.7 $ — $ 54.9 $ 20.4 Short-term accrued benefit liability (0.1 ) (0.1 ) (1.3 ) (1.3 ) Long-term accrued benefit liability (6.2 ) (42.7 ) (40.3 ) (81.7 ) Net amount recognized $ (3.6 ) $ (42.8 ) $ 13.3 $ (62.6 ) |
Weighted Average Actuarial Assumptions Used to Determine Projected Benefit Obligation for Defined Benefit Retirement Plans | The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows: For the Years Ended December 31, U.S. and Puerto Rico Foreign 2021 2020 2019 2021 2020 2019 Discount rate 2.70 % 2.70 % 3.40 % 0.73 % 0.61 % 0.74 % Rate of compensation increase — — 3.29 % 2.48 % 2.36 % 2.45 % |
Plans with Benefit Obligations in Excess of Plan Assets | Plans with projected benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Projected benefit obligation $ 468.5 $ 516.9 $ 38.8 $ 778.4 Plan assets at fair market value 462.2 474.1 8.1 709.5 |
Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets | Total accumulated benefit obligations and plans with accumulated benefit obligations in excess of plan assets were as follows (in millions): As of December 31, U.S. and Puerto Rico Foreign 2021 2020 2021 2020 Total accumulated benefit obligations $ 503.1 $ 516.9 $ 783.0 $ 801.3 Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligation 468.5 516.9 36.4 560.9 Plan assets at fair market value 462.2 474.1 8.1 508.6 |
Summary of Benefits Expected to be Paid Out | The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions): For the Years Ending December 31, U.S. and Puerto Rico Foreign 2022 $ 24.6 $ 32.8 2023 25.4 34.8 2024 25.7 33.6 2025 26.3 35.0 2026 27.0 34.7 2027-2031 133.1 175.7 |
Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value | The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions): December 31, 2021 Beginning Balance $ 145.3 Gain on assets sold 0.7 Change in fair value of assets 7.0 Net purchases and sales 11.9 Translation gain (4.3 ) Ending Balance $ 160.6 |
U.S. and Puerto Rico [Member] | |
Fair Value of Pension Plan Assets | The fair value of our U.S. and Puerto Rico pension plan assets by asset category was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 3.8 $ 3.8 $ — $ — Equity securities 342.1 — 342.1 — Intermediate fixed income securities 153.6 — 153.6 — Total $ 499.5 $ 3.8 $ 495.7 $ — As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 7.3 $ 7.3 $ — $ — Equity securities 304.1 — 304.1 — Intermediate fixed income securities 162.7 — 162.7 — Total $ 474.1 $ 7.3 $ 466.8 $ — |
Foreign Plan [Member] | |
Fair Value of Pension Plan Assets | The fair value of our foreign pension plan assets was as follows (in millions): As of December 31, 2021 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 56.6 $ 56.6 $ — $ — Equity securities 185.5 149.6 35.9 — Fixed income securities 195.5 — 195.5 — Other types of investments 223.0 — 223.0 — Real estate 160.6 — — 160.6 Total $ 821.2 $ 206.2 $ 454.4 $ 160.6 As of December 31, 2020 Fair Value Measurements at Reporting Date Using: Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and cash equivalents $ 42.7 $ 42.7 $ — $ — Equity securities 163.9 126.8 37.1 — Fixed income securities 262.5 — 262.5 — Other types of investments 142.3 — 142.3 — Real estate 145.3 — — 145.3 Total $ 756.7 $ 169.5 $ 441.9 $ 145.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Earnings (Loss) Before Income Taxes | The components of earnings (loss) from continuing operations before income taxes consisted of the following (in millions): For the Years Ended December 31, 2021 2020 2019 United States operations $ (118.8 ) $ (387.6 ) $ (126.1 ) Foreign operations 617.8 282.4 1,006.2 Total $ 499.0 $ (105.2 ) $ 880.1 |
Provision/(Benefit) for Income Taxes and Income Taxes Paid | The provision/(benefit) for income taxes and the income taxes paid consisted of the following (in millions): Current: Federal $ 44.3 $ (58.4 ) $ 86.4 State 7.2 2.7 9.0 Foreign 104.1 (79.7 ) 254.4 155.6 (135.4 ) 349.8 Deferred: Federal (83.5 ) (12.7 ) (119.2 ) State (19.4 ) (10.0 ) (4.2 ) Foreign 0.8 62.1 (464.4 ) (102.1 ) 39.4 (587.8 ) Provision (benefit) for income taxes $ 53.5 $ (96.0 ) $ (238.0 ) Net income taxes paid $ 258.4 $ 142.0 $ 183.6 |
Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate | A reconciliation of the U.S. statutory income tax rate to our effective tax rate is as follows: For the Years Ended December 31, 2021 2020 2019 U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal deduction (2.8 ) 6.6 0.7 Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits (10.3 ) 37.4 (11.6 ) Change in valuation allowance (0.5 ) 3.8 1.6 Non-deductible 1.3 (4.3 ) 0.3 Goodwill impairment — (92.0 ) — Tax rate change 0.1 5.5 0.7 Tax impact of certain significant transactions 1.1 — — Tax benefit relating to foreign derived intangible income and U.S. manufacturer’s deduction 0.4 14.2 (4.4 ) R&D tax credit (2.2 ) 4.8 (1.1 ) Share-based compensation (0.2 ) (1.0 ) (0.2 ) Net uncertain tax positions, including interest and penalties 2.9 56.9 1.8 U.S. tax reform — — 0.1 Switzerland tax reform and certain restructuring transactions — 40.9 (35.8 ) Other (0.1 ) (2.5 ) (0.1 ) Effective income tax rate 10.7 % 91.3 % (27.0 )% |
Components of Deferred Taxes | The components of deferred taxes consisted of the following (in millions): As of December 31, 2021 2020 Deferred tax assets: Inventory $ 204.2 $ 226.4 Net operating loss carryover 454.0 494.6 Tax credit carryover 79.7 75.7 Capital loss carryover 8.6 9.0 Product liability and litigation 44.4 53.0 Accrued liabilities 101.7 82.7 Share-based compensation 30.2 28.7 Accounts receivable 14.8 15.0 Foreign currency items — 57.1 Other 56.9 19.1 Total deferred tax assets 994.5 1,061.3 Less: Valuation allowances (460.1 ) (527.3 ) Total deferred tax assets after valuation allowances 534.4 534.0 Deferred tax liabilities: Fixed assets $ 117.1 $ 102.0 Intangible assets 509.7 578.9 Foreign currency items 3.5 — Other 34.0 28.1 Total deferred tax liabilities 664.3 709.0 Total net deferred income taxes $ (129.9 ) $ (175.0 ) |
Summary of Tax Credit Carryforwards | At December 31, 2021, the following net operating loss, tax credit carryovers, and capital loss carryovers are available to reduce future federal, state and foreign taxable earnings (in millions): Expiration Period: Net Tax credit Capital 1-5 $ 2.4 $ 15.1 $ 1.7 6-10 52.4 55.5 — 11+ years 276.9 1.6 — Indefinite 122.3 7.5 6.9 454.0 79.7 8.6 Valuation allowances $ 391.6 $ 46.7 $ 8.6 |
Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in millions): For the Years Ended December 31, 2021 2020 2019 Balance at January 1 $ 619.4 $ 741.8 $ 685.2 Increases related to prior periods 11.5 75.3 24.7 Decreases related to prior periods (12.7 ) (158.3 ) (35.6 ) Increases related to current period 7.3 3.4 133.2 Decreases related to settlements with taxing authorities (65.1 ) (14.6 ) (60.2 ) Decreases related to lapse of statute of limitations (1.8 ) (28.2 ) (5.5 ) Balance at December 31 $ 558.6 $ 619.4 $ 741.8 Amounts impacting effective tax rate, if recognized balance at December 31 $ 426.4 $ 473.9 $ 599.2 |
Capital Stock and Earnings pe_2
Capital Stock and Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Shares for Basic and Diluted Shares Computations | The following is a reconciliation of weighted average shares for the basic and diluted share computations (in millions): For the Years Ended December 31, 2021 2020 2019 Weighted average shares outstanding for basic net earnings per share 208.6 207.0 205.1 Effect of dilutive stock options and other equity awards 1.8 — 1.6 Weighted average shares outstanding for diluted net earnings per share 210.4 207.0 206.7 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Net Sales and Other Information by Segment | Net sales and other information by segment is as follows (in millions): Net Sales Operating Profit (Loss) Depreciation and Amortization Year Ended December 31, Year Ended December 31, Year Ended December 31, 2021 2020 2019 2021 2020 2019 2021 2020 2019 Americas $ 4,102.1 $ 3,699.5 $ 4,148.8 $ 1,709.3 $ 1,528.2 $ 1,831.8 $ 143.1 $ 135.6 $ 126.6 EMEA 1,477.2 1,237.3 1,554.8 380.3 303.0 478.5 71.4 73.9 71.9 Asia Pacific 1,248.0 1,190.7 1,257.0 401.3 395.4 447.9 66.7 63.0 57.7 Total $ 6,827.3 $ 6,127.5 $ 6,960.6 Corporate Functions (588.6 ) (695.6 ) (698.2 ) 126.9 113.8 113.9 Inventory and manufacturing-related charges (5.1 ) (55.0 ) (59.3 ) — — — Intangible asset amortization (529.5 ) (512.1 ) (500.9 ) 529.5 512.1 500.9 Goodwill and intangible asset impairment (16.3 ) (503.0 ) (70.1 ) — — — Restructuring and other cost reduction initiatives (125.7 ) (107.2 ) (48.2 ) — — — Quality remediation (52.8 ) (51.1 ) (87.2 ) — — — Acquisition, integration, divestiture and related (3.1 ) (11.4 ) 0.5 — — — Litigation (192.9 ) (159.8 ) (65.0 ) — — — Litigation settlement gain — — 23.5 — — — European Union Medical Device Regulation (40.8 ) (22.5 ) (27.0 ) — — — Certain R&D agreements (65.0 ) — — — — — Other charges (10.8 ) (25.8 ) (114.3 ) — — — Total $ 860.3 $ 83.1 $ 1,112.0 $ 937.6 $ 898.4 $ 871.0 |
Disclosure on Geographic Areas, Long-Lived Assets | We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions): As of December 31, 2021 2020 United States $ 1,084.2 $ 1,122.1 Other countries 752.4 741.7 Property, plant and equipment, net $ 1,836.6 $ 1,863.8 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Information on Leases | Information on our leases is as follows ($ in millions): For the Years Ended December 31, 2021 2020 2019 Lease cost $ 71.1 $ 68.8 $ 61.8 Cash paid for leases recognized in operating cash flows $ 70.5 $ 66.6 $ 60.0 Right-of-use $ 88.8 $ 74.2 $ 50.9 As of December 31, 2021 2020 Right-of-use Other asse $ 219.4 $ 215.1 Lease liabilities recognized in Other current liabilities $ 56.7 $ 61.0 Lease liabilities recognized in Other long-term liabilities $ 174.9 $ 165.2 Weighted-average remaining lease term 6.1 years 5.8 years Weighted-average discount rate 1.8 % 2.1 % |
Schedule of Future Minimum Lease Payments | Our future minimum lease payments as of December 31, 2021 were (in millions): For the Years Ending December 31, 2022 $ 59.9 2023 46.9 2024 35.9 2025 26.5 2026 21.2 Thereafter 54.8 Total 245.2 Less imputed interest 13.6 Total $ 231.6 |
Business - Additional Informati
Business - Additional Information (Details) | Mar. 01, 2022 |
Planned Spinoff [Member] | Board of Directors [Member] | Common Stock [Member] | |
Spin-off percentage | 80.30% |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | |
Business And Significant Accounting Policies [Line Items] | |||||
Expenses incurred related to shipping and handling of products | $ 2,843.4 | $ 2,712.7 | $ 2,810.1 | ||
Employees dedication percentage for dedicated project personnel expenses | 100% | ||||
Allowance for doubtful accounts | $ 60.1 | 58.6 | |||
Cumulative adjustment to retained earnings | $ 12,666.4 | 12,199.4 | 12,392.8 | $ 11,276.1 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Cumulative adjustment to retained earnings | $ 3.1 | ||||
Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Useful life of finite lived intangibles | 1 year | ||||
Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Useful life of finite lived intangibles | 20 years | ||||
Building and Building Improvements [Member] | Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 10 years | ||||
Building and Building Improvements [Member] | Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 40 years | ||||
Machinery and Equipment [Member] | Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 3 years | ||||
Machinery and Equipment [Member] | Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 8 years | ||||
Capitalized Software Costs [Member] | Minimum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 3 years | ||||
Capitalized Software Costs [Member] | Maximum [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 15 years | ||||
Instruments [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Average estimated useful life | 5 years | ||||
Shipping and Handling [Member] | |||||
Business And Significant Accounting Policies [Line Items] | |||||
Expenses incurred related to shipping and handling of products | $ 255.4 | $ 235.5 | $ 257 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Details of Earnings (Loss) from Discontinued Operations Included in Condensed Consolidated Statements of Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Net sales | $ 1,008.8 | $ 896.9 | $ 1,021.6 |
Cost of products sold, excluding intangible asset amortization | 380.6 | 304 | 308.9 |
Intangible asset amortization | 86.2 | 85.5 | 83.4 |
Research and development | 61.3 | 49 | 55.2 |
Selling, general and administrative | 480.5 | 465 | 533.7 |
Goodwill and intangible asset impairment | 142 | ||
Restructuring and other cost reduction initiatives | 3.3 | 9.7 | 1.8 |
Quality remediation | 0.2 | 0.2 | 0.4 |
Acquisition, integration, divestiture and related | 76.8 | 12.4 | 12.7 |
Other expense (income), net | 0.5 | (1.6) | (0.2) |
(Loss) Earnings from discontinued operations before income taxes | (80.6) | (169.3) | 25.7 |
(Benefit) Provision for income taxes from discontinued operations | (37.2) | (41.1) | 12.3 |
(Loss) Earnings from discontinued operations, net of tax | $ (43.4) | $ (128.2) | $ 13.4 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Details of Assets and Liabilities of Discontinued Operation (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | ||
Cash and cash equivalents | $ 100.4 | $ 27.4 |
Accounts receivable, less allowance for credit losses | 145.3 | 174.6 |
Inventories | 246.5 | 276.5 |
Prepaid expenses and other current assets | 9.4 | 9.7 |
Total Current Assets of Discontinued Operations | 501.6 | 488.2 |
Property, plant and equipment, net | 179.9 | 183.9 |
Goodwill | 272.8 | 278.7 |
Intangible assets, net | 766.2 | 891 |
Other assets | 57.9 | 63.3 |
Total Noncurrent Assets of Discontinued Operations | 1,276.8 | 1,416.9 |
Accounts payable | 44.7 | 48.1 |
Income taxes payable | 3.1 | 3.8 |
Other current liabilities | 129.4 | 155.6 |
Total Current Liabilities of Discontinued Operations | 177.2 | 207.5 |
Deferred income taxes, net | 107.1 | 164 |
Other long-term liabilities | 61.3 | 62.9 |
Total Noncurrent Liabilities of Discontinued Operations | $ 168.4 | $ 226.9 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 01, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Percentage of outstanding common stock distributed | 80.30% | |||
Percentage of outstanding common shares retained | 19.70% | |||
Dividend Paid On Separation | $ 540.6 | |||
Debt Instrument Carrying Amount | $ 1,982.7 | |||
Revolving loans [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
ZimVie revolving credit agreement | 175 | |||
Term Loan [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
ZimVie term loan credit agreement | $ 595 | |||
Term Loan [Member] | Maximum [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
ZimVie term loan credit agreement | 595 | |||
3.150% Senior Notes Due 2022 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Debt Instrument Carrying Amount | $ 750 | |||
Long term debt bearing fixed interest rate percentage | 3.15% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) Segment | |
Revenue Recognition [Abstract] | |
Percentage of sales through direct channel | 85% |
Period terms for payment | 90 days |
Percentage of sales through indirect channel | 15% |
Contract assets | $ 0 |
Contract liabilities | 0 |
Future performance obligations | $ 0 |
Number of geographic segments | Segment | 3 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Net Sales by Geography (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales Information [Line Items] | |||
Net Sales | $ 6,827.3 | $ 6,127.5 | $ 6,960.6 |
Americas [Member] | |||
Sales Information [Line Items] | |||
Net Sales | 4,102.1 | 3,699.5 | 4,148.8 |
EMEA [Member] | |||
Sales Information [Line Items] | |||
Net Sales | 1,477.2 | 1,237.3 | 1,554.8 |
Asia Pacific [Member] | |||
Sales Information [Line Items] | |||
Net Sales | $ 1,248 | $ 1,190.7 | $ 1,257 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Net Sales by Product Category (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | $ 6,827.3 | $ 6,127.5 | $ 6,960.6 |
Knees [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 2,647.9 | 2,378.3 | 2,780.6 |
Hips [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 1,856.1 | 1,750.5 | 1,931.5 |
S.E.T [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | 1,727.8 | 1,525.6 | 1,652.5 |
Other [Member] | |||
Entity Wide Information Revenue From External Customer [Line Items] | |||
Net Sales | $ 595.5 | $ 473.1 | $ 596 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
2021 Restructuring Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 240 | |
Reduction in annual pre-tax operating expenses | $ 210 | |
Restructuring program benefits realized period | 2024 | |
2019 Restructuring Plan [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 360 | |
Restructuring program benefits realized period | 2023 | |
2019 Restructuring Plan [Member] | Minimum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | $ 335 | |
Reduction in annual pre-tax operating expenses | 180 | |
2019 Restructuring Plan [Member] | Maximum [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Pre-tax restructuring charges | 385 | |
Reduction in annual pre-tax operating expenses | $ 280 |
Restructuring - Summary of Liab
Restructuring - Summary of Liabilities Recognized Related to Restructuring Plan (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
2021 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | $ 32.1 | ||
Ending Balance | 32.1 | ||
Expense estimated to be recognized for the Restructuring Plan | 240 | ||
2021 Restructuring Plan [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 19.5 | ||
Ending Balance | 19.5 | ||
Expense estimated to be recognized for the Restructuring Plan | 62 | ||
2021 Restructuring Plan [Member] | Contract Termination [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 2.3 | ||
Ending Balance | 2.3 | ||
Expense estimated to be recognized for the Restructuring Plan | 167 | ||
2021 Restructuring Plan [Member] | Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 10.3 | ||
Ending Balance | 10.3 | ||
Expense estimated to be recognized for the Restructuring Plan | 11 | ||
2019 Restructuring Plan [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 75 | $ 98.5 | $ 34.5 |
Cash payments | (105.8) | (62.5) | (8.1) |
Foreign currency exchange rate changes | (1.7) | 1.4 | |
Ending Balance | 31.3 | 63.8 | 26.4 |
Expense estimated to be recognized for the Restructuring Plan | 360 | ||
Expense incurred since the start of the 2019 Restructuring Plan | 208 | ||
2019 Restructuring Plan [Member] | Employee Termination Benefits [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 7.3 | 49.6 | 22.3 |
Cash payments | (28.7) | (35.5) | |
Foreign currency exchange rate changes | (1.6) | 1.4 | |
Ending Balance | 14.8 | 37.8 | 22.3 |
Expense estimated to be recognized for the Restructuring Plan | 175 | ||
Expense incurred since the start of the 2019 Restructuring Plan | 79.2 | ||
2019 Restructuring Plan [Member] | Contract Termination [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 18.5 | 15.8 | |
Cash payments | (12.9) | (4.9) | |
Ending Balance | 16.5 | 10.9 | |
Expense estimated to be recognized for the Restructuring Plan | 40 | ||
Expense incurred since the start of the 2019 Restructuring Plan | 34.3 | ||
2019 Restructuring Plan [Member] | Other Restructuring [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Additions | 49.2 | 33.1 | 12.2 |
Cash payments | (64.2) | (22.1) | (8.1) |
Foreign currency exchange rate changes | (0.1) | 0 | |
Ending Balance | 0 | $ 15.1 | $ 4.1 |
Expense estimated to be recognized for the Restructuring Plan | 145 | ||
Expense incurred since the start of the 2019 Restructuring Plan | $ 94.5 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |||
Total expense, pre-tax | $ 76 | $ 73.8 | $ 77.2 |
Tax benefit related to awards | 17.2 | 15.6 | 19.7 |
Total expense, net of tax | $ 58.8 | $ 58.2 | $ 57.5 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 USD ($) Year shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum contractual life | 10 years | ||
Unrecognized share-based payment expense | $ | $ 55.2 | ||
Weighted average period expected to be recognized | 2 years 6 months | ||
Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Requisite service period for stock award | 1 year | ||
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period for stock award | 4 years | ||
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period expected to be recognized | 2 years 2 months 12 days | ||
Estimated outstanding RSU | shares | 682,437 | ||
Unrecognized share-based payment expense related to nonvested stock options | $ | $ 57.9 | ||
Fair value of RSUs vesting during the year | $ | $ 40 | $ 33.2 | $ 26.3 |
RSUs [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Requisite service period for stock award | 1 year | ||
RSUs [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Requisite service period for stock award | 4 years | ||
2009 Plan and the Stock Plan for Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity compensation plans | Year | 2 | ||
Number of common stock registered for award | shares | 49,900,000 | ||
Shares available for future grants | shares | 10,400,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Payment Arrangement [Abstract] | |
Outstanding stock options, Beginning balance | shares | 7,423 |
Options granted | shares | 1,278 |
Options exercised | shares | (871) |
Options forfeited | shares | (219) |
Options expired | shares | (64) |
Outstanding stock options, Ending Balance | shares | 7,547 |
Number of outstanding options, Vested or expected to vest | shares | 7,291 |
Exercisable, Stock options | shares | 4,805 |
Outstanding Weighted average exercise price, Beginning Balance | $ / shares | $ 116.67 |
Options granted, Weighted average exercise price | $ / shares | 163.47 |
Options exercised, Weighted average exercise price | $ / shares | 99.92 |
Options forfeited, Weighted average exercise price | $ / shares | 150.1 |
Options expired, Weighted average exercise price | $ / shares | 149.02 |
Outstanding Weighted average exercise price, ending Balance | $ / shares | 125.32 |
Outstanding Weighted average exercise price, Vested or expected to vest | $ / shares | 124.52 |
Exercisable, Weighted average exercise price | $ / shares | $ 111.42 |
Weighted Average Remaining Contractual Life, Outstanding at December 31, 2021 | 6 years |
Weighted Average Remaining Contractual Life, Vested or expected to vest as of December 31, 2021 | 6 years |
Weighted Average Remaining Contractual Life, Exercisable at December 31, 2021 | 4 years 9 months 18 days |
Intrinsic Value, Outstanding at December 31, 2021 | $ | $ 90.5 |
Intrinsic Value, Vested or expected to vest as of December 31, 2021 | $ | 90 |
Intrinsic Value, Exercisable at December 31, 2021 | $ | $ 85.6 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Fair Value for Stock Options Granted (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Dividend yield | 0.60% | 0.60% | 0.80% |
Volatility | 30.30% | 22.30% | 22.10% |
Risk-free interest rate | 0.70% | 1.30% | 2.40% |
Expected life (years) | 5 years 4 months 24 days | 5 years | 5 years 6 months |
Weighted average fair value of options granted | $ 43.91 | $ 31.65 | $ 28.68 |
Intrinsic value of options exercised (in millions) | $ 54.6 | $ 50.1 | $ 76.8 |
Tax benefit of options exercised (in millions) | $ 10.8 | $ 9.6 | $ 15.8 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Nonvested RSU Activity (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2021 $ / shares shares | |
Share-based Payment Arrangement [Abstract] | |
RSUs, Outstanding Beginning Balance | shares | 1,070 |
RSUs, Granted | shares | 556 |
RSUs, Vested | shares | (239) |
RSUs, Forfeited | shares | (348) |
RSUs, Outstanding Ending Balance | shares | 1,039 |
Weighted Average Grant Date Fair Value, Outstanding Beginning Balance | $ / shares | $ 129.65 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 171.37 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 119.32 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 122.9 |
Weighted Average Grant Date Fair Value, Outstanding Ending Balance | $ / shares | $ 146.58 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 1,729.2 | $ 1,712.4 |
Work in progress | 175.5 | 200.1 |
Raw materials | 243.3 | 261.7 |
Inventories | $ 2,148 | $ 2,174.2 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Amounts charged for excess obsolete inventory, including certain product lines intend to discontinue | $ 117.3 | $ 230 | $ 197 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 6,137.7 | $ 5,733.1 |
Accumulated depreciation | (4,301.1) | (3,869.3) |
Property, plant and equipment, net | 1,836.6 | 1,863.8 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 20.1 | 20.4 |
Building And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 2,086 | 1,973.9 |
Capitalized Software Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 454.9 | 425.9 |
Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | 3,460.4 | 3,191 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Gross | $ 116.3 | $ 121.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 408.1 | $ 386.3 | $ 370.1 |
Property plant and equipment included in accounts payable | $ 10.3 | $ 22 |
Transfers of Financial Assets -
Transfers of Financial Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |||
Aggregate face value of receivables sold | $ 1,269.2 | $ 2,989.8 | $ 153.4 |
Cash proceeds from receivables | 1,267.6 | 2,987.6 | 152.3 |
Proceeds from customers | 1,258.2 | 2,749.6 | |
Repurchase of accounts receivables sold | $ 139.5 | $ 166 | |
Proceeds from other current liabilities | $ 0 |
Fair Value Measurements of As_3
Fair Value Measurements of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | $ 76.5 | $ 1.4 |
Contingent payments related to acquisitions | 35.6 | 38.2 |
Total Liabilities | 51.3 | 173.2 |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets | 76.5 | 1.4 |
Total Liabilities | 15.7 | 135 |
Fair Value Inputs Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent payments related to acquisitions | 35.6 | 38.2 |
Total Liabilities | 35.6 | 38.2 |
Foreign Exchange Forward Contracts [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 52.4 | 0.5 |
Derivatives, current and long-term | 0.3 | 48.5 |
Foreign Exchange Forward Contracts [Member] | Derivatives Not Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 1.1 | 0.9 |
Derivatives, current and long-term | 1.5 | 3.2 |
Foreign Exchange Forward Contracts [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 52.4 | 0.5 |
Derivatives, current and long-term | 0.3 | 48.5 |
Foreign Exchange Forward Contracts [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Not Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 1.1 | 0.9 |
Derivatives, current and long-term | 1.5 | 3.2 |
Cross Currency Interest Rate Swaps [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 23 | |
Derivatives, current and long-term | 3.4 | 83.3 |
Cross Currency Interest Rate Swaps [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 23 | |
Derivatives, current and long-term | 3.4 | $ 83.3 |
Interest Rate Swaps [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | 10.5 | |
Interest Rate Swaps [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | Derivatives Designated as Hedges [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives, current and long-term | $ 10.5 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis (Detail) - Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] - Fair Value, Measurements, Recurring [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Beginning balance December 31, 2020 | $ 38.2 |
Change in estimates | 7 |
Settlements | (9.5) |
Foreign currency impact | (0.1) |
Ending balance December 31, 2021 | $ 35.6 |
Acquisitions-Additional Informa
Acquisitions-Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Guaranteed deferred business combination payments | $ 145 |
2020 Acquisitions [Member] | |
Business Acquisition [Line Items] | |
Cash payments to acquire businesses | 235.7 |
Guaranteed deferred business combination payments | 145 |
Contingent consideration | 23 |
Goodwill amount deductible for tax purpose | $ 0 |
2020 Acquisitions [Member] | Technology [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 13 years |
2020 Acquisitions [Member] | Trademarks and trade names [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 12 years |
2020 Acquisitions [Member] | Customer relationships [Member] | |
Business Acquisition [Line Items] | |
Weighted average amortization period of intangible assets | 15 years |
Acquisitions - Summary of Aggre
Acquisitions - Summary of Aggregate Preliminary Estimates of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 8,919.4 | $ 8,983.1 | $ 9,197.1 |
2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | 30.5 | ||
Goodwill | 172.6 | ||
Other assets | 5.1 | ||
Total assets acquired | 450.3 | ||
Current liabilities | 4.6 | ||
Deferred income taxes | 42 | ||
Total liabilities assumed | 46.6 | ||
Net assets acquired | 403.7 | ||
Technology [Member] | 2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization: | 147.9 | ||
Trademarks and trade names [Member] | 2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization: | 1.5 | ||
Customer relationships [Member] | 2020 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization: | $ 92.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 10,027.8 | $ 9,771.8 |
Accumulated impairment losses, Beginning Balance | (1,044.7) | (574.7) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 8,983.1 | 9,197.1 |
Purchase accounting adjustments | 22.9 | |
Other acquisitions | 2.4 | 149.6 |
Currency translation | (89) | 106.4 |
Impairment | (470) | |
Goodwill, Ending Balance | 9,964.1 | 10,027.8 |
Accumulated impairment losses, Ending Balance | (1,044.7) | (1,044.7) |
Goodwill, net of accumulated impairment losses, Ending Balance | 8,919.4 | 8,983.1 |
Americas [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 8,089.1 | 7,884.6 |
Accumulated impairment losses, Beginning Balance | (7.7) | (7.7) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 8,081.4 | 7,876.9 |
Purchase accounting adjustments | 15.4 | |
Other acquisitions | 2.4 | 129.8 |
Currency translation | (61.1) | 74.7 |
Goodwill, Ending Balance | 8,045.8 | 8,089.1 |
Accumulated impairment losses, Ending Balance | (7.7) | (7.7) |
Goodwill, net of accumulated impairment losses, Ending Balance | 8,038.1 | 8,081.4 |
EMEA [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 1,362.9 | 1,333.8 |
Accumulated impairment losses, Beginning Balance | (1,037) | (567) |
Goodwill, net of accumulated impairment losses, Beginning Balance | 325.9 | 766.8 |
Purchase accounting adjustments | 5.2 | |
Other acquisitions | 10.9 | |
Currency translation | (13.8) | 18.2 |
Impairment | (470) | |
Goodwill, Ending Balance | 1,354.3 | 1,362.9 |
Accumulated impairment losses, Ending Balance | (1,037) | (1,037) |
Goodwill, net of accumulated impairment losses, Ending Balance | 317.3 | 325.9 |
Asia Pacific [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 575.8 | 553.4 |
Goodwill, net of accumulated impairment losses, Beginning Balance | 575.8 | 553.4 |
Purchase accounting adjustments | 2.3 | |
Other acquisitions | 8.9 | |
Currency translation | (14.1) | 13.5 |
Goodwill, Ending Balance | 564 | 575.8 |
Goodwill, net of accumulated impairment losses, Ending Balance | $ 564 | $ 575.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Reporting units with goodwill assigned to them | 2 | |||
Impairment | $ 470 | |||
Goodwill | $ 8,919.4 | 8,983.1 | $ 9,197.1 | |
In Process Research and Development (IPR&D) [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible asset impairment | 16.3 | 33 | 70.1 | |
EMEA [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Impairment | 470 | |||
Goodwill | 317.3 | $ 325.9 | $ 766.8 | |
America CMFT [Member] | ||||
Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Reporting units with goodwill assigned to them | 2 | |||
Goodwill | $ 290.9 | |||
Percentage of fair value in excess of carrying amount | 5% |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Components of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | $ 9,080.4 | $ 9,194.3 |
Accumulated amortization | (4,016.8) | (3,522.1) |
Gross carrying amount | 470 | 492.2 |
Total identifiable intangible assets | 5,533.6 | 6,164.4 |
Technology [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 2,930.7 | 2,992 |
Accumulated amortization | (1,537.1) | (1,372.4) |
Total identifiable intangible assets | 1,393.6 | 1,619.6 |
Intellectual Property Rights [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 381.9 | 381.9 |
Accumulated amortization | (230.2) | (210.3) |
Total identifiable intangible assets | 151.7 | 171.6 |
Trademarks and trade names [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 522.1 | 527.1 |
Accumulated amortization | (230.7) | (202.3) |
Gross carrying amount | 457 | 462.7 |
Total identifiable intangible assets | 748.4 | 787.5 |
Customer relationships [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 5,109.1 | 5,194.7 |
Accumulated amortization | (1,939.5) | (1,670.8) |
Total identifiable intangible assets | 3,169.6 | 3,523.9 |
In Process Research and Development (IPR&D) [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 13 | 29.5 |
Total identifiable intangible assets | 13 | 29.5 |
Other [Member] | ||
Identifiable Intangible Assets Acquired [Line Items] | ||
Gross carrying amount | 136.6 | 98.6 |
Accumulated amortization | (79.3) | (66.3) |
Total identifiable intangible assets | $ 57.3 | $ 32.3 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Annual Amortization Expense Based on Intangible Assets Recognized (Detail) $ in Millions | Dec. 31, 2021 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 521.5 |
2023 | 515.2 |
2024 | 506.4 |
2025 | 459.9 |
2026 | $ 408.3 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other current liabilities: | ||
License and service agreements | $ 133.9 | $ 147.1 |
Salaries, wages and benefits | 317.6 | 282.4 |
Litigation and product liability | 199.9 | 150.3 |
Deferred business combination payments | 145 | |
Accrued liabilities | 665.7 | 787 |
Total other current liabilities | $ 1,317.1 | $ 1,511.8 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Detail) $ in Millions, € in Billions, ¥ in Billions | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 JPY (¥) | Nov. 24, 2021 USD ($) | Dec. 31, 2020 USD ($) | Mar. 20, 2020 USD ($) | Mar. 19, 2018 USD ($) |
Current portion of long-term debt | |||||||
Current portion of long-term debt | $ 1,605.1 | $ 500 | |||||
Long-term debt | |||||||
Senior Notes due | 6,800 | ||||||
Debt discount and issuance costs | (36.4) | (48.2) | |||||
Adjustment related to interest rate swaps | (10.5) | 3.1 | |||||
Total long-term debt | 5,463.7 | 7,626.5 | |||||
Senior Notes [Member] | Due in 2021 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | $ 450 | ||||||
Senior Notes [Member] | Due in 2026 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | $ 600 | ||||||
Senior Notes [Member] | 3.375% [Member] | Due in 2021 [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 300 | ||||||
Senior Notes [Member] | 3.700% [Member] | Due in 2023 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 86.3 | 300 | |||||
Senior Notes [Member] | 3.150% [Member] | Two Thousand Twenty Two | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 750 | ||||||
Long-term debt | |||||||
Senior Notes due | 750 | ||||||
Senior Notes [Member] | 1.450% [Member] | Due in 2024 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 850 | $ 850 | |||||
Senior Notes [Member] | 3.550% [Member] | Due in 2025 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 863 | 2,000 | |||||
Senior Notes [Member] | 3.550% [Member] | Due in 2030 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 257.5 | 900 | $ 900 | ||||
Senior Notes [Member] | 3.050% [Member] | Due in 2026 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 600 | 600 | |||||
Senior Notes [Member] | 2.600% [Member] | Due in 2031 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 750 | $ 750 | |||||
Senior Notes [Member] | 4.250% [Member] | Due in 2035 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 253.4 | 253.4 | |||||
Senior Notes [Member] | 5.750% [Member] | Due in 2039 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 317.8 | 317.8 | |||||
Senior Notes [Member] | 4.450% [Member] | Due in 2045 [Member] | |||||||
Long-term debt | |||||||
Senior Notes due | 395.4 | 395.4 | |||||
Euro Notes | |||||||
Long-term debt | |||||||
Term loan | € | € 1.5 | ||||||
Euro Notes | 1.414% [Member] | Two Thousand Twenty Two | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 568.6 | ||||||
Long-term debt | |||||||
Term loan | 611.8 | ||||||
Euro Notes | 2.425% [Member] | Due in 2026 [Member] | |||||||
Long-term debt | |||||||
Term loan | 568.6 | 611.8 | |||||
Euro Notes | 1.164% [Member] | Due in 2027 [Member] | |||||||
Long-term debt | |||||||
Term loan | 568.6 | 611.8 | |||||
Japan Term Loan A [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | 101.6 | ||||||
Long-term debt | |||||||
Term loan | ¥ 11.7 | 113.3 | |||||
Japan Term Loan B [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | $ 184.9 | ||||||
Long-term debt | |||||||
Term loan | ¥ 21.3 | 206.3 | |||||
Floating Rate Notes [Member] | Due in 2021 [Member] | |||||||
Current portion of long-term debt | |||||||
Current portion of long-term debt | $ 200 |
Debt - Summary of Debt Instru_2
Debt - Summary of Debt Instruments (Parenthetical) (Detail) | Dec. 31, 2021 | Nov. 24, 2021 | Dec. 31, 2020 | Mar. 20, 2020 |
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.45% | |||
Due in 2026 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.05% | |||
3.375% [Member] | Due in 2021 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.375% | 3.375% | ||
1.414% [Member] | Two Thousand Twenty Two | Euro Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.414% | 1.414% | ||
3.150% [Member] | Two Thousand Twenty Two | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.15% | 3.15% | ||
1.450% [Member] | Due in 2024 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.45% | 1.45% | ||
3.700% [Member] | Due in 2023 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.70% | 3.70% | ||
3.550% [Member] | Due in 2025 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.55% | 3.55% | ||
3.550% [Member] | Due in 2030 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.55% | 3.55% | 3.55% | |
2.600% [Member] | Due in 2031 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.60% | 2.60% | ||
4.450% [Member] | Due in 2045 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.45% | 4.45% | ||
4.250% [Member] | Due in 2035 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.25% | 4.25% | ||
5.750% [Member] | Due in 2039 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.75% | 5.75% | ||
2.425% [Member] | Due in 2026 [Member] | Euro Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.425% | 2.425% | ||
1.164% [Member] | Due in 2027 [Member] | Euro Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.164% | 1.164% | ||
3.050% [Member] | Due in 2026 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.05% | 3.05% |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Billions, ¥ in Billions | 1 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2022 | Aug. 20, 2021 USD ($) | Apr. 01, 2020 USD ($) | Mar. 20, 2020 USD ($) | Nov. 24, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 JPY (¥) | Sep. 18, 2020 USD ($) | Mar. 19, 2018 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Debt, long-term and short-term, combined amount | $ 7,100,000,000 | |||||||||||
Aggregate principal amount of Senior Notes | 6,800,000,000 | |||||||||||
Other debt and fair value adjustments, total | 10,500,000 | |||||||||||
Debt discount and issuance costs | $ 36,400,000 | $ 48,200,000 | ||||||||||
Redemption price percent | 100% | 100% | 100% | |||||||||
Proceeds from senior notes | $ 1,599,800,000 | $ 1,599,800,000 | 1,497,100,000 | $ 549,200,000 | ||||||||
Loss on early extinguishment of debt | 165,100,000 | $ 0 | 0 | |||||||||
Debt re-acquisition price | 2,154,800,000 | |||||||||||
Long-term debt, carrying value | 1,982,700,000 | |||||||||||
Debt tender fees | 5,000,000 | |||||||||||
Gain on reverse treasury lock | 12,000,000 | |||||||||||
Estimated fair value | $ 7,216,400,000 | |||||||||||
Weighted average interest rate for all borrowings, long-term debt | 2.80% | 3% | 2.80% | 2.80% | ||||||||
Interest paid on Debt | $ 219,000,000 | $ 193,100,000 | $ 226,900,000 | |||||||||
Two Thousand Twenty One Five Year Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Two Thousand Twenty One Five Year Credit Agreement | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 4.50% | 4.50% | 4.50% | |||||||||
Consolidated EBITDA ratio thereafter | 5% | 5% | 5% | |||||||||
Two Thousand Twenty One Five Year Credit Agreement | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 1% | 1% | 1% | |||||||||
Consolidated EBITDA ratio thereafter | 1% | 1% | 1% | |||||||||
2021 364-Revolving Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Aug. 19, 2022 | |||||||||||
Principal amount, unsecured credit facility | $ 1,000,000,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
2021 364-Revolving Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 4.50% | 4.50% | 4.50% | |||||||||
Consolidated EBITDA ratio thereafter | 5% | 5% | 5% | |||||||||
2021 364-Revolving Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated EBITDA ratio | 1% | 1% | 1% | |||||||||
Consolidated EBITDA ratio thereafter | 1% | 1% | 1% | |||||||||
September 2020 Credit Agreement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount, unsecured credit facility | $ 1,000,000,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Euro Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | € | € 1.5 | |||||||||||
Japan Term Loan A [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | 113,300,000 | ¥ 11.7 | ||||||||||
Maturity date of debt instrument | Sep. 27, 2022 | |||||||||||
Japan Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term loan | 206,300,000 | ¥ 21.3 | ||||||||||
Maturity date of debt instrument | Sep. 27, 2022 | |||||||||||
Floating Rate Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | $ 200,000,000 | |||||||||||
Floating Rate Notes [Member] | Due in 2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | 200,000,000 | |||||||||||
Senior Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | $ 300,000,000 | |||||||||||
Interest rate | 4.45% | 4.45% | 4.45% | |||||||||
Senior Notes [Member] | Due in 2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 450,000,000 | |||||||||||
Repayments of term loan | $ 250,000,000 | |||||||||||
Senior Notes [Member] | Due in 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 600,000,000 | |||||||||||
Maturity date of debt instrument | Jan. 15, 2026 | |||||||||||
Interest rate | 3.05% | |||||||||||
Senior Notes [Member] | 3.375% [Member] | Due in 2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of term loan | $ 300,000,000 | |||||||||||
Interest rate | 3.375% | 3.375% | 3.375% | 3.375% | ||||||||
Senior Notes [Member] | 1.450% [Member] | Due in 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 850,000,000 | $ 850,000,000 | ||||||||||
Maturity date of debt instrument | Nov. 22, 2024 | |||||||||||
Interest rate | 1.45% | 1.45% | 1.45% | 1.45% | ||||||||
Senior Notes [Member] | 2.600% [Member] | Due in 2031 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 750,000,000 | $ 750,000,000 | ||||||||||
Maturity date of debt instrument | Nov. 24, 2031 | |||||||||||
Interest rate | 2.60% | 2.60% | 2.60% | 2.60% | ||||||||
Senior Notes [Member] | 3.700% [Member] | Due in 2023 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 86,300,000 | $ 300,000,000 | ||||||||||
Interest rate | 3.70% | 3.70% | 3.70% | 3.70% | ||||||||
Notes tendered, principal amount | $ 213,700,000 | |||||||||||
Senior Notes [Member] | 3.550% [Member] | Due in 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 863,000,000 | $ 2,000,000,000 | ||||||||||
Interest rate | 3.55% | 3.55% | 3.55% | 3.55% | ||||||||
Notes tendered, principal amount | $ 1,137,000,000 | |||||||||||
Senior Notes [Member] | 3.550% [Member] | Due in 2030 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount of Senior Notes | $ 900,000,000 | $ 257,500,000 | $ 900,000,000 | |||||||||
Maturity date of debt instrument | Mar. 20, 2030 | |||||||||||
Interest rate | 3.55% | 3.55% | 3.55% | 3.55% | 3.55% | |||||||
Notes tendered, principal amount | $ 642,500,000 | |||||||||||
Senior Notes [Member] | 2.700% [Member] | Due in 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Apr. 01, 2020 | |||||||||||
Repayments of term loan | $ 1,500,000,000 | |||||||||||
Interest rate | 2.70% | |||||||||||
Multi Currency Revolving Facility | Two Thousand Twenty One Five Year Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maturity date of debt instrument | Aug. 20, 2026 | |||||||||||
Principal amount, unsecured credit facility | $ 1,500,000,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Uncommitted incremental feature | 500,000,000 | |||||||||||
Multi Currency Revolving Facility | Two Thousand Nineteen Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount, unsecured credit facility | $ 1,500,000,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Five Year Revolving Facility | Two Thousand Twenty One Five Year Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowings | 0 | |||||||||||
Japan Term Loan A and Japan Term Loan B [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 286,200,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in Components of Accumulated Other Comprehensive Income, Net of Tax (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | $ 12,194.2 |
Stockholders equity, ending balance | 12,660.7 |
Foreign Currency Translation [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (7.2) |
AOCI before reclassifications | (99.9) |
Stockholders equity, ending balance | (107.1) |
Defined Benefit Plan Items [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (235) |
AOCI before reclassifications | 73.5 |
Reclassifications to statements of earnings | 4.9 |
Stockholders equity, ending balance | (156.6) |
Total AOCI [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (297.8) |
AOCI before reclassifications | 60 |
Reclassifications to statements of earnings | 6.2 |
Stockholders equity, ending balance | (231.6) |
Cash Flow Hedges [Member] | |
Other Comprehensive Income Loss [Line Items] | |
Stockholders equity, beginning balance | (55.6) |
AOCI before reclassifications | 86.4 |
Reclassifications to statements of earnings | 1.3 |
Stockholders equity, ending balance | $ 32.1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification Adjustments from Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income Loss [Line Items] | |||
Cost of products sold | $ (1,960.4) | $ (1,824.3) | $ (1,943.7) |
Interest expense, net | (208.4) | (212.1) | (227) |
Earnings (loss) from continuing operations before income taxes | 499 | (105.2) | 880.1 |
Provision (benefit) for income taxes | 53.5 | (96) | (238) |
Other income (expense), net | 12.2 | 23.8 | (4.9) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Net of tax | (6.2) | 35.6 | 30.1 |
Net of tax | (6.2) | 35.6 | 30.1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Earnings (loss) from continuing operations before income taxes | (1.4) | 44.8 | 40.6 |
Provision (benefit) for income taxes | (0.1) | 6.3 | 5.5 |
Net of tax | (1.3) | 38.5 | 35.1 |
Net of tax | (1.3) | 38.5 | 35.1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Cost of products sold | (0.8) | 45.4 | 38.4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Forward Starting Interest Rate Swaps [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Interest expense, net | (0.6) | (0.6) | (0.6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Interest expense, net | 2.8 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Earnings (loss) from continuing operations before income taxes | (7.1) | (4.6) | (7.3) |
Provision (benefit) for income taxes | (2.2) | (1.7) | (2.3) |
Net of tax | (4.9) | (2.9) | (5) |
Net of tax | (4.9) | (2.9) | (5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Curtailment Gain [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Other income (expense), net | 7.2 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Prior Service Cost [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Other income (expense), net | 4 | 3.9 | 7.3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Plan Items [Member] | Unrecognized Actuarial (Loss) [Member] | |||
Other Comprehensive Income Loss [Line Items] | |||
Other income (expense), net | $ (11.1) | $ (8.5) | $ (21.8) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income - Tax Effects on Each Component of Accumulated Other Comprehensive Income Recognized in Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency cumulative translation adjustments, before tax | $ (54.8) | $ (43.4) | $ 12.1 |
Unrealized cash flow hedge gains (losses) | 102.5 | (42.7) | 34.6 |
Reclassification adjustments on cash flow hedges, before tax | 1.4 | (44.8) | (40.6) |
Adjustments to prior service cost and unrecognized actuarial assumptions, before tax | 96.9 | (20.9) | (56.4) |
Total Other Comprehensive Income (Loss) | 146 | (151.8) | (50.3) |
Foreign currency cumulative translation adjustments, tax | 45.1 | (69) | 13.6 |
Unrealized cash flow hedge gains (losses) | 16.1 | (9.2) | 4 |
Reclassification adjustments on cash flow hedges, tax | 0.1 | (6.3) | (5.5) |
Adjustments to prior service cost and unrecognized actuarial assumptions, tax | 18.5 | (11.4) | (7.9) |
Total Other Comprehensive Income (Loss) | 79.8 | (95.9) | 4.2 |
Foreign currency cumulative translation adjustments, net of tax | (99.9) | 25.6 | (1.5) |
Unrealized cash flow hedge gains/(losses), net of tax | 86.4 | (33.5) | 30.6 |
Reclassification adjustments on hedges, net of tax | 1.3 | (38.5) | (35.1) |
Adjustments to prior service cost and unrecognized actuarial assumptions, net of tax | 78.4 | (9.5) | (48.5) |
Total Other Comprehensive Income (Loss) | $ 66.2 | $ (55.9) | $ (54.5) |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) € in Millions, SFr in Millions, $ in Millions, ¥ in Billions | 12 Months Ended | ||||||
Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 JPY (¥) | Dec. 31, 2021 CHF (SFr) | Jun. 30, 2021 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value hedges of fixed rate obligations | $ 1 | ||||||
Unamortized balance related to discontinued hedges instruments which will be recognized under effective interest rate method | $ 0 | ||||||
Forward starting interest rate swap cash flow hedge to be amortized | $ 25.3 | ||||||
Percentage of debt designated as net investment hedges | 100% | ||||||
Expected months of hedging of inter company sales of inventory to minimize the effects of foreign exchange rate movements | 30 months | ||||||
Loss on early extinguishment of debt | $ (165.1) | $ 0 | $ 0 | ||||
Fair value of outstanding derivative instruments, net unrealized loss deferred in accumulated other comprehensive income | 33.8 | ||||||
Gains (losses) on derivatives | 3.7 | $ 22.8 | $ 3.4 | ||||
Cost of Products Sold [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value of outstanding derivative instruments, loss, expected to be reclassified to earnings | 27.9 | ||||||
Fair value of outstanding derivative instruments, loss, net of taxes expected to be reclassified to earnings | 23.6 | ||||||
Interest Expense [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value of outstanding derivative instruments, loss, net of taxes expected to be reclassified to earnings | 0.5 | ||||||
Fair value of outstanding derivative instruments, loss, expected to be reclassified to earnings | 0.7 | ||||||
Cash Flow Hedges [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Fair value of outstanding derivative instruments, unrealized loss net of taxes deferred in accumulated other comprehensive income | 32.1 | ||||||
Cross Currency Interest Rate Swaps [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | € 675 | ¥ 7 | SFr 50 | ||||
Cross-Currency Interest Rate Swaps Matured [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | € | € 775 | ||||||
Net Investment Hedge Gain Loss At Maturity | 40 | ||||||
Foreign Exchange Contract [Member] | U.S. Dollars [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | 1,295.2 | ||||||
Foreign Exchange Contract [Member] | Swiss Francs [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | $ 347 | ||||||
Senior Notes [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Interest rate | 4.45% | 4.45% | 4.45% | 4.45% | |||
4.450% [Member] | Senior Notes [Member] | Due in 2045 [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Hedged senior notes maturity period | 30 years | ||||||
Interest rate | 4.45% | 4.45% | 4.45% | 4.45% | 4.45% | ||
Derivatives Designated as Hedges [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | $ 1,000 | ||||||
Derivatives Not Designated as Hedges [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loss on early extinguishment of debt | $ 12 | ||||||
Derivatives Not Designated as Hedges [Member] | Foreign Exchange Contract [Member] | Minimum [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | 1,500 | ||||||
Derivatives Not Designated as Hedges [Member] | Foreign Exchange Contract [Member] | Maximum [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative notional amount, Total | $ 2,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Amounts Recorded On Balance Sheet Related To Cumulative Basis Adjustments For Fair Value Hedges (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Current portion of long-term debt | $ 1,605.1 | $ 500 | |
Fair value hedges of fixed rate obligations | $ 1 | ||
Carrying Amount of Hedged Liabilities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Current portion of long-term debt | 303 | ||
Fair value hedges of fixed rate obligations | 985.2 | ||
Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount of Hedged Liabilities [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Current portion of long-term debt | $ 3.1 | ||
Fair value hedges of fixed rate obligations | $ (10.5) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Gross Unrealized Losses from Derivative Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | $ 102.5 | $ (42.7) | $ 34.6 |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | 102.5 | (42.7) | 34.6 |
Amount of Gain / (Loss) Reclassified from AOCI | (1.4) | 44.8 | 40.6 |
Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Recognized in AOCI | 102.5 | (42.7) | 34.6 |
Cash Flow Hedges [Member] | Foreign Exchange Forward Contracts [Member] | Cost of Products Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (0.8) | 45.4 | 38.4 |
Cash Flow Hedges [Member] | Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | 2.8 | ||
Cash Flow Hedges [Member] | Forward Starting Interest Rate Swaps [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | $ (0.6) | $ (0.6) | $ (0.6) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effects of Fair Value, Cash Flow and Net Investment Hedge Accounting on Consolidated Statements of Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on net investment hedging relationships | $ 232.6 | $ (295.3) | $ 58.6 |
Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (1.4) | 44.8 | 40.6 |
Cross Currency Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on net investment hedging relationships | 103 | (143.8) | 47.9 |
Cost of Products Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded | 1,960.4 | 1,824.3 | 1,943.7 |
Cost of Products Sold [Member] | Foreign Exchange Forward Contracts [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (0.8) | 45.4 | 38.4 |
Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total amounts of income and expense line items presented in the statements of earnings in which the effects of fair value, cash flow and net investment hedges are recorded | (208.4) | (212.1) | (227) |
Interest Expense [Member] | Discontinued Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on fair value hedging relationships | 3.1 | 3.3 | 8.2 |
Interest Expense [Member] | Interest Rate Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on fair value hedging relationships | 6.4 | ||
Amount of Gain / (Loss) Reclassified from AOCI | 2.8 | ||
Interest Expense [Member] | Forward Starting Interest Rate Swaps [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain / (Loss) Reclassified from AOCI | (0.6) | (0.6) | (0.6) |
Interest Expense [Member] | Cross Currency Interest Rate Swaps [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on net investment hedging relationships | $ 37.5 | $ 53.5 | $ 52.2 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Derivative Instruments Not Designated as Hedging Instruments (Detail) - Derivatives Not Designated as Hedges [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Exchange Forward Contracts [Member] | Other Expense, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) from derivative instruments not designated as hedging instruments | $ (1.8) | $ 10.6 | $ (11) |
Reverse Treasury Lock [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) from derivative instruments not designated as hedging instruments | $ 12 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments on Gross Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 86.2 | $ 15.9 |
Derivative Liabilities | 25 | 147.2 |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.4 | 1.5 |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.8 | 3.8 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 42.3 | 12.2 |
Foreign Exchange Forward Contracts [Member] | Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1.4 | 1.5 |
Foreign Exchange Forward Contracts [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 20.9 | 3.7 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 9.6 | 37.4 |
Foreign Exchange Forward Contracts [Member] | Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.8 | 3.8 |
Foreign Exchange Forward Contracts [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1.5 | 26.5 |
Cross Currency Interest Rate Swaps [Member] | Other Current Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 16.3 | |
Cross Currency Interest Rate Swaps [Member] | Other Assets [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 6.7 | |
Cross Currency Interest Rate Swaps [Member] | Other Current Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0.1 | 55 |
Cross Currency Interest Rate Swaps [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 3.3 | $ 28.3 |
Interest Rate Swaps [Member] | Other Long-term Liabilities [Member] | Derivatives Designated as Hedges [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 10.5 |
Derivative Instruments and He_9
Derivative Instruments and Hedging Activities - Schedule of Effects of Master Netting Agreements on Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Current Assets [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | $ 1.4 | $ 1.5 |
Offset | 0.3 | 0.6 |
Net Amount in Balance Sheet | 1.1 | 0.9 |
Other Current Assets [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 42.3 | 12.2 |
Offset | 9.5 | 11.7 |
Net Amount in Balance Sheet | 32.8 | 0.5 |
Other Assets [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 20.9 | 3.7 |
Offset | 1.3 | 3.7 |
Net Amount in Balance Sheet | 19.6 | |
Other Current Liabilities [Member] | Derivatives Not Designated as Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 1.8 | 3.8 |
Offset | 0.3 | 0.6 |
Net Amount in Balance Sheet | 1.5 | 3.2 |
Other Current Liabilities [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 9.6 | 37.4 |
Offset | 9.5 | 11.7 |
Net Amount in Balance Sheet | 0.1 | 25.7 |
Other Long-term Liabilities [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gross Amount | 1.5 | 26.5 |
Offset | 1.3 | 3.7 |
Net Amount in Balance Sheet | $ 0.2 | $ 22.8 |
Derivative Instruments and H_10
Derivative Instruments and Hedging Activities - Net Investment Hedge Gains Recognized on Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) on net investment hedging relationships | $ 232.6 | $ (295.3) | $ 58.6 |
Euro Notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) on net investment hedging relationships | 129.6 | (151.5) | 10.7 |
Cross Currency Interest Rate Swaps [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(Loss) on net investment hedging relationships | $ 103 | $ (143.8) | $ 47.9 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Pension Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
US [Member] | |||
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 0.9 | $ 0.7 | $ 7.1 |
Interest cost | 10.5 | 13.9 | 16.2 |
Expected return on plan assets | (29.8) | (32.9) | (32.4) |
Curtailment gain | (7.2) | ||
Settlements | 6.4 | 0.5 | 0.8 |
Amortization of prior service cost | 0.3 | 0.3 | (3.4) |
Amortization of unrecognized actuarial loss | 8.6 | 7.2 | 19.3 |
Net periodic benefit (income) expense | (3.1) | (10.3) | 0.4 |
Foreign Plan [Member] | |||
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | 24.7 | 24.7 | 19 |
Interest cost | 4.9 | 5.4 | 9 |
Expected return on plan assets | (15.6) | (13.3) | (13.4) |
Settlements | 0.5 | (0.5) | |
Amortization of prior service cost | (4.3) | (4.2) | (3.9) |
Amortization of unrecognized actuarial loss | 2.5 | 1.3 | 2.5 |
Net periodic benefit (income) expense | $ 12.7 | $ 13.4 | $ 13.2 |
Retirement Benefit Plans - Weig
Retirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine Net Pension Expense for Our Defined Benefit Retirement Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
US [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 2.04% | 3.40% | 4.38% |
Rate of compensation increase | 3.29% | ||
Expected long-term rate of return on plan assets | 6.75% | 7.75% | 7.75% |
Foreign Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 0.63% | 0.73% | 1.44% |
Rate of compensation increase | 2.39% | 2.28% | 2.50% |
Expected long-term rate of return on plan assets | 2.09% | 2.17% | 2.14% |
Retirement Benefit Plans - Chan
Retirement Benefit Plans - Changes in Projected Benefit Obligations and Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
US [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation - beginning of year | $ 516.9 | $ 472 | |
Service cost | 0.9 | 0.7 | $ 7.1 |
Interest cost | 10.5 | 13.9 | 16.2 |
Benefits paid | (13.3) | (24) | |
Actuarial loss | 3 | 55.6 | |
Settlement | (14.9) | (1.3) | |
Projected benefit obligation - end of year | 503.1 | 516.9 | 472 |
Foreign Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Projected benefit obligation - beginning of year | 819.3 | 740.4 | |
Service cost | 24.7 | 24.7 | 19 |
Interest cost | 4.9 | 5.4 | 9 |
Plan amendments | 0.2 | ||
Employee contributions | 23.4 | 22.1 | |
Benefits paid | (41.7) | (39.8) | |
Actuarial loss | 6.1 | 12.5 | |
Expenses paid | (0.2) | (0.3) | |
Settlement | (3) | (4.5) | |
Translation (gain) loss | (25.6) | 58.6 | |
Projected benefit obligation - end of year | $ 807.9 | $ 819.3 | $ 740.4 |
Retirement Benefit Plans - Ch_2
Retirement Benefit Plans - Changes in Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
US [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Plan assets at fair market value - beginning of year | $ 474.1 | $ 444.9 |
Actual return on plan assets | 50.5 | 51.4 |
Employer contributions | 3.1 | 3.1 |
Settlements | (14.9) | (1.3) |
Benefits paid | (13.3) | (24) |
Plan assets at fair market value - end of year | 499.5 | 474.1 |
Funded status | (3.6) | (42.8) |
Foreign Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Plan assets at fair market value - beginning of year | 756.7 | 665.2 |
Actual return on plan assets | 86.6 | 40 |
Employer contributions | 22.4 | 21.2 |
Employee contributions | 23.4 | 22.1 |
Settlements | (3) | (4.5) |
Benefits paid | (41.7) | (39.8) |
Expenses paid | (0.2) | (0.3) |
Translation (loss) gain | (23) | 52.8 |
Plan assets at fair market value - end of year | 821.2 | 756.7 |
Funded status | $ 13.3 | $ (62.6) |
Retirement Benefit Plans - Summ
Retirement Benefit Plans - Summary of Amounts Recognized in Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
US [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Prepaid pension | $ 2.7 | |
Short-term accrued benefit liability | (0.1) | $ (0.1) |
Long-term accrued benefit liability | (6.2) | (42.7) |
Net amount recognized | (3.6) | (42.8) |
Foreign Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Prepaid pension | 54.9 | 20.4 |
Short-term accrued benefit liability | (1.3) | (1.3) |
Long-term accrued benefit liability | (40.3) | (81.7) |
Net amount recognized | $ 13.3 | $ (62.6) |
Retirement Benefit Plans - We_2
Retirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine Projected Benefit Obligation for Defined Benefit Retirement Plans (Detail) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
US [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 2.70% | 2.70% | 3.40% |
Rate of compensation increase | 3.29% | ||
Foreign Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount rate | 0.73% | 0.61% | 0.74% |
Rate of compensation increase | 2.48% | 2.36% | 2.45% |
Retirement Benefit Plans - Plan
Retirement Benefit Plans - Plans with Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
US [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | $ 468.5 | $ 516.9 |
Plan assets at fair market value | 462.2 | 474.1 |
Foreign Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Projected benefit obligation | 38.8 | 778.4 |
Plan assets at fair market value | $ 8.1 | $ 709.5 |
Retirement Benefit Plans - Tota
Retirement Benefit Plans - Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
US [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Total accumulated benefit obligations | $ 503.1 | $ 516.9 |
Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 468.5 | 516.9 |
Plan assets at fair market value | 462.2 | 474.1 |
Foreign Plan [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Total accumulated benefit obligations | 783 | 801.3 |
Defined Benefit Plan Pension Plans With Accumulated Benefit Obligations In Excess Of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 36.4 | 560.9 |
Plan assets at fair market value | $ 8.1 | $ 508.6 |
Retirement Benefit Plans - Su_2
Retirement Benefit Plans - Summary of Benefits Expected to be Paid Out (Detail) $ in Millions | Dec. 31, 2021 USD ($) |
US [Member] | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
2022 | $ 24.6 |
2023 | 25.4 |
2024 | 25.7 |
2025 | 26.3 |
2026 | 27 |
2027-2031 | 133.1 |
Foreign Plan [Member] | |
Schedule of Expected Future Pension Benefit Payment [Line Items] | |
2022 | 32.8 |
2023 | 34.8 |
2024 | 33.6 |
2025 | 35 |
2026 | 34.7 |
2027-2031 | $ 175.7 |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Expense related to defined contribution plan | $ 46.3 | $ 43.5 | $ 46 |
US [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Contribution towards defined benefit plans | 1.8 | ||
Foreign Plan [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Contribution towards defined benefit plans | $ 19.1 | ||
Minimum [Member] | US [Member] | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 30% | ||
Minimum [Member] | US [Member] | Non-Traditional Investments [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 0% | ||
Minimum [Member] | Foreign Plan [Member] | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 20% | ||
Minimum [Member] | Foreign Plan [Member] | Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 30% | ||
Minimum [Member] | Foreign Plan [Member] | Real Estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 15% | ||
Minimum [Member] | Foreign Plan [Member] | Cash Fund [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 3% | ||
Minimum [Member] | Foreign Plan [Member] | Other Funds [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 0% | ||
Maximum [Member] | US [Member] | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 65% | ||
Maximum [Member] | US [Member] | Non-Traditional Investments [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 15% | ||
Maximum [Member] | Foreign Plan [Member] | Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 37% | ||
Maximum [Member] | Foreign Plan [Member] | Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 50% | ||
Maximum [Member] | Foreign Plan [Member] | Real Estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 24% | ||
Maximum [Member] | Foreign Plan [Member] | Cash Fund [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 15% | ||
Maximum [Member] | Foreign Plan [Member] | Other Funds [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Target range of assets held by defined benefit plan for cash funds | 12% |
Retirement Benefit Plans - Fair
Retirement Benefit Plans - Fair Value of U.S. and Puerto Rico Pension Plan Assets (Detail) - US [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 499.5 | $ 474.1 | $ 444.9 |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 3.8 | 7.3 | |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 495.7 | 466.8 | |
Cash and Cash Equivalents [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 3.8 | 7.3 | |
Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 3.8 | 7.3 | |
Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 342.1 | 304.1 | |
Equity Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 342.1 | 304.1 | |
Intermediate Fixed Income Debt Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 153.6 | 162.7 | |
Intermediate Fixed Income Debt Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 153.6 | $ 162.7 |
Retirement Benefit Plans - Fa_2
Retirement Benefit Plans - Fair Value of Foreign Pension Plan Assets (Detail) - Foreign Plan [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 821.2 | $ 756.7 | $ 665.2 |
Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 206.2 | 169.5 | |
Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 454.4 | 441.9 | |
Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 160.6 | 145.3 | |
Cash and Cash Equivalents [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 56.6 | 42.7 | |
Cash and Cash Equivalents [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 56.6 | 42.7 | |
Equity Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 185.5 | 163.9 | |
Equity Securities [Member] | Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 149.6 | 126.8 | |
Equity Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 35.9 | 37.1 | |
Fixed Income Securities [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 195.5 | 262.5 | |
Fixed Income Securities [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 195.5 | 262.5 | |
Other Types of Investments [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 223 | 142.3 | |
Other Types of Investments [Member] | Fair Value Measurements at Reporting Date Using: Significant Other Observable Inputs (Level 2) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 223 | 142.3 | |
Real Estate [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | 160.6 | 145.3 | |
Real Estate [Member] | Fair Value Measurements at Reporting Date Using: Significant Unobservable Inputs (Level 3) [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Plan assets at fair market value | $ 160.6 | $ 145.3 |
Retirement Benefit Plans - Reco
Retirement Benefit Plans - Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value (Detail) - Foreign Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Fair Values of Plan Assets [Line Items] | ||
Plan assets at fair market value - beginning of year | $ 756.7 | $ 665.2 |
Translation gain | (23) | 52.8 |
Plan assets at fair market value - end of year | 821.2 | 756.7 |
Fair Value Inputs Level 3 [Member] | ||
Schedule of Fair Values of Plan Assets [Line Items] | ||
Plan assets at fair market value - beginning of year | 145.3 | |
Gain on assets sold | 0.7 | |
Change in fair value of assets | 7 | |
Net purchases and sales | 11.9 | |
Translation gain | (4.3) | |
Plan assets at fair market value - end of year | $ 160.6 | $ 145.3 |
Income Taxes - Components of Ea
Income Taxes - Components of Earnings (Loss) Before Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States operations | $ (118.8) | $ (387.6) | $ (126.1) |
Foreign operations | 617.8 | 282.4 | 1,006.2 |
Earnings (loss) from continuing operations before income taxes | $ 499 | $ (105.2) | $ 880.1 |
Income Taxes - Provision_(Benef
Income Taxes - Provision/(Benefit) for Income Taxes and Income Taxes Paid (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 44.3 | $ (58.4) | $ 86.4 |
State | 7.2 | 2.7 | 9 |
Foreign | 104.1 | (79.7) | 254.4 |
Current, Total | 155.6 | (135.4) | 349.8 |
Deferred: | |||
Federal | (83.5) | (12.7) | (119.2) |
State | (19.4) | (10) | (4.2) |
Foreign | 0.8 | 62.1 | (464.4) |
Deferred, Total | (102.1) | 39.4 | (587.8) |
Provision (benefit) for income taxes | 53.5 | (96) | (238) |
Net income taxes paid | $ 258.4 | $ 142 | $ 183.6 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Statutory Income Tax Rate to Our Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 21% | 21% | 21% |
State taxes, net of federal deduction | (2.80%) | 6.60% | 0.70% |
Tax impact of foreign operations, including U.S. taxes on international income and foreign tax credits | (10.30%) | 37.40% | (11.60%) |
Change in valuation allowance | (0.50%) | 3.80% | 1.60% |
Non-deductible expenses | 1.30% | (4.30%) | 0.30% |
Goodwill impairment | (92.00%) | ||
Tax rate change | 0.10% | 5.50% | 0.70% |
Tax impact of certain significant transactions | 1.10% | ||
Tax benefit relating to foreign derived intangible income and U.S. manufacturer's deduction | 0.40% | 14.20% | (4.40%) |
R&D tax credit | (2.20%) | 4.80% | (1.10%) |
Share-based compensation | (0.20%) | (1.00%) | (0.20%) |
Net uncertain tax positions, including interest and penalties | 2.90% | 56.90% | 1.80% |
U.S. tax reform | 0.10% | ||
Switzerland tax reform and certain restructuring transactions | 40.90% | (35.80%) | |
Other | (0.10%) | (2.50%) | (0.10%) |
Effective income tax rate | 10.70% | 91.30% | (27.00%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Inventory | $ 204.2 | $ 226.4 |
Net operating loss carryover | 454 | 494.6 |
Tax credit carryover | 79.7 | 75.7 |
Capital loss carryover | 8.6 | 9 |
Product liability and litigation | 44.4 | 53 |
Accrued liabilities | 101.7 | 82.7 |
Share-based compensation | 30.2 | 28.7 |
Accounts receivable | 14.8 | 15 |
Foreign currency items | 57.1 | |
Other | 56.9 | 19.1 |
Total deferred tax assets | 994.5 | 1,061.3 |
Less: Valuation allowances | (460.1) | (527.3) |
Total deferred tax assets after valuation allowances | 534.4 | 534 |
Deferred tax liabilities: | ||
Fixed assets | 117.1 | 102 |
Intangible assets | 509.7 | 578.9 |
Foreign currency items | 3.5 | |
Other | 34 | 28.1 |
Total deferred tax liabilities | 664.3 | 709 |
Total net deferred income taxes | $ (129.9) | $ (175) |
Income Taxes - Summary of Tax C
Income Taxes - Summary of Tax Credit Carryforwards (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | $ 454 | $ 494.6 |
Tax credit carryover | 79.7 | 75.7 |
Capital loss carryover | 8.6 | $ 9 |
Net operating loss carryover valuation allowance | 391.6 | |
Tax credit carryover valuation allowance | 46.7 | |
Capital loss carryover valuation allowance | 8.6 | |
1-5 Years [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 2.4 | |
Tax credit carryover | 15.1 | |
Capital loss carryover | 1.7 | |
6-10 Years [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 52.4 | |
Tax credit carryover | 55.5 | |
11+ Years [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 276.9 | |
Tax credit carryover | 1.6 | |
Indefinite [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryover | 122.3 | |
Tax credit carryover | 7.5 | |
Capital loss carryover | $ 6.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes Disclosure [Line Items] | |||
Valuation allowances for potential capital losses | $ 13.2 | ||
Estimated of cash and repatriate of foreign entities | 4,600 | ||
Unrecognized tax benefits income tax penalties and interest expense recognized | 8.9 | $ 1.7 | $ 15.9 |
Recognized liability for interest and penalties | 116.2 | $ 107.4 | $ 109.4 |
Decrease in unrecognized tax benefits within the next twelve months | 140 | ||
Increase in unrecognized tax benefits within the next twelve months | 20 | ||
Amount of potential additional income tax expense related to an IRS notice of proposed adjustment subject to interest and penalties. | $ 370 | ||
State examination period after notification | up to one year | ||
Minimum [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income tax expense repatriation of E&P | $ 5,000 | ||
State jurisdictions statutes of limitation period | 3 years | ||
Maximum [Member] | |||
Income Taxes Disclosure [Line Items] | |||
Income tax expense repatriation of E&P | $ 6,000 | ||
State jurisdictions statutes of limitation period | 5 years |
Income Taxes - Tabular Reconcil
Income Taxes - Tabular Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at January 1 | $ 619.4 | $ 741.8 | $ 685.2 |
Increases related to prior periods | 11.5 | 75.3 | 24.7 |
Decreases related to prior periods | (12.7) | (158.3) | (35.6) |
Increases related to current period | 7.3 | 3.4 | 133.2 |
Decreases related to settlements with taxing authorities | (65.1) | (14.6) | (60.2) |
Decreases related to lapse of statute of limitations | (1.8) | (28.2) | (5.5) |
Balance at December 31 | 558.6 | 619.4 | 741.8 |
Amounts impacting effective tax rate, if recognized balance at December 31 | $ 426.4 | $ 473.9 | $ 599.2 |
Capital Stock and Earnings pe_3
Capital Stock and Earnings per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Preferred stock, shares authorized | 250,000,000 | ||
Preferred stock, shares issued | 0 | ||
Preferred stock, shares outstanding | 0 | ||
Options to purchase shares of common stock not included in the computation of diluted earnings per share | 1,300,000 | 0 | 900,000 |
Capital Stock and Earnings pe_4
Capital Stock and Earnings per Share - Reconciliation of Weighted Average Shares for Basic and Diluted Shares Computations (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding for basic net earnings per share | 208.6 | 207 | 205.1 |
Effect of dilutive stock options and other equity awards | 1.8 | 1.6 | |
Weighted average shares outstanding for diluted net earnings per share | 210.4 | 207 | 206.7 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 USD ($) Segment | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Net Sales | $ 6,827.3 | $ 6,127.5 | $ 6,960.6 |
Share of revenue from an individual country in net sales | less than 10 percent | ||
US [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | $ 3,853.9 | $ 3,507.7 | $ 3,894.5 |
Segment Data - Summary of Net S
Segment Data - Summary of Net Sales and Other Information by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | $ 6,827.3 | $ 6,127.5 | $ 6,960.6 |
Operating Profit (Loss) | 860.3 | 83.1 | 1,112 |
Intangible asset amortization | 529.5 | 512.1 | 500.9 |
Goodwill and intangible asset impairment | (16.3) | (503) | (70.1) |
Restructuring and other cost reduction initiatives | (125.7) | (107.2) | (48.2) |
Quality remediation | (52.8) | (50.9) | (82) |
Acquisition, integration, divestiture and related | (3.1) | (11.4) | 0.5 |
Intangible asset amortization | (529.5) | (512.1) | (500.9) |
Americas [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 4,102.1 | 3,699.5 | 4,148.8 |
Operating Profit (Loss) | 1,709.3 | 1,528.2 | 1,831.8 |
Depreciation and Amortization | 143.1 | 135.6 | 126.6 |
EMEA [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,477.2 | 1,237.3 | 1,554.8 |
Asia Pacific [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,248 | 1,190.7 | 1,257 |
Operating Segments [Member] | EMEA [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,477.2 | 1,237.3 | 1,554.8 |
Operating Profit (Loss) | 380.3 | 303 | 478.5 |
Depreciation and Amortization | 71.4 | 73.9 | 71.9 |
Operating Segments [Member] | Asia Pacific [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Net Sales | 1,248 | 1,190.7 | 1,257 |
Operating Profit (Loss) | 401.3 | 395.4 | 447.9 |
Depreciation and Amortization | 66.7 | 63 | 57.7 |
Segment Reconciling Items [Member] | |||
Net Sales And Operating Profit Information [Line Items] | |||
Operating Profit (Loss) | 860.3 | 83.1 | 1,112 |
Depreciation and Amortization | 937.6 | 898.4 | 871 |
Corporate Functions | (588.6) | (695.6) | (698.2) |
Inventory and manufacturing-related charges | (5.1) | (55) | (59.3) |
Intangible asset amortization | (529.5) | (512.1) | (500.9) |
Goodwill and intangible asset impairment | (16.3) | (503) | (70.1) |
Restructuring and other cost reduction initiatives | (125.7) | (107.2) | (48.2) |
Quality remediation | (52.8) | (51.1) | (87.2) |
Acquisition, integration, divestiture and related | (3.1) | (11.4) | 0.5 |
Litigation | (192.9) | (159.8) | (65) |
Litigation settlement gain | 23.5 | ||
European Union Medical Device Regulation | (40.8) | (22.5) | (27) |
Certain R&D agreements | (65) | ||
Other charges | (10.8) | (25.8) | (114.3) |
Depreciation of corporate functions | 126.9 | 113.8 | 113.9 |
Intangible asset amortization | $ 529.5 | $ 512.1 | $ 500.9 |
Segment Data - Disclosure on Ge
Segment Data - Disclosure on Geographic Areas, Long-Lived Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 1,836.6 | $ 1,863.8 |
US [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | 1,084.2 | 1,122.1 |
Other Countries [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 752.4 | $ 741.7 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Real Estate Leases [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, option to extend | Our real estate leases generally have terms of between 5 to 10 years and contain lease extension options that can vary from month-to-month extensions to up to 5 year extensions |
Lessee, operating lease, existence of option to extend | true |
Real Estate Leases [Member] | Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Real Estate Leases [Member] | Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 10 years |
Lessee, operating lease, renewal term | 5 years |
Vehicle Leases [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, option to extend | Our vehicle leases generally have terms of between 3 to 5 years and contain lease extension options on a month-to-month basis. Our vehicle leases are generally not reasonably certain to be extended. |
Lessee, operating lease, existence of option to extend | true |
Vehicle Leases [Member] | Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 3 years |
Vehicle Leases [Member] | Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 5 years |
Leases - Schedule of Informatio
Leases - Schedule of Information on Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lease cost | $ 71.1 | $ 68.8 | $ 61.8 |
Cash paid for leases recognized in operating cash flows | 70.5 | 66.6 | 60 |
Right-of-use assets obtained in exchange for new lease liabilities | 88.8 | 74.2 | $ 50.9 |
Right-of-use assets recognized in Other assets | $ 219.4 | $ 215.1 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Lease liabilities recognized in Other current liabilities | $ 56.7 | $ 61 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Lease liabilities recognized in Other long-term liabilities | $ 174.9 | $ 165.2 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities | |
Weighted-average remaining lease term | 6 years 1 month 6 days | 5 years 9 months 18 days | |
Weighted-average discount rate | 1.80% | 2.10% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Detail) $ in Millions | Dec. 31, 2021 USD ($) |
Leases [Abstract] | |
2022 | $ 59.9 |
2023 | 46.9 |
2024 | 35.9 |
2025 | 26.5 |
2026 | 21.2 |
Thereafter | 54.8 |
Total | 245.2 |
Less imputed interest | 13.6 |
Total | $ 231.6 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) € in Thousands, kr in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Feb. 13, 2019 USD ($) | Feb. 13, 2019 NOK (kr) | Mar. 31, 2021 USD ($) | Mar. 31, 2021 EUR (€) | Jan. 31, 2017 EUR (€) | Dec. 31, 2016 EUR (€) | Jun. 30, 2019 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Loss Contingencies [Line Items] | ||||||||||
Net Litigation Related Charges | $ 201 | $ 166 | $ 51.4 | |||||||
Accrued litigation liabilities | 407.9 | $ 309.4 | ||||||||
Loss contingency, damages awarded, value | $ 2.3 | kr 19,500,000 | ||||||||
Heraeus Trade Secret Misappropriation Lawsuits [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency, Damages incurred | $ 16.6 | € 13,840 | ||||||||
Heraeus Trade Secret Misappropriation Lawsuits [Member] | Germany [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency, Damages incurred | € | € 125,900 | € 121,900 | € 146,700 | |||||||
Other Contingencies [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss Contingency Accrual | 0 | |||||||||
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 355 |
Subsequent Events (Unaudited) -
Subsequent Events (Unaudited) - Additional Information (Detail) - 2021 Five-Year Credit Agreement [Member] $ in Millions | Apr. 30, 2022 USD ($) |
Subsequent Event [Line Items] | |
Debt Instrument, Term | 5 years |
Cash payments to acquire businesses | $ 100 |
Proceeds from revolving facility | $ 100 |
Schedule - Valuation and Qualif
Schedule - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||
Allowance for Doubtful Accounts [Member] | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | $ 58.6 | $ 46.3 | $ 49.7 | ||
Additions Charged (Credited) to Expense | 12.4 | 19.1 | (0.6) | ||
Deductions / Other Additions to Reserve | (9) | (8.3) | [1] | (2.3) | |
Effects of Foreign Currency | (1.9) | 1.5 | (0.5) | ||
Balance at End of Period | 60.1 | 58.6 | 46.3 | ||
Deferred Tax Asset Valuation Allowances [Member] | |||||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Period | 527.3 | 529.6 | 368.4 | ||
Additions Charged (Credited) to Expense | (2.6) | (2) | (3.9) | ||
Deductions / Other Additions to Reserve | [2] | (61.5) | (3.1) | 165.8 | |
Effects of Foreign Currency | (3.1) | 2.8 | (0.7) | ||
Balance at End of Period | $ 460.1 | $ 527.3 | $ 529.6 | ||
[1]Includes the $2.1 cumulative-effect adjustment related to the adoption of ASU 2016-13, Financial Instruments – Credit Losses (Topic 326).[2]Primarily relate to amounts generated by tax rate changes or current year activity which have offsetting changes to the associated attribute and therefore there is no resulting impact on tax expense in the consolidated financial statements. |
Schedule - Valuation and Qual_2
Schedule - Valuation and Qualifying Accounts (Detail) (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Accounting Standards Update 2016-13 [Member] | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |
Cumulative Effect Adjustment Credit Losses | $ 2.1 |