Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Special Items – We recognize expenses resulting directly from our business combinations (including certain expenses relating to the anticipated merger with Biomet), employee termination benefits, certain R&D agreements, certain contract terminations, consulting and professional fees and asset impairment or loss on disposal charges connected with global restructuring, quality and operational excellence initiatives, and other items as “Special items” in our condensed consolidated statement of earnings. “Special items” included (in millions):

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014		2013
Impairment/loss on disposal of assets	$	4.6		$	—	$	14.3	$	0.3
Consulting and professional fees		40.7			23.4		55.7		50.3
Employee severance and retention		—			6.5		0.9		6.2
Dedicated project personnel		10.9			11.1		21.8		16.5
Certain R&D agreements		—			0.8		4.5		0.8
Relocated facilities		—			1.3		0.7		2.6
Distributor acquisitions		0.4			0.3		0.4		0.3
Certain litigation matters		—			21.7		—		17.9
Contract terminations		4.6			0.9		5.6		1.4
Contingent consideration adjustments		(0.1	)		5.6		0.4		5.9
Accelerated software amortization		1.5			1.5		3.0		3.0
Other		2.1			2.5		3.3		3.9
Special items	$	64.7		$	75.6	$	110.6	$	109.1

In the six month period ended June 30, 2014, we reduced the estimated useful lives of certain intangible assets to zero because we determined we would no longer utilize those assets. This was accounted for as a change in accounting estimate, which resulted in their remaining net book values of $7.2 million being amortized immediately. We have included this amortization expense in the caption “Impairment/loss on disposal of assets.”

Recent Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board issued Accounting Standard Update (ASU) No. 2014-09 – Revenue from Contracts with Customers (Topic 606). The ASU provides a five-step model for revenue recognition that all industries will apply to recognize revenue when a customer obtains control of a good or service. The ASU will be effective for us beginning January 1, 2017. We are in the initial phases of our adoption plans and, accordingly, we are unable to estimate any effect this may have on our revenue recognition practices.

There are no other 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.