Biomet Merger (Tables)

9 Months Ended

Sep. 30, 2015

Summary of Preliminary Fair Values of Assets Acquired and Liabilities Assumed

The following table summarizes our estimate of the preliminary fair values of the assets acquired and liabilities assumed at the Closing Date (in millions):


	Closing Date (as revised)		Adjustments			Closing Date (as adjusted)
Cash	$	494.8	$	—		$	494.8
Accounts receivable, net		544.7		10.3			555.0
Inventory		1,161.7		6.2			1,167.9
Other current assets		202.3		(35.3	)		167.0
Property, plant and equipment		699.4		(1.0	)		698.4
Intangible assets not subject to amortization:				—			—
Trademarks and trade names		515.0		—			515.0
Intangible assets subject to amortization:				—			—
Technology		3,075.3		15.8			3,091.1
Customer relationships		5,829.0		—			5,829.0
Other assets		29.5		(9.4	)		20.1
Goodwill		5,270.2		(16.3	)		5,253.9

Total assets acquired		17,821.9		(29.7	)		17,792.2

Current liabilities		588.9		10.7			599.6
Long-term debt		2,740.0		—			2,740.0
Deferred taxes		2,568.6		(41.1	)		2,527.5
Other long-term liabilities		58.2		0.7			58.9

Total liabilities assumed		5,955.7		(29.7	)		5,926.0

Net assets acquired	$	11,866.2	$	—		$	11,866.2

Changes in Carrying Amount of Goodwill

The following table summarizes the changes in the carrying amount of our goodwill (in millions):


	Americas			EMEA			Asia Pacific			Unallocated		Total
Balance at December 31, 2014
Goodwill	$	1,666.2		$	1,067.7		$	153.3		$	—	$	2,887.2
Accumulated impairment losses		(373.0	)		—			—			—		(373.0	)

		1,293.2			1,067.7			153.3			—		2,514.2
Biomet merger		—			—			—			5,253.9		5,253.9
Currency translation		(8.9	)		(72.2	)		(7.5	)		—		(88.6	)

Balance at September 30, 2015
Goodwill		1,657.3			995.5			145.8			5,253.9		8,052.5
Accumulated impairment losses		(373.0	)		—			—			—		(373.0	)

	$	1,284.3		$	995.5		$	145.8		$	5,253.9	$	7,679.5

Pro forma Financial Information Adjusted to Give Effect to the Merger

The pro forma financial information has been adjusted to give effect to the merger as if it had occurred on January 1, 2014.

Pro Forma Financial Information

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(in millions)
Net Sales	$	1,762.2	$	1,888.4	$	5,584.1	$	5,906.2
Net Earnings	$	22.2	$	106.6	$	267.3	$	221.5