Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

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
	2016			2015			2014			2016			2015			2014
Service cost	$	9.6		$	11.8		$	10.9		$	19.0		$	18.9		$	14.7
Interest cost		13.8			15.8			15.5			10.0			8.8			9.2
Expected return on plan assets		(32.2	)		(31.8	)		(30.8	)		(13.7	)		(13.9	)		(11.0	)
Curtailment gain		–			–			–			(0.5	)		–			–
Settlements		2.6			–			–			–			–			–
Amortization of prior service cost		(5.9	)		(3.7	)		(2.6	)		(1.9	)		(1.9	)		(1.3	)
Amortization of unrecognized actuarial loss		16.5			17.4			10.6			6.4			2.7			0.5

Net periodic benefit cost	$	4.4		$	9.5		$	3.6		$	19.3		$	14.6		$	12.1

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
	2016		2015		2014		2016		2015		2014
Discount rate		4.32%		4.56%		4.98%		1.41%		1.94%		2.46%
Rate of compensation increase		3.29%		3.29%		3.29%		2.08%		2.00%		1.48%
Expected long-term rate of return on plan assets		7.75%		7.75%		7.75%		2.40%		3.05%		2.88%

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
	2016			2015			2016			2015
Projected benefit obligation – beginning of year	$	375.1		$	386.6		$	568.6		$	423.7
Obligation assumed from Biomet		–			–			–			159.4
Service cost		9.6			11.8			19.0			18.9
Interest cost		13.8			15.8			10.0			8.8
Plan amendments		–			(21.9	)		(23.4	)		–
Employee contributions		–			–			23.6			16.9
Benefits paid		(14.3	)		(12.3	)		(31.6	)		(24.1	)
Actuarial (gain) loss		(1.6	)		(4.9	)		46.7			(18.9	)
Expenses paid		–			–			(0.2	)		(0.3	)
Settlement		(5.7	)		–			–			(0.2	)
Translation gain		–			–			(44.1	)		(15.6	)

Projected benefit obligation – end of year	$	376.9		$	375.1		$	568.6		$	568.6

Changes in Fair Value of Plan Assets


	For the Years Ended December 31,
	U.S. and Puerto Rico						Foreign
	2016			2015			2016			2015
Plan assets at fair market value – beginning of year	$	374.1		$	402.2		$	505.6		$	385.4
Assets contributed by Biomet		–			–			–			129.4
Actual return on plan assets		29.5			(16.6	)		34.1			(4.0	)
Employer contributions		5.8			0.8			15.9			14.8
Employee contributions		–			–			23.6			16.9
Settlements		(5.7	)		–			–			–
Plan amendments		–			–			–			(0.2	)
Benefits paid		(14.3	)		(12.3	)		(31.6	)		(24.1	)
Expenses paid		–			–			(0.2	)		(0.3	)
Translation loss		–			–			(40.4	)		(12.3	)

Plan assets at fair market value – end of year	$	389.4		$	374.1		$	507.0		$	505.6

Funded status	$	12.5		$	(1.0	)	$	(61.6	)	$	(63.0	)

Summary of Amounts Recognized in Balance Sheet


	For the Years Ended December 31,
	U.S. and Puerto Rico						Foreign
	2016			2015			2016			2015
Amounts recognized in consolidated balance sheet:
Prepaid pension	$	24.0		$	14.6		$	10.2		$	16.5
Short-term accrued benefit liability		(0.4	)		(1.0	)		(0.7	)		(0.6	)
Long-term accrued benefit liability		(11.1	)		(14.6	)		(71.1	)		(78.9	)

Net amount recognized	$	12.5		$	(1.0	)	$	(61.6	)	$	(63.0	)

Summary of Amounts Recognized in Other Comprehensive Income Loss

We estimate the following amounts recorded as part of accumulated other comprehensive income will be recognized as part of our net pension expense during 2017 (in millions):


	U.S. and Puerto Rico			Foreign
Unrecognized prior service cost	$	(5.9	)	$	(4.2	)
Unrecognized actuarial loss		16.4			3.8

	$	10.5		$	(0.4	)

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
	2016			2015			2014			2016			2015			2014
Discount rate		4.32	%		4.36	%		4.10	%		1.41	%		1.86	%		1.38	%
Rate of compensation increase		3.29	%		3.29	%		3.29	%		2.08	%		2.02	%		1.43	%

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
	2016		2015		2016		2015
Projected benefit obligation	$	51.3	$	53.8	$	545.7	$	393.4
Plan assets at fair market value		39.8		38.2		480.2		319.6

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
	2016		2015		2016		2015
Total accumulated benefit obligations	$	364.8	$	354.6	$	556.4	$	556.8
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation		32.0		34.8		530.1		380.1
Plan assets at fair market value		21.8		20.6		475.3		314.9

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
2017	$	15.7	$	23.3
2018		16.3		23.2
2019		17.5		23.6
2020		18.3		24.0
2021		19.0		23.9
2022-2026		104.9		128.3

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, 2016
Beginning Balance	$	73.9
Gains on assets sold		0.1
Change in fair value of assets		2.7
Net purchases and sales		5.0
Translation loss		(3.0	)

Ending Balance	$	78.7

Foreign-based Defined Benefit Plans [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, 2016
			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	$	37.8	$	37.8	$	–	$	–
Equity securities:
Energy		3.2		3.2		–		–
Materials		8.6		8.6		–		–
Industrials		9.3		9.3		–		–
Consumer discretionary		5.8		5.8		–		–
Consumer staples		8.4		8.4		–		–
Healthcare		10.3		10.3		–		–
Financials		16.8		16.8		–		–
Information technology		5.2		5.2		–		–
Telecommunication services		2.1		2.1		–		–
Utilities		3.3		3.3		–		–
Other		71.7		68.3		3.4		–
Fixed income securities:
Government bonds		113.9		–		113.9		–
Corporate bonds		68.2		–		68.2		–
Asset-backed securities		9.9		–		9.9		–
Other debt		11.1		–		11.1		–
Other types of investments:
Mortgage loans		10.8		–		10.8		–
Insurance contracts		5.8		–		5.8		–
Other investments		16.9		–		16.9		–
Real estate		87.9		–		9.2		78.7

Total	$	507.0	$	179.1	$	249.2	$	78.7


	As of December 31, 2015
			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	$	34.0	$	34.0	$	–	$	–
Equity securities:
Energy		4.7		4.7		–		–
Materials		6.7		6.7		–		–
Industrials		8.2		8.2		–		–
Consumer discretionary		6.3		6.3		–		–
Consumer staples		8.5		8.5		–		–
Healthcare		8.6		8.6		–		–
Financials		17.4		17.4		–		–
Information technology		5.7		5.7		–		–
Telecommunication services		2.0		2.0		–		–
Utilities		3.3		3.3		–		–
Other		80.7		40.6		40.1		–
Fixed income securities:
Government bonds		104.0		–		104.0		–
Corporate bonds		74.5		–		74.5		–
Asset-backed securities		14.8		–		14.8		–
Other debt		11.3		–		11.3		–
Other types of investments:
Mortgage loans		9.8		–		9.8		–
Insurance contracts		5.8		–		5.8		–
Other investments		14.7		–		14.7		–
Real estate		84.6		–		10.7		73.9

Total	$	505.6	$	146.0	$	285.7	$	73.9

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, 2016
			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	$	2.7	$	2.7	$	–	$	–
Equity securities:
U.S. large-cap		87.4		–		87.4		–
U.S. small-cap		34.4		–		34.4		–
International		111.1		–		111.1		–
Real estate		14.4		–		14.4		–
Commodity-linked mutual funds		–		–		–		–
Intermediate fixed income securities		139.4		–		139.4		–

Total	$	389.4	$	2.7	$	386.7	$	–


	As of December 31, 2015
			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	$	2.5	$	2.5	$	–	$	–
Equity securities:
U.S. large-cap		79.2		–		79.2		–
U.S. small-cap		25.6		–		25.6		–
International		93.2		–		93.2		–
Real estate		27.0		–		27.0		–
Commodity-linked mutual funds		16.4		–		16.4		–
Intermediate fixed income securities		130.2		–		130.2		–

Total	$	374.1	$	2.5	$	371.6	$	–