3. Business Combinations

LDR Acquisition

On July 13, 2016, we completed our acquisition of LDR Holding Corporation (“LDR”). We paid cash of $1,138.0 million. The total amount of merger consideration utilized for the acquisition method of accounting, as reduced by the merger consideration paid to holders of unvested LDR stock options and LDR stock-based awards of $24.1 million, was $1,113.9 million. The addition of LDR provided us with an immediate position in the growing cervical disc replacement (“CDR”) market. The combination positioned us to accelerate the growth of our Spine business through the incremental revenues associated with entry into the CDR market and cross-portfolio selling opportunities to both Zimmer Biomet and LDR customer bases. The goodwill was generated from the operational synergies and cross-selling opportunities we expected to achieve from our combined operations. None of the goodwill is deductible for tax purposes.

The following table summarizes the final estimated fair value of the assets acquired and liabilities assumed in the LDR acquisition (in millions):




	Final Values
Cash	$	92.8
Accounts receivable, net		30.5
Inventory		97.0
Other current assets		5.6
Property, plant and equipment		24.7
Intangible assets not subject to amortization:
In-process research and development (IPR&D)		2.0
Intangible assets subject to amortization:
Technology		447.0
Customer relationships		122.0
Trademarks and trade names		74.0
Other assets		73.8
Goodwill		507.2
Total assets acquired		1,476.6
Current liabilities		122.5
Long-term debt		0.5
Deferred taxes		236.7
Other long-term liabilities		3.0
Total liabilities assumed		362.7
Net assets acquired	$	1,113.9

We have not included pro forma information and certain other information under GAAP for the LDR acquisition because it did not have a material impact on our financial position or results of operations.

Other acquisitions

During the year ended December 31, 2016, we completed individually immaterial acquisitions of companies including Cayenne Medical, Inc. (“Cayenne Medical”), a sports medicine company, Compression Therapy Concepts, Inc. (“CTC”), a provider of non-invasive products for the prevention of deep vein thrombosis, CD Diagnostics, Inc. (“CD Diagnostics”), a medical diagnostic testing company, and MedTech SA (“MedTech”), a designer and manufacturer of robotic equipment for brain and spine surgeries. The total aggregate cash consideration was $441.7 million. These acquisitions were completed primarily to expand our product offerings. We have assigned a fair value of $58.0 million for settlement of preexisting relationships and additional payments related to these acquisitions that are contingent on the respective acquired companies’ product sales, commercial milestones and certain cost savings. The fair value of the aggregate contingent payment liabilities was calculated based on the probability of achieving the specified sales growth, cost savings and commercial milestones and discounting to present value the payments. The goodwill was generated from the operational synergies and cross-selling opportunities we expected to achieve from the technologies acquired. None of the goodwill related to these acquisitions is deductible for tax purposes.

The following table summarizes the aggregate final estimated fair value of the assets acquired and liabilities assumed related to the Cayenne Medical, CTC, CD Diagnostics, MedTech, and other immaterial acquisitions that occurred during the year ended December 31, 2016 (in millions):

Current assets	$	66.4
Property, plant and equipment		4.5
Intangible assets		172.9
Goodwill		337.1
Other assets		38.2
Total assets acquired		619.1
Current liabilities		20.0
Long-term liabilities		99.4
Total liabilities assumed		119.4
Net assets acquired	$	499.7

We have not included pro forma information and certain other information under GAAP for the Cayenne Medical, CTC, CD Diagnostics, or MedTech acquisitions because, individually and in aggregate, they did not have a material impact on our financial position or results of operations.

Goodwill

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

	Americas		EMEA			Asia Pacific		Product Category Operating Segments			Total
Balance at December 31, 2016
Goodwill	$	7,634.5	$	1,263.7		$	487.3	$	1,631.4		$	11,016.9
Accumulated impairment loss		-		-			-		(373.0	)		(373.0	)
		7,634.5		1,263.7			487.3		1,258.4			10,643.9
LDR purchase accounting		-		-			-		24.8			24.8
Other acquisitions		13.2		(24.1	)		-		27.6			16.7
Currency translation		82.5		110.0			10.0		49.7			252.2
Impairment		-		-			-		(32.7	)		(32.7	)
Balance at September 30, 2017
Goodwill		7,730.2		1,349.6			497.3		1,733.5			11,310.6
Accumulated impairment loss		-		-			-		(405.7	)		(405.7	)
	$	7,730.2	$	1,349.6		$	497.3	$	1,327.8		$	10,904.9