Guarantor and Non-Guarantor Financial Statements. (Tables)

3 Months Ended

Aug. 31, 2012

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

	August 31, 2012
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	410.1	$	209.1	$	—		$	619.2
Accounts receivable, net		—		242.5		245.2		—			487.7
Investments		—		—		2.5		—			2.5
Income tax receivable		—		1.9		3.7		—			5.6
Inventories, net		—		309.2		341.0		—			650.2
Deferred income taxes		—		44.8		8.6		—			53.4
Prepaid expenses and other		—		58.8		86.2		—			145.0
Total current assets		—		1,067.3		896.3		—			1,963.6
Property, plant and equipment, net		—		352.4		315.8		—			668.2
Investments		—		10.7		4.5					15.2
Investment in subsidiaries		9,078.8		—		—		(9,078.8	)		—
Intangible assets, net		—		3,176.7		764.2		—			3,940.9
Goodwill		—		3,320.7		861.5		—			4,182.2
Other assets		—		66.7		14.4		—			81.1
Total assets	$	9,078.8	$	7,994.5	$	2,856.7	$	(9,078.8	)	$	10,851.2
Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	34.4	$	—	$	1.3	$	—		$	35.7
Accounts payable		—		52.2		55.5		—			107.7
Accrued interest		108.4		—		—		—			108.4
Accrued wages and commissions		—		52.2		46.8		—			99.0
Other accrued expenses		—		113.8		55.9		—			169.7
Total current liabilities		142.8		218.2		159.5		—			520.5
Long-term debt		6,244.4		—		1.8		—			6,246.2
Deferred income taxes		—		999.7		192.7		—			1,192.4
Other long-term liabilities		—		150.5		50.0		—			200.5
Total liabilities		6,387.2		1,368.4		404.0		—			8,159.6
Shareholder’s equity		2,691.6		6,626.1		2,452.7		(9,078.8	)		2,691.6
Total liabilities and shareholder’s equity	$	9,078.8	$	7,994.5	$	2,856.7	$	(9,078.8	)	$	10,851.2

	May 31, 2012
(in millions)	Biomet, Inc.		Guarantors		Non-Guarantors		Eliminations			Total
Assets
Current assets:
Cash and cash equivalents	$	—	$	190.1	$	302.3	$	—		$	492.4
Accounts receivable, net		—		227.6		264.0		—			491.6
Investments		—		—		2.5		—			2.5
Income tax receivable		—		2.1		2.9		—			5.0
Inventories, net		—		288.7		254.5		—			543.2
Deferred income taxes		—		42.3		10.2		—			52.5
Prepaid expenses and other		—		48.8		75.3		—			124.1
Total current assets		—		799.6		911.7		—			1,711.3
Property, plant and equipment, net		—		320.1		273.5		—			593.6
Investments		—		10.1		3.8					13.9
Investment in subsidiaries		8,562.9		—		—		(8,562.9	)		—
Intangible assets, net		—		3,239.3		691.1		—			3,930.4
Goodwill		—		3,271.4		843.0		—			4,114.4
Other assets		—		45.6		11.2		—			56.8
Total assets	$	8,562.9	$	7,686.1	$	2,734.3	$	(8,562.9	)	$	10,420.4
Liabilities & Shareholder’s Equity
Current liabilities:
Current portion of long-term debt	$	34.3	$	—	$	1.3	$	—		$	35.6
Accounts payable		—		71.5		44.7		—			116.2
Accrued interest		56.5		—		—		—			56.5
Accrued wages and commissions		—		69.5		52.5		—			122.0
Other accrued expenses		—		106.1		74.1		—			180.2
Total current liabilities		90.8		247.1		172.6		—			510.5
Long-term debt		5,790.0		—		2.2		—			5,792.2
Deferred income taxes		—		1,065.7		192.1		—			1,257.8
Other long-term liabilities		—		131.6		46.2		—			177.8
Total liabilities		5,880.8		1,444.4		413.1		—			7,738.3
Shareholder’s equity		2,682.1		6,241.7		2,321.2		(8,562.9	)		2,682.1
Total liabilities and shareholder’s equity	$	8,562.9	$	7,686.1	$	2,734.3	$	(8,562.9	)	$	10,420.4

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	Three Months Ended August 31, 2012
(in millions)	Biomet, Inc.			Guarantors			Non-Guarantors			Eliminations			Total
Net sales	$	—		$	464.8		$	242.6		$	—		$	707.4
Cost of sales		—			184.3			43.8			—			228.1
Gross profit		—			280.5			198.8			—			479.3
Operating expenses		—			286.1			124.2			—			410.3
Operating income (loss)		—			(5.6	)		74.6			—			69.0
Other (income) expense, net		159.3			(1.3	)		(3.4	)		—			154.6
Income (loss) before income taxes		(159.3	)		(4.3	)		78.0			—			(85.6	)
Tax expense (benefit)		(60.5	)		(1.7	)		8.1			—			(54.1	)
Equity in earnings of subsidiaries		67.3			—			—			(67.3	)		—
Net income (loss)	$	(31.5	)	$	(2.6	)	$	69.9		$	(67.3	)	$	(31.5	)
Other comprehensive income (loss)	$	(2.6	)	$	—		$	24.0		$	—		$	21.4
Total comprehensive income (loss)	$	(34.1	)	$	(2.6	)	$	93.9		$	(67.3	)	$	(10.1	)

	Three Months Ended August 31, 2011
(in millions)	Biomet, Inc.			Guarantors		Non-Guarantors		Eliminations			Total
Net sales	$	—		$	426.7	$	237.9	$	—		$	664.6
Cost of sales		—			121.3		94.0		—			215.3
Gross profit		—			305.4		143.9		—			449.3
Operating expenses		—			247.8		128.8		—			376.6
Operating income (loss)		—			57.6		15.1		—			72.7
Other (income) expense, net		123.4			1.4		7.8		—			132.6
Income (loss) before income taxes		(123.4	)		56.2		7.3		—			(59.9	)
Tax expense (benefit)		(39.4	)		17.9		0.8		—			(20.7	)
Equity in earnings of subsidiaries		44.8			—		—		(44.8	)		—
Net income (loss)	$	(39.2	)	$	38.3	$	6.5	$	(44.8	)	$	(39.2	)
Other comprehensive income (loss)	$	5.9		$	—	$	17.2	$	—		$	23.1
Total comprehensive income (loss)	$	(33.3	)	$	38.3	$	23.7	$	(44.8	)	$	(16.1	)

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Three Months Ended August 31, 2012
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations			Total
Cash flows provided by (used in) operating activities	$	65.4		$	32.3		$	55.1		$	(67.3	)	$	85.5
Capital expenditures		—			(28.4	)		(24.7	)		—			(53.1	)
Acquisitions, net of cash acquired - Trauma Acquisition		—			(277.5	)		(2.5	)		—			(280.0	)
Other		(447.8	)		493.6			(119.0	)		67.3			(5.9	)
Cash flows provided by (used in) investing activities		(447.8	)		187.7			(146.2	)		67.3			(339.0	)
Proceeds from Senior notes		1,000.0			—			—			—			1,000.0
Tender of Senior notes		(581.7	)		—			—			—			(581.7	)
Payment of fees related to refinancing activities		(30.1	)		—			—			—			(30.1	)
Other		(5.8	)		—			(3.1	)		—			(8.9	)
Cash flows used in financing activities		382.4			—			(3.1	)		—			379.3
Effect of exchange rate changes on cash		—			—			1.0			—			1.0
Increase in cash and cash equivalents		—			220.0			(93.2	)		—			126.8
Cash and cash equivalents, beginning of period		—			190.1			302.3			—			492.4
Cash and cash equivalents, end of period	$	—		$	410.1		$	209.1		$	—		$	619.2

	Three Months Ended August 31, 2011
(in millions)	Biomet, Inc.			Guarantor			Non-Guarantors			Eliminations			Total
Cash flows provided by (used in) operating activities	$	30.2		$	102.2		$	35.5		$	(44.8	)	$	123.1
Proceeds from sales/maturities of investments		—			33.7			—			—			33.7
Capital expenditures		—			(16.6	)		(22.6	)		—			(39.2	)
Other		(24.1	)		(10.4	)		(14.3	)		44.8			(4.0	)
Cash flows provided by (used in) investing activities		(24.1	)		6.7			(36.9	)		44.8			(9.5	)
Payments under senior secured credit facilities		(5.8	)		—			(3.1	)		—			(8.9	)
Other		(0.3	)		—			(0.5	)		—			(0.8	)
Cash flows used in financing activities		(6.1	)		—			(3.6	)		—			(9.7	)
Effect of exchange rate changes on cash		—			—			(0.5	)		—			(0.5	)
Increase in cash and cash equivalents		—			108.9			(5.5	)		—			103.4
Cash and cash equivalents, beginning of period		—			176.4			151.4			—			327.8
Cash and cash equivalents, end of period	$	—		$	285.3		$	145.9		$	—		$	431.2