IDEA XBRL DOCUMENT - ZIMMER HOLDINGS INC

Document Sample
IDEA XBRL DOCUMENT - ZIMMER HOLDINGS INC Powered By Docstoc
					          Document and Entity Information (USD $)
                                                        3 Months Ended
                                                         Mar. 31, 2010

Document and Entity Information [Abstract]
Entity Registrant Name                              ZIMMER HOLDINGS INC
Entity Central Index Key                            0001136869
Document Type                                       10-Q
Document Period End Date                            2010-03-31
Amendment Flag                                      false
Document Fiscal Year Focus                                                  2,010
Document Fiscal Period Focus                        Q1
Current Fiscal Year End Date                        --12-31
Entity Well-known Seasoned Issuer                   Yes
Entity Voluntary Filers                             No
Entity Current Reporting Status                     Yes
Entity Filer Category                               Large Accelerated Filer
Entity Public Float
Entity Common Stock, Shares Outstanding
Apr. 23, 2010          Jun. 30, 2009




                             $9,120,369,894
         202,807,605
   Consolidated Statements of Earnings (Unaudited) (USD $)
                                                             3 Months Ended
                                                              Mar. 31, 2010
                  In Millions, except Per Share data
Consolidated Statements of Earnings [Abstract]
Net Sales                                                                $1,062.8
Cost of products sold                                                       268.4
Gross Profit                                                                  794.4
Research and development                                                         51
Selling, general and administrative                                           446.7
Acquisition, integration, realignment and other (Note 2)                        2.6
Operating expenses                                                            500.3
Operating Profit                                                               294.1
Interest and other, net                                                       (14.6)
Earnings before income taxes                                                  279.5
Provision for income taxes                                                     74.1
Net Earnings of Zimmer Holdings, Inc.                                     $205.4
Earnings Per Common Share
Basic                                                                         $1.01
Diluted                                                                       $1.01
Weighted Average Common Shares Outstanding
Basic                                                                           203
Diluted                                                                       204.2
3 Months Ended
 Mar. 31, 2009


             $992.6
              230.2
                 762.4
                  51.9
                 423.7
                     7
                 482.6
                 279.8
                  (3.7)
                 276.1
                  73.9
             $202.2

                 $0.91
                 $0.91

                 221.5
                 222.1
                    Consolidated Balance Sheets (USD $)
                                                                      3 Months Ended
                                                                       Mar. 31, 2010
                               In Millions
Current Assets:
Cash and cash equivalents                                                          $821.2
Certificates of deposit                                                              50.2
Accounts receivable, less allowance for doubtful accounts                           767.1
Inventories, net                                                                    896.5
Prepaid expenses and other current assets                                             118
Deferred income taxes                                                               220.8
Total current assets                                                               2,873.8
Property, plant and equipment, net                                                 1,190.5
Goodwill                                                                           2,712.3
Intangible assets, net                                                                 834
Other assets                                                                         211.4
Total Assets                                                                           7,822
Current Liabilities:
Accounts payable                                                                         136
Income taxes                                                                            67.9
Other current liabilities                                                              451.3
Total current liabilities                                                              655.2
Other long-term liabilities                                                            325.9
Long-term debt                                                                         1,127
Total Liabilities                                                                  2,108.1
Commitments and Contingencies (Note 14)
Stockholders' Equity:
Common stock, $0.01 par value, one billion shares authorized, 254.2
million shares issued in 2010 (254.1 million in 2009)                                  2.5
Paid-in capital                                                                    3,231.6
Retained earnings                                                                  5,307.9
Accumulated other comprehensive income                                               304.9
Treasury stock, 51.4 million shares in 2010 (49.9 million in 2009)                 (3,133)
Total Stockholders' Equity                                                         5,713.9
Total Liabilities and Stockholders' Equity                                         $7,822
12 Months Ended
 Dec. 31, 2009


              $691.7
                66.4
               751.4
               913.2
               105.4
               209.9
               2,738
             1,221.7
             2,783.5
                 858
               184.3
             7,785.5

                  134.6
                   57.5
                  498.6
               690.7
               328.5
             1,127.6
             2,146.8




                  2.5
              3,214.6
              5,102.5
                358.6
            (3,039.5)
             5,638.7
            $7,785.5
          Consolidated Balance Sheets (Parenthetical)
                                                        Mar. 31, 2010

Stockholders' Equity:
Common stock, par value                                                 0.01
Common stock, shares authorized                                1,000,000,000
Common stock, issued                                             254,200,000
Treasury stock, shares                                            51,400,000
Dec. 31, 2009


                0.01
       1,000,000,000
         254,100,000
          49,900,000
  Consolidated Statements of Cash Flows (Unaudited) (USD $)
                                                                3 Months Ended
                                                                 Mar. 31, 2010
                              In Millions
Cash flows provided by (used in) operating activities:
Net earnings of Zimmer Holdings, Inc.                                        $205.4
Adjustments to reconcile net earnings to cash provided by
operating activities:
Depreciation and amortization                                                      84.9
Share-based compensation                                                           12.7
Income tax benefit from stock option exercises                                      1.7
Excess income tax benefit from stock option exercises                             (0.7)
Inventory step-up                                                                   1.3
Changes in operating assets and liabilities, net of effect of
acquisitions:
Income taxes                                                                        2.3
Receivables                                                                      (32.5)
Inventories                                                                        17.2
Accounts payable and accrued expenses                                            (37.1)
Other assets and liabilities                                                        4.3
Net cash provided by operating activities                                        259.5
Cash flows provided by (used in) investing activities:
Additions to instruments                                                         (39.3)
Additions to other property, plant and equipment                                 (11.6)
Purchases of certificates of deposit                                                (4)
Sales of certificates of deposit                                                     20
Acquisition of intellectual property rights
Investments in other assets                                                       (2.9)
Net cash used in investing activities                                            (37.8)
Cash flows provided by (used in) financing activities:
Net borrowing under credit facilities
Proceeds from employee stock compensation plans                                     4.9
Excess income tax benefit from stock option exercises                               0.7
Repurchase of common stock                                                       (93.5)
Acquisition of noncontrolling interest
Net cash used in financing activities                                            (87.9)
Effect of exchange rates on cash and cash equivalents                             (4.3)
Increase in cash and cash equivalents                                         129.5
Cash and cash equivalents, beginning of year                                  691.7
Cash and cash equivalents, end of period                                     $821.2
3 Months Ended
 Mar. 31, 2009


             $202.2


                  79.6
                  17.1
                   0.1

                   4.2


                44.9
               (6.3)
              (32.2)
             (111.5)
              (13.5)
                 184.6

                 (45.3)
                 (30.9)


                  (7.6)
                  (0.6)
                 (84.4)

                   210
                   3.3

             (301.4)
               (7.8)
                 (95.9)
                  (4.1)
                0.2
              212.6
             $212.8
                        Basis of Presentation
                                                    3 Months Ended
                                                     Mar. 31, 2010

Basis of Presentation [Abstract]
                                                   1. Basis of
                                                Presentation      The
                                                financial data presented
                                                herein is unaudited and
                                                should be read in conjunction
                                                with the consolidated
                                                financial statements and
                                                accompanying notes included
                                                in the 2009 Annual Report on
                                                Form10-K filed by Zimmer
                                                Holdings, Inc. In our opinion,
                                                the accompanying unaudited
                                                consolidated financial
                                                statements include all
                                                adjustments necessary for a
                                                fair statement of the financial
                                                position, results of
                                                operations and cash flows for
                                                the interim periods
                                                presented. The December31,
                                                2009 condensed balance
                                                sheet data was derived from
                                                audited financial statements,
                                                but does not include all
                                                disclosures required by
                                                accounting principles
                                                generally accepted in the
                                                UnitedStates of America.
                                                Results for interim periods
                                                should not be considered
                                                indicative of results for the
Basis of Presentation                           full year. Certain amounts in
                                                the three month period
                    Significant Accounting Policies
                                                          3 Months Ended
                                                           Mar. 31, 2010

Significant Accounting Policies [Abstract]
                                                         2.
                                                      Significant Accounting
                                                      Policies    Acquisition,
                                                      Integration, Realignment and
                                                      Other We recognize
                                                      expenses resulting directly
                                                      from our business
                                                      combinations and other
                                                      items as Acquisition,
                                                      integration, realignment and
                                                      other expenses. Acquisition,
                                                      integration, realignment and
                                                      other expenses for the three
                                                      month periods ended
                                                      March31, 2010 and 2009
                                                      included (in millions):

                                                         Three Months
                                                         Ended
                                                      March31,
                                                      2010       2009
                                                      Impairment of assets
                                                      $ 0.4        $
                                                       Consulting and
                                                      professional fees
                                                      1.0      3.1
                                                       Employee
                                                      severance and retention
                                                         (0.1 )
                                                      0.2 Information
                                                      technology integration
Significant Accounting Policies                        0.1      0.1
                                                       Facility and
                   Comprehensive Income
                                              3 Months Ended
                                               Mar. 31, 2010

Comprehensive Income [Abstract]
                                            3.
                                          Comprehensive Income
                                           The reconciliation of
                                          net earnings to
                                          comprehensive income is as
                                          follows:
                                               Three
                                          Months
                                          Ended March31,
                                           2010       2009
                                              (In millions)
                                           Net earnings of
                                          Zimmer Holdings, Inc.
                                          $ 205.4        $
                                          202.2 Other
                                          Comprehensive Income:

                                           Foreign currency
                                          cumulative translation
                                          adjustments        (82.4
                                           )     (41.6 )
                                           Unrealized foreign
                                          currency hedge gains, net of
                                          tax      28.7
                                           22.3
                                          Reclassification adjustments
                                          on foreign currency hedges,
                                          net of tax      (0.9
                                          )     (6.1 )
                                           Unrealized losses on
                                          securities, net of tax
Comprehensive Income                           (0.5 )
                                           Adjustments to prior
                         Inventories
                                           3 Months Ended
                                            Mar. 31, 2010

Inventories [Abstract]
                                         4.
                                       Inventories

                                         March31,
                                         December31,

                                       2010      2009

                                        (In millions)
                                          Finished goods
                                        $ 708.7       $
                                        718.6
                                          Work in
                                       progress       57.1
                                          48.0
                                            Raw
                                       materials      130.7
                                          146.6




                                       Inventories, net $
                                       896.5     $ 913.2




Inventories
                  Property, Plant and Equipment
                                                      3 Months Ended
                                                       Mar. 31, 2010

Property, Plant and Equipment [Abstract]
                                                    5. Property,
                                                  Plant and Equipment

                                                     March31,
                                                     December31,
                                                     2010
                                                  2009      (In
                                                  millions) Land
                                                  $ 21.6       $
                                                  21.8 Buildings and
                                                  equipment
                                                  1,144.4      1,147.7
                                                   Capitalized
                                                  software costs
                                                  162.2      158.8
                                                   Instruments
                                                   1,221.5
                                                  1,210.2
                                                  Construction in progress
                                                     61.0
                                                  62.0

                                                  2,610.7     2,600.5
                                                   Accumulated
                                                  depreciation
                                                  (1,420.2 )
                                                  (1,378.8 )

                                                  Property, plant and
                                                  equipment, net $
                                                  1,190.5     $
Property, Plant and Equipment                     1,221.7
                        Other Current Liabilities
                                                        3 Months Ended
                                                         Mar. 31, 2010

Other Current Liabilities [Abstract]
                                                      6. Other Current
                                                    Liabilities

                                                    March31,
                                                    December31,
                                                    2010        2009
                                                       (In millions)
                                                     Other current
                                                    liabilities:
                                                     Salaries, wages
                                                    and benefits $
                                                    75.7       $ 95.7
                                                     Accrued liabilities
                                                       375.6
                                                    402.9
                                                       Total other
                                                    current liabilities $
                                                    451.3        $ 498.6


Other Current Liabilities
                  Debt
                             3 Months Ended
                              Mar. 31, 2010

Debt [Abstract]
                           7. Debt
                          Long-term debt as of
                         March31, 2010 consisted of
                         our unsecured senior notes
                         (Senior Notes) and
                         borrowings under our
                         $1,350million senior credit
                         agreement (Senior Credit
                         Facility). Outstanding long-
                         term debt as of March31,
                         2010 was $1,127.0million,
                         comprised of $998.8million
                         from our Senior Notes and
                         $128.2million from our
                         Senior Credit Facility. There
                         was no short-term debt
                         outstanding. The estimated
                         fair value of our Senior Notes
                         as of March31, 2010, based
                         on quoted prices for the
                         specific securities from
                         transactions in active
                         markets, was $990.9million.
                         The carrying value of the
                         Senior Credit Facility
                         approximates fair value, as
                         the underlying instruments
                         have variable interest rates
Debt                     at market value.
        Fair Value Measurements of Assets and Liabilities
                                                                  3 Months Ended
                                                                   Mar. 31, 2010

Fair Value Measurement of Assets and Liabilities [Abstract]
                                                                8. Fair
                                                              Value Measurement of Assets
                                                              and Liabilities   The
                                                              following assets and liabilities
                                                              are recorded at fair value on
                                                              a recurring basis as of
                                                              March31, 2010 (in millions):


                                                                   Fair
                                                              Value Measurements at
                                                              Reporting Date Using:

                                                              Quoted
                                                                   Prices
                                                              in
                                                                   Active
                                                                 Significant

                                                              Markets for      Other
                                                                Significant

                                                              Identical
                                                              Observable
                                                              Unobservable
                                                              Recorded       Assets
                                                                 Inputs
                                                              Inputs
                                                              Balance      (Level 1)
                                                                 (Level 2)
                                                              (Level 3) Assets
Fair Value Measurement of Assets and Liabilities
          Derivative Instruments and Hedging Activities
                                                               3 Months Ended
                                                                Mar. 31, 2010

Derivative Instruments and Hedging Activities [Abstract]
                                                              9.
                                                           Derivative Instruments and
                                                           Hedging Activities
                                                           We are exposed to certain
                                                           market risks relating to our
                                                           ongoing business operations,
                                                           including foreign currency
                                                           risk, commodity price risk,
                                                           interest rate risk and credit
                                                           risk. We manage our
                                                           exposure to these and other
                                                           market risks through regular
                                                           operating and financing
                                                           activities. Currently, the only
                                                           risk that we manage through
                                                           the use of derivative
                                                           instruments is foreign
                                                           currency risk. We
                                                           operate on a global basis
                                                           and are exposed to the risk
                                                           that our financial condition,
                                                           results of operations and
                                                           cash flows could be
                                                           adversely affected by
                                                           changes in foreign currency
                                                           exchange rates. To reduce
                                                           the potential effects of
                                                           foreign currency exchange
                                                           rate movements on net
                                                           earnings, we enter into
                                                           derivative financial
Derivative Instruments and Hedging Activities              instruments in the form of
                                                           foreign currency exchange
                          Income Taxes
                                             3 Months Ended
                                              Mar. 31, 2010

Income Taxes [Abstract]
                                            10. Income
                                         Taxes       We expect
                                         that the net amount of tax
                                         liability for unrecognized tax
                                         benefits will change in the
                                         next twelve months. We are
                                         currently under audit in
                                         numerous federal, state and
                                         foreign jurisdictions. While it
                                         is possible that such matters
                                         will be resolved in the next
                                         twelve months, we cannot
                                         reasonably estimate the
                                         amount or the periods in
                                         which changes in the
                                         unrecognized tax benefits
Income Taxes                             will occur.
                      Retirement Benefit Plans
                                                     3 Months Ended
                                                      Mar. 31, 2010

Retirement Benefit Plans [Abstract]
                                                   11.
                                                 Retirement Benefit Plans
                                                  We have defined
                                                 benefit pension plans
                                                 covering certain U.S.and
                                                 Puerto Rico employees. The
                                                 employees who are not
                                                 participating in the defined
                                                 benefit plans receive
                                                 additional benefits under our
                                                 defined contribution plans.
                                                 Plan benefits are primarily
                                                 based on years of credited
                                                 service and the participants
                                                 compensation. In addition to
                                                 the U.S.and Puerto Rico
                                                 defined benefit pension
                                                 plans, we sponsor various
                                                 non-U.S.pension
                                                 arrangements, including
                                                 retirement and termination
                                                 benefit plans required by
                                                 local law or coordinated with
                                                 government sponsored
                                                 plans. The
                                                 components of net pension
                                                 expense for the three month
                                                 periods ended March31,
                                                 2010 and 2009, for our
                                                 U.S.and non-U.S.defined
                                                 benefit retirement plans are
Retirement Benefit Plans                         as follows (in millions):
                      Earnings Per Share
                                               3 Months Ended
                                                Mar. 31, 2010

Earnings Per Share [Abstract]
                                             12.
                                           Earnings Per Share
                                           The following is a
                                           reconciliation of weighted
                                           average shares for the basic
                                           and diluted shares
                                           computations (in millions):

                                              Three Months
                                              Ended
                                              March31,
                                              2010
                                           2009 Weighted
                                           average shares outstanding
                                           for basic net earnings per
                                           share       203.0
                                            221.5 Effect
                                           of dilutive stock options and
                                           other equity awards
                                            1.2      0.6

                                            Weighted average
                                           shares outstanding for
                                           diluted net earnings per
                                           share      204.2
                                            222.1
                                                 During
                                           the three month period
                                           ended March31, 2010, an
                                           average of 12.8million
                                           options to purchase shares
Earnings Per Share                         of common stock were not
                                           included in the computation
                      Segment Information
                                                3 Months Ended
                                                 Mar. 31, 2010

Segment Information [Abstract]
                                              13.
                                            Segment Information
                                             We design, develop,
                                            manufacture and market
                                            orthopaedic reconstructive
                                            implants, dental implants,
                                            spinal implants, trauma
                                            products and related surgical
                                            products which include
                                            surgical supplies and
                                            instruments designed to aid
                                            in surgical procedures and
                                            post-operation rehabilitation.
                                            We also provide other
                                            healthcare related services.
                                            Revenue related to these
                                            other healthcare related
                                            services currently represents
                                            less than 1percent of our
                                            total net sales. We manage
                                            operations through three
                                            major geographic segments
                                            the Americas, which is
                                            comprised principally of the
                                            United States and includes
                                            other North, Central and
                                            South American markets;
                                            Europe, which is comprised
                                            principally of Europe and
                                            includes the Middle East and
                                            Africa; and Asia Pacific,
Segment Information                         which is comprised primarily
                                            of Japan and includes other
                Commitments and Contingencies
                                                    3 Months Ended
                                                     Mar. 31, 2010

Commitments and Contingencies [Abstract]
                                                   14.
                                                Commitments and
                                                Contingencies
                                                Intellectual Property and
                                                Product Liability-Related
                                                Litigation In July
                                                2008, we temporarily
                                                suspended marketing and
                                                distribution of the Durom
                                                Acetabular Component
                                                (Durom Cup) in the
                                                U.S.Following our
                                                announcement, product
                                                liability lawsuits and other
                                                claims have been asserted
                                                against us, some of which
                                                we have settled. There are a
                                                number of claims still
                                                pending, and additional
                                                claims may be submitted.
                                                 We recorded a
                                                provision of $69.0million in
                                                2008, representing
                                                managements estimate of
                                                the Durom Cup-related
                                                claims that would be made in
                                                association with revisions
                                                occurring within two years of
                                                the original surgery. In the
                                                third quarter of 2009, based
                                                on claims information we
Commitments and Contingencies                   received after we made our
                                                initial estimate, we increased

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:1
posted:5/16/2012
language:
pages:24
fanzhongqing fanzhongqing http://
About