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Media Investors Monica Kendrick Cole Lannum (574) 372-4989 (574) 371-9480 Monica.Kendrick@ZimmerBiomet.com Cole.Lannum@ZimmerBiomet.com Derek Davis (574) 372-4250 Derek.Davis@ZimmerBiomet.com Barbara Goslee (574) 371-944

Friday, April 6, 2018 3 min read
Key Takeaway: 345 E. Main St. Warsaw, IN 46580 www.zimmerbiomet.com Exhibit 99.1 Media Investors Monica Kendrick Cole Lannum (574) 372-4989 (574) 371-9480 Monica.Kendrick@ZimmerBiomet.com Cole.Lannum@ZimmerBiomet.com Derek Davis (574) 372-4250 Derek.Davis@ZimmerBiomet.com Barbara Goslee

Full Press Release Details

345 E. Main St.
Warsaw, IN 46580
www.zimmerbiomet.com Exhibit 99.1
Media Investors
Monica Kendrick Cole Lannum
(574) 372-4989 (574) 371-9480
Monica.Kendrick@ZimmerBiomet.com Cole.Lannum@ZimmerBiomet.com
Derek Davis (574) 372-4250 Derek.Davis@ZimmerBiomet.com
Barbara Goslee
(574) 371-9449
Barb.Goslee@ZimmerBiomet.com
The following supplemental financial information presents, for informational purposes only, certain previously-reported financial information of Zimmer Biomet Holdings, Inc. (the "Company"), as adjusted to reflect the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07").
Certain of the previously-reported financial information consisted of reconciliations of financial measures not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") to the most directly comparable GAAP measures. These reconciliations are presented below, updated to utilize the revised GAAP financial measures, which have been adjusted to reflect the adoption of ASU 2014-09 and ASU 2017-07, in the reconciliations. The non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.
Revised gross profit, revised gross margin, revised operating profit (loss) and revised operating profit (loss) margin (in each case, revised to reflect the adoption of ASU 2014-09 and ASU
2017-07) are presented on a GAAP basis and on an adjusted basis. Adjusted revised gross profit and adjusted revised gross margin exclude the effects of inventory step-up, other inventory and manufacturing-related charges and intangible asset amortization. Adjusted revised operating profit and adjusted revised operating profit margin exclude the effects of inventory step-up, other inventory and manufacturing-related charges, intangible asset amortization, goodwill impairment and special items.
Management of the Company uses these non-GAAP financial measures internally to evaluate the performance of the business and believes they are useful measures that provide meaningful supplemental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported operating results, to perform trend analysis, to better identify operating trends that may otherwise be masked or distorted by these types of items and to provide additional transparency of certain items. In addition, certain of these non-GAAP financial measures are used as performance metrics in the Company's incentive compensation programs.
Certain amounts in the 2016 and 2017 net sales by product categories have been reclassified to conform to the 2018 presentation.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2016
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 1,904.0 $ (3.2 ) $ 1,900.8
Cost of products sold, excluding intangible asset amortization 640.6 - 640.6
Intangible asset amortization 126.6 - 126.6
Research and development 85.7 - 85.7
Selling, general and administrative 716.9 (2.0 ) 714.9
Special items 88.7 - 88.7
Operating expenses 1,658.5 (2.0 ) 1,656.5
Operating Profit 245.5 (1.2 ) 244.3
Other expense, net (3.8 ) 1.2 (2.6 )
Interest income 1.3 - 1.3
Interest expense (88.2 ) - (88.2 )
Earnings before income taxes 154.8 - 154.8
Provision for income taxes 46.1 - 46.1
Net Earnings 108.7 - 108.7
Less: Net Loss attributable to noncontrolling interest (0.1 ) - (0.1 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 108.8 $ - $ 108.8
Earnings Per Common Share
Basic $ 0.54 $ - $ 0.54
Diluted $ 0.54 $ - $ 0.54
Weighted Average Common Shares Outstanding
Basic 200.1 - 200.1
Diluted 202.2 - 202.2
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2016
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 1,934.0 $ (3.9 ) $ 1,930.1
Cost of products sold, excluding intangible asset amortization 640.1 - 640.1
Intangible asset amortization 133.8 - 133.8
Research and development 88.6 - 88.6
Selling, general and administrative 732.0 (2.7 ) 729.3
Special items 137.9 - 137.9
Operating expenses 1,732.4 (2.7 ) 1,729.7
Operating Profit 201.6 (1.2 ) 200.4
Other expense, net (3.8 ) 1.2 (2.6 )
Interest income 0.8 - 0.8
Interest expense (88.1 ) - (88.1 )
Earnings before income taxes 110.5 - 110.5
Provision for income taxes 142.2 - 142.2
Net (Loss) (31.7 ) - (31.7 )
Less: Net Loss attributable to noncontrolling interest (0.4 ) - (0.4 )
Net (Loss) of Zimmer Biomet Holdings, Inc. $ (31.3 ) $ - $ (31.3 )
(Loss) Per Common Share
Basic $ (0.16 ) $ - $ (0.16 )
Diluted $ (0.16 ) $ - $ (0.16 )
Weighted Average Common Shares Outstanding
Basic 199.4 - 199.4
Diluted 199.4 - 199.4
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 1,832.8 $ (3.6 ) $ 1,829.2
Cost of products sold, excluding intangible asset amortization 479.3 - 479.3
Intangible asset amortization 164.3 - 164.3
Research and development 95.6 - 95.6
Selling, general and administrative 727.7 (2.4 ) 725.3
Special items 170.4 - 170.4
Operating expenses 1,637.3 (2.4 ) 1,634.9
Operating Profit 195.5 (1.2 ) 194.3
Other (expense)/income, net (1.1 ) 1.2 0.1
Interest income 0.6 - 0.6
Interest expense (91.5 ) - (91.5 )
Earnings before income taxes 103.5 - 103.5
Provision for income taxes (54.4 ) - (54.4 )
Net Earnings 157.9 - 157.9
Less: Net Loss attributable to noncontrolling interest (0.9 ) - (0.9 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 158.8 $ - $ 158.8
Earnings Per Common Share
Basic $ 0.79 $ - $ 0.79
Diluted $ 0.78 $ - $ 0.78
Weighted Average Common Shares Outstanding
Basic 200.1 - 200.1
Diluted 202.9 - 202.9
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2016
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 2,013.1 $ (4.8 ) $ 2,008.3
Cost of products sold, excluding intangible asset amortization 621.8 - 621.8
Intangible asset amortization 141.2 - 141.2
Research and development 95.7 - 95.7
Selling, general and administrative 756.3 (3.6 ) 752.7
Special items 214.8 - 214.8
Operating expenses 1,829.8 (3.6 ) 1,826.2
Operating Profit 183.3 (1.2 ) 182.1
Other expense, net (62.6 ) 1.2 (61.4 )
Interest income 0.2 - 0.2
Interest expense (90.1 ) - (90.1 )
Earnings before income taxes 30.8 - 30.8
Provision for income taxes (38.9 ) - (38.9 )
Net Earnings 69.7 - 69.7
Less: Net Loss attributable to noncontrolling interest 0.1 - 0.1
Net Earnings of Zimmer Biomet Holdings, Inc. $ 69.6 $ - $ 69.6
Earnings Per Common Share
Basic $ 0.35 $ - $ 0.35
Diluted $ 0.34 $ - $ 0.34
Weighted Average Common Shares Outstanding
Basic 200.4 - 200.4
Diluted 202.5 - 202.5
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2016
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 7,683.9 $ (15.5 ) $ 7,668.4
Cost of products sold, excluding intangible asset amortization 2,381.8 - 2,381.8
Intangible asset amortization 565.9 - 565.9
Research and development 365.6 - 365.6
Selling, general and administrative 2,932.9 (10.7 ) 2,922.2
Special items 611.8 - 611.8
Operating expenses 6,858.0 (10.7 ) 6,847.3
Operating Profit 825.9 (4.8 ) 821.1
Other expense, net (71.3 ) 4.8 (66.5 )
Interest income 2.9 - 2.9
Interest expense (357.9 ) - (357.9 )
Earnings before income taxes 399.6 - 399.6
Provision for income taxes 95.0 - 95.0
Net Earnings 304.6 - 304.6
Less: Net Loss attributable to noncontrolling interest (1.3 ) - (1.3 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 305.9 $ - $ 305.9
Earnings Per Common Share
Basic $ 1.53 $ - $ 1.53
Diluted $ 1.51 $ - $ 1.51
Weighted Average Common Shares Outstanding
Basic 200.0 - 200.0
Diluted 202.4 - 202.4
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 1,977.3 $ (4.9 ) $ 1,972.4
Cost of products sold, excluding intangible asset amortization 512.9 - 512.9
Intangible asset amortization 152.0 - 152.0
Research and development 91.1 - 91.1
Selling, general and administrative 760.8 (2.6 ) 758.2
Special items 110.1 - 110.1
Operating expenses 1,626.9 (2.6 ) 1,624.3
Operating Profit 350.4 (2.3 ) 348.1
Other expense, net (2.8 ) 2.3 (0.5 )
Interest income 0.5 - 0.5
Interest expense (82.9 ) - (82.9 )
Earnings before income taxes 265.2 - 265.2
Provision for income taxes (34.1 ) - (34.1 )
Net Earnings 299.3 - 299.3
Less: Net Loss attributable to noncontrolling interest (0.1 ) - (0.1 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 299.4 $ - $ 299.4
Earnings Per Common Share
Basic $ 1.49 $ - $ 1.49
Diluted $ 1.47 $ - $ 1.47
Weighted Average Common Shares Outstanding
Basic 201.1 - 201.1
Diluted 203.1 - 203.1
(1 ) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2017
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 1,954.4 $ (4.9 ) $ 1,949.5
Cost of products sold, excluding intangible asset amortization 527.7 - 527.7
Intangible asset amortization 147.7 - 147.7
Research and development 90.1 - 90.1
Selling, general and administrative 748.0 (2.7 ) 745.3
Special items 158.6 - 158.6
Operating expenses 1,672.1 (2.7 ) 1,669.4
Operating Profit 282.3 (2.2 ) 280.1
Other expense, net (3.9 ) 2.2 (1.7 )
Interest income 0.3 - 0.3
Interest expense (82.3 ) - (82.3 )
Earnings before income taxes 196.4 - 196.4
Provision for income taxes 12.3 - 12.3
Net Earnings 184.1 - 184.1
Less: Net Loss attributable to noncontrolling interest (0.1 ) - (0.1 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 184.2 $ - $ 184.2
Earnings Per Common Share
Basic $ 0.91 $ - $ 0.91
Diluted $ 0.90 $ - $ 0.90
Weighted Average Common Shares Outstanding
Basic 201.8 - 201.8
Diluted 203.7 - 203.7
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 1,818.1 $ (5.0 ) $ 1,813.1
Cost of products sold, excluding intangible asset amortization 500.9 - 500.9
Intangible asset amortization 152.7 - 152.7
Research and development 91.2 - 91.2
Selling, general and administrative 694.5 (2.8 ) 691.7
Goodwill impairment 32.7 - 32.7
Special items 132.7 - 132.7
Operating expenses 1,604.7 (2.8 ) 1,601.9
Operating Profit 213.4 (2.2 ) 211.2
Other expense, net (4.5 ) 2.2 (2.3 )
Interest income 0.6 - 0.6
Interest expense (82.3 ) - (82.3 )
Earnings before income taxes 127.2 - 127.2
Provision for income taxes 28.4 - 28.4
Net Earnings 98.8 - 98.8
Less: Net Loss attributable to noncontrolling interest - - -
Net Earnings of Zimmer Biomet Holdings, Inc. $ 98.8 $ - $ 98.8
Earnings Per Common Share
Basic $ 0.49 $ - $ 0.49
Diluted $ 0.48 $ - $ 0.48
Weighted Average Common Shares Outstanding
Basic 202.3 - 202.3
Diluted 204.0 - 204.0
(1 ) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2017
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 2,074.3 $ (6.0 ) $ 2,068.3
Cost of products sold, excluding intangible asset amortization 591.4 - 591.4
Intangible asset amortization 151.5 - 151.5
Research and development 95.0 - 95.0
Selling, general and administrative 770.6 (3.8 ) 766.8
Goodwill impairment 272.0 - 272.0
Special items 231.7 - 231.7
Operating expenses 2,112.2 (3.8 ) 2,108.4
Operating Profit (37.9 ) (2.2 ) (40.1 )
Other expense, net (7.1 ) 2.2 (4.9 )
Interest income 0.8 - 0.8
Interest expense (80.0 ) - (80.0 )
Earnings before income taxes (124.2 ) - (124.2 )
Provision for income taxes (1,355.4 ) - (1,355.4 )
Net Earnings 1,231.2 - 1,231.2
Less: Net Loss attributable to noncontrolling interest (0.2 ) - (0.2 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 1,231.4 $ - $ 1,231.4
Earnings Per Common Share
Basic $ 6.08 $ - $ 6.08
Diluted $ 6.03 $ - $ 6.03
Weighted Average Common Shares Outstanding
Basic 202.5 - 202.5
Diluted 204.1 - 204.1
(1 ) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2017
(in millions, except per share amounts, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Net Sales $ 7,824.1 $ (20.8 ) $ 7,803.3
Cost of products sold, excluding intangible asset amortization 2,132.9 - 2,132.9
Intangible asset amortization 603.9 - 603.9
Research and development 367.4 - 367.4
Selling, general and administrative 2,973.9 (11.9 ) 2,962.0
Goodwill impairment 304.7 - 304.7
Special items 633.1 - 633.1
Operating expenses 7,015.9 (11.9 ) 7,004.0
Operating Profit 808.2 (8.9 ) 799.3
Other expense, net (18.3 ) 8.9 (9.4 )
Interest income 2.2 - 2.2
Interest expense (327.5 ) - (327.5 )
Earnings before income taxes 464.6 - 464.6
Provision for income taxes (1,348.8 ) - (1,348.8 )
Net Earnings 1,813.4 - 1,813.4
Less: Net Loss attributable to noncontrolling interest (0.4 ) - (0.4 )
Net Earnings of Zimmer Biomet Holdings, Inc. $ 1,813.8 $ - $ 1,813.8
Earnings Per Common Share
Basic $ 8.98 $ - $ 8.98
Diluted $ 8.90 $ - $ 8.90
Weighted Average Common Shares Outstanding
Basic 201.9 - 201.9
Diluted 203.7 - 203.7
(1) New accounting standard adjustments include a reclassication of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09 and a reclassification of certain components of pension expense from Selling, general and administrative expenses to Other expense, net due to the adoption of ASU 2017-07.
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED MARCH 31, 2016
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,177.2 $ (3.2 ) $ 1,174.0
EMEA 456.3 - 456.3
Asia Pacific 270.5 - 270.5
Total $ 1,904.0 $ (3.2 ) $ 1,900.8
Product Categories
Knees
Americas $ 430.2 $ (1.1 ) $ 429.1
EMEA 174.0 - 174.0
Asia Pacific 99.9 - 99.9
Total 704.1 (1.1 ) 703.0
Hips
Americas $ 245.2 $ (0.7 ) $ 244.5
EMEA 136.7 - 136.7
Asia Pacific 85.1 - 85.1
Total 467.0 (0.7 ) 466.3
S.E.T. (2) 401.0 (1.1 ) 399.9
Dental 108.6 - 108.6
Spine & CMF 141.2 - 141.2
Other 82.1 (0.3 ) 81.8
Total $ 1,904.0 $ (3.2 ) $ 1,900.8
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED JUNE 30, 2016
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,181.0 $ (3.9 ) $ 1,177.1
EMEA 460.9 - 460.9
Asia Pacific 292.1 - 292.1
Total $ 1,934.0 $ (3.9 ) $ 1,930.1
Product Categories
Knees
Americas $ 417.9 $ (1.1 ) $ 416.8
EMEA 168.8 - 168.8
Asia Pacific 111.1 - 111.1
Total 697.8 (1.1 ) 696.7
Hips
Americas $ 247.9 $ (0.6 ) $ 247.3
EMEA 138.7 - 138.7
Asia Pacific 89.8 - 89.8
Total 476.4 (0.6 ) 475.8
S.E.T. (2) 412.2 (1.4 ) 410.8
Dental 118.0 - 118.0
Spine & CMF 145.8 (0.4 ) 145.4
Other 83.8 (0.4 ) 83.4
Total $ 1,934.0 $ (3.9 ) $ 1,930.1
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2016
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,175.9 $ (3.6 ) $ 1,172.3
EMEA 368.8 - 368.8
Asia Pacific 288.1 - 288.1
Total $ 1,832.8 $ (3.6 ) $ 1,829.2
Product Categories
Knees
Americas $ 398.2 $ (1.2 ) $ 397.0
EMEA 130.3 - 130.3
Asia Pacific 103.9 - 103.9
Total 632.4 (1.2 ) 631.2
Hips
Americas $ 238.3 $ (0.7 ) $ 237.6
EMEA 112.1 - 112.1
Asia Pacific 89.3 - 89.3
Total 439.7 (0.7 ) 439.0
S.E.T. (2) 401.8 (1.3 ) 400.5
Dental 95.9 - 95.9
Spine & CMF 183.7 (0.1 ) 183.6
Other 79.3 (0.3 ) 79.0
Total $ 1,832.8 $ (3.6 ) $ 1,829.2
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED DECEMBER 31, 2016
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,268.1 $ (4.8 ) $ 1,263.3
EMEA 444.4 - 444.4
Asia Pacific 300.6 - 300.6
Total $ 2,013.1 $ (4.8 ) $ 2,008.3
Product Categories
Knees
Americas $ 445.1 $ (1.5 ) $ 443.6
EMEA 165.0 - 165.0
Asia Pacific 111.7 - 111.7
Total 721.8 (1.5 ) 720.3
Hips
Americas $ 253.3 $ (0.6 ) $ 252.7
EMEA 134.6 - 134.6
Asia Pacific 93.4 - 93.4
Total 481.3 (0.6 ) 480.7
S.E.T. (2) 429.4 (1.5 ) 427.9
Dental 105.4 - 105.4
Spine & CMF 191.3 (0.8 ) 190.5
Other 83.9 (0.4 ) 83.5
Total $ 2,013.1 $ (4.8 ) $ 2,008.3
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE YEAR ENDED DECEMBER 31, 2016
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 4,802.2 $ (15.5 ) $ 4,786.7
EMEA 1,730.4 - 1,730.4
Asia Pacific 1,151.3 - 1,151.3
Total $ 7,683.9 $ (15.5 ) $ 7,668.4
Product Categories
Knees
Americas $ 1,691.4 $ (4.9 ) $ 1,686.5
EMEA 638.1 - 638.1
Asia Pacific 426.6 - 426.6
Total 2,756.1 (4.9 ) 2,751.2
Hips
Americas $ 984.7 $ (2.6 ) $ 982.1
EMEA 522.1 - 522.1
Asia Pacific 357.6 - 357.6
Total 1,864.4 (2.6 ) 1,861.8
S.E.T. (2) 1,644.4 (5.3 ) 1,639.1
Dental 427.9 - 427.9
Spine & CMF 662.0 (1.3 ) 660.7
Other 329.1 (1.4 ) 327.7
Total $ 7,683.9 $ (15.5 ) $ 7,668.4
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED MARCH 31, 2017
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,234.8 $ (4.9 ) $ 1,229.9
EMEA 453.2 - 453.2
Asia Pacific 289.3 - 289.3
Total $ 1,977.3 $ (4.9 ) $ 1,972.4
Product Categories
Knees
Americas $ 429.9 $ (1.9 ) $ 428.0
EMEA 167.9 - 167.9
Asia Pacific 104.9 - 104.9
Total 702.7 (1.9 ) 700.8
Hips
Americas $ 245.5 $ (1.0 ) $ 244.5
EMEA 136.2 - 136.2
Asia Pacific 93.1 - 93.1
Total 474.8 (1.0 ) 473.8
S.E.T. (2) 425.1 (1.6 ) 423.5
Dental 107.8 - 107.8
Spine & CMF 186.3 - 186.3
Other 80.6 (0.4 ) 80.2
Total $ 1,977.3 $ (4.9 ) $ 1,972.4
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED JUNE 30, 2017
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,208.8 $ (4.9 ) $ 1,203.9
EMEA 438.2 - 438.2
Asia Pacific 307.4 - 307.4
Total $ 1,954.4 $ (4.9 ) $ 1,949.5
Product Categories
Knees
Americas $ 406.8 $ (1.4 ) $ 405.4
EMEA 159.8 - 159.8
Asia Pacific 114.8 - 114.8
Total 681.4 (1.4 ) 680.0
Hips
Americas $ 244.2 $ (0.8 ) $ 243.4
EMEA 130.7 - 130.7
Asia Pacific 93.9 - 93.9
Total 468.8 (0.8 ) 468.0
S.E.T. (2) 422.8 (1.7 ) 421.1
Dental 110.4 - 110.4
Spine & CMF 194.0 (0.7 ) 193.3
Other 77.0 (0.3 ) 76.7
Total $ 1,954.4 $ (4.9 ) $ 1,949.5
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2017
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,142.0 $ (5.0 ) $ 1,137.0
EMEA 381.1 - 381.1
Asia Pacific 295.0 - 295.0
Total $ 1,818.1 $ (5.0 ) $ 1,813.1
Product Categories
Knees
Americas $ 383.2 $ (1.7 ) $ 381.5
EMEA 135.1 - 135.1
Asia Pacific 106.3 - 106.3
Total 624.6 (1.7 ) 622.9
Hips
Americas $ 227.4 $ (0.8 ) $ 226.6
EMEA 115.1 - 115.1
Asia Pacific 91.1 - 91.1
Total 433.6 (0.8 ) 432.8
S.E.T. (2) 406.6 (1.8 ) 404.8
Dental 92.9 - 92.9
Spine & CMF 184.9 (0.4 ) 184.5
Other 75.5 (0.3 ) 75.2
Total $ 1,818.1 $ (5.0 ) $ 1,813.1
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE THREE MONTHS ENDED DECEMBER 31, 2017
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 1,280.0 $ (6.0 ) $ 1,274.0
EMEA 472.7 - 472.7
Asia Pacific 321.6 - 321.6
Total $ 2,074.3 $ (6.0 ) $ 2,068.3
Product Categories
Knees
Americas $ 443.4 $ (1.8 ) $ 441.6
EMEA 181.6 - 181.6
Asia Pacific 107.1 - 107.1
Total 732.1 (1.8 ) 730.3
Hips
Americas $ 255.4 $ (1.0 ) $ 254.4
EMEA 136.4 - 136.4
Asia Pacific 106.4 - 106.4
Total 498.2 (1.0 ) 497.2
S.E.T. (2) 454.6 (2.2 ) 452.4
Dental 107.5 - 107.5
Spine & CMF 194.3 (0.5 ) 193.8
Other 87.6 (0.5 ) 87.1
Total $ 2,074.3 $ (6.0 ) $ 2,068.3
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
NET SALES
FOR THE YEAR ENDED DECEMBER 31, 2017
(in millions, unaudited)
As Originally Reported Adjustments (1) As Adjusted
Geographic Results
Americas $ 4,865.6 $ (20.8 ) $ 4,844.8
EMEA 1,745.2 - 1,745.2
Asia Pacific 1,213.3 - 1,213.3
Total $ 7,824.1 $ (20.8 ) $ 7,803.3
Product Categories
Knees
Americas $ 1,663.3 $ (6.8 ) $ 1,656.5
EMEA 644.4 - 644.4
Asia Pacific 433.1 - 433.1
Total 2,740.8 (6.8 ) 2,734.0
Hips
Americas $ 972.5 $ (3.6 ) $ 968.9
EMEA 518.4 - 518.4
Asia Pacific 384.5 - 384.5
Total 1,875.4 (3.6 ) 1,871.8
S.E.T. (2) 1,709.1 (7.3 ) 1,701.8
Dental 418.6 - 418.6
Spine & CMF 759.5 (1.6 ) 757.9
Other 320.7 (1.5 ) 319.2
Total $ 7,824.1 $ (20.8 ) $ 7,803.3
(1) New accounting standard adjustments include a reclassification of certain costs from Selling, general and administrative expenses to Net Sales due to the adoption of ASU 2014-09.
(2) Surgical, Sports Medicine, Foot and Ankle, Extremities and Trauma
ZIMMER BIOMET HOLDINGS, INC.
Reconciliation of Revised Gross Profit & Margin to Adjusted Gross Profit & Margin
For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2017
(in millions, unaudited)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 December 31, 2017
Revised (1) Net Sales $ 1,972.4 $ 1,949.5 $ 1,813.1 $ 2,068.3 $ 7,803.3
Cost of products sold, excluding intangible asset amortization 512.9 527.7 500.9 591.4 2,132.9
Intangible asset amortization 152.0 147.7 152.7 151.5 603.9
Revised (1) Gross profit $ 1,307.5 $ 1,274.1 $ 1,159.5 $ 1,325.4 $ 5,066.5
Inventory step-up and other inventory and manufacturing related charges 23.2 24.9 10.4 26.1 84.6
Intangible asset amortization 152.0 147.7 152.7 151.5 603.9
Adjusted gross profit $ 1,482.7 $ 1,446.7 $ 1,322.6 $ 1,503.0 $ 5,755.0
Revised (1) Gross margin 66.3 % 65.4 % 64.0 % 64.1 % 64.9 %
Inventory step-up and other inventory and manufacturing related charges 1.2 1.2 0.5 1.3 1.2
Intangible asset amortization 7.7 7.6 8.4 7.3 7.7
Adjusted gross margin 75.2 % 74.2 % 72.9 % 72.7 % 73.8 %
(1) Revisions resulting from adoption of ASU 2014-09
ZIMMER BIOMET HOLDINGS, INC.
Reconciliation of Revised Gross Profit & Margin to Adjusted Gross Profit & Margin
For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2016
(in millions, unaudited)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016
Revised (1) Net Sales $ 1,900.8 $ 1,930.1 $ 1,829.2 $ 2,008.3 $ 7,668.4
Cost of products sold, excluding intangible asset amortization 640.6 640.1 479.3 621.8 2,381.8
Intangible asset amortization 126.6 133.8 164.3 141.2 565.9
Revised (1) Gross profit $ 1,133.6 $ 1,156.2 $ 1,185.6 $ 1,245.3 $ 4,720.7
Inventory step-up and other inventory and manufacturing related charges 178.3 156.6 22.8 111.4 469.1
Intangible asset amortization 126.6 133.8 164.3 141.2 565.9
Adjusted gross profit $ 1,438.5 $ 1,446.6 $ 1,372.7 $ 1,497.9 $ 5,755.7
Revised (1) Gross margin 59.6 % 59.9 % 64.8 % 62.0 % 61.6 %
Inventory step-up and other inventory and manufacturing related charges 9.4 8.1 1.2 5.6 6.1
Intangible asset amortization 6.7 6.9 9.0 7.0 7.4
Adjusted gross margin 75.7 % 74.9 % 75.0 % 74.6 % 75.1 %
(1) Revisions resulting from adoption of ASU 2014-09
ZIMMER BIOMET HOLDINGS, INC.
Reconciliation of Revised Operating Profit (Loss) & Margin to Adjusted Operating Profit & Margin
For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2017
(in millions, unaudited)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 December 31, 2017
Revised (1) Operating profit (loss) $ 348.1 $ 280.1 $ 211.2 $ (40.1 ) $ 799.3
Inventory step-up and other inventory and manufacturing related charges 23.2 24.9 10.4 26.1 84.6
Intangible asset amortization 152.0 147.7 152.7 151.5 603.9
Goodwill impairment - - 32.7 272.0 304.7
Special items 110.1 158.6 132.7 231.7 633.1
Adjusted operating profit $ 633.4 $ 611.3 $ 539.7 $ 641.2 $ 2,425.6
Revised (1) Operating profit (loss) margin 17.7 % 14.4 % 11.7 % (1.9 )% 10.2 %
Inventory step-up and other inventory and manufacturing related charges 1.2 1.2 0.5 1.3 1.2
Intangible asset amortization 7.7 7.6 8.4 7.3 7.7
Goodwill impairment - - 1.8 13.2 3.9
Special items 5.5 8.2 7.4 11.1 8.1
Adjusted operating profit margin 32.1 % 31.4 % 29.8 % 31.0 % 31.1 %
(1) Revisions resulting from adoption of ASU 2014-09 and ASU 2017-07
ZIMMER BIOMET HOLDINGS, INC.
Reconciliation of Operating Profit & Margin to Adjusted Operating Profit & Margin
For the Quarterly and Full Year Periods in Calendar Year Ended December 31, 2016
(in millions, unaudited)
Three Months Ended Three Months Ended Three Months Ended Three Months Ended Year Ended
March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016
Revised (1) Operating profit $ 244.3 $ 200.4 $ 194.3 $ 182.1 $ 821.1
Inventory step-up and other inventory and manufacturing related charges 178.3 156.6 22.8 111.4 469.1
Intangible asset amortization 126.6 133.8 164.3 141.2 565.9
Special items 88.7 137.9 170.4 214.8 611.8
Adjusted operating profit $ 637.9 $ 628.7 $ 551.8 $ 649.5 $ 2,467.9
Revised (1) Operating profit margin 12.9 % 10.4 % 10.6 % 9.1 % 10.7 %
Inventory step-up and other inventory and manufacturing related charges 9.4 8.1 1.2 5.6 6.1
Intangible asset amortization 6.7 6.9 9.0 7.0 7.4
Special items 4.6 7.2 9.4 10.6 8.0
Adjusted operating profit margin 33.6 % 32.6 % 30.2 % 32.3 % 32.2 %
(1) Revisions resulting from adoption of ASU 2014-09 and ASU 2017-07
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Last updated: Apr 6, 2018