should be read in conjunction with the 2021 Form 10-K and subsequent filings with the SEC, including our Form 10-Q for the quarter ended

Zimmer Biomet Holdings, Inc. ("we", "us", "our", the "Company" and other similar words) is filing this Exhibit 99.1 to its Current Report on Form 8-K

(including this Exhibit 99.1, the "Form 8-K")

solely to recast certain financial information and related disclosures included in the Company's Annual Report on Form 10-K

for the fiscal year ended December 31, 2021, originally filed with the U.S. Securities and Exchange Commission (the "SEC") on February 25, 2022 (the "2021 Form 10-K").

On March 1, 2022, we completed the spinoff of our spine and dental businesses into a new public company, ZimVie Inc. ("ZimVie"). The historical results of our spine and dental businesses have been reflected as discontinued operations in our recast consolidated financial statements for all periods presented herein, including, as of December 31, 2021 and 2020, the assets and liabilities associated with these businesses being classified as assets and liabilities of discontinued operations in our consolidated balance sheets. See Note 3 to our consolidated financial statements for additional information.

is being filed solely to recast financial information and related disclosures contained in the 2021 Form 10-K

to reflect the spinoff of our spine and dental businesses.

The following items of the 2021 Form 10-K

are being recast as reflected in this Exhibit 99.1:

Except as specifically set forth herein to reflect the historical results of our spine and dental businesses as discontinued operations, no revisions have been made to the 2021 Form 10-K

to update for other information, developments or events that have occurred since the 2021 Form 10-K

was filed with the SEC. This Exhibit 99.1 does not purport to update the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section included in the 2021 Form 10-K except

with respect to the effects of the presentation of our spine and dental businesses as discontinued operations and as otherwise provided herein. This Exhibit 99.1 should be read in conjunction with the 2021 Form 10-K

and subsequent filings with the SEC, including our Form 10-Q

for the quarter ended March 31, 2022 and our Current Reports on Form 8-K.

These subsequent SEC filings contain important information regarding forward-looking statements, events, developments, and updates affecting us and our expectations that have occurred since the filing of the 2021 Form 10-K.

The information contained herein is not an amendment to, or a restatement of, the 2021 Form 10-K.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: the effects of the COVID-19 global

pandemic and other adverse public health developments on the global economy, our business and operations and the business and operations of our suppliers and customers, including the deferral of elective surgical procedures and our ability to collect accounts receivable; the failure of vaccine rollouts and other strategies to mitigate or reverse the impacts of the COVID-19 pandemic;

the failure of elective surgical procedures to recover at the levels or on the timeline anticipated; the risks and uncertainties related to our ability to successfully execute our restructuring plans; our ability to attract, retain and develop the highly skilled employees we need to support our business; the risks and uncertainties associated with the spinoff of ZimVie, including, without limitation, the tax-free

nature of the transaction, the tax-efficient

nature of any subsequent disposal of any ZimVie common stock we retain, possible disruptions in our relationships with customers, suppliers and other business partners and the possibility that the anticipated benefits and synergies of the transaction, strategic and competitive advantages, and future growth and other opportunities will not be realized within the expected time periods or at all;

the success of our quality and operational excellence initiatives, including ongoing quality remediation efforts at our Warsaw North Campus facility; the ability to remediate matters identified in inspectional observations or warning letters issued by the U.S. Food and Drug Administration (FDA), while continuing to satisfy the demand for our products; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; the ability to retain the employees, independent agents and distributors who market our products; dependence on a limited number of suppliers for key raw materials and outsourced activities; the possibility that the anticipated synergies and other benefits from mergers and acquisitions will not be realized, or will not be realized within the expected time periods; the risks and uncertainties related to our ability to successfully integrate the operations, products, employees and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the FDA and foreign government regulators, such as more stringent requirements for regulatory clearance of products; the outcome of government investigations; competition; pricing pressures; changes in customer demand for our products and services caused by demographic changes or other factors; the impact of healthcare reform measures; reductions in reimbursement levels by third-party payors and cost containment efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, including the volume-based procurement in China; dependence on new product development, technological advances and innovation; shifts in the product category or regional sales mix of our products and services; supply and prices of raw materials and products; control of costs and expenses; the ability to obtain and maintain adequate intellectual property protection; breaches or failures of our information technology systems or products, including by cyberattack, unauthorized access or theft; the ability to form and implement alliances; changes in tax obligations arising from tax reform measures, including European Union rules on state aid, or examinations by tax authorities; product liability, intellectual property and commercial litigation losses; changes in general industry and market conditions, including domestic and international growth rates; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; the effects of inflation, including the effects of different rates of inflation in different countries, on our costs, especially of titanium used in our products, and the costs of our products; the effects of supply chain continuity disruptions; and the impact of the ongoing financial and political uncertainty on countries in EMEA relating to the Russian-Ukrainian crisis and otherwise, on the ability to collect accounts receivable in affected countries. A further list and description of these risks and uncertainties and other factors can be found in our 2021 Form 10-K,

including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate.

On March 1, 2022, Zimmer Biomet Holdings, Inc. ("we", "us", "our", "the Company" and other similar words) completed the spinoff of our spine and dental businesses into a new public company, ZimVie Inc. ("ZimVie). The historical results of our spine and dental businesses have been reflected as discontinued operations in our consolidated financial statements, including, as of December 31, 2021 and 2020, the assets and liabilities associated with these businesses are classified as assets and liabilities of discontinued operations in our consolidated balance sheet. See Note 3 to our consolidated financial statements for additional information.

The following discussion and analysis should be read in conjunction with the consolidated financial statements and the corresponding notes included elsewhere in this Form 8-K.

The following discussion and analysis is presented on a continuing operations basis unless otherwise noted. Certain percentages presented in this discussion and analysis are calculated from the underlying whole-dollar amounts and therefore may not recalculate from the rounded numbers used for disclosure purposes.

EXECUTIVE LEVEL OVERVIEW

Impact of the COVID-19

Our results continue to be impacted by the COVID-19

global pandemic. The vast majority of our net sales are derived from products used in elective surgical procedures. As COVID-19

rapidly started to spread throughout the world in early 2020, our net sales decreased dramatically as countries took precautions to prevent the spread of the virus with lockdowns and stay-at-home

measures and as hospitals deferred elective surgical procedures. The timing, level and sustainability of the recovery of elective surgical procedures has been difficult to predict, as a number of factors are involved, including which geographies are affected and the different measures governments and healthcare systems take in response to the virus in those areas. In the second half of 2021, the highly transmissible Delta and Omicron variants resulted in further deferrals of elective surgical procedures. Additionally, we believe that staffing shortages at hospitals are also contributing to the deferral of elective surgical procedures.

2021 Financial Highlights

In 2021, our net sales increased by 11.4 percent compared to 2020 primarily due to the significant deferral of elective surgical procedures at the onset of the COVID-19

pandemic in 2020. Our net earnings, including discontinued operations, were $401.6 million in 2021 compared to a net loss of $138.9 million in 2020. In 2021, we returned to profitability compared to a net loss in 2020, primarily due to higher net sales combined with fixed operating costs that did not increase proportionally to the increase in net sales, reduced losses from discontinued operations, and a reduction in operating expenses including goodwill and intangible asset impairment charges and certain fixed overhead and hourly production worker labor expenses. In 2020, we recognized $503.0 million of goodwill and intangible asset impairment charges primarily due to the forecasted impact of COVID-19

on our operating results. In the second quarter of 2020, we also temporarily suspended or limited production at certain manufacturing facilities, resulting in additional expense recognized in cost of products sold that related to certain fixed overhead costs and hourly production worker labor expenses that are included in the cost of inventory when these facilities are operating at normal capacity. The additional expense for suspended and limited production continued throughout 2020 and while we did recognize similar charges in 2021, they were lower than the 2020 charges. These reduced expenses in 2021 were partially offset by a charge for the early extinguishment of debt, higher research and development expenses, including certain agreements we entered into to gain access to or acquire third-party in-process

R&D projects and higher litigation-related charges.

We believe the COVID-19

variant surges and continuing staffing shortages that occurred late in 2021 will continue to negatively impact our net sales in 2022. For expenses, we expect that supply chain and inflation pressures will result in higher expenses. However, we anticipate these higher expenses will be partially offset by savings from our restructuring programs.

RESULTS OF OPERATIONS

We analyze sales by three geographies, the Americas, EMEA and Asia Pacific, and by the following product categories: Knees; Hips; S.E.T.; and Other.

Net Sales by Geography

The following tables present net sales by geography and the components of the percentage changes (dollars in millions):

Net Sales by Product Category

The following tables present net sales by product category and the components of the percentage changes (dollars in millions):

The following table presents net sales by product category by geography for our Knees and Hips product categories, which represent our most significant product categories (dollars in millions):

Demand (Volume/Mix) Trends

Changes in volume and mix of product sales had a positive effect of 12.3 percent and a negative effect of 9.9 percent on year-over-year sales during the years ended December 31, 2021 and 2020, respectively. Volume trends were positive in 2021 as elective surgical procedures were not as significantly impacted by the COVID-19

pandemic as compared to 2020 when there were significant deferrals at the beginning of the pandemic. However, 2021 did experience periods with higher deferrals of elective surgical procedures, most notably at the beginning of 2021 before vaccines were widely available and during surges of the Delta and Omicron virus variants. Accordingly, net sales in 2021 did not return to the pre-pandemic

Based upon country dynamics, volume changes varied by region in 2021. The volume increases in 2021 were largely a product of how much the COVID-19

pandemic negatively affected the various regions in 2020. In EMEA, stay-at-home

measures were far more prevalent than other geographies in 2020 and therefore volume increases were greater in this region in 2021 as elective surgical procedures resumed. In the Americas, elective surgical procedures in the U.S. varied from state-to-state

depending on local infection rates and preventative measures in 2020. In Asia Pacific, containment of the COVID-19

virus varied from country-to-country

in 2020, but overall some of our larger markets in this region were not as affected in 2020 as other locations. Additionally, in Asia Pacific in 2021, China sales were negatively impacted from a combination of variables related to the implementation of a nationwide volume-based procurement ("VBP") process. The China VBP had a negative effect on volume due to inventory reductions by distributors and short-term deferral of procedures as patients waited to have a surgical procedure performed until after VBP pricing is effective.

Global selling prices had negative effects of 2.1 percent and 2.5 percent on year-over-year sales during 2021 and 2020, respectively. In the majority of countries in which we operate, we continue to experience pricing pressure from governmental healthcare cost containment efforts and from local hospitals and health systems. Pricing in 2021 was also negatively affected by the anticipated China VBP implementation due to ongoing pricing negotiations with distributor partners.

Foreign Currency Exchange Rates

In 2021 and 2020, changes in foreign currency exchange rates had positive effects of 1.2 percent and 0.4 percent, respectively, on year-over-year sales.

Estimated Market Trends

The following table presents estimated* 2021 global market information (dollars in billions):

Expenses as a Percent of Net Sales

Cost of Products Sold and Intangible Asset Amortization

We calculate gross profit as net sales minus cost of products sold and intangible asset amortization. Our gross margin percentage is gross profit divided by net sales. The following table sets forth the factors that contributed to the gross margin changes in each of 2021 and 2020 compared to the prior year:

The increase in gross margin percentage in 2021 compared to 2020 was primarily due to lower excess and obsolete inventory charges and lower impact from intangible asset amortization as well as the fact that 2020 had higher charges from certain fixed overhead costs and hourly production worker labor expenses when we temporarily suspended or limited production at certain manufacturing facilities. Intangible asset amortization and excess and obsolete inventory charges did not increase ratably with the increase in our net sales in 2021 and therefore were a positive impact to our gross margin percentage. These favorable items were partially offset by hedge losses recognized in the current year as part of our hedging program compared to hedge gains in the prior year, and lower average selling prices.

The decrease in gross margin percentage in 2020 compared to 2019 was primarily due to temporarily suspended or limited production at certain facilities, higher impact from intangible asset amortization, lower average selling prices and excess and higher obsolete inventory charges and charges related to products we intend to discontinue. Intangible asset amortization and excess and obsolete inventory charges did not decline ratably with the significant decline in our net sales in 2020 and therefore were a significant impact to our gross margin percentage. The inventory charges on discontinued products are driven by overlapping product lines in our portfolio and we have plans to discontinue one of the product lines, or from decisions not to spend additional funds to keep certain products up-to-date

with the latest quality standards or requirements, such as the European Union Medical Device Regulation ("EU MDR"), and so we have decided to discontinue those products.

Research & development ("R&D") expenses increased in both amount and as a percentage of net sales in 2021 compared to 2020 primarily due to reengaging in R&D projects in 2021, including the implementation of the EU MDR, compared to 2020 when COVID-19

caused delays in project spending. In addition to reengaging in projects, in 2021 we also entered into certain agreements to gain access to or acquire third-party in-process

R&D ("IPR&D") projects that resulted in charges of $65.0 million.

R&D expenses decreased in both amount and as a percentage of net sales in 2020 compared to 2019 primarily due to savings as a result of the global restructuring program we initiated in December 2019 (the "2019 Restructuring Plan") and lower spending on travel and lower spending on certain project costs, including the EU MDR, due to COVID-19.

Selling, general & administrative ("SG&A") expenses increased in 2021 compared to 2020, but decreased as a percentage of net sales. SG&A expenses increased primarily due to higher variable selling and distribution costs related to increased net sales, higher performance-based compensation in 2021 as similar costs were reduced in the prior year due to the effect COVID-19

had on our operating results, higher litigation-related charges, and increased travel and medical training and education costs as we have partially resumed these activities. Despite the increase in SG&A expenses, SG&A as a percentage of net sales declined in 2021 when compared to 2020 as our SG&A expenses included many fixed costs that did not increase ratably with the increase in net sales in the 2021 period.

SG&A expenses decreased in 2020 compared to 2019, but increased as a percentage of net sales. SG&A expenses decreased due to lower variable selling and distribution expenses from the decline in our net sales, COVID-19

cost reductions for travel, consulting and other projects, savings from our 2019 Restructuring Plan and lower charges related to our compliance with a Deferred Prosecution Agreement (the "DPA") that we entered into with the U.S. Department of Justice, which concluded on February 9, 2021. These favorable items were partially offset by higher litigation-related charges in 2020 compared to 2019. The increase in SG&A expenses as a percentage of net sales in 2020 compared to 2019 was due to various fixed expenses that did not decline ratably with the significant decline in our net sales.

In 2021, we recognized an intangible asset impairment charge of $16.3 million. In 2020, we recognized goodwill and intangible asset impairment charges of $503.0 million, including charges of $470.0 million related to our EMEA reporting unit. In 2019, we recognized intangible asset impairment charges of $70.1 million. For more information regarding these charges, see Note 12 to our consolidated financial statements.

In December of 2021 and 2019, we initiated restructuring programs. The December 2021 restructuring program is intended to reorganize our operations due to the spinoff of ZimVie with an objective of reducing costs. The December 2019 restructuring program has an objective of reducing costs to allow us to invest in higher priority growth opportunities. We recognized expenses of $125.7 million, $107.2 million and $48.2 million in the years ended December 31, 2021, 2020 and 2019, respectively, attributable to restructuring and other cost reduction initiatives, primarily related to employee termination benefits, sales agent contract terminations, and consulting and project management expenses associated with these programs. For more information regarding these expenses, see Note 5 to our consolidated financial statements.

We incurred quality remediation expenses of $52.8 million, $50.9 million and $82.0 million in the years ended December 31, 2021, 2020 and 2019, respectively. We continue to incur quality remediation expenses to complete our remediation milestones that address inspectional observations on Form 483 and a warning letter issued by the U.S. Food and Drug Administration ("FDA") at our Warsaw North Campus facility, among other matters. The decline in expenses in 2021 and 2020 when compared to 2019 was due to the natural regression as various remediation milestones were completed.

Acquisition, integration, divestiture and related expenses relate primarily to acquisitions made in 2020.

Other Income (Expense), net, Interest Expense, net, Loss on Early Extinguishment of Debt and Income Taxes

In 2021, our other income, net was lower than in 2020 primarily due to losses recognized from changes to the fair value of our equity investments in 2021 compared to gains recognized in the prior year and lower pension-related gains recognized in 2021 compared to 2020. In 2020, we recognized net income in other income (expense), net compared to net expenses in 2019, primarily due to the gains recognized from changes to the fair value of our equity investments and higher gains from certain components of pension expense in 2020.

Interest expense, net, decreased in 2021 when compared to 2020 primarily due to debt paydown and fixed-to-variable

interest rate swaps we entered into in 2021. Interest expense, net, declined in 2020 compared to 2019 due to debt paydown and Euro notes issued in the fourth quarter of 2019 that were used to refinance debt with higher interest rates.

In 2021, we recognized a $165.1 million loss on the early extinguishment of debt. See Note 14 to our consolidated financial statements for additional information on this loss.

Our effective tax rate ("ETR") on earnings (loss) from continuing operations before income taxes was 10.7 percent, 91.3 percent and negative 27.0 percent for the years ended December 31, 2021, 2020 and 2019, respectively. In 2021, this was primarily driven by the foreign rate differential as our foreign locations have lower tax rates and favorable return-to-provision

changes in estimate offset by unfavorable tax rate changes. In 2020, the income tax benefit was driven by changes in estimates to uncertain tax positions, favorable tax audit settlements, jurisdictional mix of earnings and losses, and a $43.0 million tax benefit from Switzerland's Federal Act on Tax Reform and AHV Financing ("TRAF"). Other significant impacts to the ETR in 2020 included the $470.0 million goodwill impairment charge, which resulted in a loss before taxes, but had no corresponding tax benefit. In 2019, we recognized an overall tax benefit in the year due to a $315.0 million benefit from Switzerland's TRAF in addition to the tax impact of certain restructuring transactions in Switzerland. The TRAF was effective January 1, 2020 and includes the abolishment of various favorable federal and cantonal tax regimes. The TRAF provided transitional relief measures for companies that are losing the tax benefit of a ruling, including a "step-up"

for amortizable goodwill, equal to the amount of future tax benefit they would have received under their existing ruling, subject to certain limitations.

Absent discrete tax events, we expect our future ETR will be lower than the U.S. corporate income tax rate of 21.0 percent due to our mix of earnings between U.S. and foreign locations, which have lower corporate income tax rates. Our ETR in future periods could also potentially be impacted by: changes in our mix of pre-tax

earnings; changes in tax rates, tax laws or their interpretation, including the European Union rules on state aid; the outcome of various federal, state and foreign audits; and the expiration of certain statutes of limitations. Currently, we cannot reasonably estimate the impact of these items on our financial results.

Segment Operating Profit