Revenue Recognition

6 Months Ended

Jun. 30, 2019

REVENUE RECOGNITION

Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for 2018.

We disaggregate our net sales by product line and geography for each of our segments as we believe it best depicts how the nature, amount, timing and certainty of our net sales and cash flows are affected by economic factors.



Net Sales by Product Line
	Three Months				Six Months
	2019		2018		2019		2018
Orthopaedics:
Knees	$	440	$	422	$	879	$	841
Hips	343		336		679		667
Trauma and Extremities	394		387		790		776
Other	96		83		175		160
	$	1,273	$	1,228	$	2,523	$	2,444
MedSurg:
Instruments	$	520	$	438	$	998	$	850
Endoscopy	480		448		950		892
Medical	542		505		1,073		1,016
Sustainability	75		64		140		124
	$	1,617	$	1,455	$	3,161	$	2,882
Neurotechnology and Spine:
Neurotechnology	$	483	$	437	$	948	$	847
Spine	277		202		534		390
	$	760	$	639	$	1,482	$	1,237
Total	$	3,650	$	3,322	$	7,166	$	6,563



Net Sales by Geography
	Three Months 2019				Three Months 2018
	United States		International		United States		International
Orthopaedics:
Knees	$	324	$	116	$	304	$	118
Hips	219		124		207		129
Trauma and Extremities	252		142		242		145
Other	79		17		68		15
	$	874	$	399	$	821	$	407
MedSurg:
Instruments	$	414	$	106	$	339	$	99
Endoscopy	383		97		354		94
Medical	430		112		384		121
Sustainability	75		—		63		1
	$	1,302	$	315	$	1,140	$	315
Neurotechnology and Spine:
Neurotechnology	$	311	$	172	$	280	$	158
Spine	208		69		144		57
	$	519	$	241	$	424	$	215
Total	$	2,695	$	955	$	2,385	$	937



Net Sales by Geography
	Six Months 2019				Six Months 2018
	United States		International		United States		International
Orthopaedics:
Knees	$	644	$	235	$	605	$	236
Hips	432		247		412		255
Trauma and Extremities	506		284		487		289
Other	142		33		131		29
	$	1,724	$	799	$	1,635	$	809
MedSurg:
Instruments	$	795	$	203	$	655	$	195
Endoscopy	759		191		703		189
Medical	846		227		765		251
Sustainability	139		1		123		1
	$	2,539	$	622	$	2,246	$	636
Neurotechnology and Spine:
Neurotechnology	$	608	$	340	$	536	$	312
Spine	403		131		282		107
	$	1,011	$	471	$	818	$	419
Total	$	5,274	$	1,892	$	4,699	$	1,864

Contract Assets and Liabilities

On June 30, 2019 there were no contract assets recorded on our Consolidated Balance Sheets.

Our contract liabilities arise as a result of consideration received from customers at inception of contracts for certain businesses or where the timing of billing for services precedes satisfaction of our performance obligations. We generally satisfy performance obligations within one year from the contract inception date. Our contract liabilities were $321 and $327 on June 30, 2019 and December 31, 2018.