Revenue Recognition

9 Months Ended

Sep. 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				Nine Months
	2019		2018		2019		2018
Orthopaedics:
Knees	$	426	$	395	$	1,305	$	1,236
Hips	332		316		1,011		983
Trauma and Extremities	407		376		1,197		1,152
Other	97		84		272		244
	$	1,262	$	1,171	$	3,785	$	3,615
MedSurg:
Instruments	$	476	$	442	$	1,474	$	1,292
Endoscopy	474		443		1,424		1,335
Medical	554		492		1,627		1,508
Sustainability	72		66		212		190
	$	1,576	$	1,443	$	4,737	$	4,325
Neurotechnology and Spine:
Neurotechnology	$	488	$	435	$	1,436	$	1,282
Spine	261		193		795		583
	$	749	$	628	$	2,231	$	1,865
Total	$	3,587	$	3,242	$	10,753	$	9,805



Net Sales by Geography
	Three Months 2019				Three Months 2018
	United States		International		United States		International
Orthopaedics:
Knees	$	318	$	108	$	291	$	104
Hips	211		121		198		118
Trauma and Extremities	262		145		242		134
Other	81		16		67		17
	$	872	$	390	$	798	$	373
MedSurg:
Instruments	$	373	$	103	$	352	$	90
Endoscopy	377		97		346		97
Medical	442		112		393		99
Sustainability	71		1		66		—
	$	1,263	$	313	$	1,157	$	286
Neurotechnology and Spine:
Neurotechnology	$	314	$	174	$	284	$	150
Spine	195		66		142		52
	$	509	$	240	$	426	$	202
Total	$	2,644	$	943	$	2,381	$	861



Net Sales by Geography
	Nine Months 2019				Nine Months 2018
	United States		International		United States		International
Orthopaedics:
Knees	$	962	$	343	$	896	$	340
Hips	643		368		610		373
Trauma and Extremities	768		429		729		423
Other	223		49		198		46
	$	2,596	$	1,189	$	2,433	$	1,182
MedSurg:
Instruments	$	1,168	$	306	$	1,007	$	285
Endoscopy	1,136		288		1,049		286
Medical	1,288		339		1,158		350
Sustainability	210		2		189		1
	$	3,802	$	935	$	3,403	$	922
Neurotechnology and Spine:
Neurotechnology	$	922	$	514	$	820	$	462
Spine	598		197		424		159
	$	1,520	$	711	$	1,244	$	621
Total	$	7,918	$	2,835	$	7,080	$	2,725

Contract Assets and Liabilities

On September 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 $319 and $327 on September 30, 2019 and December 31, 2018.