Revenue Recognition

12 Months Ended

Dec. 31, 2019

REVENUE RECOGNITION

We disaggregate our net sales by product line and geographic location 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.

Products and services are primarily transferred to customers at a point in time, with some transfers of services taking place over time. In 2019 less than 10% of our sales were recognized as services transferred over time. Refer to Note 1 for further discussion on our revenue recognition policies.



Segment Net Sales
Orthopaedics:	2019		2018		2017
Knees	$	1,815	$	1,701	$	1,595
Hips	1,383		1,336		1,303
Trauma and Extremities	1,639		1,580		1,478
Other	415		374		337
	$	5,252	$	4,991	$	4,713
MedSurg:
Instruments	$	2,041	$	1,822	$	1,678
Endoscopy	1,983		1,846		1,652
Medical	2,264		2,118		1,969
Sustainability	286		259		258
	$	6,574	$	6,045	$	5,557
Neurotechnology and Spine:
Neurotechnology	$	1,973	$	1,737	$	1,423
Spine	1,085		828		751
	$	3,058	$	2,565	$	2,174
Total	$	14,884	$	13,601	$	12,444



United States Net Sales
Orthopaedics:	2019		2018		2017
Knees	$	1,347	$	1,244	$	1,169
Hips	882		838		820
Trauma and Extremities	1,051		1,001		950
Other	334		300		276
	$	3,614	$	3,383	$	3,215
MedSurg:
Instruments	$	1,608	$	1,424	$	1,304
Endoscopy	1,577		1,432		1,290
Medical	1,787		1,630		1,525
Sustainability	283		257		257
	$	5,255	$	4,743	$	4,376
Neurotechnology and Spine:
Neurotechnology	$	1,271	$	1,115	$	900
Spine	817		607		568
	$	2,088	$	1,722	$	1,468
Total	$	10,957	$	9,848	$	9,059



International Net Sales
Orthopaedics:	2019		2018		2017
Knees	$	469	$	457	$	426
Hips	500		498		483
Trauma and Extremities	588		579		528
Other	81		74		61
	$	1,638	$	1,608	$	1,498
MedSurg:
Instruments	$	433	$	398	$	374
Endoscopy	406		414		362
Medical	477		488		444
Sustainability	3		2		1
	$	1,319	$	1,302	$	1,181
Neurotechnology and Spine:
Neurotechnology	$	702	$	622	$	523
Spine	268		221		183
	$	970	$	843	$	706
Total	$	3,927	$	3,753	$	3,385

Orthopaedics

Orthopaedics products consist primarily of implants used in hip and knee joint replacements and trauma and extremity surgeries. Substantially all Orthopaedics sales are recognized when we have received a purchase order and appropriate notification the product has been used or implanted. For certain Orthopaedic products in the "other" category, we recognize sales at a point in time, as well

as over time for performance obligations that may include an obligation to complete installation, provide training and ongoing services. Performance obligations are satisfied within one year.

MedSurg

MedSurg products include surgical equipment and navigation systems (Instruments), endoscopic and communications systems (Endoscopy), patient handling, emergency medical equipment and intensive care disposable products (Medical), reprocessed and remanufactured medical devices (Sustainability) and other medical device products used in a variety of medical specialties. Substantially all MedSurg sales are recognized when a purchase order has been received and control has transferred. For certain Endoscopy, Instruments and Medical services, we may recognize sales over time as we satisfy performance obligations that may include an obligation to complete installation, provide training and perform ongoing services, generally performed within one year.

Neurotechnology and Spine

Neurotechnology and Spine products include neurosurgical, neurovascular, and spinal implant devices. Our neurotechnology offering includes products used for minimally invasive endovascular techniques; a comprehensive line of products for traditional brain and open skull based surgical procedures; orthobiologic and biosurgery products, including synthetic bone grafts and vertebral augmentation products; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke. Our spinal implant offering includes cervical, thoracolumbar and interbody systems used in spinal injury, deformity and degenerative therapies. Substantially all Neurotechnology and Spine sales are recognized when a purchase order has been received and control has transferred.

Contract Assets and Liabilities

The nature of our products and services do not generally give rise to contract assets as we typically do not incur costs to fulfill a contract before a product or service is provided to a customer. Our costs to obtain contracts are typically in the form of sales commissions paid to employees of Stryker or third-party agents. We have elected to expense sales commissions associated with obtaining a contract as incurred as the amortization period is generally less than one year. These costs have been presented within selling, general and administrative expenses. On December 31, 2019 there were no contract assets recorded in 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 $313 and $327 on December 31, 2019 and December 31, 2018.