XML 33 R11.htm IDEA: XBRL DOCUMENT v3.20.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue Recognition [Abstract]  
Revenue Recognition 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 2020 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:202020192018
Knees$1,567 $1,815 $1,701 
Hips1,206 1,383 1,336 
Trauma and Extremities1,722 1,639 1,580 
Other464 415 374 
$4,959 $5,252 $4,991 
MedSurg:
Instruments$1,863 $1,959 $1,822 
Endoscopy1,763 1,983 1,846 
Medical2,524 2,264 2,118 
Sustainability250 286 259 
$6,400 $6,492 $6,045 
Neurotechnology and Spine:
Neurotechnology$1,945 $1,983 $1,737 
Spine1,047 1,157 828 
$2,992 $3,140 $2,565 
Total$14,351 $14,884 $13,601 
United States Net Sales
Orthopaedics:202020192018
Knees$1,170 $1,347 $1,244 
Hips777 882 838 
Trauma and Extremities1,139 1,051 1,001 
Other387 334 300 
$3,473 $3,614 $3,383 
MedSurg:
Instruments$1,471 $1,542 $1,424 
Endoscopy1,408 1,577 1,432 
Medical1,910 1,787 1,630 
Sustainability247 283 257 
$5,036 $5,189 $4,743 
Neurotechnology and Spine:
Neurotechnology$1,182 $1,281 $1,115 
Spine764 873 607 
$1,946 $2,154 $1,722 
Total$10,455 $10,957 $9,848 
International Net Sales
Orthopaedics:202020192018
Knees$397 $469 $457 
Hips429 500 498 
Trauma and Extremities583 588 579 
Other77 81 74 
$1,486 $1,638 $1,608 
MedSurg:
Instruments$392 $417 $398 
Endoscopy355 406 414 
Medical614 477 488 
Sustainability3 3 2 
$1,364 $1,303 $1,302 
Neurotechnology and Spine:
Neurotechnology$763 $702 $622 
Spine283 284 221 
$1,046 $986 $843 
Total$3,896 $3,927 $3,753 
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 or third-party agents. Certain sales commissions paid to employees prior to recognition of sales are recorded as contract assets. We expense sales commissions associated with obtaining a contract at the time of the sale or 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, 2020 contract assets recorded in our Consolidated Balance Sheets were not significant.
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 $416 and $313 on December 31, 2020 and December 31, 2019.