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Revenue Recognition | 9 Months Ended
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Sep. 30, 2024
Revenue Recognition [Abstract] |
Revenue Recognition | REVENUE RECOGNITION Our policies for recognizing sales have not changed from those described in our Annual Report on Form 10-K for 2023. We disaggregate our net sales by business 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. Beginning in the first quarter 2024, a product line previously included in Instruments has been reclassified to Endoscopy to align with a change in our internal reporting structure. We have reflected this change in all historical periods presented.
Net Sales by Business |  |  |  |  |  |  |
| Three Months |  | Nine Months
| 2024 |  | 2023 |  | 2024 |  | 2023
MedSurg and Neurotechnology: |  |  |  |  |  |  |
Instruments | $ | 679 |  |  | $ | 620 |  |  | $ | 2,044 |  |  | $ | 1,808 |
Endoscopy | 837 |  |  | 746 |  |  | 2,383 |  |  | 2,166 |
Medical | 938 |  |  | 798 |  |  | 2,710 |  |  | 2,417 |
Neurovascular | 329 |  |  | 311 |  |  | 966 |  |  | 906 |
Neuro Cranial | 441 |  |  | 384 |  |  | 1,237 |  |  | 1,112 |
| $ | 3,224 |  |  | $ | 2,859 |  |  | $ | 9,340 |  |  | $ | 8,409 |
Orthopaedics and Spine: |  |  |  |  |  |  |
Knees | $ | 570 |  |  | $ | 515 |  |  | $ | 1,760 |  |  | $ | 1,643 |
Hips | 420 |  |  | 362 |  |  | 1,241 |  |  | 1,130 |
Trauma and Extremities | 849 |  |  | 752 |  |  | 2,511 |  |  | 2,287 |
Spine | 304 |  |  | 291 |  |  | 911 |  |  | 871 |
Other | 127 |  |  | 130 |  |  | 396 |  |  | 343 |
| $ | 2,270 |  |  | $ | 2,050 |  |  | $ | 6,819 |  |  | $ | 6,274 |
Total | $ | 5,494 |  |  | $ | 4,909 |  |  | $ | 16,159 |  |  | $ | 14,683 |
Net Sales by Geography |  |  |  |  |
| Three Months 2024 |  | Three Months 2023
| United States | International |  | United States | International
MedSurg and Neurotechnology: |  |  |  |  |
Instruments | $ | 544 |  | $ | 135 |  |  | $ | 495 |  | $ | 125 |
Endoscopy | 689 |  | 148 |  |  | 618 |  | 128 |
Medical | 783 |  | 155 |  |  | 660 |  | 138 |
Neurovascular | 121 |  | 208 |  |  | 120 |  | 191 |
Neuro Cranial | 366 |  | 75 |  |  | 315 |  | 69 |
| $ | 2,503 |  | $ | 721 |  |  | $ | 2,208 |  | $ | 651 |
Orthopaedics and Spine: |  |  |  |  |
Knees | $ | 417 |  | $ | 153 |  |  | $ | 385 |  | $ | 130 |
Hips | 256 |  | 164 |  |  | 231 |  | 131 |
Trauma and Extremities | 621 |  | 228 |  |  | 550 |  | 202 |
Spine | 225 |  | 79 |  |  | 217 |  | 74 |
Other | 87 |  | 40 |  |  | 87 |  | 43 |
| $ | 1,606 |  | $ | 664 |  |  | $ | 1,470 |  | $ | 580 |
Total | $ | 4,109 |  | $ | 1,385 |  |  | $ | 3,678 |  | $ | 1,231 |
Net Sales by Geography |  |  |  |  |
| Nine Months 2024 |  | Nine Months 2023
| United States | International |  | United States | International
MedSurg and Neurotechnology: |  |  |  |  |
Instruments | $ | 1,640 |  | $ | 404 |  |  | $ | 1,440 |  | $ | 368 |
Endoscopy | 1,948 |  | 435 |  |  | 1,767 |  | 399 |
Medical | 2,261 |  | 449 |  |  | 1,954 |  | 463 |
Neurovascular | 369 |  | 597 |  |  | 361 |  | 545 |
Neuro Cranial | 1,014 |  | 223 |  |  | 910 |  | 202 |
| $ | 7,232 |  | $ | 2,108 |  |  | $ | 6,432 |  | $ | 1,977 |
Orthopaedics and Spine: |  |  |  |  |
Knees | $ | 1,279 |  | $ | 481 |  |  | $ | 1,207 |  | $ | 436 |
Hips | 768 |  | 473 |  |  | 716 |  | 414 |
Trauma and Extremities | 1,842 |  | 669 |  |  | 1,663 |  | 624 |
Spine | 675 |  | 236 |  |  | 650 |  | 221 |
Other | 274 |  | 122 |  |  | 233 |  | 110 |
| $ | 4,838 |  | $ | 1,981 |  |  | $ | 4,469 |  | $ | 1,805 |
Total | $ | 12,070 |  | $ | 4,089 |  |  | $ | 10,901 |  | $ | 3,782 |
We sell certain customer lease agreements and the related leased assets to third-party financial institutions to accelerate our cash collection cycle. The lease receivables are sold without recourse and are derecognized from our Consolidated Balance Sheets at the time of sale. Under the terms of our arrangements, we collect lease payments on behalf of the financial institutions but maintain no other form of continuing involvement. Sales of these lease agreements are classified as operating activities in our Consolidated Statements of Cash Flows. Fees earned for our servicing activities are immaterial. Revenue related to customer lease agreements sold under these arrangements represented less than 3% of our total revenue for the three and nine months 2024 and 2023. Contract Assets and Liabilities On September 30, 2024 and December 31, 2023 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. This occurs primarily when payment is received upfront for certain multi-period extended service contracts. Our contract liabilities of $1,008 and $860 on September 30, 2024 and December 31, 2023 are classified within accrued expenses and other liabilities and other noncurrent liabilities within our Consolidated Balance Sheets based on the timing of when we expect to complete our performance obligations. Changes in contract liabilities during the nine months 2024 were as follows:
| September 30
| 2024
Beginning contract liabilities | $ | 860 |
Revenue recognized from beginning of year contract liabilities | (382) |
Net advance consideration received during the period | 530 |
Ending contract liabilities | $ | 1,008 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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