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Revenue Recognition
 9 Months Ended
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 MonthsNine Months
2024202320242023
MedSurg and Neurotechnology:
Instruments$679 $620 $2,044 $1,808 
Endoscopy837 746 2,383 2,166 
Medical938 798 2,710 2,417 
Neurovascular329 311 966 906 
Neuro Cranial441 384 1,237 1,112 
$3,224 $2,859 $9,340 $8,409 
Orthopaedics and Spine:
Knees$570 $515 $1,760 $1,643 
Hips420 362 1,241 1,130 
Trauma and Extremities849 752 2,511 2,287 
Spine304 291 911 871 
Other127 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 2024Three Months 2023
United StatesInternationalUnited StatesInternational
MedSurg and Neurotechnology:
Instruments$544 $135 $495 $125 
Endoscopy689 148 618 128 
Medical783 155 660 138 
Neurovascular121 208 120 191 
Neuro Cranial366 75 315 69 
$2,503 $721 $2,208 $651 
Orthopaedics and Spine:
Knees$417 $153 $385 $130 
Hips256 164 231 131 
Trauma and Extremities621 228 550 202 
Spine225 79 217 74 
Other87 40 87 43 
$1,606 $664 $1,470 $580 
Total$4,109 $1,385 $3,678 $1,231 
Net Sales by Geography
Nine Months 2024Nine Months 2023
United StatesInternationalUnited StatesInternational
MedSurg and Neurotechnology:
Instruments$1,640 $404 $1,440 $368 
Endoscopy1,948 435 1,767 399 
Medical2,261 449 1,954 463 
Neurovascular369 597 361 545 
Neuro Cranial1,014 223 910 202 
$7,232 $2,108 $6,432 $1,977 
Orthopaedics and Spine:
Knees$1,279 $481 $1,207 $436 
Hips768 473 716 414 
Trauma and Extremities1,842 669 1,663 624 
Spine675 236 650 221 
Other274 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 period530 
Ending contract liabilities$1,008