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Revenue Recognition | 6 Months Ended
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Jun. 30, 2025
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 2024. 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. In the first quarter 2025 we changed the name of our Neurovascular business to Vascular due the acquisition of Inari Medical, Inc. (Inari). In the fourth quarter 2024 we reorganized our Spine business to align with certain updates to our internal reporting structure. The spine enabling technologies portfolio (Enabling Technologies) was reclassified to Other Orthopaedics and Spine, the interventional spine (IVS) portfolio was reclassified to Neuro Cranial and the remaining Spine business was renamed to Spinal Implants. In addition we changed the name of our “Orthopaedics and Spine” operating segment to “Orthopaedics.” Neuro Cranial includes sales related to IVS of $129 and $98 for the three months 2025 and 2024 and $247 and $196 for the six months 2025 and 2024. Other Orthopaedics includes sales related to Enabling Technologie s of $34 and $31 for the three months 2025 and 2024 and $63 and $62 f or th e six months 2025 and 2024. We have reflected these changes in all historical periods presented.
Net Sales by Business |  |  |  |  |  |  |
| Three Months |  | Six Months
| 2025 |  | 2024 |  | 2025 |  | 2024
MedSurg and Neurotechnology: |  |  |  |  |  |  |
Instruments | $768 |  | $698 |  | $1,498 |  | $1,365
Endoscopy | 899 |  | 768 |  | 1,766 |  | 1,546
Medical | 990 |  | 908 |  | 1,935 |  | 1,772
Vascular | 498 |  | 327 |  | 904 |  | 637
Neuro Cranial | 616 |  | 514 |  | 1,179 |  | 992
| $3,771 |  | $3,215 |  | $7,282 |  | $6,312
Orthopaedics: |  |  |  |  |  |  |
Knees | $640 |  | $602 |  | $1,279 |  | $1,190
Hips | 466 |  | 428 |  | 909 |  | 821
Trauma and Extremities | 957 |  | 832 |  | 1,902 |  | 1,662
Spinal Implants | 5 |  | 178 |  | 171 |  | 349
Other | 183 |  | 167 |  | 345 |  | 331
| $2,251 |  | $2,207 |  | $4,606 |  | $4,353
Total | $6,022 |  | $5,422 |  | $11,888 |  | $10,665
Net Sales by Geography |  |  |  |  |
| Three Months 2025 |  | Three Months 2024
| United States | International |  | United States | International
MedSurg and Neurotechnology: |  |  |  |  |
Instruments | $621 | $147 |  | $564 | $134
Endoscopy | 742 | 157 |  | 623 | 145
Medical | 840 | 150 |  | 763 | 145
Vascular | 268 | 230 |  | 127 | 200
Neuro Cranial | 507 | 109 |  | 418 | 96
| $2,978 | $793 |  | $2,495 | $720
Orthopaedics: |  |  |  |  |
Knees | $460 | $180 |  | $433 | $169
Hips | 283 | 183 |  | 261 | 167
Trauma and Extremities | 702 | 255 |  | 610 | 222
Spinal Implants | — | 5 |  | 124 | 54
Other | 131 | 52 |  | 124 | 43
| $1,576 | $675 |  | $1,552 | $655
Total | $4,554 | $1,468 |  | $4,047 | $1,375
Net Sales by Geography |  |  |  |  |
| Six Months 2025 |  | Six Months 2024
| United States | International |  | United States | International
MedSurg and Neurotechnology: |  |  |  |  |
Instruments | $1,208 | $290 |  | $1,096 | $269
Endoscopy | 1,452 | 314 |  | 1,259 | 287
Medical | 1,642 | 293 |  | 1,478 | 294
Vascular | 471 | 433 |  | 248 | 389
Neuro Cranial | 972 | 207 |  | 808 | 184
| $5,745 | $1,537 |  | $4,889 | $1,423
Orthopaedics: |  |  |  |  |
Knees | $924 | $355 |  | $862 | $328
Hips | 552 | 357 |  | 512 | 309
Trauma and Extremities | 1,415 | 487 |  | 1,221 | 441
Spinal Implants | 118 | 53 |  | 241 | 108
Other | 240 | 105 |  | 236 | 95
| $3,249 | $1,357 |  | $3,072 | $1,281
Total | $8,994 | $2,894 |  | $7,961 | $2,704
Costs to Obtain or Fulfill a Contract We typically do not incur costs to fulfill a contract before a product or service is provided to a customer due to the nature of our products and services. 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 deferred contract costs. 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 June 30, 2025 and December 31, 2024 deferred contracts costs recorded in our Consolidated Balance Sheets were not significant. Contract Assets and Liabilities Our contract assets primarily relate to conditional rights to consideration for work completed but not billed at the reporting date. On June 30, 2025 and December 31, 2024 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 $1,061 and $978 on June 30, 2025 and December 31, 2024 are classified within accrued expenses and other liabilities and other noncurrent liabilities in our Consolidated Balance Sheets based on the timing of when we expect to complete our performance obligations. Changes in contract liabilities during the six months 2025 were as follows:
| June 30
| 2025
Beginning contract liabilities | $978
Revenue recognized from beginning of year contract liabilities | (348)
Net advance consideration received during the period | 431
Ending contract liabilities | $1,061
Transfers and Servicing of Financial Assets 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 4% of our total revenue for the three and six months 2025 and 2024.

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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 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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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