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Revenue Recognition | 9 Months Ended
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Sep. 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 $100 and $296 for the three and nine months 2024. Other Orthopaedics includes sales related to Enabling Technologies of $32 and $94 for the three and nine months 2024. We have reflected these changes in all historical periods presented.
Net Sales by Business |  |  |  |  |  |  |
| Three Months |  | Nine Months
| 2025 |  | 2024 |  | 2025 |  | 2024
MedSurg and Neurotechnology: |  |  |  |  |  |  |
Instruments | $760 |  | $679 |  | $2,258 |  | $2,044
Endoscopy | 896 |  | 837 |  | 2,662 |  | 2,383
Medical | 985 |  | 938 |  | 2,920 |  | 2,710
Vascular | 525 |  | 329 |  | 1,429 |  | 966
Neuro Cranial | 637 |  | 541 |  | 1,816 |  | 1,533
| $3,803 |  | $3,324 |  | $11,085 |  | $9,636
Orthopaedics: |  |  |  |  |  |  |
Knees | $628 |  | $570 |  | $1,907 |  | $1,760
Hips | 457 |  | 420 |  | 1,366 |  | 1,241
Trauma and Extremities | 960 |  | 849 |  | 2,862 |  | 2,511
Spinal Implants | 6 |  | 172 |  | 177 |  | 521
Other | 203 |  | 159 |  | 548 |  | 490
| $2,254 |  | $2,170 |  | $6,860 |  | $6,523
Total | $6,057 |  | $5,494 |  | $17,945 |  | $16,159
Net Sales by Geography |  |  |  |  |
| Three Months 2025 |  | Three Months 2024
| United States | International |  | United States | International
MedSurg and Neurotechnology: |  |  |  |  |
Instruments | $606 | $154 |  | $544 | $135
Endoscopy | 743 | 153 |  | 689 | 148
Medical | 827 | 158 |  | 783 | 155
Vascular | 283 | 242 |  | 121 | 208
Neuro Cranial | 524 | 113 |  | 448 | 93
| $2,983 | $820 |  | $2,585 | $739
Orthopaedics: |  |  |  |  |
Knees | $452 | $176 |  | $417 | $153
Hips | 279 | 178 |  | 256 | 164
Trauma and Extremities | 703 | 257 |  | 621 | 228
Spinal Implants | — | 6 |  | 119 | 53
Other | 154 | 49 |  | 111 | 48
| $1,588 | $666 |  | $1,524 | $646
Total | $4,571 | $1,486 |  | $4,109 | $1,385
Net Sales by Geography |  |  |  |  |
| Nine Months 2025 |  | Nine Months 2024
| United States | International |  | United States | International
MedSurg and Neurotechnology: |  |  |  |  |
Instruments | $1,814 | $444 |  | $1,640 | $404
Endoscopy | 2,195 | 467 |  | 1,948 | 435
Medical | 2,469 | 451 |  | 2,261 | 449
Vascular | 754 | 675 |  | 369 | 597
Neuro Cranial | 1,496 | 320 |  | 1,255 | 278
| $8,728 | $2,357 |  | $7,473 | $2,163
Orthopaedics: |  |  |  |  |
Knees | $1,376 | $531 |  | $1,279 | $481
Hips | 831 | 535 |  | 768 | 473
Trauma and Extremities | 2,118 | 744 |  | 1,842 | 669
Spinal Implants | 118 | 59 |  | 361 | 160
Other | 394 | 154 |  | 347 | 143
| $4,837 | $2,023 |  | $4,597 | $1,926
Total | $13,565 | $4,380 |  | $12,070 | $4,089
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 September 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 September 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 $939 and $978 on September 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 nine months 2025 were as follows:
| September 30
| 2025
Beginning contract liabilities | $978
Revenue recognized from beginning of year contract liabilities | (492)
Net advance consideration received during the period | 453
Ending contract liabilities | $939
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 nine 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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