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Revenue | 9 Months Ended
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Sep. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer [Text Block] | NOTE L – REVENUE We generate revenue primarily from the sale of single-use medical devices and present revenue net of sales taxes in our unaudited condensed consolidated statements of operations. The following tables disaggregate our revenue from contracts with customers by business and geographic region (in millions):
| Three Months Ended September 30, |  |
| 2020 |  | 2019 |  |  |  |
Businesses | U.S. |  | OUS |  | Total |  | U.S. |  | OUS |  | Total |  |  |  |  |  |  |  |
Endoscopy | $ | 270 |  |  | $ | 205 |  |  | $ | 475 |  |  | $ | 277 |  |  | $ | 209 |  |  | $ | 486 |  |  |  |  |  |  |  |  |
Urology and Pelvic Health | 251 |  |  | 99 |  |  | 350 |  |  | 257 |  |  | 102 |  |  | 359 |  |  |  |  |  |  |  |  |
Cardiac Rhythm Management | 275 |  |  | 190 |  |  | 465 |  |  | 284 |  |  | 194 |  |  | 478 |  |  |  |  |  |  |  |  |
Electrophysiology | 33 |  |  | 43 |  |  | 76 |  |  | 38 |  |  | 43 |  |  | 81 |  |  |  |  |  |  |  |  |
Neuromodulation | 176 |  |  | 41 |  |  | 216 |  |  | 183 |  |  | 39 |  |  | 222 |  |  |  |  |  |  |  |  |
Interventional Cardiology | 255 |  |  | 331 |  |  | 586 |  |  | 327 |  |  | 373 |  |  | 700 |  |  |  |  |  |  |  |  |
Peripheral Interventions | 236 |  |  | 179 |  |  | 416 |  |  | 195 |  |  | 163 |  |  | 358 |  |  |  |  |  |  |  |  |
Specialty Pharmaceuticals | 65 |  |  | 10 |  |  | 74 |  |  | 19 |  |  | 4 |  |  | 23 |  |  |  |  |  |  |  |  |
Net Sales | $ | 1,560 |  |  | $ | 1,098 |  |  | $ | 2,659 |  |  | $ | 1,580 |  |  | $ | 1,126 |  |  | $ | 2,707 |  |  |  |  |  |  |  |  |
| Nine Months Ended September 30,
| 2020 |  | 2019
Businesses | U.S. |  | OUS |  | Total |  | U.S. |  | OUS |  | Total
Endoscopy | $ | 715 |  |  | $ | 550 |  |  | $ | 1,265 |  |  | $ | 800 |  |  | $ | 596 |  |  | $ | 1,396 |
Urology and Pelvic Health | 650 |  |  | 260 |  |  | 910 |  |  | 737 |  |  | 297 |  |  | 1,033 |
Cardiac Rhythm Management | 738 |  |  | 515 |  |  | 1,253 |  |  | 860 |  |  | 607 |  |  | 1,467 |
Electrophysiology | 86 |  |  | 116 |  |  | 202 |  |  | 113 |  |  | 132 |  |  | 245 |
Neuromodulation | 426 |  |  | 103 |  |  | 529 |  |  | 487 |  |  | 125 |  |  | 612 |
Interventional Cardiology | 741 |  |  | 973 |  |  | 1,714 |  |  | 942 |  |  | 1,126 |  |  | 2,067 |
Peripheral Interventions | 649 |  |  | 499 |  |  | 1,148 |  |  | 507 |  |  | 482 |  |  | 989 |
Specialty Pharmaceuticals | 162 |  |  | 21 |  |  | 183 |  |  | 19 |  |  | 4 |  |  | 23 |
Net Sales | $ | 4,167 |  |  | $ | 3,037 |  |  | $ | 7,204 |  |  | $ | 4,462 |  |  | $ | 3,369 |  |  | $ | 7,831 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
Geographic Regions | 2020 |  | 2019 |  | 2020 |  | 2019
U.S. | $ | 1,496 |  |  | $ | 1,561 |  |  | $ | 4,005 |  |  | $ | 4,443 |
EMEA (Europe, Middle East and Africa) | 540 |  |  | 535 |  |  | 1,507 |  |  | 1,667 |
APAC (Asia-Pacific) | 472 |  |  | 485 |  |  | 1,292 |  |  | 1,403 |
LACA (Latin America and Canada) | 77 |  |  | 102 |  |  | 217 |  |  | 294 |
Medical Devices | 2,584 |  |  | 2,684 |  |  | 7,021 |  |  | 7,807 |
U.S. | 65 |  |  | 19 |  |  | 162 |  |  | 19 |
OUS | 10 |  |  | 4 |  |  | 21 |  |  | 4 |
Specialty Pharmaceuticals | 74 |  |  | 23 |  |  | 183 |  |  | 23 |
Net Sales | $ | 2,659 |  |  | $ | 2,707 |  |  | $ | 7,204 |  |  | $ | 7,831 |
Emerging Markets (1) | $ | 278 |  |  | $ | 310 |  |  | $ | 800 |  |  | $ | 925 |
(1) We define Emerging Markets as the 20 countries that we believe have strong growth potential based on their economic conditions, healthcare sectors and our global capabilities. Periodically, we assess our list of Emerging Markets, which is currently comprised of the following countries: Argentina, Brazil, Chile, China, Colombia, Czech Republic, India, Indonesia, Malaysia, Mexico, Philippines, Poland, Russia, Saudi Arabia, Slovakia, South Africa, South Korea, Thailand, Turkey and Vietnam. Deferred Revenue Contract liabilities are classified within Other current liabilities and Other long-term liabilities in our accompanying unaudited condensed consolidated balance sheets. Our deferred revenue balance was $405 million as of September 30, 2020 and $400 million as of December 31, 2019. Our contractual liabilities are primarily composed of deferred revenue related to the LATITUDE™ Patient Management System. Revenue is recognized over the average service period which is based on device and patient longevity. We recognized revenue of $28 million in the third quarter and $84 million in the first nine months of 2020 that was included in the above contract liability balance as of December 31, 2019. We have elected not to disclose the transaction price allocated to unsatisfied performance obligations when the original expected contract duration is one year or less. In addition, we have not identified material unfulfilled performance obligations for which revenue is not currently deferred. Variable Consideration We generally allow our customers to return defective, damaged and, in certain cases, expired products for credit and record the amount for estimated sales returns as a reduction to revenue when we sell the initial product. In addition, we may allow customers to return previously purchased products for next-generation product offerings. For these transactions, we defer recognition of revenue on the sale of the earlier generation product based upon an estimate of the amount of product to be returned when the next-generation products are shipped to the customer. We recently received FDA approval and began the U.S. launch of our next generation WATCHMAN FLX™ Left Atrial Appendage Closure (LAAC) Device within our Interventional Cardiology business. The next generation WATCHMAN FLX™ Device is indicated to reduce the risk of stroke in patients with non-valvular atrial fibrillation (NVAF) who need an alternative to oral anticoagulation therapy by permanently closing off the left atrial appendage. In the third quarter of 2020, we incurred $63 million in revenue charges primarily related to our conversion to a consignment inventory model for our LAAC franchise with the launch of our next-generation WATCHMAN FLX™ Device in the U.S. We also offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. If we are unable to reasonably estimate the expected rebates, we record a liability for the maximum rebate percentage offered. We have entered certain agreements with group purchasing organizations to sell our products to participating hospitals at negotiated prices. We recognize revenue from these agreements following the same revenue recognition criteria discussed above.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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