Revenue Recognition

3 Months Ended

Mar. 31, 2023

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 2022.

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 of 2023, we consolidated Other MedSurg and Neurotechnology into Endoscopy as Other MedSurg and Neurotechnology (primarily Sustainability Solutions) has been fully integrated into our Endoscopy business. Endoscopy includes sales related to Other of $81 and $69 for the three months 2023 and 2022. We have reflected these changes in all historical periods presented.

Net Sales by Business
	Three Months
	2023		2022
MedSurg and Neurotechnology:
Instruments	$	575	$	528
Endoscopy	698		607
Medical	778		664
Neurovascular	284		301
Neuro Cranial	355		323
	$	2,690	$	2,423
Orthopaedics and Spine:
Knees	$	566	$	464
Hips	375		327
Trauma and Extremities	769		685
Spine	284		279
Other	94		97
	$	2,088	$	1,852
Total	$	4,778	$	4,275

Net Sales by Geography
	Three Months 2023				Three Months 2022
	United States		International		United States		International
MedSurg and Neurotechnology:
Instruments	$	450	$	125	$	414	$	114
Endoscopy	564		134		486		121
Medical	612		166		525		139
Neurovascular	118		166		110		191
Neuro Cranial	289		66		264		59
	$	2,033	$	657	$	1,799	$	624
Orthopaedics and Spine:
Knees	$	416	$	150	$	345	$	119
Hips	236		139		202		125
Trauma and Extremities	554		215		487		198
Spine	212		72		200		79
Other	61		33		72		25
	$	1,479	$	609	$	1,306	$	546
Total	$	3,512	$	1,266	$	3,105	$	1,170

Contract Assets and Liabilities

On March 31, 2023 and December 31, 2022 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 $757 and $741 on March 31, 2023 and December 31, 2022 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.