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Revenue Recognition
 3 Months Ended
Mar. 31, 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 Months
20242023
MedSurg and Neurotechnology:
Instruments$667 $566 
Endoscopy778 707 
Medical864 778 
Neurovascular310 284 
Neuro Cranial380 355 
$2,999 $2,690 
Orthopaedics and Spine:
Knees$588 $566 
Hips393 375 
Trauma and Extremities830 769 
Spine300 284 
Other133 94 
$2,244 $2,088 
Total$5,243 $4,778 
Net Sales by Geography
Three Months 2024Three Months 2023
United StatesInternationalUnited StatesInternational
MedSurg and Neurotechnology:
Instruments$532 $135 $441 $125 
Endoscopy636 142 573 134 
Medical715 149 612 166 
Neurovascular121 189 118 166 
Neuro Cranial309 71 289 66 
$2,313 $686 $2,033 $657 
Orthopaedics and Spine:
Knees$429 $159 $416 $150 
Hips251 142 236 139 
Trauma and Extremities611 219 554 215 
Spine221 79 212 72 
Other89 44 61 33 
$1,601 $643 $1,479 $609 
Total$3,914 $1,329 $3,512 $1,266 
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 approximately 3% of our total revenue for the three months 2024 and 2023.    
Contract Assets and Liabilities
On March 31, 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 $866 and $860 on March 31, 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.