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Revenue Recognition
 6 Months Ended
Jun. 30, 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 MonthsSix Months
2024202320242023
MedSurg and Neurotechnology:
Instruments$698 $622 $1,365 $1,188 
Endoscopy768 713 1,546 1,420 
Medical908 841 1,772 1,619 
Neurovascular327 311 637 595 
Neuro Cranial416 373 796 728 
$3,117 $2,860 $6,116 $5,550 
Orthopaedics and Spine:
Knees$602 $562 $1,190 $1,128 
Hips428 393 821 768 
Trauma and Extremities832 766 1,662 1,535 
Spine307 296 607 580 
Other136 119 269 213 
$2,305 $2,136 $4,549 $4,224 
Total$5,422 $4,996 $10,665 $9,774 
Net Sales by Geography
Three Months 2024Three Months 2023
United StatesInternationalUnited StatesInternational
MedSurg and Neurotechnology:
Instruments$564 $134 $504 $118 
Endoscopy623 145 576 137 
Medical763 145 682 159 
Neurovascular127 200 123 188 
Neuro Cranial339 77 306 67 
$2,416 $701 $2,191 $669 
Orthopaedics and Spine:
Knees$433 $169 $406 $156 
Hips261 167 249 144 
Trauma and Extremities610 222 559 207 
Spine229 78 221 75 
Other98 38 85 34 
$1,631 $674 $1,520 $616 
Total$4,047 $1,375 $3,711 $1,285 
Net Sales by Geography
Six Months 2024Six Months 2023
United StatesInternationalUnited StatesInternational
MedSurg and Neurotechnology:
Instruments$1,096 $269 $945 $243 
Endoscopy1,259 287 1,149 271 
Medical1,478 294 1,294 325 
Neurovascular248 389 241 354 
Neuro Cranial648 148 595 133 
$4,729 $1,387 $4,224 $1,326 
Orthopaedics and Spine:
Knees$862 $328 $822 $306 
Hips512 309 485 283 
Trauma and Extremities1,221 441 1,113 422 
Spine450 157 433 147 
Other187 82 146 67 
$3,232 $1,317 $2,999 $1,225 
Total$7,961 $2,704 $7,223 $2,551 
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 and six months 2024 and 2023.    
Contract Assets and Liabilities
On June 30, 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 $921 and $860 on June 30, 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.
Changes in contract liabilities during the six months 2024 were as follows:
June 30
2024
Beginning contract liabilities$860 
Revenue recognized from beginning of year contract liabilities(268)
Net advance consideration received during the period329 
Ending contract liabilities$921