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Revenue
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]
NOTE P – REVENUE

We generate revenue primarily from the sale of single-use medical devices and present revenue net of sales taxes in our consolidated statements of operations. The following tables disaggregate our revenue from contracts with customers by business and geographic region (in millions):
Year Ended December 31,
202020192018
BusinessesU.S.OUSTotalU.S.OUSTotalU.S.OUSTotal
Endoscopy$1,000 $780 $1,780 $1,080 $814 $1,894 $980 $781 $1,762 
Urology and Pelvic Health918 368 1,286 1,005 408 1,413 864 381 1,245 
Cardiac Rhythm Management992 712 1,704 1,135 804 1,939 1,159 792 1,951 
Electrophysiology118 169 287 148 180 329 150 161 311 
Neuromodulation610 151 761 695 178 873 624 155 779 
Interventional Cardiology981 1,317 2,299 1,293 1,522 2,816 1,154 1,436 2,590 
Peripheral Interventions888 689 1,577 741 651 1,392 608 579 1,187 
Specialty Pharmaceuticals193 27 219 70 11 81 n/an/an/a
Net Sales$5,701 $4,212 $9,913 $6,167 $4,569 $10,735 $5,538 $4,286 $9,823 

Year Ended December 31,
Geographic Regions202020192018
U.S.$5,508 $6,097 $5,538 
EMEA (Europe, Middle East and Africa)2,097 2,264 2,176 
APAC (Asia-Pacific)1,781 1,898 1,727 
LACA (Latin America and Canada)307 395 383 
Medical Devices9,694 10,654 9,823 
U.S.193 70 n/a
International27 11 n/a
Specialty Pharmaceuticals219 81 n/a
Net Sales$9,913 $10,735 $9,823 
Emerging Markets(1)
$1,093 $1,252 $1,097 
(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.

Contract liabilities are classified within Other current liabilities and Other long-term liabilities in our accompanying consolidated balance sheets. Our deferred revenue balance was $395 million as of December 31, 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 $135 million in 2020 that was included in the above December 31, 2019 contract liability balance. 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.

We capitalize sales force commissions related to contracts with customers when the associated revenue is expected to be earned over a period that exceeds one year. Deferred commissions are primarily related to the sale of devices enabled with our LATITUDE™ Patient Management System. We have elected to expense commission costs when incurred for contracts with an expected duration of one year or less. Capitalized commission fees are amortized over the period the associated products or services are transferred. Similarly, we capitalize certain recoverable costs related to the delivery of the LATITUDE™ Remote Monitoring Service. These fulfillment costs are amortized over the average service period. Our total capitalized contract costs are immaterial to our consolidated financial statements.

We received FDA approval in mid-2020 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 2020, we recorded $179 million in revenue reserves primarily related to our conversion to a consignment commercial model for our LAAC franchise with the launch of our next-generation WATCHMAN FLX™ Device in the U.S. In connection with the conversion, we repurchased customer-owned inventory and will recognize revenue for consigned units as they are consumed by customers.

Refer to Note A – Significant Accounting Policies for additional information on our accounting policies relating to revenue recognition.