XML 31 R20.htm IDEA: XBRL DOCUMENT v3.22.1
Revenue
 3 Months Ended
Mar. 31, 2022
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 within our accompanying unaudited consolidated statements of operations. In the first quarter of 2022, we reorganized our business structure into five operating segments and on March 1, 2021, we completed the divestiture of the Specialty Pharmaceuticals business. Our consolidated net sales for the first quarter of 2021 include Specialty Pharmaceuticals up to the date of the closing of the transaction. The following tables disaggregate our revenue from contracts with customers by component and geographic region (in millions). We have revised prior periods to conform to current year presentation:

Three Months Ended March 31,
20222021
BusinessesU.S.Int'lTotalU.S.Int'lTotal
Endoscopy$312 $220 $531 $280 $219 $499 
Urology and Pelvic Health286 127 413 257 104 361 
Neuromodulation161 49 209 151 46 198 
MedSurg758 395 1,153 689 369 1,058 
   Interventional Cardiology Therapies186 358 544 195 331 526 
   Watchman203 23 226 149 22 170 
   Cardiac Rhythm Management325 195 519 276 193 469 
    Electrophysiology50 68 118 30 53 83 
Cardiology764 644 1,407 650 599 1,248 
Peripheral Interventions256 210 465 238 195 433 
Cardiovascular1,019 853 1,873 888 793 1,681 
Specialty Pharmaceuticals— — — 10 4 13 
Total Net Sales$1,778 $1,248 $3,026 $1,586 $1,166 $2,752 

Refer to Note K- Segment Reporting for information on our reportable segments.

Three Months Ended March 31,
Regions20222021
U.S.$1,778 $1,577 
Europe, Middle East and Africa624 604 
Asia-Pacific517 473 
Latin America and Canada107 85 
Medical Devices3,026 2,739 
U.S.— 10 
International— 4 
Specialty Pharmaceuticals— 13 
Total Net Sales$3,026 $2,752 
Emerging Markets(1)
$390 $317 
(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 countries, which currently
includes the following countries: Brazil, Chile, China, Colombia, Czech Republic, India, Indonesia, Malaysia, Mexico, Philippines, Poland, Russia, Saudi Arabia, Slovakia, South Africa, South Korea, Taiwan, Thailand, Turkey and Vietnam.

Deferred Revenue

Contract liabilities are classified within Other current liabilities and Other long-term liabilities within our accompanying unaudited consolidated balance sheets. Our deferred revenue balance was $491 million as of March 31, 2022 and $484 million as of December 31, 2021. Our contractual liabilities are primarily composed of deferred revenue related to the LATITUDE™ Patient Management System within our Cardiology business, for which revenue is recognized over the average service period based on device and patient longevity. Our contractual liabilities also include deferred revenue related to the LUX-Dx™ Insertable Cardiac Monitor (ICM) system, also within our Cardiology business, for which revenue is recognized over the average service period based on device longevity and usage. We recognized revenue of $42 million in the first quarter of 2022 and $36 million in the first quarter of 2021 that was included in the above contract liability balance as of December 31, 2021. 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
For additional information on variable consideration, refer to Note A – Significant Accounting Policies to our audited financial statements contained in Item 8 of our most recent Annual Report on Form 10-K.