v3.25.4
Revenue Recognition
 12 Months Ended
Dec. 31, 2025
Revenue Recognition [Abstract]  
Revenue Recognition REVENUE RECOGNITION
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.
Products and services are primarily transferred to customers at a
point in time, with some transfers of services taking place over
time. In 2025 less than 10% of our sales were recognized as
services transferred over time. Refer to Note 1 for further
discussion on our revenue recognition policies.
Segment Net Sales
MedSurg and Neurotechnology:
2025
2024
2023
Instruments
$3,183
$2,834
$2,534
Endoscopy
3,807
3,389
3,068
Medical
4,204
3,852
3,459
Vascular
1,968
1,307
1,226
Neuro Cranial
2,485
2,136
1,876
$15,647
$13,518
$12,163
Orthopaedics:
Knees
$2,656
$2,447
$2,273
Hips
1,865
1,704
1,544
Trauma and Extremities
3,948
3,507
3,147
Spinal Implants
185
707
713
Other
815
712
658
$9,469
$9,077
$8,335
Total
$25,116
$22,595
$20,498
United States Net Sales
MedSurg and Neurotechnology:
2025
2024
2023
Instruments
$2,562
$2,267
$2,016
Endoscopy
3,133
2,792
2,513
Medical
3,510
3,191
2,785
Vascular
1,048
506
483
Neuro Cranial
2,052
1,761
1,531
$12,305
$10,517
$9,328
Orthopaedics:
Knees
$1,924
$1,788
$1,676
Hips
1,137
1,059
988
Trauma and Extremities
2,926
2,586
2,297
Spinal Implants
118
489
500
Other
596
504
468
$6,701
$6,426
$5,929
Total
$19,006
$16,943
$15,257
International Net Sales
MedSurg and Neurotechnology:
2025
2024
2023
Instruments
$621
$567
$518
Endoscopy
674
597
555
Medical
694
661
674
Vascular
920
801
743
Neuro Cranial
433
375
345
$3,342
$3,001
$2,835
Orthopaedics:
Knees
$732
$659
$597
Hips
728
645
556
Trauma and Extremities
1,022
921
850
Spinal Implants
67
218
213
Other
219
208
190
$2,768
$2,651
$2,406
Total
$6,110
$5,652
$5,241
MedSurg and Neurotechnology
MedSurg and Neurotechnology products include surgical
equipment, patient and caregiver safety technologies, and
navigation systems (Instruments), endoscopic and
communications systems (Endoscopy), patient handling,
emergency medical equipment, intensive care disposable
products, clinical communication and artificial intelligence-
assisted virtual care platform technology (Medical), minimally
invasive products for the treatment of acute ischemic and
hemorrhagic stroke and venous thromboembolism (Vascular) and
a comprehensive line of products for traditional brain and open
skull-based surgical procedures, orthobiologic and biosurgery
products, including synthetic bone grafts and vertebral
augmentation products (Neuro Cranial). Substantially all
MedSurg and Neurotechnology sales are recognized when a
purchase order has been received and control has transferred.
For certain Endoscopy, Instruments and Medical services, we
may recognize sales over time as we satisfy performance
obligations that may include an obligation to complete installation,
provide training and perform ongoing services, generally
performed within one year.
Orthopaedics
Orthopaedics products primarily include implants used in total
joint replacements, such as hip, knee and shoulder, ankle and
trauma and extremities surgeries. Substantially all Orthopaedics
sales are recognized when we have received a purchase order
and appropriate notification the product has been used or
implanted. For certain Orthopaedic products in the "other"
category, we recognize sales at a point in time, as well as over
time for performance obligations that may include an obligation to
complete installation and provide training and ongoing services.
Performance obligations are generally satisfied within one year.
Costs to Obtain or Fulfill a Contract
We typically do not incur costs to fulfill a contract before a
product or service is provided to a customer due to the nature of
our products and services. Our costs to obtain contracts are
typically in the form of sales commissions paid to employees or
third-party agents. Certain sales commissions paid to employees
prior to recognition of sales are recorded as deferred contract
costs. We expense sales commissions associated with obtaining
a contract at the time of the sale or as incurred as the
amortization period is generally less than one year. These costs
have been presented within selling, general and administrative
expenses. On December 31, 2025 and 2024 deferred contract
costs recorded in our Consolidated Balance Sheets were not
significant.
Contract Assets and Liabilities
Our contract assets primarily relate to conditional rights to
consideration for work completed but not billed at the reporting
date. On December 31, 2025 and 2024 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 warranty
service contracts. Our contract liabilities of $1,024 and $978 on
December 31, 2025 and 2024 are classified within accrued
expenses and other liabilities and other noncurrent liabilities in
our Consolidated Balance Sheets based on the timing of when
we expect to complete our performance obligations. Changes in
contract liabilities during the year were as follows:
2025
2024
Beginning contract liabilities
$978
$860
Revenue recognized from beginning of year contract
liabilities
(546)
(553)
Net advance consideration received during the period
592
671
Ending contract liabilities
$1,024
$978