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Revenue
 6 Months Ended
Jun. 30, 2021
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 in our accompanying unaudited consolidated statements of operations. The following tables disaggregate our revenue from contracts with customers by business and geographic region (in millions):
Three Months Ended June 30,
20212020
BusinessesU.S.Int'lTotalU.S.Int'lTotal
Endoscopy$316 $235 $551 $190 $158 $348 
Urology and Pelvic Health285 112 397 162 66 228 
Cardiac Rhythm Management314 210 524 208 143 351 
Electrophysiology34 62 95 22 30 51 
Neuromodulation194 53 247 100 23 122 
Interventional Cardiology398 392 790 189 306 495 
Peripheral Interventions260 213 473 189 151 340 
Specialty Pharmaceuticals— — — 60 8 68 
Net Sales$1,800 $1,277 $3,077 $1,118 $885 $2,003 

On March 1, 2021, we completed the divestiture of the Specialty Pharmaceuticals business. Our consolidated net sales for the first six months of 2021 include Specialty Pharmaceuticals up to the date of the closing of the transaction.

Six Months Ended June 30,
20212020
BusinessesU.S.Int'lTotalU.S.Int'lTotal
Endoscopy$596 $454 $1,050 $445 $345 $790 
Urology and Pelvic Health542 216 758 400 161 560 
Cardiac Rhythm Management590 403 993 463 325 788 
Electrophysiology64 115 179 53 72 126 
Neuromodulation345 99 444 250 63 313 
Interventional Cardiology741 745 1,486 486 642 1,128 
Peripheral Interventions498 407 906 413 319 732 
Specialty Pharmaceuticals10 4 13 97 12 109 
Net Sales$3,386 $2,443 $5,829 $2,607 $1,939 $4,546 

Three Months Ended June 30,Six Months Ended June 30,
Geographic Regions2021202020212020
U.S.$1,800 $1,058 $3,376 $2,510 
EMEA (Europe, Middle East and Africa)662 416 1,266 968 
APAC (Asia-Pacific)520 410 994 819 
LACA (Latin America and Canada)95 51 180 140 
Medical Devices3,077 1,935 5,816 4,437 
U.S.— 60 10 97 
International— 8 4 12 
Specialty Pharmaceuticals— 68 13 109 
Net Sales$3,077 $2,003 $5,829 $4,546 
Emerging Markets(1)
$359 $268 $676 $542 
(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, and effective January 1, 2021, modified our list to include 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. We have revised prior period amounts to conform to the current year's presentation which had an immaterial impact on previously reported Emerging Markets net sales.

Deferred Revenue

Contract liabilities are classified within Other current liabilities and Other long-term liabilities in our accompanying unaudited consolidated balance sheets. Our deferred revenue balance was $424 million as of June 30, 2021 and $395 million as of December 31, 2020. Our contractual liabilities are primarily composed of deferred revenue related to the LATITUDE™ Patient Management System within our Cardiac Rhythm Management (CRM) 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 CRM business, for which revenue is recognized over the average service period based on device longevity and usage. We recognized revenue of $38 million in the second quarter and $74 million in the first six months of 2021 that was included in the above contract liability balance as of December 31, 2020. 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

We generally allow our customers to return defective, damaged and, in certain cases, expired products for credit. We base our estimate for sales returns upon historical trends and record the amount as a reduction to revenue when we sell the initial product. In addition, we may allow customers to return previously purchased products for next-generation product offerings. For these transactions, we defer recognition of revenue on the sale of the earlier generation product based upon an estimate of the amount of product to be returned when the next-generation products are shipped to the customer. Uncertain timing of next-generation product approvals, variability in product launch strategies, product recalls and variation in product utilization all affect our estimates related to sales returns and could cause actual returns to differ from these estimates.

We also offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to reasonably estimate the expected rebates, we record a liability for the maximum rebate percentage offered. We have entered certain agreements with group purchasing organizations to sell our products to participating hospitals at negotiated prices. We recognize revenue from these agreements following the same revenue recognition criteria discussed above.