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Revenue
 9 Months Ended
Sep. 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 September 30,
20212020
BusinessesU.S.Int'lTotalU.S.Int'lTotal
Endoscopy$306 $227 $533 $270 $205 $475 
Urology and Pelvic Health275 109 384 251 99 350 
Cardiac Rhythm Management312 199 512 275 190 465 
Electrophysiology32 55 86 33 43 76 
Neuromodulation175 46 221 176 41 216 
Interventional Cardiology376 368 744 255 331 586 
Peripheral Interventions250 202 452 236 179 416 
Specialty Pharmaceuticals— — — 65 10 74 
Net Sales$1,726 $1,206 $2,932 $1,560 $1,098 $2,659 

On March 1, 2021, we completed the divestiture of the Specialty Pharmaceuticals business. Our consolidated net sales for the first nine months of 2021 include Specialty Pharmaceuticals up to the date of the closing of the transaction.
Nine Months Ended September 30,
20212020
BusinessesU.S.Int'lTotalU.S.Int'lTotal
Endoscopy$902 $681 $1,583 $715 $550 $1,265 
Urology and Pelvic Health817 325 1,142 650 260 910 
Cardiac Rhythm Management903 603 1,505 738 515 1,253 
Electrophysiology96 169 265 86 116 202 
Neuromodulation520 145 666 426 103 529 
Interventional Cardiology1,117 1,113 2,230 741 973 1,714 
Peripheral Interventions748 609 1,358 649 499 1,148 
Specialty Pharmaceuticals10 4 13 162 21 183 
Net Sales$5,112 $3,649 $8,761 $4,167 $3,037 $7,204 

Three Months Ended September 30,Nine Months Ended September 30,
Geographic Regions2021202020212020
U.S.$1,726 $1,496 $5,103 $4,005 
EMEA (Europe, Middle East and Africa)590 540 1,855 1,507 
APAC (Asia-Pacific)517 472 1,511 1,292 
LACA (Latin America and Canada)99 77 279 217 
Medical Devices2,932 2,584 8,748 7,021 
U.S.— 65 10 162 
International— 10 4 21 
Specialty Pharmaceuticals— 74 13 183 
Net Sales$2,932 $2,659 $8,761 $7,204 
Emerging Markets(1)
$354 $291 $1,030 $832 
(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 $455 million as of September 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 $39 million in the third quarter and $113 million in the first nine 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.