Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 26, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-30713 | ||
Entity Registrant Name | Intuitive Surgical, Inc. | ||
State or Other Jurisdiction of Incorporation or Organization | DE | ||
I.R.S. Employer Identification No. | 77-0416458 | ||
Entity Address, Address Line One | 1020 Kifer Road | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94086 | ||
City Area Code | (408) | ||
Local Phone Number | 523-2100 | ||
Title of Each Class | Common Stock, par value $0.001 per share | ||
Trading Symbol | ISRG | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 108.7 | ||
Entity Common Stock, Shares Outstanding | 357,744,031 | ||
Documents Incorporated by Reference | Part III incorporates information by reference to the definitive proxy statement for the Company’s Annual Meeting of Stockholders to be held on or about April 28, 2022, to be filed within 120 days of the registrant’s fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001035267 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | San Jose, California |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Intuitive Surgical, Inc. (“Intuitive” or the “Company”) develops, manufactures, and markets the da Vinci ® Surgical System and the Ion ® endoluminal system. The Company’s products and related services enable physicians and healthcare providers to improve the quality of and access to minimally invasive care. The systems consist of a surgeon console or consoles, a patient-side cart, a high-performance vision system, and proprietary instruments and accessories. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,290.9 | $ 1,622.6 |
Short-term investments | 2,913.1 | 3,488.8 |
Accounts receivable, net of allowances of $20.2 and $17.7 as of December 31, 2021, and 2020, respectively | 782.7 | 645.5 |
Inventory | 587.1 | 601.5 |
Prepaids and other current assets | 271.1 | 267.5 |
Total current assets | 5,844.9 | 6,625.9 |
Property, plant, and equipment, net | 1,876.4 | 1,577.3 |
Long-term investments | 4,415.5 | 1,757.7 |
Deferred tax assets | 441.4 | 367.7 |
Intangible and other assets, net | 633.2 | 503.6 |
Goodwill | 343.6 | 336.7 |
Total assets | 13,555 | 11,168.9 |
Current liabilities: | ||
Accounts payable | 121.2 | 81.6 |
Accrued compensation and employee benefits | 350.1 | 235 |
Deferred revenue | 377.2 | 350.3 |
Other accrued liabilities | 301.3 | 298.3 |
Total current liabilities | 1,149.8 | 965.2 |
Other long-term liabilities | 453.7 | 444.6 |
Total liabilities | 1,603.5 | 1,409.8 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, 2.5 shares authorized, $0.001 par value, issuable in series; no shares issued and outstanding as of December 31, 2021, and 2020 | 0 | 0 |
Common stock, 600.0 shares authorized, $0.001 par value, 357.7 shares and 353.1 shares issued and outstanding as of December 31, 2021, and 2020, respectively | 0.4 | 0.4 |
Additional paid-in capital | 7,164 | 6,444.9 |
Retained earnings | 4,760.9 | 3,261.3 |
Accumulated other comprehensive income (loss) | (24.2) | 24.9 |
Total Intuitive Surgical, Inc. stockholders’ equity | 11,901.1 | 9,731.5 |
Noncontrolling interest in joint venture | 50.4 | 27.6 |
Total stockholders’ equity | 11,951.5 | 9,759.1 |
Total liabilities and stockholders’ equity | $ 13,555 | $ 11,168.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 20.2 | $ 17.7 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares issued (in shares) | 357,700,000 | 353,100,000 |
Common stock, shares outstanding (in shares) | 357,700,000 | 353,100,000 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Total revenue | $ 5,710.1 | $ 4,358.4 | $ 4,478.5 |
Cost of revenue: | |||
Total cost of revenue | 1,751.6 | 1,497.2 | 1,368.3 |
Gross profit | 3,958.5 | 2,861.2 | 3,110.2 |
Operating expenses: | |||
Selling, general and administrative | 1,466.5 | 1,216.3 | 1,178.4 |
Research and development | 671 | 595.1 | 557.3 |
Total operating expenses | 2,137.5 | 1,811.4 | 1,735.7 |
Income from operations | 1,821 | 1,049.8 | 1,374.5 |
Interest and other income, net | 69.3 | 157.2 | 127.7 |
Income before taxes | 1,890.3 | 1,207 | 1,502.2 |
Income tax expense | 162.2 | 140.2 | 120.4 |
Net income | 1,728.1 | 1,066.8 | 1,381.8 |
Less: net income attributable to noncontrolling interest in joint venture | 23.5 | 6.2 | 2.5 |
Net income attributable to Intuitive Surgical, Inc. | $ 1,704.6 | $ 1,060.6 | $ 1,379.3 |
Net income per share attributable to Intuitive Surgical, Inc.: | |||
Basic (usd per share) | $ 4.79 | $ 3.02 | $ 3.98 |
Diluted (usd per share) | $ 4.66 | $ 2.94 | $ 3.85 |
Shares used in computing net income per share attributable to Intuitive Surgical, Inc.: | |||
Basic (shares) | 356.1 | 351.1 | 346.2 |
Diluted (shares) | 365.8 | 361 | 358.4 |
Total comprehensive income attributable to Intuitive Surgical, Inc. | $ 1,655.5 | $ 1,073.1 | $ 1,405 |
Joint venture | |||
Operating expenses: | |||
Less: net income attributable to noncontrolling interest in joint venture | 23.5 | 6.2 | 2.5 |
Product | |||
Revenue: | |||
Total revenue | 4,793.9 | 3,634.6 | 3,754.3 |
Cost of revenue: | |||
Total cost of revenue | 1,464.1 | 1,230.3 | 1,119.1 |
Service | |||
Revenue: | |||
Total revenue | 916.2 | 723.8 | 724.2 |
Cost of revenue: | |||
Total cost of revenue | $ 287.5 | $ 266.9 | $ 249.2 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Intuitive Surgical, Inc. | $ 1,704.6 | $ 1,060.6 | $ 1,379.3 |
Other comprehensive income (loss): | |||
Change in foreign currency translation gains (losses) | (12.6) | 4.7 | 0.3 |
Available-for-sale investments (net of tax): | |||
Change in unrealized gains (losses) | (45.5) | 13.8 | 30.7 |
Less: Reclassification adjustment for (gains) losses on investments | 0 | (4.7) | (0.5) |
Net change | (45.5) | 9.1 | 30.2 |
Derivative instruments (net of tax): | |||
Change in unrealized gains (losses) | 12.3 | (0.8) | 5.8 |
Less: Reclassification adjustment for (gains) losses on derivative instruments | (4.9) | (2.8) | (5.3) |
Net change | 7.4 | (3.6) | 0.5 |
Employee benefit plans (net of tax): | |||
Change in unrealized gains (losses) | 0.1 | 1 | (5.9) |
Less: Reclassification adjustment for losses on employee benefit plans | 1.5 | 1.3 | 0.6 |
Net change | 1.6 | 2.3 | (5.3) |
Other comprehensive income (loss) | (49.1) | 12.5 | 25.7 |
Total comprehensive income attributable to Intuitive Surgical, Inc. | $ 1,655.5 | $ 1,073.1 | $ 1,405 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss)/Income | Total Intuitive Surgical, Inc. Stockholders’ Equity | Total Intuitive Surgical, Inc. Stockholders’ EquityCumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest in Joint Venture |
Beginning balances (shares) at Dec. 31, 2018 | 343.4 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 6,687.5 | $ 0.3 | $ 5,170.1 | $ 1,521.7 | $ (13.3) | $ 6,678.8 | $ 8.7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock through employee stock plans (shares) | 7.1 | |||||||||
Issuance of common stock through employee stock plans | 272.8 | 272.8 | 272.8 | |||||||
Shares withheld related to net share settlement of equity awards (shares) | (0.9) | |||||||||
Shares withheld related to net share settlement of equity awards | (159.1) | (7.6) | (151.5) | (159.1) | ||||||
Share-based compensation expense related to employee stock plans | 335.8 | 335.8 | 335.8 | |||||||
Repurchase and retirement of common stock (shares) | (1.7) | |||||||||
Repurchase and retirement of common stock | (269.5) | (14.5) | (255) | (269.5) | ||||||
Net income attributable to Intuitive Surgical, Inc. | 1,379.3 | 1,379.3 | 1,379.3 | |||||||
Other comprehensive income (loss), attributable to parent | 25.7 | 25.7 | 25.7 | |||||||
Other comprehensive income (loss), noncontrolling interest | (0.3) | |||||||||
Other comprehensive income (loss) | 25.4 | |||||||||
Capital contribution from noncontrolling interest | 10 | 10 | ||||||||
Net income attributable to noncontrolling interest in joint venture | 2.5 | 2.5 | ||||||||
Ending balances (shares) at Dec. 31, 2019 | 347.9 | |||||||||
Ending balance at Dec. 31, 2019 | 8,284.7 | $ (0.1) | $ 0.3 | 5,756.6 | 2,494.5 | $ (0.1) | 12.4 | 8,263.8 | $ (0.1) | 20.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock through employee stock plans (shares) | 6.8 | |||||||||
Issuance of common stock through employee stock plans | 308.8 | $ 0.1 | 308.7 | 308.8 | ||||||
Shares withheld related to net share settlement of equity awards (shares) | (0.9) | |||||||||
Shares withheld related to net share settlement of equity awards | (175.2) | (7.9) | (167.3) | (175.2) | ||||||
Share-based compensation expense related to employee stock plans | 395.4 | 395.4 | 395.4 | |||||||
Repurchase and retirement of common stock (shares) | (0.7) | |||||||||
Repurchase and retirement of common stock | (134.3) | (7.9) | (126.4) | (134.3) | ||||||
Net income attributable to Intuitive Surgical, Inc. | 1,060.6 | 1,060.6 | 1,060.6 | |||||||
Other comprehensive income (loss), attributable to parent | 12.5 | 12.5 | 12.5 | |||||||
Other comprehensive income (loss), noncontrolling interest | 0.5 | |||||||||
Other comprehensive income (loss) | 13 | |||||||||
Capital contribution from noncontrolling interest | 0 | |||||||||
Net income attributable to noncontrolling interest in joint venture | $ 6.2 | 6.2 | ||||||||
Ending balances (shares) at Dec. 31, 2020 | 353.1 | 353.1 | ||||||||
Ending balance at Dec. 31, 2020 | $ 9,759.1 | $ 0.4 | 6,444.9 | 3,261.3 | 24.9 | 9,731.5 | 27.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock through employee stock plans (shares) | 5.4 | |||||||||
Issuance of common stock through employee stock plans | 276.5 | 276.5 | 276.5 | |||||||
Shares withheld related to net share settlement of equity awards (shares) | (0.8) | |||||||||
Shares withheld related to net share settlement of equity awards | (211.6) | (6.6) | (205) | (211.6) | ||||||
Share-based compensation expense related to employee stock plans | 449.2 | 449.2 | 449.2 | |||||||
Net income attributable to Intuitive Surgical, Inc. | 1,704.6 | 1,704.6 | 1,704.6 | |||||||
Other comprehensive income (loss), attributable to parent | (49.1) | (49.1) | (49.1) | |||||||
Other comprehensive income (loss), noncontrolling interest | (0.7) | |||||||||
Other comprehensive income (loss) | (49.8) | |||||||||
Capital contribution from noncontrolling interest | 0 | |||||||||
Net income attributable to noncontrolling interest in joint venture | $ 23.5 | 23.5 | ||||||||
Ending balances (shares) at Dec. 31, 2021 | 357.7 | 357.7 | ||||||||
Ending balance at Dec. 31, 2021 | $ 11,951.5 | $ 0.4 | $ 7,164 | $ 4,760.9 | $ (24.2) | $ 11,901.1 | $ 50.4 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income | $ 1,728.1 | $ 1,066.8 | $ 1,381.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and loss on disposal of property, plant, and equipment, net | 282.8 | 226.4 | 160 |
Amortization of intangible assets | 27.4 | 49.8 | 43 |
Loss (gain) on investments, accretion of discounts, and amortization of premiums on investments, net | 10.6 | (55.1) | (6) |
Deferred income taxes | (62.6) | 57.6 | (8) |
Share-based compensation expense | 449.2 | 395.4 | 335.8 |
Amortization of contract acquisition assets | 22 | 17.1 | 13.1 |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (142.3) | 5.7 | 38.8 |
Inventory | (256) | (170.1) | (360.5) |
Prepaids and other assets | (204.9) | (111.8) | (116.9) |
Accounts payable | 36 | (32.3) | 12.3 |
Accrued compensation and employee benefits | 115.1 | (16.6) | 57.4 |
Deferred revenue | 32.6 | 15 | 35.5 |
Other liabilities | 51.4 | 36.9 | 11.9 |
Net cash provided by operating activities | 2,089.4 | 1,484.8 | 1,598.2 |
Investing activities: | |||
Purchase of investments | (6,452) | (4,292.9) | (3,346.2) |
Proceeds from sales of investments | 84.9 | 800.7 | 107.3 |
Proceeds from maturities of investments | 4,267.8 | 2,930.8 | 2,569.8 |
Purchase of property, plant, and equipment and intellectual property | (353.5) | (341.5) | (425.6) |
Acquisition of businesses, net of cash | 8.7 | 37.7 | 59.7 |
Net cash used in investing activities | (2,461.5) | (940.6) | (1,154.4) |
Financing activities: | |||
Proceeds from issuance of common stock relating to employee stock plans | 276.5 | 308.8 | 272.8 |
Taxes paid related to net share settlement of equity awards | (211.6) | (175.2) | (159.1) |
Repurchase of common stock | 0 | (134.3) | (269.5) |
Capital contribution from noncontrolling interest | 0 | 0 | 10 |
Payment of deferred purchase consideration | (21.9) | (85) | (22.6) |
Net cash provided by (used in) financing activities | 43 | (85.7) | (168.4) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3.4) | (2.6) | (2.2) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (332.5) | 455.9 | 273.2 |
Cash, cash equivalents, and restricted cash, beginning of year | 1,638.5 | 1,182.6 | 909.4 |
Cash, cash equivalents, and restricted cash, end of year | $ 1,306 | $ 1,638.5 | $ 1,182.6 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Consolidated Financial Statements include the results and balances of the Company’s majority-owned joint venture (“Joint Venture”) with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”). Chindex Medical Limited (“Chindex”), a subsidiary of Fosun Pharma, has been its distribution partner for da Vinci Surgical Systems in China. The Company holds a controlling financial interest in the Joint Venture, and the noncontrolling interest is reflected as a separate component of the consolidated stockholders’ equity. The noncontrolling interest’s share of the earnings in the Joint Venture is presented separately in the Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019. Common Stock Split Shares issued pursuant to the three-for-one stock split (the "Stock Split") of the Company's issued and outstanding common stock, par value $0.001 per share, were distributed on October 4, 2021, to stockholders of record as of September 27, 2021. All share and per-share information presented in the Consolidated Financial Statements have been retroactively adjusted to reflect the Stock Split. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. The accounting estimates that require management’s most significant, complex, and subjective judgments include the valuation and recognition of investments, revenue recognition and the valuation of revenue and allowances for sales returns and doubtful accounts, the valuation of inventory, the valuation of and assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of share-based compensation, the recognition and measurement of current and deferred income tax assets, along with the assessment of recoverability, and liabilities, and the estimates for legal contingencies. Actual results could differ materially from these estimates. Concentrations of Credit Risk and Other Risks and Uncertainties The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Marketable securities and derivative instruments are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities and derivative instruments consist of various major corporations, financial institutions, municipalities, and government agencies of high credit standing. The Company’s accounts receivable are primarily derived from billings related to revenue arrangements with customers and distributors located throughout the world. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of both December 31, 2021, and 2020, 67% of accounts receivable were from domestic customers. During the years ended December 31, 2021, 2020, and 2019, domestic revenue accounted for 67%, 68%, and 70% of total revenue, respectively, while outside of the U.S. revenue accounted for 33%, 32%, and 30%, respectively, of total revenue for each of the years then ended. The Company is subject to additional risks and uncertainties due to the COVID-19 pandemic. The extent of the impact on the Company’s business is highly uncertain and difficult to predict. In certain regions, the Company’s customers continue to divert resources to treat COVID-19 patients and defer some elective surgical procedures, both of which may impact the Company’s customers’ ability to meet their obligations, including to the Company. Furthermore, economies worldwide have been negatively impacted by the COVID-19 pandemic, and it is possible that the impact could cause an extended local and/or global economic recession. Such economic disruption could have a material adverse effect on the Company’s business as hospitals curtail and reduce capital and overall spending. Policymakers around the globe have responded with fiscal policy actions to support the healthcare industry and their economies. However, the magnitude and overall effectiveness of these actions remains uncertain. The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, all of which are uncertain and cannot be predicted. The Company’s future results of operations and liquidity could be materially adversely affected by delays in payments of outstanding receivables, supply chain disruptions, including shortages and inflationary pressure, uncertain or reduced demand, and the impact of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. In particular, the Company has experienced increased difficulties in obtaining a sufficient supply of component materials used in its products, including those in the semiconductor market, as global supply has become significantly constrained due to increased demand in semiconductors and other materials. Additionally, prices of such materials have increased due to the increased demand and supply shortage. The Company is engaged in activities to seek to mitigate supply disruptions by, for example, increasing its communications with its suppliers and modifying its purchase order coverage and inventory levels. However, the global supply chain shortages, including those in the semiconductor market, are likely to remain a challenge for the foreseeable future. The Company has also experienced challenges in logistics, as certain shipping routes have been impacted by port closures. Such global shortages in important components and logistics challenges have resulted in, and will continue to cause, inflationary cost pressure in the Company’s supply chain. To date, these challenges have not materially impacted the Company’s results of operations or ability to deliver product and services to its customers. However, if shortages in important supply chain materials in the semiconductor or other markets continue, the Company could fail to meet product demand, which would adversely impact its business, financial condition, results of operations, or cash flows. Increased labor shortages globally, including staff burnout and attrition, could also impact the Company’s ability to hire and retain personnel critical to its manufacturing, logistics, and commercial operations. The Company is also highly dependent on the principal members of its management and scientific staff. Attracting and retaining qualified personnel is critical to its success, and competition for them has become more intense. The loss of critical members of the Company’s team, or its inability to attract and retain qualified personnel, could significantly harm its operations, business, and ability to compete. In addition, hospitals are also experiencing staffing shortages and supply chain issues that could impact their ability to provide patient care. As of the date of issuance of these Financial Statements, the extent to which the COVID-19 pandemic may materially adversely affect the Company’s financial condition, liquidity, or results of operations is uncertain. Customer Relief Program During the second quarter of 2020, the Company introduced a series of programs to provide financial relief to customers (the “Customer Relief Program”). As part of the Customer Relief Program, the Company provided its customers service fee credits, extended payment terms, and deferred payments related to Intuitive System Leasing arrangements. The Customer Relief Program ended at the end of the third quarter of 2020. There was no similar customer relief program offered in 2021. Service fee credits . As part of the Customer Relief Program, the Company provided service fee credits to customers based on the reduction in the utilization of their systems during the second and third quarters of 2020 relative to a pre-COVID-19 level baseline. The Company reflected the service fee credits as a reduction of service revenue and accounts receivable in the quarter they were earned by its customers. The service fee credit program resulted in an $80 million decrease in service revenue in 2020. Short-term payment relief . In response to the COVID-19 pandemic, the Company introduced a payment deferral program to provide financial relief to qualified customers. This relief extended payment terms up to 180 days for qualified and creditworthy customers. The Company also introduced a lease payment deferral program in which creditworthy customers with active Intuitive system leasing arrangements could elect to defer lease payments up to five months that are payable at the end of the lease by extending the lease term. This program did not result in substantial increases in the rights of the lessor or the obligations of the lessee, and the Company elected to apply the relief provided by the Financial Accounting Standards Board (“FASB”) FAQ on accounting for COVID-19 and market volatility by not applying the lease modification guidance in ASC 842 to the lease arrangements affected by the deferrals and lease extensions. For operating lease arrangements where the lease term was extended by adding the deferred period to the end of the contract, the Company recalculated the straight-line revenue based on the revised terms, consistent with the treatment accepted by the FASB FAQ on accounting for COVID-19. For its sales-type lease arrangements impacted, the Company accounted for the deferral in the timing of lease payments as if there were no changes in the lease contract, consistent with the treatment accepted by the FASB FAQ on accounting for COVID-19. While the short-term payment relief offered did not have a material impact on the results of operations, the Company deferred $15 million of lease billings and extended payment terms associated with $181 million of billings during the program, of which $19 million remained outstanding as of December 31, 2020. All of the trade receivables with extended payment terms have been collected as of December 31, 2021. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of 90 days or less to be cash equivalents. Restricted Cash As of December 31, 2021, the Company had $17.9 million of restricted cash associated with its insurance programs. As of December 31, 2020, the Company had $18.0 million of restricted cash associated with its insurance programs. Restricted cash was included in prepaids and other current assets and intangible and other assets, net on the Consolidated Balance Sheets. Investments Available-for-sale investments. The Company’s investments may consist of U.S. treasury and U.S. government agency securities, taxable and tax-exempt municipal notes, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and money market funds. The Company has designated all investments as available-for-sale and, therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest and other income, net in the Consolidated Statements of Income. Investments with remaining maturities at date of purchase greater than 90 days and remaining maturities as of the reporting period less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. All of the Company’s investments are subject to a periodic impairment review. Available-for-sale investments in an unrealized loss position are written down to fair value through a charge to other income, net, if the Company intends to sell the security or it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis. The Company evaluates the remaining securities to determine what amount of the excess, if any, is caused by expected credit losses. Factors considered in determining whether a credit-related loss exists include the financial condition and near-term prospects of the investee, the extent of the loss related to credit of the issuer, and the expected cash flows from the security. No significant charges were recorded during the years ended December 31, 2021, 2020, and 2019. Equity investments. The Company holds equity investments with readily determinable fair values and equity investments without readily determinable fair values. The Company generally recognizes equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Fair Value Measurements The Company measures the fair value of money market funds, certain U.S. treasury securities, and equity investments with readily determinable value based on quoted prices in active markets for identical assets as Level 1 securities. Marketable securities measured at fair value using Level 2 inputs are primarily comprised of commercial paper, corporate notes and bonds, U.S. and non-U.S. government agencies, municipal notes, and equity investments without readily determinable value. The Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the Level 2 classification of these securities within the fair value hierarchy. Inventory Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. Inventory costs include direct materials, direct labor, and normal manufacturing overhead. The cost basis of the Company’s inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. Additionally, the cost basis of the Company’s inventory does not include any unallocated fixed overhead costs associated with abnormally low utilization of its factories. Property, Plant, and Equipment Property, plant, and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, generally, as follows: Useful Lives Building Up to 30 years Building improvements Up to 15 years Leasehold improvements Lesser of useful life or term of lease Equipment and furniture 5 years Operating lease assets Greater of lease term or 1 to 5 years Computer and office equipment 3 years Enterprise-wide software 5 years Purchased software Lesser of 3 years or life of license Depreciation expense for the years ended December 31, 2021, 2020, and 2019, was $280 million, $221 million, and $157 million, respectively. Capitalized Software Costs for Internal Use The Company capitalizes direct costs associated with developing or obtaining internal use software, including enterprise-wide business software, that are incurred during the application development stage. These capitalized costs are recorded as capitalized software within property, plant, and equipment. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Once the software is ready for its intended use, amounts capitalized are amortized over an estimated useful life of up to 5 years, generally on a straight-line basis. Implementation Costs in a Cloud Computing Arrangement The Company capitalizes qualified implementation costs incurred in a hosting arrangement that is a service contract for which it is the customer in accordance with the requirements for capitalizing costs incurred to develop internal-use software. These capitalized implementation costs are recorded within intangible and other assets, net, and are generally amortized over the fixed, non-cancellable term of the associated hosting arrangement on a straight-line basis. Business Combinations The Company accounts for business acquisitions in accordance with ASC 805, Business Combinations . This standard requires the acquiring entity in a business combination to recognize the assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree using acquisition-date fair values. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination, including contingent consideration. The excess of the acquisition-date fair value of consideration paid over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. The Company includes the results of operations of the businesses that are acquired as of the acquisition date. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually during the fourth quarter, or if circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net identifiable assets and liabilities. The Company continues to operate in one segment, which is considered to be the sole reporting unit and, therefore, goodwill was tested for impairment at the enterprise level. Intangible assets are carried at cost, net of accumulated amortization. The Company does not have intangible assets with indefinite useful lives other than goodwill. Amortization is recorded on a straight-line basis over the intangible assets’ useful lives, which range from approximately 2 to 9 years. Impairment of Long-lived Assets The Company evaluates long-lived assets, which include finite-lived intangible and tangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. Recoverability is measured by comparing the net book value to the future undiscounted cash flows attributable to such assets. The Company recognizes an impairment charge equal to the amount by which the net book value exceeds its fair value. No material impairment losses were incurred in the periods presented. Revenue Recognition The Company’s revenue consists of product revenue, resulting from the sale of systems, system components, and instruments and accessories, and service revenue. The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and its customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on the consideration specified in the contract with each customer, net of any sales incentives and taxes collected from customers that are remitted to government authorities. The Company’s system sale arrangements generally contain multiple products and services. For these bundled sale arrangements, the Company accounts for individual products and services as separate performance obligations if they are a distinct product or service that is separately identifiable from other items in bundled packages and if a customer can benefit from the product or service on its own or with other resources that are readily available to the customer. The Company’s system sale arrangements include a combination of the following performance obligations: system(s); system components; system accessories; instruments; accessories; and system service. The Company’s system sale arrangements generally include a five-year period of service. The first year of service is generally free and included in the system sale arrangement, and the remaining four years are generally included at a stated service price. The Company considers the service terms in the arrangements that are legally enforceable to be performance obligations. Other than service, the Company generally satisfies all of the performance obligations at a point in time. System components, system accessories, instruments, accessories, and service are also sold on a stand-alone basis. The Company recognizes revenue as the performance obligations are satisfied by transferring control of the product or service to a customer. The Company generally recognizes revenue for the performance obligations in the following manner: System sales. For systems (including system components and system accessories) sold directly to end customers, revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. For systems sold through distributors, revenue is recognized generally at the time of shipment. The Company’s system arrangements generally do not provide a right of return. The systems are generally covered by a one Instruments and accessories. Revenue from sales of instruments and accessories is recognized when control is transferred to the customers, which generally occurs at the time of shipment but also could occur at the time of delivery, depending on the customer arrangement. The Company generally allows its customers in the normal course of business to return unused products for a limited period of time subsequent to the initial purchase and records an allowance against revenue for estimated returns. Service. Service revenue is recognized over the term of the service period, as the customer benefits from the services throughout the service period. Revenue related to services performed on a time-and-materials basis is recognized when performed. The Company offers its customers the opportunity to trade in their older systems for a credit towards the purchase of a newer generation system. The Company generally does not provide specified price trade-in rights or upgrade rights at the time of system purchase. Such trade-in or upgrade transactions are separately negotiated based on the circumstances at the time of the trade-in or upgrade, based on the then-fair value of the system, and are generally not based on any pre-existing rights granted by the Company. Accordingly, such trade-ins and upgrades are not considered separate performance obligations in the arrangement for a system sale. Traded-in systems can be reconditioned and resold. The Company accounts for the fair value of the traded-in system in the total consideration in the arrangement by including the net realizable value of the traded-in system less a normal profit margin. The value of the traded-in system is determined as the amount, after reconditioning costs are added, that will allow a normal profit margin on the sale of the reconditioned unit to be generated. When there is no market for the traded-in units, no value is assigned. The assigned value of the traded-in units is reported as a component of inventory until resold or otherwise disposed. In addition, customers may also have the opportunity to upgrade their systems at a price determined at the time of the upgrade, for example, by adding a second surgeon console for use with the da Vinci Surgical System. Such upgrades are performed by completing component level upgrades at the customer’s site. Upgrade revenue is recognized when the component level upgrades are complete and all revenue recognition criteria are met. For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services, geographies, and type of customer. The Company regularly reviews standalone selling prices and updates these estimates, as necessary. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that certain sales incentives provided to the Company’s sales team are required to be capitalized when the Company expects to generate future economic benefits from the related revenue-generating contracts subsequent to the initial system sales transaction. When determining the economic life of the contract acquisition assets recognized, the Company considers historical service renewal rates, expectations of future customer renewals of service contracts, and other factors that could impact the economic benefits that the Company expects to generate from the relationship with its customers. The costs capitalized as contract acquisition costs included in intangible and other assets, net in the Consolidated Balance Sheets were $71.8 million and $53.1 million as of December 31, 2021, and 2020, respectively. The Company did not incur any impairment losses during the periods presented. Intuitive System Leasing The Company enters into lease arrangements with certain qualified customers. Leases have terms that generally range from 24 to 84 months and are usually collateralized by a security interest in the underlying assets. The Company also leases systems to certain qualified customers under usage-based arrangements that have terms up to 84 months. For these usage-based lease arrangements, the lease fee is generally billed monthly in arrears based on a contractual per-use fee, and usage is generally defined as the number of procedures performed with the system. Revenue related to multiple-element arrangements are allocated to lease and non-lease elements based on their relative standalone selling prices as prescribed by the Company’s revenue recognition policy. Lease elements generally include a system or system component, while non-lease elements generally include service. For some lease arrangements, customers are provided with the right to purchase the leased system at some point during and/or at the end of the lease term. Except for certain usage-based lease arrangements, lease arrangements generally do not provide rights for the customers to exit or terminate the lease without incurring a penalty. Certain lease arrangements may also include upgrade rights that allow customers to upgrade the leased system to newer technology at some point during the lease term. Generally, these upgrade rights do not specify the terms, including the price or structure of the future upgrade transactions, as those terms are negotiated based on the circumstances at the time of the upgrade, including the then-fair value of the system as well as other factors. In determining whether a transaction should be classified as a sales-type or operating lease, the Company considers the following terms at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term; (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system; (3) whether the lease term is for the major part of the remaining economic life of the leased system; (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise; and (5) whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. The Company generally recognizes revenue from sales-type lease arrangements at the time the system is accepted by the customer, assuming all other revenue recognition criteria have been met. Revenue related to lease elements from sales-type leases is presented as product revenue. Revenue related to lease elements from operating lease arrangements is generally recognized on a straight-line basis over the lease term and is presented as product revenue. Revenue related to lease elements from usage-based arrangements is recognized as the customers utilize the systems and is presented as product revenue. Other Leasing Arrangements The Company determines if an arrangement contains a lease at inception. For arrangements where the Company is the lessee, operating leases are included in intangible and other assets, net, other accrued liabilities, and other long-term liabilities on the Consolidated Balance Sheet as of December 31, 2021. The Company currently does not have any finance leases. Operating lease right-of-use (“ROU”) assets and operating leases liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities, as the Company does not have insight to the inputs necessary to calculate the implicit rate of the leases. Lease terms may include options to extend or terminate when the Company is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company also has lease arrangements with lease and non-lease components. The Company elected the practical expedient not to separate non-lease components from lease components for the Company’s real estate and automobile leases. Additionally, the Company applied a portfolio approach to effectively account for the operating lease ROU assets and lease liabilities for the Company’s automobile leases. The Company also elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for leases with terms of 12 months or less. Credit Losses Trade accounts receivable. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. For the years ended December 31, 2021, and 2020, bad debt expense was not material. Net investment in sales-type leases. The Company enters into sales-type leases with certain qualified customers to purchase its systems. Sales-type leases have terms that generally range from 24 to 84 months and are usually collateralized by a security interest in the underlying assets. The allowance for loan loss is based on the Company’s assessment of the current expected lifetime loss on lease receivables. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the lease receivable balances, and current economic conditions that may affect a customer’s ability to pay. Lease receivables are considered past due 90 days after invoice. The Company manages the credit risk of the net investment in sales-type leases using a number of f |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Cash, Cash Equivalents, and Investments The following tables summarize the Company’s cash and available-for-sale marketable securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents or short-term or long-term investments as of December 31, 2021, and 2020 (in millions): Reported as: Amortized Gross Gross Allowance for Credit Loss Fair Cash and Short-term Long-term December 31, 2021 Cash $ 572.3 $ — $ — $ — $ 572.3 $ 572.3 $ — $ — Level 1: Money market funds 696.6 — — — 696.6 696.6 — — U.S. treasuries 3,429.1 6.3 (15.4) — 3,420.0 17.0 1,100.3 2,302.7 Subtotal 4,125.7 6.3 (15.4) — 4,116.6 713.6 1,100.3 2,302.7 Level 2: Commercial paper 717.7 — — — 717.7 — 717.7 — Corporate securities 2,485.6 2.7 (11.9) — 2,476.4 5.0 886.7 1,584.7 U.S. government agencies 526.1 0.2 (2.9) — 523.4 — 137.8 385.6 Municipal securities 213.4 0.7 (1.0) — 213.1 — 70.6 142.5 Subtotal 3,942.8 3.6 (15.8) — 3,930.6 5.0 1,812.8 2,112.8 Total assets measured at fair value $ 8,640.8 $ 9.9 $ (31.2) $ — $ 8,619.5 $ 1,290.9 $ 2,913.1 $ 4,415.5 Reported as: Amortized Gross Gross Allowance for Credit Loss Fair Cash and Short-term Long-term December 31, 2020 Cash $ 644.3 $ — $ — $ — $ 644.3 $ 644.3 $ — $ — Level 1: Money market funds 625.8 — — — 625.8 625.8 — — U.S. treasuries 2,626.8 23.0 — — 2,649.8 212.5 1,567.9 869.4 Subtotal 3,252.6 23.0 — — 3,275.6 838.3 1,567.9 869.4 Level 2: Commercial paper 671.3 — — — 671.3 64.1 607.2 — Corporate securities 1,425.4 11.9 (0.2) — 1,437.1 3.4 1,036.5 397.2 U.S. government agencies 716.5 2.5 — — 719.0 72.5 233.6 412.9 Municipal securities 119.8 2.0 — — 121.8 — 43.6 78.2 Subtotal 2,933.0 16.4 (0.2) — 2,949.2 140.0 1,920.9 888.3 Total assets measured at fair value $ 6,829.9 $ 39.4 $ (0.2) $ — $ 6,869.1 $ 1,622.6 $ 3,488.8 $ 1,757.7 The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale investments (excluding cash and money market funds) as of December 31, 2021 (in millions): Amortized Fair Mature in less than one year $ 2,931.6 $ 2,935.1 Mature in one to five years 4,440.3 4,415.5 Total $ 7,371.9 $ 7,350.6 Actual maturities may differ from contractual maturities, because certain borrowers have the right to call or prepay certain obligations. Gross realized gains recognized on the sale of investments were not material and $8.3 million for the years ended December 31, 2021 and 2020, respectively. Gross realized losses recognized on the sale of investments were not material for the periods presented. As of December 31, 2021, and 2020, net unrealized gains/(losses) on investments, net of tax, of $16.0 million and $29.5 million , respectively, were included in accumulated other comprehensive income/(loss) in the accompanying Consolidated Balance Sheets. The following tables present the breakdown of the available-for-sale investments with unrealized losses as of December 31, 2021, and 2020 (in millions): Unrealized losses less Unrealized losses 12 Total December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized Commercial paper $ 4.0 $ — $ — $ — $ 4.0 $ — Corporate securities 1,687.9 (11.9) — — 1,687.9 (11.9) U.S. treasuries 2,596.3 (15.4) — — 2,596.3 (15.4) U.S. government agencies 412.5 (2.9) — — 412.5 (2.9) Municipal securities 156.0 (1.0) — — 156.0 (1.0) Total $ 4,856.7 $ (31.2) $ — $ — $ 4,856.7 $ (31.2) December 31, 2020 Corporate securities $ 352.7 $ (0.2) $ — $ — $ 352.7 $ (0.2) U.S. treasuries 278.1 — — — 278.1 — U.S. government agencies 63.5 — — — 63.5 — Municipal securities 21.3 — — — 21.3 — Total $ 715.6 $ (0.2) $ — $ — $ 715.6 $ (0.2) The unrealized losses on the available-for-sale investments are related to commercial paper, corporate securities, U.S. treasuries, U.S. government agencies, and municipal securities. The Company determined these unrealized losses to be temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investment’s fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, the extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security before the recovery of its amortized cost. Equity Investments The following table is a summary of the activity related to equity investments (in millions): Reported as: December 31, 2020 Changes in Fair Value (1) Sales/Purchases/Others (2) December 31, 2021 Prepaids and other current assets Intangible and other assets, net Equity investments with readily determinable value (Level 1) $ 60.1 (17.7) (15.5) $ 26.9 $ 26.9 $ — Equity investments without readily determinable value (Level 2) $ 30.2 43.8 (58.4) $ 15.6 $ — $ 15.6 (1) Recorded in Interest and other income, net. (2) Other includes conversion of certain equity investments without readily determinable value to equity investments with readily determinable value. The Company recognized a $43.8 million increase in fair value, which was reflected in Interest and other income, net, due to changes in observable prices for certain equity investments that are held at cost, because they lack readily determinable market values (Level 2). A total of $34.2 million of this increase in fair value was related to an equity investment in preferred shares of Broncus Holding Corporation (“Broncus”). There were no decreases in fair value reflected in net income due to impairments. In September 2021, Broncus completed an IPO of common shares on the Stock Exchange of Hong Kong. Upon completion of its IPO, the Company’s preferred shares were converted to common shares, which have a readily determinable value (Level 1). The Company is restricted from selling these shares for a period of six months. Subsequent to the IPO, the Company recognized a $29.1 million decrease in fair value from this investment. Accordingly, for the year ended December 31, 2021, the Company has recognized a net gain of $5.1 million related to its Broncus investment, comprised of the $34.2 million gain reflected in changes in fair value for Level 2 equity investments, offset by the $29.1 million loss reflected in changes in fair value for Level 1 equity investments, both of which were reflected in Interest and other income, net. The Company held an equity investment in common shares of Bolder Surgical Holdings, Inc. (“Bolder”), which was reflected in its financial statements on a cost basis. During the fourth quarter of 2021, Hologic, Inc., a publicly traded company, completed its acquisition of Bolder. Under the terms of the acquisition agreement, the Company received cash on the date of closing and recognized a gain on its investment of $9.5 million. In January 2021, the Company sold all of its shares of Teladoc Health, Inc. (“Teladoc”), a publicly traded company, for $71.5 million and recognized a gain of $11.4 million, which was reflected in Interest and other income, net. This gain was offset by a $7.5 million loss recognized upon the settlement of a corresponding derivative collar contract. Foreign Currency Derivatives The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency-denominated sales, expenses, and intercompany balances and other monetary assets or liabilities denominated in currencies other than the U.S. dollar (“USD”). The derivative assets and liabilities are measured using Level 2 fair value inputs. Cash Flow Hedges. The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the USD, primarily the Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), and the Korean Won (“KRW”). The Company also enters into currency forward contracts as cash flow hedges to hedge certain forecasted expense transactions denominated in EUR and Swiss Franc (“CHF”). For these derivatives, the Company reports the unrealized after-tax gain or loss from the hedge as a component of accumulated other comprehensive income/(loss) in stockholders’ equity and reclassifies the amount into earnings in the same period in which the hedged transaction affects earnings. The amounts reclassified to revenue and expenses related to the hedged transactions and the ineffective portions of cash flow hedges were not material for the periods presented. Other Derivatives Not Designated as Hedging Instruments. Other derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, JPY, KRW, CHF, Indian Rupee (“INR”), Mexican Peso (“MXN”), Chinese Yuan (“CNY”), and New Taiwan Dollar (“TWD”). These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions): Years Ended December 31, 2021 2020 2019 Recognized gains (losses) in interest and other income, net $ 15.5 $ (12.3) $ 6.4 Foreign exchange gains (losses) related to balance sheet re-measurement $ (16.4) $ 10.9 $ (1.5) The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and the aggregate gross fair value outstanding at the end of each period were as follows (in millions): Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, December 31, December 31, Notional amounts: Forward contracts $ 181.2 $ 154.3 $ 318.8 $ 309.8 Gross fair value recorded in: Prepaid and other current assets $ 5.7 $ 0.9 $ 6.9 $ 0.7 Other accrued liabilities $ 0.5 $ 4.3 $ 0.8 $ 5.4 |
Consolidated Financial Statemen
Consolidated Financial Statement Details | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Financial Statement Details | CONSOLIDATED FINANCIAL STATEMENT DETAILS The following tables provide details of selected consolidated financial statement items (in millions): December 31, 2021 2020 Inventory: Raw materials $ 214.6 $ 184.1 Work-in-process 96.4 75.6 Finished goods 276.1 341.8 Total inventory $ 587.1 $ 601.5 December 31, 2021 2020 Prepaids and other current assets: Prepaid taxes $ 4.3 $ 28.9 Equity investments 26.9 60.1 Net investment in sales-type leases – short-term 110.3 81.1 Other prepaids and other current assets 129.6 97.4 Total prepaids and other current assets $ 271.1 $ 267.5 December 31, 2021 2020 Property, plant, and equipment, net: Land $ 367.8 $ 277.9 Building and building/leasehold improvements 812.5 773.8 Machinery and equipment 497.6 428.0 Operating lease assets – Intuitive System Leasing 616.1 419.9 Computer and office equipment 123.7 112.6 Capitalized software 217.6 205.4 Construction-in-process 209.7 117.4 Gross property, plant, and equipment 2,845.0 2,335.0 Less: Accumulated depreciation* (968.6) (757.7) Total property, plant, and equipment, net $ 1,876.4 $ 1,577.3 *Accumulated depreciation associated with operating lease assets – Intuitive System Leasing $ (182.1) $ (112.1) December 31, 2021 2020 Other accrued liabilities – short-term: Taxes payable $ 54.1 $ 47.2 Current portion of deferred purchase consideration 11.6 10.4 Current portion of contingent consideration 0.4 15.1 Other accrued liabilities 235.2 225.6 Total other accrued liabilities – short-term $ 301.3 $ 298.3 December 31, 2021 2020 Other long-term liabilities: Income taxes – long-term $ 316.6 $ 305.6 Deferred revenue – long-term 36.8 32.1 Other long-term liabilities 100.3 106.9 Total other long-term liabilities $ 453.7 $ 444.6 Supplemental Cash flow Information The following table provides supplemental cash flow information (in millions): Years Ended December 31, 2021 2020 2019 Income taxes paid $ 180.0 $ 34.4 $ 158.6 Supplemental non-cash investing and financing activities: Equipment transfers from inventory to property, plant, and equipment $ 302.4 $ 186.5 $ 210.6 Acquisition of property, plant, and equipment in accounts payable and accrued liabilities $ 32.1 $ 47.3 $ 30.2 Deferred purchase and contingent consideration related to acquisitions $ 6.5 $ 4.2 $ 86.6 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table presents revenue disaggregated by types and geography (in millions): Years Ended December 31, U.S. 2021 2020 2019 Instruments and accessories $ 2,225.1 $ 1,785.1 $ 1,790.4 Systems 1,024.8 695.0 830.7 Services 603.3 482.6 508.4 Total U.S. revenue $ 3,853.2 $ 2,962.7 $ 3,129.5 Outside of U.S. (“OUS”) Instruments and accessories $ 875.4 $ 670.6 $ 617.8 Systems 668.6 483.9 515.4 Services 312.9 241.2 215.8 Total OUS revenue $ 1,856.9 $ 1,395.7 $ 1,349.0 Total Instruments and accessories $ 3,100.5 $ 2,455.7 $ 2,408.2 Systems 1,693.4 1,178.9 1,346.1 Services 916.2 723.8 724.2 Total revenue $ 5,710.1 $ 4,358.4 $ 4,478.5 Remaining Performance Obligations The transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which revenue has not yet been recognized. A significant portion of these performance obligations relate to service obligations in the Company's system sale and lease arrangements that will be satisfied and recognized as revenue in future periods. The transaction price allocated to the remaining performance obligations was $1.86 billion as of December 31, 2021. The remaining performance obligations are expected to be satisfied over the term of the system sale, lease, and service arrangements, which are generally up to 5 years. Contract Assets and Liabilities The following information summarizes the Company’s contract assets and liabilities (in millions): December 31, 2021 2020 Contract assets $ 46.9 $ 34.6 Deferred revenue $ 414.0 $ 382.3 The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due 30 to 60 days from date of invoice. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed. The associated deferred revenue is generally recognized over the term of the service period. The Company did not have any significant impairment losses on its contract assets for the periods presented. During the year ended December 31, 2021, the Company recognized $351 million of revenue that was included in the deferred revenue balance as of December 31, 2020. During the year ended December 31, 2020, the Company recognized $282 million of revenue that was included in the deferred revenue balance as of December 31, 2019. Intuitive System Leasing The following table presents product revenue from Intuitive System Leasing arrangements (in millions): Years Ended December 31, 2021 2020 2019 Sales-type lease revenue $ 220.3 $ 154.4 $ 81.6 Operating lease revenue (1) $ 276.9 $ 176.7 $ 106.9 (1) Includes variable lease revenue relating to usage-based arrangements. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES Lessor Information related to Intuitive System Leasing Sales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions): December 31, 2021 2020 Gross lease receivables $ 404.0 $ 286.1 Unearned income (11.4) (11.1) Subtotal 392.6 275.0 Allowance for credit loss (3.6) (4.4) Net investment in sales-type leases $ 389.0 $ 270.6 Reported as: Prepaids and other current assets $ 110.3 $ 81.1 Intangible and other assets, net 278.7 189.5 Total, net $ 389.0 $ 270.6 Contractual maturities of gross lease receivables as of December 31, 2021, are as follows (in millions): Fiscal Year Amount 2022 $ 117.8 2023 102.8 2024 90.3 2025 61.1 2026 29.3 2027 and thereafter 2.7 Total $ 404.0 Operating Leases. The Company’s operating lease terms are generally less than seven years. Future minimum lease payments related to the non-cancellable portion of operating leases (which excludes contingent payments related to usage-based arrangements) as of December 31, 2021, are as follows (in millions): Fiscal Year Amount 2022 $ 260.3 2023 223.8 2024 173.6 2025 121.8 2026 61.2 2027 and thereafter 21.9 Total $ 862.6 Variable lease revenue relating to usage-based arrangements was not material for the years ended December 31, 2021, 2020, and 2019. Lessee Information The Company enters into operating leases for real estate, automobiles, and certain equipment. Operating lease expense was $20.4 million, $21.0 million, and $19.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. For leases with terms of 12 months or less, the related expense was not material for each of the years ended December 31, 2021, 2020, and 2019. Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to operating leases was as follows (in millions): Years Ended December 31, 2021 2020 2019 Cash paid for leases that were included within operating cash outflows $ 23.2 $ 11.0 $ 18.8 Right-of-use assets recognized related to new lease obligations $ 30.6 $ 9.6 $ 21.5 Supplemental balance sheet information, as of December 31, 2021, and 2020, related to operating leases was as follows (in millions, except lease term and discount rate): December 31, Reported as: 2021 2020 Intangible and other assets, net (Right-of-use assets) $ 74.4 $ 63.9 Other accrued liabilities $ 20.4 $ 21.9 Other long-term liabilities 66.6 58.0 Total lease liabilities $ 87.0 $ 79.9 Weighted-average remaining lease term 4.9 years 5.3 years Weighted-average discount rate 2.5 % 3.2 % As of December 31, 2021, the future payments related to the Company’s operating lease liabilities are scheduled as follows (in millions): Fiscal Year Amount 2022 $ 22.0 2023 21.9 2024 16.6 2025 14.5 2026 12.1 2027 and thereafter 9.1 Total lease payments 96.2 Less imputed interest (9.2) Total operating lease liabilities $ 87.0 |
Leases | LEASES Lessor Information related to Intuitive System Leasing Sales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions): December 31, 2021 2020 Gross lease receivables $ 404.0 $ 286.1 Unearned income (11.4) (11.1) Subtotal 392.6 275.0 Allowance for credit loss (3.6) (4.4) Net investment in sales-type leases $ 389.0 $ 270.6 Reported as: Prepaids and other current assets $ 110.3 $ 81.1 Intangible and other assets, net 278.7 189.5 Total, net $ 389.0 $ 270.6 Contractual maturities of gross lease receivables as of December 31, 2021, are as follows (in millions): Fiscal Year Amount 2022 $ 117.8 2023 102.8 2024 90.3 2025 61.1 2026 29.3 2027 and thereafter 2.7 Total $ 404.0 Operating Leases. The Company’s operating lease terms are generally less than seven years. Future minimum lease payments related to the non-cancellable portion of operating leases (which excludes contingent payments related to usage-based arrangements) as of December 31, 2021, are as follows (in millions): Fiscal Year Amount 2022 $ 260.3 2023 223.8 2024 173.6 2025 121.8 2026 61.2 2027 and thereafter 21.9 Total $ 862.6 Variable lease revenue relating to usage-based arrangements was not material for the years ended December 31, 2021, 2020, and 2019. Lessee Information The Company enters into operating leases for real estate, automobiles, and certain equipment. Operating lease expense was $20.4 million, $21.0 million, and $19.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. For leases with terms of 12 months or less, the related expense was not material for each of the years ended December 31, 2021, 2020, and 2019. Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to operating leases was as follows (in millions): Years Ended December 31, 2021 2020 2019 Cash paid for leases that were included within operating cash outflows $ 23.2 $ 11.0 $ 18.8 Right-of-use assets recognized related to new lease obligations $ 30.6 $ 9.6 $ 21.5 Supplemental balance sheet information, as of December 31, 2021, and 2020, related to operating leases was as follows (in millions, except lease term and discount rate): December 31, Reported as: 2021 2020 Intangible and other assets, net (Right-of-use assets) $ 74.4 $ 63.9 Other accrued liabilities $ 20.4 $ 21.9 Other long-term liabilities 66.6 58.0 Total lease liabilities $ 87.0 $ 79.9 Weighted-average remaining lease term 4.9 years 5.3 years Weighted-average discount rate 2.5 % 3.2 % As of December 31, 2021, the future payments related to the Company’s operating lease liabilities are scheduled as follows (in millions): Fiscal Year Amount 2022 $ 22.0 2023 21.9 2024 16.6 2025 14.5 2026 12.1 2027 and thereafter 9.1 Total lease payments 96.2 Less imputed interest (9.2) Total operating lease liabilities $ 87.0 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Acquisitions in 2021 There were no material acquisitions in 2021. Acquisitions in 2020 Orpheus Medical In February 2020, the Company acquired Orpheus Medical Ltd. and its wholly-owned subsidiaries to deepen and expand the Company’s integrated informatics platform. Orpheus Medical provides hospitals with information technology connectivity, as well as expertise in processing and archiving surgical videos. Acquisitions in 2019 Chindex During the first quarter of 2019, the Company’s majority-owned Joint Venture with Fosun Pharma acquired certain assets from Chindex and its affiliates, a subsidiary of Fosun Pharma, including distribution rights, customer relationships, and certain personnel on January 5, 2019, which collectively met the definition of a business. Chindex was the Company’s distributor of da Vinci products and services in China. The transaction enhances the Company’s ability to serve patients, surgeons, and hospitals in China. The total purchase consideration of $66.0 million, as of the acquisition date, included a contingent consideration liability of $64.7 million and an upfront cash payment of $1.3 million. As of the acquisition date, the estimated total undiscounted contingent consideration was approximately $81 million, based on the underlying performance of the business in 2019 and 2020 as well as the amount and timing of the contingent consideration payments. Since the acquisition date, the total undiscounted contingent consideration decreased by approximately $1 million due to changes in the timing of the milestone achievements. For the years ended December 31, 2021, 2020, and 2019, the contingent consideration liability changed due to payments of $12.9 million, $53.7 million, and $16.5 million, respectively, and net additional expenses, which were recorded to selling, general and administrative expenses, of zero, $11.3 million, and $7.2 million, respectively, primarily related to accretion due to the passage of time. As of December 31, 2021, all contingent consideration has been settled and paid. The Company recorded $1.7 million of net tangible assets, $58.6 million of intangible assets, and $5.7 million of residual goodwill. Intangible assets included distribution rights of $48.2 million and customer relationships of $10.4 million, which are being amortized over a weighted-average period of 2.9 years. Key assumptions included (1) the amount and timing of projected future cash flows, and (2) the discount rate used to determine the present value of these cash flows. The goodwill is not amortizable for income tax purposes. The allocation of purchase consideration was completed in the third quarter of 2019. There were no adjustments to the provisional amounts in the measurement period. Schölly During the third quarter of 2019, the Company acquired certain assets and operations from Schölly Fiberoptic GmbH (“Schölly”), including manufacturing process technology, a non-compete agreement, certain personnel, and net tangible assets on August 31, 2019, which collectively met the definition of a business. The Company believes that the transaction strengthens the Company’s supply chain and manufacturing capacity for imaging products used in the Company’s da Vinci systems. The total purchase consideration of $101.4 million consisted of an initial cash payment of $34.4 million and deferred cash payments totaling approximately $67.0 million, of which $13.6 million was deferred as of December 31, 2020. As of December 31, 2021, all deferred cash payments have been made. The Company recorded $11.5 million of net tangible assets, which included $6.7 million of inventory and $1.4 million of cash, $31.0 million of intangible assets, and $58.9 million of residual goodwill. The balances include the net impact of adjustments to the preliminary allocation of the purchase price within the one year measurement period, which decreased goodwill by $0.8 million during 2020. There was no significant impact to the Consolidated Statements of Income as result of these adjustments. Intangible assets included manufacturing process technology of $28.0 million and non-compete provisions of $3.0 million, which are being amortized over a weighted-average period of 6.6 years. Key assumptions included (1) the amount and timing of projected future cash flows, and (2) the discount rate used to determine the present value of these cash flows. The allocation of purchase consideration is considered preliminary with provisional amounts primarily related to working capital. Goodwill primarily consists of the manufacturing and other synergies of the combined operations and the value of the assembled workforce. The majority of goodwill is not deductible for income tax purposes. In 2019, the Company included the results of the acquired businesses, since their acquisition dates, in its Consolidated Financial Statements, and the revenues and earnings were not material in the year. Pro forma results of operations related to the acquisitions have not been presented, because the operating results of the acquired businesses are not considered material to the Consolidated Financial Statements. Goodwill The following table summarizes the changes in the carrying amount of goodwill (in millions): Amount Balance as of December 31, 2019 $ 307.2 Acquisition activity 29.3 Translation and other 0.2 Balance as of December 31, 2020 336.7 Acquisition activity 8.0 Translation and other (1.1) Balance as of December 31, 2021 $ 343.6 The Company completed its annual goodwill impairment test and determined that no impairment existed. As of December 31, 2021, there has been no impairment of goodwill. Intangible Assets The following table summarizes the components of gross intangible asset, accumulated amortization, and net intangible asset balances as of December 31, 2021, and 2020 (in millions): December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and developed technology $ 219.3 $ (173.2) $ 46.1 $ 198.4 $ (158.7) $ 39.7 Distribution rights and others 26.3 (19.4) 6.9 91.9 (77.4) 14.5 Customer relationships 31.8 (14.3) 17.5 59.0 (35.8) 23.2 Total intangible assets $ 277.4 $ (206.9) $ 70.5 $ 349.3 $ (271.9) $ 77.4 Amortization expense related to intangible assets was $27.4 million, $49.8 million, and $43.0 million for the years ended December 31, 2021, 2020, and 2019, respectively. The estimated future amortization expense related to intangible assets as of December 31, 2021, is as follows (in millions): Fiscal Year Amount 2022 $ 23.6 2023 19.0 2024 15.0 2025 9.6 2026 2.7 2027 and thereafter 0.6 Total $ 70.5 The preceding expected amortization expense is an estimate. Actual amounts of amortization expense may differ from estimated amounts due to additional intangible asset acquisitions, changes in foreign currency exchange rates, impairment of intangible assets, accelerated amortization of intangible assets, and other events. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Commitments As of December 31, 2021, the Company’s commitments include an estimated amount of approximately $1.51 billion relating to the Company’s open purchase orders and contractual obligations that occur in the ordinary course of business, including commitments with contract manufacturers and suppliers for which the Company has not received the goods or services, commitments for capital expenditures and construction-related activities for which the Company has not received the services, and acquisition and licensing of intellectual property. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to cancel, reschedule, and adjust its requirements based on its business needs prior to the delivery of goods or performance of services. Additionally, the Company has committed to make certain future milestone payments to third parties as part of licensing, collaboration, and development arrangements. Payments under these arrangements generally become due and payable only upon the achievement of certain specified developmental, regulatory, and/or commercial milestones. For instances in which the achievement of these milestones is neither probable nor reasonably estimable, such contingencies are not included in the estimated amount. Contingencies From time to time, the Company is involved in a variety of claims, lawsuits, investigations, and proceedings relating to securities laws, product liability, intellectual property, insurance, contract disputes, employment, and other matters. Certain of these lawsuits and claims are described in further detail below. It is not possible to predict what the outcome of these matters will be, and the Company cannot guarantee that any resolution will be reached on commercially reasonable terms, if at all. A liability and related charge to earnings are recorded in the Consolidated Financial Statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each accounting period and is based on all available information, including the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to each case. Nevertheless, it is possible that additional future legal costs (including settlements, judgments, legal fees, and other related defense costs) could have a material adverse effect on the Company’s business, financial position, and future results of operations. During the years ended December 31, 2021, 2020, and 2019, pre-tax litigation charges (benefits) related to securities class action lawsuits and product liability claims were not material. Product Liability Litigation The Company is currently named as a defendant in a number of individual product liability lawsuits filed in various state and federal courts. The plaintiffs generally allege that they or a family member underwent surgical procedures that utilized the da Vinci Surgical System and sustained a variety of personal injuries and, in some cases, death as a result of such surgery. Several of the filed cases have trial dates in the next 12 months. The cases raise a variety of allegations including, to varying degrees, that plaintiffs’ injuries resulted from purported defects in the da Vinci Surgical System and/or failure on the Company’s part to provide adequate training resources to the healthcare professionals who performed plaintiffs’ surgeries. The cases further allege that the Company failed to adequately disclose and/or misrepresented the potential risks and/or benefits of the da Vinci Surgical System. Plaintiffs also assert a variety of causes of action, including, for example, strict liability based on purported design defects, negligence, fraud, breach of express and implied warranties, unjust enrichment, and loss of consortium. Plaintiffs seek recovery for alleged personal injuries and, in many cases, punitive damages. The Company disputes these allegations and is defending against these claims. The Company’s estimate of the anticipated cost of resolving the pending cases is based on negotiations with attorneys for the claimants. The final outcome of the pending lawsuits and claims, and others that might arise, is dependent on many variables that are difficult to predict, and the ultimate cost associated with these product liability lawsuits and claims may be materially different than the amount of the current estimate and accruals and could have a material adverse effect on the Company’s business, financial position, and future results of operations. Although there is a reasonable possibility that a loss in excess of the amount recognized exists, the Company is unable to estimate the possible loss or range of loss in excess of the amount recognized at this time. Patent Litigation On June 30, 2017, Ethicon LLC, Ethicon Endo-Surgery, Inc., and Ethicon US LLC (collectively, “Ethicon”) filed a complaint for patent infringement against the Company in the U.S. District Court for the District of Delaware. The complaint, which was served on the Company on July 12, 2017, alleges that the Company’s EndoWrist Stapler instruments infringe several of Ethicon’s patents. Ethicon asserts infringement of U.S. Patent Nos. 9,585,658; 8,479,969; 9,113,874; 8,998,058; 8,991,677; 9,084,601; and 8,616,431. A claim construction hearing occurred on October 1, 2018, and the court issued a scheduling order on December 28, 2018. On March 20, 2019, the court granted the Company’s Motion to Stay pending an Inter Partes Review to be held at the Patent Trademark and Appeals Board to review patentability of six of the seven patents noted above and vacated the trial date. On August 1, 2019, the court granted the parties’ joint stipulation to modify the stay in light of Ethicon’s U.S. International Trade Commission (“USITC”) complaint against Intuitive involving U.S. Patent Nos. 8,479,969 and 9,113,874, discussed below. There is currently no trial date scheduled for this matter. On August 27, 2018, Ethicon filed a second complaint for patent infringement against the Company in the U.S. District Court for the District of Delaware. The complaint alleges that the Company’s SureForm 60 Staplers infringe five of Ethicon’s patents. Ethicon asserts infringement of U.S. Patent Nos. 9,884,369; 7,490,749; 8,602,288; 8,602,287; and 9,326,770. The Company filed an answer denying all claims. On March 19, 2019, Ethicon filed a Motion for Leave to File a First Amended Complaint, removing allegations related to U.S. Patent No. 9,326,770 and adding allegations related to U.S. Patent Nos. 9,844,379 and 8,479,969. On July 17, 2019, the court entered an order denying the amendment, without prejudice, and granting the parties’ joint stipulation to stay the case in its entirety in light of the USITC investigation involving U.S. Patent Nos. 9,844,369 and 7,490,749, discussed below. There is currently no trial date scheduled for this matter. Based on currently available information, the Company is unable to make a reasonable estimate of loss or range of losses, if any, arising from these matters. On May 30, 2019, Ethicon filed a complaint with the USITC, asserting infringement of U.S. Patent Nos. 9,884,369 (“’369”); 7,490,749 (“’749”); 9,844,379 (“’379”); 9,113,874 (“’874”); and 8,479,969 (“’969”). On June 28, 2019, the USITC voted to institute an investigation (No. 337-TA-1167) with respect to the claims in this complaint. The accused products include the Company’s EndoWrist 30, EndoWrist 45, SureForm 45, and SureForm 60 Staplers, as well as the stapler reload cartridges. In March 2020, Ethicon dismissed its claims concerning the ’749 patent. The evidentiary hearing took place in February 2021. On June 8, 2021, the Chief Administrative Law Judge issued an Initial Determination concluding that (1) the accused products do not infringe the asserted claims in the ’874 or ’969 patents; (2) the asserted claims in the ’874 and ’969 patents are invalid; (3) the accused SureForm staplers and associated reload cartridges infringe two claims of the ’369 patent; (4) the accused SureForm staplers and associated reload cartridges infringe two claims of the ’379 patent; and (5) the Company was estopped from contending that the asserted claims in the ’379 patent are invalid. Ethicon has not challenged the Initial Determination with regard to the findings that absolve Intuitive of any liability regarding the accused EndoWrist staplers and associated reload cartridges. On October 14, 2021, the USITC issued its Opinion in which it made the following rulings: (1) the USITC absolved Intuitive from any liability regarding the ’874, ’969, and ’369 patents; and (2) the USITC found that, while the SureForm staplers and their associated reload cartridges infringe the asserted claims in the ’379 patent, it has suspended the imposition of any remedial order pending an opinion from the Federal Circuit Court of Appeal of whether the Patent and Trademark Office correctly found the asserted claims in this patent to be invalid. The Company and Ethicon have filed Notices of Appeal regarding the USITC Opinion. A lifting of the suspension of any remedial order by the USITC could result in a prohibition on importing the accused SureForm products into the U.S. or necessitating workarounds. Based on currently available information, the Company does not believe that any losses arising from this matter would be material. Commercial Litigation On February 27, 2019, Restore Robotics LLC and Restore Repair LLC (“Restore”) filed a complaint in the Northern District of Florida alleging anti-trust claims against the Company. On May 13, 2019, Restore filed an amended complaint alleging anti-trust claims relating to the da Vinci Surgical System and EndoWrist service, maintenance, and repair processes. On September 16, 2019, the Court partially granted and partially denied the Company’s Motion to Dismiss the amended complaint. On September 30, 2019, the Company filed an answer denying the anti-trust allegations and filed a counterclaim against Restore. The Company filed amended counterclaims after the Court partially granted and partially denied Restore’s Motion to Dismiss the counterclaim. The amended counterclaims allege that Restore violated the Federal Lanham Act, the Federal Computer Fraud and Abuse Act, and Florida’s Deceptive and Unfair Trade Practices Act and that Restore is also liable to the Company for Unfair Competition and Tortious Interference with Contract. On January 7, 2020, the Court denied Restore’s Motion to Dismiss the amended counterclaims. Motions for Summary Judgment have been filed by the Company and Restore. Subject to the rulings on those motions, the Court anticipates a trial date in later summer or early fall 2022. Based on currently available information, the Company is unable to make a reasonable estimate of loss or range of losses, if any, arising from these matters. On September 28, 2020, Rebotix Repair Inc. (“Rebotix”) filed a complaint in the Middle District of Florida alleging anti-trust claims against the Company relating to EndoWrist service, maintenance, and repair processes. The complaint was formally served on the Company on October 6, 2020. On March 8, 2021, the Court partially granted and partially denied the Company’s Motion to Dismiss the complaint. The Company filed an answer denying the anti-trust allegations and filed counterclaims against Rebotix. The counterclaims allege that Rebotix violated the Federal Lanham Act and Florida’s Deceptive and Unfair Trade Practices Act and that Rebotix is also liable to the Company for Tortious Interference with Contract. Motions for Summary Judgment have been filed by the Company and Rebotix. Subject to the rulings on these motions, the Court anticipates a trial date in or around May 2022. Based on currently available information, the Company is unable to make a reasonable estimate of loss or range of losses, if any, arising from this matter. Similar to the claims asserted in the Restore case, on May 10, 2021, Surgical Instrument Service Company, Inc. filed a complaint in the Northern District of California Court alleging anti-trust claims against the Company relating to EndoWrist service, maintenance, and repair processes. The Court denied the Company's Motion to Dismiss, and discovery has commenced. Based on currently available information, the Company is unable to make a reasonable estimate of loss or range of losses, if any, arising from this matter. Three class action complaints were filed against the Company in the Northern District of California Court alleging anti-trust allegations relating to the service and repair of certain instruments manufactured by the Company. A complaint by Larkin |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Stock Repurchase Program Through December 31, 2021, the Company’s Board of Directors (the “Board”) has authorized an aggregate of $7.5 billion of funding for the Company’s common stock repurchase program (the “Repurchase Program”) since its establishment in March 2009. The most recent authorization occurred in January 2019 when the Board increased the authorized amount available under the Repurchase Program to $2.0 billion. As of December 31, 2021, the remaining amount of share repurchases authorized by the Board under the Repurchase Program was approximately $1.6 billion. The following table provides the stock repurchase activities (in millions, except per share amounts): Years Ended December 31, 2021 2020 2019 Shares repurchased — 0.7 1.7 Average price per share $ — $ 183.84 $ 160.45 Value of shares repurchased $ — $ 134.3 $ 269.5 The Company uses the par value method of accounting for its stock repurchases. As a result of share repurchase activities during the years ended December 31, 2021, 2020, and 2019, the Company reduced common stock and additional paid-in capital by an aggregate of zero, $8 million, and $15 million, respectively, and charged zero, $126 million, and $255 million, respectively, to retained earnings. Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), net of tax, are as follows (in millions): Year Ended December 31, 2021 Unrealized Gains (Losses) Unrealized Foreign Employee Benefit Plans Total Beginning balance $ (2.9) $ 29.5 $ 4.7 $ (6.4) $ 24.9 Other comprehensive income (loss) before reclassifications 12.3 (45.5) (12.6) 0.1 (45.7) Reclassified from accumulated other comprehensive income (loss) (4.9) — — 1.5 (3.4) Net current-period other comprehensive income (loss) 7.4 (45.5) (12.6) 1.6 (49.1) Ending balance $ 4.5 $ (16.0) $ (7.9) $ (4.8) $ (24.2) Year Ended December 31, 2020 Unrealized Gains (Losses) Unrealized Foreign Employee Benefit Plans Total Beginning balance $ 0.7 $ 20.4 $ — $ (8.7) $ 12.4 Other comprehensive income (loss) before reclassifications (0.8) 13.8 4.7 1.0 18.7 Reclassified from accumulated other comprehensive income (loss) (2.8) (4.7) — 1.3 (6.2) Net current-period other comprehensive income (loss) (3.6) 9.1 4.7 2.3 12.5 Ending balance $ (2.9) $ 29.5 $ 4.7 $ (6.4) $ 24.9 The income tax impacts were not material for the years ended December 31, 2021, and 2020. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock Plans 2010 Incentive Award Plan. In April 2010, the Company’s stockholders approved the 2010 Incentive Award Plan (“2010 Plan”). Under this plan, the Company issues nonqualified stock options (“NSOs”) and restricted stock units (“RSUs”) to employees and certain consultants. The 2010 Plan generally permits NSOs to be granted at no less than the fair market value of the common stock on the date of grant, with terms of 10 years from the date of grant. The 2010 Plan expires in 2031. In April 2021, the Company’s shareholders approved an amended and restated 2010 Plan to provide for an increase in the number of shares of common stock reserved for issuance thereunder from 97,350,000 to 103,350,000. As of December 31, 2021, approximately 25.5 million shares were reserved for future issuance under the 2010 Plan. A maximum of 11.1 million of these shares can be awarded as RSUs. 2009 Employment Commencement Incentive Plan. In October 2009, the Board adopted the 2009 Employment Commencement Incentive Plan (“New Hire Plan”). The New Hire Plan provides for the shares to be used exclusively for the grant of RSUs and NSOs to new employees (“New Hire Options”), who were not previously employees or non-employee directors of the Company. The Compensation Committee approves all equity awards under the New Hire Plan, which are granted to newly-hired employees once a month on the fifth business day of each month after their hire. Options are granted at an exercise price not less than the fair market value of the stock on the date of grant and have a term not to exceed 10 years. In April 2015, the Board of Directors amended and restated the New Hire Plan to provide for an increase in the number of shares of common stock authorized for issuance pursuant to awards granted under the New Hire Plan from 10,395,000 to 13,095,000. The New Hire Plan expired in October 2019 and, therefore, there are no shares reserved for future grants under the New Hire Plan. However, awards granted prior to the plan’s expiration continue to remain outstanding until their original expiration date. Employee Option Vesting. Prior to 2020, the Company made annual option grants on February 15 (or the next business day if the date is not a business day) and on August 15 (or the next business day if the date is not a business day). Beginning in 2020, the Company changed the timing of its annual equity award grants to the last business day of February and on the same date in August or, if that date is not a business day, the next business day. The February grants vest 6/48 upon completion of 6 months of service and 1/48 per month thereafter. The August stock option grants vest 7/48 at the end of one month and 1/48 per month thereafter through a 3.5-year vesting period. New Hire Options generally vest 12/48 upon completion of one year of service and 1/48 per month thereafter. Option vesting terms are determined by the Board and, in the future, may vary from past practices. 2000 Non-Employee Directors’ Stock Option Plan. In March 2000, the Board of Directors adopted the 2000 Non-Employee Directors’ Stock Option Plan (the “Directors’ Plan”). In October 2009, the automatic evergreen increase provisions were eliminated so that no further automatic increases will be made to the number of shares reserved for issuance under the Directors’ Plan. In addition, the common stock authorized for issuance under the Directors’ Plan was reduced to 1,350,000. Options are granted at an exercise price not less than the fair market value of the stock on the date of grant and have a term not to exceed 10 years. Prior to 2016, initial stock option grants to new non-employee directors vested over a three 2000 Employee Stock Purchase Plan. In March 2000, the Board adopted the 2000 Employee Stock Purchase Plan (the “ESPP”). Employees are generally eligible to participate in the ESPP if they are customarily employed by the Company for more than 20 hours per week and more than 5 months in a calendar year and are not 5% stockholders of the Company. Under the ESPP, eligible employees may select a rate of payroll deduction up to 15% of their eligible compensation subject to certain maximum purchase limitations. The duration for each offering period is 24 months and is divided into four purchase periods of approximately six months in length. Offerings are concurrent. The purchase price of the shares under the offering is the lesser of 85% of the fair market value of the shares on the offering date or 85% of the fair market value of the shares on the purchase date. A two The Com pany issued 0.5 million , 0.5 million, and 0.6 million shares und er the ESPP, representing a pproximately $75.9 million , $71.2 million , and $56.4 million in employee contributions for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021, there were approximately 2.8 million share s reserved for future issuance under the ESPP. Restricted Stock Units. Equity awards granted to employees and non-employee directors include a mix of stock options and RSUs. The RSUs granted to employees vest in one-fourth increments annually over a four Stock Option Information Option activity during 2021 under all the stock plans was as follows (in millions, except per share amounts): Stock Options Outstanding Number Weighted-Average Balance as of December 31, 2020 13.4 $ 101.69 Options granted 1.1 $ 294.53 Options exercised (2.7) $ 74.39 Options forfeited/expired (0.1) $ 198.34 Balance as of December 31, 2021 11.7 $ 125.07 The aggregate intrinsic value of stock options exercised under the Company’s stock plans determined as of the date of option exercise was $613 million, $598 million, and $512 million during the years ended December 31, 2021, 2020, and 2019, respectively. Cash received from option exercises and employee stock purchase plans for the years ended December 31, 2021, 2020, and 2019, was $276 million, $309 million, and $273 million, respectively. The income tax benefit from stock options exercised was $138 million for the year ended December 31, 2021. The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2021 (number of shares and aggregate intrinsic value in millions): Options Outstanding Options Exercisable Range of Number Weighted-Average Weighted-Average Aggregate Number Weighted-Average Weighted-Average Aggregate $29.91-$49.34 1.4 1.9 $ 45.18 1.4 $ 45.18 $51.02-$57.11 1.4 2.5 $ 54.39 1.4 $ 54.39 $57.48-$59.46 1.4 2.9 $ 58.78 1.4 $ 58.78 $59.58-$77.00 1.3 2.8 $ 69.07 1.3 $ 69.07 $77.04-$139.52 1.6 5.6 $ 108.72 1.6 $ 108.24 $143.49-$174.26 1.4 7.1 $ 168.88 1.1 $ 169.46 $175.53-$182.83 1.3 7.6 $ 179.91 0.7 $ 180.38 $182.90-$245.60 1.3 8.7 $ 234.88 0.4 $ 230.62 $249.83-$341.16 0.1 9.1 $ 270.94 — $ 251.85 $347.42-$347.42 0.5 9.6 $ 347.42 0.1 $ 347.42 Total 11.7 5.1 $ 125.07 $ 2,737 9.4 4.3 $ 99.52 $ 2,453 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $359.30 as of December 31, 2021, which would have been received by the option holders had all in-the-money option holders exercised their options as of that date. As of December 31, 2021, a total of 11.5 million shares of stock options vested and expected to vest had a weighted-average remaining contractual life of 5.0 years, an aggregate intrinsic value of $2.72 billion, and a weighted-average exercise price of $122.97. Restricted Stock Units Information RSU activity for the year ended December 31, 2021, was as follows (in millions, except per share amounts): Shares Weighted-Average Unvested balance as of December 31, 2020 5.3 $ 163.30 Granted 1.9 $ 256.52 Vested (2.1) $ 145.60 Forfeited (0.3) $ 193.61 Unvested balance as of December 31, 2021 4.8 $ 207.37 As of December 31, 2021, 4.3 million shares of RSUs were expected to vest with an aggregate intrinsic value of $1.56 billion. The aggregate vesting date fair value of RSUs vested was $578 million, $478 million , and $433 million during the years ended December 31, 2021, 2020, and 2019, respectively. Share-Based Compensation Expense The following table summarizes share-based compensation expense (in millions): Years Ended December 31, 2021 2020 2019 Cost of sales—products $ 68.9 $ 58.9 $ 46.6 Cost of sales—services 22.2 24.0 20.4 Total cost of sales 91.1 82.9 67.0 Selling, general and administrative 231.6 202.2 169.5 Research and development 134.1 113.6 101.4 Share-based compensation expense before income taxes 456.8 398.7 337.9 Income tax effect 93.7 81.4 70.2 Share-based compensation expense after income taxes $ 363.1 $ 317.3 $ 267.7 The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s share-based compensation plans and rights to acquire stock granted under the Company’s employee stock purchase plan. The weighted-average estimated fair values of stock options, the rights to acquire stock under the ESPP, and RSUs, as well as the weighted-average assumptions used in calculating the fair values of stock options and rights to acquire stock under the ESPP that were granted during the years ended December 31, 2021, 2020, and 2019, were as follows: Years Ended December 31, STOCK OPTION PLANS 2021 2020 2019 Risk-free interest rate 0.8% 0.6% 2.0% Expected term (years) 4.1 4.1 4.1 Volatility 32% 32% 30% Fair value at grant date $78.23 $54.34 $47.51 EMPLOYEE STOCK PURCHASE PLAN Risk-free interest rate 0.1% 0.9% 2.1% Expected term (years) 1.2 1.2 1.2 Volatility 29% 30% 29% Fair value at grant date $89.98 $57.29 $49.66 RESTRICTED STOCK UNITS Fair value at grant date $256.52 $181.89 $180.45 As share-based compensation expense recognized in the Consolidated Statements of Income during the years ended December 31, 2021, 2020, and 2019, is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. As of December 31, 2021, there was $122 million, $616 million, and $38 million of total unrecognized compensation expense related to unvested stock options, restricted stock units, and employee stock purchases, respectively. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 2.3 years for unvested stock options, 2.2 years for unvested restricted stock units, and 1.5 years for rights granted to acquire common stock under the ESPP. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income before provision for income taxes for the years ended December 31, 2021, 2020, and 2019, consisted of the following (in millions): Years Ended December 31, 2021 2020 2019 U.S. $ 1,298.7 $ 926.8 $ 1,053.7 Foreign 591.6 280.2 448.5 Total income before provision for income taxes $ 1,890.3 $ 1,207.0 $ 1,502.2 The provision for income taxes for the years ended December 31, 2021, 2020, and 2019, consisted of the following (in millions): Years Ended December 31, 2021 2020 2019 Current Federal $ 158.8 $ 34.2 $ 82.0 State 17.3 21.5 26.5 Foreign 50.1 26.9 18.0 226.2 82.6 126.5 Deferred Federal (21.4) 23.8 8.5 State 0.5 1.6 3.2 Foreign (43.1) 32.2 (17.8) (64.0) 57.6 (6.1) Total income tax expense $ 162.2 $ 140.2 $ 120.4 Income tax expense differs from amounts computed by applying the statutory federal income rate of 21% for the years ended December 31, 2021, 2020, and 2019, as a result of the following (in millions): Years Ended December 31, 2021 2020 2019 Federal tax at statutory rate $ 397.0 $ 253.5 $ 315.5 Increase (reduction) in tax resulting from: State taxes, net of federal benefits 33.1 23.1 29.7 Foreign rate differential (54.3) (19.3) (56.2) U.S. tax on foreign earnings 40.1 29.3 55.0 Research and development credit (30.7) (37.1) (32.7) Share-based compensation not benefited 17.8 14.3 13.5 Unrecognized tax benefit related to share-based compensation 13.6 39.3 — Reversal of unrecognized tax benefits (3.0) (4.0) (8.4) Excess tax benefits related to share-based compensation (185.8) (166.2) (146.5) Deferred tax re-measurement (66.4) — (51.3) Other 0.8 7.3 1.8 Total income tax expense $ 162.2 $ 140.2 $ 120.4 Deferred income taxes reflect tax carry forwards and the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in millions): December 31, 2021 2020 Deferred tax assets: Net operating losses $ 9.7 $ 27.7 Share-based compensation expense 110.9 101.1 Lease liabilities 15.2 12.0 Expenses deducted in later years for tax purposes 38.4 29.3 Intangible assets 373.9 321.8 Research and other credits 98.5 76.3 Other 5.3 — Gross deferred tax assets 651.9 568.2 Valuation allowance (104.6) (81.4) Deferred tax assets 547.3 486.8 Deferred tax liabilities: Property, plant, and equipment (79.4) (91.1) Right-of-use assets (12.3) (8.4) Intangible assets (9.7) (10.1) Other (5.1) (13.2) Deferred tax liabilities (106.5) (122.8) Net deferred tax assets $ 440.8 $ 364.0 As of December 31, 2021, and 2020, the Company had valuation allowances of $104.6 million and $81.4 million, respectively, primarily related to California research and development credit carry forwards, for which the Company does not believe a tax benefit is more likely than not to be realized. As of December 31, 2021, the Company had US and foreign federal net operating loss carryforwards of $23.9 million and foreign local net operating loss carryforwards of $207.3 million, which will begin to expire in 2027, if not utilized. Utilization of these net operating loss carryforwards may be subject to certain limitations. The Company does not expect the limitations to result in any permanent loss of these tax benefits. The Company intends to repatriate earnings from its Swiss subsidiary and joint venture in Hong Kong, as needed, and the U.S. and foreign tax implications of such repatriations are not expected to be significant. The Company will continue to indefinitely reinvest earnings from the rest of its foreign subsidiaries, which are not significant. The Company’s 2021 income tax expense included a one-time benefit of $66.4 million from re-measurement of its Swiss deferred tax assets resulting from the extension of the economic useful life of certain intangible assets. The Company’s 2019 income tax expense included a one-time benefit of $51.3 million associated with re-measurement of its Swiss deferred tax assets due to a Swiss statutory tax rate increase enacted as part of Swiss tax reform in August 2019. A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for the years ended December 31, 2021, 2020, and 2019, are as follows (in millions): Years Ended December 31, 2021 2020 2019 Beginning balance $ 176.3 $ 96.7 $ 78.8 Increases related to tax positions taken during the current year 40.6 40.1 26.5 Increases related to tax positions taken during a prior year 11.2 46.1 1.2 Decreases related to tax positions taken during a prior year (1.3) — — Decreases related to settlements with tax authorities (0.2) (0.5) (3.8) Decreases related to expiration of statute of limitations (4.1) (6.1) (6.0) Ending balance $ 222.5 $ 176.3 $ 96.7 As of December 31, 2021, 2020, and 2019, gross interest related to unrecognized tax benefits accrued was $14.9 million, $11.0 million, and $2.9 million, respectively. The Company’s net unrecognized tax benefits and related interest are presented in other long-term liabilities and long term deferred tax assets on the Consolidated Balance Sheets. Total gross unrecognized tax benefits as of December 31, 2021, were $222.5 million, which, if recognized, would result in a reduction of the Company’s effective tax rate. In July 2015, a U.S. Tax Court opinion (the “2015 Opinion”) was issued involving an independent third party related to charging foreign subsidiaries for share-based compensation. Based on the findings of the U.S. Tax Court, direct share-based compensation had been excluded from the Company’s intercompany charges starting in 2015. In June 2019, the Ninth Circuit Court of Appeals (the “Ninth Circuit”) reversed the 2015 Opinion (the “Ninth Circuit Opinion”). Subsequently, a re-hearing of the case was requested, but was denied in November 2019. In February 2020, a petition was filed to appeal the Ninth Circuit Opinion to the U.S. Supreme Court. The petition was denied by the U.S. Supreme Court on June 22, 2020, which makes the Ninth Circuit Opinion binding precedent in the Ninth Circuit. As a result, the Company recorded an increase in the income tax provision of $39.3 million during the year ended December 31, 2020. An additional charge of $13.6 million related to this matter was recorded to income tax expense in 2021, primarily as a result of additional IRS guidance issued in July 2021. The Company will continue to monitor future IRS actions or other developments regarding this matter and will assess the impact of any such developments to its income tax provision in the quarter that they occur. The Company is treating share-based compensation expense in accordance with the Ninth Circuit Opinion for 2020 and future periods. The Company files federal, state, and foreign income tax returns in many U.S. and OUS jurisdictions. Years before 2016 are closed for the significant jurisdictions. Certain of the Company’s unrecognized tax benefits could change due to activities of various tax authorities, including potential assessment of additional tax, possible settlement of audits, or through normal expiration of various statutes of limitations, which could affect the Company’s effective tax rate in the period in which they change. Due to the uncertainty related to the timing and potential outcome of audits, the Company cannot estimate the range of reasonably possible change in unrecognized tax benefits that may occur in the next 12 months. The Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. The outcome of these audits cannot be predicted with certainty. The Company’s management regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the Company’s provision for income taxes. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE The following table presents the computation of basic and diluted net income per share attributable to Intuitive Surgical, Inc. (in millions, except per share amounts): Years Ended December 31, 2021 2020 2019 Numerator: Net income attributable to Intuitive Surgical, Inc. $ 1,704.6 $ 1,060.6 $ 1,379.3 Denominator: Weighted-average shares outstanding used in basic calculation 356.1 351.1 346.2 Add: dilutive effect of potential common shares 9.7 9.9 12.2 Weighted-average shares outstanding used in diluted calculation 365.8 361.0 358.4 Net income per share attributable to Intuitive Surgical, Inc.: Basic $ 4.79 $ 3.02 $ 3.98 Diluted $ 4.66 $ 2.94 $ 3.85 Share-based compensation awards of approximately 0.8 million, 1.9 million, and 2.0 million shares for the years ended December 31, 2021, 2020, and 2019, respectively, were outstanding but were not included in the computation of diluted net income per share attributable to Intuitive Surgical, Inc. common stockholders, because the effect of including such shares would have been anti-dilutive in the periods presented. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANSThe Company sponsors various retirement plans for its eligible U.S. and non-U.S. employees. For employees in the U.S., the Company maintains the Intuitive Surgical, Inc. 401(k) Plan (the “Plan”). As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides tax-deferred salary contributions for eligible U.S. employees. The Plan allows employees to contribute up to 100% of their annual compensation to the Plan on a pre-tax and after-tax basis. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. The Company matches 200% of employee contributions up to $1,500 per calendar year per person. All matching employer contributions vest immediately. |
Selected Quarterly Data
Selected Quarterly Data | 12 Months Ended |
Dec. 31, 2021 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Data | Three Months Ended December 31, September 30, June 30, March 31, Revenue 1,550.7 $ 1,403.3 $ 1,464.0 $ 1,292.1 Gross profit 1,060.8 $ 971.4 $ 1,023.7 $ 902.6 Net income attributable to Intuitive Surgical, Inc. (1)(2) 380.6 $ 380.5 $ 517.2 $ 426.3 Net income attributable to Intuitive Surgical, Inc. per share: Basic $ 1.07 $ 1.07 $ 1.45 $ 1.20 Diluted $ 1.03 $ 1.04 $ 1.42 $ 1.17 (1) Includes discrete tax benefits as follows: Excess tax benefits related to share-based compensation arrangements $ 26.9 $ 41.9 $ 43.6 $ 73.4 One-time tax benefit related to Swiss intangible assets deferred tax asset remeasurement $ — $ 66.4 $ — $ — Discrete tax expense arising from the conclusion of a tax matter $ — $ (11.1) $ — $ — (2) Includes charitable foundation contribution expense $ (30.0) $ — $ — $ — Three Months Ended December 31, September 30, June 30, March 31, Revenue $ 1,329.1 $ 1,077.7 $ 852.1 $ 1,099.5 Gross profit $ 895.8 $ 724.3 $ 502.9 $ 738.2 Net income attributable to Intuitive Surgical, Inc. (1)(2)(3) $ 365.2 $ 313.9 $ 68.0 $ 313.5 Net income attributable to Intuitive Surgical, Inc. per share: Basic $ 3.11 $ 2.68 $ 0.58 $ 2.69 Diluted $ 3.02 $ 2.60 $ 0.57 $ 2.62 (1) Includes discrete tax benefits as follows: Excess tax benefits related to share-based compensation arrangements $ 21.3 $ 47.9 $ 31.6 $ 65.4 Discrete tax expense arising from the conclusion of a tax matter $ — $ — $ (36.8) $ — (2) Includes acquisition-related (charges) benefits $ (2.9) $ (4.6) $ (4.4) $ 1.4 (3) Includes charitable foundation contribution expense $ (25.0) $ — $ — $ — |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | Balance at Additions Deductions (1) Balance at Sales returns and allowances Year ended December 31, 2021 $ 15.5 $ 41.7 $ (44.1) $ 13.1 Year ended December 31, 2020 $ 11.7 $ 39.7 $ (35.9) $ 15.5 Year ended December 31, 2019 $ 11.2 $ 43.2 $ (42.7) $ 11.7 (1) Primarily represents products returned. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Consolidation and Joint Ventures | The Consolidated Financial Statements include the results and balances of the Company’s majority-owned joint venture (“Joint Venture”) with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (“Fosun Pharma”). Chindex Medical Limited (“Chindex”), a subsidiary of Fosun Pharma, has been its distribution partner for da Vinci Surgical Systems in China. The Company holds a controlling financial interest in the Joint Venture, and the noncontrolling interest is reflected as a separate component of the consolidated stockholders’ equity. The noncontrolling interest’s share of the earnings in the Joint Venture is presented separately in the Consolidated Statements of Income for the years ended December 31, 2021, 2020, and 2019. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. The accounting estimates that require management’s most significant, complex, and subjective judgments include the valuation and recognition of investments, revenue recognition and the valuation of revenue and allowances for sales returns and doubtful accounts, the valuation of inventory, the valuation of and assessment of recoverability of intangible assets and their estimated useful lives, the valuation and recognition of share-based compensation, the recognition and measurement of current and deferred income tax assets, along with the assessment of recoverability, and liabilities, and the estimates for legal contingencies. Actual results could differ materially from these estimates. |
Concentrations of Credit Risk and Other Risks and Uncertainties | Concentrations of Credit Risk and Other Risks and Uncertainties The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. Marketable securities and derivative instruments are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities and derivative instruments consist of various major corporations, financial institutions, municipalities, and government agencies of high credit standing. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of 90 days or less to be cash equivalents. Restricted Cash As of December 31, 2021, the Company had $17.9 million of restricted cash associated with its insurance programs. As of December 31, 2020, the Company had $18.0 million of restricted cash associated with its insurance programs. Restricted cash was included in prepaids and other current assets and intangible and other assets, net on the Consolidated Balance Sheets. |
Investments | Investments Available-for-sale investments. The Company’s investments may consist of U.S. treasury and U.S. government agency securities, taxable and tax-exempt municipal notes, corporate notes and bonds, commercial paper, non-U.S. government agency securities, and money market funds. The Company has designated all investments as available-for-sale and, therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest and other income, net in the Consolidated Statements of Income. Investments with remaining maturities at date of purchase greater than 90 days and remaining maturities as of the reporting period less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. All of the Company’s investments are subject to a periodic impairment review. Available-for-sale investments in an unrealized loss position are written down to fair value through a charge to other income, net, if the Company intends to sell the security or it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis. The Company evaluates the remaining securities to determine what amount of the excess, if any, is caused by expected credit losses. Factors considered in determining whether a credit-related loss exists include the financial condition and near-term prospects of the investee, the extent of the loss related to credit of the issuer, and the expected cash flows from the security. No significant charges were recorded during the years ended December 31, 2021, 2020, and 2019. Equity investments. The Company holds equity investments with readily determinable fair values and equity investments without readily determinable fair values. The Company generally recognizes equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. |
Fair Value Measurements | Fair Value Measurements The Company measures the fair value of money market funds, certain U.S. treasury securities, and equity investments with readily determinable value based on quoted prices in active markets for identical assets as Level 1 securities. Marketable securities measured at fair value using Level 2 inputs are primarily comprised of commercial paper, corporate notes and bonds, U.S. and non-U.S. government agencies, municipal notes, and equity investments without readily determinable value. The Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the Level 2 classification of these securities within the fair value hierarchy. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value on a first-in, first-out basis. Inventory costs include direct materials, direct labor, and normal manufacturing overhead. The cost basis of the Company’s inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. Additionally, the cost basis of the Company’s inventory does not include any unallocated fixed overhead costs associated with abnormally low utilization of its factories. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, generally, as follows: Useful Lives Building Up to 30 years Building improvements Up to 15 years Leasehold improvements Lesser of useful life or term of lease Equipment and furniture 5 years Operating lease assets Greater of lease term or 1 to 5 years Computer and office equipment 3 years Enterprise-wide software 5 years Purchased software Lesser of 3 years or life of license |
Capitalized Software Costs for Internal Use | Capitalized Software Costs for Internal Use The Company capitalizes direct costs associated with developing or obtaining internal use software, including enterprise-wide business software, that are incurred during the application development stage. These capitalized costs are recorded as capitalized software within property, plant, and equipment. Costs related to preliminary project activities and post-implementation activities are expensed as incurred. Once the software is ready for its intended use, amounts capitalized are amortized over an estimated useful life of up to 5 years, generally on a straight-line basis. Implementation Costs in a Cloud Computing Arrangement The Company capitalizes qualified implementation costs incurred in a hosting arrangement that is a service contract for which it is the customer in accordance with the requirements for capitalizing costs incurred to develop internal-use software. These capitalized implementation costs are recorded within intangible and other assets, net, and are generally amortized over the fixed, non-cancellable term of the associated hosting arrangement on a straight-line basis. |
Business Combinations | Business Combinations The Company accounts for business acquisitions in accordance with ASC 805, Business Combinations . This standard requires the acquiring entity in a business combination to recognize the assets acquired, liabilities assumed, and any noncontrolling interest in the acquiree using acquisition-date fair values. Certain provisions of this standard prescribe, among other things, the determination of acquisition-date fair value of consideration paid in a business combination, including contingent consideration. The excess of the acquisition-date fair value of consideration paid over the fair values of the identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. The Company includes the results of operations of the businesses that are acquired as of the acquisition date. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually during the fourth quarter, or if circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net identifiable assets and liabilities. The Company continues to operate in one segment, which is considered to be the sole reporting unit and, therefore, goodwill was tested for impairment at the enterprise level. Intangible assets are carried at cost, net of accumulated amortization. The Company does not have intangible assets with indefinite useful lives other than goodwill. Amortization is recorded on a straight-line basis over the intangible assets’ useful lives, which range from approximately 2 to 9 years. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company evaluates long-lived assets, which include finite-lived intangible and tangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. Recoverability is measured by comparing the net book value to the future undiscounted cash flows attributable to such assets. The Company recognizes an impairment charge equal to the amount by which the net book value exceeds its fair value. No material impairment losses were incurred in the periods presented. |
Revenue | Revenue Recognition The Company’s revenue consists of product revenue, resulting from the sale of systems, system components, and instruments and accessories, and service revenue. The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and its customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on the consideration specified in the contract with each customer, net of any sales incentives and taxes collected from customers that are remitted to government authorities. The Company’s system sale arrangements generally contain multiple products and services. For these bundled sale arrangements, the Company accounts for individual products and services as separate performance obligations if they are a distinct product or service that is separately identifiable from other items in bundled packages and if a customer can benefit from the product or service on its own or with other resources that are readily available to the customer. The Company’s system sale arrangements include a combination of the following performance obligations: system(s); system components; system accessories; instruments; accessories; and system service. The Company’s system sale arrangements generally include a five-year period of service. The first year of service is generally free and included in the system sale arrangement, and the remaining four years are generally included at a stated service price. The Company considers the service terms in the arrangements that are legally enforceable to be performance obligations. Other than service, the Company generally satisfies all of the performance obligations at a point in time. System components, system accessories, instruments, accessories, and service are also sold on a stand-alone basis. The Company recognizes revenue as the performance obligations are satisfied by transferring control of the product or service to a customer. The Company generally recognizes revenue for the performance obligations in the following manner: System sales. For systems (including system components and system accessories) sold directly to end customers, revenue is recognized when the Company transfers control to the customer, which is generally at the point when acceptance occurs that indicates customer acknowledgment of delivery or installation, depending on the terms of the arrangement. For systems sold through distributors, revenue is recognized generally at the time of shipment. The Company’s system arrangements generally do not provide a right of return. The systems are generally covered by a one Instruments and accessories. Revenue from sales of instruments and accessories is recognized when control is transferred to the customers, which generally occurs at the time of shipment but also could occur at the time of delivery, depending on the customer arrangement. The Company generally allows its customers in the normal course of business to return unused products for a limited period of time subsequent to the initial purchase and records an allowance against revenue for estimated returns. Service. Service revenue is recognized over the term of the service period, as the customer benefits from the services throughout the service period. Revenue related to services performed on a time-and-materials basis is recognized when performed. The Company offers its customers the opportunity to trade in their older systems for a credit towards the purchase of a newer generation system. The Company generally does not provide specified price trade-in rights or upgrade rights at the time of system purchase. Such trade-in or upgrade transactions are separately negotiated based on the circumstances at the time of the trade-in or upgrade, based on the then-fair value of the system, and are generally not based on any pre-existing rights granted by the Company. Accordingly, such trade-ins and upgrades are not considered separate performance obligations in the arrangement for a system sale. Traded-in systems can be reconditioned and resold. The Company accounts for the fair value of the traded-in system in the total consideration in the arrangement by including the net realizable value of the traded-in system less a normal profit margin. The value of the traded-in system is determined as the amount, after reconditioning costs are added, that will allow a normal profit margin on the sale of the reconditioned unit to be generated. When there is no market for the traded-in units, no value is assigned. The assigned value of the traded-in units is reported as a component of inventory until resold or otherwise disposed. In addition, customers may also have the opportunity to upgrade their systems at a price determined at the time of the upgrade, for example, by adding a second surgeon console for use with the da Vinci Surgical System. Such upgrades are performed by completing component level upgrades at the customer’s site. Upgrade revenue is recognized when the component level upgrades are complete and all revenue recognition criteria are met. For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the products or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the products and services, geographies, and type of customer. The Company regularly reviews standalone selling prices and updates these estimates, as necessary. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company has determined that certain sales incentives provided to the Company’s sales team are required to be capitalized when the Company expects to generate future economic benefits from the related revenue-generating contracts subsequent to the initial system sales transaction. When determining the economic life of the contract acquisition assets recognized, the Company considers historical service renewal rates, expectations of future customer renewals of service contracts, and other factors that could impact the economic benefits that the Company expects to generate from the relationship with its customers. The costs capitalized as contract acquisition costs included in intangible and other assets, net in the Consolidated Balance Sheets were $71.8 million and $53.1 million as of December 31, 2021, and 2020, respectively. The Company did not incur any impairment losses during the periods presented. |
Lessor, Leases | Intuitive System Leasing The Company enters into lease arrangements with certain qualified customers. Leases have terms that generally range from 24 to 84 months and are usually collateralized by a security interest in the underlying assets. The Company also leases systems to certain qualified customers under usage-based arrangements that have terms up to 84 months. For these usage-based lease arrangements, the lease fee is generally billed monthly in arrears based on a contractual per-use fee, and usage is generally defined as the number of procedures performed with the system. Revenue related to multiple-element arrangements are allocated to lease and non-lease elements based on their relative standalone selling prices as prescribed by the Company’s revenue recognition policy. Lease elements generally include a system or system component, while non-lease elements generally include service. For some lease arrangements, customers are provided with the right to purchase the leased system at some point during and/or at the end of the lease term. Except for certain usage-based lease arrangements, lease arrangements generally do not provide rights for the customers to exit or terminate the lease without incurring a penalty. Certain lease arrangements may also include upgrade rights that allow customers to upgrade the leased system to newer technology at some point during the lease term. Generally, these upgrade rights do not specify the terms, including the price or structure of the future upgrade transactions, as those terms are negotiated based on the circumstances at the time of the upgrade, including the then-fair value of the system as well as other factors. In determining whether a transaction should be classified as a sales-type or operating lease, the Company considers the following terms at lease commencement: (1) whether title of the system transfers automatically or for a nominal fee by the end of the lease term; (2) whether the present value of the minimum lease payments equals or exceeds substantially all of the fair value of the leased system; (3) whether the lease term is for the major part of the remaining economic life of the leased system; (4) whether the lease grants the lessee an option to purchase the leased system that the lessee is reasonably certain to exercise; and (5) whether the underlying system is of such a specialized nature that it is expected to have no alternative use to the Company at the end of the lease term. The Company generally recognizes revenue from sales-type lease arrangements at the time the system is accepted by the customer, assuming all other revenue recognition criteria have been met. Revenue related to lease elements from sales-type leases is presented as product revenue. Revenue related to lease elements from operating lease arrangements is generally recognized on a straight-line basis over the lease term and is presented as product revenue. Revenue related to lease elements from usage-based arrangements is recognized as the customers utilize the systems and is presented as product revenue. |
Lessee, Leases | Other Leasing Arrangements The Company determines if an arrangement contains a lease at inception. For arrangements where the Company is the lessee, operating leases are included in intangible and other assets, net, other accrued liabilities, and other long-term liabilities on the Consolidated Balance Sheet as of December 31, 2021. The Company currently does not have any finance leases. Operating lease right-of-use (“ROU”) assets and operating leases liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the lease liabilities, as the Company does not have insight to the inputs necessary to calculate the implicit rate of the leases. Lease terms may include options to extend or terminate when the Company is reasonably certain the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company also has lease arrangements with lease and non-lease components. The Company elected the practical expedient not to separate non-lease components from lease components for the Company’s real estate and automobile leases. Additionally, the Company applied a portfolio approach to effectively account for the operating lease ROU assets and lease |
Credit Loss, Financial Instrument | Credit Losses Trade accounts receivable. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. For the years ended December 31, 2021, and 2020, bad debt expense was not material. Net investment in sales-type leases. The Company enters into sales-type leases with certain qualified customers to purchase its systems. Sales-type leases have terms that generally range from 24 to 84 months and are usually collateralized by a security interest in the underlying assets. The allowance for loan loss is based on the Company’s assessment of the current expected lifetime loss on lease receivables. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the lease receivable balances, and current economic conditions that may affect a customer’s ability to pay. Lease receivables are considered past due 90 days after invoice. The Company manages the credit risk of the net investment in sales-type leases using a number of factors, including, but not limited to, the following: size of operations; profitability, liquidity, and debt ratios; payment history; and past due amounts. The Company also uses credit scores obtained from external providers as a key indicator for the purposes of determining credit quality. The following table summarizes the amortized cost basis by year of origination and by credit quality for the net investment in sales-type leases as of December 31, 2021 (in millions): 2021 2020 2019 2018 2017 Prior Net Investment Credit Rating: High $ 101.7 $ 51.0 $ 18.8 $ 7.0 $ 1.7 $ — $ 180.2 Moderate 109.3 62.6 18.8 7.0 2.8 0.6 201.1 Low 8.1 1.6 1.3 0.1 — 0.2 11.3 Total $ 219.1 $ 115.2 $ 38.9 $ 14.1 $ 4.5 $ 0.8 $ 392.6 For the year ended December 31, 2021, and 2020, credit losses related to the net investment in sales-type leases were not material. The Company’s exposure to credit losses may increase if its customers are adversely affected by changes in healthcare laws, procedure coverage, and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, disruption associated with the current COVID-19 pandemic, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of trade and lease receivables as hospital cash flows are impacted by their response to the COVID-19 pandemic. Available-for-sale debt securities. The Company’s investment portfolio at any point in time contains investments in U.S. treasury and U.S. government agency securities, taxable and tax-exempt municipal notes, corporate notes and bonds, commercial paper, non-U.S. government agency securities, cash deposits, and money market funds. The Company segments its portfolio based on the underlying risk profiles of the securities and have a zero loss expectation for U.S. treasury and U.S. government agency securities. The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. For the years ended December 31, 2021 and 2020, credit losses related to available-for-sale debt securities were not material. |
Allowance for Sales Returns and Doubtful Accounts | Allowance for Sales Returns The allowance for sales returns is based on the Company’s estimates of potential future returns of certain products related to current period product revenue. The Company analyzes historical returns, current economic trends, and changes in customer demand and acceptance of the Company’s products. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based employee compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period. The Company estimates expected forfeitures at the time of grant and revises the estimate, if necessary, in subsequent periods if actual forfeitures differ from those estimated. The Black-Scholes-Merton option-pricing model is used to estimate the fair value of stock options granted and utilizes the following inputs: (1) closing quoted price of our common stock on the date of grant; (2) expected term; (3) expected volatility; and (4) risk-free interest rate. Expected Term: The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The Company determines expected term based on historical exercise patterns and its expectation of the time that it will take for employees to exercise options still outstanding. Expected Volatility: The Company uses market-based implied volatility for purposes of valuing stock options granted. Market-based implied volatility is derived based on actively traded options with expirations greater than one year on the Company’s common stock. The extent to which the Company relies on market-based volatility when valuing options depends, among other things, on the availability of traded options on the Company’s stock and the term of such options. Due to sufficient volume of the traded options, the Company used 100% market-based implied volatility to value options granted, which the Company believes is more representative of future stock price trends than historical volatility. Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for the expected term of the stock option. The fair value of restricted stock units is determined based on the closing quoted price of the Company’s common stock on the date of the grant. See “Note 10. Share-Based Compensation,” for a detailed discussion of the Company’s stock plans and share-based compensation expense. |
Computation of Net Income per Share | Computation of Net Income per Share Basic net income per share attributable to Intuitive Surgical, Inc. is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share attributable to Intuitive Surgical, Inc. is computed using the weighted-average number of the Company’s shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options, restricted stock units, and shares to be purchased by employees under the Company’s employee stock purchase plan. U.S. GAAP requires that employee equity share options, non-vested shares, and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of equity awards, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that the Company has not yet recognized are assumed to be used to repurchase shares. |
Research and Development Expenses | Research and Development Expenses Research and development costs are expensed as incurred and include amortization of intangible assets, costs associated with co-development research and development licensing arrangements, costs of prototypes, salaries, benefits and other headcount-related costs, contract and other outside service fees, and facilities and overhead costs. |
Foreign Currency and Other Hedging Instruments | Foreign Currency and Other Hedging Instruments For subsidiaries whose local currency is their functional currency, their assets and liabilities are translated into U.S. dollars at exchange rates at the balance sheet date, and revenues and expenses are translated using average exchange rates in effect during the period. Gains and losses from foreign currency translation are included in accumulated other comprehensive income (loss) within stockholders’ equity in the Consolidated Balance Sheets. For all non-functional currency account balances, the re-measurement of such balances to the functional currency results in either a foreign exchange gain or loss, which is recorded to interest and other income, net in the Consolidated Statements of Income in the same accounting period that the re-measurement occurred. The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk. The terms of the Company’s derivative contracts are generally twelve The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedging or non-hedging instruments. The Company records all derivatives on the Consolidated Balance Sheets at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income (loss) (“OCI”) until the hedged item is recognized in earnings. Derivative instruments designated as cash flow hedges are de-designated as hedges when it is probable that the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company includes interest and penalty on unrecognized tax benefits as a component of its income tax expense. The Company recognizes excess tax benefits and tax deficiencies in the provision for income taxes as discrete items in the period when the awards vest or are settled. The Company accounts for Global Intangible Low-Taxed Income (“GILTI”) as period costs when incurred. |
Segments | Segments The Company operates in one segment. The chief operating decision maker regularly reviews the operating results of the Company on a consolidated basis as part of making decisions for allocating resources and evaluating performance. As of December 31, 2021, and 2020, 84% and 83% of long-lived assets were in the United States, respectively. Revenue is attributed to a geographic region based on the location of the end customer. |
Legal Contingencies | Legal Contingencies From time to time, the Company is involved in a number of legal proceedings involving product liability, intellectual property, shareholder derivative actions, securities class actions, and other matters. A liability and related charge are recorded to earnings in the Company’s consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each period and is based on all available information, including discussion with outside legal counsel. If a reasonable estimate of a known or probable loss cannot be made, but a range of probable losses can be estimated, the low-end of the range of losses is recognized if no amount within the range is a better estimate than any other. If a material loss is reasonably possible but not probable and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. When determining the estimated probable loss or range of losses, significant judgment is required to be exercised in order to estimate the amount and timing of the loss to be recorded. Estimates of probable losses resulting from litigation are inherently difficult to make, particularly when the matters are in early procedural stages with incomplete facts and information. The final outcome of legal proceedings is dependent on many variables that are difficult to predict and, therefore, the ultimate cost to entirely resolve such matters may be materially different than the amount of current estimates. Consequently, new information or changes in judgments and estimates could have a material adverse effect on the Company’s business, financial condition, and results of operations or cash flows. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Certain Leases with Variable Lease Payments In July 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-05, Lessors — Certain Leases with Variable Lease Payments , which amends the lessor lease classification guidance in ASC 842 for leases that include any amount of variable lease payments that are not based on an index or rate. The Company has early adopted this ASU as of July 1, 2021, on a prospective basis. The standard had no impact on the Company's consolidated financial statements and related disclosures. Recent Accounting Pronouncements Business Combinations |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives Of The Assets | Property, plant, and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, generally, as follows: Useful Lives Building Up to 30 years Building improvements Up to 15 years Leasehold improvements Lesser of useful life or term of lease Equipment and furniture 5 years Operating lease assets Greater of lease term or 1 to 5 years Computer and office equipment 3 years Enterprise-wide software 5 years Purchased software Lesser of 3 years or life of license December 31, 2021 2020 Property, plant, and equipment, net: Land $ 367.8 $ 277.9 Building and building/leasehold improvements 812.5 773.8 Machinery and equipment 497.6 428.0 Operating lease assets – Intuitive System Leasing 616.1 419.9 Computer and office equipment 123.7 112.6 Capitalized software 217.6 205.4 Construction-in-process 209.7 117.4 Gross property, plant, and equipment 2,845.0 2,335.0 Less: Accumulated depreciation* (968.6) (757.7) Total property, plant, and equipment, net $ 1,876.4 $ 1,577.3 *Accumulated depreciation associated with operating lease assets – Intuitive System Leasing $ (182.1) $ (112.1) |
Amortized Cost Basis By Year of Origination and Credit Quality Indicator | The following table summarizes the amortized cost basis by year of origination and by credit quality for the net investment in sales-type leases as of December 31, 2021 (in millions): 2021 2020 2019 2018 2017 Prior Net Investment Credit Rating: High $ 101.7 $ 51.0 $ 18.8 $ 7.0 $ 1.7 $ — $ 180.2 Moderate 109.3 62.6 18.8 7.0 2.8 0.6 201.1 Low 8.1 1.6 1.3 0.1 — 0.2 11.3 Total $ 219.1 $ 115.2 $ 38.9 $ 14.1 $ 4.5 $ 0.8 $ 392.6 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash and Available-For-Sale Securities | The following tables summarize the Company’s cash and available-for-sale marketable securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents or short-term or long-term investments as of December 31, 2021, and 2020 (in millions): Reported as: Amortized Gross Gross Allowance for Credit Loss Fair Cash and Short-term Long-term December 31, 2021 Cash $ 572.3 $ — $ — $ — $ 572.3 $ 572.3 $ — $ — Level 1: Money market funds 696.6 — — — 696.6 696.6 — — U.S. treasuries 3,429.1 6.3 (15.4) — 3,420.0 17.0 1,100.3 2,302.7 Subtotal 4,125.7 6.3 (15.4) — 4,116.6 713.6 1,100.3 2,302.7 Level 2: Commercial paper 717.7 — — — 717.7 — 717.7 — Corporate securities 2,485.6 2.7 (11.9) — 2,476.4 5.0 886.7 1,584.7 U.S. government agencies 526.1 0.2 (2.9) — 523.4 — 137.8 385.6 Municipal securities 213.4 0.7 (1.0) — 213.1 — 70.6 142.5 Subtotal 3,942.8 3.6 (15.8) — 3,930.6 5.0 1,812.8 2,112.8 Total assets measured at fair value $ 8,640.8 $ 9.9 $ (31.2) $ — $ 8,619.5 $ 1,290.9 $ 2,913.1 $ 4,415.5 Reported as: Amortized Gross Gross Allowance for Credit Loss Fair Cash and Short-term Long-term December 31, 2020 Cash $ 644.3 $ — $ — $ — $ 644.3 $ 644.3 $ — $ — Level 1: Money market funds 625.8 — — — 625.8 625.8 — — U.S. treasuries 2,626.8 23.0 — — 2,649.8 212.5 1,567.9 869.4 Subtotal 3,252.6 23.0 — — 3,275.6 838.3 1,567.9 869.4 Level 2: Commercial paper 671.3 — — — 671.3 64.1 607.2 — Corporate securities 1,425.4 11.9 (0.2) — 1,437.1 3.4 1,036.5 397.2 U.S. government agencies 716.5 2.5 — — 719.0 72.5 233.6 412.9 Municipal securities 119.8 2.0 — — 121.8 — 43.6 78.2 Subtotal 2,933.0 16.4 (0.2) — 2,949.2 140.0 1,920.9 888.3 Total assets measured at fair value $ 6,829.9 $ 39.4 $ (0.2) $ — $ 6,869.1 $ 1,622.6 $ 3,488.8 $ 1,757.7 |
Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments | The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale investments (excluding cash and money market funds) as of December 31, 2021 (in millions): Amortized Fair Mature in less than one year $ 2,931.6 $ 2,935.1 Mature in one to five years 4,440.3 4,415.5 Total $ 7,371.9 $ 7,350.6 |
Schedule Of Available-For-Sale Investments With Unrealized Losses | The following tables present the breakdown of the available-for-sale investments with unrealized losses as of December 31, 2021, and 2020 (in millions): Unrealized losses less Unrealized losses 12 Total December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized Commercial paper $ 4.0 $ — $ — $ — $ 4.0 $ — Corporate securities 1,687.9 (11.9) — — 1,687.9 (11.9) U.S. treasuries 2,596.3 (15.4) — — 2,596.3 (15.4) U.S. government agencies 412.5 (2.9) — — 412.5 (2.9) Municipal securities 156.0 (1.0) — — 156.0 (1.0) Total $ 4,856.7 $ (31.2) $ — $ — $ 4,856.7 $ (31.2) December 31, 2020 Corporate securities $ 352.7 $ (0.2) $ — $ — $ 352.7 $ (0.2) U.S. treasuries 278.1 — — — 278.1 — U.S. government agencies 63.5 — — — 63.5 — Municipal securities 21.3 — — — 21.3 — Total $ 715.6 $ (0.2) $ — $ — $ 715.6 $ (0.2) |
Debt Securities, Trading, and Equity Securities, FV-NI | The following table is a summary of the activity related to equity investments (in millions): Reported as: December 31, 2020 Changes in Fair Value (1) Sales/Purchases/Others (2) December 31, 2021 Prepaids and other current assets Intangible and other assets, net Equity investments with readily determinable value (Level 1) $ 60.1 (17.7) (15.5) $ 26.9 $ 26.9 $ — Equity investments without readily determinable value (Level 2) $ 30.2 43.8 (58.4) $ 15.6 $ — $ 15.6 (1) Recorded in Interest and other income, net. (2) Other includes conversion of certain equity investments without readily determinable value to equity investments with readily determinable value. |
Derivative Instruments Used to Hedge against Balance Sheet Foreign Currency Exposures | These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions): Years Ended December 31, 2021 2020 2019 Recognized gains (losses) in interest and other income, net $ 15.5 $ (12.3) $ 6.4 Foreign exchange gains (losses) related to balance sheet re-measurement $ (16.4) $ 10.9 $ (1.5) |
Gross Notional Amounts for Outstanding Derivatives | Total gross notional amounts (in USD) for derivatives and the aggregate gross fair value outstanding at the end of each period were as follows (in millions): Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, December 31, December 31, Notional amounts: Forward contracts $ 181.2 $ 154.3 $ 318.8 $ 309.8 Gross fair value recorded in: Prepaid and other current assets $ 5.7 $ 0.9 $ 6.9 $ 0.7 Other accrued liabilities $ 0.5 $ 4.3 $ 0.8 $ 5.4 |
Consolidated Financial Statem_2
Consolidated Financial Statement Details (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of the Inventory Balance Sheet Item | December 31, 2021 2020 Inventory: Raw materials $ 214.6 $ 184.1 Work-in-process 96.4 75.6 Finished goods 276.1 341.8 Total inventory $ 587.1 $ 601.5 |
Schedule of Other Current Assets | December 31, 2021 2020 Prepaids and other current assets: Prepaid taxes $ 4.3 $ 28.9 Equity investments 26.9 60.1 Net investment in sales-type leases – short-term 110.3 81.1 Other prepaids and other current assets 129.6 97.4 Total prepaids and other current assets $ 271.1 $ 267.5 |
Details of the Property, Plant and Equipment, Net Balance Sheet Item | Property, plant, and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, generally, as follows: Useful Lives Building Up to 30 years Building improvements Up to 15 years Leasehold improvements Lesser of useful life or term of lease Equipment and furniture 5 years Operating lease assets Greater of lease term or 1 to 5 years Computer and office equipment 3 years Enterprise-wide software 5 years Purchased software Lesser of 3 years or life of license December 31, 2021 2020 Property, plant, and equipment, net: Land $ 367.8 $ 277.9 Building and building/leasehold improvements 812.5 773.8 Machinery and equipment 497.6 428.0 Operating lease assets – Intuitive System Leasing 616.1 419.9 Computer and office equipment 123.7 112.6 Capitalized software 217.6 205.4 Construction-in-process 209.7 117.4 Gross property, plant, and equipment 2,845.0 2,335.0 Less: Accumulated depreciation* (968.6) (757.7) Total property, plant, and equipment, net $ 1,876.4 $ 1,577.3 *Accumulated depreciation associated with operating lease assets – Intuitive System Leasing $ (182.1) $ (112.1) |
Details of the Other Accrued Liabilities—Short Term Balance Sheet Item | December 31, 2021 2020 Other accrued liabilities – short-term: Taxes payable $ 54.1 $ 47.2 Current portion of deferred purchase consideration 11.6 10.4 Current portion of contingent consideration 0.4 15.1 Other accrued liabilities 235.2 225.6 Total other accrued liabilities – short-term $ 301.3 $ 298.3 |
Details of the Other Long-Term Liabilities Balance Sheet Item | December 31, 2021 2020 Other long-term liabilities: Income taxes – long-term $ 316.6 $ 305.6 Deferred revenue – long-term 36.8 32.1 Other long-term liabilities 100.3 106.9 Total other long-term liabilities $ 453.7 $ 444.6 |
Supplemental Cash Flow Information | The following table provides supplemental cash flow information (in millions): Years Ended December 31, 2021 2020 2019 Income taxes paid $ 180.0 $ 34.4 $ 158.6 Supplemental non-cash investing and financing activities: Equipment transfers from inventory to property, plant, and equipment $ 302.4 $ 186.5 $ 210.6 Acquisition of property, plant, and equipment in accounts payable and accrued liabilities $ 32.1 $ 47.3 $ 30.2 Deferred purchase and contingent consideration related to acquisitions $ 6.5 $ 4.2 $ 86.6 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregated by Types and Geography | The following table presents revenue disaggregated by types and geography (in millions): Years Ended December 31, U.S. 2021 2020 2019 Instruments and accessories $ 2,225.1 $ 1,785.1 $ 1,790.4 Systems 1,024.8 695.0 830.7 Services 603.3 482.6 508.4 Total U.S. revenue $ 3,853.2 $ 2,962.7 $ 3,129.5 Outside of U.S. (“OUS”) Instruments and accessories $ 875.4 $ 670.6 $ 617.8 Systems 668.6 483.9 515.4 Services 312.9 241.2 215.8 Total OUS revenue $ 1,856.9 $ 1,395.7 $ 1,349.0 Total Instruments and accessories $ 3,100.5 $ 2,455.7 $ 2,408.2 Systems 1,693.4 1,178.9 1,346.1 Services 916.2 723.8 724.2 Total revenue $ 5,710.1 $ 4,358.4 $ 4,478.5 |
Summary of Contract Assets and Liabilities | The following information summarizes the Company’s contract assets and liabilities (in millions): December 31, 2021 2020 Contract assets $ 46.9 $ 34.6 Deferred revenue $ 414.0 $ 382.3 |
Sales-type Lease Receivable | The following table presents product revenue from Intuitive System Leasing arrangements (in millions): Years Ended December 31, 2021 2020 2019 Sales-type lease revenue $ 220.3 $ 154.4 $ 81.6 Operating lease revenue (1) $ 276.9 $ 176.7 $ 106.9 (1) Includes variable lease revenue relating to usage-based arrangements. |
Operating Lease Revenue | The following table presents product revenue from Intuitive System Leasing arrangements (in millions): Years Ended December 31, 2021 2020 2019 Sales-type lease revenue $ 220.3 $ 154.4 $ 81.6 Operating lease revenue (1) $ 276.9 $ 176.7 $ 106.9 (1) Includes variable lease revenue relating to usage-based arrangements. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessor, Sales-type Lease, Lease Income | Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions): December 31, 2021 2020 Gross lease receivables $ 404.0 $ 286.1 Unearned income (11.4) (11.1) Subtotal 392.6 275.0 Allowance for credit loss (3.6) (4.4) Net investment in sales-type leases $ 389.0 $ 270.6 Reported as: Prepaids and other current assets $ 110.3 $ 81.1 Intangible and other assets, net 278.7 189.5 Total, net $ 389.0 $ 270.6 |
Schedule of Contractual Maturities of Gross Lease Receivables | Contractual maturities of gross lease receivables as of December 31, 2021, are as follows (in millions): Fiscal Year Amount 2022 $ 117.8 2023 102.8 2024 90.3 2025 61.1 2026 29.3 2027 and thereafter 2.7 Total $ 404.0 |
Schedule of Operating Lease Payments | Future minimum lease payments related to the non-cancellable portion of operating leases (which excludes contingent payments related to usage-based arrangements) as of December 31, 2021, are as follows (in millions): Fiscal Year Amount 2022 $ 260.3 2023 223.8 2024 173.6 2025 121.8 2026 61.2 2027 and thereafter 21.9 Total $ 862.6 |
Supplemental Cash Flow and Balance Sheet Information | Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to operating leases was as follows (in millions): Years Ended December 31, 2021 2020 2019 Cash paid for leases that were included within operating cash outflows $ 23.2 $ 11.0 $ 18.8 Right-of-use assets recognized related to new lease obligations $ 30.6 $ 9.6 $ 21.5 |
Supplemental Balance Sheet Information | Supplemental balance sheet information, as of December 31, 2021, and 2020, related to operating leases was as follows (in millions, except lease term and discount rate): December 31, Reported as: 2021 2020 Intangible and other assets, net (Right-of-use assets) $ 74.4 $ 63.9 Other accrued liabilities $ 20.4 $ 21.9 Other long-term liabilities 66.6 58.0 Total lease liabilities $ 87.0 $ 79.9 Weighted-average remaining lease term 4.9 years 5.3 years Weighted-average discount rate 2.5 % 3.2 % |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2021, the future payments related to the Company’s operating lease liabilities are scheduled as follows (in millions): Fiscal Year Amount 2022 $ 22.0 2023 21.9 2024 16.6 2025 14.5 2026 12.1 2027 and thereafter 9.1 Total lease payments 96.2 Less imputed interest (9.2) Total operating lease liabilities $ 87.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Summary of Changes in Goodwill | The following table summarizes the changes in the carrying amount of goodwill (in millions): Amount Balance as of December 31, 2019 $ 307.2 Acquisition activity 29.3 Translation and other 0.2 Balance as of December 31, 2020 336.7 Acquisition activity 8.0 Translation and other (1.1) Balance as of December 31, 2021 $ 343.6 |
Schedule of Intangible Assets | The following table summarizes the components of gross intangible asset, accumulated amortization, and net intangible asset balances as of December 31, 2021, and 2020 (in millions): December 31, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and developed technology $ 219.3 $ (173.2) $ 46.1 $ 198.4 $ (158.7) $ 39.7 Distribution rights and others 26.3 (19.4) 6.9 91.9 (77.4) 14.5 Customer relationships 31.8 (14.3) 17.5 59.0 (35.8) 23.2 Total intangible assets $ 277.4 $ (206.9) $ 70.5 $ 349.3 $ (271.9) $ 77.4 |
Schedule Of Estimated Future Amortization Expense Of Intangible Assets | The estimated future amortization expense related to intangible assets as of December 31, 2021, is as follows (in millions): Fiscal Year Amount 2022 $ 23.6 2023 19.0 2024 15.0 2025 9.6 2026 2.7 2027 and thereafter 0.6 Total $ 70.5 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule Of Stock Repurchase Activities | The following table provides the stock repurchase activities (in millions, except per share amounts): Years Ended December 31, 2021 2020 2019 Shares repurchased — 0.7 1.7 Average price per share $ — $ 183.84 $ 160.45 Value of shares repurchased $ — $ 134.3 $ 269.5 |
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The components of accumulated other comprehensive income (loss), net of tax, are as follows (in millions): Year Ended December 31, 2021 Unrealized Gains (Losses) Unrealized Foreign Employee Benefit Plans Total Beginning balance $ (2.9) $ 29.5 $ 4.7 $ (6.4) $ 24.9 Other comprehensive income (loss) before reclassifications 12.3 (45.5) (12.6) 0.1 (45.7) Reclassified from accumulated other comprehensive income (loss) (4.9) — — 1.5 (3.4) Net current-period other comprehensive income (loss) 7.4 (45.5) (12.6) 1.6 (49.1) Ending balance $ 4.5 $ (16.0) $ (7.9) $ (4.8) $ (24.2) Year Ended December 31, 2020 Unrealized Gains (Losses) Unrealized Foreign Employee Benefit Plans Total Beginning balance $ 0.7 $ 20.4 $ — $ (8.7) $ 12.4 Other comprehensive income (loss) before reclassifications (0.8) 13.8 4.7 1.0 18.7 Reclassified from accumulated other comprehensive income (loss) (2.8) (4.7) — 1.3 (6.2) Net current-period other comprehensive income (loss) (3.6) 9.1 4.7 2.3 12.5 Ending balance $ (2.9) $ 29.5 $ 4.7 $ (6.4) $ 24.9 The income tax impacts were not material for the years ended December 31, 2021, and 2020. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Stock Option Activity Under All Stock Plans | Option activity during 2021 under all the stock plans was as follows (in millions, except per share amounts): Stock Options Outstanding Number Weighted-Average Balance as of December 31, 2020 13.4 $ 101.69 Options granted 1.1 $ 294.53 Options exercised (2.7) $ 74.39 Options forfeited/expired (0.1) $ 198.34 Balance as of December 31, 2021 11.7 $ 125.07 |
Summary Of Significant Ranges Of Outstanding And Exercisable Options | The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2021 (number of shares and aggregate intrinsic value in millions): Options Outstanding Options Exercisable Range of Number Weighted-Average Weighted-Average Aggregate Number Weighted-Average Weighted-Average Aggregate $29.91-$49.34 1.4 1.9 $ 45.18 1.4 $ 45.18 $51.02-$57.11 1.4 2.5 $ 54.39 1.4 $ 54.39 $57.48-$59.46 1.4 2.9 $ 58.78 1.4 $ 58.78 $59.58-$77.00 1.3 2.8 $ 69.07 1.3 $ 69.07 $77.04-$139.52 1.6 5.6 $ 108.72 1.6 $ 108.24 $143.49-$174.26 1.4 7.1 $ 168.88 1.1 $ 169.46 $175.53-$182.83 1.3 7.6 $ 179.91 0.7 $ 180.38 $182.90-$245.60 1.3 8.7 $ 234.88 0.4 $ 230.62 $249.83-$341.16 0.1 9.1 $ 270.94 — $ 251.85 $347.42-$347.42 0.5 9.6 $ 347.42 0.1 $ 347.42 Total 11.7 5.1 $ 125.07 $ 2,737 9.4 4.3 $ 99.52 $ 2,453 (1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $359.30 as of December 31, 2021, which would have been received by the option holders had all in-the-money option holders exercised their options as of that date. |
Summary of RSU Activity | RSU activity for the year ended December 31, 2021, was as follows (in millions, except per share amounts): Shares Weighted-Average Unvested balance as of December 31, 2020 5.3 $ 163.30 Granted 1.9 $ 256.52 Vested (2.1) $ 145.60 Forfeited (0.3) $ 193.61 Unvested balance as of December 31, 2021 4.8 $ 207.37 |
Summary Of Share-Based Compensation Expense | The following table summarizes share-based compensation expense (in millions): Years Ended December 31, 2021 2020 2019 Cost of sales—products $ 68.9 $ 58.9 $ 46.6 Cost of sales—services 22.2 24.0 20.4 Total cost of sales 91.1 82.9 67.0 Selling, general and administrative 231.6 202.2 169.5 Research and development 134.1 113.6 101.4 Share-based compensation expense before income taxes 456.8 398.7 337.9 Income tax effect 93.7 81.4 70.2 Share-based compensation expense after income taxes $ 363.1 $ 317.3 $ 267.7 |
Schedule Of Estimated Fair Values Of The Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions and Fair Value of RSUs | The weighted-average estimated fair values of stock options, the rights to acquire stock under the ESPP, and RSUs, as well as the weighted-average assumptions used in calculating the fair values of stock options and rights to acquire stock under the ESPP that were granted during the years ended December 31, 2021, 2020, and 2019, were as follows: Years Ended December 31, STOCK OPTION PLANS 2021 2020 2019 Risk-free interest rate 0.8% 0.6% 2.0% Expected term (years) 4.1 4.1 4.1 Volatility 32% 32% 30% Fair value at grant date $78.23 $54.34 $47.51 EMPLOYEE STOCK PURCHASE PLAN Risk-free interest rate 0.1% 0.9% 2.1% Expected term (years) 1.2 1.2 1.2 Volatility 29% 30% 29% Fair value at grant date $89.98 $57.29 $49.66 RESTRICTED STOCK UNITS Fair value at grant date $256.52 $181.89 $180.45 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Income Before Provision For Income Taxes | Income before provision for income taxes for the years ended December 31, 2021, 2020, and 2019, consisted of the following (in millions): Years Ended December 31, 2021 2020 2019 U.S. $ 1,298.7 $ 926.8 $ 1,053.7 Foreign 591.6 280.2 448.5 Total income before provision for income taxes $ 1,890.3 $ 1,207.0 $ 1,502.2 |
Schedule Of Provision For Income Taxes | The provision for income taxes for the years ended December 31, 2021, 2020, and 2019, consisted of the following (in millions): Years Ended December 31, 2021 2020 2019 Current Federal $ 158.8 $ 34.2 $ 82.0 State 17.3 21.5 26.5 Foreign 50.1 26.9 18.0 226.2 82.6 126.5 Deferred Federal (21.4) 23.8 8.5 State 0.5 1.6 3.2 Foreign (43.1) 32.2 (17.8) (64.0) 57.6 (6.1) Total income tax expense $ 162.2 $ 140.2 $ 120.4 |
Schedule Of Income Tax Difference From The Statutory Rate | Income tax expense differs from amounts computed by applying the statutory federal income rate of 21% for the years ended December 31, 2021, 2020, and 2019, as a result of the following (in millions): Years Ended December 31, 2021 2020 2019 Federal tax at statutory rate $ 397.0 $ 253.5 $ 315.5 Increase (reduction) in tax resulting from: State taxes, net of federal benefits 33.1 23.1 29.7 Foreign rate differential (54.3) (19.3) (56.2) U.S. tax on foreign earnings 40.1 29.3 55.0 Research and development credit (30.7) (37.1) (32.7) Share-based compensation not benefited 17.8 14.3 13.5 Unrecognized tax benefit related to share-based compensation 13.6 39.3 — Reversal of unrecognized tax benefits (3.0) (4.0) (8.4) Excess tax benefits related to share-based compensation (185.8) (166.2) (146.5) Deferred tax re-measurement (66.4) — (51.3) Other 0.8 7.3 1.8 Total income tax expense $ 162.2 $ 140.2 $ 120.4 |
Schedule Of Deferred Tax Assets | Deferred income taxes reflect tax carry forwards and the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (in millions): December 31, 2021 2020 Deferred tax assets: Net operating losses $ 9.7 $ 27.7 Share-based compensation expense 110.9 101.1 Lease liabilities 15.2 12.0 Expenses deducted in later years for tax purposes 38.4 29.3 Intangible assets 373.9 321.8 Research and other credits 98.5 76.3 Other 5.3 — Gross deferred tax assets 651.9 568.2 Valuation allowance (104.6) (81.4) Deferred tax assets 547.3 486.8 Deferred tax liabilities: Property, plant, and equipment (79.4) (91.1) Right-of-use assets (12.3) (8.4) Intangible assets (9.7) (10.1) Other (5.1) (13.2) Deferred tax liabilities (106.5) (122.8) Net deferred tax assets $ 440.8 $ 364.0 |
Schedule Of Gross Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for the years ended December 31, 2021, 2020, and 2019, are as follows (in millions): Years Ended December 31, 2021 2020 2019 Beginning balance $ 176.3 $ 96.7 $ 78.8 Increases related to tax positions taken during the current year 40.6 40.1 26.5 Increases related to tax positions taken during a prior year 11.2 46.1 1.2 Decreases related to tax positions taken during a prior year (1.3) — — Decreases related to settlements with tax authorities (0.2) (0.5) (3.8) Decreases related to expiration of statute of limitations (4.1) (6.1) (6.0) Ending balance $ 222.5 $ 176.3 $ 96.7 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Net Income Per Share | The following table presents the computation of basic and diluted net income per share attributable to Intuitive Surgical, Inc. (in millions, except per share amounts): Years Ended December 31, 2021 2020 2019 Numerator: Net income attributable to Intuitive Surgical, Inc. $ 1,704.6 $ 1,060.6 $ 1,379.3 Denominator: Weighted-average shares outstanding used in basic calculation 356.1 351.1 346.2 Add: dilutive effect of potential common shares 9.7 9.9 12.2 Weighted-average shares outstanding used in diluted calculation 365.8 361.0 358.4 Net income per share attributable to Intuitive Surgical, Inc.: Basic $ 4.79 $ 3.02 $ 3.98 Diluted $ 4.66 $ 2.94 $ 3.85 |
Selected Quarterly Data (Tables
Selected Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule Of Selected Quarterly Data | Three Months Ended December 31, September 30, June 30, March 31, Revenue 1,550.7 $ 1,403.3 $ 1,464.0 $ 1,292.1 Gross profit 1,060.8 $ 971.4 $ 1,023.7 $ 902.6 Net income attributable to Intuitive Surgical, Inc. (1)(2) 380.6 $ 380.5 $ 517.2 $ 426.3 Net income attributable to Intuitive Surgical, Inc. per share: Basic $ 1.07 $ 1.07 $ 1.45 $ 1.20 Diluted $ 1.03 $ 1.04 $ 1.42 $ 1.17 (1) Includes discrete tax benefits as follows: Excess tax benefits related to share-based compensation arrangements $ 26.9 $ 41.9 $ 43.6 $ 73.4 One-time tax benefit related to Swiss intangible assets deferred tax asset remeasurement $ — $ 66.4 $ — $ — Discrete tax expense arising from the conclusion of a tax matter $ — $ (11.1) $ — $ — (2) Includes charitable foundation contribution expense $ (30.0) $ — $ — $ — Three Months Ended December 31, September 30, June 30, March 31, Revenue $ 1,329.1 $ 1,077.7 $ 852.1 $ 1,099.5 Gross profit $ 895.8 $ 724.3 $ 502.9 $ 738.2 Net income attributable to Intuitive Surgical, Inc. (1)(2)(3) $ 365.2 $ 313.9 $ 68.0 $ 313.5 Net income attributable to Intuitive Surgical, Inc. per share: Basic $ 3.11 $ 2.68 $ 0.58 $ 2.69 Diluted $ 3.02 $ 2.60 $ 0.57 $ 2.62 (1) Includes discrete tax benefits as follows: Excess tax benefits related to share-based compensation arrangements $ 21.3 $ 47.9 $ 31.6 $ 65.4 Discrete tax expense arising from the conclusion of a tax matter $ — $ — $ (36.8) $ — (2) Includes acquisition-related (charges) benefits $ (2.9) $ (4.6) $ (4.4) $ 1.4 (3) Includes charitable foundation contribution expense $ (25.0) $ — $ — $ — |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Service Fee Credit | $ 80 | ||
Sales-type Lease, Lease Receivable, Extended Payment | 15 | ||
Accounts Receivable, Extended Payment | 181 | ||
Accounts Receivable, Deferred Lease Billing and Extended Payments, Outstanding | 19 | ||
Restricted cash | 17.9 | $ 18 | |
Depreciation expense | $ 280 | 221 | $ 157 |
Number of operating segments | segment | 1 | ||
Performance obligation period | The Company’s system sale arrangements generally include a five-year period of service. The first year of service is generally free and included in the system sale arrangement, and the remaining four years are generally included at a stated service price. | ||
System sales arrangement, warranty period | 1 year | ||
Capitalized contract acquisition costs | $ 71.8 | $ 53.1 | |
Market-based implied volatility (period) | 1 year | ||
Market-based implied volatility (percent) | 100.00% | ||
Cash flow hedges de-designated (period) | 2 months | ||
Likelihood of tax benefits being realized upon ultimate settlement | 50.00% | ||
Long-lived assets, percent | 84.00% | 83.00% | |
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life, intangible asset | 2 years | ||
Sales-type leases term | 24 months | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life, intangible asset | 9 years | ||
Sales-type leases term | 84 months | ||
Derivative, term of contract | 12 months | ||
Maximum | Internal use software | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful Lives | 5 years | ||
Accounts Receivable | Geographic Concentration Risk | U.S. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 67.00% | ||
Total Revenue | Geographic Concentration Risk | U.S. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 67.00% | 68.00% | 70.00% |
Total Revenue | Geographic Concentration Risk | Outside of U.S. (“OUS”) | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 33.00% | 32.00% | 30.00% |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies - Estimated Useful Lives Of Assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 30 years |
Building improvements | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 15 years |
Equipment and furniture | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 5 years |
Operating lease assets | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 5 years |
Operating lease assets | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 1 year |
Computer and office equipment | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 3 years |
Enterprise-wide software | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 5 years |
Purchased software | |
Property, Plant and Equipment [Line Items] | |
Useful Lives | 3 years |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies - Amortized Cost by Credit Quality (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator [Line Items] | ||
2021 | $ 219.1 | |
2020 | 115.2 | |
2019 | 38.9 | |
2018 | 14.1 | |
2017 | 4.5 | |
Prior | 0.8 | |
Subtotal | 392.6 | $ 275 |
High | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator [Line Items] | ||
2021 | 101.7 | |
2020 | 51 | |
2019 | 18.8 | |
2018 | 7 | |
2017 | 1.7 | |
Prior | 0 | |
Subtotal | 180.2 | |
Moderate | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator [Line Items] | ||
2021 | 109.3 | |
2020 | 62.6 | |
2019 | 18.8 | |
2018 | 7 | |
2017 | 2.8 | |
Prior | 0.6 | |
Subtotal | 201.1 | |
Low | ||
Sales-type Lease, Net Investment in Lease, Credit Quality Indicator [Line Items] | ||
2021 | 8.1 | |
2020 | 1.6 | |
2019 | 1.3 | |
2018 | 0.1 | |
2017 | 0 | |
Prior | 0.2 | |
Subtotal | $ 11.3 |
Financial Instruments - Summary
Financial Instruments - Summary Of Cash And Available-For-Sale Securities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | $ 1,290.9 | $ 1,622.6 |
Total | 7,371.9 | |
Total assets measured at fair value, Amortized Cost | 8,640.8 | 6,829.9 |
Gross Unrealized Gains | 9.9 | 39.4 |
Gross Unrealized Losses | 31.2 | 0.2 |
Fair Value | 7,350.6 | |
Total assets measured at fair value, Fair Value | 8,619.5 | 6,869.1 |
Short-term Investments | 2,913.1 | 3,488.8 |
Long-term Investments | 4,415.5 | 1,757.7 |
Cash | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 572.3 | 644.3 |
Fair Value | 572.3 | 644.3 |
Level 1: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 713.6 | 838.3 |
Total | 4,125.7 | 3,252.6 |
Gross Unrealized Gains | 6.3 | 23 |
Gross Unrealized Losses | 15.4 | 0 |
Fair Value | 4,116.6 | 3,275.6 |
Short-term Investments | 1,100.3 | 1,567.9 |
Long-term Investments | 2,302.7 | 869.4 |
Level 1: | Money market funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 696.6 | 625.8 |
Fair Value | 696.6 | 625.8 |
Short-term Investments | 0 | 0 |
Long-term Investments | 0 | 0 |
Level 1: | U.S. treasuries | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 17 | 212.5 |
Total | 3,429.1 | 2,626.8 |
Gross Unrealized Gains | 6.3 | 23 |
Gross Unrealized Losses | 15.4 | 0 |
Fair Value | 3,420 | 2,649.8 |
Short-term Investments | 1,100.3 | 1,567.9 |
Long-term Investments | 2,302.7 | 869.4 |
Level 2: | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 5 | 140 |
Total | 3,942.8 | 2,933 |
Gross Unrealized Gains | 3.6 | 16.4 |
Gross Unrealized Losses | 15.8 | 0.2 |
Fair Value | 3,930.6 | 2,949.2 |
Short-term Investments | 1,812.8 | 1,920.9 |
Long-term Investments | 2,112.8 | 888.3 |
Level 2: | Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 0 | 64.1 |
Total | 717.7 | 671.3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 717.7 | 671.3 |
Short-term Investments | 717.7 | 607.2 |
Long-term Investments | 0 | 0 |
Level 2: | Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 5 | 3.4 |
Total | 2,485.6 | 1,425.4 |
Gross Unrealized Gains | 2.7 | 11.9 |
Gross Unrealized Losses | 11.9 | 0.2 |
Fair Value | 2,476.4 | 1,437.1 |
Short-term Investments | 886.7 | 1,036.5 |
Long-term Investments | 1,584.7 | 397.2 |
Level 2: | U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 0 | 72.5 |
Total | 526.1 | 716.5 |
Gross Unrealized Gains | 0.2 | 2.5 |
Gross Unrealized Losses | 2.9 | 0 |
Fair Value | 523.4 | 719 |
Short-term Investments | 137.8 | 233.6 |
Long-term Investments | 385.6 | 412.9 |
Level 2: | Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Total | 213.4 | 119.8 |
Gross Unrealized Gains | 0.7 | 2 |
Gross Unrealized Losses | 1 | 0 |
Fair Value | 213.1 | 121.8 |
Short-term Investments | 70.6 | 43.6 |
Long-term Investments | $ 142.5 | $ 78.2 |
Financial Instruments - Summa_2
Financial Instruments - Summary Of Contractual Maturities Of Cash Equivalents And Available-For-Sale Investments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Amortized Cost | |
Mature in less than one year | $ 2,931.6 |
Mature in one to five years | 4,440.3 |
Total | 7,371.9 |
Fair Value | |
Mature in less than one year | 2,935.1 |
Mature in one to five years | 4,415.5 |
Total | $ 7,350.6 |
Financial Instruments - Schedul
Financial Instruments - Schedule Of Available-For-Sale Investments With Unrealized Losses (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months, fair value | $ 4,856.7 | $ 715.6 |
Unrealized losses less than 12 months | (31.2) | (0.2) |
Unrealized losses 12 months or greater, fair value | 0 | 0 |
Unrealized losses 12 months or greater | 0 | 0 |
Total Fair Value | 4,856.7 | 715.6 |
Total Unrealized Losses | (31.2) | (0.2) |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months, fair value | 4 | |
Unrealized losses less than 12 months | 0 | |
Unrealized losses 12 months or greater, fair value | 0 | |
Unrealized losses 12 months or greater | 0 | |
Total Fair Value | 4 | |
Total Unrealized Losses | 0 | |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months, fair value | 1,687.9 | 352.7 |
Unrealized losses less than 12 months | (11.9) | (0.2) |
Unrealized losses 12 months or greater, fair value | 0 | 0 |
Unrealized losses 12 months or greater | 0 | 0 |
Total Fair Value | 1,687.9 | 352.7 |
Total Unrealized Losses | (11.9) | (0.2) |
U.S. treasuries | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months, fair value | 2,596.3 | 278.1 |
Unrealized losses less than 12 months | (15.4) | 0 |
Unrealized losses 12 months or greater, fair value | 0 | 0 |
Unrealized losses 12 months or greater | 0 | 0 |
Total Fair Value | 2,596.3 | 278.1 |
Total Unrealized Losses | (15.4) | 0 |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months, fair value | 412.5 | 63.5 |
Unrealized losses less than 12 months | (2.9) | 0 |
Unrealized losses 12 months or greater, fair value | 0 | 0 |
Unrealized losses 12 months or greater | 0 | 0 |
Total Fair Value | 412.5 | 63.5 |
Total Unrealized Losses | (2.9) | 0 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months, fair value | 156 | 21.3 |
Unrealized losses less than 12 months | (1) | 0 |
Unrealized losses 12 months or greater, fair value | 0 | 0 |
Unrealized losses 12 months or greater | 0 | 0 |
Total Fair Value | 156 | 21.3 |
Total Unrealized Losses | $ (1) | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Realized investment gains (losses) | $ 0 | $ 8,300,000 | ||||
Net unrealized gains/(losses) on investments | 16,000,000 | 29,500,000 | ||||
Proceeds from sales of investments | 84,900,000 | $ 800,700,000 | $ 107,300,000 | |||
Broncus | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Net unrealized gains/(losses) on investments | $ 29,100,000 | 5,100,000 | ||||
Hologic | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Net unrealized gains/(losses) on investments | $ 9,500,000 | |||||
Teladoc | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Net unrealized gains/(losses) on investments | $ 11,400,000 | |||||
Proceeds from sales of investments | 71,500,000 | |||||
Gain (loss) on sale of derivatives | $ 7,500,000 | |||||
Level 2: | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Changes in fair value | 43,800,000 | |||||
Level 2: | Broncus | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Equity securities without readily determinable fair value, unrealized gain (loss), portion attributable to investment in preferred shares | $ 34,200,000 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Equity Investment Activity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments | $ 26.9 | $ 60.1 |
Level 1: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments | 26.9 | 60.1 |
Changes in Fair Value | (17.7) | |
Sales/Purchases/Others | (15.5) | |
Level 2: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments without readily determinable value, Carrying Value | 15.6 | $ 30.2 |
Changes in fair value | 43.8 | |
Sales/Purchases/Others | (58.4) | |
Prepaid and other current assets | Level 1: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments | 26.9 | |
Prepaid and other current assets | Level 2: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments without readily determinable value, Carrying Value | 0 | |
Intangible and other assets, net | Level 1: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments | 0 | |
Intangible and other assets, net | Level 2: | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Equity investments without readily determinable value, Carrying Value | $ 15.6 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Used to Hedge against Balance Sheet Foreign Currency Exposures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign exchange gains (losses) related to balance sheet re-measurement | $ (16.4) | $ 10.9 | $ (1.5) |
Foreign Exchange Forward | Other income | Derivatives Not Designated as Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Recognized gains (losses) in interest and other income, net | $ 15.5 | $ (12.3) | $ 6.4 |
Financial Instruments - Gross N
Financial Instruments - Gross Notional Amounts for Outstanding Derivatives (Details) - Forward contracts - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | $ 181.2 | $ 154.3 |
Derivatives Designated as Hedging Instruments | Prepaid and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 5.7 | 0.9 |
Derivatives Designated as Hedging Instruments | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 0.5 | 4.3 |
Derivatives Not Designated as Hedging Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 318.8 | 309.8 |
Derivatives Not Designated as Hedging Instruments | Prepaid and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 6.9 | 0.7 |
Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | $ 0.8 | $ 5.4 |
Consolidated Financial Statem_3
Consolidated Financial Statement Details - Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory: | ||
Raw materials | $ 214.6 | $ 184.1 |
Work-in-process | 96.4 | 75.6 |
Finished goods | 276.1 | 341.8 |
Total inventory | $ 587.1 | $ 601.5 |
Consolidated Financial Statem_4
Consolidated Financial Statement Details (Details) - Prepaids and Other Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Prepaid taxes | $ 4.3 | $ 28.9 |
Equity investments | 26.9 | 60.1 |
Net investment in sales-type leases – short-term | 110.3 | 81.1 |
Other prepaids and other current assets | 129.6 | 97.4 |
Total prepaids and other current assets | $ 271.1 | $ 267.5 |
Consolidated Financial Statem_5
Consolidated Financial Statement Details - Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, plant, and equipment, net: | ||
Land | $ 367.8 | $ 277.9 |
Building and building/leasehold improvements | 812.5 | 773.8 |
Machinery and equipment | 497.6 | 428 |
Operating lease assets – Intuitive System Leasing | 616.1 | 419.9 |
Computer and office equipment | 123.7 | 112.6 |
Capitalized software | 217.6 | 205.4 |
Construction-in-process | 209.7 | 117.4 |
Gross property, plant, and equipment | 2,845 | 2,335 |
Less: Accumulated depreciation | (968.6) | (757.7) |
Total property, plant, and equipment, net | 1,876.4 | 1,577.3 |
Accumulated depreciation associated with operating lease assets - Intuitive System Leasing | $ (182.1) | $ (112.1) |
Consolidated Financial Statem_6
Consolidated Financial Statement Details - Other Accrued Liabilities—Short Term (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Taxes payable | $ 54.1 | $ 47.2 |
Current portion of deferred purchase consideration | 11.6 | 10.4 |
Current portion of contingent consideration | 0.4 | 15.1 |
Other accrued liabilities | 235.2 | 225.6 |
Other Liabilities, Current | $ 301.3 | $ 298.3 |
Consolidated Financial Statem_7
Consolidated Financial Statement Details - Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Income taxes – long-term | $ 316.6 | $ 305.6 |
Deferred revenue – long-term | 36.8 | 32.1 |
Other long-term liabilities | 100.3 | 106.9 |
Total other long-term liabilities | $ 453.7 | $ 444.6 |
Consolidated Financial Statem_8
Consolidated Financial Statement Details - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Income taxes paid | $ 180 | $ 34.4 | $ 158.6 |
Supplemental non-cash investing and financing activities: | |||
Equipment transfers from inventory to property, plant, and equipment | 302.4 | 186.5 | 210.6 |
Acquisition of property, plant, and equipment in accounts payable and accrued liabilities | 32.1 | 47.3 | 30.2 |
Deferred purchase and contingent consideration related to acquisitions | $ 6.5 | $ 4.2 | $ 86.6 |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Types and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 1,550.7 | $ 1,403.3 | $ 1,464 | $ 1,292.1 | $ 1,329.1 | $ 1,077.7 | $ 852.1 | $ 1,099.5 | $ 5,710.1 | $ 4,358.4 | $ 4,478.5 |
Instruments and accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 3,100.5 | 2,455.7 | 2,408.2 | ||||||||
Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,693.4 | 1,178.9 | 1,346.1 | ||||||||
Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 916.2 | 723.8 | 724.2 | ||||||||
U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 3,853.2 | 2,962.7 | 3,129.5 | ||||||||
U.S. | Instruments and accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 2,225.1 | 1,785.1 | 1,790.4 | ||||||||
U.S. | Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,024.8 | 695 | 830.7 | ||||||||
U.S. | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 603.3 | 482.6 | 508.4 | ||||||||
Outside of U.S. (“OUS”) | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,856.9 | 1,395.7 | 1,349 | ||||||||
Outside of U.S. (“OUS”) | Instruments and accessories | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 875.4 | 670.6 | 617.8 | ||||||||
Outside of U.S. (“OUS”) | Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 668.6 | 483.9 | 515.4 | ||||||||
Outside of U.S. (“OUS”) | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 312.9 | $ 241.2 | $ 215.8 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue recognized | $ 351 | $ 282 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Transaction price allocated to remaining performance obligations | $ 1,860 | |
Remaining performance obligations | 5 years |
Revenue - Summary of Contract A
Revenue - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 46.9 | $ 34.6 |
Deferred revenue | $ 414 | $ 382.3 |
Revenue - Sales-type and Operat
Revenue - Sales-type and Operating Lease Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Sales-type lease revenue | $ 220.3 | $ 154.4 | $ 81.6 |
Operating lease revenue (1) | $ 276.9 | $ 176.7 | $ 106.9 |
Leases - Lease Receivables (Det
Leases - Lease Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Capital Leased Assets [Line Items] | ||
Gross lease receivables | $ 404 | $ 286.1 |
Unearned income | (11.4) | (11.1) |
Subtotal | 392.6 | 275 |
Allowance for credit loss | (3.6) | (4.4) |
Net investment in sales-type leases | 389 | 270.6 |
Reported as: | ||
Net investment in sales-type leases | 389 | 270.6 |
Prepaid and other current assets | ||
Capital Leased Assets [Line Items] | ||
Net investment in sales-type leases | 110.3 | 81.1 |
Reported as: | ||
Net investment in sales-type leases | 110.3 | 81.1 |
Intangible and other assets, net | ||
Capital Leased Assets [Line Items] | ||
Net investment in sales-type leases | 278.7 | 189.5 |
Reported as: | ||
Net investment in sales-type leases | $ 278.7 | $ 189.5 |
Leases - Schedule of Contractua
Leases - Schedule of Contractual Maturities of Gross Lease Receivables (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 117.8 |
2023 | 102.8 |
2024 | 90.3 |
2025 | 61.1 |
2026 | 29.3 |
2027 and thereafter | 2.7 |
Total | $ 404 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 260.3 |
2023 | 223.8 |
2024 | 173.6 |
2025 | 121.8 |
2026 | 61.2 |
2027 and thereafter | 21.9 |
Total | $ 862.6 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 20.4 | $ 21 | $ 19.1 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Cash paid for leases that were included within operating cash outflows | $ 23.2 | $ 11 | $ 18.8 |
Right-of-use assets recognized related to new lease obligations | $ 30.6 | $ 9.6 | $ 21.5 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible and other assets, net (Right-of-use assets) | $ 74.4 | $ 63.9 |
Other accrued liabilities | 20.4 | 21.9 |
Other long-term liabilities | $ 66.6 | $ 58 |
Weighted-average remaining lease term | 4 years 10 months 24 days | 5 years 3 months 18 days |
Weighted-average discount rate | 2.50% | 3.20% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Intangible and other assets, net | Intangible and other assets, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Other Liabilities | ||
Total lease liabilities | $ 87 | $ 79.9 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
2022 | $ 22 | |
2023 | 21.9 | |
2024 | 16.6 | |
2025 | 14.5 | |
2026 | 12.1 | |
2027 and thereafter | 9.1 | |
Total lease payments | 96.2 | |
Less imputed interest | (9.2) | |
Other Liabilities | ||
Total operating lease liabilities | $ 87 | $ 79.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Jan. 05, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Deferred purchase and contingent consideration related to acquisitions | $ 6.5 | $ 4.2 | $ 86.6 | ||||
Payment of deferred purchase consideration | 21.9 | 85 | 22.6 | ||||
Goodwill | $ 343.6 | $ 336.7 | 343.6 | 336.7 | 307.2 | ||
Amortization of intangible assets | 27.4 | 49.8 | 43 | ||||
Chindex | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 66 | ||||||
Deferred purchase and contingent consideration related to acquisitions | 64.7 | ||||||
Cash payments | 1.3 | ||||||
Estimated total undiscounted contingent consideration | 81 | ||||||
Decrease in undiscounted expected contingent consideration | (1) | ||||||
Payment of deferred purchase consideration | 12.9 | 53.7 | 16.5 | ||||
Additional payment of deferred purchase consideration | 0 | $ 11.3 | $ 7.2 | ||||
Net tangible assets acquired | 1.7 | ||||||
Intangible assets acquired | 58.6 | ||||||
Goodwill | $ 5.7 | ||||||
Weighted average useful life | 2 years 10 months 24 days | ||||||
Chindex | Distribution rights and others | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 48.2 | ||||||
Chindex | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 10.4 | ||||||
Schölly | |||||||
Business Acquisition [Line Items] | |||||||
Total purchase consideration | $ 101.4 | ||||||
Cash payments | 34.4 | ||||||
Net tangible assets acquired | 11.5 | ||||||
Intangible assets acquired | 31 | ||||||
Goodwill | $ 58.9 | ||||||
Weighted average useful life | 6 years 7 months 6 days | ||||||
Deferred purchase consideration payments | $ 67 | 13.6 | $ 13.6 | ||||
Inventory acquired | 6.7 | ||||||
Cash acquired | $ 1.4 | ||||||
Goodwill adjustment | $ 0.8 | ||||||
Schölly | Manufacturing process technology | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 28 | ||||||
Schölly | Non-compete provision | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 3 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Summary of Changes in Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 336.7 | $ 307.2 |
Acquisition activity | 8 | 29.3 |
Translation and other | (1.1) | 0.2 |
Ending balance | $ 343.6 | $ 336.7 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 277.4 | $ 349.3 |
Accumulated Amortization | (206.9) | (271.9) |
Net Carrying Amount | 70.5 | 77.4 |
Patents and developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 219.3 | 198.4 |
Accumulated Amortization | (173.2) | (158.7) |
Net Carrying Amount | 46.1 | 39.7 |
Distribution rights and others | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26.3 | 91.9 |
Accumulated Amortization | (19.4) | (77.4) |
Net Carrying Amount | 6.9 | 14.5 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31.8 | 59 |
Accumulated Amortization | (14.3) | (35.8) |
Net Carrying Amount | $ 17.5 | $ 23.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule Of Estimated Future Amortization Expense Of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 23.6 | |
2023 | 19 | |
2024 | 15 | |
2025 | 9.6 | |
2026 | 2.7 | |
2027 and thereafter | 0.6 | |
Net Carrying Amount | $ 70.5 | $ 77.4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Other commitments | $ 1,510 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, remaining authorized amount | $ 1,600,000,000 | |||
Aggregate reduction in common stock and additional paid-in capital during stock repurchases | 0 | $ 8,000,000 | $ 15,000,000 | |
Amount charged to retained earnings during stock repurchases | 0 | $ 126,000,000 | $ 255,000,000 | |
Common stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 7,500,000,000 | |||
Stock repurchase program, increased to authorized amount | $ 2,000,000,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule Of Stock Repurchase Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||
Value of shares repurchased (in dollars per share) | $ 134.3 | $ 269.5 | |
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased (in shares) | 700 | 1,700 | |
Common Stock Repurchase Program | Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased (in shares) | 0 | 700 | 1,700 |
Average price per share (in dollars per share) | $ 0 | $ 183.84 | $ 160.45 |
Value of shares repurchased (in dollars per share) | $ 0 | $ 134.3 | $ 269.5 |
Stockholders' Equity - Componen
Stockholders' Equity - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 9,731.5 | ||
Other comprehensive income (loss) before reclassifications | (45.7) | $ 18.7 | |
Reclassified from accumulated other comprehensive income (loss) | (3.4) | (6.2) | |
Other comprehensive income (loss) | (49.1) | 12.5 | $ 25.7 |
Ending balance | 11,901.1 | 9,731.5 | |
Unrealized Gains (Losses) on Hedging Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2.9) | 0.7 | |
Other comprehensive income (loss) before reclassifications | 12.3 | (0.8) | |
Reclassified from accumulated other comprehensive income (loss) | (4.9) | (2.8) | |
Other comprehensive income (loss) | 7.4 | (3.6) | |
Ending balance | 4.5 | (2.9) | 0.7 |
Unrealized Gains (Losses) on Available-for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 29.5 | 20.4 | |
Other comprehensive income (loss) before reclassifications | (45.5) | 13.8 | |
Reclassified from accumulated other comprehensive income (loss) | 0 | (4.7) | |
Other comprehensive income (loss) | (45.5) | 9.1 | |
Ending balance | (16) | 29.5 | 20.4 |
Foreign Currency Translation Gains (Losses) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 4.7 | 0 | |
Other comprehensive income (loss) before reclassifications | (12.6) | 4.7 | |
Reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Other comprehensive income (loss) | (12.6) | 4.7 | |
Ending balance | (7.9) | 4.7 | 0 |
Employee Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (6.4) | (8.7) | |
Other comprehensive income (loss) before reclassifications | 0.1 | 1 | |
Reclassified from accumulated other comprehensive income (loss) | 1.5 | 1.3 | |
Other comprehensive income (loss) | 1.6 | 2.3 | |
Ending balance | (4.8) | (6.4) | (8.7) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 24.9 | 12.4 | |
Other comprehensive income (loss) | (49.1) | 12.5 | 25.7 |
Ending balance | $ (24.2) | $ 24.9 | $ 12.4 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2021USD ($)period$ / sharesshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018 | Mar. 31, 2021shares | Apr. 30, 2019shares | Mar. 31, 2019shares | Apr. 30, 2017shares | Mar. 31, 2017shares | Apr. 30, 2015shares | Oct. 31, 2009shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate intrinsic value of options exercised under stock option plans | $ | $ 613 | $ 598 | $ 512 | ||||||||
Cash received from option exercises and employee stock purchase plans | $ | 276 | 309 | 273 | ||||||||
Employee service share-based compensation, tax benefit from exercise of stock options | $ | $ 138 | ||||||||||
Number of options vested and expected to vest | shares | 11,500,000 | ||||||||||
Weighted average remaining contractual life of shares vested and expected to vest, years | 5 years | ||||||||||
Aggregate intrinsic value of shares vested and expected to vest | $ | $ 2,720 | ||||||||||
Options vested and expected to vest, weighted-average exercise price per share | $ / shares | $ 122.97 | ||||||||||
Restricted Stock Units (RSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Expected to vest (in shares) | shares | 4,300,000 | ||||||||||
Aggregate intrinsic value | $ | $ 1,560 | ||||||||||
Vested in period, aggregate fair value | $ | 578 | $ 478 | $ 433 | ||||||||
Total unrecognized compensation expense | $ | $ 616 | ||||||||||
Weighted average period unrecognized compensation expenses are expected to be recognized, years | 2 years 2 months 12 days | ||||||||||
Restricted Stock Units (RSUs) | Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based vesting period | 4 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
Annual Grant Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage vesting upon six months of service | 12.50% | ||||||||||
Percentage vesting per month after six months of service | 2.0833% | ||||||||||
Annual Grant Options | August Grant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage vesting at the end of one month | 14.5833% | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 2.0833% | ||||||||||
Annual Grant Options | February Grant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage vesting upon six months of service | 12.50% | ||||||||||
Percentage vesting per month after six months of service | 2.0833% | ||||||||||
Employee Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares were reserved for future issuance (shares) | shares | 2,800,000 | ||||||||||
Employee stock purchase plan, shares issued | shares | 500,000 | 500,000 | 600,000 | ||||||||
Employee stock purchase plan, value of shares issued | $ | $ 75.9 | $ 71.2 | $ 56.4 | ||||||||
Total unrecognized compensation expense | $ | $ 38 | ||||||||||
Weighted average period unrecognized compensation expenses are expected to be recognized, years | 1 year 6 months | ||||||||||
Nonvested Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total unrecognized compensation expense | $ | $ 122 | ||||||||||
Weighted average period unrecognized compensation expenses are expected to be recognized, years | 2 years 3 months 18 days | ||||||||||
Initial RSU grants | Director | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.3333% | ||||||||||
New Hire Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage vesting per month after one year | 2.0833% | ||||||||||
Percentage vesting upon one year of service | 25.00% | ||||||||||
2010 Incentive Award Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation, options, expiration term (in years) | 10 years | ||||||||||
Number of shares of common stock reserved for issuance (shares) | shares | 97,350,000 | 103,350,000 | |||||||||
Shares were reserved for future issuance (shares) | shares | 25,500,000 | ||||||||||
2010 Incentive Award Plan | Restricted Stock Units (RSUs) | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares were reserved for future issuance (shares) | shares | 11,100,000 | ||||||||||
2010 Incentive Award Plan | Annual Grant Options | August Grant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based vesting period | 3 years 6 months | ||||||||||
2010 Incentive Award Plan | Annual Grant Options | February Grant | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based vesting period | 4 years | ||||||||||
2009 Employment Commencement Incentive Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation, options, expiration term (in years) | 10 years | ||||||||||
Number of shares of common stock reserved for issuance (shares) | shares | 10,395,000 | 13,095,000 | |||||||||
2000 Non-Employee Directors' Stock Option Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation, options, expiration term (in years) | 10 years | ||||||||||
Number of shares of common stock reserved for issuance (shares) | shares | 1,350,000 | ||||||||||
2000 Non-Employee Directors' Stock Option Plan | Annual Grant Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share based vesting period | 1 year | ||||||||||
2000 Non-Employee Directors' Stock Option Plan | Initial Grant Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock options granted initial vesting period, years | 3 years | ||||||||||
Percentage vesting per month after one year | 2.7778% | ||||||||||
Percentage vesting upon one year of service | 33.3333% | ||||||||||
2000 Employee Stock Purchase Plan | Employee Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Minimum hours employed per week | 20 hours | ||||||||||
Minimum months employed per year | 5 months | ||||||||||
Maximum percentage of employees on stockholders to participate in ESPP | 5.00% | ||||||||||
Percentage of employee payroll deduction under the stock plan, maximum | 15.00% | ||||||||||
Duration for each offering period | 24 months | ||||||||||
Number of shorter purchase periods that each offering period is divided into | period | 4 | ||||||||||
Duration of each shorter offering period | 6 months | ||||||||||
Discount on fair market value on the offering date | 85.00% | ||||||||||
Discount on fair market value on the purchase date | 85.00% | ||||||||||
Period of look-back that could cause offering period to reset | 2 years | ||||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | shares | 18,270,945 | 22,770,945 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary Of Stock Option Activity Under All Stock Plans (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number Outstanding | |
Beginning balance (shares) | shares | 13.4 |
Options granted (shares) | shares | 1.1 |
Options exercised (shares) | shares | (2.7) |
Options forfeited/expired (shares) | shares | (0.1) |
Ending balance (shares) | shares | 11.7 |
Weighted-Average Exercise Price Per Share | |
Beginning balance (usd per share) | $ / shares | $ 101.69 |
Options granted (usd per share) | $ / shares | 294.53 |
Options exercised (usd per share) | $ / shares | 74.39 |
Options forfeited/expired (usd per share) | $ / shares | 198.34 |
Ending balance (usd per share) | $ / shares | $ 125.07 |
Share-Based Compensation - Outs
Share-Based Compensation - Outstanding and Exercisable Options Ranges (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Shares | shares | 11.7 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 125.07 |
Options Outstanding, Aggregate Intrinsic Value | $ | $ 2,737 |
Options Exercisable, Number of Shares | shares | 9.4 |
Options Exercisable, Weighted Average Remaining Contractual Life | 4 years 3 months 18 days |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 99.52 |
Options Exercisable, Aggregate Intrinsic Value | $ | $ 2,453 |
Share Price | $ 359.30 |
Exercise Price Range 1 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 29.91 |
Range of Exercise Prices, maximum (usd per share) | $ 49.34 |
Options Outstanding, Number of Shares | shares | 1.4 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 45.18 |
Options Exercisable, Number of Shares | shares | 1.4 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 45.18 |
Exercise Price Range 2 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 51.02 |
Range of Exercise Prices, maximum (usd per share) | $ 57.11 |
Options Outstanding, Number of Shares | shares | 1.4 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 6 months |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 54.39 |
Options Exercisable, Number of Shares | shares | 1.4 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 54.39 |
Exercise Price Range 3 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 57.48 |
Range of Exercise Prices, maximum (usd per share) | $ 59.46 |
Options Outstanding, Number of Shares | shares | 1.4 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 58.78 |
Options Exercisable, Number of Shares | shares | 1.4 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 58.78 |
Exercise Price Range 4 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 59.58 |
Range of Exercise Prices, maximum (usd per share) | $ 77 |
Options Outstanding, Number of Shares | shares | 1.3 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 69.07 |
Options Exercisable, Number of Shares | shares | 1.3 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 69.07 |
Exercise Price Range 5 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 77.04 |
Range of Exercise Prices, maximum (usd per share) | $ 139.52 |
Options Outstanding, Number of Shares | shares | 1.6 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 108.72 |
Options Exercisable, Number of Shares | shares | 1.6 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 108.24 |
Exercise Price Range 6 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 143.49 |
Range of Exercise Prices, maximum (usd per share) | $ 174.26 |
Options Outstanding, Number of Shares | shares | 1.4 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 168.88 |
Options Exercisable, Number of Shares | shares | 1.1 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 169.46 |
Exercise Price Range 7 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 175.53 |
Range of Exercise Prices, maximum (usd per share) | $ 182.83 |
Options Outstanding, Number of Shares | shares | 1.3 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 179.91 |
Options Exercisable, Number of Shares | shares | 0.7 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 180.38 |
Exercise Price Range 8 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 182.90 |
Range of Exercise Prices, maximum (usd per share) | $ 245.60 |
Options Outstanding, Number of Shares | shares | 1.3 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 234.88 |
Options Exercisable, Number of Shares | shares | 0.4 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 230.62 |
Exercise Price Range 9 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 249.83 |
Range of Exercise Prices, maximum (usd per share) | $ 341.16 |
Options Outstanding, Number of Shares | shares | 0.1 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 270.94 |
Options Exercisable, Number of Shares | shares | 0 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 251.85 |
Exercise Price Range 10 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum (usd per share) | 347.42 |
Range of Exercise Prices, maximum (usd per share) | $ 347.42 |
Options Outstanding, Number of Shares | shares | 0.5 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price Per Share (usd per share) | $ 347.42 |
Options Exercisable, Number of Shares | shares | 0.1 |
Options Exercisable, Weighted Average Exercise Price Per Share (usd per share) | $ 347.42 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | |||
Unvested beginning balance (shares) | 5.3 | ||
Granted (shares) | 1.9 | ||
Vested (shares) | (2.1) | ||
Canceled (shares) | (0.3) | ||
Unvested ending balance (shares) | 4.8 | 5.3 | |
Weighted-Average Grant Date Fair Value | |||
Unvested beginning balance (usd per share) | $ 163.30 | ||
Fair value at grant date (usd per share) | 256.52 | $ 181.89 | $ 180.45 |
Vested (usd per share) | 145.60 | ||
Canceled (usd per share) | 193.61 | ||
Unvested ending balance (usd per share) | $ 207.37 | $ 163.30 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | $ 456.8 | $ 398.7 | $ 337.9 |
Income tax effect | 93.7 | 81.4 | 70.2 |
Share-based compensation expense after income taxes | 363.1 | 317.3 | 267.7 |
Total cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 91.1 | 82.9 | 67 |
Total cost of sales | Cost of sales—products | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 68.9 | 58.9 | 46.6 |
Total cost of sales | Cost of sales—services | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 22.2 | 24 | 20.4 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 231.6 | 202.2 | 169.5 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | $ 134.1 | $ 113.6 | $ 101.4 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule Of Estimated Fair Value Of Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
STOCK OPTION PLANS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.80% | 0.60% | 2.00% |
Expected term (years) | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Volatility (percent) | 32.00% | 32.00% | 30.00% |
Weighted average fair value at grant date (usd per share) | $ 78.23 | $ 54.34 | $ 47.51 |
EMPLOYEE STOCK PURCHASE PLAN | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.10% | 0.90% | 2.10% |
Expected term (years) | 1 year 2 months 12 days | 1 year 2 months 12 days | 1 year 2 months 12 days |
Volatility (percent) | 29.00% | 30.00% | 29.00% |
Weighted average fair value at grant date (usd per share) | $ 89.98 | $ 57.29 | $ 49.66 |
RESTRICTED STOCK UNITS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value at grant date (usd per share) | $ 256.52 | $ 181.89 | $ 180.45 |
Income Taxes - Schedule Of Inco
Income Taxes - Schedule Of Income Before Provision For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 1,298.7 | $ 926.8 | $ 1,053.7 |
Foreign | 591.6 | 280.2 | 448.5 |
Income before taxes | $ 1,890.3 | $ 1,207 | $ 1,502.2 |
Income Taxes - Schedule Of Prov
Income Taxes - Schedule Of Provision For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current income taxes, Federal | $ 158.8 | $ 34.2 | $ 82 |
Current income taxes, State | 17.3 | 21.5 | 26.5 |
Current income taxes, Foreign | 50.1 | 26.9 | 18 |
Current income taxes | 226.2 | 82.6 | 126.5 |
Deferred income taxes, Federal | (21.4) | 23.8 | 8.5 |
Deferred income taxes, State | 0.5 | 1.6 | 3.2 |
Deferred income taxes, Foreign | (43.1) | 32.2 | (17.8) |
Deferred income taxes | (64) | 57.6 | (6.1) |
Total income tax expense | $ 162.2 | $ 140.2 | $ 120.4 |
Income Taxes - Schedule Of In_2
Income Taxes - Schedule Of Income Tax Difference From Statutory Rate (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2019 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||||||||||
Federal tax at statutory rate | $ 397 | $ 253.5 | $ 315.5 | |||||||||
State taxes, net of federal benefits | 33.1 | 23.1 | 29.7 | |||||||||
Foreign rate differential | (54.3) | (19.3) | (56.2) | |||||||||
U.S. tax on foreign earnings | 40.1 | 29.3 | 55 | |||||||||
Research and development credit | (30.7) | (37.1) | (32.7) | |||||||||
Share-based compensation not benefited | 17.8 | 14.3 | 13.5 | |||||||||
Unrecognized tax benefit related to share-based compensation | 13.6 | 39.3 | 0 | |||||||||
Reversal of unrecognized tax benefits | (3) | (4) | (8.4) | |||||||||
Excess tax benefits related to share-based compensation arrangements | $ (26.9) | $ (41.9) | $ (43.6) | $ (73.4) | $ (21.3) | $ (47.9) | $ (31.6) | $ (65.4) | (185.8) | (166.2) | (146.5) | |
Deferred tax re-measurement | $ 51.3 | (66.4) | 0 | (51.3) | ||||||||
Other | 0.8 | 7.3 | 1.8 | |||||||||
Total income tax expense | $ 162.2 | $ 140.2 | $ 120.4 |
Income Taxes - Schedule Of Defe
Income Taxes - Schedule Of Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating losses | $ 9.7 | $ 27.7 |
Share-based compensation expense | 110.9 | 101.1 |
Lease liabilities | 15.2 | 12 |
Expenses deducted in later years for tax purposes | 38.4 | 29.3 |
Intangible assets | 373.9 | 321.8 |
Research and other credits | 98.5 | 76.3 |
Other | 5.3 | 0 |
Gross deferred tax assets | 651.9 | 568.2 |
Valuation allowance | (104.6) | (81.4) |
Deferred tax assets | 547.3 | 486.8 |
Deferred tax liabilities: | ||
Property, plant, and equipment | (79.4) | (91.1) |
Right-of-use assets | (12.3) | (8.4) |
Intangible assets | (9.7) | (10.1) |
Other | (5.1) | (13.2) |
Deferred tax liabilities | 106.5 | 122.8 |
Net deferred tax assets | $ 440.8 | $ 364 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Holiday [Line Items] | |||||
Valuation allowance | $ (104.6) | $ (81.4) | |||
Deferred tax remeasurement due to Swiss Tax Reform | $ 51.3 | (66.4) | 0 | $ (51.3) | |
Gross interest related to unrecognized tax benefits accrued | 14.9 | 11 | 2.9 | ||
Total gross unrecognized tax benefits | 222.5 | 176.3 | $ 96.7 | $ 78.8 | |
Net increase in gross unrecognized tax benefits | 39.3 | ||||
Interest and penalties related to unrecognized tax benefits accrued | $ 13.6 | ||||
Swiss Federal Tax Administration (FTA) | |||||
Income Tax Holiday [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 23.9 | ||||
State and Local Jurisdiction | |||||
Income Tax Holiday [Line Items] | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 207.3 |
Income Taxes - Schedule Of Gros
Income Taxes - Schedule Of Gross Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 176.3 | $ 96.7 | $ 78.8 |
Increases related to tax positions taken during the current year | 40.6 | 40.1 | 26.5 |
Increases related to tax positions taken during a prior year | 11.2 | 46.1 | 1.2 |
Decreases related to tax positions taken during a prior year | 1.3 | 0 | 0 |
Decreases related to settlements with tax authorities | (0.2) | (0.5) | (3.8) |
Decreases related to expiration of statute of limitations | (4.1) | (6.1) | (6) |
Ending balance | $ 222.5 | $ 176.3 | $ 96.7 |
Net Income Per Share - Computat
Net Income Per Share - Computation Of Basic And Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Intuitive Surgical, Inc. | $ 380.6 | $ 380.5 | $ 517.2 | $ 426.3 | $ 365.2 | $ 313.9 | $ 68 | $ 313.5 | $ 1,704.6 | $ 1,060.6 | $ 1,379.3 |
Weighted-average shares outstanding basic (shares) | 356.1 | 351.1 | 346.2 | ||||||||
Add: dilutive effect of potential common shares | 9.7 | 9.9 | 12.2 | ||||||||
Weighted-average shares used in computing diluted net income per share (shares) | 365.8 | 361 | 358.4 | ||||||||
Basic net income per share (usd per share) | $ 1.07 | $ 1.07 | $ 1.45 | $ 1.20 | $ 3.11 | $ 2.68 | $ 0.58 | $ 2.69 | $ 4.79 | $ 3.02 | $ 3.98 |
Diluted net income per share (usd per share) | $ 1.03 | $ 1.04 | $ 1.42 | $ 1.17 | $ 3.02 | $ 2.60 | $ 0.57 | $ 2.62 | $ 4.66 | $ 2.94 | $ 3.85 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Employee stock options excluded from computation of diluted net income per share | 0.8 | 1.9 | 2 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Retirement Benefits [Abstract] | |
Maximum rate of employees' contribution to 401(k) plan | 100.00% |
Employer match percentage | 200.00% |
Employer matching contributions, per person, per year | $ 1,500 |
Selected Quarterly Data - Sched
Selected Quarterly Data - Schedule Of Selected Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Total revenue | $ 1,550.7 | $ 1,403.3 | $ 1,464 | $ 1,292.1 | $ 1,329.1 | $ 1,077.7 | $ 852.1 | $ 1,099.5 | $ 5,710.1 | $ 4,358.4 | $ 4,478.5 |
Gross profit | 1,060.8 | 971.4 | 1,023.7 | 902.6 | 895.8 | 724.3 | 502.9 | 738.2 | 3,958.5 | 2,861.2 | 3,110.2 |
Net income | $ 380.6 | $ 380.5 | $ 517.2 | $ 426.3 | $ 365.2 | $ 313.9 | $ 68 | $ 313.5 | $ 1,704.6 | $ 1,060.6 | $ 1,379.3 |
Basic net income per share (usd per share) | $ 1.07 | $ 1.07 | $ 1.45 | $ 1.20 | $ 3.11 | $ 2.68 | $ 0.58 | $ 2.69 | $ 4.79 | $ 3.02 | $ 3.98 |
Diluted net income per share (usd per share) | $ 1.03 | $ 1.04 | $ 1.42 | $ 1.17 | $ 3.02 | $ 2.60 | $ 0.57 | $ 2.62 | $ 4.66 | $ 2.94 | $ 3.85 |
Excess tax benefits related to share-based compensation arrangements | $ 26.9 | $ 41.9 | $ 43.6 | $ 73.4 | $ 21.3 | $ 47.9 | $ 31.6 | $ 65.4 | $ 185.8 | $ 166.2 | $ 146.5 |
One-time tax benefit related to Swiss intangible assets deferred tax asset remeasurement | 0 | 66.4 | 0 | 0 | |||||||
Discrete tax expense arising from the conclusion of a tax matter | 0 | (11.1) | 0 | 0 | 0 | 0 | (36.8) | 0 | |||
Includes pre-tax litigation (charges) | (2.9) | (4.6) | (4.4) | 1.4 | |||||||
Includes charitable foundation contribution expense | $ (30) | $ 0 | $ 0 | $ 0 | $ (25) | $ 0 | $ 0 | $ 0 |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - Sales returns and allowances - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 15.5 | $ 11.7 | $ 11.2 |
Additions | 41.7 | 39.7 | 43.2 |
Deductions | (44.1) | (35.9) | (42.7) |
Balance at End of Year | $ 13.1 | $ 15.5 | $ 11.7 |