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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended
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Jun. 30, 2018
Accounting Policies [Abstract] |
Schedule of Impact of Adopting New Standard | Adoption of the standard using the full retrospective method also required the Company to restate certain previously reported results, including the impact to provision for income taxes. The adjustments to the unaudited Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2017, are as follows (in millions, except per share amounts):
| Three Months Ended June 30, 2017 |  | Six Months Ended June 30, 2017
| As Previously Reported |  | Adjustments |  | As Restated |  | As Previously Reported |  | Adjustments |  | As Restated
Revenue: |  |  |  |  |  |  |  |  |  |  |
Product | $ | 614.2 |  |  | $ | 4.7 |  |  | $ | 618.9 |  |  | $ | 1,148.2 |  |  | $ | 12.3 |  |  | $ | 1,160.5 |
Service | 142.0 |  |  | (2.1 | ) |  | 139.9 |  |  | 282.2 |  |  | (4.3 | ) |  | 277.9 |
Total revenue | 756.2 |  |  | 2.6 |  |  | 758.8 |  |  | 1,430.4 |  |  | 8.0 |  |  | 1,438.4 |
Cost of revenue: |  |  |  |  |  |  |  |  |  |  |
Product | 184.3 |  |  | 0.4 |  |  | 184.7 |  |  | 348.1 |  |  | 2.1 |  |  | 350.2 |
Service | 44.0 |  |  | — |  |  | 44.0 |  |  | 88.3 |  |  | — |  |  | 88.3 |
Total cost of revenue | 228.3 |  |  | 0.4 |  |  | 228.7 |  |  | 436.4 |  |  | 2.1 |  |  | 438.5 |
Gross profit | 527.9 |  |  | 2.2 |  |  | 530.1 |  |  | 994.0 |  |  | 5.9 |  |  | 999.9 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative | 185.8 |  |  | (0.2 | ) |  | 185.6 |  |  | 386.9 |  |  | 1.6 |  |  | 388.5 |
Research and development | 84.6 |  |  | — |  |  | 84.6 |  |  | 158.1 |  |  | — |  |  | 158.1 |
Total operating expenses | 270.4 |  |  | (0.2 | ) |  | 270.2 |  |  | 545.0 |  |  | 1.6 |  |  | 546.6 |
Income from operations | 257.5 |  |  | 2.4 |  |  | 259.9 |  |  | 449.0 |  |  | 4.3 |  |  | 453.3 |
Interest and other income, net | 10.1 |  |  | — |  |  | 10.1 |  |  | 18.8 |  |  | — |  |  | 18.8 |
Income before taxes | 267.6 |  |  | 2.4 |  |  | 270.0 |  |  | 467.8 |  |  | 4.3 |  |  | 472.1 |
Income tax expense | 46.1 |  |  | 0.9 |  |  | 47.0 |  |  | 66.5 |  |  | 1.8 |  |  | 68.3 |
Net income attributable to Intuitive Surgical, Inc. | $ | 221.5 |  |  | $ | 1.5 |  |  | $ | 223.0 |  |  | $ | 401.3 |  |  | $ | 2.5 |  |  | $ | 403.8 |
Net income per share attributable to Intuitive Surgical, Inc.: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 2.00 |  |  | $ | 0.01 |  |  | $ | 2.01 |  |  | $ | 3.60 |  |  | $ | 0.02 |  |  | $ | 3.62 |
Diluted | $ | 1.92 |  |  | $ | 0.02 |  |  | $ | 1.94 |  |  | $ | 3.47 |  |  | $ | 0.03 |  |  | $ | 3.50 |
Total comprehensive income attributable to Intuitive Surgical, Inc. | $ | 219.7 |  |  | $ | 1.5 |  |  | $ | 221.2 |  |  | $ | 400.4 |  |  | $ | 2.5 |  |  | $ | 402.9 |
Selected Condensed Consolidated Statements of Balance Sheet line items, which reflect the impact of adopting the new standard, are as follow (in millions) as of December 31, 2017:
| December 31, 2017
| As Previously Reported |  | Adjustments |  | As Restated
ASSETS |  |  |  |  |
Accounts receivable, net | $ | 511.9 |  |  | $ | (4.0 | ) |  | $ | 507.9 |
Prepaids and other current assets | $ | 97.2 |  |  | $ | 2.0 |  |  | $ | 99.2 |
Deferred tax assets | $ | 87.3 |  |  | $ | (15.3 | ) |  | $ | 72.0 |
Intangibles and other assets, net | $ | 159.7 |  |  | $ | 36.1 |  |  | $ | 195.8 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
Deferred revenue | $ | 284.5 |  |  | $ | (40.7 | ) |  | $ | 243.8 |
Other accrued liabilities | $ | 169.5 |  |  | $ | (0.6 | ) |  | $ | 168.9 |
Other long-term liabilities | $ | 327.1 |  |  | $ | 6.5 |  |  | $ | 333.6 |
Retained earnings | $ | 61.4 |  |  | $ | 53.6 |  |  | $ | 115.0 |
Revenue Disaggregated by Types and Geography | The following table presents revenue disaggregated by types and geography (in millions):
| Three Months Ended June 30, |  | Six Months Ended June 30,
U.S. | 2018 |  | 2017 |  | 2018 |  | 2017
Instruments and accessories | $ | 360.3 |  |  | $ | 309.4 |  |  | $ | 697.9 |  |  | $ | 597.0 |
Systems | 172.4 |  |  | 141.3 |  |  | 296.4 |  |  | 246.7 |
Services | 112.0 |  |  | 101.9 |  |  | 222.8 |  |  | 203.7 |
Total U.S. revenue | $ | 644.7 |  |  | $ | 552.6 |  |  | $ | 1,217.1 |  |  | $ | 1,047.4 |
Outside of U.S. (“OUS”) |  |  |  |  |  |  |
Instruments and accessories | $ | 115.8 |  |  | $ | 88.4 |  |  | $ | 238.5 |  |  | $ | 181.6 |
Systems | 105.0 |  |  | 79.8 |  |  | 215.5 |  |  | 135.2 |
Services | 43.8 |  |  | 38.0 |  |  | 85.7 |  |  | 74.2 |
Total OUS revenue | $ | 264.6 |  |  | $ | 206.2 |  |  | $ | 539.7 |  |  | $ | 391.0 |
Total |  |  |  |  |  |  |
Instruments and accessories | $ | 476.1 |  |  | $ | 397.8 |  |  | $ | 936.4 |  |  | $ | 778.6 |
Systems | 277.4 |  |  | 221.1 |  |  | 511.9 |  |  | 381.9 |
Services | 155.8 |  |  | 139.9 |  |  | 308.5 |  |  | 277.9 |
Total revenue | $ | 909.3 |  |  | $ | 758.8 |  |  | $ | 1,756.8 |  |  | $ | 1,438.4 |
Summary of Contract Assets and Liabilities | The following information summarizes the Company’s contract assets and liabilities (in millions):
| As of
| June 30, 2018 |  | December 31, 2017
Contract assets | $ | 11.1 |  |  | $ | 8.3 |
Deferred revenue | $ | 302.2 |  |  | $ | 268.6 |

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