Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018			2017
Property, plant, and equipment, net:
Land	$	184.6		$	174.8
Building and building/leasehold improvements	266.2			230.5
Machinery and equipment	280.1			224.8
Operating lease assets	150.2			66.1
Computer and office equipment	52.6			44.8
Capitalized software	157.8			135.6
Construction-in-process	156.7			83.5
Gross property, plant, and equipment	1,248.2			960.1
Less: Accumulated depreciation*	(436.2		)	(347.0		)
Total property, plant, and equipment, net	$	812.0		$	613.1

*Accumulated depreciation associated with operating lease assets	$	(32.1	)	$	(13.8	)

Revenue Disaggregated by Types and Geography

The following table presents revenue disaggregated by types and geography (in millions):



	Years Ended December 31,
U.S.	2018		2017		2016
Instruments and accessories	$	1,485.2	$	1,263.1	$	1,077.3
Systems	692.2		603.5		501.3
Services	456.1		419.2		377.8
Total U.S. revenue	$	2,633.5	$	2,285.8	$	1,956.4

Outside of U.S. (“OUS”)
Instruments and accessories	$	476.8	$	373.8	$	318.5
Systems	434.9		324.9		298.7
Services	179.0		153.7		132.9
Total OUS revenue	$	1,090.7	$	852.4	$	750.1

Total
Instruments and accessories	$	1,962.0	$	1,636.9	$	1,395.8
Systems	1,127.1		928.4		800.0
Services	635.1		572.9		510.7
Total revenue	$	3,724.2	$	3,138.2	$	2,706.5

Summary of Contract Assets and Liabilities

The following information summarizes the Company’s contract assets and liabilities (in millions):



	As of
	December 31, 2018		December 31, 2017
Contract assets	$	12.4	$	8.3
Deferred revenue	$	327.3	$	268.6

Schedule of Impact of Adopting New Standard

Adoption of the standard using the full retrospective method also require the Company to restate certain previously reported results, including the impact to provision for income taxes. The adjustments to the Consolidated Statements of Comprehensive Income are as follows (in millions, except per share amounts):



	Fiscal 2017							Fiscal 2016
	As Previously Reported		Adjustments			As Restated		As Previously Reported		Adjustments			As Restated
Revenue:
Product	$	2,547.1	$	18.2		$	2,565.3	$	2,187.4	$	8.4		$	2,195.8
Service	581.8		(8.9		)	572.9		517.0		(6.3		)	510.7
Total revenue	3,128.9		9.3			3,138.2		2,704.4		2.1			2,706.5
Cost of revenue:
Product	754.9		1.4			756.3		663.3		(0.7		)	662.6
Service	179.9		—			179.9		151.0		—			151.0
Total cost of revenue	934.8		1.4			936.2		814.3		(0.7		)	813.6
Gross profit	2,194.1		7.9			2,202.0		1,890.1		2.8			1,892.9
Operating expenses:
Selling, general and administrative	810.9		(0.4		)	810.5		705.3		(1.7		)	703.6
Research and development	328.6		—			328.6		239.6		—			239.6
Total operating expenses	1,139.5		(0.4		)	1,139.1		944.9		(1.7		)	943.2
Income from operations	1,054.6		8.3			1,062.9		945.2		4.5			949.7
Interest and other income, net	41.9		—			41.9		35.6		—			35.6
Income before taxes	1,096.5		8.3			1,104.8		980.8		4.5			985.3
Income tax expense	436.5		(2.6		)	433.9		244.9		2.1			247.0
Net income attributable to Intuitive Surgical, Inc.	$	660.0	$	10.9		$	670.9	$	735.9	$	2.4		$	738.3
Net income per share attributable to Intuitive Surgical, Inc.:
Basic	$	5.91	$	0.10		$	6.01	$	6.40	$	0.03		$	6.43
Diluted	$	5.67	$	0.10		$	5.77	$	6.24	$	0.02		$	6.26
Total comprehensive income attributable to Intuitive Surgical, Inc.	$	653.4	$	10.9		$	664.3	$	736.5	$	2.4		$	738.9

The adjustments to the Consolidated Statement of Financial Position are as follows (in millions):



	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
Intangible 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