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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2010	Oct. 08, 2010
Document and Entity Information
Trading Symbol	isrg
Entity Registrant Name	INTUITIVE SURGICAL INC
Entity Central Index Key	0001035267
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		39,293,400
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2010
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2010	Dec. 31, 2009
ASSETS
Cash and cash equivalents	$ 382.0	$ 221.4
Short-term investments	598.9	334.0
Accounts receivable, net	207.9	205.4
Inventory	85.0	57.6
Prepaids and other assets	20.3	20.9
Deferred tax assets	7.4	7.3
Total current assets	1,301.5	846.6
Property, plant and equipment, net	156.6	125.7
Long-term investments	639.7	616.6
Long-term deferred tax assets	65.2	53.4
Intangible assets, net	70.6	56.2
Goodwill	116.9	110.7
Other assets	1.3	0.5
Total assets	2,351.8	1,809.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	35.7	27.6
Accrued compensation and employee benefits	47.2	49.8
Deferred revenue	116.8	99.4
Other accrued liabilities	67.6	26.0
Total current liabilities	267.3	202.8
Long-term liabilities	76.2	69.6
Total liabilities	$ 343.5	$ 272.4
Commitments and contingencies
Stockholders' equity:
Preferred stock, 2.5 shares authorized, $0.001 par value, issuable in series; no shares issued and outstanding as of September 30, 2010 and December 31, 2009
Common stock, 100.0 shares authorized, $0.001 par value, 39.3 and 38.5 shares issued and outstanding as of September 30, 2010 and December 31, 2009, respectively
Additional paid-in capital	1,287.5	1,024.3
Retained earnings	720.1	511.7
Accumulated other comprehensive income	0.7	1.3
Total stockholders' equity	2,008.3	1,537.3
Total liabilities and stockholders' equity	$ 2,351.8	$ 1,809.7

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Sep. 30, 2010	Dec. 31, 2009
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, shares authorized	2.5	2.5
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares issued	0.0	0.0
Preferred stock, shares outstanding	0.0	0.0
Common stock, shares authorized	100.0	100.0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	39.3	38.5
Common stock, shares outstanding	39.3	38.5

CONDENSED CONSOLIDATED STATEMENTS OF INCOME shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009 USD ($) $ / shares shares	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009 USD ($) $ / shares shares
Revenue:
Product	$ 287.1	$ 236.3	$ 860.4	$ 604.7
Service	57.3	43.8	163.3	124.4
Total revenue	344.4	280.1	1,023.7	729.1
Cost of revenue:
Product	72.8	65.3	213.5	166.1
Service	21.0	15.8	62.3	45.1
Total cost of revenue	93.8	81.1	275.8	211.2
Gross profit	250.6	199.0	747.9	517.9
Operating expenses:
Selling, general, and administrative	91.6	69.9	263.0	199.6
Research and development	26.9	24.6	83.4	69.3
Total operating expenses	118.5	94.5	346.4	268.9
Income from operations	132.1	104.5	401.5	249.0
Interest and other income, net	5.0	4.3	13.6	14.5
Income before taxes	137.1	108.8	415.1	263.5
Income tax expense	50.5	44.3	154.5	108.5
Net income	$ 86.6	$ 64.5	$ 260.6	$ 155.0
Earnings per share:
Basic \| (per share)	$ 2.2	$ 1.69	$ 6.65	$ 4.05
Diluted \| (per share)	$ 2.14	$ 1.64	$ 6.45	$ 3.97
Shares used in computing earnings per share:
Basic \| shares	39.4	38.1	39.2	38.3
Diluted \| shares	40.5	39.2	40.4	39.0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009
Operating Activities:
Net income	$ 260.6	$ 155.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	17.4	14.2
Amortization of intangible assets	12.2	11.7
Deferred income taxes	(11.8)	(15.5)
Income tax benefits from employee stock option plans	49.5	8.7
Excess tax benefit from stock-based compensation	(56.3)	(9.2)
Share-based compensation expense	87.5	71.9
Changes in operating assets and liabilities:
Accounts receivable	(2.4)	(16.4)
Inventory	(27.4)	6.8
Prepaids and other assets	(0.3)	(6.9)
Accounts payable	8.2	4.4
Deferred revenue	17.2	12.4
Other accrued liabilities	49.7	32.3
Net cash provided by operating activities	404.1	269.4
Investing Activities:
Purchase of investments	(1,032.2)	(523.2)
Proceeds from sales and maturities of investments	745.4	417.7
Purchase of property and equipment and acquisition of intellectual property	(86.6)	(45.7)
Net cash used in investing activities	(373.4)	(151.2)
Financing Activities:
Proceeds from issuance of common stock, net	132.9	33.7
Excess tax benefit from stock-based compensation	56.3	9.2
Repurchase and retirement of common stock	(58.9)	(150.0)
Net cash provided by (used in) financing activities	130.3	(107.1)
Effect of exchange rate changes on cash and cash equivalents	(0.4)	0.4
Net increase in cash and cash equivalents	160.6	11.5
Cash and cash equivalents, beginning of period	221.4	194.6
Cash and cash equivalents, end of period	$ 382.0	$ 206.1

DESCRIPTION OF BUSINESS	9 Months Ended
DESCRIPTION OF BUSINESS	Sep. 30, 2010
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS	NOTE 1. DESCRIPTION OF BUSINESS Intuitive Surgical, Inc. designs, manufactures, and markets the da Vinci Surgical System, which is an advanced surgical system that the Company believes represents a new generation of surgery. The da Vinci Surgical System consists of a surgeon's console or consoles, a patient-side cart, a high performance vision system and proprietary "wristed" instruments. The da Vinci Surgical System seamlessly translates the surgeon's natural hand movements on instrument controls at the console into corresponding micro-movements of instruments positioned inside the patient through small puncture incisions, or ports. By placing computer-enhanced technology between the surgeon and the patient, the da Vinci Surgical System enables higher value surgical procedures to patients through increased effectiveness and reduced invasiven ess.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements ("financial statements") of Intuitive Surgical, Inc. and its wholly-owned subsidiaries have been prepared on a consistent basis with the December 31, 2009 audited Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"), and, therefore, omit certain information and footnote disclosure necessary to present the statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). These financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto incl uded in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, which was filed on January 29, 2010. The results of operations for the first nine months of fiscal 2010 are not indicative of the results to be expected for the entire fiscal year or any future periods.

New Accounting Standards Recently Adopted

Revenue Recognition for Arrangements with Multiple Deliverables

The Company's revenue consists of product revenue resulting from the sales of systems, instruments and accessories, and service revenue. The Company recognizes revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement exists; delivery has occurred or service has been rendered; the price is fixed or determinable; and collectibility is reasonably assured. The Company's revenue recognition policy generally results in revenue recognition at the following points:

•

System sales. For system sales directly to end customers, revenue is recognized when acceptance occurs, which is deemed to have occurred upon the receipt by the Company of a form executed by the customer acknowledging delivery and/or installation. For system sales through distributors, revenue is recognized upon transfer of title and risk of loss, which is generally at the time of shipment. Distributors do not have price protection rights. The Company's system contracts do not allow rights of return. The Company's system revenue contains a software component. Since the da Vinci System's software and non-software elements function together to deliver the System's essential functionality, they are considered to be one deliverable that is excluded from the software revenue recognition guidance.

•

Instruments and accessories. Revenue from sales of instruments and accessories is recognized when the product has been shipped. The Company records an allowance on instruments and accessories sales returns based on historical returns experience.

•

Service. Service contract revenue is recognized ratably over the term of the service period. Revenue related to services performed on a time-and-materials basis is recognized when it is earned and billable.

The Company determined that its multiple-element arrangements are generally comprised of the following elements that would qualify as separate units of accounting: system sales, service contracts and instruments and accessories sales.

In September 2009, the Financial Accounting Standards Board ("FASB") amended the accounting standards related to revenue recognition for arrangements with multiple deliverables and arrangements that include software elements ("new accounting principles"). The new accounting principles permit prospective or retrospective adoption, and the Company elected prospective adoption at the beginning of the first quarter of 2010.

For multiple-element arrangements (which are generally comprised of system sales and service contracts) entered into prior to January 1, 2010, revenue was allocated to each element based on the relative fair value of each element. Fair value is generally determined by vendor specific objective evidence (VSOE) which is based on the price charged when each element is sold separately. The Company's systems sales generally include a first year service obligation. The Company typically does not sell the systems on a stand-alone basis and therefore does not have VSOE for its systems. The Company has established VSOE for services. When the fair value of a delivered element had not been established, but fair value existed for the undelivered elements, prior to January 1, 2010, the Company used the residual method to recognize revenue. Under the residual method, the fair valu e of the undelivered elements was deferred and the remaining portion of the arrangement fee was allocated to the delivered elements.

Subsequent to the adoption of the new revenue accounting principles, for multiple-element arrangements entered into on or after January 1, 2010, revenue is allocated to each element based on their relative selling prices. Relative selling prices are based first on VSOE, then on third-party evidence of selling price (TPE) when VSOE does not exist, and then on estimated selling price (ESP) when VSOE and TPE do not exist.

Because the Company has neither VSOE nor TPE for its systems, the allocation of revenue has been based on the Company's ESPs. The objective of ESP is to determine the price at which the Company would transact a sale if the product was sold on a stand-alone basis. The Company determines ESP for its systems by considering multiple factors including, but not limited to, features and functionality of the system, geographies, type of customer, and market conditions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates.

Had the new accounting guidance been applied to revenue at the beginning of 2009, the resultant revenue for the year ended December 31, 2009 would have been substantially the same. Had the new accounting guidance been applied to the three and nine months ended September 30, 2009, system revenue for the three months ended September 30, 2009 would have been approximately $1.5 million lower, while system revenue for the nine months ended September 30, 2009 would have been approximately $1.6 million higher.

Fair Value Measurements Disclosures

Effective January 1, 2010, the Company adopted revised guidance intended to improve disclosures related to fair value measurements, issued by FASB. This guidance requires us to separate information about significant transfers in and out of Level 1 and Level 2 and the reason for such transfers, and also requires information related to purchases, sales, issuances, and settlements information of Level 3 financial assets to be included in the rollforward of activity. The guidance also requires us to provide certain disaggregated information on the fair value of financial assets and requires us to disclose valuation techniques and inputs used for both recurring and nonrecurring fair value measurements of our Level 2 and Level 3 financial assets. The Company's policy is to recognize transfers into or out of levels as of the actual date of the event or change in circumstances that ca used the transfer.

INVESTMENTS

9 Months Ended

Sep. 30, 2010

INVESTMENTS

INVESTMENTS

NOTE 3. INVESTMENTS

The following tables summarize the Company's cash, cash equivalents and investments as of September 30, 2010 and December 31, 2009 (in millions):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2010
Cash and cash equivalents:
Cash	$	35.0	$	—	$	—		$	35.0
Cash equivalents		347.0		—		—			347.0

Total cash and cash equivalents	$	382.0	$	—	$	—		$	382.0

Available for sale investments:
Short-term
Commercial paper	$	62.5	$	—	$	—		$	62.5
Municipal notes		110.7		0.5		—			111.2
U.S. corporate debt		164.9		0.8		—			165.7
U.S. treasuries		103.3		—		—			103.3
U.S. government agencies		155.9		0.3		—			156.2

Total short-term	$	597.3	$	1.6	$	—		$	598.9

Long-term
Municipal notes	$	109.8	$	0.6	$	(4.3	)	$	106.1
U.S. corporate debt		327.8		4.1		—			331.9
U.S. treasuries		16.0		0.2		—			16.2
U.S. government agencies		169.0		0.6		—			169.6
Non-U.S. government securities		15.7		0.2		—			15.9

Total long-term	$	638.3	$	5.7	$	(4.3	)	$	639.7


Total cash, cash equivalents and available for sale investments:	$	1,617.6	$	7.3	$	(4.3	)	$	1,620.6


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2009
Cash and cash equivalents:
Cash	$	28.6	$	—	$	—		$	28.6
Cash equivalents		192.8		—		—			192.8

Total cash and cash equivalents	$	221.4	$	—	$	—		$	221.4

Available for sale investments:
Short-term
Commercial paper	$	13.1	$	—	$	—		$	13.1
Municipal notes		21.3		0.2		—			21.5
U.S. corporate debt		150.5		1.3		—			151.8
U.S. treasuries		31.6		0.2		—			31.8
U.S. government agencies		45.5		0.5		—			46.0

Total short-term	$	262.0	$	2.2	$	—		$	264.2

Long-term
Municipal notes	$	161.0	$	1.5	$	(4.5	)	$	158.0
U.S. corporate debt		222.5		2.1		(0.1	)		224.5
U.S. treasuries		29.5		—		(0.2	)		29.3
U.S. government agencies		204.6		0.6		(0.4	)		204.8

Total long-term	$	617.6	$	4.2	$	(5.2	)	$	616.6

Total cash, cash equivalents and available for sale investments	$	1,101.0	$	6.4	$	(5.2	)	$	1,102.2
Other securities (included in short-term investments):
Trading securities, auction rate securities	$	62.2	$	—	$	—		$	62.2
Put option		7.6		—		—			7.6

Total cash, cash equivalents and investments	$	1,170.8	$	6.4	$	(5.2	)	$	1,172.0

The following table summarizes the maturities of the Company's cash equivalents and available-for-sale investments at September 30, 2010 (in millions):


	Amortized Cost		Fair Value
Mature in less than one year	$	944.2	$	945.9
Mature in one to five years		615.5		621.1
Mature in more than five years		22.9		18.6

Total	$	1,582.6	$	1,585.6

During the three and nine months ended September 30, 2010 and 2009, realized gains or losses recognized on the sale of investments were not significant. As of September 30, 2010 and December 31, 2009, net unrealized gains on available-for-sale securities, net of tax, of $2.1 million and $0.9 million, respectively, were included in accumulated other comprehensive income in the accompanying unaudited Condensed Consolidated Balance Sheets. At September 30, 2010, the majority of the Company's gross unrealized losses were from auction-rate securities (ARS). The Company determined these unrealized losses to be temporary and recorded no other-than-temporary impairments. Factors considered in determining whether a loss is temporary included the length of time and ex tent to which the investments fair value has been less than the cost basis; the financial condition and near-term prospects of the investee; 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.

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2010

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 4. FAIR VALUE MEASUREMENTS

The Company measures certain financial assets including cash equivalents, available-for-sale securities, trading securities and foreign currency derivatives at their fair value. The fair value of these financial assets was determined based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following tables represent the Company's fair value hierarchy for its financial assets and liabilities as of September 30, 2010 and December 31, 2009 (in millions):


	Fair Value Measurements at September 30, 2010 Using
Assets	Level 1		Level 2		Level 3		Total
Available-for-sale securities
Money Market funds	$	248.6	$	—	$	—	$	248.6
U.S. treasuries		119.5		—		—		119.5
Commercial paper		—		150.8		—		150.8
Corporate debt		—		497.6		—		497.6
U.S. government agencies		—		335.9		—		335.9
Non-U.S. government agencies		—		15.9		—		15.9
Municipal notes		—		198.7		18.6		217.3

Total assets measured at fair value	$	368.1	$	1,198.9	$	18.6	$	1,585.6


Liabilities
Foreign Currency Derivatives	$	—	$	2.8	$	—	$	2.8

Total liabilities measured at fair value	$	—	$	2.8	$	—	$	2.8

	Fair Value Measurements at December 31, 2009 Using
Assets	Level 1		Level 2		Level 3		Total
Municipal notes - trading security	$	—	$	—	$	62.2	$	62.2
Put option		—		—		7.6		7.6
Available-for-sale securities
Money Market funds		175.7		—		—		175.7
U.S. treasuries		61.1		—		—		61.1
Commercial paper		—		27.4		—		27.4
Corporate debt		—		379.0		—		379.0
U.S. government agencies		—		250.9		—		250.9
Municipal notes		—		160.4		19.1		179.5

Total available-for-sale securities		236.8		817.7		19.1		1,073.6

Total assets measured at fair value	$	236.8	$	817.7	$	88.9	$	1,143.4


Liabilities
Foreign Currency Derivatives	$	—	$	0.4	$	—	$	0.4

Total liabilities measured at fair value	$	—	$	0.4	$	—	$	0.4

The following table provides a reconciliation of the beginning and ending balances for the assets measured at fair value using significant unobservable inputs (Level 3) (in millions):


	Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs (Level 3)
	Put Option			ARS			Total
Balance at January 1, 2010	$	7.6		$	81.3		$	88.9
Sales/Maturities		—			(8.1	)		(8.1	)
Total gains or (losses):
Included in other comprehensive income (loss)		—			0.2			0.2
Included in earnings		(0.4	)		0.4			—

Balance at March 31, 2010		7.2			73.8			81.0
Sales/Maturities		—			(28.0	)		(28.0	)
Total gains or (losses):
Included in other comprehensive income (loss)		—			(0.1	)		(0.1	)
Included in earnings		(3.2	)		3.2			—

Balance at June 30, 2010	$	4.0		$	48.9		$	52.9
Sales/Maturities		(4.0	)		(30.4	)		(34.4	)
Total gains or (losses):
Included in other comprehensive income (loss)		—			0.1			0.1

Balance at September 30, 2010	$	—		$	18.6		$	18.6

Level 2 securities are priced using quoted market prices for similar instruments, nonbinding market prices that are corroborated by observable market data, or discounted cash flow techniques. The Company's derivative instruments are primarily classified as Level 2 as they are not actively traded and are valued using pricing models that use observable market inputs. There have been no transfers between Level 1 and Level 2 measurements during the three and nine months ended September 30, 2010, and there were no changes in the Company's valuation technique. Level 3 assets consist of municipal bonds with an auction reset feature (ARS) whose underlying assets are student loans which are substantially backed by the federal government. Since the auctions for these securities have continued to fail since February 2008, these investments are not currently trading and therefore do not have a readily determinable market value. On June 30, 2010, pursuant to the terms of the UBS rights offering, the Company exercised its right to sell all ARS subject to the rights offering to UBS at the par value of $34.4 million. As a result on July 1, 2010, the Company received the full par value in cash from UBS.

The remainder of the Company's ARS investment portfolio of $18.6 million, is reflected as long-term available-for-sale on the Company's unaudited Condensed Consolidated Balance Sheet as of September 30, 2010. The Company has valued the ARS using a discounted cash flow model based on Level 3 assumptions, including estimates of, based on data available as of September 30, 2010, interest rates, timing and amount of cash flows, credit and liquidity premiums and expected holding periods of the ARS.

Foreign currency derivative

The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk. On a monthly basis, the Company enters into foreign currency forward contracts with one to seven month terms to offset some of the foreign exchange risk of expected future cash flows on certain forecasted revenue and on certain existing assets and liabilities. The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue. The Company may also enter into foreign currency forward contracts to offset the foreign currency exchange gains and losses generated by re-measurement of certain assets and liabilities denominated in non-functional currencies. The hedging program is not designated for trading or speculative purposes.

The Company's accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments. The Company records all derivatives on the unaudited Condensed Consolidated Balance Sheets at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income (OCI) until the hedged item is recognized in earnings. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two month time period. Deferred gains and losses in OCI associated with such derivative instruments are reclassified immediately into earnings through interest and other income, net. Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings unless they are re-designated as hedges of other transactions.

Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings in interest and other income, net.

The fair value of derivative instruments in the unaudited Condensed Consolidated Balance Sheet as of September 30, 2010 and December 31, 2009 were approximately $2.8 million and $0.4 million in liabilities, respectively.

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 U.S. dollar, primarily the Euro and GBP.

As of September 30, 2010, the Company had the notional amount of €11.3 million and £0 outstanding currency forward contracts that were entered into to hedge Euro and GBP dominated sales, compared to €19.5 million and £3.9 million at December 31, 2009. The amounts reclassified to revenue as the related hedged transactions were recognized for the three and nine months ended September 30, 2010 and 2009 were not significant. Other impacts of derivative instruments designated as cash flow hedges were not significant for the three and nine months ended September 30, 2010 and 2009.

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 U.S. dollar, primarily the Euro or GBP.

As of September 30, 2010, the Company had the notional amount of €18.7 million and £1.4 million outstanding currency forward contracts that were entered into to hedge non-functional currency denominated net monetary assets, compared to €22.0 million and £4.5 million at December 31, 2009. For the three and nine months ended September 30, 2010, the Company had recognized losses of approximately $2.3 million and gains of approximately $2.5 million, respectively, in interest and other income, net related to derivative instruments used to hedge against balance sheet foreign currency exposures . These amounts were offset by approximately $2.9 million of net foreign exchange gains and $1.9 million of net foreign exchange losses for the three and nine months ended September 30, 2010, primarily related to the re-measurement of non-functional currency denominated net monetary assets. Impacts of derivative instruments not designated as hedges were not significant for the three and nine months ended September 30, 2009.

INVENTORY

9 Months Ended

Sep. 30, 2010

INVENTORY

INVENTORY

NOTE 5. INVENTORY

The following table provides details of selected balance sheet items (in millions):


	September 30, 2010		December 31, 2009
Inventory
Raw materials	$	27.4	$	16.3
Work-in-process		2.4		2.5
Finished goods		55.2		38.8

Total	$	85.0	$	57.6

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2010

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE 6. STOCKHOLDERS' EQUITY

Comprehensive Income

The components of comprehensive income, net of tax, are as follows (in millions):


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net income	$	86.6		$	64.5		$	260.6		$	155.0
Foreign currency translation gains (losses)		0.4			0.2			(0.2	)		0.3
Unrealized gains (losses) on derivative instruments, net of tax:
Unrealized gains (losses) on derivative instruments		(2.5	)		(0.6	)		0.6			(1.3	)
Reclassification adjustment for (gains) losses on derivative instruments recognized during the period		0.9			0.3			(2.2	)		0.7
Unrealized gains (losses) on available-for-sale securities, net of tax:
Unrealized gains arising during the period		1.2			0.6			1.2			4.5

Total other comprehensive income	$	86.6		$	65.0		$	260.0		$	159.2

The components of accumulated other comprehensive income are as follows (in millions):


	September 30, 2010			December 31, 2009
Foreign currency translation gains	$	0.2		$	0.4
Accumulated net unrealized losses on derivatives, net of tax		(1.6	)		—
Accumulated net unrealized gains on available-for-sale securities, net of tax		2.1			0.9

Total accumulated other comprehensive income	$	0.7		$	1.3

STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2010

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 7. STOCK-BASED COMPENSATION

Stock Option Plans

2010 Incentive Award Plan

In April 2010, the Company's stockholders approved the 2010 Incentive Award Plan ("2010 Plan"), which authorized approximately 1.3 million shares of common stock for issuance. Under this plan, the Company issues nonqualified stock options ("NSOs") 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. Options generally vest 12.5% upon completion of 6 months service and 1/48^th per month thereafter; however, options may have different vesting terms as determined by the Compensation Committee. The plan expires in 2020.

A summary of stock option activity under the 2000 Equity Incentive Plan, the 2000 Non-Employee Directors' Plan, the 2009 Employment Commencement Incentive Plan and the 2010 Incentive Award Plan for the nine months ended September 30, 2010 is presented as follows (in millions, except per share amounts):


				Stock Options Outstanding
	Shares Available for Grant			Number Outstanding			Weighted Average Exercise Price Per Share
Balance at December 31, 2009		8.9			4.6		$	157.25
Options authorized		1.3
Options granted		(1.3	)		1.3			331.87
Options exercised		—			(0.9	)		138.28
Options forfeited/expired (1)		(7.4	)		(0.1	)		222.25

Balance at September 30, 2010		1.5			4.9		$	205.99

(1)	Primarily related to the expiration of the 2000 Equity Incentive Plan.

As of September 30, 2010, 2.3 million shares of options were exercisable at a weighted-average price of $163.81 per share.

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan ("ESPP"), employees purchased 61,958 shares for $6.6 million and 37,248 shares for $3.3 million during the three months ended September 30, 2010 and 2009, respectively and 144,906 shares for $14.3 million and 92,433 shares for $8.0 million during the nine months ended September 30, 2010 and 2009, respectively.

Stock-based Compensation

The following table summarizes stock-based compensation charges (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Cost of sales - products	$	2.5	$	2.0	$	7.0	$	5.7
Cost of sales - services		2.2		1.7		6.3		4.9

Total cost of sales		4.7		3.7		13.3		10.6
Selling, general and administrative		19.8		15.5		57.6		45.4
Research and development		5.9		5.4		16.6		15.9

Stock-based compensation expense before income taxes		30.4		24.6		87.5		71.9
Income tax effect		9.1		7.2		25.0		21.3

Stock-based compensation expense after income taxes	$	21.3	$	17.4	$	62.5	$	50.6

The fair value of each option grant and the fair value of the option component of the ESPP shares were estimated at the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions, assuming no expected dividends:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Stock Options
Average risk free interest rate		1.61	%		2.47	%		2.28	%		1.73	%
Average expected term (years)		4.8			4.8			4.8			5.3
Average expected volatility		44	%		46	%		35	%		56	%
Weighted average fair value at grant date	$	121.32		$	87.92		$	112.32		$	57.11
Total stock-based compensation expense (in millions)	$	28.1		$	22.9		$	81.3		$	67.1

ESPP
Average risk free interest rate		0.37	%		0.69	%		0.43	%		0.63	%
Average expected term (years)		1.3			1.3			1.3			1.3
Average expected volatility		43	%		47	%		39	%		56	%
Weighted average fair value at grant date	$	110.90		$	79.89		$	106.72		$	51.23
Total stock-based compensation expense (in millions)	$	2.3		$	1.7		$	6.2		$	4.8

SHARE REPURCHASE PROGRAMS	9 Months Ended
SHARE REPURCHASE PROGRAMS	Sep. 30, 2010
SHARE REPURCHASE PROGRAMS
SHARE REPURCHASE PROGRAMS	NOTE 8. SHARE REPURCHASE PROGRAMS During the first quarter of fiscal 2009, the Company's Board of Directors (the "Board") authorized $300 million under a share repurchase program. In March 2009, the Company paid $150 million to repurchase and retire 1.4 million shares of the Company's common stock. In July 2010, the Board authorized an additional $150 million for share repurchase under the share repurchase program. During the three months ended September 30, 2010, the Company repurchased and retired approximately 212,000 shares of its common stock at an average purchase price of $277.92 per share, for an aggregate purchase price of $58.9 million, through open market transactions. As of September 30, 2010, the remaining authorized amount of share repurchases that may be made under the Board-authorized share repurchase program was approximately $241.1 million. The Company uses the par value method of accounting for its share repurchases. As a result of the share repurchases during the three and nine months ended September 30, 2010, the Company reduced common stock and additional paid-in-capital by an aggregate of $6.7 million and charged $52.2 million to retained earnings.

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Sep. 30, 2010
CONTINGENCIES
CONTINGENCIES	NOTE 9. CONTINGENCIES On August 6, 2010, a purported class action lawsuit entitled Perlmutter v. Intuitive Surgical et al., No. CV10-3451, was filed against the Company and seven of the Company's current and former officers and directors in the United States District Court for the Northern District of California. The lawsuit seeks unspecified damages on behalf of a putative class of persons who purchased or otherwise acquired the Company's common stock between February 1, 2008 and January 7, 2009. The complaint alleges that the defendants violated federal securities laws by making allegedly false and misleading statements and omitting certain material facts in the Company's filings with the Securities and Exchange Commission. On August 19, 2010, an alleged shareholder caused a purported shareholder's derivative lawsuit entitled Himmel v. Smith et al., No. 1-10-CV-180416, to be filed in the Superior Court of California for the County of Santa Clara naming the Company as a nominal defendant, and naming 14 of the Company's current and former officers and directors as defendants. The lawsuit seeks to recover, for the Company's benefit, unspecified damages purportedly sustained by the Company in connection with allegedly misleading statements and/or omissions made in connection with the Company's financial reporting for the period between February 1, 2008 and January 7, 2009. It also seeks a series of changes to the Company's corporate governance policies and an award of attorneys' fees. On September 15, 2010, another purported shareholder filed an essentially identical lawsuit entitled Applbaum v. Guthart et al., No. 1-10-CV-182645, in the same court against 15 of the Company's current and former officers and directors. On October 5, 2010, the court ordered that the two cases be consolidated for all purposes. Due to the uncertainty surrounding the litigation process, the Company is unable to reasonably estimate the ultimate outcome of the above cases at this time, and therefore no amounts have been accrued related to the outcome of the cases above. Based on currently available information, the Company believes that it has meritorious defenses to the above actions and that the resolution of these cases is not likely to have a material adverse effect on the Company's business, financial position or future results of operations.

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2010
INCOME TAXES
INCOME TAXES	NOTE 10. INCOME TAXES As part of the process of preparing the unaudited Condensed Consolidated Financial Statements, the Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves estimating the current tax liability under the most recent tax laws and assessing temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included in the unaudited Condensed Consolidated Balance Sheets. Income tax expense for the three months ended September 30, 2010 was $50.5 million, or 36.8% of pre-tax income, compared with $44.3 million, or 40.7% of pre-tax income for the three months ended September 30, 2009. Income tax expense for the nine months ended September 30, 2010 was $154.5 million, or 37.2% of pre-tax income, compared with $108.5 million, or 41.2% of pre-tax income for the nine months ended September 30, 2009. The effective tax rate for the three and nine months ended September 30, 2010 differs from the U.S. federal statutory rate of 35% primarily due to state income taxes and non-deductible stock option expenses, partially offset by the effect of income earned by certain of the Company's overseas entities being taxed at rates lower than the federal statutory rate. The Company intends these foreign earnings to be indefinitely reinvested outside the United States. The effective tax rate for the three and nine months ended September 30, 2009 differs from the U.S. federal statutory rate of 35% primarily due to state income taxes and non-deductible stock option expenses, partially offset by 2009 research and development ("R&D") credits and domestic production deductions. As of September 30, 2010, the Company has total gross unrecognized tax benefits of approximately $75.6 million compared with approximately $70.0 million as of December 31, 2009, representing an increase of approximately $5.6 million for the nine months ended September 30, 2010. Of the total gross unrecognized tax benefits, $71.3 million and $65.7 million as of September 30, 2010 and December 31, 2009, respectively, if recognized, would reduce the effective tax rate in the period of recognition. Gross interest related to unrecognized tax benefit accrued was approximately $4.8 million and $3.3 million, respectively, as of September 30, 2010 and December 31, 2009. The Company files federal, state and foreign income tax returns in many jurisdictions in the United States and abroad. For U.S. federal and California income tax purposes, the statute of limitations currently remain open for all years since inception due to utilization of net operating losses and R&D credits generated in prior years.

NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2010

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 11. NET INCOME PER SHARE

The following table presents the computation of basic and diluted net income per share (in millions, except per share data):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Net income	$	86.6	$	64.5	$	260.6	$	155.0
Basic:
Weighted-average shares outstanding		39.4		38.1		39.2		38.3

Basic net income per share	$	2.20	$	1.69	$	6.65	$	4.05

Diluted:
Weighted-average shares outstanding used in basic calculation		39.4		38.1		39.2		38.3
Add common stock equivalents		1.1		1.1		1.2		0.7

Weighted-average shares used in computing diluted net income per share		40.5		39.2		40.4		39.0

Diluted net income per share	$	2.14	$	1.64	$	6.45	$	3.97

Employee stock options to purchase approximately 1.7 million and 1.5 million weighted shares for the three months ended September 30, 2010 and 2009, respectively, and 1.2 million and 2.6 million weighted shares for the nine months ended September 30, 2010 and 2009, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive in the periods presented.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)

9 Months Ended

Sep. 30, 2010

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Basis of Presentation

Revenue Recognition for Arrangements with Multiple Deliverables

Revenue Recognition for Arrangements with Multiple Deliverables

•

INVESTMENTS (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2010

Dec. 31, 2009

INVESTMENTS

Cash, Cash Equivalents and Investments


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2010
Cash and cash equivalents:
Cash	$	35.0	$	—	$	—		$	35.0
Cash equivalents		347.0		—		—			347.0

Total cash and cash equivalents	$	382.0	$	—	$	—		$	382.0

Available for sale investments:
Short-term
Commercial paper	$	62.5	$	—	$	—		$	62.5
Municipal notes		110.7		0.5		—			111.2
U.S. corporate debt		164.9		0.8		—			165.7
U.S. treasuries		103.3		—		—			103.3
U.S. government agencies		155.9		0.3		—			156.2

Total short-term	$	597.3	$	1.6	$	—		$	598.9

Long-term
Municipal notes	$	109.8	$	0.6	$	(4.3	)	$	106.1
U.S. corporate debt		327.8		4.1		—			331.9
U.S. treasuries		16.0		0.2		—			16.2
U.S. government agencies		169.0		0.6		—			169.6
Non-U.S. government securities		15.7		0.2		—			15.9

Total long-term	$	638.3	$	5.7	$	(4.3	)	$	639.7


Total cash, cash equivalents and available for sale investments:	$	1,617.6	$	7.3	$	(4.3	)	$	1,620.6


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2009
Cash and cash equivalents:
Cash	$	28.6	$	—	$	—		$	28.6
Cash equivalents		192.8		—		—			192.8

Total cash and cash equivalents	$	221.4	$	—	$	—		$	221.4

Available for sale investments:
Short-term
Commercial paper	$	13.1	$	—	$	—		$	13.1
Municipal notes		21.3		0.2		—			21.5
U.S. corporate debt		150.5		1.3		—			151.8
U.S. treasuries		31.6		0.2		—			31.8
U.S. government agencies		45.5		0.5		—			46.0

Total short-term	$	262.0	$	2.2	$	—		$	264.2

Long-term
Municipal notes	$	161.0	$	1.5	$	(4.5	)	$	158.0
U.S. corporate debt		222.5		2.1		(0.1	)		224.5
U.S. treasuries		29.5		—		(0.2	)		29.3
U.S. government agencies		204.6		0.6		(0.4	)		204.8

Total long-term	$	617.6	$	4.2	$	(5.2	)	$	616.6

Total cash, cash equivalents and available for sale investments	$	1,101.0	$	6.4	$	(5.2	)	$	1,102.2
Other securities (included in short-term investments):
Trading securities, auction rate securities	$	62.2	$	—	$	—		$	62.2
Put option		7.6		—		—			7.6

Total cash, cash equivalents and investments	$	1,170.8	$	6.4	$	(5.2	)	$	1,172.0

Schedule of Cash Equivalents and Available-for-Sale Securities by Maturity


	Amortized Cost		Fair Value
Mature in less than one year	$	944.2	$	945.9
Mature in one to five years		615.5		621.1
Mature in more than five years		22.9		18.6

Total	$	1,582.6	$	1,585.6

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2010

FAIR VALUE MEASUREMENTS

Fair Value Hierarchy


	Fair Value Measurements at September 30, 2010 Using
Assets	Level 1		Level 2		Level 3		Total
Available-for-sale securities
Money Market funds	$	248.6	$	—	$	—	$	248.6
U.S. treasuries		119.5		—		—		119.5
Commercial paper		—		150.8		—		150.8
Corporate debt		—		497.6		—		497.6
U.S. government agencies		—		335.9		—		335.9
Non-U.S. government agencies		—		15.9		—		15.9
Municipal notes		—		198.7		18.6		217.3

Total assets measured at fair value	$	368.1	$	1,198.9	$	18.6	$	1,585.6


Liabilities
Foreign Currency Derivatives	$	—	$	2.8	$	—	$	2.8

Total liabilities measured at fair value	$	—	$	2.8	$	—	$	2.8

	Fair Value Measurements at December 31, 2009 Using
Assets	Level 1		Level 2		Level 3		Total
Municipal notes - trading security	$	—	$	—	$	62.2	$	62.2
Put option		—		—		7.6		7.6
Available-for-sale securities
Money Market funds		175.7		—		—		175.7
U.S. treasuries		61.1		—		—		61.1
Commercial paper		—		27.4		—		27.4
Corporate debt		—		379.0		—		379.0
U.S. government agencies		—		250.9		—		250.9
Municipal notes		—		160.4		19.1		179.5

Total available-for-sale securities		236.8		817.7		19.1		1,073.6

Total assets measured at fair value	$	236.8	$	817.7	$	88.9	$	1,143.4


Liabilities
Foreign Currency Derivatives	$	—	$	0.4	$	—	$	0.4

Total liabilities measured at fair value	$	—	$	0.4	$	—	$	0.4

Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs (Level 3)


	Fair Value Measurements at Reporting Date Using Significant Unobservable Inputs (Level 3)
	Put Option			ARS			Total
Balance at January 1, 2010	$	7.6		$	81.3		$	88.9
Sales/Maturities		—			(8.1	)		(8.1	)
Total gains or (losses):
Included in other comprehensive income (loss)		—			0.2			0.2
Included in earnings		(0.4	)		0.4			—

Balance at March 31, 2010		7.2			73.8			81.0
Sales/Maturities		—			(28.0	)		(28.0	)
Total gains or (losses):
Included in other comprehensive income (loss)		—			(0.1	)		(0.1	)
Included in earnings		(3.2	)		3.2			—

Balance at June 30, 2010	$	4.0		$	48.9		$	52.9
Sales/Maturities		(4.0	)		(30.4	)		(34.4	)
Total gains or (losses):
Included in other comprehensive income (loss)		—			0.1			0.1

Balance at September 30, 2010	$	—		$	18.6		$	18.6

INVENTORY (Tables)

9 Months Ended

Sep. 30, 2010

INVENTORY

Inventory Selected Balance Sheet Items


	September 30, 2010		December 31, 2009
Inventory
Raw materials	$	27.4	$	16.3
Work-in-process		2.4		2.5
Finished goods		55.2		38.8

Total	$	85.0	$	57.6

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

Sep. 30, 2010

STOCKHOLDERS' EQUITY

Components of Comprehensive Income


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Net income	$	86.6		$	64.5		$	260.6		$	155.0
Foreign currency translation gains (losses)		0.4			0.2			(0.2	)		0.3
Unrealized gains (losses) on derivative instruments, net of tax:
Unrealized gains (losses) on derivative instruments		(2.5	)		(0.6	)		0.6			(1.3	)
Reclassification adjustment for (gains) losses on derivative instruments recognized during the period		0.9			0.3			(2.2	)		0.7
Unrealized gains (losses) on available-for-sale securities, net of tax:
Unrealized gains arising during the period		1.2			0.6			1.2			4.5

Total other comprehensive income	$	86.6		$	65.0		$	260.0		$	159.2

Components of Accumulated Other Comprehensive Income


	September 30, 2010			December 31, 2009
Foreign currency translation gains	$	0.2		$	0.4
Accumulated net unrealized losses on derivatives, net of tax		(1.6	)		—
Accumulated net unrealized gains on available-for-sale securities, net of tax		2.1			0.9

Total accumulated other comprehensive income	$	0.7		$	1.3

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2010

STOCKHOLDERS' EQUITY

Summary of Stock Option Activity


				Stock Options Outstanding
	Shares Available for Grant			Number Outstanding			Weighted Average Exercise Price Per Share
Balance at December 31, 2009		8.9			4.6		$	157.25
Options authorized		1.3
Options granted		(1.3	)		1.3			331.87
Options exercised		—			(0.9	)		138.28
Options forfeited/expired (1)		(7.4	)		(0.1	)		222.25

Balance at September 30, 2010		1.5			4.9		$	205.99

Summary of Stock-Based Compensation Charges


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Cost of sales - products	$	2.5	$	2.0	$	7.0	$	5.7
Cost of sales - services		2.2		1.7		6.3		4.9

Total cost of sales		4.7		3.7		13.3		10.6
Selling, general and administrative		19.8		15.5		57.6		45.4
Research and development		5.9		5.4		16.6		15.9

Stock-based compensation expense before income taxes		30.4		24.6		87.5		71.9
Income tax effect		9.1		7.2		25.0		21.3

Stock-based compensation expense after income taxes	$	21.3	$	17.4	$	62.5	$	50.6

Black-Scholes Option Pricing Model, Weighted Average Assumptions


	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Stock Options
Average risk free interest rate		1.61	%		2.47	%		2.28	%		1.73	%
Average expected term (years)		4.8			4.8			4.8			5.3
Average expected volatility		44	%		46	%		35	%		56	%
Weighted average fair value at grant date	$	121.32		$	87.92		$	112.32		$	57.11
Total stock-based compensation expense (in millions)	$	28.1		$	22.9		$	81.3		$	67.1

ESPP
Average risk free interest rate		0.37	%		0.69	%		0.43	%		0.63	%
Average expected term (years)		1.3			1.3			1.3			1.3
Average expected volatility		43	%		47	%		39	%		56	%
Weighted average fair value at grant date	$	110.90		$	79.89		$	106.72		$	51.23
Total stock-based compensation expense (in millions)	$	2.3		$	1.7		$	6.2		$	4.8

NET INCOME PER SHARE (Tables)

9 Months Ended

Sep. 30, 2010

NET INCOME PER SHARE

Computation of Basic and Diluted Net Income Per Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Net income	$	86.6	$	64.5	$	260.6	$	155.0
Basic:
Weighted-average shares outstanding		39.4		38.1		39.2		38.3

Basic net income per share	$	2.20	$	1.69	$	6.65	$	4.05

Diluted:
Weighted-average shares outstanding used in basic calculation		39.4		38.1		39.2		38.3
Add common stock equivalents		1.1		1.1		1.2		0.7

Weighted-average shares used in computing diluted net income per share		40.5		39.2		40.4		39.0

Diluted net income per share	$	2.14	$	1.64	$	6.45	$	3.97

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2009	Sep. 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Decrease in revenue recognition due to pro forma change in accounting policy	$ 1.5
Increase in revenue recognition due to pro forma change in accounting policy		$ 1.6

INVESTMENTS (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
INVESTMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2010	Dec. 31, 2009	Sep. 30, 2009	Dec. 31, 2008
Statement [Line Items]
Cash, amortized cost	$ 35.0	$ 28.6
Cash, gross unrealized gains
Cash, gross unrealized losses
Cash, fair value	35.0	28.6
Cash equivalents, amortized cost	347.0	192.8
Cash equivalents, gross unrealized gains
Cash, equivalents, gross unrealized losses
Cash equivalents, fair value	347.0	192.8
Total cash and cash equivalents, amortized cost	382.0	221.4
Total cash and cash equivalents, gross unrealized gains
Total cash and cash equivalents, gross unrealized losses
Total cash and cash equivalents, fair value	382.0	221.4	$ 206.1	$ 194.6
Available for sale investments, fair value		1,073.6
Total cash, cash equivalents and available for sale investments, amortized cost	1,617.6	1,101.0
Cash, cash equivalents and available for sale investments, total gross unrealized gains	7.3	6.4
Cash, cash equivalents and available for sale investments, total gross unrealized losses	(4.3)	(5.2)
Total cash, cash equivalents and available for sale investments, fair value	1,620.6	1,102.2
Trading securities, auction rate securities, fair value		62.2
Total cash, cash equivalents and investments, amortized cost		1,170.8
Cash, cash equivalents and investments, total gross unrealized gains		6.4
Cash, cash equivalents and investments, total gross unrealized losses		(5.2)
Total cash, cash equivalents and investments, fair value		1,172.0
Accumulated net unrealized gains on available-for-sale securities, net of tax	2.1	0.9
Mature in Less Than One Year [Member]
Statement [Line Items]
Available for sale investments, amortized cost	944.2
Available for sale investments, fair value	945.9
Mature in One to Five Years [Member]
Statement [Line Items]
Available for sale investments, amortized cost	615.5
Available for sale investments, fair value	621.1
Mature in More Than Five Years [Member]
Statement [Line Items]
Available for sale investments, amortized cost	22.9
Available for sale investments, fair value	18.6
Commercial Paper [Member]
Statement [Line Items]
Available for sale investments, fair value	150.8	27.4
Municipal Notes [Member]
Statement [Line Items]
Available for sale investments, fair value	217.3	179.5
Corporate Debt [Member]
Statement [Line Items]
Available for sale investments, fair value	497.6	379.0
U.S. Treasuries [Member]
Statement [Line Items]
Available for sale investments, fair value	119.5	61.1
U.S. Government Agencies [Member]
Statement [Line Items]
Available for sale investments, fair value	335.9	250.9
Total Cash Equivalents and Available-for-Sale Investments by Maturity Date [Member]
Statement [Line Items]
Available for sale investments, amortized cost	1,582.6
Available for sale investments, fair value	1,585.6
Short-Term [Member]
Statement [Line Items]
Available for sale investments, amortized cost	597.3	262.0
Available for sale investments, gross unrealized gains	1.6	2.2
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	598.9	264.2
Trading securities, auction rate securities, amortized cost		62.2
Trading securities, aution rate securities, gross unrealized gains
Trading securities, auction rate securities, gross unrealized losses
Trading securities, auction rate securities, fair value		62.2
Short-Term [Member] \| Commercial Paper [Member]
Statement [Line Items]
Available for sale investments, amortized cost	62.5	13.1
Available for sale investments, gross unrealized gains
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	62.5	13.1
Short-Term [Member] \| Municipal Notes [Member]
Statement [Line Items]
Available for sale investments, amortized cost	110.7	21.3
Available for sale investments, gross unrealized gains	0.5	0.2
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	111.2	21.5
Short-Term [Member] \| Corporate Debt [Member]
Statement [Line Items]
Available for sale investments, amortized cost	164.9	150.5
Available for sale investments, gross unrealized gains	0.8	1.3
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	165.7	151.8
Short-Term [Member] \| U.S. Treasuries [Member]
Statement [Line Items]
Available for sale investments, amortized cost	103.3	31.6
Available for sale investments, gross unrealized gains		0.2
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	103.3	31.8
Short-Term [Member] \| U.S. Government Agencies [Member]
Statement [Line Items]
Available for sale investments, amortized cost	155.9	45.5
Available for sale investments, gross unrealized gains	0.3	0.5
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	156.2	46.0
Short-Term [Member] \| Put Option Right [Member]
Statement [Line Items]
Put option, amortized cost		7.6
Put option, gross unrealized gains
Put option, gross unrealized losses
Put option, fair value		7.6
Long-Term Investments [Member]
Statement [Line Items]
Available for sale investments, amortized cost	638.3	617.6
Available for sale investments, gross unrealized gains	5.7	4.2
Available for sale investments, gross unrealized losses	(4.3)	(5.2)
Available for sale investments, fair value	639.7	616.6
Long-Term Investments [Member] \| Non-U.S. government securities [Member]
Statement [Line Items]
Available for sale investments, amortized cost	15.7
Available for sale investments, gross unrealized gains	0.2
Available for sale investments, gross unrealized losses
Available for sale investments, fair value	15.9
Long-Term Investments [Member] \| Municipal Notes [Member]
Statement [Line Items]
Available for sale investments, amortized cost	109.8	161.0
Available for sale investments, gross unrealized gains	0.6	1.5
Available for sale investments, gross unrealized losses	(4.3)	(4.5)
Available for sale investments, fair value	106.1	158.0
Long-Term Investments [Member] \| Corporate Debt [Member]
Statement [Line Items]
Available for sale investments, amortized cost	327.8	222.5
Available for sale investments, gross unrealized gains	4.1	2.1
Available for sale investments, gross unrealized losses		(0.1)
Available for sale investments, fair value	331.9	224.5
Long-Term Investments [Member] \| U.S. Treasuries [Member]
Statement [Line Items]
Available for sale investments, amortized cost	16.0	29.5
Available for sale investments, gross unrealized gains	0.2
Available for sale investments, gross unrealized losses		(0.2)
Available for sale investments, fair value	16.2	29.3
Long-Term Investments [Member] \| U.S. Government Agencies [Member]
Statement [Line Items]
Available for sale investments, amortized cost	169.0	204.6
Available for sale investments, gross unrealized gains	0.6	0.6
Available for sale investments, gross unrealized losses		(0.4)
Available for sale investments, fair value	$ 169.6	$ 204.8

FAIR VALUE MEASUREMENTS (Fair Value Hierarchy) (Details) - USD ($) $ in Millions	Sep. 30, 2010	Dec. 31, 2009
Statement [Line Items]
Municipal notes - trading securities		$ 62.2
Put option		7.6
Available for sale investments, fair value		1,073.6
Foreign currency derivatives, liabilities	$ 2.8	0.4
Total assets measured at fair value	1,585.6	1,143.4
Total liabilities measured at fair value	2.8	0.4
Level 1 [Member]
Statement [Line Items]
Municipal notes - trading securities
Put option
Available for sale investments, fair value		236.8
Foreign currency derivatives, liabilities
Total assets measured at fair value	368.1	236.8
Total liabilities measured at fair value
Level 2 [Member]
Statement [Line Items]
Municipal notes - trading securities
Put option
Available for sale investments, fair value		817.7
Foreign currency derivatives, liabilities	2.8	0.4
Total assets measured at fair value	1,198.9	817.7
Total liabilities measured at fair value	2.8	0.4
Level 3 [Member]
Statement [Line Items]
Municipal notes - trading securities		62.2
Put option		7.6
Available for sale investments, fair value		19.1
Foreign currency derivatives, liabilities
Total assets measured at fair value	18.6	88.9
Total liabilities measured at fair value
Money Market Funds [Member]
Statement [Line Items]
Available for sale investments, fair value	248.6	175.7
Money Market Funds [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value	248.6	175.7
Money Market Funds [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value
Money Market Funds [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value
U.S. Treasuries [Member]
Statement [Line Items]
Available for sale investments, fair value	119.5	61.1
U.S. Treasuries [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value	119.5	61.1
U.S. Treasuries [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value
U.S. Treasuries [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value
Commercial Paper [Member]
Statement [Line Items]
Available for sale investments, fair value	150.8	27.4
Commercial Paper [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value
Commercial Paper [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value	150.8	27.4
Commercial Paper [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value
Corporate Debt [Member]
Statement [Line Items]
Available for sale investments, fair value	497.6	379.0
Corporate Debt [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value
Corporate Debt [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value	497.6	379.0
Corporate Debt [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value
U.S. Government Agencies [Member]
Statement [Line Items]
Available for sale investments, fair value	335.9	250.9
U.S. Government Agencies [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value
U.S. Government Agencies [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value	335.9	250.9
U.S. Government Agencies [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value
Non-U.S. Government Agencies [Member]
Statement [Line Items]
Available for sale investments, fair value	15.9
Non-U.S. Government Agencies [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value
Non-U.S. Government Agencies [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value	15.9
Non-U.S. Government Agencies [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value
Municipal Notes [Member]
Statement [Line Items]
Available for sale investments, fair value	217.3	179.5
Municipal Notes [Member] \| Level 1 [Member]
Statement [Line Items]
Available for sale investments, fair value
Municipal Notes [Member] \| Level 2 [Member]
Statement [Line Items]
Available for sale investments, fair value	198.7	160.4
Municipal Notes [Member] \| Level 3 [Member]
Statement [Line Items]
Available for sale investments, fair value	$ 18.6	$ 19.1

FAIR VALUE MEASUREMENTS (Reconciliation Of Assets Measured At Fair Value Using Level 3) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2010	Jun. 30, 2010	Mar. 31, 2010
Statement [Line Items]
Balance	$ 18.6	$ 52.9	$ 81.0
Sales/Maturities	(34.4)	(28.0)	(8.1)
Gains (losses) - Included in other comprehensive income (loss)	0.1	(0.1)	0.2
Gains (losses) - Included in earnings
Put Option [Member]
Statement [Line Items]
Balance		4.0	7.2
Sales/Maturities	(4.0)
Gains (losses) - Included in other comprehensive income (loss)
Gains (losses) - Included in earnings		(3.2)	(0.4)
ARS [Member]
Statement [Line Items]
Balance	18.6	48.9	73.8
Sales/Maturities	(30.4)	(28.0)	(8.1)
Gains (losses) - Included in other comprehensive income (loss)	$ 0.1	(0.1)	0.2
Gains (losses) - Included in earnings		$ 3.2	$ 0.4

FAIR VALUE MEASUREMENTS (Narrative) (Details) € in Millions, £ in Millions, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2010 USD ($)	Sep. 30, 2010 USD ($)	Sep. 30, 2010 GBP (£)	Sep. 30, 2010 EUR (€)	Sep. 30, 2010 USD ($)	Jun. 30, 2010 USD ($)	Dec. 31, 2009 GBP (£)	Dec. 31, 2009 EUR (€)	Dec. 31, 2009 USD ($)
Statement [Line Items]
Par value of auction rate securities						$ 34.4
Long-term available-for-sale securities					$ 18.6
Foreign currency derivatives, liabilities					$ 2.8				$ 0.4
Gains related to the remeasurement of balance sheet foreign currency exposures		$ 2.5
Losses from derivative instruments used to hedge against balance sheet foreign currency exposures.	$ 2.3
Foreign exchange gains (losses)	$ 2.9	$ (1.9)
Nonfunctional Currency Denominated Net Monetary Assets [Member]
Statement [Line Items]
Notional amount of currency forward contracts			£ 1.4	€ 18.7			£ 4.5	€ 22.0
GBP Dominated Sales [Member]
Statement [Line Items]
Notional amount of currency forward contracts \| £			£ 0.0				£ 3.9
Euro Dominated Sales [Member]
Statement [Line Items]
Notional amount of currency forward contracts \| €				€ 11.3				€ 19.5

INVENTORY (Details) - USD ($) $ in Millions	Sep. 30, 2010	Dec. 31, 2009
INVENTORY
Raw materials	$ 27.4	$ 16.3
Work-in-process	2.4	2.5
Finished goods	55.2	38.8
Total	$ 85.0	$ 57.6

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Millions	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009	Dec. 31, 2009
STOCKHOLDERS' EQUITY
Net income	$ 86.6	$ 64.5	$ 260.6	$ 155.0
Foreign currency translation gains (losses)	0.4	0.2	(0.2)	0.3
Unrealized gains (losses) on derivative instruments	(2.5)	(0.6)	0.6	(1.3)
Reclassification adjustment for (gains) losses on derivative instruments recognized during the period	0.9	0.3	(2.2)	0.7
Unrealized gains arising during the period	1.2	0.6	1.2	4.5
Total other comprehensive income	86.6	$ 65.0	260.0	$ 159.2
Foreign currency translation gains	0.2		0.2		$ 0.4
Accumulated net unrealized losses on derivatives, net of tax	(1.6)		(1.6)
Accumulated net unrealized gains on available-for-sale securities, net of tax	2.1		2.1		0.9
Total accumulated other comprehensive income	$ 0.7		$ 0.7		$ 1.3

STOCK-BASED COMPENSATION (Details) $ / shares in Units, $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2010 $ / shares shares	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009	Sep. 30, 2009 USD ($) shares	Sep. 30, 2010 $ / shares shares	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009	Sep. 30, 2009 USD ($) shares	Sep. 30, 2010 shares	Apr. 30, 2010
Statement [Line Items]
2010 Incentive Award Plan, common stock authorized \| shares	1,300,000	1,300,000			1,300,000	1,300,000			1,300,000
Incentive Plan terms from the date of grant, years										10
General vesting percentage upon completion of six months of service										12.50%
Vesting ratio after six months of service, numerator										1
Vesting ratio after six months of service, denominator										48
Months worked to vest in 12.5% of options										6
Balance \| shares		1,500,000				1,500,000
Options authorized, shares available for grant \| shares						1,300,000
Options granted, shares available for grant \| shares						(1,300,000)
Options forfeited/expired, shares available for grant \| shares						(7,400,000)
Balance \| shares		4,900,000				4,900,000
Options granted, number outstanding \| shares						1,300,000
Options exercised, number outstanding \| shares						(900,000)
Options forfeited/expired, number outstanding \| shares						(100,000)
Balance	pure 205.99				pure 205.99
Options granted, weighted average exercise price per share									pure 331.87
Options exercised, weighted average exercise price per share									138.28
Options forfeited/expired, weighted average exercise price per share									pure 222.25
Options exercisable, shares of options \| shares	2,300,000	2,300,000			2,300,000	2,300,000			2,300,000
Options exercisable, weighted-average price \| $ / shares	pure 163.81	$ 163.81			pure 163.81	$ 163.81
Employee Stock Purchase Plan, shares issued \| shares		61,958		37,248		144,906		92,433
Employee Stock Purchase Plan, value of shares issued \| $		$ 6.6		$ 3.3		$ 14.3		$ 8.0
Stock Options [Member]
Statement [Line Items]
Average risk free interest rate	1.61%		2.47%		2.28%		1.73%
Average expected term (years)	4.8		4.8		4.8		5.3
Average expected volatility	44.00%		46.00%		35.00%		56.00%
Weighted average fair value at grant date	pure 121.32		pure 87.92		pure 112.32		pure 57.11
Total stock-based compensation expense \| $		28.1		22.9		81.3		67.1
Employee Stock Purchase Plan [Member]
Statement [Line Items]
Average risk free interest rate	0.37%		0.69%		0.43%		0.63%
Average expected term (years)	1.3		1.3		1.3		1.3
Average expected volatility	43.00%		47.00%		39.00%		56.00%
Weighted average fair value at grant date	pure 110.90		pure 79.89		pure 106.72		pure 51.23
Total stock-based compensation expense \| $		2.3		1.7		6.2		4.8
Cost of Sales Products [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		2.5		2.0		7.0		5.7
Cost of Sales Service [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		2.2		1.7		6.3		4.9
Cost of Sales [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		4.7		3.7		13.3		10.6
Selling, General and Administrative [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		19.8		15.5		57.6		45.4
Research and Development [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		5.9		5.4		16.6		15.9
Stock-Based Compensation Expense Before Income Taxes [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		30.4		24.6		87.5		71.9
Income Taxes [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		9.1		7.2		25.0		21.3
Stock-based Compensation Expense After Income Taxes [Member]
Statement [Line Items]
Total stock-based compensation expense \| $		$ 21.3		$ 17.4		$ 62.5		$ 50.6

SHARE REPURCHASE PROGRAMS (Details) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
SHARE REPURCHASE PROGRAMS (Details) - USD ($)	Jul. 31, 2010	Mar. 31, 2009	Sep. 30, 2010	Mar. 31, 2009	Sep. 30, 2010	Sep. 30, 2009
SHARE REPURCHASE PROGRAMS
Share repurchase program authorization	$ 150,000,000			$ 300,000,000
Repurchase and retirement of common stock, shares		1,400,000	212,000
Average purchase price per share under repurchase program			$ 277.92
Aggregate repurchase price of common stock		$ 150,000,000	58,900,000		$ 58,900,000	$ 150,000,000
Remaining authorized amount of stock repurchases					241,100,000
Aggregate reduction in common stock during stock repurchases			6,700,000		6,700,000
Amount charged to retained earnings during stock repurchases			$ 52,200,000		$ 52,200,000

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009	Dec. 31, 2009
INCOME TAXES
Income tax expense	$ 50.5	$ 44.3	$ 154.5	$ 108.5
Tax expense, percentage of pre-tax income	36.80%	40.70%	37.20%	41.20%
Federal statutory tax rate	35.00%	35.00%	35.00%	35.00%
Total gross unrecognized tax benefits	$ 75.6		$ 75.6		$ 70.0
Unrecognized tax benefits, period increase			5.6
Unrecognized tax benefits that would reduce Company's effective tax rate	71.3		71.3		65.7
Gross interest related to unrecognized tax benefit accrued	$ 4.8		$ 4.8		$ 3.3

NET INCOME PER SHARE (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2010	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009	Sep. 30, 2009 USD ($) $ / shares shares	Sep. 30, 2010	Sep. 30, 2010 USD ($) $ / shares shares	Sep. 30, 2009	Sep. 30, 2009 USD ($) $ / shares shares
NET INCOME PER SHARE
Net income \| $		$ 86.6		$ 64.5		$ 260.6		$ 155.0
Weighted-average shares outstanding		39.4		38.1		39.2		38.3
Basic net income per share \| (per share)	pure 2.20	$ 2.2	pure 1.69	$ 1.69	pure 6.65	$ 6.65	pure 4.05	$ 4.05
Weighted-average shares outstanding used in basic calculation		39.4		38.1		39.2		38.3
Add common stock equivalents		1.1		1.1		1.2		0.7
Weighted-average shares used in computing diluted net income per share		40.5		39.2		40.4		39.0
Diluted net income per share \| (per share)	pure 2.14	$ 2.14	pure 1.64	$ 1.64	pure 6.45	$ 6.45	pure 3.97	$ 3.97
Employee stock options excluded from computation of diluted net income per share because the effect of including such shares would have been antidilutive		1.7		1.5		1.2		2.6

Label	Element	Value
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant	8,900,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue	$ 88,900,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber	4,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice	$ 157.25
ARS [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue	$ 81,300,000
Put Option [Member]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue	$ 7,600,000