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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	Apr. 13, 2018
Document Document And Entity Information [Abstract]
Entity Registrant Name	INTUITIVE SURGICAL INC
Trading Symbol	ISRG
Entity Central Index Key	0001035267
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		113,295,092

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 974.7	$ 648.2
Short-term investments	1,542.6	1,312.4
Accounts receivable, net	474.9	507.9
Inventory	283.6	241.2
Prepaids and other current assets	105.9	99.2
Total current assets	3,381.7	2,808.9
Property, plant, and equipment, net	661.9	613.1
Long-term investments	1,550.9	1,885.9
Deferred tax assets	426.8	72.0
Intangible and other assets, net	203.8	195.8
Goodwill	201.1	201.1
Total assets	6,426.2	5,776.8
Current liabilities:
Accounts payable	96.3	82.5
Accrued compensation and employee benefits	103.6	167.6
Deferred revenue	254.6	243.8
Other accrued liabilities	126.7	168.9
Total current liabilities	581.2	662.8
Other long-term liabilities	338.6	333.6
Total liabilities	919.8	996.4
Contingencies (Note 6)
Stockholders’ equity:
Preferred stock, 2.5 shares authorized, $0.001 par value, issuable in series; no shares issued and outstanding as of March 31, 2018, and December 31, 2017	0.0	0.0
Common stock, 300.0 shares authorized, $0.001 par value, 113.3 shares and 112.3 shares issued and outstanding as of March 31, 2018, and December 31, 2017, respectively	0.1	0.1
Additional paid-in capital	4,817.1	4,679.2
Retained earnings	698.0	115.0
Accumulated other comprehensive loss	(18.1)	(15.5)
Total Intuitive Surgical, Inc. stockholders’ equity	5,497.1	4,778.8
Noncontrolling interest	9.3	1.6
Total stockholders’ equity	5,506.4	4,780.4
Total liabilities and stockholders’ equity	$ 6,426.2	$ 5,776.8

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	2,500,000.0	2,500,000.0
Preferred stock, par value (in dollars 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)	300,000,000.0	300,000,000.0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares issued (in shares)	113,300,000	112,300,000
Common stock, shares outstanding (in shares)	113,300,000	112,300,000

Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue:
Product	$ 694.8	$ 541.6
Service	152.7	138.0
Total revenue	847.5	679.6
Cost of revenue:
Product	201.5	165.5
Service	52.2	44.3
Total cost of revenue	253.7	209.8
Gross profit	593.8	469.8
Operating expenses:
Selling, general and administrative	221.6	202.9
Research and development	95.5	73.5
Total operating expenses	317.1	276.4
Income from operations	276.7	193.4
Interest and other income, net	13.2	8.7
Income before taxes	289.9	202.1
Income tax expense	2.6	21.3
Net income	287.3	180.8
Less: net loss attributable to noncontrolling interest	(0.3)	0.0
Net income attributable to Intuitive Surgical, Inc.	$ 287.6	$ 180.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)	$ 2.55	$ 1.62
Diluted (in dollars per share)	$ 2.44	$ 1.57
Shares used in computing net income per share attributable to Intuitive Surgical, Inc.:
Basic (in shares)	112.8	111.9
Diluted (in shares)	118.0	115.5
Total comprehensive income attributable to Intuitive Surgical, Inc.	$ 285.0	$ 181.7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Cash Flows [Abstract]
Net income	$ 287.3	$ 180.8
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and loss on disposal of property, plant, and equipment	23.7	19.0
Amortization of intangible assets	2.6	3.7
Loss on investments, accretion of discounts, and amortization of premiums on investments, net	4.7	6.1
Deferred income taxes	37.4	30.5
Share-based compensation expense	57.5	47.4
Amortization of contract acquisition asset	2.7	2.7
Changes in operating assets and liabilities:
Accounts receivable	33.0	16.5
Inventory	(66.2)	(39.0)
Prepaids and other assets	(20.6)	2.8
Accounts payable	8.4	5.5
Accrued compensation and employee benefits	(64.0)	(50.3)
Deferred revenue	11.4	31.9
Other liabilities	(37.7)	(16.1)
Net cash provided by operating activities	280.2	241.5
Investing activities:
Purchase of investments	(433.7)	(168.2)
Proceeds from sales of investments	226.6	1,421.1
Proceeds from maturities of investments	300.8	108.4
Purchase of property, plant, and equipment and intellectual property	(40.1)	(53.0)
Net cash provided by investing activities	53.6	1,308.3
Financing activities:
Proceeds from issuance of common stock relating to employee stock plans	86.2	169.1
Taxes paid related to net share settlement of equity awards	(102.5)	(47.4)
Repurchase of common stock	0.0	(2,000.0)
Other financing activities	8.0	0.0
Net cash used in financing activities	(8.3)	(1,878.3)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	1.0	0.5
Net increase (decrease) in cash, cash equivalents, and restricted cash	326.5	(328.0)
Cash, cash equivalents, and restricted cash, beginning of period	663.2	1,051.6
Cash, cash equivalents, and restricted cash, end of period	$ 989.7	$ 723.6

Condensed Consolidated Statements of Cash Flows - Footnote - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net cash provided by financing activities	$ (8.3)	$ (1,878.3)
Net cash provided by operating activities	$ 280.2	$ 241.5

DESCRIPTION OF THE BUSINESS	3 Months Ended
DESCRIPTION OF THE BUSINESS	Mar. 31, 2018
Accounting Policies [Abstract]
DESCRIPTION OF THE BUSINESS	DESCRIPTION OF THE BUSINESS Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci^® Surgical Systems and related instruments and accessories, which taken together, the Company considers to be an advanced generation of surgery. This advanced generation of surgery, which the Company calls da Vinci Surgery, combines the benefits of minimally invasive surgery (“MIS”) for patients with the ease of use, precision, and dexterity of open surgery. A da Vinci Surgical System consists of a surgeon’s console, a patient-side cart, and a high performance vision system. The da Vinci Surgical System translates a surgeon’s natural hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions, or ports. The da Vinci Surgical System is designed to provide its operating surgeons with intuitive control, range of motion, fine tissue manipulation capability, and Three Dimensional (“3-D”) High-Definition (“HD”) vision while simultaneously allowing surgeons to work through the small ports enabled by MIS procedures.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

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- and majority-owned subsidiaries have been prepared on a consistent basis with the audited Consolidated Financial Statements for the fiscal year ended December 31, 2017, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. The 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 Financial Statements in accordance with accounting principles generally accepted in the United States (“U.S.”) (“U.S. GAAP”). These Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, which was filed with the SEC on February 2, 2018. The results of operations for the first three months of fiscal year 2018 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods.

The Financial Statements include the results and the balances of the Company's majority owned joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd. The Company holds a controlling financial interest in the joint venture and the noncontrolling interest is reflected as a separate component of consolidated stockholders’ equity.

Recent Accounting Pronouncements Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which amends the existing accounting standards for leases. The new standard requires lessees to record a right-of-use asset and a corresponding lease liability on the balance sheet (with the exception of short-term leases). The new standard also requires expanded disclosures regarding leasing arrangements. The new standard becomes effective for the Company in the first quarter of fiscal year 2019 and early adoption is permitted. The new standard is required to be adopted using the modified retrospective approach and requires application of the new standard at the beginning of the earliest comparative period presented. The Company generally does not finance purchases of equipment or other capital, but does lease some of its facilities. The Company’s customers finance purchases of da Vinci systems and ancillary products, including directly with the Company. It is currently unknown whether the new standard will change customer buying patterns or behaviors. The Company is evaluating the effect that this new standard will have on its Financial Statements and related disclosures.

Adopted Accounting Pronouncement

Revenue from Contracts with Customers

The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 606 ("ASC 606), Revenue from Contracts with Customers in the first quarter of the Company's fiscal year that began on January 1, 2018, using the full retrospective method, which required the Company to restate each prior reporting period presented. This new standard replaced the previous revenue recognition guidance in U.S. GAAP. Please see the Company's "Revenue Recognition" policy in the "Significant Accounting Policies" section below.

The areas impacted include future contractual billings related to services included in the Company’s multi-year contracts, which are considered performance obligations that should be part of the contract consideration allocated to all performance obligations rather than being excluded due to its contingent nature as required under the previous revenue standard. Accordingly, the amount of contract consideration allocated to the performance obligations identified in the Company’s system arrangements is different from the amounts allocated under the previous revenue standard. In general, revenue is recognized earlier as a greater amount of the contract consideration is allocated to the product-related performance obligations that generally are delivered upfront, and therefore, less consideration is allocated to the service performance obligation that is generally recognized over the service period.

In addition, the Company recognized an asset associated with the incremental costs of obtaining revenue generating customer contracts that it expects to benefit from over a period longer than one year. The Company capitalized sales commissions paid in connection with system sale arrangements that include multi-year service obligations and is amortizing such asset over the economic life of those contracts. Previously, sales commissions were expensed as incurred. The impact of this change on operating expenses in any given period will depend, in part, on the amount of such commissions incurred and capitalized in relation to the amount of ongoing amortization expense.

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 months ended March 31, 2017, are as follows (in millions, except per share amounts):



	Three Months Ended March 31, 2017
	As Previously Reported		Adjustments			As Restated
Revenue:
Product	$	534.0	$	7.6		$	541.6
Service	140.2		(2.2		)	138.0
Total revenue	674.2		5.4			679.6
Cost of revenue:
Product	163.8		1.7			165.5
Service	44.3		—			44.3
Total cost of revenue	208.1		1.7			209.8
Gross profit	466.1		3.7			469.8
Operating expenses:
Selling, general and administrative	201.1		1.8			202.9
Research and development	73.5		—			73.5
Total operating expenses	274.6		1.8			276.4
Income from operations	191.5		1.9			193.4
Interest and other income, net	8.7		—			8.7
Income before taxes	200.2		1.9			202.1
Income tax expense	20.4		0.9			21.3
Net income attributable to Intuitive Surgical, Inc.	$	179.8	$	1.0		$	180.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic	$	1.61	$	0.01		$	1.62
Diluted	$	1.56	$	0.01		$	1.57
Total comprehensive income attributable to Intuitive Surgical, Inc.	$	180.7	$	1.0		$	181.7

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

In addition, the cumulative effect of ASC 606 to the Company's retained earnings at January 1, 2016 was $40.3 million. Adoption of the standard had no impact to total net cash from or used in operating, investing, or financing activities within the Condensed Consolidated Statements of Cash Flows.

As part of the Company's adoption of ASC 606, the Company elected to use the following practical expedients (i) to exclude disclosures of transaction prices allocated to remaining performance obligations when the Company expects to recognize such revenue for all periods prior to the date of initial application of ASC 606; (ii) not to adjust the promised amount of consideration for the effects of a significant financing component when the Company expects, at contract inception, that the period between the Company's transfer of a promised product or service to a customer and when the customer pays for that product or service will be one year or less; (iii) to expense costs as incurred for costs to obtain a contract when the amortization period would have been one year or less; (iv) not to recast revenue for contracts that begin and end in the same fiscal year; and (v) not to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer.

Intra-Entity Transfer of Assets Other than Inventory

Beginning fiscal 2018, the Company adopted ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The Company adopted this standard using the modified retrospective approach, and as a result, recorded a deferred tax asset with a corresponding cumulative adjustment to retained earnings of $390.8 million as of January 1, 2018, associated with an intra-entity transfer of certain intellectual property rights related to the Company’s non-U.S. business to its Swiss entity. The adjustment may be materially different as a result of recording additional deferred taxes upon finalization of the assessment of global intangible low-taxed income and other aspects from additional guidance and interpretations by U.S. regulatory and standard-setting bodies related to the Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017.

Business Combinations: Clarifying the Definition of a Business

Beginning fiscal 2018, the Company adopted ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The impact of the adoption on the Company's financial position and results of operations will be dependent upon future acquisitions or disposals, if any.

Statement of Cash Flow: Restricted Cash

Beginning fiscal 2018, the Company adopted ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires the statement of cash flows to explain the change during the period relating to total cash, cash equivalents, and restricted cash. The Company adopted this standard using the retrospective transition method by restating its condensed consolidated statements of cash flows to include restricted cash of $15.0 million in the beginning and ending cash, cash equivalents, and restricted cash balances for all periods presented. Net cash flows for the three months ended March 31, 2017, did not change as a result of including restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts presented on the statements of cash flows. Restricted cash was included in intangible and other assets, net on the Company's condensed consolidated balance sheets.

Significant Accounting Policies

With the exception of the change in the Company's Revenue Recognition policy as a result of the adoption of ASC 606, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, that are of significance, or potential significance to the Company.

Revenue Recognition

The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on January 1, 2018. The Company’s revenue consists of product revenue resulting from the sale of systems, system components, 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 the 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 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 distinct, which is if a product or service is separately identifiable from other items in the bundled package, and if a customer can benefit from it 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 up-front. System components, system accessories, instruments, accessories, and service are also sold on a stand-alone basis.

The Company recognizes revenues 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 at the following points in time:

•System sales. For systems, 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-year warranty. Warranty costs were not material for the periods presented.

•Instruments and accessories. Revenue from sales of instruments and accessories is recognized when control is transferred to the customers, which generally occur at the time of shipment, but also occur at the time of delivery depending on the customer arrangement. The Company allows its customers in the normal course of business to return unused products for a limited period of time subsequent to initial purchase and records an allowance against revenue.

•Service. Service revenue is recognized ratably over the term of the service period as the customers benefit from the service 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 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 as separate performance obligations in the arrangement for a system sale.

As part of a trade-in transaction, the customer receives a new generation system in exchange for its pre-owned system. The trade-in credit is negotiated at the time of the trade-in and is applied towards the purchase price of the new unit. Traded-in systems generally 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. Traded-in units are reported as a component of inventory until reconditioned and 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 fourth arm to a three-arm system, or adding a second surgeon console for use with the da Vinci Si, Xi, and X 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, type of customer, and market conditions. The Company regularly reviews standalone selling prices and updates these estimates if necessary.

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



	Three Months Ended March 31,
U.S.	2018		2017
Instruments and accessories	$	337.6	$	287.6
Systems	124.0		105.4
Services	110.8		101.8
Total U.S. revenue	$	572.4	$	494.8

Outside of U.S. (“OUS”)
Instruments and accessories	$	122.7	$	93.2
Systems	110.5		55.4
Services	41.9		36.2
Total OUS revenue	$	275.1	$	184.8

Total
Instruments and accessories	$	460.3	$	380.8
Systems	234.5		160.8
Services	152.7		138.0
Total revenue	$	847.5	$	679.6

Transaction price allocated to remaining performance obligations relates to amounts allocated to products and services for which the revenue that has not yet been recognized. A significant portion of this amount relates to the Company's service contracts and obligations that will be invoiced and recognized as revenue in future periods. Transaction price allocated to remaining performance obligations was approximately $1,104.3 million as of March 31, 2018.

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



	As of
	March 31, 2018		December 31, 2017
Contract assets	$	11.3	$	8.3
Deferred revenue	$	280.0	$	268.6

The Company invoices its customers based on the billing schedules in its sales arrangements. Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative selling price of the related performance obligations and the contractual billing terms in the arrangements. Deferred revenue for the periods presented was primarily related to service contracts, for which the service fees are billed up-front, generally quarterly or annually. The associated deferred revenue is generally recognized ratably over the service period. The Company did not have any significant impairment losses on its contract assets for the periods presented.

Revenue recognized for the three months ended March 31, 2018 and 2017, that was included in the deferred revenue balance at the beginning of each reporting period was $115.8 million and $98.5 million, respectively.

Assets Recognized from the Costs to Obtain a Contract with a Customer

The Company has determined that sales incentive programs for the Company’s sales team meet the requirements to be capitalized as the Company expects to generate future economic benefits from the related revenue generating contracts after the initial capital sales transaction. 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 when determining the economic life of the contract acquisition assets. The costs capitalized as contract acquisition costs included in intangible and other assets, net in the Company’s condensed consolidated balance sheets were $30.9 million and $31.4 million as of March 31, 2018, and December 31, 2017, respectively. The Company did not incur any impairment losses during any of the periods presented.

FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2018

Investments, All Other Investments [Abstract]

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, short-term, or long-term investments as of March 31, 2018, and December 31, 2017 (in millions):



										Reported as:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
March 31, 2018
Cash	$	257.9	$	—	$	—		$	257.9	$	257.9	$	—	$	—
Level 1:
Money market funds	593.0		—		—			593.0		593.0		—		—
U.S. treasuries	1,160.3		—		(7.8		)	1,152.5		26.6		560.2		565.7
Subtotal	1,753.3		—		(7.8		)	1,745.5		619.6		560.2		565.7
Level 2:
Commercial paper	96.2		—		—			96.2		62.7		33.5		—
Corporate debt securities	988.4		0.1		(7.0		)	981.5		—		499.5		482.0
U.S. government agencies	939.1		0.1		(6.2		)	933.0		34.5		395.3		503.2
Non-U.S. government securities	2.5		—		—			2.5		—		2.5		—
Municipal securities	51.6		—		—			51.6		—		51.6		—
Subtotal	2,077.8		0.2		(13.2		)	2,064.8		97.2		982.4		985.2
Total assets measured at fair value	$	4,089.0	$	0.2	$	(21.0	)	$	4,068.2	$	974.7	$	1,542.6	$	1,550.9



										Reported as:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
December 31, 2017
Cash	$	197.7	$	—	$	—		$	197.7	$	197.7	$	—	$	—
Level 1:
Money market funds	445.0		—		—			445.0		445.0		—		—
U.S. treasuries	1,029.1		—		(4.7		)	1,024.4		5.5		396.2		622.7
Subtotal	1,474.1		—		(4.7		)	1,469.4		450.5		396.2		622.7
Level 2:
Commercial paper	38.4		—		—			38.4		—		38.4		—
Corporate debt securities	946.6		0.2		(4.4		)	942.4		—		403.9		538.5
U.S. government agencies	901.3		—		(4.4		)	896.9		—		311.7		585.2
Non-U.S. government securities	2.5		—		—			2.5		—		2.5		—
Municipal securities	301.1		—		(1.9		)	299.2		—		159.7		139.5
Subtotal	2,189.9		0.2		(10.7		)	2,179.4		—		916.2		1,263.2
Total assets measured at fair value	$	3,861.7	$	0.2	$	(15.4	)	$	3,846.5	$	648.2	$	1,312.4	$	1,885.9

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 March 31, 2018 (in millions):



	Amortized Cost		Fair Value
Mature in less than one year	$	1,671.7	$	1,666.4
Mature in one to five years	1,566.4		1,550.9
Total	$	3,238.1	$	3,217.3

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations. Realized gains and losses, recognized on the sale of investments, were not material for any of the periods presented. There were no transfers between Level 1 and Level 2 measurements during the three months ended March 31, 2018, and there were no changes in the valuation techniques used by the Company.

Foreign Currency Derivatives

The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on cash flow from foreign currency denominated sales, expenses, intercompany balances, and other monetary assets or liabilities denominated in currencies other than the U.S. dollar (“USD”). The terms of the Company’s derivative contracts are generally twelve months or shorter. 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 European 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 the Swiss Franc (“CHF”).

For these derivatives, the Company reports the after-tax gain or loss from the hedge as a component of accumulated other comprehensive gain (loss) in stockholders’ equity and reclassifies it 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, and CHF. The net gains (losses) recognized in interest and other income, net in the condensed consolidated statements of comprehensive income for the three months ended March 31, 2018, and 2017, were not material.

The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for outstanding derivatives and aggregate gross fair value at the end of each period were as follows (in millions):



	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Notional amounts:
Forward contracts	$	142.7	$	128.5	$	141.6	$	168.4
Gross fair value recorded in:
Prepaids and other current assets	$	0.4	$	0.9	$	0.6	$	1.2
Other accrued liabilities	$	3.7	$	2.9	$	3.8	$	4.6

BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION

Balance Sheet Details

The following table provides further details of inventory (in millions):



	As of
Inventory	March 31, 2018		December 31, 2017
Raw materials	$	96.4	$	80.9
Work-in-process	28.9		19.7
Finished goods	158.3		140.6
Total inventory	$	283.6	$	241.2

The following table provides further details of the other long-term liabilities (in millions):



	As of
Other long-term liabilities	March 31, 2018		December 31, 2017
Income taxes—long-term	$	292.0	$	286.8
Deferred revenue—long-term	25.4		24.8
Other long-term liabilities	21.2		22.0
Total other long-term liabilities	$	338.6	$	333.6

Supplemental Cash Flow Information

The following table provides supplemental non-cash investing activities (in millions):



	Three Months Ended March 31,
	2018		2017
Equipment transfers, including operating lease assets, from inventory to property, plant, and equipment	$	26.5	$	10.6

LEASE RECEIVABLES

3 Months Ended

Mar. 31, 2018

Leases [Abstract]

LEASE RECEIVABLES

Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions):



	As of
	March 31, 2018			December 31, 2017
Gross lease receivables	$	133.7		$	128.0
Unearned income	(5.4		)	(5.0		)
Allowance for credit loss	(0.9		)	(0.9		)
Net investment in sales-type leases	$	127.4		$	122.1
Reported as:
Prepaids and other current assets	$	44.6		$	41.9
Intangible and other assets, net	82.8			80.2
Total, net	$	127.4		$	122.1

Contractual maturities of gross lease receivables at March 31, 2018, are as follows (in millions):



	Amount
2018	$	35.7
2019	40.7
2020	30.3
2021	16.1
2022	9.1
2023 and thereafter	1.8
Total	$	133.7

CONTINGENCIES	3 Months Ended
CONTINGENCIES	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES 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 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 accounting period and is based on all available information, including 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, or future results of operations. Purported Shareholder Class Action Lawsuits filed April 26, 2013, and May 24, 2013 On April 26, 2013, a purported class action lawsuit entitled Abrams v. Intuitive Surgical, et al., No. 5-13-cv-1920, was filed against a number of the Company’s current and former officers and directors in the United States District Court for the Northern District of California. A substantially identical complaint, entitled Adel v. Intuitive Surgical, et al., No. 5:13-cv-02365, was filed in the same court against the same defendants on May 24, 2013. The Adel case was voluntarily dismissed without prejudice on August 20, 2013. On October 15, 2013, plaintiffs in the Abrams matter filed an amended complaint. The case has since been retitled In re Intuitive Surgical Securities Litigation, No. 5:13-cv-1920. The plaintiffs seek unspecified damages on behalf of a putative class of persons who purchased or otherwise acquired the Company’s common stock between February 6, 2012, and July 18, 2013. The amended complaint alleges that the defendants violated federal securities laws by allegedly making false and misleading statements and omitting certain material facts in certain public statements and in the Company’s filings with the SEC. On November 18, 2013, the court appointed the Employees’ Retirement System of the State of Hawaii as lead plaintiff and appointed lead counsel. The Company filed a motion to dismiss the amended complaint on December 16, 2013, which was granted in part and denied in part on August 21, 2014. The plaintiffs elected not to further amend their complaint at that time. The plaintiffs moved for class certification on September 1, 2015, and following opposition and reply briefing, the court held a hearing on the motion on January 21, 2016. On November 2, 2016, Labaton Sucharow LLP filed a motion for leave to file an amended complaint. On December 22, 2016, the court entered an order granting plaintiffs’ motion for class certification. On January 25, 2017, the court entered an order granting plaintiffs’ motion for leave to amend the complaint. On February 9, 2017, the Company moved to dismiss the amended complaint. Following opposition and reply briefing, the matter was fully submitted to the court on March 2, 2017. The court denied the motion on September 29, 2017. On July 13, 2017, the parties filed a stipulation vacating the case schedule, which the court entered on July 14, 2017. On November 8, 2017, the court entered a new case schedule, with trial set to begin on October 30, 2018. On December 6, 2017, plaintiffs moved for approval of a proposed notice to the class members; the Company partially opposed that motion. The Court held a hearing regarding the motion on March 8, 2018, and ordered the parties to edit the proposed notice and submit it to the Court for approval. On March 9, 2018, the parties submitted a joint proposed notice, which the Court approved on March 12, 2018. On February 9, 2018, the Company filed a motion for summary judgment, which plaintiffs opposed on March 23, 2018. The Company will file a reply in support of its motion on April 23, 2018, and a hearing on the motion is scheduled for June 14, 2018. While the Company intends to vigorously defend itself, the actual outcome of this matter is dependent on many variables that are difficult to predict. 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. 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 these 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. In addition to the filed cases, the Company received a substantial number of claims relating to alleged complications from surgeries performed with certain versions of Monopolar Curved Scissor (“MCS”) instruments which included an MCS tip cover accessory that was the subject of a market withdrawal in 2012 and MCS instruments that were the subject of a recall in 2013. In an effort to avoid the expense and distraction of defending multiple lawsuits, the Company entered into tolling agreements to pause the applicable statutes of limitations for many of these claims and engaged in confidential mediation efforts. While the majority of the claims have been resolved, there are still a number of “tolled claims” that remain outstanding. During the three months ended March 31, 2018, and 2017, the Company recorded pre-tax charges of $4.5 million and $13.5 million, respectively, to reflect the estimated cost of settling a number of the product liability claims that are or that have been covered by the tolling agreements. As of March 31, 2018, and December 31, 2017, a total of $17.4 million and $12.8 million, respectively, were included in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets related to the pending product-liability cases and the tolled product liability claims. The Company’s estimate of the anticipated cost of resolving both the pending cases and the tolled claims is based on negotiations with attorneys for the claimants. Nonetheless, it is possible that more claims will be made by additional individuals and that the claimants whose claims have not yet been resolved will choose to pursue greater amounts in a court of law. Consequently, the final outcome of these claims is dependent on many variables that are difficult to predict and the ultimate cost associated with these product liability 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 United States 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. The parties are currently engaged in fact discovery regarding Ethicon’s allegations. 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.

STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Stock Repurchase Program

The Company’s Board of Directors (the “Board”) has authorized an aggregate of $6.2 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 December 2016 when the Board increased the authorized amount available under Repurchase Program to $3.0 billion. As of March 31, 2018, the remaining amount of share repurchases authorized by the Board was approximately $717.5 million.

There were no shares repurchased during the three months ended March 31, 2018. During the three months ended March 31, 2017, the Company entered into an accelerated share repurchase program (the “ASR Program”) with Goldman Sachs & Co. LLC (“Goldman”) and Goldman delivered to the Company approximately 7.3 million shares of the Company’s common stock, for which the Company made a payment of $2.0 billion to Goldman. On December 7, 2017, the Company completed the ASR Program by making a final settlement payment of $274.0 million to Goldman. The final average price per share paid under the ASR Program was $310.32.

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2018, and 2017, are as follows (in millions):



	Three Months Ended March 31, 2018
	Gains (Losses) on Hedge Instruments			Unrealized Gains (Losses) on Available-for-Sale Securities			Foreign Currency Translation Gains (Losses)			Employee Benefit Plans			Total
Beginning balance	$	(2.4	)	$	(11.3	)	$	2.3		$	(4.1	)	$	(15.5	)
Other comprehensive income (loss) before reclassifications	(3.0		)	(7.4		)	4.5			0.3			(5.6		)
Amounts reclassified from accumulated other comprehensive income (loss)	2.2			1.2			—			(0.4		)	3.0
Net current-period other comprehensive income (loss)	(0.8		)	(6.2		)	4.5			(0.1		)	(2.6		)
Ending balance	$	(3.2	)	$	(17.5	)	$	6.8		$	(4.2	)	$	(18.1	)

	Three Months Ended March 31, 2017
	Gains (Losses) on Hedge Instruments			Unrealized Gains (Losses) on Available-for-Sale Securities			Foreign Currency Translation Gains (Losses)			Employee Benefit Plans			Total
Beginning balance	$	5.0		$	(8.6	)	$	(1.3	)	$	(4.0	)	$	(8.9	)
Other comprehensive income (loss) before reclassifications	(2.1		)	2.9			1.8			0.1			2.7
Amounts reclassified from accumulated other comprehensive income (loss)	(1.8		)	(0.1		)	—			0.1			(1.8		)
Net current-period other comprehensive income (loss)	(3.9		)	2.8			1.8			0.2			0.9
Ending balance	$	1.1		$	(5.8	)	$	0.5		$	(3.8	)	$	(8.0	)

Retained Earnings

For the three months ended March 31, 2018, retained earnings balance includes a reduction of $96.7 million for shares withheld related to net share settlement of equity awards.

SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED COMPENSATION

As of March 31, 2018, approximately 4.7 million shares of common stock were reserved for future issuance under the Company’s stock plans. A maximum of approximately 2.0 million of these shares can be awarded as restricted stock units (“RSUs”).

Stock Option Information

A summary of stock option activity under all stock plans for the three months ended March 31, 2018, is presented as follows (in millions, except per share amounts):



	Stock Options Outstanding
	Number Outstanding		Weighted Average Exercise Price Per Share
Balance at December 31, 2017	7.2		$	164.16
Granted	0.2		$	417.56
Exercised	(0.4	)	$	130.88
Forfeited/expired	(0.1	)	$	195.63
Balance at March 31, 2018	6.9		$	174.94

As of March 31, 2018, options to purchase an aggregate of 5.4 million shares of common stock were exercisable at a weighted average price of $150.50 per share.

Restricted Stock Units Information

A summary of RSU activity for the three months ended March 31, 2018, is presented as follows (in millions, except per share amounts):



	Shares		Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2017	2.1		$	209.55
Granted	0.7		$	418.18
Vested	(0.7	)	$	190.57
Forfeited	—		$	248.75
Unvested balance at March 31, 2018	2.1		$	280.90

During the three months ended March 31, 2018, approximately 26,000 RSUs were forfeited.

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan (“ESPP”), employees purchased approximately 0.1 million shares for $25.3 million and approximately 0.1 million shares for $20.9 million during the three months ended March 31, 2018, and 2017, respectively.

Share-based Compensation Expense

The following table summarizes share-based compensation expense for the three months ended March 31, 2018, and 2017 (in millions):



	Three Months Ended March 31,
	2018		2017
Cost of sales - products	$	8.2	$	6.8
Cost of sales - services	3.9		3.2
Total cost of sales	12.1		10.0
Selling, general and administrative	29.5		25.7
Research and development	16.3		11.9
Share-based compensation expense before income taxes	57.9		47.6
Income tax benefit	12.3		15.5
Share-based compensation expense after income taxes	$	45.6	$	32.1

The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s stock plans and rights to acquire stock granted under the Company’s ESPP. The weighted average estimated fair values of stock options and rights to acquire stock under the ESPP, as well as the weighted average assumptions used in calculating those fair values, were as follows:



	Three Months Ended March 31,
	2018			2017
Stock Options
Risk-free interest rate	2.6		%	2.0		%
Expected term (in years)	4.3			4.3
Expected volatility	33		%	25		%
Fair value at grant date	$	130.51		$	56.52
ESPP
Risk-free interest rate	1.9		%	0.9		%
Expected term (in years)	1.2			1.3
Expected volatility	32		%	26		%
Fair value at grant date	$	124.61		$	61.59

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Income tax expense for the three months ended March 31, 2018, was $2.6 million, or 0.9% of income before taxes, compared with $21.3 million, or 10.5% of income before taxes, for the three months ended March 31, 2017. The effective tax rate for the three months ended March 31, 2018, differed from the U.S. federal statutory rate of 21% primarily due to excess tax benefits associated with employee equity plans and federal R&D credit benefits, partially offset by state income taxes. The effective tax rate for the three months ended March 31, 2017, differed from the U.S. federal statutory rate of 35% primarily due to excess tax benefits associated with employee equity plans, the effect of certain foreign earnings being taxed at rates lower than the federal statutory rate, and federal R&D credit benefit, partially offset by state income taxes. In connection with the Tax Act enacted in December 2017, the Company recorded a provisional amount of $317.8 million in its income tax expense for the year ended December 31, 2017. In accordance with relevant SEC guidance, the effects of the Tax Act may be adjusted within a one-year measurement period from the enactment date for items that were previously reported as provisional, or where a provisional estimate could not be made. Income tax provision for the three months ended March 31, 2018, did not reflect any adjustment to the previously assessed Tax Act enactment effect. Income tax expense for the three months ended March 31, 2018, reflected a $9.1 million estimate for the tax on global intangible low-taxed income enacted by the Tax Act. For the global intangible low-taxed income provisions of the Tax Act, the Company has not yet elected an accounting policy with respect to either recognize deferred taxes for basis differences expected to reverse as global intangible low-taxed income, or to record such as period costs if and when incurred. The Company will continue to assess forthcoming guidance and accounting interpretations on the effects of the Tax Act and expects to complete its analysis within the measurement period in accordance with the SEC guidance. As a result of the Tax Act, the Company can repatriate its cumulative undistributed foreign earnings back to the U.S. when, and if, needed with minimal additional tax consequences. As of March 31, 2018, the Company had a total of gross unrecognized tax benefits of $69.6 million compared with $65.4 million as of December 31, 2017, representing a net increase of approximately $4.2 million for the three months ended March 31, 2018. The net increase was primarily related to 2018 uncertain tax positions. If recognized, the gross unrecognized tax benefits would reduce the effective tax rate in the period of recognition. The Company files federal, state, and foreign income tax returns in many U.S. and OUS jurisdictions. Years before 2014 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

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

NET INCOME PER SHARE

The following table presents the computation of basic and diluted net income per share attributable to Intuitive Surgical, Inc. for the three months ended March 31, 2018, and 2017 (in millions, except per share amounts):



	Three Months Ended March 31,
	2018		2017
Numerator:
Net income attributable to Intuitive Surgical, Inc.	$	287.6	$	180.8
Denominator:
Weighted average shares outstanding used in basic calculation	112.8		111.9
Add: dilutive effect of potential common shares	5.2		3.6
Weighted average shares outstanding used in diluted calculation	118.0		115.5
Net income per share attributable to Intuitive Surgical, Inc.:
Basic	$	2.55	$	1.62
Diluted	$	2.44	$	1.57

Share-based compensation awards of approximately 0.2 million and 0.6 million shares for the three months ended March 31, 2018, and 2017, 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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Adopted Accounting Pronouncement

Revenue from Contracts with Customers



	Three Months Ended March 31, 2017
	As Previously Reported		Adjustments			As Restated
Revenue:
Product	$	534.0	$	7.6		$	541.6
Service	140.2		(2.2		)	138.0
Total revenue	674.2		5.4			679.6
Cost of revenue:
Product	163.8		1.7			165.5
Service	44.3		—			44.3
Total cost of revenue	208.1		1.7			209.8
Gross profit	466.1		3.7			469.8
Operating expenses:
Selling, general and administrative	201.1		1.8			202.9
Research and development	73.5		—			73.5
Total operating expenses	274.6		1.8			276.4
Income from operations	191.5		1.9			193.4
Interest and other income, net	8.7		—			8.7
Income before taxes	200.2		1.9			202.1
Income tax expense	20.4		0.9			21.3
Net income attributable to Intuitive Surgical, Inc.	$	179.8	$	1.0		$	180.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic	$	1.61	$	0.01		$	1.62
Diluted	$	1.56	$	0.01		$	1.57
Total comprehensive income attributable to Intuitive Surgical, Inc.	$	180.7	$	1.0		$	181.7

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

Intra-Entity Transfer of Assets Other than Inventory

Business Combinations: Clarifying the Definition of a Business

Statement of Cash Flow: Restricted Cash

Revenue Recognition

Assets Recognized from the Costs to Obtain a Contract with a Customer

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Schedule of Impact of Adopting New Standard



	Three Months Ended March 31, 2017
	As Previously Reported		Adjustments			As Restated
Revenue:
Product	$	534.0	$	7.6		$	541.6
Service	140.2		(2.2		)	138.0
Total revenue	674.2		5.4			679.6
Cost of revenue:
Product	163.8		1.7			165.5
Service	44.3		—			44.3
Total cost of revenue	208.1		1.7			209.8
Gross profit	466.1		3.7			469.8
Operating expenses:
Selling, general and administrative	201.1		1.8			202.9
Research and development	73.5		—			73.5
Total operating expenses	274.6		1.8			276.4
Income from operations	191.5		1.9			193.4
Interest and other income, net	8.7		—			8.7
Income before taxes	200.2		1.9			202.1
Income tax expense	20.4		0.9			21.3
Net income attributable to Intuitive Surgical, Inc.	$	179.8	$	1.0		$	180.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic	$	1.61	$	0.01		$	1.62
Diluted	$	1.56	$	0.01		$	1.57
Total comprehensive income attributable to Intuitive Surgical, Inc.	$	180.7	$	1.0		$	181.7

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 March 31,
U.S.	2018		2017
Instruments and accessories	$	337.6	$	287.6
Systems	124.0		105.4
Services	110.8		101.8
Total U.S. revenue	$	572.4	$	494.8

Outside of U.S. (“OUS”)
Instruments and accessories	$	122.7	$	93.2
Systems	110.5		55.4
Services	41.9		36.2
Total OUS revenue	$	275.1	$	184.8

Total
Instruments and accessories	$	460.3	$	380.8
Systems	234.5		160.8
Services	152.7		138.0
Total revenue	$	847.5	$	679.6

Summary of Contract Assets and Liabilities

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



	As of
	March 31, 2018		December 31, 2017
Contract assets	$	11.3	$	8.3
Deferred revenue	$	280.0	$	268.6

FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Investments, All Other Investments [Abstract]

Summary of Cash and Available-For-Sale Securities



										Reported as:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
March 31, 2018
Cash	$	257.9	$	—	$	—		$	257.9	$	257.9	$	—	$	—
Level 1:
Money market funds	593.0		—		—			593.0		593.0		—		—
U.S. treasuries	1,160.3		—		(7.8		)	1,152.5		26.6		560.2		565.7
Subtotal	1,753.3		—		(7.8		)	1,745.5		619.6		560.2		565.7
Level 2:
Commercial paper	96.2		—		—			96.2		62.7		33.5		—
Corporate debt securities	988.4		0.1		(7.0		)	981.5		—		499.5		482.0
U.S. government agencies	939.1		0.1		(6.2		)	933.0		34.5		395.3		503.2
Non-U.S. government securities	2.5		—		—			2.5		—		2.5		—
Municipal securities	51.6		—		—			51.6		—		51.6		—
Subtotal	2,077.8		0.2		(13.2		)	2,064.8		97.2		982.4		985.2
Total assets measured at fair value	$	4,089.0	$	0.2	$	(21.0	)	$	4,068.2	$	974.7	$	1,542.6	$	1,550.9



										Reported as:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
December 31, 2017
Cash	$	197.7	$	—	$	—		$	197.7	$	197.7	$	—	$	—
Level 1:
Money market funds	445.0		—		—			445.0		445.0		—		—
U.S. treasuries	1,029.1		—		(4.7		)	1,024.4		5.5		396.2		622.7
Subtotal	1,474.1		—		(4.7		)	1,469.4		450.5		396.2		622.7
Level 2:
Commercial paper	38.4		—		—			38.4		—		38.4		—
Corporate debt securities	946.6		0.2		(4.4		)	942.4		—		403.9		538.5
U.S. government agencies	901.3		—		(4.4		)	896.9		—		311.7		585.2
Non-U.S. government securities	2.5		—		—			2.5		—		2.5		—
Municipal securities	301.1		—		(1.9		)	299.2		—		159.7		139.5
Subtotal	2,189.9		0.2		(10.7		)	2,179.4		—		916.2		1,263.2
Total assets measured at fair value	$	3,861.7	$	0.2	$	(15.4	)	$	3,846.5	$	648.2	$	1,312.4	$	1,885.9

Summary of Contractual Maturities of Cash Equivalents and Available-For-Sale Investments



	Amortized Cost		Fair Value
Mature in less than one year	$	1,671.7	$	1,666.4
Mature in one to five years	1,566.4		1,550.9
Total	$	3,238.1	$	3,217.3

Gross Notional Amounts for Derivatives and Aggregate Gross Fair Value Outstanding



	Derivatives Designated as Hedging Instruments				Derivatives Not Designated as Hedging Instruments
	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
Notional amounts:
Forward contracts	$	142.7	$	128.5	$	141.6	$	168.4
Gross fair value recorded in:
Prepaids and other current assets	$	0.4	$	0.9	$	0.6	$	1.2
Other accrued liabilities	$	3.7	$	2.9	$	3.8	$	4.6

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5579240-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41620-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Inventory Details

The following table provides further details of inventory (in millions):



	As of
Inventory	March 31, 2018		December 31, 2017
Raw materials	$	96.4	$	80.9
Work-in-process	28.9		19.7
Finished goods	158.3		140.6
Total inventory	$	283.6	$	241.2

Other Long-term Liabilities

The following table provides further details of the other long-term liabilities (in millions):



	As of
Other long-term liabilities	March 31, 2018		December 31, 2017
Income taxes—long-term	$	292.0	$	286.8
Deferred revenue—long-term	25.4		24.8
Other long-term liabilities	21.2		22.0
Total other long-term liabilities	$	338.6	$	333.6

Supplemental Cash Flow Information

The following table provides supplemental non-cash investing activities (in millions):



	Three Months Ended March 31,
	2018		2017
Equipment transfers, including operating lease assets, from inventory to property, plant, and equipment	$	26.5	$	10.6

LEASE RECEIVABLES (Tables)

3 Months Ended

Mar. 31, 2018

Leases [Abstract]

Schedule of Lease Receivables

Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions):



	As of
	March 31, 2018			December 31, 2017
Gross lease receivables	$	133.7		$	128.0
Unearned income	(5.4		)	(5.0		)
Allowance for credit loss	(0.9		)	(0.9		)
Net investment in sales-type leases	$	127.4		$	122.1
Reported as:
Prepaids and other current assets	$	44.6		$	41.9
Intangible and other assets, net	82.8			80.2
Total, net	$	127.4		$	122.1

Schedule of Contractual Maturities of Gross Lease Receivables

Contractual maturities of gross lease receivables at March 31, 2018, are as follows (in millions):



	Amount
2018	$	35.7
2019	40.7
2020	30.3
2021	16.1
2022	9.1
2023 and thereafter	1.8
Total	$	133.7

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Components of Accumulated Other Comprehensive Income, Net of Tax

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2018, and 2017, are as follows (in millions):



	Three Months Ended March 31, 2018
	Gains (Losses) on Hedge Instruments			Unrealized Gains (Losses) on Available-for-Sale Securities			Foreign Currency Translation Gains (Losses)			Employee Benefit Plans			Total
Beginning balance	$	(2.4	)	$	(11.3	)	$	2.3		$	(4.1	)	$	(15.5	)
Other comprehensive income (loss) before reclassifications	(3.0		)	(7.4		)	4.5			0.3			(5.6		)
Amounts reclassified from accumulated other comprehensive income (loss)	2.2			1.2			—			(0.4		)	3.0
Net current-period other comprehensive income (loss)	(0.8		)	(6.2		)	4.5			(0.1		)	(2.6		)
Ending balance	$	(3.2	)	$	(17.5	)	$	6.8		$	(4.2	)	$	(18.1	)

	Three Months Ended March 31, 2017
	Gains (Losses) on Hedge Instruments			Unrealized Gains (Losses) on Available-for-Sale Securities			Foreign Currency Translation Gains (Losses)			Employee Benefit Plans			Total
Beginning balance	$	5.0		$	(8.6	)	$	(1.3	)	$	(4.0	)	$	(8.9	)
Other comprehensive income (loss) before reclassifications	(2.1		)	2.9			1.8			0.1			2.7
Amounts reclassified from accumulated other comprehensive income (loss)	(1.8		)	(0.1		)	—			0.1			(1.8		)
Net current-period other comprehensive income (loss)	(3.9		)	2.8			1.8			0.2			0.9
Ending balance	$	1.1		$	(5.8	)	$	0.5		$	(3.8	)	$	(8.0	)

SHARE-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Activity Under All Stock Plans

A summary of stock option activity under all stock plans for the three months ended March 31, 2018, is presented as follows (in millions, except per share amounts):



	Stock Options Outstanding
	Number Outstanding		Weighted Average Exercise Price Per Share
Balance at December 31, 2017	7.2		$	164.16
Granted	0.2		$	417.56
Exercised	(0.4	)	$	130.88
Forfeited/expired	(0.1	)	$	195.63
Balance at March 31, 2018	6.9		$	174.94

Summary of RSU Activity

A summary of RSU activity for the three months ended March 31, 2018, is presented as follows (in millions, except per share amounts):



	Shares		Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2017	2.1		$	209.55
Granted	0.7		$	418.18
Vested	(0.7	)	$	190.57
Forfeited	—		$	248.75
Unvested balance at March 31, 2018	2.1		$	280.90

During the three months ended March 31, 2018, approximately 26,000 RSUs were forfeited.

Summary of Share-Based Compensation Expense

The following table summarizes share-based compensation expense for the three months ended March 31, 2018, and 2017 (in millions):



	Three Months Ended March 31,
	2018		2017
Cost of sales - products	$	8.2	$	6.8
Cost of sales - services	3.9		3.2
Total cost of sales	12.1		10.0
Selling, general and administrative	29.5		25.7
Research and development	16.3		11.9
Share-based compensation expense before income taxes	57.9		47.6
Income tax benefit	12.3		15.5
Share-based compensation expense after income taxes	$	45.6	$	32.1

Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions



	Three Months Ended March 31,
	2018			2017
Stock Options
Risk-free interest rate	2.6		%	2.0		%
Expected term (in years)	4.3			4.3
Expected volatility	33		%	25		%
Fair value at grant date	$	130.51		$	56.52
ESPP
Risk-free interest rate	1.9		%	0.9		%
Expected term (in years)	1.2			1.3
Expected volatility	32		%	26		%
Fair value at grant date	$	124.61		$	61.59

NET INCOME PER SHARE (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income Per Share



	Three Months Ended March 31,
	2018		2017
Numerator:
Net income attributable to Intuitive Surgical, Inc.	$	287.6	$	180.8
Denominator:
Weighted average shares outstanding used in basic calculation	112.8		111.9
Add: dilutive effect of potential common shares	5.2		3.6
Weighted average shares outstanding used in diluted calculation	118.0		115.5
Net income per share attributable to Intuitive Surgical, Inc.:
Basic	$	2.55	$	1.62
Diluted	$	2.44	$	1.57

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ 698.0			$ 115.0
Net cash provided by operating activities	280.2	$ 241.5
Restricted cash	$ 15.0
Total period of service	5 years
Additional period of service after first free year	4 years
General warranty period	1 year
Price allocated to remaining performance obligations	$ 1,104.3
Revenue recognized	115.8	$ 98.5
Costs capitalized as contract acquisition costs	$ 30.9			31.4
ASC 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings				$ 115.0
ASC 606 \| Difference between revenue euidance in effect before and after topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings					$ 40.3
ASU 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative catch-up adjustment to retained earnings			$ 390.8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Impact of Adopting New Standard (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Revenue:
Product	$ 694.8	$ 541.6
Service	152.7	138.0
Total revenue	847.5	679.6
Cost of revenue:
Product	201.5	165.5
Service	52.2	44.3
Total cost of revenue	253.7	209.8
Gross profit	593.8	469.8
Operating expenses:
Selling, general and administrative	221.6	202.9
Research and development	95.5	73.5
Total operating expenses	317.1	276.4
Income from operations	276.7	193.4
Interest and other income, net	13.2	8.7
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest	289.9	202.1
Income tax expense	2.6	21.3
Net income	$ 287.3	$ 180.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)	$ 2.55	$ 1.62
Diluted (in dollars per share)	$ 2.44	$ 1.57
Total comprehensive income attributable to Intuitive Surgical, Inc.	$ 285.0	$ 181.7
ASSETS
Accounts receivable, net	474.9		$ 507.9
Prepaids and other current assets	105.9		99.2
Deferred tax assets	426.8		72.0
Intangible and other assets, net	203.8		195.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue	254.6		243.8
Other accrued liabilities	126.7		168.9
Other long-term liabilities	21.2		22.0
Retained earnings	$ 698.0		115.0
ASC 606
Revenue:
Product		541.6
Service		138.0
Total revenue		679.6
Cost of revenue:
Product		165.5
Service		44.3
Total cost of revenue		209.8
Gross profit		469.8
Operating expenses:
Selling, general and administrative		202.9
Research and development		73.5
Total operating expenses		276.4
Income from operations		193.4
Interest and other income, net		8.7
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		202.1
Income tax expense		21.3
Net income		$ 180.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)		$ 1.62
Diluted (in dollars per share)		$ 1.57
Total comprehensive income attributable to Intuitive Surgical, Inc.		$ 181.7
ASSETS
Accounts receivable, net			507.9
Prepaids and other current assets			99.2
Deferred tax assets			72.0
Intangible and other assets, net			195.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue			243.8
Other accrued liabilities			168.9
Other long-term liabilities			333.6
Retained earnings			115.0
ASC 606 \| As Previously Reported
Revenue:
Product		534.0
Service		140.2
Total revenue		674.2
Cost of revenue:
Product		163.8
Service		44.3
Total cost of revenue		208.1
Gross profit		466.1
Operating expenses:
Selling, general and administrative		201.1
Research and development		73.5
Total operating expenses		274.6
Income from operations		191.5
Interest and other income, net		8.7
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		200.2
Income tax expense		20.4
Net income		$ 179.8
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)		$ 1.61
Diluted (in dollars per share)		$ 1.56
Total comprehensive income attributable to Intuitive Surgical, Inc.		$ 180.7
ASSETS
Accounts receivable, net			511.9
Prepaids and other current assets			97.2
Deferred tax assets			87.3
Intangible and other assets, net			159.7
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue			284.5
Other accrued liabilities			169.5
Other long-term liabilities			327.1
Retained earnings			61.4
ASC 606 \| Adjustments
Revenue:
Product		7.6
Service		(2.2)
Total revenue		5.4
Cost of revenue:
Product		1.7
Service		0.0
Total cost of revenue		1.7
Gross profit		3.7
Operating expenses:
Selling, general and administrative		1.8
Research and development		0.0
Total operating expenses		1.8
Income from operations		1.9
Interest and other income, net		0.0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest		1.9
Income tax expense		0.9
Net income		$ 1.0
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)		$ 0.01
Diluted (in dollars per share)		$ 0.01
Total comprehensive income attributable to Intuitive Surgical, Inc.		$ 1.0
ASSETS
Accounts receivable, net			(4.0)
Prepaids and other current assets			2.0
Deferred tax assets			(15.3)
Intangible and other assets, net			36.1
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue			(40.7)
Other accrued liabilities			(0.6)
Other long-term liabilities			6.5
Retained earnings			$ 53.6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Disaggregated by Types and Geography (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Total revenue	$ 847.5	$ 679.6
U.S.
Disaggregation of Revenue [Line Items]
Total revenue	572.4	494.8
Outside of U.S. (“OUS”)
Disaggregation of Revenue [Line Items]
Total revenue	275.1	184.8
Instruments and accessories
Disaggregation of Revenue [Line Items]
Total revenue	460.3	380.8
Instruments and accessories \| U.S.
Disaggregation of Revenue [Line Items]
Total revenue	337.6	287.6
Instruments and accessories \| Outside of U.S. (“OUS”)
Disaggregation of Revenue [Line Items]
Total revenue	122.7	93.2
Systems
Disaggregation of Revenue [Line Items]
Total revenue	234.5	160.8
Systems \| U.S.
Disaggregation of Revenue [Line Items]
Total revenue	124.0	105.4
Systems \| Outside of U.S. (“OUS”)
Disaggregation of Revenue [Line Items]
Total revenue	110.5	55.4
Services
Disaggregation of Revenue [Line Items]
Total revenue	152.7	138.0
Services \| U.S.
Disaggregation of Revenue [Line Items]
Total revenue	110.8	101.8
Services \| Outside of U.S. (“OUS”)
Disaggregation of Revenue [Line Items]
Total revenue	$ 41.9	$ 36.2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Contract assets	$ 11.3	$ 8.3
Contract with Customer, Liability	$ 280.0	$ 268.6

FINANCIAL INSTRUMENTS - Summary of Cash and Available-For-Sale Securities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 4,089.0	$ 3,861.7
Gross Unrealized Gains	0.2	0.2
Gross Unrealized Losses	(21.0)	(15.4)
Fair Value	4,068.2	3,846.5
Cash and Cash Equivalents	974.7	648.2
Short- term Investments	1,542.6	1,312.4
Long- term Investments	1,550.9	1,885.9
Cash
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	257.9	197.7
Fair Value	257.9	197.7
Cash and Cash Equivalents	257.9	197.7
Level 1
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,753.3	1,474.1
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	(7.8)	(4.7)
Fair Value	1,745.5	1,469.4
Cash and Cash Equivalents	619.6	450.5
Short- term Investments	560.2	396.2
Long- term Investments	565.7	622.7
Level 1 \| Money market funds
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	593.0	445.0
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	593.0	445.0
Cash and Cash Equivalents	593.0	445.0
Short- term Investments	0.0	0.0
Long- term Investments	0.0	0.0
Level 1 \| U.S. treasuries
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,160.3	1,029.1
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	(7.8)	(4.7)
Fair Value	1,152.5	1,024.4
Cash and Cash Equivalents	26.6	5.5
Short- term Investments	560.2	396.2
Long- term Investments	565.7	622.7
Level 2
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,077.8	2,189.9
Gross Unrealized Gains	0.2	0.2
Gross Unrealized Losses	(13.2)	(10.7)
Fair Value	2,064.8	2,179.4
Cash and Cash Equivalents	97.2	0.0
Short- term Investments	982.4	916.2
Long- term Investments	985.2	1,263.2
Level 2 \| Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	96.2	38.4
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	96.2	38.4
Cash and Cash Equivalents	62.7	0.0
Short- term Investments	33.5	38.4
Long- term Investments	0.0	0.0
Level 2 \| Corporate debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	988.4	946.6
Gross Unrealized Gains	0.1	0.2
Gross Unrealized Losses	(7.0)	(4.4)
Fair Value	981.5	942.4
Cash and Cash Equivalents	0.0	0.0
Short- term Investments	499.5	403.9
Long- term Investments	482.0	538.5
Level 2 \| U.S. government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	939.1	901.3
Gross Unrealized Gains	0.1	0.0
Gross Unrealized Losses	(6.2)	(4.4)
Fair Value	933.0	896.9
Cash and Cash Equivalents	34.5	0.0
Short- term Investments	395.3	311.7
Long- term Investments	503.2	585.2
Level 2 \| Non-U.S. government securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2.5	2.5
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	0.0
Fair Value	2.5	2.5
Cash and Cash Equivalents	0.0	0.0
Short- term Investments	2.5	2.5
Long- term Investments	0.0	0.0
Level 2 \| Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	51.6	301.1
Gross Unrealized Gains	0.0	0.0
Gross Unrealized Losses	0.0	(1.9)
Fair Value	51.6	299.2
Cash and Cash Equivalents	0.0	0.0
Short- term Investments	51.6	159.7
Long- term Investments	$ 0.0	$ 139.5

FINANCIAL INSTRUMENTS - Summary of Contractual Maturities of Cash Equivalents and Available-For-Sale Investments (Details) $ in Millions	Mar. 31, 2018 USD ($)
Amortized Cost
Mature in less than one year	$ 1,671.7
Mature in one to five years	1,566.4
Total	3,238.1
Fair Value
Mature in less than one year	1,666.4
Mature in one to five years	1,550.9
Total	$ 3,217.3

FINANCIAL INSTRUMENTS - Gross Notional Amounts for Outstanding Derivatives (Details) - Forward contracts - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivatives Designated as Hedging Instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount, forward contracts	$ 142.7	$ 128.5
Gross fair value of derivative assets	0.4	0.9
Gross fair value of derivative liabilities	3.7	2.9
Derivatives Not Designated as Hedging Instruments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount, forward contracts	141.6	168.4
Gross fair value of derivative assets	0.6	1.2
Gross fair value of derivative liabilities	$ 3.8	$ 4.6

BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION - Inventory (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials	$ 96.4	$ 80.9
Work-in-process	28.9	19.7
Finished goods	158.3	140.6
Total inventory	$ 283.6	$ 241.2

BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION - Other Long-term Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Income taxes—long-term	$ 292.0	$ 286.8
Deferred revenue—long-term	25.4	24.8
Other long-term liabilities	21.2	22.0
Total other long-term liabilities	$ 338.6	$ 333.6

- Definition

The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

+ References + Details

BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Supplemental non-cash investing activities:
Equipment transfers, including operating lease assets, from inventory to property, plant, and equipment	$ 26.5	$ 10.6

LEASE RECEIVABLES - Lease Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Capital Leased Assets [Line Items]
Gross lease receivables	$ 133.7	$ 128.0
Unearned income	(5.4)	(5.0)
Allowance for credit loss	(0.9)	(0.9)
Net investment in sales-type leases	127.4	122.1
Reported as:
Net investment in sales-type leases	127.4	122.1
Prepaids and other current assets
Reported as:
Prepaids and other current assets	44.6	41.9
Intangible and other assets, net
Reported as:
Intangible and other assets, net	$ 82.8	$ 80.2

LEASE RECEIVABLES - Gross Contractual Maturities of Lease Receivables (Details) $ in Millions	Mar. 31, 2018 USD ($)
Leases [Abstract]
2018	$ 35.7
2019	40.7
2020	30.3
2021	16.1
2022	9.1
2023 and thereafter	1.8
Total	$ 133.7

CONTINGENCIES (Details) - USD ($) $ in Millions	3 Months Ended
CONTINGENCIES (Details) - USD ($) $ in Millions	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Commitments and Contingencies [Line Items]
Loss contingency liability	$ 17.4		$ 12.8
da Vinci Surgical System Product Liability Matters
Commitments and Contingencies [Line Items]
Estimated cost of settling product liability claims	$ 4.5	$ 13.5

STOCKHOLDERS' EQUITY - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions		3 Months Ended
	Dec. 07, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2016
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock		$ 0	$ 2,000,000,000
Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Remaining amount of share repurchases authorized		717,500,000
ASR Program \| Goldman
Equity, Class of Treasury Stock [Line Items]
Repurchase of common stock	$ 274,000,000		$ 2,000,000,000
Shares repurchased			7.3
Final average price per share paid (in dollars per share)	$ 310.32
Common Stock \| Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Amount of share repurchases authorized		$ 6,200,000,000.0
Stock repurchase program, increased to authorized amount				$ 3,000,000,000.0

STOCKHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Gains (Losses) on Hedge Instruments
Beginning balance	$ (2.4)	$ 5.0
Other comprehensive income (loss) before reclassifications	(3.0)	(2.1)
Amounts reclassified from accumulated other comprehensive income (loss)	2.2	(1.8)
Net current-period other comprehensive income (loss)	(0.8)	(3.9)
Ending balance	(3.2)	1.1
Unrealized Gains (Losses) on Available-for-Sale Securities
Beginning balance	(11.3)	(8.6)
Other comprehensive income (loss) before reclassifications	(7.4)	2.9
Amounts reclassified from accumulated other comprehensive income (loss)	1.2	(0.1)
Net current-period other comprehensive income (loss)	(6.2)	2.8
Ending balance	(17.5)	(5.8)
Foreign Currency Translation Gains (Losses)
Beginning balance	2.3	(1.3)
Other comprehensive income (loss) before reclassifications	4.5	1.8
Amounts reclassified from accumulated other comprehensive income (loss)	0.0	0.0
Net current-period other comprehensive income (loss)	4.5	1.8
Ending balance	6.8	0.5
Employee Benefit Plans
Beginning balance	(4.1)	(4.0)
Other comprehensive income (loss) before reclassifications	0.3	0.1
Amounts reclassified from accumulated other comprehensive income (loss)	(0.4)	0.1
Net current-period other comprehensive income (loss)	(0.1)	0.2
Ending balance	(4.2)	(3.8)
Total
Beginning balance	(15.5)	(8.9)
Other comprehensive income (loss) before reclassifications	(5.6)	2.7
Amounts reclassified from accumulated other comprehensive income (loss)	3.0	(1.8)
Net current-period other comprehensive income (loss)	(2.6)	0.9
Ending balance	$ (18.1)	$ (8.0)
Shares withheld related to net share settlement of equity awards	96.7

SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance	4,700
Options exercisable, number of shares	5,400
Options exercisable, weighted-average exercise price (usd per share)	$ 150.50
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance	2,000
Forfeited (in shares)	(26)
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, number of shares purchased by employees	100	100
Employee Stock Purchase Plan, value of shares purchased by employees	$ 25.3	$ 20.9

SHARE-BASED COMPENSATION - Summary Of Stock Option Activity Under All Stock Plans (Details) shares in Millions	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Number Outstanding
Beginning balance, Number Outstanding \| shares	7.2
Options granted, Number Outstanding \| shares	0.2
Options exercised, Number Outstanding \| shares	(0.4)
Options forfeited/expired, Number Outstanding \| shares	(0.1)
Ending balance, Number Outstanding \| shares	6.9
Weighted Average Exercise Price Per Share
Beginning balance, Weighted Average Exercise Price Per Share \| $ / shares	$ 164.16
Options granted, Weighted Average Exercise Price Per Share \| $ / shares	417.56
Options exercised, Weighted Average Exercise Price Per Share \| $ / shares	130.88
Options forfeited/expired, Weighted Average Exercise Price Per Share \| $ / shares	195.63
Ending balance, Weighted Average Exercise Price Per Share \| $ / shares	$ 174.94

SHARE-BASED COMPENSATION - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Shares
Unvested beginning balance (in shares) \| shares	2,100
Granted (in shares) \| shares	700
Vested (in shares) \| shares	(700)
Forfeited (in shares) \| shares	(26)
Unvested ending balance (in shares) \| shares	2,100
Weighted Average Grant Date Fair Value
Unvested beginning balance (usd per share) \| $ / shares	$ 209.55
Granted (usd per share) \| $ / shares	418.18
Vested (usd per share) \| $ / shares	190.57
Forfeited (usd per share) \| $ / shares	248.75
Unvested ending balance (usd per share) \| $ / shares	$ 280.90

SHARE-BASED COMPENSATION - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense before income taxes	$ 57.9	$ 47.6
Income tax benefit	12.3	15.5
Share-based compensation expense after income taxes	45.6	32.1
Total cost of sales
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense before income taxes	12.1	10.0
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	8.2	6.8
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	3.9	3.2
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense before income taxes	29.5	25.7
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense before income taxes	$ 16.3	$ 11.9

SHARE-BASED COMPENSATION - Schedule Of Estimated Fair Value Of Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	2.60%	2.00%
Expected term (in years)	4 years 3 months 18 days	4 years 4 months 1 day
Expected volatility (percent)	33.00%	25.00%
Weighted average fair value at grant date (usd per share)	$ 130.51	$ 56.52
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.90%	0.90%
Expected term (in years)	1 year 2 months 12 days	1 year 4 months 1 day
Expected volatility (percent)	32.00%	26.00%
Weighted average fair value at grant date (usd per share)	$ 124.61	$ 61.59

INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 2.6	$ 21.3
Income tax expense, percentage of pre-tax income	0.90%	10.50%
Effective tax rate	21.00%	35.00%
Provisional income tax expense			$ 317.8
Provisional estimate of minimum tax on foreign earnings	$ 9.1
Total gross unrecognized tax benefits	69.6		$ 65.4
Net decrease of unrecognized tax benefits	$ (4.2)

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
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net income attributable to Intuitive Surgical, Inc.	$ 287.6	$ 180.8
Denominator:
Weighted average shares outstanding used in basic calculation	112.8	111.9
Add: dilutive effect of potential common shares	5.2	3.6
Weighted average shares outstanding used in diluted calculation	118.0	115.5
Net income per share attributable to Intuitive Surgical, Inc.:
Basic (in dollars per share)	$ 2.55	$ 1.62
Diluted (in dollars per share)	$ 2.44	$ 1.57

NET INCOME PER SHARE - Additional Information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share [Abstract]
Employee stock options excluded from computation of diluted net income per share	0.2	0.6