Company: ISRG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001035267-25-000109
Chunk: 39

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 1
Chunk 39
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3, we have entered into sales-type and fixed-payment operating lease arrangements directly with certain qualified customers as a way to offer customers flexibility in how they acquire systems and expand their robotic-assisted programs while leveraging our balance sheet. These leases generally have commercially competitive terms as compared to other third-party entities that offer equipment leasing. We also enter into usage-based operating lease arrangements with qualified customers that have committed da Vinci programs where we charge for the system and service as procedures are performed, offering greater predictability in costs for customers. We believe that all of these alternative financing structures have been effective and well-received, and we are willing to expand the proportion of any of these structures based on customer needs and demand.

We include systems placed under fixed-payment and usage-based operating lease arrangements, as well as sales-type lease arrangements, in our system placement and installed base disclosures. We exclude operating lease-related revenue, including usage-based revenue, and Ion system revenue from our da Vinci surgical system average selling price (“ASP”) computations.

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The following table summarizes our system placements under leasing arrangements:

Year Ended December 31,202420232022Da Vinci System Placements under Leasing ArrangementsFixed-payment operating lease arrangements309 304 276 Usage-based operating lease arrangements467 355 216 Total da Vinci system placements under operating lease arrangements776 659 492 % of Total da Vinci system placements51 %48 %39 %Sales-type lease arrangements88 45 99 Total da Vinci system placements under leasing arrangements864 704 591 Ion System Placements under Leasing ArrangementsFixed-payment operating lease arrangements85 63 61 Usage-based operating lease arrangements68 54 40 Total Ion system placements under operating lease arrangements153 117 101 % of Total Ion system placements56 %55 %53 %Sales-type lease arrangements4 5 11 Total Ion system placements under leasing arrangements157 122 112 

Operating lease revenue has grown at a faster rate than overall systems revenue and was $654 million, $501 million, and $377 million for the years ended December 31, 2024, 2023, and 2022, respectively, of which $338 million, $217 million, and $133 million, respectively, was variable lease revenue related to our usage-based operating lease arrangements. Variable lease revenue related to our usage-based operating lease arrangements has been included in our operating lease metrics herein.

Revenue for systems sold or placed under a sales-type lease arrangement is recognized