Company: ISRG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001035267-25-000192
Chunk: 15

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 15
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2024Sales-type lease revenue$15.1 $45.1 $41.6 $58.4 Operating lease revenue*$213.8 $156.9 $409.0 $304.9 *Variable lease revenue related to usage-based arrangements included within operating lease revenue$130.0 $80.1 $241.7 $150.1 

Trade Accounts ReceivableThe allowance for doubtful accounts is based on the Company’s assessment of the collectibility of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. For the three and six months ended June 30, 2025, and 2024, bad debt expense was not material.

The Company’s exposure to credit losses may increase if its customers are adversely affected by changes in healthcare laws, procedure coverage and reimbursement, economic pressures or uncertainty associated with local or global economic recessions, or other customer-specific factors. Although the Company has historically not experienced significant credit losses, it is possible that there could be a material adverse impact from potential adjustments of the carrying amount of lease and trade receivables as hospital cash flows are impacted by macroeconomic factors, including inflation, tariffs, high interest rates, and staffing shortages.

NOTE 6.    LEASES

Lessor Information related to Intuitive System LeasingSales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions):As ofJune 30, 2025December 31, 2024Gross lease receivables$351.8 $393.4 Unearned income(13.7)(13.9)Subtotal338.1 379.5 Allowance for credit loss(2.6)(2.6)Net investment in sales-type leases$335.5 $376.9 Reported as:Prepaids and other current assets$125.0 $131.4 Intangible and other assets, net210.5 245.5  Net investment in sales-type leases$335.5 $376.9 Contractual maturities of gross lease receivables as of June 30, 2025, are as follows (in millions):Fiscal YearAmountRemainder of 2025$60.5 202612