Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 31

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 31
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 September 30, 2024.

The effective tax rate for the three months ended September 30, 2025, differed from the U.S. federal statutory rate of 21% primarily due to the excess tax benefits associated with employee equity plans and benefits from the release of unrecognized tax benefits, partially offset by state income taxes (net of the federal benefit). The effective tax rate for the three months ended September 30, 2024, differed from the U.S. federal statutory rate of 21% primarily due to the excess tax benefits associated with employee equity plans and the federal research and development credit benefit, partially offset by U.S. tax on foreign earnings.The effective tax rates for the nine months ended September 30, 2025, and 2024, differed from the U.S. federal statutory rate of 21% primarily due to the excess tax benefits associated with employee equity plans and the federal research and development credit benefit, partially offset by state income taxes (net of the federal benefit) and U.S. tax on foreign earnings.

The Company’s provision for income taxes for the three months ended September 30, 2025, and 2024, included excess tax benefits associated with employee equity plans of $24.2 million and $42.2 million, respectively, which reduced the Company’s effective tax rate by 2.8 and 6.3 percentage points, respectively. The provision for income taxes for the nine months ended September 30, 2025, and 2024, included excess tax benefits associated with employee equity plans of $202.5 million and $189.0 million, respectively, which reduced the Company’s effective tax rate by 8.6 and 10.1 percentage points, respectively.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBB Act”) was enacted, introducing amendments to U.S. tax laws with various effective dates from 2025 to 2027. The changes introduced by the OBBB Act are not expected to have a material impact on the Company’s annual effective tax rate for 2025.

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The Company files federal, state, and foreign income tax returns in many jurisdictions in the U.S. and OUS. Years before 2020 are considered closed for significant jurisdictions. Certain of the Company’s unrecognized tax benefits could change due to activities of various tax authorities, including evolving interpretations of existing tax laws in the jurisdictions in which the Company operates, potential assessment of additional tax, possible settlement of