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

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 10
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 will be required to sell any of the investments before recovery of their amortized cost basis, which may be at maturity. Therefore, the Company does not expect to realize any losses on these available-for-sale debt securities. Additional factors considered in determining the treatment of unrealized losses include the financial condition and near-term prospects of the investee, the extent of the loss related to the credit of the issuer, and the expected cash flows from the security.

For the three and six months ended June 30, 2025, and 2024, credit losses related to available-for-sales debt securities were not material.

Equity InvestmentsThe Company’s equity investments may, at any time, consist of equity investments with and without readily determinable fair values. The Company generally recognizes equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.The following table is a summary of the activity related to equity investments (in millions):Reported as:December 31, 2024Carrying ValueChanges in Fair Value Purchases / Sales / Other (1)June 30, 2025Carrying ValuePrepaids and other current assetsIntangible and other assets, netEquity investments without readily determinable fair value (Level 2)$84.6 $(5.0)$6.4 $86.0 $— $86.0 (1) Other includes foreign currency translation gains/(losses).

For the six months ended June 30, 2025, the Company did not hold any equity investments with readily determinable fair values (Level 1).For the six months ended June 30, 2025, the Company recognized a net decrease in fair value of $5.0 million, primarily due to impairments and net decreases in observable price changes for certain equity investments, in interest and other income, net.

Foreign Currency DerivativesThe objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net 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 thirteen months or shorter. The derivative assets and liabilities are measured using Level 2 fair value inputs.Cash Flow HedgesThe Company enters into currency forward contracts as cash flow hedges to hedge