Company: ISRG
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0001035267-25-000109
Chunk: 106

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Item 2
Chunk 106
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Three Months Ended March 31,20252024Net cash provided by (used in):Operating activities$581.6 $265.4 Investing activities213.5 (128.5)Financing activities(235.8)(46.7)Effect of exchange rates on cash, cash equivalents, and restricted cash(4.5)6.8 Net increase in cash, cash equivalents, and restricted cash$554.8 $97.0 

Operating Activities

For the three months ended March 31, 2025, net cash provided by operating activities of $582 million was less than our net income of $704 million, primarily due to the following factors:

1.Changes in operating assets and liabilities resulted in $439 million of cash used in operating activities during the three months ended March 31, 2025. Accrued compensation and employee benefits decreased by $226 million, primarily due to payment of 2024 incentive compensation and payments for stock purchases related to our ESPP. Inventory, including the transfer of equipment from inventory to property, plant, and equipment, increased by $211 million, primarily to address the growth in our business, including the expansion of our leasing business, and to mitigate risks of disruption that could arise from global supply chain shortages. Refer to Note 4 to the Financial Statements for further details in the supplemental cash flow information. Other accrued liabilities decreased by $118 million, primarily due to income tax payments made in the period. The unfavorable impact of these items on cash provided by operating activities was partially offset by an increase in accounts payable of $83 million, primarily due to the timing of invoicing and payments, and an increase in deferred revenue of $37 million, primarily due to the timing of payment and delivery of goods and services.

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2.Our net income included non-cash charges of $317 million, consisting primarily of share-based compensation of $185 million and depreciation expense and losses on the disposal of property, plant, and equipment of $138 million.

Investing Activities

Net cash provided by investing activities for the three months ended March 31, 2025, consisted primarily of net proceeds from maturities on investments of $330 million, partially offset by $117 million paid for the acquisition of property, plant, and equipment. We invest predominantly in high quality, fixed income securities. Our investment portfolio may, at any time, contain investments in money market funds, U.S. treasury and U.S. government agency securities, high-quality corporate notes and