Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 15

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 15
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 $522.9 Contract assets for the periods presented primarily represent the difference between the revenue that was recognized based on the relative standalone selling price of the related performance obligations satisfied and the contractual billing terms in the arrangements. The Company did not have significant impairment losses on its contract assets for any of the periods presented.The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due 30 to 60 days from the date of invoice. Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed. The associated deferred revenue is generally recognized over the term of the service period.

During the three and nine months ended September 30, 2025, the Company recognized $91 million and $415 million of revenue, respectively, that was included in the deferred revenue balance as of December 31, 2024. During the three and nine 

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months ended September 30, 2024, the Company recognized $81 million and $388 million of revenue, respectively, that was included in the deferred revenue balance as of December 31, 2023.

Intuitive System LeasingThe following table presents product revenue from Intuitive System Leasing arrangements (in millions):Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Sales-type lease revenue$30.9 $30.2 $72.5 $88.6 Operating lease revenue*$223.0 $167.8 $632.0 $472.7 *Variable lease revenue within operating lease revenue$138.3 $87.0 $380.0 $237.1 

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 nine months ended September 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