Company: ISRG
Filing Date: 2025-01-31
Form Type: 10-K
Source: 0001035267-25-000017
Chunk: 129

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-01-31
Form: 10-K
Item: Item 8
Chunk 129
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 expected to be satisfied over the term of the system sale, lease, and service arrangements. Approximately 43% of the remaining performance obligations are expected to be recognized in the next 12 months with the remainder recognized thereafter over the term of the system sale, lease, and service arrangements, which are generally up to 5 years.

107

Contract Assets and LiabilitiesThe following information summarizes the Company’s contract assets and liabilities (in millions):December 31,20242023Contract assets$13.9 $20.2 Deferred revenue$522.9 $491.7 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. 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. 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. The Company did not have any significant impairment losses on its contract assets for the periods presented.During the year ended December 31, 2024, the Company recognized $422 million of revenue that was included in the deferred revenue balance as of December 31, 2023. During the year ended December 31, 2023, the Company recognized $396 million of revenue that was included in the deferred revenue balance as of December 31, 2022.Intuitive System LeasingThe following table presents product revenue from Intuitive System Leasing arrangements (in millions):Years Ended December 31,202420232022Sales-type lease revenue$163.1 $78.4 $156.4 Operating lease revenue*$654.2 $500.5 $376.5 *Variable lease revenue related to usage-based arrangements included within operating lease revenue$338.4 $216.5 $133.0 

NOTE 6.    LEASES

Lessor Information related to Intuitive System LeasingSales-type Leases.  Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions):December 31,20242023Gross lease receivables$393.4 $384.5 Unearned income(13.9)(12.9