Company: ISRG
Filing Date: 2025-10-22
Form Type: 10-Q
Source: 0001035267-25-000209
Chunk: 16

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-10-22
Form: 10-Q
Item: Item 1
Chunk 16
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 a material adverse impact from potential adjustments of the carrying amount of lease and trade receivables as hospital cash flows are impacted by macroeconomic factors, including inflation, tariffs, high interest rates, and staffing shortages.

NOTE 6.    LEASES

Lessor Information related to Intuitive System LeasingSales-type Leases. Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions):As ofSeptember 30, 2025December 31, 2024Gross lease receivables$345.2 $393.4 Unearned income(14.8)(13.9)Subtotal330.4 379.5 Allowance for credit loss(2.6)(2.6)Net investment in sales-type leases$327.8 $376.9 Reported as:Prepaids and other current assets$124.2 $131.4 Intangible and other assets, net203.6 245.5  Net investment in sales-type leases$327.8 $376.9 Contractual maturities of gross lease receivables as of September 30, 2025, are as follows (in millions):Fiscal YearAmountRemainder of 2025$24.1 2026127.9 202789.9 202856.7 202936.0 2030 and thereafter10.6 Total$345.2 

13

The Company enters into sales-type leases with certain qualified customers to purchase its systems. Sales-type leases have terms that generally range from 24 to 84 months and are usually collateralized by a security interest in the underlying assets. The allowance for loan loss is based on the Company’s assessment of the current expected lifetime loss on lease receivables. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, age of the lease receivable balances, and current economic conditions that may affect a customer’s ability to pay. Lease receivables are considered past due 90 days after invoice.The Company manages the credit risk of the net investment in sales-type leases using a number of factors relating to its customers, including, but not limited to, the following: size of operations; profitability, liquidity, and debt ratios; payment history; and past due amounts. The Company also uses credit scores obtained from external providers as a key indicator for the purposes of determining credit quality. The following table summarizes