Company: ISRG
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0001035267-25-000192
Chunk: 11

Company: INTUITIVE SURGICAL INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Item 1
Chunk 11
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 certain forecasted revenue transactions denominated in currencies other than the USD, primarily the Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), the Korean Won (“KRW”), the New Taiwan Dollar (“TWD”), and the Indian Rupee (“INR”). The Company also enters into currency forward contracts as cash flow hedges to hedge certain forecasted expense transactions denominated in EUR and the Swiss Franc (“CHF”).

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For these derivatives, the Company reports the unrealized after-tax gain or loss from the hedge as a component of accumulated other comprehensive income (loss) in stockholders’ equity and reclassifies the amount into earnings in the same period in which the hedged transaction affects earnings. The amounts reclassified to revenue and expenses related to the hedged transactions and the ineffective portions of cash flow hedges were not material for the three and six months ended June 30, 2025, and 2024.Other Derivatives Not Designated as Hedging InstrumentsOther derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, JPY, KRW, CHF, TWD, INR, the Mexican Peso (“MXN”), and the Chinese Yuan (“CNY”).These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Recognized gains (losses) in interest and other income, net$(24.8)$11.8 $(35.3)$30.1 Foreign exchange gains (losses) related to balance sheet re-measurement$18.8 $(13.2)$26.5 $(32.6)

The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for outstanding derivatives and the aggregate gross fair value at the end of each period were as follows (in millions):Derivatives Designated as Hedging InstrumentsDerivatives Not Designated as Hedging InstrumentsJune 30,2025December 31,2024June 30,2025December 31,2024Notional amounts:Forward contracts$454.0 $382.2 $760.0 $693.5 Gross fair value recorded in: