Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 14, 2014 | |
Document Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'INTUITIVE SURGICAL INC | ' |
Trading Symbol | 'ISRG | ' |
Entity Central Index Key | '0001035267 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 35,951,604 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $507.60 | $782.10 |
Short-term investments | 471 | 621.4 |
Accounts receivable, net | 271.1 | 301.4 |
Inventories | 202.4 | 179.6 |
Prepaids and other current assets | 42.4 | 38.3 |
Deferred tax assets | 38.9 | 9.6 |
Total current assets | 1,533.40 | 1,932.40 |
Property, plant and equipment, net | 326.7 | 309.9 |
Long-term investments | 1,064.80 | 1,350.40 |
Long-term deferred tax assets | 143.7 | 126.1 |
Intangible and other assets, net | 138 | 94.1 |
Goodwill | 198 | 137.4 |
Total assets | 3,404.60 | 3,950.30 |
Current liabilities: | ' | ' |
Accounts payable | 58.9 | 46.2 |
Accrued compensation and employee benefits | 74.5 | 70.7 |
Deferred revenue | 225.1 | 200.1 |
Other accrued liabilities | 137.4 | 63.9 |
Total current liabilities | 495.9 | 380.9 |
Other long-term liabilities | 86.3 | 68 |
Total liabilities | 582.2 | 448.9 |
Contingencies (Note 6) | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, 2.5 shares authorized, $0.001 par value, issuable in series; no shares issued and outstanding as of June 30, 2014, and December 31, 2013, respectively | 0 | 0 |
Common stock, 100.0 shares authorized, $0.001 par value, 36.0 shares and 38.2 shares outstanding as of June 30, 2014, and December 31, 2013, respectively | 0 | 0 |
Additional paid-in capital | 2,509.60 | 2,519.90 |
Retained earnings | 312.2 | 979.4 |
Accumulated other comprehensive income | 0.6 | 2.1 |
Total stockholders’ equity | 2,822.40 | 3,501.40 |
Total liabilities and stockholders’ equity | $3,404.60 | $3,950.30 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares outstanding (in shares) | 36,000,000 | 38,200,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Product | $405.60 | $480.40 | $766.40 | $997.40 |
Service | 106.6 | 98.1 | 210.5 | 192.5 |
Total revenue | 512.2 | 578.5 | 976.9 | 1,189.90 |
Cost of revenue: | ' | ' | ' | ' |
Product | 133.5 | 140.9 | 247.3 | 287.2 |
Service | 34.3 | 32.4 | 69.8 | 63.2 |
Total cost of revenue | 167.8 | 173.3 | 317.1 | 350.4 |
Gross profit | 344.4 | 405.2 | 659.8 | 839.5 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 161.2 | 145.5 | 377 | 287 |
Research and development | 40.2 | 41.2 | 83.2 | 82.8 |
Total operating expenses | 201.4 | 186.7 | 460.2 | 369.8 |
Income from operations | 143 | 218.5 | 199.6 | 469.7 |
Interest and other income (expense), net | -0.4 | 4.3 | 3.5 | 8.6 |
Income before taxes | 142.6 | 222.8 | 203.1 | 478.3 |
Income tax expense | 38.6 | 63.7 | 54.8 | 130.3 |
Net income | 104 | 159.1 | 148.3 | 348 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $2.82 | $3.99 | $3.94 | $8.68 |
Diluted (in dollars per share) | $2.77 | $3.90 | $3.87 | $8.47 |
Shares used in computing net income per share: | ' | ' | ' | ' |
Basic (in shares) | 36.9 | 39.9 | 37.6 | 40.1 |
Diluted (in shares) | 37.6 | 40.8 | 38.3 | 41.1 |
Total comprehensive income | $100.80 | $148.90 | $146.80 | $339.30 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Net income | $148.30 | $348 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 24.8 | 21.3 |
Amortization of intangible assets | 9.4 | 11.3 |
Loss on investment, accretion of discounts and amortization of premiums on investments, net | 18.3 | 20.2 |
Deferred income taxes | -47 | -15.7 |
Income tax benefits from employee stock plans | 0.9 | 25.8 |
Excess tax benefit from share-based compensation | -6.1 | -26.5 |
Share-based compensation expense | 82.7 | 76.9 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | 30.3 | 11.7 |
Inventories | -38.9 | -53.2 |
Prepaids and other assets | -19.8 | 16.1 |
Accounts payable | 14.1 | 9.7 |
Accrued compensation and employee benefits | 1.2 | -34 |
Other liabilities | 102.1 | 35.5 |
Net cash provided by operating activities | 320.3 | 447.1 |
Investing activities: | ' | ' |
Purchase of investments | -614.6 | -947.6 |
Proceeds from sales of investments | 608 | 257.2 |
Proceeds from maturities of investments | 422.7 | 441.1 |
Purchase of property, plant and equipment, and intellectual property | -26.6 | -41.7 |
Acquisition of businesses, net of cash | 81.2 | 0 |
Net cash provided by (used in) investing activities | 308.3 | -291 |
Financing activities: | ' | ' |
Proceeds from issuance of common stock | 90.5 | 112.1 |
Excess tax benefit from share-based compensation | 6.1 | 26.5 |
Repurchase and retirement of common stock | -1,000 | -415.4 |
Net cash used in financing activities | -903.4 | -276.8 |
Effect of exchange rate changes on cash and cash equivalents | 0.3 | -0.3 |
Net decrease in cash and cash equivalents | -274.5 | -121 |
Cash and cash equivalents, beginning of period | 782.1 | 553.7 |
Cash and cash equivalents, end of period | 507.6 | 432.7 |
Supplemental non-cash investing activities: | ' | ' |
Demonstration equipment transfers from inventories to property, plant and equipment | $16.10 | $5.40 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
DESCRIPTION OF BUSINESS | ' |
DESCRIPTION OF BUSINESS | |
Intuitive designs, manufactures and markets da Vinci® Surgical Systems and related instruments and accessories, which taken together, are advanced surgical systems that the Company considers a new generation of surgery. This new generation of surgery, which the Company calls da Vinci surgery, combines the benefits of minimally invasive surgery (“MIS”) for patients with the ease of use, precision and dexterity of open surgery. A da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a high performance vision system. The da Vinci Surgical Systems translate a surgeon’s natural hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions, or ports. The da Vinci Surgical Systems are designed to provide its operating surgeons with intuitive control, range of motion, fine tissue manipulation capability and Three Dimensional (“3-D”), High-Definition (“HD”) vision while simultaneously allowing surgeons to work through the small ports enabled by MIS procedures. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements (“financial statements”) of Intuitive Surgical, Inc. and its wholly-owned subsidiaries have been prepared on a consistent basis with the audited Consolidated Financial Statements for the fiscal year ended December 31, 2013, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. The financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosure necessary to present the financial statements in accordance with accounting principles generally accepted in the United States (“U.S.”) (“U.S. GAAP”). These financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which was filed on February 3, 2014. The results of operations for the first six months of fiscal 2014 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods. | |
Recent Accounting Pronouncements | |
In June 2013, the Financial Accounting Standards Board ("FASB") determined that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. This guidance is effective for the Company’s interim and annual periods beginning January 1, 2014. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |
In May 2014, the FASB issued Accounting Standards Updates No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled to for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal year 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | |
Significant Accounting Policies | |
With the exception of the information provided below relating to the Company's revenue recognition, lease, and allowance for sales returns and doubtful accounts policies, there has been no change in the description of the Company's significant accounting policies included in Note 2 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Revenue Recognition | |
The Company’s revenue consists of product revenue resulting from the sales of systems, instruments and accessories, and service revenue. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or service has been rendered, the price is fixed or determinable, and collectibility is reasonably assured. The Company generally recognizes revenue at the following points in time: | |
•System sales. For systems sold directly to end customers, revenue is recognized when acceptance occurs, which is deemed to have occurred upon customer acknowledgment of delivery or installation, depending on the terms of the arrangement. For systems sold through distributors, revenue is recognized when title and risk of loss has transferred, which generally occurs at the time of shipment. Distributors do not have price protection rights and the Company’s system arrangements generally do not provide a right of return. The da Vinci Surgical Systems are delivered with a software component. However, because the software and non-software elements function together to deliver the system’s essential functionality, the Company's arrangements are excluded from being accounted for under software revenue recognition guidance. | |
•Instruments and accessories. Revenue from sales of instruments and accessories is generally recognized at the time of shipment. The Company allows its customers in the normal course of business to return unused products for a limited period of time subsequent to initial purchase and records an allowance against revenue recognized based on historical experience. | |
•Service. Service revenue is recognized ratably over the term of the service period. Revenue related to services performed on a time-and-materials basis is recognized when it is earned and billable. | |
The Company offers its customers the opportunity to trade in their older systems for credit towards the purchase of a newer generation system. The Company generally does not provide specified price trade-in rights or upgrade rights at the time of system purchase. Such trade-in or upgrade transactions are separately negotiated based on the circumstances at the time of the trade-in or upgrade, based on the then fair value of the system, and are generally not based on any pre-existing rights granted by the Company. Accordingly, such trade-ins and upgrades are not considered as separate deliverables in the arrangement for a system sale. | |
As part of a trade-in transaction, the customer receives a new generation system in exchange for its pre-owned system. The trade-in credit is negotiated at the time of the trade-in and is applied towards the purchase price of the new generation unit. Traded-in systems can be reconditioned and resold. The Company accounts for trade-ins consistent with the guidance in AICPA Technical Practice Aid 5100.01, Equipment Sales Net of Trade-Ins (“TPA 5100.01”). The Company applies the accounting guidance by crediting system revenue for the negotiated price of the new generation system, while the difference between (a) the trade-in allowance and (b) the net realizable value of the traded-in system less a normal profit margin is treated as a sales allowance. The value of the traded-in system is determined as the amount, after reconditioning costs are added, that will allow a normal profit margin on the sale of the reconditioned unit to be generated. When there is no market for the traded-in units, no value is assigned. Traded-in units are reported as a component of inventory until reconditioned and resold, or otherwise disposed. | |
In addition, customers may also have the opportunity to upgrade their systems, for example, by adding a fourth arm to a three-arm system, adding a second surgeon console for use with the da Vinci Si Surgical System or adding new vision systems to the standard da Vinci and da Vinci S Surgical Systems. Such upgrades are performed by completing component level upgrades at the customer’s site. Upgrade revenue is recognized when the component level upgrades are complete and all revenue recognition criteria are met. | |
The Company's system sale arrangements contain multiple elements including a system(s), system accessories, instruments, accessories and system service. The Company generally delivers all of the elements, other than service, within days of entering into the system sale arrangement. Each of these elements is a separate unit of accounting. System accessories, instruments, accessories and service are also sold on a stand-alone basis. | |
For multiple-element arrangements, revenue is allocated to each unit of accounting based on their relative selling prices. Relative selling prices are based first on vendor specific objective evidence of fair value (“VSOE”), then on third-party evidence of selling price (“TPE”) when VSOE does not exist, and then on management's best estimate of the selling price (“ESP”) when VSOE and TPE do not exist. | |
The Company’s system sale arrangements generally include a one-year period of free service, and the right for the customer to purchase service annually after that for up to four years at a stated service price. The revenue allocated to the free service period is deferred and recognized ratably over the free service period. | |
Because the Company has neither VSOE nor TPE for its systems, the allocation of revenue is based on ESP for the systems sold. The objective of ESP is to determine the price at which the Company would transact a sale, had the product been sold on a stand-alone basis. The Company determines ESP for its systems by considering multiple factors, including, but not limited to, features and functionality of the system, geographies, type of customer, and market conditions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. | |
Leases | |
The Company enters into sales-type lease and operating lease arrangements with certain qualified customers to purchase or rent its systems. Sales-type leases have on average a 5-year term and are usually collateralized by a security interest in the underlying assets. Revenue related to multiple-element arrangements are allocated to lease and non-lease elements based on their relative selling prices as prescribed by our revenue recognition policy. Lease elements generally include a da Vinci Surgical System, while non-lease elements generally include service and instrument and accessories. In determining whether a transaction should be classified as a sales-type or operating lease, the Company primarily considers the following terms: (1) whether title of the system transfers automatically or for a nominal fee at the end of the term of the lease and (2) whether the present value of the minimum lease payments are equal to or greater than 90% of the fair market value of the system at the inception of the lease. | |
The Company generally recognizes revenue from sales-type lease arrangements at the time the system is accepted by the customer, assuming all other revenue recognition criteria have been met. Revenue from sales-type leases is presented as product revenue. Revenue from operating lease arrangements is recognized as earned over the lease term, which is generally on a straight-line basis and is presented as product revenue. Revenue from operating lease arrangements was not material in any of the periods presented. | |
Allowance for Sales Returns and Doubtful Accounts | |
The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends, and changes in customer demand and acceptance of the Company's products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. | |
In connection with the launch of the da Vinci XiTM Surgical System, the Company offered certain customers who purchased a 4-arm da Vinci Si Surgical System the opportunity to trade out their systems for a da Vinci Xi Surgical System. Under this program, these customers are able to return their da Vinci Si Surgical System and receive a credit, substantially equal to the price paid for the da Vinci Si Surgical System, towards the purchase of a da Vinci Xi Surgical System. These customers have until September 30, 2014, to accept the Company's offer. Subject to meeting all other criteria of the Company's revenue recognition policy, the revenue deferred is recognized at the date the da Vinci Xi Surgical Systems and related instruments and accessories are shipped and accepted by the customers participating in the trade-in program, which is anticipated to be substantially completed by September 30, 2014. Similar return rights have been extended to certain European customers. In accordance with the guidance for accounting for arrangements in which return rights exist, system revenue and associated costs in an amount equal to the Company's estimate of the number of systems that will be returned have been deferred. As of June 30, 2014, a total of $19.9 million of revenue was included in short-term deferred revenue in the accompanying Condensed Consolidated Balance Sheets related to trade-in rights accounted for as a right of return. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ' | |||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | ||||||||||||||||||||||||||||
The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of the Company’s cash and available-for-sale securities by investment category that are recorded as cash and cash equivalents, or short-term or long-term investments as of June 30, 2014, and December 31, 2013 (in millions): | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short- | Long- | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | term | term | ||||||||||||||||||||||
Gains | Losses | Equivalents | Investments | Investments | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Cash | $ | 209.1 | $ | — | $ | — | $ | 209.1 | $ | 209.1 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 239.3 | — | — | 239.3 | 239.3 | — | — | |||||||||||||||||||||
U.S. Treasuries & corporate equity securities | 129.5 | — | (0.6 | ) | 128.9 | 23.2 | 66.9 | 38.8 | ||||||||||||||||||||
Subtotal | 368.8 | — | (0.6 | ) | 368.2 | 262.5 | 66.9 | 38.8 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 76.6 | — | — | 76.6 | 30.9 | 45.7 | — | |||||||||||||||||||||
Corporate securities | 707 | 2.9 | (0.4 | ) | 709.5 | — | 152.6 | 556.9 | ||||||||||||||||||||
U.S. government agencies | 245 | 0.4 | (0.3 | ) | 245.1 | 5.1 | 26 | 214 | ||||||||||||||||||||
Non-U.S. government securities | 48.4 | 0.1 | — | 48.5 | — | 29.2 | 19.3 | |||||||||||||||||||||
Municipal securities | 385 | 1.4 | — | 386.4 | — | 150.6 | 235.8 | |||||||||||||||||||||
Subtotal | 1,462.00 | 4.8 | (0.7 | ) | 1,466.10 | 36 | 404.1 | 1,026.00 | ||||||||||||||||||||
Total assets measured at fair value | $ | 2,039.90 | $ | 4.8 | $ | (1.3 | ) | $ | 2,043.40 | $ | 507.6 | $ | 471 | $ | 1,064.80 | |||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short- | Long- | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | term | term | ||||||||||||||||||||||
Gains | Losses | Equivalents | Investments | Investments | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Cash | $ | 247.8 | $ | — | $ | — | $ | 247.8 | $ | 247.8 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 516.2 | — | — | 516.2 | 516.2 | — | — | |||||||||||||||||||||
U.S. Treasuries & corporate equity securities | 65.4 | — | (0.3 | ) | 65.1 | — | 25.5 | 39.6 | ||||||||||||||||||||
Subtotal | 581.6 | — | (0.3 | ) | 581.3 | 516.2 | 25.5 | 39.6 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 100.2 | — | — | 100.2 | 18.1 | 82.1 | — | |||||||||||||||||||||
Corporate securities | 844.7 | 2.9 | (1.9 | ) | 845.7 | — | 227.7 | 618 | ||||||||||||||||||||
U.S. government agencies | 352.2 | 0.7 | (0.7 | ) | 352.2 | — | 84.7 | 267.5 | ||||||||||||||||||||
Non-U.S. government securities | 67.7 | 0.2 | (0.1 | ) | 67.8 | — | 41.2 | 26.6 | ||||||||||||||||||||
Municipal securities | 550.1 | 1.5 | (0.1 | ) | 551.5 | — | 160.2 | 391.3 | ||||||||||||||||||||
Subtotal | 1,914.90 | 5.3 | (2.8 | ) | 1,917.40 | 18.1 | 595.9 | 1,303.40 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
Auction rate securities | 8 | — | (0.6 | ) | 7.4 | — | — | 7.4 | ||||||||||||||||||||
Subtotal | 8 | — | (0.6 | ) | 7.4 | — | — | 7.4 | ||||||||||||||||||||
Total assets measured at fair value | $ | 2,752.30 | $ | 5.3 | $ | (3.7 | ) | $ | 2,753.90 | $ | 782.1 | $ | 621.4 | $ | 1,350.40 | |||||||||||||
The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale securities (excluding cash and money market funds), at June 30, 2014 (in millions): | ||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||
Mature in less than one year | $ | 522.2 | $ | 523.3 | ||||||||||||||||||||||||
Mature in one to five years | 1,062.00 | 1,064.80 | ||||||||||||||||||||||||||
Mature after five years | — | — | ||||||||||||||||||||||||||
Total | $ | 1,584.20 | $ | 1,588.10 | ||||||||||||||||||||||||
Realized gains and losses, net of tax, were not material for any of the periods presented. | ||||||||||||||||||||||||||||
As of June 30, 2014, and December 31, 2013, net unrealized gains of $3.5 million and $1.6 million, respectively, were included in accumulated other comprehensive income in the accompanying condensed consolidated balance sheets, along with the related tax impact of $1.0 million and $0.7 million, respectively. | ||||||||||||||||||||||||||||
There have been no transfers between Level 1 and Level 2 measurements during the six months ended June 30, 2014, and there were no changes in the valuation technique used. Level 3 assets consisted of municipal bonds with auction rate securities (“ARS”). In April 2014, the ARS were redeemed at par value of $8.0 million and the Company recorded $0.6 million in gains as other comprehensive income relating to the recovery of unrealized losses on the ARS recorded in 2013. | ||||||||||||||||||||||||||||
Foreign currency derivatives | ||||||||||||||||||||||||||||
The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency denominated sales, intercompany balances, and other monetary assets or liabilities denominated in currencies other than the U.S. dollar ("USD"). The derivative assets and liabilities are measured using Level 2 fair value inputs. | ||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||
The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar, primarily the European Euro ("EUR"), the British Pound (“GBP”) and the Korean Won (“KRW”). | ||||||||||||||||||||||||||||
For these derivatives, the Company reports the after-tax gain or loss from the hedge as a component of accumulated other comprehensive income in stockholders' equity and reclassifies it into earnings in the same period in which the hedge transaction affects earnings. The net gains (losses) reclassified to revenue related to the hedged revenue transactions were not material for the three and six months ended June 30, 2014, and 2013. | ||||||||||||||||||||||||||||
Other Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||
Other 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, Swiss Franc (“CHF”), Japanese Yen (“JPY”) and KRW. The net gains (losses) recognized in interest and other income (expense), net in the condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2014, and 2013, were not material. | ||||||||||||||||||||||||||||
The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and aggregate gross fair value outstanding at the end of each period were as follows (in millions): | ||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Notional amounts: | ||||||||||||||||||||||||||||
Forward contracts | $ | 128.3 | $ | 107.7 | $ | 87.4 | $ | 97.5 | ||||||||||||||||||||
Gross fair value recorded in: | ||||||||||||||||||||||||||||
Prepaid and other current assets | $ | 0.3 | $ | — | $ | 0.3 | $ | — | ||||||||||||||||||||
Other accrued liabilities | $ | 0.1 | $ | 1.3 | $ | 0.3 | $ | 2.5 | ||||||||||||||||||||
BALANCE_SHEET_DETAILS
BALANCE SHEET DETAILS | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
BALANCE SHEET DETAILS | ' | |||||||
BALANCE SHEET DETAILS | ||||||||
Inventories | ||||||||
The following table provides details of inventories (in millions): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 60.4 | $ | 67.2 | ||||
Work-in-process | 11.3 | 12.6 | ||||||
Finished goods | 130.7 | 99.8 | ||||||
Total inventories | $ | 202.4 | $ | 179.6 | ||||
Goodwill and Intangible Assets | ||||||||
The increases in goodwill of $60.6 million and intangible assets of $22.7 million from December 31, 2013, to June 30, 2014, primarily relate to the acquisition of certain intellectual property, know-how, fixed assets, and employees from Luna Innovations, Inc. (“Luna”) on January 17, 2014, and the acquisition of Japan distribution rights from Adachi Co., Ltd (“Adachi”) on June 25, 2014. The acquisition of Japan distribution rights enhances the Company's ability to directly interact with customers, surgical societies and government agencies in Japan. In both transactions, the assets acquired met the definition of a business and were accounted for using the acquisition method of accounting for financial reporting purposes. | ||||||||
In connection with the Luna acquisition, the Company recognized goodwill of $10.1 million and intangible assets of $9.5 million which are being amortized over nine years. | ||||||||
In connection with the acquisition of Japan distribution rights, the Company recognized goodwill of $50.5 million, intangible assets related to reacquired distribution rights of $5.5 million, and customer relationships of $17.2 million, which are being amortized over a weighted average period of 1.1 years and 7.0 years, respectively. The Company also assumed a total of $2.7 million of liabilities in connection with the acquisition. The purchase consideration consisted of cash of $68.7 million and contingent payments of $1.8 million. | ||||||||
Pro forma results of operations related to the acquisitions have not been presented since the operating results of the acquired businesses are not material to the Company's consolidated financial statements. |
LEASE_RECEIVABLES_Notes
LEASE RECEIVABLES (Notes) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Leases [Abstract] | ' | |||||||
LEASE RECEIVABLES | ' | |||||||
LEASE RECEIVABLES | ||||||||
Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions): | ||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Gross Lease Receivables | $ | 32 | $ | 10.1 | ||||
Unearned Income | (2.0 | ) | (0.6 | ) | ||||
Allowance for credit loss | — | — | ||||||
Net investment in sales-type lease | 30 | 9.5 | ||||||
Reported as: | ||||||||
Prepaids and other current assets | 4.9 | 1.9 | ||||||
Intangible and other assets, net | 25.1 | 7.6 | ||||||
Total, net | $ | 30 | $ | 9.5 | ||||
Contractual maturities of gross lease receivables at June 30, 2014, are as follows (in millions): | ||||||||
Amount | ||||||||
2014 | $ | 2.8 | ||||||
2015 | 6.3 | |||||||
2016 | 7.3 | |||||||
2017 | 7.3 | |||||||
2018 | 6.6 | |||||||
Thereafter | 1.7 | |||||||
Total | $ | 32 | ||||||
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENCIES | ' |
CONTINGENCIES | |
The Company is involved in a variety of claims, lawsuits, investigations and proceedings relating to securities laws, product liability, false claims, insurance, and contract disputes. Certain of these lawsuits and claims are described in further detail below. The Company does not know what the outcome of these matters will be and cannot assure that any resolution will be reached on commercially reasonable terms, if at all. It is not possible to predict the outcome of the pending or threatened litigation matters currently disclosed. With the exception of the charge related to settlement of the product liability claims described below, the Company has determined that an estimate of possible loss or range of loss related to pending or threatened litigation matters cannot be determined as of June 30, 2014. Nevertheless, it is possible that future legal costs (including settlements, judgments, legal fees and other related defense costs) could have a material adverse effect on the Company's business, financial position, or future results of operations. | |
The Company is also a party to various other legal actions that arise in the ordinary course of business and does not believe that any of these other legal actions will have a material adverse impact on the Company's business, financial position, or future results of operations. | |
In accordance with U.S. GAAP, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. In addition to the $67.4 million recorded during the three months ended March 31, 2014, in the three months ended June 30, 2014, the Company recorded a pre-tax charge of $9.6 million related to the estimate of the probable loss associated with the potential resolution of certain product liability claims described below. | |
Purported Shareholder Class Action Lawsuit filed August 6, 2010 | |
On August 6, 2010, a purported class action lawsuit entitled Perlmutter v. Intuitive Surgical et al., No. CV10-3451, was filed against seven of the Company's current and former officers and directors in the United States District Court for the Northern District of California. The lawsuit sought unspecified damages on behalf of a putative class of persons who purchased or otherwise acquired the Company's common stock between February 1, 2008 and January 7, 2009. The complaint alleged that the defendants violated federal securities laws by making allegedly false and misleading statements and omitting certain material facts in filings with the Securities and Exchange Commission. On February 15, 2011, the Police Retirement System of St. Louis was appointed lead plaintiff in the case pursuant to the Private Securities Litigation Reform Act of 1995. An amended complaint was filed on April 15, 2011, making allegations substantially similar to the allegations described above. On May 23, 2011, a motion was filed to dismiss the amended complaint. On August 10, 2011, that motion was granted and the action was dismissed; the plaintiffs were given 30 days to file an amended complaint. On September 12, 2011, plaintiffs filed their amended complaint. The allegations contained therein were substantially similar to the allegations in the prior complaint. The Company filed a motion to dismiss the amended complaint on October 13, 2011. A hearing occurred on February 16, 2012, and on May 22, 2012, the court granted the Company's motion. The complaint was dismissed with prejudice, and a final judgment was entered in the Company's favor on June 1, 2012. On June 20, 2012, plaintiffs filed a notice of appeal with the United States Court of Appeals for the Ninth Circuit. The appeal was styled Police Retirement System of St. Louis v. Intuitive Surgical, Inc. et al., No. 12-16430. Plaintiffs filed their opening brief on September 28, 2012. The Company filed an answering brief on November 13, 2012, and plaintiffs filed a reply brief on December 17, 2012. Oral argument was held on March 14, 2014, and the matter was taken under submission. On July 16, 2014, the Ninth Circuit published an opinion affirming the district court’s order dismissing the amended complaint with prejudice. Plaintiffs will have 14 days from entry of judgment to seek rehearing or rehearing en banc. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the business, financial position or future results of operations of the Company. | |
Purported Derivative Actions filed August 19, 2010 | |
On August 19, 2010, an alleged stockholder caused a purported stockholder’s derivative lawsuit entitled Himmel v. Smith et al., No. 1-10-CV-180416, to be filed in the Superior Court of California for the County of Santa Clara naming the Company as a nominal defendant, and naming 14 of the Company's current and former officers and directors as defendants. The lawsuit seeks to recover, for the Company's benefit, unspecified damages purportedly sustained in connection with allegedly misleading statements and/or omissions made in connection with the Company's financial reporting for the period between February 1, 2008 and January 7, 2009. It also seeks a series of changes to the Company's corporate governance policies and an award of attorneys’ fees. On September 15, 2010, another purported stockholder filed a substantially identical lawsuit entitled Applebaum v. Guthart et al., No. 1-10-CV-182645, in the same court against 15 of the Company's current and former officers and directors. On October 5, 2010, the court ordered that the two cases be consolidated for all purposes. By agreement with plaintiffs, all activity in the case has been stayed pending the results of the appeal in the purported shareholder class action lawsuit discussed above. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. | |
Purported Shareholder Class Action Lawsuits filed April 26, 2013 and May 24, 2013 | |
On April 26, 2013, a purported class action lawsuit entitled Abrams v. Intuitive Surgical, et al., No. 5-13-cv-1920, was filed against several of the Company's current and former officers and directors in the United States District Court for the Northern District of California. A substantially identical complaint, entitled Adel v. Intuitive Surgical, et al., No. 5:13-cv-02365, was filed in the same court against the same defendants on May 24, 2013. The Adel case was voluntarily dismissed without prejudice on August 20, 2013. | |
On October 15, 2013, plaintiffs in the Abrams matter filed an amended complaint. The case has since been re-titled In re Intuitive Surgical Securities Litigation. The plaintiffs seek unspecified damages on behalf of a putative class of persons who purchased or otherwise acquired the Company's common stock between February 6, 2012, and July 18, 2013. The amended complaint alleges that the defendants violated federal securities laws by making allegedly false and misleading statements and omitting certain material facts in the Company's filings with the Securities and Exchange Commission. On November 18, 2013, the Court appointed Employees’ Retirement System of the State of Hawaii as lead plaintiff and appointed lead counsel. The Company filed a motion to dismiss the amended complaint on December 16, 2013. The Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. | |
Purported Derivative Actions filed on February 3, 2014, February 21, 2014, March 21, 2014, and June 3, 2014 | |
On February 3, 2014, an alleged stockholder caused a purported stockholder’s derivative lawsuit entitled Berg v. Guthart et al., No. 4-14-CV-00515, to be filed in the United States District Court for the Northern District of California. It names the Company as a nominal defendant, and names 16 of the Company’s current and former officers and directors as defendants. The lawsuit seeks to recover, for the Company’s benefit, unspecified damages purportedly sustained by the Company in connection with allegedly misleading statements and/or omissions made in connection with the Company’s financial reporting for the period between 2012 and the present. It also seeks a series of changes to the Company’s corporate governance policies and an award of attorneys’ fees. On April 3, 2014, it was related to In re Intuitive Surgical Securities Litigation, where it remains pending. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. | |
On February 21, 2014, a second alleged stockholder caused a substantially similar purported stockholder’s derivative lawsuit entitled Public School Teachers’ Pension and Retirement Fund of Chicago v. Guthart et al., No. CIV 526930, to be filed in the Superior Court of the State of California, County of San Mateo, against the same parties and seeking the same relief. On March 26, 2014, the case was removed to the United States District Court for the Northern District of California, where it was related to the two matters discussed above on April 30, 2014. The district court remanded the case back to San Mateo County Superior Court on June 30, 2014, where it remains pending. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. | |
On March 21, 2014, a third alleged stockholder caused a substantially similar purported stockholder’s derivative lawsuit entitled City of Birmingham Relief and Retirement System v. Guthart et al., No. 5-14-CV-01307, to be filed in the United States District Court for the Northern District of California against the same parties and seeking the same relief. On April 8, 2014, it was related to In re Intuitive Surgical Securities Litigation and Berg v. Guthart, and remains pending in that court. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. | |
On June 3, 2014, a fourth alleged stockholder caused a substantially similar purported stockholder’s derivative lawsuit entitled City of Plantation Police Officers’ Employees’ Retirement System v. Guthart et al., C.A. No. 9726-CB, to be filed in the Court of Chancery of the State of Delaware. The Company has filed a Motion to Stay Proceedings in favor of the earlier-filed stockholder derivative lawsuits pending in federal and state courts in California. The parties are in the midst of briefing this motion, with a hearing set for August 8, 2014. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. | |
Product Liability Litigation | |
The Company is currently named as a defendant in approximately 95 individual product liability lawsuits filed in various state and federal courts by plaintiffs who allege that they or a family member underwent surgical procedures that utilized the da Vinci Surgical System and sustained a variety of personal injuries and, in some cases, death as a result of such surgery. The Company has also received a large number of product liability claims from plaintiffs' attorneys that are part of certain tolling agreements further discussed below. In addition, the Company has been named as a defendant in a purported class action filed in Louisiana state court, and removed to federal court, seeking damages on behalf of all patients who were allegedly injured by the da Vinci Surgical System at a single hospital in Louisiana. The Company has also been named as a defendant in a multi-plaintiff lawsuit filed in Missouri state court, seeking damages on behalf of 17 patients who had da Vinci surgeries in 11 different states. The cases raise a variety of allegations including, to varying degrees, that plaintiffs’ injuries resulted from purported defects in the da Vinci Surgical System and/or failure on the Company's part to provide adequate training resources to the healthcare professionals who performed plaintiffs’ surgeries. The cases further allege that the Company failed to adequately disclose and/or misrepresented the potential risks and/or benefits of the da Vinci Surgical System. Plaintiffs also assert a variety of causes of action, including for example, strict liability based on purported design defects, negligence, fraud, breach of express and implied warranties, unjust enrichment, and loss of consortium. Plaintiffs seek recovery for alleged personal injuries and, in many cases, punitive damages. The Company has reached confidential settlements in a small number of filed cases. With certain exceptions, including the Taylor case described below, the remaining cases generally are in the early stages of pretrial activity. | |
Plaintiffs’ attorneys have engaged in well-funded national advertising efforts seeking patients dissatisfied with da Vinci surgery. Among the allegations, a substantial number of claims relate to alleged complications from surgeries performed with certain versions of Monopolar Curved Scissor (“MCS”) instruments that included an MCS tip cover accessory that was the subject of a market withdrawal in 2012 and MCS instruments that were the subject of a recall in 2013. The Company has received a significant number of claims from plaintiffs’ attorneys as a result of these advertising efforts. In an effort to avoid the expense and distraction of defending multiple lawsuits, the Company entered into tolling agreements to pause the applicable statutes of limitations for the claims, and engaged in confidential mediation efforts. The attorneys for the patients agreed to collect and supply medical records, operative notes and other necessary information from these patients to the Company. Each claim was individually investigated. The collection and evaluation of the patients’ medical information was laborious. For hundreds of the asserted claims, the Company has never received medical records. As of June 30, 2014, approximately 2,300 sets of patient records have been received and evaluated. To evaluate these claims, the Company, assisted by independent medical consultants, reviewed and analyzed the large volumes of medical information that began to arrive in the fall of 2013. The completion of the legal and medical evaluation of a significant number of these claims occurred during the first quarter of 2014 and continued throughout the second quarter of 2014. | |
During the three months ended June 30, 2014, the Company recorded an additional pre-tax charge of $9.6 million to reflect the estimate of the cost of resolving a number of the product liability claims received. After an extended confidential mediation process with legal counsel for many of the claimants, the Company determined during the first quarter of 2014 that, while it denies any and all liability, in light of the costs and risks of litigation, settlement of certain claims may be appropriate. The Company’s estimate of the anticipated cost of resolving these claims is based on negotiations with attorneys for patients who have participated in the mediation process. To date, approximately 4,400 claims have been added to the tolling agreements and/or submitted into the mediation program. Of those, however, over 2,500 claims have voluntarily been removed from the tolling agreement and/or mediation program and plaintiffs’ counsels have indicated to the Company that they no longer intend to pursue these claims. Nonetheless, the claimants that have been removed from the tolling agreement remain free to pursue lawsuits against the Company and it is also possible that more claims will be made by other individuals who have undergone da Vinci surgery and allege that they suffered injuries. It is further possible that the claimants who participate in the mediations, as well as those claimants who have not participated in negotiations, will choose to pursue greater amounts in a court of law. Consequently, the final outcome of these claims is dependent on many variables that are difficult to predict and the ultimate cost associated with these product liability claims may be materially different than the amount of the current estimate and accruals and could have a material adverse effect on the Company's business, financial position, and future results of operations. Although there is a reasonable possibility that a loss in excess of the amount recognized exists, the Company is unable to estimate the possible loss or range of loss in excess of the amount recognized at this time. As of June 30, 2014, a total of $72.4 million was included in other accrued liabilities in the accompanying Condensed Consolidated Balance Sheets related to the product liability claims. | |
In February 2011, the Company was named as a defendant in a product liability action that had originally been filed in Washington State Superior Court for Kitsap County against the healthcare providers and hospital involved in plaintiff’s decedent’s surgery (Josette Taylor, as Personal Representative of the Estate of Fred E. Taylor, deceased; and on behalf of the Estate of Fred E. Taylor v. Intuitive Surgical, Inc., No. 09-2-03136-5). In Taylor, plaintiff asserted wrongful death and product liability claims against the Company, generally alleging that the decedent died four years after surgery as a result of injuries purportedly suffered during the surgery, which was conducted with the use of the da Vinci Surgical System. The plaintiff in Taylor asserted that such injuries were caused, in whole or in part, by the Company's purported failure to properly train, warn, and instruct the surgeon. The lawsuit sought unspecified damages for past medical expenses, pain and suffering, loss of consortium as well as punitive damages. A trial commenced in the action on April 15, 2013. On May 23, 2013, the jury returned a defense verdict, finding that the Company was not negligent. Judgment was entered in the Company's favor on June 7, 2013. Plaintiff has filed a notice of appeal. | |
False Claims Act Litigation | |
In October 2013, the Company was served in a case entitled Rose v. Intuitive Surgical, Inc., No. 12-cv-1812, in the Middle District of Florida. Relator Bryan Rose, a former employee of Intuitive Surgical, brought the action on behalf of the United States of America, alleging violations of the False Claims Act, 31 U.S.C. § 3729 et seq., and the analogous false-claims statutes of 21 states and of the District of Columbia. The parties reached a settlement in the case, and the court granted their joint motion for dismissal on May 21, 2014. The settlement did not have a material adverse effect on the Company's business, financial position or results of operations. | |
Insurance Litigation | |
In October 2013, the Company was named as a defendant in an insurance action entitled Illinois Union Insurance Co. v. Intuitive Surgical, Inc., No. 3:13-cv-04863-JST, filed in the Northern District of California. Plaintiff Illinois Union Insurance Co. seeks to rescind the Life Sciences Products-Completed Operations Liability Policy issued by Plaintiff to the Company, which provides coverage for products liability claims first made against the Company during the policy period March 1, 2013 to March 1, 2014. In December 2013, the Company was named as a defendant in another insurance action entitled Navigators Specialty Insurance Co. v. Intuitive Surgical, Inc., No. 5:13-cv-05801-HRL, filed in the Northern District of California. Plaintiff Navigators Insurance Co. alleges that the Follow Form Excess Liability Insurance Policy issued by Plaintiff to the Company for product liability claims first made against the Company during the policy period March 1, 2013 to March 1, 2014 should be rescinded. Both Plaintiffs generally allege that the Company did not disclose the existence of tolling agreements and the number of claimants incorporated within those agreements, and that those agreements were material to Plaintiffs’ underwriting processes. The Company intends to vigorously defend these actions. Based on currently available information, the Company does not believe the resolution of this matter will have a material adverse effect on the Company's business, financial position or future results of operations. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
STOCKHOLDERS' EQUITY | ' | |||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Share Repurchase Program | ||||||||||||||||||||
On May 2, 2014, the Company entered into an accelerated share repurchase program (the “ASR Program”) with Goldman, Sachs & Co. (“Goldman”) to repurchase $1.0 billion of the Company’s common stock under the stock repurchase program (the “Repurchase Program”) approved by the Company’s Board of Directors in 2009. After the ASR Program, as of June 30, 2014, the Company had used all amounts authorized for repurchase under the Repurchase Program. | ||||||||||||||||||||
During the three months ended June 30, 2014, the Company made an up-front payment of $1.0 billion pursuant to the ASR Program and received and retired 2.5 million shares ("Minimum Shares") of the Company’s common stock with an aggregate market value of $905.1 million on the date of the transaction, which was accounted for as a reduction to common stock and additional paid-in capital by an aggregate of $89.6 million and $815.5 million to retained earnings. The remaining $94.9 million was recorded as a forward contract as a reduction to additional paid-in capital. The Company reflects the ASR Program as a repurchase of common stock in the period delivered for purposes of calculating earnings per share and as forward contract indexed to its own common stock. The ASR Program met all of the applicable criteria for equity classification, and therefore, was not accounted for as a derivative instrument. | ||||||||||||||||||||
The total number of shares of the Company's common stock that will ultimately be received under the ASR Program will be based upon the average daily volume weighted average price of the Company's stock during the repurchase period, less an agreed upon discount. Final settlement of the transaction under the ASR Program is expected to be completed by early November 2014, although the completion date may be accelerated at Goldman’s option no earlier than July 7, 2014. If the Minimum Shares are less than the total number of shares that will be ultimately received under the ASR Program, then Goldman will be required to deliver additional shares of common stock to the Company at settlement. | ||||||||||||||||||||
The following table provides the share repurchase activities during the three and six months ended June 30, 2014, and 2013 (in millions, except per share amounts): | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Shares repurchased | 2.5 | 0.5 | 2.5 | 0.8 | ||||||||||||||||
Average price per share | (a) | $ | 493.49 | (a) | $ | 491.28 | ||||||||||||||
Value of shares repurchased | (a) | $ | 269.6 | (a) | $ | 415.4 | ||||||||||||||
(a) The number of shares represents shares delivered in the second quarter of 2014 and does not represent the final number of shares to be delivered under the ASR Program. Therefore, the average price paid per share will be determined at the end of the applicable purchase period. | ||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2014, and 2013, are as follows (in millions): | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | 0.2 | $ | 5.5 | $ | 0.7 | $ | (2.6 | ) | $ | 3.8 | |||||||||
Other comprehensive income before reclassifications | (0.1 | ) | (2.5 | ) | — | — | (2.6 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (0.2 | ) | (0.5 | ) | — | 0.1 | (0.6 | ) | ||||||||||||
Net current-period other comprehensive loss | (0.3 | ) | (3.0 | ) | — | 0.1 | (3.2 | ) | ||||||||||||
Ending balance | $ | (0.1 | ) | $ | 2.5 | $ | 0.7 | $ | (2.5 | ) | $ | 0.6 | ||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | 0.8 | $ | 7.3 | $ | — | $ | — | $ | 8.1 | ||||||||||
Other comprehensive income before reclassifications | 0.2 | (10.2 | ) | 0.1 | — | (9.9 | ) | |||||||||||||
Reclassified from accumulated other comprehensive income | (0.4 | ) | 0.1 | — | — | (0.3 | ) | |||||||||||||
Net current-period other comprehensive loss | (0.2 | ) | (10.1 | ) | 0.1 | — | (10.2 | ) | ||||||||||||
Ending balance | $ | 0.6 | $ | (2.8 | ) | $ | 0.1 | $ | — | $ | (2.1 | ) | ||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | ||||||||||
Other comprehensive income before reclassifications | 0.4 | 1.4 | 0.3 | (2.6 | ) | (0.5 | ) | |||||||||||||
Reclassified from accumulated other comprehensive income | (0.5 | ) | (0.6 | ) | — | 0.1 | (1.0 | ) | ||||||||||||
Net current-period other comprehensive loss | (0.1 | ) | 0.8 | 0.3 | (2.5 | ) | (1.5 | ) | ||||||||||||
Ending balance | $ | (0.1 | ) | $ | 2.5 | $ | 0.7 | $ | (2.5 | ) | $ | 0.6 | ||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 6.2 | $ | 0.4 | $ | — | $ | 6.6 | ||||||||||
Other comprehensive income before reclassifications | 1.6 | (9.3 | ) | (0.3 | ) | — | (8.0 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (1.0 | ) | 0.3 | — | — | (0.7 | ) | |||||||||||||
Net current-period other comprehensive loss | 0.6 | (9.0 | ) | (0.3 | ) | — | (8.7 | ) | ||||||||||||
Ending balance | $ | 0.6 | $ | (2.8 | ) | $ | 0.1 | $ | — | $ | (2.1 | ) | ||||||||
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||
As of June 30, 2014, approximately 1.3 million shares were reserved for future issuance under the Company’s stock plans. A maximum of 0.6 million of these shares can be granted as non-vested restricted stock units (“RSUs”). | ||||||||||||||||
Stock Option Plans | ||||||||||||||||
A summary of stock option activity under all stock plans for the six months ended June 30, 2014, is presented as follows (in millions, except per share amounts): | ||||||||||||||||
Stock Options Outstanding | ||||||||||||||||
Number | Weighted Average | |||||||||||||||
Outstanding | Exercise Price Per | |||||||||||||||
Share | ||||||||||||||||
Balance at December 31, 2013 | 5.6 | $ | 380.71 | |||||||||||||
Options granted | 0.4 | $ | 435.91 | |||||||||||||
Options exercised | (0.3 | ) | $ | 288.27 | ||||||||||||
Options forfeited/expired | (0.2 | ) | $ | 477.51 | ||||||||||||
Balance at June 30, 2014 | 5.5 | $ | 384.72 | |||||||||||||
As of June 30, 2014, options to purchase an aggregate of 3.5 million shares of common stock were exercisable at a weighted-average price of $341.80 per share. | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
Beginning in 2014, equity awards granted to employees include a mix of stock options and RSUs. RSUs vest in one-quarter increments over a four-year period. The number of shares issued on the date the RSUs vest is net of the minimum statutory tax withholdings, which are paid in cash to the appropriate taxing authorities on behalf of the Company's employees. | ||||||||||||||||
A summary of RSU activity for the six months ended June 30, 2014, is presented as follows (in millions, except per share amounts): | ||||||||||||||||
Shares | Weighted Average | |||||||||||||||
Grant Date Fair Value | ||||||||||||||||
Unvested balance at December 31, 2013 | — | $ | — | |||||||||||||
Granted | 0.2 | $ | 439.61 | |||||||||||||
Vested | — | $ | — | |||||||||||||
Canceled | — | $ | — | |||||||||||||
Unvested balance at June 30, 2014 | 0.2 | $ | 439.61 | |||||||||||||
The fair value of RSUs is determined based on the closing quoted price of the Company's common stock on the day of the grant. | ||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Under the Employee Stock Purchase Plan (“ESPP”), employees purchased approximately 0.1 million shares for $17.5 million and 0.1 million shares for $16.4 million during the six months ended June 30, 2014, and 2013, respectively. | ||||||||||||||||
Share-based Compensation | ||||||||||||||||
The following table summarizes share-based compensation expense for the three and six months ended June 30, 2014, and 2013 (in millions): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of sales - products | $ | 4.6 | $ | 4.1 | $ | 9 | $ | 8 | ||||||||
Cost of sales - services | 3.3 | 3 | 6.4 | 5.9 | ||||||||||||
Total cost of sales | 7.9 | 7.1 | 15.4 | 13.9 | ||||||||||||
Selling, general and administrative | 25.2 | 23 | 49.3 | 46 | ||||||||||||
Research and development | 8.8 | 8.6 | 18 | 17 | ||||||||||||
Share-based compensation expense before income taxes | 41.9 | 38.7 | 82.7 | 76.9 | ||||||||||||
Income tax benefit | 13.2 | 12.4 | 26.2 | 24.6 | ||||||||||||
Share-based compensation expense after income taxes | $ | 28.7 | $ | 26.3 | $ | 56.5 | $ | 52.3 | ||||||||
The fair value of each option grant and the fair value of the option component of the ESPP shares were estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions, assuming no expected dividends: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock Option Plans | ||||||||||||||||
Risk free interest rate | 1.7 | % | 0.8 | % | 1.5 | % | 0.9 | % | ||||||||
Expected term (in years) | 4.4 | 4.4 | 4.5 | 4.6 | ||||||||||||
Expected volatility | 32 | % | 31 | % | 31 | % | 29 | % | ||||||||
Weighted average fair value at grant date | $ | 111.74 | $ | 132.88 | $ | 122.55 | $ | 141.68 | ||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Risk free interest rate | — | — | 0.2 | % | 0.2 | % | ||||||||||
Expected term (in years) | — | — | 1.3 | 1.3 | ||||||||||||
Expected volatility | — | — | 33 | % | 33 | % | ||||||||||
Weighted average fair value at grant date | — | — | $ | 128.87 | $ | 170.51 | ||||||||||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
Income tax expense for the three months ended June 30, 2014, was $38.6 million, or 27.1% of income before taxes, compared with $63.7 million, or 28.6% of income before taxes for the three months ended June 30, 2013. Income tax expense for the six months ended June 30, 2014, was $54.8 million, or 27.0% of pre-tax income, compared with $130.3 million, or 27.2% of pre-tax income for the six months ended June 30, 2013. The Company’s effective tax rates for these periods differ from the U.S. federal statutory rate of 35% due primarily to the effect of income earned by certain of the Company’s entities outside of the U.S. being taxed at rates lower than the federal statutory rate, partially offset by state income taxes and non-deductible share-based compensation expenses. The Company intends to indefinitely reinvest outside the U.S. all of its undistributed foreign earnings that were not previously subject to U.S. tax. | |
The Company’s effective tax rate for the three and six months ended June 30, 2014, did not include the tax benefit from the U.S. federal Research and Development (“R&D”) credit because the credit expired at the end of 2013. If the credit is reinstated retroactively, the tax benefit will be recorded discretely in the period of reinstatement. In addition to reflecting net 2013 U.S. federal R&D credit, the income tax provision for the six months ended June 30, 2013, also reflected a discrete net benefit related to 2012 federal R&D credit which was retroactively reinstated in January of 2013. | |
As of June 30, 2014, the Company had total gross unrecognized tax benefits of approximately $81.6 million compared with approximately $74.0 million as of December 31, 2013, representing a net increase of approximately $7.6 million for the six months ended June 30, 2014. If recognized, these gross unrecognized tax benefits would reduce the effective tax rate in the period of recognition. Gross interest and penalties related to unrecognized tax benefit accrued were approximately $4.2 million and $3.4 million as of June 30, 2014, and December 31, 2013, respectively. | |
The Company files federal, state and foreign income tax returns in many jurisdictions in the U.S. and abroad. Generally, years before 2010 are closed for most significant jurisdictions except for California, for which all years before 2008 are considered closed. Certain of the Company’s unrecognized tax benefits could reverse based on the normal expiration of various statutes of limitations, which could affect the Company’s effective tax rate in the period in which they reverse. | |
The Company is subject to the examination of its income tax returns by the Internal Revenue Service (the "IRS") and other tax authorities. The outcome of these audits cannot be predicted with certainty. Management regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of the Company’s provision for income taxes. If any issues addressed in the tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
NET INCOME PER SHARE | ' | |||||||||||||||
NET INCOME PER SHARE | ||||||||||||||||
The following table presents the computation of basic and diluted net income per share for the three and six months ended June 30, 2014, and 2013 (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 104 | $ | 159.1 | $ | 148.3 | $ | 348 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding used in basic calculation | 36.9 | 39.9 | 37.6 | 40.1 | ||||||||||||
Add: Dilutive effect of potential common shares | 0.7 | 0.9 | 0.7 | 1 | ||||||||||||
Weighted-average shares used in computing diluted net income per share | 37.6 | 40.8 | 38.3 | 41.1 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 2.82 | $ | 3.99 | $ | 3.94 | $ | 8.68 | ||||||||
Diluted | $ | 2.77 | $ | 3.9 | $ | 3.87 | $ | 8.47 | ||||||||
Share-based compensation awards of approximately 3.2 million and 2.1 million weighted-average shares for the three months ended June 30, 2014, and 2013, respectively, and approximately 3.1 million and 1.9 million weighted-average shares for the six months ended June 30, 2014, and 2013, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been anti-dilutive. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited Condensed Consolidated Financial Statements (“financial statements”) of Intuitive Surgical, Inc. and its wholly-owned subsidiaries have been prepared on a consistent basis with the audited Consolidated Financial Statements for the fiscal year ended December 31, 2013, and include all adjustments, consisting of only normal recurring adjustments, necessary to fairly state the information set forth herein. The financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”), and, therefore, omit certain information and footnote disclosure necessary to present the financial statements in accordance with accounting principles generally accepted in the United States (“U.S.”) (“U.S. GAAP”). These financial statements should be read in conjunction with the audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, which was filed on February 3, 2014. The results of operations for the first six months of fiscal 2014 are not necessarily indicative of the results to be expected for the entire fiscal year or any future periods. | |
New Accounting Standards Recently Adopted | ' |
Recent Accounting Pronouncements | |
In June 2013, the Financial Accounting Standards Board ("FASB") determined that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss (“NOL”) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. This guidance is effective for the Company’s interim and annual periods beginning January 1, 2014. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. | |
In May 2014, the FASB issued Accounting Standards Updates No. 2014-09, Revenue from Contracts with Customers, requiring an entity to recognize the amount of revenue to which it expects to be entitled to for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is not permitted. The updated standard becomes effective for the Company in the first quarter of fiscal year 2017. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures. | |
Revenue Recognition | ' |
Revenue Recognition | |
The Company’s revenue consists of product revenue resulting from the sales of systems, instruments and accessories, and service revenue. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or service has been rendered, the price is fixed or determinable, and collectibility is reasonably assured. The Company generally recognizes revenue at the following points in time: | |
•System sales. For systems sold directly to end customers, revenue is recognized when acceptance occurs, which is deemed to have occurred upon customer acknowledgment of delivery or installation, depending on the terms of the arrangement. For systems sold through distributors, revenue is recognized when title and risk of loss has transferred, which generally occurs at the time of shipment. Distributors do not have price protection rights and the Company’s system arrangements generally do not provide a right of return. The da Vinci Surgical Systems are delivered with a software component. However, because the software and non-software elements function together to deliver the system’s essential functionality, the Company's arrangements are excluded from being accounted for under software revenue recognition guidance. | |
•Instruments and accessories. Revenue from sales of instruments and accessories is generally recognized at the time of shipment. The Company allows its customers in the normal course of business to return unused products for a limited period of time subsequent to initial purchase and records an allowance against revenue recognized based on historical experience. | |
•Service. Service revenue is recognized ratably over the term of the service period. Revenue related to services performed on a time-and-materials basis is recognized when it is earned and billable. | |
The Company offers its customers the opportunity to trade in their older systems for credit towards the purchase of a newer generation system. The Company generally does not provide specified price trade-in rights or upgrade rights at the time of system purchase. Such trade-in or upgrade transactions are separately negotiated based on the circumstances at the time of the trade-in or upgrade, based on the then fair value of the system, and are generally not based on any pre-existing rights granted by the Company. Accordingly, such trade-ins and upgrades are not considered as separate deliverables in the arrangement for a system sale. | |
As part of a trade-in transaction, the customer receives a new generation system in exchange for its pre-owned system. The trade-in credit is negotiated at the time of the trade-in and is applied towards the purchase price of the new generation unit. Traded-in systems can be reconditioned and resold. The Company accounts for trade-ins consistent with the guidance in AICPA Technical Practice Aid 5100.01, Equipment Sales Net of Trade-Ins (“TPA 5100.01”). The Company applies the accounting guidance by crediting system revenue for the negotiated price of the new generation system, while the difference between (a) the trade-in allowance and (b) the net realizable value of the traded-in system less a normal profit margin is treated as a sales allowance. The value of the traded-in system is determined as the amount, after reconditioning costs are added, that will allow a normal profit margin on the sale of the reconditioned unit to be generated. When there is no market for the traded-in units, no value is assigned. Traded-in units are reported as a component of inventory until reconditioned and resold, or otherwise disposed. | |
In addition, customers may also have the opportunity to upgrade their systems, for example, by adding a fourth arm to a three-arm system, adding a second surgeon console for use with the da Vinci Si Surgical System or adding new vision systems to the standard da Vinci and da Vinci S Surgical Systems. Such upgrades are performed by completing component level upgrades at the customer’s site. Upgrade revenue is recognized when the component level upgrades are complete and all revenue recognition criteria are met. | |
The Company's system sale arrangements contain multiple elements including a system(s), system accessories, instruments, accessories and system service. The Company generally delivers all of the elements, other than service, within days of entering into the system sale arrangement. Each of these elements is a separate unit of accounting. System accessories, instruments, accessories and service are also sold on a stand-alone basis. | |
For multiple-element arrangements, revenue is allocated to each unit of accounting based on their relative selling prices. Relative selling prices are based first on vendor specific objective evidence of fair value (“VSOE”), then on third-party evidence of selling price (“TPE”) when VSOE does not exist, and then on management's best estimate of the selling price (“ESP”) when VSOE and TPE do not exist. | |
The Company’s system sale arrangements generally include a one-year period of free service, and the right for the customer to purchase service annually after that for up to four years at a stated service price. The revenue allocated to the free service period is deferred and recognized ratably over the free service period. | |
Because the Company has neither VSOE nor TPE for its systems, the allocation of revenue is based on ESP for the systems sold. The objective of ESP is to determine the price at which the Company would transact a sale, had the product been sold on a stand-alone basis. The Company determines ESP for its systems by considering multiple factors, including, but not limited to, features and functionality of the system, geographies, type of customer, and market conditions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. | |
Leases | ' |
Leases | |
The Company enters into sales-type lease and operating lease arrangements with certain qualified customers to purchase or rent its systems. Sales-type leases have on average a 5-year term and are usually collateralized by a security interest in the underlying assets. Revenue related to multiple-element arrangements are allocated to lease and non-lease elements based on their relative selling prices as prescribed by our revenue recognition policy. Lease elements generally include a da Vinci Surgical System, while non-lease elements generally include service and instrument and accessories. In determining whether a transaction should be classified as a sales-type or operating lease, the Company primarily considers the following terms: (1) whether title of the system transfers automatically or for a nominal fee at the end of the term of the lease and (2) whether the present value of the minimum lease payments are equal to or greater than 90% of the fair market value of the system at the inception of the lease. | |
The Company generally recognizes revenue from sales-type lease arrangements at the time the system is accepted by the customer, assuming all other revenue recognition criteria have been met. Revenue from sales-type leases is presented as product revenue. Revenue from operating lease arrangements is recognized as earned over the lease term, which is generally on a straight-line basis and is presented as product revenue. Revenue from operating lease arrangements was not material in any of the periods presented. | |
Allowance for Sales Returns and Doubtful Accounts | ' |
Allowance for Sales Returns and Doubtful Accounts | |
The allowance for sales returns is based on the Company’s estimates of potential future product returns and other allowances related to current period product revenue. The Company analyzes historical returns, current economic trends, and changes in customer demand and acceptance of the Company's products. The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. The Company regularly reviews the allowance by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. | |
In connection with the launch of the da Vinci XiTM Surgical System, the Company offered certain customers who purchased a 4-arm da Vinci Si Surgical System the opportunity to trade out their systems for a da Vinci Xi Surgical System. Under this program, these customers are able to return their da Vinci Si Surgical System and receive a credit, substantially equal to the price paid for the da Vinci Si Surgical System, towards the purchase of a da Vinci Xi Surgical System. These customers have until September 30, 2014, to accept the Company's offer. Subject to meeting all other criteria of the Company's revenue recognition policy, the revenue deferred is recognized at the date the da Vinci Xi Surgical Systems and related instruments and accessories are shipped and accepted by the customers participating in the trade-in program, which is anticipated to be substantially completed by September 30, 2014. Similar return rights have been extended to certain European customers. In accordance with the guidance for accounting for arrangements in which return rights exist, system revenue and associated costs in an amount equal to the Company's estimate of the number of systems that will be returned have been deferred. |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | |||||||||||||||||||||||||||
Summary of Cash and Available-For-Sale Securities | ' | |||||||||||||||||||||||||||
The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of the Company’s cash and available-for-sale securities by investment category that are recorded as cash and cash equivalents, or short-term or long-term investments as of June 30, 2014, and December 31, 2013 (in millions): | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short- | Long- | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | term | term | ||||||||||||||||||||||
Gains | Losses | Equivalents | Investments | Investments | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Cash | $ | 209.1 | $ | — | $ | — | $ | 209.1 | $ | 209.1 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 239.3 | — | — | 239.3 | 239.3 | — | — | |||||||||||||||||||||
U.S. Treasuries & corporate equity securities | 129.5 | — | (0.6 | ) | 128.9 | 23.2 | 66.9 | 38.8 | ||||||||||||||||||||
Subtotal | 368.8 | — | (0.6 | ) | 368.2 | 262.5 | 66.9 | 38.8 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 76.6 | — | — | 76.6 | 30.9 | 45.7 | — | |||||||||||||||||||||
Corporate securities | 707 | 2.9 | (0.4 | ) | 709.5 | — | 152.6 | 556.9 | ||||||||||||||||||||
U.S. government agencies | 245 | 0.4 | (0.3 | ) | 245.1 | 5.1 | 26 | 214 | ||||||||||||||||||||
Non-U.S. government securities | 48.4 | 0.1 | — | 48.5 | — | 29.2 | 19.3 | |||||||||||||||||||||
Municipal securities | 385 | 1.4 | — | 386.4 | — | 150.6 | 235.8 | |||||||||||||||||||||
Subtotal | 1,462.00 | 4.8 | (0.7 | ) | 1,466.10 | 36 | 404.1 | 1,026.00 | ||||||||||||||||||||
Total assets measured at fair value | $ | 2,039.90 | $ | 4.8 | $ | (1.3 | ) | $ | 2,043.40 | $ | 507.6 | $ | 471 | $ | 1,064.80 | |||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short- | Long- | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | term | term | ||||||||||||||||||||||
Gains | Losses | Equivalents | Investments | Investments | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Cash | $ | 247.8 | $ | — | $ | — | $ | 247.8 | $ | 247.8 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 516.2 | — | — | 516.2 | 516.2 | — | — | |||||||||||||||||||||
U.S. Treasuries & corporate equity securities | 65.4 | — | (0.3 | ) | 65.1 | — | 25.5 | 39.6 | ||||||||||||||||||||
Subtotal | 581.6 | — | (0.3 | ) | 581.3 | 516.2 | 25.5 | 39.6 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 100.2 | — | — | 100.2 | 18.1 | 82.1 | — | |||||||||||||||||||||
Corporate securities | 844.7 | 2.9 | (1.9 | ) | 845.7 | — | 227.7 | 618 | ||||||||||||||||||||
U.S. government agencies | 352.2 | 0.7 | (0.7 | ) | 352.2 | — | 84.7 | 267.5 | ||||||||||||||||||||
Non-U.S. government securities | 67.7 | 0.2 | (0.1 | ) | 67.8 | — | 41.2 | 26.6 | ||||||||||||||||||||
Municipal securities | 550.1 | 1.5 | (0.1 | ) | 551.5 | — | 160.2 | 391.3 | ||||||||||||||||||||
Subtotal | 1,914.90 | 5.3 | (2.8 | ) | 1,917.40 | 18.1 | 595.9 | 1,303.40 | ||||||||||||||||||||
Level 3: | ||||||||||||||||||||||||||||
Auction rate securities | 8 | — | (0.6 | ) | 7.4 | — | — | 7.4 | ||||||||||||||||||||
Subtotal | 8 | — | (0.6 | ) | 7.4 | — | — | 7.4 | ||||||||||||||||||||
Total assets measured at fair value | $ | 2,752.30 | $ | 5.3 | $ | (3.7 | ) | $ | 2,753.90 | $ | 782.1 | $ | 621.4 | $ | 1,350.40 | |||||||||||||
Summary of Contractual Maturities of Cash Equivalents and Available-For-Sale Investments | ' | |||||||||||||||||||||||||||
The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale securities (excluding cash and money market funds), at June 30, 2014 (in millions): | ||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||
Mature in less than one year | $ | 522.2 | $ | 523.3 | ||||||||||||||||||||||||
Mature in one to five years | 1,062.00 | 1,064.80 | ||||||||||||||||||||||||||
Mature after five years | — | — | ||||||||||||||||||||||||||
Total | $ | 1,584.20 | $ | 1,588.10 | ||||||||||||||||||||||||
Gross Notional Amounts for Derivatives and Aggregate Gross Fair Value Outstanding | ' | |||||||||||||||||||||||||||
The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and aggregate gross fair value outstanding at the end of each period were as follows (in millions): | ||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Notional amounts: | ||||||||||||||||||||||||||||
Forward contracts | $ | 128.3 | $ | 107.7 | $ | 87.4 | $ | 97.5 | ||||||||||||||||||||
Gross fair value recorded in: | ||||||||||||||||||||||||||||
Prepaid and other current assets | $ | 0.3 | $ | — | $ | 0.3 | $ | — | ||||||||||||||||||||
Other accrued liabilities | $ | 0.1 | $ | 1.3 | $ | 0.3 | $ | 2.5 | ||||||||||||||||||||
BALANCE_SHEET_DETAILS_Tables
BALANCE SHEET DETAILS (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Inventory Details | ' | |||||||
The following table provides details of inventories (in millions): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 60.4 | $ | 67.2 | ||||
Work-in-process | 11.3 | 12.6 | ||||||
Finished goods | 130.7 | 99.8 | ||||||
Total inventories | $ | 202.4 | $ | 179.6 | ||||
LEASE_RECEIVABLES_Tables
LEASE RECEIVABLES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Leases [Abstract] | ' | |||||||
Schedule of Lease Receivables | ' | |||||||
Lease receivables relating to sales-type lease arrangements are presented on the Condensed Consolidated Balance Sheets as follows (in millions): | ||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Gross Lease Receivables | $ | 32 | $ | 10.1 | ||||
Unearned Income | (2.0 | ) | (0.6 | ) | ||||
Allowance for credit loss | — | — | ||||||
Net investment in sales-type lease | 30 | 9.5 | ||||||
Reported as: | ||||||||
Prepaids and other current assets | 4.9 | 1.9 | ||||||
Intangible and other assets, net | 25.1 | 7.6 | ||||||
Total, net | $ | 30 | $ | 9.5 | ||||
Schedule of Contractual Maturities of Gross Lease Receivables | ' | |||||||
Contractual maturities of gross lease receivables at June 30, 2014, are as follows (in millions): | ||||||||
Amount | ||||||||
2014 | $ | 2.8 | ||||||
2015 | 6.3 | |||||||
2016 | 7.3 | |||||||
2017 | 7.3 | |||||||
2018 | 6.6 | |||||||
Thereafter | 1.7 | |||||||
Total | $ | 32 | ||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Share Repurchase Activities | ' | |||||||||||||||||||
The following table provides the share repurchase activities during the three and six months ended June 30, 2014, and 2013 (in millions, except per share amounts): | ||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Shares repurchased | 2.5 | 0.5 | 2.5 | 0.8 | ||||||||||||||||
Average price per share | (a) | $ | 493.49 | (a) | $ | 491.28 | ||||||||||||||
Value of shares repurchased | (a) | $ | 269.6 | (a) | $ | 415.4 | ||||||||||||||
Components of Accumulated Other Comprehensive Income, Net of Tax | ' | |||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax, for the three and six months ended June 30, 2014, and 2013, are as follows (in millions): | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | 0.2 | $ | 5.5 | $ | 0.7 | $ | (2.6 | ) | $ | 3.8 | |||||||||
Other comprehensive income before reclassifications | (0.1 | ) | (2.5 | ) | — | — | (2.6 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (0.2 | ) | (0.5 | ) | — | 0.1 | (0.6 | ) | ||||||||||||
Net current-period other comprehensive loss | (0.3 | ) | (3.0 | ) | — | 0.1 | (3.2 | ) | ||||||||||||
Ending balance | $ | (0.1 | ) | $ | 2.5 | $ | 0.7 | $ | (2.5 | ) | $ | 0.6 | ||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | 0.8 | $ | 7.3 | $ | — | $ | — | $ | 8.1 | ||||||||||
Other comprehensive income before reclassifications | 0.2 | (10.2 | ) | 0.1 | — | (9.9 | ) | |||||||||||||
Reclassified from accumulated other comprehensive income | (0.4 | ) | 0.1 | — | — | (0.3 | ) | |||||||||||||
Net current-period other comprehensive loss | (0.2 | ) | (10.1 | ) | 0.1 | — | (10.2 | ) | ||||||||||||
Ending balance | $ | 0.6 | $ | (2.8 | ) | $ | 0.1 | $ | — | $ | (2.1 | ) | ||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | ||||||||||
Other comprehensive income before reclassifications | 0.4 | 1.4 | 0.3 | (2.6 | ) | (0.5 | ) | |||||||||||||
Reclassified from accumulated other comprehensive income | (0.5 | ) | (0.6 | ) | — | 0.1 | (1.0 | ) | ||||||||||||
Net current-period other comprehensive loss | (0.1 | ) | 0.8 | 0.3 | (2.5 | ) | (1.5 | ) | ||||||||||||
Ending balance | $ | (0.1 | ) | $ | 2.5 | $ | 0.7 | $ | (2.5 | ) | $ | 0.6 | ||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on Securities | Currency | ||||||||||||||||||
Instruments | Translation | |||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 6.2 | $ | 0.4 | $ | — | $ | 6.6 | ||||||||||
Other comprehensive income before reclassifications | 1.6 | (9.3 | ) | (0.3 | ) | — | (8.0 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income | (1.0 | ) | 0.3 | — | — | (0.7 | ) | |||||||||||||
Net current-period other comprehensive loss | 0.6 | (9.0 | ) | (0.3 | ) | — | (8.7 | ) | ||||||||||||
Ending balance | $ | 0.6 | $ | (2.8 | ) | $ | 0.1 | $ | — | $ | (2.1 | ) | ||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Summary of Stock Option Activity Under All Stock Plans | ' | |||||||||||||||
A summary of stock option activity under all stock plans for the six months ended June 30, 2014, is presented as follows (in millions, except per share amounts): | ||||||||||||||||
Stock Options Outstanding | ||||||||||||||||
Number | Weighted Average | |||||||||||||||
Outstanding | Exercise Price Per | |||||||||||||||
Share | ||||||||||||||||
Balance at December 31, 2013 | 5.6 | $ | 380.71 | |||||||||||||
Options granted | 0.4 | $ | 435.91 | |||||||||||||
Options exercised | (0.3 | ) | $ | 288.27 | ||||||||||||
Options forfeited/expired | (0.2 | ) | $ | 477.51 | ||||||||||||
Balance at June 30, 2014 | 5.5 | $ | 384.72 | |||||||||||||
Summary of RSU Activity | ' | |||||||||||||||
A summary of RSU activity for the six months ended June 30, 2014, is presented as follows (in millions, except per share amounts): | ||||||||||||||||
Shares | Weighted Average | |||||||||||||||
Grant Date Fair Value | ||||||||||||||||
Unvested balance at December 31, 2013 | — | $ | — | |||||||||||||
Granted | 0.2 | $ | 439.61 | |||||||||||||
Vested | — | $ | — | |||||||||||||
Canceled | — | $ | — | |||||||||||||
Unvested balance at June 30, 2014 | 0.2 | $ | 439.61 | |||||||||||||
The fair value of RSUs is determined based on the closing quoted price of the Company's common stock on the day of the grant. | ||||||||||||||||
Summary of Share-Based Compensation Expense | ' | |||||||||||||||
The following table summarizes share-based compensation expense for the three and six months ended June 30, 2014, and 2013 (in millions): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cost of sales - products | $ | 4.6 | $ | 4.1 | $ | 9 | $ | 8 | ||||||||
Cost of sales - services | 3.3 | 3 | 6.4 | 5.9 | ||||||||||||
Total cost of sales | 7.9 | 7.1 | 15.4 | 13.9 | ||||||||||||
Selling, general and administrative | 25.2 | 23 | 49.3 | 46 | ||||||||||||
Research and development | 8.8 | 8.6 | 18 | 17 | ||||||||||||
Share-based compensation expense before income taxes | 41.9 | 38.7 | 82.7 | 76.9 | ||||||||||||
Income tax benefit | 13.2 | 12.4 | 26.2 | 24.6 | ||||||||||||
Share-based compensation expense after income taxes | $ | 28.7 | $ | 26.3 | $ | 56.5 | $ | 52.3 | ||||||||
Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions | ' | |||||||||||||||
The fair value of each option grant and the fair value of the option component of the ESPP shares were estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions, assuming no expected dividends: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock Option Plans | ||||||||||||||||
Risk free interest rate | 1.7 | % | 0.8 | % | 1.5 | % | 0.9 | % | ||||||||
Expected term (in years) | 4.4 | 4.4 | 4.5 | 4.6 | ||||||||||||
Expected volatility | 32 | % | 31 | % | 31 | % | 29 | % | ||||||||
Weighted average fair value at grant date | $ | 111.74 | $ | 132.88 | $ | 122.55 | $ | 141.68 | ||||||||
Employee Stock Purchase Plan | ||||||||||||||||
Risk free interest rate | — | — | 0.2 | % | 0.2 | % | ||||||||||
Expected term (in years) | — | — | 1.3 | 1.3 | ||||||||||||
Expected volatility | — | — | 33 | % | 33 | % | ||||||||||
Weighted average fair value at grant date | — | — | $ | 128.87 | $ | 170.51 | ||||||||||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of Basic and Diluted Net Income Per Share | ' | |||||||||||||||
The following table presents the computation of basic and diluted net income per share for the three and six months ended June 30, 2014, and 2013 (in millions, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 104 | $ | 159.1 | $ | 148.3 | $ | 348 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding used in basic calculation | 36.9 | 39.9 | 37.6 | 40.1 | ||||||||||||
Add: Dilutive effect of potential common shares | 0.7 | 0.9 | 0.7 | 1 | ||||||||||||
Weighted-average shares used in computing diluted net income per share | 37.6 | 40.8 | 38.3 | 41.1 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 2.82 | $ | 3.99 | $ | 3.94 | $ | 8.68 | ||||||||
Diluted | $ | 2.77 | $ | 3.9 | $ | 3.87 | $ | 8.47 | ||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Deferred Revenue Arrangement [Line Items] | ' |
Average term of sales-type leases | '5 years |
Short-term deferred revenue | ' |
Deferred Revenue Arrangement [Line Items] | ' |
Deferred revenue | 19.9 |
FINANCIAL_INSTRUMENTS_Summary_
FINANCIAL INSTRUMENTS - Summary of Cash and Available-For-Sale Securities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | $2,039.90 | $2,752.30 | ' | ' |
Gross Unrealized Gains | 4.8 | 5.3 | ' | ' |
Gross Unrealized Losses | -1.3 | -3.7 | ' | ' |
Fair Value | 2,043.40 | 2,753.90 | ' | ' |
Cash and Cash Equivalents | 507.6 | 782.1 | 432.7 | 553.7 |
Short- term Investments | 471 | 621.4 | ' | ' |
Long- term Investments | 1,064.80 | 1,350.40 | ' | ' |
Cash | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 209.1 | 247.8 | ' | ' |
Fair Value | 209.1 | 247.8 | ' | ' |
Cash and Cash Equivalents | 209.1 | 247.8 | ' | ' |
Level 1 | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 368.8 | 581.6 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | -0.6 | -0.3 | ' | ' |
Fair Value | 368.2 | 581.3 | ' | ' |
Cash and Cash Equivalents | 262.5 | 516.2 | ' | ' |
Short- term Investments | 66.9 | 25.5 | ' | ' |
Long- term Investments | 38.8 | 39.6 | ' | ' |
Level 1 | Money market funds | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 239.3 | 516.2 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 239.3 | 516.2 | ' | ' |
Cash and Cash Equivalents | 239.3 | 516.2 | ' | ' |
Level 1 | U.S. Treasuries & corporate equity securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 129.5 | ' | ' | ' |
Gross Unrealized Gains | 0 | ' | ' | ' |
Gross Unrealized Losses | -0.6 | ' | ' | ' |
Fair Value | 128.9 | ' | ' | ' |
Cash and Cash Equivalents | 23.2 | ' | ' | ' |
Short- term Investments | 66.9 | ' | ' | ' |
Long- term Investments | 38.8 | ' | ' | ' |
Level 1 | U.S. Treasuries & corporate equity securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | ' | 65.4 | ' | ' |
Gross Unrealized Gains | ' | 0 | ' | ' |
Gross Unrealized Losses | ' | -0.3 | ' | ' |
Fair Value | ' | 65.1 | ' | ' |
Cash and Cash Equivalents | ' | 0 | ' | ' |
Short- term Investments | ' | 25.5 | ' | ' |
Long- term Investments | ' | 39.6 | ' | ' |
Level 2 | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 1,462 | 1,914.90 | ' | ' |
Gross Unrealized Gains | 4.8 | 5.3 | ' | ' |
Gross Unrealized Losses | -0.7 | -2.8 | ' | ' |
Fair Value | 1,466.10 | 1,917.40 | ' | ' |
Cash and Cash Equivalents | 36 | 18.1 | ' | ' |
Short- term Investments | 404.1 | 595.9 | ' | ' |
Long- term Investments | 1,026 | 1,303.40 | ' | ' |
Level 2 | Commercial paper | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 76.6 | 100.2 | ' | ' |
Gross Unrealized Gains | 0 | 0 | ' | ' |
Gross Unrealized Losses | 0 | 0 | ' | ' |
Fair Value | 76.6 | 100.2 | ' | ' |
Cash and Cash Equivalents | 30.9 | 18.1 | ' | ' |
Short- term Investments | 45.7 | 82.1 | ' | ' |
Long- term Investments | 0 | 0 | ' | ' |
Level 2 | Corporate securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 707 | 844.7 | ' | ' |
Gross Unrealized Gains | 2.9 | 2.9 | ' | ' |
Gross Unrealized Losses | -0.4 | -1.9 | ' | ' |
Fair Value | 709.5 | 845.7 | ' | ' |
Cash and Cash Equivalents | 0 | 0 | ' | ' |
Short- term Investments | 152.6 | 227.7 | ' | ' |
Long- term Investments | 556.9 | 618 | ' | ' |
Level 2 | U.S. government agencies | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 245 | 352.2 | ' | ' |
Gross Unrealized Gains | 0.4 | 0.7 | ' | ' |
Gross Unrealized Losses | -0.3 | -0.7 | ' | ' |
Fair Value | 245.1 | 352.2 | ' | ' |
Cash and Cash Equivalents | 5.1 | 0 | ' | ' |
Short- term Investments | 26 | 84.7 | ' | ' |
Long- term Investments | 214 | 267.5 | ' | ' |
Level 2 | Non-U.S. government securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 48.4 | 67.7 | ' | ' |
Gross Unrealized Gains | 0.1 | 0.2 | ' | ' |
Gross Unrealized Losses | 0 | -0.1 | ' | ' |
Fair Value | 48.5 | 67.8 | ' | ' |
Cash and Cash Equivalents | 0 | 0 | ' | ' |
Short- term Investments | 29.2 | 41.2 | ' | ' |
Long- term Investments | 19.3 | 26.6 | ' | ' |
Level 2 | Municipal securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | 385 | 550.1 | ' | ' |
Gross Unrealized Gains | 1.4 | 1.5 | ' | ' |
Gross Unrealized Losses | 0 | -0.1 | ' | ' |
Fair Value | 386.4 | 551.5 | ' | ' |
Cash and Cash Equivalents | 0 | 0 | ' | ' |
Short- term Investments | 150.6 | 160.2 | ' | ' |
Long- term Investments | 235.8 | 391.3 | ' | ' |
Level 3 | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | ' | 8 | ' | ' |
Gross Unrealized Gains | ' | 0 | ' | ' |
Gross Unrealized Losses | ' | -0.6 | ' | ' |
Fair Value | ' | 7.4 | ' | ' |
Cash and Cash Equivalents | ' | 0 | ' | ' |
Short- term Investments | ' | 0 | ' | ' |
Long- term Investments | ' | 7.4 | ' | ' |
Level 3 | Municipal securities | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Amortized Cost | ' | 8 | ' | ' |
Gross Unrealized Gains | ' | 0 | ' | ' |
Gross Unrealized Losses | ' | -0.6 | ' | ' |
Fair Value | ' | 7.4 | ' | ' |
Cash and Cash Equivalents | ' | 0 | ' | ' |
Short- term Investments | ' | 0 | ' | ' |
Long- term Investments | ' | $7.40 | ' | ' |
FINANCIAL_INSTRUMENTS_Summary_1
FINANCIAL INSTRUMENTS - Summary of Contractual Maturities of Cash Equivalents and Available-For-Sale Investments (Detail) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Amortized Cost | ' |
Mature in less than one year, Amortized Cost | $522.20 |
Mature in one to five years, Amortized Cost | 1,062 |
Mature in after five years, Amortized Cost | 0 |
Total, Amortized Cost | 1,584.20 |
Fair Value | ' |
Mature in less than one year, Fair Value | 523.3 |
Mature in one to five years, Fair Value | 1,064.80 |
Mature in after five years, Fair Value | 0 |
Total, Fair Value | $1,588.10 |
FINANCIAL_INSTRUMENTS_Gross_No
FINANCIAL INSTRUMENTS - Gross Notional Amounts for Outstanding Derivatives (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives Designated as Hedging Instruments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notional amount, forward contracts | $128.30 | $107.70 |
Gross fair value of derivative assets | 0.3 | 0 |
Gross fair value of derivative liabilities | 0.1 | 1.3 |
Derivatives Not Designated as Hedging Instruments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Notional amount, forward contracts | 87.4 | 97.5 |
Gross fair value of derivative assets | 0.3 | 0 |
Gross fair value of derivative liabilities | $0.30 | $2.50 |
FINANCIAL_INSTRUMENTS_Addition
FINANCIAL INSTRUMENTS - Additional Information (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, unless otherwise specified | Auction rate securities | Auction rate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive income, net unrealized gains on investments, before tax | $3.50 | $1.60 | ' | ' |
Accumulated other comprehensive income, net unrealized gains on investments, tax | 1 | 0.7 | ' | ' |
Securities redeemed, par value | ' | ' | 8 | ' |
Unrealized gains related to the recovery of unrealized losses recorded in previous quarter | ' | ' | ' | $0.60 |
BALANCE_SHEET_DETAILS_Details_
BALANCE SHEET DETAILS - Details of Selected Balance Sheet Items (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories: | ' | ' |
Raw materials | $60.40 | $67.20 |
Work-in-process | 11.3 | 12.6 |
Finished goods | 130.7 | 99.8 |
Total inventories | $202.40 | $179.60 |
BALANCE_SHEET_DETAILS_Goodwill
BALANCE SHEET DETAILS - Goodwill and Intangible Assets (Details) (USD $) | 6 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jan. 17, 2014 | Jun. 25, 2014 | Jun. 25, 2014 | Jun. 25, 2014 |
Luna Innovations, Inc. [Member] | Adachi Co., Ltd [Member] | Adachi Co., Ltd [Member] | Adachi Co., Ltd [Member] | ||
Reacquired Rights [Member] | Customer Relationships [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Increase in goodwill | $60.60 | ' | ' | ' | ' |
Increase in intangible assets | 22.7 | ' | ' | ' | ' |
Acquisition of intangible assets | ' | 9.5 | ' | 5.5 | 17.2 |
Acquired intangible assets, weighted average amortization period | ' | '9 years | ' | '1 year 1 month 6 days | '7 years |
Goodwill, acquired during the period | ' | 10.1 | 50.5 | ' | ' |
Liabilities assumed in connection with acquisition | ' | ' | 2.7 | ' | ' |
Purchase consideration, cash | ' | ' | 68.7 | ' | ' |
Purchase consideration, contingent liability | ' | ' | $1.80 | ' | ' |
LEASE_RECEIVABLES_Lease_Receiv
LEASE RECEIVABLES - Lease Receivables (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Capital Leased Assets [Line Items] | ' | ' |
Gross Lease Receivables | $32 | $10.10 |
Unearned Income | -2 | -0.6 |
Allowance for credit loss | 0 | 0 |
Net investment in sales-type lease | 30 | 9.5 |
Prepaids and other current assets | ' | ' |
Reported as: | ' | ' |
Prepaids and other current assets | 4.9 | 1.9 |
Intangible and other assets, net | ' | ' |
Reported as: | ' | ' |
Intangible and other assets, net | $25.10 | $7.60 |
LEASE_RECEIVABLES_Gross_Contra
LEASE RECEIVABLES - Gross Contractual Maturities of Lease Receivables (Details) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $2.80 |
2015 | 6.3 |
2016 | 7.3 |
2017 | 7.3 |
2018 | 6.6 |
Thereafter | 1.7 |
Total | $32 |
CONTINGENCIES_Additional_Infor
CONTINGENCIES - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 16, 2014 |
Product liability claims | Product liability claims | Product liability claims | da Vinci Multi-Plaintiff Lawsuit | Subsequent Event | |
lawsuit | lawsuit | Product liability claims | Police Retirement System of St. Louis v. Intuitive Surgical, Inc. et al. [Member] | ||
Plaintiff | |||||
patient_record | |||||
state | |||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' |
Additional loss contingency accrual | $9.60 | $67.40 | ' | ' | ' |
Number of days plaintiffs will have from entry of judgment to seek rehearing or rehearing en banc | ' | ' | ' | ' | '14 days |
Number of lawsuits | 95 | ' | 95 | ' | ' |
Number of patients in lawsuit | ' | ' | ' | 17 | ' |
Number of states in lawsuit | ' | ' | ' | 11 | ' |
Number of patient records received and evaluated | ' | ' | ' | 2,300 | ' |
Number of claims added | ' | ' | 4,400 | ' | ' |
Number of claims voluntarily removed | ' | ' | 2,500 | ' | ' |
Loss contingency liability | $72.40 | ' | $72.40 | ' | ' |
STOCKHOLDERS_EQUITY_Share_Repu
STOCKHOLDERS' EQUITY - Share Repurchase Program (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 3 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | 2-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | ||
Goldman, Sachs & Co. share repurchase program | Goldman, Sachs & Co. share repurchase program | Common stock and APIC | Retained earnings | ||||||
Goldman, Sachs & Co. share repurchase program | Goldman, Sachs & Co. share repurchase program | ||||||||
Accelerated Share Repurchases [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Amount authorized under accelerated share repurchase program | ' | ' | ' | ' | $1,000,000,000 | ' | ' | ||
Up-front payment pursuant to accelerated share repurchase program | ' | ' | ' | 1,000,000,000 | ' | ' | ' | ||
Number of shares repurchased | 0.5 | 2.5 | [1] | 0.8 | 2.5 | [1] | ' | ' | ' |
Value of shares repurchased | 269,600,000 | ' | 415,400,000 | 905,100,000 | ' | ' | ' | ||
Remaining up-front payment, forward contract | ' | ' | ' | 94,900,000 | ' | ' | ' | ||
Average price per share (in dollars per share) | $493.49 | ' | $491.28 | ' | ' | ' | ' | ||
Shares retired | ' | ' | ' | ' | ' | $89,600,000 | $815,500,000 | ||
[1] | The number of shares represents shares delivered in the second quarter of 2014 and does not represent the final number of shares to be delivered under the ASR Program. Therefore, the average price paid per share will be determined at the end of the applicable purchase period. |
STOCKHOLDERS_EQUITY_Components
STOCKHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income, Net of Tax (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Gains (Losses) on Hedge Instruments | ' | ' | ' | ' |
Beginning balance | $0.20 | $0.80 | $0 | $0 |
Other comprehensive income before reclassifications | -0.1 | 0.2 | 0.4 | 1.6 |
Reclassified from accumulated other comprehensive income | -0.2 | -0.4 | -0.5 | -1 |
Net current-period other comprehensive loss | -0.3 | -0.2 | -0.1 | 0.6 |
Ending balance | -0.1 | 0.6 | -0.1 | 0.6 |
Unrealized Gains (Losses) on Securities | ' | ' | ' | ' |
Beginning balance | 5.5 | 7.3 | 1.7 | 6.2 |
Other comprehensive income before reclassifications | -2.5 | -10.2 | 1.4 | -9.3 |
Reclassified from accumulated other comprehensive income | -0.5 | 0.1 | -0.6 | 0.3 |
Net current-period other comprehensive loss | -3 | -10.1 | 0.8 | -9 |
Ending balance | 2.5 | -2.8 | 2.5 | -2.8 |
Foreign Currency Translation Gains (Losses) | ' | ' | ' | ' |
Beginning balance | 0.7 | 0 | 0.4 | 0.4 |
Other comprehensive income before reclassifications | 0 | 0.1 | 0.3 | -0.3 |
Reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive loss | 0 | 0.1 | 0.3 | -0.3 |
Ending balance | 0.7 | 0.1 | 0.7 | 0.1 |
Employee Benefit Plans | ' | ' | ' | ' |
Beginning balance | -2.6 | 0 | 0 | 0 |
Other comprehensive income before reclassifications | 0 | 0 | -2.6 | 0 |
Reclassified from accumulated other comprehensive income | 0.1 | 0 | 0.1 | 0 |
Net current-period other comprehensive loss | 0.1 | 0 | -2.5 | 0 |
Ending balance | -2.5 | 0 | -2.5 | 0 |
Total | ' | ' | ' | ' |
Beginning balance | 3.8 | 8.1 | 2.1 | 6.6 |
Other comprehensive income before reclassifications | -2.6 | -9.9 | -0.5 | -8 |
Reclassified from accumulated other comprehensive income | -0.6 | -0.3 | -1 | -0.7 |
Net current-period other comprehensive loss | -3.2 | -10.2 | -1.5 | -8.7 |
Ending balance | $0.60 | ($2.10) | $0.60 | ($2.10) |
SHAREBASED_COMPENSATION_Summar
SHARE-BASED COMPENSATION - Summary Of Stock Option Activity Under All Stock Plans (Detail) (USD $) | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Number Outstanding | ' |
Beginning balance, Number Outstanding | 5.6 |
Options granted, Number Outstanding | 0.4 |
Options exercised, Number Outstanding | -0.3 |
Options forfeited/expired, Number Outstanding | -0.2 |
Ending balance, Number Outstanding | 5.5 |
Weighted Average Exercise Price Per Share | ' |
Beginning balance, Weighted Average Exercise Price Per Share | $380.71 |
Options granted, Weighted Average Exercise Price Per Share | $435.91 |
Options exercised, Weighted Average Exercise Price Per Share | $288.27 |
Options forfeited/expired, Weighted Average Exercise Price Per Share | $477.51 |
Ending balance, Weighted Average Exercise Price Per Share | $384.72 |
SHAREBASED_COMPENSATION_Summar1
SHARE-BASED COMPENSATION - Summary of RSU Activity (Details) (Restricted Stock Units (RSUs), USD $) | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Restricted Stock Units (RSUs) | ' |
RSU Activity, Shares [Roll Forward] | ' |
Unvested balance at December 31, 2013 | 0 |
Granted | 0.2 |
Vested | 0 |
Canceled | 0 |
Unvested balance at June 30, 2014 | 0.2 |
RSU Activity, Weighted Average Grant Date Fair Value | ' |
Unvested balance at December 31, 2013 | $0 |
Granted | $439.61 |
Vested | $0 |
Canceled | $0 |
Unvested balance at June 30, 2014 | $439.61 |
SHAREBASED_COMPENSATION_StockB
SHARE-BASED COMPENSATION - Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense before income taxes | $41.90 | $38.70 | $82.70 | $76.90 |
Income tax benefit | 13.2 | 12.4 | 26.2 | 24.6 |
Share-based compensation expense after income taxes | 28.7 | 26.3 | 56.5 | 52.3 |
Total cost of sales | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense before income taxes | 7.9 | 7.1 | 15.4 | 13.9 |
Total cost of sales | Cost of sales - products | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense before income taxes | 4.6 | 4.1 | 9 | 8 |
Total cost of sales | Cost of sales - services | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense before income taxes | 3.3 | 3 | 6.4 | 5.9 |
Selling, general and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense before income taxes | 25.2 | 23 | 49.3 | 46 |
Research and development | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense before income taxes | $8.80 | $8.60 | $18 | $17 |
SHAREBASED_COMPENSATION_Schedu
SHARE-BASED COMPENSATION - Schedule Of Estimated Fair Value Of Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 1.70% | 0.80% | 1.50% | 0.90% |
Expected term (in years) | '4 years 4 months 24 days | '4 years 4 months 24 days | '4 years 6 months | '4 years 7 months 6 days |
Expected volatility | 32.00% | 31.00% | 31.00% | 29.00% |
Weighted average fair value at grant date | $111.74 | $132.88 | $122.55 | $141.68 |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected dividend rate | 0.00% | 0.00% | 0.00% | 0.00% |
Risk free interest rate | 0.00% | 0.00% | 0.20% | 0.20% |
Expected term (in years) | ' | ' | '1 year 3 months 18 days | '1 year 3 months 18 days |
Expected volatility | 0.00% | 0.00% | 33.00% | 33.00% |
Weighted average fair value at grant date | $0 | $0 | $128.87 | $170.51 |
SHAREBASED_COMPENSATION_Additi
SHARE-BASED COMPENSATION - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares reserved for future issuance | 1.3 | ' |
Options exercisable, number of shares | 3.5 | ' |
Options exercisable, weighted-average exercise price per share | $341.80 | ' |
Employee Stock Purchase Plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Employee Stock Purchase Plan, number of shares purchased by employees | 0.1 | 0.1 |
Employee Stock Purchase Plan, value of shares purchased by employees | $17.50 | $16.40 |
Restricted Stock Units (RSUs) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of shares reserved for future issuance | 0.6 | ' |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax expense | $38.60 | $63.70 | $54.80 | $130.30 | ' |
Income tax expense, percentage of pre-tax income | 27.10% | 28.60% | 27.00% | 27.20% | ' |
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% | ' |
Total gross unrecognized tax benefits | 81.6 | ' | 81.6 | ' | 74 |
Unrecognized tax benefits, period increase | ' | ' | 7.6 | ' | ' |
Gross interest and penalties related to unrecognized tax benefit accrued | $4.20 | ' | $4.20 | ' | $3.40 |
NET_INCOME_PER_SHARE_Computati
NET INCOME PER SHARE - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' | ' |
Net income | $104 | $159.10 | $148.30 | $348 |
Weighted-average shares outstanding used in basic calculation | 36.9 | 39.9 | 37.6 | 40.1 |
Add: Dilutive effect of potential common shares | 0.7 | 0.9 | 0.7 | 1 |
Weighted-average shares used in computing diluted net income per share | 37.6 | 40.8 | 38.3 | 41.1 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $2.82 | $3.99 | $3.94 | $8.68 |
Diluted (in dollars per share) | $2.77 | $3.90 | $3.87 | $8.47 |
NET_INCOME_PER_SHARE_Additiona
NET INCOME PER SHARE - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Employee stock options excluded from computation of diluted net income per share | 3.2 | 2.1 | 3.1 | 1.9 |