Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 16, 2015 | Jun. 30, 2014 | |
Document Document And Entity Information [Abstract] | |||
Entity Registrant Name | INTUITIVE SURGICAL INC | ||
Entity Central Index Key | 1035267 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ISRG | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 36,599,799 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $14,639,055,551 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $600.30 | $782.10 |
Short-term investments | 632.2 | 621.4 |
Accounts receivable, net of allowances of $0.3 and $0.5 at December 31, 2014 and 2013, respectively | 315.1 | 301.4 |
Inventories | 181.7 | 179.6 |
Prepaids and other current assets | 82.6 | 38.3 |
Deferred tax assets | 35.1 | 9.6 |
Total current assets | 1,847 | 1,932.40 |
Property, plant and equipment, net | 387.4 | 309.9 |
Long-term investments | 1,264.50 | 1,350.40 |
Long-term deferred tax asset | 136.2 | 126.1 |
Intangible and other assets, net | 126.3 | 94.1 |
Goodwill | 198 | 137.4 |
Total assets | 3,959.40 | 3,950.30 |
Current liabilities: | ||
Accounts payable | 61.6 | 46.2 |
Accrued compensation and employee benefits | 96.2 | 70.7 |
Deferred revenue | 216.6 | 200.1 |
Other accrued liabilities | 126.8 | 63.9 |
Total current liabilities | 501.2 | 380.9 |
Other long-term liabilities | 78.8 | 68 |
Total liabilities | 580 | 448.9 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, 2.5 shares authorized, $0.001 par value, issuable in series; no shares issued and outstanding as of December 31, 2014 and December 31, 2013, respectively | 0 | 0 |
Common stock, 100.0 shares authorized, $0.001 par value, 36.6 shares and 38.2 shares issued and outstanding as of December 31, 2014 and December 31, 2013, respectively | 0 | 0 |
Additional paid-in capital | 2,896.80 | 2,519.90 |
Retained earnings | 487.7 | 979.4 |
Accumulated other comprehensive income (loss) | -5.1 | 2.1 |
Total stockholders’ equity | 3,379.40 | 3,501.40 |
Total liabilities and stockholders’ equity | $3,959.40 | $3,950.30 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $0.30 | $0.50 |
Preferred stock, shares authorized | 2,500,000 | 2,500,000 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares issued | 36,600,000 | 38,200,000 |
Common stock, shares outstanding | 36,600,000 | 38,200,000 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Product | $1,702.70 | $1,867.80 | $1,836.20 |
Service | 429 | 397.3 | 342.6 |
Total revenue | 2,131.70 | 2,265.10 | 2,178.80 |
Cost of revenue: | |||
Product | 569.9 | 543.4 | 495.3 |
Service | 148 | 127.5 | 113.2 |
Total cost of revenue | 717.9 | 670.9 | 608.5 |
Gross profit | 1,413.80 | 1,594.20 | 1,570.30 |
Operating expenses: | |||
Selling, general and administrative | 691 | 574 | 522.2 |
Research and development | 178 | 167.7 | 170 |
Total operating expenses | 869 | 741.7 | 692.2 |
Income from operations | 544.8 | 852.5 | 878.1 |
Interest and other income, net | 4.2 | 18.4 | 15.8 |
Income before taxes | 549 | 870.9 | 893.9 |
Income tax expense | 130.2 | 199.9 | 237.3 |
Net income | $418.80 | $671 | $656.60 |
Net income per share: | |||
Basic (in dollars per share) | $11.35 | $17.12 | $16.50 |
Diluted (in dollars per share) | $11.11 | $16.73 | $15.98 |
Shares used in computing net income per share: | |||
Basic (in shares) | 36.9 | 39.2 | 39.8 |
Diluted (in shares) | 37.7 | 40.1 | 41.1 |
Consolidated_Statements_Of_Oth
Consolidated Statements Of Other Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $418.80 | $671 | $656.60 |
Other comprehensive income (loss): | |||
Change in foreign currency translation gains (losses) | -2.5 | 0 | 0.6 |
Available-for-sale investments: | |||
Change in unrealized gains (losses), net of tax | -3.9 | -3.9 | 5 |
Less: Reclassification adjustment for net gains (losses) on investments recognized during the year, net of tax | 2 | -0.6 | 0.1 |
Net change, net of tax effect | -1.9 | -4.5 | 5.1 |
Derivative instruments: | |||
Change in unrealized gains (losses) | 8.6 | -1.8 | -1.1 |
Less: Reclassification adjustment for gains (losses) on derivative instruments recognized during the year, net of tax | -7.5 | 1.8 | 1.1 |
Net change, net of tax effect | 1.1 | 0 | 0 |
Employee benefit plans: | |||
Change in unrealized losses | -4.2 | 0 | 0 |
Less: Reclassification adjustment for gains (losses) on employee benefit plans recognized during the year, net of tax | 0.3 | 0 | 0 |
Net change, net of tax effect | 3.9 | 0 | 0 |
Other comprehensive income (loss) | -7.2 | -4.5 | 5.7 |
Total comprehensive income | $411.60 | $666.50 | $662.30 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) |
In Millions, unless otherwise specified | |||||
Beginning Balances at Dec. 31, 2011 | $2,645.60 | $0 | $1,742.80 | $901.90 | $0.90 |
Beginning Balances (in shares) at Dec. 31, 2011 | 39.3 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of options and under stock purchase plan (in shares) | 1.3 | ||||
Issuance of common stock upon exercise of options and under stock purchase plan | 263.3 | 263.3 | |||
Income tax benefit from employee stock plans | 93.9 | 93.9 | |||
Share-based compensation expense related to employee stock plans | 153.3 | 153.3 | |||
Repurchase and retirement of common stock (in shares) | -0.4 | ||||
Repurchase and retirement of common stock | -238.3 | -13.2 | -225.1 | ||
Net income | 656.6 | 656.6 | |||
Other comprehensive income | 5.7 | 5.7 | |||
Ending Balances at Dec. 31, 2012 | 3,580.10 | 0 | 2,240.10 | 1,333.40 | 6.6 |
Ending Balances (in shares) at Dec. 31, 2012 | 40.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of options and under stock purchase plan (in shares) | 0.6 | ||||
Issuance of common stock upon exercise of options and under stock purchase plan | 160.6 | 160.6 | |||
Income tax benefit from employee stock plans | 34.5 | 34.5 | |||
Share-based compensation expense related to employee stock plans | 168.9 | 168.9 | |||
Repurchase and retirement of common stock (in shares) | -2.6 | ||||
Repurchase and retirement of common stock | -1,109.20 | -84.2 | -1,025 | ||
Net income | 671 | 671 | |||
Other comprehensive income | -4.5 | -4.5 | |||
Ending Balances at Dec. 31, 2013 | 3,501.40 | 0 | 2,519.90 | 979.4 | 2.1 |
Ending Balances (in shares) at Dec. 31, 2013 | 38.2 | 38.2 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of options and under stock purchase plan (in shares) | 0.9 | ||||
Issuance of common stock upon exercise of options and under stock purchase plan | 283.6 | 283.6 | |||
Income tax benefit from employee stock plans | 13.9 | 13.9 | |||
Share-based compensation expense related to employee stock plans | 168.9 | 168.9 | |||
Repurchase and retirement of common stock (in shares) | -2.5 | ||||
Repurchase and retirement of common stock | -1,000 | -89.5 | -910.5 | ||
Net income | 418.8 | 418.8 | |||
Other comprehensive income | -7.2 | -7.2 | |||
Ending Balances at Dec. 31, 2014 | $3,379.40 | $0 | $2,896.80 | $487.70 | ($5.10) |
Ending Balances (in shares) at Dec. 31, 2014 | 36.6 | 36.6 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $418.80 | $671 | $656.60 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 52 | 46 | 34.7 |
Amortization of intangible assets | 22.4 | 21.3 | 23.1 |
Loss of investment, accretion of discounts and amortization of premiums on investments, net | 33.9 | 36.8 | 33.1 |
Deferred income taxes | -35 | -38.5 | -20.8 |
Income tax benefits from employee stock plans | 13.9 | 34.5 | 93.9 |
Excess tax benefit from employee stock plans | -24 | -38 | -94.2 |
Share-based compensation expense | 168.9 | 168.9 | 153.3 |
Changes in operating assets and liabilities, net of effects of acquisition: | |||
Accounts receivable | -13.7 | 68.9 | -68.9 |
Inventories | -26.8 | -70 | -7.1 |
Prepaids and other assets | -67.6 | -5 | -37.1 |
Accounts payable | 17.7 | -8.9 | 8.4 |
Accrued compensation and employee benefits | 21.4 | -33.3 | 21 |
Deferred revenue | 19.8 | 15.2 | 30.5 |
Other liabilities | 63.4 | 11.1 | -12.3 |
Net cash provided by operating activities | 665.1 | 880 | 814.2 |
Investing activities: | |||
Purchase of investments | -1,344.60 | -1,443.70 | -1,833.90 |
Proceeds from sales of investments | 665.9 | 984.9 | 329.8 |
Proceeds from maturities of investments | 714.7 | 822.4 | 800.2 |
Purchase of property, plant and equipment, intellectual property | -105.6 | -104.6 | -114.2 |
Acquisition of business, net of cash acquired | -84.3 | 0 | -27.6 |
Net cash provided by (used in) investing activities | -153.9 | 259 | -845.7 |
Financing activities: | |||
Proceeds from issuance of common stock | 283.6 | 160.6 | 263.3 |
Excess tax benefit from employee stock plans | 24 | 38 | 94.2 |
Repurchase and retirement of common stock | -1,000 | -1,109.20 | -238.3 |
Net cash (used in) provided by financing activities | -692.4 | -910.6 | 119.2 |
Effect of exchange rate changes on cash and cash equivalents | -0.6 | 0 | 0.2 |
Net increase (decrease) in cash and cash equivalents | -181.8 | 228.4 | 87.9 |
Cash and cash equivalents, beginning of year | 782.1 | 553.7 | 465.8 |
Cash and cash equivalents, end of year | $600.30 | $782.10 | $553.70 |
Description_of_the_Business
Description of the Business | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS |
Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci® Surgical Systems and related instruments and accessories, which taken together, are advanced surgical systems, The Company believes these surgical systems enable a new generation of surgery. This advanced 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 System translates 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 System is 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 | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary Of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | ||
The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include the valuation and recognition of investments, the valuation of the revenue and allowance for sales returns and doubtful accounts, the estimation of hedging transactions, the valuation of inventory, the assessment of recoverability of intangible assets and their estimated useful lives, revenue recognition, the valuation and recognition of share-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities, and the legal contingencies estimate. Actual results could differ materially from these estimates. | ||
Concentrations of Credit Risk and Other Risks and Uncertainties | ||
The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities and derivative instruments are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities and derivative instruments consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing. | ||
The Company’s accounts receivable are derived from net revenue to customers and distributors located throughout the world. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2014, and 2013, 64% and 66%, respectively, of accounts receivable were from domestic customers. No single customer represented more than 10% of net accounts receivable as of December 31, 2014, and 2013. | ||
During the years ended December 31, 2014, 2013, and 2012, domestic revenue accounted for 70%, 72%, and 79%, respectively, of total revenue, while international revenue accounted for 30%, 28%, and 21%, respectively, of total revenue for each of the years then ended. No single customer represented more than 10% of total revenue for the years ended December 31, 2014, 2013, and 2012. | ||
Cash and Cash Equivalents | ||
The Company considers all highly liquid investments with an original maturity from date of purchase of 90 days or less to be cash equivalents. | ||
Investments | ||
Available-for-sale investments. The Company’s investments consist of U.S. treasury and U.S. government agency securities, taxable and tax exempt municipal notes, corporate notes and bonds, commercial paper, cash deposits, and money market funds. The Company has designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest and other income, net. Investments with original maturities greater than approximately three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. | ||
Other-than-temporary impairment. All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary included the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security prior the expected recovery of the investment's amortized cost basis. During the year ended December 31, 2014, the Company recorded pre-tax other-than-temporary losses of $8.5 million related to equity investments, while there were no such charges during the years ended December 31, 2013, and 2012. | ||
Fair Value Measurements | ||
The Company measures the fair value of money market funds, corporate equity securities and certain debt securities based on quoted prices in active markets for identical assets as Level 1 securities. Marketable securities, measured at fair value using Level 2 inputs, are primarily comprised of U.S. government agencies and FDIC guaranteed securities and corporate debt securities. The Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the Level 2 classification of these securities within the fair value hierarchy. | ||
Where Level 1 and Level 2 inputs are not available, the Company used a discounted cash flow model based on data available, including interest rates, timing and amount of cash flows, credit and liquidity premiums, and expected holding period for Level 3 securities. The only Level 3 securities consist of municipal bonds with auction rate securities ("ARS") whose underlying assets are student loans which are substantially backed by the federal government. Because the auctions for these securities have continued to fail since February 2008, these investments were not actively traded and therefore did not have a readily determinable market value. During the year ended December 31, 2014, the ARS were redeemed at par value. | ||
Inventories | ||
Inventory is stated at the lower of cost or market on a first-in, first-out basis. Inventory costs include direct materials, direct labor, and normal manufacturing overhead. The cost basis of the Company’s inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. | ||
Property, Plant and Equipment | ||
Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets generally as follows: | ||
Useful Lives | ||
Building | Up to 30 years | |
Building improvements | Up to 15 years | |
Leasehold improvements | Lesser of useful life or term of lease | |
Equipment and furniture | 5 years | |
Computer equipment | 3 years | |
Enterprise-wide software | 5 years | |
Purchased software | Lesser of 3 years or life of license | |
Depreciation expense for years ended December 31, 2014, 2013, and 2012 was $52.0 million, $46.0 million, and $34.7 million, respectively. | ||
Capitalized Software Costs for Internal Use | ||
Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. The Company capitalized costs for enhancement of the enterprise resource planning software system and other internal use software of $12.0 million and $6.6 million during the years ended December 31, 2014 and 2013, respectively. Upon being placed in service, these costs are depreciated over an estimated useful life of up to 5 years. | ||
Goodwill and Intangible Assets | ||
Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually during the fourth fiscal quarter, or as circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets. The Company continues to operate in one segment, which is considered to be the sole reporting unit and therefore, goodwill was tested for impairment at the enterprise level. As of December 31, 2014, there has been no impairment of goodwill. | ||
The Company does not have intangible assets with indefinite useful lives other than goodwill. The Company’s intangible assets are comprised of purchased intellectual property. These intangible assets are carried at cost, net of accumulated amortization. Amortization is recorded on a straight-line basis over the intangible assets' useful lives, which range from approximately 1 to 9 years. | ||
Impairment of Long-lived assets | ||
The Company evaluates long-lived assets, which include amortizable intangible and tangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. No material impairment losses were incurred in the periods presented. | ||
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 collectability is reasonably assured. Revenue is presented net of taxes collected from customers that are remitted to government authorities. 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 SiTM and XiTM Surgical System or adding new vision systems to the standard da Vinci and da Vinci STM 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 establishing and updating 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 the Company's revenue recognition policy. Lease elements generally include a da Vinci Surgical System, while non-lease elements generally include service, instruments and accessories. In determining whether a transaction should be classified as a sales-type or operating lease, the Company 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, (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, (3) whether the life of the lease exceeds 75% of the life of the asset, and (4) whether there is an option to purchase the asset at a "bargain price" at the end of the lease term. | ||
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. | ||
Share-Based Compensation | ||
The Company accounts for share-based employee compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. | ||
Expected Term: The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The Company determines expected term based on historical exercise patterns and its expectation of the time it will take for employees to exercise options still outstanding. | ||
Expected Volatility: The Company uses market-based implied volatility for purposes of valuing options granted. Market-based implied volatility is derived based on at least one-year traded options on the Company’s common stock. The extent to which the Company relies on market-based volatility when valuing options, depend among other things, on the availability of traded options on the Company’s stock and the term of such options. Due to sufficient volume of the traded options, the Company used 100% market-based implied volatility to value options granted, which the Company believes is more representative of future stock price trends than historical volatility. | ||
Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. | ||
The fair value of restricted stock units is determined based on the closing quoted price of the Company's common stock on the day of the grant. See “Note 9. Share-Based Compensation,” for a detailed discussion of the Company's share-based employee compensation plans and share-based compensation expense. | ||
Computation of Net Income per Share | ||
Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options and restricted stock units. | ||
U.S. GAAP requires that employee equity share options, non-vested shares and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional-paid-in-capital (“APIC”) when the award becomes deductible are all assumed to be used to repurchase shares. | ||
Research and Development Expenses | ||
Research and development expenses include amortization of purchased intellectual property, costs associated with co-development R&D licensing arrangements, costs of prototypes, salaries, benefits and other headcount related costs, contract and other outside service fees, and facilities and overhead costs. | ||
Foreign Currency and Other Hedging Instruments | ||
For subsidiaries whose local currency is their functional currency, their assets and liabilities are translated into U.S. dollars at exchange rates at the balance sheet date and revenues and expenses are translated using average exchange rates in effect during the period. Gains and losses from foreign currency translation are included in accumulated other comprehensive income (loss) within stockholders’ equity in the Consolidated Balance Sheets. For all non-functional currency account balances, the re-measurement of such balances to the functional currency will result in either a foreign exchange gain or loss, which is recorded to interest and other income, net in the same accounting period that the re-measurement occurred. | ||
The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk. The Company enters into foreign currency forward contracts with one to seven-month terms. The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue. The Company may also enter into foreign currency forward contracts to offset the foreign currency exchange gains and losses generated by re-measurement of certain assets and liabilities denominated in non-functional currencies. The hedging program is not designated for trading or speculative purposes. | ||
The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments. The Company records all derivatives on the Consolidated Balance Sheets at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income (loss) (“OCI”) until the hedged item is recognized in earnings. Derivative instruments designated as cash flow hedges are de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two month time period. Deferred gains and losses in OCI associated with such derivative instruments are reclassified immediately into earnings through interest and other income, net. Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings. | ||
Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings in interest and other income, net. | ||
Income Taxes | ||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. | ||
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ||
Segments | ||
The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. As of December 31, 2014 and 2013, 93% and 94% of all long-lived assets were in the United States. For the years ended December 31, 2014, 2013, and 2012, 70%, 72%, and 79%, respectively, of net revenue were generated in the United States. | ||
Legal Contingencies | ||
The Company is involved in a number of legal proceedings involving product liability, intellectual property, shareholder derivative actions, securities class actions, and other matters. A liability and related charge are recorded to earnings in the Company's consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is reevaluated each accounting period and is based on all available information, including discussion with outside legal counsel. If a reasonable estimate of a known or probable loss cannot be made, but a range of probable losses can be estimated, the low-end of the range of losses is recognized if no amount within the range is a better estimate than any other. If a loss is reasonably possible, but not probable and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. | ||
When determining the estimated probable loss or range of losses, significant judgment is required to be exercised in order to estimate the amount and timing of the loss to be recorded. Estimates of probable losses resulting from litigation are inherently difficult to make, particularly when the matters are in early procedural stages with incomplete facts and information. The final outcome of legal proceedings is dependent on many variables difficult to predict, and therefore, the ultimate cost to entirely resolve such matters may be materially different than the amount of current estimates. Consequently, new information or changes in judgments and estimates could have a material adverse effect on the Company's business, financial condition, and results of operations or cash flows. | ||
Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board ("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 the Consolidated Financial Statements and related disclosures. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Financial Instruments | FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||
Cash, Cash Equivalents and Investments | ||||||||||||||||||||||||||||
The following tables summarize the Company’s cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents or short-term or long-term investments as of December 31, 2014, and 2013 (in millions): | ||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-term | Long-term | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | ||||||||||||||||||||||
Gains | Losses | Equivalents | ||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Cash | $ | 227.7 | $ | — | $ | — | $ | 227.7 | $ | 227.7 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 324.4 | — | — | 324.4 | 324.4 | — | — | |||||||||||||||||||||
U.S. treasuries & corporate equity securities | 46.1 | — | (0.1 | ) | 46 | — | 19.3 | 26.7 | ||||||||||||||||||||
Subtotal | 370.5 | — | (0.1 | ) | 370.4 | 324.4 | 19.3 | 26.7 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 120.5 | — | — | 120.5 | 48.2 | 72.3 | — | |||||||||||||||||||||
Corporate securities | 904.8 | 1.3 | (1.6 | ) | 904.5 | — | 241.7 | 662.8 | ||||||||||||||||||||
U.S. government agencies | 446 | 0.3 | (0.4 | ) | 445.9 | — | 105.6 | 340.3 | ||||||||||||||||||||
Non-U.S. government securities | 42.2 | — | (0.1 | ) | 42.1 | — | 26.1 | 16 | ||||||||||||||||||||
Municipal securities | 385.4 | 0.7 | (0.2 | ) | 385.9 | — | 167.2 | 218.7 | ||||||||||||||||||||
Subtotal | 1,898.90 | 2.3 | (2.3 | ) | 1,898.90 | 48.2 | 612.9 | 1,237.80 | ||||||||||||||||||||
Total assets measured at fair value | $ | 2,497.10 | $ | 2.3 | $ | (2.4 | ) | $ | 2,497.00 | $ | 600.3 | $ | 632.2 | $ | 1,264.50 | |||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-term | Long-term | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | ||||||||||||||||||||||
Gains | Losses | Equivalents | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
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 investments (excluding cash and money market funds), at December 31, 2014 (in millions): | ||||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||
Mature in less than one year | $ | 676.7 | $ | 677.4 | ||||||||||||||||||||||||
Mature in one to five years | 1,265.40 | 1,264.50 | ||||||||||||||||||||||||||
Mature in after five years | — | — | ||||||||||||||||||||||||||
Total | $ | 1,942.10 | $ | 1,941.90 | ||||||||||||||||||||||||
Realized gains and losses, net of tax, were not material for any of the periods presented. | ||||||||||||||||||||||||||||
As of December 31, 2014, and 2013, net unrealized loss on investments of $0.2 million, net of tax, and net unrealized gains on investments of $1.7 million, net of tax, were included in accumulated other comprehensive income (loss) in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
The following tables present the breakdown of the available-for-sale investments with unrealized losses at December 31, 2014, and 2013 (in millions): | ||||||||||||||||||||||||||||
Unrealized losses less | Unrealized losses 12 | Total | ||||||||||||||||||||||||||
than 12 months | months or greater | |||||||||||||||||||||||||||
December 31, 2014 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
Corporate securities | $ | 456.7 | $ | (1.3 | ) | $ | 16.9 | $ | (0.2 | ) | $ | 473.6 | $ | (1.5 | ) | |||||||||||||
U.S. government and agency securities | 239.1 | (0.4 | ) | 31.8 | (0.2 | ) | 270.9 | (0.6 | ) | |||||||||||||||||||
Municipal securities | 91.3 | (0.2 | ) | — | — | 91.3 | (0.2 | ) | ||||||||||||||||||||
Non-U.S. government securities | 20.9 | (0.1 | ) | 20.9 | (0.1 | ) | ||||||||||||||||||||||
$ | 808 | $ | (2.0 | ) | $ | 48.7 | $ | (0.4 | ) | $ | 856.7 | $ | (2.4 | ) | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Corporate securities | $ | 245.3 | $ | (1.9 | ) | $ | 9.5 | $ | — | $ | 254.8 | $ | (1.9 | ) | ||||||||||||||
U.S. government and agency securities | 142.8 | (1.0 | ) | — | — | 142.8 | (1.0 | ) | ||||||||||||||||||||
Municipal securities | 37.6 | (0.1 | ) | — | — | 37.6 | (0.1 | ) | ||||||||||||||||||||
Non-U.S. government securities | 18.7 | (0.1 | ) | — | — | 18.7 | (0.1 | ) | ||||||||||||||||||||
Auction rate securities | — | — | 7.4 | (0.6 | ) | 7.4 | (0.6 | ) | ||||||||||||||||||||
$ | 444.4 | $ | (3.1 | ) | $ | 16.9 | $ | (0.6 | ) | $ | 461.3 | $ | (3.7 | ) | ||||||||||||||
The unrealized losses on the available-for-sale investments are related to corporate securities and government securities. The Company determined these unrealized losses to be temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investment's fair value has been less than the cost basis; the financial condition and near-term prospects of the investee; extent of the loss related to credit of the issuer; the expected cash flows from the security; the Company’s intent to sell the security and whether or not the Company will be required to sell the security before the recovery of its amortized cost. | ||||||||||||||||||||||||||||
The following table provides reconciliation for all assets measured at fair value using significant unobservable Level 3 inputs for the years ended December 31, 2014, 2013, and 2012 (in millions): | ||||||||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||||
Reporting Date Using | ||||||||||||||||||||||||||||
Significant Unobservable | ||||||||||||||||||||||||||||
Inputs (Level 3) | ||||||||||||||||||||||||||||
Auction rate securities | ||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 16.4 | ||||||||||||||||||||||||||
Sales | (12.0 | ) | ||||||||||||||||||||||||||
Total gains: | ||||||||||||||||||||||||||||
Included in other comprehensive income | 3 | |||||||||||||||||||||||||||
Included in earnings | — | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 7.4 | ||||||||||||||||||||||||||
Sales | — | |||||||||||||||||||||||||||
Total gains: | ||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||
Included in earnings | — | |||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 7.4 | ||||||||||||||||||||||||||
Sales | (8.0 | ) | ||||||||||||||||||||||||||
Total gains: | ||||||||||||||||||||||||||||
Included in other comprehensive income | 0.6 | |||||||||||||||||||||||||||
Included in earnings | — | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | — | ||||||||||||||||||||||||||
There were no transfers between Level 1 and Level 2 measurements during the year ended December 31, 2014, and there were no changes in the valuation techniques used. The Level 3 assets consisted of municipal bonds with auction rate securities ("ARS") that were sold at par value of $8.0 million in April 2014. | ||||||||||||||||||||||||||||
Foreign currency derivative | ||||||||||||||||||||||||||||
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 and 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 USD, primarily the European Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), 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 (loss) in stockholders' equity and reclassifies into earnings in the same period in which the hedge transaction affects earnings. The Company reclassified net gains of $7.5 million to revenue related to the hedged revenue transactions for the years ended December 31, 2014, while the net gains/losses reclassified for the year ended December 31 2013, and 2012 were not significant. | ||||||||||||||||||||||||||||
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, JPY, KRW, and the Swiss Franc (“CHF”). | ||||||||||||||||||||||||||||
Derivative instruments used to hedge against balance sheet foreign currency exposures at the end of each period were as follows (in millions): | ||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Recognized gains (losses) in interest and other income, net | $ | 5.7 | $ | (3.4 | ) | $ | (0.3 | ) | ||||||||||||||||||||
Foreign exchange gains (losses) related to re-measurement | $ | (6.9 | ) | $ | 3.1 | $ | 0.7 | |||||||||||||||||||||
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 | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Notional amounts: | ||||||||||||||||||||||||||||
Forward contracts | $ | 7.9 | $ | 85.6 | $ | 102.1 | $ | 119.6 | ||||||||||||||||||||
Gross fair value recorded in: | ||||||||||||||||||||||||||||
Prepaid and other current assets | 1.1 | — | 7.9 | — | ||||||||||||||||||||||||
Other accrued liabilities | $ | — | $ | — | $ | 0.1 | $ | 3.8 | ||||||||||||||||||||
Balance_Sheet_Details_and_Othe
Balance Sheet Details and Other Financial Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Balance Sheet Details and Other Financial Information | BALANCE SHEET DETAILS AND OTHER FINANCIAL INFORMATION | |||||||||||
The following table provides details of the inventories (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Inventories: | ||||||||||||
Raw materials | $ | 60 | $ | 67.2 | ||||||||
Work-in-process | 8.7 | 12.6 | ||||||||||
Finished goods | 113 | 99.8 | ||||||||||
Total inventories | $ | 181.7 | $ | 179.6 | ||||||||
The following table provides details of the property, plant and equipment, net (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Property, plant and equipment, net: | ||||||||||||
Land | $ | 131.7 | $ | 84.7 | ||||||||
Building and building/leasehold improvements | 159 | 151.9 | ||||||||||
Machinery and equipment | 181.6 | 137.2 | ||||||||||
Computer and office equipment | 31.3 | 27.1 | ||||||||||
Capitalized software | 77.9 | 66.9 | ||||||||||
Construction-in-process | 28.8 | 16.4 | ||||||||||
Gross property, plant and equipment | 610.3 | 484.2 | ||||||||||
Less: Accumulated depreciation | (222.9 | ) | (174.3 | ) | ||||||||
Total property, plant and equipment, net | $ | 387.4 | $ | 309.9 | ||||||||
The following table provides details of the other accrued liabilities—short term (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Other accrued liabilities—short term: | ||||||||||||
Taxes payable | $ | 7.4 | $ | 5.1 | ||||||||
Tolled product liability claims accrued | 49.5 | — | ||||||||||
Other accrued liabilities | 69.9 | 58.8 | ||||||||||
Total other accrued liabilities—short-term | $ | 126.8 | $ | 63.9 | ||||||||
The following table provides details of the other long-term liabilities balance sheet item (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Other long-term liabilities: | ||||||||||||
Income taxes—long term | $ | 61.8 | $ | 64.5 | ||||||||
Other long-term liabilities | 17 | 3.5 | ||||||||||
Total other long-term liabilities | $ | 78.8 | $ | 68 | ||||||||
Supplemental Cash flow Information | ||||||||||||
The following table provides supplemental cash flow information (in millions): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income taxes paid | $ | 176.8 | $ | 194.1 | $ | 226.1 | ||||||
Supplemental non-cash investing activities: | ||||||||||||
Equipment transfers from inventories to property, plant and equipment | $ | 27.2 | $ | 13.1 | $ | 22.3 | ||||||
Lease_Receivables
Lease Receivables | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases [Abstract] | ||||||||
Lease Receivables | LEASE RECEIVABLES | |||||||
Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Gross lease receivables | $ | 40.4 | $ | 10.1 | ||||
Unearned income | (2.2 | ) | (0.6 | ) | ||||
Allowance for credit loss | — | — | ||||||
Net investment in sales-type leases | 38.2 | 9.5 | ||||||
Reported as: | ||||||||
Prepaids and other current assets | 5.8 | 1.9 | ||||||
Intangible and other assets, net | 32.4 | 7.6 | ||||||
Total, net | $ | 38.2 | $ | 9.5 | ||||
Contractual maturities of gross lease receivables at December 31, 2014, are as follows (in millions): | ||||||||
Amount | ||||||||
2015 | 7.4 | |||||||
2016 | 10.4 | |||||||
2017 | 10.3 | |||||||
2018 | 9.1 | |||||||
2019 | 3.2 | |||||||
Thereafter | — | |||||||
Total | $ | 40.4 | ||||||
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||||
On January 17, 2014, the Company acquired certain intellectual property, know-how, fixed assets, intangible assets, and employees from Luna Innovations, Inc. (“Luna”). On June 25, 2014, the Company reacquired the Japan distribution rights and intangible assets from Adachi Co., Ltd. (“Adachi”). 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 purchase consideration consisted of cash of $71.8 million and contingent payments of $1.8 million. Goodwill related to the acquisitions in 2014 is deductible for tax purposes. | |||||||||||||||||||||||||
Pro forma results of operations related to the acquisitions have not been presented because the operating results of the acquired businesses are not material to the Company's consolidated financial statements. | |||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||
The Company’s gross carrying amount of goodwill was $198.0 million and $137.4 million as of December 31, 2014, and 2013, respectively. | |||||||||||||||||||||||||
Intangibles | |||||||||||||||||||||||||
The following table summarizes the components of gross intangible asset, accumulated amortization, and net intangible asset balances as of December 31, 2014, and 2013 (in millions): | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Patents and developed technology | $ | 162.1 | $ | (116.8 | ) | $ | 45.3 | $ | 155.7 | $ | (104.5 | ) | $ | 51.2 | |||||||||||
Distribution rights and others | 12.7 | (6.5 | ) | 6.2 | 11.2 | (6.4 | ) | 4.8 | |||||||||||||||||
Customer relationships | 30 | (7.4 | ) | 22.6 | 12.8 | (4.5 | ) | 8.3 | |||||||||||||||||
Total intangible assets | $ | 204.8 | $ | (130.7 | ) | $ | 74.1 | $ | 179.7 | $ | (115.4 | ) | $ | 64.3 | |||||||||||
Amortization expense related to intangible assets was $22.4 million, $21.3 million, and $23.1 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||||
The estimated future amortization expense of intangible assets as of December 31, 2014 is as follows (in millions): | |||||||||||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||||||||||
2015 | $ | 24.4 | |||||||||||||||||||||||
2016 | 18.2 | ||||||||||||||||||||||||
2017 | 12.4 | ||||||||||||||||||||||||
2018 | 8.6 | ||||||||||||||||||||||||
2019 | 3.6 | ||||||||||||||||||||||||
2020 and thereafter | 6.9 | ||||||||||||||||||||||||
Total | $ | 74.1 | |||||||||||||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES | |||
OPERATING LEASES | ||||
The Company leases office space in Brazil, China, Japan, Korea, Mexico, Switzerland, and United States. The Company leases automobiles for certain sales and field service employees. These leases have varying terms, predominantly no longer than three years. | ||||
Future minimum lease commitments under the Company’s operating leases as of December 31, 2014, are as follows (in millions): | ||||
Years | Amount | |||
2015 | $ | 5.1 | ||
2016 | 3.5 | |||
2017 | 1.6 | |||
2018 | 0.6 | |||
2019 | — | |||
2020 and thereafter | — | |||
Total | $ | 10.8 | ||
Other commitments include an estimated amount of approximately $251.5 million of all open cancellable purchase orders and contractual obligations that occur in the ordinary course of business, including commitments with suppliers, for which we have not received the goods or services. | ||||
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. It is not possible to predict what the outcome of these matters will be and the Company cannot guarantee that any resolution will be reached on commercially reasonable terms, if at all. With the exception of the charges recorded related to the Company’s estimate of the probable loss associated with the tolled product liability claims described below, the Company has determined that an estimate of probable loss or range of loss related to material pending or threatened litigation matters cannot be determined as of December 31, 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. | ||||
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 7 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 SEC. 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 declined to seek any further review of the decision and the matter is now at an end. | ||||
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 was stayed pending final resolution of the appeal in the purported shareholder class action lawsuit discussed above. On October 23, 2014, the plaintiffs voluntarily dismissed the consolidated cases. The matter is now at an end. | ||||
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. The matter is now at an end. | ||||
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, No. 5:13-cv-1920. 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 certain public statements and in the Company's filings with the SEC. 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, which was granted in part and denied in part on August 21, 2014. The plaintiffs have elected not to further amend their complaint. On October 22, 2014, the court granted the Company’s motion for leave to file a motion for reconsideration of the court’s August 21, 2014, order. The Company filed its motion for reconsideration on November 5, 2014, the plaintiffs filed their opposition on November 19, 2014, and the Company filed its reply on November 26, 2014. The court denied the motion for reconsideration on December 15, 2014. The case will move forward on the claims that remain. No trial date has been set. 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 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. On July 30, 2014 the court granted Robert Berg’s motion to be appointed lead plaintiff, denied the City of Birmingham’s motion seeking such appointment (see below for additional description), and re-titled the matter In re Intuitive Surgical, Inc. Shareholder Derivative Litigation, No. 4:14-CV-00515. On August 13, 2014, Berg filed a consolidated complaint, making allegations substantially similar to the allegations in his original complaint. On September 12, 2014, the Company filed a motion to dismiss the consolidated complaint. Berg filed his opposition on October 9, 2014, and the Company filed its reply on October 30, 2014. The motion 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 In re Intuitive Surgical Securities Litigation and Berg v. Guthart 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. On August 28, 2014 the Company filed a motion seeking to stay the case in favor of the federal action and asking that the plaintiff be required to post a bond because the action was duplicative and was not in the Company’s best interests. On November 13, 2014, the superior court entered an order denying the Company’s bond request and denying in part the Company’s motion to stay. On November 18, 2014, the Company petitioned the First Appellate District of the California Court of Appeal for a writ of mandate directing the superior court to stay the case in its entirety. At the same time, the Company requested an immediate stay of proceedings pending resolution of the petition. On November 19, 2014, the Court of Appeal granted the Company’s request for an immediate stay and set a briefing schedule for the petition. The plaintiff filed its opposition to the petition on December 8, 2014, and the Company filed its reply on December 22, 2014. The petition was denied on January 8, 2015. On January 20, 2015, the Company demurred (moved to dismiss) the complaint. A hearing is set for February 11, 2015. 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. On July 30, 2014, the court consolidated the case with Berg v. Guthart and, as noted above, granted Berg’s motion to be appointed lead plaintiff and denied the City of Birmingham’s motion seeking such appointment. This effectively ends the City of Birmingham’s involvement in this matter. 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 filed a Motion to Stay Proceedings in favor of the earlier-filed stockholder derivative lawsuits pending in federal and state courts in California. In light of the Company’s motion, the plaintiff agreed to a stay of all proceedings in the case in favor of the earlier-filed 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. | ||||
Product Liability Litigation | ||||
The Company is currently named as a defendant in approximately 102 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. The Company has also been named as a defendant in a multi-plaintiff lawsuit filed in Missouri state court. On November 26, 2014, plaintiffs amended their complaint to add three additional plaintiffs. In total, plaintiffs seek damages on behalf of 20 patients who had da Vinci Surgeries in 13 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 many of the filed cases. With certain exceptions, including the Taylor case described below, the remaining filed cases generally are in the early stages of pretrial activity. | ||||
The Company previously reported that it was 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 settled this case and it was dismissed with prejudice on October 20, 2014. The settlement did not have a material adverse effect on the Company’s business, financial position or results of operations. | ||||
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 that it believes are 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 these 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 patient records related to these claims were received, 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 remainder of 2014. | ||||
After an extended confidential mediation process with legal counsel for many of the claimants covered by the tolling agreements, 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. During the year ended December 31, 2014, the Company recorded pre-tax charges of $82.4 million to reflect the estimated cost of settling a number of the product liability claims covered by the tolling agreements. 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 4,800 claims have been added to the tolling agreements and/or submitted into the mediation program. Of those, however, over 3,100 claims have voluntarily been removed from the tolling agreements 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 additional 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 December 31, 2014, a total of $49.5 million of the charges recorded during 2014 was included in other accrued liabilities in the accompanying Consolidated Balance Sheets related to the tolled 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, 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 | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY | |||||||||||||||||||
STOCK REPURCHASE PROGRAM | ||||||||||||||||||||
The Company's Board of Directors has authorized an aggregate of $3.0 billion of funding for the Company's common stock repurchase program (the “Repurchase Program”) since originally established in March 2009. As of December 31, 2014, the Company had used all amounts authorized for stock repurchases under the Repurchase Program. | ||||||||||||||||||||
On January 29, 2015 subsequent to the end of fiscal year 2014, the Company's Board of Directors authorized the Company to repurchase up to $1.0 billion of the Company’s outstanding common stock. | ||||||||||||||||||||
On May 2, 2014, the Company entered into an accelerated share repurchase program (the “2014 ASR Program”) with Goldman, Sachs & Co. (“Goldman”) to repurchase $1.0 billion of the Company’s common stock under the Repurchase Program. Under the 2014 ASR Program, the Company made an up-front payment of $1.0 billion to Goldman and received and retired approximately 2.5 million shares of its common stock. On September 19, 2014, Goldman exercised its early termination option under the 2014 ASR Program and the pricing period was closed. No additional shares were received by the Company. | ||||||||||||||||||||
On July 29, 2013, the Company entered into an accelerated share repurchase program (the “2013 ASR Program”) with Goldman to repurchase $500.0 million of the Company’s common stock under the Repurchase Program. Under the 2013 ASR Program, the Company made an up-front payment of $500.0 million to Goldman and received and retired an initial delivery of approximately 1.2 million shares of its common stock. On September 11, 2013, Goldman exercised its early termination option under the 2013 ASR Program and the pricing period was closed. Based on the settlement price, the final number of shares repurchased by the Company and delivered by Goldman under the 2013 ASR Program was 1.3 million shares. The Company received the additional 0.1 million shares from Goldman on September 16, 2013 to settle the difference between the initial share delivery and the total number of shares repurchased. Remaining shares were repurchased in the open market for the year ended December 31, 2013. | ||||||||||||||||||||
The following table provides the stock repurchase activities during the years ended December 31, 2014, 2013, and 2012 (in millions, except per share amounts): | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Shares repurchased | 2.5 | 2.6 | 0.4 | |||||||||||||||||
Average price per share | $ | 397.52 | $ | 429.09 | $ | 503.05 | ||||||||||||||
Value of shares repurchased | $ | 1,000.00 | $ | 1,109.20 | $ | 238.3 | ||||||||||||||
The Company uses the par value method of accounting for its stock repurchases. As a result of the share repurchases during the years ended December 31, 2014, 2013, and 2012, the Company reduced common stock and additional paid-in capital by an aggregate of $89.5 million, $84.2 million, and $13.2 million, respectively, and charged $910.5 million, $1,025.0 million, $225.1 million, respectively, to retained earnings. | ||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss) net of tax, for the years ended December 31, 2014, and 2013 are as follows (in millions): | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on | Currency | ||||||||||||||||||
Instruments | Available-for-Sale Securities | Translation | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | ||||||||||
Other comprehensive income before reclassifications | 8.6 | (3.9 | ) | (2.5 | ) | (4.2 | ) | (2.0 | ) | |||||||||||
Reclassified from accumulated other comprehensive income (loss) | (7.5 | ) | 2 | — | 0.3 | (5.2 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | 1.1 | (1.9 | ) | (2.5 | ) | (3.9 | ) | (7.2 | ) | |||||||||||
Ending balance | $ | 1.1 | $ | (0.2 | ) | $ | (2.1 | ) | $ | (3.9 | ) | $ | (5.1 | ) | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on | Currency | ||||||||||||||||||
Instruments | Available-for-Sale Securities | Translation | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 6.2 | $ | 0.4 | $ | — | $ | 6.6 | ||||||||||
Other comprehensive income before reclassifications | (1.8 | ) | (3.9 | ) | — | — | (5.7 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income (loss) | 1.8 | (0.6 | ) | — | — | 1.2 | ||||||||||||||
Net current-period other comprehensive income (loss) | — | (4.5 | ) | — | — | (4.5 | ) | |||||||||||||
Ending balance | $ | — | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | ||||||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION | ||||||||||||||||||||||||||
Stock Plans | |||||||||||||||||||||||||||
2010 Incentive Award Plan | |||||||||||||||||||||||||||
In April 2010, the Company’s stockholders approved the 2010 Incentive Award Plan (“2010 Plan”). Under this plan, the Company issues nonqualified stock options (“NSOs”) to employees and certain consultants. The 2010 Plan generally permits NSOs to be granted at no less than the fair market value of the common stock on the date of grant, with terms of 10 years from the date of grant. The 2010 Plan expires in 2020. On April 25, 2013, the Company's stockholders approved an amended and restated 2010 Incentive Award Plan (“2010 Plan”) to provide for an increase in the number of shares of common stock reserved for issuance from 3,650,000 to 4,850,000. As of December 31, 2014, approximately 1.0 million shares were reserved for future issuance under the 2010 Plan. | |||||||||||||||||||||||||||
2009 Employment Commencement Incentive Plan | |||||||||||||||||||||||||||
In October 2009, the Board of Directors adopted the 2009 Employment Commencement Incentive Plan (“New Hire Plan”). The New Hire Plan provides for the shares to be used exclusively for the grant of NSOs to new employees (“New Hire Options”), who were not previously employees or non-employee directors of the Company. The Compensation Committee approves all equity awards under the New Hire Plan, which are granted to newly-hired employees once a month on the fifth business day of each month after their hire. Options are granted at an exercise price not less than the fair market value of the stock on the date of grant and have a term not to exceed 10 years. | |||||||||||||||||||||||||||
In May 2013, the Board of Directors amended and restated the New Hire Plan to provide for an increase in the number of shares of common stock authorized for issuance pursuant to awards granted under the New Hire Plan from 855,000 to 1,155,000. As of December 31, 2014, approximately 0.1 million shares were reserved for future issuance under the New Hire Plan. | |||||||||||||||||||||||||||
2000 Equity Incentive Plan | |||||||||||||||||||||||||||
In March 2000, the Board of Directors adopted the 2000 Equity Incentive Plan (“2000 Plan”), which took effect upon the closing of the Company’s initial public offering. Under this plan, certain employees, consultants and non-employee directors could be granted Incentive Stock Options (“ISOs”) and Nonstatutory Stock Options (“NSOs”) to purchase shares of the Company’s common stock. The 2000 Plan permitted ISOs to be granted at an exercise price not less than the fair value on the date of the grant and NSOs at an exercise price not less than 85% of the fair value on the date of grant. Options granted under the 2000 Plan generally expire 10 years from the date of grant and become exercisable upon grant subject to repurchase rights in favor of the Company until vested. The 2000 Plan expired in March 2010. However, options granted prior to the plan’s expiration continue to vest or remain outstanding until their original expiration date. | |||||||||||||||||||||||||||
Employee Option Vesting | |||||||||||||||||||||||||||
Prior to 2012, annual stock options were granted to employees on February 15 of each year or the next business day if the date was not a business day (“Annual Grant”). The grants generally vested 6/48 upon completion of 6 months service and 1/48 per month thereafter. Beginning in 2013, the Company split the annual grant into a grant on February 15 (or the next business day if the date is not a business day) and a separate grant on August 15 (or the next business day if the date is not a business day). The February 15 grants vest 6/48 upon completion of 6 months service and 1/48 per month thereafter. The August 15 stock option grants vest 7/48 at the end of one month and 1/48 per month thereafter through a 3.5 year vesting period. | |||||||||||||||||||||||||||
Prior to 2014, New Hire Options generally vested 6/48 upon completion of 6 months service and 1/48 per month thereafter. Beginning in 2014, New Hire Options generally vest 12/48 upon completion of one year service and 1/48 per month thereafter. Option vesting terms are determined by the Board of Directors and, in the future, may vary from past practices. | |||||||||||||||||||||||||||
2000 Non-Employee Directors’ Stock Option Plan | |||||||||||||||||||||||||||
In March 2000, the Board of Directors adopted the 2000 Non-Employee Directors’ Stock Option Plan (the “Directors’ Plan”). In October 2009, the automatic evergreen increase provisions were eliminated so that no further automatic increases will be made to the number of shares reserved for issuance under the Directors’ Plan. In addition, the common stock authorized for issuance under the Directors’ Plan was reduced to 150,000. Options are granted at an exercise price not less than the fair market value of the stock on the date of grant and have a term not to exceed 10 years. Initial stock option grants are vested over a three-year period with 12/36 of the shares vesting after one year from the date of grant and 1/36 of the shares vesting monthly thereafter. Annual stock option grants are vested one year from the date of the grant. Beginning in 2014, equity awards granted to non-employee directors include a mix of stock options and RSUs. Initial RSU grants are vested in one-third increments over a three-year period while annual RSU grants are vested one year from the date of grant. As of December 31, 2014, approximately 58,000 shares were reserved for future issuance under the Directors’ Plan. | |||||||||||||||||||||||||||
2000 Employee Stock Purchase Plan | |||||||||||||||||||||||||||
In March 2000, the Board of Directors adopted the 2000 Employee Stock Purchase Plan (ESPP). Employees are generally eligible to participate in the ESPP if they are customarily employed by the Company for more than 20 hours per week and more than 5 months in a calendar year and are not 5% stockholders of the Company. Under the ESPP, eligible employees may select a rate of payroll deduction up to 15% of their eligible compensation subject to certain maximum purchase limitations. The duration for each offering period is 24 months long and is divided into four shorter purchase periods approximately six months in length. Offerings are concurrent. The purchase price of the shares under the offering is the lesser of 85% of the fair market value of the shares on the offering date or 85% of the fair market value of the shares on the purchase date. A two-year look-back feature in the ESPP causes the offering period to reset if the fair value of the Company’s common stock on the first or last day of the purchase period is less than that on the original offering date. ESPP purchases by employees are settled with newly-issued common stock from the ESPP’s previously authorized and available pool of shares. | |||||||||||||||||||||||||||
The Company issued 0.1 million, 0.1 million and 0.1 million shares under the ESPP, representing approximately $29.4 million, $28.8 million, and $27.8 million in employee contributions for the years ended December 31, 2014, 2013, and 2012, respectively. As of December 31, 2014, there were approximately 0.3 million shares reserved for grant under the ESPP. | |||||||||||||||||||||||||||
Restricted Stock Units | |||||||||||||||||||||||||||
Beginning in 2014, equity awards granted to employees include a mix of stock options and RSUs. The RSUs vest in 1/4 increments annually 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. | |||||||||||||||||||||||||||
Stock Option Information | |||||||||||||||||||||||||||
Option activity during fiscal 2014 under all the stock plans was 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 | 0.7 | $ | 446.91 | ||||||||||||||||||||||||
Options exercised | (0.9 | ) | $ | 296.77 | |||||||||||||||||||||||
Options forfeited/expired | (0.4 | ) | $ | 478.19 | |||||||||||||||||||||||
Balance at December 31, 2014 | 5 | $ | 395.85 | ||||||||||||||||||||||||
The aggregate intrinsic value of options exercised under our stock plans determined as of the date of option exercise was $146.2 million, $130.2 million, and $375.7 million during the years ended December 31, 2014, 2013, and 2012, respectively. Cash received from option exercises and employee stock purchase plans for the years ended December 31, 2014, 2013, and 2012 was $283.6 million, $160.6 million, and $263.3 million, respectively. | |||||||||||||||||||||||||||
The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2014 (number of shares in millions): | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | |||||||||||||||||||
Exercise Prices | of Shares | Average | Average | Intrinsic | of Shares | Average | Average | Intrinsic | |||||||||||||||||||
Remaining | Exercise Price | Value (1) | Remaining | Exercise Price | Value (1) | ||||||||||||||||||||||
Contractual Life | Per Share | Contractual Life | Per Share | ||||||||||||||||||||||||
$47.86 - $333.42 | 1 | 3.38 | $ | 200.98 | 1 | $ | 200.82 | ||||||||||||||||||||
$334.30 - $358.40 | 1 | 5.62 | $ | 339.17 | 0.9 | $ | 338.96 | ||||||||||||||||||||
$358.57 - $451.50 | 1 | 8.51 | $ | 403.95 | 0.4 | $ | 397.19 | ||||||||||||||||||||
$459.14 - $517.31 | 1.4 | 7.78 | $ | 498.68 | 0.8 | $ | 505.75 | ||||||||||||||||||||
$518.29 - $579.24 | 0.6 | 7.83 | $ | 564.92 | 0.3 | $ | 564.7 | ||||||||||||||||||||
TOTAL | 5 | 6.62 | $ | 395.85 | $ | 683.1 | 3.4 | 5.77 | $ | 363.03 | $ | 573.1 | |||||||||||||||
-1 | The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $528.94 at December 31, 2014, which would have been received by the option holders had all in-the-money option holders exercised their options as of that date. | ||||||||||||||||||||||||||
As of December 31, 2014, a total of 4.8 million shares vested and expected to vest had a weighted average remaining contractual life of 6.5 years, an aggregate intrinsic value of $672.2 million, and a weighted average exercise price of $393.76. | |||||||||||||||||||||||||||
Restricted Stock Units Information | |||||||||||||||||||||||||||
RSU activity for the year ended December 31, 2014, was as follows (in millions, except per share amounts): | |||||||||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||||||||
Grant Date Fair Value | |||||||||||||||||||||||||||
Unvested balance at December 31, 2013 | — | $ | — | ||||||||||||||||||||||||
Granted | 0.2 | $ | 441.36 | ||||||||||||||||||||||||
Vested | — | $ | — | ||||||||||||||||||||||||
Canceled | 0 | $ | 443.99 | ||||||||||||||||||||||||
Unvested balance at December 31, 2014 | 0.2 | $ | 441.07 | ||||||||||||||||||||||||
Share-Based Compensation Expense | |||||||||||||||||||||||||||
The following table summarizes share-based compensation expense (in millions): | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Cost of sales—products | $ | 19.1 | $ | 17.6 | $ | 14.1 | |||||||||||||||||||||
Cost of sales—services | 13.5 | 12.7 | 12.9 | ||||||||||||||||||||||||
Total cost of sales | 32.6 | 30.3 | 27 | ||||||||||||||||||||||||
Selling, general and administrative | 99 | 101.4 | 93.1 | ||||||||||||||||||||||||
Research and development | 37.5 | 37.2 | 33.2 | ||||||||||||||||||||||||
Share-based compensation expense before income taxes | 169.1 | 168.9 | 153.3 | ||||||||||||||||||||||||
Income tax effect | 53.5 | 58.5 | 47.5 | ||||||||||||||||||||||||
Share-based compensation expense after income taxes | $ | 115.6 | $ | 110.4 | $ | 105.8 | |||||||||||||||||||||
The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s share-based compensation plans and rights to acquire stock granted under the Company’s employee stock purchase plan. The weighted average estimated fair values of stock options, the rights to acquire stock granted, and the weighted average assumptions used in calculating those fair values during the years ended December 31, 2014, 2013, and 2012, were as follows: | |||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
STOCK OPTION PLANS | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Average risk free interest rate | 1.5 | % | 1.2 | % | 0.8 | % | |||||||||||||||||||||
Average expected term (years) | 4.3 | 4.5 | 4.3 | ||||||||||||||||||||||||
Average volatility | 31 | % | 30 | % | 33 | % | |||||||||||||||||||||
Weighted average fair value at grant date | $ | 122.39 | $ | 126.5 | $ | 146.26 | |||||||||||||||||||||
EMPLOYEE STOCK PURCHASE PLAN | |||||||||||||||||||||||||||
Average risk free interest rate | 0.2 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||
Average expected term (years) | 1.2 | 1.3 | 1.3 | ||||||||||||||||||||||||
Average volatility | 33 | % | 34 | % | 32 | % | |||||||||||||||||||||
Weighted average fair value at grant date | $ | 124.6 | $ | 153.33 | $ | 138.61 | |||||||||||||||||||||
As share-based compensation expense recognized in the Consolidated Statements of Income during the years ended December 31, 2014, 2013, and 2012 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Share-based compensation accounting requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimated. | |||||||||||||||||||||||||||
As of December 31, 2014, there were a total of $177.1 million, $65.9 million, and $7.3 million, of total unrecognized compensation expense related to non-vested stock options, non-vested restricted stock units, and employee stock purchases, respectively. The unrecognized compensation expense is expected to be recognized over a weighted average period of 2.3 years for non-vested stock options, 3.2 years for non-vested restricted stock units, and 0.7 years for rights granted to acquire stock under the ESPP. | |||||||||||||||||||||||||||
Excess tax benefits are realized tax deductions for exercised options in excess of the deferred tax assets attributable to share-based compensation expense for such options. Excess tax benefits of $24.0 million, $38.0 million, and $94.2 million for the years ended December 31, 2014, 2013, and 2012, respectively, have been classified as a financing cash inflow. The total income tax benefit recognized in the consolidated statements of income for share-based compensation expense was $53.5 million, $58.5 million, and $47.5 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
Income before provision for income taxes for the years ended December 31, 2014, 2013, and 2012 consisted of the following (in millions): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S | $ | 353 | $ | 612.5 | $ | 718.5 | ||||||
Foreign | 196 | 258.4 | 175.4 | |||||||||
Total income before provision for income taxes | $ | 549 | $ | 870.9 | $ | 893.9 | ||||||
The provision for income taxes for the years ended December 31, 2014, 2013, and 2012 consisted of the following (in millions): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | ||||||||||||
Federal | $ | 150.5 | $ | 216.8 | $ | 239.9 | ||||||
State | 7 | 17.4 | 17 | |||||||||
Foreign | 7.5 | 4.3 | 3.4 | |||||||||
$ | 165 | $ | 238.5 | $ | 260.3 | |||||||
Deferred | ||||||||||||
Federal | $ | (30.9 | ) | $ | (36.2 | ) | $ | (20.6 | ) | |||
State | (0.6 | ) | (1.9 | ) | (1.2 | ) | ||||||
Foreign | (3.3 | ) | (0.5 | ) | (1.2 | ) | ||||||
$ | (34.8 | ) | $ | (38.6 | ) | $ | (23.0 | ) | ||||
Total income tax expense | $ | 130.2 | $ | 199.9 | $ | 237.3 | ||||||
Income tax expense differs from amounts computed by applying the statutory rate of 35% for the years ended December 31, 2014, 2013, and 2012 as a result of the following (in millions): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax at statutory rate | $ | 192.2 | $ | 304.8 | $ | 312.9 | ||||||
Increase (reduction) in tax resulting from: | ||||||||||||
State taxes, net of federal benefits | 6.4 | 15.5 | 15.8 | |||||||||
Foreign rate differential | (47.4 | ) | (73.6 | ) | (42.8 | ) | ||||||
Research and development credit | (5.0 | ) | (12.2 | ) | — | |||||||
Share-based compensation not benefited | 7.7 | 1.9 | 5.9 | |||||||||
Domestic production activities deduction | (4.6 | ) | (9.2 | ) | (8.2 | ) | ||||||
Reversal of unrecognized tax benefits | (20.3 | ) | (26.7 | ) | (46.5 | ) | ||||||
Other | 1.2 | (0.6 | ) | 0.2 | ||||||||
$ | 130.2 | $ | 199.9 | $ | 237.3 | |||||||
Deferred income taxes reflect tax carry forwards and the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Share-based compensation expense | $ | 140.5 | $ | 123.4 | ||||||||
Expenses deducted in later years for tax purposes | 52.4 | 30.3 | ||||||||||
Research and other credits | 7.7 | 5.8 | ||||||||||
Other | 3.5 | 1.2 | ||||||||||
Gross deferred tax assets | $ | 204.1 | $ | 160.7 | ||||||||
Valuation allowance | (9.5 | ) | (7.2 | ) | ||||||||
Deferred tax assets | $ | 194.6 | $ | 153.5 | ||||||||
Deferred tax liabilities: | ||||||||||||
Fixed assets | $ | (22.6 | ) | $ | (16.1 | ) | ||||||
Identified intangible assets related to acquisitions | (1.7 | ) | (1.9 | ) | ||||||||
Other | (0.4 | ) | (2.1 | ) | ||||||||
Deferred tax liabilities | $ | (24.7 | ) | $ | (20.1 | ) | ||||||
Net deferred tax assets | $ | 169.9 | $ | 133.4 | ||||||||
The Company has not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of its foreign subsidiaries as of December 31, 2014 because the Company intends to indefinitely reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2014, the cumulative amount of earnings upon which U.S. income taxes have not been provided was approximately $855.8 million. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable at this time. The Company has a tax holiday in effect for its business operations in Switzerland which will continue until the end of year 2017 to the extent certain terms and conditions continue to be met. This tax holiday provides for a lower rate of taxation in Switzerland based on various thresholds of investment and employment in such jurisdiction. As of December 31, 2014, the Company remained in compliance with the terms of the holiday. At the end of the tax holiday, Swiss taxable income may be taxed at a higher rate depending on the applicable federal and cantonal rules. | ||||||||||||
As of December 31, 2014 and 2013, the Company had valuation allowances of $9.5 million and $7.2 million, respectively, primarily related to California deferred tax assets generated by California R&D credit forwards which have no expiration period. The Company recorded a valuation allowance against its California deferred tax assets as it is more likely than not these deferred tax assets will not be realized as a result of the computation of California taxes under the single sales factor. The Company will continue to monitor and reassess the need for further increases or decreases to the valuation allowance. | ||||||||||||
The Company recorded a net increase of its gross unrecognized tax benefits of approximately $1.5 million during the year ended December 31, 2014. The net increase was primarily related to increases related to 2014 uncertain tax positions, partially offset by the reversal of gross unrecognized tax benefits of $20.8 million in connection with the conclusion of the Company's IRS audit for years 2010 and 2011, and the expiration of certain statutes of limitations in multiple jurisdictions in the second half of 2014. The Company had gross unrecognized tax benefits of approximately $75.5 million, $74.0 million, and $88.0 million as of December 31, 2014, 2013, and 2012, respectively, of which $75.5 million, $74.0 million, and $83.8 million, if recognized, would result in a reduction of the Company’s effective tax rate during the years ended December 31, 2014, 2013, and 2012, respectively. The Company included interest expense and penalties accrued on unrecognized tax benefits as a component of its income tax expense. As of December 31, 2014, 2013, and 2012, gross interest and penalties related to unrecognized tax benefits accrued was approximately $2.5 million, $3.4 million, and $3.2 million, respectively. A net decrease of $0.9 million was included in the Company's 2014 income tax expense as a result of the decreases associated with the above-mentioned changes in unrecognized tax benefits partially offset by current year increases. The Company classified a majority of its net unrecognized tax benefits and related interest in “Other accrued liabilities” on the Consolidated Balance Sheets. | ||||||||||||
The U.S. Internal Revenue Service (“IRS”) completed its audit of the Company’s 2010 and 2011 federal income tax returns in December 2014. At the conclusion of the audit, the IRS provided its Revenue Agent’s Report to the Joint Committee of Taxation, which agreed with the IRS examiner’s Report with no exceptions. As a result, the Company released reserves in connection with years 2010 and 2011 in the fourth quarter of 2014, which were included in the $20.3 million reversal of unrecognized tax benefits and interests described above. In addition, the Company anticipates receiving a refund of $4.5 million in 2015 in connection with the conclusion of the audit. | ||||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for the years ended December 31, 2014, 2013, and 2012 are as follows (in millions): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 74 | $ | 88 | $ | 98.1 | ||||||
Increases related to tax positions taken during the current year | 22.3 | 22.8 | 17.5 | |||||||||
Increases related to tax positions taken during a prior year | — | 12.9 | ||||||||||
Decreases related to tax positions taken during a prior year | — | (1.5 | ) | (8.3 | ) | |||||||
Decreases related to settlements with tax authorities | (19.1 | ) | (6.0 | ) | — | |||||||
Decreases related to expiration of statute of limitations | (1.7 | ) | (29.3 | ) | (32.2 | ) | ||||||
Ending balance | $ | 75.5 | $ | 74 | $ | 88 | ||||||
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 years before 2008 were 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 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 Company’s 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 | 12 Months Ended | |||||||||||
Dec. 31, 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 (in millions, except per share amounts): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 418.8 | $ | 671 | $ | 656.6 | ||||||
Basic: | ||||||||||||
Weighted-average shares outstanding | 36.9 | 39.2 | 39.8 | |||||||||
Basic net income per share | $ | 11.35 | $ | 17.12 | $ | 16.5 | ||||||
Diluted: | ||||||||||||
Weighted-average shares outstanding used in basic calculation | 36.9 | 39.2 | 39.8 | |||||||||
Add: Dilutive potential shares | 0.8 | 0.9 | 1.3 | |||||||||
Weighted-average shares used in computing diluted net income per share | 37.7 | 40.1 | 41.1 | |||||||||
Diluted net income per share | $ | 11.11 | $ | 16.73 | $ | 15.98 | ||||||
Share-based compensation awards of approximately 2.4 million, 2.3 million, and 0.9 million shares for the years ended December 31, 2014, 2013, and 2012, 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 antidilutive in the periods presented. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS |
The Company sponsors various retirement plans for its eligible U.S. and non-U.S. employees. For employees in the U.S., the Company maintains the Intuitive Surgical, Inc. 401(k) Plan (the “Plan”). As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides tax-deferred salary contributions for eligible U.S. employees. The Plan allows employees to contribute up to 75% of their annual compensation to the Plan on a pre-tax and after-tax basis. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. Employer matching contributions are made solely at the Company’s discretion. No employer matching contributions were made to the Plan during the years ended December 31, 2014, 2013, and 2012. |
Selected_Quarterly_Data
Selected Quarterly Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Selected Quarterly Data | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | June 30, | 30-Sep-14 | 31-Dec-14 | |||||||||||||
2014 | 2014 | |||||||||||||||
Revenue | $ | 464.7 | $ | 512.2 | $ | 550.1 | $ | 604.7 | ||||||||
Gross profit | $ | 315.4 | $ | 344.4 | $ | 360.6 | $ | 393.4 | ||||||||
Net income (1)(2) | $ | 44.3 | $ | 104 | $ | 123.7 | $ | 146.8 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.16 | $ | 2.82 | $ | 3.43 | $ | 4.03 | ||||||||
Diluted | $ | 1.13 | $ | 2.77 | $ | 3.35 | $ | 3.94 | ||||||||
(1) Includes one-time discrete tax benefits as follows: | ||||||||||||||||
Audit settlement and expiration of the statutes of limitations in multiple jurisdictions | $ | 0.2 | $ | — | $ | 0.2 | $ | 19.9 | ||||||||
Reinstatement of the 2014 federal R&D tax credit | $ | — | $ | — | $ | — | $ | 5 | ||||||||
(2) Includes pre-tax charges relating to tolled product liability claims | $ | 67.4 | $ | 9.6 | $ | — | $ | 5.4 | ||||||||
Three Months Ended | ||||||||||||||||
March 31, | June 30, | 30-Sep-13 | 31-Dec-13 | |||||||||||||
2013 | 2013 | |||||||||||||||
Revenue | $ | 611.4 | $ | 578.5 | $ | 499 | $ | 576.2 | ||||||||
Gross profit | $ | 434.3 | $ | 405.2 | $ | 356.7 | $ | 398 | ||||||||
Net income (1) | $ | 188.9 | $ | 159.1 | $ | 156.8 | $ | 166.2 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 4.69 | $ | 3.99 | $ | 4.06 | $ | 4.36 | ||||||||
Diluted | $ | 4.56 | $ | 3.9 | $ | 3.99 | $ | 4.28 | ||||||||
(1) Includes one-time discrete tax benefits as follows: | ||||||||||||||||
Expiration of the statutes of limitations in multiple jurisdictions | $ | — | $ | — | $ | 26.2 | $ | 0.5 | ||||||||
Reinstatement of the 2012 federal R&D tax credit | $ | 7.5 | $ | — | $ | — | $ | 0.7 | ||||||||
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation And Qualifying Accounts | ||||||||||||||||
Balance at | Additions | Deductions (1) | Balance at | |||||||||||||
Beginning of | End of Year | |||||||||||||||
Year | ||||||||||||||||
Allowance for doubtful accounts and sales returns | ||||||||||||||||
Year ended December 31, 2014 | $ | 5.8 | $ | 22.2 | $ | (22.5 | ) | $ | 5.5 | |||||||
Year ended December 31, 2013 | $ | 8 | $ | 14.1 | $ | (16.3 | ) | $ | 5.8 | |||||||
Year ended December 31, 2012 | $ | 5.6 | $ | 15 | $ | (12.6 | ) | $ | 8 | |||||||
-1 | Primarily represents products returned. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The accompanying Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying Notes to the Consolidated Financial Statements. The accounting estimates that require management’s most significant, difficult and subjective judgments include the valuation and recognition of investments, the valuation of the revenue and allowance for sales returns and doubtful accounts, the estimation of hedging transactions, the valuation of inventory, the assessment of recoverability of intangible assets and their estimated useful lives, revenue recognition, the valuation and recognition of share-based compensation, the recognition and measurement of current and deferred income tax assets and liabilities, and the legal contingencies estimate. Actual results could differ materially from these estimates. | ||
Concentrations of Credit Risk and Other Risks and Uncertainties | Concentrations of Credit Risk and Other Risks and Uncertainties | |
The carrying amounts for financial instruments consisting of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short maturities. Marketable securities and derivative instruments are stated at their estimated fair values, based on quoted market prices for the same or similar instruments. The counterparties to the agreements relating to the Company’s investment securities and derivative instruments consist of various major corporations, financial institutions, municipalities and government agencies of high credit standing. | ||
The Company’s accounts receivable are derived from net revenue to customers and distributors located throughout the world. The Company performs credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company provides reserves for potential credit losses but has not experienced significant losses to date. As of December 31, 2014, and 2013, 64% and 66%, respectively, of accounts receivable were from domestic customers. No single customer represented more than 10% of net accounts receivable as of December 31, 2014, and 2013. | ||
During the years ended December 31, 2014, 2013, and 2012, domestic revenue accounted for 70%, 72%, and 79%, respectively, of total revenue, while international revenue accounted for 30%, 28%, and 21%, respectively, of total revenue for each of the years then ended. No single customer represented more than 10% of total revenue for the years ended December 31, 2014, 2013, and 2012. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company considers all highly liquid investments with an original maturity from date of purchase of 90 days or less to be cash equivalents. | ||
Investments | Investments | |
Available-for-sale investments. The Company’s investments consist of U.S. treasury and U.S. government agency securities, taxable and tax exempt municipal notes, corporate notes and bonds, commercial paper, cash deposits, and money market funds. The Company has designated all investments as available-for-sale and therefore, such investments are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. For securities sold prior to maturity, the cost of securities sold is based on the specific identification method. Realized gains and losses on the sale of investments are recorded in interest and other income, net. Investments with original maturities greater than approximately three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. | ||
Other-than-temporary impairment. All of the Company’s investments are subject to a periodic impairment review. The Company recognizes an impairment charge when a decline in the fair value of its investments below the cost basis is judged to be other-than-temporary. Factors considered in determining whether a loss is temporary included the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security prior the expected recovery of the investment's amortized cost basis. During the year ended December 31, 2014, the Company recorded pre-tax other-than-temporary losses of $8.5 million related to equity investments, while there were no such charges during the years ended December 31, 2013, and 2012 | ||
Fair Value Measurements | Fair Value Measurements | |
The Company measures the fair value of money market funds, corporate equity securities and certain debt securities based on quoted prices in active markets for identical assets as Level 1 securities. Marketable securities, measured at fair value using Level 2 inputs, are primarily comprised of U.S. government agencies and FDIC guaranteed securities and corporate debt securities. The Company reviews trading activity and pricing for these investments as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data. This approach results in the Level 2 classification of these securities within the fair value hierarchy. | ||
Where Level 1 and Level 2 inputs are not available, the Company used a discounted cash flow model based on data available, including interest rates, timing and amount of cash flows, credit and liquidity premiums, and expected holding period for Level 3 securities. The only Level 3 securities consist of municipal bonds with auction rate securities ("ARS") whose underlying assets are student loans which are substantially backed by the federal government. Because the auctions for these securities have continued to fail since February 2008, these investments were not actively traded and therefore did not have a readily determinable market value. During the year ended December 31, 2014, the ARS were redeemed at par value. | ||
Inventories | Inventories | |
Inventory is stated at the lower of cost or market on a first-in, first-out basis. Inventory costs include direct materials, direct labor, and normal manufacturing overhead. The cost basis of the Company’s inventory is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. | ||
Property, Plant and Equipment | Property, Plant and Equipment | |
Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets generally as follows: | ||
Useful Lives | ||
Building | Up to 30 years | |
Building improvements | Up to 15 years | |
Leasehold improvements | Lesser of useful life or term of lease | |
Equipment and furniture | 5 years | |
Computer equipment | 3 years | |
Enterprise-wide software | 5 years | |
Purchased software | Lesser of 3 years or life of license | |
Capitalized Software Costs for Internal Use | Capitalized Software Costs for Internal Use | |
Internally developed software primarily includes enterprise-level business software that the Company customizes to meet its specific operational needs. The Company capitalized costs for enhancement of the enterprise resource planning software system and other internal use software of $12.0 million and $6.6 million during the years ended December 31, 2014 and 2013, respectively. Upon being placed in service, these costs are depreciated over an estimated useful life of up to 5 years. | ||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |
Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually during the fourth fiscal quarter, or as circumstances indicate their value may no longer be recoverable. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets. The Company continues to operate in one segment, which is considered to be the sole reporting unit and therefore, goodwill was tested for impairment at the enterprise level. As of December 31, 2014, there has been no impairment of goodwill. | ||
The Company does not have intangible assets with indefinite useful lives other than goodwill. The Company’s intangible assets are comprised of purchased intellectual property. These intangible assets are carried at cost, net of accumulated amortization. Amortization is recorded on a straight-line basis over the intangible assets' useful lives, which range from approximately 1 to 9 years. | ||
Impairment of Long-lived assets | Impairment of Long-lived assets | |
The Company evaluates long-lived assets, which include amortizable intangible and tangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable. The Company recognizes such impairment in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to such assets. No material impairment losses were incurred in the periods presented. | ||
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 collectability is reasonably assured. Revenue is presented net of taxes collected from customers that are remitted to government authorities. 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 SiTM and XiTM Surgical System or adding new vision systems to the standard da Vinci and da Vinci STM 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 establishing and updating 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 the Company's revenue recognition policy. Lease elements generally include a da Vinci Surgical System, while non-lease elements generally include service, instruments and accessories. In determining whether a transaction should be classified as a sales-type or operating lease, the Company 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, (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, (3) whether the life of the lease exceeds 75% of the life of the asset, and (4) whether there is an option to purchase the asset at a "bargain price" at the end of the lease term. | ||
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. | ||
Share-Based Compensation | Share-Based Compensation | |
The Company accounts for share-based employee compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. | ||
Expected Term: The expected term represents the weighted-average period that the stock options are expected to be outstanding prior to being exercised. The Company determines expected term based on historical exercise patterns and its expectation of the time it will take for employees to exercise options still outstanding. | ||
Expected Volatility: The Company uses market-based implied volatility for purposes of valuing options granted. Market-based implied volatility is derived based on at least one-year traded options on the Company’s common stock. The extent to which the Company relies on market-based volatility when valuing options, depend among other things, on the availability of traded options on the Company’s stock and the term of such options. Due to sufficient volume of the traded options, the Company used 100% market-based implied volatility to value options granted, which the Company believes is more representative of future stock price trends than historical volatility. | ||
Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the option. | ||
The fair value of restricted stock units is determined based on the closing quoted price of the Company's common stock on the day of the grant. See “Note 9. Share-Based Compensation,” for a detailed discussion of the Company's share-based employee compensation plans and share-based compensation expense. | ||
Computation of Net Income per Share | Computation of Net Income per Share | |
Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of shares and dilutive potential shares outstanding during the period. Dilutive potential shares primarily consist of employee stock options and restricted stock units. | ||
U.S. GAAP requires that employee equity share options, non-vested shares and similar equity instruments granted by the Company be treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, which is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional-paid-in-capital (“APIC”) when the award becomes deductible are all assumed to be used to repurchase shares. | ||
Research and Development Expenses | Research and Development Expenses | |
Research and development expenses include amortization of purchased intellectual property, costs associated with co-development R&D licensing arrangements, costs of prototypes, salaries, benefits and other headcount related costs, contract and other outside service fees, and facilities and overhead costs. | ||
Foreign Currency and Other Hedging Instruments | Foreign Currency and Other Hedging Instruments | |
For subsidiaries whose local currency is their functional currency, their assets and liabilities are translated into U.S. dollars at exchange rates at the balance sheet date and revenues and expenses are translated using average exchange rates in effect during the period. Gains and losses from foreign currency translation are included in accumulated other comprehensive income (loss) within stockholders’ equity in the Consolidated Balance Sheets. For all non-functional currency account balances, the re-measurement of such balances to the functional currency will result in either a foreign exchange gain or loss, which is recorded to interest and other income, net in the same accounting period that the re-measurement occurred. | ||
The Company uses derivatives to partially offset its business exposure to foreign currency exchange risk. The Company enters into foreign currency forward contracts with one to seven-month terms. The Company typically hedges portions of its forecasted foreign currency exposure associated with revenue. The Company may also enter into foreign currency forward contracts to offset the foreign currency exchange gains and losses generated by re-measurement of certain assets and liabilities denominated in non-functional currencies. The hedging program is not designated for trading or speculative purposes. | ||
The Company’s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments. The Company records all derivatives on the Consolidated Balance Sheets at fair value. The effective portions of cash flow hedges are recorded in other comprehensive income (loss) (“OCI”) until the hedged item is recognized in earnings. Derivative instruments designated as cash flow hedges are de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two month time period. Deferred gains and losses in OCI associated with such derivative instruments are reclassified immediately into earnings through interest and other income, net. Any subsequent changes in fair value of such derivative instruments also are reflected in current earnings. | ||
Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings in interest and other income, net. | ||
Income Taxes | Income Taxes | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are expected more likely than not to be realized in the future. | ||
The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ||
Segments | Segments | |
The Company operates in one segment. Management uses one measurement of profitability and does not segregate its business for internal reporting. As of December 31, 2014 and 2013, 93% and 94% of all long-lived assets were in the United States. For the years ended December 31, 2014, 2013, and 2012, 70%, 72%, and 79%, respectively, of net revenue were generated in the United States. | ||
Legal Contingencies | Legal Contingencies | |
The Company is involved in a number of legal proceedings involving product liability, intellectual property, shareholder derivative actions, securities class actions, and other matters. A liability and related charge are recorded to earnings in the Company's consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is reevaluated each accounting period and is based on all available information, including discussion with outside legal counsel. If a reasonable estimate of a known or probable loss cannot be made, but a range of probable losses can be estimated, the low-end of the range of losses is recognized if no amount within the range is a better estimate than any other. If a loss is reasonably possible, but not probable and can be reasonably estimated, the estimated loss or range of loss is disclosed in the notes to the consolidated financial statements. The Company expenses legal fees as incurred. | ||
When determining the estimated probable loss or range of losses, significant judgment is required to be exercised in order to estimate the amount and timing of the loss to be recorded. Estimates of probable losses resulting from litigation are inherently difficult to make, particularly when the matters are in early procedural stages with incomplete facts and information. The final outcome of legal proceedings is dependent on many variables difficult to predict, and therefore, the ultimate cost to entirely resolve such matters may be materially different than the amount of current estimates. Consequently, new information or changes in judgments and estimates could have a material adverse effect on the Company's business, financial condition, and results of operations or cash flows. | ||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("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 the Consolidated Financial Statements and related disclosures. |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Estimated Useful Lives Of The Assets | Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets generally as follows: | |||||||
Useful Lives | ||||||||
Building | Up to 30 years | |||||||
Building improvements | Up to 15 years | |||||||
Leasehold improvements | Lesser of useful life or term of lease | |||||||
Equipment and furniture | 5 years | |||||||
Computer equipment | 3 years | |||||||
Enterprise-wide software | 5 years | |||||||
Purchased software | Lesser of 3 years or life of license | |||||||
The following table provides details of the property, plant and equipment, net (in millions): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Property, plant and equipment, net: | ||||||||
Land | $ | 131.7 | $ | 84.7 | ||||
Building and building/leasehold improvements | 159 | 151.9 | ||||||
Machinery and equipment | 181.6 | 137.2 | ||||||
Computer and office equipment | 31.3 | 27.1 | ||||||
Capitalized software | 77.9 | 66.9 | ||||||
Construction-in-process | 28.8 | 16.4 | ||||||
Gross property, plant and equipment | 610.3 | 484.2 | ||||||
Less: Accumulated depreciation | (222.9 | ) | (174.3 | ) | ||||
Total property, plant and equipment, net | $ | 387.4 | $ | 309.9 | ||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||
Summary of Cash and Available-For-Sale Securities | The following tables summarize the Company’s cash and available-for-sale securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category recorded as cash and cash equivalents or short-term or long-term investments as of December 31, 2014, and 2013 (in millions): | |||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-term | Long-term | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | ||||||||||||||||||||||
Gains | Losses | Equivalents | ||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||
Cash | $ | 227.7 | $ | — | $ | — | $ | 227.7 | $ | 227.7 | $ | — | $ | — | ||||||||||||||
Level 1: | ||||||||||||||||||||||||||||
Money market funds | 324.4 | — | — | 324.4 | 324.4 | — | — | |||||||||||||||||||||
U.S. treasuries & corporate equity securities | 46.1 | — | (0.1 | ) | 46 | — | 19.3 | 26.7 | ||||||||||||||||||||
Subtotal | 370.5 | — | (0.1 | ) | 370.4 | 324.4 | 19.3 | 26.7 | ||||||||||||||||||||
Level 2: | ||||||||||||||||||||||||||||
Commercial paper | 120.5 | — | — | 120.5 | 48.2 | 72.3 | — | |||||||||||||||||||||
Corporate securities | 904.8 | 1.3 | (1.6 | ) | 904.5 | — | 241.7 | 662.8 | ||||||||||||||||||||
U.S. government agencies | 446 | 0.3 | (0.4 | ) | 445.9 | — | 105.6 | 340.3 | ||||||||||||||||||||
Non-U.S. government securities | 42.2 | — | (0.1 | ) | 42.1 | — | 26.1 | 16 | ||||||||||||||||||||
Municipal securities | 385.4 | 0.7 | (0.2 | ) | 385.9 | — | 167.2 | 218.7 | ||||||||||||||||||||
Subtotal | 1,898.90 | 2.3 | (2.3 | ) | 1,898.90 | 48.2 | 612.9 | 1,237.80 | ||||||||||||||||||||
Total assets measured at fair value | $ | 2,497.10 | $ | 2.3 | $ | (2.4 | ) | $ | 2,497.00 | $ | 600.3 | $ | 632.2 | $ | 1,264.50 | |||||||||||||
Amortized | Gross | Gross | Fair | Cash and | Short-term | Long-term | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Investments | Investments | ||||||||||||||||||||||
Gains | Losses | Equivalents | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
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 investments (excluding cash and money market funds), at December 31, 2014 (in millions): | |||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||||||
Mature in less than one year | $ | 676.7 | $ | 677.4 | ||||||||||||||||||||||||
Mature in one to five years | 1,265.40 | 1,264.50 | ||||||||||||||||||||||||||
Mature in after five years | — | — | ||||||||||||||||||||||||||
Total | $ | 1,942.10 | $ | 1,941.90 | ||||||||||||||||||||||||
Realized gains and losses, net of tax, were not material for any of the periods presented. | ||||||||||||||||||||||||||||
As of December 31, 2014, and 2013, net unrealized loss on investments of $0.2 million, net of tax, and net unrealized gains on investments of $1.7 million, net of tax, were included in accumulated other comprehensive income (loss) in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
Schedule Of Available-For-Sale Investments With Unrealized Losses | The following tables present the breakdown of the available-for-sale investments with unrealized losses at December 31, 2014, and 2013 (in millions): | |||||||||||||||||||||||||||
Unrealized losses less | Unrealized losses 12 | Total | ||||||||||||||||||||||||||
than 12 months | months or greater | |||||||||||||||||||||||||||
December 31, 2014 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||
Corporate securities | $ | 456.7 | $ | (1.3 | ) | $ | 16.9 | $ | (0.2 | ) | $ | 473.6 | $ | (1.5 | ) | |||||||||||||
U.S. government and agency securities | 239.1 | (0.4 | ) | 31.8 | (0.2 | ) | 270.9 | (0.6 | ) | |||||||||||||||||||
Municipal securities | 91.3 | (0.2 | ) | — | — | 91.3 | (0.2 | ) | ||||||||||||||||||||
Non-U.S. government securities | 20.9 | (0.1 | ) | 20.9 | (0.1 | ) | ||||||||||||||||||||||
$ | 808 | $ | (2.0 | ) | $ | 48.7 | $ | (0.4 | ) | $ | 856.7 | $ | (2.4 | ) | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Corporate securities | $ | 245.3 | $ | (1.9 | ) | $ | 9.5 | $ | — | $ | 254.8 | $ | (1.9 | ) | ||||||||||||||
U.S. government and agency securities | 142.8 | (1.0 | ) | — | — | 142.8 | (1.0 | ) | ||||||||||||||||||||
Municipal securities | 37.6 | (0.1 | ) | — | — | 37.6 | (0.1 | ) | ||||||||||||||||||||
Non-U.S. government securities | 18.7 | (0.1 | ) | — | — | 18.7 | (0.1 | ) | ||||||||||||||||||||
Auction rate securities | — | — | 7.4 | (0.6 | ) | 7.4 | (0.6 | ) | ||||||||||||||||||||
$ | 444.4 | $ | (3.1 | ) | $ | 16.9 | $ | (0.6 | ) | $ | 461.3 | $ | (3.7 | ) | ||||||||||||||
Schedule Of Reconciliation For All Assets Measured At Fair Value Using Significant Unobservable Inputs (Level 3) | The following table provides reconciliation for all assets measured at fair value using significant unobservable Level 3 inputs for the years ended December 31, 2014, 2013, and 2012 (in millions): | |||||||||||||||||||||||||||
Fair Value Measurements at | ||||||||||||||||||||||||||||
Reporting Date Using | ||||||||||||||||||||||||||||
Significant Unobservable | ||||||||||||||||||||||||||||
Inputs (Level 3) | ||||||||||||||||||||||||||||
Auction rate securities | ||||||||||||||||||||||||||||
Balance at January 1, 2012 | $ | 16.4 | ||||||||||||||||||||||||||
Sales | (12.0 | ) | ||||||||||||||||||||||||||
Total gains: | ||||||||||||||||||||||||||||
Included in other comprehensive income | 3 | |||||||||||||||||||||||||||
Included in earnings | — | |||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 7.4 | ||||||||||||||||||||||||||
Sales | — | |||||||||||||||||||||||||||
Total gains: | ||||||||||||||||||||||||||||
Included in other comprehensive income | — | |||||||||||||||||||||||||||
Included in earnings | — | |||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 7.4 | ||||||||||||||||||||||||||
Sales | (8.0 | ) | ||||||||||||||||||||||||||
Total gains: | ||||||||||||||||||||||||||||
Included in other comprehensive income | 0.6 | |||||||||||||||||||||||||||
Included in earnings | — | |||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | — | ||||||||||||||||||||||||||
Derivative Instruments Used to Hedge against Balance Sheet Foreign Currency Exposures | Derivative instruments used to hedge against balance sheet foreign currency exposures at the end of each period were as follows (in millions): | |||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Recognized gains (losses) in interest and other income, net | $ | 5.7 | $ | (3.4 | ) | $ | (0.3 | ) | ||||||||||||||||||||
Foreign exchange gains (losses) related to re-measurement | $ | (6.9 | ) | $ | 3.1 | $ | 0.7 | |||||||||||||||||||||
Gross Notional Amounts for Outstanding Derivatives | 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 | |||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
Notional amounts: | ||||||||||||||||||||||||||||
Forward contracts | $ | 7.9 | $ | 85.6 | $ | 102.1 | $ | 119.6 | ||||||||||||||||||||
Gross fair value recorded in: | ||||||||||||||||||||||||||||
Prepaid and other current assets | 1.1 | — | 7.9 | — | ||||||||||||||||||||||||
Other accrued liabilities | $ | — | $ | — | $ | 0.1 | $ | 3.8 | ||||||||||||||||||||
Balance_Sheet_Details_and_Othe1
Balance Sheet Details and Other Financial Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Details of the Inventory Balance Sheet Item | The following table provides details of the inventories (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Inventories: | ||||||||||||
Raw materials | $ | 60 | $ | 67.2 | ||||||||
Work-in-process | 8.7 | 12.6 | ||||||||||
Finished goods | 113 | 99.8 | ||||||||||
Total inventories | $ | 181.7 | $ | 179.6 | ||||||||
Details of the Property, Plant and Equipment, Net Balance Sheet Item | Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets generally as follows: | |||||||||||
Useful Lives | ||||||||||||
Building | Up to 30 years | |||||||||||
Building improvements | Up to 15 years | |||||||||||
Leasehold improvements | Lesser of useful life or term of lease | |||||||||||
Equipment and furniture | 5 years | |||||||||||
Computer equipment | 3 years | |||||||||||
Enterprise-wide software | 5 years | |||||||||||
Purchased software | Lesser of 3 years or life of license | |||||||||||
The following table provides details of the property, plant and equipment, net (in millions): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Property, plant and equipment, net: | ||||||||||||
Land | $ | 131.7 | $ | 84.7 | ||||||||
Building and building/leasehold improvements | 159 | 151.9 | ||||||||||
Machinery and equipment | 181.6 | 137.2 | ||||||||||
Computer and office equipment | 31.3 | 27.1 | ||||||||||
Capitalized software | 77.9 | 66.9 | ||||||||||
Construction-in-process | 28.8 | 16.4 | ||||||||||
Gross property, plant and equipment | 610.3 | 484.2 | ||||||||||
Less: Accumulated depreciation | (222.9 | ) | (174.3 | ) | ||||||||
Total property, plant and equipment, net | $ | 387.4 | $ | 309.9 | ||||||||
Details of the Other Accrued Liabilities—Short Term Balance Sheet Item | The following table provides details of the other accrued liabilities—short term (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Other accrued liabilities—short term: | ||||||||||||
Taxes payable | $ | 7.4 | $ | 5.1 | ||||||||
Tolled product liability claims accrued | 49.5 | — | ||||||||||
Other accrued liabilities | 69.9 | 58.8 | ||||||||||
Total other accrued liabilities—short-term | $ | 126.8 | $ | 63.9 | ||||||||
Details of the Other Long-Term Liabilities Balance Sheet Item | The following table provides details of the other long-term liabilities balance sheet item (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Other long-term liabilities: | ||||||||||||
Income taxes—long term | $ | 61.8 | $ | 64.5 | ||||||||
Other long-term liabilities | 17 | 3.5 | ||||||||||
Total other long-term liabilities | $ | 78.8 | $ | 68 | ||||||||
Supplemental Cash Flow Information | The following table provides supplemental cash flow information (in millions): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income taxes paid | $ | 176.8 | $ | 194.1 | $ | 226.1 | ||||||
Supplemental non-cash investing activities: | ||||||||||||
Equipment transfers from inventories to property, plant and equipment | $ | 27.2 | $ | 13.1 | $ | 22.3 | ||||||
Lease_Receivables_Tables
Lease Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases [Abstract] | ||||||||
Lease Receivables Relating to Sales-type Lease Arrangements | Lease receivables relating to sales-type lease arrangements are presented on the Consolidated Balance Sheets as follows (in millions): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Gross lease receivables | $ | 40.4 | $ | 10.1 | ||||
Unearned income | (2.2 | ) | (0.6 | ) | ||||
Allowance for credit loss | — | — | ||||||
Net investment in sales-type leases | 38.2 | 9.5 | ||||||
Reported as: | ||||||||
Prepaids and other current assets | 5.8 | 1.9 | ||||||
Intangible and other assets, net | 32.4 | 7.6 | ||||||
Total, net | $ | 38.2 | $ | 9.5 | ||||
Contractual Maturities of Gross Lease Receivables | Contractual maturities of gross lease receivables at December 31, 2014, are as follows (in millions): | |||||||
Amount | ||||||||
2015 | 7.4 | |||||||
2016 | 10.4 | |||||||
2017 | 10.3 | |||||||
2018 | 9.1 | |||||||
2019 | 3.2 | |||||||
Thereafter | — | |||||||
Total | $ | 40.4 | ||||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Intangible Assets | The following table summarizes the components of gross intangible asset, accumulated amortization, and net intangible asset balances as of December 31, 2014, and 2013 (in millions): | ||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Patents and developed technology | $ | 162.1 | $ | (116.8 | ) | $ | 45.3 | $ | 155.7 | $ | (104.5 | ) | $ | 51.2 | |||||||||||
Distribution rights and others | 12.7 | (6.5 | ) | 6.2 | 11.2 | (6.4 | ) | 4.8 | |||||||||||||||||
Customer relationships | 30 | (7.4 | ) | 22.6 | 12.8 | (4.5 | ) | 8.3 | |||||||||||||||||
Total intangible assets | $ | 204.8 | $ | (130.7 | ) | $ | 74.1 | $ | 179.7 | $ | (115.4 | ) | $ | 64.3 | |||||||||||
Schedule Of Estimated Future Amortization Expense Of Intangible Assets | The estimated future amortization expense of intangible assets as of December 31, 2014 is as follows (in millions): | ||||||||||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||||||||||
2015 | $ | 24.4 | |||||||||||||||||||||||
2016 | 18.2 | ||||||||||||||||||||||||
2017 | 12.4 | ||||||||||||||||||||||||
2018 | 8.6 | ||||||||||||||||||||||||
2019 | 3.6 | ||||||||||||||||||||||||
2020 and thereafter | 6.9 | ||||||||||||||||||||||||
Total | $ | 74.1 | |||||||||||||||||||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule Of Future Minimum Lease Commitments Under Operating Leases | Future minimum lease commitments under the Company’s operating leases as of December 31, 2014, are as follows (in millions): | |||
Years | Amount | |||
2015 | $ | 5.1 | ||
2016 | 3.5 | |||
2017 | 1.6 | |||
2018 | 0.6 | |||
2019 | — | |||
2020 and thereafter | — | |||
Total | $ | 10.8 | ||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Schedule Of Stock Repurchase Activities | The following table provides the stock repurchase activities during the years ended December 31, 2014, 2013, and 2012 (in millions, except per share amounts): | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Shares repurchased | 2.5 | 2.6 | 0.4 | |||||||||||||||||
Average price per share | $ | 397.52 | $ | 429.09 | $ | 503.05 | ||||||||||||||
Value of shares repurchased | $ | 1,000.00 | $ | 1,109.20 | $ | 238.3 | ||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The components of accumulated other comprehensive income (loss) net of tax, for the years ended December 31, 2014, and 2013 are as follows (in millions): | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on | Currency | ||||||||||||||||||
Instruments | Available-for-Sale Securities | Translation | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | ||||||||||
Other comprehensive income before reclassifications | 8.6 | (3.9 | ) | (2.5 | ) | (4.2 | ) | (2.0 | ) | |||||||||||
Reclassified from accumulated other comprehensive income (loss) | (7.5 | ) | 2 | — | 0.3 | (5.2 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | 1.1 | (1.9 | ) | (2.5 | ) | (3.9 | ) | (7.2 | ) | |||||||||||
Ending balance | $ | 1.1 | $ | (0.2 | ) | $ | (2.1 | ) | $ | (3.9 | ) | $ | (5.1 | ) | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Gains (Losses) | Unrealized Gains | Foreign | Employee Benefit Plans | Total | ||||||||||||||||
on Hedge | (Losses) on | Currency | ||||||||||||||||||
Instruments | Available-for-Sale Securities | Translation | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||
Beginning balance | $ | — | $ | 6.2 | $ | 0.4 | $ | — | $ | 6.6 | ||||||||||
Other comprehensive income before reclassifications | (1.8 | ) | (3.9 | ) | — | — | (5.7 | ) | ||||||||||||
Reclassified from accumulated other comprehensive income (loss) | 1.8 | (0.6 | ) | — | — | 1.2 | ||||||||||||||
Net current-period other comprehensive income (loss) | — | (4.5 | ) | — | — | (4.5 | ) | |||||||||||||
Ending balance | $ | — | $ | 1.7 | $ | 0.4 | $ | — | $ | 2.1 | ||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||
Summary Of Stock Option Activity Under All Stock Plans | Option activity during fiscal 2014 under all the stock plans was 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 | 0.7 | $ | 446.91 | ||||||||||||||||||||||||
Options exercised | (0.9 | ) | $ | 296.77 | |||||||||||||||||||||||
Options forfeited/expired | (0.4 | ) | $ | 478.19 | |||||||||||||||||||||||
Balance at December 31, 2014 | 5 | $ | 395.85 | ||||||||||||||||||||||||
Summary Of Significant Ranges Of Outstanding And Exercisable Options | The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2014 (number of shares in millions): | ||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | |||||||||||||||||||
Exercise Prices | of Shares | Average | Average | Intrinsic | of Shares | Average | Average | Intrinsic | |||||||||||||||||||
Remaining | Exercise Price | Value (1) | Remaining | Exercise Price | Value (1) | ||||||||||||||||||||||
Contractual Life | Per Share | Contractual Life | Per Share | ||||||||||||||||||||||||
$47.86 - $333.42 | 1 | 3.38 | $ | 200.98 | 1 | $ | 200.82 | ||||||||||||||||||||
$334.30 - $358.40 | 1 | 5.62 | $ | 339.17 | 0.9 | $ | 338.96 | ||||||||||||||||||||
$358.57 - $451.50 | 1 | 8.51 | $ | 403.95 | 0.4 | $ | 397.19 | ||||||||||||||||||||
$459.14 - $517.31 | 1.4 | 7.78 | $ | 498.68 | 0.8 | $ | 505.75 | ||||||||||||||||||||
$518.29 - $579.24 | 0.6 | 7.83 | $ | 564.92 | 0.3 | $ | 564.7 | ||||||||||||||||||||
TOTAL | 5 | 6.62 | $ | 395.85 | $ | 683.1 | 3.4 | 5.77 | $ | 363.03 | $ | 573.1 | |||||||||||||||
-1 | The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $528.94 at December 31, 2014, which would have been received by the option holders had all in-the-money option holders exercised their options as of that date. | ||||||||||||||||||||||||||
Summary of RSU Activity | RSU activity for the year ended December 31, 2014, was as follows (in millions, except per share amounts): | ||||||||||||||||||||||||||
Shares | Weighted Average | ||||||||||||||||||||||||||
Grant Date Fair Value | |||||||||||||||||||||||||||
Unvested balance at December 31, 2013 | — | $ | — | ||||||||||||||||||||||||
Granted | 0.2 | $ | 441.36 | ||||||||||||||||||||||||
Vested | — | $ | — | ||||||||||||||||||||||||
Canceled | 0 | $ | 443.99 | ||||||||||||||||||||||||
Unvested balance at December 31, 2014 | 0.2 | $ | 441.07 | ||||||||||||||||||||||||
Summary Of Share-Based Compensation Expense | The following table summarizes share-based compensation expense (in millions): | ||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Cost of sales—products | $ | 19.1 | $ | 17.6 | $ | 14.1 | |||||||||||||||||||||
Cost of sales—services | 13.5 | 12.7 | 12.9 | ||||||||||||||||||||||||
Total cost of sales | 32.6 | 30.3 | 27 | ||||||||||||||||||||||||
Selling, general and administrative | 99 | 101.4 | 93.1 | ||||||||||||||||||||||||
Research and development | 37.5 | 37.2 | 33.2 | ||||||||||||||||||||||||
Share-based compensation expense before income taxes | 169.1 | 168.9 | 153.3 | ||||||||||||||||||||||||
Income tax effect | 53.5 | 58.5 | 47.5 | ||||||||||||||||||||||||
Share-based compensation expense after income taxes | $ | 115.6 | $ | 110.4 | $ | 105.8 | |||||||||||||||||||||
Schedule Of Estimated Fair Value Of The Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions | The weighted average estimated fair values of stock options, the rights to acquire stock granted, and the weighted average assumptions used in calculating those fair values during the years ended December 31, 2014, 2013, and 2012, were as follows: | ||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||
STOCK OPTION PLANS | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Average risk free interest rate | 1.5 | % | 1.2 | % | 0.8 | % | |||||||||||||||||||||
Average expected term (years) | 4.3 | 4.5 | 4.3 | ||||||||||||||||||||||||
Average volatility | 31 | % | 30 | % | 33 | % | |||||||||||||||||||||
Weighted average fair value at grant date | $ | 122.39 | $ | 126.5 | $ | 146.26 | |||||||||||||||||||||
EMPLOYEE STOCK PURCHASE PLAN | |||||||||||||||||||||||||||
Average risk free interest rate | 0.2 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||
Average expected term (years) | 1.2 | 1.3 | 1.3 | ||||||||||||||||||||||||
Average volatility | 33 | % | 34 | % | 32 | % | |||||||||||||||||||||
Weighted average fair value at grant date | $ | 124.6 | $ | 153.33 | $ | 138.61 | |||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule Of Income Before Provision For Income Taxes | Income before provision for income taxes for the years ended December 31, 2014, 2013, and 2012 consisted of the following (in millions): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S | $ | 353 | $ | 612.5 | $ | 718.5 | ||||||
Foreign | 196 | 258.4 | 175.4 | |||||||||
Total income before provision for income taxes | $ | 549 | $ | 870.9 | $ | 893.9 | ||||||
Schedule Of Provision For Income Taxes | The provision for income taxes for the years ended December 31, 2014, 2013, and 2012 consisted of the following (in millions): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current | ||||||||||||
Federal | $ | 150.5 | $ | 216.8 | $ | 239.9 | ||||||
State | 7 | 17.4 | 17 | |||||||||
Foreign | 7.5 | 4.3 | 3.4 | |||||||||
$ | 165 | $ | 238.5 | $ | 260.3 | |||||||
Deferred | ||||||||||||
Federal | $ | (30.9 | ) | $ | (36.2 | ) | $ | (20.6 | ) | |||
State | (0.6 | ) | (1.9 | ) | (1.2 | ) | ||||||
Foreign | (3.3 | ) | (0.5 | ) | (1.2 | ) | ||||||
$ | (34.8 | ) | $ | (38.6 | ) | $ | (23.0 | ) | ||||
Total income tax expense | $ | 130.2 | $ | 199.9 | $ | 237.3 | ||||||
Schedule Of Income Tax Difference From The Statutory Rate | Income tax expense differs from amounts computed by applying the statutory rate of 35% for the years ended December 31, 2014, 2013, and 2012 as a result of the following (in millions): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax at statutory rate | $ | 192.2 | $ | 304.8 | $ | 312.9 | ||||||
Increase (reduction) in tax resulting from: | ||||||||||||
State taxes, net of federal benefits | 6.4 | 15.5 | 15.8 | |||||||||
Foreign rate differential | (47.4 | ) | (73.6 | ) | (42.8 | ) | ||||||
Research and development credit | (5.0 | ) | (12.2 | ) | — | |||||||
Share-based compensation not benefited | 7.7 | 1.9 | 5.9 | |||||||||
Domestic production activities deduction | (4.6 | ) | (9.2 | ) | (8.2 | ) | ||||||
Reversal of unrecognized tax benefits | (20.3 | ) | (26.7 | ) | (46.5 | ) | ||||||
Other | 1.2 | (0.6 | ) | 0.2 | ||||||||
$ | 130.2 | $ | 199.9 | $ | 237.3 | |||||||
Schedule Of Deferred Tax Assets | Deferred income taxes reflect tax carry forwards and the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows (in millions): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Share-based compensation expense | $ | 140.5 | $ | 123.4 | ||||||||
Expenses deducted in later years for tax purposes | 52.4 | 30.3 | ||||||||||
Research and other credits | 7.7 | 5.8 | ||||||||||
Other | 3.5 | 1.2 | ||||||||||
Gross deferred tax assets | $ | 204.1 | $ | 160.7 | ||||||||
Valuation allowance | (9.5 | ) | (7.2 | ) | ||||||||
Deferred tax assets | $ | 194.6 | $ | 153.5 | ||||||||
Deferred tax liabilities: | ||||||||||||
Fixed assets | $ | (22.6 | ) | $ | (16.1 | ) | ||||||
Identified intangible assets related to acquisitions | (1.7 | ) | (1.9 | ) | ||||||||
Other | (0.4 | ) | (2.1 | ) | ||||||||
Deferred tax liabilities | $ | (24.7 | ) | $ | (20.1 | ) | ||||||
Net deferred tax assets | $ | 169.9 | $ | 133.4 | ||||||||
Schedule Of Gross Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending amounts of gross unrecognized income tax benefits for the years ended December 31, 2014, 2013, and 2012 are as follows (in millions): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 74 | $ | 88 | $ | 98.1 | ||||||
Increases related to tax positions taken during the current year | 22.3 | 22.8 | 17.5 | |||||||||
Increases related to tax positions taken during a prior year | — | 12.9 | ||||||||||
Decreases related to tax positions taken during a prior year | — | (1.5 | ) | (8.3 | ) | |||||||
Decreases related to settlements with tax authorities | (19.1 | ) | (6.0 | ) | — | |||||||
Decreases related to expiration of statute of limitations | (1.7 | ) | (29.3 | ) | (32.2 | ) | ||||||
Ending balance | $ | 75.5 | $ | 74 | $ | 88 | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 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 (in millions, except per share amounts): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | $ | 418.8 | $ | 671 | $ | 656.6 | ||||||
Basic: | ||||||||||||
Weighted-average shares outstanding | 36.9 | 39.2 | 39.8 | |||||||||
Basic net income per share | $ | 11.35 | $ | 17.12 | $ | 16.5 | ||||||
Diluted: | ||||||||||||
Weighted-average shares outstanding used in basic calculation | 36.9 | 39.2 | 39.8 | |||||||||
Add: Dilutive potential shares | 0.8 | 0.9 | 1.3 | |||||||||
Weighted-average shares used in computing diluted net income per share | 37.7 | 40.1 | 41.1 | |||||||||
Diluted net income per share | $ | 11.11 | $ | 16.73 | $ | 15.98 | ||||||
Selected_Quarterly_Data_Tables
Selected Quarterly Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Schedule Of Selected Quarterly Data | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, | June 30, | 30-Sep-14 | 31-Dec-14 | |||||||||||||
2014 | 2014 | |||||||||||||||
Revenue | $ | 464.7 | $ | 512.2 | $ | 550.1 | $ | 604.7 | ||||||||
Gross profit | $ | 315.4 | $ | 344.4 | $ | 360.6 | $ | 393.4 | ||||||||
Net income (1)(2) | $ | 44.3 | $ | 104 | $ | 123.7 | $ | 146.8 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 1.16 | $ | 2.82 | $ | 3.43 | $ | 4.03 | ||||||||
Diluted | $ | 1.13 | $ | 2.77 | $ | 3.35 | $ | 3.94 | ||||||||
(1) Includes one-time discrete tax benefits as follows: | ||||||||||||||||
Audit settlement and expiration of the statutes of limitations in multiple jurisdictions | $ | 0.2 | $ | — | $ | 0.2 | $ | 19.9 | ||||||||
Reinstatement of the 2014 federal R&D tax credit | $ | — | $ | — | $ | — | $ | 5 | ||||||||
(2) Includes pre-tax charges relating to tolled product liability claims | $ | 67.4 | $ | 9.6 | $ | — | $ | 5.4 | ||||||||
Three Months Ended | ||||||||||||||||
March 31, | June 30, | 30-Sep-13 | 31-Dec-13 | |||||||||||||
2013 | 2013 | |||||||||||||||
Revenue | $ | 611.4 | $ | 578.5 | $ | 499 | $ | 576.2 | ||||||||
Gross profit | $ | 434.3 | $ | 405.2 | $ | 356.7 | $ | 398 | ||||||||
Net income (1) | $ | 188.9 | $ | 159.1 | $ | 156.8 | $ | 166.2 | ||||||||
Net income per common share | ||||||||||||||||
Basic | $ | 4.69 | $ | 3.99 | $ | 4.06 | $ | 4.36 | ||||||||
Diluted | $ | 4.56 | $ | 3.9 | $ | 3.99 | $ | 4.28 | ||||||||
(1) Includes one-time discrete tax benefits as follows: | ||||||||||||||||
Expiration of the statutes of limitations in multiple jurisdictions | $ | — | $ | — | $ | 26.2 | $ | 0.5 | ||||||||
Reinstatement of the 2012 federal R&D tax credit | $ | 7.5 | $ | — | $ | — | $ | 0.7 | ||||||||
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies - Estimated Useful Lives Of Assets (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, maximum estimated useful lives, years | 30 years |
Building Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, maximum estimated useful lives, years | 15 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | Lesser of useful life or term of lease |
Equipment and Furniture | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, maximum estimated useful lives, years | 5 years |
Computer Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, maximum estimated useful lives, years | 3 years |
Enterprise-Wide Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, maximum estimated useful lives, years | 5 years |
Purchased Software | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | Lesser of 3 years or life of license |
Purchased Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, maximum estimated useful lives, years | 3 years |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 17, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
segment | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Likelihood of tax benefits being realized upon ultimate settlement | 50.00% | |||
Other-than-temporary impairment losses | $8,500,000 | $0 | $0 | |
Depreciation expense | 52,000,000 | 46,000,000 | 34,700,000 | |
Number of operating segments | 1 | |||
Impairment of goodwill | 0 | |||
Estimated useful life, intangible asset | 9 years | |||
Sales-type leases, average term | 5 years | |||
Software and Software Development Costs | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized computer software, gross | $12,000,000 | $6,600,000 | ||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life, intangible asset | 1 year | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Estimated useful life, intangible asset | 9 years | |||
United States | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Long-lived assets, percent | 93.00% | 94.00% | ||
Accounts Receivable | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers representing more than 10% accounts receivable | 0 | 0 | ||
Accounts Receivable | United States | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 64.00% | 66.00% | ||
Total Revenue | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of customers representing more than 10% of total revenue | 0 | 0 | 0 | |
Total Revenue | United States | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 70.00% | 72.00% | 79.00% | |
Total Revenue | International | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration risk, percentage | 30.00% | 28.00% | 21.00% |
Financial_Instruments_Summary_
Financial Instruments - Summary Of Cash And Available-For-Sale Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $2,497.10 | $2,752.30 | ||
Gross Unrealized Gains | 2.3 | 5.3 | ||
Gross Unrealized Losses | -2.4 | -3.7 | ||
Fair Value | 2,497 | 2,753.90 | ||
Cash and Cash Equivalents | 600.3 | 782.1 | 553.7 | 465.8 |
Short-term Investments | 632.2 | 621.4 | ||
Long-term Investments | 1,264.50 | 1,350.40 | ||
Cash | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 227.7 | 247.8 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 227.7 | 247.8 | ||
Cash and Cash Equivalents | 227.7 | 247.8 | ||
Short-term Investments | 0 | 0 | ||
Long-term Investments | 0 | 0 | ||
Level 1 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 370.5 | 581.6 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | -0.1 | -0.3 | ||
Fair Value | 370.4 | 581.3 | ||
Cash and Cash Equivalents | 324.4 | 516.2 | ||
Short-term Investments | 19.3 | 25.5 | ||
Long-term Investments | 26.7 | 39.6 | ||
Level 1 | Money market funds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 324.4 | 516.2 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 324.4 | 516.2 | ||
Cash and Cash Equivalents | 324.4 | 516.2 | ||
Short-term Investments | 0 | 0 | ||
Long-term Investments | 0 | 0 | ||
Level 1 | U.S. treasuries & corporate equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 46.1 | 65.4 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | -0.1 | -0.3 | ||
Fair Value | 46 | 65.1 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term Investments | 19.3 | 25.5 | ||
Long-term Investments | 26.7 | 39.6 | ||
Level 2 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 1,898.90 | 1,914.90 | ||
Gross Unrealized Gains | 2.3 | 5.3 | ||
Gross Unrealized Losses | -2.3 | -2.8 | ||
Fair Value | 1,898.90 | 1,917.40 | ||
Cash and Cash Equivalents | 48.2 | 18.1 | ||
Short-term Investments | 612.9 | 595.9 | ||
Long-term Investments | 1,237.80 | 1,303.40 | ||
Level 2 | Commercial paper | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 120.5 | 100.2 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 120.5 | 100.2 | ||
Cash and Cash Equivalents | 48.2 | 18.1 | ||
Short-term Investments | 72.3 | 82.1 | ||
Long-term Investments | 0 | 0 | ||
Level 2 | Corporate securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 904.8 | 844.7 | ||
Gross Unrealized Gains | 1.3 | 2.9 | ||
Gross Unrealized Losses | -1.6 | -1.9 | ||
Fair Value | 904.5 | 845.7 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term Investments | 241.7 | 227.7 | ||
Long-term Investments | 662.8 | 618 | ||
Level 2 | U.S. government agencies | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 446 | 352.2 | ||
Gross Unrealized Gains | 0.3 | 0.7 | ||
Gross Unrealized Losses | -0.4 | -0.7 | ||
Fair Value | 445.9 | 352.2 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term Investments | 105.6 | 84.7 | ||
Long-term Investments | 340.3 | 267.5 | ||
Level 2 | Non-U.S. government securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 42.2 | 67.7 | ||
Gross Unrealized Gains | 0 | 0.2 | ||
Gross Unrealized Losses | -0.1 | -0.1 | ||
Fair Value | 42.1 | 67.8 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term Investments | 26.1 | 41.2 | ||
Long-term Investments | 16 | 26.6 | ||
Level 2 | Municipal securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | 385.4 | 550.1 | ||
Gross Unrealized Gains | 0.7 | 1.5 | ||
Gross Unrealized Losses | -0.2 | -0.1 | ||
Fair Value | 385.9 | 551.5 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Short-term Investments | 167.2 | 160.2 | ||
Long-term Investments | 218.7 | 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 | Auction rate 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 $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Amortized Cost | |
Mature in less than one year, Amortized Cost | $676.70 |
Mature in one to five years, Amortized Cost | 1,265.40 |
Mature in after five years, Amortized Cost | 0 |
Total, Amortized Cost | 1,942.10 |
Fair Value | |
Mature in less than one year, Fair Value | 677.4 |
Mature in one to five years, Fair Value | 1,264.50 |
Mature in after five years, Fair Value | 0 |
Total, Fair Value | $1,941.90 |
Financial_Instruments_Schedule
Financial Instruments - Schedule Of Available-For-Sale Investments With Unrealized Losses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months Fair Value | $808 | $444.40 |
Unrealized losses less than 12 months | -2 | -3.1 |
Unrealized losses 12 months or greater Fair Value | 48.7 | 16.9 |
Unrealized losses 12 months or greater | -0.4 | -0.6 |
Total Fair Value | 856.7 | 461.3 |
Total Unrealized Losses | -2.4 | -3.7 |
Corporate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months Fair Value | 456.7 | 245.3 |
Unrealized losses less than 12 months | -1.3 | -1.9 |
Unrealized losses 12 months or greater Fair Value | 16.9 | 9.5 |
Unrealized losses 12 months or greater | -0.2 | 0 |
Total Fair Value | 473.6 | 254.8 |
Total Unrealized Losses | -1.5 | -1.9 |
U.S. government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months Fair Value | 239.1 | 142.8 |
Unrealized losses less than 12 months | -0.4 | -1 |
Unrealized losses 12 months or greater Fair Value | 31.8 | 0 |
Unrealized losses 12 months or greater | -0.2 | 0 |
Total Fair Value | 270.9 | 142.8 |
Total Unrealized Losses | -0.6 | -1 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months Fair Value | 91.3 | 37.6 |
Unrealized losses less than 12 months | -0.2 | -0.1 |
Unrealized losses 12 months or greater Fair Value | 0 | 0 |
Unrealized losses 12 months or greater | 0 | 0 |
Total Fair Value | 91.3 | 37.6 |
Total Unrealized Losses | -0.2 | -0.1 |
Non-U.S. government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months Fair Value | 20.9 | 18.7 |
Unrealized losses less than 12 months | -0.1 | -0.1 |
Unrealized losses 12 months or greater Fair Value | 0 | |
Unrealized losses 12 months or greater | 0 | |
Total Fair Value | 20.9 | 18.7 |
Total Unrealized Losses | -0.1 | -0.1 |
Auction rate securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Unrealized losses less than 12 months Fair Value | 0 | |
Unrealized losses less than 12 months | 0 | |
Unrealized losses 12 months or greater Fair Value | 7.4 | |
Unrealized losses 12 months or greater | -0.6 | |
Total Fair Value | 7.4 | |
Total Unrealized Losses | ($0.60) |
Financial_Instruments_Schedule1
Financial Instruments - Schedule Of Reconciliation For All Assets Measured At Fair Value Using Significant Unobservable Inputs (Level 3) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning Balance | $7.40 | $7.40 | $16.40 |
Sales | -8 | 0 | -12 |
Total gains or (losses): Included in other comprehensive income (loss) | 0.6 | 0 | 3 |
Total gains or (losses): Included in earnings | 0 | 0 | 0 |
Ending Balance | $0 | $7.40 | $7.40 |
Financial_Instruments_Derivati
Financial Instruments - Derivative Instruments Used to Hedge against Balance Sheet Foreign Currency Exposures (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign exchange gains (losses) related to re-measurement | ($6.90) | $3.10 | $0.70 |
Foreign Exchange Forward | Other Income | Not Designated As Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Recognized gains (losses) in interest and other income, net | $5.70 | ($3.40) | ($0.30) |
Financial_Instruments_Gross_No
Financial Instruments - Gross Notional Amounts for Outstanding Derivatives (Details) (Forward Contract, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | $7.90 | $85.60 |
Not Designated As Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 102.1 | 119.6 |
Prepaid and Other Current Assets | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 1.1 | 0 |
Prepaid and Other Current Assets | Not Designated As Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 7.9 | 0 |
Other Accrued Liabilities | Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | 0 | 0 |
Other Accrued Liabilities | Not Designated As Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amounts of outstanding currency forward contracts | $0.10 | $3.80 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Accumulated other comprehensive income, net unrealized gains (losses) on investments, net of tax | ($0.20) | $1.70 | $6.20 | |
Net gains (losses) reclassified to revenue | 7.5 | -1.8 | -1.1 | |
Auction rate securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Auction rate securities, sold at par value | $8 |
Balance_Sheet_Details_and_Othe2
Balance Sheet Details and Other Financial Information - Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories: | ||
Raw materials | $60 | $67.20 |
Work-in-process | 8.7 | 12.6 |
Finished goods | 113 | 99.8 |
Total inventories | $181.70 | $179.60 |
Balance_Sheet_Details_and_Othe3
Balance Sheet Details and Other Financial Information - Property, Plant and Equipment, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment, Net [Abstract] | ||
Land | $131.70 | $84.70 |
Building and building/leasehold improvements | 159 | 151.9 |
Machinery and equipment | 181.6 | 137.2 |
Computer and office equipment | 31.3 | 27.1 |
Capitalized software | 77.9 | 66.9 |
Construction-in-process | 28.8 | 16.4 |
Property, Plant and Equipment, Gross, Total | 610.3 | 484.2 |
Less: Accumulated depreciation | -222.9 | -174.3 |
Total property, plant and equipment, net | $387.40 | $309.90 |
Balance_Sheet_Details_and_Othe4
Balance Sheet Details and Other Financial Information - Other Accrued Liabilities—Short Term (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other accrued liabilities-short term [Abstract] | ||
Taxes payable | $7.40 | $5.10 |
Tolled product liability claims accrued | 49.5 | 0 |
Other accrued liabilities | 69.9 | 58.8 |
Total other accrued liabilities—short-term | $126.80 | $63.90 |
Balance_Sheet_Details_and_Othe5
Balance Sheet Details and Other Financial Information - Other Long-Term Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other long-term liabilities [Abstract] | ||
Income taxes-long term | $61.80 | $64.50 |
Other long-term liabilities | 17 | 3.5 |
Total other long-term liabilities | $78.80 | $68 |
Balance_Sheet_Details_and_Othe6
Balance Sheet Details and Other Financial Information - Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Cash Flow Elements [Abstract] | |||
Income taxes paid | $176.80 | $194.10 | $226.10 |
Supplemental non-cash investing activities: | |||
Equipment transfers from inventories to property, plant and equipment | $27.20 | $13.10 | $22.30 |
Lease_Receivables_Details
Lease Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross lease receivables | $40.40 | $10.10 |
Unearned income | -2.2 | -0.6 |
Allowance for credit loss | 0 | 0 |
Net investment in sales-type leases | 38.2 | 9.5 |
Capital Leases, Future Minimum Payments Receivable, Fiscal Year Maturity [Abstract] | ||
2015 | 7.4 | |
2016 | 10.4 | |
2017 | 10.3 | |
2018 | 9.1 | |
2019 | 3.2 | |
Thereafter | 0 | |
Total | 40.4 | |
Prepaid and Other Current Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in sales-type leases | 5.8 | 1.9 |
Intangible and Other Assets, Net [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net investment in sales-type leases | $32.40 | $7.60 |
Recovered_Sheet1
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 25, 2014 | Jan. 17, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 25, 2014 | Jan. 17, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $50.50 | $10.10 | $198 | $137.40 | $50.50 | $10.10 | |
Intangible assets | 9.5 | 204.8 | 179.7 | 9.5 | |||
Weighted average useful life, years | 9 years | ||||||
Cash consideration | 71.8 | 84.3 | 0 | 27.6 | |||
Contingent consideration | 1.8 | ||||||
Amortization expense related to intangible assets | 22.4 | 21.3 | 23.1 | ||||
Distribution Rights [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets | 5.5 | 12.7 | 11.2 | 5.5 | |||
Weighted average useful life, years | 1 year 1 month 6 days | ||||||
Customer relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets | $17.20 | $30 | $12.80 | $17.20 | |||
Weighted average useful life, years | 7 years |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | Dec. 31, 2014 | Jan. 17, 2014 | Dec. 31, 2013 | Jun. 25, 2014 |
In Millions, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $204.80 | $9.50 | $179.70 | |
Accumulated Amortization | -130.7 | -115.4 | ||
Net Carrying Amount | 74.1 | 64.3 | ||
Patents and developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 162.1 | 155.7 | ||
Accumulated Amortization | -116.8 | -104.5 | ||
Net Carrying Amount | 45.3 | 51.2 | ||
Distribution rights and others | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 12.7 | 11.2 | 5.5 | |
Accumulated Amortization | -6.5 | -6.4 | ||
Net Carrying Amount | 6.2 | 4.8 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 30 | 12.8 | 17.2 | |
Accumulated Amortization | -7.4 | -4.5 | ||
Net Carrying Amount | $22.60 | $8.30 |
Goodwill_And_Intangible_Assets3
Goodwill And Intangible Assets - Schedule Of Estimated Future Amortization Expense Of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $24.40 | |
2016 | 18.2 | |
2017 | 12.4 | |
2018 | 8.6 | |
2019 | 3.6 | |
2020 and thereafter | 6.9 | |
Net Carrying Amount | $74.10 | $64.30 |
Commitments_And_Contingencies_1
Commitments And Contingencies - Schedule Of Future Minimum Lease Commitments Under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $5.10 |
2016 | 3.5 |
2017 | 1.6 |
2018 | 0.6 |
2019 | 0 |
2020 and thereafter | 0 |
Total | $10.80 |
Recovered_Sheet2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Aug. 10, 2011 | Aug. 06, 2010 | Aug. 19, 2010 | Sep. 15, 2010 | Feb. 03, 2014 | Nov. 26, 2014 | Oct. 31, 2013 |
Defendant | Defendant | Defendant | Defendant | state | state | |||||||
patient | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Operating lease maximum term (in years) | 3 years | |||||||||||
Other commitments | $251.50 | $251.50 | ||||||||||
Estimated cost of settling claims | 5.4 | 0 | 9.6 | 67.4 | ||||||||
Perlmutter v. Intuitive Surgical et al. | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of individual defendants involved in lawsuit | 7 | |||||||||||
Time limit given to plaintiffs for filing amended complaint, days | 30 days | |||||||||||
Himmel v. Smith et al. | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of individual defendants involved in lawsuit | 14 | |||||||||||
Applebaum v. Guthart et al. | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of individual defendants involved in lawsuit | 15 | |||||||||||
Berg v. Guthart et al. | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of individual defendants involved in lawsuit | 16 | |||||||||||
da Vinci Surgical System Product Liability Matters | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of pending product liability lawsuits | 102 | 102 | ||||||||||
Number of patients on behalf of which damages are sought | 20 | |||||||||||
Number of states involved in lawsuit | 13 | |||||||||||
Estimated cost of settling claims | 82.4 | |||||||||||
Claims added to date | 4,800 | 4,800 | ||||||||||
Claims voluntarily removed to date | 3,100 | 3,100 | ||||||||||
da Vinci Surgical System Product Liability Matters | Other Accrued Liabilities | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Accrued liabilities, product liability claims | $49.50 | $49.50 | ||||||||||
Rose v. Intuitive Surgical, Inc. | ||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||
Number of states involved in lawsuit | 21 |
Stockholders_Equity_Schedule_O
Stockholders' Equity - Schedule Of Stock Repurchase Activities (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Shares repurchased | 2.5 | 2.6 | 0.4 |
Average price per share | $397.52 | $429.09 | $503.05 |
Value of shares repurchased | $1,000 | $1,109.20 | $238.30 |
Stockholders_Equity_Components
Stockholders' Equity - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gains (Losses) on Hedge Instruments | |||
Beginning balance | $0 | $0 | |
Other comprehensive income before reclassifications | 8.6 | -1.8 | -1.1 |
Reclassified from accumulated other comprehensive income | -7.5 | 1.8 | 1.1 |
Net change, net of tax effect | 1.1 | 0 | 0 |
Ending balance | 1.1 | 0 | 0 |
Unrealized Gains (Losses) on Available-for- Sale Securities | |||
Beginning balance | 1.7 | 6.2 | |
Other comprehensive income before reclassifications | -3.9 | -3.9 | 5 |
Reclassified from accumulated other comprehensive income | 2 | -0.6 | 0.1 |
Net change, net of tax effect | -1.9 | -4.5 | 5.1 |
Ending balance | -0.2 | 1.7 | 6.2 |
Foreign Currency Translation Gains (Losses) | |||
Beginning balance | 0.4 | 0.4 | |
Other comprehensive income before reclassifications | -2.5 | 0 | |
Reclassified from accumulated other comprehensive income | 0 | 0 | |
Net current-period other comprehensive income | -2.5 | 0 | 0.6 |
Ending balance | -2.1 | 0.4 | 0.4 |
Employee Benefit Plans | |||
Beginning balance | 0 | 0 | |
Change in unrealized losses | -4.2 | 0 | 0 |
Less: Reclassification adjustment for gains (losses) on employee benefit plans recognized during the year, net of tax | 0.3 | 0 | 0 |
Net change, net of tax effect | -3.9 | 0 | 0 |
Ending balance | -3.9 | 0 | 0 |
Total | |||
Beginning balance | 2.1 | 6.6 | |
Other comprehensive income before reclassifications | -2 | -5.7 | |
Reclassified from accumulated other comprehensive income | -5.2 | 1.2 | |
Other comprehensive income (loss) | -7.2 | -4.5 | 5.7 |
Ending balance | ($5.10) | $2.10 | $6.60 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 2 Months Ended | ||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 2-May-14 | Sep. 16, 2013 | Jul. 29, 2013 | Sep. 16, 2013 | Mar. 31, 2009 | Jan. 29, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Repurchase of common stock | $1,000,000,000 | $1,109,200,000 | $238,300,000 | ||||||
Aggregate reduction in common stock during stock repurchases | 89,500,000 | 84,200,000 | 13,200,000 | ||||||
Amount charged to retained earnings during stock repurchases | 910,500,000 | 1,025,000,000 | 225,100,000 | ||||||
Common stock | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | 3,000,000,000 | ||||||||
2014 ASR Program | Goldman, Sachs & Co. | Common stock | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | 1,000,000,000 | ||||||||
Repurchase of common stock | 1,000,000,000 | ||||||||
Repurchase of common stock (in shares) | 2.5 | ||||||||
2013 ASR Program | Goldman, Sachs & Co. | Common stock | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | 500,000,000 | ||||||||
Repurchase of common stock | 500,000,000 | ||||||||
Repurchase of common stock (in shares) | 0.1 | 1.2 | 1.3 | ||||||
Subsequent Event [Member] | Common stock | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount | $1,000,000,000 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary Of Stock Option Activity Under All Stock Plans (Detail) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Number Outstanding | |
Beginning balance, Number outstanding | 5.6 |
Options granted, Number Outstanding | 0.7 |
Options exercised, Number Outstanding | -0.9 |
Options forfeited/expired, Number Outstanding | -0.4 |
Ending balance, Number Outstanding | 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 | $446.91 |
Options exercised, Weighted Average Exercise Price Per Share | $296.77 |
Options forfeited/expired, Weighted Average Exercise Price Per Share | $478.19 |
Ending balance, Weighted Average Exercise Price Per Share | $395.85 |
ShareBased_Compensation_Outsta
Share-Based Compensation - Outstanding and Exercisable Options Ranges (Detail) (USD $) | 12 Months Ended |
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Shares | 5 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 7 months 15 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $395.85 |
Options Outstanding, Aggregate Intrinsic Value | $683,100,000 |
Options Exercisable, Number of Shares | 3.4 |
Options Exercisable, Weighted Average Remaining Contractual Life | 5 years 9 months 9 days |
Options Exercisable, Weighted Average Exercise Price Per Share | $363.03 |
Options Exercisable, Aggregate Intrinsic Value | 573,100,000 |
Closing stock price | $528.94 |
Exercise Price $47.86 - $333.42 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $47.86 |
Range of Exercise Prices, maximum | $333.42 |
Options Outstanding, Number of Shares | 1 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 4 months 17 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $200.98 |
Options Exercisable, Number of Shares | 1 |
Options Exercisable, Weighted Average Exercise Price Per Share | $200.82 |
Exercise Price $334.30 - $358.40 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $334.30 |
Range of Exercise Prices, maximum | $358.40 |
Options Outstanding, Number of Shares | 1 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 7 months 15 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $339.17 |
Options Exercisable, Number of Shares | 0.9 |
Options Exercisable, Weighted Average Exercise Price Per Share | $338.96 |
Exercise Price $358.57 - $451.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $358.57 |
Range of Exercise Prices, maximum | $451.50 |
Options Outstanding, Number of Shares | 1 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 6 months 5 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $403.95 |
Options Exercisable, Number of Shares | 0.4 |
Options Exercisable, Weighted Average Exercise Price Per Share | $397.19 |
Exercise Price $459.14 - $517.31 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $459.14 |
Range of Exercise Prices, maximum | $517.31 |
Options Outstanding, Number of Shares | 1.4 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 9 months 10 days |
Options Outstanding, Weighted Average Exercise Price Per Share | $498.68 |
Options Exercisable, Number of Shares | 0.8 |
Options Exercisable, Weighted Average Exercise Price Per Share | $505.75 |
Exercise Price $518.29 - $579.24 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $518.29 |
Range of Exercise Prices, maximum | $579.24 |
Options Outstanding, Number of Shares | 0.6 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 10 months |
Options Outstanding, Weighted Average Exercise Price Per Share | $564.92 |
Options Exercisable, Number of Shares | 0.3 |
Options Exercisable, Weighted Average Exercise Price Per Share | $564.70 |
ShareBased_Compensation_Summar1
Share-Based Compensation - Summary of RSU Activity (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units (RSUs) | |
Shares | |
Unvested balance at December 31, 2013 (in shares) | 0 |
Granted (in shares) | 0.2 |
Vested (in shares) | 0 |
Canceled (in shares) | 0 |
Unvested balance at December 31, 2014 (in shares) | 0.2 |
Weighted Average Grant Date Fair Value | |
Unvested balance at December 31, 2013 (in dollars per share) | $0 |
Granted (in dollars per share) | $441.36 |
Vested (in dollars per share) | $0 |
Canceled (in dollars per share) | $443.99 |
Unvested balance at December 31, 2014 (in dollars per share) | $441.07 |
ShareBased_Compensation_ShareB
Share-Based Compensation - Share-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | $169.10 | $168.90 | $153.30 |
Income tax effect | 53.5 | 58.5 | 47.5 |
Share-based compensation expense after income taxes | 115.6 | 110.4 | 105.8 |
Total Cost Of Sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 32.6 | 30.3 | 27 |
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 | 19.1 | 17.6 | 14.1 |
Total Cost Of Sales | Cost Of Sales - Service | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 13.5 | 12.7 | 12.9 |
Selling, General And Administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | 99 | 101.4 | 93.1 |
Research And Development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense before income taxes | $37.50 | $37.20 | $33.20 |
ShareBased_Compensation_Schedu
Share-Based Compensation - Schedule Of Estimated Fair Value Of Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $169.10 | $168.90 | $153.30 |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk free interest rate | 1.50% | 1.20% | 0.80% |
Average expected term (years) | 4 years 3 months 26 days | 4 years 6 months | 4 years 3 months |
Average volatility | 31.00% | 30.00% | 33.00% |
Weighted average fair value at grant date (usd per share) | $122.39 | $126.50 | $146.26 |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average risk free interest rate | 0.20% | 0.20% | 0.20% |
Average expected term (years) | 1 year 2 months | 1 year 3 months | 1 year 3 months |
Average volatility | 33.00% | 34.00% | 32.00% |
Weighted average fair value at grant date (usd per share) | $124.60 | $153.33 | $138.61 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 25, 2013 | Apr. 24, 2013 | 31-May-13 | Jan. 31, 2013 | Oct. 31, 2009 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate intrinsic value of options exercised under stock option plans | $146.20 | $130.20 | $375.70 | |||||
Cash received from option exercises and employee stock purchase plans | 283.6 | 160.6 | 263.3 | |||||
Number of options vested and expected to vest | 4,800,000 | |||||||
Weighted average remaining contractual life of shares vested and expected to vest, years | 6 years 6 months | |||||||
Aggregate intrinsic value of shares vested and expected to vest | 672.2 | |||||||
Options vested and expected to vest, weighted-average exercise price per share | $393.76 | |||||||
Excess tax benefit from employee stock plans | 24 | 38 | 94.2 | |||||
Share-based compensation charges, income tax effect | 53.5 | 58.5 | 47.5 | |||||
2010 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, options, expiration term (in years) | 10 years | |||||||
Number of shares of common stock reserved for issuance | 4,850,000 | 3,650,000 | ||||||
Shares were reserved for future issuance | 1,000,000 | |||||||
2009 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, options, expiration term (in years) | 10 years | |||||||
Number of shares of common stock reserved for issuance | 1,155,000 | 855,000 | ||||||
Shares were reserved for future issuance | 100,000 | |||||||
2000 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, options, expiration term (in years) | 10 years | |||||||
Minimum exercise price of NSOs, percentage of fair value | 85.00% | |||||||
2000 Non-Employee Directors' Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, options, expiration term (in years) | 10 years | |||||||
Shares were reserved for future issuance | 58,000 | |||||||
Reduction under Directors' plan, shares | 150,000 | |||||||
Annual Grant Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage vesting upon six months of service | 12.50% | |||||||
Percentage vesting per month after six months of service | 2.08% | |||||||
Annual Grant Options | 2010 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based vesting period | 3 years 6 months | |||||||
Annual Grant Options | 2000 Non-Employee Directors' Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based vesting period | 1 year | |||||||
New Hire Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage vesting upon one year of service | 25.00% | |||||||
Percentage vesting per month after one year | 2.08% | |||||||
Initial Grant Options | 2000 Non-Employee Directors' Stock Option Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage vesting upon one year of service | 33.33% | |||||||
Percentage vesting per month after one year | 2.78% | |||||||
Stock options granted initial vesting period, years | 3 years | |||||||
Employee Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares were reserved for future issuance | 300,000 | |||||||
Minimum hours employed per week | 20 hours | |||||||
Minimum months employed per year | 5 months | |||||||
Maximum percentage of employees on stockholders to participate in ESPP | 5.00% | |||||||
Percentage of employee payroll deduction under the stock plan, maximum | 15.00% | |||||||
Duration for each offering period | 24 months | |||||||
Number of shorter purchase periods that each offering period is divided into | 4 | |||||||
Duration of each shorter offering period | 6 months | |||||||
Discount on fair market value on the offering date | 85.00% | |||||||
Discount on fair market value on the purchase date | 85.00% | |||||||
Period of look-back that could cause offering period to reset | 2 years | |||||||
Employee stock purchase plan, shares issued | 100,000 | 100,000 | 100,000 | |||||
Employee stock purchase plan, value of shares issued | 29.4 | 28.8 | 27.8 | |||||
Total unrecognized compensation expense | 7.3 | |||||||
Weighted average period unrecognized compensation expenses are expected to be recognized, years | 8 months 12 days | |||||||
Nonvested Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total unrecognized compensation expense | 177.1 | |||||||
Weighted average period unrecognized compensation expenses are expected to be recognized, years | 2 years 3 months | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based vesting period | 4 years | |||||||
Total unrecognized compensation expense | $65.90 | |||||||
Weighted average period unrecognized compensation expenses are expected to be recognized, years | 3 years 2 months 12 days | |||||||
February Grant | Annual Grant Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage vesting upon six months of service | 12.50% | |||||||
Percentage vesting per month after six months of service | 2.08% | |||||||
August Grant | Annual Grant Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage vesting at the end of one month | 14.58% | |||||||
Percentage vesting per month after one month | 2.08% |
Income_Taxes_Schedule_Of_Incom
Income Taxes - Schedule Of Income Before Provision For Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income before provision for income taxes, U.S. | $353 | $612.50 | $718.50 |
Income before provision for income taxes, Foreign | 196 | 258.4 | 175.4 |
Income before taxes | $549 | $870.90 | $893.90 |
Income_Taxes_Schedule_Of_Provi
Income Taxes - Schedule Of Provision For Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current income taxes, Federal | $150.50 | $216.80 | $239.90 |
Current income taxes, State | 7 | 17.4 | 17 |
Current income taxes, Foreign | 7.5 | 4.3 | 3.4 |
Current income taxes | 165 | 238.5 | 260.3 |
Deferred income taxes, Federal | -30.9 | -36.2 | -20.6 |
Deferred income taxes, State | -0.6 | -1.9 | -1.2 |
Deferred income taxes, Foreign | -3.3 | -0.5 | -1.2 |
Deferred income taxes | -34.8 | -38.6 | -23 |
Total income tax expense | $130.20 | $199.90 | $237.30 |
Income_Taxes_Schedule_Of_Incom1
Income Taxes - Schedule Of Income Tax Difference From Statutory Rate (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | $192.20 | $304.80 | $312.90 |
State taxes, net of federal benefits | 6.4 | 15.5 | 15.8 |
Foreign rate differential | -47.4 | -73.6 | -42.8 |
Research and development credit | -5 | -12.2 | 0 |
Share-based compensation not benefited | 7.7 | 1.9 | 5.9 |
Domestic production activities deduction | -4.6 | -9.2 | -8.2 |
Releases due to statute expirations and other | -20.3 | -26.7 | -46.5 |
Other | 1.2 | -0.6 | 0.2 |
Total income tax expense | $130.20 | $199.90 | $237.30 |
Income_Taxes_Schedule_Of_Defer
Income Taxes - Schedule Of Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, Share-based compensation expense | $140.50 | $123.40 |
Deferred tax assets, Expenses deducted in later years for tax purposes | 52.4 | 30.3 |
Deferred tax assets, Research and other credits | 7.7 | 5.8 |
Deferred tax assets, Other | 3.5 | 1.2 |
Gross deferred tax assets | 204.1 | 160.7 |
Valuation allowance | -9.5 | -7.2 |
Deferred tax assets | 194.6 | 153.5 |
Deferred tax liabilities, Fixed assets | -22.6 | -16.1 |
Deferred tax liabilities, Identified intangible assets related to acquisitions | -1.7 | -1.9 |
Deferred tax liabilities, Other | -0.4 | -2.1 |
Deferred tax liabilities | -24.7 | -20.1 |
Net deferred tax assets | $169.90 | $133.40 |
Income_Taxes_Schedule_Of_Gross
Income Taxes - Schedule Of Gross Unrecognized Income Tax Benefits (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||||
Beginning balance | $74 | $88 | $98.10 | |
Increases related to tax positions taken during the current year | 22.3 | 22.8 | 17.5 | |
Increases related to tax positions taken during a prior year | 0 | 12.9 | ||
Decreases related to tax positions taken during a prior year | 0 | -1.5 | -8.3 | |
Decreases related to settlements with tax authorities | -20.3 | -19.1 | -6 | 0 |
Decreases related to expiration of statute of limitations | -1.7 | -29.3 | -32.2 | |
Ending balance | $75.50 | $75.50 | $74 | $88 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | |||||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% | ||
Cumulative amount of earnings upon which U.S. income taxes have not been provided | $855.80 | $855.80 | |||
Valuation allowance | 9.5 | 9.5 | 7.2 | ||
Unrecognized tax benefits, period increase (decrease) | 1.5 | ||||
Reversal of gross unrecognized tax benefits in connection with conclusion of IRS audit | 20.8 | ||||
Total gross unrecognized tax benefits | 75.5 | 75.5 | 74 | 88 | 98.1 |
Unrecognized tax benefits, if recognized, would reduce the Company's effective tax rate | 75.5 | 75.5 | 74 | 83.8 | |
Gross interest and penalties related to unrecognized tax benefits accrued | 2.5 | 2.5 | 3.4 | 3.2 | |
Unrecognized tax benefits, increase in gross interest and penalties accrued included in income tax expense | 0.9 | ||||
Reversal of unrecognized tax benefits and interest | 20.3 | 19.1 | 6 | 0 | |
Anticipated refund receivable | $4.50 | $4.50 |
Net_Income_Per_Share_Computati
Net Income Per Share - Computation Of Basic And Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $146.80 | $123.70 | $104 | $44.30 | $166.20 | $156.80 | $159.10 | $188.90 | $418.80 | $671 | $656.60 |
Weighted-average shares outstanding | 36.9 | 39.2 | 39.8 | ||||||||
Basic net income per share | $4.03 | $3.43 | $2.82 | $1.16 | $4.36 | $4.06 | $3.99 | $4.69 | $11.35 | $17.12 | $16.50 |
Weighted-average shares outstanding | 36.9 | 39.2 | 39.8 | ||||||||
Add: Dilutive potential shares | 0.8 | 0.9 | 1.3 | ||||||||
Weighted-average shares used in computing diluted net income per share | 37.7 | 40.1 | 41.1 | ||||||||
Diluted net income per share | $3.94 | $3.35 | $2.77 | $1.13 | $4.28 | $3.99 | $3.90 | $4.56 | $11.11 | $16.73 | $15.98 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Employee stock options excluded from computation of diluted net income per share | 2.4 | 2.3 | 0.9 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum rate of employees' contribution to 401(k) plan | 75.00% | ||
Employer matching contributions | $0 | $0 | $0 |
Selected_Quarterly_Data_Schedu
Selected Quarterly Data - Schedule Of Selected Quarterly Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $604.70 | $550.10 | $512.20 | $464.70 | $576.20 | $499 | $578.50 | $611.40 | $2,131.70 | $2,265.10 | $2,178.80 |
Gross profit | 393.4 | 360.6 | 344.4 | 315.4 | 398 | 356.7 | 405.2 | 434.3 | 1,413.80 | 1,594.20 | 1,570.30 |
Net income | 146.8 | 123.7 | 104 | 44.3 | 166.2 | 156.8 | 159.1 | 188.9 | 418.8 | 671 | 656.6 |
Basic net income per share | $4.03 | $3.43 | $2.82 | $1.16 | $4.36 | $4.06 | $3.99 | $4.69 | $11.35 | $17.12 | $16.50 |
Diluted net income per share | $3.94 | $3.35 | $2.77 | $1.13 | $4.28 | $3.99 | $3.90 | $4.56 | $11.11 | $16.73 | $15.98 |
Expiration of the statutes of limitations in multiple jurisdictions | 19.9 | 0.2 | 0 | 0.2 | 0.5 | 26.2 | 0 | 0 | |||
Reinstatement of the 2014 federal R&D tax credit | 5 | 0 | 0 | 0 | |||||||
Pre-tax charges relating to tolled product liability claims | 5.4 | 0 | 9.6 | 67.4 | |||||||
Reinstatement of the 2012 federal R&D tax credit | $0.70 | $0 | $0 | $7.50 |
Valuation_And_Qualifying_Accou1
Valuation And Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Allowance for doubtful accounts and sales returns, Beginning Balance | $5.80 | $8 | $5.60 |
Allowance for doubtful accounts and sales returns, Additions | 22.2 | 14.1 | 15 |
Allowance for doubtful accounts and sales returns, Deductions | -22.5 | -16.3 | -12.6 |
Allowance for doubtful accounts and sales returns, Ending Balance | $5.50 | $5.80 | $8 |