SEC Filings

10-K
INTUITIVE SURGICAL INC filed this Form 10-K on 02/02/2018
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Instrument and accessory revenue increased by 17% to $1.6 billion for the year ended December 31, 2017, compared with $1.4 billion for the year ended December 31, 2016.
Systems revenue increased by 15% to $910.2 million for the year ended December 31, 2017, compared with 791.6 million for the year ended December 31, 2016. A total of 684 da Vinci Surgical Systems were shipped for the year ended December 31, 2017, compared with 537 for the year ended December 31, 2016.
As of December 31, 2017, we had a da Vinci Surgical System installed base of approximately 4,409 systems, an increase of approximately 13% compared with the installed base as of December 31, 2016.
Gross profit as a percentage of revenue increased to 70.1% for the year ended December 31, 2017, compared with 69.9% for the year ended December 31, 2016. Gross profit for the year ended December 31, 2017, was reduced by $7.8 million related to a litigation settlement charge. Gross profit for the year ended December 31, 2016, benefited from a $7.1 million Medical Device Excise Tax (“MDET”) refund.
Operating income increased by 12% to $1,054.6 million for the year ended December 31, 2017, compared with $945.2 million for the year ended December 31, 2016. Operating income included $209.9 million and $178.0 million of share-based compensation expense related to employee stock plans for the years ended December 31, 2017, and 2016, respectively. Operating income for the year ended December 31, 2017, and 2016, also included pre-tax litigation charges of $25.3 million and $12.1 million, respectively.
As of December 31, 2017, we had $3.8 billion in cash, cash equivalents, and investments. Cash, cash equivalents, and investments decreased by $1.0 billion compared with December 31, 2016,  primarily as a result of the $2.3 billion accelerated share buyback executed and settled during 2017, partially offset by cash generated from operating activities and employee stock option exercises.
Results of Operations
The following table sets forth, for the years indicated, certain Consolidated Statements of Income information (in millions, except percentages):
 
Years Ended December 31,
 
2017
 
% of
total
revenue
 
2016
 
% of
total
revenue
 
2015
 
% of
total
revenue
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
$
2,547.1

 
81
%
 
$
2,187.4

 
81
%
 
$
1,919.6

 
81
%
Service
581.8

 
19
%
 
517.0

 
19
%
 
464.8

 
19
%
Total revenue
3,128.9

 
100
%
 
2,704.4

 
100
%
 
2,384.4

 
100
%
Cost of revenue:
 
 
 
 
 
 
 
 
 
 
 
Product
754.9

 
24
%
 
663.3

 
25
%
 
647.2

 
27
%
Service
179.9

 
6
%
 
151.0

 
5
%
 
159.3

 
7
%
Total cost of revenue
934.8

 
30
%
 
814.3

 
30
%
 
806.5

 
34
%
Product gross profit
1,792.2

 
57
%
 
1,524.1

 
56
%
 
1,272.4

 
54
%
Service gross profit
401.9

 
13
%
 
366.0

 
14
%
 
305.5

 
12
%
Gross profit
2,194.1

 
70
%
 
1,890.1

 
70
%
 
1,577.9

 
66
%
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative
810.9

 
25
%
 
705.3

 
26
%
 
640.5

 
27
%
Research and development
328.6

 
11
%
 
239.6

 
9
%
 
197.4

 
8
%
Total operating expenses
1,139.5

 
36
%
 
944.9

 
35
%
 
837.9

 
35
%
Income from operations
1,054.6

 
34
%
 
945.2

 
35
%
 
740.0

 
31
%
Interest and other income, net
41.9

 
1
%
 
35.6

 
1
%
 
18.5

 
1
%
Income before taxes
1,096.5

 
35
%
 
980.8

 
36
%
 
758.5

 
32
%
Income tax expense
436.5

 
14
%
 
244.9

 
9
%
 
169.7

 
7
%
Net income
$
660.0

 
21
%
 
$
735.9

 
27
%
 
$
588.8

 
25
%

44

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