SEC Filings

10-K
INTUITIVE SURGICAL INC filed this Form 10-K on 02/02/2018
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The following table summarizes our revenue and da Vinci Surgical System unit shipments for the years ended December 31, 2017, 2016, and 2015, respectively (in millions, except percentages and unit shipments):
 
Years Ended December 31,
 
2017
 
2016
 
2015
Revenue
 
 
 
 
 
Instruments and accessories
$
1,636.9

 
$
1,395.8

 
$
1,197.7

Systems
910.2

 
791.6

 
721.9

Total product revenue
2,547.1

 
2,187.4

 
1,919.6

Services
581.8

 
517.0

 
464.8

Total revenue
$
3,128.9

 
$
2,704.4

 
$
2,384.4

United States
$
2,279.8

 
$
1,955.0

 
$
1,695.8

OUS
849.1

 
749.4

 
688.6

Total revenue
$
3,128.9

 
$
2,704.4

 
$
2,384.4

% of Revenue - U.S.
73
%
 
72
%
 
71
%
% of Revenue - OUS
27
%
 
28
%
 
29
%
 
 
 
 
 
 
Instruments and accessories
$
1,636.9

 
$
1,395.8

 
$
1,197.7

Services
581.8

 
517.0

 
464.8

Operating lease (1)
25.9

 
16.6

 
7.0

Total recurring revenue (1)
$
2,244.6

 
$
1,929.4

 
$
1,669.5

% of Total revenue
72
%
 
71
%
 
70
%
 
 
 
 
 
 
Unit Shipments by Region:
 
 
 
 
 
U.S. unit shipments
417

 
338

 
298

OUS unit shipments
267

 
199

 
194

Total unit shipments*
684

 
537

 
492

*Systems shipped under operating leases (included in total unit shipments)
108

 
62

 
43

 
 
 
 
 
 
Unit Shipments involving System Trade-ins:
 
 
 
 
 
Unit shipments involving trade-ins
163

 
156

 
151

Unit shipments not involving trade-ins
521

 
381

 
341

 
 
 
 
 
 
(1) Starting fourth quarter of 2017, we included operating lease revenue that is classified as systems revenue, as a component of total recurring revenue and revised prior years’ total recurring revenue for comparability purposes.
Product Revenue
2016-2017
Product revenue increased by 16% to $2.5 billion for the year ended December 31, 2017, compared with $2.2 billion for the year ended December 31, 2016.
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. The increase in instrument and accessory revenue was driven by procedure growth of approximately 16% and higher sales of our advanced instruments, partially offset by customer efficiency gains and timing of orders. U.S. procedure growth in 2017 was approximately 14% compared with 13% in 2016 and was driven by growth in general surgery procedures, most notably hernia repair and colorectal procedures; thoracic procedures; and a moderate growth in the more mature gynecologic and urologic procedure categories. OUS procedure growth was approximately 23% for 2017, compared with 24% for 2016, driven by continued growth in dVP procedures, earlier stage growth in kidney cancer procedures, general surgery, and gynecology. Geographically, OUS procedure growth for the year ended December 31, 2017, was driven by strong procedure expansion in Japan, China, and South Korea. Procedure growth varied by country in our European market.
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. Higher systems revenue was primarily driven by higher system shipments and partly offset

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