SEC Filings

10-K
INTUITIVE SURGICAL INC filed this Form 10-K on 02/02/2018
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Restricted Stock Units. Equity awards granted to employees and non-employee directors include a mix of stock options and RSUs. The RSUs to employees vest in one-fourth increments annually over a four-year period. Prior to 2016, initial RSUs granted to new non-employee directors are vested in one-third increments over a three-year period. Annual RSU grants to non-employee directors vest one year from the date of grant. Since 2016, new non-employee directors receive pro-rated RSU grants that vest on the same term as the annual RSU grants. 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 2017 under all the stock plans was as follows (in millions, except per share amounts):
 
Stock Options Outstanding
 
Number
Outstanding
 
Weighted Average
Exercise Price Per
Share
Balance at December 31, 2016
9.3

 
$
148.36

Options granted
0.7

 
$
287.11

Options exercised
(2.7
)
 
$
140.70

Options forfeited/expired
(0.1
)
 
$
204.94

Balance at December 31, 2017
7.2

 
$
164.16

The aggregate intrinsic value of stock options exercised under our stock plans determined as of the date of option exercise was $379.9 million, $273.3 million, and $196.5 million during the years ended December 31, 2017, 2016, and 2015, respectively. Cash received from option exercises and employee stock purchase plans for the years ended December 31, 2017, 2016, and 2015, was $415.5 million, $580.9 million, and $361.1 million, respectively. The income tax benefit from stock options exercised was $118.9 million for the year ended December 31, 2017.
The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2017 (number of shares and aggregate intrinsic value in millions):
 
 
Options Outstanding
 
Options Exercisable
Range of
Exercise Prices
 
Number
of Shares
 
Weighted
Average
Remaining
Contractual Life
 
Weighted
Average
Exercise Price
Per Share
 
Aggregate
Intrinsic
Value (1)
 
Number
of Shares
 
Weighted
Average
Remaining
Contractual Life
 
Weighted
Average
Exercise Price
Per Share
 
Aggregate
Intrinsic
Value (1)
$31.96 - $113.73
 
1.6

 
2.3
 
$
92.43

 
 
 
1.6

 
 
 
$
92.43

 
 
$114.61 - $153.05
 
1.5

 
5.9
 
$
140.19

 
 
 
1.4

 
 
 
$
139.87

 
 
$155.57 - $172.44
 
1.6

 
5.4
 
$
169.56

 
 
 
1.4

 
 
 
$
169.67

 
 
$172.76 - $213.77
 
1.4

 
6.7
 
$
184.30

 
 
 
1.0

 
 
 
$
185.29

 
 
$213.97 - $391.04
 
1.1

 
9.1
 
$
266.31

 
 
 
0.3

 
 
 
$
250.46

 
 
Total
 
7.2

 
5.6
 
$
164.16

 
$
1,447.2

 
5.7

 
4.9
 
$
147.32

 
$
1,234.4

 
(1)
The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $364.94 at December 31, 2017, 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, 2017, a total of 7.1 million shares of stock options vested and expected to vest had a weighted average remaining contractual life of 5.6 years, an aggregate intrinsic value of $1,429.6 million, and a weighted average exercise price of $162.50.
Restricted Stock Units Information
RSU activity for the year ended December 31, 2017, was as follows (in millions, except per share amounts):
 

Shares
 
Weighted Average
Grant Date Fair Value
Unvested balance at December 31, 2016
1.8

 
$
174.72

Granted
1.0

 
$
249.34

Vested
(0.6
)
 
$
171.42

Forfeited
(0.1
)
 
$
204.08

Unvested balance at December 31, 2017
2.1

 
$
209.55


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