2017 Q2 Form 10-Q Financial Statement

#000103526717000101 Filed on July 21, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $758.8M $670.1M
YoY Change 13.24% 14.33%
Cost Of Revenue $228.7M $199.2M
YoY Change 14.81% -0.2%
Gross Profit $530.1M $470.9M
YoY Change 12.57% 21.84%
Gross Profit Margin 69.86% 70.27%
Selling, General & Admin $185.6M $170.8M
YoY Change 8.67% 4.59%
% of Gross Profit 35.01% 36.27%
Research & Development $84.60M $54.70M
YoY Change 54.66% 10.73%
% of Gross Profit 15.96% 11.62%
Depreciation & Amortization $23.90M $22.30M
YoY Change 7.17% 5.69%
% of Gross Profit 4.51% 4.74%
Operating Expenses $270.2M $225.5M
YoY Change 19.82% 6.02%
Operating Profit $259.9M $245.4M
YoY Change 5.91% 41.2%
Interest Expense $10.10M $8.000M
YoY Change 26.25% 73.91%
% of Operating Profit 3.89% 3.26%
Other Income/Expense, Net $10.10M $8.000M
YoY Change 26.25% 73.91%
Pretax Income $270.0M $253.4M
YoY Change 6.55% 42.04%
Income Tax $47.00M $68.90M
% Of Pretax Income 17.41% 27.19%
Net Earnings $223.0M $184.5M
YoY Change 20.87% 37.17%
Net Earnings / Revenue 29.39% 27.53%
Basic Earnings Per Share $2.01 $1.61
Diluted Earnings Per Share $1.94 $1.57
COMMON SHARES
Basic Shares Outstanding 111.0M shares 38.30M shares
Diluted Shares Outstanding 115.2M shares 39.20M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.823B $2.184B
YoY Change -16.53% 39.82%
Cash & Equivalents $696.5M $1.194B
Short-Term Investments $1.127B $990.0M
Other Short-Term Assets $124.0M $71.00M
YoY Change 74.65% -10.13%
Inventory $214.2M $169.2M
Prepaid Expenses
Receivables $481.1M $403.8M
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.642B $2.827B
YoY Change -6.55% 30.7%
LONG-TERM ASSETS
Property, Plant & Equipment $540.1M $440.1M
YoY Change 22.72% 7.71%
Goodwill $201.1M $201.1M
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments $1.600B $2.041B
YoY Change -21.61% 56.16%
Other Assets $115.0M $127.0M
YoY Change -9.45% -14.77%
Total Long-Term Assets $2.609B $2.953B
YoY Change -11.67% 34.78%
TOTAL ASSETS
Total Short-Term Assets $2.642B $2.827B
Total Long-Term Assets $2.609B $2.953B
Total Assets $5.251B $5.781B
YoY Change -9.17% 32.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $74.20M $64.80M
YoY Change 14.51% 0.15%
Accrued Expenses $237.0M $196.0M
YoY Change 20.92% 1.55%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $599.8M $489.5M
YoY Change 22.53% 3.18%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $128.7M $109.8M
YoY Change 17.21% 25.63%
Total Long-Term Liabilities $128.7M $109.8M
YoY Change 17.21% 25.63%
TOTAL LIABILITIES
Total Short-Term Liabilities $599.8M $489.5M
Total Long-Term Liabilities $128.7M $109.8M
Total Liabilities $728.5M $599.3M
YoY Change 21.56% 6.67%
SHAREHOLDERS EQUITY
Retained Earnings $482.3M $1.193B
YoY Change -59.57% 83.17%
Common Stock $4.050B $3.979B
YoY Change 1.77% 26.41%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $4.522B $5.182B
YoY Change
Total Liabilities & Shareholders Equity $5.251B $5.781B
YoY Change -9.17% 32.75%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $223.0M $184.5M
YoY Change 20.87% 37.17%
Depreciation, Depletion And Amortization $23.90M $22.30M
YoY Change 7.17% 5.69%
Cash From Operating Activities $216.5M $261.7M
YoY Change -17.27% 41.38%
INVESTING ACTIVITIES
Capital Expenditures -$55.30M -$11.40M
YoY Change 385.09% -16.18%
Acquisitions
YoY Change
Other Investing Activities -$298.5M -$225.8M
YoY Change 32.2% -6202.7%
Cash From Investing Activities -$353.8M -$237.2M
YoY Change 49.16% 2295.96%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 124.7M 188.5M
YoY Change -33.85% 385.82%
NET CHANGE
Cash From Operating Activities 216.5M 261.7M
Cash From Investing Activities -353.8M -237.2M
Cash From Financing Activities 124.7M 188.5M
Net Change In Cash -12.60M 213.0M
YoY Change -105.92% -0.47%
FREE CASH FLOW
Cash From Operating Activities $216.5M $261.7M
Capital Expenditures -$55.30M -$11.40M
Free Cash Flow $271.8M $273.1M
YoY Change -0.48% 37.44%

Facts In Submission

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us-gaap Earnings Per Share Basic
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Continuing Operations
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
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CY2016Q4 us-gaap Goodwill
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CY2017Q2 us-gaap Goodwill
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201100000 USD
CY2016Q2 us-gaap Gross Profit
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us-gaap Gross Profit
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CY2017Q2 us-gaap Gross Profit
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us-gaap Gross Profit
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253400000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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437900000 USD
CY2017Q2 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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267600000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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CY2016Q2 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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CY2017Q2 us-gaap Income Tax Expense Benefit
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46100000 USD
us-gaap Income Tax Expense Benefit
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66500000 USD
us-gaap Increase Decrease In Accounts Payable
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us-gaap Increase Decrease In Accounts Payable
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5700000 USD
us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Accounts Receivable
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50900000 USD
us-gaap Increase Decrease In Deferred Revenue
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3800000 USD
us-gaap Increase Decrease In Deferred Revenue
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us-gaap Increase Decrease In Inventories
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19500000 USD
us-gaap Increase Decrease In Inventories
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58300000 USD
us-gaap Increase Decrease In Other Operating Liabilities
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14300000 USD
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2017Q2 us-gaap Inventory Finished Goods Net Of Reserves
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CY2016Q4 us-gaap Inventory Raw Materials Net Of Reserves
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CY2016Q4 us-gaap Inventory Work In Process Net Of Reserves
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13400000 USD
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CY2017Q2 us-gaap Inventory Work In Process Net Of Reserves
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CY2017Q2 us-gaap Liabilities
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us-gaap Operating Expenses
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us-gaap Operating Income Loss
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us-gaap Operating Income Loss
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100000 USD
us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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200000 USD
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200000 USD
us-gaap Other Comprehensive Income Defined Benefit Plans Adjustment Net Of Tax Portion Attributable To Parent
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us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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500000 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Before Reclassification Adjustments Net Of Tax
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400000 USD
us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Before Reclassification Adjustments Net Of Tax
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4300000 USD
us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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CY2017Q2 us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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500000 USD
us-gaap Other Comprehensive Income Loss Available For Sale Securities Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Reclassification Adjustment From Aoci Realized Upon Sale Or Liquidation Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Reclassification Adjustments Net Of Tax
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CY2017Q2 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Reclassification Adjustments Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Before Reclassification Adjustments Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci Pension And Other Postretirement Benefit Plans Net Of Tax
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us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments To Acquire Marketable Securities
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us-gaap Payments To Acquire Productive Assets
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us-gaap Proceeds From Stock Plans
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us-gaap Sales Revenue Goods Net
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us-gaap Sales Revenue Net
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us-gaap Sales Revenue Services Net
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us-gaap Selling General And Administrative Expense
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
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0 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Expirations In Period
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CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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2500000 shares
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
464.98
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
418.66
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice
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us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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us-gaap Stock Issued During Period Shares Stock Options Exercised
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700000 shares
CY2016Q1 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
16000 shares
CY2016Q2 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0 shares
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0 shares
CY2017Q2 us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0 shares
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
2400000 shares
us-gaap Stock Repurchased During Period Value
StockRepurchasedDuringPeriodValue
8100000 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
5777800000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
4522300000 USD
us-gaap Treasury Stock Acquired Average Cost Per Share
TreasuryStockAcquiredAverageCostPerShare
516.54
CY2016Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
106000000 USD
CY2017Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
122300000 USD
us-gaap Unrecognized Tax Benefits Period Increase Decrease
UnrecognizedTaxBenefitsPeriodIncreaseDecrease
16300000 USD
CY2016Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
900000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
900000 shares
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1400000 shares
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1300000 shares
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
39200000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
38900000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
38400000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
38500000 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
38300000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
38000000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37000000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
37200000 shares
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">DESCRIPTION OF THE BUSINESS</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Intuitive Surgical, Inc. designs, manufactures, and markets </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">da Vinci</font><font style="font-family:inherit;font-size:10pt;font-style:italic;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> Surgical Systems and related instruments and accessories, which taken together, are advanced surgical systems that the Company believes enable a new generation of surgery. This advanced generation of surgery, which the Company calls </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">da Vinci</font><font style="font-family:inherit;font-size:10pt;"> Surgery, combines the benefits of minimally invasive surgery (&#8220;MIS&#8221;) for patients with the ease of use, precision, and dexterity of open surgery. A </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">da Vinci</font><font style="font-family:inherit;font-size:10pt;"> Surgical System consists of a surgeon&#8217;s console, a patient-side cart, and a high performance vision system. The </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">da Vinci</font><font style="font-family:inherit;font-size:10pt;"> Surgical System translates a surgeon&#8217;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 </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">da Vinci</font><font style="font-family:inherit;font-size:10pt;"> Surgical System is designed to provide its operating surgeons with intuitive control, range of motion, fine tissue manipulation capability, and Three Dimensional (&#8220;3-D&#8221;) High-Definition (&#8220;HD&#8221;) vision while simultaneously allowing surgeons to work through the small ports enabled by MIS procedures.</font></div></div>

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