“With regard to income tax, we continue to estimate our 2023 pro forma tax rate to be between 22% and 24% of pretax income.”

In context

“e growth to be between 11% and 15%. We are adjusting our estimate and now expect our full year pro forma operating expense growth to be between 12% and 15%. We are also updating our estimate for noncash stock compensation expense to range $600 million to $620 million in 2023, narrowing the range from our previous estimate of $600 million to $630 million. We are increasing our estimate for other income which is comprised mostly of interest income, to total between $160 million and $180 million in 2023, an increase from our previous estimate of $140 million and $160 million. The increase primarily reflects the rise in interest rates. With regard to capital expenditures, we continue to estimate a range of $800 million to $1 billion, primarily for planned facility construction activities. With regard to income tax, we continue to estimate our 2023 pro forma tax rate to be between 22% and 24% of pretax income. That concludes our prepared comments. We will now open the call to your questions. Operator: [Operator Instructions] We go through the first question from the line of Larry Biegelsen, Wells Fargo. Larry Biegelsen: Gary, just two for me. One big picture question on AI and second, on procedure growth. So AI is obviously having its moment in the sun here, Gary. I'm curious, where is Intuitive spending time in applying AI? Is it imaging, movement of the robot, training? I'd love to hear your thoughts, and then I have one follow-up. Gary Guthart: Yes. Well, I'll start on AI. Let's talk about what it is. For us, it's a suite of digital tools that rests on a baseline and then can be built upon using various machine learning techniques including computer vision. We've been at it for some time.”