v2.4.0.6

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 29, 2012

Fair Value Hierarchy for Financial Assets

The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands):

		Fair Value Measurement as of September 29, 2012  using:
		Level 1				Level 2				Level 3				Total
Assets:
U.S. Treasuries		$	67,993			$	—			$	—			$	67,993
Money Market funds			1,627				—				—				1,627
Total		$	69,620			$	—			$	—			$	69,620
		Fair Value Measurement as of December 31, 2011  using:
		Level 1				Level 2				Level 3				Total
Assets:
U.S. Treasuries		$	67,800			$	—			$	—			$	67,800
Money Market funds			1,337				—				—				1,337
Total		$	69,137			$	—			$	—			$	69,137

Changes in Product Warranty Accrual

Changes in the product warranty accrual were as follows (in thousands):

		Nine Months Ended
		September 29, 2012				October 1, 2011
Warranty accrual, beginning of period		$	698			$	544
Provision for warranty costs			1,866				1,919
Warranty expenditures			(1,790	)			(1,823	)
Warranty accrual, end of period		$	774			$	640

Reconciliation of Basic and Diluted Net Income Per Share

nine months ended September 29, 2012 and October 1, 2011. A reconciliation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share amounts):

		Three Months Ended								Nine Months Ended
		September 29, 2012				October 1, 2011				September 29, 2012				October 1, 2011
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest		$	13,563			$	14,824			$	47,097			$	49,887
Net (income) loss attributable to the noncontrolling interest			231				5				168				(7	)
Net income attributable to Masimo Corporation stockholders		$	13,794			$	14,829			$	47,265			$	49,880

		Three Months Ended								Nine Months Ended
		September 29, 2012				October 1, 2011				September 29, 2012				October 1, 2011
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders		$	13,794			$	14,829			$	47,265			$	49,880
Weighted average shares outstanding - basic			57,201				59,971				57,507				59,804
Basic net income per share attributable to Masimo Corporation stockholders		$	0.24			$	0.25			$	0.82			$	0.83
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted average shares outstanding - basic			57,201				59,971				57,507				59,804
Diluted share equivalent: stock options			944				1,115				947				1,278
Weighted average shares outstanding – diluted			58,145				61,086				58,454				61,082
Diluted net income per share attributable to Masimo Corporation stockholders		$	0.24			$	0.24			$	0.81			$	0.82

X

- Definition

Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.



Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-Subparagraph a, b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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Tabular disclosure of the changes in the guarantor's aggregate product warranty liability, including the beginning balance of the aggregate product warranty liability, the aggregate reductions in that liability for payments made (in cash or in kind) under the warranty, the aggregate changes in the liability for accruals related to product warranties issued during the reporting period, the aggregate changes in the liability for accruals related to preexisting warranties (including adjustments related to changes in estimates), and the ending balance of the aggregate product warranty liability.

+ References

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