Summary of Significant Accounting Policies (Tables)

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



	Fair Value Measurement as of December 28, 2013 using:
	Level 1		Level 2		Level 3		Total
Assets:
U.S. Treasuries	$	25,997	$	—	$	—	$	25,997
Money Market funds	1,793		—		—		1,793
Total	$	27,790	$	—	$	—	$	27,790
	Fair Value Measurement as of December 29, 2012 using:
Assets:
U.S. Treasuries	$	31,999	$	—	$	—	$	31,999
Money Market funds	1,623		—		—		1,623
Total	$	33,622	$	—	$	—	$	33,622

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



	Year ended December 28, 2013			Year ended December 29, 2012			Year ended December 31, 2011
Warranty accrual, beginning of period	$	838		$	698		$	544
Provision for warranty costs	3,117			2,489			2,592
Warranty expenditures	(2,794		)	(2,349		)	(2,438		)
Warranty accrual, end of period	$	1,161		$	838		$	698

The computation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share data):



	Year ended
	December 28, 2013		December 29, 2012		December 31, 2011
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest	$	55,721	$	61,938	$	64,053
Net (income) loss attributable to the noncontrolling interest	2,660		334		(353		)
Net income attributable to Masimo Corporation stockholders	$	58,381	$	62,272	$	63,700
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$	58,381	$	62,272	$	63,700
Weighted average shares outstanding - basic	56,690		57,445		59,659
Basic net income per share attributable to Masimo Corporation stockholders	$	1.03	$	1.08	$	1.07
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted average shares outstanding	56,690		57,445		59,659
Diluted share equivalent: stock options	790		929		1,186
Weighted average shares outstanding - diluted	57,480		58,374		60,845
Diluted net income per share attributable to Masimo Corporation stockholders	$	1.02	$	1.07	$	1.05

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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