Variable Interest Entities (VIEs) (Tables)

Below are condensed consolidating schedules of the Balance Sheets as of December 28, 2013 and December 29, 2012, and Statements of Comprehensive Income for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 reflecting Masimo Corporation, Cercacor and related eliminations (in thousands).



	December 28, 2013												December 29, 2012
Balance Sheets:	Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp			Cercacor		Cercacor Elim			Total
ASSETS
Cash and cash equivalents	$	95,296		$	170		$	—		$	95,466		$	71,259		$	295	$	—		$	71,554
Receivables, net	84,059									84,059			75,478			10		(447		)	75,041
Inventories	56,813			—			—			56,813			47,358			—		—			47,358
Prepaid expenses	12,798			185			—			12,983			8,390			197		—			8,587
Deferred tax asset, current	19,636			—			—			19,636			12,048			863		—			12,911
Other current assets	2,841			—			—			2,841			3,896			—		—			3,896
Deferred cost of goods sold	61,714			—			—			61,714			52,103			—		—			52,103
Property and equipment, net	22,931			1,935			—			24,866			21,450			2,474		—			23,924
Intangible assets, net	30,452			4,683			(7,031		)	28,104			28,069			4,200		(4,906		)	27,363
Goodwill	22,793			—			—			22,793			22,824			—		—			22,824
Deferred tax asset, long term	22,565						—			22,565			20,119			959		—			21,078
Other assets, long term	6,787			2,021			(1,986		)	6,822			7,985			637		(600		)	8,022
Total assets	$	438,685		$	8,994		$	(9,017	)	$	438,662		$	370,979		$	9,635	$	(5,953	)	$	374,661
LIABILITIES
Accounts payable	$	27,418		$	586		$	—		$	28,004		$	26,412		$	621	$	—		$	27,033
Accrued liabilities and compensation	51,205			1,309			—			52,514			40,622			1,494		(447		)	41,669
Income taxes payable	2,205			201			—			2,406			1,504			—		—			1,504
Deferred revenue, current	20,755			500			(500		)	20,755			19,278			375		(375		)	19,278
Current portion of capital lease obligations	111			—			—			111			55			—		—			55
Deferred revenue, long-term	566			6,531			(6,531		)	566			576			4,531		(4,531		)	576
Capital lease obligations, less current portion	225			—			—			225			60			—		—			60
Other liabilities	9,459			207			(1,986		)	7,680			9,121			297		(600		)	8,818
EQUITY (DEFICIT)
Common stock	57			11			(11		)	57			57			11		(11		)	57
Treasury stock	(83,454		)	—						(83,454		)	(63,664		)	—		—			(63,664		)
Additional paid-in capital	273,129			427			(427		)	273,129			258,783			424		(424		)	258,783
Accumulated other comprehensive income	3,995			—			—			3,995			3,542			—		—			3,542
Retained earnings (deficit)	133,014			(778		)	506			132,742			74,633			1,882		(2,154		)	74,361
Total Masimo Corporation stockholders’ equity (deficit)	326,741			(340		)	68			326,469			273,351			2,317		(2,589		)	273,079
Noncontrolling interest	—			—			(68		)	(68		)	—			—		2,589			2,589
Total equity	326,741			(340		)	—			326,401			273,351			2,317		—			275,668
Total liabilities and equity (deficit)	$	438,685		$	8,994		$	(9,017	)	$	438,662		$	370,979		$	9,635	$	(5,953	)	$	374,661



	Year ended December 28, 2013												Year ended December 29, 2012												Year ended December 31, 2011
Statements of Comprehensive Income:	Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp		Cercacor			Cercacor Elim			Total
Total revenue	$	547,245		$	5,732		$	(5,732	)	$	547,245		$	493,233		$	5,375		$	(5,375	)	$	493,233		$	438,988	$	5,375		$	(5,375	)	$	438,988
Cost of goods sold	193,775			—			(5,357		)	188,418			171,982			—			(5,000		)	166,982			149,854		—			(5,000		)	144,854
Gross profit (loss)	353,470			5,732			(375		)	358,827			321,251			5,375			(375		)	326,251			289,134		5,375			(375		)	294,134
Operating expenses:
Selling, general and administrative	213,374			2,470			(375		)	215,469			191,870			2,453			(375		)	193,948			167,634		1,946			(375		)	169,205
Research and development	51,762			3,869			—			55,631			43,412			3,665			—			47,077			35,053		3,359			—			38,412
Litigation award and defense costs	8,010			—			—			8,010			—			—			—			—			—		—			—			—
Total operating expenses	273,146			6,339			(375		)	279,110			235,282			6,118			(375		)	241,025			202,687		5,305			(375		)	207,617
Operating income	80,324			(607		)	—			79,717			85,969			(743		)	—			85,226			86,447		70			—			86,517
Non-operating income (expense)	(3,991		)	—			—			(3,991		)	(1,404		)	(1		)	—			(1,405		)	26		(12		)	—			14
Income before provision for income taxes	76,333			(607		)	—			75,726			84,565			(744		)	—			83,821			86,473		58			—			86,531
Provision for (benefit from) income taxes	17,952			2,053			—			20,005			22,293			(410		)	—			21,883			22,773		(295		)	—			22,478
Net income (loss) including noncontrolling interests	58,381			(2,660		)	—			55,721			62,272			(334		)	—			61,938			63,700		353			—			64,053
Net (income) loss attributable to noncontrolling interests				—			2,660			2,660			—			—			334			334			—		—			(353		)	(353		)
Net income (loss) attributable to Masimo Corporation stockholders	58,381			(2,660		)	2,660			58,381			62,272			(334		)	334			62,272			63,700		353			(353		)	63,700
Other comprehensive income, net of tax:
Foreign currency translation adjustments	453			—			—			453			2,268			—			—			2,268			349		—			—			349
Comprehensive income attributable to Masimo Corporation stockholders	$	58,834		$	(2,660	)	$	2,660		$	58,834		$	64,540		$	(334	)	$	334		$	64,540		$	64,049	$	353		$	(353	)	$	64,049