XML 66 R28.htm IDEA: XBRL DOCUMENT v3.3.1.900

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 02, 2016

Accounting Policies [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

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

January 2, 2016	Adjusted Basis Cost				Gross Unrealized Gains				Gross Unrealized (Losses)				Estimated Fair Value				Cash and Cash Equivalents
Cash	$	57,168			$	—			$	—			$	57,168			$	57,168
Level 1:
Bank time deposits	55,000				—				—				55,000				55,000
Money market funds	20,149				—				—				20,149				20,149
Subtotal	75,149				—				—				75,149				75,149
Level 2:
None	—				—				—				—				—
Level 3:
None	—				—				—				—				—
Total assets measured at fair value	$	132,317			$	—			$	—			$	132,317			$	132,317

January 3, 2015	Adjusted Basis Cost				Gross Unrealized Gains				Gross Unrealized (Losses)				Estimated Fair Value				Cash and Cash Equivalents
Cash	$	92,888			$	—			$	—			$	92,888			$	92,888
Level 1:
Bank time deposits	40,500				—				—				40,500				40,500
Money market funds	1,065				—				—				1,065				1,065
Subtotal	41,565				—				—				41,565				41,565
Level 2:
None	—				—				—				—				—
Level 3:
None	—				—				—				—				—
Total assets measured at fair value	$	134,453			$	—			$	—			$	134,453			$	134,453

Components of Property and Equipment

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows:

	Useful Lives
Building	39 years
Building improvements	7 to 10 years
Leasehold improvements	Lesser of useful life or term of lease
Machinery and equipment	5 years
Vehicles	5 years
Tooling	3 years
Computer equipment	2 to 6 years
Furniture and office equipment	2 to 6 years
Demonstration units	3 years

Property and equipment, net consists of the following (in thousands):

	January 2, 2016				January 3, 2015
Building and building improvements	$	78,877			$	30,678
Machinery and equipment	42,460				38,588
Land	23,738				22,894
Computer equipment	15,023				13,035
Tooling	13,079				12,317
Leasehold improvements	7,734				9,912
Furniture and office equipment	8,885				4,864
Demonstration units	973				972
Vehicles	45				45
Construction-in-progress	7,124				25,731
Total property and equipment	197,938				159,036
Accumulated depreciation and amortization	(65,472		)		(57,084		)
Total	$	132,466			$	101,952

Changes in Product Warranty Accrual

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

	Year Ended
	January 2, 2016				January 3, 2015				December 28, 2013
Warranty accrual, beginning of period	$	1,416			$	1,161			$	838
Accrual for warranties issued	800				1,144				1,560
Changes in pre-existing warranties (including changes in estimates)	61				138				52
Settlements made	(1,055		)		(1,027		)		(1,289		)
Warranty accrual, end of period	$	1,222			$	1,416			$	1,161

Computation of Basic and Diluted Net Income Per Share

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
	January 2, 2016				January 3, 2015				December 28, 2013
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest	$	81,500			$	74,363			$	55,721
Net income (loss) attributable to the noncontrolling interest	(1,800		)		1,845				(2,660		)
Net income attributable to Masimo Corporation stockholders	$	83,300			$	72,518			$	58,381
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$	83,300			$	72,518			$	58,381
Weighted-average shares outstanding - basic	51,311				54,708				56,690
Basic net income per share attributable to Masimo Corporation stockholders	$	1.62			$	1.33			$	1.03
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted-average shares outstanding	51,311				54,708				56,690
Diluted share equivalents: stock options and RSUs	2,396				863				790
Weighted-average shares outstanding - diluted	53,707				55,571				57,480
Diluted net income per share attributable to Masimo Corporation stockholders	$	1.55			$	1.30			$	1.02

Supplemental Schedule of Cash Flow

Supplemental Cash Flow Information (in thousands)

		Year ended
		January 2, 2016				January 3, 2015				December 28, 2013
Cash paid during the year for:
Interest (net of amounts capitalized)		$	2,293			$	469			$	28
Income taxes		36,194				19,863				29,979
Noncash investing and financing activities:
Assets acquired under capital leases		$	—			$	—			$	352
Unpaid purchases of property, plant and equipment		4,371				12,155				507
Unsettled common stock repurchases		4,815				—				—

X

- References

No definition available.

+ Details

Name:	us-gaap_AccountingPoliciesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a,b,bb)
-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2C
-URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.13)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 13
-Subparagraph b
-Article 5

+ Details

Name:	us-gaap_PropertyPlantAndEquipmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of supplemental cash flow information for the periods presented.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfCashFlowSupplementalDisclosuresTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

+ Details

Name:	us-gaap_ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=51674963&loc=d3e12565-110249

+ Details

Name:	us-gaap_ScheduleOfProductWarrantyLiabilityTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration