Variable Interest Entities (VIEs) (Tables)

12 Months Ended

Jan. 02, 2016

Condensed Consolidating Schedules of Balance Sheets

The consolidating balance sheets as of January 2, 2016 and January 3, 2015, and statements of operations for the years ended January 2, 2016, January 3, 2015 and December 28, 2013 reflecting the Company, Cercacor and related eliminations (in thousands) are as follows.



	January 2, 2016												January 3, 2015
Consolidating Balance Sheets:	Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp			Cercacor			Cercacor Elim			Total
ASSETS
Cash and cash equivalents	$	131,554		$	763		$	—		$	132,317		$	133,509		$	944		$	—		$	134,453
Accounts receivable, net	80,937			23			—			80,960			71,017			—			—			71,017
Inventories	62,038			—			—			62,038			69,718			—			—			69,718
Prepaid income taxes	2,342			62			—			2,404			324			93			—			417
Other current assets	21,230			1,277			(1,084		)	21,423			21,446			203			(178		)	21,471
Deferred cost of goods sold	66,844			—			—			66,844			67,485			—			—			67,485
Property and equipment, net	131,877			589			—			132,466			100,730			1,222			—			101,952
Intangible assets, net	29,045			2,858			(4,347		)	27,556			29,564			4,738			(6,531		)	27,771
Goodwill	20,394			—			—			20,394			20,979			—			—			20,979
Deferred income taxes	44,320			—			—			44,320			42,258			—			—			42,258
Other assets	11,013			—			—			11,013			7,450			2,021			(1,986		)	7,485
Total assets	$	601,594		$	5,572		$	(5,431	)	$	601,735		$	564,480		$	9,221		$	(8,695	)	$	565,006
LIABILITIES
Accounts payable	$	25,798		$	67		$	—		$	25,865		$	38,003		$	42		$	—		$	38,045
Accrued compensation	37,715			700			—			38,415			32,985			615			—			33,600
Accrued liabilities	45,142			164			(1,084		)	44,222			24,492			227			(178		)	24,541
Income taxes payable	2,565			212			—			2,777			6,350			212			—			6,562
Deferred revenue	21,280			376			(376		)	21,280			21,067			500			(500		)	21,067
Current portion of capital lease obligations	74			—			—			74			79			—			—			79
Deferred revenue	298			3,406			(3,406		)	298			453			6,031			(6,031		)	453
Long term debt	185,071			—			—			185,071			125,145			—			—			125,145
Other liabilities	7,964			57			—			8,021			9,634			125			(1,986		)	7,773
EQUITY
Common stock	50			14			(14		)	50			52			11			(11		)	52
Treasury stock	(340,873		)	(100		)	100			(340,873		)	(185,906		)	(100		)	100			(185,906		)
Additional paid-in capital	332,417			842			(842		)	332,417			288,686			491			(491		)	288,686
Accumulated other comprehensive loss	(4,739		)	—			—			(4,739		)	(2,093		)	—			—			(2,093		)
Retained earnings (deficit)	288,832			(166		)	(106		)	288,560			205,533			1,067			(1,340		)	205,260
Total Masimo Corporation stockholders’ equity	275,687			590			(862		)	275,415			306,272			1,469			(1,742		)	305,999
Noncontrolling interest	—			—			297			297			—			—			1,742			1,742
Total equity	275,687			590			(565		)	275,712			306,272			1,469			—			307,741
Total liabilities and equity	$	601,594		$	5,572		$	(5,431	)	$	601,735		$	564,480		$	9,221		$	(8,695	)	$	565,006

Condensed Consolidating Schedules of Statements of Comprehensive Income



	Year ended January 2, 2016												Year ended January 3, 2015												Year ended December 28, 2013
Consolidating Statements of Operations:	Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp		Cercacor			Cercacor Elim			Total
Total revenue	$	630,111		$	6,910		$	(6,910	)	$	630,111		$	586,643		$	5,970		$	(5,970	)	$	586,643		$	547,245	$	5,732		$	(5,732	)	$	547,245
Cost of goods sold	226,788			—			(6,660		)	220,128			201,334			—			(5,470		)	195,864			193,775		—			(5,357		)	188,418
Gross profit	403,323			6,910			(250		)	409,983			385,309			5,970			(500		)	390,779			353,470		5,732			(375		)	358,827
Operating expenses:
Selling, general and administrative	250,627			2,348			(250		)	252,725			238,674			2,842			(500		)	241,016			213,374		2,470			(375		)	215,469
Research and development	50,292			6,325			—			56,617			53,449			3,132			—			56,581			51,762		3,869			—			55,631
Litigation settlement, award and/or defense costs	(19,609		)	—			—			(19,609		)	(8,010		)	(2,321		)	—			(10,331		)	8,010		—			—			8,010
Total operating expenses	281,310			8,673			(250		)	289,733			284,113			3,653			(500		)	287,266			273,146		6,339			(375		)	279,110
Operating income (loss)	122,013			(1,763		)	—			120,250			101,196			2,317			—			103,513			80,324		(607		)	—			79,717
Non-operating expense (income)	3,910			(571		)	566			3,905			1,505			(33		)	—			1,472			3,991		—			—			3,991
Income (loss) before provision for income taxes	118,103			(1,192		)	(566		)	116,345			99,691			2,350			—			102,041			76,333		(607		)	—			75,726
Provision for income taxes	34,803			42			—			34,845			27,173			505			—			27,678			17,952		2,053			—			20,005
Net income (loss) including noncontrolling interests	83,300			(1,234		)	(566		)	81,500			72,518			1,845			—			74,363			58,381		(2,660		)	—			55,721
Net (loss) income attributable to noncontrolling interests	—			—			(1,800		)	(1,800		)	—			—			1,845			1,845			—		—			(2,660		)	(2,660		)
Net income (loss) attributable to Masimo Corporation stockholders	$	83,300		$	(1,234	)	$	1,234		$	83,300		$	72,518		$	1,845		$	(1,845	)	$	72,518		$	58,381	$	(2,660	)	$	2,660		$	58,381