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Related Party Transactions (notes)
 3 Months Ended
Apr. 02, 2016
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
Related Party Transactions
The Company’s Chairman and Chief Executive Officer is also the Chairman and Chief Executive Officer of Cercacor. The Company is a party to the following agreements with Cercacor:
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Cross-Licensing Agreement - The Company is party to a Cross Licensing Agreement with Cercacor, (the Cross-Licensing Agreement), which governs each party’s rights to certain intellectual property held by the two companies. The Company is subject to certain annual minimum aggregate royalty obligations for use of the rainbow® licensed technology. The current annual minimum royalty obligation is $5.0 million. Actual aggregate royalty liabilities to Cercacor under the license were $1.5 million and $1.3 million for the three months ended April 2, 2016 and April 4, 2015, respectively, the latter of which was eliminated in consolidation. Pursuant to the terms of the Cross Licensing Agreement, the Company also had sales of certain integrated circuit boards to Cercacor of less than $0.1 million for the three months ended April 2, 2016. There were no similar sales during the three months ended April 4, 2015.
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Administrative Services Agreement - The Company is a party to an administrative services agreement with Cercacor (G&A Services Agreement), which governs certain general and administrative services that the Company provides to Cercacor. Amounts charged by the Company pursuant to the G&A Services Agreement were less than $0.1 million for each of the three months ended April 2, 2016 and April 4, 2015.
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Consulting Services Agreement - The Company is also a party to a consulting services agreement (Consulting Agreement) with Cercacor that governs certain engineering consulting and clinical studies support services that Cercacor may provide to the Company from time-to-time. Expenses incurred by the Company related to this Consulting Agreement were less than $0.1 million for the three months ended April 2, 2016 and approximately $0.1 million for the three months ended April 4, 2015.
Net amounts due from (due to) Cercacor at April 2, 2016 and January 2, 2016 were approximately $0.1 million and $(1.1) million, respectively.
The Company’s Chief Executive Officer is also the Chairman of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation), a non-profit organization that was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. The Company’s Chief Financial Officer is also a Director of the Masimo Foundation.
The Company’s Chief Executive Officer is the Chairman of both the Patient Safety Movement Foundation (PSMF), a non-profit organization that was founded in 2013 to work with hospitals, medical technology companies and patient advocates to unite the healthcare ecosystem and eliminate the more than 200,000 U.S. preventable hospital deaths that occur every year by 2020, and the Patient Safety Movement Coalition (PSMC), a not-for-profit social welfare organization that was founded in 2013 to promote patient safety legislation. The Company’s Chief Financial Officer serves as the Treasurer and Secretary of PSMF, as well as the Secretary of PSMC.
The Company’s Chief Executive Officer serves on the board of directors of Atheer Labs, which is working with the Company on the development of next generation Root® applications, as well as on the boards of directors of Children’s Hospital of Orange County and CHOC Children’s at Mission Hospital, two non-profit hospitals devoted exclusively to caring for children, both of which are also customers of the Company.