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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 02, 2016

Accounting Policies [Abstract]

Fair Value Hierarchy for Financial Assets

The following tables represent the Company’s financial assets (in thousands), measured at fair value on a recurring basis:

July 2, 2016	Adjusted Basis Cost				Gross Unrealized Gains				Gross Unrealized (Losses)				Estimated Fair Value				Cash and Cash Equivalents
Cash	$	61,055			$	—			$	—			$	61,055			$	61,055
Level 1:
Bank Time Deposits	55,000				—				—				55,000				55,000
Money Market Funds	—				—				—				—				—
Subtotal	55,000				—				—				55,000				55,000
Level 2:
None	—				—				—				—				—
Level 3:
None	—				—				—				—				—
Total assets measured at fair value	$	116,055			$	—			$	—			$	116,055			$	116,055

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 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

Changes in Product Warranty Accrual

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

	Six Months Ended
	July 2, 2016				July 4, 2015
Warranty accrual, beginning of period	$	1,222			$	1,416
Accrual for warranties issued	521				585
Changes to pre-existing warranties (including changes in estimates)	(40		)		(134		)
Settlements made	(488		)		(490		)
Warranty accrual, end of period	$	1,215			$	1,377

Schedule of Change in Accumulated Other Comprehensive Income

The change in accumulated other comprehensive loss was as follows (in thousands):

	Six Months Ended   July 2, 2016
Accumulated other comprehensive loss, beginning of period	$	(4,739	)
Foreign currency translation adjustments	190
Accumulated other comprehensive loss, end of period	$	(4,549	)

Reconciliation of Basic and Diluted Net Income Per Share

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

	Three Months Ended								Six Months Ended
	July 2, 2016				July 4, 2015				July 2, 2016				July 4, 2015
Net income attributable to Masimo Corporation stockholders:
Net income including noncontrolling interest	$	30,023			$	18,696			$	57,600			$	38,518
Net loss attributable to the noncontrolling interest	—				655				—				1,356
Net income attributable to Masimo Corporation stockholders	$	30,023			$	19,351			$	57,600			$	39,874
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$	30,023			$	19,351			$	57,600			$	39,874
Weighted-average shares outstanding - basic	49,256				51,300				49,340				51,993
Basic net income per share attributable to Masimo Corporation stockholders	$	0.61			$	0.38			$	1.17			$	0.77
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted-average shares outstanding - basic	49,256				51,300				49,340				51,993
Diluted share equivalent: stock options and RSUs	3,447				2,375				3,064				1,915
Weighted-average shares outstanding - diluted	52,703				53,675				52,404				53,908
Diluted net income per share attributable to Masimo Corporation stockholders	$	0.57			$	0.36			$	1.10			$	0.74

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

Supplemental cash flow information includes the following (in thousands):

	Six Months Ended
	July 2, 2016				July 4, 2015
Cash paid during the year for:
Interest (net of amounts capitalized)	$	2,603			$	952
Income taxes	19,292				23,523
Noncash investing and financing activities:
Assets acquired under capital leases	$	—			$	36
Unpaid purchases of property, plant and equipment	1,168				6,251
Unsettled common stock proceeds from option exercises	187				25
Unsettled stock repurchases	—				—

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