Variable Interest Entities (VIEs) (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Consolidating Schedules of Balance Sheets

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



	January 2, 2016
Consolidating Balance Sheet:	Masimo Corp			Cercacor			Cercacor Elim			Total
ASSETS
Cash and cash equivalents	$	131,554		$	763		$	—		$	132,317
Accounts receivable, net	80,937			23			—			80,960
Inventories	62,038			—			—			62,038
Prepaid income taxes	2,342			62			—			2,404
Other current assets	21,230			1,277			(1,084		)	21,423
Deferred cost of goods sold	66,844			—			—			66,844
Property and equipment, net	131,877			589			—			132,466
Intangible assets, net	29,045			2,858			(4,347		)	27,556
Goodwill	20,394			—			—			20,394
Deferred income taxes	44,320			—			—			44,320
Other assets	11,013			—			—			11,013
Total assets	$	601,594		$	5,572		$	(5,431	)	$	601,735
LIABILITIES
Accounts payable	$	25,798		$	67		$	—		$	25,865
Accrued compensation	37,715			700			—			38,415
Accrued liabilities	45,142			164			(1,084		)	44,222
Income taxes payable	2,565			212			—			2,777
Deferred revenue	21,280			376			(376		)	21,280
Current portion of capital lease obligations	74			—			—			74
Deferred revenue	298			3,406			(3,406		)	298
Long-term debt	185,071			—			—			185,071
Other liabilities	7,964			57			—			8,021
EQUITY
Common stock	50			14			(14		)	50
Treasury stock	(340,873		)	(100		)	100			(340,873		)
Additional paid-in capital	332,417			842			(842		)	332,417
Accumulated other comprehensive loss	(4,739		)	—			—			(4,739		)
Retained earnings (deficit)	288,832			(166		)	(106		)	288,560
Total Masimo Corporation stockholders’ equity	275,687			590			(862		)	275,415
Noncontrolling interest	—			—			297			297
Total equity	275,687			590			(565		)	275,712
Total liabilities and equity	$	601,594		$	5,572		$	(5,431	)	$	601,735

Condensed Consolidating Schedules of Statements of Comprehensive Income



	Year ended January 2, 2016												Year ended January 3, 2015
Consolidating Statements of Operations:	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
Cost of goods sold	226,788			—			(6,660		)	220,128			201,334			—			(5,470		)	195,864
Gross profit	403,323			6,910			(250		)	409,983			385,309			5,970			(500		)	390,779
Operating expenses:
Selling, general and administrative	250,627			2,348			(250		)	252,725			238,674			2,842			(500		)	241,016
Research and development	50,292			6,325			—			56,617			53,449			3,132			—			56,581
Litigation settlement, award and/or defense costs	(19,609		)	—			—			(19,609		)	(8,010		)	(2,321		)	—			(10,331		)
Total operating expenses	281,310			8,673			(250		)	289,733			284,113			3,653			(500		)	287,266
Operating income (loss)	122,013			(1,763		)	—			120,250			101,196			2,317			—			103,513
Non-operating expense (income)	3,910			(571		)	566			3,905			1,505			(33		)	—			1,472
Income (loss) before provision for income taxes	118,103			(1,192		)	(566		)	116,345			99,691			2,350			—			102,041
Provision for income taxes	34,803			42			—			34,845			27,173			505			—			27,678
Net income (loss) including noncontrolling interests	83,300			(1,234		)	(566		)	81,500			72,518			1,845			—			74,363
Net (loss) income attributable to noncontrolling interests	—			—			(1,800		)	(1,800		)	—			—			1,845			1,845
Net income (loss) attributable to Masimo Corporation stockholders	$	83,300		$	(1,234	)	$	1,234		$	83,300		$	72,518		$	1,845		$	(1,845	)	$	72,518