Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 30, 2017

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



	Useful Lives
Aircraft and components	10 to 20 years
Buildings	39 years
Building improvements	7 to 15 years
Computer equipment	2 to 6 years
Demonstration units	3 years
Furniture and office equipment	2 to 6 years
Leasehold improvements	Lesser of useful life or term of lease
Machinery and equipment	5 to 7 years
Vehicles	5 years
Tooling	3 years

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



	December 30, 2017			December 31, 2016
Building and building improvements	$	87,999		$	85,966
Machinery and equipment	47,556			41,683
Aircraft and vehicles	25,329			45
Land	23,762			23,762
Computer equipment	15,789			13,549
Tooling	13,754			12,895
Leasehold improvements	15,326			8,289
Furniture and office equipment	9,967			9,669
Demonstration units	486			448
Construction-in-progress (CIP)	6,365			7,923
Total property and equipment	246,333			204,229
Accumulated depreciation and amortization	(82,237		)	(68,233		)
Total property and equipment, net	$	164,096		$	135,996

Changes in Product Warranty Accrual

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



	Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016
Warranty accrual, beginning of period	$	910		$	1,222		$	1,416
Accrual for warranties issued (including specific accrual)	1,061			871			800
Changes in pre-existing warranties (including changes in estimates)	332			110			61
Settlements made	(1,154		)	(1,293		)	(1,055		)
Warranty accrual, end of period	$	1,149		$	910		$	1,222

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
	December 30, 2017		December 31, 2016		January 2, 2016
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest	$	131,616	$	300,666	$	81,500
Net income (loss) attributable to noncontrolling interest	—		—		(1,800		)
Net income attributable to Masimo Corporation stockholders	$	131,616	$	300,666	$	83,300
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$	131,616	$	300,666	$	83,300
Weighted-average shares outstanding - basic	51,516		49,530		51,311
Basic net income per share attributable to Masimo Corporation stockholders	$	2.55	$	6.07	$	1.62
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted-average shares outstanding	51,516		49,530		51,311
Diluted share equivalents: stock options and RSUs	4,358		3,665		2,396
Weighted-average shares outstanding - diluted	55,874		53,195		53,707
Diluted net income per share attributable to Masimo Corporation stockholders	$	2.36	$	5.65	$	1.55

Supplemental Schedule of Cash Flow

Supplemental Cash Flow Information (in thousands)



	Year ended
	December 30, 2017		December 31, 2016		January 2, 2016
Cash paid during the year for:
Interest (net of amounts capitalized)	$	551	$	4,052	$	2,293
Income taxes	91,061		31,230		36,194

Noncash investing and financing activities:
Unpaid purchases of property, plant and equipment	1,559		2,009		4,371
Unsettled common stock proceeds	161		165		—
Unsettled common stock repurchases	1,988		—		4,815

Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	315,302	$	305,970	$	132,317
Restricted cash	181		2,228		145
Total cash, cash equivalents and restricted cash shown in the statement of cash flow	$	315,483	$	308,198	$	132,462