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Segment and Enterprise Reporting | 6 Months Ended
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Jul. 02, 2022
Segment Reporting [Abstract] |
Segment and Enterprise Reporting | 24. Segment and Enterprise Reporting The Company’s reportable segments are determined based upon the Company’s new organizational structure and the way in which the Company’s Chief Operating Decision Maker (CODM), the CEO, makes operating decisions and assesses financial performance. The CODM considered several factors including, but not limited to, customer base, technology, and homogeneity of products. The two segments are: •Healthcare - develops, manufactures, and markets a variety of noninvasive monitoring technologies and hospital automation solutions and therapeutics. This segment includes the Company’s core legacy hospital business and new Masimo-technology-enabled consumer products that are distributed through many channels including e-commerce sites, leading national retailers and specialty chains globally. •Non-healthcare - designs, develops, manufactures, markets and sells a broad portfolio of premium, high-performance audio products and services. This is a new reportable segment comprised primarily of Sound United’s operations. Income from operations for each segme nt includes all geographic revenues, related cost of net revenues and operating expenses directly attributable to the segment. The Company uses operating income, as presented in the Company’s financial reports, as the primary measure of segment profitability. The Company does not allocate costs from corporate functions to segment operating income. Items below operating income are not considered when measuring the profitability of a segment. The Company uses the same accounting policies to generate segment results as the Company does for consolidated results. Non-reportable operating segment and unallocated corporate expenses are reported within “Corporate overhead and Other”. Segment information presented herein reflects the impact of these changes for all periods presented. There was no inter-segment revenue for any of the periods presented. Selected information by reportable segment is presented below for the three and six months ended July 2, 2022 and July 3, 2021:
| Three Months Ended |  | Six Months Ended
(in millions) | July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
Revenues by segment: |  |  |  |  |  |  |
Healthcare | $ | 357.0 |  |  | $ | 305.1 |  |  | $ | 661.2 |  |  | $ | 604.2 |
Non-healthcare | 208.3 |  |  | — |  |  | 208.3 |  |  | — |
Total revenue by segment | $ | 565.3 |  |  | $ | 305.1 |  |  | $ | 869.5 |  |  | $ | 604.2 |
Gross profit: |  |  |  |  |  |  |
Healthcare | $ | 236.7 |  |  | $ | 197.5 |  |  | 442.1 |  |  | $ | 395.2 |
Non-healthcare | 72.6 |  |  | — |  |  | 72.6 |  |  | — |
Corporate overhead | — |  |  | — |  |  | — |  |  | — |
Other(1) | (51.1) |  |  | (4.6) |  |  | (51.8) |  |  | (5.4) |
Gross profit | $ | 258.2 |  |  | $ | 192.9 |  |  | $ | 462.9 |  |  | $ | 389.8 |
Gross profit margin: |  |  |  |  |  |  |
Healthcare | 66.3 | % |  | 64.7 | % |  | 66.9 | % |  | 65.4 | %
Non-healthcare | 34.9 |  |  | — |  |  | 34.9 |  |  | — |
Corporate overhead | — |  |  | — |  |  | — |  |  | — |
Other(1) | — |  |  | (1.5) |  |  | — |  |  | (0.9) |
Gross profit margin: | 45.7 | % |  | 63.2 | % |  | 53.2 | % |  | 64.5 | %
Operating income (loss): |  |  |  |  |  |  |
Healthcare | $ | 106.5 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Non-healthcare | 15.2 |  |  | — |  |  | — |  |  | — |
Corporate overhead | (15.1) |  |  | — |  |  | — |  |  | — |
Other(1) | (84.5) |  |  | — |  |  | — |  |  | — |
Operating income | $ | 22.1 |  |  | $ | 65.1 |  |  | $ | 81.8 |  |  | $ | 130.8 |
Interest income | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | 0.5 |  |  | $ | 0.4 |
Interest expense | (4.5) |  |  | (0.1) |  |  | (4.6) |  |  | (0.2) |
Other (income) expense, net | 8.8 |  |  | — |  |  | 8.0 |  |  | (0.9) |
Income before income taxes | $ | 26.6 |  |  | $ | 65.2 |  |  | $ | 85.7 |  |  | $ | 130.1 |
_______________ (1) Management excludes certain corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. Corporate overhead represents certain costs that are not allocated to the segments for purposes of the CODM assessing performance and allocating resources--for example, the costs of being a publicly traded company. The Company’s depreciation and amortization by segment:
| Three Months Ended |  | Six Months Ended
(in millions) | July 2, 2022 |  | July 3, 2021 |  | July 2, 2022 |  | July 3, 2021
Depreciation and amortization by segment: |  |  |  |  |  |  |
Healthcare | $ | 9.1 |  |  | $ | 8.8 |  |  | $ | 18.1 |  |  | $ | 17.3 |
Non-healthcare | 61.8 |  |  | — |  |  | 61.8 |  |  | — |
Total depreciation and amortization | $ | 70.9 |  |  | $ | 8.8 |  |  | $ | 79.9 |  |  | $ | 17.3 |
The Company’s total assets by segment:
| As of |  | As of
(in millions) | July 2, 2022 |  | January 1, 2022
Total assets by segment: |  |  |  |  |  |  |
Healthcare | $ | 2,478.9 |  |  |  |  | $ | 1,866.4 |  |  |
Non-healthcare | 462.1 |  |  |  |  | — |  |  |
Corporate overhead | 20.1 |  |  |  |  | 20.6 |  |  |
Other | — |  |  |  |  | — |  |  |
Total assets | $ | 2,961.1 |  |  |  |  | $ | 1,887.0 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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