XML 87 R33.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment and Enterprise Reporting
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Segment and Enterprise Reporting
25. Segment and Enterprise Reporting
The Company’s reportable segments are determined based upon the Company’s organizational structure and the way in which the Company’s Chief Operating Decision Maker (CODM), the Company’s interim CEO (as of the end of fiscal year 2024), makes operating decisions, assesses financial performance, and allocates resources.
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, which is currently being evaluated for separation.
The Company’s CODM uses segment gross profit, as presented in the Company’s CODM reports, as the primary measure of segment profitability. The significant segment expenses help the Company to better understand operating results. Segment information presented herein reflects the impact of these changes for all periods presented. For the year ended December 28, 2024 and December 30, 2023, intercompany revenues between healthcare and non-healthcare were $4.9 million and $7.7 million, respectively. For the year ended December 31, 2022, there was no intercompany revenue between healthcare and non-healthcare. All inter-segment transactions and balances are eliminated in consolidation for all periods presented below.
Selected information by reportable segment is presented below for the years ended December 28, 2024, December 30, 2023 and December 31, 2022:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Revenues by segment:
Healthcare$1,395.2 $1,275.5 $1,340.3 
Non-healthcare699.2 772.6 695.5 
Revenue
$2,094.4 $2,048.1 $2,035.8 
Cost of goods sold by segment:
Healthcare$520.7 $498.4 $470.1 
Healthcare other(1)
80.2 11.5 2.4 
Non-healthcare463.9 514.6 443.0 
Non-healthcare other(1)
25.2 20.1 61.5 
Cost of goods sold$1,090.0 $1,044.6 $977.0 
Gross profit:$1,004.4 $1,003.5 $1,058.8 
Healthcare
Segment gross profit
$874.5 $777.1 $870.2 
Acquired asset amortization(1)(2)
(1.8)(2.0)(2.3)
Business transition and related costs(1)(3)
(77.1)(5.6)(0.1)
Other(1)
(1.3)(3.9)— 
Non-healthcare
Segment gross profit235.3 258.0 252.5 
Acquired asset amortization(1)(2)
(17.7)(19.7)(61.5)
Business transition and related costs(1)(3)
(7.5)(0.4)— 
__________________
(1)     Management excludes certain expenses from segment gross profit. Management considers these excluded amounts to be non-recurring or non-operational and as such, are excluded from segment gross profit as this enables management to better understand operational results.
(2)     Acquired asset amortization is a non-GAAP financial measure. These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired intangible assets including, but not limited to customer relationships, intellectual property, trade names and non-competition agreements.
(3)     Business transition and related costs are a non-GAAP financial measure. These transactions represent gains, losses, and other related costs associated with business transition plans. These items may include but are not limited to severance, relocation, consulting, leasehold exit costs, asset impairment, and other related costs to rationalize our operational footprint and optimize business results.
The Company’s depreciation and amortization by segment are as follows:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Total depreciation and amortization by segment:
Healthcare$48.7 $38.1 $36.0 
Non-healthcare54.3 60.1 100.1 
Total depreciation and amortization by segment
$103.0 $98.2 $136.1 
The Company’s total assets by segment are as follows:
(in millions)December 28,
2024		December 30,
2023
Total assets by segment:
Healthcare$1,601.1 $1,631.8 
Non-healthcare1,007.2 1,390.6 
Asset held-for-sale
17.4 — 
Corporate overhead— 19.1 
Total assets by segment$2,625.7 $3,041.5 
The Company’s consolidated long-lived assets (tangible non-current assets) by geographic area are as follows:
(in millions, except percentages)
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Total long-lived assets by geographic area:
United States$319.7 79.9 %$317.9 74.6 %
International80.6 20.1 108.0 25.4 
Total long-lived assets by geographic area$400.3 100.0 %$425.9 100.0 %
The following schedule presents an analysis of the Company’s revenues based upon the geographic area (ship to location):
(in millions, except percentages)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Total revenue by geographic area:
United States (U.S.)$1,127.6 53.8 %$1,058.8 51.8 %$1,141.7 56.1 %
Europe, Middle East and Africa595.6 28.4 571.9 27.9 523.6 25.7 
Asia and Australia303.5 14.5 351.0 17.1 326.8 16.1 
North and South America (excluding U.S.)67.7 3.3 66.4 3.2 43.7 2.1 
     Total revenue by geographic area$2,094.4 100.0 %$2,048.1 100.0 %$2,035.8 100.0 %