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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 27, 2025

Accounting Policies [Abstract]

Schedule of Financial Assets Measured at Fair Value on Recurring Basis

The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at September 27, 2025:

			Total Carrying Value						Fair Value Measurement Hierarchy
(in millions)									Level 1						Level 2						Level 3
Assets
Cash and cash equivalents			$	48.1					$	48.1					$	—					$	—
Money market funds			264.2						264.2						—						—
Pension assets			24.3						17.8						6.5						—
Derivative instruments - cash flow hedges(1)			2.1						2.1						—						—
Total assets			$	338.7					$	332.2					$	6.5					$	—
Liabilities
Derivative instruments - cash flow hedges			$	1.2					$	1.2					$	—					$	—
Pension benefit obligation			29.4						29.4						—						—
Total liabilities			$	30.6					$	30.6					$	—					$	—

The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 28, 2024:

			Total Carrying Value						Fair Value Measurement Hierarchy
(in millions)									Level 1						Level 2						Level 3
Assets
Cash and cash equivalents			$	51.0					$	51.0					$	—					$	—
Money market funds			72.6						72.6						—						—
Pension assets			19.2						14.1						5.1						—
Derivative instruments - cash flow hedges(1)			6.8						6.8						—						—
Equity securities			1.3						1.3						—						—
Derivative instruments - warrants			0.7						0.7						—						—
Total assets			$	151.6					$	146.5					$	5.1					$	—
Liabilities
Derivative instruments - cash flow hedges			$	0.1					$	0.1					$	—					$	—
Pension benefit obligation			24.6						24.6						—						—
Total liabilities			$	24.7					$	24.7					$	—					$	—

______________

(1)     Includes accrued interest.

Schedule of Property and Equipment

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

			Useful Lives
Buildings and building improvements			7 to 39 years
Computer equipment and software			2 to 12 years
Demonstration units			2 to 3 years
Furniture and office equipment			2 to 15 years
Leasehold improvements			Lesser of useful life or term of lease
Machinery, equipment, tooling and other			3 to 20 years
Operating lease assets			Lesser of useful life or term of lease

Property and equipment, net, consists of the following:

(in millions)			September 27, 2025						December 28, 2024
Operating lease assets			$	187.6					$	148.6
Machinery, equipment, tooling and other			147.3						147.1
Building and building improvements			143.5						143.5
Land			47.7						47.7
Computer equipment and software			41.7						38.7
Leasehold improvements			32.2						31.2
Furniture and office equipment			16.2						15.8
Demonstration units			0.5						0.5
Construction-in-progress (CIP)			30.7						29.0
Total property and equipment			647.4						602.1
Accumulated depreciation			(302.1)						(265.1)
Property and equipment, net			$	345.3					$	337.0

Schedule of Changes in Product Warranty Accrual

Changes in the product warranty accrual were as follows:

			Nine Months Ended
(in millions)			September 27, 2025						September 28, 2024
Product warranty accrual, beginning of period			$	5.5					$	3.0
Accrual for warranties issued			0.5						1.7
Changes in pre-existing warranties (including changes in estimates)			1.9						5.4
Settlements made			(2.2)						(4.2)
Product warranty accrual, end of period			$	5.7					$	5.9

Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share

A computation of basic and diluted net income (loss) per share is as follows:

			Three Months Ended												Nine Months Ended
(in millions, except per share amounts)			September 27, 2025						September 28, 2024						September 27, 2025						September 28, 2024
Net income from continuing operations, net of tax			$	53.7					$	24.3					$	145.8					$	81.2
Net (loss) from discontinued operations, net of tax - (Note 18)			(154.1)						(14.5)						(365.6)						(36.5)
Net (loss) income			$	(100.4)					$	9.8					$	(219.8)					$	44.7
Basic net income (loss) per share:
Weighted-average shares outstanding - basic			54.0						53.4						54.1						53.2
Continuing operations per basic share			$	0.99					$	0.46					$	2.70					$	1.53
Discontinued operations per basic share			(2.85)						(0.27)						(6.76)						(0.69)
Basic (loss) income per share			$	(1.86)					$	0.19					$	(4.06)					$	0.84
Diluted net income (loss) per share:
Weighted-average shares outstanding - basic			54.0						53.4						54.1						53.2
Diluted share equivalents: stock options, RSUs and PSUs			0.4						0.9						0.6						1.1
Weighted-average shares outstanding - diluted			54.4						54.3						54.7						54.3
Continuing operations per diluted share			$	0.99					$	0.45					$	2.67					$	1.50
Discontinued operations per diluted share			(2.83)						(0.27)						(6.68)						(0.67)
Net (loss) income per diluted share			$	(1.84)					$	0.18					$	(4.01)					$	0.83

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information includes the following:

			Nine Months Ended
(in millions)			September 27, 2025						September 28, 2024
Cash paid during the year for:
Interest expense:
Continuing operations			$	24.5					$	27.5
Discontinued operations			1.5						1.8
Income taxes:
Continuing operations			$	25.5					$	34.8
Discontinued operations			8.8						5.3
Operating lease liabilities:
Continuing operations			$	8.0					$	8.1
Discontinued operations			10.4						10.3
Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities:
Continuing operations			$	1.0					$	10.1
Discontinued operations			0.6						18.4
Non-cash investing activities - continuing operations:
Unpaid purchases of property and equipment			$	1.5					$	1.2
Unpaid strategic investments			0.1						0.2
Non-cash financing activities - continuing operations:
Unsettled common stock proceeds from option exercises			$	7.1					$	0.1
Unsettled stock repurchases(1)			(21.4)						—
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents:
Continuing operations			$	312.3					$	117.0
Discontinued operations			0.6						41.5
Restricted cash:
Continuing operations			$	2.4					$	2.8
Discontinued operations			0.1						2.4
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows			$	315.4					$	163.7

______________

(1)    Includes approximately 0.6 million shares of Masimo common stock repurchased, but in transit to the transfer agent as of the last day of the quarter.

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Tabular disclosure of an entity's basic and diluted earnings per share calculations, including a reconciliation of numerators and denominators of the basic and diluted per-share computations for income from continuing operations.

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Tabular disclosure of the changes in the guarantor's aggregate product warranty liability, including the beginning balance of the aggregate product warranty liability, the aggregate reductions in that liability for payments made (in cash or in kind) under the warranty, the aggregate changes in the liability for accruals related to product warranties issued during the reporting period, the aggregate changes in the liability for accruals related to preexisting warranties (including adjustments related to changes in estimates), and the ending balance of the aggregate product warranty liability.

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