Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Jan. 31, 2014 | Jun. 29, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MASI | ' | ' |
Entity Registrant Name | 'MASIMO CORP | ' | ' |
Entity Central Index Key | '0000937556 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Enitity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 56,705,362 | ' |
Entity Public Float | ' | ' | $789.90 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $95,466 | $71,554 |
Accounts receivable, net of allowance for doubtful accounts of $1,833 and $1,956 at December 28, 2013 and December 29, 2012, respectively | 76,759 | 67,911 |
Royalties receivable | 7,300 | 7,130 |
Inventories | 56,813 | 47,358 |
Prepaid expenses | 9,243 | 6,507 |
Prepaid income taxes | 3,740 | 2,080 |
Deferred tax assets | 19,636 | 12,911 |
Other current assets | 2,841 | 3,896 |
Total current assets | 271,798 | 219,347 |
Deferred cost of goods sold | 61,714 | 52,103 |
Property and equipment, net | 24,866 | 23,924 |
Intangible assets, net | 28,104 | 27,363 |
Goodwill | 22,793 | 22,824 |
Deferred tax assets | 22,565 | 21,078 |
Other assets | 6,822 | 8,022 |
Total assets | 438,662 | 374,661 |
Current liabilities | ' | ' |
Accounts payable | 28,004 | 27,033 |
Accrued compensation | 29,486 | 25,021 |
Accrued liabilities | 23,028 | 16,648 |
Income taxes payable | 2,406 | 1,504 |
Deferred revenue | 20,755 | 19,278 |
Current portion of capital lease obligations | 111 | 55 |
Total current liabilities | 103,790 | 89,539 |
Deferred revenue | 566 | 576 |
Capital lease obligations, less current portion | 225 | 60 |
Other liabilities | 7,680 | 8,818 |
Total liabilities | 112,261 | 98,993 |
Commitments and contingencies (Note 13) | ' | ' |
Masimo Corporation stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value; 5,000 shares authorized at December 28, 2013 and December 29, 2012; 0 shares issued and outstanding at December 28, 2013 and December 29, 2012 | 0 | 0 |
Common stock, $0.001 par value, 100,000 shares authorized at December 28, 2013 and December 29, 2012; 56,623 and 57,308 shares outstanding at December 28, 2013 and December 29, 2012, respectively | 57 | 57 |
Treasury stock, 4,156 and 3,156 shares at December 28, 2013 and December 29, 2012 | -83,454 | -63,664 |
Additional paid-in capital | 273,129 | 258,783 |
Accumulated other comprehensive income | 3,995 | 3,542 |
Retained earnings | 132,742 | 74,361 |
Total Masimo Corporation stockholders’ equity | 326,469 | 273,079 |
Noncontrolling interest | -68 | 2,589 |
Total equity | 326,401 | 275,668 |
Total liabilities and equity | $438,662 | $374,661 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $1,833 | $1,956 |
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 56,623,000 | 57,308,000 |
Treasury stock, shares | 4,156,000 | 3,156,000 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2012 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product | ' | ' | ' | ' | ' | ' | ' | ' | ' | $517,429 | $464,928 | $406,487 |
Royalty | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,816 | 28,305 | 32,501 |
Total revenue | ' | 142,435 | 131,447 | 137,422 | 135,942 | 132,161 | 119,069 | 122,775 | 119,228 | 547,245 | 493,233 | 438,988 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 188,418 | 166,982 | 144,854 |
Gross profit | ' | 90,536 | 87,479 | 91,232 | 89,581 | 87,181 | 78,333 | 81,432 | 79,305 | 358,827 | 326,251 | 294,134 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | 215,469 | 193,948 | 169,205 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,631 | 47,077 | 38,412 |
Litigation award and defense costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,010 | 0 | 0 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 279,110 | 241,025 | 207,617 |
Operating income | ' | 12,653 | 20,743 | 23,180 | 23,141 | 22,273 | 17,952 | 22,673 | 22,328 | 79,717 | 85,226 | 86,517 |
Non-operating income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,991 | -1,405 | 14 |
Income before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,726 | 83,821 | 86,531 |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,005 | 21,883 | 22,478 |
Net income including noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,721 | 61,938 | 64,053 |
Net (income) loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,660 | 334 | -353 |
Net income attributable to Masimo Corporation stockholders | ' | 9,313 | 15,602 | 17,038 | 16,428 | 15,007 | 13,794 | 17,697 | 15,774 | 58,381 | 62,272 | 63,700 |
Other comprehensive income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 453 | 2,268 | 349 |
Comprehensive income attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | ' | $58,834 | $64,540 | $64,049 |
Net income per share attributable to Masimo Corporation stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in usd per share) | ' | $0.16 | $0.28 | $0.30 | $0.29 | $0.26 | $0.24 | $0.31 | $0.27 | $1.03 | $1.08 | $1.07 |
Diluted (in usd per share) | ' | $0.16 | $0.27 | $0.30 | $0.28 | $0.26 | $0.24 | $0.30 | $0.27 | $1.02 | $1.07 | $1.05 |
Weighted average shares used in per share calculations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,690 | 57,445 | 59,659 |
Diluted (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57,480 | 58,374 | 60,845 |
Cash dividend declared per share | $1 | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $1 | $0 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
In Thousands | |||||||
Beginning Balance at Jan. 01, 2011 | $230,039 | $59 | ($1,209) | $222,206 | $925 | $5,664 | $2,394 |
Beginning Balance, shares at Jan. 01, 2011 | ' | 59,463 | 156 | ' | ' | ' | ' |
Stock options exercised | 5,943 | 1 | ' | 5,942 | ' | ' | ' |
Stock options exercised, shares | 629 | 629 | ' | ' | ' | ' | ' |
Income tax benefit from exercise of stock options | 1,716 | ' | ' | 1,716 | ' | ' | ' |
Compensation related to stock option grants to employees | 13,680 | ' | ' | 13,589 | ' | ' | 91 |
Repurchases of common stock | -36,187 | -2 | -36,187 | 2 | ' | ' | ' |
Repurchases of common stock, shares | -1,800 | -1,845 | -1,845 | ' | ' | ' | ' |
Short swing profit recovery | 73 | ' | ' | 73 | ' | 0 | ' |
Net income | 64,053 | ' | ' | ' | ' | 63,700 | 353 |
Foreign currency translation adjustment, net of tax | 349 | ' | ' | ' | 349 | ' | ' |
Ending Balance at Dec. 31, 2011 | 279,666 | 58 | -37,396 | 243,528 | 1,274 | 69,364 | 2,838 |
Ending Balance, shares at Dec. 31, 2011 | ' | 58,247 | 2,001 | ' | ' | ' | ' |
Stock options exercised | 1,642 | 0 | ' | 1,642 | ' | ' | ' |
Stock options exercised, shares | 216 | 216 | ' | ' | ' | ' | ' |
Income tax benefit from exercise of stock options | -410 | ' | ' | -410 | ' | ' | ' |
Compensation related to stock option grants to employees | 14,097 | ' | ' | 14,022 | ' | ' | 75 |
Repurchases of common stock | -26,268 | -1 | -26,268 | 1 | ' | ' | ' |
Repurchases of common stock, shares | -1,200 | -1,155 | -1,155 | ' | ' | ' | ' |
Dividend declared | -57,275 | ' | ' | ' | ' | -57,275 | ' |
Issuance of common stock | 10 | ' | ' | ' | ' | ' | 10 |
Net income | 61,938 | ' | ' | ' | ' | 62,272 | -334 |
Foreign currency translation adjustment, net of tax | 2,268 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment, before tax | 2,100 | ' | ' | ' | 2,100 | ' | ' |
Income tax benefit on foreign currency translation | 168 | ' | ' | ' | 168 | ' | ' |
Ending Balance at Dec. 29, 2012 | 275,668 | 57 | -63,664 | 258,783 | 3,542 | 74,361 | 2,589 |
Ending Balance, shares at Dec. 29, 2012 | ' | 57,308 | 3,156 | ' | ' | ' | ' |
Stock options exercised | 3,290 | 1 | ' | 3,289 | ' | ' | ' |
Stock options exercised, shares | 315 | 315 | ' | ' | ' | ' | ' |
Income tax benefit from exercise of stock options | -615 | ' | ' | -615 | ' | ' | ' |
Compensation related to stock option grants to employees | 11,674 | ' | ' | 11,672 | ' | ' | 2 |
Repurchases of common stock | -19,791 | -1 | -19,790 | 0 | ' | ' | ' |
Repurchases of common stock, shares | -1,000 | -1,000 | -1,000 | ' | ' | ' | ' |
Issuance of shares in noncontrolling interest entity | 1 | ' | ' | ' | ' | ' | 1 |
Net income | 55,721 | ' | ' | ' | ' | 58,381 | -2,660 |
Foreign currency translation adjustment, net of tax | 453 | ' | ' | ' | 453 | ' | ' |
Ending Balance at Dec. 28, 2013 | $326,401 | $57 | ($83,454) | $273,129 | $3,995 | $132,742 | ($68) |
Ending Balance, shares at Dec. 28, 2013 | ' | 56,623 | 4,156 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income including noncontrolling interest | $55,721 | $61,938 | $64,053 |
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 11,421 | 9,369 | 7,342 |
Share-based compensation | 11,674 | 14,097 | 13,676 |
Loss on disposal of property and equipment | 249 | 0 | 0 |
Provision for doubtful accounts | 728 | 231 | 231 |
Benefit from deferred income taxes | -8,613 | -6,806 | -3,217 |
Income tax benefit from exercise of stock options granted prior to January 1, 2006 | 693 | 338 | 1,650 |
Excess tax deficit (benefit) from share-based compensation arrangements | 1,308 | 748 | -67 |
Realized foreign exchange gain on forward contracts | 0 | -586 | 0 |
Changes in operating assets and liabilities: | ' | ' | ' |
Increase in accounts receivable | -9,576 | -10,130 | -7,549 |
(Increase) decrease in royalties receivable | -170 | -28 | 4,898 |
(Increase) decrease in inventories | -9,453 | 539 | -916 |
Increase in deferred cost of goods sold | -9,594 | -409 | -4,526 |
(Increase) decrease in prepaid expenses | -2,792 | 186 | -1,874 |
(Increase) decrease in prepaid income taxes | -1,660 | 1,255 | 366 |
Decrease (increase) in other assets | 2,206 | -2,193 | -1,502 |
Increase (decrease) in accounts payable | 968 | -1,726 | 5,159 |
Increase (decrease) in accrued compensation | 4,557 | 4,827 | -1,333 |
Increase in accrued liabilities | 6,406 | 2,939 | 2,515 |
(Decrease) increase in income taxes payable | -381 | 198 | -89 |
Increase (decrease) in deferred revenue | 1,467 | 2,850 | -921 |
(Decrease) increase in other liabilities | -842 | -2,203 | 1,061 |
Net cash provided by operating activities | 54,317 | 75,434 | 78,957 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -9,090 | -10,828 | -5,057 |
Increase in intangible assets | -3,926 | -3,664 | -2,451 |
Cash paid for acquisitions, net of cash acquired | 0 | -37,399 | 0 |
Net cash used in investing activities | -13,016 | -51,891 | -7,508 |
Cash flows from financing activities: | ' | ' | ' |
Repayments on capital lease obligations | -132 | -26 | -50 |
Proceeds from issuance of common stock | 3,289 | 1,642 | 5,943 |
Excess tax (deficit) benefit from share-based compensation arrangements | -1,308 | -748 | 67 |
Dividends paid | 0 | -57,275 | 0 |
Repurchases of common stock | -19,790 | -26,268 | -36,187 |
Short swing profit recovery | 0 | 0 | 73 |
Net proceeds from settlement of forward contracts | 0 | 586 | 0 |
Net cash used in financing activities | -17,941 | -82,089 | -30,154 |
Effect of foreign currency exchange rates on cash | 552 | 218 | 282 |
Net increase (decrease) in cash and cash equivalents | 23,912 | -58,328 | 41,577 |
Cash and cash equivalents at beginning of period | 71,554 | 129,882 | 88,305 |
Cash and cash equivalents at end of period | 95,466 | 71,554 | 129,882 |
Cash paid for: | ' | ' | ' |
Interest | 28 | 44 | 116 |
Income taxes | 29,979 | 28,691 | 22,823 |
Noncash investing and financing activities: | ' | ' | ' |
Assets acquired under capital leases | $352 | $21 | $0 |
Description_of_the_Company
Description of the Company | 12 Months Ended |
Dec. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of the Company | ' |
Description of the Company | |
Masimo Corporation, or the Company, is a global medical technology company that develops, manufactures, and markets noninvasive patient monitoring products. The Company’s mission is to improve patient outcomes and reduce cost of care by taking noninvasive monitoring to new sites and applications. The Company invented Masimo Signal Extraction Technology, or Masimo SET®, which provides the capabilities of Measure-Through Motion and Low Perfusion pulse oximetry to address the primary limitations of conventional pulse oximetry. The Company has also developed Masimo rainbow® SET products which monitor multiple blood measurements, including oxygen content, carboxyhemoglobin, methemoglobin and hemoglobin. Additional rainbow® SET measurements that assist clinicians are PVI®, RR™, SpfO2™, Halo Index™ and In Vivo Adjustment™. The Company develops, manufactures and markets a family of patient monitoring solutions which incorporate a monitor or circuit board and sensors, including proprietary single-patient use, reusable and resposable sensors, and cables. The Company considers the pulse oximetry device (monitor or circuit board), its sensors and cables and software fees to be products as defined in its consolidated statements of comprehensive income. The Company sells to hospitals and the alternate care market through its direct sales force and distributors, and markets its circuit boards containing the Company’s proprietary algorithm and software architecture to original equipment manufacturer, or OEM, partners. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||
Basis of Presentation | ||||||||||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, (GAAP), and include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities, or VIEs, in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||||
Fiscal Periods | ||||||||||||||||
The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week year includes four quarters of 13 fiscal weeks while a 53 week fiscal year includes three 13 fiscal week quarters and one 14 fiscal week quarter. The last 53 week fiscal year was fiscal year 2008. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted. | ||||||||||||||||
Use of Estimates | ||||||||||||||||
The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include: determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate reserves, valuation of the Company’s stock options, goodwill valuation, deferred taxes and any associated valuation allowances, distributor channel inventory, royalty revenues, deferred revenue, uncertain income tax positions, property taxes, litigation costs and related accruals. Actual results could differ from those estimates. | ||||||||||||||||
Reclassifications | ||||||||||||||||
Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to current period presentation. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: | ||||||||||||||||
• | Level 1-Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
• | Level 2-Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||
• | Level 3-Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||
Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect | ||||||||||||||||
the fair value option under this guidance as to specific assets or liabilities. There were no transfers between level 1, level 2 and level 3 inputs during the years ended December 28, 2013 or December 29, 2012. The Company carries cash and cash equivalents at cost which approximates fair value. As of December 28, 2013 and December 29, 2012, the Company did not have any short-term investments. | ||||||||||||||||
The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands): | ||||||||||||||||
Fair Value Measurement as of | ||||||||||||||||
December 28, 2013 using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
U.S. Treasuries | $ | 25,997 | $ | — | $ | — | $ | 25,997 | ||||||||
Money Market funds | 1,793 | — | — | 1,793 | ||||||||||||
Total | $ | 27,790 | $ | — | $ | — | $ | 27,790 | ||||||||
Fair Value Measurement as of | ||||||||||||||||
December 29, 2012 using: | ||||||||||||||||
Assets: | ||||||||||||||||
U.S. Treasuries | $ | 31,999 | $ | — | $ | — | $ | 31,999 | ||||||||
Money Market funds | 1,623 | — | — | 1,623 | ||||||||||||
Total | $ | 33,622 | $ | — | $ | — | $ | 33,622 | ||||||||
Cash and Cash Equivalents | ||||||||||||||||
The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments and readily convertible into known amounts of cash to be cash equivalents. As of December 28, 2013, the Company’s cash balance was $67.7 million, comprised of checking accounts. Additionally, the Company had cash equivalents of $27.8 million, consisting of $26.0 million of U.S. Treasury bills and $1.8 million of money market funds. As of December 29, 2012, the Company’s cash balance was $38.0 million, comprised of checking accounts. Additionally, the Company had cash equivalents of $33.6 million, consisting of $32.0 million of U.S. Treasury bills and $1.6 million of money market funds. | ||||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||||
Accounts receivable consist of trade receivables recorded upon recognition of revenue for product revenues, reduced by reserves for estimated bad debts and returns. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. Collateral is not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible. | ||||||||||||||||
As of December 28, 2013 and December 29, 2012, the accounts receivable balance was $76.8 million and $67.9 million, respectively, net of allowance for doubtful accounts. | ||||||||||||||||
Royalties Receivable | ||||||||||||||||
Pursuant to the second amendment to its settlement agreement with Nellcor Puritan Bennett, Inc. (currently Covidien Ltd., or Covidien), royalties are paid to the Company based on a percentage of sales of Covidien U.S. based pulse oximetry products. The Company estimates the royalty receivable based on the royalty rate per the second amendment to its settlement agreement multiplied by its estimate of Covidien’s sales for each quarter. Any adjustments to the quarterly estimated receivable are recorded prospectively in the following quarter when the Company receives the Covidien royalty report and payment, which is generally 60 days after the end of each of Covidien’s fiscal quarters. The royalty receivable of $7.3 million as of December 28, 2013 represents the Company’s estimated amount due for the three months ended December 28, 2013. | ||||||||||||||||
Inventories | ||||||||||||||||
Inventories are stated at the lower of cost or market. Cost is determined using a standard cost method, which approximates FIFO (first in, first out) and includes material, labor and overhead. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory that has a market price less than the carrying value in inventory. | ||||||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the improvements. Normal repair and maintenance costs are expensed as incurred, whereas significant improvements that materially increase values or extend useful lives are capitalized and depreciated over the remaining estimated useful lives of the related assets. Upon sale or retirement of depreciable assets, the related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss on the sale or retirement is recognized in income. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, depreciation expense of property and equipment, which includes amortization of equipment under capital leases, was $8.3 million, $7.3 million and $5.8 million, respectively. | ||||||||||||||||
Intangible Assets | ||||||||||||||||
Intangible assets consist primarily of patents, trademarks, software development costs, customer relationships and acquired technology. Costs related to patents and trademarks, which include legal and application fees, are capitalized and amortized over the estimated useful lives using the straight-line method. Patent and trademark amortization commences once final approval of the patent or trademark has been obtained. Patent costs are amortized over the lesser of 10 years or the patent’s remaining legal life, which assumes renewals, and trademark costs over 17 years, and their associated amortization cost is included in selling, general and administrative expense in the accompanying consolidated statements of comprehensive income. For intangibles purchased in an asset acquisition or business combination, which mainly include patents, trademarks, customer relationships and acquired technology, the useful life is determined in the same manner as noted above. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, amortization of intangible assets was $2.7 million, $2.1 million and $1.6 million, respectively. As of December 28, 2013 and December 29, 2012, the total costs of patents not yet amortizing was $6.7 million and $5.4 million, respectively. As of December 28, 2013 and December 29, 2012, the total costs of trademarks not yet amortizing was $0.7 million and $0.6 million, respectively. Costs to renew intangibles are capitalized and amortized over the remaining useful life of the intangible. For the year ended December 28, 2013, total renewal costs capitalized for patents and trademarks were $0.5 million and $0.4 million, respectively. As of December 28, 2013, the weighted average number of years until the next renewal is one year for patents and six years for trademarks. | ||||||||||||||||
The Company’s policy is to renew its patents and trademarks. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. | ||||||||||||||||
In accordance with authoritative accounting guidance, costs related to the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability. For the years ended December 28, 2013 and December 29, 2012, the Company did not capitalize any of software development costs. The capitalized costs are amortized over the estimated life of the products of seven years. The Company amortized $0.2 million for each of the years ended December 28, 2013, December 29, 2012 and December 31, 2011. The Company had unamortized software development costs of $0.3 million and $0.5 million at December 28, 2013 and December 29, 2012, respectively, which is included within intangible assets, net on the consolidated balance sheets. | ||||||||||||||||
Impairment of Goodwill and Intangible assets | ||||||||||||||||
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead, is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment for each of its reporting units, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macroeconomic, industry-specific and company-specific factors including: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the first step of the two-step impairment test by comparing the fair value of the reporting unit, determined using future projected discounted operating cash flows, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, goodwill is considered impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of goodwill. The Company also has the option to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test. The Company may resume performing the qualitative assessment in any subsequent period. The annual impairment test is performed during the fourth fiscal quarter. | ||||||||||||||||
The Company reviews long-lived assets and identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. | ||||||||||||||||
No impairment of goodwill, intangible assets, or other long-lived assets was recorded during the years ended December 28, 2013, December 29, 2012 or December 31, 2011. | ||||||||||||||||
Income Taxes | ||||||||||||||||
The Company accounts for income taxes using the asset and liability method, under which the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss and tax credit carryforwards. Tax positions that meet a more-likely-than-not recognition threshold are recognized in the first reporting period that it becomes more-likely-than-not such tax position will be sustained upon examination. A tax position that meets this more-likely-than-not recognition threshold is recorded at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Previously recognized income tax positions that fail to meet the recognition threshold in a subsequent period are derecognized in that period. Differences between actual results and our assumptions, or changes in our assumptions in future periods, are recorded in the period they become known. The Company records potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. | ||||||||||||||||
As a multinational corporation, the Company is subject to complex tax laws and regulations in various jurisdictions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment, and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation, evolution of regulations and court rulings. Therefore, the actual liability for U.S. or foreign taxes may be materially different from the Company’s estimates, which could result in the need to record additional liabilities or potentially to reverse previously recorded tax liabilities. | ||||||||||||||||
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is recorded against any deferred tax assets when, in the judgment of management, it is more likely than not that all of or part of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods, and tax planning strategies. | ||||||||||||||||
Revenue Recognition and Deferred Revenue | ||||||||||||||||
The Company derives product revenues primarily from four sources: (i) long-term sales contracts to end user hospitals in which the Company may provide up front monitoring equipment at no charge in exchange for a multi-year sensor purchase commitment; (ii) direct sales of pulse oximetry and related products to end user hospitals, emergency medical response organizations and other direct customers; (iii) direct sales of pulse oximetry and related products to distributors who then typically resell to end user hospitals, emergency medical response organizations and other direct customers; and (iv) direct sales of integrated circuit boards and sensors to OEM customers who both incorporate the Company’s embedded software technology into their multiparameter monitoring devices and resell the Company’s sensors. | ||||||||||||||||
The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from the sale of the Company’s products is generally recognized when title and risk of loss transfers to the customer upon shipment, the terms of which are shipping point or destination. The Company uses contracts and customer purchase orders to determine the existence of an arrangement. The Company uses shipping documents and/or third-party proof of delivery to verify that title has transferred. The Company assesses whether the fee is fixed or determinable based upon the terms of the agreement associated with the transaction. To determine whether collection is probable, the Company assesses a number of factors but primarily relies upon past transaction history with the customer, if available. | ||||||||||||||||
The Company enters into agreements to sell pulse oximetry and related products and services as well as multiple deliverable arrangements that include various combinations of products and services. While the majority of the Company’s sales transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation is sometimes required to determine the appropriate accounting including: (a) whether an arrangement exists, (b) how the arrangement consideration should be allocated among the deliverables if there are multiple deliverables, (c) when to recognize revenue on the deliverables, and (d) whether undelivered elements are essential to the functionality of the delivered elements. Changes in judgments on these assumptions and estimates could materially impact the timing of revenue recognition. | ||||||||||||||||
For contracts entered into prior to January 1, 2011, the Company has determined that its patented algorithm and software architecture, which resides within the monitors, is more than incidental to the product as a whole. Therefore, the monitoring hardware represents a software element. In accordance with authoritative guidance, the revenue from the sale of these products falls within the scope of software revenue recognition guidance. The Company has also determined that the sensors are considered essential to the functionality of the delivered elements. Accordingly, the Company does not recognize any revenue when the monitoring and related equipment is delivered to the hospital and installation and training is complete. The Company recognizes revenue for all of the delivered elements, on a pro-rata basis, as the sensors are delivered under the long-term sales contract. The cost of the monitoring equipment initially placed at the hospitals is deferred and amortized to cost of goods sold over the life of the underlying long-term sales contract. The Company also provides certain end-user hospitals with the ability to purchase sensors under rebate programs. Under these programs, the end-user hospitals may earn rebates based on their purchasing activity. The Company estimates and provides allowances for these programs at the time of sale as a reduction to revenue. | ||||||||||||||||
In September 2009, the Financial Accounting Standards Board, or FASB, amended the accounting standards related to revenue recognition for arrangements with multiple deliverables. The new standard changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The FASB also amended the accounting standards for revenue recognition to exclude software that is contained in a tangible product from the scope of software revenue guidance if the software is essential to the tangible product’s functionality. The Company adopted these new standards on a prospective basis. Therefore, the new standards apply only to revenue arrangements entered into or materially modified beginning January 2, 2011. Revenue arrangements entered into or modified prior to January 2, 2011 continue to be accounted for under the prior authoritative guidance. For revenue arrangements that were entered into or materially modified after the adoption of these standards, implementation of this new authoritative guidance had no significant impact on the Company’s reported revenue in fiscal 2011 as compared to revenue if the related arrangements entered into or materially modified after the effective date were subject to the accounting requirements in effect in the prior year. | ||||||||||||||||
The new standards establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value, or VSOE, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of the selling price, or ESP. VSOE of fair value is defined as the price charged when the same element is sold separately. VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. TPE generally does not exist for the majority of the Company’s products because of their uniqueness. The objective of ESP is to determine the price at which the Company would transact a sale if the product was sold on a stand-alone basis. In the absence of VSOE and TPE, the Company determines ESP for its products by considering multiple factors including, but not limited to, features and functionality of the product, geographies, type of customer, contractual prices pursuant to Group Purchasing Organization, or GPO, contracts, the Company’s pricing and discount practices, and market conditions. | ||||||||||||||||
A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. Most of the Company’s products in a multiple deliverable arrangement qualify as separate units of accounting. In the case of the Company’s monitoring equipment products containing embedded Masimo SET® software, the Company has determined that the hardware and software components function together to deliver the products’ essential functionality, and therefore, represent a single deliverable. In accordance with the new guidance, the revenue from the sale of these products no longer falls within the scope of the software revenue recognition guidance. Software deliverables, such as rainbow® parameter software, which do not function together with hardware components to provide the products’ essential functionality, continue to be accounted for under software revenue recognition guidance. The Company’s multiple deliverable arrangements may therefore have software deliverables that are subject to the existing software revenue recognition guidance. The revenue for these multiple-element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the current revenue recognition accounting guidance for arrangements with multiple deliverables. | ||||||||||||||||
Under long-term sensor purchase contracts, the sensors are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. The Company does not recognize any revenue when the monitoring and related equipment and software are delivered to the hospitals and installation and training is complete. The Company recognizes revenue for these delivered elements, on a pro-rata basis, as the sensors are delivered under the long-term purchase commitment. The adoption of the new guidance for revenue recognition did not change this pattern of revenue recognition for long-term sensor purchase contracts. The cost of the monitoring equipment initially placed at the hospitals is deferred and amortized to cost of goods sold over the life of the underlying long-term sensor purchase contract. | ||||||||||||||||
The Company’s distributors purchase primarily sensor products which they then resell to hospitals that are typically fulfilling their purchase obligations to the Company under the end-user hospitals’ long-term sensor purchase commitments. Upon shipment to the distributor, revenue is deferred until the Company’s commitment to its end-user hospital is fulfilled, which occurs when the sensors are sold by the distributor to the end-user hospital. Certain of the Company’s distributors purchase products at specified distributor pricing and then may resell the product to end-user hospitals with whom the Company has separate pricing agreements. Where distributor prices are higher than end-user hospital contracted prices, the Company provides rebates to these distributors for the difference between distributor prices and end-user hospital prices. The Company estimates and provides allowances for the rebate programs at the time of sales as a reduction to revenue and accounts receivable. | ||||||||||||||||
The Company also earns revenue from the sale of integrated circuit boards that use the Company’s software technology and license fees for allowing certain OEMs the right to use the Company’s technology in their products. The license fee is recognized upon shipment of the OEM’s product to its customers, as represented to the Company by the OEM. | ||||||||||||||||
In general, customers do not have a right of return for credit or refund. However, the Company allows returns under certain circumstances. At the end of each period, the Company estimates and accrues for these returns as a reduction to revenue and accounts receivable. The Company estimates returns based on several factors, including contractual limitations and past returns history. | ||||||||||||||||
In September 2005, the U.S. Federal Court of Appeals ruled that Mallinckrodt, Inc., now part of Covidien, and one of its subsidiaries, Nellcor Puritan Bennett, Inc., collectively referred to as Nellcor, infringed on the Company’s patents and ordered the lower court to enjoin Nellcor’s infringing products. On January 17, 2006, the Company settled all existing patent litigation with Covidien. Under terms of this original settlement agreement, Covidien agreed to pay the Company royalties on its total U.S. pulse oximetry revenue generated, at least through March 14, 2011, which the Company records as royalty revenue. On January 28, 2011, the Company entered into an amendment to this settlement agreement with Covidien. As part of this amendment, which became effective on March 15, 2011, Covidien agreed to pay the Company a royalty at a rate of 7.75% of its U.S. pulse oximetry revenue generated, from March 15, 2011 through at least March 15, 2014. | ||||||||||||||||
The Covidien royalties are recognized by the Company based on U.S. sales of Covidien’s infringing products reported to the Company by Covidien. The Company recognizes royalty revenue based on the royalty rate pursuant to the amendment to the settlement agreement multiplied by its estimate of Covidien’s sales for each quarter. This estimated revenue is adjusted prospectively when the Company receives the Covidien royalty report, approximately 60 days after the end of the quarter. | ||||||||||||||||
Taxes Collected From Customers and Remitted to Governmental Authorities | ||||||||||||||||
Pursuant to authoritative guidance, the Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities. | ||||||||||||||||
Share-Based Compensation | ||||||||||||||||
Since January 1, 2006, the Company has expensed the estimated fair value of employee stock options and similar awards based on the fair value of the stock option on the date of grant, in accordance with the current authoritative accounting guidance. The cost is recognized over the period during which an employee is required to provide services in exchange for the stock option, which is usually the vesting period. The Company adopted the accounting standard using the prospective transition method that applies to stock options granted, modified or canceled subsequent to the date of adoption. Prior periods were not revised for comparative purposes. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire stock option. | ||||||||||||||||
Options granted prior to January 1, 2006, were accounted for using the intrinsic value method and using the minimum value method for its pro forma disclosures, unless such options were modified, repurchased or canceled. The cash flows related to the reduction of income taxes paid as a result of the deduction triggered by employee exercise of stock options granted or modified prior to January 1, 2006 continue to be presented as an operating cash flow. | ||||||||||||||||
Shipping and Handling Costs and Revenue | ||||||||||||||||
All shipping and handling costs are expensed as incurred and are recorded as a component of cost of sales. Charges for shipping and handling billed to customers are included as a component of product revenue in accordance with authoritative accounting guidance. | ||||||||||||||||
Product Warranty | ||||||||||||||||
The Company provides a warranty against defects in material and workmanship for a period ranging from six months to one year, depending on the product type. In the case of long-term sales agreements, the Company typically warranties the products for the term of the agreement, which ranges from three to seven years. In traditional sales activities, including direct and OEM sales, the Company establishes an accrual for the estimated costs of warranty at the time of revenue recognition. Estimated warranty expenses are recorded as an accrued liability, with a corresponding provision to cost of sales. In long-term sales agreements, revenue related to extended warranty is recognized over the life of the contract, while the product warranty costs related to the long-term sales agreements are expensed as incurred. | ||||||||||||||||
Changes in the product warranty accrual were as follows (in thousands): | ||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Warranty accrual, beginning of period | $ | 838 | $ | 698 | $ | 544 | ||||||||||
Provision for warranty costs | 3,117 | 2,489 | 2,592 | |||||||||||||
Warranty expenditures | (2,794 | ) | (2,349 | ) | (2,438 | ) | ||||||||||
Warranty accrual, end of period | $ | 1,161 | $ | 838 | $ | 698 | ||||||||||
Advertising Costs | ||||||||||||||||
Advertising costs are expensed as incurred. These costs are included in selling, general and administrative expense in the accompanying consolidated statements of comprehensive income. Advertising costs for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 were $9.5 million, $9.5 million and $5.6 million, respectively. | ||||||||||||||||
Research and Development | ||||||||||||||||
Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities. | ||||||||||||||||
Foreign Currency Translation | ||||||||||||||||
The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has several foreign sales support subsidiaries that maintain foreign offices, of which the most significant are in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company transacts with foreign customers in currencies other than the U.S. Dollar. It experiences realized and unrealized foreign currency gains or losses on foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions. Realized and unrealized foreign currency gains or losses are included as a component of non-operating income (expense) within the Company’s statements of comprehensive income, as incurred and are converted to U.S. Dollars at average exchange rates for a respective period. These transaction losses were $4.0 million, $1.6 million and $0.1 million for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. | ||||||||||||||||
Assets and liabilities of foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated into U.S. Dollars at the rate of exchange at the balance sheet date. Statement of comprehensive income amounts are translated at the average monthly exchange rates for the respective periods. For these foreign subsidiaries whose functional currency is not the U.S. Dollar, translation gains and losses are included as a component of accumulated other comprehensive income within Masimo Corporation stockholders’ equity. | ||||||||||||||||
Comprehensive Income | ||||||||||||||||
Authoritative accounting guidance establishes requirements for reporting and disclosure of comprehensive income and its components. Comprehensive income includes foreign currency translation adjustments and related tax benefits, which have been excluded from net income including noncontrolling interests and reflected in Masimo Corporation stockholders’ equity. | ||||||||||||||||
Net Income Per Share | ||||||||||||||||
Basic net income per share attributable to Masimo Corporation stockholders for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 is computed by dividing net income attributable to Masimo Corporation stockholders by the weighted average number of shares outstanding during each period. The diluted net income per share attributable to Masimo Corporation stockholders for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 is computed by dividing the net income attributable to Masimo Corporation stockholders by the weighted average number of shares and potential shares outstanding during each period, if the effect of potential shares is dilutive. Potential shares include incremental shares of stock issuable upon the exercise of stock options. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, weighted options to purchase 7.2 million, 6.4 million and 4.5 million shares of common stock, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive in the periods presented. | ||||||||||||||||
Based on authoritative accounting guidance, the Company reduced its net income including noncontrolling interests by the amount of net (income) loss attributable to noncontrolling interests for the years ended December 28, 2013, December 29, 2012 and December 31, 2011. | ||||||||||||||||
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 28, 2013 | December 29, 2012 | December 31, 2011 | ||||||||||||||
Net income attributable to stockholders of Masimo Corporation: | ||||||||||||||||
Net income including noncontrolling interest | $ | 55,721 | $ | 61,938 | $ | 64,053 | ||||||||||
Net (income) loss attributable to the noncontrolling interest | 2,660 | 334 | (353 | ) | ||||||||||||
Net income attributable to Masimo Corporation stockholders | $ | 58,381 | $ | 62,272 | $ | 63,700 | ||||||||||
Basic net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Net income attributable to Masimo Corporation stockholders | $ | 58,381 | $ | 62,272 | $ | 63,700 | ||||||||||
Weighted average shares outstanding - basic | 56,690 | 57,445 | 59,659 | |||||||||||||
Basic net income per share attributable to Masimo Corporation stockholders | $ | 1.03 | $ | 1.08 | $ | 1.07 | ||||||||||
Diluted net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Weighted average shares outstanding | 56,690 | 57,445 | 59,659 | |||||||||||||
Diluted share equivalent: stock options | 790 | 929 | 1,186 | |||||||||||||
Weighted average shares outstanding - diluted | 57,480 | 58,374 | 60,845 | |||||||||||||
Diluted net income per share attributable to Masimo Corporation stockholders | $ | 1.02 | $ | 1.07 | $ | 1.05 | ||||||||||
Segment Information | ||||||||||||||||
The Company uses the “management approach” in determining reportable business segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Based on this assessment, management has determined it operates in one reportable business segment, which is comprised of patient monitoring and related products. | ||||||||||||||||
Recently Adopted Accounting Pronouncement | ||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, or ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update will require companies to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless certain conditions exist. The Company adopted this update in fiscal year 2013 and such adoption did not have a material impact on the consolidated financial statements. | ||||||||||||||||
In July 2012, the FASB issued Accounting Standards Update No. 2012-2, or ASU 2012-2, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, to allow entities to use a qualitative approach to test indefinite-lived intangible assets for impairment. ASU 2012-2 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, then a quantitative impairment test that exists under current authoritative accounting guidance must be completed. Otherwise, the quantitative impairment test is not required. ASU 2012-2 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this update in fiscal year 2013 and such adoption did not have a material impact on the consolidated financial statements. |
Variable_Interest_Entities_VIE
Variable Interest Entities (VIEs) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities (VIEs) | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities (VIEs) | ||||||||||||||||||||||||||||||||||||||||||||||||
Under existing accounting standards, the Company is required to determine whether its variable interest gives it a controlling financial interest in a VIE that is required to be consolidated. Determination about whether an enterprise should consolidate a VIE is required to be evaluated continuously as changes to existing relationships or future transactions may result in consolidating or deconsolidating the VIE. The changes in noncontrolling interests for the consolidated VIEs are presented in the accompanying consolidated statements of equity. | ||||||||||||||||||||||||||||||||||||||||||||||||
Cercacor Laboratories, Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||
Cercacor Laboratories, Inc., or Cercacor, is an independent entity spun off from the Company to its stockholders in 1998. Joe Kiani and Jack Lasersohn, members of the Company’s board of directors, or Board, are also members of the board of directors of Cercacor. Joe Kiani, the Company’s Chairman and Chief Executive Officer, is also the Chairman and Chief Executive Officer of Cercacor. The Company is a party to a Cross-Licensing Agreement with Cercacor, which was most recently amended and restated effective January 1, 2007, that governs each party’s rights to certain intellectual property held by the two companies. In addition, the Company entered into a Services Agreement with Cercacor effective January 1, 2007 to govern the general and administrative services the Company provides to Cercacor. | ||||||||||||||||||||||||||||||||||||||||||||||||
Under the Cross-Licensing Agreement, the Company granted Cercacor an exclusive, perpetual and worldwide license, with sublicense rights, to use all Masimo SET® owned by the Company, including all improvements on this technology, for the monitoring of non-vital signs measurements and to develop and sell devices incorporating Masimo SET® for monitoring non-vital signs measurements in any product market in which a product is intended to be used by a patient or pharmacist rather than a professional medical caregiver. The Company refers to this market as the Cercacor Market. The Company also granted Cercacor a non-exclusive, perpetual and worldwide license, with sublicense rights to use all Masimo SET® for the measurement of vital signs in the Cercacor Market. The Company exclusively licenses from Cercacor the right to make and distribute products in the professional medical caregiver markets, which the Company refers to as the Masimo Market, that utilize rainbow® technology for the measurement of carbon monoxide, methemoglobin, fractional arterial oxygen saturation, and hemoglobin, which includes hematocrit. To date, the Company has developed and commercially released devices that measure carbon monoxide, methemoglobin and hemoglobin using licensed rainbow® technology. In December 2013, the Company elected to exercise its option to acquire the licensing rights to five additional parameters. The licensing cost for these additional parameters, which was predetermined in the Cross-Licensing Agreement, was $0.5 million per license. The Company also has the option to obtain exclusive licenses to make and distribute products that utilize rainbow® technology for the monitoring of other non-vital signs measurements, including blood glucose, in product markets where the product is intended to be used by a professional medical caregiver. | ||||||||||||||||||||||||||||||||||||||||||||||||
The Company’s license to rainbow® technology for these parameters in these markets is exclusive on the condition that the Company continues to pay Cercacor royalties on its products incorporating rainbow® technology, subject to certain minimum aggregate royalty thresholds, and that the Company use commercially reasonable efforts to develop or market products incorporating the licensed rainbow® technology. The royalty is up to 10% of the rainbow® royalty base, which includes handhelds, tabletop and multiparameter devices. Handheld products incorporating rainbow® technology will carry up to a 10% royalty rate. For other products, only the proportional amount attributable for that portion of the Company’s devices used to monitor non-vital signs measurements, rather than for monitoring vital signs measurements, and sensors and accessories for measuring only non-vital sign parameters, will be included in the 10% rainbow® royalty base. Effective January 2009, for multiparameter devices, the rainbow® royalty base will include the percentage of the revenue based on the number of rainbow® enabled measurements. For hospital contracts where the Company places equipment and enters into a sensor contract, the Company pays a royalty to Cercacor on the total sensor contract revenues based on the ratio of rainbow® enabled devices to total devices. | ||||||||||||||||||||||||||||||||||||||||||||||||
Under the license, the Company is subject to certain specific annual minimum aggregate royalty payments in the amount of $5.0 million. Actual aggregate royalty payment liabilities to Cercacor under the license were $5.4 million, $5 million and $5 million for fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. In addition, in connection with a change in control as defined in the Cross-Licensing Agreement, the minimum aggregate annual royalties payable to Cercacor for carbon monoxide, methemoglobin, fractional arterial oxygen saturation, hemoglobin and/or glucose measurements will increase to $15.0 million per year, and up to $2.0 million per year for other rainbow® measurements. | ||||||||||||||||||||||||||||||||||||||||||||||||
In February 2009, in order to accelerate the product development of an improved hemoglobin spot-check measurement device, Pronto-7®, the Company’s board of directors agreed to fund additional Cercacor’s engineering expenses. Specifically, these expenses included third-party engineering materials and supplies expense as well as 50% of Cercacor’s total engineering and engineering related payroll expenses from April 2009 through June 2010, the original anticipated completion date of this product development effort. Since July 2010, Cercacor has continued to assist the Company with product development efforts and charged the Company accordingly. Beginning in 2012, due to a revised estimate of the support required by the Company to complete the various Pronto-7® related projects, the Company’s Board of Directors approved an increase in the percentage of Cercacor’s total engineering and engineering related payroll expenses funded by the Company from 50% to 60%. During the years ended December 28, 2013, December 29, 2012 and December 31, 2011, the total expenses for these additional services, material and supplies totaled $4.1 million, $3.6 million and $2.5 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||
Pursuant to authoritative accounting guidance, Cercacor is consolidated within the Company’s financial statements for all periods presented. The Company is required to consolidate Cercacor since the Company is deemed to be the primary beneficiary of Cercacor’s activities. This determination is based on the Company’s ability to direct the activities that most significantly impact Cercacor’s economic performance, and the Company’s obligation to absorb Cercacor’s expected losses. | ||||||||||||||||||||||||||||||||||||||||||||||||
Accordingly, all intercompany royalties, option and license fees and other charges between the Company and Cercacor as well as all intercompany payables and receivables have been eliminated in the consolidation. All direct engineering expenses that have been incurred by the Company and charged to Cercacor, or that have been incurred by Cercacor and charged to the Company, have not been eliminated and are included as research and development expense in the Company’s consolidated statements of comprehensive income. Assets of Cercacor can only be used to settle obligations of Cercacor and creditors of Cercacor have no recourse to the general credit of the Company. | ||||||||||||||||||||||||||||||||||||||||||||||||
For the foreseeable future, the Company anticipates that it will continue to consolidate Cercacor pursuant to the current authoritative accounting guidance; however, in the event that Cercacor is no longer considered a VIE, the Company may discontinue consolidating the entity. | ||||||||||||||||||||||||||||||||||||||||||||||||
Below are condensed consolidating schedules of the Balance Sheets as of December 28, 2013 and December 29, 2012, and Statements of Comprehensive Income for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 reflecting Masimo Corporation, Cercacor and related eliminations (in thousands). | ||||||||||||||||||||||||||||||||||||||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheets: | Masimo Corp | Cercacor | Cercacor Elim | Total | Masimo Corp | Cercacor | Cercacor Elim | Total | ||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 95,296 | $ | 170 | $ | — | $ | 95,466 | $ | 71,259 | $ | 295 | $ | — | $ | 71,554 | ||||||||||||||||||||||||||||||||
Receivables, net | 84,059 | 84,059 | 75,478 | 10 | (447 | ) | 75,041 | |||||||||||||||||||||||||||||||||||||||||
Inventories | 56,813 | — | — | 56,813 | 47,358 | — | — | 47,358 | ||||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 12,798 | 185 | — | 12,983 | 8,390 | 197 | — | 8,587 | ||||||||||||||||||||||||||||||||||||||||
Deferred tax asset, current | 19,636 | — | — | 19,636 | 12,048 | 863 | — | 12,911 | ||||||||||||||||||||||||||||||||||||||||
Other current assets | 2,841 | — | — | 2,841 | 3,896 | — | — | 3,896 | ||||||||||||||||||||||||||||||||||||||||
Deferred cost of goods sold | 61,714 | — | — | 61,714 | 52,103 | — | — | 52,103 | ||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 22,931 | 1,935 | — | 24,866 | 21,450 | 2,474 | — | 23,924 | ||||||||||||||||||||||||||||||||||||||||
Intangible assets, net | 30,452 | 4,683 | (7,031 | ) | 28,104 | 28,069 | 4,200 | (4,906 | ) | 27,363 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 22,793 | — | — | 22,793 | 22,824 | — | — | 22,824 | ||||||||||||||||||||||||||||||||||||||||
Deferred tax asset, long term | 22,565 | — | 22,565 | 20,119 | 959 | — | 21,078 | |||||||||||||||||||||||||||||||||||||||||
Other assets, long term | 6,787 | 2,021 | (1,986 | ) | 6,822 | 7,985 | 637 | (600 | ) | 8,022 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 438,685 | $ | 8,994 | $ | (9,017 | ) | $ | 438,662 | $ | 370,979 | $ | 9,635 | $ | (5,953 | ) | $ | 374,661 | ||||||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 27,418 | $ | 586 | $ | — | $ | 28,004 | $ | 26,412 | $ | 621 | $ | — | $ | 27,033 | ||||||||||||||||||||||||||||||||
Accrued liabilities and compensation | 51,205 | 1,309 | — | 52,514 | 40,622 | 1,494 | (447 | ) | 41,669 | |||||||||||||||||||||||||||||||||||||||
Income taxes payable | 2,205 | 201 | — | 2,406 | 1,504 | — | — | 1,504 | ||||||||||||||||||||||||||||||||||||||||
Deferred revenue, current | 20,755 | 500 | (500 | ) | 20,755 | 19,278 | 375 | (375 | ) | 19,278 | ||||||||||||||||||||||||||||||||||||||
Current portion of capital lease obligations | 111 | — | — | 111 | 55 | — | — | 55 | ||||||||||||||||||||||||||||||||||||||||
Deferred revenue, long-term | 566 | 6,531 | (6,531 | ) | 566 | 576 | 4,531 | (4,531 | ) | 576 | ||||||||||||||||||||||||||||||||||||||
Capital lease obligations, less current portion | 225 | — | — | 225 | 60 | — | — | 60 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | 9,459 | 207 | (1,986 | ) | 7,680 | 9,121 | 297 | (600 | ) | 8,818 | ||||||||||||||||||||||||||||||||||||||
EQUITY (DEFICIT) | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | 57 | 11 | (11 | ) | 57 | 57 | 11 | (11 | ) | 57 | ||||||||||||||||||||||||||||||||||||||
Treasury stock | (83,454 | ) | — | (83,454 | ) | (63,664 | ) | — | — | (63,664 | ) | |||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 273,129 | 427 | (427 | ) | 273,129 | 258,783 | 424 | (424 | ) | 258,783 | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | 3,995 | — | — | 3,995 | 3,542 | — | — | 3,542 | ||||||||||||||||||||||||||||||||||||||||
Retained earnings (deficit) | 133,014 | (778 | ) | 506 | 132,742 | 74,633 | 1,882 | (2,154 | ) | 74,361 | ||||||||||||||||||||||||||||||||||||||
Total Masimo Corporation stockholders’ equity (deficit) | 326,741 | (340 | ) | 68 | 326,469 | 273,351 | 2,317 | (2,589 | ) | 273,079 | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | (68 | ) | (68 | ) | — | — | 2,589 | 2,589 | ||||||||||||||||||||||||||||||||||||||
Total equity | 326,741 | (340 | ) | — | 326,401 | 273,351 | 2,317 | — | 275,668 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and equity (deficit) | $ | 438,685 | $ | 8,994 | $ | (9,017 | ) | $ | 438,662 | $ | 370,979 | $ | 9,635 | $ | (5,953 | ) | $ | 374,661 | ||||||||||||||||||||||||||||||
Year ended December 28, 2013 | Year ended December 29, 2012 | Year ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive | Masimo | Cercacor | Cercacor | Total | Masimo | Cercacor | Cercacor | Total | Masimo | Cercacor | Cercacor | Total | ||||||||||||||||||||||||||||||||||||
Income: | Corp | Elim | Corp | Elim | Corp | Elim | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 547,245 | $ | 5,732 | $ | (5,732 | ) | $ | 547,245 | $ | 493,233 | $ | 5,375 | $ | (5,375 | ) | $ | 493,233 | $ | 438,988 | $ | 5,375 | $ | (5,375 | ) | $ | 438,988 | |||||||||||||||||||||
Cost of goods sold | 193,775 | — | (5,357 | ) | 188,418 | 171,982 | — | (5,000 | ) | 166,982 | 149,854 | — | (5,000 | ) | 144,854 | |||||||||||||||||||||||||||||||||
Gross profit (loss) | 353,470 | 5,732 | (375 | ) | 358,827 | 321,251 | 5,375 | (375 | ) | 326,251 | 289,134 | 5,375 | (375 | ) | 294,134 | |||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 213,374 | 2,470 | (375 | ) | 215,469 | 191,870 | 2,453 | (375 | ) | 193,948 | 167,634 | 1,946 | (375 | ) | 169,205 | |||||||||||||||||||||||||||||||||
Research and development | 51,762 | 3,869 | — | 55,631 | 43,412 | 3,665 | — | 47,077 | 35,053 | 3,359 | — | 38,412 | ||||||||||||||||||||||||||||||||||||
Litigation award and defense costs | 8,010 | — | — | 8,010 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total operating expenses | 273,146 | 6,339 | (375 | ) | 279,110 | 235,282 | 6,118 | (375 | ) | 241,025 | 202,687 | 5,305 | (375 | ) | 207,617 | |||||||||||||||||||||||||||||||||
Operating income | 80,324 | (607 | ) | — | 79,717 | 85,969 | (743 | ) | — | 85,226 | 86,447 | 70 | — | 86,517 | ||||||||||||||||||||||||||||||||||
Non-operating income (expense) | (3,991 | ) | — | — | (3,991 | ) | (1,404 | ) | (1 | ) | — | (1,405 | ) | 26 | (12 | ) | — | 14 | ||||||||||||||||||||||||||||||
Income before provision for income taxes | 76,333 | (607 | ) | — | 75,726 | 84,565 | (744 | ) | — | 83,821 | 86,473 | 58 | — | 86,531 | ||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 17,952 | 2,053 | — | 20,005 | 22,293 | (410 | ) | — | 21,883 | 22,773 | (295 | ) | — | 22,478 | ||||||||||||||||||||||||||||||||||
Net income (loss) including noncontrolling interests | 58,381 | (2,660 | ) | — | 55,721 | 62,272 | (334 | ) | — | 61,938 | 63,700 | 353 | — | 64,053 | ||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | 2,660 | 2,660 | — | — | 334 | 334 | — | — | (353 | ) | (353 | ) | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Masimo Corporation stockholders | 58,381 | (2,660 | ) | 2,660 | 58,381 | 62,272 | (334 | ) | 334 | 62,272 | 63,700 | 353 | (353 | ) | 63,700 | |||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 453 | — | — | 453 | 2,268 | — | — | 2,268 | 349 | — | — | 349 | ||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Masimo Corporation stockholders | $ | 58,834 | $ | (2,660 | ) | $ | 2,660 | $ | 58,834 | $ | 64,540 | $ | (334 | ) | $ | 334 | $ | 64,540 | $ | 64,049 | $ | 353 | $ | (353 | ) | $ | 64,049 | |||||||||||||||||||||
Business_Combinations
Business Combinations | 12 Months Ended |
Dec. 28, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Business Combinations | |
Spire Semiconductor | |
On March 9, 2012, the Company acquired substantially all of the assets and certain liabilities of Spire Semiconductor, LLC (Spire) a maker of advanced light emitting diode and other advanced component-level technologies. Masimo Semiconductor, Inc. (Masimo Semiconductor), a wholly-owned subsidiary of Masimo Corporation, operates the business. The acquisition provided the Company with an advanced ability to develop custom components, accelerate development cycles, and optimize future product costs. Masimo Semiconductor, based in New Hampshire, specializes in wafer epitaxy, foundry services, and device fabrication for biomedical, telecommunications, consumer products and other markets. | |
Under the acquisition agreement, the Company paid $7.2 million and assumed $1.2 million of Spire’s liabilities. Simultaneous with this asset acquisition, the Company entered into a lease agreement with a related party to Spire Corporation, to lease manufacturing and office space in New Hampshire through March 2017. All the assets and liabilities acquired from Spire as of March 9, 2012, and Masimo Semiconductor’s operating results from March 10, 2012 through December 28, 2013 are included in these consolidated financial statements. | |
Phasein | |
On July 27, 2012, the Company acquired PHASEIN AB (Phasein), a developer and manufacturer of ultra-compact mainstream and sidestream capnography and gas monitoring technologies. The acquisition of Phasein’s technologies complements the Company’s breakthrough innovations for patient monitoring with a portfolio of products ranging from OEM solutions for external “plug-in-and-measure” capnography and gas analyzers and integrated modules to handheld capnometer devices. With multiple measurements delivered through either mainstream or sidestream options, the Company’s customers can benefit from CO2, N2O, O2, and anesthetic agent monitoring in many hospital environments, such as operating rooms, procedural sedation and intensive care units. | |
The Company paid $30.5 million for all outstanding shares of Phasein. The final purchase price allocation resulted in $16.1 million assigned to goodwill, $12.6 million assigned to intangible assets, $1.4 million assigned to inventory, $2.4 million assigned to various other assets and $2.0 million assigned to various liabilities. Phasein’s assets acquired and liabilities assumed, as well as its results of operations since the acquisition date, are included in these consolidated financial statements as of December 28, 2013. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 28, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
The Company’s Chief Executive Officer is also Chairman of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare, or the Masimo Foundation, a non-profit organization which was founded during the first quarter of 2010 to benefit worldwide healthcare. The Company’s Chief Financial Officer is also a Director of the Masimo Foundation. During the fiscal years ended December 28, 2013, December 29, 2012 and December 31, 2011, the Company made no contributions to the Masimo Foundation. | |
The Company’s Chief Executive Officer is also Chairman of the Patient Safety Movement Foundation, a non-profit organization which was founded in 2013 to benefit patient safety and healthcare. The Company’s Chief Financial Officer is also Secretary of the Patient Safety Movement Foundation. During the fiscal year ended December 28, 2013, Masimo Corporation paid $100,000 and Cercacor Laboratories, the Company’s VIE, paid $25,000 to the Patient Safety Movement Foundation. | |
The Company’s Chief Executive Officer is also Chairman of the Patient Safety Movement Coalition, a not-for-profit social welfare organization, which was founded in 2013 to promote patient safety. The Company’s Chief Financial Officer is also Secretary of the Patient Safety Movement Coalition. During the fiscal year ended December 28, 2013, the Company paid $100,000 to the Patient Safety Movement Coalition. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories consist of the following (in thousands): | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 26,758 | $ | 24,704 | ||||
Work in process | 6,310 | 4,856 | ||||||
Finished goods | 23,745 | 17,798 | ||||||
Total | $ | 56,813 | $ | 47,358 | ||||
Finished goods inventory held by distributors was $3.4 million and $3.0 million of December 28, 2013 and December 29, 2012, respectively. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 33,315 | $ | 27,646 | ||||
Tooling | 11,636 | 10,557 | ||||||
Computer equipment | 11,039 | 9,394 | ||||||
Furniture and office equipment | 4,921 | 4,339 | ||||||
Vehicles | 45 | 45 | ||||||
Leasehold improvements | 8,974 | 8,725 | ||||||
Demonstration units | 956 | 2,316 | ||||||
70,886 | 63,022 | |||||||
Accumulated depreciation and amortization | (49,415 | ) | (43,456 | ) | ||||
Construction-in-progress | 3,395 | 4,358 | ||||||
Total | $ | 24,866 | $ | 23,924 | ||||
The gross value of furniture and office equipment under capital lease obligations was $0.6 million and $0.3 million with accumulated depreciation of $0.3 million and $0.2 million, as of December 28, 2013 and December 29, 2012, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets | ' | |||||||
Intangible Assets | ||||||||
Intangible assets, net consist of the following (in thousands): | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Cost | ||||||||
Patents | $ | 18,750 | $ | 15,645 | ||||
Customer relationships | 7,669 | 7,669 | ||||||
Acquired technology | 5,580 | 5,580 | ||||||
Trademarks | 3,338 | 3,116 | ||||||
Capitalized software development costs | 1,612 | 1,612 | ||||||
Other | 969 | 656 | ||||||
Total cost | 37,918 | 34,278 | ||||||
Accumulated amortization | ||||||||
Patents | (5,679 | ) | (4,591 | ) | ||||
Customer relationships | (1,086 | ) | (320 | ) | ||||
Acquired technology | (834 | ) | (305 | ) | ||||
Trademarks | (653 | ) | (464 | ) | ||||
Capitalized software development costs | (1,270 | ) | (1,085 | ) | ||||
Other | (292 | ) | (150 | ) | ||||
Total accumulated amortization | (9,814 | ) | (6,915 | ) | ||||
Net carrying amount | $ | 28,104 | $ | 27,363 | ||||
For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, total amortization expense was $2.7 million, $2.1 million and $1.6 million, respectively. | ||||||||
Estimated amortization expense for each of the fiscal years is as follows (in thousands): | ||||||||
Fiscal year | Amount | |||||||
2014 | $ | 2,922 | ||||||
2015 | 2,808 | |||||||
2016 | 2,513 | |||||||
2017 | 2,448 | |||||||
2018 | 2,254 | |||||||
Thereafter | 15,159 | |||||||
Total | $ | 28,104 | ||||||
During the year ended December 29, 2012, the Company acquired $14.6 million of intangible assets as part of acquisitions. The acquired intangibles are comprised of $7.2 million of customer relationships, $5.3 million of acquired technology, $1.1 million of trademarks and $1.0 million of patents. All of these acquired intangible assets have a 10 year weighted average amortization period. |
Goodwill
Goodwill | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill | ' | |||||||
Goodwill | ||||||||
Changes in the goodwill balance were as follows (in thousands): | ||||||||
Year ended | Year ended | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Goodwill, beginning of period | $ | 22,824 | $ | 448 | ||||
Goodwill as a result of acquisitions | — | 21,407 | ||||||
Foreign currency translation adjustment | (31 | ) | 969 | |||||
Goodwill, end of period | $ | 22,793 | $ | 22,824 | ||||
Other_Liabilities_LongTerm
Other Liabilities, Long-Term | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Liabilities, Long-Term | ' | |||||||
Other Liabilities, Long-Term | ||||||||
Other long-term liabilities consist of the following (in thousands): | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Unrecognized tax benefit | $ | 5,769 | $ | 6,123 | ||||
Unfavorable lease liability related to the Spire acquisition | 1,358 | 1,977 | ||||||
Deferred rent, long-term | 533 | 676 | ||||||
Other | 20 | 42 | ||||||
Total other liabilities, long-term | $ | 7,680 | $ | 8,818 | ||||
The unrecognized tax benefit relates to the Company’s long-term portion of tax liability. Authoritative guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. See Note 15 to these consolidated financial statements for further details. |
Equity
Equity | 12 Months Ended |
Dec. 28, 2013 | |
Equity [Abstract] | ' |
Equity | ' |
Equity | |
Series A Junior Participating Preferred Stock and Stockholder Rights Plan | |
On November 8, 2007, the Company authorized and declared a dividend of one preferred stock purchase right, or a Right, for each outstanding share of its common stock to stockholders of record at the close of business on November 26, 2007, or the Record Date. Each Right entitles the registered holder to purchase from the Company one thousandth of one share of the Company’s Series A junior participating preferred stock, par value $0.001 per share, at a purchase price equal to $136.00 per Right, subject to adjustment. In addition, one Right will be issued with each share of common stock that becomes outstanding after the Record Date, and prior to the earliest of the distribution date, the date the Rights are redeemed, or the Final Expiration Date of November 8, 2017. In connection with the stockholder rights plan described herein, the Board designated 100,000 shares of preferred stock as Series A junior participating preferred stock, as set forth in the Certificate of Designation of Series A junior participating preferred stock. | |
Until a Right is exercised, the holder of such Right will have no rights as a stockholder of the Company, beyond those as an existing stockholder, including, without limitation, the right to vote or to receive dividends. Subject to certain exceptions specified in the Rights Agreement, the Rights will separate from the common stock. The Rights have certain anti-takeover effects. The Rights will cause dilution to a person or group that attempts to acquire the Company in a transaction which the Board does not approve is in the best interests of the Company and its stockholders. | |
The shares of Series A junior preferred stock issuable upon exercise of the Rights have the following characteristics: they are not redeemable; the holders of preferred stock are entitled, when, as and if declared, to minimum preferential quarterly dividend payments of an amount equal to (i) $1.00 per share or (ii) 1,000 times the aggregate per share amount of all cash dividends and 1,000 times the aggregate per share amount of all non-cash dividends or other distributions; the holders of preferred stock are entitled, in the event of a liquidation, dissolution or winding up, to a minimum preferential payment equal to $1,000 per share, plus all accrued and unpaid dividends, provided that the holders shall be entitled to receive 1,000 times the aggregate payment made per common share; the holders of preferred stock are entitled to 1,000 votes per share, voting together with the common stock; and the holders of preferred stock are entitled, in the event of a merger, consolidation or other transaction in which outstanding shares of common stock are converted or exchanged, to receive 1,000 times the amount received per share of common stock. | |
Dividend Payments | |
In October 2012, the Company declared a special $1.00 per share cash dividend, payable on December 11, 2012 to stockholders of record as of the close of business on November 27, 2012. The total dividend payout was $57.3 million, which was made from retained earnings. | |
Stock Repurchase Program | |
In August 2011, the Company’s board of directors (Board) authorized the repurchase of up to 3.0 million shares of common stock under a repurchase program, which terminated pursuant to its terms in April 2012. The stock repurchase program was carried out at the discretion of a committee comprised of the Company’s Chief Executive Officer and Chief Financial Officer | |
through open market purchases under a Rule 10b5-1trading plan. The Company paid for these repurchases with available cash and cash equivalents. During the year ended December 31, 2011, 1.8 million shares were repurchased, at an average price of | |
$19.61 per share, totaling $36.2 million. During the year ended December 29, 2012, 1.2 million shares were repurchased, at an average price of $22.74 per share, totaling $26.3 million, which completed the stock repurchase program. | |
In February 2013, the Company's Board authorized the repurchase of up to 6.0 million shares of common stock under a new repurchase program which is expected to continue for a period of up to 36 months from the effective date of the program unless it is terminated earlier by the Company's Board. The stock repurchase program may be carried out at the direction of the Company's Chief Executive Officer and Chief Financial Officer through open market purchases, block trades, one or more trading plans adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission, and in privately negotiated transactions. Any repurchases will be subject to the availability of stock, general market conditions, the trading price of the stock, available capital, alternative uses for capital and the Company's financial performance. The Company expects to fund the stock repurchase program through its available cash, future cash from operations, or other potential sources of capital. During the year ended December 28, 2013, 1.0 million shares were repurchased, at an average price of $19.79 per share, totaling $19.8 million. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||
Share-Based Compensation | |||||||||||||||||||||
On August 7, 2007, in connection with the Company’s initial public offering, the 2007 Stock Incentive Plan, or the 2007 Plan, became effective. Under the 2007 Plan, 3.0 million shares of common stock were initially reserved for future issuance, plus shares available under the prior year equity incentive plans, including shares that become available under the 2007 Plan due to forfeitures at prices not less than the fair market value of the Company’s common stock on the date the option is granted. The options generally vest annually over five years using the straight-line method, unless otherwise provided, and expire ten years from the date of grant. Options forfeited under any Stock Incentive Plan are automatically added to the share reserve of the 2007 Plan. Pursuant to the “evergreen” provision contained in the 2007 Plan, an additional 1.7 million shares of common stock were added to the share reserve of the 2007 Plan on both January 1, 2012 and January 3, 2010, which represented 3% of the Company’s total shares outstanding as of the years ended December 31, 2011 and January 2, 2010, respectively. No shares were added to the share reserve for the year ended January 1, 2011. The Company may terminate the 2007 Plan at any time. If not terminated sooner, the 2007 Plan will automatically terminate on August 7, 2017. | |||||||||||||||||||||
The number and weighted average exercise price of options issued and outstanding under all stock option plans are as follows (in thousands, except for exercise price): | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Options outstanding, beginning of period | 8,368 | $ | 22.78 | 8,277 | $ | 22.68 | 6,941 | $ | 21.32 | ||||||||||||
Granted | 1,653 | $ | 21.17 | 754 | $ | 22.17 | 2,277 | $ | 23.85 | ||||||||||||
Canceled | (795 | ) | $ | 24.53 | (447 | ) | $ | 27.3 | (312 | ) | $ | 27.62 | |||||||||
Expired | — | $ | — | — | $ | — | — | $ | — | ||||||||||||
Exercised | (315 | ) | $ | 10.49 | (216 | ) | $ | 7.62 | (629 | ) | $ | 9.44 | |||||||||
Options outstanding, end of period | 8,911 | $ | 22.76 | 8,368 | $ | 22.78 | 8,277 | $ | 22.68 | ||||||||||||
Options exercisable, end of period | 5,188 | $ | 22.69 | 4,632 | $ | 21.29 | 3,636 | $ | 19.45 | ||||||||||||
Options available for grant, end of period | 5,795 | 4,934 | 3,493 | ||||||||||||||||||
At December 28, 2013, an aggregate of 14.7 million, shares of common stock were reserved for future issuance under the plans. | |||||||||||||||||||||
The Black-Scholes option pricing model is used to estimate the fair value of options granted under the Company’s share-based compensation plans. The range of assumptions used and the resulting weighted-average fair value of options granted at the date of grant were as follows: | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
Risk-free interest rate | 0.7% to 1.8% | 0.7% to 1.3% | 0.9% to 2.5% | ||||||||||||||||||
Expected term | 5.1 years to 5.5 years | 5.5 years to 5.5 years | 5.3 years to 5.5 years | ||||||||||||||||||
Estimated volatility | 31.2% to 39.6% | 36.6% to 42.6% | 36.7% to 43.2% | ||||||||||||||||||
Expected dividends | 0% | 0% | 0% | ||||||||||||||||||
Weighted-average fair value of options granted | $7.53 per share | $7.98 per share | $9.44 per share | ||||||||||||||||||
Risk-free interest rate. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with a remaining term approximately equal to the expected life of the Company’s stock options. | |||||||||||||||||||||
Expected term. The expected term represents the average period that the Company’s stock options are expected to be outstanding. The expected term is based on both the Company’s specific historical option exercise experience, as well as expected term information available from a peer group of companies with a similar vesting schedule. | |||||||||||||||||||||
Estimated volatility. The estimated volatility is the amount by which the Company’s share price is expected to fluctuate during a period. The Company’s estimated volatilities for 2013 are based on historical and implied volatilities of the Company’s share price over the expected term of the option. The Company's estimated volatilities for 2012 and 2011 are based on historical and implied volatilities of the Company's share price and historical and implied volatilities of a peer group of companies over the expected term of the option. | |||||||||||||||||||||
Expected dividends. The Company’s board of directors may from time to time declare, and the Company may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law. Any determination to declare and pay dividends will be made by the Company’s board of directors and will depend upon the Company’s results of operations, earnings, capital requirements, financial condition, business prospects, contractual restrictions and other factors deemed relevant by the board of directors. In the event a dividend is declared, there is no assurance with respect to the amount, timing or frequency of any such dividends. The dividend declared in 2012 was deemed to be a special dividend and there is no assurance that special dividends will be declared again during the expected term. Based on this uncertainty and unknown frequency, for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, no dividend rate was used in the assumptions to calculate the share-based compensation expense. | |||||||||||||||||||||
Estimated forfeiture rate. The Company is required to develop an estimate of the number of stock options that will be forfeited due to employee turnover. Adjustments in the estimated forfeiture rates can have a significant effect on its reported share-based compensation, as it recognizes the cumulative effect of the rate adjustments for all expense amortization in the period the estimated forfeiture rates were adjusted. The Company estimates and adjusts forfeiture rates based on a periodic review of recent forfeiture activity and expected future employee turnover. Adjustments in the estimated forfeiture rates could also cause changes in the amount of expense that it recognizes in future periods. | |||||||||||||||||||||
As of December 28, 2013, there was $25.9 million of total unrecognized share-based compensation expense related to unvested options granted or modified on or after January 1, 2006. That expense is expected to be recognized over a weighted average period of 3.4 years as of December 28, 2013. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire award. The total fair value of all options vesting during 2013, 2012 and 2011, aggregated $12.3 million, $14.3 million and $12.1 million, respectively. The aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of December 28, 2013 was $59.9 million. The aggregate intrinsic value of options exercisable, with an exercise price less than the closing price of the Company’s common stock, as of December 28, 2013 was $37.0 million. The aggregate intrinsic value of options exercised during 2013, 2012 and 2011 was $4.2 million, $3.1 million and $12.4 million, respectively. The aggregate intrinsic value is calculated as the difference between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The weighted average remaining contractual term of options outstanding with an exercise price less than the closing price of the Company’s common stock, as of December 28, 2013 was 6.4 years. The weighted average remaining contractual term of options exercisable with an exercise price less than the closing price of the Company’s common stock, as of December 28, 2013 was 4.5 years. The total income tax benefit recognized in the consolidated statements of comprehensive income for share-based compensation expense was $3.9 million, $4.9 million and $4.8 million for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. | |||||||||||||||||||||
The following table presents the total share-based compensation expense that is included in each functional line item of the consolidated statements of comprehensive income (in thousands): | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cost of goods sold | $ | 354 | $ | 480 | $ | 383 | |||||||||||||||
Selling, general and administrative | 9,407 | 10,775 | 10,268 | ||||||||||||||||||
Research and development | 1,913 | 2,842 | 3,025 | ||||||||||||||||||
Total | $ | 11,674 | $ | 14,097 | $ | 13,676 | |||||||||||||||
The schedule below reflects the number and weighted average exercise price of outstanding and exercisable options segregated by exercise price ranges (in thousands, except remaining contractual life): | |||||||||||||||||||||
December 28, 2013 | 29-Dec-12 | ||||||||||||||||||||
Options Outstanding | Options | Options Outstanding | Options | ||||||||||||||||||
Exercisable | Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of | Average | Number of | Number of | Average | Number of | |||||||||||||||
Options | Remaining | Options | Options | Remaining | Options | ||||||||||||||||
Contractual | Contractual | ||||||||||||||||||||
Life | Life | ||||||||||||||||||||
$2.75 to $4.00 | 279 | 1.01 | 279 | 425 | 1.49 | 425 | |||||||||||||||
$4.67 to $12.00 | 696 | 2.46 | 696 | 745 | 3.44 | 745 | |||||||||||||||
$12.87 to $16.00 | 549 | 3.39 | 549 | 580 | 4.39 | 580 | |||||||||||||||
$17.84 to $23.98 | 3,635 | 8.06 | 986 | 2,592 | 8.25 | 662 | |||||||||||||||
$24.00 to $28.99 | 1,708 | 6.2 | 1,077 | 1,811 | 6.98 | 885 | |||||||||||||||
$29.07 to $31.99 | 1,734 | 5.37 | 1,311 | 1,902 | 6.3 | 1,090 | |||||||||||||||
$32.21 to $38.30 | 117 | 5.28 | 98 | 117 | 6.28 | 75 | |||||||||||||||
$38.60 to $41.51 | 193 | 4.4 | 192 | 196 | 5.41 | 170 | |||||||||||||||
Total | 8,911 | 6.12 | 5,188 | 8,368 | 6.4 | 4,632 | |||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
Commitments and Contingencies | ||||||||||||
Leases | ||||||||||||
The Company leases its facilities in North America, Europe and Asia under operating lease agreements expiring at various dates through December 2020. Certain facilities leases contain predetermined price escalations and in some cases renewal options. The Company recognizes the lease costs using a straight line method based on total lease payments. The Company also received certain leasehold improvement incentives totaling $0.7 million for its headquarters facilities in the U.S. These leasehold improvement incentives have been recorded as deferred rent and are being amortized as a reduction to rent expense on a straight-line basis over the life of the lease. As of December 28, 2013 and December 29, 2012, rent expense accrued in excess of the amount paid aggregated $0.7 million and $0.8 million, respectively, and is classified in other liabilities in the accompanying consolidated balance sheets. The Company also leases automobiles in Europe that are classified as operating leases and expire at various dates through June 2015. The majority of these leases are non-cancelable. The Company also has capital leases outstanding for office equipment all of which are non-cancelable. | ||||||||||||
Future minimum lease payments, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): | ||||||||||||
As of December 28, 2013 | ||||||||||||
Fiscal year | Operating | Capital | Total | |||||||||
Leases | Leases | |||||||||||
2014 | $ | 5,336 | $ | 125 | $ | 5,461 | ||||||
2015 | 3,893 | 87 | 3,980 | |||||||||
2016 | 3,221 | 80 | 3,301 | |||||||||
2017 | 1,696 | 75 | 1,771 | |||||||||
2018 | 1,081 | — | 1,081 | |||||||||
Thereafter | 2,109 | — | 2,109 | |||||||||
Total | $ | 17,336 | $ | 367 | $ | 17,703 | ||||||
Rental expense related to operating leases for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 and was $5.1 million, $4.6 million, and $3.8 million, respectively. Included in the future capital lease payments as of December 28, 2013 is interest aggregating $31,000. | ||||||||||||
Employee Retirement Savings Plan | ||||||||||||
In 1996, the Company adopted the Masimo Retirement Savings Plan, or the Plan, which is a 401(k) plan covering all of the Company’s full-time U.S. employees who meet certain eligibility requirements. In general, the Company matches an employee’s contribution up to 3% of the employee’s compensation, subject to a maximum amount. The Company may also contribute to the Plan on a discretionary basis. The Company contributed $1.5 million, $1.4 million and $1.2 million to the Plan for the years ended December 28, 2013, December 29, 2012, and December 31, 2011, respectively, all in the form of matching contributions. | ||||||||||||
Employment and Severance Agreement | ||||||||||||
As of December 28, 2013, the Company had an employment agreement with one of its key employees that provides for an aggregate annual base salary with annual increases at the discretion of the Compensation Committee of the board. The employment agreement provides for an annual bonus based on the Company’s attainment of certain objectives and goals. The agreement has an initial term of three years, with automatic daily renewal, unless either the Company or the executive notifies the other party of non-renewal of the agreement. Also, under this employment agreement, the key employee may be entitled to receive certain salary, equity, tax, medical and life insurance benefits if he is terminated by the Company, if he terminates his employment for good reason under certain circumstances or if there is a change in control of the Company. | ||||||||||||
As of December 28, 2013, the Company had severance plan participation agreements with six of its executive officers. The participation agreements, or Agreements, are governed by the terms and conditions of the Company’s 2007 Severance Protection Plan (Severance Plan), which became effective on July 19, 2007 and was amended effective December 31, 2008. Under the Agreements, each executive officer may be entitled to receive certain salary, equity, medical and life insurance benefits if he is terminated by the Company without cause or terminates his employment for good reason under certain circumstances. The executive officers are also required to give the Company six months advance notice of their resignation under certain circumstances. | ||||||||||||
Purchase Commitments | ||||||||||||
Pursuant to contractual obligations with vendors, the Company had $61.4 million, of purchase commitments as of December 28, 2013, which is expected to be purchased within one year. These purchase commitments were made for certain inventory items to secure better pricing and to ensure the Company will have raw materials when necessary. | ||||||||||||
Concentrations of Risk | ||||||||||||
The Company is exposed to credit loss for the amount of cash deposits with financial institutions in excess of federally insured limits. As of December 28, 2013, the Company had $67.7 million of bank balances of which $2.5 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries deposit insurance organizations. The Company invests its excess cash deposits in U.S. Treasury bills and money market accounts with major financial institutions. As of December 28, 2013, the Company had $26.0 million in U.S. Treasury bills which are guaranteed by the U.S. federal government and $1.8 million in money market funds that are not guaranteed by the U.S. federal government. | ||||||||||||
While the Company and its contract manufacturers rely on sole source suppliers for certain components, steps have been taken to minimize the impact of a shortage or stoppage of shipments, such as maintaining a safety stock of inventory and designing products that may be easily modified to use a different component. However, there can be no assurance that a shortage or stoppage of shipments of the materials or components that the Company purchases will not result in a delay in production, or adversely affect the Company’s business. | ||||||||||||
The Company’s ability to sell its products to U.S. hospitals depends in part on its relationships with Group Purchasing Organizations, or GPOs. Many existing and potential customers for the Company’s products become members of GPOs. GPOs negotiate pricing arrangements and contracts, sometimes exclusively, with medical supply manufacturers and distributors, and these negotiated prices are made available to a GPO’s affiliated hospitals and other members. For the years ended December 28, 2013, December 29, 2012, and December 31, 2011 revenue from the sale of the Company’s pulse oximetry products to customers affiliated with GPOs amounted to $287.9 million, $253.7 million, and $223.8 million , respectively. | ||||||||||||
As of December 28, 2013, two different just-in-time distributors represented 8% and 9% of the accounts receivable balance respectively. As of December 29, 2012, one just-in-time distributor represented 5% of the accounts receivable balance. | ||||||||||||
For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, the Company recorded $29.8 million, $28.3 million, and $32.5 million respectively, in royalty revenues from Covidien pursuant to the original settlement agreement and amendments. The royalty rate was 13% through March 14, 2011, and as part of the second amendment to the original settlement agreement with Covidien, declined to 7.75% beginning March 15, 2011. The current royalty agreement extends through March 14, 2014. In exchange for this royalty payment, the Company has provided Covidien the ability to ship its patent infringing product with a covenant not to sue Covidien as long as they abide by the terms of the agreement. | ||||||||||||
Litigation | ||||||||||||
On February 3, 2009, the Company filed a patent infringement suit against Philips Electronics North America Corporation and Philips Medizin Systeme Böblingen GmbH related to Philips’ FAST pulse oximetry technology and certain of Philips patient monitors. The suit was brought in the U.S. District Court for the District of Delaware. Two patents originally asserted in this suit, related to the Company’s Measure-Through Motion technology, were successfully enforced in the Company’s previous suit against Nellcor. On June 15, 2009, Philips Electronics North America Corporation and Philips Medizin Systeme Böblingen GmbH answered the Company’s complaint and Philips Electronics North America Corporation filed antitrust and patent infringement counterclaims against the Company as well as counterclaims seeking declaratory judgments of invalidity on the patents asserted by the Company against Philips. On July 9, 2009, the Company filed its answer denying Philips’ counterclaims and asserting various defenses. The Company also asserted counterclaims against Philips for fraud, intentional interference with prospective economic advantage and for declaratory judgments of noninfringement and invalidity with respect to the patents asserted by Philips against the Company. Philips later added a claim for infringement of one additional patent. Subsequently, the Court bifurcated Philips’ antitrust claims and its patent misuse defense, as well as stayed the discovery phase on those claims pending trial in the patent case. On October 4, 2010, the Court limited the number of patents to be construed to four for the Company and three for Philips. Further, on October 6, 2010, the Court denied Philips’ motion to bifurcate and stay damages in the patent case. On January 17, 2012, the District Court Judge issued a claim construction order. In 2012, the parties completed expert reports and discovery on some of the patents. In addition, in 2012, the Company asserted additional patents, and the Court ordered that these patents be tried in a second phase. In 2013, the Magistrate Judge issued reports and recommendations relating to various summary judgment motions filed by the parties. On December 2, 2013, the Court heard oral argument on the parties’ objections to the Magistrate Judge’s reports and recommendations. The objections are currently pending before the District Court Judge, and no order has been issued on the objections. The Company believes that it has good and substantial defenses to the antitrust and patent infringement claims asserted by Philips. There is no guarantee that the Company will prevail in this suit or receive any damages or other relief if it does prevail. | ||||||||||||
On December 21, 2012, the Company filed suit against Mindray DS USA, Inc. and Shenzhen Mindray Bio-Medical Electronics Co, Ltd. in the U.S. District Court for the Central District of California. The complaint alleges patent infringement, breach of contract and other claims. Mindray has not yet filed its response to the complaint. Mindray DS USA, Inc. was dismissed from this case based on venue. On June 3, 2013, Shenzhen Mindray answered the Company’s complaint and filed antitrust and related counterclaims against the Company, as well as counterclaims seeking declaratory judgments of invalidity and non-infringement on the patents asserted by the Company against Shenzhen Mindray. On June 24, 2013, the Company filed its answer denying Shenzhen Mindray’s counterclaims and asserting various defenses. On July 17, 2013, the Court granted Shenzhen Mindray’s motion to dismiss the patent claims without prejudice to allow the Company to amend the complaint to provide additional detail supporting Shenzhen Mindray’s direct and indirect infringement of the Company’s patents. On the same day, the Court denied Shenzhen Mindray’s motion to dismiss the Company’s non-patent claims. On August 5, 2013, the Company filed a first amended complaint. On August 21, 2013, Shenzhen Mindray answered the Company’s complaint and reasserted the counterclaims it asserted on June 3, 2013, as well as two additional counterclaims alleging patent infringement. On September 16, 2013, the Company filed its answer denying Shenzhen Mindray’s counterclaims and asserting various defenses. On October 31, 2013, the Court issued a scheduling order setting a trial date of November 4, 2014. On December 10, 2013, Shenzhen Mindray filed a second amended answer and counterclaims, including a new counterclaim for tortious interference. On January 2, 2014, the Company filed a motion for judgment on the pleadings as to Shenzhen Mindray’s antitrust counterclaims and inequitable conduct counterclaims and defenses. That motion is pending before the Court. The Company believes that it has good and substantial defenses to the antitrust, patent infringement and other counterclaims asserted by Shenzhen Mindray. There is no guarantee that the Company will prevail in this suit or receive any damages or other relief if it does prevail. | ||||||||||||
On December 10, 2013, the Company filed suit against Mindray DS USA, Inc., Shenzhen Mindray, and Mindray Medical International Ltd. in the Superior Court of New Jersey. The complaint alleges breach of contract and related claims. On January 17, 2014, Mindray DS USA filed a notice of removal removing the case to the U.S. District Court for the District of New Jersey. On January 24, 2014, Mindray DS USA, Inc. filed a motion seeking to dismiss or stay the action in view of the Company’s action against Shenzhen Mindray in the Central District of California. That motion is pending before the Court and no order from the Court has issued. There is no guarantee that the Company will prevail in this suit or receive any damages or other relief if it does prevail. | ||||||||||||
In September 2012, a shareholder derivative lawsuit was filed in the U.S. District Court for the District of Delaware by Joseph Ausikaitis naming the Company’s directors and certain executive officers as defendants and the Company as the nominal defendant. The lawsuit alleges claims of breach of fiduciary duty and unjust enrichment in connection with the grant or receipt of stock options under the Company’s 2007 Stock Incentive Plan and related policies. The lawsuit seeks unspecified money damages on the Company’s behalf from the officer and director defendants, various forms of equitable and/or injunctive relief, attorneys’ and other professional fees and costs and various other forms of relief. In November 2012, the defendants filed a motion to dismiss the action, which was denied by the court in July 2013. Although the outcome in this case cannot be determined, the Company does not expect it to have a material financial impact on its results of operations. | ||||||||||||
In November 2010, the Company voluntarily notified the FDA that it had received allegations regarding the safety and efficacy of Pronto® and Pronto-7® products from certain former physician office sales representatives. In April 2011, the Company was informed by representatives of the U.S. Department of Justice (DOJ) that the former physician office sales representatives had filed a qui tam complaint in the U.S. District Court for the Central District of California. In 2011, the former physician office sales representatives also filed employment-related claims against the Company in arbitration stemming from their allegations regarding the safety and efficacy of the Company’s Pronto® and Pronto-7® products. In October 2013, the District Court granted summary judgment in the qui tam matter in the Company’s favor. The former sales representatives are appealing the District Court’s decision. On January 16, 2014, the Company was notified that the arbitrator awarded the plaintiffs approximately $5.4 million in damages in connection with their employment-related claims which the Company accrued in fiscal 2013. The Company intends to challenge this award, but there is no guarantee that the Company will prevail in such challenge. In addition, Masimo’s insurance carrier notified the Company that it believes that certain defense costs related to the employment claim may no longer be reimbursable. As a result, the Company accrued a liability of $2.6 million for the costs estimated to have been paid by the insurance company. While Masimo intends to challenge the insurance carrier’s position, there is no guarantee that the Company will prevail in its challenge. | ||||||||||||
On January 2, 2014, a putative class action complaint was filed against us by Physicians Healthsource, Inc. in the U.S. District Court for the Central District of California. The complaint alleges that we sent unsolicited facsimile advertisements in violation of the Junk Fax Protection Act of 2005 and related regulations. The complaint seeks $500 for each alleged violation, treble damages if the court finds the alleged violations to be knowing, plus interest, costs, and injunctive relief. The Company believes it has good and substantial defenses to the claims, but there is no guarantee that the Company will prevail. | ||||||||||||
On January 31, 2014, an amended putative class action complaint was filed against the Company in the United States District Court of the Northern District of Alabama by and on behalf of two participants in the Surfactant, Positive Pressure, and Oxygenation Randomized Trial at the University of Alabama. The complaint alleges product liability and negligence claims in connection with pulse oximeters the Company provided at the request of the study investigators for use in the trial. A previous version of the complaint also alleged a wrongful death claim, which the court dismissed on January 22, 2014. The amended complaint seeks unspecified damages, costs, interest, attorney fees, injunctive and other relief. The Company believes it has good and substantial defenses to the remaining claims, but there is no guarantee that the Company will prevail. | ||||||||||||
From time to time, the Company may be involved in other litigation relating to claims arising out of its operations in the normal course of business. The Company believes that it currently is not a party to any other legal proceedings which, individually or in the aggregate, would have a material adverse effect on its consolidated financial position, results of operations, or cash flows. |
Segment_Information_and_Enterp
Segment Information and Enterprise Reporting | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Information and Enterprise Reporting | ' | ||||||||||||||||||||
Segment Information and Enterprise Reporting | |||||||||||||||||||||
The Company’s chief decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in a single reporting segment, specifically noninvasive patient monitoring solutions and related products. The Company does not assess the performance of its geographic regions on other measures of comprehensive income or expense, such as depreciation and amortization, operating income or net income including noncontrolling interests. In addition, the Company’s assets are primarily located in the U.S. The Company does not produce reports for, or measure the performance of, its geographic regions on any asset-based metrics. Therefore, geographic information is presented only for revenues. | |||||||||||||||||||||
The following schedule presents an analysis of the Company’s product revenue based upon the geographic area to which the product was shipped (in thousands): | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
Geographic Area by Destination | |||||||||||||||||||||
North and South America | $ | 378,810 | 73 | % | $ | 341,672 | 73 | % | $ | 301,583 | 74 | % | |||||||||
Europe, Middle East and Africa | 83,430 | 16 | 68,010 | 15 | 58,617 | 14 | |||||||||||||||
Asia and Australia | 55,189 | 11 | 55,246 | 12 | 46,287 | 12 | |||||||||||||||
Total product revenue | $ | 517,429 | 100 | % | $ | 464,928 | 100 | % | $ | 406,487 | 100 | % | |||||||||
United States | $ | 361,631 | $ | 327,574 | $ | 287,138 | |||||||||||||||
The Company possesses licenses from the U.S. Treasury Department’s Office of Foreign Assets Control for conducting business with certain countries identified by the State Department as state sponsors of terrorism. Although the Company does not have any subsidiaries, affiliates, offices, investments or employees in any country identified as a state sponsor of terrorism, the Company has conducted an immaterial amount of business with distributors in Iran, Sudan and Syria relating to sale of products during the prior two fiscal years. The Company does not believe that these activities are material to its business, financial condition or results of operations. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The components of income before provision for income taxes are as follows (in thousands): | ||||||||||||
Year ended | Year ended | Year ended | ||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 50,782 | $ | 59,216 | $ | 62,730 | ||||||
Foreign | 24,944 | 24,605 | 23,801 | |||||||||
Total | $ | 75,726 | $ | 83,821 | $ | 86,531 | ||||||
The following table presents the current and deferred provision (benefit) for income taxes (in thousands): | ||||||||||||
Year ended | Year ended | Year ended | ||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 24,488 | $ | 26,332 | $ | 23,951 | ||||||
State | 2,426 | 2,411 | 621 | |||||||||
Foreign | 1,704 | (54 | ) | 1,123 | ||||||||
28,618 | 28,689 | 25,695 | ||||||||||
Deferred: | ||||||||||||
Federal | (7,281 | ) | (5,546 | ) | (2,415 | ) | ||||||
State | (970 | ) | (1,458 | ) | (544 | ) | ||||||
Foreign | (362 | ) | 198 | (258 | ) | |||||||
(8,613 | ) | (6,806 | ) | (3,217 | ) | |||||||
Total | $ | 20,005 | $ | 21,883 | $ | 22,478 | ||||||
Included in the 2013 and 2011 current tax provisions are net increases of $0.3 million and $0.9 million, respectively, for tax and accrued interest related to uncertain tax positions for each year. Also, included in the 2012 current tax provision is a net decrease of $1.7 million for tax and accrued interest related to uncertain tax positions. | ||||||||||||
The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: | ||||||||||||
Year ended | Year ended | Year ended | ||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory regular federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State provision, net of federal benefit | 1.3 | 0.7 | 0.1 | |||||||||
Nondeductible items | 0.9 | 1 | 0.6 | |||||||||
Foreign tax rate differential | (9.8 | ) | (10.1 | ) | (8.6 | ) | ||||||
Tax credits | (3.5 | ) | (0.5 | ) | (1.1 | ) | ||||||
Change in federal valuation allowance | 3 | — | — | |||||||||
Other | (0.5 | ) | — | — | ||||||||
Total | 26.4 | % | 26.1 | % | 26 | % | ||||||
On January 2, 2013, President Obama signed The American Taxpayer Relief Act of 2012 into law which reinstated the federal research tax credit (R&D Tax Credit) retroactively from January 1, 2012 through December 31, 2013. As a result of this legislation, the Company recorded additional R&D Tax Credits during fiscal 2013 for amounts generated in fiscal 2012 of approximately $1.0 million. In addition, as a result of Cercacor’s continuing operating losses, Cercacor management determined that there was insufficient positive evidence to support a more likely than not realization of its remaining deferred tax assets. As a result, Cercacor recorded a federal valuation allowance of approximately $2.3 million against the Cercacor deferred tax assets in fiscal 2013. | ||||||||||||
The components of the deferred tax assets are as follows (in thousands): | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Tax credits | $ | 3,203 | $ | 2,492 | ||||||||
Deferred revenue | 4,234 | 2,999 | ||||||||||
Acquired intangibles | 507 | 587 | ||||||||||
Net operating losses | 277 | 4,688 | ||||||||||
Accrued liabilities | 17,036 | 9,713 | ||||||||||
Share-based compensation | 19,385 | 17,660 | ||||||||||
Property and equipment | 670 | 590 | ||||||||||
Other | 2,149 | 1,473 | ||||||||||
Total | 47,461 | 40,202 | ||||||||||
Valuation allowance | (3,563 | ) | (2,441 | ) | ||||||||
Total deferred tax assets | 43,898 | 37,761 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | — | (15 | ) | |||||||||
Acquired intangibles | — | (2,305 | ) | |||||||||
State taxes and other | (1,697 | ) | (1,452 | ) | ||||||||
Total deferred tax liabilities | (1,697 | ) | (3,772 | ) | ||||||||
Net deferred tax assets | $ | 42,201 | $ | 33,989 | ||||||||
Current net deferred tax asset | 19,636 | 12,911 | ||||||||||
Long-term net deferred tax asset | 22,565 | 21,078 | ||||||||||
Net deferred tax assets | $ | 42,201 | $ | 33,989 | ||||||||
At December 28, 2013, the Company has $1.3 million of net operating loss carryforwards from its subsidiary in Sweden, which will carry forward indefinitely. The Company also has a $0.2 million of net operating losses from various states, which will begin to expire in 2028, all of which will be recorded in equity when realized. The Company has state research and development tax credits of $2.7 million which will carry forward indefinitely. Additionally, the Company has $0.5 million of investment tax credit on research and development expenditures from its operations in Canada which will begin to expire in 2019. The Company believes that it is more likely than not that the deferred tax assets related to these carryforwards will be realized. In making this determination, the Company considered all available positive and negative evidence, including scheduled reversals of liabilities, projected future taxable income, tax planning strategies and recent financial performance. | ||||||||||||
Cercacor, the Company’s VIE, is not included in the Company’s consolidated federal or state income tax returns. At December 28, 2013, Cercacor has federal research and development tax credit carryforwards of $0.6 million which will begin to expire in 2028 and state research and development tax credit carryforwards of $0.9 million, which will carry forward indefinitely. In addition, Cercacor has federal alternative minimum tax credit carryforwards of $0.2 million which will also carry forward indefinitely. After considering all positive and negative evidence, including Cercacor’s continuing operating losses, Cercacor management believes that there is insufficient positive evidence to support a more likely than not realization of these carryforwards, as well as the rest of its net deferred tax assets, and therefore, has recorded a full valuation allowance against Cercacor’s net deferred tax assets. | ||||||||||||
As a result of certain business and employment actions undertaken by the Company, income earned in a certain European country is subject to a reduced tax rate through 2013, which can be extended through 2018, upon meeting certain employment thresholds. For the years ended December 28, 2013 and December 29, 2012, the estimated income tax benefit related to such business arrangement was $1.2 million and $1.2 million, respectively, and favorably impacted net income per diluted share by $0.02 and $0.02 respectively. There was no impact to net income per diluted share in prior years. | ||||||||||||
During the years ended December 28, 2013, December 29, 2012, and December 31, 2011, the Company recorded a tax benefit of $0.7 million, $0.4 million, and $1.7 million , respectively, from the exercise of non-qualified stock options and incentive stock options as a reduction of its income tax liability and an increase in equity. The tax benefit results from the difference between the fair value of the Company’s stock on the exercise dates and the exercise price of the option. | ||||||||||||
As of December 28, 2013, the Company has not provided for deferred income taxes on approximately $57.4 million of cumulative undistributed earnings of certain foreign subsidiaries, because such earnings are intended to be permanently reinvested in those operations. If such earnings were distributed, the Company would accrue estimated additional income tax expense of $17.6 million. | ||||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): | ||||||||||||
Year ended | Year ended | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Unrecognized tax benefits, beginning of period | $ | 6,685 | $ | 8,366 | ||||||||
Increase from tax positions in prior period | 265 | 47 | ||||||||||
Increase from tax positions in current period | 695 | 563 | ||||||||||
Settlements | (443 | ) | (1,725 | ) | ||||||||
Lapse of statute of limitations | (572 | ) | (566 | ) | ||||||||
Unrecognized tax benefits, end of period | $ | 6,630 | $ | 6,685 | ||||||||
The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $5.6 million and $5.7 million as of December 28, 2013 and December 29, 2012, respectively. Both amounts are net of any federal and/or state benefits. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next 12 months due to the expiration of statutes of limitation and audit settlements. However, due to the uncertainty surrounding the timing of these events, an estimate of the change within the next 12 months cannot be made at this time. | ||||||||||||
Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, the Company had accrued $0.9 million, $0.8 million and $0.7 million, respectively, for the payment of interest. | ||||||||||||
The Company conducts business in multiple jurisdictions, and as a result, one or more of the Company’s subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. The Company has concluded on all U.S. federal income tax matters for years through 2009. All material state, local and foreign income tax matters have been concluded for years through 2006. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 28, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
Subsequent Event | |
In 2011, certain former physician office sales representatives of the Company filed employment-related claims in arbitration stemming from their allegations regarding the Company’s Pronto® and Pronto-7® products. On January 16, 2014, the Company was notified that the arbitrator awarded the plaintiffs approximately $5.4 million in damages. In addition, the Company recorded a charge for $2.6 million for defense costs related to such employment claim that the Company's insurance carrier believes may not be reimbursable. The Company accrued theses costs in the quarter and year ended December 28, 2013. The Company intends to challenge the award, as well as the insurance carrier's position, but there can be no assurance that it will prevail. |
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||
Quarterly Financial Data (unaudited) | ||||||||||||||||
The following tables contain selected unaudited consolidated statements of comprehensive income data for each quarter of 2013 and 2012 (in thousands, except per share data): | ||||||||||||||||
Quarter ended | ||||||||||||||||
Fiscal 2013 | March 30, | June 29, | September 28, | December 28, | ||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
Total revenue | $ | 135,942 | $ | 137,422 | $ | 131,447 | $ | 142,435 | ||||||||
Gross profit | 89,581 | 91,232 | 87,479 | 90,536 | ||||||||||||
Operating income | 23,141 | 23,180 | 20,743 | 12,653 | ||||||||||||
Net income attributable to Masimo Corporation stockholders | 16,428 | 17,038 | 15,602 | 9,313 | ||||||||||||
Net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.3 | $ | 0.28 | $ | 0.16 | ||||||||
Diluted | $ | 0.28 | $ | 0.3 | $ | 0.27 | $ | 0.16 | ||||||||
Quarter ended | ||||||||||||||||
Fiscal 2012 | March 31, | June 30, | September 29, | December 29, | ||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Total revenue | $ | 119,228 | $ | 122,775 | $ | 119,069 | $ | 132,161 | ||||||||
Gross profit | 79,305 | 81,432 | 78,333 | 87,181 | ||||||||||||
Operating income | 22,328 | 22,673 | 17,952 | 22,273 | ||||||||||||
Net income attributable to Masimo Corporation stockholders | 15,774 | 17,697 | 13,794 | 15,007 | ||||||||||||
Net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.31 | $ | 0.24 | $ | 0.26 | ||||||||
Diluted | $ | 0.27 | $ | 0.3 | $ | 0.24 | $ | 0.26 | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 28, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, (GAAP), and include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities, or VIEs, in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Fiscal Periods | ' | |
Fiscal Periods | ||
The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week year includes four quarters of 13 fiscal weeks while a 53 week fiscal year includes three 13 fiscal week quarters and one 14 fiscal week quarter. The last 53 week fiscal year was fiscal year 2008. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include: determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate reserves, valuation of the Company’s stock options, goodwill valuation, deferred taxes and any associated valuation allowances, distributor channel inventory, royalty revenues, deferred revenue, uncertain income tax positions, property taxes, litigation costs and related accruals. Actual results could differ from those estimates. | ||
Reclassification | ' | |
Reclassifications | ||
Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to current period presentation. | ||
Fair Value Measurements | ' | |
Fair Value Measurements | ||
Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: | ||
• | Level 1-Quoted prices in active markets for identical assets or liabilities. | |
• | Level 2-Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
• | Level 3-Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |
Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect | ||
the fair value option under this guidance as to specific assets or liabilities. There were no transfers between level 1, level 2 and level 3 inputs during the years ended December 28, 2013 or December 29, 2012. The Company carries cash and cash equivalents at cost which approximates fair value. As of December 28, 2013 and December 29, 2012, the Company did not have any short-term investments. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments and readily convertible into known amounts of cash to be cash equivalents. As of December 28, 2013, the Company’s cash balance was $67.7 million, comprised of checking accounts. Additionally, the Company had cash equivalents of $27.8 million, consisting of $26.0 million of U.S. Treasury bills and $1.8 million of money market funds. As of December 29, 2012, the Company’s cash balance was $38.0 million, comprised of checking accounts. Additionally, the Company had cash equivalents of $33.6 million, consisting of $32.0 million of U.S. Treasury bills and $1.6 million of money market funds. | ||
Accounts Receivable and Allowance for Doubtful Accounts | ' | |
Accounts Receivable and Allowance for Doubtful Accounts | ||
Accounts receivable consist of trade receivables recorded upon recognition of revenue for product revenues, reduced by reserves for estimated bad debts and returns. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. Collateral is not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible. | ||
Royalties Receivable | ' | |
Royalties Receivable | ||
Pursuant to the second amendment to its settlement agreement with Nellcor Puritan Bennett, Inc. (currently Covidien Ltd., or Covidien), royalties are paid to the Company based on a percentage of sales of Covidien U.S. based pulse oximetry products. The Company estimates the royalty receivable based on the royalty rate per the second amendment to its settlement agreement multiplied by its estimate of Covidien’s sales for each quarter. Any adjustments to the quarterly estimated receivable are recorded prospectively in the following quarter when the Company receives the Covidien royalty report and payment, which is generally 60 days after the end of each of Covidien’s fiscal quarters. The royalty receivable of $7.3 million as of December 28, 2013 represents the Company’s estimated amount due for the three months ended December 28, 2013. | ||
Inventories | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market. Cost is determined using a standard cost method, which approximates FIFO (first in, first out) and includes material, labor and overhead. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory that has a market price less than the carrying value in inventory. | ||
Property and Equipment | ' | |
Property and Equipment | ||
Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the improvements. Normal repair and maintenance costs are expensed as incurred, whereas significant improvements that materially increase values or extend useful lives are capitalized and depreciated over the remaining estimated useful lives of the related assets. Upon sale or retirement of depreciable assets, the related cost and accumulated depreciation or amortization are removed from the accounts and any gain or loss on the sale or retirement is recognized in income. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, depreciation expense of property and equipment, which includes amortization of equipment under capital leases, was $8.3 million, $7.3 million and $5.8 million, respectively. | ||
Intangible Assets | ' | |
Intangible Assets | ||
Intangible assets consist primarily of patents, trademarks, software development costs, customer relationships and acquired technology. Costs related to patents and trademarks, which include legal and application fees, are capitalized and amortized over the estimated useful lives using the straight-line method. Patent and trademark amortization commences once final approval of the patent or trademark has been obtained. Patent costs are amortized over the lesser of 10 years or the patent’s remaining legal life, which assumes renewals, and trademark costs over 17 years, and their associated amortization cost is included in selling, general and administrative expense in the accompanying consolidated statements of comprehensive income. For intangibles purchased in an asset acquisition or business combination, which mainly include patents, trademarks, customer relationships and acquired technology, the useful life is determined in the same manner as noted above. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, amortization of intangible assets was $2.7 million, $2.1 million and $1.6 million, respectively. As of December 28, 2013 and December 29, 2012, the total costs of patents not yet amortizing was $6.7 million and $5.4 million, respectively. As of December 28, 2013 and December 29, 2012, the total costs of trademarks not yet amortizing was $0.7 million and $0.6 million, respectively. Costs to renew intangibles are capitalized and amortized over the remaining useful life of the intangible. For the year ended December 28, 2013, total renewal costs capitalized for patents and trademarks were $0.5 million and $0.4 million, respectively. As of December 28, 2013, the weighted average number of years until the next renewal is one year for patents and six years for trademarks. | ||
The Company’s policy is to renew its patents and trademarks. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. | ||
In accordance with authoritative accounting guidance, costs related to the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability. For the years ended December 28, 2013 and December 29, 2012, the Company did not capitalize any of software development costs. The capitalized costs are amortized over the estimated life of the products of seven years. The Company amortized $0.2 million for each of the years ended December 28, 2013, December 29, 2012 and December 31, 2011. The Company had unamortized software development costs of $0.3 million and $0.5 million at December 28, 2013 and December 29, 2012, respectively, which is included within intangible assets, net on the consolidated balance sheets. | ||
Impairment of Goodwill and Intangible assets | ' | |
Impairment of Goodwill and Intangible assets | ||
Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead, is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment for each of its reporting units, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macroeconomic, industry-specific and company-specific factors including: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the first step of the two-step impairment test by comparing the fair value of the reporting unit, determined using future projected discounted operating cash flows, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, goodwill is considered impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of goodwill. The Company also has the option to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test. The Company may resume performing the qualitative assessment in any subsequent period. The annual impairment test is performed during the fourth fiscal quarter. | ||
The Company reviews long-lived assets and identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. | ||
Income Taxes | ' | |
Income Taxes | ||
The Company accounts for income taxes using the asset and liability method, under which the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss and tax credit carryforwards. Tax positions that meet a more-likely-than-not recognition threshold are recognized in the first reporting period that it becomes more-likely-than-not such tax position will be sustained upon examination. A tax position that meets this more-likely-than-not recognition threshold is recorded at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Previously recognized income tax positions that fail to meet the recognition threshold in a subsequent period are derecognized in that period. Differences between actual results and our assumptions, or changes in our assumptions in future periods, are recorded in the period they become known. The Company records potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. | ||
As a multinational corporation, the Company is subject to complex tax laws and regulations in various jurisdictions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment, and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation, evolution of regulations and court rulings. Therefore, the actual liability for U.S. or foreign taxes may be materially different from the Company’s estimates, which could result in the need to record additional liabilities or potentially to reverse previously recorded tax liabilities. | ||
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is recorded against any deferred tax assets when, in the judgment of management, it is more likely than not that all of or part of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods, and tax planning strategies. | ||
Revenue Recognition and Deferred Revenue | ' | |
Revenue Recognition and Deferred Revenue | ||
The Company derives product revenues primarily from four sources: (i) long-term sales contracts to end user hospitals in which the Company may provide up front monitoring equipment at no charge in exchange for a multi-year sensor purchase commitment; (ii) direct sales of pulse oximetry and related products to end user hospitals, emergency medical response organizations and other direct customers; (iii) direct sales of pulse oximetry and related products to distributors who then typically resell to end user hospitals, emergency medical response organizations and other direct customers; and (iv) direct sales of integrated circuit boards and sensors to OEM customers who both incorporate the Company’s embedded software technology into their multiparameter monitoring devices and resell the Company’s sensors. | ||
The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue from the sale of the Company’s products is generally recognized when title and risk of loss transfers to the customer upon shipment, the terms of which are shipping point or destination. The Company uses contracts and customer purchase orders to determine the existence of an arrangement. The Company uses shipping documents and/or third-party proof of delivery to verify that title has transferred. The Company assesses whether the fee is fixed or determinable based upon the terms of the agreement associated with the transaction. To determine whether collection is probable, the Company assesses a number of factors but primarily relies upon past transaction history with the customer, if available. | ||
The Company enters into agreements to sell pulse oximetry and related products and services as well as multiple deliverable arrangements that include various combinations of products and services. While the majority of the Company’s sales transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation is sometimes required to determine the appropriate accounting including: (a) whether an arrangement exists, (b) how the arrangement consideration should be allocated among the deliverables if there are multiple deliverables, (c) when to recognize revenue on the deliverables, and (d) whether undelivered elements are essential to the functionality of the delivered elements. Changes in judgments on these assumptions and estimates could materially impact the timing of revenue recognition. | ||
For contracts entered into prior to January 1, 2011, the Company has determined that its patented algorithm and software architecture, which resides within the monitors, is more than incidental to the product as a whole. Therefore, the monitoring hardware represents a software element. In accordance with authoritative guidance, the revenue from the sale of these products falls within the scope of software revenue recognition guidance. The Company has also determined that the sensors are considered essential to the functionality of the delivered elements. Accordingly, the Company does not recognize any revenue when the monitoring and related equipment is delivered to the hospital and installation and training is complete. The Company recognizes revenue for all of the delivered elements, on a pro-rata basis, as the sensors are delivered under the long-term sales contract. The cost of the monitoring equipment initially placed at the hospitals is deferred and amortized to cost of goods sold over the life of the underlying long-term sales contract. The Company also provides certain end-user hospitals with the ability to purchase sensors under rebate programs. Under these programs, the end-user hospitals may earn rebates based on their purchasing activity. The Company estimates and provides allowances for these programs at the time of sale as a reduction to revenue. | ||
In September 2009, the Financial Accounting Standards Board, or FASB, amended the accounting standards related to revenue recognition for arrangements with multiple deliverables. The new standard changes the requirements for establishing separate units of accounting in a multiple element arrangement and requires the allocation of arrangement consideration to each deliverable to be based on the relative selling price. The FASB also amended the accounting standards for revenue recognition to exclude software that is contained in a tangible product from the scope of software revenue guidance if the software is essential to the tangible product’s functionality. The Company adopted these new standards on a prospective basis. Therefore, the new standards apply only to revenue arrangements entered into or materially modified beginning January 2, 2011. Revenue arrangements entered into or modified prior to January 2, 2011 continue to be accounted for under the prior authoritative guidance. For revenue arrangements that were entered into or materially modified after the adoption of these standards, implementation of this new authoritative guidance had no significant impact on the Company’s reported revenue in fiscal 2011 as compared to revenue if the related arrangements entered into or materially modified after the effective date were subject to the accounting requirements in effect in the prior year. | ||
The new standards establish a hierarchy to determine the selling price to be used for allocating revenue to deliverables as follows: (i) vendor-specific objective evidence of fair value, or VSOE, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of the selling price, or ESP. VSOE of fair value is defined as the price charged when the same element is sold separately. VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. TPE generally does not exist for the majority of the Company’s products because of their uniqueness. The objective of ESP is to determine the price at which the Company would transact a sale if the product was sold on a stand-alone basis. In the absence of VSOE and TPE, the Company determines ESP for its products by considering multiple factors including, but not limited to, features and functionality of the product, geographies, type of customer, contractual prices pursuant to Group Purchasing Organization, or GPO, contracts, the Company’s pricing and discount practices, and market conditions. | ||
A deliverable in an arrangement qualifies as a separate unit of accounting if the delivered item has value to the customer on a stand-alone basis. Most of the Company’s products in a multiple deliverable arrangement qualify as separate units of accounting. In the case of the Company’s monitoring equipment products containing embedded Masimo SET® software, the Company has determined that the hardware and software components function together to deliver the products’ essential functionality, and therefore, represent a single deliverable. In accordance with the new guidance, the revenue from the sale of these products no longer falls within the scope of the software revenue recognition guidance. Software deliverables, such as rainbow® parameter software, which do not function together with hardware components to provide the products’ essential functionality, continue to be accounted for under software revenue recognition guidance. The Company’s multiple deliverable arrangements may therefore have software deliverables that are subject to the existing software revenue recognition guidance. The revenue for these multiple-element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the current revenue recognition accounting guidance for arrangements with multiple deliverables. | ||
Under long-term sensor purchase contracts, the sensors are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. The Company does not recognize any revenue when the monitoring and related equipment and software are delivered to the hospitals and installation and training is complete. The Company recognizes revenue for these delivered elements, on a pro-rata basis, as the sensors are delivered under the long-term purchase commitment. The adoption of the new guidance for revenue recognition did not change this pattern of revenue recognition for long-term sensor purchase contracts. The cost of the monitoring equipment initially placed at the hospitals is deferred and amortized to cost of goods sold over the life of the underlying long-term sensor purchase contract. | ||
The Company’s distributors purchase primarily sensor products which they then resell to hospitals that are typically fulfilling their purchase obligations to the Company under the end-user hospitals’ long-term sensor purchase commitments. Upon shipment to the distributor, revenue is deferred until the Company’s commitment to its end-user hospital is fulfilled, which occurs when the sensors are sold by the distributor to the end-user hospital. Certain of the Company’s distributors purchase products at specified distributor pricing and then may resell the product to end-user hospitals with whom the Company has separate pricing agreements. Where distributor prices are higher than end-user hospital contracted prices, the Company provides rebates to these distributors for the difference between distributor prices and end-user hospital prices. The Company estimates and provides allowances for the rebate programs at the time of sales as a reduction to revenue and accounts receivable. | ||
The Company also earns revenue from the sale of integrated circuit boards that use the Company’s software technology and license fees for allowing certain OEMs the right to use the Company’s technology in their products. The license fee is recognized upon shipment of the OEM’s product to its customers, as represented to the Company by the OEM. | ||
In general, customers do not have a right of return for credit or refund. However, the Company allows returns under certain circumstances. At the end of each period, the Company estimates and accrues for these returns as a reduction to revenue and accounts receivable. The Company estimates returns based on several factors, including contractual limitations and past returns history. | ||
In September 2005, the U.S. Federal Court of Appeals ruled that Mallinckrodt, Inc., now part of Covidien, and one of its subsidiaries, Nellcor Puritan Bennett, Inc., collectively referred to as Nellcor, infringed on the Company’s patents and ordered the lower court to enjoin Nellcor’s infringing products. On January 17, 2006, the Company settled all existing patent litigation with Covidien. Under terms of this original settlement agreement, Covidien agreed to pay the Company royalties on its total U.S. pulse oximetry revenue generated, at least through March 14, 2011, which the Company records as royalty revenue. On January 28, 2011, the Company entered into an amendment to this settlement agreement with Covidien. As part of this amendment, which became effective on March 15, 2011, Covidien agreed to pay the Company a royalty at a rate of 7.75% of its U.S. pulse oximetry revenue generated, from March 15, 2011 through at least March 15, 2014. | ||
The Covidien royalties are recognized by the Company based on U.S. sales of Covidien’s infringing products reported to the Company by Covidien. The Company recognizes royalty revenue based on the royalty rate pursuant to the amendment to the settlement agreement multiplied by its estimate of Covidien’s sales for each quarter. This estimated revenue is adjusted prospectively when the Company receives the Covidien royalty report, approximately 60 days after the end of the quarter. | ||
Taxes Collected From Customers and Remitted to Governmental Authorities | ' | |
Taxes Collected From Customers and Remitted to Governmental Authorities | ||
Pursuant to authoritative guidance, the Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities. | ||
Share-Based Compensation | ' | |
Share-Based Compensation | ||
Since January 1, 2006, the Company has expensed the estimated fair value of employee stock options and similar awards based on the fair value of the stock option on the date of grant, in accordance with the current authoritative accounting guidance. The cost is recognized over the period during which an employee is required to provide services in exchange for the stock option, which is usually the vesting period. The Company adopted the accounting standard using the prospective transition method that applies to stock options granted, modified or canceled subsequent to the date of adoption. Prior periods were not revised for comparative purposes. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire stock option. | ||
Options granted prior to January 1, 2006, were accounted for using the intrinsic value method and using the minimum value method for its pro forma disclosures, unless such options were modified, repurchased or canceled. The cash flows related to the reduction of income taxes paid as a result of the deduction triggered by employee exercise of stock options granted or modified prior to January 1, 2006 continue to be presented as an operating cash flow. | ||
Shipping and Handling Costs and Revenue | ' | |
Shipping and Handling Costs and Revenue | ||
All shipping and handling costs are expensed as incurred and are recorded as a component of cost of sales. Charges for shipping and handling billed to customers are included as a component of product revenue in accordance with authoritative accounting guidance. | ||
Product Warranty | ' | |
Product Warranty | ||
The Company provides a warranty against defects in material and workmanship for a period ranging from six months to one year, depending on the product type. In the case of long-term sales agreements, the Company typically warranties the products for the term of the agreement, which ranges from three to seven years. In traditional sales activities, including direct and OEM sales, the Company establishes an accrual for the estimated costs of warranty at the time of revenue recognition. Estimated warranty expenses are recorded as an accrued liability, with a corresponding provision to cost of sales. In long-term sales agreements, revenue related to extended warranty is recognized over the life of the contract, while the product warranty costs related to the long-term sales agreements are expensed as incurred. | ||
Advertising Costs | ' | |
Advertising Costs | ||
Advertising costs are expensed as incurred. These costs are included in selling, general and administrative expense in the accompanying consolidated statements of comprehensive income. | ||
Research and Development | ' | |
Research and Development | ||
Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation | ||
The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has several foreign sales support subsidiaries that maintain foreign offices, of which the most significant are in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company transacts with foreign customers in currencies other than the U.S. Dollar. It experiences realized and unrealized foreign currency gains or losses on foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions. Realized and unrealized foreign currency gains or losses are included as a component of non-operating income (expense) within the Company’s statements of comprehensive income, as incurred and are converted to U.S. Dollars at average exchange rates for a respective period. These transaction losses were $4.0 million, $1.6 million and $0.1 million for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. | ||
Assets and liabilities of foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated into U.S. Dollars at the rate of exchange at the balance sheet date. Statement of comprehensive income amounts are translated at the average monthly exchange rates for the respective periods. For these foreign subsidiaries whose functional currency is not the U.S. Dollar, translation gains and losses are included as a component of accumulated other comprehensive income within Masimo Corporation stockholders’ equity. | ||
Comprehensive Income | ' | |
Comprehensive Income | ||
Authoritative accounting guidance establishes requirements for reporting and disclosure of comprehensive income and its components. Comprehensive income includes foreign currency translation adjustments and related tax benefits, which have been excluded from net income including noncontrolling interests and reflected in Masimo Corporation stockholders’ equity. | ||
Net Income Per Share | ' | |
Net Income Per Share | ||
Basic net income per share attributable to Masimo Corporation stockholders for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 is computed by dividing net income attributable to Masimo Corporation stockholders by the weighted average number of shares outstanding during each period. The diluted net income per share attributable to Masimo Corporation stockholders for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 is computed by dividing the net income attributable to Masimo Corporation stockholders by the weighted average number of shares and potential shares outstanding during each period, if the effect of potential shares is dilutive. Potential shares include incremental shares of stock issuable upon the exercise of stock options. For the years ended December 28, 2013, December 29, 2012 and December 31, 2011, weighted options to purchase 7.2 million, 6.4 million and 4.5 million shares of common stock, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive in the periods presented. | ||
Based on authoritative accounting guidance, the Company reduced its net income including noncontrolling interests by the amount of net (income) loss attributable to noncontrolling interests for the years ended December 28, 2013, December 29, 2012 and December 31, 2011. | ||
Segment Information | ' | |
Segment Information | ||
The Company uses the “management approach” in determining reportable business segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Based on this assessment, management has determined it operates in one reportable business segment, which is comprised of patient monitoring and related products | ||
New Accounting Pronouncement | ' | |
Recently Adopted Accounting Pronouncement | ||
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, or ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This update will require companies to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, unless certain conditions exist. The Company adopted this update in fiscal year 2013 and such adoption did not have a material impact on the consolidated financial statements. | ||
In July 2012, the FASB issued Accounting Standards Update No. 2012-2, or ASU 2012-2, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment, to allow entities to use a qualitative approach to test indefinite-lived intangible assets for impairment. ASU 2012-2 permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is concluded that this is the case, then a quantitative impairment test that exists under current authoritative accounting guidance must be completed. Otherwise, the quantitative impairment test is not required. ASU 2012-2 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this update in fiscal year 2013 and such adoption did not have a material impact on the consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Fair Value Hierarchy for Financial Assets | ' | |||||||||||||||
The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands): | ||||||||||||||||
Fair Value Measurement as of | ||||||||||||||||
December 28, 2013 using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
U.S. Treasuries | $ | 25,997 | $ | — | $ | — | $ | 25,997 | ||||||||
Money Market funds | 1,793 | — | — | 1,793 | ||||||||||||
Total | $ | 27,790 | $ | — | $ | — | $ | 27,790 | ||||||||
Fair Value Measurement as of | ||||||||||||||||
December 29, 2012 using: | ||||||||||||||||
Assets: | ||||||||||||||||
U.S. Treasuries | $ | 31,999 | $ | — | $ | — | $ | 31,999 | ||||||||
Money Market funds | 1,623 | — | — | 1,623 | ||||||||||||
Total | $ | 33,622 | $ | — | $ | — | $ | 33,622 | ||||||||
Changes in Product Warranty Accrual | ' | |||||||||||||||
Changes in the product warranty accrual were as follows (in thousands): | ||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||
December 28, | December 29, | December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Warranty accrual, beginning of period | $ | 838 | $ | 698 | $ | 544 | ||||||||||
Provision for warranty costs | 3,117 | 2,489 | 2,592 | |||||||||||||
Warranty expenditures | (2,794 | ) | (2,349 | ) | (2,438 | ) | ||||||||||
Warranty accrual, end of period | $ | 1,161 | $ | 838 | $ | 698 | ||||||||||
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 28, 2013 | December 29, 2012 | December 31, 2011 | ||||||||||||||
Net income attributable to stockholders of Masimo Corporation: | ||||||||||||||||
Net income including noncontrolling interest | $ | 55,721 | $ | 61,938 | $ | 64,053 | ||||||||||
Net (income) loss attributable to the noncontrolling interest | 2,660 | 334 | (353 | ) | ||||||||||||
Net income attributable to Masimo Corporation stockholders | $ | 58,381 | $ | 62,272 | $ | 63,700 | ||||||||||
Basic net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Net income attributable to Masimo Corporation stockholders | $ | 58,381 | $ | 62,272 | $ | 63,700 | ||||||||||
Weighted average shares outstanding - basic | 56,690 | 57,445 | 59,659 | |||||||||||||
Basic net income per share attributable to Masimo Corporation stockholders | $ | 1.03 | $ | 1.08 | $ | 1.07 | ||||||||||
Diluted net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Weighted average shares outstanding | 56,690 | 57,445 | 59,659 | |||||||||||||
Diluted share equivalent: stock options | 790 | 929 | 1,186 | |||||||||||||
Weighted average shares outstanding - diluted | 57,480 | 58,374 | 60,845 | |||||||||||||
Diluted net income per share attributable to Masimo Corporation stockholders | $ | 1.02 | $ | 1.07 | $ | 1.05 | ||||||||||
Variable_Interest_Entities_VIE1
Variable Interest Entities (VIEs) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Schedules of Balance Sheets | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Below are condensed consolidating schedules of the Balance Sheets as of December 28, 2013 and December 29, 2012, and Statements of Comprehensive Income for the years ended December 28, 2013, December 29, 2012 and December 31, 2011 reflecting Masimo Corporation, Cercacor and related eliminations (in thousands). | ||||||||||||||||||||||||||||||||||||||||||||||||
December 28, 2013 | December 29, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheets: | Masimo Corp | Cercacor | Cercacor Elim | Total | Masimo Corp | Cercacor | Cercacor Elim | Total | ||||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 95,296 | $ | 170 | $ | — | $ | 95,466 | $ | 71,259 | $ | 295 | $ | — | $ | 71,554 | ||||||||||||||||||||||||||||||||
Receivables, net | 84,059 | 84,059 | 75,478 | 10 | (447 | ) | 75,041 | |||||||||||||||||||||||||||||||||||||||||
Inventories | 56,813 | — | — | 56,813 | 47,358 | — | — | 47,358 | ||||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 12,798 | 185 | — | 12,983 | 8,390 | 197 | — | 8,587 | ||||||||||||||||||||||||||||||||||||||||
Deferred tax asset, current | 19,636 | — | — | 19,636 | 12,048 | 863 | — | 12,911 | ||||||||||||||||||||||||||||||||||||||||
Other current assets | 2,841 | — | — | 2,841 | 3,896 | — | — | 3,896 | ||||||||||||||||||||||||||||||||||||||||
Deferred cost of goods sold | 61,714 | — | — | 61,714 | 52,103 | — | — | 52,103 | ||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | 22,931 | 1,935 | — | 24,866 | 21,450 | 2,474 | — | 23,924 | ||||||||||||||||||||||||||||||||||||||||
Intangible assets, net | 30,452 | 4,683 | (7,031 | ) | 28,104 | 28,069 | 4,200 | (4,906 | ) | 27,363 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 22,793 | — | — | 22,793 | 22,824 | — | — | 22,824 | ||||||||||||||||||||||||||||||||||||||||
Deferred tax asset, long term | 22,565 | — | 22,565 | 20,119 | 959 | — | 21,078 | |||||||||||||||||||||||||||||||||||||||||
Other assets, long term | 6,787 | 2,021 | (1,986 | ) | 6,822 | 7,985 | 637 | (600 | ) | 8,022 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 438,685 | $ | 8,994 | $ | (9,017 | ) | $ | 438,662 | $ | 370,979 | $ | 9,635 | $ | (5,953 | ) | $ | 374,661 | ||||||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable | $ | 27,418 | $ | 586 | $ | — | $ | 28,004 | $ | 26,412 | $ | 621 | $ | — | $ | 27,033 | ||||||||||||||||||||||||||||||||
Accrued liabilities and compensation | 51,205 | 1,309 | — | 52,514 | 40,622 | 1,494 | (447 | ) | 41,669 | |||||||||||||||||||||||||||||||||||||||
Income taxes payable | 2,205 | 201 | — | 2,406 | 1,504 | — | — | 1,504 | ||||||||||||||||||||||||||||||||||||||||
Deferred revenue, current | 20,755 | 500 | (500 | ) | 20,755 | 19,278 | 375 | (375 | ) | 19,278 | ||||||||||||||||||||||||||||||||||||||
Current portion of capital lease obligations | 111 | — | — | 111 | 55 | — | — | 55 | ||||||||||||||||||||||||||||||||||||||||
Deferred revenue, long-term | 566 | 6,531 | (6,531 | ) | 566 | 576 | 4,531 | (4,531 | ) | 576 | ||||||||||||||||||||||||||||||||||||||
Capital lease obligations, less current portion | 225 | — | — | 225 | 60 | — | — | 60 | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | 9,459 | 207 | (1,986 | ) | 7,680 | 9,121 | 297 | (600 | ) | 8,818 | ||||||||||||||||||||||||||||||||||||||
EQUITY (DEFICIT) | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock | 57 | 11 | (11 | ) | 57 | 57 | 11 | (11 | ) | 57 | ||||||||||||||||||||||||||||||||||||||
Treasury stock | (83,454 | ) | — | (83,454 | ) | (63,664 | ) | — | — | (63,664 | ) | |||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 273,129 | 427 | (427 | ) | 273,129 | 258,783 | 424 | (424 | ) | 258,783 | ||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income | 3,995 | — | — | 3,995 | 3,542 | — | — | 3,542 | ||||||||||||||||||||||||||||||||||||||||
Retained earnings (deficit) | 133,014 | (778 | ) | 506 | 132,742 | 74,633 | 1,882 | (2,154 | ) | 74,361 | ||||||||||||||||||||||||||||||||||||||
Total Masimo Corporation stockholders’ equity (deficit) | 326,741 | (340 | ) | 68 | 326,469 | 273,351 | 2,317 | (2,589 | ) | 273,079 | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | (68 | ) | (68 | ) | — | — | 2,589 | 2,589 | ||||||||||||||||||||||||||||||||||||||
Total equity | 326,741 | (340 | ) | — | 326,401 | 273,351 | 2,317 | — | 275,668 | |||||||||||||||||||||||||||||||||||||||
Total liabilities and equity (deficit) | $ | 438,685 | $ | 8,994 | $ | (9,017 | ) | $ | 438,662 | $ | 370,979 | $ | 9,635 | $ | (5,953 | ) | $ | 374,661 | ||||||||||||||||||||||||||||||
Condensed Consolidating Schedules of Statements of Comprehensive Income | ' | |||||||||||||||||||||||||||||||||||||||||||||||
Year ended December 28, 2013 | Year ended December 29, 2012 | Year ended December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive | Masimo | Cercacor | Cercacor | Total | Masimo | Cercacor | Cercacor | Total | Masimo | Cercacor | Cercacor | Total | ||||||||||||||||||||||||||||||||||||
Income: | Corp | Elim | Corp | Elim | Corp | Elim | ||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 547,245 | $ | 5,732 | $ | (5,732 | ) | $ | 547,245 | $ | 493,233 | $ | 5,375 | $ | (5,375 | ) | $ | 493,233 | $ | 438,988 | $ | 5,375 | $ | (5,375 | ) | $ | 438,988 | |||||||||||||||||||||
Cost of goods sold | 193,775 | — | (5,357 | ) | 188,418 | 171,982 | — | (5,000 | ) | 166,982 | 149,854 | — | (5,000 | ) | 144,854 | |||||||||||||||||||||||||||||||||
Gross profit (loss) | 353,470 | 5,732 | (375 | ) | 358,827 | 321,251 | 5,375 | (375 | ) | 326,251 | 289,134 | 5,375 | (375 | ) | 294,134 | |||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 213,374 | 2,470 | (375 | ) | 215,469 | 191,870 | 2,453 | (375 | ) | 193,948 | 167,634 | 1,946 | (375 | ) | 169,205 | |||||||||||||||||||||||||||||||||
Research and development | 51,762 | 3,869 | — | 55,631 | 43,412 | 3,665 | — | 47,077 | 35,053 | 3,359 | — | 38,412 | ||||||||||||||||||||||||||||||||||||
Litigation award and defense costs | 8,010 | — | — | 8,010 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Total operating expenses | 273,146 | 6,339 | (375 | ) | 279,110 | 235,282 | 6,118 | (375 | ) | 241,025 | 202,687 | 5,305 | (375 | ) | 207,617 | |||||||||||||||||||||||||||||||||
Operating income | 80,324 | (607 | ) | — | 79,717 | 85,969 | (743 | ) | — | 85,226 | 86,447 | 70 | — | 86,517 | ||||||||||||||||||||||||||||||||||
Non-operating income (expense) | (3,991 | ) | — | — | (3,991 | ) | (1,404 | ) | (1 | ) | — | (1,405 | ) | 26 | (12 | ) | — | 14 | ||||||||||||||||||||||||||||||
Income before provision for income taxes | 76,333 | (607 | ) | — | 75,726 | 84,565 | (744 | ) | — | 83,821 | 86,473 | 58 | — | 86,531 | ||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 17,952 | 2,053 | — | 20,005 | 22,293 | (410 | ) | — | 21,883 | 22,773 | (295 | ) | — | 22,478 | ||||||||||||||||||||||||||||||||||
Net income (loss) including noncontrolling interests | 58,381 | (2,660 | ) | — | 55,721 | 62,272 | (334 | ) | — | 61,938 | 63,700 | 353 | — | 64,053 | ||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | 2,660 | 2,660 | — | — | 334 | 334 | — | — | (353 | ) | (353 | ) | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Masimo Corporation stockholders | 58,381 | (2,660 | ) | 2,660 | 58,381 | 62,272 | (334 | ) | 334 | 62,272 | 63,700 | 353 | (353 | ) | 63,700 | |||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 453 | — | — | 453 | 2,268 | — | — | 2,268 | 349 | — | — | 349 | ||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Masimo Corporation stockholders | $ | 58,834 | $ | (2,660 | ) | $ | 2,660 | $ | 58,834 | $ | 64,540 | $ | (334 | ) | $ | 334 | $ | 64,540 | $ | 64,049 | $ | 353 | $ | (353 | ) | $ | 64,049 | |||||||||||||||||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
Inventories consist of the following (in thousands): | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 26,758 | $ | 24,704 | ||||
Work in process | 6,310 | 4,856 | ||||||
Finished goods | 23,745 | 17,798 | ||||||
Total | $ | 56,813 | $ | 47,358 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of Property and Equipment | ' | |||||||
Property and equipment, net consists of the following (in thousands): | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 33,315 | $ | 27,646 | ||||
Tooling | 11,636 | 10,557 | ||||||
Computer equipment | 11,039 | 9,394 | ||||||
Furniture and office equipment | 4,921 | 4,339 | ||||||
Vehicles | 45 | 45 | ||||||
Leasehold improvements | 8,974 | 8,725 | ||||||
Demonstration units | 956 | 2,316 | ||||||
70,886 | 63,022 | |||||||
Accumulated depreciation and amortization | (49,415 | ) | (43,456 | ) | ||||
Construction-in-progress | 3,395 | 4,358 | ||||||
Total | $ | 24,866 | $ | 23,924 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Components of Intangible Assets | ' | |||||||
Intangible assets, net consist of the following (in thousands): | ||||||||
December 28, 2013 | December 29, 2012 | |||||||
Cost | ||||||||
Patents | $ | 18,750 | $ | 15,645 | ||||
Customer relationships | 7,669 | 7,669 | ||||||
Acquired technology | 5,580 | 5,580 | ||||||
Trademarks | 3,338 | 3,116 | ||||||
Capitalized software development costs | 1,612 | 1,612 | ||||||
Other | 969 | 656 | ||||||
Total cost | 37,918 | 34,278 | ||||||
Accumulated amortization | ||||||||
Patents | (5,679 | ) | (4,591 | ) | ||||
Customer relationships | (1,086 | ) | (320 | ) | ||||
Acquired technology | (834 | ) | (305 | ) | ||||
Trademarks | (653 | ) | (464 | ) | ||||
Capitalized software development costs | (1,270 | ) | (1,085 | ) | ||||
Other | (292 | ) | (150 | ) | ||||
Total accumulated amortization | (9,814 | ) | (6,915 | ) | ||||
Net carrying amount | $ | 28,104 | $ | 27,363 | ||||
Estimated Amortization Expense | ' | |||||||
Estimated amortization expense for each of the fiscal years is as follows (in thousands): | ||||||||
Fiscal year | Amount | |||||||
2014 | $ | 2,922 | ||||||
2015 | 2,808 | |||||||
2016 | 2,513 | |||||||
2017 | 2,448 | |||||||
2018 | 2,254 | |||||||
Thereafter | 15,159 | |||||||
Total | $ | 28,104 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Changes in Goodwill | ' | |||||||
Changes in the goodwill balance were as follows (in thousands): | ||||||||
Year ended | Year ended | |||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Goodwill, beginning of period | $ | 22,824 | $ | 448 | ||||
Goodwill as a result of acquisitions | — | 21,407 | ||||||
Foreign currency translation adjustment | (31 | ) | 969 | |||||
Goodwill, end of period | $ | 22,793 | $ | 22,824 | ||||
Other_Liabilities_LongTerm_Tab
Other Liabilities, Long-Term (Tables) | 12 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Components of Other Liabilities | ' | |||||||
Other long-term liabilities consist of the following (in thousands): | ||||||||
December 28, | December 29, | |||||||
2013 | 2012 | |||||||
Unrecognized tax benefit | $ | 5,769 | $ | 6,123 | ||||
Unfavorable lease liability related to the Spire acquisition | 1,358 | 1,977 | ||||||
Deferred rent, long-term | 533 | 676 | ||||||
Other | 20 | 42 | ||||||
Total other liabilities, long-term | $ | 7,680 | $ | 8,818 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans | ' | ||||||||||||||||||||
The number and weighted average exercise price of options issued and outstanding under all stock option plans are as follows (in thousands, except for exercise price): | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | ||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Options outstanding, beginning of period | 8,368 | $ | 22.78 | 8,277 | $ | 22.68 | 6,941 | $ | 21.32 | ||||||||||||
Granted | 1,653 | $ | 21.17 | 754 | $ | 22.17 | 2,277 | $ | 23.85 | ||||||||||||
Canceled | (795 | ) | $ | 24.53 | (447 | ) | $ | 27.3 | (312 | ) | $ | 27.62 | |||||||||
Expired | — | $ | — | — | $ | — | — | $ | — | ||||||||||||
Exercised | (315 | ) | $ | 10.49 | (216 | ) | $ | 7.62 | (629 | ) | $ | 9.44 | |||||||||
Options outstanding, end of period | 8,911 | $ | 22.76 | 8,368 | $ | 22.78 | 8,277 | $ | 22.68 | ||||||||||||
Options exercisable, end of period | 5,188 | $ | 22.69 | 4,632 | $ | 21.29 | 3,636 | $ | 19.45 | ||||||||||||
Options available for grant, end of period | 5,795 | 4,934 | 3,493 | ||||||||||||||||||
Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant | ' | ||||||||||||||||||||
The range of assumptions used and the resulting weighted-average fair value of options granted at the date of grant were as follows: | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
Risk-free interest rate | 0.7% to 1.8% | 0.7% to 1.3% | 0.9% to 2.5% | ||||||||||||||||||
Expected term | 5.1 years to 5.5 years | 5.5 years to 5.5 years | 5.3 years to 5.5 years | ||||||||||||||||||
Estimated volatility | 31.2% to 39.6% | 36.6% to 42.6% | 36.7% to 43.2% | ||||||||||||||||||
Expected dividends | 0% | 0% | 0% | ||||||||||||||||||
Weighted-average fair value of options granted | $7.53 per share | $7.98 per share | $9.44 per share | ||||||||||||||||||
Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income | ' | ||||||||||||||||||||
The following table presents the total share-based compensation expense that is included in each functional line item of the consolidated statements of comprehensive income (in thousands): | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
December 28, | December 29, | December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cost of goods sold | $ | 354 | $ | 480 | $ | 383 | |||||||||||||||
Selling, general and administrative | 9,407 | 10,775 | 10,268 | ||||||||||||||||||
Research and development | 1,913 | 2,842 | 3,025 | ||||||||||||||||||
Total | $ | 11,674 | $ | 14,097 | $ | 13,676 | |||||||||||||||
Number and Weighted Average Exercise Price of Outstanding and Exercisable Options | ' | ||||||||||||||||||||
The schedule below reflects the number and weighted average exercise price of outstanding and exercisable options segregated by exercise price ranges (in thousands, except remaining contractual life): | |||||||||||||||||||||
December 28, 2013 | 29-Dec-12 | ||||||||||||||||||||
Options Outstanding | Options | Options Outstanding | Options | ||||||||||||||||||
Exercisable | Exercisable | ||||||||||||||||||||
Range of Exercise Prices | Number of | Average | Number of | Number of | Average | Number of | |||||||||||||||
Options | Remaining | Options | Options | Remaining | Options | ||||||||||||||||
Contractual | Contractual | ||||||||||||||||||||
Life | Life | ||||||||||||||||||||
$2.75 to $4.00 | 279 | 1.01 | 279 | 425 | 1.49 | 425 | |||||||||||||||
$4.67 to $12.00 | 696 | 2.46 | 696 | 745 | 3.44 | 745 | |||||||||||||||
$12.87 to $16.00 | 549 | 3.39 | 549 | 580 | 4.39 | 580 | |||||||||||||||
$17.84 to $23.98 | 3,635 | 8.06 | 986 | 2,592 | 8.25 | 662 | |||||||||||||||
$24.00 to $28.99 | 1,708 | 6.2 | 1,077 | 1,811 | 6.98 | 885 | |||||||||||||||
$29.07 to $31.99 | 1,734 | 5.37 | 1,311 | 1,902 | 6.3 | 1,090 | |||||||||||||||
$32.21 to $38.30 | 117 | 5.28 | 98 | 117 | 6.28 | 75 | |||||||||||||||
$38.60 to $41.51 | 193 | 4.4 | 192 | 196 | 5.41 | 170 | |||||||||||||||
Total | 8,911 | 6.12 | 5,188 | 8,368 | 6.4 | 4,632 | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Future Minimum Lease Payments Under Operating and Capital Leases | ' | |||||||||||
Future minimum lease payments, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): | ||||||||||||
As of December 28, 2013 | ||||||||||||
Fiscal year | Operating | Capital | Total | |||||||||
Leases | Leases | |||||||||||
2014 | $ | 5,336 | $ | 125 | $ | 5,461 | ||||||
2015 | 3,893 | 87 | 3,980 | |||||||||
2016 | 3,221 | 80 | 3,301 | |||||||||
2017 | 1,696 | 75 | 1,771 | |||||||||
2018 | 1,081 | — | 1,081 | |||||||||
Thereafter | 2,109 | — | 2,109 | |||||||||
Total | $ | 17,336 | $ | 367 | $ | 17,703 | ||||||
Segment_Information_and_Enterp1
Segment Information and Enterprise Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Analysis of Product Revenue Based upon Geographic Area Shipped | ' | ||||||||||||||||||||
The following schedule presents an analysis of the Company’s product revenue based upon the geographic area to which the product was shipped (in thousands): | |||||||||||||||||||||
Year ended | Year ended | Year ended | |||||||||||||||||||
28-Dec-13 | 29-Dec-12 | 31-Dec-11 | |||||||||||||||||||
Geographic Area by Destination | |||||||||||||||||||||
North and South America | $ | 378,810 | 73 | % | $ | 341,672 | 73 | % | $ | 301,583 | 74 | % | |||||||||
Europe, Middle East and Africa | 83,430 | 16 | 68,010 | 15 | 58,617 | 14 | |||||||||||||||
Asia and Australia | 55,189 | 11 | 55,246 | 12 | 46,287 | 12 | |||||||||||||||
Total product revenue | $ | 517,429 | 100 | % | $ | 464,928 | 100 | % | $ | 406,487 | 100 | % | |||||||||
United States | $ | 361,631 | $ | 327,574 | $ | 287,138 | |||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of Income Before Provision for Income Taxes | ' | |||||||||||
The components of income before provision for income taxes are as follows (in thousands): | ||||||||||||
Year ended | Year ended | Year ended | ||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | $ | 50,782 | $ | 59,216 | $ | 62,730 | ||||||
Foreign | 24,944 | 24,605 | 23,801 | |||||||||
Total | $ | 75,726 | $ | 83,821 | $ | 86,531 | ||||||
Current and Deferred Provision (Benefit) for Income Taxes | ' | |||||||||||
The following table presents the current and deferred provision (benefit) for income taxes (in thousands): | ||||||||||||
Year ended | Year ended | Year ended | ||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 24,488 | $ | 26,332 | $ | 23,951 | ||||||
State | 2,426 | 2,411 | 621 | |||||||||
Foreign | 1,704 | (54 | ) | 1,123 | ||||||||
28,618 | 28,689 | 25,695 | ||||||||||
Deferred: | ||||||||||||
Federal | (7,281 | ) | (5,546 | ) | (2,415 | ) | ||||||
State | (970 | ) | (1,458 | ) | (544 | ) | ||||||
Foreign | (362 | ) | 198 | (258 | ) | |||||||
(8,613 | ) | (6,806 | ) | (3,217 | ) | |||||||
Total | $ | 20,005 | $ | 21,883 | $ | 22,478 | ||||||
Deferred Tax Provision (Benefit) | ' | |||||||||||
Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate | ' | |||||||||||
The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: | ||||||||||||
Year ended | Year ended | Year ended | ||||||||||
December 28, | December 29, | December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||||
Statutory regular federal income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State provision, net of federal benefit | 1.3 | 0.7 | 0.1 | |||||||||
Nondeductible items | 0.9 | 1 | 0.6 | |||||||||
Foreign tax rate differential | (9.8 | ) | (10.1 | ) | (8.6 | ) | ||||||
Tax credits | (3.5 | ) | (0.5 | ) | (1.1 | ) | ||||||
Change in federal valuation allowance | 3 | — | — | |||||||||
Other | (0.5 | ) | — | — | ||||||||
Total | 26.4 | % | 26.1 | % | 26 | % | ||||||
Components of Deferred Tax Assets | ' | |||||||||||
The components of the deferred tax assets are as follows (in thousands): | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Tax credits | $ | 3,203 | $ | 2,492 | ||||||||
Deferred revenue | 4,234 | 2,999 | ||||||||||
Acquired intangibles | 507 | 587 | ||||||||||
Net operating losses | 277 | 4,688 | ||||||||||
Accrued liabilities | 17,036 | 9,713 | ||||||||||
Share-based compensation | 19,385 | 17,660 | ||||||||||
Property and equipment | 670 | 590 | ||||||||||
Other | 2,149 | 1,473 | ||||||||||
Total | 47,461 | 40,202 | ||||||||||
Valuation allowance | (3,563 | ) | (2,441 | ) | ||||||||
Total deferred tax assets | 43,898 | 37,761 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | — | (15 | ) | |||||||||
Acquired intangibles | — | (2,305 | ) | |||||||||
State taxes and other | (1,697 | ) | (1,452 | ) | ||||||||
Total deferred tax liabilities | (1,697 | ) | (3,772 | ) | ||||||||
Net deferred tax assets | $ | 42,201 | $ | 33,989 | ||||||||
Current net deferred tax asset | 19,636 | 12,911 | ||||||||||
Long-term net deferred tax asset | 22,565 | 21,078 | ||||||||||
Net deferred tax assets | $ | 42,201 | $ | 33,989 | ||||||||
Reconciliation of Total Amounts of Unrecognized Tax Benefits | ' | |||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): | ||||||||||||
Year ended | Year ended | |||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Unrecognized tax benefits, beginning of period | $ | 6,685 | $ | 8,366 | ||||||||
Increase from tax positions in prior period | 265 | 47 | ||||||||||
Increase from tax positions in current period | 695 | 563 | ||||||||||
Settlements | (443 | ) | (1,725 | ) | ||||||||
Lapse of statute of limitations | (572 | ) | (566 | ) | ||||||||
Unrecognized tax benefits, end of period | $ | 6,630 | $ | 6,685 | ||||||||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data | ' | |||||||||||||||
The following tables contain selected unaudited consolidated statements of comprehensive income data for each quarter of 2013 and 2012 (in thousands, except per share data): | ||||||||||||||||
Quarter ended | ||||||||||||||||
Fiscal 2013 | March 30, | June 29, | September 28, | December 28, | ||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
Total revenue | $ | 135,942 | $ | 137,422 | $ | 131,447 | $ | 142,435 | ||||||||
Gross profit | 89,581 | 91,232 | 87,479 | 90,536 | ||||||||||||
Operating income | 23,141 | 23,180 | 20,743 | 12,653 | ||||||||||||
Net income attributable to Masimo Corporation stockholders | 16,428 | 17,038 | 15,602 | 9,313 | ||||||||||||
Net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Basic | $ | 0.29 | $ | 0.3 | $ | 0.28 | $ | 0.16 | ||||||||
Diluted | $ | 0.28 | $ | 0.3 | $ | 0.27 | $ | 0.16 | ||||||||
Quarter ended | ||||||||||||||||
Fiscal 2012 | March 31, | June 30, | September 29, | December 29, | ||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Total revenue | $ | 119,228 | $ | 122,775 | $ | 119,069 | $ | 132,161 | ||||||||
Gross profit | 79,305 | 81,432 | 78,333 | 87,181 | ||||||||||||
Operating income | 22,328 | 22,673 | 17,952 | 22,273 | ||||||||||||
Net income attributable to Masimo Corporation stockholders | 15,774 | 17,697 | 13,794 | 15,007 | ||||||||||||
Net income per share attributable to Masimo Corporation stockholders: | ||||||||||||||||
Basic | $ | 0.27 | $ | 0.31 | $ | 0.24 | $ | 0.26 | ||||||||
Diluted | $ | 0.27 | $ | 0.3 | $ | 0.24 | $ | 0.26 | ||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) (Recurring, USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Fair value hierarchy for financial assets | ' | ' |
Total | $27,790 | $33,622 |
U.S. Treasuries | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 25,997 | 31,999 |
Money Market funds | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 1,793 | 1,623 |
Level 1 | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 27,790 | 33,622 |
Level 1 | U.S. Treasuries | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 25,997 | 31,999 |
Level 1 | Money Market funds | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 1,793 | 1,623 |
Level 2 | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 0 | 0 |
Level 2 | U.S. Treasuries | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 0 | 0 |
Level 2 | Money Market funds | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 0 | 0 |
Level 3 | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 0 | 0 |
Level 3 | U.S. Treasuries | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | 0 | 0 |
Level 3 | Money Market funds | ' | ' |
Fair value hierarchy for financial assets | ' | ' |
Total | $0 | $0 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
segment | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Short-term investments | $0 | $0 | ' |
Cash balance | 67,700,000 | 38,000,000 | ' |
Cash equivalents | 27,800,000 | 33,600,000 | ' |
U.S. Treasury bills | 26,000,000 | 32,000,000 | ' |
Money market funds | 1,800,000 | 1,600,000 | ' |
Accounts receivable, net of allowance for doubtful accounts | 76,759,000 | 67,911,000 | ' |
Number of days after which royalty report and payment is received | '60 days | ' | ' |
Royalties receivable | 7,300,000 | 7,130,000 | ' |
Accumulated depreciation and amortization on property and equipment | 8,300,000 | 7,300,000 | 5,800,000 |
Accumulated amortization | 9,814,000 | 6,915,000 | ' |
Cost of patents, Gross | 6,700,000 | 5,400,000 | ' |
Cost of trademarks, Gross | 700,000 | 600,000 | ' |
Product life estimate | '7 years | ' | ' |
Amount amortized by company | 200,000 | 200,000 | 200,000 |
Unamortized cost by company | 300,000 | 500,000 | ' |
Impairment of goodwill, intangible assets and other long-lived assets | 0 | 0 | 0 |
Number of Sources of Product Revenue | 4 | ' | ' |
Rate of royalty agreed to be paid | 7.75% | ' | ' |
Number of days royalty revenue is adjusted subsequent to quarter end | '60 days | ' | ' |
Advertising costs | 9,500,000 | 9,500,000 | 5,600,000 |
Foreign currency transaction gain (loss) | 4,000,000 | 1,600,000 | 100,000 |
Options to purchase of shares of common stock | 7.2 | 6.4 | 4.5 |
Number of reportable segments | 1 | ' | ' |
Patents | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated life maximum | '10 years | ' | ' |
Accumulated amortization | 5,679,000 | 4,591,000 | ' |
Total renewal costs capitalized | 500,000 | ' | ' |
Weighted average number of years until the next renewal | '1 year | ' | ' |
Trademarks | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated life maximum | '17 years | ' | ' |
Accumulated amortization | 653,000 | 464,000 | ' |
Total renewal costs capitalized | 400,000 | ' | ' |
Weighted average number of years until the next renewal | '6 years | ' | ' |
Patents and trademarks | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Accumulated amortization | $2,700,000 | $2,100,000 | $1,600,000 |
Minimum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '3 years | ' | ' |
Product life estimate | '3 years | ' | ' |
Warranty period for defects in material and workmanship | '6 months | ' | ' |
Maximum | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property and equipment, useful life | '5 years | ' | ' |
Product life estimate | '7 years | ' | ' |
Warranty period for defects in material and workmanship | '1 year | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Warranty accrual, beginning of period | $838 | $698 | $544 |
Provision for warranty costs | 3,117 | 2,489 | 2,592 |
Warranty expenditures | -2,794 | -2,349 | -2,438 |
Warranty accrual, end of period | $1,161 | $838 | $698 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net income attributable to stockholders of Masimo Corporation: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income including noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | $55,721 | $61,938 | $64,053 |
Net (income) loss attributable to the noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,660 | 334 | -353 |
Basic net income per share attributable to Masimo Corporation stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Masimo Corporation stockholders | $9,313 | $15,602 | $17,038 | $16,428 | $15,007 | $13,794 | $17,697 | $15,774 | $58,381 | $62,272 | $63,700 |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 56,690 | 57,445 | 59,659 |
Basic net income per share attributable to Masimo Corporation stockholders | $0.16 | $0.28 | $0.30 | $0.29 | $0.26 | $0.24 | $0.31 | $0.27 | $1.03 | $1.08 | $1.07 |
Diluted net income per share attributable to Masimo Corporation stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 56,690 | 57,445 | 59,659 |
Diluted share equivalent: stock options | ' | ' | ' | ' | ' | ' | ' | ' | 790 | 929 | 1,186 |
Weighted average shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 57,480 | 58,374 | 60,845 |
Diluted net income per share attributable to Masimo Corporation stockholders | $0.16 | $0.27 | $0.30 | $0.28 | $0.26 | $0.24 | $0.30 | $0.27 | $1.02 | $1.07 | $1.05 |
Variable_Interest_Entities_VIE2
Variable Interest Entities (VIEs) - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Jan. 02, 2007 | Dec. 31, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Feb. 28, 2009 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | |
company | parameter | Licensed Rainbow Parameters | Handheld Products Incorporating Rainbow Technology | Cercacor | Cercacor | Cercacor | Cercacor | Minimum | |
Cercacor | |||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Companies with Rights to Intellectual Property | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Parameters | ' | 5 | ' | ' | ' | ' | ' | ' | ' |
License Fees Individual | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of royalty expense (up to) | ' | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' |
Minimum aggregate royalty payments | ' | ' | ' | ' | ' | 5,400,000 | 5,000,000 | 5,000,000 | 5,000,000 |
Increase in royalties payable in current year | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' |
Increase in the minimum aggregate annual royalties payment after current year | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' |
Percentage reimbursed | ' | ' | ' | ' | 50.00% | ' | 60.00% | 50.00% | ' |
Total expenses for additional services, material and supplies | ' | ' | ' | ' | ' | $4,100,000 | $3,600,000 | $2,500,000 | ' |
Variable_Interest_Entities_VIE3
Variable Interest Entities (VIEs) - Condensed Consolidating Schedules of Balance Sheets (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | $95,466 | $71,554 | $129,882 | $88,305 |
Receivables, net | 84,059 | 75,041 | ' | ' |
Inventories | 56,813 | 47,358 | ' | ' |
Prepaid expenses | 12,983 | 8,587 | ' | ' |
Deferred tax asset, current | 19,636 | 12,911 | ' | ' |
Other current assets | 2,841 | 3,896 | ' | ' |
Deferred cost of goods sold | 61,714 | 52,103 | ' | ' |
Property and equipment, net | 24,866 | 23,924 | ' | ' |
Intangible assets, net | 28,104 | 27,363 | ' | ' |
Goodwill | 22,793 | 22,824 | 448 | ' |
Deferred tax asset, long term | 22,565 | 21,078 | ' | ' |
Other assets, long term | 6,822 | 8,022 | ' | ' |
Total assets | 438,662 | 374,661 | ' | ' |
LIABILITIES | ' | ' | ' | ' |
Accounts payable | 28,004 | 27,033 | ' | ' |
Accrued liabilities and compensation | 52,514 | 41,669 | ' | ' |
Income taxes payable | 2,406 | 1,504 | ' | ' |
Deferred revenue, current | 20,755 | 19,278 | ' | ' |
Current portion of capital lease obligations | 111 | 55 | ' | ' |
Deferred revenue, long-term | 566 | 576 | ' | ' |
Capital lease obligations, less current portion | 225 | 60 | ' | ' |
Other liabilities | 7,680 | 8,818 | ' | ' |
EQUITY (DEFICIT) | ' | ' | ' | ' |
Common stock | 57 | 57 | ' | ' |
Treasury stock | -83,454 | -63,664 | ' | ' |
Additional paid-in capital | 273,129 | 258,783 | ' | ' |
Accumulated other comprehensive income | 3,995 | 3,542 | ' | ' |
Retained earnings (deficit) | 132,742 | 74,361 | ' | ' |
Total Masimo Corporation stockholders’ equity | 326,469 | 273,079 | ' | ' |
Noncontrolling interest | -68 | 2,589 | ' | ' |
Total equity | 326,401 | 275,668 | 279,666 | 230,039 |
Total liabilities and equity | 438,662 | 374,661 | ' | ' |
Masimo Corp | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 95,296 | 71,259 | ' | ' |
Receivables, net | 84,059 | 75,478 | ' | ' |
Inventories | 56,813 | 47,358 | ' | ' |
Prepaid expenses | 12,798 | 8,390 | ' | ' |
Deferred tax asset, current | 19,636 | 12,048 | ' | ' |
Other current assets | 2,841 | 3,896 | ' | ' |
Deferred cost of goods sold | 61,714 | 52,103 | ' | ' |
Property and equipment, net | 22,931 | 21,450 | ' | ' |
Intangible assets, net | 30,452 | 28,069 | ' | ' |
Goodwill | 22,793 | 22,824 | ' | ' |
Deferred tax asset, long term | 22,565 | 20,119 | ' | ' |
Other assets, long term | 6,787 | 7,985 | ' | ' |
Total assets | 438,685 | 370,979 | ' | ' |
LIABILITIES | ' | ' | ' | ' |
Accounts payable | 27,418 | 26,412 | ' | ' |
Accrued liabilities and compensation | 51,205 | 40,622 | ' | ' |
Income taxes payable | 2,205 | 1,504 | ' | ' |
Deferred revenue, current | 20,755 | 19,278 | ' | ' |
Current portion of capital lease obligations | 111 | 55 | ' | ' |
Deferred revenue, long-term | 566 | 576 | ' | ' |
Capital lease obligations, less current portion | 225 | 60 | ' | ' |
Other liabilities | 9,459 | 9,121 | ' | ' |
EQUITY (DEFICIT) | ' | ' | ' | ' |
Common stock | 57 | 57 | ' | ' |
Treasury stock | -83,454 | -63,664 | ' | ' |
Additional paid-in capital | 273,129 | 258,783 | ' | ' |
Accumulated other comprehensive income | 3,995 | 3,542 | ' | ' |
Retained earnings (deficit) | 133,014 | 74,633 | ' | ' |
Total Masimo Corporation stockholders’ equity | 326,741 | 273,351 | ' | ' |
Total equity | 326,741 | 273,351 | ' | ' |
Total liabilities and equity | 438,685 | 370,979 | ' | ' |
Cercacor | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and cash equivalents | 170 | 295 | ' | ' |
Receivables, net | ' | 10 | ' | ' |
Prepaid expenses | 185 | 197 | ' | ' |
Deferred tax asset, current | 0 | 863 | ' | ' |
Property and equipment, net | 1,935 | 2,474 | ' | ' |
Intangible assets, net | 4,683 | 4,200 | ' | ' |
Deferred tax asset, long term | ' | 959 | ' | ' |
Other assets, long term | 2,021 | 637 | ' | ' |
Total assets | 8,994 | 9,635 | ' | ' |
LIABILITIES | ' | ' | ' | ' |
Accounts payable | 586 | 621 | ' | ' |
Accrued liabilities and compensation | 1,309 | 1,494 | ' | ' |
Income taxes payable | 201 | ' | ' | ' |
Deferred revenue, current | 500 | 375 | ' | ' |
Deferred revenue, long-term | 6,531 | 4,531 | ' | ' |
Other liabilities | 207 | 297 | ' | ' |
EQUITY (DEFICIT) | ' | ' | ' | ' |
Common stock | 11 | 11 | ' | ' |
Additional paid-in capital | 427 | 424 | ' | ' |
Retained earnings (deficit) | -778 | 1,882 | ' | ' |
Total Masimo Corporation stockholders’ equity | -340 | 2,317 | ' | ' |
Total equity | -340 | 2,317 | ' | ' |
Total liabilities and equity | 8,994 | 9,635 | ' | ' |
Cercacor Elim | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Receivables, net | ' | -447 | ' | ' |
Intangible assets, net | -7,031 | -4,906 | ' | ' |
Other assets, long term | -1,986 | -600 | ' | ' |
Total assets | -9,017 | -5,953 | ' | ' |
LIABILITIES | ' | ' | ' | ' |
Accrued liabilities and compensation | 0 | -447 | ' | ' |
Deferred revenue, current | -500 | -375 | ' | ' |
Deferred revenue, long-term | -6,531 | -4,531 | ' | ' |
Other liabilities | -1,986 | -600 | ' | ' |
EQUITY (DEFICIT) | ' | ' | ' | ' |
Common stock | -11 | -11 | ' | ' |
Additional paid-in capital | -427 | -424 | ' | ' |
Retained earnings (deficit) | 506 | -2,154 | ' | ' |
Total Masimo Corporation stockholders’ equity | 68 | -2,589 | ' | ' |
Noncontrolling interest | -68 | 2,589 | ' | ' |
Total liabilities and equity | ($9,017) | ($5,953) | ' | ' |
Variable_Interest_Entities_VIE4
Variable Interest Entities (VIEs) - Condensed Consolidating Schedules of Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $142,435 | $131,447 | $137,422 | $135,942 | $132,161 | $119,069 | $122,775 | $119,228 | $547,245 | $493,233 | $438,988 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 188,418 | 166,982 | 144,854 |
Gross profit | 90,536 | 87,479 | 91,232 | 89,581 | 87,181 | 78,333 | 81,432 | 79,305 | 358,827 | 326,251 | 294,134 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 215,469 | 193,948 | 169,205 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 55,631 | 47,077 | 38,412 |
Litigation award and defense costs | ' | ' | ' | ' | ' | ' | ' | ' | 8,010 | 0 | 0 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 279,110 | 241,025 | 207,617 |
Operating income | 12,653 | 20,743 | 23,180 | 23,141 | 22,273 | 17,952 | 22,673 | 22,328 | 79,717 | 85,226 | 86,517 |
Non-operating income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -3,991 | -1,405 | 14 |
Income before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 75,726 | 83,821 | 86,531 |
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 20,005 | 21,883 | 22,478 |
Net income including noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 55,721 | 61,938 | 64,053 |
Net (income) loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,660 | 334 | -353 |
Net Income (loss) attributable to Masimo Corporation stockholders | 9,313 | 15,602 | 17,038 | 16,428 | 15,007 | 13,794 | 17,697 | 15,774 | 58,381 | 62,272 | 63,700 |
Other comprehensive income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 453 | 2,268 | 349 |
Comprehensive income attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 58,834 | 64,540 | 64,049 |
Masimo Corp | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 493,233 | 438,988 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 193,775 | 171,982 | 149,854 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 353,470 | 321,251 | 289,134 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 213,374 | 191,870 | 167,634 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 51,762 | 43,412 | 35,053 |
Litigation award and defense costs | ' | ' | ' | ' | ' | ' | ' | ' | 8,010 | ' | ' |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 273,146 | 235,282 | 202,687 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 80,324 | 85,969 | 86,447 |
Non-operating income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,404 | 26 |
Income before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 76,333 | 84,565 | 86,473 |
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 17,952 | 22,293 | 22,773 |
Net income including noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 58,381 | 62,272 | 63,700 |
Net Income (loss) attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 58,381 | 62,272 | 63,700 |
Other comprehensive income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,268 | 349 |
Comprehensive income attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 58,834 | 64,540 | 64,049 |
Cercacor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | 5,732 | 5,375 | 5,375 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 5,732 | 5,375 | 5,375 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 2,470 | 2,453 | 1,946 |
Research and development | ' | ' | ' | ' | ' | ' | ' | ' | 3,869 | 3,665 | 3,359 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 6,339 | 6,118 | 5,305 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | -607 | -743 | 70 |
Non-operating income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -1 | -12 |
Income before provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -607 | -744 | 58 |
Provision for (benefit from) income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 2,053 | -410 | -295 |
Net income including noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | -2,660 | -334 | 353 |
Net Income (loss) attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | -2,660 | -334 | 353 |
Other comprehensive income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | -2,660 | -334 | 353 |
Cercacor Elim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | ' | ' | ' | ' | ' | ' | ' | ' | -5,732 | -5,375 | -5,375 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | -5,357 | -5,000 | -5,000 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | -375 | -375 | -375 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | -375 | -375 | -375 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | -375 | -375 | -375 |
Net (income) loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,660 | 334 | -353 |
Net Income (loss) attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | 2,660 | 334 | -353 |
Other comprehensive income, net of tax: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Comprehensive income attributable to Masimo Corporation stockholders | ' | ' | ' | ' | ' | ' | ' | ' | $2,660 | $334 | ($353) |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Mar. 09, 2012 | Jul. 27, 2012 |
Spire Semiconductor LLC | Phasein | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Cash paid for acquired entity | ' | ' | ' | $7,200,000 | ' |
Purchase price of acquired entity allocated to liabilities | ' | ' | ' | 1,200,000 | ' |
Purchase price for acquired entity | ' | ' | ' | ' | 30,500,000 |
Purchase price allocation assigned to goodwill | 22,793,000 | 22,824,000 | 448,000 | ' | 16,100,000 |
Purchase price allocation assigned to intangible assets | ' | ' | ' | ' | 12,600,000 |
Purchase price allocation assigned to inventory | ' | ' | ' | ' | 1,400,000 |
Purchase price allocation assigned to other assets | ' | ' | ' | ' | 2,400,000 |
Purchase price allocation assigned to liabilities | ' | ' | ' | ' | $2,000,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 28, 2013 | |
Not for Profit Social Welfare Organization | ' |
Related Party Transaction [Line Items] | ' |
Company's contribution to related party | $100,000 |
Cercacor | Not for Profit Organization | ' |
Related Party Transaction [Line Items] | ' |
Company's contribution to related party | 100,000 |
Cercacor | Cercacor Laboratories | Not for Profit Organization | ' |
Related Party Transaction [Line Items] | ' |
Company's contribution to related party | $25,000 |
Inventories_Components_of_Inve
Inventories - Components of Inventory (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $26,758 | $24,704 |
Work in-process | 6,310 | 4,856 |
Finished goods | 23,745 | 17,798 |
Total | $56,813 | $47,358 |
Inventories_Additional_Informa
Inventories - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods inventory held by distributors | $3.40 | $3 |
Property_and_Equipment_Compone
Property and Equipment - Components of Property and Equipment (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $70,886 | $63,022 |
Accumulated depreciation and amortization | -49,415 | -43,456 |
Construction-in-progress | 3,395 | 4,358 |
Total | 24,866 | 23,924 |
Machinery and equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 33,315 | 27,646 |
Tooling | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 11,636 | 10,557 |
Computer equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 11,039 | 9,394 |
Furniture and office equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 4,921 | 4,339 |
Vehicles | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 45 | 45 |
Leasehold improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 8,974 | 8,725 |
Demonstration units | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $956 | $2,316 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Accumulated amortization | $49,415,000 | $43,456,000 |
Capital lease obligations | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Furniture and office equipment, gross | 600,000 | 300,000 |
Accumulated amortization | $300,000 | $200,000 |
Intangible_Assets_Components_o
Intangible Assets - Components of Intangible Assets (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Cost | ' | ' |
Total cost | $37,918 | $34,278 |
Accumulated amortization | ' | ' |
Accumulated amortization | -9,814 | -6,915 |
Total | 28,104 | 27,363 |
Patents | ' | ' |
Cost | ' | ' |
Total cost | 18,750 | 15,645 |
Accumulated amortization | ' | ' |
Accumulated amortization | -5,679 | -4,591 |
Customer relationships | ' | ' |
Cost | ' | ' |
Total cost | 7,669 | 7,669 |
Accumulated amortization | ' | ' |
Accumulated amortization | -1,086 | -320 |
Acquired technology | ' | ' |
Cost | ' | ' |
Total cost | 5,580 | 5,580 |
Accumulated amortization | ' | ' |
Accumulated amortization | -834 | -305 |
Trademarks | ' | ' |
Cost | ' | ' |
Total cost | 3,338 | 3,116 |
Accumulated amortization | ' | ' |
Accumulated amortization | -653 | -464 |
Capitalized software development costs | ' | ' |
Cost | ' | ' |
Total cost | 1,612 | 1,612 |
Accumulated amortization | ' | ' |
Accumulated amortization | -1,270 | -1,085 |
Other | ' | ' |
Cost | ' | ' |
Total cost | 969 | 656 |
Accumulated amortization | ' | ' |
Accumulated amortization | ($292) | ($150) |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $2.70 | $2.10 | $1.60 |
Intangible assets as part of acquisitions | ' | 14.6 | ' |
Intangible assets acquired aggregate value customer relationship | ' | 7.2 | ' |
Intangible assets acquired aggregate value acquired technology | ' | 5.3 | ' |
Intangible assets acquired aggregate value trademarks | ' | 1.1 | ' |
Intangible assets acquired aggregate value patents | ' | $1 | ' |
Acquired finite lived intangible assets weighted average useful life | ' | '10 years | ' |
Intangible_Assets_Estimated_Am
Intangible Assets - Estimated Amortization Expense (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $2,922 | ' |
2015 | 2,808 | ' |
2016 | 2,513 | ' |
2017 | 2,448 | ' |
2018 | 2,254 | ' |
Thereafter | 15,159 | ' |
Total | $28,104 | $27,363 |
Goodwill_Changes_in_Goodwill_D
Goodwill - Changes in Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Goodwill [Roll Forward] | ' | ' |
Goodwill, beginning of period | $22,824 | $448 |
Goodwill as a result of acquisitions | 0 | 21,407 |
Foreign currency translation adjustment | -31 | 969 |
Goodwill, end of period | $22,793 | $22,824 |
Other_Liabilities_LongTerm_Com
Other Liabilities, Long-Term - Components of Other Liabilities (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Unrecognized tax benefit | $5,769 | $6,123 |
Unfavorable lease liability related to the Spire acquisition | 1,358 | 1,977 |
Deferred rent, long-term | 533 | 676 |
Other | 20 | 42 |
Total other liabilities, long-term | $7,680 | $8,818 |
Equity_Additional_Information_
Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Nov. 08, 2007 | Feb. 28, 2013 | Oct. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Aug. 31, 2011 | |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Dividends declared for outstanding common stock | 'One preferred stock purchase right | ' | ' | ' | ' | ' | ' |
Preferred stock voting rights per share | $1 | ' | ' | ' | ' | ' | ' |
Par value of preferred stock under stockholder rights plan | ' | ' | ' | $0.00 | $0.00 | ' | ' |
Number of right to be issued with each share of common stock | 1 | ' | ' | ' | ' | ' | ' |
Final expiration date of right | 8-Nov-17 | ' | ' | ' | ' | ' | ' |
Common stock dividend declared per share | ' | ' | $1 | $0 | $1 | $0 | ' |
Dividends payable date | ' | ' | 11-Dec-12 | ' | ' | ' | ' |
Dividends payable recorded date | ' | ' | 27-Nov-12 | ' | ' | ' | ' |
Total dividend payout | ' | ' | $57,300,000 | ' | $57,275,000 | ' | ' |
Number of common shares authorized to be repurchased under repurchase program | ' | 6,000,000 | ' | ' | ' | ' | 3,000,000 |
Average price per share | ' | ' | ' | $19.79 | $22.74 | $19.61 | ' |
Number of shares repurchased | ' | ' | ' | 1,000,000 | 1,200,000 | 1,800,000 | ' |
Total stock repurchase program | ' | ' | ' | $19,800,000 | $26,300,000 | $36,200,000 | ' |
Period of stock repurchase program | ' | '36 months | ' | ' | ' | ' | ' |
Series A Preferred Stock | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Par value of preferred stock under stockholder rights plan | $0.00 | ' | ' | ' | ' | ' | ' |
Purchase price per right | $136 | ' | ' | ' | ' | ' | ' |
Number of right to be issued with each share of common stock | 1 | ' | ' | ' | ' | ' | ' |
Number of preferred stock designated as per certificate of designation | 100,000 | ' | ' | ' | ' | ' | ' |
Minimum preferential quarterly dividend payments | ' | ' | ' | $1 | ' | ' | ' |
Preferred stock dividend in multiples of cash dividends | ' | ' | ' | 1,000 | ' | ' | ' |
Preferred stock dividend in multiples of non-cash dividends | ' | ' | ' | 1,000 | ' | ' | ' |
Minimum preferential payment in the event of a liquidation, dissolution or winding up | ' | ' | ' | $1,000 | ' | ' | ' |
Payment to preferred stock holders during liquidation in multiples of aggregate payment made per common share | ' | ' | ' | 1,000 | ' | ' | ' |
Number of votes per share entitled to preferred stock holders | ' | ' | ' | 1,000 | ' | ' | ' |
Payment to preferred stock holders during merger in multiples of amount received per common share | ' | ' | ' | 1,000 | ' | ' | ' |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 | Aug. 07, 2007 |
Two Thousand Seven Plan | |||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ' | ' | ' | ' | ' |
Issuance of options to purchase shares | ' | ' | ' | ' | 3,000,000 |
Vesting period of options | ' | ' | ' | ' | '5 years |
Expiration period of options | ' | ' | ' | ' | '10 years |
Common stock shares added to share reserve | ' | ' | ' | ' | 1,700,000 |
Percentage of company's total shares outstanding | ' | ' | 3.00% | 3.00% | ' |
Common stock reserved for future issuance | 14,700,000 | ' | ' | ' | ' |
Unrecognized share-based compensation related to unvested options granted | $25.90 | ' | ' | ' | ' |
Unrecognized share-based compensation related to unvested options granted, term | '3 years 4 months 10 days | ' | ' | ' | ' |
Total fair market value of all vesting options | 12.3 | 14.3 | 12.1 | ' | ' |
Aggregated intrinsic value of options outstanding | 59.9 | ' | ' | ' | ' |
Aggregated intrinsic value of options exercisable | 37 | ' | ' | ' | ' |
Aggregated intrinsic value of options exercised | 4.2 | 3.1 | 12.4 | ' | ' |
Weighted average remaining contractual term of options outstanding, years price below the market value | '6 years 4 months 14 days | ' | ' | ' | ' |
Weighted average remaining contractual term of options exercisable, years | '4 years 6 months | ' | ' | ' | ' |
Total income tax benefit recognized for share-based compensation expense | $3.90 | $4.90 | $4.80 | ' | ' |
ShareBased_Compensation_Number
Share-Based Compensation - Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Shares, Options outstanding, beginning of period | 8,368 | 8,277 | 6,941 |
Shares, Granted | 1,653 | 754 | 2,277 |
Shares, Canceled | -795 | -447 | -312 |
Shares, Expired | 0 | 0 | 0 |
Shares, Exercised | -315 | -216 | -629 |
Shares, Options outstanding, end of period | 8,911 | 8,368 | 8,277 |
Shares, Options exercisable, end of period | 5,188 | 4,632 | 3,636 |
Shares, Options available for grant, end of period | 5,795 | 4,934 | 3,493 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' |
Average Exercise Price, Options outstanding, beginning of period | $22.78 | $22.68 | $21.32 |
Average Exercise Price, Granted | $21.17 | $22.17 | $23.85 |
Average Exercise Price, Canceled | $24.53 | $27.30 | $27.62 |
Average Exercise Price, Expired | $0 | $0 | $0 |
Average Exercise Price, Exercised | $10.49 | $7.62 | $9.44 |
Average Exercise Price, Options outstanding, end of period | $22.76 | $22.78 | $22.68 |
Average Exercise Price, Options exercisable, end of period | $22.69 | $21.29 | $19.45 |
ShareBased_Compensation_Range_
Share-Based Compensation - Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant (Detail) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | ' | ' | ' |
Risk-free interest rate, minimum | 0.70% | 0.70% | 0.90% |
Risk-free interest rate, maximum | 1.80% | 1.30% | 2.50% |
Estimated volatility, minimum | 31.20% | 36.60% | 36.70% |
Estimated volatility, maximum | 39.60% | 42.60% | 43.20% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted | $7.53 | $7.98 | $9.44 |
Maximum | ' | ' | ' |
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | ' | ' | ' |
Expected term, years | '5 years 6 months | '5 years 6 months | '5 years 6 months |
Minimum | ' | ' | ' |
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | ' | ' | ' |
Expected term, years | '5 years 1 month 6 days | '5 years 6 months | '5 years 3 months 18 days |
ShareBased_Compensation_Total_
Share-Based Compensation - Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Schedule Of Share Based Compensation Arrangements [Line Items] | ' | ' | ' |
Total share-based compensation expense | $11,674 | $14,097 | $13,676 |
Cost of goods sold | ' | ' | ' |
Schedule Of Share Based Compensation Arrangements [Line Items] | ' | ' | ' |
Total share-based compensation expense | 354 | 480 | 383 |
Selling, general and administrative | ' | ' | ' |
Schedule Of Share Based Compensation Arrangements [Line Items] | ' | ' | ' |
Total share-based compensation expense | 9,407 | 10,775 | 10,268 |
Research and development | ' | ' | ' |
Schedule Of Share Based Compensation Arrangements [Line Items] | ' | ' | ' |
Total share-based compensation expense | $1,913 | $2,842 | $3,025 |
ShareBased_Compensation_Number1
Share-Based Compensation - Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 01, 2011 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Number of Options, Options Outstanding | 8,911 | 8,368 | 8,277 | 6,941 |
Average Remaining Contractual Life, Options Outstanding | '6 years 1 month 13 days | '6 years 4 months 24 days | ' | ' |
Number of Options, Options Exercisable | 5,188 | 4,632 | 3,636 | ' |
$2.75 to $4.00 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 2.75 | ' | ' | ' |
Range of Exercise Prices, Upper | 4 | ' | ' | ' |
Number of Options, Options Outstanding | 279 | 425 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '1 year 4 days | '1 year 5 months 27 days | ' | ' |
Number of Options, Options Exercisable | 279 | 425 | ' | ' |
$4.67 to $12.00 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 4.67 | ' | ' | ' |
Range of Exercise Prices, Upper | 12 | ' | ' | ' |
Number of Options, Options Outstanding | 696 | 745 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '2 years 5 months 16 days | '3 years 5 months 9 days | ' | ' |
Number of Options, Options Exercisable | 696 | 745 | ' | ' |
$12.87 to $16.00 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 12.87 | ' | ' | ' |
Range of Exercise Prices, Upper | 16 | ' | ' | ' |
Number of Options, Options Outstanding | 549 | 580 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '3 years 4 months 21 days | '4 years 4 months 21 days | ' | ' |
Number of Options, Options Exercisable | 549 | 580 | ' | ' |
$17.84 to $23.98 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 17.84 | ' | ' | ' |
Range of Exercise Prices, Upper | 23.98 | ' | ' | ' |
Number of Options, Options Outstanding | 3,635 | 2,592 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '8 years 22 days | '8 years 3 months | ' | ' |
Number of Options, Options Exercisable | 986 | 662 | ' | ' |
$24.00 to $28.99 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 24 | ' | ' | ' |
Range of Exercise Prices, Upper | 28.99 | ' | ' | ' |
Number of Options, Options Outstanding | 1,708 | 1,811 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '6 years 2 months 12 days | '6 years 11 months 23 days | ' | ' |
Number of Options, Options Exercisable | 1,077 | 885 | ' | ' |
$29.07 to $31.99 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 29.07 | ' | ' | ' |
Range of Exercise Prices, Upper | 31.99 | ' | ' | ' |
Number of Options, Options Outstanding | 1,734 | 1,902 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '5 years 4 months 13 days | '6 years 3 months 18 days | ' | ' |
Number of Options, Options Exercisable | 1,311 | 1,090 | ' | ' |
$32.21 to $38.30 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 32.21 | ' | ' | ' |
Range of Exercise Prices, Upper | 38.3 | ' | ' | ' |
Number of Options, Options Outstanding | 117 | 117 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '5 years 3 months 11 days | '6 years 3 months 11 days | ' | ' |
Number of Options, Options Exercisable | 98 | 75 | ' | ' |
$38.60 to $41.51 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower | 38.6 | ' | ' | ' |
Range of Exercise Prices, Upper | 41.51 | ' | ' | ' |
Number of Options, Options Outstanding | 193 | 196 | ' | ' |
Average Remaining Contractual Life, Options Outstanding | '4 years 4 months 24 days | '5 years 4 months 28 days | ' | ' |
Number of Options, Options Exercisable | 192 | 170 | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 33 Months Ended | 62 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Mar. 14, 2011 | Jan. 31, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Feb. 03, 2009 | Jan. 17, 2012 | Oct. 04, 2010 | Jul. 09, 2009 | Aug. 21, 2013 | Dec. 28, 2013 | Jan. 16, 2014 | Jan. 16, 2014 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | |
distributor | distributor | Agreement | participant | Legal Settlement Covidien | Legal Settlement Covidien | Legal Settlement Covidien | Automobiles | Pulse oximetry products | Pulse oximetry products | Pulse oximetry products | Masimo vs. Nellcor | Masimo vs. Philips | Masimo vs. Philips | Masimo vs. Philips | Masimo vs. Mindray DS USA, Inc. and Shenzhen Mindray Bio-Medical Electronics | Masimo vs. Physicians Healthsource, Inc. [Member] | Subsequent Event | Subsequent Event | Subsequent Event | Just in time distributor one | Just in time distributor two | |||
Agreement | patent | construction | construction | patent | claim | Masimo vs Former Physician Office Sales Representatives | Masimo vs Former Physician Office Sales Representatives | |||||||||||||||||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jun-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leasehold improvement incentives received | $700,000 | ' | ' | $700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued rent expense | 700,000 | 800,000 | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expense related to operating leases | 5,100,000 | 4,600,000 | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest included in future minimum capital lease payments | 31,000 | ' | ' | 31,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee contribution percentage limit for full consideration under Employee Retirement Savings Plan | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's contribution to employee retirement savings plan | 1,500,000 | 1,400,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial term of agreement | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance plan participation agreements | 6 | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required notice of resignation | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amount of purchase commitments expected to be purchased within one year | 61,400,000 | ' | ' | 61,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank balances | 67,700,000 | ' | ' | 67,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank balance covered by Federal Deposit Insurance Corporation limit | 2,500,000 | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. Treasury bills | 26,000,000 | 32,000,000 | ' | 26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Money market funds | 1,800,000 | 1,600,000 | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of company's products to customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 287,900,000 | 253,700,000 | 223,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of just-in-time distributors | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable balance from two just-in-time distributor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 9.00% |
Percentage of accounts receivable balance from one just-in-time distributor | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty | 29,816,000 | 28,305,000 | 32,501,000 | ' | ' | ' | 29,800,000 | 28,300,000 | 32,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Royalty rate Percentage | ' | ' | ' | 7.75% | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents found infringed upon | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents allegedly infringed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Number of patents allegedly infringed, patent court limitation on plaintiff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents allegedly infringed, patent court limitation on defendant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, New Claims Filed, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Litigation settlement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | 5,400,000 | ' | ' | ' |
Litigation award and defense costs | 8,010,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' |
Damages sought per violation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500 | ' | ' | ' | ' | ' |
Number of Participants in the Surfactant, Positive Pressure, and Oxygenation Randomized Trial | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments Under Operating and Capital Leases (Detail) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases | ' |
2014 | $5,336 |
2015 | 3,893 |
2016 | 3,221 |
2017 | 1,696 |
2018 | 1,081 |
Thereafter | 2,109 |
Total | 17,336 |
Capital Leases | ' |
2014 | 125 |
2015 | 87 |
2016 | 80 |
2017 | 75 |
2018 | 0 |
Thereafter | 0 |
Total | 367 |
Total | ' |
2014 | 5,461 |
2015 | 3,980 |
2016 | 3,301 |
2017 | 1,771 |
2018 | 1,081 |
Thereafter | 2,109 |
Total | $17,703 |
Segment_Information_and_Enterp2
Segment Information and Enterprise Reporting - Analysis of Product Revenue Based upon Geographic Area Shipped (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Analysis of Product Revenues Based upon the Geographic Area Shipped | ' | ' | ' |
Total product revenue | $517,429 | $464,928 | $406,487 |
Total product revenue, in percentage | 100.00% | 100.00% | 100.00% |
North and South America | ' | ' | ' |
Analysis of Product Revenues Based upon the Geographic Area Shipped | ' | ' | ' |
Total product revenue | 378,810 | 341,672 | 301,583 |
Total product revenue, in percentage | 73.00% | 73.00% | 74.00% |
Europe, Middle East and Africa | ' | ' | ' |
Analysis of Product Revenues Based upon the Geographic Area Shipped | ' | ' | ' |
Total product revenue | 83,430 | 68,010 | 58,617 |
Total product revenue, in percentage | 16.00% | 15.00% | 14.00% |
Asia and Australia | ' | ' | ' |
Analysis of Product Revenues Based upon the Geographic Area Shipped | ' | ' | ' |
Total product revenue | 55,189 | 55,246 | 46,287 |
Total product revenue, in percentage | 11.00% | 12.00% | 12.00% |
United States | ' | ' | ' |
Analysis of Product Revenues Based upon the Geographic Area Shipped | ' | ' | ' |
Total product revenue | $361,631 | $327,574 | $287,138 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Before Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
United States | $50,782 | $59,216 | $62,730 |
Foreign | 24,944 | 24,605 | 23,801 |
Income before provision for income taxes | $75,726 | $83,821 | $86,531 |
Income_Taxes_Current_and_Defer
Income Taxes - Current and Deferred Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $24,488 | $26,332 | $23,951 |
State | 2,426 | 2,411 | 621 |
Foreign | 1,704 | -54 | 1,123 |
Total | 28,618 | 28,689 | 25,695 |
Deferred: | ' | ' | ' |
Federal | -7,281 | -5,546 | -2,415 |
State | -970 | -1,458 | -544 |
Foreign | -362 | 198 | -258 |
Total | -8,613 | -6,806 | -3,217 |
Income Tax Expense (Benefit) | $20,005 | $21,883 | $22,478 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Tax and accrued interest related to uncertain tax positions | ($0.30) | $1.70 | ($0.90) |
Effective tax rate | 26.40% | 26.10% | 26.00% |
Operating loss carryforwards, gross | 0.2 | ' | ' |
Indefinitely carryforward research and development credits | 2.7 | ' | ' |
Investment Tax Credit | 0.5 | ' | ' |
Estimated income tax benefit | 0.6 | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 0.9 | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 0.2 | ' | ' |
Foreign Tax Expense (Benefit), Business and Employment Actions | 1.2 | 1.2 | ' |
Earnings Per Share, Diluted, Effect of Foreign Tax Benefit Relating to Business and Employment Actions | $0.02 | $0.02 | ' |
Tax benefit from stock options exercised | 0.7 | 0.4 | 1.7 |
Deferred income taxes | 57.4 | ' | ' |
Additional income tax expense | 17.6 | ' | ' |
Amount of unrecognized benefits affecting future tax rate | 5.6 | 5.7 | ' |
Penalties and interest related to unrecognized tax benefits | 0.9 | 0.8 | 0.7 |
Sweden | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 1.3 | ' | ' |
Cercacor Laboratories, Inc | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Change in deferred tax asset | 2.3 | ' | ' |
Research Tax Credit Carryforward | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Research and development tax credit | $1 | ' | ' |
Income_Taxes_Deferred_Tax_Prov
Income Taxes - Deferred Tax Provision (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Total | ($8,613) | ($6,806) | ($3,217) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory regular federal income tax rate | 35.00% | 35.00% | 35.00% |
State provision, net of federal benefit | 1.30% | 0.70% | 0.10% |
Nondeductible items | 0.90% | 1.00% | 0.60% |
Foreign tax rate differential | -9.80% | -10.10% | -8.60% |
Tax credits | -3.50% | -0.50% | -1.10% |
Change in federal valuation allowance | 3.00% | 0.00% | 0.00% |
Other | -0.50% | 0.00% | 0.00% |
Total | 26.40% | 26.10% | 26.00% |
Income_Taxes_Components_of_Def
Income Taxes - Components of Deferred Tax Assets (Detail) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Tax credits | $3,203 | $2,492 |
Deferred revenue | 4,234 | 2,999 |
Acquired intangibles | 507 | 587 |
Net operating losses | 277 | 4,688 |
Accrued liabilities | 17,036 | 9,713 |
Share-based compensation | 19,385 | 17,660 |
Property and equipment | 670 | 590 |
Other | 2,149 | 1,473 |
Total | 47,461 | 40,202 |
Valuation allowance | -3,563 | -2,441 |
Total deferred tax assets | 43,898 | 37,761 |
Deferred tax liabilities: | ' | ' |
Property and equipment | 0 | -15 |
Acquired intangibles | 0 | -2,305 |
State taxes and other | -1,697 | -1,452 |
Total deferred tax liabilities | -1,697 | -3,772 |
Net deferred tax assets | 42,201 | 33,989 |
Current net deferred tax asset | 19,636 | 12,911 |
Long-term net deferred tax asset | $22,565 | $21,078 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Unrecognized tax benefits, beginning of period | $6,685 | $8,366 |
Increase from tax positions in prior period | 265 | 47 |
Increase from tax positions in current period | 695 | 563 |
Settlements | -443 | -1,725 |
Lapse of statute of limitations | -572 | -566 |
Unrecognized tax benefits, end of period | $6,630 | $6,685 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 16, 2014 | Jan. 16, 2014 | Dec. 28, 2013 | |
Subsequent Event | Masimo vs Former Physician Office Sales Representatives | Masimo vs Former Physician Office Sales Representatives | ||||
Subsequent Event | Subsequent Event | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Litigation settlement amount | ' | ' | ' | $5,400,000 | $5,400,000 | ' |
Litigation award and defense costs | $8,010,000 | $0 | $0 | ' | ' | $2,600,000 |
Quarterly_Financial_Data_unaud2
Quarterly Financial Data (unaudited) - Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | $142,435 | $131,447 | $137,422 | $135,942 | $132,161 | $119,069 | $122,775 | $119,228 | $547,245 | $493,233 | $438,988 |
Gross profit | 90,536 | 87,479 | 91,232 | 89,581 | 87,181 | 78,333 | 81,432 | 79,305 | 358,827 | 326,251 | 294,134 |
Operating income | 12,653 | 20,743 | 23,180 | 23,141 | 22,273 | 17,952 | 22,673 | 22,328 | 79,717 | 85,226 | 86,517 |
Net income attributable to Masimo Corporation stockholders | $9,313 | $15,602 | $17,038 | $16,428 | $15,007 | $13,794 | $17,697 | $15,774 | $58,381 | $62,272 | $63,700 |
Net income per share attributable to Masimo Corporation stockholders: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in usd per share) | $0.16 | $0.28 | $0.30 | $0.29 | $0.26 | $0.24 | $0.31 | $0.27 | $1.03 | $1.08 | $1.07 |
Diluted (in usd per share) | $0.16 | $0.27 | $0.30 | $0.28 | $0.26 | $0.24 | $0.30 | $0.27 | $1.02 | $1.07 | $1.05 |