Masimo (MASI) 10-Q 6 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Oct. 03, 2015shares
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 3, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	MASI
Entity Registrant Name	MASIMO CORP
Entity Central Index Key	937,556
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	50,287,697

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Current assets
Cash and cash equivalents	$ 103,581	$ 134,453
Accounts receivable, net of allowance for doubtful accounts of $2,180 and $1,890 at October 3, 2015 and January 3, 2015, respectively	75,465	71,017
Inventories	73,311	69,718
Prepaid income taxes	5,420	417
Other current assets	21,710	21,471
Deferred tax assets	18,062	18,065
Total current assets	297,549	315,141
Deferred Costs, Noncurrent	67,891	67,485
Property and equipment, net	128,569	101,952
Intangible assets, net	27,883	27,771
Goodwill	20,452	20,979
Deferred tax assets	24,124	24,193
Other assets	11,318	7,485
Total assets	577,786	565,006
Current liabilities
Accounts payable	28,735	38,045
Accrued compensation	31,734	33,600
Accrued liabilities	24,096	24,541
Income taxes payable	2,481	6,562
Deferred revenue	24,647	21,067
Long-term Debt and Capital Lease Obligations, Current	80	79
Total current liabilities	111,773	123,894
Deferred revenue	337	453
Long-term Debt and Capital Lease Obligations	190,100	125,145
Other liabilities	7,342	7,773
Total liabilities	$ 309,552	$ 257,265
Commitments and contingencies
Masimo Corporation stockholders’ equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; 0 shares issued and outstanding at October 3, 2015 and January 3, 2015	$ 0	$ 0
Common stock, $0.001 par value; 100,000 shares authorized; 50,287 and 52,594 shares issued and outstanding at October 3, 2015 and January 3, 2015, respectively	50	52
Treasury stock, 12,156 and 8,611 shares at October 3, 2015 and January 3, 2015, respectively	(316,063)	(185,906)
Additional paid-in capital	325,128	288,686
Accumulated other comprehensive loss	(4,339)	(2,093)
Retained earnings	264,459	205,260
Total Masimo Corporation stockholders’ equity	269,235	305,999
Noncontrolling interest	(1,001)	1,742
Total equity	268,234	307,741
Total liabilities and equity	$ 577,786	$ 565,006

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,180	$ 1,890
Preferred stock, par value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	50,287,000	52,594,000
Treasury stock, shares	12,156,000	8,611,000

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income Statement - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Product	$ 144,603	$ 137,142	$ 439,572	$ 402,868
Royalty	7,972	6,976	23,266	21,988
Total revenue	152,575	144,118	462,838	424,856
Cost of goods sold	50,343	47,894	154,600	143,236
Gross profit	102,232	96,224	308,238	281,620
Selling, general and administrative	59,607	62,064	182,072	179,533
Research and Development Expense	14,485	14,213	42,808	41,552
Litigation award and defense costs	0	(2,321)	0	(10,331)
Operating Expenses	74,092	73,956	224,880	210,754
Operating income	28,140	22,268	83,358	70,866
Nonoperating Income (Expense)	(1,050)	(566)	(2,022)	(43)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	27,090	21,702	81,336	70,823
Provision for income taxes	9,161	5,568	24,889	18,246
Net income including noncontrolling interest	17,929	16,134	56,447	52,577
Net loss attributable to noncontrolling interest	1,396	(1,271)	2,752	(1,280)
Net income attributable to Masimo Corporation stockholders	19,325	14,863	59,199	51,297
Foreign currency translation adjustments	112	(1,701)	(2,246)	(3,411)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 19,437	$ 13,162	$ 56,953	$ 47,886
Basic (in usd per share)	$ 0.38	$ 0.28	$ 1.15	$ 0.92
Diluted (in usd per share)	$ 0.36	$ 0.27	$ 1.10	$ 0.91
Basic (in shares)	50,974	53,988	51,653	55,521
Diluted (in shares)	53,686	54,618	53,946	56,381

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Income Statement [Abstract]
Net income including noncontrolling interest	$ 17,929	$ 16,134	$ 56,447	$ 52,577
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	112	(1,701)	(2,246)	(3,411)
Total comprehensive income	18,041	14,433	54,201	49,166
Net loss attributable to the noncontrolling interest	1,396	(1,271)	2,752	(1,280)
Comprehensive income attributable to Masimo Corporation stockholders	$ 19,437	$ 13,162	$ 56,953	$ 47,886

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Cash flows from operating activities:
Net income including noncontrolling interest	$ 56,447	$ 52,577
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Depreciation and amortization	11,603	9,481
Share-based compensation	8,132	7,784
Gain (Loss) on Disposition of Property Plant Equipment	22	2
Provision for doubtful accounts	506	211
Provision for deferred income taxes	0	2,926
Income tax benefit from exercise of stock options granted prior to January 1, 2006	2,006	49
Excess tax (benefit) deficit from share-based compensation arrangements	(1,837)	74
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(5,048)	3,198
Increase in inventories	(3,755)	(6,306)
Increase in deferred cost of goods sold	(528)	(3,580)
Increase in prepaid income taxes	(5,003)	(685)
Increase in other assets	(4,140)	(4,793)
Decrease in accounts payable	(4,179)	(1,609)
(Decrease) increase in accrued compensation	(1,436)	1,181
(Decrease) increase in accrued liabilities	(276)	5,446
(Decrease) increase in income tax payable	(2,212)	558
Increase in deferred revenue	3,465	445
Decrease in other liabilities	(272)	(136)
Net cash provided by operating activities	53,495	66,823
Cash flows from investing activities:
Purchases of property and equipment, net	(40,520)	(66,847)
Increase in intangible assets	(3,085)	(2,779)
Net cash used in investing activities	(43,605)	(69,626)
Cash flows from financing activities:
Proceeds from (Repayments of) Lines of Credit	107,500	125,000
Repayments of Lines of Credit	(42,500)	0
Debt Issuance Cost	0	(143)
Repayments of capital lease obligations	(81)	(105)
Proceeds from issuance of common stock	24,942	2,687
Payments Related to Tax Withholding for Share-based Compensation	(472)	0
Excess tax benefit (deficit) from share-based compensation arrangements	1,837	(74)
Repurchases of common stock	(130,157)	(98,676)
Issuance (repurchases) of equity by noncontrolling interest, net of equity issued	4	(38)
Net cash (used in) provided by financing activities	(38,927)	28,651
Effect of foreign currency exchange rates on cash	(1,835)	(2,326)
Net (decrease) increase in cash and cash equivalents	(30,872)	23,522
Cash and cash equivalents at beginning of period	134,453	95,466
Cash and cash equivalents at end of period	$ 103,581	$ 118,988

Description of the Company

Description of the Company	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Description of the Company	Description of the Company Masimo Corporation (the Company) is a global medical technology company that develops, manufactures and markets a variety of noninvasive patient monitoring technologies. 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’s patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use, reusable or resposable sensors, software and/or cables. The Company primarily sells its products to hospitals, emergency medical service (EMS) providers, home care providers, physician offices, veterinarians, long term care facilities and consumers through its direct sales force, distributors and original equipment manufacturer (OEM) partners. The Company invented Masimo Signal Extraction Technology ® (SET ® ), which provides the capabilities of Measure-Through-Motion and Low-Perfusion ™ pulse oximetry to address the primary limitations of conventional pulse oximetry. Over the years, the Company’s product offerings have expanded significantly to also include noninvasive optical blood constituent monitoring, optical organ oximetry monitoring, electrical brain function monitoring, acoustic respiration monitoring and optical gas monitoring. The Company also developed the Root ® patient monitoring and connectivity platform and the Masimo Patient SafetyNet ™ remote patient surveillance monitoring system. These solutions and related products are based upon Masimo SET ® , rainbow ® and other proprietary algorithms. These software-based technologies are incorporated into a variety of product platforms depending on customers’ specifications. This technology is supported by a substantial intellectual property portfolio that the Company has built through internal development and, to a lesser extent, acquisitions and license agreements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, including normal recurring accruals, necessary to present fairly the Company’s condensed consolidated financial statements. The condensed consolidated balance sheet as of January 3, 2015 was derived from the Company’s audited consolidated financial statements at that date. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2015 (fiscal year 2014), filed with the SEC on February 17, 2015 . The results for the three and nine months ended October 3, 2015 are not necessarily indicative of the results to be expected for the fiscal year ending January 2, 2016 (fiscal year 2015) or for any other interim period or for any future year. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the variable interest entity (VIE) of which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. In accordance with GAAP, current authoritative guidance is applied when determining whether an entity is subject to consolidation. Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 fiscal year, a 52 week fiscal 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 Company’s last 53 week fiscal year was fiscal year 2014. Fiscal year 2015 is a 52 week fiscal year. All references to years in these notes to condensed 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 the determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate accruals, 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, litigation costs and related accruals. Actual results could differ from such estimates. Reclassifications Certain amounts in the condensed consolidated financial statements for prior periods have been reclassified to conform to the 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 the 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 three and nine months ended October 3, 2015 . The Company carries cash and cash equivalents at cost, which approximates fair value. As of October 3, 2015 and January 3, 2015 , the Company did not have any short-term investments. The following tables represent the Company’s financial assets (in thousands), measured at fair value on a recurring basis: October 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 84,871 $ — $ — $ 84,871 $ 84,871 Level 1: Bank Time Deposits 17,500 — — 17,500 17,500 U.S. Treasuries — — — — — Money Market Funds 1,210 — — 1,210 1,210 Subtotal 18,710 — — 18,710 18,710 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 103,581 $ — $ — $ 103,581 $ 103,581 January 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 92,888 $ — $ — $ 92,888 $ 92,888 Level 1: Bank Time Deposits 40,500 — — 40,500 40,500 U.S. Treasuries — — — — — Money Market Funds 1,065 — — 1,065 1,065 Subtotal 41,565 — — 41,565 41,565 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 134,453 $ — $ — $ 134,453 $ 134,453 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 generally 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. 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 costs. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory items that have a market price less than carrying value. Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Buildings 39 years Building and land improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Land is not depreciated and construction-in-progress is not depreciated until placed in service. 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 nine months ended October 3, 2015 and September 27, 2014 , depreciation and amortization expense of property and equipment was $8.6 million and $6.8 million , respectively. Intangible Assets The Company’s policy is to renew its patents and trademarks. Total renewal costs for patents and trademarks were $0.2 million for both the three months ended October 3, 2015 and September 27, 2014, respectively. Total renewal costs for patents and trademarks were $0.5 million for each of the nine months ended October 3, 2015 and September 27, 2014 . As of October 3, 2015 , the weighted-average number of years until the next renewal was one year for patents and five years for trademarks. Costs to renew patents and trademarks are capitalized and amortized over the remaining useful life of the intangible asset. 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. Impairment of Goodwill, Intangible Assets and Other Long-Lived 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 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 three and nine months ended October 3, 2015 or September 27, 2014 . Revenue Recognition and Deferred Revenue The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue from the sale of products or services 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. In the case of the license or sale of software that does not function together with hardware components to provide the essential functionality of the hardware, revenue is recognized pursuant to the software revenue recognition guidance. The Company derives the majority of its revenue from four primary sources: (i) direct sales under long-term sensor purchase agreements with end-user hospitals where the Company provides up-front monitoring equipment at no up-front charge in exchange for a multi-year sensor purchase commitment, (ii) other direct sales of noninvasive monitoring solutions to end-user hospitals, emergency medical response organizations and other direct customers; (iii) sales of noninvasive monitoring solutions to distributors who then typically resell to end-user hospitals, emergency medical response organizations and other direct customers, many of which have long-term sensor purchase agreements with the Company; and (iv) sales of integrated circuit boards and consumables to original equipment manufacturer (OEM) customers who incorporate the Company’s circuit boards and embedded software technology into their multi-parameter monitoring devices and resell the consumables. The Company enters into agreements to sell its noninvasive monitoring solutions and services, sometimes as part of 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 and analysis is sometimes required to determine the appropriate accounting, including: (i) how the arrangement consideration should be allocated among the deliverables when multiple deliverables exist, (ii) when to recognize revenue on the deliverables, and (iii) 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. In the case of multiple deliverable arrangements, the authoritative guidance provides 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 (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE 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. 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 (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 containing embedded Masimo SET ® or rainbow ® SET software, the Company has determined that the hardware and software components function together to deliver the equipment’s essential functionality and, therefore, represent a single deliverable. However, software deliverables, such as rainbow ® parameter software, which do not function together with hardware components to provide the equipment’s essential functionality, are accounted for under 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 revenue recognition accounting guidance for arrangements with multiple deliverables. Sales under long-term sensor purchase contracts are generally structured such that the Company agrees to provide at no up-front charge certain monitoring equipment, software, installation, training and/or warranty support in exchange for the hospital’s agreement to purchase sensors over the term of the agreement, which generally ranges from three to seven years. 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. The Company recognizes revenue for these delivered elements on a pro-rata basis when installation and training are complete, as the sensors are delivered under the long-term purchase commitment. 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. Many of the Company’s distributors purchase sensor products which they then resell to end-user hospitals that are typically fulfilling their purchase obligations to the Company under such end-user hospital’s long-term sensor purchase commitments. Upon shipment to the distributor, revenue is deferred until the distributor ships the product to the Company’s end-user customers based on an estimate of the inventory held by these distributors at the end of the accounting period. The Company also earns revenue from the sale of integrated circuit boards and other products, as well as from rainbow ® parameter software licenses, to OEMs under various agreements. Revenue from the sale of products to the OEMs is generally recognized at the time of shipment. Revenue related to software licenses to OEMs is generally recognized upon shipment of the OEM’s product to its customers, as represented to the Company by the OEM. The Company also provides certain customers with the ability to purchase sensors under rebate programs. Under these programs, the customers 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 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. The Company’s royalty revenue arises from one agreement with Medtronic plc (Medtronic, formerly Covidien), and is due and payable quarterly based on U.S. sales of Medtronic’s infringing products. An estimate of these royalty revenues is recorded quarterly in the period earned based on the prior quarter’s historical results, adjusted for any new information or trends known to management at the time of estimation. This estimated revenue is adjusted prospectively when the Company receives the royalty report from Medtronic, approximately 60 days after the end of the previous quarter. Product Warranty The Company generally provides a warranty against defects in material and workmanship for a period ranging from six to fourteen months, depending on the product type. In the case of long-term sales agreements, the Company typically warrants the products for the term of the agreement, which generally 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): Nine Months Ended October 3, September 27, Warranty accrual, beginning of period $ 1,416 $ 1,161 Accrual for warranties issued 679 684 Changes to pre-existing warranties (including changes in estimates) (52 ) 25 Settlements made (828 ) (812 ) Warranty accrual, end of period $ 1,215 $ 1,058 Litigation Costs and Contingencies The Company records a charge equal to at least the minimum estimated liability for a loss contingency or litigation settlement when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. The determination of whether a loss contingency or litigation settlement is probable or reasonably possible involves a significant amount of management judgment, as does the estimation of the range of loss given the nature of contingencies. Liabilities related to litigation settlements with multiple elements are recorded based on the fair value of each element. Legal and other litigation related expenses are recognized as the services are provided. The Company records insurance and other indemnity recoveries for litigation expenses when both of the following conditions are met: (a) the recovery is probable, and (b) collectability is reasonably assured. Insurance recoveries are only recorded to the extent the litigation costs to which they relate have been incurred and recognized in the financial statements. 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 any related tax benefits that have been excluded from net income including noncontrolling interest, and reflected in Masimo Corporation stockholders’ equity. The change in accumulated other comprehensive loss was as follows (in thousands): Nine Months Ended Accumulated other comprehensive loss, beginning of period $ (2,093 ) Foreign currency translation adjustments (2,246 ) Accumulated other comprehensive loss, end of period $ (4,339 ) Net Income Per Share Basic net income per share attributable to Masimo Corporation for the three and nine months ended October 3, 2015 and September 27, 2014 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 three and nine months ended October 3, 2015 and September 27, 2014 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 three and nine months ended October 3, 2015 , weighted options to purchase approximately 0.5 million and 0.6 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 applicable period. For the three and nine months ended September 27, 2014 , weighted options to purchase approximately 3.1 million and 1.5 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 applicable period. Based on authoritative accounting guidance, the Company adjusted its net income including noncontrolling interest by the amount of net (income) loss attributable to the noncontrolling interest for the three and nine months ended October 3, 2015 and September 27, 2014 , to determine its net income attributable to its stockholders. A reconciliation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Net income attributable to Masimo Corporation stockholders: Net income including noncontrolling interest $ 17,929 $ 16,134 $ 56,447 $ 52,577 Net loss (income) attributable to the noncontrolling interest 1,396 (1,271 ) 2,752 (1,280 ) Net income attributable to Masimo Corporation stockholders $ 19,325 $ 14,863 $ 59,199 $ 51,297 Basic net income per share attributable to Masimo Corporation stockholders: Net income attributable to Masimo Corporation stockholders $ 19,325 $ 14,863 $ 59,199 $ 51,297 Weighted-average shares outstanding - basic 50,974 53,988 51,653 55,521 Basic net income per share attributable to Masimo Corporation stockholders $ 0.38 $ 0.28 $ 1.15 $ 0.92 Diluted net income per share attributable to Masimo Corporation stockholders: Weighted-average shares outstanding - basic 50,974 53,988 51,653 55,521 Diluted share equivalent: stock options 2,712 630 2,293 860 Weighted-average shares outstanding - diluted 53,686 54,618 53,946 56,381 Diluted net income per share attributable to Masimo Corporation stockholders $ 0.36 $ 0.27 $ 1.10 $ 0.91 Supplemental Cash Flow Information Supplemental cash flow information includes the following (in thousands): Nine Months Ended October 3, September 27, Cash paid during the year for: Interest (net of amounts capitalized) $ 1,548 $ 222 Income taxes 29,854 15,110 Noncash investing and financing activities: Assets acquired under capital leases $ 36 $ — Unpaid purchases of property, plant and equipment 7,093 3,330 Unsettled common stock proceeds — 3,196 Seasonality The healthcare business in the United States and overseas is subject to quarterly fluctuations in hospital and other alternative care admissions. Historically, the Company has typically experienced higher product revenues during the traditional “flu season” that often increases hospital and acute care facility admissions in the Company’s first and fourth fiscal quarters. At the same time, the Company has often experienced a sequential decline in product revenues in its second and third fiscal quarters primarily due to the summer vacation season during which people tend to avoid and/or delay elective procedures. Because the Company’s non-sales variable operating expenses often do not fluctuate in the same manner as its quarterly product sales, its quarterly operating income may fluctuate disproportionately to its quarterly revenue. Recently Issued Accounting Pronouncements In August 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-15, Interest - Imputation of Interest (Subtopic 832-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement June 18, 2015 EITF Meeting (ASU 2015-15) . ASU 2015-15 clarifies the treatment of debt issuance costs associated with line-of-credit arrangements upon the adoption of ASU 2015-03 (as discussed below). In particular, ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 will become effective upon the Company’s adoption of ASU 2015-03.The Company does not expect that its adoption of this standard will have a material impact on its consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory (Topic 330) . The new standard provides guidance that simplifies the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost and net realizable value test, where net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. ASU-2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted, and should be applied prospectively. The Company is currently evaluating this standard but does not expect that its adoption will have a material impact on its consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). The new standard requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. ASU 2015-03 requires retrospective application and represents a change in accounting principle. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect that its adoption of this standard will have a material impact on its consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02). The amended standard applies to entities in all industries and eliminates the deferral of certain consolidation standards for entities considered to be investment companies as well as modifies the consolidation analysis performed on certain types of legal entities. ASU 2015-02 is effective for annual and interim fiscal reporting periods beginning after December 15, 2015, and may be applied retrospectively, with early application permitted. The Company is continuing to evaluate the expected impact of this standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue (Topic 606): Revenue from Contracts with Customer (ASU 2014-09) . The new standard provides a single, principles-based five-step model to be applied to all contracts with customers while enhancing disclosures about revenue, providing additional guidance for transactions that were not previously addressed comprehensively and improving guidance for multiple-element arrangements. ASU 2014-09 will replace most existing revenue recognition guidance under GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which amended ASU 2014-09, providing for a one year deferral period for the implementation of ASU 2014-09. ASU 2014-09 will now be effective for annual and interim periods beginning on o

Variable Interest Entity (VIE)

Variable Interest Entity (VIE)	9 Months Ended
	Oct. 03, 2015
Variable Interest Entity [Abstract]
Variable Interest Entity (VIE)	Variable Interest Entity (VIE) The Company follows authoritative guidance for the consolidation of its VIE, which requires an enterprise to determine whether its variable interest gives it a controlling financial interest in a VIE. 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. Cercacor Laboratories, Inc. (Cercacor) Cercacor is an independent entity spun off from the Company to its stockholders in 1998. 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 (the Cross-Licensing Agreement), 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, which governs 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 certain non-invasive measurements, including carbon monoxide, methemoglobin, fractional arterial oxygen saturation and hemoglobin. 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. During the year ended December 28, 2013, the Company exercised its right to license from Cercacor five additional non-vital sign measurements for $0.5 million each, or $2.5 million in the aggregate. As the result of new data related to these five additional non-vital sign measurements, the Company and Cercacor terminated these licenses during the three months ended October 3, 2015 and Cercacor agreed to refund the amounts previously paid by the Company for these licenses. To date, the Company has developed and commercially released devices that measure carbon monoxide, methemoglobin and hemoglobin using licensed rainbow ® technology. The Company also markets certain other rainbow technologies, such as rainbow Acoustic Monitoring ™ , the rights to which are owned by the Company and for which no licensing fee is paid to Cercacor. 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 uses commercially reasonable efforts to develop or market products incorporating the licensed rainbow ® technology. The royalty rate is up to 10% of the rainbow ® royalty base, which includes handhelds, tabletop and multi-parameter devices. Handheld products incorporating rainbow ® technology will carry up to a 10% royalty rate. For other products, only the proportional amount attributable to that portion of the Company’s devices used to monitor non-vital signs measurements, rather than to monitor vital signs measurements, and sensors and accessories for measuring only non-vital signs parameters, will be included in the 10% rainbow ® royalty base. Effective January 2009, for multi-parameter devices, the rainbow ® royalty base includes 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. The current annual minimum aggregate royalty obligation under the license is $5.0 million . Actual aggregate royalty liabilities to Cercacor under the license were $1.7 million and $4.3 million for the three and nine months ended October 3, 2015 , respectively, and $0.9 million and $4.0 million for the three and nine months ended September 27, 2014 , respectively. In connection with a change in control of the Company, as defined in the Cross-Licensing Agreement, the minimum aggregate annual royalties for licensed rainbow ® measurements payable to Cercacor related to carbon monoxide, methemoglobin, fractional arterial oxygen saturation, hemoglobin and blood glucose will increase to $15.0 million , plus up to $2.0 million 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 engineering expenses of Cercacor. 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. Beginning in 2012, 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% . This arrangement was discontinued by mutual agreement effective as of January 4, 2015. During the three and nine months ended September 27, 2014 , the expenses for these additional services, materials and supplies totaled $0.8 million and $2.6 million , respectively. During the three months ended October 3, 2015 , Cercacor completed a review of its fiscal 2014 cross-charges related to Pronto-7 ® . Based on this review, it was determined that less than 60% of Cercacor’s total engineering and engineering-related payroll expenses were attributable to the development of Pronto-7 ® , resulting in an overpayment by the Company of approximately $1.6 million. Both parties also reviewed and agreed to equally share approximately $1.4 million of previously incurred engineering-related payroll expenses associated with research for a new LED sensor technology. As a result, the parties mutually agreed that Cercacor would refund $0.9 million to the Company in the quarter ended October 3, 2015 . Effective as of July 6, 2015, the Company and Cercacor entered into a patent transfer and licensing agreement (the Patent Agreement) pursuant to which, among other things, the Company purchased certain patents from Cercacor (the Purchased Patents) for an aggregate purchase price of $2.4 million . Pursuant to the Patent Agreement, the Company granted Cercacor an irrevocable, non-exclusive, worldwide license with respect to the products and services covered by the Purchased Patents. 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 currently deemed to be the primary beneficiary of Cercacor’s activities. This determination is based primarily on the facts that the Company is Cercacor’s sole customer and Cercacor is currently financially dependent on the Company for funding. 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. Also, 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 condensed consolidated statements of comprehensive income. Upon consolidation, $3.9 million and $6.5 million of deferred revenue related to technology licensed to the Company as of October 3, 2015 and January 3, 2015 , respectively, were eliminated. 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. The condensed consolidated balance sheets include a noncontrolling interest in Cercacor of $1.0 million and $1.7 million as of October 3, 2015 and January 3, 2015 , respectively, which represents the value of common stock, additional paid-in capital and retained earnings of Cercacor that are not available to the Company. In addition, the condensed consolidated balance sheets include, net of intercompany eliminations, total assets of $4.0 million and $7.2 million as of October 3, 2015 and January 3, 2015 , respectively, related to Cercacor. Cercacor’s total assets as of October 3, 2015 included $2.9 million for intangible assets and $0.8 million for property and equipment. Cercacor’s total assets as of January 3, 2015 included $4.7 million for intangible assets and $1.2 million for property and equipment. The Company’s condensed consolidated balance sheets include total liabilities related to Cercacor, net of intercompany eliminations, of $0.9 million as of October 3, 2015 and $1.2 million as of January 3, 2015 . 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 under such accounting guidance, the Company may discontinue consolidating the entity. The changes in noncontrolling interest for Cercacor were as follows (in thousands): Nine Months Ended Noncontrolling interest, beginning of period $ 1,742 Increase in additional paid-in capital of noncontrolling interest 9 Net loss attributable to noncontrolling interest 2,752 Noncontrolling interest, end of period $ (1,001 )

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Oct. 03, 2015
Cash and Cash Equivalents [Abstract]
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 that are readily convertible into known amounts of cash, to be cash equivalents. As of October 3, 2015 , the Company’s cash balance was $84.9 million , which was primarily comprised of checking accounts. Additionally, the Company had cash equivalents of $18.7 million , which consisted of $17.5 million of bank time deposits and $1.2 million of money market funds. As of January 3, 2015 , the Company’s cash balance was $92.9 million , comprised primarily of checking accounts. Additionally, the Company had cash equivalents of $41.6 million , consisting of $40.5 million of bank time deposits and $1.1 million of money market funds.

Inventories

Inventories	9 Months Ended
	Oct. 03, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): October 3, January 3, Raw materials $ 32,831 $ 33,056 Work-in-process 4,566 6,020 Finished goods 35,914 30,642 Total inventories $ 73,311 $ 69,718

Other Current Assets (Notes)

Other Current Assets (Notes)	9 Months Ended
	Oct. 03, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets [Text Block]	6. Other Current Assets Other current assets consist of the following (in thousands): October 3, January 3, Royalties receivable $ 7,000 $ 7,200 Prepaid expenses 10,361 9,816 Employee loans and advances 320 385 Other current assets 4,029 4,070 Total other current assets $ 21,710 $ 21,471

Property and Equipment Property

Property and Equipment Property, Plant and Equipment	9 Months Ended
	Oct. 03, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net, consists of the following (in thousands): October 3, January 3, Machinery and equipment $ 42,305 $ 38,588 Building and improvements 72,738 30,678 Land 23,737 22,894 Computer equipment 14,829 13,035 Tooling 13,178 12,317 Leasehold improvements 7,711 9,912 Furniture and office equipment 8,713 4,864 Demonstration units 979 972 Vehicles 45 45 Construction-in-progress 6,937 25,731 Total cost 191,172 159,036 Accumulated depreciation and amortization (62,603 ) (57,084 ) Property and equipment, net $ 128,569 $ 101,952 In June 2015, the Company, through a wholly owned subsidiary, completed the purchase of its previously leased 90,000 square foot manufacturing, office and warehouse facility located in New Hampshire (the Property). The total purchase price of the Property, inclusive of closing costs and amounts allocable to certain intangible assets and the termination of the existing lease, was $8.5 million , of which $6.3 million was recorded to land, building and improvements. In September 2015, the Company completed construction on certain renovations to its new corporate headquarters and research and development facility in Irvine, California, resulting in the occupancy of approximately 78,000 additional square feet of office space and the reclassification of approximately $28.3 million from construction-in-progress to building and improvements. Approximately $5.4 million of the remaining construction-in-progress relates to purchase and renovation costs for the corporate headquarters and research and development facility. Approximately $6.9 million of construction costs related to this facility are included in accounts payable as of October 3, 2015 . The gross value of furniture and office equipment under capital lease obligations was $0.6 million as of both October 3, 2015 and January 3, 2015 , with accumulated depreciation of $0.5 million and $0.4 million as of October 3, 2015 and January 3, 2015 , respectively.

Intangible Assets Intangible As

Intangible Assets Intangible Assets	9 Months Ended
	Oct. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, net, consist of the following (in thousands): October 3, January 3, Patents $ 21,606 $ 20,459 Customer relationships 7,669 7,669 Acquired technology 5,580 5,580 Trademarks 3,867 3,562 Capitalized software development costs 2,427 2,066 Other 2,534 1,450 Total cost 43,683 40,786 Accumulated amortization (15,800 ) (13,015 ) Intangible assets, net $ 27,883 $ 27,771 Total amortization expense for the three months ended October 3, 2015 and September 27, 2014 was $0.9 million and $1.0 million , respectively. Total amortization expense for the nine months ended October 3, 2015 and September 27, 2014 was $3.3 million and $2.7 million , respectively. All of these intangible assets have a 10 year weighted average amortization period. Estimated amortization expense for future fiscal years is as follows (in thousands): Fiscal year Amount 2015 (balance of year) $ 3,596 2016 3,364 2017 3,156 2018 2,592 2019 2,458 Thereafter 12,717 Total $ 27,883

Accrued Liabilities (Notes)

Accrued Liabilities (Notes)	9 Months Ended
	Oct. 03, 2015
Accrued Liabilities [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	9. Accrued Liabilities Accrued liabilities consist of the following (in thousands): October 3, January 3, Accrued customer rebates, fees and reimbursements $ 11,912 $ 11,645 Accrued taxes 3,648 4,372 Accrued warranty 1,215 1,416 Accrued other 7,321 7,108 Total accrued liabilities $ 24,096 $ 24,541

Long-term debt Debt instruments

Long-term debt Debt instruments (Notes)	9 Months Ended
	Oct. 03, 2015
Debt Disclosure [Abstract]
Line of Credit	Long Term Debt Long term debt consists of the following (in thousands): October 3, January 3, Revolving line of credit $ 190,000 $ 125,000 Long term portion of capital lease obligations acquisition 100 145 Total long term debt $ 190,100 $ 125,145 In September 2014, the Company executed Amendment No. 1 to Credit Agreement (Amendment 1) with JPMorgan Chase Bank, N.A., as Administrative Agent and a Lender (JPMorgan), and Bank of America, N.A., as a Lender (BofA). Amendment 1 modified the credit agreement dated April 23, 2014, by and among the Company, the Lenders from time to time party thereto and JPMorgan (the Credit Agreement and collectively with Amendment 1, the Amended Credit Agreement). The Amended Credit Agreement increased the Company’s borrowing capacity by $125.0 million , bringing the total available borrowing capacity to $250.0 million with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity up to $350.0 million in the future. The Amended Credit Agreement also provides for a sublimit of up to $50.0 million for the issuance of letters of credit and a sublimit of $75.0 million for borrowings in specified foreign currencies. All unpaid principal under the Amended Credit Agreement will become due and payable on September 29, 2019. Borrowings under the Amended Credit Agreement will be deemed, at the Company’s election, either: (i) an ABR Loan, which bears interest at the Alternate Base Rate (as defined below), plus a spread (ABR Spread) based upon a Company leverage ratio, or (ii) a Eurodollar Loan, which bears interest at the Adjusted LIBO Rate (as defined below), plus a spread (Eurodollar Spread) based upon a Company leverage ratio. The ABR Spread is 0.125% to 1.00% and the Eurodollar Spread is 1.125% to 2.000% . Subject to certain conditions, the Company may also request swingline loans from time to time (Swingline Loans) that bear interest similar to an ABR Loan. The Alternate Base Rate is determined by taking the greatest of (i) the prime rate, (ii) the federal funds effective rate plus 0.50% , and (iii) the one-month Adjusted LIBO Rate plus 1.0% . The Adjusted LIBO Rate is equal to LIBOR for the applicable interest period multiplied by the statutory reserve rate for such period. The Company is obligated under the Amended Credit Agreement to pay a fee ranging from 0.175% to 0.300% per annum, based upon a Company leverage ratio, with respect to any unused portion of the line of credit. This fee and interest on any ABR Loan are due and payable quarterly in arrears. Interest on any Eurodollar Loan is due and payable at the end of the applicable interest period (or at each three month interval in the case of loans with interest periods greater than three months). Interest on any Swingline Loan is due and payable on the date that the Swingline Loan is required to be repaid. The Company may prepay the loans and terminate the commitments in whole at any time, without premium or penalty, subject to reimbursement of certain costs in the case of Eurodollar Loans. Pursuant to the terms of the Amended Credit Agreement, the Company is subject to certain covenants, including financial covenants related to a leverage ratio and an interest charge coverage ratio, and other customary negative covenants. The Company’s obligations under the Amended Credit Agreement are secured by substantially all of the Company’s personal property, including certain equity interests in U.S. domestic and first-tier foreign subsidiaries. As of October 3, 2015 , the Amended Credit Agreement had outstanding Eurodollar Loan draws totaling $190.0 million at an effective interest rate of 1.50% , and the Company was in compliance with all covenants under the Amended Credit Agreement.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Oct. 03, 2015
Equity [Abstract]
Stock Repurchase Program	Stock Repurchase Programs In February 2013, the Company’s board of directors authorized the repurchase of up to 6.0 million shares of the Company’s common stock under a stock repurchase program. In October 2014, the Company’s board of directors increased the number of shares of the Company’s common stock authorized for repurchase by 3.0 million shares, bringing the total number of shares of the Company’s common stock authorized under such repurchase program from inception to 9.0 million . The stock repurchase program provided that it may be carried out at the discretion of a committee comprised of the Company’s Chief Executive Officer and Chief Financial Officer through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions. During the three months ended October 3, 2015 , approximately 1.2 million shares were repurchased at an average cost of $41.44 per share for a total repurchase cost of $48.5 million . During the nine months ended October 3, 2015 , approximately 3.5 million shares were repurchased at an average cost of $36.71 per share for a total repurchase cost of $130.2 million . During the three and nine months ended September 27, 2014 , approximately 2.4 million shares were repurchased at an average cost of $21.95 per share for a total repurchase cost of $52.7 million . As of October 3, 2015 , all of the authorized 9.0 million shares had been repurchased under this program. In September 2015, the Board authorized a new stock repurchase program, whereby the Company may purchase up to 5.0 million shares of its common stock over a period of up to three years. As of October 3, 2015 , 5.0 million shares remained authorized for repurchase under this program. The stock repurchase program may be carried out at the discretion of a committee comprised of the Company’s Chief Executive Officer and Chief Financial Officer through open market purchases, one or more Rule 10b5-1 trading plans, block trades and in privately negotiated transactions.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation The number and weighted-average exercise price of options issued and outstanding under all of the Company’s stock option plans are as follows (in thousands, except for exercise prices): Nine Months Ended Shares Average Exercise Price Options outstanding, beginning of period 9,956 $ 23.59 Granted 781 $ 35.28 Canceled (196 ) $ 24.51 Exercised (1,252 ) $ 19.92 Options outstanding, end of period 9,289 $ 25.04 Options exercisable, end of period 5,524 $ 24.62 Options available for grant, end of period 5,188 As of October 3, 2015 , approximately 2.6 million options were outstanding with exercise prices ranging from $15.40 to $38.76 per share that were subject to acceleration of vesting, immediate exercise without payment of the applicable option price and immediate share issuance under the Chief Executive Officer's prior employment agreement if he was terminated by the Company, if he terminated his employment for good reason under certain circumstances or if there was a change in control of the Company. This employment agreement was restated by a new employment agreement, dated November 4, 2015, that eliminated certain of the foregoing provisions. Please see Note 16 below. 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: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Risk-free interest rate 1.5% to 1.8% 1.6% to 1.8% 1.3% to 1.9% 1.4% to 1.8% Expected term (in years) 5.5 5.1 5.5 5.1 Estimated volatility 32.3% to 35.6% 31.7% to 32.1% 32.0% to 37.4% 31.7% to 33.1% Expected dividends 0% 0% 0% 0% Weighted-average fair value of options granted $14.09 $6.79 $11.82 $7.85 The total share-based compensation expense for the three and nine months ended October 3, 2015 was $2.7 million and $8.1 million , respectively. The total share-based compensation expense for the three and nine months ended September 27, 2014 was $2.6 million and $7.8 million , respectively. The aggregate intrinsic value of options is calculated as the positive difference, if any, 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 aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of October 3, 2015 was $52.5 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 October 3, 2015 was $22.5 million . The aggregate intrinsic value of options exercised during the three and nine months ended October 3, 2015 was $10.0 million and $21.6 million , respectively. The unrecognized share-based compensation expense related to unvested options granted after January 1, 2006 was $23.3 million as of October 3, 2015 . 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 October 3, 2015 was 5.8 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 October 3, 2015 was 4.2 years.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 03, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Leases The Company leases certain facilities in North America, Europe and Asia under operating lease agreements expiring at various dates through December 2020 . Certain facility 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 has received leasehold improvement incentives in connection with certain leased 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 October 3, 2015 and January 3, 2015 , rent expense accrued in excess of the amount paid aggregated $0.2 million and $0.4 million , respectively, which is classified as other liabilities in the accompanying condensed consolidated balance sheets. In addition, the Company leases automobiles in Europe that are classified as operating leases and expire at various dates through October 2019 . The majority of these leases are non-cancellable. The Company also has outstanding capital leases for office equipment and computer equipment, all of which are non-cancellable. Future minimum lease payments under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands) (including interest): As of October 3, 2015 Operating Leases Capital Leases Total 2015 (balance of year) $ 1,058 $ 4 $ 1,062 2016 3,314 88 3,402 2017 2,930 82 3,012 2018 2,714 8 2,722 2019 2,291 8 2,299 Thereafter 1,033 3 1,036 Total $ 13,340 $ 193 $ 13,533 Rental expense related to operating leases was $1.2 million and $4.0 million for the three and nine months ended October 3, 2015 , respectively, and $1.6 million and $4.8 million for the three and nine months ended September 27, 2014 , respectively. The Company leases office equipment and computer equipment, which have interest rates ranging from 4.3% to 5.2% per year and mature on various dates from February 2017 through June 2020 . Employee Retirement Savings Plan The Company maintains a 401(k) plan, the Masimo Retirement Savings Plan (the Plan), covering 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 $0.6 million and $1.8 million to the Plan for the three and nine months ended October 3, 2015 , respectively, and $0.6 million and $1.8 million to the Plan for the three and nine months ended September 27, 2014 , respectively. Employment and Severance Agreements As of October 3, 2015 , the Company had an employment agreement with its Chief Executive Officer (CEO) that provides for an aggregate annual base salary with annual increases at the discretion of the Compensation Committee of the Company’s board of directors. The employment agreement provided for an annual bonus based on the Company’s attainment of certain objectives and goals. The agreement had an initial term of three years, with automatic daily renewal, unless either the Company or the CEO notified the other party of non-renewal of the agreement. Also, under this employment agreement, the CEO was entitled to receive certain salary, equity, tax, medical and life insurance benefits with an estimated value of approximately $80.9 million as of October 3, 2015, as well as reimbursement of certain tax withholdings and excise tax gross-up amounts collectively estimated at approximately $125.0 million as of October 3, 2015, if he was terminated by the Company, if he terminated his employment for good reason under certain circumstances or if there was a change in control of the Company. This employment agreement was restated by a new employment agreement, dated November 4, 2015, that eliminated the foregoing tax withholding reimbursement and excise tax gross-up provisions. Please see Note 16 below. As of October 3, 2015 , the Company had severance plan participation agreements with seven other executive officers. The participation agreements (the Agreements) are governed by the terms and conditions of the Company’s 2007 Severance Protection Plan (the Severance Plan), which became effective on July 19, 2007 and which was amended effective December 31, 2008. Under each of the Agreements, the applicable 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 if he 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 $85.5 million of purchase commitments as of October 3, 2015 , which are expected to be purchased within one year. These purchase commitments have been made for certain inventory items in order to secure sufficient levels of those items and to achieve better pricing. Other Contractual Commitments In the normal course of business, the Company may provide bank guarantees to support government hospital tenders in certain foreign jurisdictions. As of October 3, 2015 , the Company had approximately $0.3 million in unsecured bank guarantees. In certain circumstances, the Company also provides limited indemnification within its various customer contracts whereby the Company indemnifies the parties to whom it sells its products with respect to potential infringement of intellectual property, and against bodily injury caused by a defective Company product. It is not possible to predict the maximum potential amount of future payments under these or similar agreements, due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved. As of October 3, 2015 , the Company has not incurred any significant costs related to contractual indemnification of its customers. Concentrations of Risk The Company is exposed to credit loss for the amount of its cash deposits with financial institutions in excess of federally insured limits. The Company invests its excess cash deposits in U.S. Treasury bills and money market accounts with major financial institutions. As of October 3, 2015 , the Company had $84.9 million of bank balances, of which $2.3 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries’ deposit insurance organizations. As of October 3, 2015 , the Company had $1.2 million in money market funds and $17.5 million of bank time deposits 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 could be modified to use different components. 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 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. During the three and nine months ended October 3, 2015 , revenue from the sale of the Company’s products to U.S. hospitals that are members of GPOs amounted to $81.0 million and $251.9 million , respectively. During the three and nine months ended September 27, 2014 , revenue from the sale of the Company’s products to U.S. hospitals that are members of GPOs amounted to $75.2 million and $228.9 million , respectively. As of October 3, 2015 , three different just-in-time distributors represented 9% , 8% and 5% of the Company’s accounts receivable balance, respectively. As of January 3, 2015 , three different just-in-time distributors represented 9% , 6% and 5% of the Company’s accounts receivable balance, respectively. For the three months ended October 3, 2015 , the Company had sales through two just-in-time distributors, which each represented 15% and 12% of total revenue, respectively. For the three months ended September 27, 2014 , the Company had sales through two just-in-time distributors, which each represented 14% and 12% of total revenue, respectively. For the nine months ended October 3, 2015 , the Company had sales through two just-in-time distributors, which each represented 15% and 12% of total revenue, respectively. For the nine months ended September 27, 2014 , the Company also had sales through two just-in-time distributors, which each represented 14% and 11% of total revenue, respectively. For the three and nine months ended October 3, 2015 , the just-in-time distributors took and fulfilled orders from the Company’s direct customers, many of whom have signed long-term sensor agreements with the Company. For the three months ended October 3, 2015 and September 27, 2014 , the Company recorded $8.0 million and $7.0 million , respectively, in royalty revenues from Medtronic pursuant to the original settlement agreement and amendments. For the nine months ended October 3, 2015 and September 27, 2014 , the Company recorded $23.3 million and $22.0 million , respectively, in royalty revenues from Medtronic pursuant to the original settlement agreement and amendments. In exchange for these royalty payments, the Company has provided Medtronic the ability to ship its patent infringing product with a covenant not to sue Medtronic as long as Medtronic abides by the terms of the agreement. The current royalty rate is 7.75% and the amended agreement can be terminated by Medtronic upon 60 days written notice. Litigation On February 3, 2009, the Company filed a patent infringement suit in the U.S. District Court for the District of Delaware against Philips Electronics North America Corporation and Philips Medizin Systeme Böblingen GmbH (collectively, Philips) related to Philips’ FAST pulse oximetry technology and certain of Philips’ patient monitors. On June 15, 2009, Philips 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 of 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. In addition, the Company asserted additional patents in 2012, and the Court ordered that these patents and some of the originally asserted patents be tried in a second phase. On May 23, 2014, Philips filed a motion for leave to amend its answer and counterclaims to allege inequitable conduct. The Court granted Philips’ motion for leave to amend. A jury trial commenced on September 15, 2014 with respect to two of the Company’s patents and one of Philips’ patents. On October 1, 2014, the jury determined that both of the Company’s patents were valid and that the damages amount for Philips’ infringement was $466.8 million . The jury also determined that the Company did not infringe the Philips patent. The Court held a bench trial on an inequitable conduct defense raised by Philips and heard oral arguments on the post-trial motions. The Court denied Philips’ post-trial motions and found that Philips failed to prove inequitable conduct. The Court also denied a motion brought by the Company seeking judgment on the pleadings of Philips’ patent misuse defense. Philips has indicated that it intends to appeal the jury verdict. On September 18, 2015, the Court set a schedule for the trial related to the second phase patents and a schedule for the trial related to Philips’ antitrust counterclaims and patent misuse defense, with both trials scheduled to take place in the first quarter of 2017. The Company believes that it has good and substantial defenses to the antitrust and patent infringement claims asserted by Philips. The Company is unable to determine whether any loss will occur or to estimate the range of such potential loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. Furthermore, 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. (Shenzhen Mindray) in the U.S. District Court for the Central District of California. The complaint alleges patent infringement, breach of contract and other claims. Mindray DS USA, Inc. was dismissed from the 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 of 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. The Court granted judgment on the pleadings with leave to amend. On March 27, 2014, Shenzhen Mindray filed a third amended answer and counterclaims. On April 10, 2014, Shenzhen Mindray filed a fourth amended answer and counterclaims. On May 5, 2014, Shenzhen Mindray filed a partial motion for summary judgment of no patent infringement, which the Court denied on June 19, 2014. On May 19, 2014, Shenzhen Mindray filed a motion for judgment on the pleadings contending that Masimo International SARL (a subsidiary of the Company), not Masimo Corporation, has standing to assert its claims relating to breach of contract. The Company opposed this motion and filed a motion to add Masimo International SARL as a plaintiff. On June 26, 2014, the Court granted the Company’s motion and denied Shenzhen Mindray’s motion. The Court also vacated the case schedule. On July 7, 2014, the Company filed a second amended complaint adding Masimo International SARL as a plaintiff. On August 18, 2014, the Court adopted the Company’s proposed case schedule, setting a new trial date of December 1, 2015. On September 24, 2015, the Court set a trial date of December 8, 2015. The parties are preparing for trial. The Company believes that it has good and substantial defenses to the antitrust, patent infringement and other counterclaims asserted by Shenzhen Mindray. The Company is unable to determine whether any loss will occur or to estimate the range of such potential loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. Furthermore, there is no guarantee that the Company will prevail in this suit or receive any damages or other relief if it does prevail. On March 6, 2013, Shenzhen Mindray filed a complaint against the Company under the Anti-Unfair Competition Law of the People’s Republic of China (PRC) before the Shenzhen Municipal Intermediate People’s Court, alleging violation of PRC competition laws. On March 10, 2014, the Guangdong Higher People’s Court of PRC held that the Shenzhen Court did not have jurisdiction. On December 23, 2014, the Supreme People’s Court of PRC reversed the Guangdong Court’s ruling. Following the Supreme People’s Court’s ruling, the case was remanded to the Shenzhen Court for a ruling on the merits of Shenzhen Mindray’s claims. The Shenzhen Court held a first hearing regarding the case but has not issued any decision. Shenzhen Mindray also filed a complaint in Shenzhen Intermediate People’s Court against the Company and Shenzhen Comen Medical Instruments on February 6, 2015, alleging infringement of Chinese Patent No. 00808884.5. Additionally, a separate lawsuit was filed against Masimo Sweden AB (Masimo Sweden) on the same day and in the same court alleging infringement of Chinese Patent No. 200710305061.9. Masimo Sweden was recently served with the lawsuit. The Company believes that it has good and substantial defenses to Shenzhen Mindray’s claims, but there is no guarantee that the Company will prevail in these suits. The Company is unable to determine whether any loss will occur or to estimate the range of such potential loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. On December 10, 2013, the Company filed suit against Mindray DS USA, Inc. (Mindray USA), Shenzhen Mindray and Mindray Medical International Limited in the Superior Court of New Jersey. The complaint alleges breach of contract and related claims. In January 2014, Mindray USA removed the case to the U.S. District Court for the District of New Jersey. In February 2014, the Company filed a motion to remand the action to the Superior Court of New Jersey. In May 2014, Mindray USA filed an answer and counterclaims in the U.S. District Court asserting patent infringement and federal antitrust counterclaims. On January 7, 2015, the U.S. District Court remanded the action to the Superior Court of New Jersey. On January 22, 2015, Mindray USA filed an answer and counterclaims in the Superior Court of New Jersey asserting patent infringement and federal antitrust counterclaims, and again removed the case to the U.S. District Court for the District of New Jersey. On January 29, 2015, Mindray USA, Shenzhen Mindray and Mindray Medical International, Limited filed separate motions to dismiss the action, each of which is currently pending before the U.S. District Court. On February 23, 2015, the Company filed a motion to remand the case to the Superior Court of New Jersey, which is currently pending before the U.S. District Court. On September 1, 2015, the U.S. District Court granted-in-part the Company’s motion, remanding the Company’s state law claims and Mindray USA’s antitrust counterclaims to the Superior Court of New Jersey. The U.S. District Court also severed the parties’ patent law counterclaims and stayed those claims pending resolution of the action in the Central District of California. Mindray USA appealed the U.S. District Court’s remand order to the Court of Appeals for the Federal Circuit. On October 13, 2015, the Company filed a motion to dismiss Mindray USA’s appeal. The Company’s motion to dismiss and Mindray USA’s appeal remain pending before the Federal Circuit. On September 16, 2015, Shenzhen Mindray again removed the case to the U.S. District Court for the District of New Jersey. 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 certain of the Company’s directors and certain executive officers as defendants and the Company as the nominal defendant. The lawsuit alleged 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 sought unspecified monetary 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. On May 5, 2015, the plaintiff and the defendants entered into a Stipulation and Agreement of Settlement providing for an agreement to settle the lawsuit, which was approved by the Court on June 17, 2015. Pursuant to the Stipulation and Agreement of Settlement, the Company agreed to implement certain corporate governance measures and changes, and to ensure that such measures and changes remain in effect for at least 5 years. The Company is not required to pay, and will not receive, any monetary damages under the settlement. In April 2011, the Company was informed by the United States Attorney’s Office for the Central District of California, Civil Division, that a qui tam complaint had been filed against the Company in the U.S. District Court for the Central District of California by three of the Company’s former physician office sales representatives. The qui tam complaint alleged, among other things, that the Company’s noninvasive hemoglobin products failed to meet their accuracy specifications, and that the Company misled the U.S. Food and Drug Administration (FDA) and customers regarding the accuracy of the products. In November 2011, the United States declined to intervene in the case, and in October 2013, the District Court granted summary judgment in favor of the Company. The former sales representatives have appealed the District Court’s decision. In September 2011, two of the same former sales representatives filed employment-related claims against the Company in arbitration also stemming from their allegations regarding the Company’s noninvasive hemoglobin products. On January 16, 2014, the Company was notified that the arbitrator awarded the plaintiffs approximately $5.4 million in damages, which the Company accrued in fiscal 2013. In addition, the Company’s insurance carrier notified the Company that it believed certain defense costs related to the arbitration may no longer be reimbursable in view of the arbitration decision. As a result, the Company accrued a liability of $2.6 million in fiscal 2013 for the costs estimated to have been paid by the insurance carrier. The Company challenged the arbitration award in the U.S. District Court for the Central District of California, and on April 3, 2014, the District Court vacated the award. Accordingly, the Company reversed the $8.0 million charge in the quarter ended March 29, 2014. The former sales representatives have appealed the District Court’s decision. The Company is unable to predict the final outcome of the qui tam and employment matters. A reversal of the District Court’s decision in either matter could have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company is unable to determine whether any loss will occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. In the third quarter of 2013, the Company was notified that the FDA and the United States Attorney’s Office for the Central District of California, Criminal Division (USAO), were investigating the allegations regarding its noninvasive hemoglobin products. In the second quarter of 2014, the Company received grand jury subpoenas requesting documents pertaining to, among other things, the testing, marketing and sales of its Pronto ® and Pronto-7 ® products. On May 7, 2015, the Company received a letter from the USAO stating that, at this time, the USAO has decided not to initiate any criminal charges against the Company or any of its current or former employees in connection with the investigation. The USAO reserved the right to revisit its decision at any time. On January 2, 2014, a putative class action complaint was filed against the Company in the U.S. District Court for the Central District of California by Physicians Healthsource, Inc. The complaint alleges that the Company 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 District Court finds the alleged violations to be knowing, plus interest, costs and injunctive relief. On April 14, 2014, the Company filed a motion to stay the case pending a decision on a related petition filed by the Company with the Federal Communications Commission (FCC). On May 22, 2014, the District Court granted the motion and stayed the case pending a ruling by the FCC on the petition. On October 30, 2014, the FCC granted some of the relief and denied some of the relief requested in the petition. Both parties appealed the FCC’s decision on the petition. On November 25, 2014, the District Court granted the parties’ joint request that the stay remain in place pending a decision on the appeal. The Company believes it has good and substantial defenses to the claims, but there is no guarantee that the Company will prevail. The Company is unable to determine whether any loss will occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. On January 31, 2014, an amended putative class action complaint was filed against the Company in the U.S. District Court for 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. On April 21, 2014, a further amended complaint was filed adding a third participant. The complaint alleges product liability and negligence claims in connection with pulse oximeters the Company modified and provided at the request of 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 and injunctive and other relief. On January 30, 2015, the Company filed a motion for summary judgment. On August 13, 2015, the Court granted summary judgment in favor of the Company, rejecting the plaintiffs’ claims. The plaintiffs have appealed the Court’s decision. The Company is unable to determine whether any loss will occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. On October 21, 2015, Medtronic plc (Medtronic) filed three separate inter partes review petitions (the Petitions) with the Patent Trial and Appeal Board (the PTAB) of the U.S. Patent and Trademark Office (PTO), challenging several of the claims of U.S. Patent Nos. 7,496,393 (the ’393 Patent), titled “Signal processing apparatus,” and 8,560,034 (the ’034 Patent), also titled “Signal processing apparatus,” which are owned by the Company. A patentability trial will commence if the PTAB decides to institute the inter partes review proceedings after considering the Petitions and the Company’s preliminary response to the Petitions. Medtronic has the right to stop paying royalties to the Company, subject to certain notice requirements, under the existing settlement agreement and has informed the Company that it will terminate the settlement covenants and stop paying royalties when it feels it has reached an appropriate point in the process. The Company intends to oppose the requests to institute proceedings relating to the Petitions, including on the basis that Medtronic is estopped from challenging the patentability of the ’034 patent, because the claims were previously the subject of an interference proceeding between the Company and Medtronic’s subsidiary, Covidien plc, in which the PTO awarded the claimed subject matter to the Company. If the PTAB institutes the proceedings, the Company intends to defend the ’393 Patent and the ’034 Patent. The Company believes it has good and substantial responses to the Petitions, but there is no guarantee that the Company will prevail. The Company is unable to determine whether any loss will occur or to estimate the range of such loss; therefore, no amount of loss has been accrued by the Company as of the date of filing of this Quarterly Report on Form 10-Q. From time to time, the Company may be involved in other litigation and investigations relating to claims and matters 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 Enterpr

Segment Information and Enterprise Reporting	9 Months Ended
	Oct. 03, 2015
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 income or expense, such as depreciation and amortization, operating income or net income including noncontrolling interest. 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 revenues based upon the geographic area to which the product was shipped (in thousands, except percentages): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Geographic area by destination North and South America $ 105,217 72.8 % $ 99,563 72.6 % $ 327,221 74.4 % $ 287,678 71.4 % Europe, Middle East and Africa 25,729 17.8 23,417 17.1 74,125 16.9 73,146 18.2 Asia and Australia 13,657 9.4 14,162 10.3 38,226 8.7 42,044 10.4 Total product revenue $ 144,603 100.0 % $ 137,142 100.0 % $ 439,572 100.0 % $ 402,868 100.0 % United States $ 101,471 $ 95,289 $ 314,983 $ 274,924 The Company’s consolidated long-lived assets and net assets by geographic area are: October 3, 2015 January 3, 2015 Long-lived assets by geographic area United States $ 212,833 94.9 % $ 185,461 94.0 % International 11,510 5.1 % 11,748 6.0 % Total $ 224,343 100.0 % $ 197,209 100.0 % October 3, 2015 January 3, 2015 Net assets by geographic area United States $ 118,795 44.3 % $ 144,541 47.0 % International 149,439 55.7 % 163,200 53.0 % Total $ 268,234 100.0 % $ 307,741 100.0 %

Income Taxes

Income Taxes	9 Months Ended
	Oct. 03, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company has provided for income taxes in fiscal 2015 interim periods based on the estimated effective income tax rate for the complete fiscal year. The income tax provision is computed on the estimated pretax income of the consolidated entities located within each taxing jurisdiction based on legislation enacted as of the balance sheet date. Deferred tax assets and liabilities are determined based on the future tax consequences associated with temporary differences between income and expenses reported for accounting and tax purposes. A valuation allowance for deferred tax assets is recorded to the extent that the Company cannot determine that the ultimate realization of the net deferred tax assets is more likely than not. Realization of deferred tax assets is principally dependent upon the achievement of future taxable income, the estimation of which requires significant judgment by the Company’s management. The judgment of the Company’s management regarding future profitability may change due to many factors, including future market conditions and the Company’s ability to successfully execute its business plans or tax planning strategies. These changes, if any, may require material adjustments to these deferred tax asset balances. A valuation allowance has been previously recorded against all of the deferred tax assets of Cercacor. On a quarterly basis, Cercacor’s management reassesses the need for these valuation allowances based on operating results and its assessment of the likelihood of future taxable income and developments in the relevant tax jurisdictions. Cercacor continues to maintain a full valuation allowance as of October 3, 2015 against its net deferred tax assets. As of October 3, 2015 , the liability for income taxes associated with uncertain tax positions was approximately $8.7 million . If fully recognized, approximately $7.1 million (net of federal benefit on state taxes) would impact the Company’s effective tax rate. The remaining balance relates to timing differences. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next twelve 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 twelve months cannot currently be made. The Company conducts business in multiple jurisdictions and, as a result, one or more of the Company’s subsidiaries files income tax returns in U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters through fiscal year 2011. All material state, local and foreign income tax matters have been concluded through fiscal year 2007.

Subsequent Event (Notes)

Subsequent Event (Notes)	9 Months Ended
	Oct. 03, 2015
Subsequent Event [Line Items]
Subsequent Events [Text Block]	16. Subsequent Event On November 4, 2015, the Company entered into an Amended and Restated Employment Agreement with Joe Kiani, Masimo’s Chairman and Chief Executive Officer (Restated Employment Agreement). The Restated Employment Agreement, among other things, eliminates the tax gross-up payments, “single trigger” change in control payments and certain survival provisions, as well as phases out the fixed annual stock option grants guaranteed to Mr. Kiani, under his previous employment agreement. Pursuant to the terms of the Restated Employment Agreement, upon a “Qualifying Termination” (as defined in the Restated Employment Agreement), Mr. Kiani will be entitled to receive a cash severance benefit equal to two times the sum of his then-current base salary and the average annual bonus paid to Mr. Kiani during the immediately preceding three years. In addition, upon a Qualifying Termination prior to 2018, Mr. Kiani will receive 2.7 million shares of common stock (subject to adjustment for recapitalizations, stock splits, stock dividends and the like) related to the vesting of certain restricted share units (RSUs) to be granted to Mr. Kiani in connection with the Restated Employment Agreement, and an additional cash payment of $35.0 million related to a Non-Competition and Confidentiality Agreement between Mr. Kiani and the Company (collectively, the Special Payment). For any Qualifying Termination occurring on or after January 1, 2018, the number of shares to be issued to Mr. Kiani pursuant to the restricted share units and the cash payment will each be reduced by 10% of the original amount each year so that after December 31, 2026, no Special Payment will be due. As of November 4, 2015, the estimated fair value of the Special Payment that would be recognized in the Company’s consolidated financial statements upon the occurrence of a Qualifying Termination, including the fair value of the common shares that would be issuable under the RSUs, approximated $146.9 million .

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, including normal recurring accruals, necessary to present fairly the Company’s condensed consolidated financial statements. The condensed consolidated balance sheet as of January 3, 2015 was derived from the Company’s audited consolidated financial statements at that date. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2015 (fiscal year 2014), filed with the SEC on February 17, 2015 . The results for the three and nine months ended October 3, 2015 are not necessarily indicative of the results to be expected for the fiscal year ending January 2, 2016 (fiscal year 2015) or for any other interim period or for any future year.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries and the variable interest entity (VIE) of which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. In accordance with GAAP, current authoritative guidance is applied when determining whether an entity is subject to consolidation.
Fiscal Periods	Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 fiscal year, a 52 week fiscal 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 Company’s last 53 week fiscal year was fiscal year 2014. Fiscal year 2015 is a 52 week fiscal year. All references to years in these notes to condensed 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 the determination of accounts receivable allowances, inventory reserves, warranty reserves, rebate accruals, 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, litigation costs and related accruals. Actual results could differ from such estimates.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain amounts in the condensed consolidated financial statements for prior periods have been reclassified to conform to the 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 the 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 three and nine months ended October 3, 2015 . The Company carries cash and cash equivalents at cost, which approximates fair value. As of October 3, 2015 and January 3, 2015 , the Company did not have any short-term investments.
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 generally 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.
Inventory, Policy [Policy Text Block]	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 costs. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory items that have a market price less than carrying value.
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Buildings 39 years Building and land improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Land is not depreciated and construction-in-progress is not depreciated until placed in service. 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 nine months ended October 3, 2015 and September 27, 2014 , depreciation and amortization expense of property and equipment was $8.6 million and $6.8 million , respectively.
Intangible Assets	Intangible Assets The Company’s policy is to renew its patents and trademarks. Total renewal costs for patents and trademarks were $0.2 million for both the three months ended October 3, 2015 and September 27, 2014, respectively. Total renewal costs for patents and trademarks were $0.5 million for each of the nine months ended October 3, 2015 and September 27, 2014 . As of October 3, 2015 , the weighted-average number of years until the next renewal was one year for patents and five years for trademarks. Costs to renew patents and trademarks are capitalized and amortized over the remaining useful life of the intangible asset. 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.
Impairment of Goodwill and Intangible assets	Impairment of Goodwill, Intangible Assets and Other Long-Lived 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 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 three and nine months ended October 3, 2015 or September 27, 2014 .
Revenue Recognition	Revenue Recognition and Deferred Revenue The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue from the sale of products or services 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. In the case of the license or sale of software that does not function together with hardware components to provide the essential functionality of the hardware, revenue is recognized pursuant to the software revenue recognition guidance. The Company derives the majority of its revenue from four primary sources: (i) direct sales under long-term sensor purchase agreements with end-user hospitals where the Company provides up-front monitoring equipment at no up-front charge in exchange for a multi-year sensor purchase commitment, (ii) other direct sales of noninvasive monitoring solutions to end-user hospitals, emergency medical response organizations and other direct customers; (iii) sales of noninvasive monitoring solutions to distributors who then typically resell to end-user hospitals, emergency medical response organizations and other direct customers, many of which have long-term sensor purchase agreements with the Company; and (iv) sales of integrated circuit boards and consumables to original equipment manufacturer (OEM) customers who incorporate the Company’s circuit boards and embedded software technology into their multi-parameter monitoring devices and resell the consumables. The Company enters into agreements to sell its noninvasive monitoring solutions and services, sometimes as part of 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 and analysis is sometimes required to determine the appropriate accounting, including: (i) how the arrangement consideration should be allocated among the deliverables when multiple deliverables exist, (ii) when to recognize revenue on the deliverables, and (iii) 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. In the case of multiple deliverable arrangements, the authoritative guidance provides 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 (VSOE), (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE 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. 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 (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 containing embedded Masimo SET ® or rainbow ® SET software, the Company has determined that the hardware and software components function together to deliver the equipment’s essential functionality and, therefore, represent a single deliverable. However, software deliverables, such as rainbow ® parameter software, which do not function together with hardware components to provide the equipment’s essential functionality, are accounted for under 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 revenue recognition accounting guidance for arrangements with multiple deliverables. Sales under long-term sensor purchase contracts are generally structured such that the Company agrees to provide at no up-front charge certain monitoring equipment, software, installation, training and/or warranty support in exchange for the hospital’s agreement to purchase sensors over the term of the agreement, which generally ranges from three to seven years. 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. The Company recognizes revenue for these delivered elements on a pro-rata basis when installation and training are complete, as the sensors are delivered under the long-term purchase commitment. 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. Many of the Company’s distributors purchase sensor products which they then resell to end-user hospitals that are typically fulfilling their purchase obligations to the Company under such end-user hospital’s long-term sensor purchase commitments. Upon shipment to the distributor, revenue is deferred until the distributor ships the product to the Company’s end-user customers based on an estimate of the inventory held by these distributors at the end of the accounting period. The Company also earns revenue from the sale of integrated circuit boards and other products, as well as from rainbow ® parameter software licenses, to OEMs under various agreements. Revenue from the sale of products to the OEMs is generally recognized at the time of shipment. Revenue related to software licenses to OEMs is generally recognized upon shipment of the OEM’s product to its customers, as represented to the Company by the OEM. The Company also provides certain customers with the ability to purchase sensors under rebate programs. Under these programs, the customers 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 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. The Company’s royalty revenue arises from one agreement with Medtronic plc (Medtronic, formerly Covidien), and is due and payable quarterly based on U.S. sales of Medtronic’s infringing products. An estimate of these royalty revenues is recorded quarterly in the period earned based on the prior quarter’s historical results, adjusted for any new information or trends known to management at the time of estimation. This estimated revenue is adjusted prospectively when the Company receives the royalty report from Medtronic, approximately 60 days after the end of the previous quarter.
Product Warranty	Product Warranty The Company generally provides a warranty against defects in material and workmanship for a period ranging from six to fourteen months, depending on the product type. In the case of long-term sales agreements, the Company typically warrants the products for the term of the agreement, which generally 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): Nine Months Ended October 3, September 27, Warranty accrual, beginning of period $ 1,416 $ 1,161 Accrual for warranties issued 679 684 Changes to pre-existing warranties (including changes in estimates) (52 ) 25 Settlements made (828 ) (812 ) Warranty accrual, end of period $ 1,215 $ 1,058
Legal Matters and Contingencies [Text Block]	Litigation Costs and Contingencies The Company records a charge equal to at least the minimum estimated liability for a loss contingency or litigation settlement when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements, and (ii) the range of loss can be reasonably estimated. The determination of whether a loss contingency or litigation settlement is probable or reasonably possible involves a significant amount of management judgment, as does the estimation of the range of loss given the nature of contingencies. Liabilities related to litigation settlements with multiple elements are recorded based on the fair value of each element. Legal and other litigation related expenses are recognized as the services are provided. The Company records insurance and other indemnity recoveries for litigation expenses when both of the following conditions are met: (a) the recovery is probable, and (b) collectability is reasonably assured. Insurance recoveries are only recorded to the extent the litigation costs to which they relate have been incurred and recognized in the financial statements.
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 any related tax benefits that have been excluded from net income including noncontrolling interest, and reflected in Masimo Corporation stockholders’ equity. The change in accumulated other comprehensive loss was as follows (in thousands):
Net Income Per Share	Net Income Per Share Basic net income per share attributable to Masimo Corporation for the three and nine months ended October 3, 2015 and September 27, 2014 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 three and nine months ended October 3, 2015 and September 27, 2014 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 three and nine months ended October 3, 2015 , weighted options to purchase approximately 0.5 million and 0.6 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 applicable period. For the three and nine months ended September 27, 2014 , weighted options to purchase approximately 3.1 million and 1.5 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 applicable period. Based on authoritative accounting guidance, the Company adjusted its net income including noncontrolling interest by the amount of net (income) loss attributable to the noncontrolling interest for the three and nine months ended October 3, 2015 and September 27, 2014 , to determine its net income attributable to its stockholders. A reconciliation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share amounts):
New Accounting Pronouncement	Recently Issued Accounting Pronouncements In August 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-15, Interest - Imputation of Interest (Subtopic 832-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line of Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement June 18, 2015 EITF Meeting (ASU 2015-15) . ASU 2015-15 clarifies the treatment of debt issuance costs associated with line-of-credit arrangements upon the adoption of ASU 2015-03 (as discussed below). In particular, ASU 2015-15 clarifies that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. ASU 2015-15 will become effective upon the Company’s adoption of ASU 2015-03.The Company does not expect that its adoption of this standard will have a material impact on its consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, Simplifying the Measurement of Inventory (Topic 330) . The new standard provides guidance that simplifies the subsequent measurement of inventories by replacing the current lower of cost or market test with a lower of cost and net realizable value test, where net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The guidance applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. ASU-2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted, and should be applied prospectively. The Company is currently evaluating this standard but does not expect that its adoption will have a material impact on its consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). The new standard requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. ASU 2015-03 requires retrospective application and represents a change in accounting principle. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect that its adoption of this standard will have a material impact on its consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (ASU 2015-02). The amended standard applies to entities in all industries and eliminates the deferral of certain consolidation standards for entities considered to be investment companies as well as modifies the consolidation analysis performed on certain types of legal entities. ASU 2015-02 is effective for annual and interim fiscal reporting periods beginning after December 15, 2015, and may be applied retrospectively, with early application permitted. The Company is continuing to evaluate the expected impact of this standard on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue (Topic 606): Revenue from Contracts with Customer (ASU 2014-09) . The new standard provides a single, principles-based five-step model to be applied to all contracts with customers while enhancing disclosures about revenue, providing additional guidance for transactions that were not previously addressed comprehensively and improving guidance for multiple-element arrangements. ASU 2014-09 will replace most existing revenue recognition guidance under GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method upon adoption. In August 2015, the FASB issued Accounting Standards Update No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which amended ASU 2014-09, providing for a one year deferral period for the implementation of ASU 2014-09. ASU 2014-09 will now be effective for annual and interim periods beginning on or after December 15, 2017. The Company is continuing to evaluate the expected impact of this standard on its consolidated financial statements.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Oct. 03, 2015
Accounting Policies [Abstract]
Fair Value Hierarchy for Financial Assets	The following tables represent the Company’s financial assets (in thousands), measured at fair value on a recurring basis: October 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 84,871 $ — $ — $ 84,871 $ 84,871 Level 1: Bank Time Deposits 17,500 — — 17,500 17,500 U.S. Treasuries — — — — — Money Market Funds 1,210 — — 1,210 1,210 Subtotal 18,710 — — 18,710 18,710 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 103,581 $ — $ — $ 103,581 $ 103,581 January 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 92,888 $ — $ — $ 92,888 $ 92,888 Level 1: Bank Time Deposits 40,500 — — 40,500 40,500 U.S. Treasuries — — — — — Money Market Funds 1,065 — — 1,065 1,065 Subtotal 41,565 — — 41,565 41,565 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 134,453 $ — $ — $ 134,453 $ 134,453 January 3, 2015 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 92,888 $ — $ — $ 92,888 $ 92,888 Level 1: Bank Time Deposits 40,500 — — 40,500 40,500 U.S. Treasuries — — — — — Money Market Funds 1,065 — — 1,065 1,065 Subtotal 41,565 — — 41,565 41,565 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 134,453 $ — $ — $ 134,453 $ 134,453
Changes in Product Warranty Accrual	Changes in the product warranty accrual were as follows (in thousands): Nine Months Ended October 3, September 27, Warranty accrual, beginning of period $ 1,416 $ 1,161 Accrual for warranties issued 679 684 Changes to pre-existing warranties (including changes in estimates) (52 ) 25 Settlements made (828 ) (812 ) Warranty accrual, end of period $ 1,215 $ 1,058
Schedule of Change in Accumulated Other Comprehensive Income	The change in accumulated other comprehensive loss was as follows (in thousands): Nine Months Ended Accumulated other comprehensive loss, beginning of period $ (2,093 ) Foreign currency translation adjustments (2,246 ) Accumulated other comprehensive loss, end of period $ (4,339 )
Reconciliation of Basic and Diluted Net Income Per Share	reconciliation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Net income attributable to Masimo Corporation stockholders: Net income including noncontrolling interest $ 17,929 $ 16,134 $ 56,447 $ 52,577 Net loss (income) attributable to the noncontrolling interest 1,396 (1,271 ) 2,752 (1,280 ) Net income attributable to Masimo Corporation stockholders $ 19,325 $ 14,863 $ 59,199 $ 51,297 Basic net income per share attributable to Masimo Corporation stockholders: Net income attributable to Masimo Corporation stockholders $ 19,325 $ 14,863 $ 59,199 $ 51,297 Weighted-average shares outstanding - basic 50,974 53,988 51,653 55,521 Basic net income per share attributable to Masimo Corporation stockholders $ 0.38 $ 0.28 $ 1.15 $ 0.92 Diluted net income per share attributable to Masimo Corporation stockholders: Weighted-average shares outstanding - basic 50,974 53,988 51,653 55,521 Diluted share equivalent: stock options 2,712 630 2,293 860 Weighted-average shares outstanding - diluted 53,686 54,618 53,946 56,381 Diluted net income per share attributable to Masimo Corporation stockholders $ 0.36 $ 0.27 $ 1.10 $ 0.91
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Supplemental cash flow information includes the following (in thousands): Nine Months Ended October 3, September 27, Cash paid during the year for: Interest (net of amounts capitalized) $ 1,548 $ 222 Income taxes 29,854 15,110 Noncash investing and financing activities: Assets acquired under capital leases $ 36 $ — Unpaid purchases of property, plant and equipment 7,093 3,330 Unsettled common stock proceeds — 3,196

Variable Interest Entity (VIE)

Variable Interest Entity (VIE) (Tables)	9 Months Ended
	Oct. 03, 2015
Variable Interest Entity [Abstract]
Changes in Noncontrolling Interest for Cercacor	Nine Months Ended Noncontrolling interest, beginning of period $ 1,742 Increase in additional paid-in capital of noncontrolling interest 9 Net loss attributable to noncontrolling interest 2,752 Noncontrolling interest, end of period $ (1,001 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 03, 2015
Inventory Disclosure [Abstract]
Components of Inventory	Inventories consist of the following (in thousands): October 3, January 3, Raw materials $ 32,831 $ 33,056 Work-in-process 4,566 6,020 Finished goods 35,914 30,642 Total inventories $ 73,311 $ 69,718

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Oct. 03, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets [Table Text Block]	October 3, January 3, Royalties receivable $ 7,000 $ 7,200 Prepaid expenses 10,361 9,816 Employee loans and advances 320 385 Other current assets 4,029 4,070 Total other current assets $ 21,710 $ 21,471

Property and Equipment Proper28

Property and Equipment Property and Equipment (Tables)	9 Months Ended
	Oct. 03, 2015
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Buildings 39 years Building and land improvements 7 to 10 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 years Vehicles 5 years Tooling 3 years Computer equipment 2 to 6 years Furniture and office equipment 2 to 6 years Demonstration units 3 years Property and equipment, net, consists of the following (in thousands): October 3, January 3, Machinery and equipment $ 42,305 $ 38,588 Building and improvements 72,738 30,678 Land 23,737 22,894 Computer equipment 14,829 13,035 Tooling 13,178 12,317 Leasehold improvements 7,711 9,912 Furniture and office equipment 8,713 4,864 Demonstration units 979 972 Vehicles 45 45 Construction-in-progress 6,937 25,731 Total cost 191,172 159,036 Accumulated depreciation and amortization (62,603 ) (57,084 ) Property and equipment, net $ 128,569 $ 101,952

Intangible Assets Intangible 29

Intangible Assets Intangible Assets (Tables)	9 Months Ended
	Oct. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets, net, consist of the following (in thousands): October 3, January 3, Patents $ 21,606 $ 20,459 Customer relationships 7,669 7,669 Acquired technology 5,580 5,580 Trademarks 3,867 3,562 Capitalized software development costs 2,427 2,066 Other 2,534 1,450 Total cost 43,683 40,786 Accumulated amortization (15,800 ) (13,015 ) Intangible assets, net $ 27,883 $ 27,771
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	timated amortization expense for future fiscal years is as follows (in thousands): Fiscal year Amount 2015 (balance of year) $ 3,596 2016 3,364 2017 3,156 2018 2,592 2019 2,458 Thereafter 12,717 Total $ 27,883

Long-term debt Debt disclosure

Long-term debt Debt disclosure (Tables)	9 Months Ended
	Oct. 03, 2015
Debt Instrument [Line Items]
Schedule of Debt [Table Text Block]	October 3, January 3, Revolving line of credit $ 190,000 $ 125,000 Long term portion of capital lease obligations acquisition 100 145 Total long term debt $ 190,100 $ 125,145

Share-Based Compensation (Table

Share-Based Compensation (Tables)	9 Months Ended
	Oct. 03, 2015
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	Share-Based Compensation The number and weighted-average exercise price of options issued and outstanding under all of the Company’s stock option plans are as follows (in thousands, except for exercise prices): Nine Months Ended Shares Average Exercise Price Options outstanding, beginning of period 9,956 $ 23.59 Granted 781 $ 35.28 Canceled (196 ) $ 24.51 Exercised (1,252 ) $ 19.92 Options outstanding, end of period 9,289 $ 25.04 Options exercisable, end of period 5,524 $ 24.62 Options available for grant, end of period 5,188
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: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Risk-free interest rate 1.5% to 1.8% 1.6% to 1.8% 1.3% to 1.9% 1.4% to 1.8% Expected term (in years) 5.5 5.1 5.5 5.1 Estimated volatility 32.3% to 35.6% 31.7% to 32.1% 32.0% to 37.4% 31.7% to 33.1% Expected dividends 0% 0% 0% 0% Weighted-average fair value of options granted $14.09 $6.79 $11.82 $7.85

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 03, 2015
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Operating and Capital Leases	Future minimum lease payments under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands) (including interest): As of October 3, 2015 Operating Leases Capital Leases Total 2015 (balance of year) $ 1,058 $ 4 $ 1,062 2016 3,314 88 3,402 2017 2,930 82 3,012 2018 2,714 8 2,722 2019 2,291 8 2,299 Thereafter 1,033 3 1,036 Total $ 13,340 $ 193 $ 13,533

Segment Information and Enter33

Segment Information and Enterprise Reporting (Tables)	9 Months Ended
	Oct. 03, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets by Geographic Areas [Table Text Block]	The Company’s consolidated long-lived assets and net assets by geographic area are: October 3, 2015 January 3, 2015 Long-lived assets by geographic area United States $ 212,833 94.9 % $ 185,461 94.0 % International 11,510 5.1 % 11,748 6.0 % Total $ 224,343 100.0 % $ 197,209 100.0 % October 3, 2015 January 3, 2015 Net assets by geographic area United States $ 118,795 44.3 % $ 144,541 47.0 % International 149,439 55.7 % 163,200 53.0 % Total $ 268,234 100.0 % $ 307,741 100.0 %
Analysis of Product Revenues Based upon Geographic Area Shipped	The following schedule presents an analysis of the Company’s product revenues based upon the geographic area to which the product was shipped (in thousands, except percentages): Three Months Ended Nine Months Ended October 3, 2015 September 27, 2014 October 3, 2015 September 27, 2014 Geographic area by destination North and South America $ 105,217 72.8 % $ 99,563 72.6 % $ 327,221 74.4 % $ 287,678 71.4 % Europe, Middle East and Africa 25,729 17.8 23,417 17.1 74,125 16.9 73,146 18.2 Asia and Australia 13,657 9.4 14,162 10.3 38,226 8.7 42,044 10.4 Total product revenue $ 144,603 100.0 % $ 137,142 100.0 % $ 439,572 100.0 % $ 402,868 100.0 % United States $ 101,471 $ 95,289 $ 314,983 $ 274,924

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) - Recurring - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	$ 103,581	$ 134,453
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	103,581	134,453
Cash and Cash Equivalents	103,581	134,453
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	84,871	92,888
Gross Unrealized Gains		0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	84,871	92,888
Cash and Cash Equivalents	84,871	92,888
Level 1:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	18,710	41,565
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	18,710	41,565
Cash and Cash Equivalents	18,710	41,565
Level 1: | Bank Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	17,500	40,500
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	17,500	40,500
Cash and Cash Equivalents	17,500	40,500
Level 1: | U.S. Treasuries
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	0	0
Cash and Cash Equivalents	0	0
Level 1: | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	1,210	1,065
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	1,210	1,065
Cash and Cash Equivalents	1,210	1,065
Level 2:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	0	0
Cash and Cash Equivalents	0	0
Level 3:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	0	0
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	0	0
Cash and Cash Equivalents	$ 0	$ 0

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2015USD ($)shares	Sep. 27, 2014USD ($)shares	Oct. 03, 2015USD ($)segmentshares	Sep. 27, 2014USD ($)shares
Summary Of Significant Accounting Policies [Line Items]
Current Fiscal Year End Date			--01-02
Number of Sources of Product Revenue | segment			4
Interest Paid, Net			$ 1,548,000	$ 222,000
Depreciation			8,600,000	6,800,000
Impairment of goodwill, intangible assets and other long-lived assets	$ 0	$ 0	$ 0	$ 0
Number of days royalty revenue is adjusted subsequent to quarter end			60 days
Warranty period, minimum, long-term sales agreement			3 years
Warranty period, maximum, long-term sales agreement			7 years
Options to purchase of shares of common stock | shares	0.5	3.1	0.6	1.5
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block]			Impairment of Goodwill, Intangible Assets and Other Long-Lived 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 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 three and nine months ended October 3, 2015 or September 27, 2014 .
Income Taxes Paid			$ 29,854,000	$ 15,110,000
Capital Lease Obligations Incurred			36,000	0
Capital Expenditures Incurred but Not yet Paid			7,093,000	3,330,000
Stock repurchased, unsettled at period end			0	3,196,000
Patents
Summary Of Significant Accounting Policies [Line Items]
Finite-Lived Intangible Assets, Cost Incurred to Renew or Extend	$ 200,000	$ 200,000	$ 500,000	$ 500,000
Weighted average number of years until the next renewal			1 year
Trademarks
Summary Of Significant Accounting Policies [Line Items]
Weighted average number of years until the next renewal			5 years
Minimum
Summary Of Significant Accounting Policies [Line Items]
Warranty period for defects in material and workmanship			6 months
Maximum
Summary Of Significant Accounting Policies [Line Items]
Warranty period for defects in material and workmanship			14 months
Land, Buildings and Improvements [Member] | Minimum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			7 years
Land, Buildings and Improvements [Member] | Maximum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			10 years
Building [Member]
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			39 years
Computer equipment | Minimum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			2 years
Computer equipment | Maximum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			6 years
Computer equipment
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			5 years
Vehicles
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			5 years
Tooling
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			3 years
Furniture and Office Equipment [Member] | Minimum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			2 years
Furniture and Office Equipment [Member] | Maximum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			6 years
Demonstration units
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			3 years

Summary of Significant Accoun36

Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Warranty accrual, beginning of period	$ 1,416	$ 1,161
Provision for warranty costs	679	684
Product Warranty Accrual, Preexisting, Increase (Decrease)	(52)	25
Settlements made	(828)	(812)
Warranty accrual, end of period	$ 1,215	$ 1,058

Summary of Significant Accoun37

Summary of Significant Accounting Policies - Schedule of Change in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Accounting Policies [Abstract]
Accumulated other comprehensive loss, beginning of period			$ (2,093)
Foreign currency translation adjustments	$ 112	$ (1,701)	(2,246)	$ (3,411)
Accumulated other comprehensive loss, end of period	$ (4,339)		$ (4,339)

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Reconciliation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Accounting Policies [Abstract]
Options to purchase of shares of common stock	500	3,100	600	1,500
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest	$ 17,929	$ 16,134	$ 56,447	$ 52,577
Net loss attributable to the noncontrolling interest	1,396	(1,271)	2,752	(1,280)
Net income attributable to Masimo Corporation stockholders	19,325	14,863	59,199	51,297
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$ 19,325	$ 14,863	$ 59,199	$ 51,297
Weighted average shares outstanding - basic (in shares)	50,974	53,988	51,653	55,521
Basic net income per share attributable to Masimo Corporation stockholders (in usd per share)	$ 0.38	$ 0.28	$ 1.15	$ 0.92
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted average shares outstanding - basic (in shares)	50,974	53,988	51,653	55,521
Diluted share equivalent: stock options (in shares)	2,712	630	2,293	860
Weighted average shares outstanding - diluted (in shares)	53,686	54,618	53,946	56,381
Diluted net income per share attributable to Masimo Corporation stockholders (in usd per share)	$ 0.36	$ 0.27	$ 1.10	$ 0.91

Variable Interest Entity (VIE39

Variable Interest Entity (VIE) - Additional Information (Detail) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2015	Dec. 28, 2013	Feb. 28, 2009	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2011	Jan. 03, 2015
Variable Interest Entity [Line Items]
License Fees Individual		$ 500,000
License Fee Aggregate		$ 2,500,000
Patent and Licensing Fee - Aggregate	$ 2,400,000
Noncontrolling interest				$ (1,001,000)		$ (1,001,000)			$ 1,742,000
Licensed rainbow parameters
Variable Interest Entity [Line Items]
Percentage of royalty expense						10.00%
Handheld Products Incorporating Rainbow Technology
Variable Interest Entity [Line Items]
Percentage of royalty expense						10.00%
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Minimum aggregate royalty payments				$ 1,700,000	$ 900,000	$ 4,300,000	$ 4,000,000
Increase in royalties payable in current year						15,000,000
Increase in the minimum aggregate annual royalties payment						$ 2,000,000
Percentage reimbursed			50.00%	60.00%		60.00%
Total expenses for additional services, materials and supplies				$ 900,000	$ 800,000		$ 2,600,000
Deferred revenue related to technology eliminated upon consolidation				3,900,000		$ 3,900,000			6,500,000
Noncontrolling interest				1,000,000		1,000,000			1,700,000
Total assets, net of intercompany eliminations				4,000,000		4,000,000			7,200,000
Intangible assets				2,900,000		2,900,000			4,700,000
Property and equipment				800,000		800,000			1,200,000
Total liabilities, net of intercompany eliminations				$ 900,000		900,000			$ 1,200,000
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Percentage reimbursed								50.00%
Minimum | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Minimum aggregate royalty payments						$ 5,000,000

Variable Interest Entity (VIE40

Variable Interest Entity (VIE) - Changes in Noncontrolling Interest for Cercacor (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Variable Interest Entity [Abstract]
Noncontrolling Interest Table [Table Text Block]			Nine Months Ended Noncontrolling interest, beginning of period $ 1,742 Increase in additional paid-in capital of noncontrolling interest 9 Net loss attributable to noncontrolling interest 2,752 Noncontrolling interest, end of period $ (1,001 )
Noncontrolling interest, beginning of period			$ 1,742
Increase in additional paid-in capital of noncontrolling interest			9
Net loss attributable to noncontrolling interest	$ 1,396	$ (1,271)	2,752	$ (1,280)
Noncontrolling interest, end of period	$ (1,001)		$ (1,001)

Cash and Cash Equivalents - Add

Cash and Cash Equivalents - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Oct. 03, 2015	Jan. 03, 2015
Cash and Cash Equivalents [Abstract]
Highly liquid investments maximum maturity period	Three months or less
Cash balance	$ 84.9	$ 92.9
Cash equivalents	18.7	41.6
Time Deposits, at Carrying Value	17.5	40.5
Money market funds	$ 1.2	$ 1.1

Inventories - Components of Inv

Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 32,831	$ 33,056
Work-in-process	4,566	6,020
Finished goods	35,914	30,642
Total inventories	$ 73,311	$ 69,718

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Royalty Receivable	$ 7,000	$ 7,200
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expense, Current	10,361	9,816
Due from Employees, Current	320	385
Other Assets, Miscellaneous, Current	4,029	4,070
Other current assets	$ 21,710	$ 21,471

Property and Equipment Proper44

Property and Equipment Property and Equipment (Details) $ in Thousands	1 Months Ended		3 Months Ended
	Sep. 30, 2015ft²	Jun. 30, 2015USD ($)ft²	Oct. 03, 2015USD ($)	Jan. 03, 2015USD ($)
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Number of Square Feet Purchased | ft²		90,000
Property, Plant and Equipment, Additions		$ 8,500
Property Plant and Equipment, Occupied Square Feet | ft²	78,000
Property, Plant and Equipment, Transfers and Changes			$ 28,300
Property, plant and equipment, gross			191,172	$ 159,036
Accumulated depreciation and amortization			(62,603)	(57,084)
Property and equipment, net			128,569	101,952
Land, Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions		$ 6,300
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			42,305	38,588
Building and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			72,738	30,678
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			23,737	22,894
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			14,829	13,035
Tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			13,178	12,317
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			7,711	9,912
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross			600	600
Property, plant and equipment, gross			8,713	4,864
Demonstration units
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			979	972
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			45	45
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross			6,937	25,731
Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization			$ (500)	$ (400)

Property and Equipment Proper45

Property and Equipment Property and Equipment Narrative (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Jun. 30, 2015USD ($)ft²	Oct. 03, 2015USD ($)	Sep. 27, 2014USD ($)	Jan. 03, 2015USD ($)
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Number of Square Feet Purchased | ft²	90,000
Property, Plant and Equipment, Additions	$ 8,500
Depreciation		$ 8,600	$ 6,800
Depreciation and amortization		11,603	$ 9,481
Property, plant and equipment, gross		191,172		$ 159,036
Accumulated depreciation		62,603		57,084
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		6,937		25,731
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		8,713		4,864
Capital Leased Assets, Gross		600		600
Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation		500		$ 400
Irvine, California | Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		5,400
Accounts Payable | Irvine, California | Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		$ 6,900

Intangible Assets Intangible 46

Intangible Assets Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 43,683	$ 40,786
Total accumulated amortization	(15,800)	(13,015)
Intangible assets, net	27,883	27,771
Patents
Finite-Lived Intangible Assets [Line Items]
Total cost	21,606	20,459
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total cost	7,669	7,669
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Total cost	5,580	5,580
Trademarks
Finite-Lived Intangible Assets [Line Items]
Total cost	3,867	3,562
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Total cost	2,427	2,066
Other
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 2,534	$ 1,450

Intangible Assets Intangible 47

Intangible Assets Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Jul. 04, 2015	Oct. 03, 2015	Sep. 27, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			10 years
Amortization of Intangible Assets	$ 0.9	$ 1		$ 3.3	$ 2.7

Intangible Assets Intangible 48

Intangible Assets Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2,015	$ 3,596
2,016	3,364
2,017	3,156
2,018	2,592
2,019	2,458
Thereafter	12,717
Intangible assets, net	$ 27,883	$ 27,771

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015	Sep. 27, 2014	Dec. 28, 2013
Accrued Liabilities [Abstract]
Accrued customer rebates, fees and reimbursement	$ 11,912	$ 11,645
Accrued Income Taxes	3,648	4,372
Income taxes payable	2,481	6,562
Product Warranty Accrual	1,215	1,416	$ 1,058	$ 1,161
Other Accrued Liabilities, Current	7,321	7,108
Accrued liabilities	$ 24,096	$ 24,541

Long-term debt Debt Instrument

Long-term debt Debt Instrument (Details) - USD ($)	Sep. 29, 2014	Oct. 03, 2015	Jan. 03, 2015
Line of Credit Facility [Line Items]
Capital Lease Obligations, Noncurrent		$ 100,000	$ 145,000
Long-term Debt and Capital Lease Obligations		190,100,000	125,145,000
Adjusted London Interbank Offered Rate (LIBOR) | Minimum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.125%
Adjusted London Interbank Offered Rate (LIBOR) | Maximum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Increase to borrowing capacity	$ 125,000,000
Line of Credit Facility, Current Borrowing Capacity	250,000,000
Line of Credit Facility, Maximum Borrowing Capacity	350,000,000
Line of Credit Facility, Maximum Sublimit	$ 50,000,000
Long-term Line of Credit, Noncurrent		$ 190,000,000	$ 125,000,000
Revolving Credit Facility [Member] | Base Rate | Minimum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.125%
Revolving Credit Facility [Member] | Base Rate | Maximum
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility [Member] | Foreign Line of Credit
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Sublimit	$ 75,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End		1.50%
Revolving Credit Facility [Member] | Minimum
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.175%
Revolving Credit Facility [Member] | Maximum
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.30%
Revolving Credit Facility [Member] | One Month Adjusted London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility [Member] | Federal Fund
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%

Stock Repurchase Program - Addi

Stock Repurchase Program - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 29, 2014	Oct. 03, 2015	Oct. 03, 2015	Sep. 27, 2014	Sep. 01, 2015	Feb. 28, 2013
Equity [Abstract]
Number of common shares authorized to be repurchased under new stock repurchase program	9,000,000	5,000,000	5,000,000		5,000,000	6,000,000
Stock Repurchase Program, Number of Additional Shares Authorized in the Period	3,000,000
Stock repurchase program, number of shares repurchased		1,200,000	3,500,000	2,400,000
Stock repurchase program, average price per share		$ 41.44	$ 36.71	$ 21.95
Stock repurchase program, total value		$ 48.5	$ 130.2	$ 52.7

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2018	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Sep. 01, 2015	Jan. 03, 2015	Oct. 29, 2014	Feb. 28, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		9,289,000		9,289,000			9,956,000
Document Period End Date				Oct. 3, 2015
Number of common shares authorized to be repurchased under new stock repurchase program		5,000,000		5,000,000		5,000,000		9,000,000	6,000,000
Exercised				$ 19.92
Share-based compensation expense		$ 2,703	$ 2,600	$ 8,132	$ 7,784
Aggregate intrinsic value of options outstanding		52,500		52,500
Aggregate intrinsic value of options exercisable		22,500		22,500
Aggregate intrinsic value of options exercised		10,000		21,600
Unrecognized share-based compensation related to unvested options granted		$ 23,300		$ 23,300
Unrecognized share-based compensation related to unvested options granted, term				5 years 9 months 18 days
Weighted average remaining contractual term of options exercisable, years				4 years 2 months 12 days
Employment Contracts [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		2,600,000		2,600,000
Employment Contracts [Member] | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised				$ 15.40
Employment Contracts [Member] | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised				$ 38.76
Subsequent Event [Member] | Employment Contracts [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employment Agreement, Severance Terms	10.00%

Share-Based Compensation - Numb

Share-Based Compensation - Number and Weighted Average Exercise Price of Options Issued and Outstanding under all Stock Option Plans (Detail) shares in Thousands	9 Months Ended
	Oct. 03, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning of period	9,956
Granted	781
Canceled	(196)
Exercised	(1,252)
Options outstanding, end of period	9,289
Options exercisable, end of period	5,524
Options available for grant, end of period	5,188
Average Exercise Price
Options outstanding, beginning of period | $ / shares	$ 23.59
Granted | $ / shares	35.28
Canceled | $ / shares	24.51
Exercised | $ / shares	19.92
Options outstanding, end of period | $ / shares	25.04
Options exercisable, end of period | $ / shares	$ 24.62

Share-Based Compensation - Rang

Share-Based Compensation - Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant (Detail) - $ / shares	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Document Period End Date			Oct. 3, 2015
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Risk-free interest rate, minimum	1.50%	1.60%	1.30%	1.40%
Risk-free interest rate, maximum	1.80%	1.80%	1.90%	1.80%
Expected term (in years)	5 years 6 months	5 years 1 month 6 days	5 years 6 months	5 years 1 month 6 days
Estimated volatility, minimum	32.30%	31.70%	32.00%	31.70%
Estimated volatility, maximum	35.60%	32.10%	37.40%	33.10%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Weighted-average fair value of options granted	$ 14.09	$ 6.79	$ 11.82	$ 7.85

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Oct. 01, 2014USD ($)	Jan. 16, 2014USD ($)	Jan. 03, 2014USD ($)	Aug. 21, 2013claim	Jul. 09, 2009patent	Sep. 30, 2011sales_representatives	Oct. 03, 2015USD ($)distributorAgreement	Sep. 27, 2014USD ($)distributor	Mar. 29, 2014USD ($)	Oct. 03, 2015USD ($)distributorAgreement	Sep. 27, 2014USD ($)distributor	Jan. 03, 2015USD ($)distributor	Dec. 28, 2013USD ($)	Jan. 31, 2014participant
Contingencies And Commitments [Line Items]
Accrued rent expense							$ 200,000			$ 200,000		$ 400,000
Rental expense related to operating leases							1,200,000	$ 1,600,000		$ 4,000,000	$ 4,800,000
Company contribution percentage based on employee contribution of up to 3% of employee's compensation										3.00%
Company's contribution to employee retirement savings plan							$ 600,000	$ 600,000		$ 1,800,000	$ 1,800,000
Initial term of agreement										3 years
Severance plan participation agreements | Agreement							7			7
Supplemental Unemployment Benefits, Severance Benefits, Required Notice of Resignation										6 months
Purchase Commitment, Remaining Minimum Amount Committed							$ 85,500,000			$ 85,500,000
Other Commitment							300,000			300,000
Bank balances							84,900,000			84,900,000		92,900,000
Bank balance covered by Federal Deposit Insurance Corporation limit							2,300,000			2,300,000
Money Market Funds, at Carrying Value							1,200,000			1,200,000		1,100,000
Time Deposits, at Carrying Value							$ 17,500,000			$ 17,500,000		$ 40,500,000
Percentage of revenue one customer							15.00%	14.00%		15.00%	14.00%
Percentage of revenue two customer							12.00%	12.00%		12.00%	11.00%
Royalty							$ 7,972,000	$ 6,976,000		$ 23,266,000	$ 21,988,000
Royalty Rate Percentage										7.75%
Number of days royalty revenue is adjusted subsequent to quarter end										60 days
Number of former sales representatives | sales_representatives						2
Litigation settlement amount	$ 466,800,000
Increase (decrease) in loss contingency accrual									$ (8,000,000)
Number of participants in the surfactant, positive pressure, and oxygenation randomized trial | participant														2
Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Concentration risk, just-in-time distributors | distributor										3		3
Sales
Contingencies And Commitments [Line Items]
Concentration risk, just-in-time distributors | distributor							2	2		2	2
Minimum
Contingencies And Commitments [Line Items]
Interest rates on capital lease										4.30%
Maximum
Contingencies And Commitments [Line Items]
Interest rates on capital lease										5.20%
Sales Revenue, Product Line [Member]
Contingencies And Commitments [Line Items]
Sale of company's products to customers							$ 81,000,000	$ 75,200,000		$ 251,900,000	$ 228,900,000
Just in time distributor one
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors										9.00%		9.00%
Just in time distributor two
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors										8.00%		6.00%
Just In Time Distributor Three [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors										5.00%		5.00%
Masimo vs. Philips
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent					1
Masimo vs. Mindray DS USA, Inc. and Shenzhen Mindray Bio-Medical Electronics
Contingencies And Commitments [Line Items]
Loss contingency, new claims filed | claim				2
Masimo vs Former Physician Office Sales Representatives
Contingencies And Commitments [Line Items]
Litigation settlement amount		$ 5,400,000
Litigation settlement expense													$ 2,600,000
Masimo vs. Physicians Healthsource, Inc.
Contingencies And Commitments [Line Items]
Loss contingency, damages sought			$ 500
Parent Company [Member]
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent					2
Philips Patent [Member]
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent					1
Employment Contracts [Member]
Contingencies And Commitments [Line Items]
Employment Agreement, Severance Terms							80,900,000			$ 80,900,000
Reimbursement of Certain Tax Withholding, Excise Taxes, Gross Up							$ 125,000,000			$ 125,000,000

Commitments and Contingencies56

Commitments and Contingencies - Future Minimum Lease Payments Under Operating and Capital Leases (Detail) $ in Thousands	9 Months Ended
	Oct. 03, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Document Period End Date	Oct. 3, 2015
Operating Leases
2015 (balance of year)	$ 1,058
2,016	3,314
2,017	2,930
2,018	2,714
2,019	2,291
Thereafter	1,033
Total	13,340
Capital Leases
2015 (balance of year)	4
2,016	88
2,017	82
2,018	8
2,019	8
Thereafter	3
Total	193
Total
2015 (balance of year)	1,062
2,016	3,402
2,017	3,012
2,018	2,722
2,019	2,299
Thereafter	1,036
Total	$ 13,533

Long Lived Assets by Geographic

Long Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Jan. 03, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 224,343	$ 197,209
Concentration Risk, Long-lived Asset Geographic Area, Percentage	100.00%	100.00%
Concentration Risk, Net Assets Amount, Geographic Area	$ 268,234	$ 307,741
Reportable Geographical Components [Member] | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 212,833	$ 185,461
Concentration Risk, Long-lived Asset Geographic Area, Percentage	94.90%	94.00%
Concentration Risk, Net Assets Amount, Geographic Area	$ 118,795	$ 144,541
Reportable Geographical Components [Member] | International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 11,510	$ 11,748
Concentration Risk, Long-lived Asset Geographic Area, Percentage	5.10%	6.00%
Concentration Risk, Net Assets Amount, Geographic Area	$ 149,439	$ 163,200

Segment Information and Enter58

Segment Information and Enterprise Reporting - Analysis of Product Revenues Based upon Geographic Area Shipped (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Jan. 03, 2015
Revenue, Major Customer [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area	$ 268,234		$ 268,234		$ 307,741
Concentration Risk, Net Assets Geographic Area, Percentage	100.00%		100.00%		100.00%
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 144,603	$ 137,142	$ 439,572	$ 402,868
Total product revenue, in percentage	100.00%	100.00%	100.00%	100.00%
North and South America | Reportable Geographical Components
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 105,217	$ 99,563	$ 327,221	$ 287,678
Total product revenue, in percentage	72.80%	72.60%	74.40%	71.40%
Europe, Middle East and Africa | Reportable Geographical Components
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 25,729	$ 23,417	$ 74,125	$ 73,146
Total product revenue, in percentage	17.80%	17.10%	16.90%	18.20%
Asia and Australia | Reportable Geographical Components
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 13,657	$ 14,162	$ 38,226	$ 42,044
Total product revenue, in percentage	9.40%	10.30%	8.70%	10.40%
United States | Reportable Geographical Components
Revenue, Major Customer [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area	$ 118,795		$ 118,795		$ 144,541
Concentration Risk, Net Assets Geographic Area, Percentage	44.30%		44.30%		47.00%
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 101,471	$ 95,289	$ 314,983	$ 274,924
International | Reportable Geographical Components
Revenue, Major Customer [Line Items]
Concentration Risk, Net Assets Amount, Geographic Area	$ 149,439		$ 149,439		$ 163,200
Concentration Risk, Net Assets Geographic Area, Percentage	55.70%		55.70%		53.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Oct. 03, 2015USD ($)
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefit	$ 8.7
Unrecognized tax benefit that would affect effective tax rate	$ 7.1

Subsequent Event (Details)

Subsequent Event (Details) - Chief Executive Officer [Member] - Subsequent Event [Member] - USD ($) $ in Millions	Jan. 01, 2018	Nov. 04, 2015
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award		2.7
Employment Agreement, Severance Benefits, Special Payment		$ 35
Employment Agreement, Severance Terms	10.00%
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination		$ 146.9