Masimo (MASI) 10-Q 2 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Oct. 01, 2016shares
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Trading Symbol	MASI
Entity Registrant Name	MASIMO CORP
Entity Central Index Key	937,556
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	49,677,592

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets
Cash and cash equivalents	$ 125,988	$ 132,317
Accounts receivable, net of allowance for doubtful accounts of $1,794,000 and $1,967,000 at October 1, 2016 and January 2, 2016, respectively.	94,374	80,960
Inventories	67,047	62,038
Other current assets	37,213	23,827
Total current assets	324,622	299,142
Deferred Costs, Noncurrent	83,066	71,718
Property and equipment, net	133,150	132,466
Intangible assets, net	29,816	27,556
Goodwill	20,252	20,394
Deferred tax assets	39,403	44,320
Other non-current assets	9,144	6,139
Total assets	639,453	601,735
Current liabilities
Accounts payable	32,232	25,865
Accrued compensation	37,099	38,415
Accrued and other current liabilities	42,867	47,073
Deferred revenue	32,137	21,280
Total current liabilities	144,335	132,633
Long-term Debt and Capital Lease Obligations	152,500	185,071
Deferred Credits and Other Liabilities	9,431	8,319
Total liabilities	306,266	326,023
Commitments and contingencies
Masimo Corporation stockholders’ equity:
Preferred stock, $0.001 par value; 5,000 shares authorized; 0 shares issued and outstanding at October 1, 2016 and January 2, 2016	0	0
Common stock, $0.001 par value; 100,000 shares authorized; 49,677,000 and 49,881,000 shares issued and outstanding at October 1, 2016 and January 2, 2016, respectively	50	50
Treasury stock, 14,255,000 and 12,759,000 shares at October 1, 2016 and January 2, 2016, respectively	(404,276)	(340,873)
Additional paid-in capital	368,501	332,417
Accumulated other comprehensive loss	(5,019)	(4,739)
Retained earnings	373,931	288,560
Total Masimo Corporation stockholders’ equity	333,187	275,415
Noncontrolling interest	0	297
Total equity	333,187	275,712
Total liabilities and equity	$ 639,453	$ 601,735

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2	$ 2
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	49,677	49,881
Treasury stock, shares	14,255	12,759

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income Statement - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Sales Revenue, Goods, Net	$ 160,286	$ 144,603	$ 488,183	$ 439,572
Royalty	7,335	7,972	23,241	23,266
Total revenue	167,621	152,575	511,424	462,838
Cost of goods sold	57,499	50,343	171,954	154,600
Gross profit	110,122	102,232	339,470	308,238
Selling, general and administrative	57,845	59,607	184,244	182,072
Research and Development Expense	15,673	14,485	44,856	42,808
Operating Expenses	73,518	74,092	229,100	224,880
Operating Income (Loss)	36,604	28,140	110,370	83,358
Nonoperating Income (Expense)	(546)	(1,050)	423	(2,022)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	36,058	27,090	110,793	81,336
Provision for income taxes	8,285	9,161	25,420	24,889
Net income including noncontrolling interest	27,773	17,929	85,373	56,447
Net Income (Loss) Attributable to Noncontrolling Interest	0	1,396	0	2,752
Net income attributable to Masimo Corporation stockholders	27,773	19,325	85,373	59,199
Foreign currency translation adjustments	(470)	112	(280)	(2,246)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 27,303	$ 19,437	$ 85,093	$ 56,953
Basic (in usd per share)	$ 0.56	$ 0.38	$ 1.73	$ 1.15
Diluted (in usd per share)	$ 0.52	$ 0.36	$ 1.62	$ 1.10
Basic (in shares)	49,477	50,974	49,386	51,653
Diluted (in shares)	53,565	53,686	52,837	53,946

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Income Statement [Abstract]
Net income including noncontrolling interest	$ 27,773	$ 17,929	$ 85,373	$ 56,447
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(470)	112	(280)	(2,246)
Total comprehensive income	27,303	18,041	85,093	54,201
Net loss attributable to the noncontrolling interest	0	1,396	0	2,752
Comprehensive income attributable to Masimo Corporation stockholders	$ 27,303	$ 19,437	$ 85,093	$ 56,953

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Cash flows from operating activities:
Net income including noncontrolling interest	$ 85,373	$ 56,447
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Depreciation and amortization	12,355	11,603
Stock-based compensation	9,693	8,132
Gain (Loss) on Disposition of Property Plant Equipment	478	423
Deconsolidation, Gain (Loss), Amount	(273)	0
Provision for doubtful accounts	127	506
Changes in operating assets and liabilities:
Increase in accounts receivable	(13,525)	(5,048)
Increase in inventories	(5,092)	(3,755)
Increase in deferred cost of goods sold	(11,278)	(1,007)
Increase (Decrease) in Other Noncurrent Assets	2,317	3,661
Increase (Decrease) in Other Current Assets	(12,911)	(5,003)
Increase (decrease) in accounts payable	9,232	(4,179)
Increase (Decrease) in Accounts Payable, Related Parties	(1,092)	0
Decrease in accrued compensation	(810)	(1,436)
Increase (decrease) in accrued and other current liabilities	862	(482)
Increase in deferred revenue	10,857	3,465
Increase (decrease) in other non-current liabilities	1,149	(272)
Net cash provided by operating activities	87,830	55,733
Deferred Income Tax Expense (Benefit)	5,002	0
Cash flows from investing activities:
Purchases of property and equipment, net	(13,697)	(40,520)
Increase in intangible assets	(3,969)	(3,486)
Deconsolidation, Variable Interest Entity, Reduction of Cash	(763)	0
Net cash used in investing activities	(18,429)	(44,006)
Cash flows from financing activities:
Proceeds from (Repayments of) Lines of Credit	45,000	107,500
Repayments of Lines of Credit	(77,500)	(42,500)
Payments of Debt Issuance Costs	(621)	0
Repayments of capital lease obligations	(72)	(81)
Proceeds from issuance of common stock	26,063	24,942
Repurchases of common stock	(68,218)	(130,157)
Issuance of equity by noncontrolling interest, net of equity issued	0	4
Net cash used in financing activities	(75,348)	(40,764)
Effect of foreign currency exchange rates on cash	(382)	(1,835)
Net decrease in cash and cash equivalents	(6,329)	(30,872)
Cash and cash equivalents at beginning of period	132,317	134,453
Cash and cash equivalents at end of period	125,988	103,581
Payments Related to Tax Withholding for Share-based Compensation	$ 0	$ (472)

Description of the Company

Description of the Company	9 Months Ended
	Oct. 01, 2016
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 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. 01, 2016
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 2, 2016 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 2, 2016 (fiscal year 2015 ), filed with the SEC on February 24, 2016 . The results for the nine months ended October 1, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016 (fiscal year 2016 ) 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 through January 2, 2016, Cercacor Laboratories, Inc. (Cercacor), the variable interest entity (VIE) of which the Company was the primary beneficiary. Effective January 3, 2016, the Company discontinued consolidating Cercacor within its consolidated financial statements based on its determination that the Company was no longer the primary beneficiary of Cercacor. 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 week 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 2016 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 to apply the fair value option under this guidance to specific assets or liabilities on a contract-by-contract basis. There were no transfers between Level 1, Level 2 and Level 3 inputs during the nine months ended October 1, 2016 . The Company carries cash and cash equivalents at cost, which approximates fair value. As of October 1, 2016 and January 2, 2016 , 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 1, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 62,488 $ — $ — $ 62,488 $ 62,488 Level 1: Bank Time Deposits 62,500 — — 62,500 62,500 Money Market Funds 1,000 — — 1,000 1,000 Subtotal 63,500 — — 63,500 63,500 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 125,988 $ — $ — $ 125,988 $ 125,988 January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 57,168 $ — $ — $ 57,168 $ 57,168 Level 1: Bank Time Deposits 55,000 — — 55,000 55,000 Money Market Funds 20,149 — — 20,149 20,149 Subtotal 75,149 — — 75,149 75,149 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 132,317 $ — $ — $ 132,317 $ 132,317 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. 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 net realizable value. Cost is determined using a standard cost method, which approximates the first in, first out method, 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 in inventory. 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 improvements 7 to 15 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 7 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. Intangible Assets The Company’s policy is to renew its patents and trademarks. Total renewal costs for patents and trademarks were $0.5 million and $0.4 million for the nine months ended October 1, 2016 and October 3, 2015 , respectively. As of October 1, 2016 , the weighted-average number of years until the next renewal was one year for patents and six 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 1, 2016 and October 3, 2015 . 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 certain monitoring-related equipment, software, installation, training and/or warranty support 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 to OEM customers who incorporate the Company’s embedded software technology into their multi-parameter monitoring devices. 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-related 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 six years. The sensors are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. The Company generally does not recognize any revenue when the monitoring-related equipment and software are delivered to the hospitals, but rather recognizes revenue for these delivered elements on a pro-rata basis as the sensors are delivered under the long-term purchase commitment, when installation and training are complete. Accordingly, the cost of the monitoring-related 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. Some of the Company’s long-term sensor contracts also contain provisions for certain cash payments to be made directly to the end-user hospital customer at the inception of the arrangement. These cash payments are generally treated as prepaid discounts that are deferred and amortized on a straight-line basis as contra-revenue 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 Ltd.), 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 forty-eight 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 six 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 1, October 3, Warranty accrual, beginning of period $ 1,222 $ 1,416 Accrual for warranties issued 722 679 Changes to pre-existing warranties (including changes in estimates) 99 (52 ) Settlements made (751 ) (828 ) Warranty accrual, end of period $ 1,292 $ 1,215 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 $ (4,739 ) Foreign currency translation adjustments (280 ) Accumulated other comprehensive loss, end of period $ (5,019 ) Net Income Per Share Basic net income per share attributable to Masimo Corporation for the three and nine months ended October 1, 2016 and October 3, 2015 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 1, 2016 and October 3, 2015 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 and the vesting of restricted share units (RSUs). For the three and nine months ended October 1, 2016 , 0.1 million and 1.4 million , respectively, weighted options to purchase shares of common stock 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 October 3, 2015 , 0.5 million and 0.6 million , respectively, weighted options to purchase shares of common stock 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 October 1, 2016 , certain RSUs were considered contingently issuable shares as their vesting is contingent upon the occurrence of certain future events. Since such events had not occurred and were not considered probable of occurring as of October 1, 2016 , 2.7 million weighted average shares related to such RSUs have been excluded from the calculation of potential shares. 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 to determine its net income attributable to its stockholders. Since the Company discontinued consolidating Cercacor effective January 3, 2016, a similar adjustment was not required for the three and nine months ended October 1, 2016 . 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 1, October 3, October 1, October 3, Net income attributable to Masimo Corporation stockholders: Net income including noncontrolling interest $ 27,773 $ 17,929 $ 85,373 $ 56,447 Net loss attributable to the noncontrolling interest — 1,396 — 2,752 Net income attributable to Masimo Corporation stockholders $ 27,773 $ 19,325 $ 85,373 $ 59,199 Basic net income per share attributable to Masimo Corporation stockholders: Net income attributable to Masimo Corporation stockholders $ 27,773 $ 19,325 $ 85,373 $ 59,199 Weighted-average shares outstanding - basic 49,477 50,974 49,386 51,653 Basic net income per share attributable to Masimo Corporation stockholders $ 0.56 $ 0.38 $ 1.73 $ 1.15 Diluted net income per share attributable to Masimo Corporation stockholders: Weighted-average shares outstanding - basic 49,477 50,974 49,386 51,653 Diluted share equivalent: stock options and RSUs 4,088 2,712 3,451 2,293 Weighted-average shares outstanding - diluted 53,565 53,686 52,837 53,946 Diluted net income per share attributable to Masimo Corporation stockholders $ 0.52 $ 0.36 $ 1.62 $ 1.10 Supplemental Cash Flow Information Supplemental cash flow information includes the following (in thousands): Nine Months Ended October 1, October 3, Cash paid during the year for: Interest (net of amounts capitalized) $ 2,603 $ 1,548 Income taxes 25,753 29,854 Noncash investing and financing activities: Unpaid purchases of property, plant and equipment $ 1,232 $ 7,093 Unsettled common stock proceeds from option exercises 476 — 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 frequently experienced a sequential decline in product revenues in its second and/or third fiscal quarters, primarily due to the summer vacation season during which the flu season has moderated and 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 Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on stock-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of stock-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard during the first quarter of the fiscal year ending December 31, 2016. The early adoption of this standard resulted in a $7.7 million reduction to the Company’s income tax provision for the nine months ended October 1, 2016 . 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 adoption permitted. The Company adopted this standard during the first quarter of the fiscal year ending December 31, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The new standard amended the existing accounting standards for the Statement of Cash Flows and provides guidance on eight specific cash flow issues. ASU 2016-15 is effective for annual and interim fiscal reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the expected impact of this standard but does not expect it to have a material impact on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The new standard requires entities to use a current expected credit loss model, which is a new impairment model based on expected losses rather than incurred losses. Under this model, an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect. The entity’s estimate would consider relevant information about past events, current conditions, and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim fiscal reporting periods beginning after December 15, 2019, with early adoption permitted for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the expected impact of this standard but does not expect it to hav

Variable Interest Entity (VIE)

Variable Interest Entity (VIE)	9 Months Ended
	Oct. 01, 2016
Variable Interest Entity [Abstract]
Variable Interest Entity (VIE)	Variable Interest Entity (VIE) The Company follows authoritative guidance for the consolidation of a 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 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 (CEO), is also the Chairman and CEO 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. As a result of recent changes in the capital structure of Cercacor, as well as certain of its contractual relationships with the Company, the Company completed a re-evaluation of the authoritative consolidation guidance during the first quarter of 2016 and determined that although Cercacor remains a VIE, the Company is no longer its primary beneficiary as it can no longer be deemed to have the power to direct the activities of Cercacor that most significantly impact Cercacor’s economic performance and can no longer be deemed to have an obligation to absorb Cercacor’s losses pursuant to the Company’s on-going contractual relationships with Cercacor. Based on such determination, the Company discontinued consolidating Cercacor within its consolidated financial statements effective as of January 3, 2016. However, Cercacor continues to be a related party following its deconsolidation. The Company recognized a gain of $0.3 million upon such deconsolidation, which has been reported within non-operating income in the condensed consolidated statement of operations. See Note 4 to these condensed consolidated financial statements for a description of the Company’s continuing business relationships with Cercacor. Cercacor continues to be included within the Company’s condensed consolidated financial statements for all periods prior to January 3, 2016. Accordingly, for periods prior to January 3, 2016, 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 consolidation. However, for periods prior to January 3, 2016, all direct operating expenses that were incurred by the Company and charged to Cercacor, or that were incurred by Cercacor and charged to the Company, have not been eliminated and are included within operating expenses in the Company’s condensed consolidated statements of operations. The consolidating statement of operations for the three and nine months ended October 3, 2015 , which reflect the Company, Cercacor and related eliminations (in thousands), is included below: 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 (CEO), is also the Chairman and CEO 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. As a result of recent changes in the capital structure of Cercacor, as well as certain of its contractual relationships with the Company, the Company completed a re-evaluation of the authoritative consolidation guidance during the first quarter of 2016 and determined that although Cercacor remains a VIE, the Company is no longer its primary beneficiary as it can no longer be deemed to have the power to direct the activities of Cercacor that most significantly impact Cercacor’s economic performance and can no longer be deemed to have an obligation to absorb Cercacor’s losses pursuant to the Company’s on-going contractual relationships with Cercacor. Based on such determination, the Company discontinued consolidating Cercacor within its consolidated financial statements effective as of January 3, 2016. However, Cercacor continues to be a related party following its deconsolidation. The Company recognized a gain of $0.3 million upon such deconsolidation, which has been reported within non-operating income in the condensed consolidated statement of operations. See Note 4 to these condensed consolidated financial statements for a description of the Company’s continuing business relationships with Cercacor. Cercacor continues to be included within the Company’s condensed consolidated financial statements for all periods prior to January 3, 2016. Accordingly, for periods prior to January 3, 2016, 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 consolidation. However, for periods prior to January 3, 2016, all direct operating expenses that were incurred by the Company and charged to Cercacor, or that were incurred by Cercacor and charged to the Company, have not been eliminated and are included within operating expenses in the Company’s condensed consolidated statements of operations. The consolidating statement of operations for the three and nine months ended October 3, 2015 , which reflect the Company, Cercacor and related eliminations (in thousands), is included below:

Related Party Transactions (not

Related Party Transactions (notes)	9 Months Ended
	Oct. 01, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	Related Party Transactions The Company’s Chairman and CEO is also the Chairman and CEO of Cercacor. The Company is a party to the following agreements with Cercacor: • Cross-Licensing Agreement - The Company and Cercacor are parties to the Cross-Licensing Agreement, which governs each party’s rights to certain intellectual property held by the two companies. The Company is subject to certain annual minimum aggregate royalty obligations for use of the rainbow ® licensed technology. The current annual minimum royalty obligation is $5.0 million . Actual aggregate royalty liabilities to Cercacor under the license were $1.6 million and $4.7 million for the three and nine months ended October 1, 2016 , respectively. 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, which were eliminated in consolidation. The Company had no sales to Cercacor for the three months ended October 1, 2016 , and less than $0.1 million for the nine months ended October 1, 2016 under the Cross-Licensing Agreement. There were no similar sales during the three and nine months ended October 3, 2015 . • Administrative Services Agreement - The Company is a party to an administrative services agreement with Cercacor (G&A Services Agreement), which governs certain general and administrative services that the Company provides to Cercacor. Amounts charged by the Company pursuant to the G&A Services Agreement were less than $0.1 million for each of the three and nine months ended October 1, 2016 and October 3, 2015 . • Consulting Services Agreement - The Company is also a party to a consulting services agreement (Consulting Agreement) with Cercacor that governs certain engineering consulting and clinical studies support services that Cercacor may provide to the Company from time-to-time. Expenses incurred by the Company related to this Consulting Agreement were less than $0.1 million for the three and nine months ended October 1, 2016 and approximately $0.1 million and $0.3 million for the three and nine months ended October 3, 2015 , respectively. • Sublease Agreement - In March 2016, the Company entered into a sublease agreement with Cercacor for approximately 16,830 square feet of excess office and laboratory space located at 40 Parker, Irvine, California (Cercacor Sublease). The Cercacor Sublease began on May 1, 2016 and expires on November 30, 2019. The Company recognized $0.1 million and $0.2 million in sublease income for the three and nine months ended October 1, 2016 , respectively. Net amounts due to Cercacor at October 1, 2016 and January 2, 2016 were less than approximately $0.1 million and $1.1 million , respectively. The Company’s CEO is also the Chairman of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation), a non-profit organization that was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. The Company’s Chief Financial Officer (CFO) is also a Director of the Masimo Foundation. The Company’s CEO is the Chairman of both the Patient Safety Movement Foundation (PSMF), a non-profit organization that was founded in 2013 to work with hospitals, medical technology companies and patient advocates to unite the healthcare ecosystem and eliminate the more than 200,000 U.S. preventable hospital deaths that occur every year by 2020, and the Patient Safety Movement Coalition (PSMC), a not-for-profit social welfare organization that was founded in 2013 to promote patient safety legislation. The Company’s CFO serves as the Treasurer and Secretary of PSMF, as well as the Secretary of PSMC. The Company’s CEO also serves on the board of directors of Atheer Labs, which is working with the Company on the development of next generation Root ® applications, and the board of directors of Children’s Hospital of Orange County and CHOC Children’s at Mission Hospital, two non-profit hospitals devoted exclusively to caring for children, both of which are also customers of the Company.

Inventories

Inventories	9 Months Ended
	Oct. 01, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): October 1, January 2, Raw materials $ 31,469 $ 25,781 Work-in-process 6,174 4,337 Finished goods 29,404 31,920 Total inventories $ 67,047 $ 62,038

Other Current Assets (Notes)

Other Current Assets (Notes)	9 Months Ended
	Oct. 01, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets [Text Block]	Other Current Assets Other current assets consist of the following (in thousands): October 1, January 2, Prepaid expenses $ 13,023 $ 9,930 Prepaid income taxes 7,996 2,404 Royalties receivable 7,500 7,200 Employee loans and advances 301 320 Due from related party 29 — Other current assets 8,364 3,973 Total other current assets $ 37,213 $ 23,827

Property and Equipment Property

Property and Equipment Property, Plant and Equipment	9 Months Ended
	Oct. 01, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net, consists of the following (in thousands): October 1, January 2, Building and building improvements $ 85,564 $ 78,877 Machinery and equipment 43,184 42,460 Land 23,762 23,738 Computer equipment 15,002 15,023 Tooling 13,234 13,079 Furniture and office equipment 9,502 8,885 Leasehold improvements 8,162 7,734 Demonstration units 979 973 Vehicles 45 45 Construction-in-progress 3,938 7,124 Total property and equipment 203,372 197,938 Accumulated depreciation and amortization (70,222 ) (65,472 ) Property and equipment, net $ 133,150 $ 132,466 During the nine months ended October 1, 2016 , the Company completed construction on its initial renovations to its new corporate headquarters and research and development facility in Irvine, California, resulting in the reclassification of approximately $3.4 million from construction-in-progress to building and improvements. Approximately $1.2 million of construction costs related to this facility are included in accounts payable as of October 1, 2016 . The gross value of furniture and office equipment under capital lease obligations was $0.4 million as of both October 1, 2016 and January 2, 2016 , with accumulated depreciation of $0.3 million as of both October 1, 2016 and January 2, 2016 . For the nine months ended October 1, 2016 and October 3, 2015 , depreciation expense of property and equipment was $9.5 million and $8.6 million , respectively.

Intangible Assets Intangible As

Intangible Assets Intangible Assets	9 Months Ended
	Oct. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, net, consist of the following (in thousands): October 1, January 2, Patents $ 19,449 $ 21,619 Customer relationships 7,669 7,669 Licenses (1) 7,500 — Acquired technology 5,580 5,580 Trademarks 3,733 3,944 Capitalized software development costs 2,539 2,539 Other 4,444 2,541 Total intangible assets 50,914 43,892 Accumulated amortization (21,098 ) (16,336 ) Intangible assets, net $ 29,816 $ 27,556 (1) As a result of the deconsolidation of the Company’s prior VIE, Cercacor, $7.5 million of licenses that were previously eliminated in consolidation are now included as part of the Company’s intangible assets at October 1, 2016 . Total amortization expense for the nine months ended October 1, 2016 and October 3, 2015 was $2.8 million and $3.3 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 2016 (balance of year) $ 4,424 2017 4,096 2018 3,842 2019 3,479 2020 3,123 Thereafter 10,852 Total $ 29,816

Income Taxes

Income Taxes	9 Months Ended
	Oct. 01, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company has provided for income taxes in fiscal 2016 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. As of October 1, 2016 , the liability for income taxes associated with uncertain tax positions was approximately $9.4 million . If fully recognized, approximately $8.0 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. The Company’s 2012 income tax return is currently under examination by the U.S. Internal Revenue Service. All material state, local and foreign income tax matters have been concluded through fiscal year 2008. The Company does not believe that the results of any tax authority examination would have a significant impact on its financial statements.

Accrued and Other Current Liabi

Accrued and Other Current Liabilities (Notes)	9 Months Ended
	Oct. 01, 2016
Accrued Liabilities [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued and other current liabilities consist of the following (in thousands): October 1, January 2, Accrued customer rebates, fees and reimbursements $ 25,066 $ 11,857 Accrued taxes 4,661 5,263 Accrued legal fees 2,186 5,785 Income taxes payable 1,941 2,777 Accrued warranty 1,292 1,222 Accrued donations 557 5,612 Accrued stock repurchases — 4,815 Accrued arbitration award — 5,391 Other 7,164 4,351 Total accrued and other current liabilities $ 42,867 $ 47,073

Long-Term Debt Debt instruments

Long-Term Debt Debt instruments (Notes)	9 Months Ended
	Oct. 01, 2016
Debt Disclosure [Abstract]
Line of Credit	Long Term Debt Long term debt consists of the following (in thousands): October 1, January 2, Revolving line of credit $ 152,500 $ 185,000 Long term portion of capital lease obligations acquisition — 71 Total long term debt $ 152,500 $ 185,071 In January 2016, the Company entered into an Amended and Restated Credit Agreement (Restated Credit Facility) with JPMorgan Chase Bank, N.A., as Administrative Agent and a Lender, Bank of America, N.A., as Syndication Agent and a Lender, Citibank, N.A., as Documentation Agent and a Lender, and various other Lenders (collectively, the Lenders). The Restated Credit Facility amends and restates the Company’s prior credit agreement dated April 23, 2014, as amended (the Amended Credit Agreement), and provides for up to $450.0 million in borrowings in multiple currencies, with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity to up to $550.0 million in the future. The Restated Credit Facility also provides for a sublimit of up to $50.0 million for the issuance of letters of credit and a sublimit of $125.0 million in specified foreign currencies. All unpaid principal under the Restated Credit Facility will become due and payable on January 8, 2021. Borrowings under the Restated Credit Facility will be deemed, at the Company’s election, either: (i) an Alternate Base Rate (ABR) Loan, which bears interest at the ABR 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 2.0% . 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 ABR 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 Restated Credit Facility 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 Restated Credit Facility, 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 Restated Credit Facility 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 1, 2016 , the Restated Credit Facility had outstanding Eurodollar Loan draws totaling $152.5 million at an effective interest rate of 1.8125% and outstanding standby letters of credit totaling $0.3 million . The Company was in compliance with all covenants under the Restated Credit Facility as of October 1, 2016 . The Company incurred interest expense related to the Restated Credit Facility of $3.0 million for the nine months ended October 1, 2016 . The Company incurred interest expense related to the Amended Credit Agreement of $1.9 million for the nine months ended October 3, 2015 .

Other Non-Current Liabilities O

Other Non-Current Liabilities Other LIabilities, Long Term	9 Months Ended
	Oct. 01, 2016
Other Liabilities, Long Term [Abstract]
Other Liabilities Disclosure [Text Block]	Other Non-Current Liabilities Other non-current liabilities consist of the following (in thousands): October 1, January 2, Unrecognized tax benefit $ 8,374 $ 7,747 Deferred revenue, long-term 375 298 Deferred tax liability, long-term 194 194 Other 488 80 Total other non-current liabilities $ 9,431 $ 8,319 Unrecognized tax benefit relates to the Company’s long-term portion of tax liability associated with uncertain tax positions. Authoritative guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. See Note 16 to these condensed consolidated financial statements for further details.

Stock Repurchase Program

Stock Repurchase Program	9 Months Ended
	Oct. 01, 2016
Equity [Abstract]
Stock Repurchase Program	The following table provides a summary of the Company’s stock repurchase activities during the three and nine months ended October 1, 2016 and October 3, 2015 (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Shares repurchased — 1,169 1,496 3,545 Average cost per share $ — $ 41.44 $ 42.39 $ 36.71 Value of shares repurchased $ — $ 48,458 $ 63,403 $ 130,157

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Oct. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	Equity Series A Junior Participating Preferred Stock and Stockholder Rights Plan In November 2007, the Company authorized and declared a dividend of one preferred stock purchase right (Right) for each outstanding share of its common stock to stockholders of record at the close of business on November 26, 2007 (the Record Date) pursuant to a Rights Agreement, dated as of November 9, 2007, with Computershare Trust Company, N.A., as Rights Agent (the Rights Agreement). In addition, one Right was issued with each share of common stock that became outstanding after the Record Date. Each Right entitled the registered holder to purchase from the Company one thousandth of one share of the Company’s Series A junior participating preferred stock, par value $0.001 per share, at a purchase price equal to $136.00 per Right, subject to adjustment. On February 12, 2016, the Company entered into an amendment to the Rights Agreement (the Rights Amendment). The Rights Amendment accelerated the expiration of the Rights from the close of business on February 8, 2017 to the close of business on February 16, 2016, and had the effect of terminating the Rights Agreement on that date. Upon the termination of the Rights Agreement, all of the Rights distributed to holders of the Company’s common stock pursuant to the Rights Agreement expired. Stock Repurchase Programs In September 2015, the Board authorized a 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 (2015 Repurchase Program). The 2015 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. The total remaining shares authorized for repurchase under the 2015 Repurchase Program approximated 2.9 million shares as of October 1, 2016 . The Company expects to fund the 2015 Repurchase Program through its available cash, future cash from operations, funds available under the Restated Credit Facility or other potential sources of capital. The following table provides a summary of the Company’s stock repurchase activities during the three and nine months ended October 1, 2016 and October 3, 2015 (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Shares repurchased — 1,169 1,496 3,545 Average cost per share $ — $ 41.44 $ 42.39 $ 36.71 Value of shares repurchased $ — $ 48,458 $ 63,403 $ 130,157
Share-Based Compensation	Stock-Based Compensation Stock-Based Award Activity 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 9,202 $ 25.46 Granted 1,257 39.34 Canceled (141 ) 29.32 Exercised (1,292 ) 20.43 Options outstanding, end of period 9,026 $ 28.05 Options exercisable, end of period 5,222 $ 26.01 The number of RSUs issued and outstanding under all of the Company’s stock option plans are as follows (in thousands, except for grant date fair value amounts): Nine Months Ended Units Weighted Average Grant Date Fair Value RSUs outstanding, beginning of period 2,703 $ 41.45 Granted 6 43.09 Canceled — — Expired — — Vested — — RSUs outstanding, end of period 2,709 $ 41.45 Approximately 2.7 million of the total RSUs outstanding were awarded to the Company’s Chairman and Chief Executive Officer in connection with the previous amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 14 to these condensed consolidated financial statements for further details). At October 1, 2016 , an aggregate of 16.1 million shares of common stock were reserved for future issuance under the Company’s 2007 Stock Incentive Plan (the 2007 Plan) and prior equity incentive plans, of which 4.3 million shares were available for future grant under the 2007 Plan. Valuation of Stock-Based Award Activity The fair value of each RSU award is determined based on the closing price of the Company’s common stock on the grant date. The Black-Scholes option pricing model is used to estimate the fair value of options granted under the Company’s stock-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 1, October 3, October 1, October 3, Risk-free interest rate 1.0% to 1.3% 1.5% to 1.8% 1.0% to 1.9% 1.3% to 1.9% Expected term (in years) 5.7 5.5 5.7 5.5 Estimated volatility 30.3% to 31.9% 32.3% to 35.6% 30.3% to 35.7% 32.0% to 37.4% Expected dividends 0% 0% 0% 0% Weighted-average fair value of options granted $17.99 $14.09 $13.42 $11.82 The total stock-based compensation expense for the three and nine months ended October 1, 2016 was $3.5 million and $9.7 million , respectively. The total stock-based compensation expense for the three and nine months ended October 3, 2015 was $2.7 million and $8.1 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 1, 2016 was $283.8 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 1, 2016 was $174.8 million . The aggregate intrinsic value of options exercised during the three and nine months ended October 1, 2016 was $11.8 million and $37.1 million , respectively. The unrecognized stock-based compensation expense related to unvested options and RSUs granted after January 1, 2006 was $28.9 million and $0.2 million as of October 1, 2016 , respectively. The weighted-average remaining contractual term of options and RSUs outstanding with an exercise price less than the closing price of the Company’s common stock as of October 1, 2016 was 3.5 years and less than 1.0 year, respectively. 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 1, 2016 was 3.9 years. No RSUs were exercisable as of October 1, 2016 .

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 01, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company leases certain facilities in North and South America, Europe, the Middle East and Asia under operating lease agreements expiring at various dates through May 2026 . 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 each of October 1, 2016 and January 2, 2016 , rent expense accrued in excess of the amount paid aggregated $0.6 million and $0.2 million , respectively, which is classified within other current and non-current liabilities in the accompanying condensed consolidated balance sheets. In addition, the Company leases automobiles in the U.S. and Europe that are classified as operating leases and expire at various dates through September 2020 . 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, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): As of October 1, 2016 Operating Leases Capital Leases Total 2016 (balance of year) $ 1,501 $ 11 $ 1,512 2017 5,819 100 5,919 2018 5,696 14 5,710 2019 4,641 8 4,649 2020 2,607 4 2,611 Thereafter 5,885 — 5,885 Total $ 26,149 $ 137 $ 26,286 In January 2016, the Company entered into the Third Amendment to Lease with The Irvine Company LLC (Third Amendment) relating to the rental of space in a building located in Irvine, California pursuant to a Single-Tenant Lease originally dated June 22, 2012. Pursuant to the terms of the Third Amendment, the Company’s current lease of certain premises was set to terminate in exchange for the Company’s leasing of approximately 70,700 square feet of space in another building in Irvine, California, located near the Company’s new corporate headquarters (New Premises). The Third Amendment also extended the term of the original lease to the end of the month in which the ten-year anniversary of the date of commencement (Commencement Date) of the lease for the New Premises occurs. The Commencement Date will occur following the completion of certain improvements to the New Premises, which the Company currently expects to be no later than November 2016. In July 2016, the Company entered into a Single-Tenant Lease with The Irvine Company LLC (New Lease), relating to the rental of space in a building located in Irvine, California that was to have been terminated by the Third Amendment. The date of commencement of the New Lease will be December 2016, and the New Lease will continue in effect for a period of ten years, until November 2026. Rental expense related to operating leases was $1.5 million and $4.5 million for the three and nine months ended October 1, 2016 , respectively, and $1.2 million and $4.1 million for the three and nine months ended October 3, 2015 , respectively. Included in the future capital lease payments as of October 1, 2016 is interest aggregating less than $0.1 million . Employee Retirement Savings Plan The Company sponsors a qualified defined contribution plan or 401(k) plan, the Masimo Retirement Savings Plan (MRSP), 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 MRSP on a discretionary basis. The Company contributed $0.5 million and $1.6 million to the MRSP for the three and nine months ended October 1, 2016 , respectively, and $0.4 million and $1.4 million to the MRSP for the three and nine months ended October 3, 2015 respectively. In addition, the Company also sponsors various defined contribution plans in certain locations outside of the United States (Subsidiary Plans). For the three and nine months ended October 1, 2016 , the Company contributed $0.1 million and $0.2 million , respectively, to the Subsidiary Plans. For the three and nine months ended October 3, 2015 , the Company contributed $0.1 million and $0.2 million , respectively, to the Subsidiary Plans. Employment and Severance Agreements On November 4, 2015, the Company entered into an Amended and Restated Employment Agreement with Joe Kiani, the Company’s Chairman and Chief Executive Officer (the 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, including a change in control), 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) upon the vesting of certain RSUs 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 RSUs and the cash payment will each be reduced by 10% of the original amount each year (beginning on January 1, 2018) so that after December 31, 2027, no Special Payment will be due to Mr. Kiani upon a Qualifying Termination. As of October 1, 2016 , the expense related to the Special Payment that would be recognized in the Company’s condensed consolidated financial statements upon the occurrence of a Qualifying Termination under the Restated Employment Agreement was approximately $195.6 million . As of October 1, 2016 , 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 $42.8 million of purchase commitments as of October 1, 2016 , 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 1, 2016 , the Company had approximately $0.5 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 1, 2016 , the Company had 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 time deposits and money market accounts with major financial institutions. As of October 1, 2016 , the Company had $125.0 million of bank balances, of which $2.1 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries’ deposit insurance organizations. As of October 1, 2016 , the Company had $62.5 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 1, 2016 , revenue from the sale of the Company’s products to U.S. hospitals that are members of GPOs amounted to $94.5 million and $279.8 million , respectively, and for 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. For the three months ended October 1, 2016 , the Company had sales through two just-in-time distributors that represented 14.0% and 13.2% of total revenue, respectively. For the three months ended October 3, 2015 , the Company had sales through the same two just-in-time distributors that represented 14.5% and 11.6% of total revenue, respectively. For the nine months ended October 1, 2016 , the Company had sales through the same two just-in-time distributors that represented 15.0% and 12.4% of total revenue, respectively. For the nine months ended October 3, 2015 , the Company had sales through the same two just-in-time distributors that represented 14.6% and 12.0% of total revenue, respectively. As of October 1, 2016 , one just-in-time distributor represented 11.5% of the Company’s accounts receivable balance. As of January 2, 2016, two just-in-time distributors represented 5.5% and 5.3% of the Company’s accounts receivable balance, respectively. For the nine months ended October 1, 2016 and October 3, 2015 , the Company recorded $23.2 million and $23.3 million , respectively, in royalty revenues from Medtronic. 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 Settlement Agreement (as defined below). 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 and 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. Philips has indicated that it intends to appeal the damages award once a final judgment has been rendered in the case. On September 18, 2015, the Court set a schedule for the trials related to the Company’s second phase patents against Philips and Philips’ antitrust counterclaims and patent misuse defense, with both trials scheduled to take place in the first quarter of 2017. On November 16, 2015, the Company asserted three antitrust claims against Philips. On December 9, 2015, the Court dismissed with prejudice Philips’ sole remaining patent infringement claim against the Company. On January 4, 2016, the Court granted Philips’ motion to strike the Company’s antitrust counterclaims, ruling that the Company must bring these claims in a separate litigation. On March 4, 2016, the Company filed an additional case against Philips alleging antitrust violations and patent infringement in the District of Delaware. On May 31, 2016, Philips filed a motion to dismiss the Company’s antitrust claims, which is pending before the Court. On June 27, 2016, Philips filed a motion for summary judgment, and a motion to exclude certain testimony by the Company’s experts with respect to the Company’s second phase patent infringement claims, both of which are pending before the Court. On September 12, 2016, Philips filed a motion seeking a bench trial on its antitrust counterclaims and patent-misuse defense, which is pending before the Court. On October 19, 2016, the Company filed a motion for summary judgment with respect to Philips’ antitrust counterclaims and patent-misuse defense, which is pending before the Court. On October 19, 2016, Philips filed a motion to exclude certain testimony by the Company’s experts with respect to Philips’ antitrust counterclaims and patent-misuse defense, which is pending before the Court. On October 31, 2016, the Court denied all of Philips’ motions for summary judgment of no literal infringement with respect to the Company’s second phase patent infringement claims, and denied in part and granted in part Philips’ motions asserting noninfringement under the doctrine of equivalents. The Court also denied Philips’ motion for summary judgment of no willful infringement of one of the Company’s second phase patents, and granted one such motion as to another such patent. The Court denied Philips’ motion asserting the Company is not entitled to lost profits and denied Philips’ motion asserting that it had a noninfringing alternative to the Company’s second phase patents. The Court also granted the Company’s motion for summary judgment that certain Philips products infringe one of the Company’s second phase patents and held that the Company is entitled to lost profits as to certain second phase patents. The Court also denied various other motions asserting that the Company’s second phase patents are invalid, and granted in part and denied in part various motions regarding the availability of certain lost profits and the admissibility of certain expert testimony. The Company believes that it has good and substantial defenses to the remaining antitrust 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. 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 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 appealed the District Court’s decision and an argument on the appeal was held in the Ninth Circuit Court of Appeals on February 1, 2016. On February 19, 2016, the Ninth Circuit Court of Appeals affirmed the summary judgment of the District Court. 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 (the Arbitration Award). 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. The former sales representatives appealed the District Court’s decision, and the appeal argument was held in the Ninth Circuit Court of Appeals on February 1, 2016. On February 19, 2016, the Ninth Circuit Court of Appeals reversed the decision of the District Court vacating the award, and remanded the case to the District Court with instructions to confirm the Arbitration Award. On March 23, 2016, the District Court entered final judgment confirming the Arbitration Award, and on April 8, 2016 the Company remitted $6.2 million to the plaintiffs in full payment of the Arbitration Award and related interest. On May 18, 2016, the Company filed a petition for a writ of certiorari with the United States Supreme Court seeking reversal of the decision of the Ninth Circuit Court of Appeals. On October 3, 2016, the Supreme Court denied such petition. On July 20, 2016, the Company was notified that its insurance carrier was seeking reimbursement of certain defense costs previously advanced by the carrier in light of the decision by the Ninth Circuit Court of Appeals reinstating the Arbitration Award. The Company believes it has good and substantial grounds to dispute the coverage determination of the insurance carrier, but there is no guarantee that the Company will prevail. The Company has not recorded a charge related to this insurance coverage dispute and is unable to determine whether any loss will ultimately occur. However, the Company estimates that the potential incremental loss related to this insurance coverage dispute would approximate $2.6 million plus potential interest at the rate of 10% per annum from the date such payments were advanced by the insurance carrier. 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 Company’s 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 appellate hearing in the D.C. Circuit Court of Appeals is currently scheduled for November 7, 2016. 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 ultimately 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. On August 13, 2015, the U.S. District Court for the Northern District of Alabama granted summary judgment in favor of the Company on all claims. The plaintiffs have appealed the U.S. District Court for the Northern District of Alabama’s decision. Oral arguments before the Eleventh Circuit Court of Appeals are currently scheduled for December 13, 2016. The Company is unable to determine whether any loss will ultimately 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 filed three separate inter partes review petitions (IPR Petitions) with the Patent Trial and Appeal Board (PTAB) of the U.S. Patent and Trademark Office (PTO), challenging several of the claims of the Company’s U.S. Patent Nos. 7,496,393 (the ‘393 Patent), titled “Signal processing apparatus”, which expires in September 2016, and 8,560,034 (the ‘034 Patent), also titled “Signal processing apparatus”, which expires in October 2018. On April 27, 2016, the PTAB denied Medtronic’s IPR Petitions with respect to the ‘034 Patent. On April 28, 2016, the PTAB granted Medtronic’s IPR Petition for review of certain claims of the ‘393 Patent, and denied Medtronic’s IPR Petition for review of other claims of the ‘393 Patent. On September 1, 2016, the Company entered into the Third Amendment to the Settlement Agreement and Release of Claims (Settlement Agreement) with Cercacor Laboratories, Inc., Medtronic, Covidien LP, Nellcor Puritan Bennett LLC and Covidien Holding Inc. (collectively, Medtronic Parties), pursuant to which the Company and the Medtronic Parties agreed not to assert, prior to December 31, 2019: (1) that any of the intellectual property rights of another party are invalid, unpatentable or unenforceable, or (2) any claim of patent infringement against another party based on products of such party that were commercially available as of September 1, 2016. The Company and the Medtronic Parties also agreed to jointly request termination of the IPR petition for review of the claims of the ‘393 Patent, and such IPR petition was dismissed by the PTO on September 23, 2016. Furthermore, the Medtronic Parties agreed to continue paying the Company royalties through October 6, 2018, after which no more royalties will be due under the Settlement Agreement. 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. 01, 2016
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 and long-lived assets. 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 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Geographic area by destination: United States $ 114,563 71.5 % $ 101,471 70.2 % $ 345,113 70.7 % $ 314,983 71.7 % Europe, Middle East and Africa 23,929 14.9 25,729 17.8 81,887 16.8 74,125 16.9 Asia and Australia 16,630 10.4 13,657 9.4 46,815 9.6 38,226 8.7 North and South America (excluding United States) 5,164 3.2 3,746 2.6 14,368 2.9 12,238 2.7 Total product revenue $ 160,286 100.0 % $ 144,603 100.0 % $ 488,183 100.0 % $ 439,572 100.0 % The Company’s consolidated long-lived assets and net assets by geographic area are (in thousands, except percentages): October 1, 2016 January 2, 2016 Long-lived assets by geographic area: United States $ 221,676 96.4 % $ 203,553 96.8 % International 8,189 3.6 6,770 3.2 Total $ 229,865 100.0 % $ 210,323 100.0 %

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 01, 2016
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 2, 2016 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 2, 2016 (fiscal year 2015 ), filed with the SEC on February 24, 2016 . The results for the nine months ended October 1, 2016 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2016 (fiscal year 2016 ) 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 through January 2, 2016, Cercacor Laboratories, Inc. (Cercacor), the variable interest entity (VIE) of which the Company was the primary beneficiary. Effective January 3, 2016, the Company discontinued consolidating Cercacor within its consolidated financial statements based on its determination that the Company was no longer the primary beneficiary of Cercacor. 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 week 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 2016 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 to apply the fair value option under this guidance to specific assets or liabilities on a contract-by-contract basis. There were no transfers between Level 1, Level 2 and Level 3 inputs during the nine months ended October 1, 2016 . The Company carries cash and cash equivalents at cost, which approximates fair value. As of October 1, 2016 and January 2, 2016 , 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 net realizable value. Cost is determined using a standard cost method, which approximates the first in, first out method, 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 in inventory.
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 improvements 7 to 15 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 7 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.
Intangible Assets	Intangible Assets The Company’s policy is to renew its patents and trademarks. Total renewal costs for patents and trademarks were $0.5 million and $0.4 million for the nine months ended October 1, 2016 and October 3, 2015 , respectively. As of October 1, 2016 , the weighted-average number of years until the next renewal was one year for patents and six 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 1, 2016 and October 3, 2015 .
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 certain monitoring-related equipment, software, installation, training and/or warranty support 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 to OEM customers who incorporate the Company’s embedded software technology into their multi-parameter monitoring devices. 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-related 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 six years. The sensors are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. The Company generally does not recognize any revenue when the monitoring-related equipment and software are delivered to the hospitals, but rather recognizes revenue for these delivered elements on a pro-rata basis as the sensors are delivered under the long-term purchase commitment, when installation and training are complete. Accordingly, the cost of the monitoring-related 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. Some of the Company’s long-term sensor contracts also contain provisions for certain cash payments to be made directly to the end-user hospital customer at the inception of the arrangement. These cash payments are generally treated as prepaid discounts that are deferred and amortized on a straight-line basis as contra-revenue 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 Ltd.), 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 forty-eight 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 six 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 1, October 3, Warranty accrual, beginning of period $ 1,222 $ 1,416 Accrual for warranties issued 722 679 Changes to pre-existing warranties (including changes in estimates) 99 (52 ) Settlements made (751 ) (828 ) Warranty accrual, end of period $ 1,292 $ 1,215
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 1, 2016 and October 3, 2015 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 1, 2016 and October 3, 2015 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 and the vesting of restricted share units (RSUs). For the three and nine months ended October 1, 2016 , 0.1 million and 1.4 million , respectively, weighted options to purchase shares of common stock 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 October 3, 2015 , 0.5 million and 0.6 million , respectively, weighted options to purchase shares of common stock 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 October 1, 2016 , certain RSUs were considered contingently issuable shares as their vesting is contingent upon the occurrence of certain future events. Since such events had not occurred and were not considered probable of occurring as of October 1, 2016 , 2.7 million weighted average shares related to such RSUs have been excluded from the calculation of potential shares. 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 to determine its net income attributable to its stockholders. Since the Company discontinued consolidating Cercacor effective January 3, 2016, a similar adjustment was not required for the three and nine months ended October 1, 2016 . 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 Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new standard makes several modifications to Topic 718 related to the accounting for forfeitures, employer tax withholding on stock-based compensation and the financial statement presentation of excess tax benefits or deficiencies. ASU 2016-09 also clarifies the statement of cash flows presentation for certain components of stock-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this standard during the first quarter of the fiscal year ending December 31, 2016. The early adoption of this standard resulted in a $7.7 million reduction to the Company’s income tax provision for the nine months ended October 1, 2016 . 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 adoption permitted. The Company adopted this standard during the first quarter of the fiscal year ending December 31, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The new standard amended the existing accounting standards for the Statement of Cash Flows and provides guidance on eight specific cash flow issues. ASU 2016-15 is effective for annual and interim fiscal reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the expected impact of this standard but does not expect it to have a material impact on its consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13). The new standard requires entities to use a current expected credit loss model, which is a new impairment model based on expected losses rather than incurred losses. Under this model, an entity would recognize an impairment allowance equal to its current estimate of all contractual cash flows that the entity does not expect to collect. The entity’s estimate would consider relevant information about past events, current conditions, and reasonable and supportable forecasts. ASU 2016-13 is effective for annual and interim fiscal reporting periods beginning after December 15, 2019, with early adoption permitted for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the expected impact of this standard but does not expect it to have a material impact on its consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842): (ASU 2016-02 ) . The new standard requires lessees to recognize most leases on their balance sheets but continue to recognize lease expenses in their income statement in a manner similar to current practice. The new standard states that a lessee will recognize a lease liability for the obligation to make lease payments and a right-of-use asset for the right to use the underlying asset for the lease term. Expense related to leases determined to be operating leases will be recognized on a straight-line basis, while those determined to be financing leases will be recognized following a front-loaded expense profile in which interest and amortization are presented separately in the income statement. ASU 2016-02 is effective for annual and interim fiscal reporting periods beginning after December 15, 2018, and early application is permitted. The Company is currently evaluating the expected impact of this standard on its consolidated financial statements, but anticipates that, among other things, the required recognition of a lease liability and related right-of-use asset will significantly increase both the assets and liabilities recognized and reported on its balance sheet. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue (Topic 606): Revenue from Contracts with Customers (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 (ASU 2015-14), 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. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations under FASB ASC Topic 606 (ASU 2016-08), which provides guidance on principal versus agent considerations. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing (ASU 2016-10), which amended ASU 2014-09 by providing clarity in identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued Accounting Standards Update No. 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients (ASU 2016-12), which further amended ASU 2016-09 by providing additional clarity in recognizing revenue from contracts that have been modified prior to the transition period to the new standard, as well as providing additional disclosure requirements for businesses and other organizations that make the transition to the new standard by adjusting amounts from prior reporting periods via retrospective application. The Company is continuing to evaluate the expected impact of this standard on its consolidated financial statements but anticipates, among other things, that the adoption of such standard will result in the acceleration of certain revenue from product sales to distributors that is currently deferred under the “sell-through” method, as well as the capitalization and deferral of certain contract-related costs that are currently expensed when incurred.

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Oct. 01, 2016
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 1, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 62,488 $ — $ — $ 62,488 $ 62,488 Level 1: Bank Time Deposits 62,500 — — 62,500 62,500 Money Market Funds 1,000 — — 1,000 1,000 Subtotal 63,500 — — 63,500 63,500 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 125,988 $ — $ — $ 125,988 $ 125,988 January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 57,168 $ — $ — $ 57,168 $ 57,168 Level 1: Bank Time Deposits 55,000 — — 55,000 55,000 Money Market Funds 20,149 — — 20,149 20,149 Subtotal 75,149 — — 75,149 75,149 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 132,317 $ — $ — $ 132,317 $ 132,317 January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 57,168 $ — $ — $ 57,168 $ 57,168 Level 1: Bank Time Deposits 55,000 — — 55,000 55,000 Money Market Funds 20,149 — — 20,149 20,149 Subtotal 75,149 — — 75,149 75,149 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 132,317 $ — $ — $ 132,317 $ 132,317
Changes in Product Warranty Accrual	Changes in the product warranty accrual were as follows (in thousands): Nine Months Ended October 1, October 3, Warranty accrual, beginning of period $ 1,222 $ 1,416 Accrual for warranties issued 722 679 Changes to pre-existing warranties (including changes in estimates) 99 (52 ) Settlements made (751 ) (828 ) Warranty accrual, end of period $ 1,292 $ 1,215
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 $ (4,739 ) Foreign currency translation adjustments (280 ) Accumulated other comprehensive loss, end of period $ (5,019 )
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 1, October 3, October 1, October 3, Net income attributable to Masimo Corporation stockholders: Net income including noncontrolling interest $ 27,773 $ 17,929 $ 85,373 $ 56,447 Net loss attributable to the noncontrolling interest — 1,396 — 2,752 Net income attributable to Masimo Corporation stockholders $ 27,773 $ 19,325 $ 85,373 $ 59,199 Basic net income per share attributable to Masimo Corporation stockholders: Net income attributable to Masimo Corporation stockholders $ 27,773 $ 19,325 $ 85,373 $ 59,199 Weighted-average shares outstanding - basic 49,477 50,974 49,386 51,653 Basic net income per share attributable to Masimo Corporation stockholders $ 0.56 $ 0.38 $ 1.73 $ 1.15 Diluted net income per share attributable to Masimo Corporation stockholders: Weighted-average shares outstanding - basic 49,477 50,974 49,386 51,653 Diluted share equivalent: stock options and RSUs 4,088 2,712 3,451 2,293 Weighted-average shares outstanding - diluted 53,565 53,686 52,837 53,946 Diluted net income per share attributable to Masimo Corporation stockholders $ 0.52 $ 0.36 $ 1.62 $ 1.10
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Supplemental cash flow information includes the following (in thousands): Nine Months Ended October 1, October 3, Cash paid during the year for: Interest (net of amounts capitalized) $ 2,603 $ 1,548 Income taxes 25,753 29,854 Noncash investing and financing activities: Unpaid purchases of property, plant and equipment $ 1,232 $ 7,093 Unsettled common stock proceeds from option exercises 476 —

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 01, 2016
Inventory Disclosure [Abstract]
Components of Inventory	Inventories consist of the following (in thousands): October 1, January 2, Raw materials $ 31,469 $ 25,781 Work-in-process 6,174 4,337 Finished goods 29,404 31,920 Total inventories $ 67,047 $ 62,038

Other Current Assets (Tables)

Other Current Assets (Tables)	9 Months Ended
	Oct. 01, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets [Table Text Block]	Other current assets consist of the following (in thousands): October 1, January 2, Prepaid expenses $ 13,023 $ 9,930 Prepaid income taxes 7,996 2,404 Royalties receivable 7,500 7,200 Employee loans and advances 301 320 Due from related party 29 — Other current assets 8,364 3,973 Total other current assets $ 37,213 $ 23,827

Property and Equipment Proper27

Property and Equipment Property and Equipment (Tables)	9 Months Ended
	Oct. 01, 2016
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 improvements 7 to 15 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 7 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 1, January 2, Building and building improvements $ 85,564 $ 78,877 Machinery and equipment 43,184 42,460 Land 23,762 23,738 Computer equipment 15,002 15,023 Tooling 13,234 13,079 Furniture and office equipment 9,502 8,885 Leasehold improvements 8,162 7,734 Demonstration units 979 973 Vehicles 45 45 Construction-in-progress 3,938 7,124 Total property and equipment 203,372 197,938 Accumulated depreciation and amortization (70,222 ) (65,472 ) Property and equipment, net $ 133,150 $ 132,466

Intangible Assets Intangible 28

Intangible Assets Intangible Assets (Tables)	9 Months Ended
	Oct. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets, net, consist of the following (in thousands): October 1, January 2, Patents $ 19,449 $ 21,619 Customer relationships 7,669 7,669 Licenses (1) 7,500 — Acquired technology 5,580 5,580 Trademarks 3,733 3,944 Capitalized software development costs 2,539 2,539 Other 4,444 2,541 Total intangible assets 50,914 43,892 Accumulated amortization (21,098 ) (16,336 ) Intangible assets, net $ 29,816 $ 27,556
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated amortization expense for future fiscal years is as follows (in thousands): Fiscal year Amount 2016 (balance of year) $ 4,424 2017 4,096 2018 3,842 2019 3,479 2020 3,123 Thereafter 10,852 Total $ 29,816

Accrued and Other Current Lia29

Accrued and Other Current Liabilities (Tables)	9 Months Ended
	Oct. 01, 2016
Accrued Liabilities [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	Accrued and Other Current Liabilities Accrued and other current liabilities consist of the following (in thousands): October 1, January 2, Accrued customer rebates, fees and reimbursements $ 25,066 $ 11,857 Accrued taxes 4,661 5,263 Accrued legal fees 2,186 5,785 Income taxes payable 1,941 2,777 Accrued warranty 1,292 1,222 Accrued donations 557 5,612 Accrued stock repurchases — 4,815 Accrued arbitration award — 5,391 Other 7,164 4,351 Total accrued and other current liabilities $ 42,867 $ 47,073

Long-Term Debt Debt disclosure

Long-Term Debt Debt disclosure (Tables)	9 Months Ended
	Oct. 01, 2016
Debt Instrument [Line Items]
Schedule of Debt [Table Text Block]	October 1, January 2, Revolving line of credit $ 152,500 $ 185,000 Long term portion of capital lease obligations acquisition — 71 Total long term debt $ 152,500 $ 185,071

Other Non-Current Liabilities (

Other Non-Current Liabilities (Tables)	9 Months Ended
	Oct. 01, 2016
Other Liabilities, Long Term [Abstract]
Components Of Other Liabilities Long Term Table [Table Text Block]	Other non-current liabilities consist of the following (in thousands): October 1, January 2, Unrecognized tax benefit $ 8,374 $ 7,747 Deferred revenue, long-term 375 298 Deferred tax liability, long-term 194 194 Other 488 80 Total other non-current liabilities $ 9,431 $ 8,319

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	The number of RSUs issued and outstanding under all of the Company’s stock option plans are as follows (in thousands, except for grant date fair value amounts): Nine Months Ended Units Weighted Average Grant Date Fair Value RSUs outstanding, beginning of period 2,703 $ 41.45 Granted 6 43.09 Canceled — — Expired — — Vested — — RSUs outstanding, end of period 2,709 $ 41.45
Number and Weighted Average Exercise Price of Options Issued and Outstanding under all Stock Option Plans	The number and weighted-average exercise price of options issued and outstanding under all 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 9,202 $ 25.46 Granted 1,257 39.34 Canceled (141 ) 29.32 Exercised (1,292 ) 20.43 Options outstanding, end of period 9,026 $ 28.05 Options exercisable, end of period 5,222 $ 26.01
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 1, October 3, October 1, October 3, Risk-free interest rate 1.0% to 1.3% 1.5% to 1.8% 1.0% to 1.9% 1.3% to 1.9% Expected term (in years) 5.7 5.5 5.7 5.5 Estimated volatility 30.3% to 31.9% 32.3% to 35.6% 30.3% to 35.7% 32.0% to 37.4% Expected dividends 0% 0% 0% 0% Weighted-average fair value of options granted $17.99 $14.09 $13.42 $11.82

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 01, 2016
Revenue from External Customer [Line Items]
Future Minimum Lease Payments Under Operating and Capital Leases	Future minimum lease payments, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): As of October 1, 2016 Operating Leases Capital Leases Total 2016 (balance of year) $ 1,501 $ 11 $ 1,512 2017 5,819 100 5,919 2018 5,696 14 5,710 2019 4,641 8 4,649 2020 2,607 4 2,611 Thereafter 5,885 — 5,885 Total $ 26,149 $ 137 $ 26,286

Segment Information and Enter34

Segment Information and Enterprise Reporting (Tables)	9 Months Ended
	Oct. 01, 2016
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 (in thousands, except percentages): October 1, 2016 January 2, 2016 Long-lived assets by geographic area: United States $ 221,676 96.4 % $ 203,553 96.8 % International 8,189 3.6 6,770 3.2 Total $ 229,865 100.0 % $ 210,323 100.0 %
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 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Geographic area by destination: United States $ 114,563 71.5 % $ 101,471 70.2 % $ 345,113 70.7 % $ 314,983 71.7 % Europe, Middle East and Africa 23,929 14.9 25,729 17.8 81,887 16.8 74,125 16.9 Asia and Australia 16,630 10.4 13,657 9.4 46,815 9.6 38,226 8.7 North and South America (excluding United States) 5,164 3.2 3,746 2.6 14,368 2.9 12,238 2.7 Total product revenue $ 160,286 100.0 % $ 144,603 100.0 % $ 488,183 100.0 % $ 439,572 100.0 %

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) - Recurring - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	$ 125,988	$ 132,317
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	125,988	132,317
Cash and Cash Equivalents	125,988	132,317
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	62,488	57,168
Gross Unrealized Gains		0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	62,488	57,168
Cash and Cash Equivalents	62,488	57,168
Level 1:
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	63,500	75,149
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	63,500	75,149
Cash and Cash Equivalents	63,500	75,149
Level 1: | Bank Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	62,500	55,000
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	62,500	55,000
Cash and Cash Equivalents	62,500	55,000
Level 1: | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Adjusted Basis Cost	1,000	20,149
Gross Unrealized Gains	0	0
Gross Unrealized (Losses)	0	0
Estimated Fair Value	1,000	20,149
Cash and Cash Equivalents	1,000	20,149
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 Accoun36

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016USD ($)shares	Oct. 03, 2015USD ($)shares	Oct. 01, 2016USD ($)segmentshares	Oct. 03, 2015USD ($)shares
Summary Of Significant Accounting Policies [Line Items]
Excess Tax Benefit from Share-based Compensation, Operating Activities			$ 7,700,000
Number of Sources of Product Revenue | segment			4
Interest Paid, Net			$ 2,603,000	$ 1,548,000
Depreciation			8,600,000	9,500,000
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			6 years
Options to purchase of shares of common stock | shares	100	500	1,400	600
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 1, 2016 and October 3, 2015 .
Income Taxes Paid			$ 25,753,000	$ 29,854,000
Capital Expenditures Incurred but Not yet Paid			1,232,000	7,093,000
Proceeds from stock options exercised, unsettled at period end			476,000	0
Patents
Summary Of Significant Accounting Policies [Line Items]
Finite-Lived Intangible Assets, Cost Incurred to Renew or Extend			$ 500,000	$ 400,000
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			6 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			48 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			15 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 | Minimum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			5 years
Computer equipment | Maximum
Summary Of Significant Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life			7 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
Restricted Stock Units (RSUs) [Member]
Summary Of Significant Accounting Policies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares			6
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member]
Summary Of Significant Accounting Policies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares			2,700

Summary of Significant Accoun37

Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Warranty accrual, beginning of period	$ 1,222	$ 1,416
Provision for warranty costs	722	679
Product Warranty Accrual, Preexisting, Increase (Decrease)	99	(52)
Settlements made	(751)	(828)
Warranty accrual, end of period	$ 1,292	$ 1,215

Summary of Significant Accoun38

Summary of Significant Accounting Policies - Schedule of Change in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Accounting Policies [Abstract]
Accumulated other comprehensive loss, beginning of period			$ (4,739)
Foreign currency translation adjustments	$ (470)	$ 112	(280)	$ (2,246)
Accumulated other comprehensive loss, end of period	$ (5,019)		$ (5,019)

Summary of Significant Accoun39

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. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Accounting Policies [Abstract]
Options to purchase of shares of common stock	100	500	1,400	600
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest	$ 27,773	$ 17,929	$ 85,373	$ 56,447
Net loss attributable to the noncontrolling interest	0	1,396	0	2,752
Net income attributable to Masimo Corporation stockholders	27,773	19,325	85,373	59,199
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$ 27,773	$ 19,325	$ 85,373	$ 59,199
Weighted average shares outstanding - basic (in shares)	49,477	50,974	49,386	51,653
Basic net income per share attributable to Masimo Corporation stockholders (in usd per share)	$ 0.56	$ 0.38	$ 1.73	$ 1.15
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted average shares outstanding - basic (in shares)	49,477	50,974	49,386	51,653
Diluted share equivalent: stock options (in shares)	4,088	2,712	3,451	2,293
Weighted average shares outstanding - diluted (in shares)	53,565	53,686	52,837	53,946
Diluted net income per share attributable to Masimo Corporation stockholders (in usd per share)	$ 0.52	$ 0.36	$ 1.62	$ 1.10

Cash and Cash Equivalents - Add

Cash and Cash Equivalents - Additional Information (Detail) $ in Millions	Oct. 01, 2016USD ($)
Cash and Cash Equivalents [Abstract]
Cash balance	$ 125
Time Deposits, at Carrying Value	$ 62.5

Variable Interest Entity (VIE)

Variable Interest Entity (VIE) - Additional Information (Detail)	Jan. 02, 2007company	Apr. 02, 2016USD ($)
Variable Interest Entity [Abstract]
Number of Companies with Rights to Intellectual Property | company	2
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount | $		$ 0.3

Variable Interest Entity Variab

Variable Interest Entity Variable Interest Entity (VIE) -Consolidating Statement of Operations (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Sales Revenue, Goods, Net	$ 160,286,000	$ 144,603,000	$ 488,183,000	$ 439,572,000
Royalty	7,335,000	7,972,000	23,241,000	23,266,000
Total revenue	167,621,000	152,575,000	511,424,000	462,838,000
Cost of goods sold	57,499,000	50,343,000	171,954,000	154,600,000
Gross profit	110,122,000	102,232,000	339,470,000	308,238,000
Selling, general and administrative	57,845,000	59,607,000	184,244,000	182,072,000
Research and Development Expense	15,673,000	14,485,000	44,856,000	42,808,000
Operating Expenses	73,518,000	74,092,000	229,100,000	224,880,000
Operating Income (Loss)	36,604,000	28,140,000	110,370,000	83,358,000
Nonoperating Income (Expense)	(546,000)	(1,050,000)	423,000	(2,022,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	36,058,000	27,090,000	110,793,000	81,336,000
Provision for income taxes	8,285,000	9,161,000	25,420,000	24,889,000
Net income including noncontrolling interest	27,773,000	17,929,000	85,373,000	56,447,000
Net Income (Loss) Attributable to Noncontrolling Interest	0	1,396,000	0	2,752,000
Net Income (Loss) Attributable to Parent	$ 27,773,000	19,325,000	$ 85,373,000	59,199,000
Parent Company [Member]
Sales Revenue, Goods, Net		144,603,000		439,572,000
Royalty		7,972,000		23,266,000
Total revenue		152,575,000		462,838,000
Cost of goods sold		52,065,000		158,917,000
Gross profit		100,510,000		303,921,000
Selling, general and administrative		58,911,000		180,264,000
Research and Development Expense		12,103,000		37,587,000
Operating Expenses		71,014,000		217,851,000
Operating Income (Loss)		29,496,000		86,070,000
Nonoperating Income (Expense)		(1,050,000)		(2,022,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest		28,446,000		84,048,000
Provision for income taxes		9,121,000		24,849,000
Net income including noncontrolling interest		19,325,000		59,199,000
Net Income (Loss) Attributable to Noncontrolling Interest				0
Net Income (Loss) Attributable to Parent		19,325,000		59,199,000
Cercacor Laboratories [Member]
Sales Revenue, Goods, Net		0		0
Royalty		1,628,000		4,473,000
Total revenue		1,628,000		4,473,000
Cost of goods sold		0		0
Gross profit		1,628,000		4,473,000
Selling, general and administrative		602,000		1,964,000
Research and Development Expense		2,382,000		5,221,000
Operating Expenses		2,984,000		7,185,000
Operating Income (Loss)		(1,356,000)		(2,712,000)
Nonoperating Income (Expense)		574,000		574,000
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest		(782,000)		(2,138,000)
Provision for income taxes		40,000		40,000
Net income including noncontrolling interest		(822,000)		(2,178,000)
Net Income (Loss) Attributable to Noncontrolling Interest		0		0
Net Income (Loss) Attributable to Parent		(822,000)		(2,178,000)
Cercacor Laboratories Inc Eliminations [Member]
Sales Revenue, Goods, Net		0		0
Royalty		(1,628,000)		(4,473,000)
Total revenue		(1,628,000)		(4,473,000)
Cost of goods sold		(1,722,000)		(4,317,000)
Gross profit		94,000		(156,000)
Selling, general and administrative		94,000		(156,000)
Research and Development Expense		0		0
Operating Expenses		94,000		(156,000)
Operating Income (Loss)		0		0
Nonoperating Income (Expense)		(574,000)		(574,000)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest		(574,000)		(574,000)
Provision for income taxes		0		0
Net income including noncontrolling interest		(574,000)		(574,000)
Net Income (Loss) Attributable to Noncontrolling Interest		1,396,000		2,752,000
Net Income (Loss) Attributable to Parent		822,000		2,178,000
Percentage of Revenue [Member]
Sales Revenue, Goods, Net		0.948		0.950
Royalty		0		0
Total revenue		0		0
Cost of goods sold		0		0
Gross profit		0		0
Selling, general and administrative		0		0
Research and Development Expense		0		0
Operating Expenses		0		0
Operating Income (Loss)		0		0
Nonoperating Income (Expense)		0		0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest		0		0
Provision for income taxes		0		0
Net income including noncontrolling interest		0		0
Net Income (Loss) Attributable to Noncontrolling Interest		0		0
Net Income (Loss) Attributable to Parent		0		0
Percentage of Revenue [Member] | Parent Company [Member]
Sales Revenue, Goods, Net		0.948		0.950
Royalty		0		0
Total revenue		0		0
Cost of goods sold		0		0
Gross profit		0		0
Selling, general and administrative		0		0
Research and Development Expense		0		0
Operating Expenses		0		0
Operating Income (Loss)		0		0
Nonoperating Income (Expense)		0		0
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest		0		0
Provision for income taxes		0		0
Net income including noncontrolling interest		0		0
Net Income (Loss) Attributable to Noncontrolling Interest		0		0
Net Income (Loss) Attributable to Parent		$ 0		$ 0

Related Party Transactions (Det

Related Party Transactions (Details)	Jan. 26, 2016ft²	Oct. 01, 2016USD ($)death	Oct. 03, 2015USD ($)	Oct. 01, 2016USD ($)ft²death	Oct. 03, 2015USD ($)	Jan. 02, 2016USD ($)
Related Party Transaction [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²	70,700			16,830
Estimate of Annual Preventable Hospital Deaths Prevented by 2020 | death		200,000		200,000
Cercacor Laboratories [Member]
Related Party Transaction [Line Items]
Payments for Royalties		$ 1,600,000	$ 1,700,000	$ 4,700,000	$ 4,300,000
Payment for Administrative Fees		100,000	100,000	100,000	100,000
Costs Reimbursed			$ 100,000	100,000	$ 300,000
Operating Leases, Income Statement, Sublease Revenue		100,000		200,000
Related Party Transaction, Other Revenues from Transactions with Related Party		0		100,000
Related Party Transaction, Due from (to) Related Party		$ 100,000		100,000		$ 1,100,000
Variable Interest Entity, Not Primary Beneficiary [Member] | Minimum
Related Party Transaction [Line Items]
Payments for Royalties				$ 5,000,000

Inventories - Components of Inv

Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 31,469	$ 25,781
Work-in-process	6,174	4,337
Finished goods	29,404	31,920
Total inventories	$ 67,047	$ 62,038

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016	Oct. 03, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Royalty Receivable	$ 7,500	$ 7,200
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expense, Current	13,023	9,930
Prepaid income taxes	7,996	2,404
Due from Employees, Current	301	320
Accounts Receivable, Related Parties, Current	29	0
Other Assets, Miscellaneous, Current	8,364	3,973
Other current assets	$ 37,213	$ 23,827	$ 37,213

Property and Equipment Proper46

Property and Equipment Property and Equipment (Details) $ in Thousands	Jan. 26, 2016ft²	Oct. 01, 2016USD ($)ft²	Jan. 02, 2016USD ($)
Property, Plant and Equipment [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²	70,700	16,830
Property, Plant and Equipment, Transfers and Changes		$ 3,400
Property, plant and equipment, gross		203,372	$ 197,938
Accumulated depreciation and amortization		(70,222)	(65,472)
Property and equipment, net		133,150	132,466
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		43,184	42,460
Building and building improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		85,564	78,877
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		23,762	23,738
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		15,002	15,023
Tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		13,234	13,079
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		8,162	7,734
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross		400
Property, plant and equipment, gross		9,502	8,885
Demonstration units
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross		979	973
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		3,938	$ 7,124
Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation and amortization		$ (300)

Property and Equipment Proper47

Property and Equipment Property and Equipment Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Jan. 02, 2016
Property, Plant and Equipment [Line Items]
Depreciation	$ 8,600	$ 9,500
Depreciation and amortization	12,355	$ 11,603
Property, plant and equipment, gross	203,372		$ 197,938
Accumulated depreciation	70,222		65,472
Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,938		7,124
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	9,502		$ 8,885
Capital Leased Assets, Gross	400
Capital Lease Obligations [Member]
Property, Plant and Equipment [Line Items]
Accumulated depreciation	300
Accounts Payable | Irvine, California | Construction-in-progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,200

Intangible Assets Intangible 48

Intangible Assets Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016	Jan. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 50,914		$ 43,892
Total accumulated amortization	(21,098)		(16,336)
Intangible assets, net	29,816		27,556
Patents
Finite-Lived Intangible Assets [Line Items]
Total cost	19,449		21,619
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total cost	7,669		7,669
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Total cost	7,500	$ 0
Acquired technology
Finite-Lived Intangible Assets [Line Items]
Total cost	5,580		5,580
Trademarks
Finite-Lived Intangible Assets [Line Items]
Total cost	3,733		3,944
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Total cost	2,539		2,539
Other
Finite-Lived Intangible Assets [Line Items]
Total cost	$ 4,444		$ 2,541

Intangible Assets Intangible 49

Intangible Assets Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Amortization of Intangible Assets	$ 2.8	$ 3.3

Intangible Assets Intangible 50

Intangible Assets Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 03, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2,015	$ 4,424
2,016	4,096
2,017	3,842
2,018	3,479
2,019	3,123
Thereafter	10,852
Intangible assets, net	$ 29,816	$ 27,556

Accrued and Other Current Lia51

Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Accrued Liabilities [Abstract]
Accrued customer rebates, fees and reimbursement	$ 25,066	$ 11,857
Accrual for Taxes Other than Income Taxes, Current	4,661	5,263
Taxes Payable, Current	1,941	2,777
Accrued Professional Fees	2,186	5,785
Product Warranty Accrual, Current	1,292	1,222
Accrued Donations, Current	557	5,612
Accrued Stock Repurchase, Current	0	4,815
Accrued Arbitration Award, Current	0	5,391
Other Accrued Liabilities, Current	7,164	4,351
Accrued liabilities	$ 42,867	$ 47,073

Long-Term Debt Debt Instrument

Long-Term Debt Debt Instrument (Details) - USD ($)	Jan. 08, 2016	Oct. 01, 2016	Oct. 03, 2015	Jan. 02, 2016
Line of Credit Facility [Line Items]
Capital Lease Obligations, Noncurrent		$ 0		$ 71,000
Long-term Debt and Capital Lease Obligations		152,500,000		185,071,000
Letters of Credit Outstanding, Amount		300,000
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%
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 50,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	450,000,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 550,000,000
Long-term Line of Credit, Noncurrent		152,500,000		$ 185,000,000
Interest Expense, Debt		$ 3,000,000	$ 1,900,000
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%
Other Foreign Currency Sublimit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity	$ 125,000,000
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Interest Rate at Period End		1.8125%
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%

Other Non-Current Liabilities53

Other Non-Current Liabilities Other Liabilities, Long Term - Components of Other Liabilities (Detail) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Other Liabilities, Long Term [Abstract]
Unrecognized Tax Benefits Liabilities Noncurrent	$ 8,374	$ 7,747
Deferred Revenue, Noncurrent	375	298
Other liabilities	488	80
Deferred Tax Liabilities, Net, Noncurrent	194	194
Deferred Credits and Other Liabilities	$ 9,431	$ 8,319

Stock Repurchase Program - Addi

Stock Repurchase Program - Additional Information (Detail) - USD ($) $ in Millions	Oct. 01, 2016	Sep. 01, 2015
Class of Stock [Line Items]
Number of common shares authorized to be repurchased under new stock repurchase program		5,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 2.9

Equity (Details)

Equity (Details)	Nov. 08, 2007shares$ / shares	Oct. 01, 2016$ / shares	Jan. 02, 2016$ / shares
Equity [Line Items]
Preferred stock, par value		$ 0.001	$ 0.001
Dividends Declared For Outstanding Common Stock	One preferred stock purchase right
Number Of Rights To Be Issued With Each Share Of Common Stock | shares	1
Preferred Stock Voting Rights Per Share	$ 1
Series A Preferred Stock [Member]
Equity [Line Items]
Preferred stock, par value	0.001
Purchase Price Per Right	$ 136

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Nov. 04, 2015	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jan. 02, 2016	Sep. 01, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance		16,100,000		16,100,000
Options to purchase of shares of common stock		100,000	500,000	1,400,000	600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		9,026,000		9,026,000		9,202,000
Number of common shares authorized to be repurchased under new stock repurchase program							5,000,000
Exercised				$ 20.43
Options available for grant, end of period		4,300,000		4,300,000
Share-based compensation expense				$ 9.7	$ 8.1
Aggregate intrinsic value of options outstanding		$ 283.8		283.8
Aggregate intrinsic value of options exercisable		174.8		174.8
Aggregate intrinsic value of options exercised		11.8		37.1
Unrecognized share-based compensation related to unvested options granted		28.9		28.9
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options		$ 0.2		$ 0.2
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				6,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				1 year
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term				0 years
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				3 years 6 months
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term				3 years 10 months 24 days
Employment Contracts [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employment Agreement, Severance Terms	10.00%
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				2,700,000

Stock-Based Compensation - Numb

Stock-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. 01, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning of period	9,202
Granted	1,257
Canceled	(141)
Exercised	(1,292)
Options outstanding, end of period	9,026
Options exercisable, end of period	5,222
Options available for grant, end of period	4,300
Average Exercise Price
Options outstanding, beginning of period | $ / shares	$ 25.46
Granted | $ / shares	39.34
Canceled | $ / shares	29.32
Exercised | $ / shares	20.43
Options outstanding, end of period | $ / shares	28.05
Options exercisable, end of period | $ / shares	$ 26.01

Stock-Based Compensation - Rang

Stock-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. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Risk-free interest rate, minimum	1.00%	1.50%	1.00%	1.30%
Risk-free interest rate, maximum	1.30%	1.80%	1.90%	1.90%
Expected term (in years)	5 years 8 months 9 days	5 years 6 months	5 years 8 months 9 days	5 years 6 months
Estimated volatility, minimum	30.30%	32.30%	30.30%	32.00%
Estimated volatility, maximum	31.90%	35.60%	35.70%	37.40%
Expected dividends	0.00%	0.00%	0.00%	0.00%
Weighted-average fair value of options granted	$ 17.99	$ 14.09	$ 13.42	$ 11.82

Stock-Based Compensation Stock-

Stock-Based Compensation Stock-Based Compensaiton - Summary of Unvested RSU Activity (Details) - $ / shares shares in Thousands	9 Months Ended
	Oct. 01, 2016	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	16,100
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,709	2,703
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 41.45	$ 41.45
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	6
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 43.09
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expired in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercised in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 0
Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	2,700

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Jul. 20, 2016USD ($)	Apr. 08, 2016USD ($)	Jan. 26, 2016ft²	Nov. 04, 2015USD ($)	Oct. 01, 2014USD ($)	Jan. 16, 2014USD ($)	Jan. 03, 2014USD ($)	Jul. 09, 2009patent	Sep. 30, 2011sales_representatives	Oct. 01, 2016USD ($)distributorAgreement	Oct. 03, 2015USD ($)	Oct. 01, 2016USD ($)ft²distributorAgreement	Oct. 03, 2015USD ($)	Jan. 02, 2016USD ($)distributor	Oct. 21, 2015	Jan. 31, 2014participant
Contingencies And Commitments [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²			70,700									16,830
Accrued rent expense										$ 600,000		$ 600,000		$ 200,000
Rental expense related to operating leases										1,500,000	$ 1,200,000	4,500,000	$ 4,100,000
Capital Leases, Future Minimum Payments, Interest Included in Payments										$ 100,000		$ 100,000
Company contribution percentage based on employee contribution of up to 3% of employee's compensation												3.00%
Severance plan participation agreements | Agreement										7		7
Supplemental Unemployment Benefits, Severance Benefits, Required Notice of Resignation												6 months
Purchase Commitment, Remaining Minimum Amount Committed										$ 42,800,000		$ 42,800,000
Other Commitment										500,000		500,000
Bank balances										125,000,000		125,000,000
Bank balance covered by Federal Deposit Insurance Corporation limit										2,100,000		2,100,000
Time Deposits, at Carrying Value										62,500,000		62,500,000
Royalty										$ 7,335,000	$ 7,972,000	$ 23,241,000	$ 23,266,000
Number of former sales representatives | sales_representatives									2
Litigation settlement amount					$ 466,800,000
Number of participants in the surfactant, positive pressure, and oxygenation randomized trial | participant																2
Number of inter partes review petitions, Patent Trial and Appeal Board of the US Patent Office															3
Percentage Of Revenue One Customer										14.00%	14.50%	15.00%	14.60%
Percentage Of Revenue Two Customer										13.20%	11.60%	12.40%	12.00%
Number of days royalty revenue is adjusted subsequent to quarter end												60 days
Sales [Member]
Contingencies And Commitments [Line Items]
Concentration Risk, Just-in-time Distributors										2	2	2	2
Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Concentration Risk, Just-in-time Distributors | distributor												1		2
Sales Revenue, Product Line [Member]
Contingencies And Commitments [Line Items]
Revenue Customer Concentration										$ 94,500,000	$ 81,000,000	$ 279,800,000	$ 251,900,000
Just in time distributor one [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Two Just In Time Distributor												11.50%		5.50%
Just in time distributor two [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Two Just In Time Distributor														5.30%
Masimo vs. Philips
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent								1
Masimo vs Former Physician Office Sales Representatives
Contingencies And Commitments [Line Items]
Litigation settlement amount		$ 6,200,000				$ 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]
Royalty											7,972,000		23,266,000
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]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award				2.7
Employment Agreement, Severance Terms				$ 35,000,000
Employment Agreement, Severance Terms				10.00%
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination												$ 195,600,000
International
Contingencies And Commitments [Line Items]
Company's contribution to employee retirement savings plan										100,000	100,000	200,000	200,000
United States
Contingencies And Commitments [Line Items]
Company's contribution to employee retirement savings plan										$ 500,000	$ 400,000	$ 1,600,000	$ 1,400,000

Commitments and Contingencies61

Commitments and Contingencies - Future Minimum Lease Payments Under Operating and Capital Leases (Detail) $ in Thousands	Oct. 01, 2016USD ($)
Operating Leases
2016 (balance of year)	$ 1,501
2,016	5,819
2,017	5,696
2,018	4,641
2,019	2,607
Thereafter	5,885
Total	26,149
Capital Leases
2016 (balance of year)	11
2,016	100
2,017	14
2,018	8
2,019	4
Thereafter	0
Total	137
Total
2016 (balance of year)	1,512
2,016	5,919
2,017	5,710
2,018	4,649
2,019	2,611
Thereafter	5,885
Total	$ 26,286

Segment Information and Enter62

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. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 160,286	$ 144,603	$ 488,183	$ 439,572
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	$ 5,164	$ 3,746	$ 14,368	$ 12,238
Total product revenue, in percentage	3.20%	2.60%	2.90%	2.70%
Europe, Middle East and Africa | Reportable Geographical Components
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 23,929	$ 25,729	$ 81,887	$ 74,125
Total product revenue, in percentage	14.90%	17.80%	16.80%	16.90%
Asia and Australia | Reportable Geographical Components
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 16,630	$ 13,657	$ 46,815	$ 38,226
Total product revenue, in percentage	10.40%	9.40%	9.60%	8.70%
United States | Reportable Geographical Components
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 114,563	$ 101,471	$ 345,113	$ 314,983
Total product revenue, in percentage	71.50%	70.20%	70.70%	71.70%

Long Lived Assets by Geographic

Long Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 229,865	$ 210,323
Concentration Risk, Long-lived Asset Geographic Area, Percentage	100.00%	100.00%
Reportable Geographical Components [Member] | United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 221,676	$ 203,553
Concentration Risk, Long-lived Asset Geographic Area, Percentage	96.40%	96.80%
Reportable Geographical Components [Member] | International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 8,189	$ 6,770
Concentration Risk, Long-lived Asset Geographic Area, Percentage	3.60%	3.20%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Oct. 01, 2016USD ($)
Income Tax Disclosure [Abstract]
Gross unrecognized tax benefit	$ 9.4
Unrecognized tax benefit that would affect effective tax rate	$ 8