Masimo (MASI) 10-K 15 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Jul. 02, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	MASI
Entity Registrant Name	MASIMO CORP
Entity Central Index Key	937,556
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	50,419,060
Market Value of non affiliate stock at end of Q2		$ 1,592.8

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Current assets
Cash and cash equivalents	$ 305,970	$ 132,317
Accounts receivable, net of allowance for doubtful accounts of $1,698 and $1,967 at December 31, 2016 and January 2, 2016, respectively	101,720	80,960
Inventories	72,542	62,038
Prepaid income taxes	981	2,404
Other current assets	26,014	21,423
Total current assets	507,227	299,142
Deferred cost of goods sold	79,948	66,844
Property and equipment, net	135,996	132,466
Intangible assets, net	29,376	27,556
Goodwill	19,780	20,394
Deferred income taxes	38,975	44,320
Other assets	9,223	11,013
Total assets	820,525	601,735
Current liabilities
Accounts payable	31,125	25,865
Accrued compensation	43,180	38,415
Accrued liabilities	31,476	44,222
Income taxes payable	76,316	2,777
Deferred revenue	38,198	21,280
Current portion of capital lease obligations	71	74
Total current liabilities	220,366	132,633
Deferred revenue	25,336	298
Long-term debt	0	185,071
Other liabilities	14,587	8,021
Total liabilities	260,289	326,023
Commitments and contingencies (Notes 4 and 15)
Masimo Corporation stockholders’ equity:
Preferred stock, $0.001 par value; 5,000 shares authorized at December 31, 2016 and January 2, 2016; 0 shares issued and outstanding at December 31, 2016 and January 2, 2016	0	0
Common stock, $0.001 par value, 100,000 shares authorized at December 31, 2016 and January 2, 2016; 50,188 and 49,881 shares issued and outstanding at December 31, 2016 and January 2, 2016, respectively	50	50
Treasury stock, 14,255 and 12,759 shares at December 31, 2016 and January 2, 2016, respectively	(404,276)	(340,873)
Additional paid-in capital	382,263	332,417
Accumulated other comprehensive (loss) income	(7,027)	(4,739)
Retained earnings	589,226	288,560
Total Masimo Corporation stockholders’ equity	560,236	275,415
Noncontrolling interest	0	297
Total equity	560,236	275,712
Total liabilities and equity	$ 820,525	$ 601,735

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,698	$ 1,967
Preferred stock, par value (in usd per share)	$ 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 (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	50,188,000	49,881,000
Treasury stock, shares	14,255,000	12,759,000

CONSOLIDATED STATEMENTS OF OPE

CONSOLIDATED STATEMENTS OF OPERATIONS Statement - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Statement [Abstract]
Product									$ 663,846	$ 599,334	$ 556,764
Royalty									30,779	30,777	29,879
Total revenue	$ 183,201	$ 167,621	$ 172,636	$ 171,167	$ 167,273	$ 152,575	$ 155,726	$ 154,537	694,625	630,111	586,643
Cost of goods sold									230,826	220,128	195,864
Gross profit	124,329	110,122	115,135	114,213	101,745	102,232	102,901	103,105	463,799	409,983	390,779
Selling, general and administrative									253,667	252,725	241,016
Research and development									59,362	56,617	56,581
Litigation settlement, award and/or defense costs									(270,000)	(19,609)	(10,331)
Total operating expenses									43,029	289,733	287,266
Operating income	310,400	36,604	36,429	37,337	36,892	28,140	27,841	27,377	420,770	120,250	103,513
Non-operating expense									(2,429)	(3,905)	(1,472)
Income before provision for income taxes									418,341	116,345	102,041
Provision for income taxes									117,675	34,845	27,678
Net income including noncontrolling interest									300,666	81,500	74,363
Net income (loss) attributable to the noncontrolling interest									0	(1,800)	1,845
Net income attributable to Masimo Corporation stockholders	$ 215,293	$ 27,773	$ 30,023	$ 27,577	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 300,666	$ 83,300	$ 72,518
Basic (in usd per share)	$ 4.31	$ 0.56	$ 0.61	$ 0.56	$ 0.48	$ 0.38	$ 0.38	$ 0.39	$ 6.07	$ 1.62	$ 1.33
Diluted (in usd per share)	$ 3.97	$ 0.52	$ 0.57	$ 0.53	$ 0.46	$ 0.36	$ 0.36	$ 0.38	$ 5.65	$ 1.55	$ 1.30
Basic (shares)									49,530	51,311	54,708
Diluted (shares)									53,195	53,707	55,571

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Statement [Abstract]
Net income including noncontrolling interest	$ 300,666	$ 81,500	$ 74,363
Net income including noncontrolling interest
Foreign currency translation adjustments	(2,288)	(2,646)	(6,088)
Total comprehensive income	298,378	78,854	68,275
Comprehensive (loss) income attributable to noncontrolling interest	0	(1,800)	1,845
Comprehensive income attributable to Masimo Corporation stockholders	$ 298,378	$ 80,654	$ 66,430

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Noncontrolling Interest
Beginning Balance at Dec. 28, 2013	$ 326,401	$ 57	$ (83,454)	$ 273,129	$ 3,995	$ 132,742	$ (68)
Beginning Balance, shares at Dec. 28, 2013		56,623	4,156
Stock options exercised	4,683			4,683
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation	$ (132)			(132)
Stock options exercised, shares	426	426
Compensation related to stock option grants to employees	$ 11,005			11,002			3
Repurchases of common stock	(102,453)	$ (5)	$ (102,452)	4
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests	$ (38)
Repurchases of common stock, shares	(4,455)	(4,455)	(4,455)
Net income	$ 74,363					72,518	1,845
Foreign currency translation adjustment, net of tax	(6,088)
Foreign currency translation adjustment, before tax	(6,088)				(6,088)
Ending Balance at Jan. 03, 2015	307,741	$ 52	$ (185,906)	288,686	(2,093)	205,260	1,742
Ending Balance, shares at Jan. 03, 2015		52,594	8,611
Stock options exercised	28,326	$ 2		28,324
Adjustments Related to Tax Withholding for Share-based Compensation	$ (472)			(472)
Stock options exercised, shares	1,450	1,435
Income tax benefit from exercise of stock options	$ 5,058			5,058
Compensation related to stock option grants to employees	10,825			10,817			8
Repurchases of common stock	(154,967)	$ (4)	$ (154,967)	4
Noncontrolling Interest, Increase from Subsidiary Equity Issuance	$ 347						347
Repurchases of common stock, shares	(4,148)	(4,148)	(4,148)
Net income	$ 81,500					83,300	(1,800)
Foreign currency translation adjustment, net of tax	(2,646)
Foreign currency translation adjustment, before tax	(2,646)				(2,646)
Ending Balance at Jan. 02, 2016	275,712	$ 50	$ (340,873)	332,417	(4,739)	288,560	297
Ending Balance, shares at Jan. 02, 2016		49,881	12,759
Stock options exercised	$ 37,342	$ 0		37,342
Stock options exercised, shares	1,799	1,799
Stock Issued During Period, Shares, Restricted Stock Award, Gross	4
Compensation related to stock option grants to employees	$ 12,503			12,503
Repurchases of common stock	(63,402)	$ 0	$ (63,403)	1
Noncontrolling Interest, Decrease from Deconsolidation	$ (297)						(297)
Repurchases of common stock, shares	(1,496)	(1,496)	(1,496)
Net income	$ 300,666					300,666
Foreign currency translation adjustment, net of tax	(2,288)
Foreign currency translation adjustment, before tax	(2,288)				(2,288)
Ending Balance at Dec. 31, 2016	$ 560,236	$ 50	$ (404,276)	$ 382,263	$ (7,027)	$ 589,226	$ 0
Ending Balance, shares at Dec. 31, 2016		50,188	14,255

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Cash flows from operating activities:
Net income including noncontrolling interest	$ 300,666	$ 81,500	$ 74,363
Adjustments to reconcile net income including noncontrolling interest to net cash provided by operating activities:
Depreciation and amortization	16,817	15,684	12,818
Share-based compensation	12,503	10,825	11,005
Loss on disposal of property, equipment and intangibles	658	608	918
Provision for doubtful accounts	259	342	583
Deconsolidation, Gain (Loss), Amount	(273)	0	0
Benefit from deferred income taxes	5,405	(1,974)	(320)
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable	(21,243)	(9,900)	4,862
(Increase) decrease in inventories	(10,831)	7,505	(13,434)
(Increase) decrease in deferred cost of goods sold	(8,251)	(78)	(6,683)
Decrease (increase) in prepaid income taxes	1,355	(1,992)	3,316
Increase in other assets	(7,314)	(3,012)	(1,824)
Increase (decrease) in accounts payable	7,816	(4,319)	(1,375)
Increase (Decrease) in Accounts Payable, Related Parties	(1,092)	0	0
Increase in accrued compensation	5,675	5,334	4,948
(Decrease) increase in accrued liabilities	(7,605)	19,902	1,837
Increase in income taxes payable	73,755	1,316	4,173
Increase in deferred revenue	41,900	58	199
Increase (decrease) in other liabilities	6,642	(4,587)	227
Net cash provided by operating activities	416,842	117,212	95,613
Cash flows from investing activities:
Purchases of property and equipment	(19,707)	(50,393)	(75,061)
Increase in intangible assets	(4,644)	(4,201)	(3,903)
Reduction in cash resulting from deconsolidation of variable interest entity	(763)		0	$ 0
Net cash used in investing activities	(25,114)	(54,594)	(78,964)
Line of credit and current portion of capital lease obligations	45,000	130,000	125,000
Repayments of Lines of Credit	230,000	70,000	0
Payments of Debt Issuance Costs	(621)	0	(436)
Cash flows from financing activities:
Repayments on capital lease obligations	(75)	(80)	(111)
Proceeds from issuance of common stock	37,290	28,285	4,680
Payments Related to Tax Withholding for Share-based Compensation	0	(472)	0
Repurchases of common stock	(68,218)	(150,152)	(102,453)
Net equity issuances (repurchases) by noncontrolling interest	0	346	(38)
Net cash (used in) provided by financing activities	(216,624)	(62,073)	26,642
Effect of foreign currency exchange rates on cash	(1,451)	(2,681)	(4,304)
Net increase (decrease) in cash and cash equivalents	173,653	(2,136)	38,987
Cash and cash equivalents at beginning of period	132,317	134,453	95,466
Cash and cash equivalents at end of period	$ 305,970	$ 132,317	$ 134,453	$ 95,466

Description of the Company

Description of the Company	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [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 monitoring technologies. The Company’s mission is to improve patient outcomes and reduce cost of care by taking noninvasive monitoring to new sites and applications. The Company’s patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use, reusable or resposable sensors, software and/or cables. The Company primarily sells its products to hospitals, emergency medical service (EMS) providers, home care providers, physician offices, veterinarians, long-term care facilities and consumers through its direct sales force, distributors and original equipment manufacturer (OEM) partners. The Company invented Masimo Signal Extraction Technology ® (SET ® ), which provides the capabilities of Measure-through Motion and Low Perfusion ™ pulse oximetry to address the primary limitations of conventional pulse oximetry. Over the years, the Company’s product offerings have expanded significantly to also include noninvasive optical blood constituent monitoring, optical organ oximetry monitoring, electrical brain function monitoring, acoustic respiration monitoring and optical gas monitoring. The Company also developed the Root ® patient monitoring and connectivity platform and the Masimo Patient SafetyNet remote patient surveillance monitoring system. These solutions and related products are based upon Masimo SET ® , rainbow ® and other proprietary algorithms. These software-based technologies are incorporated into a variety of product platforms depending on customers’ specifications. This technology is supported by a substantial intellectual property portfolio that the Company has built through internal development and, to a lesser extent, acquisitions and license agreements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (VIEs) in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 weeks while a 53 week fiscal year includes three quarters of 13 weeks and one quarter of 14 weeks. The Company’s last 53 week fiscal year was fiscal year 2014. Fiscal years 2015 and 2016 were 52 week fiscal years. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted. Use of Estimates The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include 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 consolidated financial statements for prior periods have been reclassified to conform to current period presentation. Fair Value Measurements Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect the fair value option under this guidance as to specific assets or liabilities. There were no transfers between level 1, level 2 and level 3 inputs during the years ended December 31, 2016 or January 2, 2016 . The Company carries cash and cash equivalents at cost which approximates fair value. As of December 31, 2016 and January 2, 2016 , the Company did not have any short-term investments. The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands): December 31, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 305,970 $ — $ — $ 305,970 $ 305,970 Level 1: None — — — — — Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 305,970 $ — $ — $ 305,970 $ 305,970 January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 112,168 $ — $ — $ 112,168 $ 112,168 Level 1: Money market funds 20,149 — — 20,149 20,149 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 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 FIFO (first in, first out) and includes material, labor and overhead. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory that has a market price less than the carrying value in inventory. Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 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. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , depreciation and amortization expense of property and equipment was $13.0 million , $11.8 million and $9.2 million , respectively. Intangible Assets Intangible assets consist primarily of patents, trademarks, software development costs, customer relationships and acquired technology. Costs related to patents and trademarks, which include legal and application fees, are capitalized and amortized over the estimated useful lives using the straight-line method. Patent and trademark amortization commences once final approval of the patent or trademark has been obtained. Patent costs are amortized over the lesser of 10 years or the patent’s remaining legal life, which assumes renewals, and trademark costs are amortized over 17 years, and their associated amortization cost is included in selling, general and administrative expense in the accompanying consolidated statements of operations. For intangibles purchased in an asset acquisition or business combination, which mainly include patents, trademarks, customer relationships and acquired technology, the useful life is determined in the same manner as noted above. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , amortization of intangible assets was $3.8 million , $4.2 million and $3.4 million , respectively. As of December 31, 2016 and January 2, 2016 , the total costs of patents not yet amortizing was $5.0 million and $5.4 million , respectively. As of December 31, 2016 and January 2, 2016 , the total costs of trademarks not yet amortizing was $0.6 million and $0.9 million , respectively. For the years ended December 31, 2016 and January 2, 2016 , total renewal costs capitalized for patents and trademarks was $0.6 million and $0.7 million , respectively. As of December 31, 2016 , the weighted-average number of years until the next renewal was one year for patents and six years for trademarks. The Company’s policy is to renew its patents and trademarks. Costs to renew intangibles are capitalized and amortized over the remaining useful life of the intangible. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. In accordance with authoritative accounting guidance, costs related to the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability. For the year ended December 31, 2016 , the Company did not capitalize any software development costs. For each of the years ended January 2, 2016 and January 3, 2015 , the Company capitalized $0.5 million of software development costs. The capitalized costs are amortized over the estimated life of the products, which is generally seven years. For the year ended December 31, 2016 , the Company amortized $0.1 million of capitalized costs. For each of the years ended January 2, 2016 and January 3, 2015 , the Company amortized $0.2 million of capitalized costs. The Company had unamortized software development costs of $0.8 million and $0.9 million at December 31, 2016 and January 2, 2016 , respectively, which is included within intangible assets, net, on the consolidated balance sheets. Impairment of Goodwill and Intangible assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment for each of its reporting units, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macroeconomic, industry-specific and company-specific factors, including: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the first step of the two-step impairment test by comparing the fair value of the reporting unit, determined using future projected discounted operating cash flows, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, goodwill is considered impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of goodwill. The Company also has the option to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test. The annual impairment test is performed during the fourth fiscal quarter. The Company reviews identifiable intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of goodwill, intangible assets or other long-lived assets was recorded during the years ended December 31, 2016 , January 2, 2016 or January 3, 2015 . Income Taxes The Company accounts for income taxes using the asset and liability method, under which the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss and tax credit carryforwards. Tax positions that meet a more-likely-than-not recognition threshold are recognized in the first reporting period that it becomes more-likely-than-not such tax position will be sustained upon examination. A tax position that meets this more-likely-than-not recognition threshold is recorded at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Previously recognized income tax positions that fail to meet the recognition threshold in a subsequent period are derecognized in that period. Differences between actual results and the Company’s assumptions, or changes in the Company’s assumptions in future periods, are recorded in the period they become known. The Company records potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. As a multinational corporation, the Company is subject to complex tax laws and regulations in various jurisdictions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation, evolution of regulations and court rulings. Therefore, the actual liability for U.S. or foreign taxes may be materially different from the Company’s estimates, which could result in the need to record additional liabilities or potentially to reverse previously recorded tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is recorded against any deferred tax assets when, in the judgment of management, it is more likely than not that all or part of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods and tax planning strategies. Revenue Recognition and Deferred Revenue The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue from the sale of products or services when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. In the case of the license or sale of software that does not function together with hardware components to provide the essential functionality of the hardware, revenue is recognized pursuant to the software revenue recognition guidance. The Company derives the majority of its revenue from four primary sources: (i) direct sales under long-term sensor purchase agreements with end-user hospitals where the Company provides up-front monitoring equipment at no up-front charge in exchange for a multi-year sensor purchase commitment, (ii) other direct sales of noninvasive monitoring solutions to end-user hospitals, emergency medical response organizations and other direct customers; (iii) sales of noninvasive monitoring solutions to distributors who then typically resell to end-user hospitals, emergency medical response organizations and other direct customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company’s embedded software technology into their multiparameter 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 (VSOE) of fair value, (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE of fair value is defined as the price charged when the same element is sold separately. VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. TPE generally does not exist for the majority of the Company’s products. 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. These contracts generally do not provide for any payments that are not dependent upon the Company’s future delivery of sensors, which are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. As a result, the Company generally does not recognize any revenue when the monitoring and 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 and 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. In cases where such contracts do provide for guaranteed payments that are unrelated to the future delivery of sensors, the Company recognizes the net present value of such payments as revenue from the monitoring and related equipment and expenses the cost of such equipment to cost of goods sold, as the equipment is delivered and when installation and training are complete. Some of the Company’s long-term sensor contracts also contain provisions for certain payments to be made directly to the end-user hospital customer at the inception of the arrangement. These payments are generally treated as prepaid discounts which 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 that 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 majority of 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 certain Medtronic 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 Medtronic royalty report, approximately sixty days after the end of the previous quarter. Taxes Collected From Customers and Remitted to Governmental Authorities Pursuant to authoritative guidance, the Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities. Share-Based Compensation The Company expenses the estimated fair value of employee stock options and similar awards based on the fair value of the stock option on the date of grant, in accordance with the current authoritative accounting guidance. In calculating the fair value on the date of grant, the Company uses the Black-Scholes option pricing model which requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their stock options before exercising them, the estimated volatility of the Company’s stock price over the expected term and the number of options that will ultimately be forfeited prior to meeting their vesting requirements. The cost is recognized over the period during which an employee is required to provide services in exchange for the stock option, which is usually the vesting period. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire stock option. Options granted prior to January 1, 2006 were accounted for using the intrinsic value method and using the minimum value method for its pro forma disclosures, unless such options were modified, repurchased or canceled. The cash flows related to the reduction of income taxes paid as a result of the deduction triggered by employee exercise of stock options granted or modified prior to January 1, 2006 continue to be presented within operating cash flows. Shipping and Handling Costs and Revenue All shipping and handling costs are expensed as incurred and are recorded as a component of cost of goods sold in the accompanying consolidated statements of operations. Charges for shipping and handling billed to customers are included as a component of product revenue in accordance with authoritative accounting guidance. Product Warranty The Company provides a warranty against defects in material and workmanship for a period ranging from six months to forty-eight months, depending on the product type. In the case of long-term sales agreements, the Company typically warranties the products for the term of the agreement, which ranges from three to 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 goods sold. Revenue related to any extended warranty is recognized over the life of the contract, while the product warranty costs related to the long-term sales agreements are expensed as incurred. Changes in the product warranty accrual were as follows (in thousands): Year Ended December 31, January 2, January 3, Warranty accrual, beginning of period $ 1,222 $ 1,416 $ 1,161 Accrual for warranties issued (including specific accrual) 871 800 1,144 Changes in pre-existing warranties (including changes in estimates) 110 61 138 Settlements made (1,293 ) (1,055 ) (1,027 ) Warranty accrual, end of period $ 910 $ 1,222 $ 1,416 Advertising Costs Advertising costs are expensed as incurred. These costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Advertising costs for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 were $11.0 million , $10.7 million and $10.7 million , respectively. Research and Development Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities. 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. On November 5, 2016, the Company entered into a settlement agreement (Philips Settlement Agreement) with Koninklijke Philips N.V. (Philips N.V.), which, among other things, settled all of the claims, legal proceedings and contractual disputes between the Company, Philips N.V. and its affiliates. Pursuant to the Philips Settlement Agreement, Philips N.V. paid us $300 million , $30 million of which related to certain future performance obligations by the Company and, therefore, has been deferred to future periods in accordance with authoritative accounting guidance. See Note 15 - Commitments and Contingencies under the caption “ Litigation ” for additional information on this matter. Foreign Currency Translation The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has several foreign sales support subsidiaries that maintain foreign offices, of which the largest are in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company transacts with foreign customers in currencies other than the U.S. Dollar and, in doing so, experiences realized and unrealized foreign currency gains or losses on its foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions. Realized and unrealized foreign currency gains or losses are included as a component of non-operating expense within the Company’s consolidated statements of operations as incurred and are converted to U.S. Dollars at average exchange rates for the respective period. These transaction losses were $0.1 million , $0.5 million and $1.0 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Assets and liabilities of foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated into U.S. Dollars at the rate of exchange at the balance sheet date. Statement of operations amounts are translated at the average monthly exchange rates for the respective periods. For these foreign subsidiaries whose functional currency is not the U.S. Dollar, translation gains and losses are included as a component of accumulated other comprehensive income (loss) within Masimo Corporation stockholders’ equity in the accompanying consolidated balance s

Variable Interest Entities (VIE

Variable Interest Entities (VIEs)	12 Months Ended
	Dec. 31, 2016
Variable Interest Entity [Abstract]
Variable Interest Entities (VIEs)	Variable Interest Entity (VIE) The Company follows authoritative guidance for the consolidation of its VIE, which requires an enterprise to determine whether its variable interest gives it a controlling financial interest in a VIE. Determination about whether an enterprise should consolidate a VIE is required to be evaluated continuously as changes to existing relationships or future transactions may result in consolidating or deconsolidating the VIE. Changes in the noncontrolling interest for the consolidated VIE for each period are presented in the accompanying consolidated statements of equity. Cercacor Laboratories, Inc. (Cercacor) Cercacor is an independent entity spun off from the Company to its stockholders in 1998. Joe Kiani, the Company’s Chairman and Chief Executive Officer, is also the Chairman and Chief Executive Officer of Cercacor. The Company is a party to a Cross-Licensing Agreement with Cercacor, which was most recently amended and restated effective January 1, 2007 (the Cross-Licensing Agreement), that governs each party’s rights to certain intellectual property held by the two companies. In addition, the Company has also entered into an administrative services agreement with Cercacor that governs certain general and administrative services the Company provides to Cercacor; a consulting services agreement with Cercacor that governs certain engineering consulting and clinical studies support services that Cercacor may provide to the Company from time-to-time and a sublease agreement with Cercacor for approximately 16,830 square feet of excess office and laboratory space located at 40 Parker, Irvine, California. See Note 4 to these consolidated financial statements for additional information on these agreements and other transactions with 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 consolidated statement of operations. Cercacor continues to be included within these 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 consolidated statements of operations. The consolidating balance sheet as of January 2, 2016 , and statements of operations for the years ended January 2, 2016 and January 3, 2015 reflecting the Company, Cercacor and related eliminations (in thousands) are as follows. January 2, Consolidating Balance Sheet: Masimo Corp Cercacor Cercacor Elim Total ASSETS Cash and cash equivalents $ 131,554 $ 763 $ — $ 132,317 Accounts receivable, net 80,937 23 — 80,960 Inventories 62,038 — — 62,038 Prepaid income taxes 2,342 62 — 2,404 Other current assets 21,230 1,277 (1,084 ) 21,423 Deferred cost of goods sold 66,844 — — 66,844 Property and equipment, net 131,877 589 — 132,466 Intangible assets, net 29,045 2,858 (4,347 ) 27,556 Goodwill 20,394 — — 20,394 Deferred income taxes 44,320 — — 44,320 Other assets 11,013 — — 11,013 Total assets $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 LIABILITIES Accounts payable $ 25,798 $ 67 $ — $ 25,865 Accrued compensation 37,715 700 — 38,415 Accrued liabilities 45,142 164 (1,084 ) 44,222 Income taxes payable 2,565 212 — 2,777 Deferred revenue 21,280 376 (376 ) 21,280 Current portion of capital lease obligations 74 — — 74 Deferred revenue 298 3,406 (3,406 ) 298 Long-term debt 185,071 — — 185,071 Other liabilities 7,964 57 — 8,021 EQUITY Common stock 50 14 (14 ) 50 Treasury stock (340,873 ) (100 ) 100 (340,873 ) Additional paid-in capital 332,417 842 (842 ) 332,417 Accumulated other comprehensive loss (4,739 ) — — (4,739 ) Retained earnings (deficit) 288,832 (166 ) (106 ) 288,560 Total Masimo Corporation stockholders’ equity 275,687 590 (862 ) 275,415 Noncontrolling interest — — 297 297 Total equity 275,687 590 (565 ) 275,712 Total liabilities and equity $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 Year ended Year ended Consolidating Statements of Operations: Masimo Cercacor Cercacor Total Masimo Corp Cercacor Cercacor Elim Total Total revenue $ 630,111 $ 6,910 $ (6,910 ) $ 630,111 $ 586,643 $ 5,970 $ (5,970 ) $ 586,643 Cost of goods sold 226,788 — (6,660 ) 220,128 201,334 — (5,470 ) 195,864 Gross profit 403,323 6,910 (250 ) 409,983 385,309 5,970 (500 ) 390,779 Operating expenses: Selling, general and administrative 250,627 2,348 (250 ) 252,725 238,674 2,842 (500 ) 241,016 Research and development 50,292 6,325 — 56,617 53,449 3,132 — 56,581 Litigation settlement, award and/or defense costs (19,609 ) — — (19,609 ) (8,010 ) (2,321 ) — (10,331 ) Total operating expenses 281,310 8,673 (250 ) 289,733 284,113 3,653 (500 ) 287,266 Operating income (loss) 122,013 (1,763 ) — 120,250 101,196 2,317 — 103,513 Non-operating expense (income) 3,910 (571 ) 566 3,905 1,505 (33 ) — 1,472 Income (loss) before provision for income taxes 118,103 (1,192 ) (566 ) 116,345 99,691 2,350 — 102,041 Provision for income taxes 34,803 42 — 34,845 27,173 505 — 27,678 Net income (loss) including noncontrolling interests 83,300 (1,234 ) (566 ) 81,500 72,518 1,845 — 74,363 Net (loss) income attributable to noncontrolling interests — — (1,800 ) (1,800 ) — — 1,845 1,845 Net income (loss) attributable to Masimo Corporation stockholders $ 83,300 $ (1,234 ) $ 1,234 $ 83,300 $ 72,518 $ 1,845 $ (1,845 ) $ 72,518

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	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 and transactions 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 parties. 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 royalties accrued for Cercacor under the license were $6.4 million , $6.7 million and $5.5 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. All amounts prior to the deconsolidation of Cercacor on January 3, 2016 were eliminated in consolidation. The Company had less than $0.1 million in sales to Cercacor for the year ended December 31, 2016 and no sales to Cercacor for the years ended January 2, 2016 and January 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 $0.2 million for each of the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 . • Cercacor’s Expenses related to Pronto-7 ® . In February 2009, in order to accelerate the development of the technology and product development supporting the Company’s Pronto-7 ® device, Cercacor agreed to re-direct a substantial amount of its engineering development activities to focus on this project and the Company agreed to fund such expenses. Accordingly, from April 2009 through June 2010, the Company agreed to reimburse Cercacor for all third-party engineering materials and supplies expenses related to Pronto-7 ® development and 50% of Cercacor’s total engineering and engineering-related payroll expenses. Subsequent to July 2010, Cercacor continued to assist the Company with other product development efforts and charged the Company accordingly. Beginning in 2012, due to a revised estimate of the support required to complete the Company’s various Pronto-7 ® related projects, the Company’s board of directors approved an increase in the percentage of Cercacor’s total engineering and engineering related payroll expenses funded by the Company from 50% to 60% . For the year ended January 3, 2015 , the total funding for these additional Cercacor expenses was $3.1 million . This arrangement was discontinued by mutual agreement effective as of January 4, 2015. During the year ended January 2, 2016 , Cercacor completed a review of its fiscal 2014 cross-charges related to Pronto-7 ® . Based on this review, it was determined that less than 60% of Cercacor’s total engineering and engineering-related payroll expenses were attributable to the development of Pronto-7 ® , resulting in an overpayment by the Company to Cercacor of approximately $1.6 million for fiscal 2014. In addition, the Company and Cercacor agreed to equally share approximately $1.4 million of previously incurred engineering-related payroll expenses associated with research for a new LED sensor technology for the Company and, as a result, the Company and Cercacor mutually agreed that Cercacor would refund $0.9 million to the Company. • 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 approximately $0.0 million and $0.3 million for the years ended December 31, 2016 and January 2, 2016 , respectively. • Patent Transfer and Licensing Agreement. The Company entered into a patent transfer and licensing agreement with Cercacor (the Patent Agreement) effective July 2015, pursuant to which, among other things, it purchased certain patents from Cercacor (the Purchased Patents) for an aggregate purchase price of $2.4 million . Pursuant to the Patent Agreement, the Company granted Cercacor an irrevocable, non-exclusive, worldwide license with respect to the products and services covered by the Purchased Patents. • 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 $0.3 million of sublease income for the year ended December 31, 2016 . Net amounts due from Cercacor were less than $0.1 million and approximately $1.1 million as of December 31, 2016 and January 2, 2016 , respectively. The Company’s Chief Executive Officer is also the Chairman and one of his family members is a Director of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation), a non-profit organization which was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. The Company’s Chief Financial Officer is also a Director of the Masimo Foundation. During the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company contributed approximately $5.0 million , $6.3 million and $2.8 million , respectively, to the Masimo Foundation. A portion of the Company’s contributions to the Masimo Foundation were, in turn, contributed by the Masimo Foundation to the Patient Safety Movement Foundation. The Company’s Chief Executive Officer is also the Chairman of the Patient Safety Movement Foundation, a non-profit organization which 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. The Company’s Chief Financial Officer is also the Treasurer and Secretary of the Patient Safety Movement Foundation. During the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company contributed approximately $200,271 , $220 and $500,000 , respectively, and Cercacor contributed approximately $25,000 , $25,000 and $25,000 , respectively, to the Patient Safety Movement Foundation. The Company’s Chief Executive Officer is also the Chairman of the Patient Safety Movement Coalition, a not-for-profit social welfare organization which was founded in 2013 to promote patient safety legislation. The Company’s Chief Financial Officer is also the Secretary of the Patient Safety Movement Coalition. During the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company contributed approximately $20,000 , $10,000 and $10,000 , respectively, to the Patient Safety Movement Coalition. The Company’s Chief Executive Officer is a member of the board of directors for Atheer Labs (Atheer), which is working with the Company on the development of next generation Root ® applications. During the fiscal years ended, December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company incurred approximately $255,000 , $200,000 and $0 , respectively, in license fees and other expenses owed to Atheer. The Company’s Chief Executive Officer is a member of the board of directors of Children’s Hospital of Orange County and CHOC Children’s at Mission Hospital (collectively, CHOC), two non-profit hospitals that are devoted exclusively to caring for children. During the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company contributed approximately $11,500 , $1,500 and $26,500 , respectively, to CHOC and its affiliates.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following (in thousands): December 31, January 2, Raw materials $ 32,647 $ 25,781 Work-in-process 7,701 4,337 Finished goods 32,194 31,920 Total $ 72,542 $ 62,038 Finished goods inventory held by distributors was $4.9 million and $2.9 million as of December 31, 2016 and January 2, 2016 , respectively.

Other Current Assets (Notes)

Other Current Assets (Notes)	12 Months Ended
	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	Other Current Assets Other current assets consist of the following (in thousands): December 31, January 2, Prepaid expenses $ 13,051 $ 9,930 Royalties receivable 7,500 7,200 Employee loans and advances 305 320 Due from related party 24 — Other current assets 5,134 3,973 Total other current assets $ 26,014 $ 21,423

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment, net consists of the following (in thousands): December 31, January 2, Building and building improvements $ 85,966 $ 78,877 Machinery and equipment 41,683 42,460 Land 23,762 23,738 Computer equipment 13,549 15,023 Tooling 12,895 13,079 Furniture and office equipment 9,669 8,885 Leasehold improvements 8,289 7,734 Demonstration units 448 973 Vehicles 45 45 Construction-in-progress 7,923 7,124 Total property and equipment 204,229 197,938 Accumulated depreciation and amortization (68,233 ) (65,472 ) Total property and equipment, net $ 135,996 $ 132,466 In June 2015, the Company, through a wholly owned subsidiary, completed the purchase of its previously leased 90,000 square foot manufacturing, office and warehouse facility located in New Hampshire (the Property). The total purchase price of the Property, inclusive of closing costs and amounts allocable to certain intangible assets and the termination of the existing lease, was $8.5 million , of which $0.7 million was recorded to land and $5.7 million was recorded to building and improvements. During the year ended December 31, 2016 , the Company completed construction of its initial renovations to its new corporate headquarters and research and development facility in Irvine, California, resulting in the reclassification of approximately $6.4 million from construction-in-progress to building and improvements. As of January 2, 2016 , approximately $4.0 million of construction-in-progress related to the initial purchase and subsequent renovation costs for this facility and approximately $4.2 million of construction costs were included in accounts payable. The Company capitalized less than $0.1 million and $0.4 million of interest expense related to the purchase and renovation of this facility during the years ended December 31, 2016 and January 2, 2016 , respectively. The gross value of furniture and office equipment under capital lease obligations was $0.4 million and $0.4 million as of December 31, 2016 and January 2, 2016 , respectively, with accumulated depreciation of $0.4 million and $0.3 million as of December 31, 2016 and January 2, 2016 , respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets Intangible assets, net consist of the following (in thousands): December 31, January 2, Cost Patents $ 19,950 $ 21,619 Customer relationships 7,669 7,669 Licenses 7,500 — Acquired technology 5,580 5,580 Trademarks 3,777 3,944 Capitalized software development costs 2,539 2,539 Other 3,674 2,541 Total cost 50,689 43,892 Accumulated amortization Patents (7,427 ) (7,743 ) Customer relationships (3,387 ) (2,620 ) Acquired technology (2,508 ) (1,950 ) Trademarks (1,331 ) (1,106 ) Capitalized software development costs (1,766 ) (1,647 ) Other (4,894 ) (1,270 ) Total accumulated amortization (21,313 ) (16,336 ) Net carrying amount $ 29,376 $ 27,556 Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2017 $ 4,232 2018 3,925 2019 3,685 2020 3,329 2021 2,813 Thereafter 11,392 Total $ 29,376

Goodwill

Goodwill	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Changes in the goodwill balance were as follows (in thousands): December 31, January 2, Goodwill, beginning of period $ 20,394 $ 20,979 Foreign currency translation adjustment (614 ) (585 ) Goodwill, end of period $ 19,780 $ 20,394

Accrued Liabilities

Accrued Liabilities	12 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, January 2, Accrued customer rebates, fees and reimbursements $ 21,103 $ 11,857 Accrued taxes 5,135 5,263 Accrued legal fees 1,362 5,785 Accrued warranty 910 1,222 Accrued donations 503 5,612 Accrued arbitration award — 5,391 Accrued stock repurchases — 4,815 Accrued other 2,463 4,277 Total accrued liabilities $ 31,476 $ 44,222

Long-Term Debt (Notes)

Long-Term Debt (Notes)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Long-term Debt	Long-Term Debt Long-term debt consists of the following (in thousands): December 31, January 2, Revolving line of credit $ — $ 185,000 Long-term portion of capital lease obligations acquisition — 71 Total long-term debt $ — $ 185,071 The Company incurred total interest expense of $3.3 million , $3.5 million and $0.6 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively, the majority of which was related to its revolving line of credit. Revolving Line of Credit In January 2016, the Company entered into an Amended and Restated Credit Agreement (Restated Credit Facility) with JPMorgan, as Administrative Agent and a Lender, BofA, 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 amended and restated the prior credit agreement dated April 23, 2014 (as amended in September 2014, the Amended Credit Agreement), and provided 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. Effective December 19, 2016, the Company decreased the total available borrowing capacity under the Restated Credit Facility from $450.0 million to $250.0 million . Borrowings under the Restated Credit Facility will be deemed, at the Company’s election, either: (i) an ABR draw, which bears interest at the Alternate Base Rate (ABR), as defined below, plus a spread (ABR Spread) based upon a Company leverage ratio, or (ii) a Eurodollar draw, 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 1.0% 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 0.5% , 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 any interest accrued on an ABR Loan are due and payable quarterly in arrears. Interest accrued 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 all equity interests in domestic subsidiaries and first-tier foreign subsidiaries. As of December 31, 2016 , the Restated Credit Facility had no outstanding draws and had outstanding standby letters of credit totaling $0.3 million . The Company was in compliance with all covenants under the Restated Credit Facility as of December 31, 2016 .

Other Liabilities, Long-Term

Other Liabilities, Long-Term	12 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Other Liabilities, Long-Term	Other Liabilities, Long-Term Other long-term liabilities consist of the following (in thousands): December 31, January 2, Unrecognized tax benefit $ 13,442 $ 7,747 Deferred rent, long-term 558 76 Deferred tax liability, long-term 340 194 Other 247 4 Total other liabilities, long-term $ 14,587 $ 8,021 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 17 to these consolidated financial statements for further details.

Equity

Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Equity	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 February 2013, the Board authorized the repurchase of up to 6.0 million shares of common stock under a stock repurchase program (2013 Repurchase Program). In October 2014, the Board increased the number of shares of the Company’s common stock authorized for repurchase by 3.0 million shares, bringing the total number of shares of the Company’s common stock authorized under such repurchase program to 9.0 million . The 2013 Repurchase Program plan terminated pursuant to its terms in September 2015 when all of the authorized 9.0 million shares had been repurchased. In September 2015, the Board authorized a new stock repurchase program, whereby the Company may purchase up to 5.0 million shares of its common stock over a period of up to three years (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 or privately negotiated transactions. The total remaining shares authorized for repurchase under the 2015 Repurchase Program approximated 2.9 million shares as of December 31, 2016 . The Company expects to fund any additional repurchases under the 2015 Repurchase Program through its available cash, future cash from operations, funds available under its Restated Credit Facility or other potential sources of capital. The following table provides a summary of the Company’s stock repurchase activities during the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 (in thousands, except per share amounts): Years Ended December 31, January 2, January 3, Shares repurchased 1,496 4,148 4,455 Average cost per share $ 42.39 $ 37.36 $ 23.00 Value of shares repurchased $ 63,402 $ 154,967 $ 102,453

Share-Based Compensation

Share-Based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation Stock Plans On August 7, 2007, in connection with the Company’s initial public offering, the 2007 Stock Incentive Plan (2007 Plan) became effective. Under the 2007 Plan, 3.0 million shares of common stock plus shares available under prior equity incentive plans, including shares that become available under the 2007 Plan due to forfeitures at prices not less than the fair market value of the Company’s common stock on the date the option is granted, were initially reserved for future issuance. The options generally vest annually over five years using the straight-line method, unless otherwise provided, and expire ten years from the date of grant. Options forfeited under any Stock Incentive Plan are automatically added to the share reserve of the 2007 Plan. Pursuant to the “evergreen” provision contained in the 2007 Plan, approximately 1.7 million additional shares of common stock were added to the share reserve of the 2007 Plan on each of January 4, 2015, December 29, 2013, December 30, 2012, January 1, 2012, January 3, 2010 and January 4, 2009, which represented 3% of the Company’s total shares outstanding as of each of the years ended January 3, 2015, December 28, 2013, December 29, 2012, December 31, 2011, January 2, 2010 and January 3, 2009. No shares were added to the share reserve for the year ended January 1, 2011. The Company may terminate the 2007 Plan at any time. If not terminated sooner, the 2007 Plan will automatically terminate on August 7, 2017. Beginning in 2015, equity awards granted to employees include a mix of stock options and RSUs. With the exception of the RSUs granted to the Company’s Chairman and Chief Executive Officer in connection with the amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements for further details), the RSUs generally vest one year from date of grant. The number of shares issued on each date that an RSU vests is net of any shares withheld to satisfy the minimum statutory tax withholdings that are paid in cash by the Company to the appropriate taxing authorities. Stock-Based Award Activity A summary of stock option activity, as well as the number and weighted-average exercise price of stock options issued and outstanding under all stock plans, is presented below (in thousands, except for exercise price): Year ended Year ended Year ended Shares Average Shares Average Exercise Price Shares Average Options outstanding, beginning of period 9,202 $ 25.46 9,956 $ 23.59 8,911 $ 22.76 Granted 1,290 39.94 914 36.18 1,887 24.83 Canceled (172 ) 29.13 (218 ) 24.33 (416 ) 24.46 Expired — — — — — — Exercised (1,799 ) 20.76 (1,450 ) 19.54 (426 ) 10.95 Options outstanding, end of period 8,521 $ 28.56 9,202 25.46 9,956 $ 23.59 Options exercisable, end of period 4,988 $ 26.33 5,609 $ 24.72 5,859 $ 23.63 The number and weighted-average exercise price of outstanding and exercisable stock options segregated by exercise price ranges (in thousands, except range of exercise prices and remaining contractual life) were as follows: Year ended Year ended Options Outstanding Options Exercisable Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Average Remaining Contractual Life Number of Options Number of Options Average Remaining Contractual Life Number of Options $8.00 to $20.00 565 5.34 296 1,367 3.79 947 $20.01 to $30.00 4,297 5.31 2,940 5,196 6.17 3,006 $30.01 to $40.00 3,233 5.89 1,591 2,349 5.00 1,534 $40.01 to $50.00 311 6.14 161 290 6.81 122 $50.01 to $60.00 91 9.65 — — — $60.01 to $70.00 24 9.90 — — — Total 8,521 5.62 4,988 9,202 5.53 5,609 As of December 31, 2016 and January 2, 2016 , the weighted-average remaining contractual term of options outstanding with an exercise price less than the closing price of the Company’s common stock was 5.6 years and 5.5 years, respectively. As of December 31, 2016 and January 2, 2016 , the weighted-average remaining contractual term of options exercisable with an exercise price less than the closing price of the Company’s common stock was 3.9 years and 4 years, respectively. A summary of unvested RSU award activity is presented below (in thousands) except for per share amounts: Year ended Year ended Year ended Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value RSUs outstanding, beginning of period 2,703 $ 41.45 — $ — — $ — Granted 6 43.09 2,703 41.45 — — Canceled — — — — — — Expired — — — — — — Vested (3 ) 41.45 — — — — RSUs outstanding, end of period 2,706 $ 41.45 2,703 $ 41.45 — $ — Approximately 2.7 million of the total RSUs granted during the year ended January 2, 2016 were awarded to the Company’s Chairman and Chief Executive Officer in connection with the amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements for further details). At December 31, 2016 , an aggregate of 15.6 million shares of common stock were reserved for future issuance under the 2007 Plan and prior equity incentive plans of which 4.0 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 stock options granted under the Company’s share-based compensation plans. The range of assumptions used and the resulting weighted-average fair value of stock options granted at the date of grant were as follows: Year ended Year ended Year ended Risk-free interest rate 1.0% to 2.1% 1.3% to 1.9% 1.4% to 1.9% Expected term 5.5 years to 5.7 years 5.5 years to 5.7 years 5.1 years to 5.5 years Estimated volatility 29.8% to 35.7% 32.0% to 37.4% 31.7% to 36.5% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $13.64 per share $12.20 per share $7.85 per share Risk-free interest rate. The risk-free interest rate is based on the implied yield available on U.S. Treasury zero-coupon issues with a remaining term approximately equal to the expected term of the Company’s stock options. Expected term. The expected term represents the average period that the Company’s stock options are expected to be outstanding. The expected term is based on both the Company’s specific historical option exercise experience, as well as expected term information available from a peer group of companies with a similar vesting schedule. Estimated volatility. The estimated volatility is the amount by which the Company’s share price is expected to fluctuate during a period. The Company’s estimated volatilities for 2015, 2014 and 2013 are based on historical and implied volatilities of the Company’s share price over the expected term of the option. Expected dividends. The Board may from time to time declare, and the Company may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law. Any determination to declare and pay dividends will be made by the Board and will depend upon the Company’s results of operations, earnings, capital requirements, financial condition, business prospects, contractual restrictions and other factors deemed relevant by the Board. In the event a dividend is declared, there is no assurance with respect to the amount, timing or frequency of any such dividends. The dividend declared in 2012 was deemed to be a special dividend and there is no assurance that special dividends will be declared again during the expected term. Based on this uncertainty and unknown frequency, for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , no dividend rate was used in the assumptions to calculate the share-based compensation expense. Estimated forfeiture rate. The Company is required to develop an estimate of the number of stock options and RSUs that will be forfeited due to employee turnover. Adjustments in the estimated forfeiture rates can have a significant effect on the Company’s reported share-based compensation, as it recognizes the cumulative effect of the rate adjustments for all expense amortization in the period the estimated forfeiture rates were adjusted. The Company estimates and adjusts forfeiture rates based on a periodic review of recent forfeiture activity and expected future employee turnover. Adjustments in the estimated forfeiture rates could also cause changes in the amount of expense that it recognizes in future periods. As of December 31, 2016 , there was $27.1 million of total unrecognized share-based compensation expense related to unvested options granted or modified on or after January 1, 2006. That expense is expected to be recognized over a weighted-average period of 3.4 years as of December 31, 2016 . The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire award. The total fair value of all options that vested during fiscal years 2016 , 2015 and 2014 aggregated $10.6 million , $10.4 million and $11.2 million , respectively. As of December 31, 2016 , there was $0.1 million of total unrecognized compensation expense related to unvested RSUs that is expected to be recognized over a weighted average period of less than 1 year, excluding any contingent compensation expense related to certain RSUs that were granted to the Company’s Chairman and Chief Executive Officer in connection with the amendment and restatement of his employment agreement (see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements for further details). The aggregate intrinsic value is calculated as the difference between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of December 31, 2016 was $330.9 million . The aggregate intrinsic value of options exercisable, with an exercise price less than the closing price of the Company’s common stock, as of December 31, 2016 was $204.9 million . The aggregate intrinsic value of options exercised during the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 was $57.0 million , $26.4 million and $6.6 million , respectively. The total income tax benefit recognized in the consolidated statements of operations for share-based compensation expense was $16.2 million , $3.7 million and $3.7 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. During the year ended December 31, 2016 , the Company early adopted ASU 2016-09, which resulted in changes to the recognition of excess tax benefits for share-based compensation. Please see Note 2 - Summary of Significant Accounting Policies under the subheading “ Recently Adopted Accounting Pronouncements ” for additional information on the impact of such adoption. The following table presents the total share-based compensation expense that is included in each functional line item of the consolidated statements of operations (in thousands): Year ended Year ended Year ended Cost of goods sold $ 355 $ 348 $ 436 Selling, general and administrative 9,443 8,139 8,812 Research and development 2,705 2,338 1,757 Total $ 12,503 $ 10,825 $ 11,005

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company leases certain facilities in North America, Europe and Asia under operating lease agreements expiring at various dates through December 2026 . Some of these 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. As of December 31, 2016 and January 2, 2016 , rent expense accrued in excess of the amount paid aggregated $0.7 million and $0.2 million , respectively, and is classified in other liabilities in the accompanying consolidated balance sheets. The Company also leases automobiles in the U.S. and Europe that are classified as operating leases and expire at various dates through December 2026 . The majority of these leases are non-cancellable. The Company also has outstanding capital leases for office equipment that 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): Fiscal year Operating Capital Total 2017 $ 5,829 $ 75 $ 5,904 2018 5,486 — 5,486 2019 4,643 — 4,643 2020 2,598 — 2,598 2021 1,391 — 1,391 Thereafter 7,630 — 7,630 Total $ 27,577 $ 75 $ 27,652 On January 26, 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 the terms of the Third Amendment, the Company’s current lease of certain premises will be terminated 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 extends 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 for the New Premises was November 1, 2016. On July 13, 2016, the Company entered into a Single-Tenant Lease with The Irvine Company LLC extending the rental of approximately 32,518 square feet of space in a building that was expected to be vacated in connection with the Third Amendment described above. The New Lease commenced December 1, 2016 and will continue in effect for a period of ten years until November 30, 2026. The Prior Lease terminated immediately prior to commencement of the New Lease. Rental expense related to operating leases for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 was $5.3 million , $5.2 million and $6.1 million , respectively. Included in the future capital lease payments as of December 31, 2016 is interest aggregating less than $0.1 million . Employee Retirement Savings Plan In 1996, the Company adopted the Masimo Retirement Savings Plan (the Plan), which is a 401(k) plan covering all of the Company’s full-time U.S. employees who meet certain eligibility requirements. In general, the Company matches an employee’s contribution up to 3% of the employee’s compensation, subject to a maximum amount. The Company may also contribute to the Plan on a discretionary basis. The Company contributed $1.9 million , $1.8 million and $1.7 million to the Plan for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively, all in the form of matching contributions. In addition, the Company also sponsors various defined contribution plans in certain locations outside of the United States (Subsidiary Plans). For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company contributed $0.3 million , $0.3 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 so that after December 31, 2026, no Special Payment will be due to Mr. Kiani upon a Qualifying Termination. As of December 31, 2016 , the expense related to the Special Payment that would be recognized in the Company’s consolidated financial statements upon the occurrence of a Qualifying Termination under the Restated Employment Agreement approximated $146.9 million . As of December 31, 2016 , the Company had severance plan participation agreements with seven of its executive officers. The participation agreements (Participation Agreements) are governed by the terms and conditions of the Company’s 2007 Severance Protection Plan, which became effective on July 19, 2007 and was amended effective December 31, 2008. Under the Participation Agreements, each executive officer may be entitled to receive certain salary, equity, medical and life insurance benefits if he is terminated by the Company without cause or terminates his employment for good reason under certain circumstances. The executive officers are also required to provide the Company with six months advance notice of their resignation under certain circumstances. Cercacor Cross-Licensing Agreement Change in Control Provisions The Company’s Cross-Licensing Agreement with Cercacor contains certain provisions that will go into effect upon a change in control (as defined in the Cross-Licensing Agreement) of the Company or Cercacor. Upon a change in control of the Company or Cercacor: (i) all rights to the “Masimo” trademark will be assigned to Cercacor if the surviving or acquiring entity ceases to use “Masimo” as a company name and trademark; (ii) the option to license technology developed by Cercacor for use in blood glucose monitoring will be deemed automatically exercised and a $2.5 million license fee for this technology will become immediately payable to Cercacor; and (iii) the minimum aggregate annual royalties payable to Cercacor for carbon monoxide, methemoglobin, fractional arterial oxygen saturation, hemoglobin and/or glucose measurements will increase to $15.0 million per year until the exclusivity period of the agreement ends, plus up to $2.0 million for each additional vital sign measurement with no maximum ceiling for non-vital sign measurements. Purchase Commitments Pursuant to contractual obligations with vendors, the Company had $76.8 million of purchase commitments as of December 31, 2016 , which are expected to be fulfilled within one year. These purchase commitments were made for certain inventory items to secure better pricing and to ensure the Company will have raw materials when necessary. 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 December 31, 2016 , there were approximately $0.5 million of such bank guarantees outstanding, the majority of which relates to performance obligations with respect to certain government tenders. Concentrations of Risk The Company is exposed to credit loss for the amount of cash deposits with financial institutions in excess of federally insured limits. As of December 31, 2016 , the Company had approximately $306.0 million of cash and cash equivalents, of which $2.9 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries deposit insurance organizations. The Company invests its excess cash deposits in certificates of deposit, money market and time deposit accounts with major financial institutions. While the Company and its contract manufacturers rely on sole source suppliers for certain components, steps have been taken to minimize the impact of a shortage or stoppage of shipments, such as maintaining a safety stock of inventory and designing products that may be easily modified to use a different component. However, there can be no assurance that a shortage or stoppage of shipments of the materials or components that the Company purchases will not result in a delay in production or adversely affect the Company’s business. The Company’s ability to sell its products to U.S. hospitals depends in part on its relationships with GPOs. Many existing and potential customers for the Company’s products become members of GPOs. GPOs negotiate pricing arrangements and contracts, sometimes exclusively, with medical supply manufacturers and distributors, and these negotiated prices are made available to a GPO’s affiliated hospitals and other members. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , revenue from the sale of the Company’s pulse oximetry products to customers affiliated with GPOs amounted to $375.0 million , $337.4 million and $309.9 million , respectively. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company had sales through two just-in-time distributors, which in total represented approximately 14.0% and 12.8% , 14.6% and 11.7% , and 14.0% and 11.1% of total revenue, respectively. As of December 31, 2016 , these two just-in-time distributors represented 7.5% and 5.6% of the accounts receivable balance, respectively, with another customer who represented 13.6% of the accounts receivable balance. As of January 2, 2016 , two different just-in-time distributors represented 5.5% and 5.3% of the accounts receivable balance, respectively, and another customer represented 10.5% of the accounts receivable balance. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company recorded $30.8 million , $30.8 million and $29.9 million , respectively, in royalty revenues from Medtronic pursuant to a settlement agreement and amendments. The current royalty rate is 7.75% and pursuant to the terms of the Third Amendment to Settlement Agreement and Release of Claims effective September 2016, Medtronic agreed to continue paying royalties through October 6, 2018, after which no more royalties will be due. 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 indicated that it intended to appeal the damages award once a final judgment was 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 suit against Philips alleging antitrust violations and patent infringement in the District of Delaware. On November 5, 2016, the Company entered into the Philips Settlement Agreement, pursuant to which Philips N.V. agreed to pay the Company $300 million . Philips N.V. and its affiliates (collectively, the Philips Group) and the Company (collectively with the Philips Group, the Parties) agreed to dismiss with prejudice all pending legal disputes between the Parties, including the patent infringement and antitrust lawsuits described above, as well as other contractual disputes, and agreed not to sue each other for patent infringement for certain of each other’s products. In addition, the Parties agreed to work together to integrate the Company’s technologies into additional Philips Group products, and to jointly develop certain other products. Each of the Parties has additional obligations to the other in the event that such party does not meet certain objectives under the settlement agreement. The settlement agreement also contains rainbow ® parameter pricing and related terms. The Parties further agreed to undertake a joint marketing program to promote rainbow ® adoption with Philips Group products. 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 was held on November 8, 2016, and the parties are awaiting a decision. 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 in the accompanying consolidated financial statements. 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. The appellate hearing before the Eleventh Circuit Court of Appeals was held on December 13, 2016, and the parties are awaiting a decision. 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 in the accompanying consolidated financial statements. 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 expired 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 and Medtronic, Covidien LP, Nellcor Puritan Bennett LLC and Covidien Holding Inc. (collectively, Medtronic Parties), pursuant to which the Company, Cercacor 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	12 Months Ended
	Dec. 31, 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 interests. In addition, the Company’s assets are primarily located in the U.S. The following schedule presents an analysis of the Company’s product revenue based upon the geographic area to which the product was shipped (in thousands): Year ended Year ended Year ended Geographic area by destination United States $ 465,588 70.1 % $ 421,628 70.3 % $ 380,232 68.3 % Europe, Middle East and Africa 112,273 16.9 105,323 17.6 100,747 18.1 Asia and Australia 65,955 10.0 55,675 9.3 57,951 10.4 North and South America (excluding United States) 20,030 3.0 $ 16,708 2.8 $ 17,834 3.2 Total Product Revenue $ 663,846 100 % $ 599,334 100 % $ 556,764 100.0 % The Company’s consolidated long-lived assets (total non-current assets excluding deferred taxes, goodwill and intangible assets) by geographic area are: Year ended Year ended Year ended Long-lived assets by geographic area United States $ 216,784 96.3 % $ 203,553 96.8 % $ 170,117 96.2 % International 8,383 3.7 % 6,770 3.2 6,805 3.8 Total $ 225,167 100.0 % $ 210,323 100.0 % $ 176,922 100.0 % The Company possesses licenses from the U.S. Treasury Department’s Office of Foreign Assets Control for conducting business with certain countries identified by the State Department as state sponsors of terrorism. Although the Company does not have any subsidiaries, affiliates, offices, investments or employees in any country identified as a state sponsor of terrorism, the Company has conducted an immaterial amount of business with distributors in Iran, Sudan and Syria relating to the sale of products during the prior two fiscal years. The Company does not believe that these activities are material to its business, financial condition or results of operations.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The components of income before provision for income taxes are as follows (in thousands): Year ended Year ended Year ended United States $ 320,702 $ 87,762 $ 69,282 Foreign 97,639 28,583 32,759 Total $ 418,341 $ 116,345 $ 102,041 The following table presents the current and deferred provision (benefit) for income taxes (in thousands): Year ended Year ended Year ended Current: Federal $ 99,533 $ 31,983 $ 22,553 State 6,922 2,388 2,736 Foreign 5,815 2,448 2,709 112,270 36,819 27,998 Deferred: Federal 2,982 (900 ) 342 State 2,331 (1,206 ) (811 ) Foreign 92 132 149 5,405 (1,974 ) (320 ) Total $ 117,675 $ 34,845 $ 27,678 Included in the fiscal 2016 , 2015 and 2014 current tax provisions are net increases of $6.1 million , $0.6 million and $1.1 million , respectively, for tax and accrued interest related to uncertain tax positions for each fiscal year. The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Year ended Year ended Year ended Statutory regular federal income tax rate 35.0 % 35.0 % 35.0 % State provision, net of federal benefit 1.4 0.7 1.2 Nondeductible items 0.8 1.7 1.3 Foreign income taxed at different rates (5.6 ) (6.3 ) (8.2 ) Tax credits (0.5 ) (1.7 ) (1.5 ) Change in federal valuation allowance — 0.4 (0.1 ) Excess stock based compensation (3.0 ) — — Other — 0.2 (0.6 ) Total 28.1 % 30.0 % 27.1 % The components of the deferred tax assets are as follows (in thousands): December 31, January 2, Deferred tax assets: Tax credits $ 802 $ 4,683 Deferred revenue 5,393 3,994 Accrued liabilities 16,244 20,817 Share-based compensation 18,680 20,688 Other 1,902 2,416 Total 43,021 52,598 Valuation allowance — (4,196 ) Total deferred tax assets 43,021 48,402 Deferred tax liabilities: Property and equipment (2,691 ) — State taxes and other (1,695 ) (4,276 ) Total deferred tax liabilities (4,386 ) (4,276 ) Net deferred tax assets $ 38,635 $ 44,126 As of December 31, 2016 , the Company has $0.1 million of net operating losses from various states, which will begin to expire in 2028, all of which will be recorded in equity when realized. The Company has state research and development tax credits of $2.6 million that will carry forward indefinitely. Additionally, the Company has $0.4 million of investment tax credit on research and development expenditures from its operations in Canada that will begin to expire in 2031. The Company believes that it is more likely than not that the deferred tax assets related to these carryforwards will be realized. In making this determination, the Company considered all available positive and negative evidence, including scheduled reversals of liabilities, projected future taxable income, tax planning strategies and recent financial performance. As a result of certain business and employment actions undertaken by the Company, income earned in a certain European country is subject to a reduced tax rate through 2018 as the Company has met certain employment thresholds. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the estimated income tax benefit related to such business arrangement was $4.6 million , $1.3 million and $1.6 million , respectively, and favorably impacted net income per diluted share by $0.09 , $0.02 and $0.03 , respectively. As of December 31, 2016 , the Company has not provided for deferred income taxes on approximately $198.2 million of cumulative undistributed earnings of certain foreign subsidiaries, because such earnings are intended to be permanently reinvested in those operations. If such earnings were distributed, the Company would accrue estimated additional income tax expense of $62.5 million . The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): Year ended Year ended Unrecognized tax benefits (gross), beginning of period $ 8,875 $ 8,024 Amounts related to Cercacor from prior year (277 ) — Increase from tax positions in prior period 143 131 Increase from tax positions in current period 6,437 1,616 Settlements (296 ) — Lapse of statute of limitations (388 ) (896 ) Unrecognized tax benefits (gross), end of period $ 14,494 $ 8,875 The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $13.1 million and $7.2 million as of December 31, 2016 and January 2, 2016 , respectively. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next 12 months due to the expiration of statutes of limitation and audit settlements. However, due to the uncertainty surrounding the timing of these events, an estimate of the change within the next 12 months cannot be made at this time. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company accrued $0.1 million , $0.2 million and less than $0.1 million , respectively, for interest and penalties related to unrecognized tax benefits as part of income tax expense. Total accrued interest and penalties related to unrecognized tax benefits as of December 31, 2016 and January 2, 2016 were $1.2 million and $1.1 million , respectively. The Company conducts business in multiple jurisdictions, and as a result, one or more of the Company’s subsidiaries files income tax returns in the U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for years through 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 for years through 2009. The Company does not believe that the results of any tax authority examination would have a significant impact on its financial statements.

Quarterly Financial Data (unaud

Quarterly Financial Data (unaudited)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	Quarterly Financial Data (unaudited) The healthcare business in the United States and overseas is typically subject to quarterly fluctuations in hospital and other alternative care admissions. Although this did not occur during fiscal year 2015, the Company’s third fiscal quarter revenues have historically experienced a sequential decline from its second fiscal quarter revenues. The Company believes this is primarily due to the summer vacation season during which people tend to avoid elective procedures. Another factor affecting the seasonality of the Company’s quarterly revenues is the traditional “flu season” that often increases hospital and acute care facility admissions in the first and fourth calendar quarters. Because the Company’s non-sales variable operating expenses often do not fluctuate in the same manner as its quarterly product sales, this may cause fluctuations in the Company’s quarterly operating income that are disproportionate to fluctuations in its quarterly revenue. The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2016 and 2015 (in thousands, except per share data): Quarters Ended Fiscal 2016 April 2, July 2, October 1, December 31, Total revenue $ 171,167 $ 172,636 $ 167,621 $ 183,201 Gross profit 114,213 115,135 110,122 124,329 Operating income 37,337 36,429 36,604 310,400 (1) Net income attributable to Masimo Corporation stockholders 27,577 30,023 27,773 215,293 (2) Net income per share attributable to Masimo Corporation stockholders: Basic (3) $ 0.56 $ 0.61 $ 0.56 $ 4.31 Diluted (3) $ 0.53 $ 0.57 $ 0.52 $ 3.97 (1) On November 5, 2016, the Company entered into the Philips Settlement Agreement, pursuant to which Philips N.V. agreed to pay the Company $300 million. Per the terms of the agreement, $270 million of this settlement is included within Operating income for the quarter ended December 31, 2016. See Note 2 - Summary of Significant Accounting Policies under the subheading “ Litigation Costs and Contingencies ” and Note 15 - Commitments and Contingencies under the subheading “ Litigation ” for additional information on the Phillips Settlement Agreement. (2) The Company early adopted Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) during the quarter ended April 2, 2016. The early adoption of ASU 2016-09 increased net income for the quarters ended April 2, 2016, July 2, 2016, October 1, 2016 and December 31, 2016 by $1.0 million, $4.1 million, $2.6 million and $5.2 million, respectively. (3) Due to the significant impact of the Philips Settlement Agreement on the fourth quarter results, the sum of the basic and diluted earnings per share numbers for each quarter will not equal the basic and diluted earnings per share number for the entire year. Quarters Ended Fiscal 2015 April 4, July 4, October 3, January 2, Total revenue $ 154,537 $ 155,726 $ 152,575 $ 167,273 Gross profit 103,105 102,901 102,232 101,745 Operating income 27,377 27,841 28,140 36,892 (2) Net income attributable to Masimo Corporation stockholders 20,523 19,351 19,325 24,101 Net income per share attributable to Masimo Corporation stockholders: Basic $ 0.39 $ 0.38 $ 0.38 $ 0.48 Diluted $ 0.38 $ 0.36 $ 0.36 $ 0.46 (2) On November 16, 2015, we entered into a Settlement Agreement with Shenzhen Mindray Biomedical Electronics Co., Ltd. and certain of its affiliates (collectively, Mindray), pursuant to which Mindray agreed to pay the Company $25 million, which has been included within Operating income for the quarter ended January 2, 2016.

Schedule II - Valuation and Qua

Schedule II - Valuation and Qualifying Accounts (Notes)	12 Months Ended
	Dec. 31, 2016
Valuation and Qualifying Accounts [Abstract]
Valuation and Qualifying Accounts	MASIMO CORPORATION VALUATION AND QUALIFYING ACCOUNTS Years ended December 31, 2016, January 2, 2016 and January 3, 2015 (in thousands) Description Balance at beginning of period Additions charged to expense and other accounts Amounts charged against reserve Balance at end of period Year ended December 31, 2016 Allowance for doubtful accounts $ 1,967 $ 259 $ (528 ) $ 1,698 Sales returns, allowance and reserves 710 2,320 (2,425 ) 605 Valuation allowance on deferred tax asset 4,196 — (4,196 ) — Year ended January 2, 2016 Allowance for doubtful accounts 1,890 342 (265 ) 1,967 Sales returns, allowance and reserves 472 2,621 (2,383 ) 710 Valuation allowance on deferred tax asset 3,365 831 — 4,196 Year ended January 3, 2015 Allowance for doubtful accounts 1,833 583 (526 ) 1,890 Sales returns, allowance and reserves 429 1,832 (1,789 ) 472 Valuation allowance on deferred tax asset 3,563 — (198 ) 3,365

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), and include the accounts of the Company, its wholly-owned subsidiaries and variable interest entities (VIEs) in which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Fiscal Periods	Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 weeks while a 53 week fiscal year includes three quarters of 13 weeks and one quarter of 14 weeks. The Company’s last 53 week fiscal year was fiscal year 2014. Fiscal years 2015 and 2016 were 52 week fiscal years. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted.
Use of Estimates	Use of Estimates The Company prepares its financial statements in conformity with GAAP, which requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include 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	Reclassifications Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to current period presentation.
Fair Value Measurements	Fair Value Measurements Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect the fair value option under this guidance as to specific assets or liabilities. There were no transfers between level 1, level 2 and level 3 inputs during the years ended December 31, 2016 or January 2, 2016 . The Company carries cash and cash equivalents at cost which approximates fair value. As of December 31, 2016 and January 2, 2016 , the Company did not have any short-term investments.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments that are readily convertible into known amounts of cash, to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of trade receivables recorded upon recognition of revenue for product revenues, reduced by reserves for estimated bad debts and returns. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Credit is extended based on evaluation of the customer’s financial condition. Collateral is not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using a standard cost method, which approximates FIFO (first in, first out) and includes material, labor and overhead. Inventory reserves are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory that has a market price less than the carrying value in inventory.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 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. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , depreciation and amortization expense of property and equipment was $13.0 million , $11.8 million and $9.2 million , respectively.
Intangible Assets	Intangible Assets Intangible assets consist primarily of patents, trademarks, software development costs, customer relationships and acquired technology. Costs related to patents and trademarks, which include legal and application fees, are capitalized and amortized over the estimated useful lives using the straight-line method. Patent and trademark amortization commences once final approval of the patent or trademark has been obtained. Patent costs are amortized over the lesser of 10 years or the patent’s remaining legal life, which assumes renewals, and trademark costs are amortized over 17 years, and their associated amortization cost is included in selling, general and administrative expense in the accompanying consolidated statements of operations. For intangibles purchased in an asset acquisition or business combination, which mainly include patents, trademarks, customer relationships and acquired technology, the useful life is determined in the same manner as noted above. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , amortization of intangible assets was $3.8 million , $4.2 million and $3.4 million , respectively. As of December 31, 2016 and January 2, 2016 , the total costs of patents not yet amortizing was $5.0 million and $5.4 million , respectively. As of December 31, 2016 and January 2, 2016 , the total costs of trademarks not yet amortizing was $0.6 million and $0.9 million , respectively. For the years ended December 31, 2016 and January 2, 2016 , total renewal costs capitalized for patents and trademarks was $0.6 million and $0.7 million , respectively. As of December 31, 2016 , the weighted-average number of years until the next renewal was one year for patents and six years for trademarks. The Company’s policy is to renew its patents and trademarks. Costs to renew intangibles are capitalized and amortized over the remaining useful life of the intangible. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. In accordance with authoritative accounting guidance, costs related to the research and development of new software products and enhancements to existing software products are expensed as incurred until technological feasibility of the product has been established, at which time such costs are capitalized, subject to expected recoverability. For the year ended December 31, 2016 , the Company did not capitalize any software development costs. For each of the years ended January 2, 2016 and January 3, 2015 , the Company capitalized $0.5 million of software development costs. The capitalized costs are amortized over the estimated life of the products, which is generally seven years. For the year ended December 31, 2016 , the Company amortized $0.1 million of capitalized costs. For each of the years ended January 2, 2016 and January 3, 2015 , the Company amortized $0.2 million of capitalized costs. The Company had unamortized software development costs of $0.8 million and $0.9 million at December 31, 2016 and January 2, 2016 , respectively, which is included within intangible assets, net, on the consolidated balance sheets.
Impairment of Goodwill and Intangible assets	Impairment of Goodwill and Intangible assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested at least annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment for each of its reporting units, the Company has the option to first assess the qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company’s qualitative assessment of the recoverability of goodwill considers various macroeconomic, industry-specific and company-specific factors, including: (i) severe adverse industry or economic trends; (ii) significant company-specific actions; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization below its net book value. If, after assessing the totality of events or circumstances, the Company determines it is unlikely that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if the Company concludes otherwise, then the Company is required to perform the first step of the two-step impairment test by comparing the fair value of the reporting unit, determined using future projected discounted operating cash flows, with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, goodwill is considered impaired and the loss is measured by performing step two. Under step two, the impairment loss is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of goodwill. The Company also has the option to bypass the qualitative assessment and proceed directly to performing the first step of the two-step goodwill impairment test. The annual impairment test is performed during the fourth fiscal quarter. The Company reviews identifiable intangible and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flow expected to be generated by the asset. If such asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount exceeds the fair value of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. No impairment of goodwill, intangible assets or other long-lived assets was recorded during the years ended December 31, 2016 , January 2, 2016 or January 3, 2015 .
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method, under which the Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for net operating loss and tax credit carryforwards. Tax positions that meet a more-likely-than-not recognition threshold are recognized in the first reporting period that it becomes more-likely-than-not such tax position will be sustained upon examination. A tax position that meets this more-likely-than-not recognition threshold is recorded at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Previously recognized income tax positions that fail to meet the recognition threshold in a subsequent period are derecognized in that period. Differences between actual results and the Company’s assumptions, or changes in the Company’s assumptions in future periods, are recorded in the period they become known. The Company records potential accrued interest and penalties related to unrecognized tax benefits in income tax expense. As a multinational corporation, the Company is subject to complex tax laws and regulations in various jurisdictions. The application of tax laws and regulations is subject to legal and factual interpretation, judgment and uncertainty. Tax laws themselves are subject to change as a result of changes in fiscal policy, changes in legislation, evolution of regulations and court rulings. Therefore, the actual liability for U.S. or foreign taxes may be materially different from the Company’s estimates, which could result in the need to record additional liabilities or potentially to reverse previously recorded tax liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is recorded against any deferred tax assets when, in the judgment of management, it is more likely than not that all or part of a deferred tax asset will not be realized. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods and tax planning strategies.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue The Company follows the current authoritative guidance for revenue recognition. Based on these requirements, the Company recognizes revenue from the sale of products or services when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable, and (iv) collectability is reasonably assured. In the case of the license or sale of software that does not function together with hardware components to provide the essential functionality of the hardware, revenue is recognized pursuant to the software revenue recognition guidance. The Company derives the majority of its revenue from four primary sources: (i) direct sales under long-term sensor purchase agreements with end-user hospitals where the Company provides up-front monitoring equipment at no up-front charge in exchange for a multi-year sensor purchase commitment, (ii) other direct sales of noninvasive monitoring solutions to end-user hospitals, emergency medical response organizations and other direct customers; (iii) sales of noninvasive monitoring solutions to distributors who then typically resell to end-user hospitals, emergency medical response organizations and other direct customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company’s embedded software technology into their multiparameter 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 (VSOE) of fair value, (ii) third-party evidence of selling price (TPE), and (iii) best estimate of the selling price (ESP). VSOE of fair value is defined as the price charged when the same element is sold separately. VSOE generally exists only when the deliverable is sold separately and is the price actually charged for that deliverable. TPE generally does not exist for the majority of the Company’s products. 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. These contracts generally do not provide for any payments that are not dependent upon the Company’s future delivery of sensors, which are essential to the functionality of the monitoring equipment and, therefore, represent a substantive performance obligation. As a result, the Company generally does not recognize any revenue when the monitoring and 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 and 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. In cases where such contracts do provide for guaranteed payments that are unrelated to the future delivery of sensors, the Company recognizes the net present value of such payments as revenue from the monitoring and related equipment and expenses the cost of such equipment to cost of goods sold, as the equipment is delivered and when installation and training are complete. Some of the Company’s long-term sensor contracts also contain provisions for certain payments to be made directly to the end-user hospital customer at the inception of the arrangement. These payments are generally treated as prepaid discounts which 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 that 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 majority of 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 certain Medtronic 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 Medtronic royalty report, approximately sixty days after the end of the previous quarter.
Taxes Collected From Customers and Remitted to Governmental Authorities	Taxes Collected From Customers and Remitted to Governmental Authorities Pursuant to authoritative guidance, the Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities.
Share-Based Compensation	Share-Based Compensation The Company expenses the estimated fair value of employee stock options and similar awards based on the fair value of the stock option on the date of grant, in accordance with the current authoritative accounting guidance. In calculating the fair value on the date of grant, the Company uses the Black-Scholes option pricing model which requires the input of subjective assumptions. These assumptions include estimating the length of time employees will retain their stock options before exercising them, the estimated volatility of the Company’s stock price over the expected term and the number of options that will ultimately be forfeited prior to meeting their vesting requirements. The cost is recognized over the period during which an employee is required to provide services in exchange for the stock option, which is usually the vesting period. The Company has elected to recognize share-based compensation expense on a straight-line basis over the requisite service period for the entire stock option. Options granted prior to January 1, 2006 were accounted for using the intrinsic value method and using the minimum value method for its pro forma disclosures, unless such options were modified, repurchased or canceled. The cash flows related to the reduction of income taxes paid as a result of the deduction triggered by employee exercise of stock options granted or modified prior to January 1, 2006 continue to be presented within operating cash flows.
Shipping and Handling Costs and Revenue	Shipping and Handling Costs and Revenue All shipping and handling costs are expensed as incurred and are recorded as a component of cost of goods sold in the accompanying consolidated statements of operations. Charges for shipping and handling billed to customers are included as a component of product revenue in accordance with authoritative accounting guidance.
Product Warranty	Product Warranty The Company provides a warranty against defects in material and workmanship for a period ranging from six months to forty-eight months, depending on the product type. In the case of long-term sales agreements, the Company typically warranties the products for the term of the agreement, which ranges from three to 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 goods sold. Revenue related to any extended warranty is recognized over the life of the contract, while the product warranty costs related to the long-term sales agreements are expensed as incurred.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. These costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Advertising costs for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 were $11.0 million , $10.7 million and $10.7 million , respectively.
Research and Development	Research and Development Costs related to research and development activities are expensed as incurred. These costs include personnel costs, materials, depreciation and amortization on associated tangible and intangible assets and an allocation of facility costs, all of which are directly related to research and development activities.
Foreign Currency Translation	Foreign Currency Translation The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has several foreign sales support subsidiaries that maintain foreign offices, of which the largest are in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company transacts with foreign customers in currencies other than the U.S. Dollar and, in doing so, experiences realized and unrealized foreign currency gains or losses on its foreign denominated receivables. In addition, certain intercompany transactions give rise to realized and unrealized foreign currency gains or losses. Also, any other transactions between the Company or its subsidiaries and a third-party, denominated in a currency different from the functional currency, are foreign currency transactions. Realized and unrealized foreign currency gains or losses are included as a component of non-operating expense within the Company’s consolidated statements of operations as incurred and are converted to U.S. Dollars at average exchange rates for the respective period. These transaction losses were $0.1 million , $0.5 million and $1.0 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Assets and liabilities of foreign subsidiaries, whose functional currency is not the U.S. Dollar, are translated into U.S. Dollars at the rate of exchange at the balance sheet date. Statement of operations amounts are translated at the average monthly exchange rates for the respective periods. For these foreign subsidiaries whose functional currency is not the U.S. Dollar, translation gains and losses are included as a component of accumulated other comprehensive income (loss) within Masimo Corporation stockholders’ equity in the accompanying consolidated balance sheets
Comprehensive Income	Comprehensive Income Authoritative accounting guidance establishes requirements for reporting and disclosure of comprehensive income and its components. Comprehensive income includes foreign currency translation adjustments and related tax benefits, which have been excluded from net income including noncontrolling interests and reflected in Masimo Corporation stockholders’ equity.
Net Income Per Share	Net Income Per Share Basic net income per share attributable to Masimo Corporation stockholders is computed by dividing net income attributable to Masimo Corporation stockholders by the weighted-average number of shares outstanding during each reporting period. Diluted net income per share attributable to Masimo Corporation stockholders 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 reporting period, if the effect of potential shares is dilutive. Potential shares include the incremental shares of stock issuable upon the assumed exercise of stock options and the expected vesting of stock awards as calculated under the treasury stock method. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , weighted options to purchase 0.2 million , 0.7 million and 5.7 million shares of common stock, respectively, were outstanding, but were not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive. For the year ended December 31, 2016 , certain restricted stock units (RSUs) are considered contingently issuable shares as their vesting is contingent upon the occurrence of certain future events. These events have not occurred and are not considered probable of occurring as of December 31, 2016 . Therefore, 2.7 million of weighted average shares have been excluded from the calculation of potential shares. For additional information with respect to these RSUs, please see “Employment and Severance Agreements” in Note 15 to these consolidated financial statements.
Segment Information	Segment Information The Company uses the “management approach” in determining reportable business segments. The management approach designates the internal organization used by management for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Based on this assessment, management has determined it operates in one reportable business segment, which is comprised of patient monitoring and related products
New Accounting Pronouncement	Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 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 ended December 31, 2016. The early adoption of this standard resulted in a $13.0 million reduction to the Company’s income tax provision and a related increase to basic and diluted net income per share attributable to Masimo Corporation stockholders of $0.26 and $0.24, respectively, for the year ended December 31, 2016. In connection with such adoption, the Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In addition, the Company elected to apply the presentation requirements for cash flows related to excess tax benefits retrospectively to all periods presented, which resulted in an increase to both net cash provided by operating activities and net cash used in financing activities of $3.0 million for the year ended January 2, 2016 and a decrease to net cash provided by operating activities and an increase to net cash provided by financing activities of $0.4 million for the year ended January 3, 2015 . In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17). The new standard requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years beginning after December 15, 2016 and interim periods within those annual periods. The Company early adopted this standard retrospectively during the fourth quarter of the fiscal year ended January 2, 2016 and such adoption did not have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU 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 ended December 31, 2016, and its adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements Pending Adoption In December 2016, FASB issued ASU No. 2016-19, Technical Corrections and Improvements (ASU 2016-19) . The new standard is intended to provide clarity to the Accounting Standards Codification or correct unintended application of the guidance that is not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. ASU 2016-19 is effective for annual and interim fiscal reporting periods beginning after December 15, 2017 with respect to the amendments that require transition guidance, and early adoption is permitted. All other amendments were effective on issuance. The Company is currently evaluating the expected impact of the amendments that require transition guidance, but does not expect these to have a material impact on its consolidated financial statements upon adoption. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18) . The new standard is intended to reduce diversity in practice by adding or clarifying guidance on classification and presentation of changes in restricted cash on the statement of cash flows. ASU 2016-18 is effective for annual and interim fiscal reporting periods beginning after December 15, 2017, 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 upon adoption. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory (ASU 2016-16) . The new standard eliminates the exception that allowed the income tax consequences of an intra-entity transfer of assets other than inventory to be deferred the until the transferred asset was sold to a third party or otherwise recovered through use, and now requires recognition of such income tax consequences an the time the non-inventory asset is transferred. ASU 2016-16 is effective for annual and interim fiscal reporting periods beginning after December 15, 2017, 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 upon adoption. In August 2016, the FASB issued ASU 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 upon adoption. In June 2016, the FASB issued ASU 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 upon adoption. In February 2016, the FASB issued ASU 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. The Company currently expects to complete its assessment of the full financial impact of the new lease accounting guidance during the next eighteen months and has not yet finalized any decision related to the timing of adoption for this guidance. In May 2014, the FASB issued ASU 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 ASU 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 ASU 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 ASU 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 ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients (ASU 2016-12), which further amended ASU 2014-09 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. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (ASU 2016-20) . ASU 2016-20 affects narrow aspects of Topic 606, including contract modifications, contract costs, and the balance sheet classification of items as contract assets versus receivables. The Company is continuing to evaluate the expected impact of the new revenue guidance contained in Topic 606 on its consolidated financial statements and 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 Accoun28

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands): December 31, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 305,970 $ — $ — $ 305,970 $ 305,970 Level 1: None — — — — — Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 305,970 $ — $ — $ 305,970 $ 305,970 January 2, 2016 Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Cash $ 112,168 $ — $ — $ 112,168 $ 112,168 Level 1: Money market funds 20,149 — — 20,149 20,149 Level 2: None — — — — — Level 3: None — — — — — Total assets measured at fair value $ 132,317 $ — $ — $ 132,317 $ 132,317
Components of Property and Equipment	Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 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): December 31, January 2, Building and building improvements $ 85,966 $ 78,877 Machinery and equipment 41,683 42,460 Land 23,762 23,738 Computer equipment 13,549 15,023 Tooling 12,895 13,079 Furniture and office equipment 9,669 8,885 Leasehold improvements 8,289 7,734 Demonstration units 448 973 Vehicles 45 45 Construction-in-progress 7,923 7,124 Total property and equipment 204,229 197,938 Accumulated depreciation and amortization (68,233 ) (65,472 ) Total property and equipment, net $ 135,996 $ 132,466
Changes in Product Warranty Accrual	Changes in the product warranty accrual were as follows (in thousands): Year Ended December 31, January 2, January 3, Warranty accrual, beginning of period $ 1,222 $ 1,416 $ 1,161 Accrual for warranties issued (including specific accrual) 871 800 1,144 Changes in pre-existing warranties (including changes in estimates) 110 61 138 Settlements made (1,293 ) (1,055 ) (1,027 ) Warranty accrual, end of period $ 910 $ 1,222 $ 1,416
Computation of Basic and Diluted Net Income Per Share	The computation of basic and diluted net income per share attributable to Masimo Corporation stockholders is as follows (in thousands, except per share data): Year ended December 31, January 2, January 3, Net income attributable to stockholders of Masimo Corporation: Net income including noncontrolling interest $ 300,666 $ 81,500 $ 74,363 Net income (loss) attributable to the noncontrolling interest — (1,800 ) 1,845 Net income attributable to Masimo Corporation stockholders $ 300,666 $ 83,300 $ 72,518 Basic net income per share attributable to Masimo Corporation stockholders: Net income attributable to Masimo Corporation stockholders $ 300,666 $ 83,300 $ 72,518 Weighted-average shares outstanding - basic 49,530 51,311 54,708 Basic net income per share attributable to Masimo Corporation stockholders $ 6.07 $ 1.62 $ 1.33 Diluted net income per share attributable to Masimo Corporation stockholders: Weighted-average shares outstanding 49,530 51,311 54,708 Diluted share equivalents: stock options and RSUs 3,665 2,396 863 Weighted-average shares outstanding - diluted 53,195 53,707 55,571 Diluted net income per share attributable to Masimo Corporation stockholders $ 5.65 $ 1.55 $ 1.30
Supplemental Schedule of Cash Flow	Supplemental Cash Flow Information (in thousands) Year ended December 31, January 2, January 3, Cash paid during the year for: Interest (net of amounts capitalized) $ 4,052 $ 2,293 $ 469 Income taxes 31,230 36,194 19,863 Noncash investing and financing activities: Unpaid purchases of property, plant and equipment 2,009 4,371 12,155 Unsettled common stock proceeds 165 — — Unsettled common stock repurchases — 4,815 —

Variable Interest Entities (V29

Variable Interest Entities (VIEs) (Tables)	12 Months Ended
	Dec. 31, 2016
Variable Interest Entity [Abstract]
Condensed Consolidating Schedules of Balance Sheets	The consolidating balance sheet as of January 2, 2016 , and statements of operations for the years ended January 2, 2016 and January 3, 2015 reflecting the Company, Cercacor and related eliminations (in thousands) are as follows. January 2, Consolidating Balance Sheet: Masimo Corp Cercacor Cercacor Elim Total ASSETS Cash and cash equivalents $ 131,554 $ 763 $ — $ 132,317 Accounts receivable, net 80,937 23 — 80,960 Inventories 62,038 — — 62,038 Prepaid income taxes 2,342 62 — 2,404 Other current assets 21,230 1,277 (1,084 ) 21,423 Deferred cost of goods sold 66,844 — — 66,844 Property and equipment, net 131,877 589 — 132,466 Intangible assets, net 29,045 2,858 (4,347 ) 27,556 Goodwill 20,394 — — 20,394 Deferred income taxes 44,320 — — 44,320 Other assets 11,013 — — 11,013 Total assets $ 601,594 $ 5,572 $ (5,431 ) $ 601,735 LIABILITIES Accounts payable $ 25,798 $ 67 $ — $ 25,865 Accrued compensation 37,715 700 — 38,415 Accrued liabilities 45,142 164 (1,084 ) 44,222 Income taxes payable 2,565 212 — 2,777 Deferred revenue 21,280 376 (376 ) 21,280 Current portion of capital lease obligations 74 — — 74 Deferred revenue 298 3,406 (3,406 ) 298 Long-term debt 185,071 — — 185,071 Other liabilities 7,964 57 — 8,021 EQUITY Common stock 50 14 (14 ) 50 Treasury stock (340,873 ) (100 ) 100 (340,873 ) Additional paid-in capital 332,417 842 (842 ) 332,417 Accumulated other comprehensive loss (4,739 ) — — (4,739 ) Retained earnings (deficit) 288,832 (166 ) (106 ) 288,560 Total Masimo Corporation stockholders’ equity 275,687 590 (862 ) 275,415 Noncontrolling interest — — 297 297 Total equity 275,687 590 (565 ) 275,712 Total liabilities and equity $ 601,594 $ 5,572 $ (5,431 ) $ 601,735
Condensed Consolidating Schedules of Statements of Comprehensive Income	Year ended Year ended Consolidating Statements of Operations: Masimo Cercacor Cercacor Total Masimo Corp Cercacor Cercacor Elim Total Total revenue $ 630,111 $ 6,910 $ (6,910 ) $ 630,111 $ 586,643 $ 5,970 $ (5,970 ) $ 586,643 Cost of goods sold 226,788 — (6,660 ) 220,128 201,334 — (5,470 ) 195,864 Gross profit 403,323 6,910 (250 ) 409,983 385,309 5,970 (500 ) 390,779 Operating expenses: Selling, general and administrative 250,627 2,348 (250 ) 252,725 238,674 2,842 (500 ) 241,016 Research and development 50,292 6,325 — 56,617 53,449 3,132 — 56,581 Litigation settlement, award and/or defense costs (19,609 ) — — (19,609 ) (8,010 ) (2,321 ) — (10,331 ) Total operating expenses 281,310 8,673 (250 ) 289,733 284,113 3,653 (500 ) 287,266 Operating income (loss) 122,013 (1,763 ) — 120,250 101,196 2,317 — 103,513 Non-operating expense (income) 3,910 (571 ) 566 3,905 1,505 (33 ) — 1,472 Income (loss) before provision for income taxes 118,103 (1,192 ) (566 ) 116,345 99,691 2,350 — 102,041 Provision for income taxes 34,803 42 — 34,845 27,173 505 — 27,678 Net income (loss) including noncontrolling interests 83,300 (1,234 ) (566 ) 81,500 72,518 1,845 — 74,363 Net (loss) income attributable to noncontrolling interests — — (1,800 ) (1,800 ) — — 1,845 1,845 Net income (loss) attributable to Masimo Corporation stockholders $ 83,300 $ (1,234 ) $ 1,234 $ 83,300 $ 72,518 $ 1,845 $ (1,845 ) $ 72,518

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Components of Inventory	Inventories consist of the following (in thousands): December 31, January 2, Raw materials $ 32,647 $ 25,781 Work-in-process 7,701 4,337 Finished goods 32,194 31,920 Total $ 72,542 $ 62,038

Other Current Assets (Tables)

Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	December 31, January 2, Prepaid expenses $ 13,051 $ 9,930 Royalties receivable 7,500 7,200 Employee loans and advances 305 320 Due from related party 24 — Other current assets 5,134 3,973 Total other current assets $ 26,014 $ 21,423

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Components of Property and Equipment	Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Building 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): December 31, January 2, Building and building improvements $ 85,966 $ 78,877 Machinery and equipment 41,683 42,460 Land 23,762 23,738 Computer equipment 13,549 15,023 Tooling 12,895 13,079 Furniture and office equipment 9,669 8,885 Leasehold improvements 8,289 7,734 Demonstration units 448 973 Vehicles 45 45 Construction-in-progress 7,923 7,124 Total property and equipment 204,229 197,938 Accumulated depreciation and amortization (68,233 ) (65,472 ) Total property and equipment, net $ 135,996 $ 132,466

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Intangible Assets	Intangible assets, net consist of the following (in thousands): December 31, January 2, Cost Patents $ 19,950 $ 21,619 Customer relationships 7,669 7,669 Licenses 7,500 — Acquired technology 5,580 5,580 Trademarks 3,777 3,944 Capitalized software development costs 2,539 2,539 Other 3,674 2,541 Total cost 50,689 43,892 Accumulated amortization Patents (7,427 ) (7,743 ) Customer relationships (3,387 ) (2,620 ) Acquired technology (2,508 ) (1,950 ) Trademarks (1,331 ) (1,106 ) Capitalized software development costs (1,766 ) (1,647 ) Other (4,894 ) (1,270 ) Total accumulated amortization (21,313 ) (16,336 ) Net carrying amount $ 29,376 $ 27,556
Estimated Amortization Expense	Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2017 $ 4,232 2018 3,925 2019 3,685 2020 3,329 2021 2,813 Thereafter 11,392 Total $ 29,376

Goodwill (Tables)

Goodwill (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Goodwill	Changes in the goodwill balance were as follows (in thousands): December 31, January 2, Goodwill, beginning of period $ 20,394 $ 20,979 Foreign currency translation adjustment (614 ) (585 ) Goodwill, end of period $ 19,780 $ 20,394

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Schedule of Accrued Liabilities	10. Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, January 2, Accrued customer rebates, fees and reimbursements $ 21,103 $ 11,857 Accrued taxes 5,135 5,263 Accrued legal fees 1,362 5,785 Accrued warranty 910 1,222 Accrued donations 503 5,612 Accrued arbitration award — 5,391 Accrued stock repurchases — 4,815 Accrued other 2,463 4,277 Total accrued liabilities $ 31,476 $ 44,222

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Debt	Long-term debt consists of the following (in thousands): December 31, January 2, Revolving line of credit $ — $ 185,000 Long-term portion of capital lease obligations acquisition — 71 Total long-term debt $ — $ 185,071

Other Liabilities, Long-Term (T

Other Liabilities, Long-Term (Tables)	12 Months Ended
	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Components of Other Liabilities	Other long-term liabilities consist of the following (in thousands): December 31, January 2, Unrecognized tax benefit $ 13,442 $ 7,747 Deferred rent, long-term 558 76 Deferred tax liability, long-term 340 194 Other 247 4 Total other liabilities, long-term $ 14,587 $ 8,021

Equity Stock Repurchase Program

Equity Stock Repurchase Program Table (Tables)	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Schedule of Stock by Class	The following table provides a summary of the Company’s stock repurchase activities during the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 (in thousands, except per share amounts): Years Ended December 31, January 2, January 3, Shares repurchased 1,496 4,148 4,455 Average cost per share $ 42.39 $ 37.36 $ 23.00 Value of shares repurchased $ 63,402 $ 154,967 $ 102,453

Share-Based Compensation (Table

Share-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans	number and weighted-average exercise price of stock options issued and outstanding under all stock plans, is presented below (in thousands, except for exercise price): Year ended Year ended Year ended Shares Average Shares Average Exercise Price Shares Average Options outstanding, beginning of period 9,202 $ 25.46 9,956 $ 23.59 8,911 $ 22.76 Granted 1,290 39.94 914 36.18 1,887 24.83 Canceled (172 ) 29.13 (218 ) 24.33 (416 ) 24.46 Expired — — — — — — Exercised (1,799 ) 20.76 (1,450 ) 19.54 (426 ) 10.95 Options outstanding, end of period 8,521 $ 28.56 9,202 25.46 9,956 $ 23.59 Options exercisable, end of period 4,988 $ 26.33 5,609 $ 24.72 5,859 $ 23.63
Number and Weighted Average Exercise Price of Outstanding and Exercisable Options	The number and weighted-average exercise price of outstanding and exercisable stock options segregated by exercise price ranges (in thousands, except range of exercise prices and remaining contractual life) were as follows: Year ended Year ended Options Outstanding Options Exercisable Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Average Remaining Contractual Life Number of Options Number of Options Average Remaining Contractual Life Number of Options $8.00 to $20.00 565 5.34 296 1,367 3.79 947 $20.01 to $30.00 4,297 5.31 2,940 5,196 6.17 3,006 $30.01 to $40.00 3,233 5.89 1,591 2,349 5.00 1,534 $40.01 to $50.00 311 6.14 161 290 6.81 122 $50.01 to $60.00 91 9.65 — — — $60.01 to $70.00 24 9.90 — — — Total 8,521 5.62 4,988 9,202 5.53 5,609
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	A summary of unvested RSU award activity is presented below (in thousands) except for per share amounts: Year ended Year ended Year ended Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value RSUs outstanding, beginning of period 2,703 $ 41.45 — $ — — $ — Granted 6 43.09 2,703 41.45 — — Canceled — — — — — — Expired — — — — — — Vested (3 ) 41.45 — — — — RSUs outstanding, end of period 2,706 $ 41.45 2,703 $ 41.45 — $ —
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 stock options granted at the date of grant were as follows: Year ended Year ended Year ended Risk-free interest rate 1.0% to 2.1% 1.3% to 1.9% 1.4% to 1.9% Expected term 5.5 years to 5.7 years 5.5 years to 5.7 years 5.1 years to 5.5 years Estimated volatility 29.8% to 35.7% 32.0% to 37.4% 31.7% to 36.5% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $13.64 per share $12.20 per share $7.85 per share
Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income	The following table presents the total share-based compensation expense that is included in each functional line item of the consolidated statements of operations (in thousands): Year ended Year ended Year ended Cost of goods sold $ 355 $ 348 $ 436 Selling, general and administrative 9,443 8,139 8,812 Research and development 2,705 2,338 1,757 Total $ 12,503 $ 10,825 $ 11,005

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments Under Operating and Capital Leases	Future minimum lease payments, including interest, under operating and capital leases for each of the following fiscal years ending on or about December 31 are (in thousands): Fiscal year Operating Capital Total 2017 $ 5,829 $ 75 $ 5,904 2018 5,486 — 5,486 2019 4,643 — 4,643 2020 2,598 — 2,598 2021 1,391 — 1,391 Thereafter 7,630 — 7,630 Total $ 27,577 $ 75 $ 27,652

Segment Information and Enter41

Segment Information and Enterprise Reporting (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Analysis of Product Revenue Based upon Geographic Area Shipped	The following schedule presents an analysis of the Company’s product revenue based upon the geographic area to which the product was shipped (in thousands): Year ended Year ended Year ended Geographic area by destination United States $ 465,588 70.1 % $ 421,628 70.3 % $ 380,232 68.3 % Europe, Middle East and Africa 112,273 16.9 105,323 17.6 100,747 18.1 Asia and Australia 65,955 10.0 55,675 9.3 57,951 10.4 North and South America (excluding United States) 20,030 3.0 $ 16,708 2.8 $ 17,834 3.2 Total Product Revenue $ 663,846 100 % $ 599,334 100 % $ 556,764 100.0 %
Long-lived Assets by Geographic Areas	Year ended Year ended Year ended Long-lived assets by geographic area United States $ 216,784 96.3 % $ 203,553 96.8 % $ 170,117 96.2 % International 8,383 3.7 % 6,770 3.2 6,805 3.8 Total $ 225,167 100.0 % $ 210,323 100.0 % $ 176,922 100.0 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Components of Income Before Provision for Income Taxes	The components of income before provision for income taxes are as follows (in thousands): Year ended Year ended Year ended United States $ 320,702 $ 87,762 $ 69,282 Foreign 97,639 28,583 32,759 Total $ 418,341 $ 116,345 $ 102,041
Current and Deferred Provision (Benefit) for Income Taxes	The following table presents the current and deferred provision (benefit) for income taxes (in thousands): Year ended Year ended Year ended Current: Federal $ 99,533 $ 31,983 $ 22,553 State 6,922 2,388 2,736 Foreign 5,815 2,448 2,709 112,270 36,819 27,998 Deferred: Federal 2,982 (900 ) 342 State 2,331 (1,206 ) (811 ) Foreign 92 132 149 5,405 (1,974 ) (320 ) Total $ 117,675 $ 34,845 $ 27,678
Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate	The reconciliation of the U.S. federal statutory tax rate to the Company’s effective tax rate is as follows: Year ended Year ended Year ended Statutory regular federal income tax rate 35.0 % 35.0 % 35.0 % State provision, net of federal benefit 1.4 0.7 1.2 Nondeductible items 0.8 1.7 1.3 Foreign income taxed at different rates (5.6 ) (6.3 ) (8.2 ) Tax credits (0.5 ) (1.7 ) (1.5 ) Change in federal valuation allowance — 0.4 (0.1 ) Excess stock based compensation (3.0 ) — — Other — 0.2 (0.6 ) Total 28.1 % 30.0 % 27.1 %
Components of Deferred Tax Assets	The components of the deferred tax assets are as follows (in thousands): December 31, January 2, Deferred tax assets: Tax credits $ 802 $ 4,683 Deferred revenue 5,393 3,994 Accrued liabilities 16,244 20,817 Share-based compensation 18,680 20,688 Other 1,902 2,416 Total 43,021 52,598 Valuation allowance — (4,196 ) Total deferred tax assets 43,021 48,402 Deferred tax liabilities: Property and equipment (2,691 ) — State taxes and other (1,695 ) (4,276 ) Total deferred tax liabilities (4,386 ) (4,276 ) Net deferred tax assets $ 38,635 $ 44,126
Reconciliation of Total Amounts of Unrecognized Tax Benefits	The following is a tabular reconciliation of the total amounts of unrecognized tax benefits (in thousands): Year ended Year ended Unrecognized tax benefits (gross), beginning of period $ 8,875 $ 8,024 Amounts related to Cercacor from prior year (277 ) — Increase from tax positions in prior period 143 131 Increase from tax positions in current period 6,437 1,616 Settlements (296 ) — Lapse of statute of limitations (388 ) (896 ) Unrecognized tax benefits (gross), end of period $ 14,494 $ 8,875

Quarterly Financial Data (una43

Quarterly Financial Data (unaudited) (Tables)	12 Months Ended
	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Data	The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2016 and 2015 (in thousands, except per share data): Quarters Ended Fiscal 2016 April 2, July 2, October 1, December 31, Total revenue $ 171,167 $ 172,636 $ 167,621 $ 183,201 Gross profit 114,213 115,135 110,122 124,329 Operating income 37,337 36,429 36,604 310,400 (1) Net income attributable to Masimo Corporation stockholders 27,577 30,023 27,773 215,293 (2) Net income per share attributable to Masimo Corporation stockholders: Basic (3) $ 0.56 $ 0.61 $ 0.56 $ 4.31 Diluted (3) $ 0.53 $ 0.57 $ 0.52 $ 3.97 (1) On November 5, 2016, the Company entered into the Philips Settlement Agreement, pursuant to which Philips N.V. agreed to pay the Company $300 million. Per the terms of the agreement, $270 million of this settlement is included within Operating income for the quarter ended December 31, 2016. See Note 2 - Summary of Significant Accounting Policies under the subheading “ Litigation Costs and Contingencies ” and Note 15 - Commitments and Contingencies under the subheading “ Litigation ” for additional information on the Phillips Settlement Agreement. (2) The Company early adopted Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (ASU 2016-09) during the quarter ended April 2, 2016. The early adoption of ASU 2016-09 increased net income for the quarters ended April 2, 2016, July 2, 2016, October 1, 2016 and December 31, 2016 by $1.0 million, $4.1 million, $2.6 million and $5.2 million, respectively. (3) Due to the significant impact of the Philips Settlement Agreement on the fourth quarter results, the sum of the basic and diluted earnings per share numbers for each quarter will not equal the basic and diluted earnings per share number for the entire year. Quarters Ended Fiscal 2015 April 4, July 4, October 3, January 2, Total revenue $ 154,537 $ 155,726 $ 152,575 $ 167,273 Gross profit 103,105 102,901 102,232 101,745 Operating income 27,377 27,841 28,140 36,892 (2) Net income attributable to Masimo Corporation stockholders 20,523 19,351 19,325 24,101 Net income per share attributable to Masimo Corporation stockholders: Basic $ 0.39 $ 0.38 $ 0.38 $ 0.48 Diluted $ 0.38 $ 0.36 $ 0.36 $ 0.46 (2) On November 16, 2015, we entered into a Settlement Agreement with Shenzhen Mindray Biomedical Electronics Co., Ltd. and certain of its affiliates (collectively, Mindray), pursuant to which Mindray agreed to pay the Company $25 million, which has been included within Operating income for the quarter ended January 2, 2016.

Summary of Significant Accoun44

Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) - Recurring - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	$ 305,970	$ 132,317
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	305,970	132,317
Cash, Cash Equivalents	305,970	132,317
Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	305,970	112,168
Accumulated Gross Unrealized Gain, before Tax		0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	305,970	112,168
Cash, Cash Equivalents	305,970	112,168
Fair Value, Inputs, Level 1 | Bank Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	0
Accumulated Gross Unrealized Gain, before Tax	0
Accumulated Gross Unrealized Loss, before Tax	0
Estimated Fair Value	0
Cash, Cash Equivalents	0
Fair Value, Inputs, Level 1 | Money Market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis		20,149
Accumulated Gross Unrealized Gain, before Tax		0
Accumulated Gross Unrealized Loss, before Tax		0
Estimated Fair Value		20,149
Cash, Cash Equivalents		20,149
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	0	0
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	0	0
Cash, Cash Equivalents	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Amortized Cost Basis	0	0
Accumulated Gross Unrealized Gain, before Tax	0	0
Accumulated Gross Unrealized Loss, before Tax	0	0
Estimated Fair Value	0	0
Cash, Cash Equivalents	$ 0	$ 0

Summary of Significant Accoun45

Summary of Significant Accounting Policies - Useful Life (Details)	12 Months Ended
	Dec. 31, 2016
Building
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	39 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Tooling
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Computer equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Computer equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years
Furniture and office equipment | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	2 years
Furniture and office equipment | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	6 years
Demonstration Units [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Land, Buildings and Improvements [Member] | Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years
Land, Buildings and Improvements [Member] | Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	15 years

Summary of Significant Accoun46

Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions	Nov. 05, 2016USD ($)	Oct. 01, 2014USD ($)	Dec. 31, 2016USD ($)segmentshares	Jan. 02, 2016USD ($)shares	Jan. 03, 2015USD ($)shares	Dec. 28, 2013USD ($)
Summary Of Significant Accounting Policies [Line Items]
Excess Tax Benefit from Share-based Compensation, Operating Activities			$ 13,000,000	$ 3,000,000	$ 400,000
Litigation Settlement, Amount		$ 466,800,000
Short-term investments			0	0
Accounts receivable, net of allowance for doubtful accounts			101,720,000	80,960,000
Accumulated depreciation and amortization on property and equipment			13,000,000	11,800,000	9,200,000
Accumulated amortization			21,313,000	16,336,000
Cost of patents, Gross			5,000,000	5,400,000
Cost of trademarks, Gross			600,000	900,000
Capitalized Software Development Costs for Software Sold to Customers			$ 0	500,000	500,000
Product life estimate			7 years
Capitalized Computer Software, Amortization			$ 100,000	200,000	200,000
Unamortized cost by company			800,000	900,000
Impairment of goodwill, intangible assets and other long-lived assets			$ 0	0	0
Number of Sources of Product Revenue | segment			4
Royalty Revenue, Number of Days Royalty Revenue is Adjusted Subsequent to Quarter End			60 days
Advertising costs				11,000,000	10,700,000	$ 10,700,000
Foreign currency transaction gain (loss)			$ 100,000	$ 500,000	$ 1,000,000
Options to purchase of shares of common stock | shares			0.2	0.7	5.7
Number of reportable segments | segment			1
Patents
Summary Of Significant Accounting Policies [Line Items]
Estimated life maximum			10 years
Accumulated amortization			$ 7,427,000	$ 7,743,000
Total renewal costs capitalized			$ 600,000	700,000
Weighted average number of years until the next renewal			1 year
Trademarks
Summary Of Significant Accounting Policies [Line Items]
Estimated life maximum			17 years
Accumulated amortization			$ 1,331,000	1,106,000
Total renewal costs capitalized				600,000
Weighted average number of years until the next renewal			6 years
Patents and trademarks
Summary Of Significant Accounting Policies [Line Items]
Accumulated amortization			$ 3,800,000	$ 4,200,000	$ 3,400,000
Minimum
Summary Of Significant Accounting Policies [Line Items]
Product life estimate			3 years
Warranty period for defects in material and workmanship			6 months
Maximum
Summary Of Significant Accounting Policies [Line Items]
Product life estimate			6 years
Warranty period for defects in material and workmanship			48 months
Restricted Stock Units (RSUs) [Member]
Summary Of Significant Accounting Policies [Line Items]
Weighted Average Number of Shares, Contingently Issuable | shares			2.7
Masimo vs Philips N.V. [Member]
Summary Of Significant Accounting Policies [Line Items]
Litigation Settlement, Amount	$ 300,000,000
Collaborative Arrangement, Rights and Obligations			30

Summary of Significant Accoun47

Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning of period	$ 1,222	$ 1,416	$ 1,161
Provision for warranty costs	871	800	1,144
Changes in pre-existing warranties (including changes in estimates)	(110)	(61)	(138)
Settlements made	(1,293)	(1,055)	(1,027)
Warranty accrual, end of period	$ 910	$ 1,222	$ 1,416

Summary of Significant Accoun48

Summary of Significant Accounting Policies - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interest									$ 300,666	$ 81,500	$ 74,363
Net income (loss) attributable to the noncontrolling interest									0	(1,800)	1,845
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$ 215,293	$ 27,773	$ 30,023	$ 27,577	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 300,666	$ 83,300	$ 72,518
Weighted-average shares outstanding									49,530	51,311	54,708
Basic net income per share attributable to Masimo Corporation stockholders	$ 4.31	$ 0.56	$ 0.61	$ 0.56	$ 0.48	$ 0.38	$ 0.38	$ 0.39	$ 6.07	$ 1.62	$ 1.33
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted-average shares outstanding									49,530	51,311	54,708
Diluted share equivalents: stock options and RSUs									3,665	2,396	863
Weighted-average shares outstanding - diluted									53,195	53,707	55,571
Diluted net income per share attributable to Masimo Corporation stockholders	$ 3.97	$ 0.52	$ 0.57	$ 0.53	$ 0.46	$ 0.36	$ 0.36	$ 0.38	$ 5.65	$ 1.55	$ 1.30

Summary of Significant Accoun49

Summary of Significant Accounting Policies-Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Cash paid during the year for:
Interest (net of amounts capitalized)	$ 4,052	$ 2,293	$ 469
Income taxes	31,230	36,194	19,863
Noncash investing and financing activities:
Unpaid purchases of property, plant and equipment	2,009	4,371	12,155
Proceeds from stock options exercised, unsettled at period end	165	0	0
Stock repurchased, unsettled at period end	$ 0	$ 4,815	$ 0

Variable Interest Entities (V50

Variable Interest Entities (VIEs) - Additional Information (Detail)	Aug. 07, 2007shares	Jan. 02, 2007company	Jul. 31, 2015USD ($)	Feb. 28, 2009	Dec. 31, 2016USD ($)	Jan. 02, 2016USD ($)	Jan. 03, 2015USD ($)	Dec. 28, 2013USD ($)	Dec. 29, 2012	Dec. 31, 2011
Variable Interest Entity [Line Items]
Number of Companies with Rights to Intellectual Property | company		2
Patent and Licensing Fee - Aggregate			$ 2,400,000
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Minimum aggregate royalty payments					$ 6,400,000	$ 6,700,000	$ 5,500,000
Percentage Reimbursed				50.00%					60.00%	50.00%
Total expenses for additional services, material and supplies					0	300,000	3,100,000
Payment for Administrative Fees					200,000	$ 200,000	200,000	$ 200,000
Minimum | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Minimum aggregate royalty payments					5,000,000
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Percentage Reimbursed						60.00%
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross							900,000
Development Partner [Member] [Member]
Variable Interest Entity [Line Items]
Related Party Transaction, Amounts of Transaction					$ 255,000	$ 200,000	0
Two Thousand Seven Plan [Member]
Variable Interest Entity [Line Items]
Common Stock Shares Added To Share Reserve | shares	1,700,000
Engineering-related Payroll Expenses [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned							1,600,000
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross							$ 1,400,000

Variable Interest Entities (V51

Variable Interest Entities (VIEs) - Condensed Consolidating Schedules of Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
ASSETS
Cash and cash equivalents	$ 305,970	$ 132,317	$ 134,453	$ 95,466
Accounts receivable, net		80,960
Inventories	72,542	62,038
Prepaid income taxes		2,404
Other current assets	26,014	21,423
Deferred cost of goods sold	79,948	66,844
Property and equipment, net	135,996	132,466
Intangible assets, net	29,376	27,556
Goodwill	19,780	20,394	20,979
Deferred income taxes	38,975	44,320
Other assets		11,013
Total assets	820,525	601,735
LIABILITIES
Accounts payable	31,125	25,865
Accrued compensation	43,180	38,415
Accrued liabilities	31,476	44,222
Income taxes payable	76,316	2,777
Deferred revenue	38,198	21,280
Current portion of capital lease obligations	71	74
Deferred revenue	25,336	298
Long-term debt	0	185,071
Other liabilities	14,587	8,021
EQUITY
Common stock	50	50
Treasury stock	(404,276)	(340,873)
Additional paid-in capital	382,263	332,417
Accumulated other comprehensive (loss) income	(7,027)	(4,739)
Retained earnings (deficit)	589,226	288,560
Total Masimo Corporation stockholders’ equity	560,236	275,415
Noncontrolling interest	0	297
Total equity	560,236	275,712	$ 307,741	$ 326,401
Total liabilities and equity	$ 820,525	601,735
Masimo Corp
ASSETS
Cash and cash equivalents		131,554
Accounts receivable, net		80,937
Inventories		62,038
Prepaid income taxes		2,342
Other current assets		21,230
Deferred cost of goods sold		66,844
Property and equipment, net		131,877
Intangible assets, net		29,045
Goodwill		20,394
Deferred income taxes		44,320
Other assets		11,013
Total assets		601,594
LIABILITIES
Accounts payable		25,798
Accrued compensation		37,715
Accrued liabilities		45,142
Income taxes payable		2,565
Deferred revenue		21,280
Current portion of capital lease obligations		74
Deferred revenue		298
Long-term debt		185,071
Other liabilities		7,964
EQUITY
Common stock		50
Treasury stock		(340,873)
Additional paid-in capital		332,417
Accumulated other comprehensive (loss) income		(4,739)
Retained earnings (deficit)		288,832
Total Masimo Corporation stockholders’ equity		275,687
Noncontrolling interest		0
Total equity		275,687
Total liabilities and equity		601,594
Variable Interest Entity, Primary Beneficiary [Member]
ASSETS
Cash and cash equivalents		763
Accounts receivable, net		23
Prepaid income taxes		62
Other current assets		1,277
Property and equipment, net		589
Intangible assets, net		2,858
Deferred income taxes		0
Other assets		0
Total assets		5,572
LIABILITIES
Accounts payable		67
Accrued compensation		700
Accrued liabilities		164
Income taxes payable		212
Deferred revenue		376
Deferred revenue		3,406
Other liabilities		57
EQUITY
Common stock		14
Treasury stock		(100)
Additional paid-in capital		842
Retained earnings (deficit)		(166)
Total Masimo Corporation stockholders’ equity		590
Total equity		590
Total liabilities and equity		5,572
Cercacor Elim
ASSETS
Accounts receivable, net		0
Other current assets		(1,084)
Intangible assets, net		(4,347)
Other assets		0
Total assets		(5,431)
LIABILITIES
Accrued compensation		0
Accrued liabilities		(1,084)
Deferred revenue		(376)
Deferred revenue		(3,406)
Other liabilities		0
EQUITY
Common stock		(14)
Treasury stock		100
Additional paid-in capital		(842)
Retained earnings (deficit)		(106)
Total Masimo Corporation stockholders’ equity		(862)
Noncontrolling interest		297
Total equity		(565)
Total liabilities and equity		$ (5,431)

Variable Interest Entities (V52

Variable Interest Entities (VIEs) - Condensed Consolidating Schedules of Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Statement of Comprehensive Income [Abstract]
Total revenue	$ 183,201	$ 167,621	$ 172,636	$ 171,167	$ 167,273	$ 152,575	$ 155,726	$ 154,537	$ 694,625	$ 630,111	$ 586,643
Cost of goods sold									230,826	220,128	195,864
Gross profit	124,329	110,122	115,135	114,213	101,745	102,232	102,901	103,105	463,799	409,983	390,779
Operating expenses:
Selling, general and administrative									253,667	252,725	241,016
Research and development									59,362	56,617	56,581
Litigation settlement, award and/or defense costs									(270,000)	(19,609)	(10,331)
Total operating expenses									43,029	289,733	287,266
Operating income	310,400	36,604	36,429	37,337	36,892	28,140	27,841	27,377	420,770	120,250	103,513
Non-operating expense									2,429	3,905	1,472
Income before provision for income taxes									418,341	116,345	102,041
Provision for income taxes									117,675	34,845	27,678
Net income including noncontrolling interest									300,666	81,500	74,363
Net income (loss) attributable to the noncontrolling interest									0	(1,800)	1,845
Net income attributable to Masimo Corporation stockholders	$ 215,293	$ 27,773	$ 30,023	$ 27,577	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 300,666	83,300	72,518
Masimo Corp
Statement of Comprehensive Income [Abstract]
Total revenue										630,111	586,643
Cost of goods sold										226,788	201,334
Gross profit										403,323	385,309
Operating expenses:
Selling, general and administrative										250,627	238,674
Research and development										50,292	53,449
Litigation settlement, award and/or defense costs										(19,609)	(8,010)
Total operating expenses										281,310	284,113
Operating income										122,013	101,196
Non-operating expense										3,910	1,505
Income before provision for income taxes										118,103	99,691
Provision for income taxes										34,803	27,173
Net income including noncontrolling interest										83,300	72,518
Net income attributable to Masimo Corporation stockholders										83,300	72,518
Variable Interest Entity, Primary Beneficiary [Member]
Statement of Comprehensive Income [Abstract]
Total revenue										6,910	5,970
Cost of goods sold										0	0
Gross profit										6,910	5,970
Operating expenses:
Selling, general and administrative										2,348	2,842
Research and development										6,325	3,132
Litigation settlement, award and/or defense costs										0	(2,321)
Total operating expenses										8,673	3,653
Operating income										(1,763)	2,317
Non-operating expense										(571)	(33)
Income before provision for income taxes										(1,192)	2,350
Provision for income taxes										42	505
Net income including noncontrolling interest										(1,234)	1,845
Net income attributable to Masimo Corporation stockholders										(1,234)	1,845
Cercacor Elim
Statement of Comprehensive Income [Abstract]
Total revenue										(6,910)	(5,970)
Cost of goods sold										(6,660)	(5,470)
Gross profit										(250)	(500)
Operating expenses:
Selling, general and administrative										(250)	(500)
Total operating expenses										(250)	(500)
Non-operating expense										566
Income before provision for income taxes										(566)
Net income including noncontrolling interest										(566)
Net income (loss) attributable to the noncontrolling interest										(1,800)	1,845
Net income attributable to Masimo Corporation stockholders										$ 1,234	$ (1,845)

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail)	Jan. 26, 2016ft²	Jul. 31, 2015USD ($)	Feb. 28, 2009	Apr. 02, 2016USD ($)	Dec. 31, 2016USD ($)ft²death	Jan. 02, 2016USD ($)	Jan. 03, 2015USD ($)	Dec. 28, 2013USD ($)	Dec. 29, 2012	Dec. 31, 2011
Related Party Transaction [Line Items]
Capitalized Software Development Costs for Software Sold to Customers					$ 0	$ 500,000	$ 500,000
Property Plant and Equipment, Occupied Square Feet | ft²	70,700				16,830
Patent and Licensing Fee - Aggregate		$ 2,400,000
Estimate of annual preventable hospital deaths prevented by 2020 (more than) | death					200,000
Deconsolidation, Revaluation of Retained Investment, Gain (Loss), Amount				$ 300,000
Issuance of shares in noncontrolling interest entity, net						347,000
Not for Profit Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					$ 5,000,000	6,250,000	2,800,000
Not for Profit Social Welfare Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					20,000	10,000	10,000
Development Partner [Member] [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					255,000	200,000	0
Non Profit Child Welfare Organization [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					12,000	2,000	26,500
Variable Interest Entity, Primary Beneficiary [Member]
Related Party Transaction [Line Items]
Payment for Administrative Fees					200,000	200,000	200,000	$ 200,000
Minimum aggregate royalty payments					6,400,000	6,700,000	5,500,000
Percentage Reimbursed			50.00%						60.00%	50.00%
Total expenses for additional services, material and supplies					0	$ 300,000	3,100,000
Variable Interest Entity, Primary Beneficiary [Member]
Related Party Transaction [Line Items]
Percentage Reimbursed						60.00%
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross							900,000
Variable Interest Entity, Primary Beneficiary [Member] | Not for Profit Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					200,271	$ 0	500,000
Variable Interest Entity, Primary Beneficiary [Member] | Cercacor Laboratories | Not for Profit Organization
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					25,000	25,000	25,000
Minimum | Variable Interest Entity, Primary Beneficiary [Member]
Related Party Transaction [Line Items]
Minimum aggregate royalty payments					5,000,000
Cercacor Laboratories
Related Party Transaction [Line Items]
Operating Leases, Income Statement, Sublease Revenue					300,000
Related Party Transaction, Due from (to) Related Party					100,000	1,100,000
Related Party Transaction, Other Revenues from Transactions with Related Party					$ 100,000	$ 0	0
Engineering-related Payroll Expenses [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Related Party Transaction [Line Items]
Research and Development Arrangement, Contract to Perform for Others, Compensation Earned							1,600,000
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross							$ 1,400,000

Inventories - Components of Inv

Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 32,647	$ 25,781
Work in-process	7,701	4,337
Finished goods	32,194	31,920
Total	$ 72,542	$ 62,038

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Finished goods inventory held by distributors	$ 4.9	$ 2.9

Other Current Assets (Details)

Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Royalties receivable	$ 7,500	$ 7,200
Prepaid expenses	13,051	9,930
Employee loans and advances	305	320
Other current assets	5,134	3,973
Total other current assets	26,014	21,423
Accounts Receivable, Related Parties, Current	$ 24	$ 0

Property and Equipment - Compon

Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 204,229	$ 197,938
Construction-in-progress	7,923	7,124
Accumulated depreciation and amortization	(68,233)	(65,472)
Total	135,996	132,466
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	41,683	42,460
Building and improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	85,966	78,877
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,762	23,738
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	13,549	15,023
Tooling
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,895	13,079
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,289	7,734
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,669	8,885
Demonstration units
Property, Plant and Equipment [Line Items]
Property and equipment, gross	448	973
Vehicles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 45	$ 45

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) $ in Thousands	Jan. 26, 2016ft²	Dec. 31, 2016USD ($)ft²	Jan. 02, 2016USD ($)ft²
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Number of Square Feet Purchased | ft²			90,000
Property, Plant and Equipment, Gross		$ 204,229	$ 197,938
Property, Plant and Equipment, Additions			8,500
Property Plant and Equipment, Occupied Square Feet | ft²	70,700	16,830
Property, Plant and Equipment, Transfers and Changes		$ 6,400
Accumulated amortization		68,233	65,472
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		23,762	23,738
Property, Plant and Equipment, Additions			700
Building and improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		85,966	78,877
Property, Plant and Equipment, Additions			5,700
Capital lease obligations
Property, Plant and Equipment [Line Items]
Furniture and office equipment, gross		400	400
Accumulated amortization		400	300
Research and Development Headquarters, Irvine, California [Member]
Property, Plant and Equipment [Line Items]
Interest Costs Capitalized		$ 100	400
CALIFORNIA | Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross			4,000
CALIFORNIA | Accounts Payable [Member] | Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross			$ 4,200

Intangible Assets - Components

Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Cost
Total cost	$ 50,689	$ 43,892
Accumulated amortization
Accumulated amortization	(21,313)	(16,336)
Total	29,376	27,556
Patents
Cost
Total cost	19,950	21,619
Accumulated amortization
Accumulated amortization	(7,427)	(7,743)
Customer relationships
Cost
Total cost	7,669	7,669
Accumulated amortization
Accumulated amortization	(3,387)	(2,620)
Licensing Agreements [Member]
Cost
Total cost	7,500	0
Acquired technology
Cost
Total cost	5,580	5,580
Accumulated amortization
Accumulated amortization	(2,508)	(1,950)
Trademarks
Cost
Total cost	3,777	3,944
Accumulated amortization
Accumulated amortization	(1,331)	(1,106)
Capitalized software development costs
Cost
Total cost	2,539	2,539
Accumulated amortization
Accumulated amortization	(1,766)	(1,647)
Other
Cost
Total cost	3,674	2,541
Accumulated amortization
Accumulated amortization	$ (4,894)	$ (1,270)

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2,014	$ 4,232
2,015	3,925
2,016	3,685
2,017	3,329
2,018	2,813
Thereafter	11,392
Total	$ 29,376	$ 27,556

Goodwill - Changes in Goodwill

Goodwill - Changes in Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 20,394	$ 20,979
Foreign currency translation adjustment	(614)	(585)
Goodwill, end of period	$ 19,780	$ 20,394

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Other Liabilities Disclosure [Abstract]
Accrued customer rebates, fees and reimbursements	$ 21,103	$ 11,857
Accrued legal fees	1,362	5,785
Accrued donations	503	5,612
Accrued arbitration award	0	5,391
Accrued taxes	5,135	5,263
Accrued stock repurchases	0	4,815
Accrued warranty	910	1,222
Accrued other	2,463	4,277
Total accrued liabilities	$ 31,476	$ 44,222

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Sep. 29, 2014	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 14, 2016	Jan. 08, 2016
Debt Instrument [Line Items]
Long-term portion of capital lease obligations acquisition		$ 0	$ 71,000
Total long-term debt		0	185,071,000
Interest expense		3,300,000	3,500,000	$ 600,000
Revolving Credit Facility [Member] | Federal Funds Effective Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Minimum | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Commitment fee percentage	0.175%
Minimum | Revolving Credit Facility [Member] | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Minimum | Revolving Credit Facility [Member] | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
Maximum | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Commitment fee percentage	0.30%
Maximum | Revolving Credit Facility [Member] | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Maximum | Revolving Credit Facility [Member] | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Line of Credit, Noncurrent		$ 0	$ 185,000,000
Current borrowing capacity					$ 250,000,000	$ 450,000,000

Other Liabilities, Long-Term -

Other Liabilities, Long-Term - Components of Other Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Other Liabilities Disclosure [Abstract]
Unrecognized tax benefit	$ 13,442	$ 7,747
Deferred Tax Liabilities, Net, Noncurrent	340	194
Deferred rent, long-term	558	76
Other	247	4
Total other liabilities, long-term	$ 14,587	$ 8,021

Equity - Additional Information

Equity - Additional Information (Detail)	Nov. 08, 2007shares$ / shares	Oct. 31, 2014shares	Dec. 31, 2016$ / sharesshares	Jan. 02, 2016$ / sharesshares	Jan. 03, 2015$ / sharesshares	Feb. 28, 2013shares
Equity [Line Items]
Dividends declared for outstanding common stock	One preferred stock purchase right
Preferred stock voting rights per share	$ 1
Par value of preferred stock under stockholder rights plan			$ 0.001	$ 0.001
Number of right to be issued with each share of common stock | shares	1
Average cost per share			$ 42.39	$ 37.36	$ 23
Shares repurchased | shares			1,496,000	4,148,000	4,455,000
Series A Preferred Stock
Equity [Line Items]
Par value of preferred stock under stockholder rights plan	$ 0.001
Purchase price per right	$ 136
2013 Repurchase Program [Member] | Common Stock
Equity [Line Items]
Number of common shares authorized to be repurchased under repurchase program | shares		9,000,000				6,000,000
Stock Repurchase Program, Increase (Decrease) in Number of Shares Authorized to be Repurchased | shares		3,000,000

Equity Stock Repurchase Progr66

Equity Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Equity [Abstract]
Shares repurchased	1,496	4,148	4,455
Average cost per share	$ 42.39	$ 37.36	$ 23
Value of shares repurchased	$ 63,402	$ 154,967	$ 102,453

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	Aug. 07, 2007	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 31, 2011
Schedule Of Share Based Compensation Arrangements [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 27.1
Percentage of company's total shares outstanding		3.00%			3.00%
Common stock reserved for future issuance		15,600,000
Unrecognized share-based compensation related to unvested options granted		$ 0.1
Total fair market value of all vesting options		10.6	$ 10.4	$ 11.2
Aggregated intrinsic value of options outstanding		330.9
Aggregated intrinsic value of options exercisable		204.9
Aggregated intrinsic value of options exercised		$ 57	$ 26.4	6.6
Weighted average remaining contractual term of options outstanding, years price below the market value		5 years 7 months 6 days	5 years 6 months
Weighted average remaining contractual term of options exercisable, years		3 years 10 months 24 days	4 years
Total income tax benefit recognized for share-based compensation expense		$ 16.2	$ 3.7	$ 3.7
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		4,000,000
Two Thousand Seven Plan [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Issuance of options to purchase shares	3,000,000
Expiration period of options	10 years
Common stock shares added to share reserve	1,700,000
Employee Stock Option [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Unrecognized share-based compensation related to unvested options granted, term		3 years 4 months 24 days
Restricted Stock Units (RSUs) [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Unrecognized share-based compensation related to unvested options granted, term		1 year
Two Thousand Seven Plan [Member] | Employee Stock Option [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Vesting period of options	5 years
Two Thousand Seven Plan [Member] | Restricted Stock Units (RSUs) [Member]
Schedule Of Share Based Compensation Arrangements [Line Items]
Vesting period of options	1 year

Share-Based Compensation - Numb

Share-Based Compensation - Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans (Detail) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Shares, Options outstanding, beginning of period	9,202	9,956	8,911
Shares, Granted	1,290	914	1,887
Shares, Canceled	(172)	(218)	(416)
Shares, Exercised	(1,799)	(1,450)	(426)
Shares, Expired	0	0	0
Shares, Options outstanding, end of period	8,521	9,202	9,956
Shares, Options exercisable, end of period	4,988	5,609	5,859
Shares, Options available for grant, end of period	4,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Average Exercise Price, Options outstanding, beginning of period	$ 25.46	$ 23.59	$ 22.76
Average Exercise Price, Granted	39.94	36.18	24.83
Average Exercise Price, Canceled	29.13	24.33	24.46
Average Exercise Price, Expired	0	0	0
Average Exercise Price, Options exercisable, end of period	26.33	24.72	23.63
Average Exercise Price, Exercised	20.76	19.54	10.95
Average Exercise Price, Options outstanding, end of period	$ 28.56	$ 25.46	$ 23.59

Share-Based Compensation - Rang

Share-Based Compensation - Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 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	1.30%	1.40%	0.70%
Risk-free interest rate, maximum	1.90%	1.90%	1.80%
Estimated volatility, minimum	32.00%	31.70%	31.20%
Estimated volatility, maximum	37.40%	36.50%	39.60%
Expected dividends	0.00%	0.00%	0.00%
Weighted-average fair value of options granted	$ 13.64	$ 12.20	$ 7.85
Maximum
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Expected term, years	5 years 8 months 12 days	5 years 6 months	5 years 6 months
Minimum
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant
Expected term, years	5 years 6 months	5 years 1 month 6 days	5 years 1 month 6 days

Share-Based Compensation - Tota

Share-Based Compensation - Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	$ 12,503	$ 10,825	$ 11,005
Cost of goods sold
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	355	348	436
Selling, general and administrative
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	9,443	8,139	8,812
Research and development
Schedule Of Share Based Compensation Arrangements [Line Items]
Total share-based compensation expense	$ 2,705	$ 2,338	$ 1,757

Share-Based Compensation - Nu71

Share-Based Compensation - Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Detail) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of Options, Options Outstanding	8,521	9,202	9,956	8,911
Average Remaining Contractual Life, Options Outstanding	5 years 7 months 13 days	5 years 6 months 11 days
Number of Options, Options Exercisable	4,988	5,609	5,859
$2.75 to $4.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 2.75
Range of Exercise Prices, Upper	4
$8.00 to $20.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	4.01
Range of Exercise Prices, Upper	$ 12
Number of Options, Options Outstanding	565	1,367
Average Remaining Contractual Life, Options Outstanding	5 years 4 months 2 days	3 years 9 months 15 days
Number of Options, Options Exercisable	296	947
$20.01 to $30.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 12.01
Range of Exercise Prices, Upper	$ 16
Number of Options, Options Outstanding	4,297	5,196
Average Remaining Contractual Life, Options Outstanding	5 years 3 months 22 days	6 years 2 months 1 day
Number of Options, Options Exercisable	2,940	3,006
$30.01 to $40.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 16.01
Range of Exercise Prices, Upper	$ 23.98
Number of Options, Options Outstanding	3,233	2,349
Average Remaining Contractual Life, Options Outstanding	5 years 10 months 21 days	5 years
Number of Options, Options Exercisable	1,591	1,534
$40.01 to $50.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 23.99
Range of Exercise Prices, Upper	$ 28.99
Number of Options, Options Outstanding	311	290
Average Remaining Contractual Life, Options Outstanding	6 years 1 month 21 days	6 years 9 months 22 days
Number of Options, Options Exercisable	161	122
$40.01 to $50.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 29
Range of Exercise Prices, Upper	$ 31.99
Number of Options, Options Outstanding	91	0
Average Remaining Contractual Life, Options Outstanding	9 years 7 months 24 days
Number of Options, Options Exercisable	0	0
$60.01 to $70.00
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 32
Range of Exercise Prices, Upper	$ 38.30
Number of Options, Options Outstanding	24	0
Average Remaining Contractual Life, Options Outstanding	9 years 10 months 24 days
Number of Options, Options Exercisable	0	0
$38.31 to $41.51
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	$ 38.31
Range of Exercise Prices, Upper	41.51
$41.52 to $43.76
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices, Lower	41.52
Range of Exercise Prices, Upper	$ 43.76

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Unvested RSU Award Activity (Details) - Restricted Stock Units (RSUs) [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
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, Weighted Average Grant Date Fair Value	$ 41.45	$ 0	$ 0
RSUs outstanding, beginning of period	2,703,000	0	0
Granted	6,000	2,703,000	0
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	$ 41,450	$ 0
Expired	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 0	$ 0	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expired in Period	0	0	0
Vested	(3,000)	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 41.45	$ 0		$ 0
RSUs outstanding, end of period	2,706,000	2,703,000	0	0
Weighted Average Grant Date Fair Value - RSUs outstanding	$ 41.45	$ 0	$ 0
Chairman and Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted		2,700,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Nov. 05, 2016USD ($)	Jul. 20, 2016USD ($)	Apr. 08, 2016USD ($)	Jan. 26, 2016ft²	Oct. 01, 2014USD ($)	Jan. 16, 2014USD ($)	Jan. 03, 2014USD ($)	Jul. 09, 2009patent	Sep. 30, 2011sales_representatives	Dec. 31, 2016USD ($)ft²distributorAgreement$ / sharesshares	Jan. 02, 2016USD ($)distributor$ / sharesshares	Jan. 03, 2015USD ($)$ / sharesshares	Oct. 21, 2015claim	Oct. 03, 2015USD ($)	Jan. 31, 2014participant
Contingencies And Commitments [Line Items]
Property Plant and Equipment, Occupied Square Feet | ft²				70,700						16,830
Accrued rent expense										$ 700,000	$ 200,000
Rental expense related to operating leases										5,300,000	5,200,000	$ 6,100,000
Interest included in future minimum capital lease payments (less than $0.1 million)										$ 100,000
Employee contribution percentage limit for full consideration under Employee Retirement Savings Plan										3.00%
Severance plan participation agreements | Agreement										7
Required notice of resignation										6 months
Remaining amount committed										$ 76,800,000
Commitments and contingencies (Notes 4 and 15)
Bank balances										306,000,000
Bank balance covered by Federal Deposit Insurance Corporation limit										$ 2,900,000
Concentration Risk, Customer Accounts Receivable, Percentage										13.60%	10.50%
Royalty										$ 30,779,000	$ 30,777,000	29,879,000
Royalty rate Percentage										7.75%
Royalty Revenue, Number of Days Royalty Revenue is Adjusted Subsequent to Quarter End										60 days
Number of Former Sales Representatives | sales_representatives									2
Litigation Settlement, Amount					$ 466,800,000
Litigation settlement, award and/or defense costs										$ (270,000,000)	(19,609,000)	(10,331,000)
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 | claim													3
Pulse oximetry products
Contingencies And Commitments [Line Items]
Sale of company's products to customers										375,000,000	337,400,000	309,900,000
Masimo vs. Philips
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent								1
Masimo vs Philips N.V. [Member]
Contingencies And Commitments [Line Items]
Litigation Settlement, Amount	$ 300,000,000
Masimo vs Former Physician Office Sales Representatives
Contingencies And Commitments [Line Items]
Litigation Settlement, Amount			$ 6,200,000			$ 5,400,000
Litigation settlement, award and/or defense costs		$ 2,600,000
Masimo vs. Physicians Healthsource, Inc. [Member]
Contingencies And Commitments [Line Items]
Damages sought per violation							$ 500
Parent Company [Member]
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent								2
Litigation settlement, award and/or defense costs											(19,609,000)	$ (8,010,000)
Philips Patent [Member]
Contingencies And Commitments [Line Items]
Number of patents allegedly infringed | patent								1
Unsecured Bank Guarantees
Contingencies And Commitments [Line Items]
Commitments and contingencies (Notes 4 and 15)										500,000
Revolving Credit Facility [Member]
Contingencies And Commitments [Line Items]
Long-term Line of Credit, Noncurrent										0	$ 185,000,000
CEO Employment Agreement [Member]
Contingencies And Commitments [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award											2.7
Supplemental Unemployment Benefits, Severance Benefits														$ 35,000,000
Employment Agreement, Severance Terms											10.00%
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination										$ 146,900,000
Sales [Member]
Contingencies And Commitments [Line Items]
Number of just-in-time distributors | distributor										2
Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Number of just-in-time distributors | distributor										2	2
Restricted Stock Units (RSUs) [Member]
Contingencies And Commitments [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expired in Period | shares										0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares										$ 43.09	$ 41,450	$ 0
Just in time distributor one | Sales Revenue, Net [Member]
Contingencies And Commitments [Line Items]
Percentage Of Revenue Two Customer										14.00%	14.60%	14.00%
Just in time distributor one | Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors										7.50%	5.50%
Just in time distributor two | Sales Revenue, Net [Member]
Contingencies And Commitments [Line Items]
Percentage Of Revenue Two Customer										12.80%	11.70%	0.00%
Just in time distributor two | Accounts Receivable [Member]
Contingencies And Commitments [Line Items]
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors										5.60%
Percentage of accounts receivable balance from two just-in-time distributor											5.30%
UNITED STATES
Contingencies And Commitments [Line Items]
Company's contribution to employee retirement savings plan										$ 1,900,000	$ 1,800,000	$ 1,700,000
OUTSIDE UNITED STATES [Domain]
Contingencies And Commitments [Line Items]
Company's contribution to employee retirement savings plan										$ 300,000	$ 300,000	$ 200,000

Commitments and Contingencies74

Commitments and Contingencies - Future Minimum Lease Payments Under Operating and Capital Leases (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Operating Leases
2,016	$ 5,829
2,017	5,486
2,018	4,643
2,019	2,598
2,020	1,391
Thereafter	7,630
Total	27,577
Capital Leases
2,016	75
2,017	0
2,018	0
2,019	0
2,020	0
Thereafter	0
Total	75
Total
2,016	5,904
2,017	5,486
2,018	4,643
2,019	2,598
2,020	1,391
Thereafter	7,630
Total	$ 27,652

Segment Information and Enter75

Segment Information and Enterprise Reporting - Analysis of Product Revenue Based upon Geographic Area Shipped (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Long-Lived Assets	$ 225,167	$ 210,323	$ 176,922
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 663,846	$ 599,334	$ 556,764
Total product revenue, in percentage	100.00%	100.00%	100.00%
Concentration Risk, Long-lived Asset Geographic Area, Percentage	100.00%	100.00%	100.00%
North and South America
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 20,030	$ 16,708	$ 17,834
Total product revenue, in percentage	3.00%	2.80%	3.20%
Europe, Middle East and Africa
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 112,273	$ 105,323	$ 100,747
Total product revenue, in percentage	16.90%	17.60%	18.10%
Asia and Australia
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 65,955	$ 55,675	$ 57,951
Total product revenue, in percentage	10.00%	9.30%	10.40%
United States
Analysis of Product Revenues Based upon the Geographic Area Shipped
Total product revenue	$ 465,588	$ 421,628	$ 380,232
Reportable Geographical Components [Member] | Americas [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Long-Lived Assets	$ 216,784	$ 203,553	$ 170,117
Analysis of Product Revenues Based upon the Geographic Area Shipped
Concentration Risk, Long-lived Asset Geographic Area, Percentage	96.30%	96.80%	96.20%
Reportable Geographical Components [Member] | United States
Analysis of Product Revenues Based upon the Geographic Area Shipped
Concentration Risk, Percentage	70.10%	70.30%	68.30%
Reportable Geographical Components [Member] | Non-US [Member]
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items]
Long-Lived Assets	$ 8,383	$ 6,770	$ 6,805
Analysis of Product Revenues Based upon the Geographic Area Shipped
Concentration Risk, Long-lived Asset Geographic Area, Percentage	3.70%	3.20%	3.80%

Income Taxes - Components of In

Income Taxes - Components of Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Tax Disclosure [Abstract]
United States	$ 320,702	$ 87,762	$ 69,282
Foreign	97,639	28,583	32,759
Income before provision for income taxes	$ 418,341	$ 116,345	$ 102,041

Income Taxes - Current and Defe

Income Taxes - Current and Deferred Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Current:
Federal	$ 99,533	$ 31,983	$ 22,553
State	6,922	2,388	2,736
Foreign	5,815	2,448	2,709
Total	112,270	36,819	27,998
Deferred:
Federal	2,982	(900)	342
State	2,331	(1,206)	(811)
Foreign	92	132	149
Total	5,405	(1,974)	(320)
Income Tax Expense (Benefit)	$ 117,675	$ 34,845	$ 27,678

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Taxes [Line Items]
Tax and accrued interest related to uncertain tax positions	$ (6.1)	$ (0.6)	$ (1.1)
Effective tax rate	28.10%	30.00%	(27.10%)
Operating loss carryforwards, gross	$ 0.1
Indefinitely carryforward research and development credits	2.6
Investment Tax Credit	0.4
Foreign Tax Expense (Benefit), Business and Employment Actions	$ 4.6	$ 1.3	$ 1.6
Earnings Per Share, Diluted, Effect of Foreign Tax Benefit Relating to Business and Employment Actions	$ 0.09	$ 0.02	$ 0.03
Deferred income taxes	$ 198.2
Additional income tax expense	62.5
Amount of unrecognized benefits affecting future tax rate	13.1	$ 7.2
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	0.1	0.2	$ 0.1
Penalties and interest related to unrecognized tax benefits	$ 1.2	$ 1.1

Income Taxes - Deferred Tax Pro

Income Taxes - Deferred Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Tax Disclosure [Abstract]
Total	$ 5,405	$ (1,974)	$ (320)

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Tax Disclosure [Abstract]
Statutory regular federal income tax rate	35.00%	35.00%	35.00%
State provision, net of federal benefit	1.40%	0.70%	1.20%
Nondeductible items	0.80%	1.70%	1.30%
Foreign income taxed at different rates	(5.60%)	(6.30%)	(8.20%)
Tax credits	(0.50%)	(1.70%)	(1.50%)
Change in federal valuation allowance	0.00%	0.40%	(0.10%)
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent	(3.00%)	0.00%	0.00%
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent	0.00%	(0.20%)	0.60%
Total	(28.10%)	(30.00%)	27.10%

Income Taxes - Components of De

Income Taxes - Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015	Dec. 28, 2013
Deferred tax assets:
Tax credits	$ 802	$ 4,683
Deferred revenue	5,393	3,994
Accrued liabilities	16,244	20,817
Share-based compensation	18,680	20,688
Other	1,902	2,416
Total	43,021	52,598
Valuation allowance	0	(4,196)
Total deferred tax assets	43,021	48,402
Deferred tax liabilities:
Property and equipment			$ (2,691)	$ 0
State taxes and other	(1,695)	(4,276)
Total deferred tax liabilities	(4,386)	(4,276)
Net deferred tax assets	$ 38,635	$ 44,126

Income Taxes - Reconciliation82

Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 100	$ 200	$ 100
Tax Adjustments, Settlements, and Unusual Provisions	(277)	0
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits (gross), beginning of period	8,875	8,024
Increase from tax positions in prior period	143	131
Increase from tax positions in current period	6,437	1,616
Settlements	(296)	0
Lapse of statute of limitations	(388)	(896)
Unrecognized tax benefits (gross), end of period	$ 14,494	$ 8,875	$ 8,024

Quarterly Financial Data (una83

Quarterly Financial Data (unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015	Jul. 04, 2015	Apr. 04, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 183,201	$ 167,621	$ 172,636	$ 171,167	$ 167,273	$ 152,575	$ 155,726	$ 154,537	$ 694,625	$ 630,111	$ 586,643
Gross profit	124,329	110,122	115,135	114,213	101,745	102,232	102,901	103,105	463,799	409,983	390,779
Operating income	310,400	36,604	36,429	37,337	36,892	28,140	27,841	27,377	420,770	120,250	103,513
Net income attributable to Masimo Corporation stockholders	$ 215,293	$ 27,773	$ 30,023	$ 27,577	$ 24,101	$ 19,325	$ 19,351	$ 20,523	$ 300,666	$ 83,300	$ 72,518
Net income per share attributable to Masimo Corporation stockholders:
Basic (in usd per share)	$ 4.31	$ 0.56	$ 0.61	$ 0.56	$ 0.48	$ 0.38	$ 0.38	$ 0.39	$ 6.07	$ 1.62	$ 1.33
Diluted (in usd per share)	$ 3.97	$ 0.52	$ 0.57	$ 0.53	$ 0.46	$ 0.36	$ 0.36	$ 0.38	$ 5.65	$ 1.55	$ 1.30

Schedule II - Valuation and Q84

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	$ 1,967	$ 1,890	$ 1,833
Additions charged to expense and other accounts	259	342	583
Amounts charged against reserve	(528)	(265)	(526)
Balance at end of period	1,698	1,967	1,890
Allowance for Sales Returns [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	710	472	429
Additions charged to expense and other accounts	2,320	2,621	1,832
Amounts charged against reserve	(2,425)	(2,383)	(1,789)
Balance at end of period	605	710	472
Valuation Allowance of Deferred Tax Assets [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at beginning of period	4,196	3,365	3,563
Additions charged to expense and other accounts	0	831	0
Amounts charged against reserve	(4,196)	0	(198)
Balance at end of period	$ 0	$ 4,196	$ 3,365