Variable Interest Entities (VIEs) (Tables)

12 Months Ended

Jan. 03, 2015

Condensed Consolidating Schedules of Balance Sheets

The condensed consolidating balance sheets as of January 3, 2015 and December 28, 2013, and statements of comprehensive income for the years ended January 3, 2015, December 28, 2013 and December 29, 2012 reflecting Masimo Corporation, Cercacor and related eliminations (in thousands) are as follows.



	January 3, 2015												December 28, 2013
Balance Sheets:	Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp			Cercacor			Cercacor Elim			Total
ASSETS
Cash and cash equivalents	$	133,509		$	944		$	—		$	134,453		$	95,296		$	170		$	—		$	95,466
Accounts receivable, net	71,017									71,017			76,759			—			—			76,759
Inventories	69,718			—			—			69,718			56,813			—			—			56,813
Prepaid income taxes	324			93			—			417			3,732			8			—			3,740
Deferred income taxes, current	18,065			—			—			18,065			19,636			—			—			19,636
Other current assets	21,446			203			(178		)	21,471			19,207			177			—			19,384
Deferred cost of goods sold	67,485			—			—			67,485			61,714			—			—			61,714
Property and equipment, net	100,730			1,222			—			101,952			22,931			1,935			—			24,866
Intangible assets, net	29,564			4,738			(6,531		)	27,771			30,452			4,683			(7,031		)	28,104
Goodwill	20,979			—			—			20,979			22,793			—			—			22,793
Deferred income taxes, noncurrent	24,193						—			24,193			22,565			—			—			22,565
Other assets	7,450			2,021			(1,986		)	7,485			6,787			2,021			(1,986		)	6,822
Total assets	$	564,480		$	9,221		$	(8,695	)	$	565,006		$	438,685		$	8,994		$	(9,017	)	$	438,662
LIABILITIES
Accounts payable	$	38,003		$	42		$	—		$	38,045		$	27,418		$	586		$	—		$	28,004
Accrued compensation	32,985			615			—			33,600			28,317			1,169			—			29,486
Accrued liabilities	24,492			227			(178		)	24,541			22,888			140			—			23,028
Income taxes payable	6,350			212			—			6,562			2,205			201			—			2,406
Deferred revenue	21,067			500			(500		)	21,067			20,755			500			(500		)	20,755
Current portion of capital lease obligations	79			—			—			79			111			—			—			111
Deferred revenue	453			6,031			(6,031		)	453			566			6,531			(6,531		)	566
Long term debt	125,145			—			—			125,145			225			—			—			225
Other liabilities	9,634			125			(1,986		)	7,773			9,459			207			(1,986		)	7,680
EQUITY (DEFICIT)
Common stock	52			11			(11		)	52			57			11			(11		)	57
Treasury stock	(185,906		)	(100		)	100			(185,906		)	(83,454		)				—			(83,454		)
Additional paid-in capital	288,686			491			(491		)	288,686			273,129			427			(427		)	273,129
Accumulated other comprehensive income (loss)	(2,093		)	—			—			(2,093		)	3,995			—			—			3,995
Retained earnings (deficit)	205,533			1,067			(1,340		)	205,260			133,014			(778		)	506			132,742
Total Masimo Corporation stockholders’ equity (deficit)	306,272			1,469			(1,742		)	305,999			326,741			(340		)	68			326,469
Noncontrolling interest	—			—			1,742			1,742			—			—			(68		)	(68		)
Total equity	306,272			1,469			—			307,741			326,741			(340		)	—			326,401
Total liabilities and equity (deficit)	$	564,480		$	9,221		$	(8,695	)	$	565,006		$	438,685		$	8,994		$	(9,017	)	$	438,662

Condensed Consolidating Schedules of Statements of Comprehensive Income



	Year ended January 3, 2015												Year ended December 28, 2013											Year ended December 29, 2012
Statements of Comprehensive Income:	Masimo Corp			Cercacor			Cercacor Elim			Total			Masimo Corp		Cercacor			Cercacor Elim			Total			Masimo Corp		Cercacor			Cercacor Elim			Total
Total revenue	$	586,643		$	5,970		$	(5,970	)	$	586,643		$	547,245	$	5,732		$	(5,732	)	$	547,245		$	493,233	$	5,375		$	(5,375	)	$	493,233
Cost of goods sold	201,334			—			(5,470		)	195,864			193,775		—			(5,357		)	188,418			171,982		—			(5,000		)	166,982
Gross profit (loss)	385,309			5,970			(500		)	390,779			353,470		5,732			(375		)	358,827			321,251		5,375			(375		)	326,251
Operating expenses:
Selling, general and administrative	238,674			2,842			(500		)	241,016			213,374		2,470			(375		)	215,469			191,870		2,453			(375		)	193,948
Research and development	53,449			3,132			—			56,581			51,762		3,869			—			55,631			43,412		3,665			—			47,077
Litigation award and defense costs	(8,010		)	(2,321		)	—			(10,331		)	8,010		—			—			8,010			—		—			—			—
Total operating expenses	284,113			3,653			(500		)	287,266			273,146		6,339			(375		)	279,110			235,282		6,118			(375		)	241,025
Operating income	101,196			2,317			—			103,513			80,324		(607		)	—			79,717			85,969		(743		)	—			85,226
Non-operating expense (income)	1,505			(33		)	—			1,472			3,991		—			—			3,991			1,404		1			—			1,405
Income (loss) before provision for income taxes	99,691			2,350			—			102,041			76,333		(607		)	—			75,726			84,565		(744		)	—			83,821
Provision for (benefit from) income taxes	27,173			505			—			27,678			17,952		2,053			—			20,005			22,293		(410		)	—			21,883
Net income (loss) including noncontrolling interests	72,518			1,845			—			74,363			58,381		(2,660		)	—			55,721			62,272		(334		)	—			61,938
Net income (loss) attributable to noncontrolling interests				—			1,845			1,845			—		—			(2,660		)	(2,660		)	—		—			(334		)	(334		)
Net income (loss) attributable to Masimo Corporation stockholders	72,518			1,845			(1,845		)	72,518			58,381		(2,660		)	2,660			58,381			62,272		(334		)	334			62,272
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(6,088		)	—			—			(6,088		)	453		—			—			453			2,268		—			—			2,268
Comprehensive income attributable to Masimo Corporation stockholders	$	66,430		$	1,845		$	(1,845	)	$	66,430		$	58,834	$	(2,660	)	$	2,660		$	58,834		$	64,540	$	(334	)	$	334		$	64,540