Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 29, 2012

Fair Value Hierarchy for Financial Assets

The following tables represent the Company’s fair value hierarchy for its financial assets (in thousands):

	Fair Value Measurement as of December 29, 2012  using:
	Level 1		Level 2		Level 3		Total
Assets:
U.S. Treasuries	$	31,999	$	—	$	—	$	31,999
Money Market funds		1,623		—		—		1,623
Total	$	33,622	$	—	$	—	$	33,622
	Fair Value Measurement as of December 31, 2011  using:
Assets:
U.S. Treasuries	$	67,800	$	—	$	—	$	67,800
Money Market funds		1,337		—		—		1,337
Total	$	69,137	$	—	$	—	$	69,137

Changes in Allowance for Doubtful Accounts

Changes in the allowance for doubtful accounts were as follows (in thousands):

	Year ended December 29, 2012			Year ended December 31, 2011			Year ended January 1, 2011
Allowance for doubtful accounts, beginning of period	$	1,798		$	1,720		$	1,972
Provision for doubtful accounts		231			231			108
Write off of uncollectible accounts		(73	)		(153	)		(360	)
Allowance for doubtful accounts, end of period	$	1,956		$	1,798		$	1,720

Changes in Product Warranty Accrual

Changes in the product warranty accrual were as follows (in thousands):

	Year ended December 29, 2012			Year ended December 31, 2011			Year ended January 1, 2011
Warranty accrual, beginning of period	$	698		$	544		$	354
Provision for warranty costs		2,489			2,592			2,355
Warranty expenditures		(2,349	)		(2,438	)		(2,165	)
Warranty accrual, end of period	$	838		$	698		$	544

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 29, 2012		December 31, 2011			January 1, 2011
Net income attributable to stockholders of Masimo Corporation:
Net income including noncontrolling interests	$	61,938	$	64,053		$	73,405
Net (income) loss attributable to the noncontrolling interests		334		(353	)		125
Net income attributable to Masimo Corporation stockholders	$	62,272	$	63,700		$	73,530
Basic net income per share attributable to Masimo Corporation stockholders:
Net income attributable to Masimo Corporation stockholders	$	62,272	$	63,700		$	73,530
Weighted average shares outstanding - basic		57,445		59,659			58,769
Basic net income per share attributable to Masimo Corporation stockholders	$	1.08	$	1.07		$	1.25
Diluted net income per share attributable to Masimo Corporation stockholders:
Weighted average shares outstanding		57,445		59,659			58,769
Diluted share equivalent: stock options		929		1,186			1,840
Weighted average shares outstanding - diluted		58,374		60,845			60,609
Diluted net income per share attributable to Masimo Corporation stockholders	$	1.07	$	1.05		$	1.21