Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Dec. 28, 2019 | Jun. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-33642 | |
Entity Registrant Name | MASIMO CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0368882 | |
Entity Address, Address Line One | 52 Discovery | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | (949) | |
Local Phone Number | 297-7000 | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Trading Symbol | MASI | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Market Value of non affiliate stock at end of Q2 | $ 6.8 | |
Entity Common Stock, Shares Outstanding | 53,793,530 | |
Documents Incorporated by Reference | Items 10, 11, 12, 13 and 14 of Part III of this Annual Report on Form 10-K incorporate information by reference from the registrant’s proxy statement for the registrant’s 2020 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year covered by this annual report on Form 10-K. | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0000937556 | |
Current Fiscal Year End Date | --12-28 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 567,687 | $ 552,490 |
Short-term investments | 120,000 | 0 |
Trade accounts receivable, net of allowance for doubtful accounts of $1,803 and $1,535 at December 28, 2019 and December 29, 2018, respectively | 132,433 | 109,629 |
Inventories | 115,871 | 94,732 |
Other current assets | 60,071 | 32,426 |
Total current assets | 996,062 | 789,277 |
Lease receivable, noncurrent | 49,936 | 0 |
Deferred costs and other contract assets | 16,214 | 122,906 |
Property and equipment, net | 219,552 | 165,972 |
Intangible assets, net | 27,251 | 27,924 |
Goodwill | 22,350 | 23,297 |
Deferred tax assets | 35,972 | 21,210 |
Other non-current assets | 28,791 | 4,232 |
Total assets | 1,396,128 | 1,154,818 |
Current liabilities | ||
Accounts payable | 54,548 | 40,388 |
Accrued compensation | 54,705 | 49,486 |
Deferred revenue and other contract-related liabilities, current | 25,939 | 32,054 |
Accrued and other liabilities | 37,027 | 24,627 |
Total current liabilities | 172,219 | 146,555 |
Other non-current liabilities | 56,035 | 39,198 |
Total liabilities | 228,254 | 185,753 |
Commitments and contingencies (Note 21) | ||
Masimo Corporation stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized; 0 shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 100,000 shares authorized; 53,696 and 53,085 shares issued and outstanding at December 28, 2019 and December 29, 2018, respectively | 54 | 53 |
Treasury stock, 15,530 and 15,255 shares at December 28, 2019 and December 29, 2018, respectively | (526,580) | (489,026) |
Additional paid-in capital | 600,624 | 533,164 |
Accumulated other comprehensive loss | (6,718) | (6,199) |
Retained earnings | 1,100,494 | 931,073 |
Total stockholders’ equity | 1,167,874 | 969,065 |
Total liabilities and stockholders’ equity | $ 1,396,128 | $ 1,154,818 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,803 | $ 1,535 |
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 | 53,696,000 | 53,085,000 |
Treasury stock, shares | 15,530,000 | 15,255,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Product | $ 936,408 | $ 829,874 | $ 738,242 |
Royalty and other revenue | 1,429 | 28,415 | 52,006 |
Total revenue | 937,837 | 858,289 | 790,248 |
Cost of goods sold | 308,665 | 283,397 | 268,216 |
Gross profit | 629,172 | 574,892 | 522,032 |
Selling, general and administrative | 314,661 | 285,417 | 273,011 |
Research and development | 93,295 | 81,006 | 65,234 |
Litigation settlement, award and/or defense costs | 0 | 425 | 0 |
Total operating expenses | 407,956 | 366,848 | 338,245 |
Operating income | 221,216 | 208,044 | 183,787 |
Non-operating income | 12,950 | 5,732 | 2,013 |
Income before provision for income taxes | 234,166 | 213,776 | 185,800 |
Provision for income taxes | 37,950 | 20,233 | 61,011 |
Net income | $ 196,216 | $ 193,543 | $ 124,789 |
Basic | $ 3.67 | $ 3.70 | $ 2.42 |
Diluted | $ 3.44 | $ 3.45 | $ 2.23 |
Basic | 53,434 | 52,296 | 51,516 |
Diluted | 57,100 | 56,039 | 55,874 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||
Net income | $ 196,216 | $ 193,543 | $ 124,789 |
Net income | |||
Foreign currency translation gains (losses) | (519) | (3,258) | 4,201 |
Unrealized loss on marketable securities | 0 | 0 | (115) |
Total comprehensive income | $ 195,697 | $ 190,285 | $ 128,875 |
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 |
Beginning Balance at Dec. 31, 2016 | $ 584,177 | $ 50 | $ (404,276) | $ 382,263 | $ (7,027) | $ 613,167 |
Beginning Balance, shares at Dec. 31, 2016 | 50,188 | 14,255 | ||||
Stock options exercised | 2,246 | 2,246 | ||||
Stock options exercised | $ 62,046 | $ 2 | 62,044 | |||
Restricted/Performance stock units vested | 6 | |||||
Stock-based compensation | 17,187 | |||||
Stock-based compensation | $ 17,187 | |||||
Repurchases of common stock | (804) | (804) | (804) | |||
Value of shares repurchased | $ (68,260) | $ (68,260) | ||||
Net Income | 124,789 | 124,789 | ||||
Foreign currency translation adjustment | 4,201 | 4,201 | ||||
Unrealized loss on marketable securities | (115) | (115) | ||||
End Balance at Dec. 30, 2017 | $ 724,025 | $ 52 | $ (472,536) | 461,494 | (2,941) | 737,956 |
Ending Balance, shares at Dec. 30, 2017 | 51,636 | 15,059 | ||||
Stock options exercised | 1,608 | 1,608 | ||||
Stock options exercised | $ 44,422 | $ 1 | 44,421 | |||
Restricted/Performance stock units vested | 39 | |||||
Stock-based compensation | 27,417 | |||||
Stock-based compensation | $ 27,417 | |||||
Repurchases of common stock | (196) | (196) | (196) | |||
Value of shares repurchased | $ (16,490) | $ (16,490) | ||||
Net Income | 193,543 | 193,543 | ||||
Foreign currency translation adjustment | (3,258) | (3,258) | ||||
Shares paid for tax withholding | (168) | (168) | ||||
Shares paid for tax withholding | (2) | |||||
Adoption of ASU 2016-16 | (426) | |||||
Adoption of ASU 2016-16 | Accounting Standards Update 2016-06 [Member] | (426) | |||||
End Balance at Dec. 29, 2018 | $ 969,065 | $ 53 | $ (489,026) | 533,164 | (6,199) | 931,073 |
Ending Balance, shares at Dec. 29, 2018 | 53,085 | 15,255 | ||||
Stock options exercised | 851 | 851 | ||||
Stock options exercised | $ 28,349 | $ 1 | 28,348 | |||
Restricted/Performance stock units vested | 36 | |||||
Stock-based compensation | 39,235 | |||||
Stock-based compensation | $ 39,235 | |||||
Repurchases of common stock | (275) | (275) | (275) | |||
Value of shares repurchased | $ (37,554) | $ (37,554) | ||||
Net Income | 196,216 | 196,216 | ||||
Foreign currency translation adjustment | (519) | (519) | ||||
Shares paid for tax withholding | (123) | (123) | ||||
Shares paid for tax withholding | (1) | |||||
Adoption of ASU 2016-16 | (26,795) | |||||
Adoption of ASU 2016-16 | Accounting Standards Update 2016-06 [Member] | (26,795) | |||||
End Balance at Dec. 28, 2019 | $ 1,167,874 | $ 54 | $ (526,580) | $ 600,624 | $ (6,718) | $ 1,100,494 |
Ending Balance, shares at Dec. 28, 2019 | 53,696 | 15,530 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 196,216 | $ 193,543 | $ 124,789 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 23,487 | 21,127 | 20,061 |
Stock-based compensation | 39,233 | 27,417 | 17,187 |
Loss on disposal of equipment, intangibles and other assets | 357 | 949 | 522 |
Provision for doubtful accounts | 687 | 251 | |
(Benefit) for doubtful accounts | (439) | ||
(Benefit) provision for amount due from former foreign agent | 0 | (2,016) | (10,477) |
(Benefit) provision from deferred income taxes | (5,965) | (8,274) | 17,276 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in trade accounts receivable | (23,580) | 10,826 | (19,772) |
Increase in inventories | (21,257) | (1,885) | (24,014) |
(Increase) decrease in other current assets | (8,536) | 3,843 | (5,406) |
Increase in lease receivable, net | (11,958) | 0 | 0 |
Decrease (increase) in deferred costs and other contract assets | 3,308 | (17,935) | (14,102) |
(Increase) decrease in other non-current assets | (226) | 407 | (10,771) |
Increase (decrease) in accounts payable | 9,934 | 5,211 | (4,057) |
Increase (decrease) in accrued compensation | 5,338 | 10,195 | (4,292) |
Increase (decrease) in deferred revenue and other contract-related liabilities | 7,739 | 1,420 | (13,295) |
Increase (decrease) in income taxes payable | 4,079 | (1,208) | (72,087) |
Increase in accrued liabilities | 746 | 3,923 | 5,282 |
Increase (decrease) in other non-current liabilities | 2,038 | (7,577) | 28,013 |
Net cash provided by operating activities | 221,640 | 239,527 | 56,062 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (120,000) | 0 | 0 |
Purchases of property and equipment | (68,375) | (17,126) | (43,684) |
Increase in intangible assets | (4,117) | (5,557) | (3,079) |
(Purchases of) proceeds from strategic investments | (5,189) | 453 | (1,145) |
Business acquisition, net of cash acquired | 0 | (3,922) | 0 |
Net cash used in investing activities | (197,681) | (26,152) | (47,908) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 28,339 | 44,748 | 62,205 |
Repurchases of common stock | (37,555) | (18,478) | (66,272) |
Other | (123) | (490) | (71) |
Net cash provided by (used in) financing activities | (9,339) | 25,780 | (4,138) |
Effect of foreign currency exchange rates on cash | 814 | (1,997) | 3,269 |
Net increase in cash, cash equivalents and restricted cash | 15,434 | 237,158 | 7,285 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 568,075 | $ 552,641 | $ 315,483 |
Description of the Company
Description of the Company | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Company | 1. Description of the Company Masimo Corporation (the Company) is a global medical technology company that develops, manufactures and markets a variety of noninvasive patient monitoring technologies and hospital automation solutions. The Company’s mission is to improve patient outcomes and reduce the cost of patient care . The Company’s patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software and/or cables. The Company primarily sells its products to hospitals, emergency medical service providers, home care providers, physician offices, veterinarians, long term care facilities and consumers through its direct sales force, distributors and original equipment manufacturer (OEM) partners. The Company invented Masimo Signal Extraction Technology ® (SET ® ), which provides the capabilities of Measure-through Motion and Low Perfusion ™ pulse oximetry to address the primary limitations of conventional pulse oximetry. Over the years, the Company’s product offerings have expanded significantly to also include rainbow ® Pulse CO-Oximetry, with its ability to monitor carboxyhemoglobin (SpCO ® ), methemoglobin (SpMet ® ), total hemoglobin concentration (SpHb ® ), fractional arterial oxygen saturation (SpfO 2 ™ ), Oxygen Content (SpOC ™ ), Pleth Variability Index (PVi ® ), rainbow ® Pleth Variability Index (RPVi ™ ), respiration rate from the pleth (RRp ® ) and Oxygen Reserve Index (ORi ™ ); as well as acoustic respiration monitoring (RRa ® ), SedLine ® brain function monitoring, NomoLine ® capnography and gas monitoring and O3 ® regional oximetry. These technologies are based upon Masimo SET ® , rainbow ® and other proprietary algorithms and are incorporated into a variety of product platforms depending on customers’ specifications. The Company’s current technology offerings also include remote patient monitoring, connectivity, and hospital automation solutions, including Masimo Patient SafetyNet ™( 1) , Masimo Patient SafetyNet ™ Surveillance 1 , Replica ™ , Iris ® , MyView ® , UniView ™ and Trace ™ . The Company’s technologies are 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. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. 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 and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As further discussed below in this Note 2 to these consolidated financial statements, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASU 2016-02) effective December 30, 2018. Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 fiscal weeks while a 53 week fiscal year includes three 13 fiscal week quarters and one 14 fiscal week quarter. The Company’s last 53 week fiscal year was fiscal year 2014. Fiscal year 2019 is a 52 week fiscal year. 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 standalone selling prices, variable consideration and how total consideration should be allocated to each performance obligation within a contract, inventory valuation, valuation of the Company’s equity awards, deferred taxes and any associated valuation allowances, deferred revenue, uncertain income tax positions, and litigation costs and related accruals. Actual results could differ from such estimates. ___________________________ (1) The use of the trademark Patient SafetyNet ™ is under license from the University HealthSystem Consortium. Reclassifications Certain amounts in the accompanying consolidated financial statements have been reclassified to conform to the current period presentation, including previously reported selling, general and administrative expenses that have been reclassified as research and development expenses within the consolidated financial statements for the years ended December 29, 2018 and December 30, 2017 . Fair Value Measurements Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect the fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect to apply the fair value option under this guidance to specific assets or liabilities on a contract-by contract basis. There were no transfers between Level 1, Level 2 and Level 3 inputs during the years ended December 28, 2019 or December 29, 2018 . The Company carries cash and cash equivalents, as well as certificates of deposit with maturities of one year or less, at cost, which approximates fair value. The following tables represent the Company’s financial assets (in thousands), measured at fair value on a recurring basis as of December 28, 2019 : Reported as Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Equivalents Short-Term Cash $ 567,687 $ — $ — $ 567,687 $ 567,687 $ — Level 1: Certificates of deposit 120,000 — — 120,000 — 120,000 Subtotal 120,000 — — 120,000 — 120,000 Level 2: None — — — — — — Level 3: None — — — — — — Total assets measured at fair value $ 687,687 $ — $ — $ 687,687 $ 567,687 $ 120,000 As of December 29, 2018 , the Company had an insignificant amount of other financial assets that were required to be measured under the fair value hierarchy, the measurement of which were based on Level 1 inputs. 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. Short-Term Investments The Company classifies its investments in certificates of deposits maturing in one year or less that do not constitute cash equivalents on the date of the original investment as short-term investments. The carrying value of such investments approximates fair value and are accessible without any significant restrictions, taxes, or penalties. As of December 28, 2019 , the Company had total investments in certificates of deposit of $120.0 million with maturities ranging from two months to ten months . Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of trade receivables recorded at the time of invoicing of product sales, 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 an evaluation of the customer’s financial condition. Collateral is generally not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible. Inventory Inventories are stated at the lower of cost or net realizable value. Cost is determined using a standard cost method, which approximates the first in, first out method, and includes material, labor and overhead costs. Inventory valuation adjustments are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory items that have a market price less than carrying value in inventory. The Company generally determines inventory valuation adjustments based on an evaluation of the expected future use of its inventory on an item by item basis and applies historical obsolescence rates to estimate the loss on inventory expected to have a recovery value below cost. The Company also records other specific inventory valuation adjustments when it becomes aware of unique events or circumstances that result in an expected recovery value below cost. For inventory items that have been written down, the reduced value becomes the new cost basis. 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 Aircraft and components 4 to 20 years Buildings 39 years Building improvements 7 to 15 years Computer equipment 2 to 6 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 10 years Tooling 3 years Vehicles 5 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. Lessee Right-of-Use (ROU) Assets and Lease Liabilities As further discussed below within this Note 2 to these consolidated financial statements, the Company adopted ASC 842 effective December 30, 2018. The Company determines if an arrangement contains a lease at inception. ROU assets represent the Company’s right to use an asset underlying an operating lease for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from an operating lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company generally estimates the applicable discount rate used to determine the net present value of lease payments based on available information at the lease commencement date. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its lease terms unless they are reasonably certain to be exercised. The Company utilizes a portfolio approach to account for the ROU assets and liabilities associated with certain equipment leases. The Company has also made an accounting policy election not to separate lease and non-lease components for its real estate leases and to exclude short-term leases with a term of twelve months or less from its application of ASC 842. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. 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. The Company’s policy is to renew its patents and trademarks. Costs to renew patents and trademarks are capitalized and amortized over the remaining useful life of the intangible asset. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. Impairment of Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment, 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 a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if the Company elects to bypass the qualitative analysis, then the Company must perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. The annual impairment test is performed during the fourth fiscal quarter. The Company reviews long-lived assets and identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flows 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. 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, Deferred Revenue and Other Contract Liabilities The Company derives the majority of its product revenue from four primary sources: (i) direct sales under deferred equipment 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 customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company’s embedded software technology into their multiparameter monitoring devices. Subject to customer credit considerations, the majority of such sales are made on open account using industry standard payment terms based on the geography within which the specific customer is located. The Company generally recognizes revenue following a single, principles-based five-step model to be applied to all contracts with customers and generally provides for the recognition of revenue in an amount that reflects the consideration to which the Company expects to be entitled, net of allowances for estimated returns, discounts or sales incentives, as well as taxes collected from customers that are remitted to government authorities, when control over the promised goods or services are transferred to the customer. Revenue related to equipment supplied under sales-type lease arrangements is recognized once control over the equipment is transferred to the customer, while revenue related to equipment supplied under operating-type lease arrangements is generally recognized on a straight-line basis over the term of the lease. While the majority of the Company’s revenue contracts and transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation, judgment and analysis is required to determine the appropriate accounting, including: (i) the amount of the total consideration, including variable consideration, (ii) whether the arrangement contains an embedded lease, and if so, whether such embedded lease is a sales-type lease or an operating lease, (iii) the identification of the distinct performance obligations contained within the arrangement, (iv) how the arrangement consideration should be allocated to each performance obligation when multiple performance obligations exist, including the determination of standalone selling price, and (v) when to recognize revenue on the performance obligations. Changes in judgments on these assumptions and estimates could materially impact the timing of revenue recognition. The Company enters into agreements to sell its monitoring solutions and services, sometimes as a part of arrangements with multiple performance obligations that include various combinations of product sales, equipment leases and services. In the case of contracts with multiple performance obligations, the authoritative guidance provides that the total consideration be allocated to each performance obligation on the basis of relative standalone selling prices. When a standalone selling price is not readily observable, the Company estimates the standalone selling price 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 other market conditions. Sales under deferred equipment agreements are generally structured such that the Company agrees to provide certain monitoring-related equipment, software, installation, training and/or warranty support at no up-front charge in exchange for the customer’s commitment to purchase sensors over the term of the agreement, which generally ranges from three years to six years . The Company allocates contract consideration under deferred equipment agreements containing fixed annual sensor purchase commitments to the underlying lease and non-lease components at contract inception. In determining whether any underlying lease components are related to a sales-type lease or an operating lease, the Company evaluates the customer’s rights and ability to control the use of the underlying equipment throughout the contract term, including any equipment substitution rights retained by the Company, as well as the Company’s expectations surrounding potential contract/lease extensions or renewals and the customer’s likelihood to exercise any purchase options. Revenue allocable to non-lease performance obligations is generally recognized as such non-lease performance obligations are satisfied. Revenue allocable to lease components under sales-type lease arrangements is generally recognized when control over the equipment is transferred to the customer. Revenue allocable to lease components under operating lease arrangements is generally recognized over the term of the operating lease. The Company generally does not expect to derive any significant value in excess of such asset’s unamortized book value from equipment underlying its operating lease arrangements after the end of the agreement. Revenue from the sale of products to end-user hospitals, emergency medical response organizations, other direct customers, distributors and OEM customers, is recognized by the Company when control of such products transfer to the customer based upon the terms of the contract or underlying purchase order. Revenue related to OEM rainbow ® parameter software licenses is recognized by the Company upon the OEM’s shipment of its product to its customer, as reported to the Company by the OEM. The Company provides certain customers with various sales incentives that may take the form of discounts or rebates. The Company records estimates related to these programs as a reduction to revenue at the time of sale. 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. The Company estimates the revenue constraints related to these forms of variable consideration based on various factors, including expected purchasing volumes, prior sales and returns history, and specific contractual terms and limitations. The majority of the Company’s royalty and other revenue arose from one agreement that was due and payable quarterly in arrears. An estimate of these royalty revenues was recorded in the period earned based on historical results, adjusted for any new information or trends known to management at the time of estimation. This estimated revenue was adjusted prospectively when the Company received the underlying royalty report, approximately sixty days after the end of the previous quarter. The Company received its final royalty payment from this agreement during the three months ended March 30, 2019. For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company recognized royalty revenue pursuant to this agreement of approximately $0.7 million , $26.4 million and $32.8 million , respectively. Shipping and Handling Costs and Fees 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. Taxes Collected From Customers and Remitted to Governmental Authorities The Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities. Deferred Costs and Other Contract Assets The costs of monitoring-related equipment provided to customers under operating lease arrangements within the Company’s deferred equipment agreements are generally deferred and amortized to cost of goods sold over the life of the underlying contracts. Some of the Company’s deferred equipment agreements also contain provisions for certain allowances to be made directly to the end-user hospital customer at the inception of the arrangement. These allowances are generally allocated to the lease and non-lease components and recognized as a reduction to revenue as the underlying performance obligations are satisfied. The Company generally invoices its customers under deferred equipment agreements as sensors are provided to the customer. However, the Company may recognize revenue for certain non-lease performance obligations under deferred equipment agreements with fixed annual commitments at the time such performance obligations are satisfied and prior to the customer being invoiced. When this occurs, the Company records an unbilled contract receivable related to such revenue until the customer has been invoiced pursuant to the terms of the underlying deferred equipment agreement. The incremental costs of obtaining a contract with a customer are capitalized and deferred if the Company expects such costs to be recoverable over the life of the contract and the contract term is greater than one year. Such deferred costs generally relate to certain incentive sales commissions earned by the Company’s internal sales team in connection with the execution of deferred equipment agreements and are amortized to expense over the expected term of the underlying contract. Product Warranty The Company generally 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 traditional sales activities, including direct and OEM sales, the Company establishes an accrued liability for the estimated warranty costs at the time of revenue recognition, with a corresponding provision to cost of goods sold. Customers may also purchase extended warranty coverage or service level upgrades separately or as part of a deferred equipment agreement. Revenue related to extended warranty coverage and service level upgrades is generally recognized over the extended life of the contract, which reasonably approximates the period over which such services will be provided. The related extended warranty and service level upgrade costs are expensed as incurred. Changes in the product warranty accrual were as follows (in thousands): Year Ended December 28, December 29, December 30, Warranty accrual, beginning of period $ 1,910 $ 1,149 $ 910 Accrual for warranties issued 1,715 1,549 1,061 Changes in pre-existing warranties (including changes in estimates) (1) 1,130 551 332 Settlements made (1,360 ) (1,339 ) (1,154 ) Warranty accrual, end of period $ 3,395 $ 1,910 $ 1,149 ______________ (1) In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded an adjustment to pre-existing warranties of $2.5 million related to equipment previously capitalized under its deferred equipment agreements where the embedded leases were treated as operating leases under prior guidance. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. 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 28, 2019 , December 29, 2018 and December 30, 2017 were $14.0 million , $17.9 million and $17.8 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. Foreign Currency Translation The Company’s international headquarters is in Switzerland, and its functional currency is the U.S. Dollar. The Company has many other foreign subsidiaries, the largest of which are located in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company records certain revenues and expenses in foreign currencies. These revenues and expenses are translated into U.S. Dollars based on the average exchange rate for the reporting period. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate in effect as of the balance sheet date. Translation gains and losses related to foreign currency assets and liabilities of a subsidiary that are denominated in the functional currency of such subsidiary are included as a component of accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. Realized and unrealized foreign currency gains and losses related to foreign currency assets and liabilities of the Company or a subsidiary that are not denominated in the underlying functional currency are included as a component of non-operating (income) expense within the accompanying consolidated statements of operations. Comprehensive Income Comprehensive income includes foreign currency translation adjustments and any related tax benefits that have been excluded from net income and reflected in stockholders’ equity. Net Income Per Share The computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended December 28, December 29, December 30, Net income $ 196,216 $ 193,543 $ 124,789 Basic net income per share: Weighted-average shares outstanding - basic 53,434 52,296 51,516 Net income per basic share $ 3.67 $ 3.70 $ 2.42 Diluted net income per share: Weighted-average shares outstanding - basic 53,434 52,296 51,516 Diluted share equivalents: stock options and RSUs 3,666 3,743 4,358 Weighted-average shares outstanding - diluted 57,100 56,039 55,874 Net income per diluted share $ 3.44 $ 3.45 $ 2.23 Basic net income per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Net income per diluted share is computed by dividing the net income by the weighted-average number of shares and potential shar |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions Cercacor Laboratories, Inc. (Cercacor) is an independent entity that was spun off from the Company to its stockholders in 1998. Joe Kiani, the Company’s Chairman and Chief Executive Officer (CEO), is also the Chairman and CEO of Cercacor. Effective as of January 3, 2016, in connection with changes in the capital structure of Cercacor, the Company determined that Cercacor was no longer required to be consolidated. Although the Company believes that Cercacor continues to be considered a variable interest entity, the Company has determined that it is no longer the primary beneficiary of Cercacor as it does not have the power to direct the activities of Cercacor that most significantly impact Cercacor’s economic performance and has no obligation to absorb Cercacor’s losses. The Company is a party to the following agreements with Cercacor: • Cross-Licensing Agreement - The Company and Cercacor are parties to the Cross-Licensing Agreement, which governs each party’s rights to certain intellectual property held by the two companies. The Company is subject to certain annual minimum aggregate royalty obligations for use of the rainbow ® licensed technology. The current annual minimum royalty obligation is $5.0 million . Aggregate liabilities payable to Cercacor arising under the Cross-Licensing Agreement were $12.1 million , $10.9 million and $8.0 million for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. The Company had $0.1 million in sales to Cercacor for the year ended December 28, 2019 . The Company had less than $0.1 million in sales to Cercacor for each of the years ended December 29, 2018 and December 30, 2017 . • 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 28, 2019 , December 29, 2018 and December 30, 2017 . • 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. • Lease and Sublease Agreements - Effective December 14, 2019, the Company entered into a new lease agreement with Cercacor for approximately 34,000 of square feet of office, research and development space at one of the Company’s owned facilities in Irvine (Cercacor Lease). The term of the Cercacor Lease expires on December 31, 2024 . 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 expired on December 15, 2019 . The Company recognized approximately $0.4 million of combined lease and sublease income for each of the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 . Net amounts due to Cercacor were approximately $2.9 million as of December 28, 2019 and December 29, 2018 . The Company’s CEO is also the Chairman of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation), a non-profit organization that was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. In addition, the Company’s Executive Vice President (EVP), Chief Financial Officer (CFO) serves as the Treasurer of the Masimo Foundation and the Company’s EVP, General Counsel and Corporate Secretary serves as the Secretary for the Masimo Foundation. For the fiscal years ended December 28, 2019 and December 29, 2018 , the Company made cash contributions of approximately $1.0 million and $2.0 million , respectively, to the Masimo Foundation, a portion of which was, in turn, indirectly contributed by the Masimo Foundation to the Patient Safety Movement Foundation (PSMF) by a donor advised fund. For the fiscal year ended December 30, 2017 , the Company made no cash contributions to the Masimo Foundation. In addition, for each of the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company made various in-kind contributions to the Masimo Foundation, mainly in the form of donated administrative services. The Company’s CEO is also the Chairman of PSMF, 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 EVP, CFO also serves as the Treasurer of PSMF. During the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company contributed approximately $35,262 , $207,530 and $1,300 , respectively, to PSMF. The Company maintains an aircraft time share agreement, pursuant to which the Company has agreed from time to time to make its aircraft available to the Company’s CEO for lease on a time-sharing basis. The Company charges the Company’s CEO for personal use based on agreed upon reimbursement rates. During the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company charged the Company’s CEO $0.1 million , $0.2 million and less than $0.1 million , respectively, related to such reimbursements. |
Inventories
Inventories | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following (in thousands): December 28, December 29, Raw materials $ 55,920 $ 38,955 Work-in-process 10,966 9,036 Finished goods 48,985 46,741 Total $ 115,871 $ 94,732 |
Other Current Assets Other Curr
Other Current Assets Other Current Assets | 12 Months Ended |
Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | 5. Other Current Assets Other current assets consist of the following (in thousands): December 28, December 29, Lease receivable, current $ 20,250 $ — Prepaid expenses 11,746 10,582 Indirect taxes receivable 9,311 6,516 Prepaid income taxes 7,330 3,071 Customer notes receivable 4,847 3,780 Other 6,587 8,477 Total other current assets $ 60,071 $ 32,426 |
Lease Receivable Lease Receivab
Lease Receivable Lease Receivable | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lease Receivable | 6. Lease Receivable The Company adopted ASC 842, the lease accounting standard, effective as of December 30, 2018. Among other things, the Company’s adoption of ASC 842 resulted in changes to the classification of certain embedded leases within its deferred equipment agreements from operating-type leases to sales-type leases. As a result, the Company now recognizes revenue and costs, as well as a lease receivable, at the time the lease commences pursuant to deferred equipment agreements containing embedded sales-type leases. Lease revenue related to both operating-type and sales-type leases for the year ended December 28, 2019 was approximately $44.0 million and is included within product revenue in the accompanying consolidated statement of operations. Revenue and costs related to embedded leases within the Company’s deferred equipment agreements are included in product revenue and cost of goods sold, respectively. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. Lease receivable consists of the following (in thousands): December 28, Lease receivable $ 70,589 Allowance for credit loss (403 ) Lease receivable, net 70,186 Less: Current portion of lease receivable (20,250 ) Lease receivable, noncurrent $ 49,936 As of December 28, 2019 , estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands): Fiscal year Amount 2020 $ 20,653 2021 16,541 2022 13,500 2023 9,380 2024 5,869 Thereafter 4,646 Total $ 70,589 Estimated future operating lease payments expected to be received from customers under deferred equipment agreements are not material as of December 28, 2019 . |
Deferred Costs and Other Contra
Deferred Costs and Other Contract Assets Deferred Costs and Other Contract Assets | 12 Months Ended |
Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs and Other Contract Assets | 7. Deferred Costs and Other Contract Assets Deferred costs and other contract assets consist of the following (in thousands): December 28, December 29, Prepaid contract allowances $ 8,098 $ 7,036 Deferred commissions 5,260 5,085 Unbilled contract receivables 2,482 2,368 Equipment leased to customers, net (1) 374 108,417 Deferred costs and other contract assets $ 16,214 $ 122,906 ______________ (1) Formerly titled “Deferred cost of goods sold”. In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded a reduction to equipment leased to customers, net, of $103.5 million as a result of the reclassification of certain embedded leases within the Company’s deferred equipment agreements with its customers from operating to sales-type leases. See “Recently Adopted Accounting Pronouncements” under Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , $1.0 million , $30.0 million and $27.5 million , respectively, of equipment leased to customers was amortized to cost of goods sold. As of December 28, 2019 and December 29, 2018 , accumulated amortization of equipment leased to customers was $0.7 million and $103.1 million , respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment Property and equipment, net consists of the following (in thousands): December 28, December 29, Building and building improvements $ 101,731 $ 88,449 Machinery and equipment 58,864 54,525 Land 40,216 23,762 Aircraft and vehicles 29,934 25,555 Computer equipment 19,650 16,582 Leasehold improvements 15,921 16,428 Tooling 15,346 14,212 Furniture and office equipment 11,049 10,459 Demonstration units 836 470 Construction-in-progress (CIP) 39,107 13,320 Total property and equipment 332,654 263,762 Accumulated depreciation (113,102 ) (97,790 ) Property and equipment, net $ 219,552 $ 165,972 During the year ended December 28, 2019 , the Company, through its wholly owned subsidiaries, completed the purchase of two buildings for an aggregate purchase price of $35.6 million . The balance in CIP at December 28, 2019 relates primarily to acquisition and improvement costs for a portion of a recently purchased building and capitalized implementation costs related to a new enterprise resource planning software system, the underlying assets for which have not been completed or placed into service. The balance in CIP at December 29, 2018 related primarily to capitalized costs associated with the implementation of a new enterprise resource planning software system and capital improvements to various facilities, the underlying assets for which had not been completed or placed into service. For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , depreciation expense of property and equipment was $19.1 million , $16.3 million and $15.2 million |
Lessee ROU Assets and Lease Lia
Lessee ROU Assets and Lease Liabilities Lessee ROU Assets and Lease Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lessee ROU Assets and Lease Liabilities | 9. Lessee ROU Assets and Lease Liabilities The Company adopted ASC 842, the lease accounting standard, effective as of December 30, 2018. Among other things, the Company’s adoption of ASC 842 resulted in: (a) the recognition of lessee ROU assets for the right to use assets subject to operating leases; and (b) the recognition of lessee lease liabilities for its obligation to make operating lease payments. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. The Company leases certain facilities in North and South America, Europe, the Middle East and Asia-Pacific regions under operating lease agreements expiring at various dates through June 2028 . In addition, the Company leases equipment in the U.S. and Europe that are classified as operating leases and expire at various dates through September 2023 . The majority of these leases are non-cancellable and generally do not contain any material restrictive covenants, material residual value guarantees or other material guarantees. The Company recognizes lease costs under these agreements using a straight-line method based on total lease payments. Certain facility leases contain predetermined price escalations and in some cases renewal options, the longest of which is for five years . The Company generally estimates the applicable discount rate used to determine the net present value of lease payments based on available information at the lease commencement date. As of December 28, 2019 , the weighted average discount rate used by the Company for all operating leases was approximately 3.7% . For the period ended December 28, 2019 , the balance sheet classifications for amounts related to the Company’s operating leases for which it is the lessee were as follows: Balance sheet classification Amount Lessee ROU assets Other non-current assets $ 19,137 Lessee current lease liabilities Other current liabilities 4,653 Lessee non-current lease liabilities Other non-current liabilities 15,834 Total operating lease liabilities $ 20,487 The weighted average remaining lease term for the Company’s operating leases was 8.0 years as of December 28, 2019 . As of December 28, 2019 , estimated future operating lease payments for each of the following fiscal years were as follows (in thousands): Fiscal year Amount 2020 $ 5,280 2021 3,371 2022 2,165 2023 1,875 2024 1,756 Thereafter (1) 9,399 Total 23,846 Imputed interest (3,359 ) Present value $ 20,487 ______________ (1) Includes optional renewal period for certain leases. As of December 29, 2018 , the estimated future minimum lease payments, including interest, under operating leases for each of the following fiscal years ending on or about December 31 were as follows (in thousands): Fiscal year Amount 2019 $ 6,926 2020 4,422 2021 2,384 2022 1,701 2023 1,568 Thereafter (1) 9,921 Total $ 26,922 ______________ (1) Includes optional renewal period for certain leases. Lease costs for the year ended December 28, 2019 were as follows (in thousands): Amount Operating lease costs $ 6,790 Short-term lease costs 12 Sublease income (232 ) Total lease cost $ 6,570 For the years ended December 29, 2018 and December 30, 2017 , rental expense related to operating leases was $6.9 million and $6.7 million , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 10. Intangible Assets Intangible assets, net consist of the following (in thousands): December 28, December 29, Cost Patents $ 23,242 $ 21,323 Customer relationships 7,669 7,669 Licenses-related party 7,500 7,500 Acquired technology 5,580 5,580 Trademarks 4,614 4,190 Capitalized software development costs 3,328 3,430 Other 5,466 5,466 Total cost $ 57,399 $ 55,158 Accumulated amortization Patents $ (9,251 ) $ (8,868 ) Licenses-related party (5,984 ) (5,252 ) Customer relationships (5,688 ) (4,921 ) Acquired technology (4,182 ) (3,624 ) Trademarks (2,195 ) (1,889 ) Capitalized software development costs (2,137 ) (1,983 ) Other (711 ) (697 ) Total accumulated amortization (30,148 ) (27,234 ) Net carrying amount $ 27,251 $ 27,924 Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2020 $ 4,172 2021 3,926 2022 3,199 2023 2,097 2024 1,768 Thereafter 12,089 Total $ 27,251 For the years ended December 28, 2019, December 29, 2018 and December 30, 2017 , amortization of intangible assets was $4.4 million , $4.8 million and $4.9 million , respectively. As of December 28, 2019 and December 29, 2018 , the total costs of patents not yet amortizing was $6.1 million and $5.3 million , respectively. As of December 28, 2019 and December 29, 2018 , the total costs of trademarks not yet amortizing was $0.7 million and $0.5 million , respectively. For the years ended December 28, 2019 and December 29, 2018 , total renewal costs capitalized for patents and trademarks was $1.3 million and $0.5 million , respectively. As of December 28, 2019, the weighted-average number of years until the next renewal was two years for patents and six years for trademarks. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 11. Goodwill Changes in goodwill were as follows (in thousands): December 28, December 29, Goodwill, beginning of period $ 23,297 $ 20,617 Adjustments to goodwill from finalization of purchase price allocation (651 ) 3,402 Foreign currency translation adjustment (296 ) (722 ) Goodwill, end of period $ 22,350 $ 23,297 On September 21, 2018, the Company acquired all of the outstanding shares of a private patient monitoring software company for approximately $4.0 million . Based on the Company’s purchase price allocation, approximately $2.8 million of the purchase price has been assigned to goodwill, $0.7 million of which was recorded as an adjustment to the preliminary purchase price allocation to deferred tax assets based on additional analysis completed during the year ended December 28, 2019 . The assets and liabilities of the acquired company and its operating results are included in these consolidated financial statements from the date of acquisition. |
Other Non-Current Assets Other
Other Non-Current Assets Other Non-Current Assets | 12 Months Ended |
Dec. 28, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | 12. Other Non-Current Assets Other assets, long-term consist of the following (in thousands): December 28, December 29, Lessee ROU assets $ 19,137 $ — Strategic investments 6,475 1,200 Prepaid deposits 3,022 2,881 Other 157 151 Total other assets, long-term $ 28,791 $ 4,232 |
Deferred Revenue and Other Cont
Deferred Revenue and Other Contract Liabilities Deferred Revenue and Other Contract Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue and Other Contract Liabilities | 13. Deferred Revenue and Other Contract Liabilities Deferred revenue and other contract liabilities consist of the following (in thousands): December 28, December 29, Deferred revenue (1) $ 13,998 $ 10,328 Accrued rebates and allowances 8,436 7,269 Accrued customer reimbursements (2) 5,739 16,194 Total deferred revenue and other contract liabilities 28,173 33,791 Less: Non-current portion of deferred revenue (2,234 ) (1,737 ) Deferred revenue and other contract liabilities - current $ 25,939 $ 32,054 ______________ (1) In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded a reduction to deferred revenue of approximately $1.1 million due to the acceleration of revenue as a result of the reclassification of certain embedded leases within the Company’s deferred equipment agreements with its customers from operating to sales-type leases. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. (2) In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded a reduction to accrued customer reimbursements of approximately $12.3 million related to the derecognition of liabilities and leased equipment assets for certain OEM equipment reimbursements. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. Deferred revenue relates to contracted amounts that have been invoiced to customers for which remaining performance obligations must be completed before the Company can recognize the revenue. These amounts primarily relate to undelivered equipment, sensors and services under deferred equipment agreements and extended warranty agreements. Changes in deferred revenue for the year ended December 28, 2019 were as follows: Amount Deferred revenue, beginning of the period $ 10,328 Revenue deferred during the period 11,261 Recognition of revenue deferred in prior periods (7,591 ) Deferred revenue, end of the period $ 13,998 Expected revenue from remaining contractual performance obligations (Unrecognized Contract Revenue) includes deferred revenue, as well as other amounts that will be invoiced and recognized as revenue in future periods when the Company completes its performance obligations. While Unrecognized Contract Revenue is similar in concept to backlog, Unrecognized Contract Revenue excludes revenue allocable to monitoring-related equipment that is effectively leased to customers under deferred equipment agreements and other contractual obligations for which neither party has performed. The following table summarizes the Company’s estimated Unrecognized Contract Revenue as of December 28, 2019 and the future periods within which the Company expects to recognize such revenue. Expected Future Revenue By Period (in thousands) Less than 1 Year Between 1-3 Years Between 3-5 Years More than 5 Years Total Unrecognized contract revenue $ 201,874 $ 319,513 $ 150,928 $ 39,515 $ 711,830 The estimated timing of this revenue is based, in part, on management’s estimates and assumptions about when its performance obligations will be completed. As a result, the actual timing of this revenue in future periods may vary, possibly materially, from those reflected in this table. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 14. Other Current Liabilities Other current liabilities consist of the following (in thousands): December 28, December 29, Accrued indirect taxes payable $ 7,545 $ 6,465 Income tax payable 7,142 3,071 Accrued expenses 6,115 5,038 Lessee lease liabilities, current 4,653 — Accrued warranty 3,395 1,910 Related party payables 3,024 4,000 Accrued legal fees 1,839 1,481 Accrued property taxes 1,629 791 Other 1,685 1,871 Total other current liabilities $ 37,027 $ 24,627 |
Credit Facilities Credit Faclil
Credit Facilities Credit Faclilities | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facilities | 15. Credit Facilities The Company currently maintains a credit agreement ( Credit Facility ) with JPMorgan Chase Bank, N.A., as Administrative Agent and a Lender, and Bank of the West, a Lender (collectively, the Lenders). The Credit Facility provides for up to $150.0 million of unsecured borrowings, with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity up to $550.0 million in the future with the Lenders and additional lenders, as required. The Credit Facility also provides for a sublimit of up to $25.0 million for the issuance of letters of credit and a sublimit of $75.0 million for borrowings in specified foreign currencies. All unpaid principal under the Credit Facility will become due and payable on December 17, 2023. Proceeds from the Credit Facility are expected to be used for general corporate, capital investment and working capital needs. Borrowings under the Credit Facility will be deemed, at the Company’s election, either: (a) an Alternate Base Rate (ABR) Loan, which bears interest at the ABR, plus a spread of 0.125% to 1.000% based upon a Company leverage ratio, or (b) a Eurocurrency Loan, which bears interest at the Adjusted LIBO Rate (as defined below), plus a spread of 1.125% to 2.000% based upon a Company net leverage ratio. Subject to certain conditions, the Company may also request swingline loans from time to time that bear interest similar to an ABR Loan. Pursuant to the terms of the Credit Facility , the ABR is equal to the greatest of (i) the prime rate, (ii) the Federal Reserve Bank of New York effective rate plus 0.50% , and (iii) the one-month Adjusted LIBO Rate plus 1.0% . The Adjusted LIBO Rate is equal to the Eurocurrency Rate (as defined within the 2018 Credit Facility) for the applicable interest period multiplied by the statutory reserve rate for such period, rounded upward, if necessary, to the next 1/16 of 1% . The Company is also obligated under the Credit Facility to pay an unused fee ranging from 0.150% to 0.275% per annum, based upon a Company leverage ratio, with respect to any unutilized portion of the Credit Facility . Pursuant to the terms of the Credit Facility , the Company is subject to certain covenants, including financial covenants related to a net leverage ratio and an interest charge coverage ratio, and other customary negative covenants. The Credit Facility also includes customary events of default which, upon the occurrence of any such event of default, provide the Lenders with the right to take either or both of the following actions: (a) immediately terminate the commitments, and (b) declare the loans then outstanding immediately due and payable in full. As of December 28, 2019 and December 29, 2018 , the Credit Facility had no outstanding draws and as of December 28, 2019 , the Credit Facility had $1.7 million of outstanding letters of credit. The Company was in compliance with all covenants under the Credit Facility as of December 28, 2019 . The Company incurred total combined interest expense of $0.3 million , $0.6 million and $0.7 million for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | 16. Other Non-Current Liabilities Other non-current liabilities consist of the following (in thousands): December 28, December 29, Income tax payable, noncurrent $ 21,509 $ 21,522 Lessee lease liabilities, noncurrent 15,834 — Unrecognized tax benefits 13,184 11,717 Deferred tax liabilities 3,052 2,956 Other 2,456 3,003 Total other non-current liabilities $ 56,035 $ 39,198 Unrecognized tax benefits relate to the Company’s long-term portion of tax liabilities 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 20 to these consolidated financial statements for further details. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Stock Repurchase Program | 17. Stock Repurchase Program In September 2015, the Company’s Board of Directors (Board) authorized a stock repurchase program, whereby the Company could purchase up to 5.0 million shares of its common stock over a period of up to three years (2015 Repurchase Program). A total of 3.1 million shares were purchased by the Company pursuant to the 2015 Repurchase Program prior to its expiration in September 2018. In July 2018, the Board approved a new stock repurchase program, authorizing the Company to purchase up to 5.0 million additional shares of its common stock over a period of up to three years (2018 Repurchase Program). The 2018 Repurchase Program became effective in September 2018 upon the expiration of the 2015 Repurchase Program. The Company expects to fund the 2018 Repurchase Program through its available cash, cash expected to be generated from future operations, the Credit Facility and other potential sources of capital. The 2018 Repurchase Program can be carried out at the discretion of a committee comprised of the Company’s CEO and CFO through open market purchases, one or more Rule 10b5-1 trading plans, block trades and privately negotiated transactions. As of December 28, 2019 , 4.7 million shares remained available for repurchase pursuant the 2018 Repurchase Program. The following table provides a summary of the Company’s stock repurchase activities during the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 (in thousands, except per share amounts): Years Ended December 28, December 29, December 30, Shares repurchased 275 (1) 196 (1) 804 Average cost per share $ 136.61 $ 84.12 $ 84.90 Value of shares repurchased $ 37,554 $ 16,490 $ 68,260 ______________ (1) Excludes shares withheld from the shares of its common stock actually issued in connection the vesting of PSU awards to satisfy certain U.S. federal and state tax withholding obligations. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 18. Stock-Based Compensation Total stock-based compensation expense for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $39.2 million , $27.4 million and $17.2 million , respectively. As of December 28, 2019 , an aggregate of 10.8 million shares of common stock were reserved for future issuance under the Company’s equity plans, of which 2.4 million shares were available for future grant under the Masimo Corporation 2017 Equity Incentive Plan (2017 Equity Plan). Additional information related to the Company’s current equity incentive plans, stock-based award activity and valuation of stock-based awards is included below. Equity Incentive Plans 2017 Equity Incentive Plan On June 1, 2017, the Company’s stockholders ratified and approved the 2017 Equity Plan. The 2017 Equity Plan permits the grant of stock options, restricted stock, RSUs, stock appreciation rights, PSUs, performance shares, performance bonus awards and other stock or cash awards to employees, directors and consultants of the Company and employees and consultants of any parent or subsidiary of the Company. The aggregate number of shares that may be awarded under the 2017 Equity Plan is 5.0 million shares. The 2017 Equity Plan provides that at least 95% of the equity awards issued under the 2017 Equity Plan must vest over a period of not less than one year following the date of grant. The exercise price per share of each option granted under the 2017 Equity Plan may not be less than the fair market value of a share of the Company’s common stock on the date of grant, which is generally equal to the closing price of the Company’s common stock on the Nasdaq Global Select Market on the grant date. 2007 Stock Incentive Plan Effective June 1, 2017, upon the approval and ratification of the 2017 Equity Plan, the Company’s 2007 Stock Incentive Plan (2007 Equity Plan) terminated, provided that awards outstanding under the 2007 Equity Plan will continue to be governed by the terms of that plan. In addition, upon the effectiveness of the 2017 Equity Plan, an aggregate of 5.0 million shares of the Company’s common stock registered under prior registration statements for issuance pursuant to the 2007 Equity Plan were deregistered and concurrently registered under the 2017 Equity Plan. Stock-Based Award Activity Stock Options The number and weighted-average exercise price of options issued and outstanding under all of the Company’s equity plans are as follows (in thousands, except for exercise prices): Year Ended Year Ended Year Ended Shares Average Shares Average Exercise Price Shares Average Options outstanding, beginning of period 5,676 $ 43.61 6,953 $ 36.26 8,521 $ 28.56 Granted 545 140.56 564 98.47 928 86.69 Canceled/Forfeited (158 ) 83.14 (233 ) 67.45 (250 ) 38.59 Exercised (851 ) 33.32 (1,608 ) 27.62 (2,246 ) 27.63 Options outstanding, end of period 5,212 $ 54.23 5,676 $ 43.61 6,953 $ 36.26 Options exercisable, end of period 3,311 $ 33.80 3,273 $ 29.63 3,812 $ 26.28 Total stock option expense for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $14.8 million , $13.8 million , and $12.0 million , respectively. As of December 28, 2019 , the Company had $44.9 million of unrecognized compensation cost related to outstanding and unvested options that are expected to vest over a weighted average period of approximately 2.8 years . 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 $15.00 to $35.00 2,287 3.35 2,240 2,956 4.24 2,560 $35.01 to $55.00 1,189 5.95 724 1,341 6.97 548 $55.01 to $75.00 53 6.69 23 72 7.75 20 $75.01 to $95.00 985 7.76 291 1,076 8.75 141 $95.01 to $115.00 144 8.61 26 160 9.54 4 $115.01 to $135.00 251 9.12 7 71 9.73 — $135.01 to $160.00 303 9.63 — — 0.00 — Total 5,212 5.60 3,311 5,676 6.01 3,273 As of December 28, 2019 and December 29, 2018 , the weighted-average remaining contractual term of options outstanding was 5.6 years and 6.0 years, respectively. As of December 28, 2019 and December 29, 2018 , 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 4.3 years and 4.7 years, respectively. RSUs The number of RSUs issued and outstanding under all of the Company’s equity plans are as follows (in thousands, except for weighted average grant date fair value amounts): Year Ended Year Ended Year Ended Units Weighted Average Units Weighted Average Units Weighted Average RSUs outstanding, beginning of period 2,707 $ 95.54 2,708 $ 95.51 2,706 $ 95.40 Granted 100 133.57 7 99.05 33 86.42 Canceled/Forfeited (3 ) 133.50 — — (25 ) 85.79 Vested (7 ) 99.05 (8 ) 88.40 (6 ) 43.09 RSUs outstanding, end of period 2,797 $ 96.85 2,707 $ 95.54 2,708 $ 95.51 Total RSU expense for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $2.8 million , $0.7 million and $0.5 million , respectively. As of each of December 28, 2019 , the Company had $10.4 million of unrecognized compensation cost related to unvested RSU awards expected to be recognized and vest over a weighted-average period of approximately 3.9 years , excluding any contingent compensation expense related to certain RSUs that were granted to the Company’s Chairman and CEO in connection with the amendment and restatement of his employment agreement. See “Employment and Severance Agreements” in Note 21 to these consolidated financial statements for further details on the CEO’s employment agreement. PSUs The number of PSUs outstanding under all of the Company’s equity plans are as follows (in thousands, except for weighted average grant date fair value amounts): Year Ended Year Ended Year Ended Units Weighted Average Units Weighted Average Units Weighted Average PSUs outstanding, beginning of period 313 $ 88.34 233 $ 90.70 — $ — Granted 128 133.50 197 86.95 248 90.71 Canceled/Forfeited — — (86 ) 90.71 (15 ) 90.87 Vested (29 ) 90.69 (31 ) 90.70 — — PSUs outstanding, end of period 412 $ 102.22 313 $ 88.34 233 $ 90.70 During the year ended December 30, 2017 , the Company awarded 248,000 PSUs that would vest in part over time based on the achievement of certain 2017 performance criteria approved by the Compensation Committee of the Board (Compensation Committee). In March 2018, the Compensation Committee determined that 165,000 shares had been earned based on the 2017 performance criteria, at which time 20% of the PSUs granted were vested. The remaining award vests in four equal installments at the beginning of each of the following four years based on continued employment with the Company. During the year ended December 29, 2018 , the Company awarded 197,000 PSUs that would vest three years from the award date based on the achievement of certain 2020 performance criteria approved by the Compensation Committee. If earned, the PSUs granted will vest at the time the achievement level of the performance criteria is determined by the Compensation Committee. The number of shares that may be earned can range from 0% to 200% of the target amount; therefore, the maximum number of shares that can be issued under these awards is twice the original award of 197,000 PSUs or 394,000 shares. During the year ended December 28, 2019 , the Company awarded 128,000 PSUs that would vest three years from the award date, based on the achievement of certain 2021 performance criteria approved by the Board. If earned, the PSUs granted will vest upon achievement of the performance criteria after the year in which the performance achievement level has been determined. The number of shares that may be earned can range from 0% to 200% of the target amount; therefore, the maximum number of shares that can be issued under these awards is twice the original award of 128,000 PSUs or 256,000 shares. The total PSU expense for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $21.6 million , $12.9 million and $4.7 million , respectively. As of December 28, 2019 , the Company had $37.7 million of unrecognized compensation cost related to non-vested PSU awards expected to be recognized and vest over a weighted-average period of approximately 1.4 years . 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 stock-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 1.4% to 2.6% 2.3% to 3.1% 1.7% to 2.2% Expected term 5.1 years to 5.2 years 5.2 years to 5.6 years 5.5 years to 5.6 years Estimated volatility 28.2% to 30.0% 26.8% to 32.0% 29.7% to 32.1% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $42.29 per share $31.85 per share $27.81 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 2019 , 2018 and 2017 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 28, 2019 , December 29, 2018 and December 30, 2017 , no dividend rate was used in the assumptions to calculate the stock-based compensation expense. The Company has elected to recognize stock-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 2019 , 2018 and 2017 was $14.2 million , $13.7 million and $10.5 million , respectively. 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 28, 2019 was $548.6 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 28, 2019 was $416.2 million . The aggregate intrinsic value of options exercised during the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 was $93.9 million , $127.1 million and $140.3 million , respectively. The total income tax benefit recognized in the consolidated statements of operations for stock-based compensation expense was $15.7 million , $22.0 million and $39.2 million for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. The following table presents the total stock-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 $ 445 $ 334 $ 351 Selling, general and administrative 30,450 21,391 13,272 Research and development 8,340 5,692 3,564 Total $ 39,235 $ 27,417 $ 17,187 The increase in total stock-based compensation expense during the year ended December 28, 2019 was due to both the composition of the equity awards granted and a significant increase in the fair market value of the Company’s stock from the prior year, which increased the value of the equity awards granted during such year. |
Non-operating Income Non-operat
Non-operating Income Non-operating Income | 12 Months Ended |
Dec. 28, 2019 | |
Nonoperating Income (Expense) [Abstract] | |
Non-operating Income | 19. Non-operating Income Non-operating income consists of the following (in thousands): Year Ended Year Ended Year Ended Interest income $ 13,917 $ 8,178 $ 2,974 Realized and unrealized foreign currency loss (627 ) (2,027 ) (270 ) Interest expense (328 ) (706 ) (678 ) Other (12 ) 287 (13 ) Total $ 12,950 $ 5,732 $ 2,013 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 20. Income Taxes The components of income before provision for income taxes are as follows (in thousands): Year Ended Year Ended Year Ended United States $ 181,664 $ 173,848 $ 159,245 Foreign 52,502 39,928 26,555 Total $ 234,166 $ 213,776 $ 185,800 The following table presents the current and deferred provision (benefit) for income taxes (in thousands): Year Ended Year Ended Year Ended Current: Federal $ 30,218 $ 20,418 $ 38,777 State 5,273 3,075 1,940 Foreign 8,424 5,014 3,018 Subtotal $ 43,915 $ 28,507 $ 43,735 Deferred: Federal $ (3,732 ) $ (6,678 ) $ 20,735 State (1,985 ) (1,258 ) (3,420 ) Foreign (248 ) (338 ) (39 ) Subtotal (5,965 ) (8,274 ) 17,276 Total $ 37,950 $ 20,233 $ 61,011 Included in the fiscal year 2019 , 2018 and 2017 tax provisions are increases/(decrease) of $1.8 million , ($1.6 million ) and $1.6 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 21.0 % 21.0 % 35.0 % State provision, net of federal benefit 1.1 0.7 (0.6 ) Nondeductible executive compensation 2.1 1.9 1.3 Research and development tax credits (1.1 ) (1.4 ) (2.2 ) Foreign income taxed at different rates (1.7 ) (2.0 ) (3.4 ) U.S. tax on foreign income, net 0.1 0.7 — Impact of 2017 Tax Act — 0.1 18.8 Withholding taxes on undistributed foreign earnings, net — (0.6 ) 3.5 Excess stock-based compensation (6.0 ) (9.4 ) (20.3 ) Derecognition of uncertain tax position — (1.5 ) — Other 0.7 — 0.7 Total 16.2 % 9.5 % 32.8 % The Tax Cuts and Jobs Act of 2017 that was signed in to law on December 22, 2017 (2017 Tax Act) included a number of changes to existing U.S. federal tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 35% to 21% , a one-time transition tax on the “deemed repatriation” of cumulative undistributed foreign earnings as of December 31, 2017 and changes in the prospective taxation of the foreign operations of U.S. multinational companies. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of GAAP in situations when a registrant did not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the 2017 Tax Act and provided for a measurement period of one year from the enactment date to finalize the accounting for effects of the 2017 Tax Act. Given the complexity and lack of specificity related to certain provisions of the 2017 Tax Act, the Company made certain estimates and assumptions in connection with the calculation of its provision for income taxes for the year ended December 30, 2017 and recorded a discrete tax charge of approximately $37.0 million . In addition, as a result of this change in U.S. tax policy, the Company recorded a related discrete tax charge of $6.5 million as a result of its decision to repatriate certain accumulated undistributed earnings from the Company’s foreign subsidiaries. During the year ended December 29, 2018 , the Company completed its analysis of the income tax effects of the 2017 Tax Act and, pursuant to SAB 118, recorded an adjustment of approximately $0.9 million to reduce its previously estimated accrual based on additional information and guidance that became available with respect to the application of certain provisions of the 2017 Tax Act. The U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies will continue to interpret or issue guidance on how provisions of the 2017 Tax Act will be applied or otherwise administered. As future guidance is issued, the Company may make adjustments to amounts that it has previously recorded that may materially impact its provision for income taxes in the period in which such adjustments are made. As of December 28, 2019 , the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $183.5 million . Because such earnings have previously been subject to U.S. tax, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of its foreign investments would generally be limited to foreign withholding and state taxes. The Company considers $86.5 million of these accumulated undistributed earnings as no longer permanently reinvested and has accrued foreign withholding and state taxes, net of estimated foreign tax credits, of $1.6 million . The Company intends, however, to indefinitely reinvest the remaining $97.0 million of earnings. If the Company decides to distribute such permanently reinvested earnings, the Company would accrue estimated additional income tax expense of up to approximately $4.8 million . The components of the deferred tax assets are as follows (in thousands): December 28, December 29, Deferred tax assets: Tax credits $ 6,438 $ 5,672 Deferred revenue 13,948 331 Accrued liabilities 13,273 12,645 Stock-based compensation 7,926 6,615 Operating lease assets 4,174 — Other 1,591 — Total 47,350 25,263 Valuation allowance — — Total deferred tax assets $ 47,350 $ 25,263 Deferred tax liabilities: Property and equipment $ (6,604 ) $ (2,504 ) State taxes and other (1,152 ) (857 ) Withholding taxes on undistributed foreign earnings (2,829 ) (2,803 ) Operating lease liabilities (3,845 ) — Other — (845 ) Total deferred tax liabilities (14,430 ) (7,009 ) Net deferred tax assets $ 32,920 $ 18,254 As of December 28, 2019 , the Company has $1.2 million of net operating losses from various states, which will begin to expire in 2023. The Company also has state research and development tax credits of $10.1 million that will carry forward indefinitely and $0.3 million of Canadian investment tax credits on research and development expenditures that will begin to expire in 2032. 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 29, 2018 and December 30, 2017 , the estimated income tax benefit related to such business arrangement was $1.7 million and $1.0 million , respectively, and favorably impacted net income per diluted share by $0.03 and $0.02 , respectively. These estimated benefit amounts exclude any incremental U.S. taxes imposed as a result of various provisions of the 2017 Tax Act. 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 $ 15,412 $ 16,157 Increase from tax positions in prior period 81 701 Increase from tax positions in current period 2,636 2,633 Settlements — (33 ) Lapse of statute of limitations (1,120 ) (4,046 ) Unrecognized tax benefits (gross), end of period $ 17,009 $ 15,412 The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $15.7 million and $14.2 million as of December 28, 2019 and December 29, 2018 , 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 28, 2019 , December 29, 2018 and December 30, 2017 , the Company recorded an expense/(benefit) of $0.5 million , ($0.8 million ) and $0.3 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 28, 2019 and December 29, 2018 were $1.3 million and $0.8 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 2015. All material state, local and foreign income tax matters have been concluded for years through 2012. The Company does not believe that the results of any tax authority examination would have a significant impact on its financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies Employee Retirement Savings Plan The Company sponsors a qualified defined contribution plan or 401(k) plan, the Masimo Retirement Savings Plan (MRSP), covering the Company’s full-time U.S. employees who meet certain eligibility requirements. In general, the Company matches an employee’s contribution up to 3% of the employee’s compensation, subject to a maximum amount. The Company may also contribute to the MRSP on a discretionary basis. The Company contributed $2.5 million , $2.3 million and $2.2 million to the Plan for the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively, all in the form of matching contributions. In addition, the Company sponsors various defined contribution plans in certain locations outside of the United States, the contributions to which were not material for any period. Employment and Severance Agreements In July 2017, the Company entered into the First Amendment to the certain Amended and Restated Employment Agreement entered into between the Company and Mr. Kiani on November 4, 2015 (as amended, the Amended Employment Agreement). Pursuant to the terms of the Amended Employment Agreement, upon a “Qualifying Termination” (as defined in the Amended Employment Agreement), Mr. Kiani will be entitled to receive a cash severance benefit equal to two times the sum of his then-current base salary and the average annual bonus paid to Mr. Kiani during the immediately preceding three years, the full amount of the “Award Shares” (as defined in the Amended Employment Agreement) and the full amount of the “Cash Payment” (as defined in the Amended Employment Agreement). In addition, in the event of a “Change in Control” (as defined in the Amended Employment Agreement) prior to a Qualifying Termination, on each of the first and second anniversaries of the Change in Control, 50% of the Cash Payment and 50% of the Award Shares will vest, subject in each case to Mr. Kiani’s continuous employment through each such anniversary date; however, in the event of a Qualifying Termination or a termination of Mr. Kiani’s employment due to death or disability prior to either of such anniversaries, any unvested amount of the Cash Payment and all of the unvested Award Shares shall vest and be paid in full. Additionally, in the event of a Change in Control prior to a Qualifying Termination, Mr. Kiani’s stock options and any other equity awards will vest in accordance with their terms, but in no event later than in two equal installments on each of the one year and two year anniversaries of the Change in Control, subject in each case to Mr. Kiani’s continuous employment through each such anniversary date. As of December 28, 2019 , the expense related to the Award Shares and Cash Payment that would be recognized in the Company’s consolidated financial statements upon the occurrence of a Qualifying Termination under the Restated Employment Agreement was approximately $292.9 million . As of December 28, 2019 , the Company had severance plan participation agreements with eight executive officers. The participation agreements (the Agreements) are governed by the terms and conditions of the Company’s 2007 Severance Protection Plan, which became effective on July 19, 2007 and which was amended effective December 31, 2008. Under each of the Agreements, the applicable executive officer may be entitled to receive certain salary, equity, medical and life insurance benefits if he is terminated by the Company without cause or if he terminates his employment for good reason under certain circumstances. Each executive officer is also required to give the Company six months advance notice of his resignation under certain circumstances. Cercacor Cross-Licensing Agreement Provisions The Company’s Cross-Licensing Agreement with Cercacor contains annual minimum aggregate royalty obligations for use of the rainbow ® licensed technology. The current annual minimum royalty obligation is $5.0 million . Upon a change in control (as defined in the Cross-Licensing Agreement) 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 $108.4 million of purchase commitments as of December 28, 2019 , which are expected to be purchased within one year. These purchase commitments have been made for certain inventory items in order to secure sufficient levels of those items and to achieve better pricing. Other Contractual Commitments In the normal course of business, the Company may provide bank guarantees to support government hospital tenders in certain foreign jurisdictions. As of December 28, 2019 , the Company had approximately $2.3 million in outstanding unsecured bank guarantees. In certain circumstances, the Company also provides limited indemnification within its various customer contracts whereby the Company indemnifies the parties to whom it sells its products with respect to potential infringement of intellectual property, and against bodily injury caused by a defective Company product. It is not possible to predict the maximum potential amount of future payments under these or similar agreements, due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved. As of December 28, 2019 , the Company had not incurred any significant costs related to contractual indemnification of its customers. In January 2020, the Company entered into a definitive agreement for the acquisition of the Connected Care business from NantHealth, Inc. for approximately $47.3 million in cash, subject to certain purchase price adjustments. The transaction closed in February 2020. Concentrations of Risk The Company is exposed to credit loss for the amount of its cash deposits with financial institutions in excess of federally insured limits. The Company invests its excess cash in time deposits with major financial institutions. As of December 28, 2019 , the Company had $687.7 million of bank balances, which was comprised of $120.0 million of certificates of deposit and $567.7 million in checking or deposit accounts. Of the $567.7 million of bank balances, $3.8 million was covered by either the U.S. Federal Deposit Insurance Corporation limit or foreign countries’ deposit insurance organizations. 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 28, 2019 , December 29, 2018 and December 30, 2017 , revenue from the sale of the Company’s products to U.S. hospitals that are members of GPOs approximated 55.3% , 56.7% and 56.5% of total product revenue, retrospectively. For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company had sales through two just-in-time distributors that represented 13.0% and 11.1% , 12.9% and 10.4% , and 13.7% and 12.1% of total product revenue, respectively. As of December 28, 2019 and December 29, 2018 , one just-in-time distributor represented 6.2% and 6.7% of the Company’s accounts receivable balance, respectively. The majority of the Company’s historical royalty revenue arose from one agreement with Medtronic plc (Medtronic). For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company recognized royalty revenue pursuant to this agreement of $0.7 million , $26.4 million and $32.8 million , respectively. Pursuant to the agreement, Medtronic is not obligated to pay royalties to the Company for its sales occurring after October 6, 2018. The majority of the Company’s historical non-recurring engineering (NRE) service revenue arose from one agreement with Philips N.V. For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company recognized NRE service revenue pursuant to this agreement of approximately $0.7 million , $2.0 million and $19.2 million , respectively. As of December 28, 2019 , the Company had completed the majority of the contracted NRE services for Philips N.V. Litigation During the third quarter of fiscal year 2017, the Company became aware that certain amounts had been paid by a foreign government customer to the Company’s former appointed foreign agent in connection with a foreign government tender, but had not been remitted by such agent to the Company in accordance with the agency agreement. On December 28, 2017, the Company initiated arbitration proceedings against this foreign agent after unsuccessful attempts to recover such remittances. As a result, the Company recorded a net charge of approximately $10.5 million during the fourth quarter of fiscal year 2017 in connection with this dispute, of which $2.0 million was recovered during the year ended December 28, 2019 . An arbitration hearing was held on February 11, 2019. On July 8, 2019, the arbitrator awarded the Company $10.5 million in damages, fees and costs. On January 12, 2020, the Company received notice that bankruptcy restructuring proceedings had been initiated for the foreign agent. The Company filed its claim with the bankruptcy trustee on January 16, 2020. Although the Company intends to vigorously pursue collection of the arbitration award, there is no guarantee that the Company will be successful in these efforts. 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 March 26, 2019, an amended complaint was filed adding Radha Geismann, M.D. PC as an additional named plaintiff. On June 17, 2019, the plaintiffs filed their motion for class certification. On September 10, 2019, the parties filed motions for summary judgment. On September 30, 2019, the Company filed its opposition to the motion for class certification, and the plaintiffs filed their reply on October 7, 2019. On November 21, 2019, the District Court issued an order denying plaintiffs’ motion for class certification, granting in part and denying in part the Company’s motion for summary judgment, and deferring ruling on plaintiffs’ motion for summary judgment. On December 5, 2019, plaintiffs filed a petition for permission to appeal the order denying class certification, which was denied on January 24, 2020. Trial of the individual plaintiffs’ claims is scheduled for June 2, 2020. 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 9, 2020, the Company filed a complaint against Apple Inc. (Apple) in the U.S. District Court for the Central District of California for infringement of a number of patents, for trade secret misappropriation, and for ownership of a number of Apple patents listing one of its former employees as an inventor. The Company is seeking damages, injunctive relief, and declaratory judgment regarding ownership of the Apple patents. 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 Segment Information and Enterprise Reporting | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Information and Enterprise Reporting | 22. Segment Information and Enterprise Reporting The Company’s chief operating decision maker, the CEO, 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. In addition, the Company’s assets are primarily located in the U.S. The Company does not produce reports for, or measure the performance of, its geographic regions on any asset-based metrics. Therefore, geographic information is presented only for revenues and long-lived assets. The following schedule presents an analysis of the Company’s product revenues based upon the geographic area to which the product was shipped (in thousands, except percentages): Year Ended Year Ended Year Ended Geographic area by destination: United States (U.S.) $ 636,371 68.0 % $ 566,816 68.3 % $ 502,983 68.1 % Europe, Middle East and Africa 183,363 19.6 160,910 19.4 138,689 18.8 Asia and Australia 87,961 9.4 75,534 9.1 72,434 9.8 North and South America (excluding U.S.) 28,713 3.0 26,614 3.2 24,136 3.3 Total product revenue $ 936,408 100.0 % $ 829,874 100.0 % $ 738,242 100.0 % The Company’s consolidated long-lived assets (tangible non-current assets) by geographic area are (in thousands, except percentages): Year Ended Year Ended Year Ended Long-lived assets by geographic area: United States $ 216,650 98.5 % $ 262,373 95.6 % $ 247,555 96.2 % International 3,276 1.5 12,016 4.4 9,802 3.8 Total $ 219,926 100.0 % $ 274,389 100.0 % $ 257,357 100.0 % 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. The Company does not have any subsidiaries, affiliates, offices, investments or employees in any country identified as a state sponsor of terrorism. In addition, the Company did not have any sales to customers in Sudan or Syria during the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 . However, the Company did have immaterial product sales to certain customers where such products were ultimately destined for Iran during the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , but does not believe that such sales activities were material to its business, financial condition or results of operations. |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | 23. Quarterly Financial Data The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2019 and 2018 (in thousands, except per share data): Quarters Ended Fiscal 2019 March 30, June 29, September 28, December 28, Total revenue $ 231,664 $ 229,652 $ 229,011 $ 247,510 Gross profit 151,642 154,339 156,268 166,923 Operating income 56,023 52,004 51,632 61,557 Net income 49,322 44,888 49,085 52,921 Net income per share Basic (1) $ 0.93 $ 0.84 $ 0.92 $ 0.99 Diluted (1) $ 0.87 $ 0.79 $ 0.86 $ 0.92 Quarters Ended Fiscal 2018 March 31, June 30, September 29, December 29, Total revenue $ 212,953 $ 211,621 $ 210,583 $ 223,132 Gross profit 143,661 142,147 140,753 148,331 Operating income 53,885 51,612 48,641 53,906 Net income 45,630 43,853 57,126 46,934 Net income per share Basic (1) $ 0.88 $ 0.84 $ 1.09 $ 0.88 Diluted (1) $ 0.82 $ 0.79 $ 1.02 $ 0.83 ______________ (1) The sum of the basic and diluted earnings per share numbers for each quarter may not equal the basic and diluted earnings per share number for the entire year due to quarterly rounding. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | MASIMO CORPORATION VALUATION AND QUALIFYING ACCOUNTS Years ended December 28, 2019, December 29, 2018 and December 30, 2017 (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 28, 2019 Allowance for doubtful accounts (1) $ 1,535 $ 1,021 $ (350 ) $ 2,206 Allowance for sales returns and allowances 432 1,696 (1,428 ) 700 Year ended December 29, 2018 Allowance for doubtful accounts 2,116 (486 ) (95 ) 1,535 Allowance for sales returns and allowances 424 1,416 (1,408 ) 432 Year ended December 30, 2017 Allowance for doubtful accounts 1,698 251 167 2,116 Allowance for sales returns and allowances 605 1,646 (1,827 ) 424 ______________ (1) In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded allowance for credit loss for lease receivable which is included in the allowance for doubtful accounts for the year ended December 28, 2019. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
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 and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. As further discussed below in this Note 2 to these consolidated financial statements, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASU 2016-02) effective December 30, 2018. |
Fiscal Periods | Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 fiscal weeks while a 53 week fiscal year includes three 13 fiscal week quarters and one 14 fiscal week quarter. The Company’s last 53 week fiscal year was fiscal year 2014. Fiscal year 2019 is a 52 week fiscal year. 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 standalone selling prices, variable consideration and how total consideration should be allocated to each performance obligation within a contract, inventory valuation, valuation of the Company’s equity awards, deferred taxes and any associated valuation allowances, deferred revenue, uncertain income tax positions, and litigation costs and related accruals. Actual results could differ from such estimates. |
Reclassifications | Reclassifications Certain amounts in the accompanying consolidated financial statements have been reclassified to conform to the current period presentation, including previously reported selling, general and administrative expenses that have been reclassified as research and development expenses within the consolidated financial statements for the years ended December 29, 2018 and December 30, 2017 . |
Fair Value Measurements | Fair Value Measurements Authoritative guidance describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 - Quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Pursuant to current authoritative guidance, entities are allowed an irrevocable option to elect the fair value for the initial and subsequent measurement for specified financial assets and liabilities on a contract-by-contract basis. The Company did not elect to apply the fair value option under this guidance to specific assets or liabilities on a contract-by contract basis. There were no transfers between Level 1, Level 2 and Level 3 inputs during the years ended December 28, 2019 or December 29, 2018 . The Company carries cash and cash equivalents, as well as certificates of deposit with maturities of one year or less, at cost, which approximates fair value. The following tables represent the Company’s financial assets (in thousands), measured at fair value on a recurring basis as of December 28, 2019 : Reported as Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Equivalents Short-Term Cash $ 567,687 $ — $ — $ 567,687 $ 567,687 $ — Level 1: Certificates of deposit 120,000 — — 120,000 — 120,000 Subtotal 120,000 — — 120,000 — 120,000 Level 2: None — — — — — — Level 3: None — — — — — — Total assets measured at fair value $ 687,687 $ — $ — $ 687,687 $ 567,687 $ 120,000 As of December 29, 2018 , the Company had an insignificant amount of other financial assets that were required to be measured under the fair value hierarchy, the measurement of which were based on Level 1 inputs. |
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. |
Short-Term Investments | Short-Term Investments The Company classifies its investments in certificates of deposits maturing in one year or less that do not constitute cash equivalents on the date of the original investment as short-term investments. The carrying value of such investments approximates fair value and are accessible without any significant restrictions, taxes, or penalties. As of December 28, 2019 , the Company had total investments in certificates of deposit of $120.0 million with maturities ranging from two months to ten months . |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable consist of trade receivables recorded at the time of invoicing of product sales, 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 an evaluation of the customer’s financial condition. Collateral is generally not required. The allowance for doubtful accounts is determined based on historical write-off experience, current customer information and other relevant factors, including specific identification of past due accounts, based on the age of the receivable in excess of the contemplated or contractual due date. Accounts are charged off against the allowance when the Company believes they are uncollectible. |
Inventories | Inventory Inventories are stated at the lower of cost or net realizable value. Cost is determined using a standard cost method, which approximates the first in, first out method, and includes material, labor and overhead costs. Inventory valuation adjustments are recorded for inventory items that have become excess or obsolete or are no longer used in current production and for inventory items that have a market price less than carrying value in inventory. The Company generally determines inventory valuation adjustments based on an evaluation of the expected future use of its inventory on an item by item basis and applies historical obsolescence rates to estimate the loss on inventory expected to have a recovery value below cost. The Company also records other specific inventory valuation adjustments when it becomes aware of unique events or circumstances that result in an expected recovery value below cost. For inventory items that have been written down, the reduced value becomes the new cost basis. |
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 Aircraft and components 4 to 20 years Buildings 39 years Building improvements 7 to 15 years Computer equipment 2 to 6 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 10 years Tooling 3 years Vehicles 5 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. |
Lessee Right-of-Use (ROU) Assets and Lease Liabilities | Lessee Right-of-Use (ROU) Assets and Lease Liabilities As further discussed below within this Note 2 to these consolidated financial statements, the Company adopted ASC 842 effective December 30, 2018. The Company determines if an arrangement contains a lease at inception. ROU assets represent the Company’s right to use an asset underlying an operating lease for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from an operating lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company generally estimates the applicable discount rate used to determine the net present value of lease payments based on available information at the lease commencement date. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its lease terms unless they are reasonably certain to be exercised. The Company utilizes a portfolio approach to account for the ROU assets and liabilities associated with certain equipment leases. The Company has also made an accounting policy election not to separate lease and non-lease components for its real estate leases and to exclude short-term leases with a term of twelve months or less from its application of ASC 842. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. |
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. The Company’s policy is to renew its patents and trademarks. Costs to renew patents and trademarks are capitalized and amortized over the remaining useful life of the intangible asset. The Company continually evaluates the amortization period and carrying basis of patents and trademarks to determine whether any events or circumstances warrant a revised estimated useful life or reduction in value. Capitalized application costs are charged to operations when it is determined that the patent or trademark will not be obtained or is abandoned. |
Impairment of Goodwill, Intangible Assets and Other Long-Lived Assets | Impairment of Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets. Goodwill is not amortized, but instead is tested annually for impairment, or more frequently when events or changes in circumstances indicate that goodwill might be impaired. In assessing goodwill impairment, 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 a quantitative analysis is unnecessary. However, if the Company concludes otherwise, or if the Company elects to bypass the qualitative analysis, then the Company must perform a quantitative analysis that compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds its carrying amount, goodwill is not considered impaired; otherwise, a goodwill impairment loss is recognized for the lesser of: (a) the amount that the carrying amount of a reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to that reporting unit. The annual impairment test is performed during the fourth fiscal quarter. The Company reviews long-lived assets and identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash flows 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. |
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, Deferred Revenue and Other Contract Liabilities | Revenue Recognition, Deferred Revenue and Other Contract Liabilities The Company derives the majority of its product revenue from four primary sources: (i) direct sales under deferred equipment 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 customers; and (iv) sales of integrated circuit boards to OEM customers who incorporate the Company’s embedded software technology into their multiparameter monitoring devices. Subject to customer credit considerations, the majority of such sales are made on open account using industry standard payment terms based on the geography within which the specific customer is located. The Company generally recognizes revenue following a single, principles-based five-step model to be applied to all contracts with customers and generally provides for the recognition of revenue in an amount that reflects the consideration to which the Company expects to be entitled, net of allowances for estimated returns, discounts or sales incentives, as well as taxes collected from customers that are remitted to government authorities, when control over the promised goods or services are transferred to the customer. Revenue related to equipment supplied under sales-type lease arrangements is recognized once control over the equipment is transferred to the customer, while revenue related to equipment supplied under operating-type lease arrangements is generally recognized on a straight-line basis over the term of the lease. While the majority of the Company’s revenue contracts and transactions contain standard business terms and conditions, there are some transactions that contain non-standard business terms and conditions. As a result, contract interpretation, judgment and analysis is required to determine the appropriate accounting, including: (i) the amount of the total consideration, including variable consideration, (ii) whether the arrangement contains an embedded lease, and if so, whether such embedded lease is a sales-type lease or an operating lease, (iii) the identification of the distinct performance obligations contained within the arrangement, (iv) how the arrangement consideration should be allocated to each performance obligation when multiple performance obligations exist, including the determination of standalone selling price, and (v) when to recognize revenue on the performance obligations. Changes in judgments on these assumptions and estimates could materially impact the timing of revenue recognition. The Company enters into agreements to sell its monitoring solutions and services, sometimes as a part of arrangements with multiple performance obligations that include various combinations of product sales, equipment leases and services. In the case of contracts with multiple performance obligations, the authoritative guidance provides that the total consideration be allocated to each performance obligation on the basis of relative standalone selling prices. When a standalone selling price is not readily observable, the Company estimates the standalone selling price 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 other market conditions. Sales under deferred equipment agreements are generally structured such that the Company agrees to provide certain monitoring-related equipment, software, installation, training and/or warranty support at no up-front charge in exchange for the customer’s commitment to purchase sensors over the term of the agreement, which generally ranges from three years to six years . The Company allocates contract consideration under deferred equipment agreements containing fixed annual sensor purchase commitments to the underlying lease and non-lease components at contract inception. In determining whether any underlying lease components are related to a sales-type lease or an operating lease, the Company evaluates the customer’s rights and ability to control the use of the underlying equipment throughout the contract term, including any equipment substitution rights retained by the Company, as well as the Company’s expectations surrounding potential contract/lease extensions or renewals and the customer’s likelihood to exercise any purchase options. Revenue allocable to non-lease performance obligations is generally recognized as such non-lease performance obligations are satisfied. Revenue allocable to lease components under sales-type lease arrangements is generally recognized when control over the equipment is transferred to the customer. Revenue allocable to lease components under operating lease arrangements is generally recognized over the term of the operating lease. The Company generally does not expect to derive any significant value in excess of such asset’s unamortized book value from equipment underlying its operating lease arrangements after the end of the agreement. Revenue from the sale of products to end-user hospitals, emergency medical response organizations, other direct customers, distributors and OEM customers, is recognized by the Company when control of such products transfer to the customer based upon the terms of the contract or underlying purchase order. Revenue related to OEM rainbow ® parameter software licenses is recognized by the Company upon the OEM’s shipment of its product to its customer, as reported to the Company by the OEM. The Company provides certain customers with various sales incentives that may take the form of discounts or rebates. The Company records estimates related to these programs as a reduction to revenue at the time of sale. 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. The Company estimates the revenue constraints related to these forms of variable consideration based on various factors, including expected purchasing volumes, prior sales and returns history, and specific contractual terms and limitations. The majority of the Company’s royalty and other revenue arose from one agreement that was due and payable quarterly in arrears. An estimate of these royalty revenues was recorded in the period earned based on historical results, adjusted for any new information or trends known to management at the time of estimation. This estimated revenue was adjusted prospectively when the Company received the underlying royalty report, approximately sixty days after the end of the previous quarter. The Company received its final royalty payment from this agreement during the three months ended March 30, 2019. For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , the Company recognized royalty revenue pursuant to this agreement of approximately $0.7 million , $26.4 million and $32.8 million , respectively. |
Shipping and Handling Costs and Fees | Shipping and Handling Costs and Fees 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. |
Taxes Collected From Customers and Remitted to Governmental Authorities | Taxes Collected From Customers and Remitted to Governmental Authorities The Company’s policy is to present revenue net of taxes collected from customers and remitted to governmental authorities. |
Deferred Costs and Other Contract Assets | Deferred Costs and Other Contract Assets The costs of monitoring-related equipment provided to customers under operating lease arrangements within the Company’s deferred equipment agreements are generally deferred and amortized to cost of goods sold over the life of the underlying contracts. Some of the Company’s deferred equipment agreements also contain provisions for certain allowances to be made directly to the end-user hospital customer at the inception of the arrangement. These allowances are generally allocated to the lease and non-lease components and recognized as a reduction to revenue as the underlying performance obligations are satisfied. The Company generally invoices its customers under deferred equipment agreements as sensors are provided to the customer. However, the Company may recognize revenue for certain non-lease performance obligations under deferred equipment agreements with fixed annual commitments at the time such performance obligations are satisfied and prior to the customer being invoiced. When this occurs, the Company records an unbilled contract receivable related to such revenue until the customer has been invoiced pursuant to the terms of the underlying deferred equipment agreement. The incremental costs of obtaining a contract with a customer are capitalized and deferred if the Company expects such costs to be recoverable over the life of the contract and the contract term is greater than one year. Such deferred costs generally relate to certain incentive sales commissions earned by the Company’s internal sales team in connection with the execution of deferred equipment agreements and are amortized to expense over the expected term of the underlying contract. |
Product Warranty | Product Warranty The Company generally 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 traditional sales activities, including direct and OEM sales, the Company establishes an accrued liability for the estimated warranty costs at the time of revenue recognition, with a corresponding provision to cost of goods sold. Customers may also purchase extended warranty coverage or service level upgrades separately or as part of a deferred equipment agreement. Revenue related to extended warranty coverage and service level upgrades is generally recognized over the extended life of the contract, which reasonably approximates the period over which such services will be provided. The related extended warranty and service level upgrade costs are expensed as incurred. Changes in the product warranty accrual were as follows (in thousands): Year Ended December 28, December 29, December 30, Warranty accrual, beginning of period $ 1,910 $ 1,149 $ 910 Accrual for warranties issued 1,715 1,549 1,061 Changes in pre-existing warranties (including changes in estimates) (1) 1,130 551 332 Settlements made (1,360 ) (1,339 ) (1,154 ) Warranty accrual, end of period $ 3,395 $ 1,910 $ 1,149 ______________ (1) In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded an adjustment to pre-existing warranties of $2.5 million related to equipment previously capitalized under its deferred equipment agreements where the embedded leases were treated as operating leases under prior guidance. See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. |
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 28, 2019 , December 29, 2018 and December 30, 2017 were $14.0 million , $17.9 million and $17.8 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. |
Litigation Costs and Contingencies | 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. |
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 many other foreign subsidiaries, the largest of which are located in Japan and Europe. The functional currencies of these subsidiaries are the Japanese Yen and Euro, respectively. The Company records certain revenues and expenses in foreign currencies. These revenues and expenses are translated into U.S. Dollars based on the average exchange rate for the reporting period. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the exchange rate in effect as of the balance sheet date. Translation gains and losses related to foreign currency assets and liabilities of a subsidiary that are denominated in the functional currency of such subsidiary are included as a component of accumulated other comprehensive income (loss) within the accompanying consolidated balance sheets. Realized and unrealized foreign currency gains and losses related to foreign currency assets and liabilities of the Company or a subsidiary that are not denominated in the underlying functional currency are included as a component of non-operating (income) expense within the accompanying consolidated statements of operations. |
Comprehensive Income | Comprehensive Income Comprehensive income includes foreign currency translation adjustments and any related tax benefits that have been excluded from net income and reflected in stockholders’ equity. |
Net Income Per Share | Net Income Per Share The computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended December 28, December 29, December 30, Net income $ 196,216 $ 193,543 $ 124,789 Basic net income per share: Weighted-average shares outstanding - basic 53,434 52,296 51,516 Net income per basic share $ 3.67 $ 3.70 $ 2.42 Diluted net income per share: Weighted-average shares outstanding - basic 53,434 52,296 51,516 Diluted share equivalents: stock options and RSUs 3,666 3,743 4,358 Weighted-average shares outstanding - diluted 57,100 56,039 55,874 Net income per diluted share $ 3.44 $ 3.45 $ 2.23 Basic net income per share is computed by dividing net income by the weighted-average number of shares outstanding during the period. Net income per diluted share is computed by dividing the net income by the weighted-average number of shares and potential shares outstanding during the period, if the effect of potential shares is dilutive. Potential shares include incremental shares of stock issuable upon the exercise of stock options and the vesting of both restricted share units (RSUs) and performance stock units (PSUs). For the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , weighted options to purchase 0.4 million , 1.1 million and 0.4 million shares of common stock, respectively, were outstanding, but not included in the computation of diluted net income per share because the effect of including such shares would have been antidilutive in the applicable period. For each of the years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , certain RSUs were considered contingently issuable shares as their vesting is contingent upon the occurrence of certain future events. Since such events had not occurred and were not considered probable of occurring as of December 28, 2019 , December 29, 2018 and December 30, 2017 , 2.7 million of weighted average shares related to such RSUs 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 21 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information includes the following (in thousands): Year Ended December 28, December 29, December 30, Cash paid during the year for: Interest expense $ 211 $ 193 $ 551 Income taxes 42,270 36,589 91,061 Operating lease liabilities 6,676 — — Non-cash operating activities: ROU assets obtained in exchange for lease liabilities (1) $ 26,484 $ — $ — Non-cash investing activities: Unpaid purchases of property, plant and equipment $ 6,686 $ 2,391 $ 1,559 Non-cash financing activities: Unsettled common stock proceeds from option exercises $ 14 $ 4 $ 161 Unsettled common stock repurchases — — 1,988 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 567,687 $ 552,490 $ 315,302 Restricted cash 388 151 181 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 568,075 $ 552,641 $ 315,483 ______________ (1) In connection with its adoption of ASC 842 on December 30, 2018, the Company recorded a lessee operating lease ROU asset of $22.5 million . See “Recently Adopted Accounting Pronouncements” in Note 2 to these consolidated financial statements for additional information related to the Company’s adoption of ASC 842. |
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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In July 2019, the FASB issued Accounting Standards Update (ASU) No. 2019-07, Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates (ASU 2019-07). The new standard aligns the guidance in various sections of the codification with the requirements of certain already effective SEC final rules. ASU 2019-07 is effective immediately and was adopted upon issuance. The Company’s adoption of this standard did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). The new standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The Company early adopted this standard during the three months ended September 28, 2019, and such adoption did not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The new standard adds and modifies certain disclosure requirements for fair value measurements including when entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will need to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. The Company early adopted this standard during the three months ended September 28, 2019, and such adoption did not have a material impact on its consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements (ASU 2018-09). This new standard amends, clarifies, corrects errors in and makes minor improvements to the ASC. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments of ASU 2018-09 do not require transition guidance and are effective upon issuance. The Company completed its adoption of all applicable items contained in ASU 2018-09 as of September 28, 2019, and such adoption did not have a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02) . The new standard allows a reclassification for certain stranded tax effects from accumulated other comprehensive income to retained earnings, and requires certain disclosures about stranded tax effects. ASU 2018-02 is effective for annual and interim periods beginning after December 15, 2018. The Company adopted this standard during the three months ended March 30, 2019, and such adoption did not have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02) . Subsequent to the issuance of ASU 2016-02, the FASB clarified the guidance through several ASUs. The collective guidance was codified by the FASB in ASC 842, which, among other things (i) requires the Company to recognize an ROU asset and a lease liability for all operating leases for which the Company is the lessee; (ii) changes the classification of certain embedded leases within the Company’s deferred equipment agreements with its customers from operating to sales-type leases, resulting in the acceleration of revenue under certain contracts, as well as the immediate expensing of certain costs that were previously deferred and expensed over the term of the lease; and (iii) requires disclosures by the Company as a lessor and lessee about the amount, timing and uncertainty of cash flows arising from its leases. On December 30, 2018, the Company adopted ASC 842 using the modified retrospective method for all lease arrangements at the beginning of the period of adoption. Results for reporting periods beginning December 30, 2018 are presented under ASC 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC 840, Leases . Adoption of this new accounting standard had a material impact on the Company’s consolidated balance sheet upon adoption, but did not have a significant impact on the Company’s consolidated net earnings and cash flows for the year ended December 28, 2019. For leases that commenced before the effective date of ASC 842, the Company did not elect any of the permitted practical expedients. However, the Company utilized a portfolio approach for purposes of determining the discount rate associated with certain equipment leases and made certain accounting policy elections not to separate lease and non-lease components for its real estate leases and to exclude short-term leases with a term of twelve months or less from its application of ASC 842. In connection with its adoption of ASC 842, the Company recorded lessee operating lease ROU assets and lessee operating lease liabilities of $22.5 million as of December 30, 2018, primarily related to real estate and equipment leases, based on the present value of the future lease payments on such date. As a lessor, the Company also recorded customer lease receivables of $62.0 million , a reduction to equipment leased to customers (formerly titled deferred cost of goods sold) of $103.5 million , an increase to deferred tax assets of $8.6 million , a decrease to deferred revenue and contract-related liabilities of $9.1 million , an increase in other current liabilities of $3.0 million and a cumulative net decrease to retained earnings of $26.8 million , all related to the reclassification of certain embedded leases in existing deferred equipment agreements from operating to sales-type leases as of December 30, 2018. See Notes 6 , 7 and 9 to these consolidated financial statements for additional disclosures required by ASC 842. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). The new standard simplifies the accounting for income taxes by removing exceptions to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary, and to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, the standard requires that an entity recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax, evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction, reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date, and specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements, however, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. ASU 2019-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2020. Early adoption is permitted, including adoption in an interim period. 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). Subsequent to the issuance of ASU 2016-13, the FASB clarified the guidance through several ASUs. The collective new guidance (ASC 326) generally 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. ASC 326 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 continuing to evaluate the expected impact of ASC 326 but does not expect it to have a material impact on its consolidated financial statements upon adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring | The following tables represent the Company’s financial assets (in thousands), measured at fair value on a recurring basis as of December 28, 2019 : Reported as Adjusted Basis Gross Unrealized Gross Unrealized Estimated Cash and Cash Equivalents Short-Term Cash $ 567,687 $ — $ — $ 567,687 $ 567,687 $ — Level 1: Certificates of deposit 120,000 — — 120,000 — 120,000 Subtotal 120,000 — — 120,000 — 120,000 Level 2: None — — — — — — Level 3: None — — — — — — Total assets measured at fair value $ 687,687 $ — $ — $ 687,687 $ 567,687 $ 120,000 |
Property, Plant and Equipment | Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Aircraft and components 4 to 20 years Buildings 39 years Building improvements 7 to 15 years Computer equipment 2 to 6 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 10 years Tooling 3 years Vehicles 5 years Property and equipment, net consists of the following (in thousands): December 28, December 29, Building and building improvements $ 101,731 $ 88,449 Machinery and equipment 58,864 54,525 Land 40,216 23,762 Aircraft and vehicles 29,934 25,555 Computer equipment 19,650 16,582 Leasehold improvements 15,921 16,428 Tooling 15,346 14,212 Furniture and office equipment 11,049 10,459 Demonstration units 836 470 Construction-in-progress (CIP) 39,107 13,320 Total property and equipment 332,654 263,762 Accumulated depreciation (113,102 ) (97,790 ) Property and equipment, net $ 219,552 $ 165,972 |
Changes in Product Warranty Accrual | Changes in the product warranty accrual were as follows (in thousands): Year Ended December 28, December 29, December 30, Warranty accrual, beginning of period $ 1,910 $ 1,149 $ 910 Accrual for warranties issued 1,715 1,549 1,061 Changes in pre-existing warranties (including changes in estimates) (1) 1,130 551 332 Settlements made (1,360 ) (1,339 ) (1,154 ) Warranty accrual, end of period $ 3,395 $ 1,910 $ 1,149 |
Reconciliation of Basic Diluted Net Income Per Share | The computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended December 28, December 29, December 30, Net income $ 196,216 $ 193,543 $ 124,789 Basic net income per share: Weighted-average shares outstanding - basic 53,434 52,296 51,516 Net income per basic share $ 3.67 $ 3.70 $ 2.42 Diluted net income per share: Weighted-average shares outstanding - basic 53,434 52,296 51,516 Diluted share equivalents: stock options and RSUs 3,666 3,743 4,358 Weighted-average shares outstanding - diluted 57,100 56,039 55,874 Net income per diluted share $ 3.44 $ 3.45 $ 2.23 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories consist of the following (in thousands): December 28, December 29, Raw materials $ 55,920 $ 38,955 Work-in-process 10,966 9,036 Finished goods 48,985 46,741 Total $ 115,871 $ 94,732 |
Other Current Assets Other Cu_2
Other Current Assets Other Current Assets - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other current assets consist of the following (in thousands): December 28, December 29, Lease receivable, current $ 20,250 $ — Prepaid expenses 11,746 10,582 Indirect taxes receivable 9,311 6,516 Prepaid income taxes 7,330 3,071 Customer notes receivable 4,847 3,780 Other 6,587 8,477 Total other current assets $ 60,071 $ 32,426 Other assets, long-term consist of the following (in thousands): December 28, December 29, Lessee ROU assets $ 19,137 $ — Strategic investments 6,475 1,200 Prepaid deposits 3,022 2,881 Other 157 151 Total other assets, long-term $ 28,791 $ 4,232 |
Lease Receivable Lease Receiv_2
Lease Receivable Lease Receivable (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Sales-Type Lease Receivable | Lease receivable consists of the following (in thousands): December 28, Lease receivable $ 70,589 Allowance for credit loss (403 ) Lease receivable, net 70,186 Less: Current portion of lease receivable (20,250 ) Lease receivable, noncurrent $ 49,936 |
Sales-Type Lease, Lease Receivable, Maturity | As of December 28, 2019 , estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands): Fiscal year Amount 2020 $ 20,653 2021 16,541 2022 13,500 2023 9,380 2024 5,869 Thereafter 4,646 Total $ 70,589 |
Deferred Costs and Other Cont_2
Deferred Costs and Other Contract Assets Deferred Costs and Other Contract Assets - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Costs and Other Contract Assets | Deferred costs and other contract assets consist of the following (in thousands): December 28, December 29, Prepaid contract allowances $ 8,098 $ 7,036 Deferred commissions 5,260 5,085 Unbilled contract receivables 2,482 2,368 Equipment leased to customers, net (1) 374 108,417 Deferred costs and other contract assets $ 16,214 $ 122,906 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Aircraft and components 4 to 20 years Buildings 39 years Building improvements 7 to 15 years Computer equipment 2 to 6 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery and equipment 5 to 10 years Tooling 3 years Vehicles 5 years Property and equipment, net consists of the following (in thousands): December 28, December 29, Building and building improvements $ 101,731 $ 88,449 Machinery and equipment 58,864 54,525 Land 40,216 23,762 Aircraft and vehicles 29,934 25,555 Computer equipment 19,650 16,582 Leasehold improvements 15,921 16,428 Tooling 15,346 14,212 Furniture and office equipment 11,049 10,459 Demonstration units 836 470 Construction-in-progress (CIP) 39,107 13,320 Total property and equipment 332,654 263,762 Accumulated depreciation (113,102 ) (97,790 ) Property and equipment, net $ 219,552 $ 165,972 |
Lessee ROU Assets and Lease L_2
Lessee ROU Assets and Lease Liabilities Lessee ROU Assets and Lease Liabilities (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lessee Operating Lease Balance Sheet Classification | For the period ended December 28, 2019 , the balance sheet classifications for amounts related to the Company’s operating leases for which it is the lessee were as follows: Balance sheet classification Amount Lessee ROU assets Other non-current assets $ 19,137 Lessee current lease liabilities Other current liabilities 4,653 Lessee non-current lease liabilities Other non-current liabilities 15,834 Total operating lease liabilities $ 20,487 |
Lessee, Operating Lease, Liability, Maturity | As of December 28, 2019 , estimated future operating lease payments for each of the following fiscal years were as follows (in thousands): Fiscal year Amount 2020 $ 5,280 2021 3,371 2022 2,165 2023 1,875 2024 1,756 Thereafter (1) 9,399 Total 23,846 Imputed interest (3,359 ) Present value $ 20,487 ______________ (1) Includes optional renewal period for certain leases. |
Contractual Obligation, Fiscal Year Maturity | As of December 29, 2018 , the estimated future minimum lease payments, including interest, under operating leases for each of the following fiscal years ending on or about December 31 were as follows (in thousands): Fiscal year Amount 2019 $ 6,926 2020 4,422 2021 2,384 2022 1,701 2023 1,568 Thereafter (1) 9,921 Total $ 26,922 ______________ (1) Includes optional renewal period for certain leases. |
Lease, Cost | Lease costs for the year ended December 28, 2019 were as follows (in thousands): Amount Operating lease costs $ 6,790 Short-term lease costs 12 Sublease income (232 ) Total lease cost $ 6,570 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets, net consist of the following (in thousands): December 28, December 29, Cost Patents $ 23,242 $ 21,323 Customer relationships 7,669 7,669 Licenses-related party 7,500 7,500 Acquired technology 5,580 5,580 Trademarks 4,614 4,190 Capitalized software development costs 3,328 3,430 Other 5,466 5,466 Total cost $ 57,399 $ 55,158 Accumulated amortization Patents $ (9,251 ) $ (8,868 ) Licenses-related party (5,984 ) (5,252 ) Customer relationships (5,688 ) (4,921 ) Acquired technology (4,182 ) (3,624 ) Trademarks (2,195 ) (1,889 ) Capitalized software development costs (2,137 ) (1,983 ) Other (711 ) (697 ) Total accumulated amortization (30,148 ) (27,234 ) Net carrying amount $ 27,251 $ 27,924 |
Estimated Amortization Expense | Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2020 $ 4,172 2021 3,926 2022 3,199 2023 2,097 2024 1,768 Thereafter 12,089 Total $ 27,251 |
Goodwill - (Tables)
Goodwill - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill were as follows (in thousands): December 28, December 29, Goodwill, beginning of period $ 23,297 $ 20,617 Adjustments to goodwill from finalization of purchase price allocation (651 ) 3,402 Foreign currency translation adjustment (296 ) (722 ) Goodwill, end of period $ 22,350 $ 23,297 |
Other Non-Current Assets Othe_2
Other Non-Current Assets Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Assets | Other current assets consist of the following (in thousands): December 28, December 29, Lease receivable, current $ 20,250 $ — Prepaid expenses 11,746 10,582 Indirect taxes receivable 9,311 6,516 Prepaid income taxes 7,330 3,071 Customer notes receivable 4,847 3,780 Other 6,587 8,477 Total other current assets $ 60,071 $ 32,426 Other assets, long-term consist of the following (in thousands): December 28, December 29, Lessee ROU assets $ 19,137 $ — Strategic investments 6,475 1,200 Prepaid deposits 3,022 2,881 Other 157 151 Total other assets, long-term $ 28,791 $ 4,232 |
Deferred Revenue and Other Co_2
Deferred Revenue and Other Contract Liabilities Deferred Revenue and Other Contract Liabilities - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure | Deferred revenue and other contract liabilities consist of the following (in thousands): December 28, December 29, Deferred revenue (1) $ 13,998 $ 10,328 Accrued rebates and allowances 8,436 7,269 Accrued customer reimbursements (2) 5,739 16,194 Total deferred revenue and other contract liabilities 28,173 33,791 Less: Non-current portion of deferred revenue (2,234 ) (1,737 ) Deferred revenue and other contract liabilities - current $ 25,939 $ 32,054 |
Schedule of Deferred Revenue | Changes in deferred revenue for the year ended December 28, 2019 were as follows: Amount Deferred revenue, beginning of the period $ 10,328 Revenue deferred during the period 11,261 Recognition of revenue deferred in prior periods (7,591 ) Deferred revenue, end of the period $ 13,998 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table summarizes the Company’s estimated Unrecognized Contract Revenue as of December 28, 2019 and the future periods within which the Company expects to recognize such revenue. Expected Future Revenue By Period (in thousands) Less than 1 Year Between 1-3 Years Between 3-5 Years More than 5 Years Total Unrecognized contract revenue $ 201,874 $ 319,513 $ 150,928 $ 39,515 $ 711,830 |
Other Current Liabilities Other
Other Current Liabilities Other Current Liabilities - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Other current liabilities consist of the following (in thousands): December 28, December 29, Accrued indirect taxes payable $ 7,545 $ 6,465 Income tax payable 7,142 3,071 Accrued expenses 6,115 5,038 Lessee lease liabilities, current 4,653 — Accrued warranty 3,395 1,910 Related party payables 3,024 4,000 Accrued legal fees 1,839 1,481 Accrued property taxes 1,629 791 Other 1,685 1,871 Total other current liabilities $ 37,027 $ 24,627 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): December 28, December 29, Income tax payable, noncurrent $ 21,509 $ 21,522 Lessee lease liabilities, noncurrent 15,834 — Unrecognized tax benefits 13,184 11,717 Deferred tax liabilities 3,052 2,956 Other 2,456 3,003 Total other non-current liabilities $ 56,035 $ 39,198 |
Stock Repurchase Program Stock
Stock Repurchase Program Stock Repurchase Program - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 , December 29, 2018 and December 30, 2017 (in thousands, except per share amounts): Years Ended December 28, December 29, December 30, Shares repurchased 275 (1) 196 (1) 804 Average cost per share $ 136.61 $ 84.12 $ 84.90 Value of shares repurchased $ 37,554 $ 16,490 $ 68,260 ______________ (1) Excludes shares withheld from the shares of its common stock actually issued in connection the vesting of PSU awards to satisfy certain U.S. federal and state tax withholding obligations. |
Stock-Based Compensation - (Tab
Stock-Based Compensation - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans | The number and weighted-average exercise price of options issued and outstanding under all of the Company’s equity plans are as follows (in thousands, except for exercise prices): Year Ended Year Ended Year Ended Shares Average Shares Average Exercise Price Shares Average Options outstanding, beginning of period 5,676 $ 43.61 6,953 $ 36.26 8,521 $ 28.56 Granted 545 140.56 564 98.47 928 86.69 Canceled/Forfeited (158 ) 83.14 (233 ) 67.45 (250 ) 38.59 Exercised (851 ) 33.32 (1,608 ) 27.62 (2,246 ) 27.63 Options outstanding, end of period 5,212 $ 54.23 5,676 $ 43.61 6,953 $ 36.26 Options exercisable, end of period 3,311 $ 33.80 3,273 $ 29.63 3,812 $ 26.28 |
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 $15.00 to $35.00 2,287 3.35 2,240 2,956 4.24 2,560 $35.01 to $55.00 1,189 5.95 724 1,341 6.97 548 $55.01 to $75.00 53 6.69 23 72 7.75 20 $75.01 to $95.00 985 7.76 291 1,076 8.75 141 $95.01 to $115.00 144 8.61 26 160 9.54 4 $115.01 to $135.00 251 9.12 7 71 9.73 — $135.01 to $160.00 303 9.63 — — 0.00 — Total 5,212 5.60 3,311 5,676 6.01 3,273 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The number of RSUs issued and outstanding under all of the Company’s equity plans are as follows (in thousands, except for weighted average grant date fair value amounts): Year Ended Year Ended Year Ended Units Weighted Average Units Weighted Average Units Weighted Average RSUs outstanding, beginning of period 2,707 $ 95.54 2,708 $ 95.51 2,706 $ 95.40 Granted 100 133.57 7 99.05 33 86.42 Canceled/Forfeited (3 ) 133.50 — — (25 ) 85.79 Vested (7 ) 99.05 (8 ) 88.40 (6 ) 43.09 RSUs outstanding, end of period 2,797 $ 96.85 2,707 $ 95.54 2,708 $ 95.51 |
Schedule of Nonvested Performance-based Units Activity | The number of PSUs outstanding under all of the Company’s equity plans are as follows (in thousands, except for weighted average grant date fair value amounts): Year Ended Year Ended Year Ended Units Weighted Average Units Weighted Average Units Weighted Average PSUs outstanding, beginning of period 313 $ 88.34 233 $ 90.70 — $ — Granted 128 133.50 197 86.95 248 90.71 Canceled/Forfeited — — (86 ) 90.71 (15 ) 90.87 Vested (29 ) 90.69 (31 ) 90.70 — — PSUs outstanding, end of period 412 $ 102.22 313 $ 88.34 233 $ 90.70 |
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 1.4% to 2.6% 2.3% to 3.1% 1.7% to 2.2% Expected term 5.1 years to 5.2 years 5.2 years to 5.6 years 5.5 years to 5.6 years Estimated volatility 28.2% to 30.0% 26.8% to 32.0% 29.7% to 32.1% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $42.29 per share $31.85 per share $27.81 per share |
Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income | The following table presents the total stock-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 $ 445 $ 334 $ 351 Selling, general and administrative 30,450 21,391 13,272 Research and development 8,340 5,692 3,564 Total $ 39,235 $ 27,417 $ 17,187 |
Non-operating Income Non-oper_2
Non-operating Income Non-operating Income - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Non-operating Income (Expense) | Year Ended Year Ended Year Ended Interest income $ 13,917 $ 8,178 $ 2,974 Realized and unrealized foreign currency loss (627 ) (2,027 ) (270 ) Interest expense (328 ) (706 ) (678 ) Other (12 ) 287 (13 ) Total $ 12,950 $ 5,732 $ 2,013 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 $ 181,664 $ 173,848 $ 159,245 Foreign 52,502 39,928 26,555 Total $ 234,166 $ 213,776 $ 185,800 |
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 $ 30,218 $ 20,418 $ 38,777 State 5,273 3,075 1,940 Foreign 8,424 5,014 3,018 Subtotal $ 43,915 $ 28,507 $ 43,735 Deferred: Federal $ (3,732 ) $ (6,678 ) $ 20,735 State (1,985 ) (1,258 ) (3,420 ) Foreign (248 ) (338 ) (39 ) Subtotal (5,965 ) (8,274 ) 17,276 Total $ 37,950 $ 20,233 $ 61,011 |
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 21.0 % 21.0 % 35.0 % State provision, net of federal benefit 1.1 0.7 (0.6 ) Nondeductible executive compensation 2.1 1.9 1.3 Research and development tax credits (1.1 ) (1.4 ) (2.2 ) Foreign income taxed at different rates (1.7 ) (2.0 ) (3.4 ) U.S. tax on foreign income, net 0.1 0.7 — Impact of 2017 Tax Act — 0.1 18.8 Withholding taxes on undistributed foreign earnings, net — (0.6 ) 3.5 Excess stock-based compensation (6.0 ) (9.4 ) (20.3 ) Derecognition of uncertain tax position — (1.5 ) — Other 0.7 — 0.7 Total 16.2 % 9.5 % 32.8 % |
Components of Deferred Tax Assets | The components of the deferred tax assets are as follows (in thousands): December 28, December 29, Deferred tax assets: Tax credits $ 6,438 $ 5,672 Deferred revenue 13,948 331 Accrued liabilities 13,273 12,645 Stock-based compensation 7,926 6,615 Operating lease assets 4,174 — Other 1,591 — Total 47,350 25,263 Valuation allowance — — Total deferred tax assets $ 47,350 $ 25,263 Deferred tax liabilities: Property and equipment $ (6,604 ) $ (2,504 ) State taxes and other (1,152 ) (857 ) Withholding taxes on undistributed foreign earnings (2,829 ) (2,803 ) Operating lease liabilities (3,845 ) — Other — (845 ) Total deferred tax liabilities (14,430 ) (7,009 ) Net deferred tax assets $ 32,920 $ 18,254 |
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 $ 15,412 $ 16,157 Increase from tax positions in prior period 81 701 Increase from tax positions in current period 2,636 2,633 Settlements — (33 ) Lapse of statute of limitations (1,120 ) (4,046 ) Unrecognized tax benefits (gross), end of period $ 17,009 $ 15,412 |
Segment Information and Enter_2
Segment Information and Enterprise Reporting Segment Information and Enterprise Reporting - (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The following schedule presents an analysis of the Company’s product revenues based upon the geographic area to which the product was shipped (in thousands, except percentages): Year Ended Year Ended Year Ended Geographic area by destination: United States (U.S.) $ 636,371 68.0 % $ 566,816 68.3 % $ 502,983 68.1 % Europe, Middle East and Africa 183,363 19.6 160,910 19.4 138,689 18.8 Asia and Australia 87,961 9.4 75,534 9.1 72,434 9.8 North and South America (excluding U.S.) 28,713 3.0 26,614 3.2 24,136 3.3 Total product revenue $ 936,408 100.0 % $ 829,874 100.0 % $ 738,242 100.0 % |
Long-lived Assets by Geographic Areas | Year Ended Year Ended Year Ended Long-lived assets by geographic area: United States $ 216,650 98.5 % $ 262,373 95.6 % $ 247,555 96.2 % International 3,276 1.5 12,016 4.4 9,802 3.8 Total $ 219,926 100.0 % $ 274,389 100.0 % $ 257,357 100.0 % |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2019 and 2018 (in thousands, except per share data): Quarters Ended Fiscal 2019 March 30, June 29, September 28, December 28, Total revenue $ 231,664 $ 229,652 $ 229,011 $ 247,510 Gross profit 151,642 154,339 156,268 166,923 Operating income 56,023 52,004 51,632 61,557 Net income 49,322 44,888 49,085 52,921 Net income per share Basic (1) $ 0.93 $ 0.84 $ 0.92 $ 0.99 Diluted (1) $ 0.87 $ 0.79 $ 0.86 $ 0.92 Quarters Ended Fiscal 2018 March 31, June 30, September 29, December 29, Total revenue $ 212,953 $ 211,621 $ 210,583 $ 223,132 Gross profit 143,661 142,147 140,753 148,331 Operating income 53,885 51,612 48,641 53,906 Net income 45,630 43,853 57,126 46,934 Net income per share Basic (1) $ 0.88 $ 0.84 $ 1.09 $ 0.88 Diluted (1) $ 0.82 $ 0.79 $ 1.02 $ 0.83 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 567,687 | $ 552,490 | $ 315,302 |
Short-term investments | 120,000 | $ 0 | |
Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 687,687 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities | 687,687 | ||
Cash and cash equivalents | 567,687 | ||
Short-term investments | 120,000 | ||
Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 120,000 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities | 120,000 | ||
Cash and cash equivalents | 0 | ||
Short-term investments | 120,000 | ||
Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities | 0 | ||
Cash and cash equivalents | 0 | ||
Short-term investments | 0 | ||
Recurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities | 0 | ||
Cash and cash equivalents | 0 | ||
Short-term investments | 0 | ||
Cash and Cash Equivalents | Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities | 567,687 | ||
Cash and cash equivalents | 567,687 | ||
Short-term investments | 0 | ||
Certificates of Deposit | Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 120,000 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | ||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | ||
Available-for-sale Securities | 120,000 | ||
Cash and cash equivalents | 0 | ||
Short-term investments | $ 120,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Useful Life (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 39 years |
Demonstration units | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Tooling | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 30, 2019USD ($) | Dec. 28, 2019USD ($)segmentshares | Dec. 29, 2018USD ($)shares | Dec. 30, 2017USD ($)shares | Dec. 30, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Short-term investments | $ 120,000 | $ 0 | |||
Number of Sources of Product Revenue | segment | 4 | ||||
Royalty Revenue, Number of Days Royalty Revenue is Adjusted Subsequent to Quarter End | 60 days | ||||
Royalty | $ 700 | 26,400 | $ 32,800 | ||
Advertising costs | $ 14,000 | $ 17,900 | $ 17,800 | ||
Options to purchase of shares of common stock | shares | 0.4 | 1.1 | 0.4 | ||
Number of reportable segments | segment | 1 | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 22,500 | ||||
Cumulative Effect on Retained Earnings, Net of Tax, Lease Receivable | 62,000 | ||||
Cumulative Effect on Retained Earnings, Net of Tax, Leased Equipment | 103,500 | ||||
Cumulative Effect on Retained Earnings, Net of Tax, Deferred Tax Assets | 8,600 | ||||
Cumulative Effect on Retained Earnings, Net of Tax, Deferred Tax Deferred Revenue and Contract-Related Liabilities | 9,100 | ||||
Cumulative Effect on Retained Earnings, Net of Tax, Other Current Liabilities | $ 3,000 | ||||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Maturity of Time Deposits | 2 months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 years | ||||
Warranty period for defects in material and workmanship | 6 months | ||||
Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Maturity of Time Deposits | 10 months | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years | ||||
Warranty period for defects in material and workmanship | 48 months | ||||
Restricted Stock Units (RSUs) | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Weighted Average Number of Shares, Contingently Issuable | shares | 2.7 | 2.7 | 2.7 | ||
Aircraft and components | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 4 years | ||||
Aircraft and components | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 20 years | ||||
Building | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 39 years | ||||
Buildings improvements | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 7 years | ||||
Buildings improvements | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 15 years | ||||
Computer equipment | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 2 years | ||||
Computer equipment | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 6 years | ||||
Demonstration units | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 3 years | ||||
Furniture and Office Equipment | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 2 years | ||||
Furniture and Office Equipment | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 6 years | ||||
Machinery and equipment | Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Machinery and equipment | Maximum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 10 years | ||||
Tooling | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 3 years | ||||
Vehicles | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, useful life | 5 years | ||||
Retained Earnings | Accounting Standards Update 2016-02 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative Effect on Retained Earnings, Tax | $ 26,800 | ||||
Patents | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated life maximum | 10 years | ||||
Trademarks | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated life maximum | 17 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty accrual, beginning of period | $ 1,910 | $ 1,149 | $ 910 |
Accrual for warranties issued | 1,715 | 1,549 | 1,061 |
Changes in pre-existing warranties (including changes in estimates)(1) | (1,130) | (551) | (332) |
Settlements made | (1,360) | (1,339) | (1,154) |
Warranty accrual, end of period | $ 3,395 | $ 1,910 | $ 1,149 |
Summary of Significant Accoun_8
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. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net income attributable to stockholders of Masimo Corporation: | |||||||||||
Net income | $ 196,216 | $ 193,543 | $ 124,789 | ||||||||
Basic net income per share: | |||||||||||
Weighted-average shares outstanding - basic | 53,434 | 52,296 | 51,516 | ||||||||
Net income per basic share | $ 0.99 | $ 0.92 | $ 0.84 | $ 0.93 | $ 0.88 | $ 1.09 | $ 0.84 | $ 0.88 | $ 3.67 | $ 3.70 | $ 2.42 |
Diluted net income per share: | |||||||||||
Weighted-average shares outstanding - basic | 53,434 | 52,296 | 51,516 | ||||||||
Diluted share equivalents: stock options and RSUs | 3,666 | 3,743 | 4,358 | ||||||||
Weighted-average shares outstanding - diluted | 57,100 | 56,039 | 55,874 | ||||||||
Net income per diluted share | $ 0.92 | $ 0.86 | $ 0.79 | $ 0.87 | $ 0.83 | $ 1.02 | $ 0.79 | $ 0.82 | $ 3.44 | $ 3.45 | $ 2.23 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies-Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash paid during the year for: | ||||
Interest (net of amounts capitalized) | $ 211 | $ 193 | $ 551 | |
Income taxes | 42,270 | 36,589 | 91,061 | |
Operating lease liabilities | 6,676 | 0 | 0 | |
Non-cash investing activities: | ||||
ROU assets obtained in exchange for lease liabilities(1) | 26,484 | 0 | 0 | |
Unpaid purchases of property, plant and equipment | 6,686 | 2,391 | 1,559 | |
Unsettled common stock proceeds from option exercises | 14 | 4 | 161 | |
Unsettled common stock repurchases | 0 | 0 | 1,988 | |
Cash and cash equivalents | 567,687 | 552,490 | 315,302 | |
Restricted cash | 388 | 151 | 181 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 568,075 | $ 552,641 | $ 315,483 | $ 308,198 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2015USD ($) | Dec. 28, 2019USD ($)ft²death | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Related Party Transaction [Line Items] | ||||
Patent and Licensing Fee - Aggregate | $ 2,400,000 | |||
Estimate of annual preventable hospital deaths prevented by 2020 (more than) | death | 200,000 | |||
Not for Profit Organization | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Date | Dec. 31, 2024 | |||
Related Party Transaction, Amounts of Transaction | $ 1,000,000 | $ 2,000,000 | $ 0 | |
Variable Interest Entity, Primary Beneficiary | ||||
Related Party Transaction [Line Items] | ||||
Minimum aggregate royalty payments | 12,100,000 | 10,900,000 | 8,000,000 | |
Payment for Administrative Fees | 200,000 | 200,000 | 200,000 | |
Variable Interest Entity, Primary Beneficiary | Not for Profit Organization | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | 35,262 | 207,530 | 1,300 | |
Minimum | Variable Interest Entity, Primary Beneficiary | ||||
Related Party Transaction [Line Items] | ||||
Minimum aggregate royalty payments | $ 5,000,000 | |||
Leased Property | ||||
Related Party Transaction [Line Items] | ||||
Property Plant and Equipment, Occupied Square Feet | ft² | 34,000 | |||
Subleased Property | ||||
Related Party Transaction [Line Items] | ||||
Property Plant and Equipment, Occupied Square Feet | ft² | 16,830 | |||
Cercacor Laboratories | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 100,000 | 100,000 | 100,000 | |
Operating Leases, Income Statement, Lease and Sublease Revenue | 400,000 | 400,000 | 400,000 | |
Related Party Transaction, Due from (to) Related Party | 2,900,000 | 2,900,000 | ||
Reimbursement Fee | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 100,000 | $ 200,000 | $ 100,000 |
Inventories - Components of Inv
Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 55,920 | $ 38,955 |
Work-in-process | 10,966 | 9,036 |
Finished goods | 48,985 | 46,741 |
Total | $ 115,871 | $ 94,732 |
Other Current Assets Other Cu_3
Other Current Assets Other Current Assets - (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Less: Current portion of lease receivable | $ 20,250 | $ 0 |
Prepaid expenses | 11,746 | 10,582 |
Indirect taxes receivable | 9,311 | 6,516 |
Prepaid income taxes | 7,330 | 3,071 |
Customer notes receivable | 4,847 | 3,780 |
Other | 6,587 | 8,477 |
Total other current assets | $ 60,071 | $ 32,426 |
Lease Receivable Lease Receiv_3
Lease Receivable Lease Receivable (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Variable Lease Income | $ 44 |
Lease Receivable Sales-Type Lea
Lease Receivable Sales-Type Lease Receivable (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Lease receivable | $ 70,589 | |
Allowance for credit loss | 403 | |
Lease receivable, net | 70,186 | |
Less: Current portion of lease receivable | 20,250 | $ 0 |
Lease receivable, noncurrent | $ 49,936 | $ 0 |
Lease Receivable Sales-Type L_2
Lease Receivable Sales-Type Lease, Lease Receivable, Maturity (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 20,653 |
2021 | 16,541 |
2022 | 13,500 |
2023 | 9,380 |
2024 | 5,869 |
Thereafter | 4,646 |
Lease receivable | $ 70,589 |
Deferred Costs and Other Cont_3
Deferred Costs and Other Contract Assets Deferred Costs and Other Contract Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid contract allowances | $ 8,098 | $ 7,036 | |
Deferred commissions | 5,260 | 5,085 | |
Unbilled contract receivables | 2,482 | 2,368 | |
Equipment leased to customers, net(1) | 374 | 108,417 | |
Deferred costs and other contract assets | 16,214 | 122,906 | |
Deferred Cost of Goods Sold, Amortization | 1,000 | 30,000 | $ 27,500 |
Deferred Cost of Goods Sold, Accumulated Amortization | $ 700 | $ 103,100 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 332,654 | $ 263,762 |
Accumulated depreciation | (113,102) | (97,790) |
Property and equipment, net | 219,552 | 165,972 |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 101,731 | 88,449 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 58,864 | 54,525 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 40,216 | 23,762 |
Aircraft and vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 29,934 | 25,555 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 19,650 | 16,582 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 15,921 | 16,428 |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 15,346 | 14,212 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 11,049 | 10,459 |
Demonstration units | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 836 | 470 |
Construction-in-progress (CIP) | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 39,107 | $ 13,320 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019USD ($)Facilities | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Properties Purchased | Facilities | 2 | ||
Property, Plant and Equipment, Additions | $ 35.6 | ||
Depreciation | $ 19.1 | $ 16.3 | $ 15.2 |
Lessee ROU Assets and Lease L_3
Lessee ROU Assets and Lease Liabilities Lessee ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.70% | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years | ||
Rent Expense under ASC 840 | $ 6.9 | $ 6.7 |
Lessee ROU Assets and Lease L_4
Lessee ROU Assets and Lease Liabilities Lessee Operating Lease Balance Sheet Classification (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Lessee ROU assets | $ 19,137 | |
Lessee current lease liabilities | 4,653 | $ 0 |
Lessee non-current lease liabilities | 15,834 | $ 0 |
Total operating lease liabilities | $ 20,487 |
Lessee ROU Assets and Lease L_5
Lessee ROU Assets and Lease Liabilities Future Maturities Operating Lease Payments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 5,280 |
2021 | 3,371 |
2022 | 2,165 |
2023 | 1,875 |
2024 | 1,756 |
Thereafter(1) | 9,399 |
Total | 23,846 |
Imputed interest | (3,359) |
Present value | $ 20,487 |
Lessee ROU Assets and Lease L_6
Lessee ROU Assets and Lease Liabilities Future Minimum Lease Payment (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,926 |
2020 | 4,422 |
2021 | 2,384 |
2022 | 1,701 |
2023 | 1,568 |
Thereafter(1) | 9,921 |
Total | $ 26,922 |
Lessee ROU Assets and Lease L_7
Lessee ROU Assets and Lease Liabilities Lease, Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 6,790 |
Short-term lease costs | 12 |
Sublease income | (232) |
Total lease cost | $ 6,570 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Cost | ||
Total cost | $ 57,399 | $ 55,158 |
Accumulated amortization | ||
Accumulated amortization | (30,148) | (27,234) |
Total | 27,251 | 27,924 |
Patents | ||
Cost | ||
Total cost | 23,242 | 21,323 |
Accumulated amortization | ||
Accumulated amortization | (9,251) | (8,868) |
Customer relationships | ||
Cost | ||
Total cost | 7,669 | 7,669 |
Accumulated amortization | ||
Accumulated amortization | (5,688) | (4,921) |
Licenses-related party | ||
Cost | ||
Total cost | 7,500 | 7,500 |
Accumulated amortization | ||
Accumulated amortization | (5,984) | (5,252) |
Acquired technology | ||
Cost | ||
Total cost | 5,580 | 5,580 |
Accumulated amortization | ||
Accumulated amortization | (4,182) | (3,624) |
Trademarks | ||
Cost | ||
Total cost | 4,614 | 4,190 |
Accumulated amortization | ||
Accumulated amortization | (2,195) | (1,889) |
Capitalized software development costs | ||
Cost | ||
Total cost | 3,328 | 3,430 |
Accumulated amortization | ||
Accumulated amortization | (2,137) | (1,983) |
Other | ||
Cost | ||
Total cost | 5,466 | 5,466 |
Accumulated amortization | ||
Accumulated amortization | $ (711) | $ (697) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 30,148 | $ 27,234 | |
Cost of patents, Gross | 6,100 | 5,300 | |
Cost of trademarks, Gross | 700 | 500 | |
Patents And Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 4,400 | 4,800 | $ 4,900 |
Total renewal costs capitalized | 1,300 | 500 | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 9,251 | 8,868 | |
Weighted average number of years until the next renewal | 2 years | ||
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ 2,195 | $ 1,889 | |
Weighted average number of years until the next renewal | 6 years |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 4,172 | |
2021 | 3,926 | |
2022 | 3,199 | |
2023 | 2,097 | |
2024 | 1,768 | |
Thereafter | 12,089 | |
Total | $ 27,251 | $ 27,924 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill - (Detail) - USD ($) $ in Thousands | Sep. 21, 2018 | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | $ 23,297 | $ 20,617 | |
Adjustments to goodwill from finalization of purchase price allocation | (651) | 3,402 | |
Foreign currency translation adjustment | (296) | (722) | |
Goodwill, end of period | $ 22,350 | $ 23,297 | |
Payments to Acquire Businesses, Gross | $ 4,000 | ||
Goodwill, Acquired During Period | 2,800 | ||
Deferred Tax Adjustment from Purchase Price Allocation | $ 700 |
Other Non-Current Assets Othe_3
Other Non-Current Assets Other Non-Current Assets - (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Other Assets, Noncurrent [Abstract] | ||
Lessee ROU assets | $ 19,137 | $ 0 |
Strategic investments | 6,475 | 1,200 |
Prepaid deposits | 3,022 | 2,881 |
Other | 157 | 151 |
Other non-current assets | $ 28,791 | $ 4,232 |
Deferred Revenue and Other Co_3
Deferred Revenue and Other Contract Liabilities - Deferred Revenue and Other Contract Liabilities - (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred revenue(1) | $ 13,998 | $ 10,328 |
Accrued rebates and allowances | 8,436 | 7,269 |
Accrued customer reimbursements(2) | 5,739 | 16,194 |
Total deferred revenue and other contract liabilities | 28,173 | 33,791 |
Less: Non-current portion of deferred revenue | 2,234 | 1,737 |
Deferred revenue and other contract-related liabilities, current | $ 25,939 | $ 32,054 |
Deferred Revenue and Other Co_4
Deferred Revenue and Other Contract Liabilities - Changes in Deferred Revenue - (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred revenue, beginning of the period | $ 10,328 |
Revenue deferred during the period | 11,261 |
Recognition of revenue deferred in prior periods | $ (7,591) |
Deferred Revenue and Other Co_5
Deferred Revenue and Other Contract Liabilities - Unrecognized Contract Revenue - (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-12-31 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 201,874 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-31 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 319,513 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-31 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 150,928 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-31 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | 39,515 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 711,830 |
Other Current Liabilities Oth_2
Other Current Liabilities Other Current Liabilities - (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued indirect taxes payable | $ 7,545 | $ 6,465 |
Income tax payable | 7,142 | 3,071 |
Accrued expenses | 6,115 | 5,038 |
Lessee lease liabilities, current | 4,653 | 0 |
Accrued warranty | 3,395 | 1,910 |
Related party payables | 3,024 | 4,000 |
Accrued legal fees | 1,839 | 1,481 |
Accrued property taxes | 1,629 | 791 |
Other | 1,685 | 1,871 |
Accrued Liabilities and Other Liabilities | $ 37,027 | $ 24,627 |
Credit Facilities Credit Facili
Credit Facilities Credit Facilities - (Details) - USD ($) | Dec. 17, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 1,700,000 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Sublimit | $ 25,000,000 | |||
Revolving Credit Facility | Federal Funds Effective Swap Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Foreign Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Sublimit | $ 75,000,000 | |||
Minimum | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.15% | |||
Minimum | Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.125% | |||
Minimum | Revolving Credit Facility | Eurocurrency | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
Maximum | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.275% | |||
Maximum | Revolving Credit Facility | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Maximum | Revolving Credit Facility | Eurocurrency | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Current borrowing capacity | $ 150,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 550,000,000 | |||
Long-term Line of Credit, Noncurrent | 0 | $ 0 | ||
Interest Expense, Debt | $ 300,000 | $ 600,000 | $ 700,000 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities - (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Income tax payable, noncurrent | $ 21,509 | $ 21,522 |
Lessee non-current lease liabilities | 15,834 | 0 |
Unrecognized tax benefits | 13,184 | 11,717 |
Deferred tax liabilities | 3,052 | 2,956 |
Other | 2,456 | 3,003 |
Total other non-current liabilities | $ 56,035 | $ 39,198 |
Stock Repurchase Program Stoc_2
Stock Repurchase Program Stock Repurchase Program - (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 36 Months Ended | |||||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jul. 01, 2021 | Sep. 01, 2018 | Sep. 11, 2018 | Sep. 01, 2015 | |
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 4,700 | ||||||
Shares repurchased | 275,000 | 196,000 | 804,000 | ||||
Average cost per share | $ 136.61 | $ 84.12 | $ 84.90 | ||||
Value of shares repurchased | $ 37,554 | $ 16,490 | $ 68,260 | ||||
2015 Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased | 3,100,000 | ||||||
2015 Repurchase Program | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | ||||||
Stock Repurchase Program, Period in Force | 3 years | ||||||
2018 Repurchase Program | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 | ||||||
Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased | 275,000 | 196,000 | 804,000 | ||||
Value of shares repurchased | $ 37,554 | $ 16,490 | $ 68,260 | ||||
Forecast [Member] | 2018 Repurchase Program | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Period in Force | 3 years |
Stock-Based Compensation - (Det
Stock-Based Compensation - (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Common stock reserved for future issuance | 10,800,000 | |||
Weighted average remaining contractual term of options outstanding, years price below the market value | 5 years 7 months 6 days | 6 years | ||
Weighted average remaining contractual term of options exercisable, years | 4 years 3 months 18 days | 4 years 8 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | P3Y | P3Y | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,400,000 | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 39.2 | $ 27.4 | $ 17.2 | |
Total fair market value of all vesting options | 14.2 | 13.7 | 10.5 | |
Aggregated intrinsic value of options outstanding | 548.6 | |||
Aggregated intrinsic value of options exercisable | 416.2 | |||
Aggregated intrinsic value of options exercised | 93.9 | 127.1 | 140.3 | |
Total income tax benefit recognized for share-based compensation expense | 15.7 | 22 | 39.2 | |
Employee Stock Option | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 44.9 | |||
Unrecognized share-based compensation related to unvested options granted, term | 2 years 9 months 18 days | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 14.8 | $ 13.8 | $ 12 | |
Restricted Stock Units (RSUs) | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,797,000 | 2,707,000 | 2,708,000 | 2,706,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Fair Value at Remeasurement | $ 95.54 | $ 95.51 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 96.85 | $ 95.54 | $ 95.51 | $ 95.40 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 100,000 | 7,000 | 33,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 133.57 | $ 99.05 | $ 86.42 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (3,000) | 0 | (25,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 133.50 | $ 0 | $ 85.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercised in Period | (7,000) | (8,000) | (6,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 99.05 | $ 88.40 | $ 43.09 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 2.8 | $ 0.7 | $ 0.5 | |
Unrecognized share-based compensation related to unvested options granted | $ 10.4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 10 months 24 days | |||
Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 412,000 | 313,000 | 233,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 102.22 | $ 88.34 | $ 90.70 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 128,000 | 197,000 | 248,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 133.50 | $ 86.95 | $ 90.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | (86,000) | (15,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | $ 90.71 | $ 90.87 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercised in Period | (29,000) | (31,000) | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 90.69 | $ 90.70 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||
Share-based Compensation Arrangement by Share-based payment Award, Equity Instruments Other than Options, Approved by Board | 165,000 | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 21.6 | $ 12.9 | $ 4.7 | |
Unrecognized share-based compensation related to unvested options granted | $ 37.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 4 months 24 days | |||
Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 128,000 | |||
Maximum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 256,000 | 394,000 | ||
Maximum | 2017 Equity Incentive Plan | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,000,000 | |||
Maximum | 2007 Stock Incentive Plan | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,000,000 | |||
2018 Grant | Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||
2018 Grant | Maximum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2 | |||
2019 Grant | Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | |||
2019 Grant | Maximum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2 |
Stock-Based Compensation - Numb
Stock-Based Compensation - Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, beginning of period | 5,676 | 6,953 | 8,521 |
Granted | 545 | 564 | 928 |
Canceled/Forfeited | (158) | (233) | (250) |
Exercised | (851) | (1,608) | (2,246) |
Options outstanding, end of period | 5,212 | 5,676 | 6,953 |
Options exercisable, end of period | 3,311 | 3,273 | 3,812 |
Shares, Options available for grant, end of period | 2,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Average Exercise Price, Options outstanding, beginning of period | $ 43.61 | $ 36.26 | $ 28.56 |
Average Exercise Price, Granted | 140.56 | 98.47 | 86.69 |
Average Exercise Price, Canceled | 83.14 | 67.45 | 38.59 |
Average Exercise Price, Exercised | 33.32 | 27.62 | 27.63 |
Average Exercise Price, Options outstanding, end of period | 54.23 | 43.61 | 36.26 |
Average Exercise Price, Options exercisable, end of period | $ 33.80 | $ 29.63 | $ 26.28 |
Stock-Based Compensation - Rang
Stock-Based Compensation - Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant (Detail) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | |||
Risk-free interest rate, minimum | 1.40% | 2.30% | 1.70% |
Risk-free interest rate, maximum | 2.60% | 3.10% | 2.20% |
Estimated volatility, minimum | 28.20% | 26.80% | 29.70% |
Estimated volatility, maximum | 30.00% | 32.00% | 32.10% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted | $ 42.29 | $ 31.85 | $ 27.81 |
Minimum | |||
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | |||
Expected term, years | 5 years 1 month 6 days | 5 years 2 months 12 days | 5 years 6 months |
Maximum | |||
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | |||
Expected term, years | 5 years 2 months 12 days | 5 years 7 months 6 days | 5 years 7 months 6 days |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 39,200 | $ 27,400 | $ 17,200 |
Cost of goods sold | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Stock-based compensation | 445 | 334 | 351 |
Selling, general and administrative | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Stock-based compensation | 30,450 | 21,391 | 13,272 |
Research and development | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Stock-based compensation | 8,340 | 5,692 | 3,564 |
Employee Stock Option | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 14,800 | $ 13,800 | $ 12,000 |
Stock-Based Compensation - Nu_2
Stock-Based Compensation - Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Detail) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Number of Options, Options Outstanding | 5,212 | 5,676 | 6,953 | 8,521 |
Average Remaining Contractual Life, Options Outstanding | 5 years 7 months 6 days | 6 years 3 days | ||
Number of Options, Options Exercisable | 3,311 | 3,273 | 3,812 | |
$15.00 to $35.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 15 | |||
Range of Exercise Prices, Upper | $ 35 | |||
Number of Options, Options Outstanding | 2,287 | 2,956 | ||
Average Remaining Contractual Life, Options Outstanding | 3 years 4 months 6 days | 4 years 2 months 26 days | ||
Number of Options, Options Exercisable | 2,240 | 2,560 | ||
$35.01 to $55.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 35.01 | |||
Range of Exercise Prices, Upper | $ 55 | |||
Number of Options, Options Outstanding | 1,189 | 1,341 | ||
Average Remaining Contractual Life, Options Outstanding | 5 years 11 months 12 days | 6 years 11 months 19 days | ||
Number of Options, Options Exercisable | 724 | 548 | ||
$55.01 to $75.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 55.01 | |||
Range of Exercise Prices, Upper | $ 75 | |||
Number of Options, Options Outstanding | 53 | 72 | ||
Average Remaining Contractual Life, Options Outstanding | 6 years 8 months 8 days | 7 years 9 months | ||
Number of Options, Options Exercisable | 23 | 20 | ||
$75.01 to $95.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 75.01 | |||
Range of Exercise Prices, Upper | $ 95 | |||
Number of Options, Options Outstanding | 985 | 1,076 | ||
Average Remaining Contractual Life, Options Outstanding | 7 years 9 months 3 days | 8 years 9 months | ||
Number of Options, Options Exercisable | 291 | 141 | ||
$95.01 to $115.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 95.01 | |||
Range of Exercise Prices, Upper | $ 115 | |||
Number of Options, Options Outstanding | 144 | 160 | ||
Average Remaining Contractual Life, Options Outstanding | 8 years 7 months 9 days | 9 years 6 months 14 days | ||
Number of Options, Options Exercisable | 26 | 4 | ||
$115.01 to $135.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 115.01 | |||
Range of Exercise Prices, Upper | $ 135 | |||
Number of Options, Options Outstanding | 251 | 71 | ||
Average Remaining Contractual Life, Options Outstanding | 9 years 1 month 13 days | 9 years 8 months 23 days | ||
Number of Options, Options Exercisable | 7 | 0 | ||
$135.01 to $160.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 135.01 | |||
Range of Exercise Prices, Upper | $ 160 | |||
Number of Options, Options Outstanding | 303 | 0 | ||
Average Remaining Contractual Life, Options Outstanding | 9 years 7 months 17 days | 0 days | ||
Number of Options, Options Exercisable | 0 | 0 | ||
Exercise Price Range Eight [Member] | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 0 | |||
Range of Exercise Prices, Upper | 0 | |||
Exercise Price Range Nine [Member] [Domain] | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | 0 | |||
Range of Exercise Prices, Upper | $ 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Unvested RSU Award Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs outstanding, beginning of period | 2,707 | 2,708 | 2,706 | |
Granted | 100 | 7 | 33 | |
Granted, Fair Value | $ 133.57 | $ 99.05 | $ 86.42 | |
Expired | 3 | 0 | 25 | |
Expired, Fair Value | $ (133.50) | $ 0 | $ (85.79) | |
Vested | 7 | 8 | 6 | |
Vested, Fair Value | $ 99.05 | $ 88.40 | $ 43.09 | |
RSUs outstanding, end of period | 2,797 | 2,707 | 2,708 | |
RSUs outstanding, end of period, fair value | $ 96.85 | $ 95.54 | $ 95.51 | $ 95.40 |
Non-operating Income Non-oper_3
Non-operating Income Non-operating Income - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Nonoperating Income (Expense) [Abstract] | |||
Interest income | $ 13,917 | $ 8,178 | $ 2,974 |
Realized and unrealized foreign currency loss | (627) | (2,027) | (270) |
Interest expense | (328) | (706) | (678) |
Other | 12 | (287) | 13 |
Non-operating income | $ 12,950 | $ 5,732 | $ 2,013 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 181,664 | $ 173,848 | $ 159,245 |
Foreign | 52,502 | 39,928 | 26,555 |
Income before provision for income taxes | $ 234,166 | $ 213,776 | $ 185,800 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current: | |||
Federal | $ 30,218 | $ 20,418 | $ 38,777 |
State | 5,273 | 3,075 | 1,940 |
Foreign | 8,424 | 5,014 | 3,018 |
Total | 43,915 | 28,507 | 43,735 |
Deferred: | |||
Federal | (3,732) | (6,678) | 20,735 |
State | (1,985) | (1,258) | (3,420) |
Foreign | (248) | (338) | (39) |
Total | (5,965) | (8,274) | 17,276 |
Income Tax Expense (Benefit) | $ 37,950 | $ 20,233 | $ 61,011 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Taxes [Line Items] | |||
Tax and accrued interest related to uncertain tax positions | $ (1.8) | $ 1.6 | $ (1.6) |
Effective tax rate | 16.20% | 9.50% | 32.80% |
Statutory regular federal income tax rate | 21.00% | 21.00% | 35.00% |
Other Tax Expense (Benefit) | $ 37 | ||
Tax Cuts and Jobs Act, Transition Tax, Accumulated Undistributed Foreign Earnings Subject to Transition Tax | 6.5 | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 0.9 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 183.5 | ||
Tax Cuts and Jobs Act, Deferred Tax Liability, Undistributed Foreign Earnings | 86.5 | ||
Tax Cuts and Jobs Act, Deferred Tax Liability, Foreign Withholding Tax | 1.6 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 97 | ||
Tax Cuts and Jobs Act, Unrecognized Deferred Tax Liability, Potential Foreign Withholding Tax | 4.8 | ||
Operating loss carryforwards, gross | 1.2 | ||
Indefinitely carryforward research and development credits | 10.1 | ||
Investment Tax Credit | 0.3 | ||
Foreign Tax Expense (Benefit), Business and Employment Actions | $ 1.7 | $ 1 | |
Earnings Per Share, Diluted, Effect of Foreign Tax Benefit Relating to Business and Employment Actions | $ 0.03 | $ 0.02 | |
Amount of unrecognized benefits affecting future tax rate | 15.7 | $ 14.2 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | (0.5) | (0.8) | $ (0.3) |
Penalties and interest related to unrecognized tax benefits | $ 1.3 | $ 0.8 |
Income Taxes - Deferred Tax Pro
Income Taxes - Deferred Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Total | $ (5,965) | $ (8,274) | $ 17,276 |
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. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory regular federal income tax rate | 21.00% | 21.00% | 35.00% |
State provision, net of federal benefit | 1.10% | 0.70% | (0.60%) |
Nondeductible executive compensation | 2.10% | 1.90% | 1.30% |
Research and development tax credits | 1.10% | 1.40% | 2.20% |
Foreign income taxed at different rates | (1.70%) | (2.00%) | (3.40%) |
U.S. tax on foreign income, net | 0.10% | 0.70% | 0.00% |
Impact of 2017 Tax Act | 0.00% | 0.10% | 18.80% |
Withholding taxes on undistributed foreign earnings, net | 0.00% | (0.60%) | 3.50% |
Excess stock-based compensation | (6.00%) | (9.40%) | (20.30%) |
Derecognition of uncertain tax position | 0.00% | (1.50%) | 0.00% |
Other | (0.70%) | 0.00% | (0.70%) |
Total | 16.20% | 9.50% | 32.80% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Tax credits | $ 6,438 | $ 5,672 |
Deferred revenue | 13,948 | 331 |
Accrued liabilities | 13,273 | 12,645 |
Stock-based compensation | 7,926 | 6,615 |
Operating lease assets | 4,174 | 0 |
Other | 1,591 | 0 |
Total | 47,350 | 25,263 |
Valuation allowance | 0 | 0 |
Total deferred tax assets | 47,350 | 25,263 |
Deferred tax liabilities: | ||
Property and equipment | (6,604) | (2,504) |
State taxes and other | 1,152 | 857 |
Withholding taxes on undistributed foreign earnings | (2,829) | (2,803) |
Operating lease liabilities | 3,845 | 0 |
Other | 0 | (845) |
Total deferred tax liabilities | (14,430) | (7,009) |
Net deferred tax assets | $ 32,920 | $ 18,254 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 500 | $ 800 | $ 300 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits (gross), beginning of period | 15,412 | 16,157 | |
Increase from tax positions in prior period | 81 | 701 | |
Increase from tax positions in current period | 2,636 | 2,633 | |
Settlements | 0 | (33) | |
Lapse of statute of limitations | (1,120) | (4,046) | |
Unrecognized tax benefits (gross), end of period | $ 17,009 | $ 15,412 | $ 16,157 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information - (Detail) | Jul. 27, 2017 | Jan. 03, 2014USD ($) | Dec. 30, 2017USD ($) | Dec. 28, 2019USD ($)distributorAgreement | Dec. 29, 2018USD ($)distributor | Dec. 30, 2017USD ($) |
Contingencies And Commitments [Line Items] | ||||||
Company contribution percentage based on employee contribution of up to 3% of employee's compensation | 3.00% | |||||
Severance plan participation agreements | Agreement | 8 | |||||
Supplemental Unemployment Benefits, Severance Benefits, Required Notice of Resignation | 6 months | |||||
Purchase Commitment, Remaining Minimum Amount Committed | $ 5,000,000 | |||||
License fee, Change in Control | 2,500,000 | |||||
Royalty Guarantees, Commitments, Change in Control | 15,000,000 | |||||
Royalty Guarantees, Commitments, Additional, Change in Control | 2,000,000 | |||||
Remaining amount committed | 108,400,000 | |||||
Commitments and contingencies | ||||||
Long-term Purchase Commitment, Amount | 47,300,000 | |||||
Cash and cash equivalents | 687,700,000 | |||||
Short-term investments | 120,000,000 | 0 | ||||
Cash Equivalents, at Carrying Value | 567,700,000 | |||||
Bank balance covered by Federal Deposit Insurance Corporation limit | $ 3,800,000 | |||||
Royalty Agreement | 1 | |||||
Royalty | $ 700,000 | 26,400,000 | $ 32,800,000 | |||
NRE Service Agreement | 1 | |||||
Other Recurring Income | $ 700,000 | 2,000,000 | 19,200,000 | |||
Litigation settlement, award and/or defense costs | $ 0 | $ 425,000 | $ 0 | |||
Pulse oximetry products | ||||||
Contingencies And Commitments [Line Items] | ||||||
Percentage of Revenue - Customer Concentration | 55.30% | 56.70% | 56.50% | |||
Masimo vs Former Agency Tender | ||||||
Contingencies And Commitments [Line Items] | ||||||
Litigation settlement, award and/or defense costs | $ 10,500,000 | |||||
Proceeds from Legal Settlements | $ 2,000,000 | |||||
Masimo vs. Physicians Healthsource, Inc. | ||||||
Contingencies And Commitments [Line Items] | ||||||
Damages sought per violation | $ 500 | |||||
Unsecured Bank Guarantees | ||||||
Contingencies And Commitments [Line Items] | ||||||
Commitments and contingencies | $ 2,300,000 | |||||
Sales | ||||||
Contingencies And Commitments [Line Items] | ||||||
Number of just-in-time distributors | distributor | 2 | |||||
Accounts Receivable | ||||||
Contingencies And Commitments [Line Items] | ||||||
Number of just-in-time distributors | distributor | 1 | |||||
Just in time distributor one | Revenue Benchmark | ||||||
Contingencies And Commitments [Line Items] | ||||||
Percentage Of Revenue Two Customer | 13.00% | 12.90% | 13.70% | |||
Just in time distributor one | Accounts Receivable | ||||||
Contingencies And Commitments [Line Items] | ||||||
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors | 6.20% | 6.70% | ||||
Just in time distributor two | Revenue Benchmark | ||||||
Contingencies And Commitments [Line Items] | ||||||
Percentage Of Revenue Two Customer | 11.10% | 10.40% | 12.10% | |||
United States (U.S.) | ||||||
Contingencies And Commitments [Line Items] | ||||||
Company's contribution to employee retirement savings plan | $ 2,500,000 | $ 2,300,000 | $ 2,200,000 | |||
Chief Executive Officer | ||||||
Contingencies And Commitments [Line Items] | ||||||
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination | $ 292,900,000 | |||||
Chief Executive Officer | Restricted Stock Units (RSUs) | ||||||
Contingencies And Commitments [Line Items] | ||||||
Employment Agreement, Severance Terms | 50.00% | |||||
Chief Executive Officer | Cash Distribution | ||||||
Contingencies And Commitments [Line Items] | ||||||
Employment Agreement, Severance Terms | 50.00% |
Segment Information and Enter_3
Segment Information and Enterprise Reporting Segment Information and Enterprise Reporting - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 936,408 | $ 829,874 | $ 738,242 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 100.00% | 100.00% | 100.00% |
Long-Lived Assets | $ 219,926 | $ 274,389 | $ 257,357 |
Concentration Risk, Long-lived Asset Geographic Area, Percentage | 100.00% | 100.00% | 100.00% |
United States (U.S.) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 636,371 | $ 566,816 | $ 502,983 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 68.00% | 68.30% | 68.10% |
Europe, Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 183,363 | $ 160,910 | $ 138,689 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 19.60% | 19.40% | 18.80% |
Asia and Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 87,961 | $ 75,534 | $ 72,434 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 9.40% | 9.10% | 9.80% |
North and South America (excluding U.S.) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 28,713 | $ 26,614 | $ 24,136 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 3.00% | 3.20% | 3.30% |
Reportable Geographical Components | United States (U.S.) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 216,650 | $ 262,373 | $ 247,555 |
Concentration Risk, Long-lived Asset Geographic Area, Percentage | 98.50% | 95.60% | 96.20% |
Reportable Geographical Components | International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 3,276 | $ 12,016 | $ 9,802 |
Concentration Risk, Long-lived Asset Geographic Area, Percentage | 1.50% | 4.40% | 3.80% |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) - Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 247,510 | $ 229,011 | $ 229,652 | $ 231,664 | $ 223,132 | $ 210,583 | $ 211,621 | $ 212,953 | $ 937,837 | $ 858,289 | $ 790,248 |
Gross profit | 166,923 | 156,268 | 154,339 | 151,642 | 148,331 | 140,753 | 142,147 | 143,661 | 629,172 | 574,892 | 522,032 |
Operating income | 61,557 | 51,632 | 52,004 | 56,023 | 53,906 | 48,641 | 51,612 | 53,885 | $ 221,216 | $ 208,044 | $ 183,787 |
Net income | $ 52,921 | $ 49,085 | $ 44,888 | $ 49,322 | $ 46,934 | $ 57,126 | $ 43,853 | $ 45,630 | |||
Net income per share attributable to Masimo Corporation stockholders: | |||||||||||
Basic | $ 0.99 | $ 0.92 | $ 0.84 | $ 0.93 | $ 0.88 | $ 1.09 | $ 0.84 | $ 0.88 | $ 3.67 | $ 3.70 | $ 2.42 |
Diluted | $ 0.92 | $ 0.86 | $ 0.79 | $ 0.87 | $ 0.83 | $ 1.02 | $ 0.79 | $ 0.82 | $ 3.44 | $ 3.45 | $ 2.23 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 2,206 | $ 1,535 | $ 2,116 | $ 1,698 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | (1,021) | (486) | (251) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 350 | 95 | 167 | |
Allowance for sales returns and allowances | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | 700 | 432 | 424 | $ 605 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | (1,696) | (1,416) | (1,646) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ 1,428 | $ 1,408 | $ 1,827 |