Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 29, 2022 | Jul. 03, 2021 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --01-01 | ||
Document Period End Date | Jan. 1, 2022 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10.9 | ||
Entity Common Stock, Shares Outstanding | 55,364,690 | ||
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 2022 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 | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000937556 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Newport Beach, California | ||
Auditor Firm ID | 248 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 |
Current assets | ||
Cash and cash equivalents | $ 745,250,000 | $ 641,447,000 |
Accounts Receivable, after Allowance for Credit Loss | 200,765,000 | 141,350,000 |
Inventories | 201,370,000 | 215,952,000 |
Other current assets | 91,027,000 | 102,416,000 |
Total current assets | 1,238,412,000 | 1,101,165,000 |
Lease receivable, noncurrent | 73,688,000 | 57,666,000 |
Deferred costs and other contract assets | 28,093,000 | 20,076,000 |
Property and equipment, net | 272,793,000 | 272,511,000 |
Intangible assets, net | 72,502,000 | 73,923,000 |
Goodwill | 100,334,000 | 103,206,000 |
Deferred tax assets | 52,607,000 | 39,363,000 |
Other non-current assets | 48,581,000 | 44,642,000 |
Total assets | 1,887,010,000 | 1,712,552,000 |
Current liabilities | ||
Accounts payable | 75,627,000 | 64,061,000 |
Accrued compensation | 70,835,000 | 71,601,000 |
Deferred revenue and other contract-related liabilities, current | 50,877,000 | 44,935,000 |
Other current Liabilities | 70,397,000 | 53,239,000 |
Total current liabilities | 267,736,000 | 233,836,000 |
Other non-current liabilities | 69,029,000 | 71,076,000 |
Total liabilities | 336,765,000 | 304,912,000 |
Commitments and contingencies (Note 21) | ||
Masimo Corporation stockholders’ equity: | ||
Preferred Stock, Value, Outstanding | 0 | 0 |
Common Stock, Value, Outstanding | 55,000 | 55,000 |
Treasury Stock, Value | (767,655,000) | (638,736,000) |
Additional paid-in capital | 752,513,000 | 703,693,000 |
Accumulated other comprehensive (loss) income | (5,530,000) | 1,413,000 |
Retained earnings | 1,570,862,000 | 1,341,215,000 |
Total stockholders’ equity | 1,550,245,000 | 1,407,640,000 |
Total liabilities and stockholders’ equity | $ 1,887,010,000 | $ 1,712,552,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,182 | $ 1,603 |
Preferred stock, par value (in USD per share) | $ 1 | $ 1 |
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) | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 55,335,000 | 55,251,000 |
Treasury stock, shares | 16,539,000 | 15,993,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Statement [Abstract] | |||
Product | $ 1,239,153,000 | $ 1,143,744,000 | $ 936,408,000 |
Royalty and other revenue | 0 | 0 | 1,429,000 |
Total revenue | 1,239,153,000 | 1,143,744,000 | 937,837,000 |
Cost of goods sold | 430,806,000 | 400,679,000 | 308,665,000 |
Gross profit | 808,347,000 | 743,065,000 | 629,172,000 |
Selling, general and administrative | 395,291,000 | 369,057,000 | 314,661,000 |
Research and development | 137,234,000 | 118,659,000 | 93,295,000 |
Litigation awards, settlements/or defense costs | 0 | (474,000) | 0 |
Total operating expenses | 532,525,000 | 487,242,000 | 407,956,000 |
Operating income | 275,822,000 | 255,823,000 | 221,216,000 |
Non-operating (loss) income | (1,442,000) | 7,913,000 | 12,950,000 |
Income before provision for income taxes | 274,380,000 | 263,736,000 | 234,166,000 |
Provision for income taxes | 44,733,000 | 23,454,000 | 37,950,000 |
Net income | $ 229,647,000 | $ 240,282,000 | $ 196,216,000 |
Basic | $ 4.16 | $ 4.39 | $ 3.67 |
Diluted | $ 3.98 | $ 4.14 | $ 3.44 |
Basic | 55,166 | 54,700 | 53,434 |
Diluted | 57,682 | 58,037 | 57,100 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Net income | |||
Net income | $ 229,647 | $ 240,282 | $ 196,216 |
Foreign currency translation (losses) gains | (6,943) | 8,131 | (519) |
Total comprehensive income | $ 222,704 | $ 248,413 | $ 195,697 |
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, shares at Dec. 29, 2018 | 53,085 | 15,255 | ||||
Beginning Balance at Dec. 29, 2018 | $ 969,065 | $ 53 | $ (489,026) | $ 533,164 | $ (6,199) | $ 931,073 |
Stock options exercised | 851 | 851 | ||||
Stock options exercised | $ 28,349 | $ 1 | 28,348 | |||
Restricted/Performance stock units vested | 36 | |||||
Shares paid for tax withholding - RSU/PSU | (1) | |||||
Shares paid for tax withholding, amount | (123) | (123) | ||||
Stock-based compensation | 39,235 | |||||
Stock-based compensation | $ 39,235 | |||||
Repurchases of common stock | (275) | (275) | (275) | |||
Repurchases of common stock | $ (37,554) | $ (37,554) | ||||
Net income | 196,216 | 196,216 | ||||
Cumulative Effect of Change in Accounting Principle | (26,795) | |||||
Cumulative Effect of Change in Accounting Principle | Accounting Standards Update 2016-02 | (26,795) | |||||
Foreign currency translation adjustment | (519) | (519) | ||||
Ending Balance, shares at Dec. 28, 2019 | 53,696 | 15,530 | ||||
End Balance at Dec. 28, 2019 | $ 1,167,874 | $ 54 | $ (526,580) | 600,624 | (6,718) | 1,100,494 |
Stock options exercised | 1,945 | 1,945 | ||||
Stock options exercised | $ 63,036 | $ 1 | 63,035 | |||
Restricted/Performance stock units vested | 85 | |||||
Shares paid for tax withholding - RSU/PSU | (19) | |||||
Shares paid, Long Share Repurchase for Option Cost | 7 | |||||
Shares paid for tax withholding, amount | (3,807) | $ (1,616) | (2,191) | |||
Stock-based compensation | 42,225 | |||||
Stock-based compensation | $ 42,225 | |||||
Repurchases of common stock | (456) | (456) | (456) | |||
Repurchases of common stock | $ (110,540) | $ (110,540) | ||||
Net income | 240,282 | 240,282 | ||||
Cumulative Effect of Change in Accounting Principle | 439 | |||||
Cumulative Effect of Change in Accounting Principle | Accounting Standards Update 2016-13 | 439 | |||||
Foreign currency translation adjustment | 8,131 | 8,131 | ||||
Ending Balance, shares at Jan. 02, 2021 | 55,251 | 15,993 | ||||
End Balance at Jan. 02, 2021 | $ 1,407,640 | $ 55 | $ (638,736) | 703,693 | 1,413 | 1,341,215 |
Stock options exercised | 391 | 391 | ||||
Stock options exercised | $ 20,924 | $ 0 | 20,924 | |||
Restricted/Performance stock units vested | 307 | |||||
Shares paid for tax withholding - RSU/PSU | (68) | |||||
Shares paid, Long Share Repurchase for Option Cost | 0 | |||||
Shares paid for tax withholding, amount | (16,728) | $ 0 | (16,728) | |||
Stock-based compensation | 44,624 | |||||
Stock-based compensation | $ 44,624 | |||||
Repurchases of common stock | (546) | (546) | (546) | |||
Repurchases of common stock | $ (128,919) | $ (128,919) | ||||
Net income | 229,647 | 229,647 | ||||
Foreign currency translation adjustment | (6,943) | (6,943) | ||||
Ending Balance, shares at Jan. 01, 2022 | 55,335 | 16,539 | ||||
End Balance at Jan. 01, 2022 | $ 1,550,245 | $ 55 | $ (767,655) | $ 752,513 | $ (5,530) | $ 1,570,862 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 229,647,000 | $ 240,282,000 | $ 196,216,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,620,000 | 29,300,000 | 23,487,000 |
Stock-based compensation | 44,624,000 | 42,225,000 | 39,235,000 |
Loss on disposal of equipment, intangibles and other assets | 479,000 | 554,000 | 357,000 |
Provision for credit losses | (815,000) | (82,000) | (687,000) |
Benefit from deferred income taxes | (15,086,000) | (4,964,000) | (5,965,000) |
Changes in operating assets and liabilities: | |||
Increase in trade accounts receivable | (60,799,000) | (2,229,000) | (23,580,000) |
Decrease (increase) in inventories | 13,493,000 | (94,434,000) | (21,257,000) |
Decrease (increase) in other current assets | 6,884,000 | (29,984,000) | (8,536,000) |
Increase in lease receivable, net | (16,061,000) | (7,749,000) | (11,958,000) |
(Increase) decrease in deferred costs and other contract assets | (8,053,000) | (2,806,000) | 3,308,000 |
Decrease (increase) in other non-current assets | 57,000 | (1,320,000) | (226,000) |
Increase in accounts payable | 10,988,000 | 7,637,000 | 9,934,000 |
Increase in accrued compensation | 47,000 | 15,544,000 | 5,338,000 |
Increase in deferred revenue and other contract-related liabilities | 7,110,000 | 10,871,000 | 7,739,000 |
Increase (decrease) in income taxes payable | 6,409,000 | (1,301,000) | 4,079,000 |
Increase in accrued liabilities | 7,793,000 | 9,391,000 | 746,000 |
Increase (decrease) in other non-current liabilities | 787,000 | (136,000) | 2,038,000 |
Net cash provided by operating activities | 264,754,000 | 210,963,000 | 221,642,000 |
Cash flows from investing activities: | |||
Maturities of short-term investments | 0 | 120,000,000 | 160,000,000 |
Purchases of short-term investments | 0 | 0 | (280,000,000) |
Purchases of property and equipment, net | (25,503,000) | (72,549,000) | (68,375,000) |
Increase in intangible assets | (9,426,000) | (7,408,000) | (4,117,000) |
Business combinations, net of cash acquired | 0 | 112,706,000 | 0 |
Deposit to acquire noncontrolling interest | 0 | 3,374,000 | 0 |
Other strategic investing activities | (2,600,000) | (6,750,000) | (5,189,000) |
Net cash used in investing activities | (37,529,000) | (82,787,000) | (197,681,000) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 23,241,000 | 58,424,000 | 28,339,000 |
Repurchases of common stock | (128,917,000) | (110,540,000) | (37,555,000) |
Payroll tax withholdings on behalf of employees for stock options | (16,728,000) | (2,191,000) | (123,000) |
Net cash used in financing activities | (122,404,000) | (54,307,000) | (9,339,000) |
Effect of foreign currency exchange rates on cash | (1,448,000) | 3,060,000 | 812,000 |
Net increase in cash, cash equivalents and restricted cash | 103,373,000 | 76,929,000 | 15,434,000 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 748,377,000 | $ 645,004,000 | $ 568,075,000 |
Description of the Company
Description of the Company | 12 Months Ended |
Jan. 01, 2022 | |
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 wide array of patient monitoring technologies, as well as automation and connectivity 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) , Masimo SafetyNet ™ , Masimo SafetyNet-Open ™ , Replica ™ , Iris ® , MyView ® , UniView ™ , Uniview : 60 ™ , Trace ™ , Masimo Sleep ™ , Centroid ™ , and Bridge ™ . 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 |
Jan. 01, 2022 | |
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 or controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 weeks while a 53 week fiscal year includes three 13 week fiscal quarters and one 14 week fiscal quarter. The Company’s last 53 week fiscal year was fiscal year 2020. Fiscal year 2021 was a 52 week fiscal year ended January 1, 2022, with the fourth quarter having 13 weeks. All references to years in these notes to consolidated financial statements are references to 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, total consideration allocated to each performance obligation within a contract, inventory valuation, valuation of the Company’s equity awards, valuation of identifiable assets and liabilities connected with business combinations, 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. Business Combinations The Company accounts for business combinations using the acquisition method of accounting, which requires that once control is obtained, all the assets acquired, liabilities assumed and noncontrolling interests in the acquired entity, if applicable, are recorded at their respective fair values at the date of acquisition. The excess of the purchase price over fair values of identifiable assets, liabilities and noncontrolling interests in the acquired entity, if applicable, is recorded as goodwill. 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. The Company did not carry financial assets measured under the fair value hierarchy based on any of the three levels of inputs (Level 1, 2 and 3) other than cash and cash equivalents for the years ended January 1, 2022 and January 2, 2021. The Company carries cash and cash equivalents at cost, which approximates fair value, and are Level 1 under the fair value hierarchy. For certain other financial assets and liabilities, including restricted cash, accounts receivable, accounts payable and other current assets and liabilities, the carrying amounts approximate their fair value primarily due to the relatively short maturity of these balances. The Company also measures certain non-financial assets at fair value on a non-recurring basis, primarily goodwill, intangible assets and operating lease right-of-use assets, in connection with periodic evaluations for potential impairment. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments that are readily convertible into known amounts of cash, to be cash equivalents. Accounts Receivable and Allowance for Credit Losses 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 Company records an allowance for credit losses that it does not expect to collect based on relevant information, including historical experience, current conditions, and reasonable and supportable forecasts. Accounts are charged off against the allowance when the Company believes they are uncollectible. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified receivables for U.S. customers and receivables from international customers as a portfolio segment, and measures expected credit losses on such receivables using an aging methodology. 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 Buildings and building improvements 7 to 39 years Computer equipment and software 2 to 12 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery, equipment and tooling 3 to 10 years Transportation, vehicles and other 4 to 20 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 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 ROU assets and lease liabilities. 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 technologies, the useful life is determined largely by valuation estimates of remaining economic life. 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 periodically 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, as well as 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. The Company recognized no royalty revenue for the years ended January 1, 2022 and January 2, 2021. For the year ended December 28, 2019, the Company recognized royalty revenue pursuant to this agreement of approximately $0.7 million. 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 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 January 1, January 2, December 28, Warranty accrual, beginning of period $ 2,740 $ 3,395 $ 1,910 Accrual for warranties issued 2,219 832 1,715 Changes in pre-existing warranties (including changes in estimates) (1,439) 196 1,130 Settlements made (1,033) (1,683) (1,360) Warranty accrual, end of period $ 2,487 $ 2,740 $ 3,395 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 January 1, 2022, January 2, 2021 and December 28, 2019 were $9.0 million, $30.8 million and $14.0 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, and the largest transactions in foreign currency translations occur in Japanese Yen and the European Euro. 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 equity. Net Income Per Share A computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended January 1, January 2, December 28, Net income: $ 229,647 $ 240,282 $ 196,216 Basic net income per share: Weighted-average shares outstanding - basic 55,166 54,700 53,434 Net income per basic share $ 4.16 $ 4.39 $ 3.67 Diluted net income per share: Weighted-average shares outstanding - basic 55,166 54,700 53,434 Diluted share equivalents: stock options, RSUs and PSUs 2,516 3,337 3,666 Weighted-average shares outstanding - diluted 57,682 58,037 57,100 Net income per diluted share $ 3.98 $ 4.14 $ 3.44 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 January 1, 2022, January 2, 2021 and December 28, 2019, weighted options to purchase 0.2 million, 0.4 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 January 1, 2022, January 2, 2021 and December 28, 2019, 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 January 1, 2022, January 2, 2021 and December 28, 2019, 2.7 million of weighted average shares related to such RSUs have been excluded from the calculation of potential shares. For addition |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 01, 2022 | |
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 a cross-licensing agreement (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 $13.5 million, $13.3 million and $12.1 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. The Company had sales to Cercacor in the amount of $0.1 million, less than $0.1 million and less than $0.1 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. • 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 $0.3 million, $0.3 million and $0.2 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. • 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 $1.2 million, $1.1 million and $0.4 million of combined lease and sublease income for the years ended January 1, 2022, January 2, 2021, and December 28, 2019, respectively. Net amounts due to Cercacor were approximately $3.5 million and $3.6 million as of January 1, 2022 and January 2, 2021, respectively. The Company’s CEO is also the Chairman of the Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation), a non-profit organization that was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. 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 January 1, 2022, January 2, 2021 and December 28, 2019, the Company made cash contributions of approximately $0.0 million, $1.5 million and $1.0 million, respectively, to the Masimo Foundation. In addition, for each of the years ended January 1, 2022, January 2, 2021 and December 28, 2019, 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 a co-founder and a member of the board of directors of Like Minded Media Ventures (LMMV), a team of storytellers that create content focused in the areas of true stories, social causes and science . LMMV creates stories with a multi-platform strategy, bridging the gap between film, television, digital and social media. The Company entered into a marketing service agreement with LMMV for audiovisual production services promoting brand awareness, including television commercials and digital advertising, during 2020. During the fiscal years ended January 1, 2022 and January 2, 2021, the Company incurred less than $0.1 million and approximately $3.5 million in marketing expenses to LMMV under the marketing service agreement, respectively. At January 1, 2022 and January 2, 2021, there were no amoun ts due to LMMV for services rendered. The Company entered into a software license and professional services agreement with Like Minded Labs (LML), a subsidiary of LMMV, during the second quarter of 2021. Pursuant to the software license agreement, LML granted the Company a perpetual, non-exclusive and fully paid-up right and license to integrate LML’s software into the Company’s products in exchange for a $3.0 million one-time license fee. Pursuant to the professional services agreement, LML will provide professional services to the Company, including the development of custom software intended to support the integration of the licensed software into the Company’s products, as well as future support services upon the Company’s acceptance of deliverables. In July 2021, the Company entered into a patent purchase and option agreement with Vantrix Corporation (Vantrix), an acquiree of LML, for certain patents for $0.5 million, and the right to purchase two pools of additional patents from Vantrix for an exercise fee of up to $1.1 million. The agreements with LML and Vantrix include sublicensing provisions whereby the software and patents are licensed back to LML or Vantrix, respectively, for further advancement of the technologies. 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 January 1, 2022, January 2, 2021 and December 28, 2019, the Company charged the Company’s CEO less than $0.1 million, less than $0.1 million and $0.1 million, respectively, related to such reimbursements. |
Inventories
Inventories | 12 Months Ended |
Jan. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following (in thousands): January 1, January 2, Raw materials $ 128,319 $ 133,098 Work-in-process 17,140 15,985 Finished goods 55,911 66,869 Total Inventories $ 201,370 $ 215,952 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Jan. 01, 2022 | |
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): January 1, January 2, Prepaid expenses $ 30,879 $ 30,235 Lease receivable, current 28,666 23,206 Indirect taxes receivable 12,847 14,545 Prepaid income taxes 7,009 14,782 Restricted cash (1) 3,041 3,397 Prepaid rebates and royalties 2,785 3,081 Customer notes receivable 2,410 2,283 Deposits to acquire noncontrolling interest (2) — 3,374 Other current assets 3,390 7,513 Total other current assets $ 91,027 $ 102,416 ______________ (1) Restricted cash includes funds received from the Bill and Melinda Gates Foundation. As the Company incurs costs associated with research and development related to this project, on a quarterly basis, the Company reclasses amounts from the grant to offset costs incurred. |
Lease Receivable
Lease Receivable | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Lease Receivable | 6. Lease Receivable Upon the Company’s adoption of ASC 842, the Company 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 years ended January 1, 2022 and January 2, 2021 was approximately $59.4 million and $42.6 million, respectively, and is included within product revenue in the accompanying consolidated statements of operations. Costs related to embedded leases within the Company’s deferred equipment agreements are included in cost of goods sold. 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): January 1, January 2, Lease receivable $ 102,609 $ 81,074 Allowance for credit loss (255) (202) Lease receivable, net 102,354 80,872 Less: current portion of lease receivable (28,666) (23,206) Lease receivable, noncurrent $ 73,688 $ 57,666 As of January 1, 2022, estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands): Fiscal year Amount 2022 $ 28,666 2023 24,297 2024 20,552 2025 14,428 2026 7,993 Thereafter 6,418 Total $ 102,354 Estimated future operating lease payments expected to be received from customers under deferred equipment agreements are not material as of January 1, 2022. |
Deferred Costs and Other Contra
Deferred Costs and Other Contract Assets | 12 Months Ended |
Jan. 01, 2022 | |
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): January 1, January 2, Deferred commissions $ 11,878 $ 7,477 Prepaid contract allowances 8,598 7,336 Unbilled contract receivables 4,970 3,925 Equipment leased to customers, net 2,647 1,338 Deferred costs and other contract assets $ 28,093 $ 20,076 For the years ended January 1, 2022, January 2, 2021 and December 28, 2019, $0.5 million, $0.4 million and $1.0 million, respectively, of equipment leased to customers was amortized to cost of goods sold. As of January 1, 2022 and January 2, 2021, accumulated amortization of equipment leased to customers was $0.5 million and $0.9 million, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment, net Property and equipment, net, consists of the following (in thousands): January 1, January 2, Building and building improvements $ 142,132 $ 122,310 Machinery, equipment and tooling 103,451 90,843 Land 57,027 57,151 Transportation, vehicles and other 33,082 33,175 Computer equipment and software 32,450 24,693 Leasehold improvements 21,894 19,295 Furniture and office equipment 14,200 13,567 Demonstration units 949 1,024 Construction-in-progress (CIP) 25,109 44,589 Total property and equipment 430,294 406,647 Accumulated depreciation (157,501) (134,136) Property and equipment, net $ 272,793 $ 272,511 The balance in CIP at January 1, 2022 relates primarily to the capitalized implementation costs related to a new enterprise resource planning software system and costs related to equipment and other facility improvements, the underlying assets for which have not been completed or placed into service. The decrease in CIP balance from January 2, 2021 primarily relates to the Company’s European headquarters building in Switzerland being placed into service along with a phase of the new enterprise resource planning software system for certain subsidiaries being placed into service. The balance in CIP at January 2, 2021 related pri marily to acquisition and improvement costs for a portion of a purchased building in Switzerland, capitalized implementation costs related to a new enterprise resource planning software system and costs related to manufacturing equipment and other facility improvements globally, the underlying assets for which have not been completed or placed into service. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 9. Intangible Assets, net Intangible assets, net, consist of the following (in thousands): January 1, January 2, Gross carrying amount Patents $ 31,513 $ 26,875 Acquired technologies 28,371 29,039 Customer relationships 24,624 24,666 Trademarks 12,210 11,708 Licenses 8,108 5,108 Licenses-related party 7,500 7,500 Other 6,203 5,693 Total gross carrying amount $ 118,529 $ 110,589 Accumulated amortization Patents $ (13,222) $ (10,763) Acquired technologies (7,668) (5,259) Customer relationships (7,381) (6,486) Trademarks (6,127) (3,999) Licenses-related party (5,969) (5,594) Licenses (1,975) (1,247) Other (3,685) (3,318) Total accumulated amortization (46,027) (36,666) Net carrying amount $ 72,502 $ 73,923 Intangible assets have a weighted-average amortization period of twelve years. For the years ended January 1, 2022, January 2, 2021 and December 28, 2019, amortization of intangible assets was $10.3 million, $7.5 million and $4.4 million, respectively. As of January 1, 2022 and January 2, 2021, the total costs of patents not yet amortizing was $9.0 million and $8.2 million, respectively. As of January 1, 2022 and January 2, 2021, the total costs of trademarks not yet amortizing was $1.0 million and $0.9 million, respectively. For the years ended January 1, 2022 and January 2, 2021, total renewal costs capitalized for patents and trademarks was $1.5 million and $1.3 million, respectively. As of January 1, 2022, the weighted-average number of years until the next renewal was two years for patents and three years for trademarks. During the first quarter of 2020, the Company completed an immaterial business combination. Based on the Company’s purchase price allocation, approximately $15.5 million, $2.6 million and $1.7 million of the purchase price was assigned to customer relationships, acquired technologies and trademarks, respectively. During the second quarter of 2020, the Company completed another immaterial business combination. Based on the Company’s purchase price allocation, approximately $6.3 million, $2.4 million, $0.4 million and $0.3 million of the purchase price was assigned to acquired technologies, trademarks, customer relationships and other intangibles, respectively. During the fourth quarter of 2020, the Company obtained a controlling interest in a provider of advanced hemodynamic monitoring solutions. Based on the Company’s purchase price allocation, approximately $14.0 million, $2.3 million, $1.0 million and $1.0 million of the purchase price was assigned to acquired technologies, trademarks, customer relationships and other intangibles, respectively. Subsequently, during the first quarter of 2021, the Company acquired the remaining minority interest. See Note 14 to these consolidated financial statements for further details. Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2022 $ 8,242 2023 8,138 2024 7,674 2025 6,864 2026 5,930 Thereafter 35,654 Total $ 72,502 |
Goodwill
Goodwill | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 10. Goodwill Changes in goodwill were as follows (in thousands): January 1, January 2, Goodwill, beginning of period $ 103,206 $ 22,350 Increase from business combinations — 79,862 Foreign currency translation and other adjustments (2,872) 994 Goodwill, end of period $ 100,334 $ 103,206 During the first quarter of 2020, the Company completed an immaterial business combination. Based on the Company’s purchase price allocation for this transaction, approximately $31.4 million of the purchase price was assigned to goodwill. During the second quarter of 2020, the Company completed another immaterial business combination. Based on the Company’s purchase price allocation for this transaction, approximately $26.7 million of the purchase price was assigned to goodwill. During the fourth quarter of 2020, the Company obtained a controlling interest in a provider of advanced hemodynamic monitoring solutions. Based on the Company’s purchase price allocation, approximately $21.8 million of the purchase price was assigned to goodwill. During the first quarter of fiscal 2021, the Company acquired the remaining minority interest. See Note 14 to these consolidated financial statements for further details. |
Lessee ROU Assets and Lease Lia
Lessee ROU Assets and Lease Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Lessee ROU Assets and Lease Liabilities | 11. Lessee ROU Assets and Lease Liabilities 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 January 2032. In addition, the Company leases equipment in the U.S. and Europe pursuant to leases that are classified as operating leases and expire at various dates through August 2026. 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 January 1, 2022, the weighted average discount rate used by the Company for all operating leases was approximately 2.6%. The balance sheet classifications for amounts related to the Company’s operating leases for which it is the lessee are as follows (in thousands): Balance sheet classification January 1, January 2, Lessee ROU assets, net Other non-current assets $ 30,486 $ 32,324 Lessee current lease liabilities Other current liabilities 6,371 5,975 Lessee non-current lease liabilities Other non-current liabilities 26,290 28,373 Total operating lease liabilities $ 32,661 $ 34,348 For the years ended January 1, 2022 and January 2, 2021, accumulated amortization for lessee ROU assets was $15.2 million and $9.2 million, respectively. The weighted average remaining lease term for the Company’s operating leases was 6.4 years as of January 1, 2022. As of January 1, 2022, estimated future operating lease payments for each of the following fiscal years were as follows (in thousands): Fiscal year Amount 2022 $ 7,411 2023 6,685 2024 5,235 2025 3,991 2026 2,804 Thereafter (1) 9,442 Total 35,568 Imputed interest (2,907) Present value $ 32,661 ______________ (1) Includes optional renewal period for certain leases. For the years ended January 1, 2022, January 2, 2021 and December 28, 2019, the Company’s operating lease costs were approximately $8.2 million, $6.9 million and $6.8 million, respectively. |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Jan. 01, 2022 | |
Other Assets, Noncurrent [Abstract] | |
Other Non-Current Assets | 12. Other Non-Current Assets Other assets, long-term consist of the following (in thousands): January 1, January 2, Lessee ROU assets, net $ 30,486 $ 32,324 Strategic investments 13,830 8,002 Prepaid deposits 3,863 3,816 Other non-current assets 402 500 Total non-current assets $ 48,581 $ 44,642 |
Deferred Revenue and Other Cont
Deferred Revenue and Other Contract Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer | 13. Deferred Revenue and Other Contract Liabilities Deferred revenue and other contract liabilities consist of the following (in thousands): January 1, January 2, Deferred revenue $ 35,127 $ 33,221 Accrued rebates and allowances 13,628 12,127 Accrued customer reimbursements 7,424 3,829 Total deferred revenue and other contract liabilities 56,179 49,177 Less: Non-current portion of deferred revenue (5,302) (4,242) Deferred revenue and other contract liabilities - current $ 50,877 $ 44,935 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, extended warranty agreements and maintenance agreements. Changes in deferred revenue for the year ended January 1, 2022 were as follows: Amount Deferred revenue, beginning of the period $ 33,221 Revenue deferred during the period 31,133 Recognition of revenue deferred in prior periods (29,227) Deferred revenue, end of the period $ 35,127 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. As of January 1, 2022, the Company had approximately $1,165.1 million of Unrecognized Contract Revenue related to executed contracts with an original duration of one year or more. The Company expects to recognize approximately $318.0 million of this amount as revenue within the next twelve months and the remaining balance thereafter. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 14. Other Current Liabilities Other current liabilities consist of the following (in thousands): January 1, January 2, Accrued indirect taxes payable $ 16,302 $ 14,365 Accrued expenses 12,061 6,794 Income tax payable 11,996 5,910 Accrued legal fees 7,136 4,058 Lessee lease liabilities, current 6,371 5,975 Related party payables 5,618 3,655 Accrued warranty 2,487 2,740 Accrued property taxes 1,989 1,682 Accrued donations 1,707 495 Noncontrolling interest (1) — 3,469 Other current liabilities 4,730 4,096 Total other current liabilities $ 70,397 $ 53,239 ______________ |
Credit Facilities
Credit Facilities | 12 Months Ended |
Jan. 01, 2022 | |
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 January 1, 2022 and January 2, 2021, the Credit Facility had no outstanding draws and as of January 1, 2022, 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 January 1, 2022. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Jan. 01, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Non-Current Liabilities | 16. Other Non-Current Liabilities Other non-current liabilities consist of the following (in thousands): January 1, January 2, Lessee non-current lease liabilities $ 26,290 $ 28,373 Income tax payable, non-current 16,980 19,245 Unrecognized tax benefits 14,864 11,777 Deferred tax liabilities 5,112 6,247 Other non-current liabilities 5,783 5,434 Total other non-current liabilities $ 69,029 $ 71,076 Unrecognized tax benefits relate to the Company’s long-term portion of tax liability associated with uncertain tax positions. Authoritative guidance prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. See Note 20 to these consolidated financial statements for further details. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Stock Repurchase Program | 17. Stock Repurchase Program In July 2018, the Company’s Board of Directors (Board) approved a 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). A total of 1.3 million shares were purchased by the Company pursuant to the 2018 Repurchase Program prior to its expiration in September 2021. In October 2021, the Board approved a new stock repurchase program, authorizing the Company to purchase up to 3.0 million shares of its common stock over a period of up to three years (2021 Repurchase Program). The 2021 Repurchase Program became effective in October 2021 upon the expiration of the 2018 Repurchase Program. The Company expects to fund the 2021 Repurchase Program through its available cash, cash expected to be generated from future operations, the Credit Facility and other potential sources of capital. The 2021 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 January 1, 2022, 3.0 million shares remained available for repurchase pursuant the 2021 Repurchase Program. The following table provides a summary of the Company’s stock repurchase activities during the years ended January 1, 2022, January 2, 2021 and December 28, 2019 (in thousands, except per share amounts): Years Ended January 1, January 2, December 28, Shares repurchased 546 (1) 456 (1) 275 Average cost per share $ 235.88 $ 242.40 $ 136.61 Value of shares repurchased 128,919 $ 110,540 $ 37,554 ______________ (1) Excludes shares withheld from the shares of its common stock actually issued in connection with the vesting of PSU or RSU awards to satisfy certain U.S. federal and state tax withholding obligations. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 01, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 18. Stock-Based Compensation Total stock-based compensation expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019 was $44.6 million, $42.2 million and $39.2 million, respectively. As of January 1, 2022, an aggregate of 10.6 million shares of common stock were reserved for future issuance under the Company’s equity plans, of which 4.4 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 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. 2017 Equity Incentive 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. Upon effectiveness, an aggregate of 5.0 million shares were available for issuance under the 2017 Equity Plan. In May 2020, the Company’s stockholders approved an increase of 2.5 million shares to the 2017 Equity Plan. The aggregate number of shares that may be awarded under the 2017 Equity Plan is 7.5 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. 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 weighted-average exercise prices): Year Ended Year Ended Year Ended Shares Average Shares Average Shares Average Options outstanding, beginning of period 3,448 $ 77.44 5,212 $ 54.23 5,676 $ 43.61 Granted 85 250.15 400 187.83 545 140.56 Canceled/Forfeited (171) 149.11 (219) 126.98 (158) 83.14 Exercised (391) 53.55 (1,945) 32.41 (851) 33.32 Options outstanding, end of period 2,971 $ 81.38 3,448 $ 77.44 5,212 $ 54.23 Options exercisable, end of period 2,175 $ 57.09 2,026 $ 47.31 3,311 $ 33.80 Total stock option expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019 was $13.0 million, $16.1 million, and $14.8 million, respectively. As of January 1, 2022, the Company had $27.0 million of unrecognized compensation cost related to non-vested stock options that are expected to vest over a weighted average period of approximately 5.1 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 Options Outstanding Options Range of Exercise Prices Number of Average Number of Number of Average Number of $15.00 to $50.00 1,426 3.33 1,426 1,696 4.14 1,518 $50.01 to $80.00 31 4.75 29 42 5.80 26 $80.01 to $120.00 805 5.81 544 910 6.83 408 $120.01 to $160.00 356 7.36 124 476 8.41 74 $160.01 to $200.00 226 8.18 41 255 9.17 — $200.01 to $230.00 29 8.54 5 37 9.50 — $230.01 to $280.00 98 8.97 6 32 9.53 — Total 2,971 5.11 2,175 3,448 5.90 2,026 As of January 1, 2022 and January 2, 2021, the weighted-average remaining contractual term of options outstanding was 5.1 years and 5.9 years, respectively. As of January 1, 2022 and January 2, 2021, 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 2,862 $ 99.66 2,797 $ 96.85 2,707 $ 95.54 Granted 112 257.43 98 193.77 100 133.57 Canceled/Forfeited (23) 204.33 (6) 165.03 (3) 133.50 Vested (35) 163.71 (27) 134.78 (7) 99.05 RSUs outstanding, end of period 2,916 $ 104.13 2,862 $ 99.66 2,797 $ 96.85 Total RSU expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019 was $9.0 million, $5.7 million and $2.8 million, respectively. As of January 1, 2022, the Company had $26.6 million of unrecognized compensation cost related to non-vested RSU awards expected to be recognized and vest over a weighted-average period of approximately 3.5 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 444 $ 120.28 412 $ 102.22 313 $ 88.34 Granted 148 (1) 250.73 97 179.42 128 133.50 Canceled/Forfeited (17) 166.84 (7) 122.13 — — Vested (272) 86.95 (58) 90.69 (29) 90.69 PSUs outstanding, end of period 303 $ 168.68 444 $ 120.28 412 $ 102.22 (1) On February 22, 2021, the Audit Committee approved the weighted payout percentage for the 2018 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2020 performance against pre-established performance objectives. Included in the granted amount are those additional PSUs earned based on actual performance achieved. These PSUs were originally awarded at target. During the year ended December 28, 2019, the Company awarded 128,000 PSUs that will vest three years from the award date based on the achievement of certain fiscal year 2021 performance criteria approved by the Compensation Committee of the Board (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 128,000 PSUs or 256,000 shares. O n February 14, 2022, the Audit Committee determined that the performance criteria were achieved within the range. During the year ended January 2, 2021, the Company awarded 97,000 PSUs that will vest three years from the award date, based on the achievement of certain fiscal year 2022 performance criteria approved by the Compensation Committee. 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 97,000 PSUs or 194,000 shares. During the year ended January 1, 2022, the Company awarded 69,000 PSUs that will vest three years from the award date, based on the achievement of certain fiscal year 2023 performance criteria approved by the Compensation Committee. 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 69,000 PSUs or 138,000 shares. Based on management’s estimate of the number of units expected to vest, total PSU expense for the years ended January 1, 2022, January 2, 2021 and December 28, 2019 was $22.6 million, $20.4 million and $21.6 million, respectively. As of January 1, 2022, the Company had $33.5 million of unrecognized compensation cost related to non-vested PSU awards expected to be recognized and vest over a weighted-average period of approximately 0.8 years. Valuation of Stock-Based Award Activity The fair value of each RSU and PSU is determined based on the closing price of the Company’s common stock on the grant date. The Black-Scholes option pricing model is used to estimate the fair value of options granted under the Company’s stock-based compensation plans. The range of assumptions used and the resulting weighted-average fair value of options granted at the date of grant were as follows: Year Ended Year Ended Year Ended Risk-free interest rate 0.3% to 0.9% 0.2% to 1.7% 1.4% to 2.6% Expected term 5.1 years to 5.6 years 5.1 years to 5.1 years 5.1 years to 5.2 years Estimated volatility 30.9% to 34.7% 26.9% to 35.5% 28.2% to 30.0% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $75.72 per share $51.10 per share $42.29 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 fiscal years 2021, 2020 and 2019 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 January 1, 2022, January 2, 2021 and December 28, 2019, 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, net of forfeitures. Forfeitures of stock-based awards are recognized as they occur. The total fair value of all options that vested during fiscal years 2021, 2020 and 2019 was $15.2 million, $15.1 million and $14.2 million, respectively. The aggregate intrinsic value of options is calculated as the positive difference, if any, between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of January 1, 2022 was $628.1 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 January 1, 2022 was $512.5 million. The aggregate intrinsic value of options exercised during the years ended January 1, 2022, January 2, 2021 and December 28, 2019 was $84.7 million, $355.3 million and $93.9 million, respectively. The total income tax benefit recognized in the consolidated statements of operations for stock-based compensation expense was $16.4 million, $30.4 million and $15.7 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, 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 $ 839 $ 714 $ 445 Selling, general and administrative 31,315 31,462 30,450 Research and development 12,470 10,049 8,340 Total $ 44,624 $ 42,225 $ 39,235 |
Non-operating Income
Non-operating Income | 12 Months Ended |
Jan. 01, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
Non-operating Income | 19. Non-operating (Loss) Income Non-operating income consists of the following (in thousands): Year Ended Year Ended Year Ended Interest income $ 936 $ 5,534 $ 13,917 Realized and unrealized foreign currency (loss) gain (1,863) 2,631 (627) Interest expense (355) (338) (328) Other (160) 86 (12) Total non-operating (loss) income $ (1,442) $ 7,913 $ 12,950 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 01, 2022 | |
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 $ 221,225 $ 214,816 $ 181,664 Foreign 53,155 48,920 52,502 Total $ 274,380 $ 263,736 $ 234,166 The following table presents the current and deferred provision (benefit) for income taxes (in thousands): Year Ended Year Ended Year Ended Current: Federal $ 38,166 $ 13,901 $ 30,218 State 7,069 6,444 5,273 Foreign 14,584 8,073 8,424 Subtotal $ 59,819 $ 28,418 $ 43,915 Deferred: Federal $ (4,884) $ 1,354 $ (3,732) State (6,054) (6,191) (1,985) Foreign (4,148) (127) (248) Subtotal (15,086) (4,964) (5,965) Total $ 44,733 $ 23,454 $ 37,950 Included in the fiscal year 2021, 2020 and 2019 tax provisions are increases of $3.6 million, $0.2 million and $1.8 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 % 21.0 % State provision, net of federal benefit 0.3 0.1 1.1 Nondeductible executive compensation 2.1 1.8 2.1 Research and development tax credits (1.8) (2.2) (1.1) Foreign income taxed at different rates (0.3) (1.0) (1.7) U.S. tax on foreign income, net 0.9 1.0 0.1 Excess stock-based compensation (5.5) (10.4) (6.0) Derecognition of uncertain tax position (1.0) (2.2) — Other 0.6 0.8 0.7 Total 16.3 % 8.9 % 16.2 % During the year ended December 28, 2019, the Company completed its analysis of the income tax effects of the Tax Cuts and Jobs Act of 2017 (2017 Tax Act) and, pursuant to Staff Accounting Bulletin No. 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 January 1, 2022, the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $267.1 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 $180.6 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 $8.6 million. The components of the deferred tax assets are as follows (in thousands): January 1, January 2, Deferred tax assets: Deferred revenue $ 26,139 $ 19,769 Net operating losses 9,494 19,140 Accrued liabilities 19,165 16,534 Tax credits 13,079 9,398 Stock-based compensation 8,919 8,385 Operating lease assets 5,696 5,782 Other — — Total 82,492 79,008 Valuation allowance (6,524) (15,660) Total deferred tax assets $ 75,968 $ 63,348 Deferred tax liabilities: Property and equipment $ (12,966) $ (12,818) Acquired intangibles (2,649) (5,465) Operating lease liabilities (5,436) (5,429) Withholding taxes on undistributed foreign earnings (2,829) (3,108) State taxes and other (4,265) (2,302) Other (440) (1,110) Total deferred tax liabilities (28,585) (30,232) Net deferred tax assets $ 47,383 $ 33,116 As of January 1, 2022, the Company has $1.6 million and $2.9 million of net operating losses from federal and various state jurisdictions, which will begin to expire in 2036 and 2039, respectively. Additionally, the Company has $29.2 million of net operating losses from foreign jurisdictions which will carryover indefinitely. The Company also has state research and development tax credits of $19.2 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 2033. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that all or some portion of the deferred tax assets will not 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. During the year ended January 2, 2021, the Company established a valuation allowance to reduce the deferred tax assets relating to certain acquired operating losses in certain foreign jurisdictions that the Company believes are not likely to be realized. During the year ended January 1, 2022, there was a decrease in the valuation allowance of $9.1 million primarily due to the loss of certain acquired operating losses as a result of an internal reorganization. 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 2022, which, upon meeting certain requirements, can be extended through 2026. For the year ended January 1, 2022 and January 2, 2021, the estimated income tax benefit related to such business arrangement was $1.0 million and $0.9 million, respectively, and favorably impacted net income per diluted share by $0.02 for each year. 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 $ 18,005 $ 17,009 Increase from tax positions in prior period 543 471 Decrease from tax position in prior period (850) — Increase from tax positions in current period 7,019 6,565 Lapse of statute of limitations (3,069) (6,040) Unrecognized tax benefits (gross), end of period $ 21,648 $ 18,005 The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $19.8 million and $16.3 million as of January 1, 2022 and January 2, 2021, 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 January 1, 2022 and December 28, 2019, the Company recorded an expense of $0.1 million and $0.8 million for interest and penalties related to unrecognized tax benefits as part of income tax expense, respectively. For the year ended January 2, 2021, the Company recorded a benefit of $0.5 million 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 January 1, 2022 and January 2, 2021 were $0.8 million and $0.7 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 2017. All material state, local and foreign income tax matters have been concluded for years through 2014. In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted and signed into law in response to the market volatility and instability resulting from the COVID-19 pandemic. It includes a significant number of tax provisions and lifts certain deduction limitations originally imposed by the 2017 Tax Act. The changes are primarily related to: (1) the business interest expense disallowance rules for 2019 and 2020; (2) net operating loss rules; (3) charitable contribution limitations; (4) employee retention credit; and (5) the realization of corporate alternative minimum tax credits. The Company has reviewed the tax provision in the CARES Act and did not identify any material impact to the Company’s consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 01, 2022 | |
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 $3.4 million, $3.2 million and $2.5 million to the MSRP for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, 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 January 1, 2022, 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. On January 14, 2022, the Company entered into the Second Amendment to the Amended Employment Agreement (the “Second Amendment”) with Mr. Kiani. The Second Amendment provides that the RSUs granted to Mr. Kiani pursuant to the Amended Employment Agreement will vest in full upon the termination of Mr. Kiani’s employment with the Company pursuant to Mr. Kiani’s death or disability. As of January 14, 2022, 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 $664.3 million. As of January 1, 2022, the Company had severance plan participation agreements with five 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 $170.2 million of purchase commitments as of January 1, 2022, that 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, other critical inventory and manufacturing supplies 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 January 1, 2022, the Company had approximately $3.5 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 January 1, 2022, the Company had not incurred any significant costs related to contractual indemnification of its customers. On February 15, 2022, we announced our entry into a definitive merger agreement to acquire Viper Holdings Corporation, which owns Sound United (“Sound United”), a consumer technology company that owns a portfolio of premium brands, including Bowers & Wilkins, Denon, Polk Audio and Marantz. Pursuant to the merger agreement, the Company will pay approximately $1.025 billion, subject to adjustments. The transaction is subject to customary closing conditions, including receipt of certain regulatory approvals, and is anticipated to close in the middle of 2022. The Company expects to finance the acquisition through a combination of cash on hand and new credit facility. The Company received a debt commitment letter for a credit facility in the amount of $800 million and expects to secure this financing in the event the pending acquisition closes. 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 a portion of its excess cash in time deposits with major financial institutions. As of January 1, 2022, the Company had $745.3 million of bank balances of which $5.1 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. During the years ended January 1, 2022, January 2, 2021 and December 28, 2019, revenue from the sale of the Company’s products to customers that are members of GPOs approximated 51.9%, 49.3% and 55.3% of total product revenue, respectively. For the years ended January 1, 2022, January 2, 2021 and December 28, 2019, the Company had sales through two just-in-time distributors that represented 14.6% and 9.6%, 11.5% and 10.1%, and 11.1% and 13.0% of total product revenue, respectively. As of January 1, 2022 and January 2, 2021, one just-in-time distributor represented 7.4% and 6.7% of the Company’s accounts receivable balance, respectively. As of January 1, 2022 and January 2, 2021, one customer represented 15.7% and 9.1%, respectively, of the Company’s accounts receivable balance. The receivable balance related to such customer is fully secured by letters of credit. The majority of the Company’s historical royalty revenue arose from one agreement with Medtronic plc (Medtronic). For the years ended January 1, 2022 and January 2, 2021, the Company recognized no royalty revenue pursuant to this agreement. For the year ended December 28, 2019, the Company recognized royalty revenue pursuant to this agreement of $0.7 million. Pursuant to the agreement, Medtronic is not obligated to pay royalties to the Company for its sales occurring after October 6, 2018. |
Legal Matters and Contingencies | 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. In July 2020, the Company was notified that a bankruptcy reorganization proposal had been submitted for voting by creditors in August 2020. The reorganization proposal was rejected by a vote of the creditors on August 26, 2020. On October 22, 2020, the Company filed a petition seeking to enforce the arbitration award. Although the Company intends to vigorously pursue the 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 (District Court) 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 the plaintiffs’ motion for class certification and granting in part and denying in part the Company’s motion for summary judgment, and deferring ruling on the plaintiffs’ motion for summary judgment. On December 5, 2019, the 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 was scheduled for June 2, 2020, but on April 1, 2020, the District Court vacated the trial date and directed the parties to conduct an in-person mediation. The mediation has not occurred and no new trial date has been set. On July 13, 2020, the District Court issued an order granting in part and denying in part the plaintiffs’ motion for summary judgment. 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. |
Segment Information and Enterpr
Segment Information and Enterprise Reporting | 12 Months Ended |
Jan. 01, 2022 | |
Segment Reporting [Abstract] | |
Segment Information and Enterprise Reporting | 22. Segment Information and Enterprise Reporting The Company operates in one segment based upon the Company’s organizational structure and the way in which the Company’s chief operating decision maker, the CEO, reviews financial information, including gross profit, operating expenses, operating income, and net income presented on a consolidated basis, accompanied by disaggregated information about revenues by geographic region for purposes of making operating decisions and assessing financial performance. 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.) $ 822,410 66.4 % $ 763,069 66.7 % $ 636,371 68.0 % Europe, Middle East and Africa 251,839 20.3 238,681 20.9 183,363 19.6 Asia and Australia 123,595 10.0 103,756 9.1 87,961 9.4 North and South America (excluding U.S.) 41,309 3.3 38,238 3.3 28,713 3.0 Total product revenue $ 1,239,153 100.0 % $ 1,143,744 100.0 % $ 936,408 100.0 % 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 $ 239,394 86.9 % $ 238,094 86.9 % $ 216,650 98.5 % International 36,046 13.1 35,755 13.1 3,276 1.5 Total $ 275,440 100.0 % $ 273,849 100.0 % $ 219,926 100.0 % |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Jan. 01, 2022 | |
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 2021 and 2020 (in thousands, except per share data): Quarters Ended Fiscal 2021 April 3, July 3, October 2, January 1, Total revenue $ 299,043 $ 305,118 $ 307,414 $ 327,578 Gross profit 196,875 192,912 203,664 214,896 Operating income 65,664 65,136 67,611 77,411 Net income 53,375 50,235 57,771 68,258 Net income per share Basic (1) $ 0.97 $ 0.91 $ 1.05 $ 1.23 Diluted (1) $ 0.92 $ 0.88 $ 1.00 $ 1.18 Quarters Ended Fiscal 2020 March 28, June 27, September 26, January 2, Total revenue $ 269,625 $ 300,953 $ 278,112 $ 295,054 Gross profit 185,629 191,584 178,926 186,926 Operating income 69,010 62,220 59,698 64,895 Net income 64,456 55,772 49,405 70,649 Net income per share Basic (1) $ 1.20 $ 1.02 $ 0.90 $ 1.28 Diluted (1) $ 1.12 $ 0.96 $ 0.85 $ 1.21 ______________ (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 |
Jan. 01, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Description Balance at Additions Charged to Amounts Charged Balance at Year ended January 1, 2022 Allowance for credit losses $ 1,805 $ 728 (1) $ (96) $ 2,437 Allowance for sales returns and allowances 1,222 (953) (1) (104) 165 Year ended January 2, 2021 Allowance for credit losses 2,206 128 (1) (529) 1,805 Allowance for sales returns and allowances 700 814 (1) (292) 1,222 Year ended December 28, 2019 Allowance for credit losses 1,535 1,021 (350) 2,206 Allowance for sales returns and allowances 432 1,696 (1,428) 700 ______________ (1) Additions charged to expense and other accounts include amounts from immaterial business combinations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 01, 2022 | |
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 or controlled subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Periods | Fiscal Periods The Company follows a conventional 52/53 week fiscal year. Under a conventional 52/53 week fiscal year, a 52 week fiscal year includes four quarters of 13 weeks while a 53 week fiscal year includes three 13 week fiscal quarters and one 14 week fiscal quarter. The Company’s last 53 week fiscal year was fiscal year 2020. Fiscal year 2021 was a 52 week fiscal year ended January 1, 2022, with the fourth quarter having 13 weeks. All references to years in these notes to consolidated financial statements are references to 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, total consideration allocated to each performance obligation within a contract, inventory valuation, valuation of the Company’s equity awards, valuation of identifiable assets and liabilities connected with business combinations, 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. |
Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting, which requires that once control is obtained, all the assets acquired, liabilities assumed and noncontrolling interests in the acquired entity, if applicable, are recorded at their respective fair values at the date of acquisition. The excess of the purchase price over fair values of identifiable assets, liabilities and noncontrolling interests in the acquired entity, if applicable, is recorded as goodwill. |
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. The Company did not carry financial assets measured under the fair value hierarchy based on any of the three levels of inputs (Level 1, 2 and 3) other than cash and cash equivalents for the years ended January 1, 2022 and January 2, 2021. The Company carries cash and cash equivalents at cost, which approximates fair value, and are Level 1 under the fair value hierarchy. For certain other financial assets and liabilities, including restricted cash, accounts receivable, accounts payable and other current assets and liabilities, the carrying amounts approximate their fair value primarily due to the relatively short maturity of these balances. The Company also measures certain non-financial assets at fair value on a non-recurring basis, primarily goodwill, intangible assets and operating lease right-of-use assets, in connection with periodic evaluations for potential impairment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity from date of purchase of three months or less, or highly liquid investments that are readily convertible into known amounts of cash, to be cash equivalents. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses 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 Company records an allowance for credit losses that it does not expect to collect based on relevant information, including historical experience, current conditions, and reasonable and supportable forecasts. Accounts are charged off against the allowance when the Company believes they are uncollectible. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company has identified receivables for U.S. customers and receivables from international customers as a portfolio segment, and measures expected credit losses on such receivables using an aging methodology. |
Inventory | 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 Buildings and building improvements 7 to 39 years Computer equipment and software 2 to 12 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery, equipment and tooling 3 to 10 years Transportation, vehicles and other 4 to 20 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 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 ROU assets and lease liabilities. 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 technologies, the useful life is determined largely by valuation estimates of remaining economic life. 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 periodically 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, as well as 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. |
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 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 January 1, January 2, December 28, Warranty accrual, beginning of period $ 2,740 $ 3,395 $ 1,910 Accrual for warranties issued 2,219 832 1,715 Changes in pre-existing warranties (including changes in estimates) (1,439) 196 1,130 Settlements made (1,033) (1,683) (1,360) Warranty accrual, end of period $ 2,487 $ 2,740 $ 3,395 |
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 January 1, 2022, January 2, 2021 and December 28, 2019 were $9.0 million, $30.8 million and $14.0 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, and the largest transactions in foreign currency translations occur in Japanese Yen and the European Euro. |
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 equity. |
Net Income Per Share | Net Income Per Share A computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended January 1, January 2, December 28, Net income: $ 229,647 $ 240,282 $ 196,216 Basic net income per share: Weighted-average shares outstanding - basic 55,166 54,700 53,434 Net income per basic share $ 4.16 $ 4.39 $ 3.67 Diluted net income per share: Weighted-average shares outstanding - basic 55,166 54,700 53,434 Diluted share equivalents: stock options, RSUs and PSUs 2,516 3,337 3,666 Weighted-average shares outstanding - diluted 57,682 58,037 57,100 Net income per diluted share $ 3.98 $ 4.14 $ 3.44 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 January 1, 2022, January 2, 2021 and December 28, 2019, weighted options to purchase 0.2 million, 0.4 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 January 1, 2022, January 2, 2021 and December 28, 2019, 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 January 1, 2022, January 2, 2021 and December 28, 2019, 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 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information includes the following (in thousands): Year Ended January 1, January 2, December 28, Cash paid during the year for: Interest expense $ 285 $ 270 $ 211 Income taxes 43,947 39,491 42,270 Operating lease liabilities 7,306 6,276 6,676 Non-cash operating activities: ROU assets obtained in exchange for lease liabilities (1) $ 6,042 $ 15,387 $ 26,484 Non-cash investing activities: Unpaid purchases of property and equipment $ — $ 2,053 $ 6,686 Settlement of promissory note receivable in connection with business combination — 5,100 — Non-cash financing activities: Unsettled common stock proceeds from option exercises $ 694 $ 3,011 $ 14 Fair value of common stock received for payment of stock option exercise price — 1,616 — Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 745,250 $ 641,447 $ 567,687 Restricted cash 3,127 3,557 388 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 748,377 $ 645,004 $ 568,075 |
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 June 2016, the (FASB) issued Accounting Standards Update (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 (Accounting Standards Codification (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 recognizes 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 considers relevant information about past events, current conditions, and reasonable and supportable forecasts. The Company’s adoption of this standard, effective December 29, 2019, did not have a material impact on its consolidated financial statements. In July 2019, the FASB issued 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 Securities and Exchange Commission 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 11 to these consolidated financial statements for additional disclosures required by ASC 842. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). The 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 and 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 specifies 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. The Company’s adoption of this standard, effective as of January 3, 2021, did not have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements. The standard provides updates for technical corrections, clarifications to guidance, simplifications to wording or structure of guidance, and other minor improvements across various areas of accounting within GAAP. ASU No. 2020-10 is effective after December 15, 2020 on a retrospective basis. Early adoption is permitted. The Company’s adoption of this standard, effective as of January 3, 2021, did not have a material impact on its consolidated financial statements. In November 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (ASU 2021-08) . The standard requires companies to apply ASC 606 to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. This creates an exception to the general recognition and measurement principle in ASC 805. ASU 2021-08 is effective for annual reporting periods beginning after December 15, 2022, and for interim periods within those years, and should be adopted prospectively. Early adoption is permitted. The Company’s early adoption of this standard, effective January 3, 2021, did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (ASU 2020-04) . The standard provides temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. ASU 2020-04 is effective beginning on March 12, 2020, and the Company may elect to apply this standard prospectively through December 31, 2022. The relief is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. However, certain optional expedients can be applied to hedging relationships evaluated in periods after December 31, 2022. 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 January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (ASU 2021-01) . The standard clarified the scope and application of the original guidance. ASU No. 2021-01 is effective as of March 12, 2020 through December 31, 2022 and may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. 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 July 2021, the FASB issued ASU No. 2021-05, Leases (Topic 842), Lessors-Certain Leases with Variable Lease Payments (ASU 2021-05) . This standard amends the original ASU No. 2016-02 lease standard by requiring lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses at lease commencement if they were classified as sales-type. ASU 2021-05 is effective for annual reporting periods beginning after December 15, 2021, and for interim periods within those years, and may be adopted either prospectively or on a retrospective basis for leases that commenced or were modified after the date of initial adoption of ASC 842. Early adoption is permitt ed. The Company is adopting this standard prospectively, and is currently evaluating the expected impact of this standard on its consolidated financial statements. Upon adoption, the Company anticipates that, among other things, the classification of certain new leases for which the Company is the lessor will change from sales-type leases to operating leases when evaluated at the time of lease commencement. As a result, the equipment costs associated with such new operating leases will initially be deferred and subsequently amortized to expense over the term of the lease, rather than being immediately recognized upon lease commencement. Similarly, revenue associated with such new operating leases will be recognized over the term of the lease, rather than being immediately recognized on the date of the lease commencement. The Company currently expects to complete its assessment of the full financial impact of this new standard during the next three months. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Buildings and building improvements 7 to 39 years Computer equipment and software 2 to 12 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery, equipment and tooling 3 to 10 years Transportation, vehicles and other 4 to 20 years Property and equipment, net, consists of the following (in thousands): January 1, January 2, Building and building improvements $ 142,132 $ 122,310 Machinery, equipment and tooling 103,451 90,843 Land 57,027 57,151 Transportation, vehicles and other 33,082 33,175 Computer equipment and software 32,450 24,693 Leasehold improvements 21,894 19,295 Furniture and office equipment 14,200 13,567 Demonstration units 949 1,024 Construction-in-progress (CIP) 25,109 44,589 Total property and equipment 430,294 406,647 Accumulated depreciation (157,501) (134,136) Property and equipment, net $ 272,793 $ 272,511 |
Changes in Product Warranty Accrual | Changes in the product warranty accrual were as follows (in thousands): Year Ended January 1, January 2, December 28, Warranty accrual, beginning of period $ 2,740 $ 3,395 $ 1,910 Accrual for warranties issued 2,219 832 1,715 Changes in pre-existing warranties (including changes in estimates) (1,439) 196 1,130 Settlements made (1,033) (1,683) (1,360) Warranty accrual, end of period $ 2,487 $ 2,740 $ 3,395 |
Reconciliation of Basic Diluted Net Income Per Share | A computation of basic and diluted net income per share is as follows (in thousands, except per share data): Year Ended January 1, January 2, December 28, Net income: $ 229,647 $ 240,282 $ 196,216 Basic net income per share: Weighted-average shares outstanding - basic 55,166 54,700 53,434 Net income per basic share $ 4.16 $ 4.39 $ 3.67 Diluted net income per share: Weighted-average shares outstanding - basic 55,166 54,700 53,434 Diluted share equivalents: stock options, RSUs and PSUs 2,516 3,337 3,666 Weighted-average shares outstanding - diluted 57,682 58,037 57,100 Net income per diluted share $ 3.98 $ 4.14 $ 3.44 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories consist of the following (in thousands): January 1, January 2, Raw materials $ 128,319 $ 133,098 Work-in-process 17,140 15,985 Finished goods 55,911 66,869 Total Inventories $ 201,370 $ 215,952 |
Other Current Assets - (Tables)
Other Current Assets - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Non-Current Assets | Other current assets consist of the following (in thousands): January 1, January 2, Prepaid expenses $ 30,879 $ 30,235 Lease receivable, current 28,666 23,206 Indirect taxes receivable 12,847 14,545 Prepaid income taxes 7,009 14,782 Restricted cash (1) 3,041 3,397 Prepaid rebates and royalties 2,785 3,081 Customer notes receivable 2,410 2,283 Deposits to acquire noncontrolling interest (2) — 3,374 Other current assets 3,390 7,513 Total other current assets $ 91,027 $ 102,416 ______________ (1) Restricted cash includes funds received from the Bill and Melinda Gates Foundation. As the Company incurs costs associated with research and development related to this project, on a quarterly basis, the Company reclasses amounts from the grant to offset costs incurred. Other assets, long-term consist of the following (in thousands): January 1, January 2, Lessee ROU assets, net $ 30,486 $ 32,324 Strategic investments 13,830 8,002 Prepaid deposits 3,863 3,816 Other non-current assets 402 500 Total non-current assets $ 48,581 $ 44,642 |
Lease Receivable (Tables)
Lease Receivable (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Sales-Type Lease Receivable | Lease receivable consists of the following (in thousands): January 1, January 2, Lease receivable $ 102,609 $ 81,074 Allowance for credit loss (255) (202) Lease receivable, net 102,354 80,872 Less: current portion of lease receivable (28,666) (23,206) Lease receivable, noncurrent $ 73,688 $ 57,666 |
Sales-Type Lease, Lease Receivable, Maturity | As of January 1, 2022, estimated future maturities of customer sales-type lease receivables for each of the following fiscal years are as follows (in thousands): Fiscal year Amount 2022 $ 28,666 2023 24,297 2024 20,552 2025 14,428 2026 7,993 Thereafter 6,418 Total $ 102,354 |
Deferred Costs and Other Cont_2
Deferred Costs and Other Contract Assets - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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): January 1, January 2, Deferred commissions $ 11,878 $ 7,477 Prepaid contract allowances 8,598 7,336 Unbilled contract receivables 4,970 3,925 Equipment leased to customers, net 2,647 1,338 Deferred costs and other contract assets $ 28,093 $ 20,076 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows: Useful Lives Buildings and building improvements 7 to 39 years Computer equipment and software 2 to 12 years Demonstration units 3 years Furniture and office equipment 2 to 6 years Leasehold improvements Lesser of useful life or term of lease Machinery, equipment and tooling 3 to 10 years Transportation, vehicles and other 4 to 20 years Property and equipment, net, consists of the following (in thousands): January 1, January 2, Building and building improvements $ 142,132 $ 122,310 Machinery, equipment and tooling 103,451 90,843 Land 57,027 57,151 Transportation, vehicles and other 33,082 33,175 Computer equipment and software 32,450 24,693 Leasehold improvements 21,894 19,295 Furniture and office equipment 14,200 13,567 Demonstration units 949 1,024 Construction-in-progress (CIP) 25,109 44,589 Total property and equipment 430,294 406,647 Accumulated depreciation (157,501) (134,136) Property and equipment, net $ 272,793 $ 272,511 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Intangible assets, net, consist of the following (in thousands): January 1, January 2, Gross carrying amount Patents $ 31,513 $ 26,875 Acquired technologies 28,371 29,039 Customer relationships 24,624 24,666 Trademarks 12,210 11,708 Licenses 8,108 5,108 Licenses-related party 7,500 7,500 Other 6,203 5,693 Total gross carrying amount $ 118,529 $ 110,589 Accumulated amortization Patents $ (13,222) $ (10,763) Acquired technologies (7,668) (5,259) Customer relationships (7,381) (6,486) Trademarks (6,127) (3,999) Licenses-related party (5,969) (5,594) Licenses (1,975) (1,247) Other (3,685) (3,318) Total accumulated amortization (46,027) (36,666) Net carrying amount $ 72,502 $ 73,923 |
Estimated Amortization Expense | Estimated amortization expense for each of the next fiscal years is as follows (in thousands): Fiscal year Amount 2022 $ 8,242 2023 8,138 2024 7,674 2025 6,864 2026 5,930 Thereafter 35,654 Total $ 72,502 |
Goodwill - (Tables)
Goodwill - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Changes in goodwill were as follows (in thousands): January 1, January 2, Goodwill, beginning of period $ 103,206 $ 22,350 Increase from business combinations — 79,862 Foreign currency translation and other adjustments (2,872) 994 Goodwill, end of period $ 100,334 $ 103,206 |
Lessee ROU Assets and Lease L_2
Lessee ROU Assets and Lease Liabilities (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Leases [Abstract] | |
Lessee Operating Lease Balance Sheet Classification | The balance sheet classifications for amounts related to the Company’s operating leases for which it is the lessee are as follows (in thousands): Balance sheet classification January 1, January 2, Lessee ROU assets, net Other non-current assets $ 30,486 $ 32,324 Lessee current lease liabilities Other current liabilities 6,371 5,975 Lessee non-current lease liabilities Other non-current liabilities 26,290 28,373 Total operating lease liabilities $ 32,661 $ 34,348 |
Lessee, Operating Lease, Liability, Maturity | As of January 1, 2022, estimated future operating lease payments for each of the following fiscal years were as follows (in thousands): Fiscal year Amount 2022 $ 7,411 2023 6,685 2024 5,235 2025 3,991 2026 2,804 Thereafter (1) 9,442 Total 35,568 Imputed interest (2,907) Present value $ 32,661 ______________ (1) Includes optional renewal period for certain leases. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Other Assets, Noncurrent [Abstract] | |
Schedule of Other Non-Current Assets | Other current assets consist of the following (in thousands): January 1, January 2, Prepaid expenses $ 30,879 $ 30,235 Lease receivable, current 28,666 23,206 Indirect taxes receivable 12,847 14,545 Prepaid income taxes 7,009 14,782 Restricted cash (1) 3,041 3,397 Prepaid rebates and royalties 2,785 3,081 Customer notes receivable 2,410 2,283 Deposits to acquire noncontrolling interest (2) — 3,374 Other current assets 3,390 7,513 Total other current assets $ 91,027 $ 102,416 ______________ (1) Restricted cash includes funds received from the Bill and Melinda Gates Foundation. As the Company incurs costs associated with research and development related to this project, on a quarterly basis, the Company reclasses amounts from the grant to offset costs incurred. Other assets, long-term consist of the following (in thousands): January 1, January 2, Lessee ROU assets, net $ 30,486 $ 32,324 Strategic investments 13,830 8,002 Prepaid deposits 3,863 3,816 Other non-current assets 402 500 Total non-current assets $ 48,581 $ 44,642 |
Deferred Revenue and Other Co_2
Deferred Revenue and Other Contract Liabilities - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue, by Arrangement, Disclosure | Deferred revenue and other contract liabilities consist of the following (in thousands): January 1, January 2, Deferred revenue $ 35,127 $ 33,221 Accrued rebates and allowances 13,628 12,127 Accrued customer reimbursements 7,424 3,829 Total deferred revenue and other contract liabilities 56,179 49,177 Less: Non-current portion of deferred revenue (5,302) (4,242) Deferred revenue and other contract liabilities - current $ 50,877 $ 44,935 |
Schedule of Deferred Revenue | Changes in deferred revenue for the year ended January 1, 2022 were as follows: Amount Deferred revenue, beginning of the period $ 33,221 Revenue deferred during the period 31,133 Recognition of revenue deferred in prior periods (29,227) Deferred revenue, end of the period $ 35,127 |
Other Current Liabilities - (Ta
Other Current Liabilities - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consist of the following (in thousands): January 1, January 2, Accrued indirect taxes payable $ 16,302 $ 14,365 Accrued expenses 12,061 6,794 Income tax payable 11,996 5,910 Accrued legal fees 7,136 4,058 Lessee lease liabilities, current 6,371 5,975 Related party payables 5,618 3,655 Accrued warranty 2,487 2,740 Accrued property taxes 1,989 1,682 Accrued donations 1,707 495 Noncontrolling interest (1) — 3,469 Other current liabilities 4,730 4,096 Total other current liabilities $ 70,397 $ 53,239 ______________ |
Other Non-Current Liabilities -
Other Non-Current Liabilities - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Components of Other Non-Current Liabilities | Other non-current liabilities consist of the following (in thousands): January 1, January 2, Lessee non-current lease liabilities $ 26,290 $ 28,373 Income tax payable, non-current 16,980 19,245 Unrecognized tax benefits 14,864 11,777 Deferred tax liabilities 5,112 6,247 Other non-current liabilities 5,783 5,434 Total other non-current liabilities $ 69,029 $ 71,076 |
Stock Repurchase Program - (Tab
Stock Repurchase Program - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Equity [Abstract] | |
Schedule of Stock by Class | The following table provides a summary of the Company’s stock repurchase activities during the years ended January 1, 2022, January 2, 2021 and December 28, 2019 (in thousands, except per share amounts): Years Ended January 1, January 2, December 28, Shares repurchased 546 (1) 456 (1) 275 Average cost per share $ 235.88 $ 242.40 $ 136.61 Value of shares repurchased 128,919 $ 110,540 $ 37,554 ______________ (1) Excludes shares withheld from the shares of its common stock actually issued in connection with the vesting of PSU or RSU awards to satisfy certain U.S. federal and state tax withholding obligations. |
Stock-Based Compensation - (Tab
Stock-Based Compensation - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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 weighted-average exercise prices): Year Ended Year Ended Year Ended Shares Average Shares Average Shares Average Options outstanding, beginning of period 3,448 $ 77.44 5,212 $ 54.23 5,676 $ 43.61 Granted 85 250.15 400 187.83 545 140.56 Canceled/Forfeited (171) 149.11 (219) 126.98 (158) 83.14 Exercised (391) 53.55 (1,945) 32.41 (851) 33.32 Options outstanding, end of period 2,971 $ 81.38 3,448 $ 77.44 5,212 $ 54.23 Options exercisable, end of period 2,175 $ 57.09 2,026 $ 47.31 3,311 $ 33.80 |
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 Options Outstanding Options Range of Exercise Prices Number of Average Number of Number of Average Number of $15.00 to $50.00 1,426 3.33 1,426 1,696 4.14 1,518 $50.01 to $80.00 31 4.75 29 42 5.80 26 $80.01 to $120.00 805 5.81 544 910 6.83 408 $120.01 to $160.00 356 7.36 124 476 8.41 74 $160.01 to $200.00 226 8.18 41 255 9.17 — $200.01 to $230.00 29 8.54 5 37 9.50 — $230.01 to $280.00 98 8.97 6 32 9.53 — Total 2,971 5.11 2,175 3,448 5.90 2,026 |
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 2,862 $ 99.66 2,797 $ 96.85 2,707 $ 95.54 Granted 112 257.43 98 193.77 100 133.57 Canceled/Forfeited (23) 204.33 (6) 165.03 (3) 133.50 Vested (35) 163.71 (27) 134.78 (7) 99.05 RSUs outstanding, end of period 2,916 $ 104.13 2,862 $ 99.66 2,797 $ 96.85 |
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 444 $ 120.28 412 $ 102.22 313 $ 88.34 Granted 148 (1) 250.73 97 179.42 128 133.50 Canceled/Forfeited (17) 166.84 (7) 122.13 — — Vested (272) 86.95 (58) 90.69 (29) 90.69 PSUs outstanding, end of period 303 $ 168.68 444 $ 120.28 412 $ 102.22 (1) On February 22, 2021, the Audit Committee approved the weighted payout percentage for the 2018 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2020 performance against pre-established performance objectives. Included in the granted amount are those additional PSUs earned based on actual performance achieved. These PSUs were originally awarded at target. |
Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant | The range of assumptions used and the resulting weighted-average fair value of options granted at the date of grant were as follows: Year Ended Year Ended Year Ended Risk-free interest rate 0.3% to 0.9% 0.2% to 1.7% 1.4% to 2.6% Expected term 5.1 years to 5.6 years 5.1 years to 5.1 years 5.1 years to 5.2 years Estimated volatility 30.9% to 34.7% 26.9% to 35.5% 28.2% to 30.0% Expected dividends 0% 0% 0% Weighted-average fair value of options granted $75.72 per share $51.10 per share $42.29 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 $ 839 $ 714 $ 445 Selling, general and administrative 31,315 31,462 30,450 Research and development 12,470 10,049 8,340 Total $ 44,624 $ 42,225 $ 39,235 |
Non-operating Income - (Tables)
Non-operating Income - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Non-operating Income (Expense) | Non-operating income consists of the following (in thousands): Year Ended Year Ended Year Ended Interest income $ 936 $ 5,534 $ 13,917 Realized and unrealized foreign currency (loss) gain (1,863) 2,631 (627) Interest expense (355) (338) (328) Other (160) 86 (12) Total non-operating (loss) income $ (1,442) $ 7,913 $ 12,950 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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 $ 221,225 $ 214,816 $ 181,664 Foreign 53,155 48,920 52,502 Total $ 274,380 $ 263,736 $ 234,166 |
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 $ 38,166 $ 13,901 $ 30,218 State 7,069 6,444 5,273 Foreign 14,584 8,073 8,424 Subtotal $ 59,819 $ 28,418 $ 43,915 Deferred: Federal $ (4,884) $ 1,354 $ (3,732) State (6,054) (6,191) (1,985) Foreign (4,148) (127) (248) Subtotal (15,086) (4,964) (5,965) Total $ 44,733 $ 23,454 $ 37,950 |
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 % 21.0 % State provision, net of federal benefit 0.3 0.1 1.1 Nondeductible executive compensation 2.1 1.8 2.1 Research and development tax credits (1.8) (2.2) (1.1) Foreign income taxed at different rates (0.3) (1.0) (1.7) U.S. tax on foreign income, net 0.9 1.0 0.1 Excess stock-based compensation (5.5) (10.4) (6.0) Derecognition of uncertain tax position (1.0) (2.2) — Other 0.6 0.8 0.7 Total 16.3 % 8.9 % 16.2 % |
Components of Deferred Tax Assets | The components of the deferred tax assets are as follows (in thousands): January 1, January 2, Deferred tax assets: Deferred revenue $ 26,139 $ 19,769 Net operating losses 9,494 19,140 Accrued liabilities 19,165 16,534 Tax credits 13,079 9,398 Stock-based compensation 8,919 8,385 Operating lease assets 5,696 5,782 Other — — Total 82,492 79,008 Valuation allowance (6,524) (15,660) Total deferred tax assets $ 75,968 $ 63,348 Deferred tax liabilities: Property and equipment $ (12,966) $ (12,818) Acquired intangibles (2,649) (5,465) Operating lease liabilities (5,436) (5,429) Withholding taxes on undistributed foreign earnings (2,829) (3,108) State taxes and other (4,265) (2,302) Other (440) (1,110) Total deferred tax liabilities (28,585) (30,232) Net deferred tax assets $ 47,383 $ 33,116 |
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 $ 18,005 $ 17,009 Increase from tax positions in prior period 543 471 Decrease from tax position in prior period (850) — Increase from tax positions in current period 7,019 6,565 Lapse of statute of limitations (3,069) (6,040) Unrecognized tax benefits (gross), end of period $ 21,648 $ 18,005 |
Segment Information and Enter_2
Segment Information and Enterprise Reporting - (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
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.) $ 822,410 66.4 % $ 763,069 66.7 % $ 636,371 68.0 % Europe, Middle East and Africa 251,839 20.3 238,681 20.9 183,363 19.6 Asia and Australia 123,595 10.0 103,756 9.1 87,961 9.4 North and South America (excluding U.S.) 41,309 3.3 38,238 3.3 28,713 3.0 Total product revenue $ 1,239,153 100.0 % $ 1,143,744 100.0 % $ 936,408 100.0 % |
Long-lived Assets by Geographic Areas | 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 $ 239,394 86.9 % $ 238,094 86.9 % $ 216,650 98.5 % International 36,046 13.1 35,755 13.1 3,276 1.5 Total $ 275,440 100.0 % $ 273,849 100.0 % $ 219,926 100.0 % |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jan. 01, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data | The following tables contain selected unaudited consolidated statements of operations data for each quarter of 2021 and 2020 (in thousands, except per share data): Quarters Ended Fiscal 2021 April 3, July 3, October 2, January 1, Total revenue $ 299,043 $ 305,118 $ 307,414 $ 327,578 Gross profit 196,875 192,912 203,664 214,896 Operating income 65,664 65,136 67,611 77,411 Net income 53,375 50,235 57,771 68,258 Net income per share Basic (1) $ 0.97 $ 0.91 $ 1.05 $ 1.23 Diluted (1) $ 0.92 $ 0.88 $ 1.00 $ 1.18 Quarters Ended Fiscal 2020 March 28, June 27, September 26, January 2, Total revenue $ 269,625 $ 300,953 $ 278,112 $ 295,054 Gross profit 185,629 191,584 178,926 186,926 Operating income 69,010 62,220 59,698 64,895 Net income 64,456 55,772 49,405 70,649 Net income per share Basic (1) $ 1.20 $ 1.02 $ 0.90 $ 1.28 Diluted (1) $ 1.12 $ 0.96 $ 0.85 $ 1.21 ______________ (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. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fair Value Hierarchy for Financial Assets (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 745,250 | $ 641,447 | $ 567,687 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Useful Life (Details) | 12 Months Ended |
Jan. 01, 2022 | |
Building and building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Building and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 39 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 12 years |
Demonstration units | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Furniture and office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Furniture and office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 6 years |
Machinery, equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Machinery, equipment and tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Transportation, vehicles and other | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 4 years |
Air Transportation Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2022USD ($)segmentshares | Jan. 02, 2021USD ($)shares | Dec. 28, 2019USD ($)shares | Dec. 30, 2018USD ($) | Dec. 29, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of Sources of Product Revenue | segment | 4 | ||||
Royalty Revenue, Number of Days Royalty Revenue is Adjusted Subsequent to Quarter End | 60 days | ||||
Royalty | $ 0 | $ 0 | $ 700 | ||
Advertising costs | $ 9,000 | $ 30,800 | $ 14,000 | ||
Options to purchase of shares of common stock | shares | 200 | 400 | 400 | ||
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 | ||||
Retained earnings | $ 1,570,862 | $ 1,341,215 | |||
Research and development | 137,234 | 118,659 | $ 93,295 | ||
Grant Contract Reimbursement | $ 600 | $ 300 | $ 600 | ||
Minimum | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
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] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years | ||||
Warranty period for defects in material and workmanship | 48 months | ||||
Grant Contract Reimbursement | $ 4,400 | ||||
Restricted Stock Units (RSUs) | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Weighted average shares contingently issuable | shares | 112 | 98 | 100 | ||
Restricted Stock Units (RSUs) | Chief Executive Officer | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Weighted average shares contingently issuable | shares | 2,700 | 2,700 | 2,700 | ||
Retained Earnings | Accounting Standards Update 2016-02 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Retained earnings | $ 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 | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Warranty accrual, beginning of period | $ 2,740 | $ 3,395 | $ 1,910 |
Accrual for warranties issued | 2,219 | 832 | 1,715 |
Changes in pre-existing warranties (including changes in estimates) | (1,439) | (196) | (1,130) |
Settlements made | (1,033) | (1,683) | (1,360) |
Warranty accrual, end of period | $ 2,487 | $ 2,740 | $ 3,395 |
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 | ||||||||
Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Net income attributable to stockholders of Masimo Corporation: | ||||||||||
Net income | $ 229,647 | $ 240,282 | $ 196,216 | |||||||
Net Income (Loss) Attributable to Parent | $ 68,258 | $ 57,771 | $ 50,235 | $ 53,375 | $ 49,405 | $ 55,772 | $ 64,456 | |||
Basic net income per share: | ||||||||||
Weighted-average shares outstanding - basic | 55,166 | 54,700 | 53,434 | |||||||
Net income per basic share | $ 1.23 | $ 1.05 | $ 0.91 | $ 0.97 | $ 0.90 | $ 1.02 | $ 1.20 | $ 4.16 | $ 4.39 | $ 3.67 |
Diluted net income per share: | ||||||||||
Weighted-average shares outstanding - basic | 55,166 | 54,700 | 53,434 | |||||||
Diluted share equivalents: stock options and RSUs | 2,516 | 3,337 | 3,666 | |||||||
Weighted-average shares outstanding - diluted | 57,682 | 58,037 | 57,100 | |||||||
Net income per diluted share | $ 1.18 | $ 1 | $ 0.88 | $ 0.92 | $ 0.85 | $ 0.96 | $ 1.12 | $ 3.98 | $ 4.14 | $ 3.44 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies-Cash Flow Information (Details) - USD ($) | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash paid during the year for: | ||||
Interest expense | $ 285,000 | $ 270,000 | $ 211,000 | |
Income taxes | 43,947,000 | 39,491,000 | 42,270,000 | |
Operating lease liabilities | 7,306,000 | 6,276,000 | 6,676,000 | |
Non-cash investing activities: | ||||
ROU assets obtained in exchange for lease liabilities(1) | 6,042,000 | 15,387,000 | 26,484,000 | |
Unpaid purchases of property and equipment | 0 | 2,053,000 | 6,686,000 | |
Settlement of promissory note in connection with acquisition option exercise | 0 | 5,100,000 | 0 | |
Unsettled common stock proceeds from option exercises | 694,000 | 3,011,000 | 14,000 | |
Fair value of common stock received for payment of stock option exercise price | 0 | 1,616,000 | 0 | |
Cash and Cash Equivalents, at Carrying Value | 745,250,000 | 641,447,000 | 567,687,000 | |
Restricted cash | 3,127,000 | 3,557,000 | 388,000 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 748,377,000 | $ 645,004,000 | $ 568,075,000 | $ 552,641,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | Jul. 08, 2021USD ($) | Jan. 01, 2022USD ($)ft² | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Oct. 02, 2021USD ($) |
Minimum | |||||
Related Party Transaction [Line Items] | |||||
Minimum aggregate royalty payments | $ 5,000,000 | ||||
Cercacor Laboratories | |||||
Related Party Transaction [Line Items] | |||||
Minimum aggregate royalty payments | 13,500,000 | $ 13,300,000 | $ 12,100,000 | ||
Related Party Transaction, Other Revenues from Transactions with Related Party | 100,000 | 100,000 | 100,000 | ||
Payment for Administrative Fees | $ 300,000 | 300,000 | 200,000 | ||
Related Party Transaction, Date | Dec. 31, 2024 | ||||
Operating Leases, Income Statement, Lease and Sublease Revenue | 400,000 | ||||
Related Party Transaction, Due from (to) Related Party | $ 3,500,000 | 3,600,000 | |||
Sublease Income | $ 1,200,000 | 1,100,000 | |||
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 | ||||
Not for Profit Organization | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | $ 0 | 1,500,000 | 1,000,000 | ||
Like Minded Entertainment | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Due from (to) Related Party | 0 | 0 | |||
Related Party Transaction, Expenses from Transactions with Related Party | 100,000 | 3,500,000 | |||
Reimbursement Fee | Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 100,000 | $ 100,000 | $ 100,000 | ||
Like Minded Labs | |||||
Related Party Transaction [Line Items] | |||||
Finite-Lived License Agreements, Gross | $ 3,000,000 | ||||
Vantrix Corp | Purchase Commitment | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | $ 500,000 | ||||
Vantrix Corp | Options Held | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Purchases from Related Party | $ 1,100,000 |
Inventories - Components of Inv
Inventories - Components of Inventory (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 128,319 | $ 133,098 |
Work-in-process | 17,140 | 15,985 |
Finished goods | 55,911 | 66,869 |
Total Inventories | $ 201,370 | $ 215,952 |
Other Current Assets - (Details
Other Current Assets - (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 30,879 | $ 30,235 |
Lease receivable, current | 28,666 | 23,206 |
Indirect taxes receivable | 12,847 | 14,545 |
Prepaid income taxes | 7,009 | 14,782 |
Restricted cash(1) | 3,041 | 3,397 |
Prepaid rebates and royalties | 2,785 | 3,081 |
Customer notes receivable | 2,410 | 2,283 |
Deposits to acquire noncontrolling interest(2) | 0 | 3,374 |
Other current assets | 3,390 | 7,513 |
Total other current assets | $ 91,027 | $ 102,416 |
Lease Receivable (Details)
Lease Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Leases [Abstract] | ||
Operating Lease, Variable Lease Income | $ 59.4 | $ 42.6 |
Lease Receivable Sales-Type (De
Lease Receivable Sales-Type (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Leases [Abstract] | ||
Lease receivable | $ 102,609 | $ 81,074 |
Allowance for credit loss | 255 | 202 |
Lease receivable, net | 102,354 | 80,872 |
Lease receivable, current | 28,666 | 23,206 |
Lease receivable, noncurrent | $ 73,688 | $ 57,666 |
Lease Receivable Sales-Type Lea
Lease Receivable Sales-Type Lease, Maturity (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Leases [Abstract] | ||
Lease receivable, net | $ 102,354 | $ 80,872 |
2022 | 28,666 | |
2023 | 24,297 | |
2024 | 20,552 | |
2025 | 14,428 | |
2026 | 7,993 | |
Thereafter | $ 6,418 |
Deferred Costs and Other Cont_3
Deferred Costs and Other Contract Assets - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred commissions | $ 11,878 | $ 7,477 | |
Prepaid contract allowances | 8,598 | 7,336 | |
Unbilled contract receivables | 4,970 | 3,925 | |
Equipment leased to customers, net | 2,647 | 1,338 | |
Deferred costs and other contract assets | 28,093 | 20,076 | |
Deferred Cost of Goods Sold, Amortization | 500 | 400 | $ 1,000 |
Deferred Cost of Goods Sold, Accumulated Amortization | $ 500 | $ 900 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 430,294 | $ 406,647 |
Accumulated depreciation | (157,501) | (134,136) |
Property and equipment, net | 272,793 | 272,511 |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 142,132 | 122,310 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 103,451 | 90,843 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 57,027 | 57,151 |
Transportation, vehicles and other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 33,082 | 33,175 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 32,450 | 24,693 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 21,894 | 19,295 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,200 | 13,567 |
Demonstration units | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 949 | 1,024 |
Construction-in-progress (CIP) | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 25,109 | $ 44,589 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) $ in Millions, $ in Millions | Feb. 14, 2022CAD ($) | Jan. 01, 2022USD ($) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Mar. 16, 2022USD ($) | Feb. 14, 2022USD ($) |
Property, Plant and Equipment [Line Items] | ||||||
Depreciation | $ 25.3 | $ 21.8 | $ 19.1 | |||
Subsequent Event | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, Plant and Equipment, Additions | $ 123 | |||||
Escrow Deposit | $ 20 | $ 1 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 27, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | |
Cost | |||
Total gross carrying amount | $ 118,529 | $ 110,589 | |
Accumulated amortization | |||
Accumulated amortization | (46,027) | (36,666) | |
Total | 72,502 | 73,923 | |
Patents | |||
Cost | |||
Total gross carrying amount | 31,513 | 26,875 | |
Accumulated amortization | |||
Accumulated amortization | (13,222) | (10,763) | |
Acquired technologies | |||
Cost | |||
Total gross carrying amount | 28,371 | 29,039 | |
Accumulated amortization | |||
Accumulated amortization | (7,668) | (5,259) | |
Acquired technologies | TNI Medical AG Acquisition [Member] | |||
Accumulated amortization | |||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | $ 6,300 | ||
Customer relationships | |||
Cost | |||
Total gross carrying amount | 24,624 | 24,666 | |
Accumulated amortization | |||
Accumulated amortization | (7,381) | (6,486) | |
Customer relationships | TNI Medical AG Acquisition [Member] | |||
Accumulated amortization | |||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 400 | ||
Trademarks | |||
Cost | |||
Total gross carrying amount | 12,210 | 11,708 | |
Accumulated amortization | |||
Accumulated amortization | (6,127) | (3,999) | |
Trademarks | TNI Medical AG Acquisition [Member] | |||
Accumulated amortization | |||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 2,400 | ||
License | |||
Cost | |||
Total gross carrying amount | 8,108 | 5,108 | |
Accumulated amortization | |||
Accumulated amortization | (1,975) | (1,247) | |
Licenses-related party | |||
Cost | |||
Total gross carrying amount | 7,500 | 7,500 | |
Accumulated amortization | |||
Accumulated amortization | (5,969) | (5,594) | |
Other | |||
Cost | |||
Total gross carrying amount | 6,203 | 5,693 | |
Accumulated amortization | |||
Accumulated amortization | $ (3,685) | $ (3,318) | |
Other | TNI Medical AG Acquisition [Member] | |||
Accumulated amortization | |||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | $ 300 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 02, 2021 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |||||
Accumulated Amortization | $ 36,666 | $ 46,027 | $ 36,666 | |||
Cost of patents, Gross | 8,200 | 9,000 | 8,200 | |||
Cost of trademarks, Gross | 900 | 1,000 | 900 | |||
Patents | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | 10,763 | $ 13,222 | 10,763 | |||
Weighted average number of years until the next renewal | 2 years | |||||
Acquired technologies | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | 5,259 | $ 7,668 | 5,259 | |||
Acquired technologies | LiDCO Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 14,000 | |||||
Acquired technologies | Connected Care Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | $ 2,600 | |||||
Acquired technologies | TNI Medical AG Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | $ 6,300 | |||||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | 6,486 | 7,381 | 6,486 | |||
Customer relationships | LiDCO Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 1,000 | |||||
Customer relationships | Connected Care Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 15,500 | |||||
Customer relationships | TNI Medical AG Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 400 | |||||
Trademarks | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | 3,999 | $ 6,127 | 3,999 | |||
Weighted average number of years until the next renewal | 3 years | |||||
Trademarks | LiDCO Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 2,300 | |||||
Trademarks | Connected Care Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | $ 1,700 | |||||
Trademarks | TNI Medical AG Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 2,400 | |||||
Other | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | 3,318 | $ 3,685 | 3,318 | |||
Other | LiDCO Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | 1,000 | |||||
Other | TNI Medical AG Acquisition [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwill | $ 300 | |||||
Patents And Trademarks | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Accumulated Amortization | $ 7,500 | 10,300 | 7,500 | $ 4,400 | ||
Total renewal costs capitalized | $ 1,500 | $ 1,300 |
Intangible Assets - Estimated A
Intangible Assets - Estimated Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 8,242 | |
2023 | 8,138 | |
2024 | 7,674 | |
2025 | 6,864 | |
2026 | 5,930 | |
Thereafter | 35,654 | |
Total | $ 72,502 | $ 73,923 |
Goodwill - Changes in Goodwill
Goodwill - Changes in Goodwill - (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 02, 2021 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | |
Goodwill [Line Items] | |||||
Increase from business combinations | $ 0 | $ 79,862,000 | |||
Goodwill [Roll Forward] | |||||
Goodwill, beginning of period | $ 22,350,000 | 103,206,000 | 22,350,000 | ||
Increase from business combinations | 0 | 79,862,000 | |||
Foreign currency translation and other adjustments | (2,872,000) | 994,000 | |||
Goodwill, end of period | $ 103,206,000 | $ 100,334,000 | $ 103,206,000 | ||
LiDCO Acquisition [Member] | |||||
Goodwill [Line Items] | |||||
Increase from business combinations | 21,800,000 | ||||
Goodwill [Roll Forward] | |||||
Increase from business combinations | $ 21,800,000 | ||||
Connected Care Acquisition [Member] | |||||
Goodwill [Line Items] | |||||
Increase from business combinations | 31,400,000 | ||||
Goodwill [Roll Forward] | |||||
Increase from business combinations | $ 31,400,000 | ||||
TNI Medical AG Acquisition [Member] | |||||
Goodwill [Line Items] | |||||
Increase from business combinations | $ 26,700,000 | ||||
Goodwill [Roll Forward] | |||||
Increase from business combinations | $ 26,700,000 |
Lessee ROU Assets and Lease L_3
Lessee ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Lessor, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Renewal Term | 5 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 2.60% | |
Operating Lease, Right-of-Use Asset, Accumulated Amortization | $ 15,200 | $ 9,200 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 4 months 24 days | |
Lessee ROU assets, net | $ 30,486 | 32,324 |
Other Noncurrent Assets | ||
Lessor, Lease, Description [Line Items] | ||
Lessee ROU assets, net | $ 30,486 | $ 32,324 |
Buildings and building improvements | ||
Lessor, Lease, Description [Line Items] | ||
Lease Expiration Date | Feb. 1, 2031 | |
Equipment | ||
Lessor, Lease, Description [Line Items] | ||
Lease Expiration Date | Apr. 1, 2024 |
Lessee ROU Assets and Lease L_4
Lessee ROU Assets and Lease Liabilities Lessee Operating Lease Balance Sheet Classification (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Leases [Abstract] | ||
Lessee ROU assets, net | $ 30,486 | $ 32,324 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current Liabilities | Other current Liabilities |
Lessee current lease liabilities | $ 6,371 | $ 5,975 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Lessee non-current lease liabilities | $ 26,290 | $ 28,373 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Total operating lease liabilities | $ 32,661 | $ 34,348 |
Lessee ROU Assets and Lease L_5
Lessee ROU Assets and Lease Liabilities Future Maturities Operating Lease Payments (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Leases [Abstract] | ||
2022 | $ 7,411 | |
2023 | 6,685 | |
2024 | 5,235 | |
2025 | 3,991 | |
2026 | 2,804 | |
Thereafter(1) | 9,442 | |
Total | 35,568 | |
Imputed interest | (2,907) | |
Present value | 32,661 | $ 34,348 |
Lessor, Lease, Description [Line Items] | ||
Total operating lease liabilities | 32,661 | $ 34,348 |
Other Liabilities | ||
Leases [Abstract] | ||
Present value | 32,661 | |
Lessor, Lease, Description [Line Items] | ||
Total operating lease liabilities | $ 32,661 |
Lessee ROU Assets and Lease L_6
Lessee ROU Assets and Lease Liabilities Lease, Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Operating Lease, Cost | $ 8,200 | $ 6,900 | $ 6,800 |
Other Non-Current Assets - (Det
Other Non-Current Assets - (Details) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 |
Other Assets, Noncurrent [Abstract] | ||
Lessee ROU assets, net | $ 30,486,000 | $ 32,324,000 |
Strategic investments | 13,830,000 | 8,002,000 |
Prepaid deposits | 3,863,000 | 3,816,000 |
Nontrade Receivables, Noncurrent | 402,000 | 500,000 |
Other non-current assets | $ 48,581,000 | $ 44,642,000 |
Deferred Revenue and Other Co_3
Deferred Revenue and Other Contract Liabilities - (Details) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Deferred revenue | $ 35,127 | $ 33,221 |
Accrued rebates and allowances | 13,628 | 12,127 |
Accrued customer reimbursements | 7,424 | 3,829 |
Total deferred revenue and other contract liabilities | 56,179 | 49,177 |
Less: Non-current portion of deferred revenue | 5,302 | 4,242 |
Deferred revenue and other contract-related liabilities, current | 50,877 | $ 44,935 |
Unrecognized contract revenue | $ 1,165,100 |
Deferred Revenue and Other Co_4
Deferred Revenue and Other Contract Liabilities - Changes in Deferred Revenue - (Details) $ in Thousands | 12 Months Ended |
Jan. 01, 2022USD ($) | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Deferred revenue, beginning of the period | $ 33,221 |
Revenue deferred during the period | 31,133 |
Recognition of revenue deferred in prior periods | (29,227) |
Deferred revenue, end of the period | $ 35,127 |
Deferred Revenue and Other Co_5
Deferred Revenue and Other Contract Liabilities - Unrecognized Contract Revenue - (Details) $ in Thousands | Jan. 01, 2022USD ($) |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Unrecognized contract revenue | $ 1,165,100 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 day |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Unrecognized contract revenue | $ 318,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-02 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-02 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Other Current Liabilities - (De
Other Current Liabilities - (Details) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Accrued indirect taxes payable | $ 16,302,000 | $ 14,365,000 |
Accrued expenses | 12,061,000 | 6,794,000 |
Income tax payable | 11,996,000 | 5,910,000 |
Accrued legal fees | 7,136,000 | 4,058,000 |
Lessee lease liabilities, current | 6,371,000 | 5,975,000 |
Related party payables | 5,618,000 | 3,655,000 |
Accrued warranty | 2,487,000 | 2,740,000 |
Accrued property taxes | 1,989,000 | 1,682,000 |
Accrued Donations | 1,707,000 | 495,000 |
Noncontrolling interest(1) | 0 | 3,469,000 |
Other current liabilities | 4,730,000 | 4,096,000 |
Accrued and other liabilities | $ 70,397,000 | $ 53,239,000 |
Credit Facilities - (Details)
Credit Facilities - (Details) - USD ($) | Dec. 17, 2018 | Jan. 01, 2022 | Jan. 02, 2021 |
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 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities - (Detail) - USD ($) $ in Thousands | Jan. 01, 2022 | Jan. 02, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Leasee non-current lease liabilities | $ 26,290 | $ 28,373 |
Income tax payable, non-current | 16,980 | 19,245 |
Unrecognized tax benefits | 14,864 | 11,777 |
Deferred tax liabilities | 5,112 | 6,247 |
Other non-current liabilities | 5,783 | 5,434 |
Other non-current liabilities | $ 69,029 | $ 71,076 |
Stock Repurchase Program - (Det
Stock Repurchase Program - (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 36 Months Ended | |||||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Oct. 29, 2024 | Sep. 11, 2021 | Oct. 29, 2021 | Jul. 01, 2018 | |
Class of Stock [Line Items] | |||||||
Shares repurchased | 546,000 | 456,000 | 275,000 | 1,300,000 | |||
Average cost per share | $ 235.88 | $ 242.40 | $ 136.61 | ||||
Value of shares repurchased | $ 128,919 | $ 110,540 | $ 37,554 | ||||
2018 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 | ||||||
2021 Repurchase Program | Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 3,000,000 | ||||||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 3,000,000 | ||||||
Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Shares repurchased | 546,000 | 456,000 | 275,000 | ||||
Value of shares repurchased | $ 128,919 | $ 110,540 | $ 37,554 | ||||
Forecast [Member] | 2021 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 | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 44.6 | $ 42.2 | $ 39.2 | |
Common stock reserved for future issuance | 10,600,000 | |||
Weighted average remaining contractual term of options outstanding, years price below the market value | 5 years 1 month 6 days | 5 years 10 months 24 days | ||
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 | three years | three | three | |
Total fair market value of all vesting options | $ 15.2 | $ 15.1 | $ 14.2 | |
Aggregated intrinsic value of options outstanding | 628.1 | |||
Aggregated intrinsic value of options exercisable | 512.5 | |||
Aggregated intrinsic value of options exercised | 84.7 | 355.3 | 93.9 | |
Total income tax benefit recognized for share-based compensation expense | 16.4 | 30.4 | 15.7 | |
Employee Stock Option | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | 13 | 16.1 | 14.8 | |
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 27 | |||
Unrecognized share-based compensation related to unvested options granted, term | 5 years 1 month 6 days | |||
Restricted Stock Units (RSUs) | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 9 | $ 5.7 | $ 2.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,916,000 | 2,862,000 | 2,797,000 | 2,707,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 104.13 | $ 99.66 | $ 96.85 | $ 95.54 |
Weighted average shares contingently issuable | 112,000 | 98,000 | 100,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 257.43 | $ 193.77 | $ 133.57 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (23,000) | (6,000) | (3,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 204.33 | $ 165.03 | $ 133.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercised in Period | (35,000) | (27,000) | (7,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 163.71 | $ 134.78 | $ 99.05 | |
Unrecognized share-based compensation related to unvested options granted | $ 26.6 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 6 months | |||
Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 22.6 | $ 20.4 | $ 21.6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 303,000 | 444,000 | 412,000 | 313,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 168.68 | $ 120.28 | $ 102.22 | $ 88.34 |
Weighted average shares contingently issuable | 148,000 | 97,000 | 128,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 250.73 | $ 179.42 | $ 133.50 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (17,000) | (7,000) | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 166.84 | $ 122.13 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercised in Period | (272,000) | (58,000) | (29,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 86.95 | $ 90.69 | $ 90.69 | |
Unrecognized share-based compensation related to unvested options granted | $ 33.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 9 months 18 days | |||
2017 Equity Incentive Plan | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 2,500,000 | |||
Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Weighted average shares contingently issuable | 69,000 | 97,000 | 128,000 | |
Minimum | 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 | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Weighted average shares contingently issuable | 138,000 | 194,000 | 256,000 | |
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 | |||
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 | 7,500,000 | |||
2018 Grant | Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, range of percentage payout | 0.00% | |||
2018 Grant | Maximum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, range of percentage payout | 200.00% | |||
2019 Grant | Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, range of percentage payout | 0.00% | |||
2019 Grant | Maximum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, range of percentage payout | 200.00% | |||
2020 Grant | Minimum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, range of percentage payout | 0.00% | |||
2020 Grant | Maximum | Performance Shares | ||||
Schedule Of Share Based Compensation Arrangements [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, range of percentage payout | 200.00% |
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 | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, beginning of period | 3,448 | 5,212 | 5,676 |
Granted | 85 | 400 | 545 |
Canceled/Forfeited | (171) | (219) | (158) |
Exercised | (391) | (1,945) | (851) |
Options outstanding, end of period | 2,971 | 3,448 | 5,212 |
Options exercisable, end of period | 2,175 | 2,026 | 3,311 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Average Exercise Price, Options outstanding, beginning of period | $ 77.44 | $ 54.23 | $ 43.61 |
Average Exercise Price, Granted | 250.15 | 187.83 | 140.56 |
Average Exercise Price, Canceled | 149.11 | 126.98 | 83.14 |
Average Exercise Price, Exercised | 53.55 | 32.41 | 33.32 |
Average Exercise Price, Options outstanding, end of period | 81.38 | 77.44 | 54.23 |
Average Exercise Price, Options exercisable, end of period | $ 57.09 | $ 47.31 | $ 33.80 |
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 | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | |||
Risk-free interest rate, minimum | 0.30% | 0.20% | 1.40% |
Risk-free interest rate, maximum | 0.90% | 1.70% | 2.60% |
Estimated volatility, minimum | 30.90% | 26.90% | 28.20% |
Estimated volatility, maximum | 34.70% | 35.50% | 30.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of options granted | $ 75.72 | $ 51.10 | $ 42.29 |
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 1 month 6 days | 5 years 1 month 6 days |
Maximum | |||
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant | |||
Expected term, years | 5 years 7 months 6 days | 5 years 1 month 6 days | 5 years 2 months 12 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 | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 44,600 | $ 42,200 | $ 39,200 |
Cost of goods sold | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Stock-based compensation | 839 | 714 | 445 |
Selling, general and administrative | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Stock-based compensation | 31,315 | 31,462 | 30,450 |
Research and development | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Stock-based compensation | 12,470 | 10,049 | 8,340 |
Employee Stock Option | |||
Schedule Of Share Based Compensation Arrangements [Line Items] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 13,000 | $ 16,100 | $ 14,800 |
Stock-Based Compensation - Nu_2
Stock-Based Compensation - Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Detail) - $ / shares | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Number of Options, Options Outstanding | 2,971,000 | 3,448,000 | 5,212,000 | 5,676,000 |
Average Remaining Contractual Life, Options Outstanding | 5 years 1 month 9 days | 5 years 10 months 24 days | ||
Number of Options, Options Exercisable | 2,175,000 | 2,026,000 | 3,311,000 | |
$15.00 to $50.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 15 | |||
Range of Exercise Prices, Upper | $ 50 | |||
Number of Options, Options Outstanding | 1,426,000 | 1,696,000 | ||
Average Remaining Contractual Life, Options Outstanding | 3 years 3 months 29 days | 4 years 1 month 20 days | ||
Number of Options, Options Exercisable | 1,426,000 | 1,518,000 | ||
$50.01 to $80.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 50.01 | |||
Range of Exercise Prices, Upper | $ 80 | |||
Number of Options, Options Outstanding | 31,000 | 42,000 | ||
Average Remaining Contractual Life, Options Outstanding | 4 years 9 months | 5 years 9 months 18 days | ||
Number of Options, Options Exercisable | 29,000 | 26,000 | ||
$80.01 to $120.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 80.01 | |||
Range of Exercise Prices, Upper | $ 120 | |||
Number of Options, Options Outstanding | 805,000 | 910,000 | ||
Average Remaining Contractual Life, Options Outstanding | 5 years 9 months 21 days | 6 years 9 months 29 days | ||
Number of Options, Options Exercisable | 544,000 | 408,000 | ||
$120.01 to $160.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 120.01 | |||
Range of Exercise Prices, Upper | $ 160 | |||
Number of Options, Options Outstanding | 356,000 | 476,000 | ||
Average Remaining Contractual Life, Options Outstanding | 7 years 4 months 9 days | 8 years 4 months 28 days | ||
Number of Options, Options Exercisable | 124,000 | 74,000 | ||
$160.01 to $200.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 160.01 | |||
Range of Exercise Prices, Upper | $ 200 | |||
Number of Options, Options Outstanding | 226,000 | 255,000 | ||
Average Remaining Contractual Life, Options Outstanding | 8 years 2 months 4 days | 9 years 2 months 1 day | ||
Number of Options, Options Exercisable | 41,000 | 0 | ||
$200.01 to $230.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 200.01 | |||
Range of Exercise Prices, Upper | $ 230 | |||
Number of Options, Options Outstanding | 29,000 | 37,000 | ||
Average Remaining Contractual Life, Options Outstanding | 8 years 6 months 14 days | 9 years 6 months | ||
Number of Options, Options Exercisable | 5,000 | 0 | ||
$230.01 to $275.00 | ||||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower | $ 230.01 | |||
Range of Exercise Prices, Upper | $ 280 | |||
Number of Options, Options Outstanding | 98,000 | 32,000 | ||
Average Remaining Contractual Life, Options Outstanding | 8 years 11 months 19 days | 9 years 6 months 10 days | ||
Number of Options, Options Exercisable | 6,000 | 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 | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs outstanding, beginning of period | 2,862 | 2,797 | 2,707 | |
Granted | 112 | 98 | 100 | |
Granted, Fair Value | $ 257.43 | $ 193.77 | $ 133.57 | |
Expired | 23 | 6 | 3 | |
Expired, Fair Value | $ (204.33) | $ (165.03) | $ (133.50) | |
Vested | 35 | 27 | 7 | |
Vested, Fair Value | $ 163.71 | $ 134.78 | $ 99.05 | |
RSUs outstanding, end of period | 2,916 | 2,862 | 2,797 | |
RSUs outstanding, end of period, fair value | $ 104.13 | $ 99.66 | $ 96.85 | $ 95.54 |
Non-operating Income - (Details
Non-operating Income - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Nonoperating Income (Expense) [Abstract] | |||
Interest income | $ 936 | $ 5,534 | $ 13,917 |
Realized and unrealized foreign currency (loss) gain | (1,863) | 2,631 | (627) |
Interest expense | (355) | (338) | (328) |
Other | 160 | (86) | 12 |
Non-operating (loss) income | $ (1,442) | $ 7,913 | $ 12,950 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 221,225 | $ 214,816 | $ 181,664 |
Foreign | 53,155 | 48,920 | 52,502 |
Income before provision for income taxes | $ 274,380 | $ 263,736 | $ 234,166 |
Income Taxes - Current and Defe
Income Taxes - Current and Deferred Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Current: | |||
Federal | $ 38,166 | $ 13,901 | $ 30,218 |
State | 7,069 | 6,444 | 5,273 |
Foreign | 14,584 | 8,073 | 8,424 |
Total | 59,819 | 28,418 | 43,915 |
Deferred: | |||
Federal | (4,884) | 1,354 | (3,732) |
State | (6,054) | (6,191) | (1,985) |
Foreign | (4,148) | (127) | (248) |
Total, Deferred Income Tax Expense (Benefit) | (15,086) | (4,964) | (5,965) |
Income Tax Expense (Benefit) | $ 44,733 | $ 23,454 | $ 37,950 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Taxes [Line Items] | |||
Tax and accrued interest related to uncertain tax positions | $ (3,600,000) | $ (200,000) | $ 1,800,000 |
Effective tax rate | 16.30% | 8.90% | 16.20% |
Statutory regular federal income tax rate | 21.00% | 21.00% | 21.00% |
Tax Adjustments, Settlements, and Unusual Provisions | $ 900,000 | ||
Undistributed Earnings of Foreign Subsidiaries | $ 267,100,000 | ||
Tax Cuts and Jobs Act, Deferred Tax Liability, Undistributed Foreign Earnings | 86,500,000 | ||
Tax Cuts and Jobs Act, Deferred Tax Liability, Foreign Withholding Tax | 1,600,000 | ||
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 180,600,000 | ||
Tax Cuts and Jobs Act, Unrecognized Deferred Tax Liability, Potential Foreign Withholding Tax | 8,600,000 | ||
Indefinitely carryforward research and development credits | 19,200,000 | ||
Investment Tax Credit | 300,000 | ||
Foreign Tax Expense (Benefit), Business and Employment Actions | $ 1,000,000 | 900,000 | |
Earnings Per Share, Diluted, Effect of Foreign Tax Benefit Relating to Business and Employment Actions | $ 0.02 | $ 0.02 | |
Amount of unrecognized benefits affecting future tax rate | $ 19,800,000 | $ 16,300,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 100,000 | 500,000 | $ 800,000 |
Penalties and interest related to unrecognized tax benefits | 800,000 | 700,000 | |
Deferred Tax Assets, Valuation Allowance | 6,524,000 | $ 15,660,000 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 9,100,000 | ||
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, gross | 1,600,000 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, gross | 2,900,000 | ||
Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating loss carryforwards, gross | $ 29,200,000 |
Income Taxes - Deferred Tax Pro
Income Taxes - Deferred Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Total, Deferred Income Tax Expense (Benefit) | $ (15,086) | $ (4,964) | $ (5,965) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Detail) | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory regular federal income tax rate | 21.00% | 21.00% | 21.00% |
State provision, net of federal benefit | 0.30% | 0.10% | 1.10% |
Nondeductible executive compensation | 2.10% | 1.80% | 2.10% |
Research and development tax credits | 1.80% | 2.20% | 1.10% |
Foreign income taxed at different rates | (0.30%) | (1.00%) | (1.70%) |
U.S. tax on foreign income, net | 0.90% | 1.00% | 0.10% |
Excess stock-based compensation | (5.50%) | (10.40%) | (6.00%) |
Derecognition of uncertain tax position | (1.00%) | (2.20%) | 0.00% |
Other | (0.60%) | (0.80%) | (0.70%) |
Total | 16.30% | 8.90% | 16.20% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets (Detail) - USD ($) | Jan. 01, 2022 | Jan. 02, 2021 |
Deferred tax assets: | ||
Deferred revenue | $ 26,139,000 | $ 19,769,000 |
Net operating losses | 9,494,000 | 19,140,000 |
Accrued liabilities | 19,165,000 | 16,534,000 |
Tax credits | 13,079,000 | 9,398,000 |
Stock-based compensation | 8,919,000 | 8,385,000 |
Operating lease assets | 5,696,000 | 5,782,000 |
Other | 0 | 0 |
Total | 82,492,000 | 79,008,000 |
Valuation allowance | (6,524,000) | (15,660,000) |
Total deferred tax assets | 75,968,000 | 63,348,000 |
Deferred tax liabilities: | ||
Property and equipment | (12,966,000) | (12,818,000) |
Acquired intangibles | (2,649,000) | (5,465,000) |
Operating lease liabilities | 5,436,000 | 5,429,000 |
Withholding taxes on undistributed foreign earnings | (2,829,000) | (3,108,000) |
State taxes and other | 4,265,000 | 2,302,000 |
Other | (440,000) | (1,110,000) |
Total deferred tax liabilities | (28,585,000) | (30,232,000) |
Net deferred tax assets | $ 47,383,000 | $ 33,116,000 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Jan. 02, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized tax benefits (gross), beginning of period | $ 18,005 | $ 17,009 |
Increase from tax positions in prior period | 543 | 471 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (850) | 0 |
Increase from tax positions in current period | 7,019 | 6,565 |
Lapse of statute of limitations | (3,069) | (6,040) |
Unrecognized tax benefits (gross), end of period | $ 21,648 | $ 18,005 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information - (Detail) | Feb. 15, 2022USD ($) | Jan. 14, 2022USD ($) | Jan. 01, 2022USD ($)AgreementCustomer | Jul. 08, 2019USD ($) | Jul. 27, 2017 | Jan. 03, 2014USD ($) | Dec. 29, 2018USD ($) | Jan. 01, 2022USD ($)AgreementdistributorCustomer | Jan. 02, 2021USD ($)distributorCustomer | Dec. 28, 2019USD ($)distributor |
Contingencies And Commitments [Line Items] | ||||||||||
Company contribution percentage based on employee contribution of up to 3% of employee's compensation | 3.00% | |||||||||
Company's contribution to employee retirement savings plan | $ 3,400,000 | $ 3,200,000 | $ 2,500,000 | |||||||
Severance plan participation agreements | Agreement | 5 | 5 | ||||||||
Supplemental Unemployment Benefits, Severance Benefits, Required Notice of Resignation | 6 months | |||||||||
Purchase Commitment, Remaining Minimum Amount Committed | $ 5,000,000 | $ 5,000,000 | ||||||||
License fee, Change in Control | 2,500,000 | 2,500,000 | ||||||||
Royalty Guarantees, Commitments, Change in Control | 15,000,000 | 15,000,000 | ||||||||
Royalty Guarantees, Commitments, Additional, Change in Control | 2,000,000 | 2,000,000 | ||||||||
Remaining amount committed | 170,200,000 | 170,200,000 | ||||||||
Commitments and contingencies | ||||||||||
Cash and cash equivalents | 745,300,000 | 745,300,000 | ||||||||
Bank balance covered by Federal Deposit Insurance Corporation limit | $ 5,100,000 | $ 5,100,000 | ||||||||
ConcentrationRiskARCustomer | Customer | 1 | 1 | 1 | |||||||
Royalty Agreement | 1 | 1 | ||||||||
Royalty | $ 0 | $ 0 | $ 700,000 | |||||||
Loss Contingency, Damages Awarded, Value | $ 10,500,000 | |||||||||
Subsequent Event | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Long-term Purchase Commitment, Amount | $ 1,025,000,000 | |||||||||
Long-term Debt | $ 800,000,000 | |||||||||
Pulse oximetry products | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Percentage of Revenue - Customer Concentration | 51.90% | 49.30% | 55.30% | |||||||
Masimo vs Former Agency Tender | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Litigation awards, settlements/or defense costs | $ 10,500,000 | |||||||||
Proceeds from Legal Settlements | $ 2,000,000 | |||||||||
Masimo vs. Physicians Healthsource, Inc. | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Loss Contingency, Damages Sought | $ 500 | |||||||||
Unsecured Bank Guarantees | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Commitments and contingencies | $ 3,500,000 | $ 3,500,000 | ||||||||
Sales | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Number of just-in-time distributors | distributor | 2 | 2 | 2 | |||||||
Accounts Receivable | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Number of just-in-time distributors | distributor | 1 | 1 | ||||||||
Percentage of Accounts Receivable Balance | 15.70% | 15.70% | 9.10% | |||||||
Just in time distributor one | Revenue Benchmark | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Percentage Of Revenue Two Customer | 14.60% | 10.10% | 13.00% | |||||||
Just in time distributor one | Accounts Receivable | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Percentage Of Accounts Receivable Balance From Three Just In Time Distributors | 7.40% | 7.40% | 6.70% | |||||||
Just in time distributor two | Revenue Benchmark | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Percentage Of Revenue Two Customer | 9.60% | 11.50% | 11.10% | |||||||
Chief Executive Officer | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination | $ 292,900,000 | |||||||||
Chief Executive Officer | Subsequent Event | ||||||||||
Contingencies And Commitments [Line Items] | ||||||||||
Employment Agreement, Severance Benefits, Special Payment, Qualifying Termination | $ 664,300,000 | |||||||||
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 - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 1,239,153 | $ 1,143,744 | $ 936,408 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 100.00% | 100.00% | 100.00% |
Long-Lived Assets | $ 275,440 | $ 273,849 | $ 219,926 |
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 | $ 822,410 | $ 763,069 | $ 636,371 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 66.40% | 66.70% | 68.00% |
United States (U.S.) | Reportable Geographical Components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 239,394 | $ 238,094 | $ 216,650 |
Concentration Risk, Long-lived Asset Geographic Area, Percentage | 86.90% | 86.90% | 98.50% |
Europe, Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 251,839 | $ 238,681 | $ 183,363 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 20.30% | 20.90% | 19.60% |
Asia and Australia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 123,595 | $ 103,756 | $ 87,961 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 10.00% | 9.10% | 9.40% |
North and South America (excluding U.S.) | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Product | $ 41,309 | $ 38,238 | $ 28,713 |
Percentage Of Product Revenue Based On Geographic Area By Destination | 3.30% | 3.30% | 3.00% |
International | Reportable Geographical Components | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 36,046 | $ 35,755 | $ 3,276 |
Concentration Risk, Long-lived Asset Geographic Area, Percentage | 13.10% | 13.10% | 1.50% |
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 | ||||||||
Jan. 01, 2022 | Oct. 02, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Total revenue | $ 327,578 | $ 307,414 | $ 305,118 | $ 299,043 | $ 278,112 | $ 300,953 | $ 269,625 | $ 1,239,153 | $ 1,143,744 | $ 937,837 |
Gross profit | 214,896 | 203,664 | 192,912 | 196,875 | 178,926 | 191,584 | 185,629 | 808,347 | 743,065 | 629,172 |
Operating income | 77,411 | 67,611 | 65,136 | 65,664 | 59,698 | 62,220 | 69,010 | $ 275,822 | $ 255,823 | $ 221,216 |
Net income | $ 68,258 | $ 57,771 | $ 50,235 | $ 53,375 | $ 49,405 | $ 55,772 | $ 64,456 | |||
Net income per share attributable to Masimo Corporation stockholders: | ||||||||||
Basic | $ 1.23 | $ 1.05 | $ 0.91 | $ 0.97 | $ 0.90 | $ 1.02 | $ 1.20 | $ 4.16 | $ 4.39 | $ 3.67 |
Diluted | $ 1.18 | $ 1 | $ 0.88 | $ 0.92 | $ 0.85 | $ 0.96 | $ 1.12 | $ 3.98 | $ 4.14 | $ 3.44 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 01, 2022 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 2,437 | $ 1,805 | $ 2,206 | $ 1,535 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | (728) | (128) | (1,021) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (96) | (529) | (350) | |
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 | 165 | 1,222 | 700 | $ 432 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | (953) | (814) | (1,696) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (104) | $ (292) | $ (1,428) |