MASIMO CORP, 10-K filed on 2/25/2025
Annual Report
v3.25.0.1
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 28, 2024
Jan. 25, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-28    
Document Period End Date Dec. 28, 2024    
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    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 3.4
Entity Common Stock, Shares Outstanding   53,948,792  
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 2025 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 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000937556    
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Audit Information
 12 Months Ended
Dec. 28, 2024
Audit Information [Abstract]  
Auditor Name GRANT THORNTON LLP
Auditor Location Newport Beach, California
Auditor Firm ID 248
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CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Current assets    
Cash and cash equivalents $ 177.6 $ 163.0
Inventories 459.2 545.0
Asset held for sale 17.4 0.0
Other current assets 145.1 168.4
Total current assets 1,225.8 1,231.9
Lease receivable, non-current 58.7 71.4
Deferred costs and other contract assets 61.0 57.3
Property and equipment, net 381.6 424.4
Finite-lived intangible assets, net 350.9 419.9
Trademarks - (Note 9) 207.3 232.4
Goodwill 96.7 407.7
Deferred tax assets 143.6 107.2
Other non-current assets 100.1 89.3
Total assets 2,625.7 3,041.5
Current liabilities    
Accounts payable 252.8 251.5
Accrued compensation 83.6 62.6
Deferred revenue and other contract-related liabilities, current 95.5 87.3
Other current liabilities 185.8 162.4
Total current liabilities 617.7 563.8
Long-term debt 727.9 871.7
Deferred tax liabilities 100.1 111.7
Other non-current liabilities 128.1 129.5
Total liabilities 1,573.8 1,676.7
Commitments and contingencies - (Note 24)
Stockholders’ equity    
Preferred stock, $0.001 par value; 5.0 shares authorized; 0.0 shares issued and outstanding 0.0 0.0
Common stock, $0.001 par value; 100.0 shares authorized; 53.6 and 52.8 shares issued and outstanding at December 28, 2024 and December 30, 2023, respectively 0.1 0.1
Treasury stock, 19.5 and 19.5 shares at December 28, 2024 and December 30, 2023, respectively (1,169.2) (1,169.2)
Additional paid-in capital 838.3 783.4
Accumulated other comprehensive loss (108.2) (45.3)
Retained earnings 1,490.9 1,795.8
Total stockholders’ equity 1,051.9 1,364.8
Total liabilities and stockholders’ equity 2,625.7 3,041.5
Nonrelated Party    
Current assets    
Accounts receivable net current 411.3 348.2
Related Party    
Current assets    
Accounts receivable net current 15.2 7.3
Customer relationships    
Current assets    
Finite-lived intangible assets, net 157.6 177.7
Acquired technologies    
Current assets    
Finite-lived intangible assets, net 102.9 129.4
Other intangible assets, net    
Current assets    
Finite-lived intangible assets, net $ 90.4 $ 112.8
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
shares in Millions, $ in Millions
Dec. 28, 2024
Dec. 30, 2023
Statement of Financial Position [Abstract]    
Allowance for credit losses $ 5.2 $ 4.8
Preferred stock, par value (in dollars per share) $ 1.000 $ 1.000
Preferred stock, shares authorized (in shares) 5.0 5.0
Preferred stock, shares issued (in shares) 0.0 0.0
Preferred stock, shares outstanding (in shares) 0.0 0.0
Common stock, par value (in dollars per share) $ 1.000 $ 1.000
Common stock, shares authorized (in shares) 100.0 100.0
Common stock, shares, issued (in shares) 53.6 52.8
Common stock, shares, outstanding (in shares) 53.6 52.8
Treasury stock, shares (in shares) 19.5 19.5
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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Total revenue $ 2,094.4 $ 2,048.1 $ 2,035.8
Cost of goods sold 1,090.0 1,044.6 977.0
Gross profit 1,004.4 1,003.5 1,058.8
Operating expenses:      
Selling, general and administrative 743.8 664.0 657.4
Research and development 222.8 175.2 191.4
Litigation settlements 0.5 17.8 0.0
Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10) 304.0 10.0 0.0
Total operating expenses 1,271.1 867.0 848.8
Operating (loss) income (266.7) 136.5 210.0
Non-operating loss (38.6) (48.4) (16.6)
(Loss) income before provision for income taxes (305.3) 88.1 193.4
(Benefit) provision for income taxes (0.4) 6.6 49.9
Net (loss) income $ (304.9) $ 81.5 $ 143.5
Net (loss) income per share:      
Basic (in dollars per share) $ (5.72) $ 1.54 $ 2.68
Diluted (in dollars per share) $ (5.72) $ 1.51 $ 2.60
Weighted-average shares used in per share calculations:      
Basic (in shares) 53.3 52.8 53.6
Diluted (in shares) 53.3 54.1 55.2
Nonrelated Party      
Total revenue $ 1,980.3 $ 1,954.2 $ 1,932.8
Related Party      
Total revenue $ 114.1 $ 93.9 $ 103.0
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net (loss) income $ (304.9) $ 81.5 $ 143.5
Other comprehensive (loss) gain, net of tax:      
Unrealized (loss) gain from foreign currency translation adjustments (61.8) (45.1) 4.9
Net change in retirement obligations 0.2 (2.9) (2.6)
Unrealized (loss) gain on cash flow hedge [1] (1.3) (8.8) 14.7
Total comprehensive (loss) income $ (367.8) $ 24.7 $ 160.5
[1] See Note 17, “Derivative Instruments and Hedging Activities”, for further details.
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($)
$ in Millions
Total
Common Stock
Treasury Stock
Additional Paid-In Capital
Accumulated Other Comprehensive (Loss) Income
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 1,550.2 $ 0.1 $ (767.7) $ 752.5 $ (5.5) $ 1,570.8
Beginning balance (in shares) at Jan. 01, 2022   55,300,000        
Beginning balance (in shares) at Jan. 01, 2022     16,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock options exercised (in shares) 100,000 100,000        
Stock options exercised $ 7.4     7.4    
Restricted/Performance stock units vested (in shares)   200,000        
Shares paid for tax withholding (in shares)   (100,000)        
Shares paid for tax withholding (25.4)     (25.4)    
Stock-based compensation $ 47.7     47.7    
Repurchases of common stock (in shares) 3,000,000.0 3,000,000.0 3,000,000.0      
Repurchases of common stock $ (401.5)   $ (401.5)      
Net change on pension obligations (2.6)       (2.6)  
Unrealized (loss) on cash flow hedge 14.7 [1]       14.7  
Net income (loss) 143.5         143.5
Foreign currency translation adjustment 4.9       4.9  
Ending balance (in shares) at Dec. 31, 2022   52,500,000        
Ending Balance at Dec. 31, 2022 1,338.9 $ 0.1 $ (1,169.2) 782.2 11.5 1,714.3
Ending balance (in shares) at Dec. 31, 2022     19,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 1,338.9 $ 0.1 $ (1,169.2) 782.2 11.5 1,714.3
Stock options exercised (in shares) 200,000 200,000        
Stock options exercised $ 7.1     7.1    
Restricted/Performance stock units vested (in shares)   200,000        
Shares paid for tax withholding (in shares)   (100,000)        
Shares paid for tax withholding (12.9)     (12.9)    
Stock-based compensation $ 7.0     7.0    
Repurchases of common stock (in shares) 0          
Repurchases of common stock $ 0.0          
Net change on pension obligations (2.9)       (2.9)  
Unrealized (loss) on cash flow hedge (8.8) [1]       (8.8)  
Net income (loss) 81.5         81.5
Foreign currency translation adjustment $ (45.1)       (45.1)  
Ending balance (in shares) at Dec. 30, 2023 52,800,000 52,800,000        
Ending Balance at Dec. 30, 2023 $ 1,364.8 $ 0.1 $ (1,169.2) 783.4 (45.3) 1,795.8
Ending balance (in shares) at Dec. 30, 2023 19,500,000   19,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 1,364.8 $ 0.1 $ (1,169.2) 783.4 (45.3) 1,795.8
Stock options exercised (in shares) 600,000 600,000        
Stock options exercised $ 25.2     25.2    
Restricted/Performance stock units vested (in shares)   300,000        
Shares paid for tax withholding (in shares)   (100,000)        
Shares paid for tax withholding (11.8)     (11.8)    
Stock-based compensation $ 41.5     41.5    
Repurchases of common stock (in shares) 0          
Repurchases of common stock $ 0.0          
Net change on pension obligations 0.2       0.2  
Unrealized (loss) on cash flow hedge (1.3) [1]       (1.3)  
Net income (loss) (304.9)         (304.9)
Foreign currency translation adjustment $ (61.8)       (61.8)  
Ending balance (in shares) at Dec. 28, 2024 53,600,000 53,600,000        
Ending Balance at Dec. 28, 2024 $ 1,051.9 $ 0.1 $ (1,169.2) 838.3 (108.2) 1,490.9
Ending balance (in shares) at Dec. 28, 2024 19,500,000   19,500,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Beginning balance $ 1,051.9 $ 0.1 $ (1,169.2) $ 838.3 $ (108.2) $ 1,490.9
[1] See Note 17, “Derivative Instruments and Hedging Activities”, for further details.
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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income (loss) $ (304.9) $ 81.5 $ 143.5
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Depreciation and amortization 103.0 98.3 136.1
Stock-based compensation 41.5 7.0 47.7
Amortization of debt issuance costs 1.9 1.9 1.4
Loss on disposal of inventory, equipment and other assets 98.7 0.8 0.5
Provision for credit losses 1.1 1.1 1.3
Benefit from deferred income taxes (38.2) (35.6) (39.3)
Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10) 304.0 10.0 0.0
Changes in operating assets and liabilities:      
(Increase) decrease in trade accounts receivable (65.0) 88.2 (144.1)
(Increase) decrease in related party receivable (7.9) 2.0 5.6
(Increase) decrease in inventories (7.5) (69.2) (155.9)
(Increase) decrease in other current assets 6.6 (8.6) (7.4)
(Increase) decrease in lease receivable, net 12.7 1.7 (12.8)
(Increase) decrease in deferred costs and other contract assets (4.0) (14.4) (13.4)
(Increase) decrease in other non-current assets (2.3) 3.0 (4.9)
Increase (decrease) in accounts payable 14.8 (19.6) 60.5
Increase (decrease) in accrued compensation 22.2 (26.8) (9.3)
Increase (decrease) in deferred revenue and other contract-related liabilities 10.3 7.1 28.1
Increase (decrease) in income taxes payable 2.2 (15.1) 3.8
Increase (decrease) in accrued liabilities 17.7 (22.8) (16.1)
Increase (decrease) in other non-current liabilities (10.5) 3.6 4.1
Net cash provided by (used in) operating activities 196.4 94.1 29.4
Cash flows from investing activities:      
Purchases of property and equipment, net (20.0) (44.0) (52.8)
Increase in intangible assets (31.1) (43.7) (3.5)
Business combinations, net of cash acquired 0.0 7.5 (999.7)
Other strategic investing activities (0.1) (1.0) (1.7)
Net cash (used in) provided by investing activities (51.2) (81.2) (1,057.7)
Cash flows from financing activities:      
Borrowings under revolving line of credit 98.8 189.0 1,083.9
Repayments under revolving line of credit (237.8) (240.2) (135.4)
Proceeds from issuance of common stock 25.2 7.0 8.1
Repurchases of common stock 0.0 0.0 (401.5)
Payroll tax withholdings on behalf of employees for stock options (11.8) (12.9) (25.4)
Debt issuance costs 0.0 0.0 (9.3)
Net cash (used in) provided by financing activities (125.6) (57.1) 520.4
Effect of foreign currency exchange rates on cash (6.4) 2.8 (30.9)
Net increase in cash, cash equivalents and restricted cash 13.2 (41.4) (538.8)
Cash, cash equivalents and restricted cash at beginning of period 168.2 209.6 748.4
Cash, cash equivalents and restricted cash at end of period $ 181.4 $ 168.2 $ 209.6
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Description of the Company
 12 Months Ended
Dec. 28, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of the Company
1. Description of the Company
Masimo Corporation (the “Company”) is a global 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, reduce the cost of care and take noninvasive monitoring to new sites and applications. The Company operates two reportable segments: healthcare and non-healthcare.
The Company’s healthcare products and 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.
On April 11, 2022, the Company acquired Viper Holdings Corporation, the parent company of DEI Sales, Inc., d/b/a Sound United (Sound United), via the Company’s wholly-owned subsidiary, Sonic Boom Acquisition Corp (Sonic) (Sound United acquisition). For additional information on Masimo’s acquisition of Sound United, see Note 18, “Business Combinations”.
The Company’s non-healthcare consumer products and home integration technologies are primarily sold or licensed direct-to-consumers, or through authorized retailers and wholesalers.
In addition, the Company updated its financial reporting segments to align with the way it manages its business units post-acquisition. See Note 25, “Segment and Enterprise Reporting”, for additional details.
During the fourth quarter of 2024, our Board approved a strategic realignment initiative of the Company’s healthcare segment to drive progress towards a more streamlined and efficient organization, which included right-sizing the organization, cost rationalization, driving research and development efficiencies and enhancing key launch and innovation processes. The impact of the strategic realignment initiative resulted in charges of approximately $128.0 million for the three months ended December 28, 2024, which have been reflected as cost of goods sold for approximately $61.0 million, as selling, general and administrative expenses for approximately $31.0 million, and as research and development for approximately $36.0 million in the accompanying consolidated statements of operations. Included in these charges were accrued severance for workforce reductions, of which approximately $4.3 million was accrued as of December 28, 2024.
The terms “the Company” and “Masimo” refer to Masimo Corporation and, where applicable, its consolidated subsidiaries.
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 28, 2024
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 2024 was a 52 week fiscal year ended December 28, 2024. The Company’s next 53 week year will be fiscal year 2025. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted.
Reclassifications
Certain amounts in the accompanying consolidated financial statements have been reclassified to conform to the current period presentation, including certain balance sheet asset accounts in the consolidated financial statements for the year ended December 30, 2023. There was no impact on previously reported total assets, liabilities, stockholders’ equity or net income.
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, impairment of long-lived assets, intangible assets and goodwill; derivative and equity instruments, deferred taxes and any associated valuation allowances, deferred revenue, accounting for pensions, uncertain income tax positions, litigation costs, and related accruals. See Note 24, “Commitments and Contingencies” for further details. Actual results could differ from such estimates.
Business Combinations
The Company accounts for business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations, which requires that once control is obtained, 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, with the exception of acquired contract assets and contract liabilities (i.e., deferred revenue) from contracts with customers. These are recognized and measured in accordance with ASC Topic 606, Revenue from Contracts with Customers. 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
The Company accounts for certain financial instruments at their fair values as either assets or liabilities on the balance sheet. The Company determines the fair value of its financial instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, and considers the estimated amount the Company would receive or pay to transfer these instruments at the reporting date with respect to current currency exchange rates, interest rates, the creditworthiness of the counterparty for unrealized gain positions and the Company’s creditworthiness for unrealized loss positions. In certain instances, the Company may utilize financial models to measure the fair value of its financial instruments. In doing so, the Company uses inputs that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, other observable inputs for the asset or liability and inputs derived principally from, or corroborated by, observable market data by correlation or other means.
Recurring Fair Value Measurement
On a recurring basis, the Company measures certain financial assets and financial liabilities at fair value based upon quoted market prices. Where quoted market prices or other observable inputs are not available, the Company applies valuation techniques to estimate fair value. 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.
The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 28, 2024:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$101.0 $101.0 $— $— 
Money market funds76.6 76.6 — — 
Pension assets:
Cash and cash equivalents(1.3)
(1)
(1.3)— — 
Equity securities9.3 9.3 — — 
Debt securities9.6 9.6 — — 
Real estate funds3.6 — 3.6 — 
Alternative investments1.4 — 1.4 — 
Other0.2 — 0.2 — 
Equity securities1.3 1.3 — — 
Derivative instruments - cash flow hedges(2)
6.8 6.8 — — 
Derivative instruments - warrants0.7 0.7 — — 
Total assets$209.2 $204.0 $5.2 $— 
Liabilities
Derivative instruments - cash flow hedge$0.1 $0.1 $— $— 
Pension benefit obligation31.8 31.8 — — 
Total liabilities$31.9 $31.9 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024, resulting in a negative allocation as of year end.
(2)    Includes accrued interest.
The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 30, 2023:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$87.0 $87.0 $— $— 
Money market funds76.0 76.0 — — 
Pension assets:
      Cash and cash equivalents(1.2)
(1)
(1.2)— — 
      Equity securities 8.1 8.1 — — 
      Debt securities10.7 9.9 0.8 — 
      Real estate funds3.1 — 3.1 — 
      Alternative investments1.9 — 1.9 — 
      Other0.5 — 0.5 — 
Equity securities1.7 1.7 — — 
Derivative instruments - cash flow hedges11.6 11.6 — — 
Derivative instruments - warrants1.0 1.0 — — 
Total assets$200.4 $194.1 $6.3 $— 
Liabilities
Derivative instruments - cash flow hedge(2)
$3.6 $3.6 $— $— 
Pension benefit obligation32.6 32.6 — — 
Total liabilities$36.2 $36.2 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 30, 2023, resulting in a negative allocation as of year end.
(2)    Includes accrued interest.
The Company invests in checking, savings and money market fund accounts, which are classified within Level 1 of the fair value hierarchy as they are valued using quoted market prices. These investments are classified as cash and cash equivalents within the Company’s accompanying consolidated balance sheets, in accordance with GAAP and its accounting policies.
The Company’s marketable equity securities, whose price is based on quoted market price in an active market, are classified within Level 1 of the fair value hierarchy. Equity securities are classified as current, short-term investments, or non-current, recorded in other non-current assets, based on the nature of the securities and their availability for use in current operations. The changes in the fair value of those equity securities are measured at each reporting date and changes in the value of these investments between reporting dates are recorded within non-operating income (loss).
The Company’s pension assets consist of Level 1 and Level 2 investments. The fair values of Level 2 assets are based on observable inputs such as prices or quotes for similar assets, adjusted for any differences in terms or conditions that may affect the value of the instrument being valued. The valuation techniques used for Level 2 assets may include the use of models or other valuation techniques, but these methods are all based on observable market inputs.
The Company also has investments in certain derivative instruments, which are measured at fair value and classified within Level 3 of the fair value hierarchy.
Non-Recurring Fair Value Measurements
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.
Furthermore, the Company did not elect to apply the fair value option to specific assets or liabilities on a contract-by-contract basis. The Company did not have any transfers between Level 2 and Level 3 during the years ended December 28, 2024 and December 30, 2023.
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity from the 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. The Company carries cash and cash equivalents at cost, which approximates fair value, and they are Level 1 under the fair value hierarchy.
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. Based on the risk characteristics, the Company has identified U.S. and international customers as separate portfolios for both segments, and measures expected credit losses on such receivables using an aging methodology.
Inventories
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 the 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
2 to 3 years
Furniture and office equipment
2 to 15 years
Leasehold improvementsLesser of useful life or term of lease
Machinery, equipment and tooling
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Transportation, vehicles and other
1 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.
Software development costs are accounted for in accordance with ASC Topic 985-20, Software - Costs of Software to be Sold, Leased, or Marketed. Once technological feasibility has been established, qualifying costs incurred in development are capitalized until available for general release to customers, and subsequently reported at the lower of unamortized cost or net realizable value.
Intangibles purchased as part of an asset acquisition or business combination historically have included patents, trademarks, customer relationships, developed technologies and contractual licenses. In certain circumstances, the Company has also acquired non-compete agreements tied to certain employment relationships. The useful life for all of these is largely determined by valuation estimates of remaining economic life. In connection with the Sound United acquisition, the Company acquired certain trademarks/tradenames, which are intangible assets with indefinite useful lives. These brands are expected to maintain brand value for an indefinite period of time.
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 has two reporting units, healthcare and non-healthcare. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, 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 the qualitative assessment indicates that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, or if the Company elects to bypass the qualitative analysis, then the Company performs 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 such reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to such reporting unit. The annual impairment test is performed during the fourth fiscal quarter.
Similar to goodwill, indefinite-lived intangible assets are not amortized but instead are subject to annual impairment testing, unless circumstances dictate more frequent testing, if impairment indicators exist. Impairment for indefinite-lived assets exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. Determining whether impairment indicators exist and estimating the fair value of the Company’s indefinite-lived intangible assets if necessary for impairment testing require significant judgment. Qualitative factors considered in this assessment include industry and market conditions, overall financial performance, and other relevant events and factors.
The Company reviews finite-lived intangible assets and long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash 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.
Employee Defined Benefit Plans
The Company maintains noncontributory defined benefit plans that cover certain employees in certain international locations. The Company recognizes the funded status, or the difference between the fair value of plan assets and the projected benefit obligations of the pension plan on the consolidated balance sheet, with a corresponding adjustment to accumulated other comprehensive (loss) income. If the projected benefit obligation exceeds the fair value of plan assets, the difference or underfunded status represents the pension liability. The Company records a net periodic pension cost in the consolidated statement of operations. The liabilities and annual income or expense are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of asset return. The Company’s accounting policy includes an annual re-measurement of pension assets and obligations. In addition, the Company re-measures pension assets and obligations for significant events, as of the nearest month-end date on the calendar. The fair values of plan assets are determined based on prevailing market prices. See Note 21, “Employee Benefits”, for further details.
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.
Income taxes are highly susceptible to changes from period to period, requiring management to make assumptions about the Company’s future income over the lives of its deferred tax assets and the impact of changes in valuation allowances. Any difference in the assumptions, judgments and estimates mentioned above could result in changes to the Company’s results of operations.
Revenue Recognition, Deferred Revenue and Other Contract Liabilities
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.
Healthcare segment
While the majority of the Company’s healthcare segment 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 are 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. Revenue from fixed lease payments related to equipment supplied under sales-type lease arrangements is recognized once control over the equipment is transferred to the customer, while revenue from fixed lease payments related to equipment supplied under operating-type lease arrangements is generally recognized on a straight-line basis over the term of the lease and variable lease payments are recognized as they occur.
The Company derives the majority of its healthcare segment 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 accounts using industry standard payment terms based on the geography within which the specific customer is located.
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, software 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.
Beginning in 2022, for contracts that contain variable lease payments that are not dependent on an index or rate, the Company classifies as operating leases any lease components that would have otherwise been classified as sales-type leases that would result in a selling loss upon lease commencement. 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 and software, to end-user hospitals, emergency medical response organizations, other direct customers, distributors and OEM customers, is recognized by the Company when control of such performance obligations transfers 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.
Non-healthcare segment
Non-healthcare segment revenue is related to hardware and embedded software that is integrated into final products that are manufactured and sold by the Company. Products and related software are accounted for as a single performance obligation and all intended functionality is available to the customer upon purchase. Non-healthcare segment revenue is recognized upon transfer of control of promised products or service to customers, which is either upon shipment or upon delivery to the customers, depending on delivery terms.
The Company offers sales incentives and has customer programs consisting primarily of discounts and market development fund programs, and records them as contra revenue. Estimates for sales incentives are developed using the most likely amount and are included in the transaction price to the extent that a significant reversal of revenue would not result once the uncertainty is resolved. In developing these estimates, the Company also considers the susceptibility of the incentive to outside influences, the length of time until the uncertainty is resolved and the Company’s experience with similar contracts. Reductions in revenue related to discounts are allocated to products on a relative basis based on their respective standard selling price if there are undelivered products in a contract. Judgment is required to determine the timing and amount of recognition of marketing funds, which the Company estimates based on past practice of providing similar funds.
Payment terms and conditions vary among the Company’s distribution channels although terms generally include a requirement of payment within 30 to 60 days of product shipment. Sales made directly to customers from the Company’s website are paid at the time of product shipment. Prior to determining payment terms for each customer, an evaluation of such customer’s credit risk is performed. Contractual allowances are an offset to accounts receivable.
The Company recognizes non-healthcare royalty revenue associated with certain prepaid license arrangements. The Company recognizes non-healthcare revenue from the prepaid license arrangements based upon sales-based royalties when a subsequent sale occurs.
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 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.
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:
Year Ended
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Product warranty accrual, beginning of period$8.6 $10.6 $2.5 
Increase related to acquisition, net of reserve— — 8.4 
Accrual for warranties issued9.1 7.8 1.8 
Changes in pre-existing warranties (including changes in estimates)(5.4)(7.5)4.7 
Settlements made(3.1)(2.3)(6.8)
Product warranty accrual, end of period$9.2 $8.6 $10.6 
Advertising Costs
Advertising costs include certain advertising, marketing and endorsement agreement fees. Advertising costs are expensed as incurred. Endorsement fees associated with product endorsers are expensed on a straight-line basis over the term of the agreement. Advertising costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Prepayments made under endorsement agreements are included in other current assets or other non-current assets, depending on the period to which the prepayments applies. Certain endorsement agreements provide for royalty payments to endorsers based on sales of particular products, which the Company records in selling, general and administrative expense as the related sales occur. Advertising costs for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, were $58.2 million, $61.4 million and $49.3 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 the Japanese Yen, the British Pound, the Chinese Yuan 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 (loss) income 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 (loss) income within the accompanying consolidated statements of operations.
Derivatives Instruments and Hedging Activities
The Company addresses market risk from changes in interest rates risks through risk management programs, which include the use of derivative instruments. The Company’s exposure to a counterparty’s credit risk is generally limited to the amounts of the net obligation to the counterparty. The Company established policies to enter into contracts only with major investment-grade financial institutions to mitigate such counterparty credit risk. The Company also established a policy to further monitor the counterparty risks throughout the life of the instruments. None of the derivative instruments currently held by the Company were entered into for speculative trading purposes.
All derivative financial instruments are recognized as either assets or liabilities at fair value in the consolidated balance sheets and are classified as short-term or long-term based on the tenor of the instrument. The Company has elected not to separate a derivative instrument into current and long-term portions. A derivative instrument whose fair value is a net liability is classified as current in total. A derivative instrument whose fair value is a net asset and whose current portion is an asset is classified as non-current in total. For a derivative instrument that meets the criteria to qualify for hedge accounting, the Company marks the fair value of the derivative instrument to market periodically through other comprehensive (loss) income. When the hedged items are recorded to income (loss), the associated deferred gains (losses) of the derivatives in accumulated other comprehensive (loss) income will be reclassified into earnings. Any fluctuation in the fair value of a derivative instrument that does not meet the criteria for hedge accounting is recorded to earnings (expense) in the period it occurs.
Comprehensive (Loss) Income
Comprehensive (loss) income includes foreign currency translation adjustments, changes to pension benefits, unrealized gains (losses) on cash flow hedges and any related tax benefits (expenses) that have been excluded from net income and reflected in stockholders’ equity.
Net (Loss) Income Per Share
A computation of basic and diluted net (loss) income per share is as follows:
Year Ended
(in millions, except per share amounts)December 28,
2024		December 30,
2023		December 31,
2022
Net (loss) income$(304.9)$81.5 $143.5 
Basic net (loss) income per share:
Weighted-average shares outstanding - basic53.3 52.8 53.6 
Net (loss) income per basic share$(5.72)$1.54 $2.68 
Diluted net (loss) income per share:
Weighted-average shares outstanding - basic53.3 52.8 53.6 
Diluted share equivalents: stock options, RSUs and PSUs— 1.3 1.6 
Weighted-average shares outstanding - diluted53.3 54.1 55.2 
Net (loss) income per diluted share$(5.72)$1.51 $2.60 
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. In periods when the Company has a net loss, equity awards are excluded from the calculation of earnings per share as their inclusion would have an antidilutive effect. 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 each of the years ended December 28, 2024, December 30, 2023 and December 31, 2022, weighted options to purchase 1.1 million, 1.2 million and 0.8 million shares of common stock, respectively, were outstanding but not included in the computation of diluted net (loss) income per share because the effect of including such shares would have been antidilutive in the applicable period. For each of the years ended December 30, 2023 and December 31, 2022, certain RSUs were considered contingently issuable shares as their vesting was contingent upon the occurrence of certain future events. Since such events have not occurred and were not considered probable of occurring as of December 30, 2023 and December 31, 2022, 2.7 million weighted-average shares related to such RSUs have been excluded from the calculation of potential shares.
On October 24, 2024, following a review by outside counsel, the Board adopted resolutions to terminate the employment of Mr. Kiani, our former Chairman and Chief Executive Officer, effective October 24, 2024. In connection with the Board’s determination, the 2.7 million RSU grant to Mr. Kiani was cancelled and the 2.7 million weighted-average shares related to such RSUs have continued to be excluded from the calculation of potential shares for the year ended December 28, 2024. For additional information with respect to these RSUs, please see “Employment and Severance Agreements” in Note 24, “Commitments and Contingencies”.
Supplemental Cash Flow Information
Supplemental cash flow information includes the following:
Year Ended
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Cash paid during the year for:
Interest expense
$39.1 $51.0 $23.0 
Income taxes
41.9 54.4 87.3 
Operating lease liabilities
24.6 22.4 17.2 
Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities$28.6 $16.3 $— 
Non-cash investing activities:
Unpaid purchases of property and equipment$0.7 $0.2 $3.8 
Non-cash financing activities:
       Unsettled common stock proceeds from option exercises$0.1 $— $— 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$177.6 $163.0 $202.9 
Restricted cash
3.8 5.2 6.7 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
$181.4 $168.2 $209.6 
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new standard is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU No. 2023-07 is effective for annual reporting periods beginning after December 15, 2023 and interim periods in fiscal years beginning after December 15, 2024. Early adoption is permitted with retrospective application to all prior periods presented. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company retrospectively adopted this standard during the fiscal year ended December 28, 2024. See Note 25,”Segment and Enterprise Reporting”, for further details on the impact of the adoption of this standard.
Recently Announced Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new standard requires companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU No. 2023-09 is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on our consolidated financial statements upon adoption.
In November 2024, the FASB issued ASU No. 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. The guidance in ASU No. 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. ASU No. 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. In January 2025, the FASB issued ASU No. 2025-01 to clarify the effective date of ASU No. 2024-03. Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. The Company is currently evaluating the impact of this new standard on our consolidated financial statements upon adoption.
v3.25.0.1
Related Party Transactions
 12 Months Ended
Dec. 28, 2024
Related Party Transactions [Abstract]  
Related Party Transactions
3. Related Party Transactions
On October 24, 2024, following a review by outside counsel, the Board adopted resolutions to terminate the employment of Mr. Kiani, our former Chairman and Chief Executive Officer, effective October 24, 2024. See Note 24, “Commitments and Contingencies”, for further details.
Willow Laboratories, Inc. (Willow), formerly known as Cercacor Laboratories, Inc., is an independent entity that was spun off from the Company to its stockholders in 1998. Joe Kiani, the Company’s former Chairman and Chief Executive Officer (CEO), is also the Chairman and CEO of Willow. Effective as of January 3, 2016, in connection with changes in the capital structure of Willow, the Company determined that Willow was no longer required to be consolidated. Although the Company believes that Willow continues to be considered a variable interest entity, the Company has determined that it is no longer the primary beneficiary of Willow as it does not have the power to direct the activities of Willow that most significantly impact Willow’s economic performance and has no obligation to absorb Willow’s losses.
The Company is a party to the following agreements with Willow:
•Cross-Licensing Agreement - The Company and Willow 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, which is a perpetual global license. Prior to a change in control, which is defined in the Willow Cross-Licensing Agreement to include, among other things, Mr. Kiani ceasing to serve as CEO of either the Company or Willow, the Company’s annual minimum royalty obligation is $5.0 million. Upon a change in control of the Company or Willow: (i) all rights to the “Masimo” trademark will be assigned to Willow if the surviving or acquiring entity ceases to use “Masimo” as a company name and trademark; (ii) the option to license technology developed by Willow 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 Willow; and (iii) the minimum aggregate annual royalties payable to Willow 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 rainbow® parameter (with no maximum ceiling for non-vital sign measurements). Any payment due annually to Willow resulting from a change in control of the Company is less than what the Company paid to Willow for licensing rights in 2022 or 2023.
On October 24, 2024, a change in control as defined in the Willow Cross-Licensing Agreement occurred when Mr. Kiani’s employment as the Company’s CEO was terminated, resulting in a payment of $2.5 million for the licensing of Willow blood glucose monitoring technology. See Note 9, “Intangible Assets, Net”, for further details. A change in control does not otherwise impact the scope or duration of the license rights. No additional accruals or payments were made in connection with the change in control under the Willow Cross-Licensing Agreement.
Aggregate recorded royalty amounts to Willow by the Company under the Cross-Licensing Agreement were $20.4 million, $19.2 million and $16.9 million for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, respectively. The Company had sales to Willow in the amount of $0.3 million, $0.1 million and $0.2 million for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, respectively.
•Administrative Services Agreement - The Company is a party to an administrative services agreement with Willow (G&A Services Agreement), which governs certain general and administrative services that the Company provides to Willow. Amounts charged by the Company pursuant to the G&A Services Agreement were $0.5 million, $0.5 million and $0.4 million for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, respectively.
•Lease Agreement - Effective December 2019, the Company entered into a lease agreement with Willow for approximately 34,000 square feet of office, research and development space at one of the Company’s owned facilities in Irvine (Willow Lease). The term of the Willow Lease expired on December 31, 2024, and was not renewed. The Company recognized approximately $1.2 million of lease income for each year ended December 28, 2024, December 30, 2023 and December 31, 2022, respectively.
Net amounts accrued and unpaid to Willow were approximately $5.0 million and $4.1 million as of December 28, 2024 and December 30, 2023, respectively. See Note 24, “Commitments and Contingencies”, under the heading of “Willow Cross-Licensing Agreement Provisions” for further details.
Masimo Foundation for Ethics, Innovation and Competition in Healthcare (Masimo Foundation) is a non-profit organization that was founded in 2010 to provide a platform for encouraging ethics, innovation and competition in healthcare. Mr. Kiani is the Chairman of the Masimo Foundation. In addition, the Company’s Executive Vice President (EVP), Chief Financial Officer (CFO) served as the Treasurer of the Masimo Foundation and the Company’s EVP, General Counsel and Corporate Secretary served as the Secretary for the Masimo Foundation. Effective January 9, 2025, the Masimo Foundation Board appointed a new Treasurer and Secretary, and Messrs. McClenahan and Young resigned from their respective roles with the Masimo Foundation.
For the fiscal year ended December 28, 2024, the Company made cash contributions of approximately $2.5 million to the Masimo Foundation. For the fiscal year ended December 30, 2023, the Company made cash contributions of approximately $1.0 million to the Masimo Foundation. For the fiscal year ended December 31, 2022, the Company made no contributions to the Masimo Foundation. In addition, for each of the years ended December 28, 2024, December 30, 2023 and December 31, 2022, the Company made various in-kind contributions to the Masimo Foundation, mainly in the form of donated administrative services. During the period ended December 28, 2024, the Company halted all payments to the Masimo Foundation. The Company does not intend to make any future contributions to the Masimo Foundation.
Mr. Kiani 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 the second quarter of 2020. For the fiscal year ended December 28, 2024, the Company incurred no marketing expenses to LMMV under the marketing service agreement. During the fiscal years ended December 30, 2023, and December 31, 2022, the Company incurred $1.5 million and $1.4 million in marketing expenses to LMMV under the marketing service agreement, respectively. At December 28, 2024 and December 30, 2023, there were no amounts due to LMMV for services rendered. During the fourth quarter of 2024, the Company terminated the marketing services agreement with LMMV. No payment was due in connection with the termination of this agreement.
During the second quarter of 2021, the Company entered into a software license and professional services agreement with Like Minded Labs (LML), a subsidiary of LMMV. 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. See Note 9, “Intangible Assets, Net”, for further details.
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. See Note 9, “Intangible Assets, Net”, for further details.
The Company maintained an aircraft time share agreement, pursuant to which the Company agreed from time to time to make its aircraft available to Mr. Kiani, in his former capacity as Chairman and CEO, for lease on a time-sharing basis. The agreement provided that Mr. Kiani would pay the Company for personal use based on agreed upon reimbursement rates. During each of the fiscal years ended December 28, 2024 and December 30, 2023, the Company charged Mr. Kiani less than $0.1 million related to such reimbursements. For the fiscal year ended December 31, 2022, the Company charged Mr. Kiani $0.1 million related to such reimbursements. The time share agreement with Mr. Kiani was terminated upon his resignation from the Company.
On June 26, 2023, at the Company’s 2023 Annual Meeting of Stockholders, its stockholders voted to elect two directors nominated by Politan Capital Management LP and certain of its affiliates (Politan) to the Company’s Board of Directors (Board). On September 19, 2024, at the Company’s 2024 Annual Meeting of Stockholders, two additional directors nominated by Politan were elected to the Board. As of September 24, 2024, the date of the last reported Schedule 13-D/A filed with the U.S. Securities and Exchange Commission (SEC) by Politan, Politan beneficially owned approximately 8.8% of the outstanding shares of the Company. For the fiscal year ended December 28, 2024, the Board approved a payment, and the Company paid Politan for the reimbursement of out of pocket proxy and legal related costs incurred by Politan in connection with two proxy contests and related litigation to ensure that Politan’s nominees were permitted to stand for election to the Board in the amount of approximately $27.6 million. For fiscal year end December 30, 2023, the Company paid Politan approximately $18.0 million pursuant to an award issued by the Delaware Court of Chancery to reimburse Politan for out of pocket legal fees and expenses incurred in successfully challenging certain provisions in the Company’s bylaws and provisions in Mr. Kiani's Amended Employment Agreement that precluded Politan from nominating candidates for election to the Board.
On September 24, 2024, Michelle Brennan, a member of the Board, was appointed to the role of interim CEO of the Company. Ms. Brennan also sits on the board of directors of Cardinal Health, Inc. (Cardinal). For the fiscal year ended December 28, 2024, December 30, 2023 and December 31, 2022, sales to Cardinal were approximately $114.1 million, $93.9 million and $103.0 million, respectively. As of December 28, 2024 and December 30, 2023, amounts owed from Cardinal were approximately $15.2 million and $7.3 million, respectively.
v3.25.0.1
Inventories
 12 Months Ended
Dec. 28, 2024
Inventory Disclosure [Abstract]  
Inventories
4. Inventories
Inventories consist of the following:
(in millions)December 28,
2024		December 30,
2023
Raw materials$181.3 $229.7 
Work-in-process24.3 30.0 
Finished goods253.6 285.3 
Total inventories(1)
$459.2 $545.0 
______________
(1)    Included in the change of total inventories for the fiscal year ended December 28, 2024, was a $52.3 million write down for inventory related to the strategic realignment initiative for products that are being phased out and/or no longer supported, which was recorded to cost of goods sold.
v3.25.0.1
Other Current Assets
 12 Months Ended
Dec. 28, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Current Assets
5. Other Current Assets
Other current assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Prepaid expenses$36.6 $58.3 
Prepaid income taxes34.1 29.3 
Lease receivable, current26.6 30.2 
Indirect taxes receivable24.8 28.6 
Contract assets, current11.4 6.7 
Prepaid rebates and royalties4.6 4.8 
Restricted cash(1)
2.7 3.0 
Other current assets4.3 7.5 
Total other current assets
$145.1 $168.4 
______________
(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.
v3.25.0.1
Lease Receivable
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Lease Receivable
6. Lease Receivable
For deferred equipment agreements that contain embedded operating leases, upon lease commencement, the Company defers and records the equipment cost of operating lease assets within property, plant and equipment, net of accumulated depreciation. These operating lease assets are subsequently amortized to cost of goods sold over the lease term on a straight-line basis.

For deferred equipment agreements that contain embedded sales-type leases, the Company recognizes lease revenue and costs, as well as a lease receivable, at the time the lease commences. Lease revenue related to both operating-type and sales-type leases for the years ended December 28, 2024 and December 30, 2023 was approximately $44.0 million and $58.0 million, respectively. Costs related to embedded leases within the Company’s deferred equipment agreements are included in cost of goods sold in the accompanying consolidated statement of operations.
Lease receivable from sales-type leases consists of the following:
(in millions)December 28,
2024		December 30,
2023
Lease receivable$85.5 $101.9 
Allowance for credit loss(0.2)(0.3)
     Lease receivable, net85.3 101.6 
Less: current portion of lease receivable(26.6)(30.2)
     Lease receivable, non-current$58.7 $71.4 
As of December 28, 2024, estimated future maturities of customer sales-type lease receivables and operating lease payments for each of the following fiscal years are as follows:
Future Lease Receivables/Payments
(in millions)
Fiscal year
Sales-Type LeasesOperating Leases
2025$26.5 $25.5 
202621.4 24.3 
202715.9 20.2 
202810.3 15.7 
20297.2 14.0 
Thereafter4.0 11.8 
     Total$85.3 $111.5 
Less: imputed interest(1)
— 
     Present value of total lease payments$85.3 
______________
(1)    The calculation of the rates implicit in the leases resulted in negative discount rates. Therefore, the Company as a lessor used a 0% discount rate to measure the net investment in the lease.
v3.25.0.1
Deferred Costs and Other Contract Assets
 12 Months Ended
Dec. 28, 2024
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 millions)December 28,
2024		December 30,
2023
Deferred commissions$25.0 $21.8 
Unbilled contract receivables20.2 17.0 
Prepaid contract allowances14.5 17.0 
Deferred equipment agreements, net1.3 1.5 
     Deferred costs and other contract assets$61.0 $57.3 
For the year ended December 31, 2022, total deferred costs and other contracts were $41.9 million.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, deferred commission amortization expense was $7.6 million, $5.8 million and $4.3 million, respectively.
v3.25.0.1
Property and Equipment, Net
 12 Months Ended
Dec. 28, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net
8. Property and Equipment, Net
Property and equipment, net, consists of the following:
(in millions)December 28,
2024		December 30,
2023
Machinery, equipment and tooling$180.2 $169.7 
Building and building improvements150.3 151.0 
Operating lease assets148.6 92.2 
Land(1)
54.3 66.2 
Computer equipment and software44.4 45.5 
Leasehold improvements40.8 37.5 
Construction-in-progress (CIP)(2)
30.6 59.2 
Furniture and office equipment17.5 20.4 
Demonstration units10.9 11.1 
Transportation, vehicles and other(3)(4)
0.2 34.0 
Total property and equipment
677.8 686.8 
Accumulated depreciation(296.2)(262.4)
Property and equipment, net
$381.6 $424.4 
______________
(1)    At March 30, 2024, property, plant and equipment, net, excluded $11.4 million of idle undeveloped land held outside of the U.S., which was classified as held for sale within the healthcare segment. In May 2024, the Company completed the sale of the land, resulting in a gain of $0.9 million, which was recorded net of transaction costs, foreign currency translation and cumulative translation adjustment.
(2)    In December 2024, in connection with the strategic realignment initiative, the Company recorded a charge of approximately $16.0 million related to a reduction of capitalized costs included in the CIP balance for the property in Vancouver, British Columbia, which was recorded to selling, general and administrative expenses.
(3)    During the three months ended September 28, 2024, the Company reduced its fleet of vehicles for use primarily by field sales representatives. The proceeds from the sale of the vehicles were $2.0 million.
(4)    In October 2024, the Company grounded the corporate aircraft and started exploring disposition strategies. In December 2024, the Company entered into an letter of intent to sell the aircraft, and classified the asset as held for sale within the healthcare segment as of December 28, 2024. On January 29, 2025, the Company completed the sale of the corporate aircraft for $19.5 million.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, depreciation expense of property and equipment was $41.3 million, $43.9 million and $43.0 million, respectively.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, depreciation expense of operating lease assets was $23.7 million, $19.3 million and $4.4 million, respectively.
For the years ended December 28, 2024 and December 30, 2023, $23.7 million and $19.3 million of equipment leased to customers was amortized to cost of goods sold, respectively. As of December 28, 2024 and December 30, 2023, accumulated amortization of equipment leased to customers was $1.1 million and $1.5 million, respectively.
The balance in CIP at December 28, 2024 and December 30, 2023, related primarily to the capitalized implementation costs related to a new enterprise resource planning software system, costs related to facility improvements, the expansion of certain key manufacturing facilities globally, machinery and equipment at the Company’s corporate headquarters, the underlying assets for which have not been completed or placed into service.
On February 14, 2022, the Company’s wholly owned subsidiary, Masimo Canada ULC, entered into a Purchase and Sale Agreement (Purchase Agreement) with Keltic (Prior) Development Limited Partnership (Vendor) for the purchase of a property in Vancouver, British Columbia, Canada for a purchase price of CAD123.0 million, plus GST (Purchase Price), subject to certain adjustments. The Company paid CAD21.0 million as a deposit towards the purchase during the year ended December 31, 2022.
In the fourth quarter of 2024, Masimo Canada ULC, agreed with the Vendor to a termination for the purchase of the property in Vancouver, British Columbia, which resulted in a charge of approximately CAD24.7 million. As part of the termination, the Company forfeited the initial purchase deposit of CAD21.0 million, and agreed to an additional CAD3.7 million in termination fees that were accrued as of December 28, 2024
v3.25.0.1
Intangible Assets, Net
 12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net
9. Intangible Assets, Net
Intangible assets, net, consist of the following:
December 28,
2024		December 30,
2023
(in millions)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Intangible assets subject to amortization:
Customer relationships$199.3 $(41.7)$157.6 $209.2 $(31.5)$177.7 
Acquired technologies164.9 (62.0)102.9 174.7 (45.3)129.4 
Capitalized software development costs(1)
54.1 (28.6)25.5 53.9 (15.2)38.7 
Licenses30.3 (6.2)24.1 39.7 (7.4)32.3 
Patents(1)
44.0 (17.5)26.5 39.2 (15.2)24.0 
Trademarks20.1 (9.0)11.1 20.1 (7.4)12.7 
Licenses-related party(1)
7.5 (7.1)0.4 7.5 (6.7)0.8 
Non-compete agreements6.3 (4.1)2.2 6.3 (2.6)3.7 
Other1.6 (1.0)0.6 1.7 (1.1)0.6 
     Total intangible assets subject to amortization, net$528.1 $(177.2)$350.9 $552.3 $(132.4)$419.9 
Intangible assets not subject to amortization:
Trademarks$217.3 $242.4 
Impairment charge(10.0)(10.0)
     Total trademarks207.3 232.4 
     Intangible assets, net$558.2 $652.3 
______________
(1)    During the fourth quarter of 2024, in connection with the Company’s strategic realignment initiative, the Company’s healthcare segment recorded a charge of $26.0 million for a reduction in capitalized software development costs, patents and licenses-related party that are being phased out and/or no longer supported, which was recorded to selling, general and administrative expenses. The Company also terminated the professional services agreements associated with LML and Vantrix.
Finite lived intangible assets have a weighted-average amortization period ranging from twelve years to fourteen years.
Total amortization expense for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, was $61.7 million, $54.4 million and $39.8 million, respectively.
Total unamortized capitalized software development costs for the years ended December 28, 2024 and December 30, 2023, were $1.4 million and $11.9 million, respectively. There was no unamortized capitalized software development costs for the year ended December 31, 2022.
The total costs of patents not yet amortizing for the years ended December 28, 2024 and December 30, 2023, was $13.0 million and $12.1 million, respectively.
The total costs of trademarks not yet amortizing for the years ended December 28, 2024 and December 30, 2023, was $0.8 million and $1.0 million, respectively.
Total renewal costs capitalized for patents and trademarks for the years ended December 28, 2024 and December 30, 2023 were $4.3 million and $1.0 million, respectively. As of December 28, 2024, the weighted-average number of years until the next renewal was two years for patents and six years for trademarks.
Estimated amortization expense for each of the next fiscal years is as follows:
Fiscal year
Amount
(in millions)
2025$51.6 
202650.3 
202738.0 
202837.6 
202937.2 
Thereafter136.2 
Total$350.9 
Indefinite-lived intangible assets are subject to annual impairment testing, unless circumstances dictate more frequent testing, if impairment indicators exist. During the fourth quarter of 2024, the Company performed its annual impairment analysis and, based on this assessment, the Company determined the carrying value of certain indefinite-lived trademarks in the non-healthcare reporting unit were impaired by approximately $10.0 million. For indefinite-lived intangibles, the fair values were estimated using the relief-from-royalty method under the income approach, which involves forecasting avoided royalties, reducing them by taxes, and discounting the resulting net cash flows to a present value using an appropriate discount rate.
Given the indefinite-lived intangibles impairment, the Company next assessed the recoverability of its other long-lived assets in non-healthcare. For unit of account purposes, this included grouping certain assets such as finite-lived intangibles, lessee ROU assets, and property and equipment due to the interdependency of these assets. The valuation analysis included a probability-weighted recoverability test, which is subject to assumptions and uncertainties such as scenario probabilities, including the potential separation of Sound United scenario. Based on this valuation analysis, these long-lived assets were determined to be recoverable.
For the non-healthcare reporting unit, the Company performed a quantitative assessment of goodwill impairment for its annual impairment analysis during the fourth quarter of 2024. The Company used a combination of both an income and a market approach to determine the fair value of the reporting unit. The income approach utilized the estimated discounted cash flows for the reporting unit, while the market approach utilized comparable company information. Estimates and assumptions used in the income approach to calculate projected future discounted cash flows included revenue growth rates, operating margins and a discount rate for the reporting unit. Given the potential separation of Sound United, the market approach considered comparable public companies in a similar line of business to Sound United, and multiples were applied based on the relative performance and risk profile of the non-healthcare reporting unit. Discount rates were determined using a weighted average cost of capital for risk factors specific to the reporting unit and other market and industry data. The assumptions used are inherently subject to uncertainty and the Company noted that slight changes in these assumptions and probabilities could have a significant impact on the concluded value and analysis. For the non-healthcare reporting unit, goodwill was fully impaired such that the impairment expense was approximately $294.0 million.
Determining the fair value of a reporting unit is judgmental and involves the use of significant estimates and assumptions, which include the discount rate and forecasted revenue growth rates and operating margins, to calculate projected future discounted cash flows. The non-healthcare forecasted revenue growth rates and operating margins assume recovery from the current business downturn while also employing strategies to expand in key market segments.
These fair value measurements require significant judgements using Level 3 inputs, such as discounted projected cash flows, which are not observable from the market, directly or indirectly. If future actual results adversely deviate from the forecast, assumptions or probabilities in the analysis, there will be a materially different assessment. As such, the Company will continue to monitor events occurring or circumstances changing which may necessitate further impairment assessments for intangibles and other long-lived assets.
For healthcare goodwill, the Company performed a qualitative assessment during the fourth quarter 2024 for its annual impairment analysis. Based on this assessment, the Company concluded that it was more likely than not that the fair value of the healthcare reporting unit was greater than its carrying value. Accordingly, no further testing was required on this reporting unit.
In the third quarter of 2023, declines in the Company’s stock price and certain worsening macro-economic market conditions, including continued slowing in demand for consumer audio products, contributed to a significant decline in the Company’s market capitalization, which led the Company to conclude a trigger event had occurred. As a result, the Company performed a quantitative impairment assessment, which resulted in recording a $7.0 million impairment charge for indefinite-lived trademarks in the non-healthcare reporting unit. In conjunction with this third quarter interim impairment quantitative assessment, the Company concluded that both the healthcare reporting unit’s and non-healthcare reporting unit’s respective estimated fair values exceeded their carrying values. Furthermore, recoverability tests performed for other long-lived assets with finite lives indicated no recoverability issues.
During the fourth quarter of 2023, the Company performed its annual impairment analysis by first electing to complete a qualitative assessment of its indefinite-lived intangible assets. Based on this assessment, the Company determined it was not more likely than not that the fair value of the indefinite lived intangibles within the non-healthcare reporting unit exceeded their carrying values. Accordingly, the Company proceeded to perform a quantitative impairment assessment, which resulted in recording a $3.0 million impairment charge for indefinite-lived trademarks. For purposes of the impairment test, the fair value of indefinite-lived assets were determined using the same methodology as described in Note 18, “Business Combinations.” The estimates and assumptions applied represent a Level 3 measurement because they are supported by limited or no market activity and reflect the Company’s assumptions in measuring fair value.
During the fourth quarter of 2023, the Company performed its annual goodwill impairment analysis by first electing to complete a qualitative assessment for its healthcare and non-healthcare reporting units. Based on this assessment, the Company concluded that it was more likely than not that the fair value of the healthcare reporting unit was greater than its carrying value. Accordingly, no further testing was required for the healthcare reporting unit. However, the Company concluded that it was not more likely than not that the fair value of the non-healthcare reporting unit was greater than its carrying value. Therefore, the Company proceeded to perform a quantitative assessment for its non-healthcare reporting unit. When a quantitative assessment is required for the impairment test for goodwill, the Company uses a combination of both an income and a market approach to determine the fair value of the reporting unit. The income approach utilized the estimated discounted cash flows for the reporting unit, while the market approach utilized comparable company information. Estimates and assumptions used in the income approach to calculate projected future discounted cash flows included revenue growth rates, operating margins and a discount rate for the reporting unit. Discount rates were determined using a weighted average cost of capital for risk factors specific to the reporting unit and other market and industry data. The assumptions used are inherently subject to uncertainty and the Company noted that slight changes in these assumptions could have a significant impact on the concluded value.
The estimates and assumptions applied represent a Level 3 measurement because they are supported by limited or no market activity and reflect the Company’s assumptions in measuring fair value.
v3.25.0.1
Goodwill
 12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
10. Goodwill
Changes in goodwill were as follows:
December 28,
2024
(in millions)HealthcareNon-healthcareTotal
Goodwill, beginning of period$98.6 $309.1 $407.7 
Adjustments to goodwill for impairment(1)
— (294.0)(294.0)
Foreign currency translation adjustment(1.9)(15.1)(17.0)
Goodwill, end of period$96.7 $— $96.7 
_____________
(1)    See Note 9, Intangible Assets, Net for details on the impairment of goodwill.
December 30,
2023
(in millions)HealthcareNon-healthcareTotal
Goodwill, beginning of period$97.6 $347.8 $445.4 
Adjustments to goodwill from purchase price allocation
— (18.2)(18.2)
Foreign currency translation adjustment1.0 (20.5)(19.5)
Goodwill, end of period$98.6 $309.1 $407.7 
v3.25.0.1
Lessee ROU Assets and Lease Liabilities
 12 Months Ended
Dec. 28, 2024
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 November 2028. 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. For the years ended December 28, 2024 and December 30, 2023, the weighted-average discount rate used by the Company for all operating leases was approximately 4.6% and 4.1%, respectively.
The balance sheet classifications for amounts related to the Company’s operating leases for which it is the lessee are as follows:
(in millions)Balance Sheet ClassificationDecember 28,
2024		December 30,
2023
Lessee ROU assetsOther non-current assets$74.4 $59.1 
Lessee current lease liabilitiesOther current liabilities21.4 18.2 
Lessee non-current lease liabilitiesOther non-current liabilities59.5 45.8 
     Total operating lease liabilities$80.9 $64.0 
For the years ended December 28, 2024 and December 30, 2023, accumulated amortization for lessee ROU assets was $59.8 million and $48.9 million, respectively.
For the years ended December 28, 2024 and December 30, 2023, the weighted-average remaining lease term for the Company’s operating leases was 5.0 years and 5.6 years, respectively.
As of December 28, 2024, estimated future operating lease payments for each of the following fiscal years were as follows:
Fiscal yearAmount
(in millions)
2025$24.1 
202619.7 
202714.9 
202812.8 
20297.2 
Thereafter(1)
12.9 
Total91.6 
Imputed interest(10.7)
Present value$80.9 
______________
(1)    Includes optional renewal period for certain leases.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, the Company’s operating lease costs were approximately $25.7 million, $22.7 million and $18.0 million, respectively.
During the year ended December 28, 2024, the Company recorded an adjustment of approximately $3.5 million as a result of abandoning a lease for a facility in the non-healthcare segment, which was recorded in selling, general, and administrative expense in the consolidated statements of operations.
In connection with the Company’s strategic realignment initiative, the Company’s healthcare segment exited three leased properties in an effort to reduce its facilities footprint. The Company recorded an adjustment of approximately $2.1 million to reduce the ROU asset during the three months ended December 28, 2024, which was recorded in selling, general and administrative expense in the consolidated statements of operations.
v3.25.0.1
Other Non-Current Assets
 12 Months Ended
Dec. 28, 2024
Other Assets, Noncurrent [Abstract]  
Other Non-Current Assets
12. Other Non-Current Assets
Other non-current assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Lessee ROU assets, net$74.4 $59.1 
Prepaid deposits and other9.4 6.4 
Strategic investments(1)
6.6 7.2 
Derivative assets - non-current(2)
6.2 11.4 
Equity investments - fair value(1)
2.0 2.7 
Restricted cash(3)
1.1 2.2 
Other non-current assets0.4 0.3 
Total non-current assets$100.1 $89.3 
______________
(1)    During the fourth quarter of 2024, in connection with the Company’s strategic realignment initiative, the Company abandoned its investment in certain strategic investments of approximately $1.6 million, which were recorded to selling, general and administrative expenses.
(2)    Excludes accrued interest.
(3)    Restricted cash includes cash held in certain subsidiaries in jurisdictions outside of the U.S. such as China, which may be subject to transfer restrictions depending on jurisdictions.
v3.25.0.1
Deferred Revenue and Other Contract Liabilities, Current
 12 Months Ended
Dec. 28, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Deferred Revenue and Other Contract Liabilities, Current
13. Deferred Revenue and Other Contract Liabilities, Current
Deferred revenue and other contract liabilities consist of the following:
(in millions)December 28,
2024		December 30,
2023
Deferred revenue$74.2 $63.8 
Accrued rebates and allowances38.6 37.5 
Accrued customer reimbursements10.1 12.4 
     Total deferred revenue and other contract liabilities122.9 113.7 
Less: Non-current portion of deferred revenue(27.4)(26.4)
     Deferred revenue and other contract liabilities, current$95.5 $87.3 
For the year ended December 31, 2022, total deferred revenue and other current contract liabilities were $80.6 million.
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 revenue. Generally, both healthcare and non-healthcare segments record deferred revenue when revenue is to be recognized subsequent to invoicing.
Healthcare Deferred Revenue
Healthcare deferred revenue primarily relates to undelivered equipment, sensors and services under deferred equipment agreements, extended warranty agreements and maintenance agreements. 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. Unrecognized Contract Revenue excludes revenue allocable to monitoring-related equipment that is effectively leased to customers under deferred equipment agreements and other contractual obligations for which neither party has performed. The estimated timing of this revenue is based, in part, on management’s estimates and assumptions about when its performance obligations will be completed. As a result, the actual timing of this revenue in future periods may vary, possibly materially, due to factors such as healthcare facility spending trends, hospital inpatient census and seasonality. As of December 28, 2024, the Company had approximately $1,773.3 million of Unrecognized Contract Revenue related to executed contracts with an original duration of one year or more. The Company expects to recognize approximately $510.7 million of this amount as revenue within the next twelve months and the remaining balance thereafter.
Non-Healthcare Deferred Revenue
In October 2020, the Company’s subsidiary, B&W Group Ltd. (B&W), entered into an amendment to a licensing agreement, whereby B&W received a $20.0 million royalty prepayment in relation to sound system units manufactured under the Bowers & Wilkins brand for various high-end car manufacturers with a total commitment of $35.0 million to be received by September 30, 2028. As of December 28, 2024, deferred revenue was $12.1 million.
Changes in deferred revenue for the years ended December 28, 2024 and December 30, 2023 were as follows:
(in millions)December 28,
2024		December 30,
2023
Deferred revenue, beginning of the period$63.8 $61.0 
  Revenue deferred during the period43.5 28.3 
  Recognition of revenue deferred in prior periods(33.1)(25.5)
     Deferred revenue, end of the period$74.2 $63.8 
v3.25.0.1
Other Current Liabilities
 12 Months Ended
Dec. 28, 2024
Other Liabilities Disclosure [Abstract]  
Other Current Liabilities
14. Other Current Liabilities
Other current liabilities consist of the following:
(in millions)December 28,
2024		December 30,
2023
Current portion of long-term debt$37.3 $34.3 
Accrued expenses31.0 26.3 
Accrued indirect taxes payable27.4 23.9 
Lessee lease liabilities, current21.4 18.2 
Income tax payable18.4 16.1 
Accrued legal fees14.9 9.9 
Accrued property taxes9.7 10.2 
Other current liabilities9.6 6.7 
Accrued warranty9.2 8.6 
Related party payables5.3 4.2 
Accrued donations1.6 4.0 
Total other current liabilities
$185.8 $162.4 
v3.25.0.1
Debt
 12 Months Ended
Dec. 28, 2024
Debt Disclosure [Abstract]  
Debt
15. Debt
(in millions)December 28,
2024		December 30,
2023
Japanese loans - current portion$22.3 $23.0 
Term loan - current portion15.0 11.3 
Short-term debt37.3 34.3 
Revolver - long-term456.0 591.5 
Term loan - long-term258.3 271.4 
Japanese loans - long-term13.6 8.8 
Long-term debt727.9 871.7 
Total debt$765.2 $906.0 
Credit Facility
On April 11, 2022, the Company entered into a credit agreement (Credit Facility) with financial institutions party thereto as initial lenders (collectively, the Initial Lenders), Citibank, N.A., as Administrative Agent, Citibank, N.A., JPMorgan Chase Bank, N.A., Bank of the West and BofA Securities, Inc., as joint lead arrangers and joint bookrunners, and JPMorgan Chase Bank, N.A., Bank of the West and BofA Securities, Inc., as co-syndication agents.
The Credit Facility provides for an unsecured term loan of $300.0 million (Term Loan) and $500.0 million of on-going unsecured revolving commitments (Revolver), with an option, subject to certain conditions, for the Company to increase the aggregate borrowing capacity by an additional $400.0 million (plus additional unlimited amounts if certain incurrence tests are met) in the future with the Initial Lenders and additional lenders, as required. Debt issuance costs of $8.4 million were recorded as a reduction to the carrying amount of the Credit Facility and are being amortized to interest expense using the effective interest method.
The Credit Facility also provides for a sublimit of up to $50.0 million for the issuance of letters of credit.
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 0.000% to 0.750% based upon a Company leverage ratio, or (b) a Term SOFR Loan, which bears interest at the Adjusted Term SOFR Rate (as defined below), plus a spread of 1.000% to 1.750% based upon a Company net leverage ratio. 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 Term SOFR plus 1.0%. The Adjusted Term SOFR Rate is equal to the Term SOFR Rate (as defined in the Credit Facility) for the applicable interest period plus a spread adjustment of 0.10%, 0.15% and 0.25% for the interest periods ending one, three and six months, respectively. At December 28, 2024, the effective interest rate on the Credit Facility was 5.9%.
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 non-utilized portion 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 Initial Lenders (and any additional 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. All unpaid principal under the Credit Facility will become due and payable on April 12, 2027.
On May 16, 2022, the Company entered into the First Amendment to the Credit Agreement (First Amendment) with the Initial Lenders and Citibank, N.A., as the administrative agent, which amended the Credit Facility. The First Amendment provides for an additional $205 million of unsecured revolving commitments, increasing the aggregate amount of the Revolver from $500 million to $705 million.
Borrowing rates, maturity date, financial covenants, affirmative and negative covenants and other restricted terms remain unchanged from the Credit Facility. All unpaid principal under the First Amendment will become due and payable on April 12, 2027.
As a result of certain terms of the Credit Facility associated with changes in the Board, the Company requested and received a consent of certain lenders under the Credit Facility. On September 17, 2024, the lenders consented to potential changes in the Board resulting from the election of new directors of the Company at the Company’s 2024 Annual Meeting of Stockholders held on September 19, 2024.
As of December 28, 2024, we had approximately $245.5 million of available borrowing capacity, (net of approximately $47.0 million of outstanding available letters of credit) under our Credit Facility.
The Company was in full compliance with all covenants contained in its debt agreements and Credit Facility at December 28, 2024.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, the Company incurred total interest expense of $41.2 million, $47.0 million and $23.7 million, under the Credit Facility, respectively.
Furthermore, in connection with the Sound United acquisition, the Company assumed three outstanding loans as follows:
Japanese Revolving Loan
In March 2020, D&M Holdings Inc., a subsidiary of the Company, entered into a secured revolving loan (Japanese Revolving Loan) with Mizuho bank, which allows borrowing up to ¥800 million (approximately $5.1 million). The Japanese Revolving Loan is an evergreen agreement that terminates upon request by either the financial institution or the borrower and is collateralized with land and buildings in Shirakawa-Shi owned by the borrower. The carrying value collateralized assets was approximately $7.6 million as of December 28, 2024. Interest accrues at a rate equal to the Mizuho Tokyo Interbank Offered Rate (TIBOR) plus a fixed spread of 0.50% per annum. In connection with the execution of the Japanese Revolving Loan, the Company incurred debt issuance costs of ¥7.2 million (approximately $0.1 million).
On February 28, 2023, D&M Holdings Inc., and Mizuho Bank executed an amendment to the Japanese Revolving Loan, to increase the maximum aggregate revolving loan to ¥3.00 billion (approximately $19.0 million). Under the amendment, the facility accrues interest at a rate equal to the TIBOR plus a fixed spread of 0.75% per annum. The Company also paid an upfront fee of ¥22.0 million (approximately $0.1 million) on the incremental amount of the revolving Credit Facility. As of December 28, 2024, the effective interest rate on the Japanese Revolving Loan was 1.1%.
The Japanese Revolving Loan agreement contains customary affirmative and negative covenants, such as financial reporting requirements and customary covenants that restrict the borrower’s ability to, among other things, provide collateral for obligations borne by the borrower, and determine the eligibility to declare, and amount of, potential dividends to be paid during a given fiscal year. As of December 28, 2024, the Company was in compliance with all covenants under the Japanese Revolving Loan agreements.
Japanese Government Loans
In May and June 2020, D&M Holdings Inc., received ¥1.48 billion (approximately $9.4 million) in non-collateralized Japanese Government Loan facilities (Japanese Government Loans) as part of its local Japanese stimulus program. Interest accrues at a weighted-average rate of 1.33% and is repayable in installments with various maturities through June 2035. The non-current portion of the Japanese Government Loans is presented under long-term debt and the current portion is presented under short-term debt on the accompanying consolidated balance sheets. The Company incurred no debt issuance costs in connection with the Japanese Government Loans.
Japanese Equipment Loans
In April and May 2021, D&M Holdings Inc., entered into an uncollateralized Japanese Equipment Loans of ¥150 million (approximately $1.0 million), payable in installments through March 2031 with an interest rate of 0.58%, and ¥80 million (approximately $0.5 million) payable in installments through April 2028 with an interest rate of 1.2%. The non-current portion of the Japanese Equipment Loans is presented under long-term debt and the current portion is presented under short-term debt on the accompanying consolidated balance sheets. The Company incurred no debt issuance costs in connection with these Japanese Equipment Loans.
In September 2024, D&M Holdings Inc., entered into an uncollateralized Japanese Equipment Loan of ¥230.0 million (approximately $1.5 million) with Mizuho Bank, payable in installments through September 2031 accruing interest at a rate of 1.095%. The non-current portion of the Japanese Equipment Loan is presented under long-term debt and the current portion is presented under short-term debt on the accompanying consolidated balance sheets. There were no debt issuance costs in connection with this Japanese Equipment Loan with Mizuho Bank. The Company is not subject to any related financial covenants or operational restrictions.
Japanese Syndicate Loan
In September 2024, D&M Holdings, Inc., entered into a syndicate loan (Japanese Syndicate Loan) of ¥1.25 billion (approximately $7.9 million) with The Shoko Chukin Bank as the Agent, payable in installments through August 2029, with interest at a rate equal to 3-month TIBOR plus a fixed spread of 0.70% per annum. In connection with the execution of the Japanese Syndicate Loan, the Company incurred an arrangement fee of ¥25.0 million (approximately $0.2 million). These costs were capitalized and are being amortized over the term of the loan.
The Japanese Syndicate Loan agreement contains customary affirmative and negative covenants, such as financial reporting requirements and customary covenants that restrict the borrower’s ability to, among other things, provide collateral for obligations borne by the borrower, and financial covenants. As of December 28, 2024, the Company was in compliance with all covenants under the Japanese Syndicate Loan agreement.
As of December 28, 2024, the aggregate maturities of principal on all debt for each of the next five years and thereafter are as follows:
Fiscal year
Amount
(in millions)
2025$37.3 
202618.3
2027702.6
20282.9
20291.9 
Thereafter2.2
Total$765.2 
v3.25.0.1
Other Non-Current Liabilities
 12 Months Ended
Dec. 28, 2024
Other Liabilities Disclosure [Abstract]  
Other Non-Current Liabilities
16. Other Non-Current Liabilities
Other non-current liabilities consist of the following:
(in millions)December 28,
2024		December 30,
2023
Lessee non-current lease liabilities$59.5 $45.8 
Unrecognized tax benefits28.6 24.4 
Deferred revenue, non-current27.4 26.4 
Projected benefit obligation9.0 9.5 
Indirect tax payable, non-current— 8.4 
Income tax payable, non-current— 7.1 
Other3.6 7.9 
Total other non-current liabilities
$128.1 $129.5 
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 23, “Income Taxes”, for further details.
v3.25.0.1
Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
17. Derivative Instruments and Hedging Activities
Derivative Instruments - Cash Flow Hedges
The Company’s cash flow hedges are designed to mitigate the risk of exposure to variability in expected future cash flows of recognized assets, liabilities or any unrecognized forecasted transactions. Since July 2022, the Company has entered into various interest rate swaps that are designated as cash flow hedges on a substantial portion of the Company’s outstanding debt. The interest rate swaps reduce the variability of cash flow payments for the Company by converting the variable interest rate on the Company’s long-term debt to an average fixed interest rate of 3.20%. These contracts, carried at fair value, have maturities of approximately three years. All hedging relationships were highly effective at achieving offsetting changes in cash flows attributable to the risk being hedged. The Company used a regression analysis at hedge inception to assess the effectiveness of cash flow hedge and periodically thereafter.
The Company records gains and losses from the changes in the fair value of these instruments as a component of other comprehensive (loss) income. Deferred gains or losses from these designated cash flow hedges are reclassified into earnings in the period that the hedged items affect earnings. The Company does not offset fair value amounts recognized for derivative instruments in its consolidated balance sheets for presentation purposes. The following table summarizes the fair value of the hedging instruments, presented on a gross basis, as of December 28, 2024 and December 30, 2023.
Consolidated
Balance Sheets
(in millions)Balance Sheet ClassificationDecember 28,
2024		December 30,
2023
Interest rate contracts, inclusive of accrued interestOther non-current assets$6.8 $11.6 
Interest rate contracts, inclusive of accrued interest
Other non-current liabilities
(0.1)(3.6)
Total$6.7 $8.0 
The following table summarizes the gains reclassified from accumulated other comprehensive (loss) income to the consolidated financial statements for the years ended December 28, 2024, December 30, 2023 and December 31, 2022.
Consolidated
Statement of Operations
(in millions)
Location of Gain
December 28,
2024		December 30,
2023		December 31,
2022
Interest rate contracts
Non-operating gain
$14.7 $14.9 $0.7 
Total$14.7 $14.9 $0.7 
The following tables summarize the changes in accumulated other comprehensive (loss) income related to the hedging instruments:
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Beginning balance$7.8 $19.3 $— 
Amount recognized in other comprehensive income12.9 3.4 20.0 
Amount reclassified into earnings(14.7)(14.9)(0.7)
Ending balance$6.0 $7.8 $19.3 
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, the unrealized (loss) gain, net of tax was $(1.3) million, $(8.8) million and $14.7 million, respectively.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, the tax (benefit) provision related to the cash flow hedges was $(0.5) million, $(2.7) million and $4.6 million, respectively.
The Company expects to reclassify a net amount of gains of $4.4 million from accumulated other comprehensive (loss) income gain to non-operating (loss) income within the next 12 months.
v3.25.0.1
Business Combinations
 12 Months Ended
Dec. 28, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Business Combinations
18. Business Combinations
Sound United Acquisition
On April 11, 2022, the Company completed the previously announced acquisition of Sound United, pursuant to a Merger Agreement dated as of February 15, 2022, by and among the Company, Sonic Boom Acquisition Corp., a wholly-owned subsidiary of the Company (Merger Sub), Viper Holdings Corporation (Sound United), and, solely in its capacity as the Seller Representative, Viper Holdings, LLC, pursuant to which Merger Sub merged with and into Sound United, with Sound United continuing as a wholly-owned subsidiary of the Company (Merger).
Sound United is a leading innovator of premium, high-performance audio products for consumers around the world, which operates iconic consumer brands: Bowers & Wilkins®, Denon™, Marantz™, HEOS™, Classé™, Polk Audio™, Boston Acoustics™ and Definitive Technology™. The brands are linked by a commitment to the highest production standards and a focus on unparalleled audio quality and audio performance. Sound United delivers significant competitive benefits through its platform advantages, including global distribution across online, retail, and custom installation channels; a cloud-connected home ecosystem; and a state-of-the-art research and development function focused on creating the highest-quality consumer products with world-class industrial design.
The Company acquired 100% of the equity interests of Sound United for $1.0575 billion in cash, subject to adjustments based on Sound United’s net working capital, transaction expenses, cash and debt as of the closing of the Merger, payable by the Company in cash. The transaction was primarily funded with the proceeds from the Credit Facility. See Note 15, “Debt”, for additional information about the Credit Facility. There was no contingent consideration resulting from the transaction.
The results of operations of Sound United subsequent to the acquisition date and the acquired assets and assumed liabilities, including the allocation of goodwill and intangible assets, are included in the non-healthcare segment. For the period of April 11, 2022 to December 31, 2022, the Company recorded revenue of $694.9 million and a net loss of $38.6 million from Sound United. For the period of January 1, 2023 to December 30, 2023, the Company recorded revenue of $771.1 million and a net loss of $20.9 million from Sound United. For the period of December 31, 2023 to December 28, 2024, the Company recorded revenue of $697.4 million and a net loss of $309.5 million from Sound United.
Acquisition Costs
The Company recognized transaction costs related to the Sound United acquisition of $16.6 million for the year ended December 31, 2022. The Company recognized no transaction costs related to the Sound United acquisition for the year ended December 30, 2023 and December 28, 2024.
Purchase Price Allocations
The purchase price allocation for the Sound United acquisition is final. Goodwill was calculated as the excess of the consideration transferred over the fair value of the identifiable net assets acquired in a business combination and represents the future economic benefits expected to arise from intangible assets acquired that do not qualify for separate recognition, including the assembled workforce. Goodwill is not expected to be deductible for tax purposes.
The measurement period adjustments resulted primarily from valuation inputs pertaining to certain acquired assets based on facts and circumstances that existed as of the acquisition date and did not result from events subsequent to the acquisition date.
The table below summarizes the final allocation of fair value of assets acquired and liabilities assumed.
(in millions)Sound United
Cash consideration
$1,057.5 
Purchase price$1,057.5 
Assets acquired:
Cash and cash equivalents$82.6 
Accounts receivables108.5 
Inventories238.6 
Prepaid expenses and other current assets30.0 
Property, plant and equipment113.2 
Intangible assets
649.0 
Goodwill
318.0 
Long-term other assets7.4 
Total assets acquired$1,547.3 
Liabilities assumed:
Accounts payable$(118.8)
Accrued liabilities and other current liabilities(148.9)
Deferred tax liabilities
(145.1)
Other long-term liabilities(77.0)
Total liabilities assumed$(489.8)
Identifiable Intangible Assets
The following table sets forth the components of identifiable intangible assets acquired and the weighted average amortization period as of the acquisition date:
Weighted average
amortization period
(in years)
April 11,
 2022
(in millions)
Trademarks/tradenames10$6.0 
Customer relationships17196.0 
Developed technology8156.0 
Contractual license agreements1529.0 
Subtotal14 years$387.0 
Indefinite trademarks/tradenamesN/A262.0 
Total$649.0 
In determining the fair value of the identifiable intangible assets, the Company utilized various forms of the income approach, depending on the asset being valued. The estimation of fair value requires significant judgment related to cash flow forecasts, discount rates reflecting the risk inherent in each cash flow stream, competitive trends, market comparables and other factors. Other inputs included historical data, current and anticipated market conditions, and growth rates. Contractual license agreements have a weighted-average amortization period of five years until the next renewal term.
The intangible assets were valued using the following valuation approaches:
Customer relationships
The fair value of customer relationships was determined using the multi-period excess earnings method. The multi-period excess earnings method involves forecasting the net earnings expected to be generated by the asset, reducing them by appropriate returns on contributory assets and then discounting the resulting net cash flows to a present value using an appropriate discount rate.
Trademarks/tradenames
The fair values of the trademark/tradenames were determined using the relief-from-royalty method under the income approach. This involves forecasting avoided royalties, reducing them by taxes, and discounting the resulting net cash flows to a present value using an appropriate discount rate. Judgment was applied for a number of assumptions in valuing the identified intangible assets, including revenue and cash flow forecasts, survival rates, technology life, royalty rate, obsolescence and discount rate.
Developed technology
The fair values of the developed technology were determined using the relief-from-royalty method under the income approach. This involves forecasting avoided royalties, reducing them by taxes, and discounting the resulting net cash flows to a present value using an appropriate discount rate. Judgment was applied for a number of assumptions in valuing the identified intangible assets, including revenue and cash flow forecasts, survival rates, technology life, royalty rate, obsolescence and discount rate.
Contractual licensing agreements
The fair value of the contractual license agreements was determined using a variation of the multi-period excess earnings method. This method involves forecasting the net earnings expected to be generated by the asset and then discounting the resulting net cash flows to a present value using an appropriate discount rate.
Unaudited pro forma financial information
The supplemental pro forma financial information has been prepared using the acquisition method of accounting and is based on the historical financial information of Masimo and Sound United, assuming the transaction occurred on January 1, 2021. The supplemental pro forma financial information does not necessarily represent what the combined companies’ revenue or results of operations would have been had the acquisition of Sound United been completed on January 1, 2021, nor is it intended to be a projection of future operating results of the combined company. It also does not reflect any operating efficiencies or potential cost savings that might be achieved from synergies of combining Masimo and Sound United.
The unaudited supplemental pro forma financial information has been calculated after applying Masimo’s accounting policies and adjusting the results of the combined Company to reflect incremental amortization and depreciation expense resulting from the fair value adjustments for acquired intangible assets, inventory, property, plant and equipment as well as the net decrease to interest expense resulting from the elimination of the historical interest expense on Sound United’s debt that was paid off at closing partially offset by incremental interest expense resulting from the external debt borrowed by Masimo to fund the acquisition, and the corresponding income tax impact of these adjustments.
Also, during the year ended December 31, 2022, Masimo and Sound United incurred $22.4 million and $41.1 million of acquisition-related costs, respectively. These expenses are included in the pro forma net income for the twelve months ended December 31, 2022 in the table below.
There are no other material non-recurring pro forma adjustments directly attributable to the Sound United Acquisition included in the reported pro forma revenue and pro forma net income.
Twelve Months Ended
December 31,
2022
(in millions)Pro forma
Net revenue$2,293.4 
Net income $181.8 
v3.25.0.1
Equity
 12 Months Ended
Dec. 28, 2024
Equity [Abstract]  
Equity
19. Equity
Series A Junior Participating Preferred Stock and Stockholder Rights Plan
In September 2022, the Company authorized and declared a dividend of one preferred stock purchase right (Right) for each outstanding share of its common stock to stockholders of record at the close of business on September 20, 2022 (the Record Date) pursuant to a Rights Agreement, dated as of September 9, 2022 (Rights Agreement),with Broadridge Corporate Issuer Solutions, Inc. as Rights Agent. In addition, one Right was issued with each share of common stock that became outstanding after the Record Date. Each Right entitled the registered holder to purchase from the Company one thousandth of one share of the Company’s Series A junior participating preferred stock, par value $0.001 per share, at a purchase price equal to $1,000.00 per Right, subject to adjustment. Generally, the Rights were to become exercisable in the event any person or group of affiliated or associated persons acquires beneficial ownership of 10% (20% in the case of a passive institutional investor), subject to certain exceptions.
On March 22, 2023, the Company and the Rights Agent entered into an amendment (Rights Agreement Amendment) to the Rights Agreement. The Rights Agreement Amendment accelerated the expiration of the Rights to 5:00 P.M., New York time, on March 22, 2023, and the Rights Agreement terminated at such time. At the time of the termination of the Rights Agreement, all Rights distributed to holders of the Company’s common stock pursuant to the Rights Agreement expired.
Stock Repurchase Programs
In October 2021, the Board approved a 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 Company’s prior repurchase program approved in 2018. The 2021 Repurchase Program was completed in May 2022.
In June 2022, the Board approved a stock repurchase program, authorizing the Company to purchase up to 5.0 million shares of its common stock on or before December 31, 2027 (2022 Repurchase Program). The 2022 Repurchase Program became effective in July 2022. The Company expects to fund the 2022 Repurchase Program through its available cash, cash expected to be generated from future operations, the Credit Facility and other potential sources of capital. The 2022 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. No shares were repurchased pursuant to the 2022 Repurchase Program during the year ended December 28, 2024. As of December 28, 2024, 5.0 million shares remained available for repurchase pursuant to the 2022 Repurchase Program.
The following table provides a summary of the Company’s stock repurchase activities during the years ended December 28, 2024, December 30, 2023 and December 31, 2022:
Years Ended
(in millions, except per share amounts)December 28,
2024		December 30,
2023		December 31,
2022
Shares repurchased
— (1)— 3.0 (1)
Average cost per share$— $— $133.82 
Value of shares repurchased$— $— $401.5 
______________
(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.
v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation 20. Stock-Based Compensation Equity Incentive Plans
2007 Stock Incentive Plan
Effective June 1, 2017, upon the approval and ratification of the Masimo Corporation 2017 Equity Incentive Plan (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.
Total stock-based compensation expense under both the 2007 Equity Plan and the 2017 Equity Incentive Plan for the years ended December 28, 2024, December 30, 2023 and December 31, 2022 was $41.5 million, $7.0 million and $47.7 million, respectively.
Additional information related to the Company’s current equity incentive plans, stock-based award activity and valuation of stock-based awards is included below.
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:
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
(in millions, except for weighted-average exercise prices)SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price
Options outstanding, beginning of period2.7 $87.79 2.8 $83.85 2.9 $81.38 
Granted0.1 126.49 0.1 177.29 0.1 150.91 
Canceled(0.6)82.38 — 45.96 (0.1)162.77 
Exercised(0.6)39.47 (0.2)43.22 (0.1)54.53 
Options outstanding, end of period1.6 $110.70 2.7 $87.79 2.8 $83.85 
Options exercisable, end of period1.5 $105.02 2.4 $73.79 2.4 $65.83 
Total stock option expense for the years ended December 28, 2024, December 30, 2023 and December 31, 2022 was $4.6 million, $8.8 million and $11.4 million, respectively. As of December 28, 2024, the Company had $10.9 million of unrecognized compensation cost related to non-vested stock options that are expected to vest over a weighted-average period of approximately 2.7 years.
The number and weighted-average exercise price of outstanding and exercisable stock options segregated by exercise price ranges were as follows:
Year Ended
December 28,
2024
Year Ended
December 30,
2023
(in millions, except range of exercise prices and average remaining contractual life)
Options OutstandingOptions
Exercisable		Options OutstandingOptions
Exercisable
Range of Exercise PricesNumber of
Options		Average
Remaining
Contractual
Life		Number of
Options		Number of
Options		Average
Remaining
Contractual
Life
Number of
Options
$15.00 to $50.00
0.3 1.00.3 1.2 1.51.2 
$50.01 to $80.00
— 1.7— — 2.5— 
$80.01 to $120.00
0.6 2.00.6 0.7 3.70.7 
$120.01 to $160.00
0.4 4.30.3 0.4 6.00.3 
$160.01 to $200.00
0.2 4.30.2 0.3 7.00.1 
$200.01 to $230.00
— 5.2— — 6.5— 
$230.01 to $280.00
0.1 3.90.1 0.1 7.00.1 
Total
1.6 3.21.5 2.7 4.92.4 
As of December 28, 2024 and December 30, 2023, the weighted-average remaining contractual term of options outstanding was 3.2 years and 4.9 years, respectively. As of December 28, 2024 and December 30, 2023, 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 2.2 years and 2.9 years respectively.
RSUs
The number of RSUs issued and outstanding under all of the Company’s equity plans are as follows:
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
(in millions, except for weighted-average grant date fair value)
UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value
RSUs outstanding, beginning of period3.5 $105.87 3.2 $105.65 3.0 $104.13 
Granted
0.3 129.81 0.5 125.44 0.3 148.52 
Canceled(2.8)96.65 (0.1)172.19 (0.1)168.90 
Vested(0.2)146.85 (0.1)173.18 — 184.04 
RSUs outstanding, end of period0.8 $135.88 3.5 $105.87 3.2 $105.65 
Total RSU expense for the years ended December 28, 2024, December 30, 2023 and December 31, 2022 was $34.2 million, $20.1 million and $14.4 million, respectively. As of December 28, 2024, the Company had $81.4 million of unrecognized compensation cost related to non-vested RSU awards expected to be recognized and vest over a weighted-average period of approximately 2.8 years, excluding any contingent compensation expense related to certain RSUs that were granted to the Company’s former Chairman and CEO in connection with the amendment and restatement of his employment agreement. See “Employment and Severance Agreements” in Note 24, “Commitments and Contingencies” for further details on the former CEO’s employment agreement.
PSUs
The number of PSUs outstanding under all of the Company’s equity plans are as follows:
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
(in millions, except for weighted-average grant date fair value)
UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value
PSUs outstanding, beginning of period0.3 $190.04 0.3 $180.04 0.3 $168.68 
Granted(1)
0.2 
(1)
164.19 0.1 
(2)
204.67 0.3 
(3)
145.49 
Canceled(0.2)185.37 — 155.98 (0.1)139.70 
Vested(0.1)73.00 (0.1)179.42 (0.2)127.46 
PSUs outstanding, end of period0.2 $169.99 0.3 $190.04 0.3 $180.04 
(1) On February 26, 2024, the Audit Committee approved the weighted payout percentage for the 2021 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2023 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.
(2)    On February 27, 2023, the Audit Committee approved the weighted payout percentage for the 2020 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2022 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.
(3)    On February 14, 2022, the Audit Committee approved the weighted payout percentage for the 2019 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2021 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 31, 2022, the Company awarded 162,562 PSUs that will vest three years from the award date, based on the achievement of certain fiscal year 2024 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 162,562 PSUs, or 325,124 shares.
During the year ended December 30, 2023, the Company awarded 103,000 PSUs that will vest three years from the award date, based on the achievement of certain pre-established multi-year performance criteria approved by the Board. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions and the cumulative effect of any changes in the probability outcomes is recorded in the period in which the changes occur. If earned, the PSUs granted will vest upon achievement of the performance criteria, which include a relative total shareholder return (TSR) component, in the year following the evaluation and confirmation of the performance achievement criteria. The Company’s TSR is based on the Company’s common stock percentile ranking relative to the constituents of the Nasdaq Composite Index for the performance period beginning on January 1, 2023 and ending on December 31, 2025. The number of shares that may be earned can range from 0% to 200% of the target amount.
During the year ended December 28, 2024, the Company awarded 155,156 PSUs that will vest three years from the award date, based on the achievement of certain pre-established multi-year performance criteria approved by the Board. Estimates of stock-based compensation expense for an award with performance conditions are based on the probable outcome of the performance conditions and the cumulative effect of any changes in the probability outcomes is recorded in the period in which the changes occur. If earned, the PSUs granted will vest upon achievement of the performance criteria, which include a relative total shareholder return (TSR) component, in the year following the evaluation and confirmation of the performance achievement criteria. The Company’s TSR is based on the Company’s common stock percentile ranking relative to the constituents of the Nasdaq Composite Index for the performance period beginning on January 1, 2024 and ending on December 31, 2026. The number of shares that may be earned can range from 0% to 200% of the target amount.
The fair value of market-based RSUs is determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The fair value of performance-based PSUs is determined using the closing price of the Company’s common stock on the grant date. Based on management’s estimate of the number of units expected to vest, total PSU expense (benefit) for the years ended December 28, 2024, December 30, 2023 and December 31, 2022 was $2.7 million, $(21.9) million and $21.9 million, respectively. The PSU benefit amounts for the years ended December 28, 2024, December 30, 2023 and December 31, 2022 relate to adjustments for the expected life-to-date performance of the PSU. As of December 28, 2024, the Company had $13.3 million of unrecognized compensation cost related to non-vested PSU awards expected to be recognized and vest over a weighted-average period of approximately 1.2 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
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Risk-free interest rate
3.3% to 4.2%
3.6% to 4.2%
1.0% to 1.9%
Expected term (in years)
4.6 years to 5.9 years
5.1 years to 5.9 years
5.1 years to 5.7 years
Estimated volatility
33.3% to 42.6%
31.6% to 36.7%
31.2% to 38.9%
Expected dividends0%0%0%
Weighted-average fair value of options granted$59.60 per share$75.08 per share$46.69 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 the years ended December 28, 2024, December 30, 2023 and December 31, 2022 are based on historical and implied volatilities of the Company’s share price over the expected term of the option.
Expected dividends. The Board may from time to time declare, and the Company may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law. Any determination to declare and pay dividends will be made by the Board and will depend upon the Company’s results of operations, earnings, capital requirements, financial condition, business prospects, contractual restrictions and other factors deemed relevant by the Board. In the event a dividend is declared, there is no assurance with respect to the amount, timing or frequency of any such dividends. The dividend declared in 2012 was deemed to be a special dividend and there is no assurance that special dividends will be declared again during the expected term. Based on this uncertainty and unknown frequency, for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, 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 the years ended December 28, 2024, December 30, 2023 and December 31, 2022 was $8.3 million, $9.5 million and $12.4 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 December 28, 2024 was $108.5 million. The aggregate intrinsic value of options exercisable with an exercise price less than the closing price of the Company’s common stock, as of December 28, 2024 was $105.8 million. The aggregate intrinsic value of options exercised during the years ended December 28, 2024, December 30, 2023 and December 31, 2022 was $58.2 million, $19.0 million and $14.6 million, respectively.
The total income tax benefit recognized in the consolidated statements of operations for stock-based compensation expense was $5.7 million, $2.9 million and $2.5 million for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, 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 millions)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Cost of goods sold$1.0 $1.1 $1.0 
Selling, general and administrative25.2 (1.5)32.9 
Research and development15.3 7.4 13.8 
Total
$41.5 $7.0 $47.7 
v3.25.0.1
Employee Benefits
 12 Months Ended
Dec. 28, 2024
Postemployment Benefits [Abstract]  
Employee Benefits
21. Employee Benefits
Defined Contribution Plans
In the U.S., the Company sponsors one 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. On April 11, 2022, in connection with the Sound United acquisition, the MRSP was amended to allow for participation by eligible Sound United employees.
The MRSP matches 100% of a participant’s salary deferral, up to 3% of each participant’s compensation for the pay period, subject to a maximum amount. The Company may also contribute to the MRSP on a discretionary basis. The Company contributed $4.6 million, $4.9 million and $4.5 million to the MRSP for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, respectively, all in the form of matching contributions.
In addition, some of the Company’s international subsidiaries also have defined contribution plans to which both the employee and employers are eligible to make contributions. The Company contributed $6.1 million and $5.5 million for the year ended December 28, 2024 and December 30, 2023, respectively. The Company contributed immaterial amounts to these plans for the year ended December 31, 2022.
Defined Benefit Plans
The Company sponsors several international noncontributory defined benefit plans. In connection with the Sound United acquisition, the Company assumed sponsorship of several international defined benefit plans and post-retirement benefit plans. All defined benefit plans and post-retirement benefit plans assumed by the Company were closed to new participants prior to the Sound United acquisition.
The service cost component for the defined benefit plans are recorded in operating expenses in the consolidated statement of operations. All other cost components are recorded in non-operating (loss) in the consolidated statement of operations.
The following table sets forth the funded status and amounts recognized in the consolidated balance sheet for the Company’s defined benefit plans.
(in millions)December 28,
2024		December 30,
2023
Plan Assets
Fair value of plan assets at beginning of year$23.1 $22.2 
Employer contributions1.9 0.4 
Participant contributions0.7 0.6 
Realized net gains (losses) on plan assets0.3 1.1 
Benefits paid(1.4)0.8 
Foreign currency revaluation and translation gains and (losses)
(1.8)(2.0)
Fair value of plan assets at end of year$22.8 $23.1 
Projected Benefit Obligation
Projected benefit obligation at beginning of year$32.6 $32.3 
Service cost1.5 1.2 
Participant contributions0.7 0.6 
Interest cost0.4 0.5 
Actuarial gains (losses)0.4 2.3 
Benefits paid(2.2)
(1)
(0.5)
Foreign currency revaluation and translation gains and (losses)
(1.6)(3.8)
Projected benefit obligation at end of year$31.8 $32.6 
Funded status$(9.0)$(9.5)
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024, resulting in a negative allocation as of year end.
The net decrease in the fair value of the Company’s plan assets for the year ended December 28, 2024 was principally driven by higher benefits paid of $2.2 million on the plan assets, partially offset by higher employer contributions of $1.5 million on the plan assets.
The net decrease in the Company’s projected benefit obligation for the year ended December 28, 2024 was primarily driven by higher foreign currency revaluation of $2.2 million on the projected benefit obligation, partially offset by lower actuarial gains of $1.9 million on the projected benefit obligation.
The underfunded balance of $9.0 million and $9.5 million was included in the long-term other liabilities on the consolidated balance sheets as of December 28, 2024 and December 30, 2023, respectively.
The Company’s consolidated statement of operations reflect the following components of net periodic defined benefit costs:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023
Service cost$1.5 $1.2 
Interest cost0.4 0.5 
Amortization of net losses0.1 — 
Amortization of prior service costs (credits)(0.1)— 
Expected (gains) on plan assets(0.7)(0.7)
Net periodic defined benefit plan cost$1.2 $1.0
The amounts provided above for amortization of prior service costs (credits) and amortization of net losses represent the reclassifications of prior service cost (credits) and net actuarial gain (losses) that were recognized in accumulated other comprehensive (loss) income in prior periods.
Classification of amounts recognized in the consolidated balance sheets are as follows:
(in millions)December 28,
2024		December 30,
2023
Non-current liability$9.0 $9.5 
International defined benefit plans with accumulated benefit obligations in excess of fair value of plan assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Projected benefit obligation$31.8 $32.6 
Accumulated benefit obligation29.9 28.3 
Fair value of plan assets22.8 23.1 
Plan Assumptions
The Company determines actuarial assumptions on an annual basis. The actuarial assumptions used for the Company’s defined benefit plans for international participants will vary depending on the applicable country. On a weighted-average basis, the following assumptions were used to determine benefit obligations and to determine net periodic benefit cost:
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Assumptions - benefit obligations:
Discount rate1.09 %1.35 %
Rate of compensation increase1.16 1.04 
Assumptions - net periodic benefit costs:
Discount rate 1.00 %1.91 %
Rate of compensation increase1.48 1.43 
Expected long-term return on plan assets(1)
3.43 3.53 
Interest credit rate1.26 1.98 
______________
(1)     The pension expected return on assets assumption is derived primarily from underlying investment allocations and historical risk premiums per each plan, adjusted for current and future expectations, such as easing of global inflationary pressure.
Plan Assets
The weighted-average asset allocations at year end by asset category were as follows:
Actual Allocation
Asset category
December 28,
2024		December 30,
2023
Cash and cash equivalents(1)
(5.7)%(5.0)%
Equity securities40.6 35.0 
Debt securities41.9 47.0 
Other
23.2 24.0 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024 and December 30, 2023, resulting in a negative allocation as of year end.
The Plan invests in a diversified portfolio of assets intended to minimize risk of poor returns while maximizing expected portfolio returns. The actual portfolio investment mix may, from time to time, deviate from the established target mix due to various factors such as normal market fluctuations, the reliance on estimates in connection with the determination of allocations and normal portfolio activity such as additions and withdrawals. The target allocations are subject to periodic review, including a review of the asset portfolio’s performance, by the named fiduciary of the plans. Such plans have local independent fiduciary advisors with responsibility for the development and oversight of the investment policy, including asset allocation decisions. In making such decisions, consideration is given to local regulations, investment practices and funding rules. The fair value of investments is included in the fair value hierarchy, see Note 2, “Summary of Significant Accounting Policies”. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
Plan Contributions
The Company determines expected funding needs of its defined benefit pension plans based on legal funding requirements, plus any additional amounts that may be appropriate considering the funded status of the plans, tax consequences, the cash flow generated by the Company and other factors. The Company made $1.9 million and $0.4 million contributions to its defined benefit plans for the years ended December 28, 2024 and December 30, 2023, respectively. The Company expects to contribute $1.8 million for the fiscal year 2025.
Estimated Future Benefit Payments
The estimated future benefit payments, based upon the same assumptions used to measure the benefit obligations and expected future employee service, were as follows:
(in millions)Year Ended
December 28,
2024
2025
$1.6 
2026
2.1 
2027
2.3 
2028
2.0 
2029
2.5 
Thereafter
9.5 
Total $20.0 
v3.25.0.1
Non-operating Loss
 12 Months Ended
Dec. 28, 2024
Nonoperating Income (Expense) [Abstract]  
Non-operating Loss
22. Non-operating Loss
Non-operating loss consists of the following:
(in millions)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Interest income$4.8 $3.0 $1.8 
Realized and unrealized foreign currency gain (loss)0.2 (1.1)7.3 
Interest expense(43.6)(50.3)(25.7)
Total non-operating loss$(38.6)$(48.4)$(16.6)
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Income Taxes 23. Income Taxes
The components of income before (benefit) provision for income taxes are as follows:
(in millions)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
United States$(67.1)$9.1 $77.6 
Foreign(238.2)79.0 115.8 
Total
$(305.3)$88.1 $193.4 
The following table presents the current and deferred (benefit) provision for income taxes:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Current:
Federal$15.0 $15.0 $48.7 
State3.4 3.5 6.1 
Foreign19.4 23.7 34.4 
Subtotal$37.8 $42.2 $89.2 
Deferred:
Federal$(19.0)$(12.5)$(20.5)
State(8.3)(9.0)(8.7)
Foreign(10.9)(14.1)(10.1)
Subtotal
(38.2)(35.6)(39.3)
Total
$(0.4)$6.6 $49.9 
Included in the fiscal year 2024, 2023 and 2022 tax (benefit) provisions are increases of $5.4 million, $7.4 million and $4.5 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
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Statutory regular federal income tax rate21.0 %21.0 %21.0 %
Foreign income taxed at different rates6.7 1.1 — 
Excess stock-based compensation1.8 (3.2)(1.2)
State provision, net of federal benefit1.3 (4.9)(1.0)
Research and development tax credits1.2 (5.1)(1.7)
Derecognition of uncertain tax position1.1 (2.3)(0.8)
Transaction-related costs— — 0.9 
Tax credit— (9.2)— 
Nondeductible executive compensation(1.2)(1.6)2.9 
U.S. tax on foreign income, net(3.5)10.0 4.8 
Goodwill impairment(27.4)— — 
Other(0.9)1.6 0.9 
Total
0.1 %7.4 %25.8 %
As of December 28, 2024, the Company has accumulated undistributed earnings generated by its foreign subsidiaries of approximately $997.5 million. Because such earnings have previously been subject to U.S. tax are eligible for a dividends received deduction when repatriated, 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 $1.9 million. The Company intends, however, to indefinitely reinvest the remaining $911 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 $26.8 million.
The components of the deferred tax assets are as follows:
(in millions)December 28,
2024		December 30,
2023
Deferred tax assets:
Net operating losses$54.8 $53.7 
Capitalized R&D44.6 33.0 
Accrued liabilities39.3 24.6 
Tax credits36.7 33.2 
Deferred revenue27.6 28.0 
Operating lease liabilities13.8 9.7 
Interest11.8 15.6 
Stock-based compensation9.4 12.3 
Inventory Reserve1.1 — 
Other7.2 7.3 
Total246.3 217.4 
Valuation allowance(26.5)(18.9)
Total deferred tax assets$219.8 $198.5 
Deferred tax liabilities:
Inventory$(0.8)$(0.8)
Interest rate hedge(1.5)(1.9)
Withholding taxes on undistributed foreign earnings(3.1)(3.1)
Property and equipment(11.4)(14.4)
State taxes and other(12.4)(10.4)
Operating lease liabilities(17.2)(11.8)
Intangible assets(129.6)(160.5)
Other(0.3)(0.2)
Total deferred tax liabilities(176.3)(203.1)
Net deferred tax assets$43.5 $(4.6)
As of December 28, 2024, the Company has $43.7 million and $157.1 million of net operating losses from federal and various state jurisdictions, which will begin to expire in 2037 and 2025, respectively. Additionally, the Company has $125.9 million of net operating losses from foreign jurisdictions that will begin to expire in 2025. The Company also has federal research and development tax credits of $2.8 million that will begin to expire in 2031, state research and development tax credits of $35.8 million that will carry forward indefinitely, $2.7 million of foreign tax credits on research and development expenditures that will begin to expire in 2042 and $6.8 million of Swiss tax credits that will begin to expire in 2026. 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 December 31, 2022, 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 December 28, 2024, there was an increase in the valuation allowance of $7.6 million, primarily due to the losses of certain foreign operations and certain state jurisdictions that the Company believes are not likely to be realized.
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023
Unrecognized tax benefits (gross), beginning of period$33.0 $26.1 
Increase from tax positions in current period7.2 7.9 
Increase from tax positions in prior period1.8 1.3 
Lapse of statute of limitations(3.5)(2.3)
Unrecognized tax benefits (gross), end of period$38.5 $33.0 
The amount of unrecognized benefits which, if ultimately recognized, could favorably affect the tax rate in a future period was $35.6 million and $30.6 million as of December 28, 2024 and December 30, 2023, respectively. It is reasonably possible that the amount of unrecognized tax benefits in various jurisdictions may change in the next twelve 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 twelve months cannot currently be made.
For the year ended December 28, 2024 the Company recorded an expense of $0.6 million for interest and penalties related to unrecognized tax benefits as part of income tax expense. For the year ended December 30, 2023, the Company recorded a benefit of $1.0 million for interest and penalties related to unrecognized tax benefits as part of income tax expense. For the year ended December 31, 2022, the Company recorded a benefit of $0.3 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 December 28, 2024 and December 30, 2023 were $2.7 million and $2.1 million, respectively.
The Company conducts business in multiple jurisdictions and, as a result, one or more of the Company’s subsidiaries files income tax returns in U.S. federal, various state, local and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters through fiscal year 2020. All material state, local and foreign income tax matters have been concluded through fiscal year 2017.
The Company does not believe that the results of any tax authority examination would have a significant impact on its consolidated financial statements.
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
24. Commitments and Contingencies

Employment and Severance Agreements
The Company and Mr. Kiani entered into an employment agreement on November 4, 2015 (as thereafter amended and waived, 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 would be entitled to receive (i) 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, (ii) immediate vesting of Mr. Kiani’s stock options and equity awards, (iii) 2.7 million restricted shares units (RSUs), and (iv) a cash payment of $35 million (the Cash Payment and, together with the RSUs, the Special Payment). As set forth in the Amended Employment Agreement, a Qualifying Termination includes a termination by Mr. Kiani for “Good Reason” (as defined in the Amended Employment Agreement), which includes, among other things, (i) any diminution of Mr. Kiani’s responsibilities, duties and authority as set forth in Section 2 of the Amended Employment Agreement, (ii) Mr. Kiani ceasing to serve as Company’s CEO and Chairman (the Chairman Provision), and (iii) a “Change-in-Control” (as defined in the Amended Employment Agreement).
In the event of a ”Change-in-Control” 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.
On January 14, 2022, the Company entered into the Second Amendment to the Amended Employment Agreement (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.
On February 8, 2023, Mr. Kiani agreed that the valid election to the Company’s Board of Directors (Board) at the Company’s 2023 Annual Meeting of Stockholders of any two individuals nominated by the Company’s stockholders in lieu of two of the Company’s then-current Board members would not be deemed to constitute a Change in Control for purposes of Section 9(iii) of the Amended Employment Agreement.
On March 22, 2023, in connection with the Board’s unanimous selection of H Michael Cohen as Lead Independent Director, Mr. Kiani voluntarily irrevocably and permanently waived his right to treat the appointment of any lead independent director as “Good Reason” to terminate his employment under the Amended Employment Agreement, and waived his right to receive contractual separation payments on this basis.
On June 5, 2023, Mr. Kiani, pursuant to a Limited Waiver (Waiver), unconditionally, irrevocably and permanently waived his right, pursuant to the Amended Employment Agreement, to assert that a “Change in Control” has occurred pursuant to Section 9(iii) of the Amended Employment Agreement unless the individuals who constituted the Board at the beginning of the twelve (12) month period immediately preceding such change, as defined in Section 9(iii) of the Amended Employment Agreement, cease for any reason to constitute one-half or more of the directors then in office. In addition, Mr. Kiani agreed that, for purposes of determining whether such a “Change in Control” has occurred, any individual elected to the Board at the Company’s 2023 Annual Meeting of Stockholders will be treated as a member of the Board at the beginning of the twelve (12) month period.
As a result of Mr. Kiani’s execution of the Waiver on June 5, 2023, which waived certain of the “Change in Control” provisions in the Amended Employment Agreement, the Company remeasured 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 Amended Employment Agreement, as amended by the Second Amendment, and the expense was determined to be approximately $479.7 million.
On September 19, 2024, at the Company’s 2024 Annual Meeting of Stockholders, the Company’s stockholders voted to not reelect Mr. Kiani to the Board. Additionally, on September 19, 2024, after the Company’s 2024 Annual Meeting of Stockholders, Mr. Kiani delivered a notification to the Board stating his decision to resign from his position of CEO of the Company and filed a claim in California Superior Court relating to his Amended Employment Agreement (the Kiani California Litigation), seeking, among other things, declaratory relief that he had validly terminated his employment for “Good Reason” (as defined in the Amended Employment Agreement), and that he was entitled to certain benefits provided in the Amended Employment agreement upon termination for “Good Reason”.
Following an investigation by outside counsel, in which counsel collected and reviewed relevant documents, it was determined that the Company had grounds to terminate Mr. Kiani’s employment for cause. On October 24, 2024, the Board adopted resolutions to terminate Mr. Kiani’s employment for cause, effective that day. The termination was not a Qualifying Termination (as defined in the Amended Employment Agreement). Consequently, the Company believes Mr. Kiani is not entitled to receive the Special Payment under the Amended Employment Agreement.
Also on October 24, 2024, the Company filed claims against Mr. Kiani in the Court of Chancery of the State of Delaware (the Kiani Delaware Litigation), seeking judicial declarations that numerous provisions in Mr. Kiani’s Amended Employment Agreement, including the Special Payment, are invalid, unenforceable, and amount to a waste of corporate assets and, therefore, that Mr. Kiani is not entitled to receive the Special Payment. The Company’s complaint alleges that the Company’s directors at the time of the initial adoption of Mr. Kiani’s Amended Employment Agreement and at the adoption of subsequent amendments abdicated their fiduciary duties as a matter of Delaware law by approving the Amended Employment Agreement, which contained provisions intended to entrench Mr. Kiani’s control of the Company indefinitely.
On November 13, 2024 we entered into an employment agreement (Brennan Agreement) with Ms. Brennan, who the Board appointed Interim CEO on September 24, 2024. The Brennan Agreement, effective as of the September 24, 2024 appointment, has a term of six months unless earlier terminated by its terms (Brennan Term).
The Brennan Agreement provides for an annual base salary of $1,042,000. Additionally, Ms. Brennan is eligible for a discretionary bonus of a target amount equal to $621,250 at the end of the Brennan Term, with the actual amount to be determined at the discretion of the Board.
Under the Brennan Agreement, Ms. Brennan has been granted an equity award of 8,916 RSUs, which will vest in one installment on the first to occur of (i) the March 24, 2025 and (ii) the appointment of a new Chief Executive Officer of the Company. The RSUs will be granted under Company’s 2017 Equity Incentive Plan, as amended and restated, or its successor (2017 Equity Plan) and subject to the terms of the 2017 Equity Plan and an award agreement with terms and conditions consistent with grants made to other Company employees. Each RSU represents the right to receive one share of Company common stock after the vesting date.
Ms. Brennan is entitled to participate in all Company employee benefits plans and programs maintained by the Company from time to time, at a level consistent with the benefits provided to other senior executives, subject to the provision of such plans and programs.
As of December 28, 2024, 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 (the Severance 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.
On January 17, 2025, the Company and Ms. Catherine Szyman entered into an offer letter (the Offer Letter”) in respect of her service as the next CEO of Masimo, effective as of February 12, 2025 (the “Effective Date”). Under the Offer Letter, Ms. Szyman’s will receive an initial annual base salary of $1,000,000, a target annual bonus opportunity of 100% of base salary and a maximum annual bonus opportunity equal to 200% of such target, and an annual target long-term incentive award opportunity of $7,000,000. To the extent that the Company determines after the Effective Date to adopt a policy for the vesting of performance stock units upon retirement, any such retirement policy that applies to Ms. Szyman will be no worse than the attainment of 60 years of age and at least five years of continuous employment with the Company. Ms. Szyman will also be eligible to participate in the Company’s employee benefit plans and programs applicable to senior executives of the Company generally, as may be in effect from time to time.
Willow Cross-Licensing Agreement Provisions
The Company’s Cross-Licensing Agreement with Willow contains annual minimum aggregate royalty obligations for use of the rainbow® licensed technology, which is a perpetual global license. Prior to a change in control, which is defined in the Willow Cross-Licensing Agreement to include, among other things, Mr. Kiani ceasing to serve as CEO of either the Company or Willow, the Company’s annual minimum royalty obligation is $5.0 million. Upon a change in control of the Company or Willow: (i) all rights to the “Masimo” trademark will be assigned to Willow if the surviving or acquiring entity ceases to use “Masimo” as a company name and trademark; (ii) the option to license technology developed by Willow 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 Willow; and (iii) the minimum aggregate annual royalties payable to Willow 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 rainbow® parameter (with no maximum ceiling for non-vital sign measurements). Any payment due annually to Willow resulting from a change in control of the Company is less than what the Company paid to Willow for licensing rights in 2022 or 2023.
On October 24, 2024, a change in control as defined in the Willow Cross-Licensing Agreement occurred when Mr. Kiani’s employment as the Company’s CEO was terminated, resulting in a payment of $2.5 million for the licensing of Willow blood glucose monitoring technology. A change in control does not otherwise impact the scope or duration of the license rights. No additional accruals or payments were made in connection with the change in control under the Willow Cross-Licensing Agreement.
Purchase Commitments
Pursuant to contractual obligations with vendors, the Company had $291.2 million of purchase commitments as of December 28, 2024 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 December 28, 2024, the Company had approximately $4.8 million in outstanding unsecured bank guarantees.
In certain circumstances, the Company also provides limited indemnification within its various customer contracts whereby the Company indemnifies the parties to whom it sells its products with respect to potential infringement of intellectual property, and against bodily injury caused by a defective Company product. It is not possible to predict the maximum potential amount of future payments under these or similar agreements, due to the conditional nature of the Company’s obligations and the unique facts and circumstances involved. As of December 28, 2024, the Company had not incurred any significant costs related to contractual indemnification of its customers.
Fees Agreements
On January 1, 2024, the Company entered into a one year alternative fee agreement (Fee Agreement) with respect to certain on-going legal fees and costs charged by a vendor. The Fee Agreement imposes certain limits on a quarterly and annual basis for actual legal fees incurred by the vendor that are payable based on work performed related to litigation matters against Apple (see the heading “Litigation” under Note 24, “Commitments and Contingencies” for further details). If the vendor is successful in obtaining a favorable judgment for the Company on any claim or counterclaim after exhaustion or dismissal of any appeals, or upon settlement resulting in monetary consideration to the Company, the vendor will be paid a success fee equal to three times the amount of the excess of the annual legal fee limit within 60 days after entry of a judgement or the effective date of any settlement. As of December 28, 2024, the potential success fee that could be payable if the above event occurs is approximately $18.6 million. Amounts due to the vendor under this Fee Agreement will be recognized when probable and reasonably estimable.
In connection with the potential separation of the Company’s consumer businesses, the Company entered into contingent or discretionary fee agreement with various service providers, advisors and consultants. The Company is unable to reasonably estimate the contingent fees due under these agreement at this time. Amounts due will be recognized when probable and reasonably estimable.
Endorsement Agreements
The Company entered into two endorsement agreements, effective on February 1, 2024 and April 12, 2024, respectively, with terms ranging from 18 months to 36 months, for an approximate total commitment of $11.5 million, plus applicable taxes. One of these agreements also contains certain royalty payments provisions based on sales of particular products, with a minimum guaranteed royalty payment of $0.5 million.
The Company terminated one endorsement agreement, effective October 22, 2024, and recorded a charge of $2.0 million in connection with such termination, which was recorded to selling, general and administrative expenses.
As of December 28, 2024, the outstanding amount of the obligations under the one remaining endorsement agreement was approximately $5.8 million.
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 with major financial institutions. As of December 28, 2024, the Company had $177.6 million of bank balances, of which $7.9 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 healthcare products to U.S. hospitals depends in part on its relationships with GPOs. Many existing and potential healthcare 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 December 28, 2024, December 30, 2023 and December 31, 2022, revenue from the sale of the Company’s healthcare products to customers that are members of GPOs approximated 56.9%, 53.2% and 53.8% of healthcare revenue, respectively.
For the years ended December 28, 2024, December 30, 2023 and December 31, 2022, the Company had sales through one just-in-time healthcare distributor that represented 12.3%, 11.2%, and 10.1% of consolidated revenue, respectively.
As of December 28, 2024 and December 30, 2023, one healthcare customer represented 8.1% and 6.4%, respectively, of the Company’s consolidated accounts receivable balance. The receivable balance related to such healthcare customer is fully secured by a letter of credit.
As of December 28, 2024, there were no customer concentration risks associated with the Company’s non-healthcare business.
Litigation
On January 9, 2020, the Company filed a complaint against Apple Inc. (Apple) in the United States District Court for the Central District of California for infringement of a number of patents, for trade secret misappropriation, and for ownership and correction of inventorship of a number of Apple patents listing one of its former employees as an inventor. The Company is seeking damages, injunctive relief, and declaratory judgment regarding ownership of the Apple patents. Apple filed petitions for Inter Partes review (IPR) of the asserted patents in the U.S. Patent and Trademark Office (PTO). The PTO instituted IPR of the asserted patents. On October 13, 2020, the District Court stayed the patent infringement claims pending completion of the IPR proceedings. In the IPR proceedings, one or more of the challenged claims of three of the asserted patents were found valid. The challenged claims of nine of the asserted patents were found invalid. On appeal, the U.S. Court of Appeals for the Federal Circuit affirmed all the IPR decisions except it reversed a finding of invalidity for certain dependent claims of one Masimo patent. From April 4, 2023 through May 1, 2023, the District Court held a jury trial on the trade secret, ownership, and inventorship claims. The District Court granted Apple’s motion for judgment as a matter of law on certain trade secrets and denied the remainder of Apple’s motion. On May 1, 2023, the District Court declared a mistrial because the jury was unable to reach a unanimous verdict. The District Court conducted a bench trial on the trade secret, ownership, and inventorship claims which commenced on November 5, 2024. The final argument following the bench trial occurred on for February 3, 2025. The stay of the patent infringement claims has been lifted and those claims will be tried at a later date.
On June 30, 2021, the Company filed a complaint with the U.S. International Trade Commission (ITC) against Apple for infringement of a number of other patents. The Company filed an amended complaint on July 12, 2021. On August 13, 2021, the ITC issued a Notice of Institution of Investigation on the asserted patents. From June 6, 2022 to June 10, 2022, the ITC conducted an evidentiary hearing. In July and August 2022, Apple filed petitions for IPR of the asserted patents in the PTO. On January 10, 2023, a United States Administrative Law Judge in Washington, D.C. ruled that Apple violated Section 337 of the Tariff Act of 1930 (Section 337), as amended, by importing and selling within the United States certain Apple Watches with light-based pulse oximetry functionality and components, which infringe several claims of the Company’s pulse oximeter patents. On January 24, 2023, the United States Administrative Law Judge further recommended that the ITC issue an exclusion order and a cease and desist order on certain Apple Watches. On October 26, 2023, the ITC issued a Notice of Final Determination finding a violation of Section 337 by Apple. The ITC determined that that appropriate form of relief is a Limited Exclusion Order (LEO) prohibiting the unlicensed entry of infringing wearable electronic devices with light-based pulse oximetry functionality manufactured by or on behalf of Apple, and a Cease and Desist Order (CDO). The LEO and CDO went into effect after the 60-day Presidential review period expired. The LEO and CDO are currently in effect. Apple’s appeal to the Federal Circuit is pending. On January 30, 2023, the PTO denied institution of IPR proceedings for the Company’s pulse oximeter patents that the ITC ruled were infringed. With respect to the other patents asserted at the ITC, the PTO denied institution of IPR proceedings for two patents and instituted IPR proceedings for two patents in January and February 2023. In the IPR proceedings, one or more of the challenged claims were found valid, while others were found invalid. Appeals for the two IPRs are pending. On January 12, 2024, the U.S. Customs and Border Protection Exclusion Order Enforcement Branch issued a ruling letter allowing importation of certain Apple Watches with the blood oxygen feature disabled.
On October 20, 2022, Apple filed two complaints against the Company in the U.S. District Court for the District of Delaware alleging that the Masimo W1® watch infringes six utility and four design patents. Apple is seeking damages and injunctive relief. On December 12, 2022, the Company counterclaimed for monopolization, attempted monopolization, false advertising (and related causes of action) and infringement of ten patents. The Company is seeking damages and injunctive relief. On May 5, 2023, the Court ordered that the two cases be coordinated through the pre-trial stage. The Court held a case management conference in March 2024. On October 7, 2024, the Court granted summary judgement dismissing the Company’s inequitable conduct defense and counterclaim. The Court held a jury trial in October 2024 on Apple’s patent claims. The jury found that Company’s current product offerings do not infringe any Apple patents. The jury found a discontinued version of the Masimo W1® watch infringed one design patent and a discontinued version of the Masimo W1® watch charger infringed a second design patent. The jury awarded Apple a total of $250. The Company’s patent, false advertising, and antitrust counterclaims will be tried at a later date. The Company intends to vigorously pursue all of its claims against Apple and believes the Company has good and substantial defenses to Apple’s claims, but there is no guarantee that the Company will be successful in these efforts.
On August 22, 2023, a putative class action complaint was filed by Sergio Vazquez against the Company and members of its management alleging violations of the federal securities laws. On November 14, 2023, the court appointed Boston Retirement System, Central Pennsylvania Teamsters Pension Fund-Defined Benefit Plan, and Central Pennsylvania Teamsters Pension Fund-Retirement Income Plan 1987 as lead plaintiffs. The lead plaintiffs filed an amended complaint on February 12, 2024. The amended complaint alleges that the Company and members of its management, from May 4, 2022 through August 8, 2023, disseminated materially false and misleading statements and/or concealed material adverse facts relating to the performance of its healthcare business and the success of the Company’s legacy Sound United business. The Company moved to dismiss the amended complaint on April 29, 2024. On November 5, 2024, the court granted the motion in part, allowing the surviving claims to proceed to discovery. The Company believes it has good and substantial defenses to the claims in the amended complaint, but there is no guarantee that the Company will be successful in these efforts.
On May 1, 2024, a purported stockholder of the Company, Linda McClellan, filed a derivative action in the U.S. District Court for the Southern District of California against certain of Masimo’s current and former executives and directors, and Masimo as nominal defendant. The complaint alleges, among other things, that the defendants breached their fiduciary duties owed to Masimo by allowing or permitting false or misleading statements to be disseminated regarding the performance of the Masimo’s healthcare business and the success of the Company’s legacy Sound United business. The complaint also asserts causes of action for violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (15 U.S.C.§ 78j(b)) and Rule 10b-5 promulgated thereunder, aiding and abetting breach of fiduciary duty, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets.
On May 16, 2024, a purported stockholder of the Company, Dianne Himmelberger, filed a similar derivative action in the U.S. District Court for the Southern District of California (collectively, Derivative Actions). On July 22, 2024, the Court consolidated the Derivative Actions and stayed them until the motion to dismiss the Securities Class Action has been (i) denied in whole or in part, and no amended complaint is subsequently filed; or (ii) granted with prejudice, and any appeals pertaining to the motion to dismiss have concluded, or the time for seeking appellate review has passed with no further action from the Securities Class Action parties.
In August 2023, the Company determined to initiate a voluntary recall of select Rad-G® products in connection with an issue that can result in an unintentional change in the power state of the device. On February 14, 2024, the Company initiated a voluntary recall. On February 21, 2024, the Company received a subpoena from the Department of Justice (DOJ) seeking documents and information related to the Company’s Rad-G® and Rad-97® products, including information relating to complaints surrounding the products and the Company’s decision to recall the Rad-G®. On March 25, 2024, the Company received a civil investigative demand from the DOJ pursuant to the False Claims Act, 31 U.S.C §§ 3729-3733, seeking documents and information related to customer returns of the Company’s Rad-G® and Rad-97® products, including returns related to the Company’s recall of select Rad-G® products in 2024. The Company is investigating the reasons for the delay between August 2023 and February 2024 when the recall was initiated. The Company is cooperating with the government and may expend significant financial and managerial resources in connection with responding to the subpoena and any related investigation or any other future requests for information.
The Company received a subpoena from the Securities and Exchange Commission dated March 26, 2024 seeking documents and information relating to allegations of potential accounting irregularities and internal control deficiencies from former employees within the Company’s accounting department.
With respect to each of the subpoenas and the investigative demand described above, the Company is cooperating with the government and may expend significant financial and managerial resources in connection with responding to the subpoenas and investigative demand and any related investigation or any other future request for information. In addition, requests and investigation of this nature may lead to the assertion of claims or the commencement of legal proceedings against the Company, which in turn may lead to material fines, penalties or other liabilities.
On July 15, 2024, the Company commenced litigation against Politan, including Mr. Koffey and Ms. Brennan, members of the Board, in the U.S. District Court for the Central District of California seeking, among other things, an order declaring that Politan’s proxy materials for the Company’s 2024 Annual Meeting of Stockholders violated Section 14(a) of the Securities Exchange Act of 1934, as amended (Exchange Act), enjoining Politan from voting any proxies received by means of Politan’s misleading proxy materials, invalidating any proxies Politan obtained pursuant to the misleading proxy materials, and requiring Politan to correct material misstatements and omissions the proxy materials. On July 19, 2024, the Company filed a request for expedited discovery, which the District Court granted, and a motion for preliminary injunction. On August 26, 2024, the Company filed an amended complaint adding a claim that Politan had violated Section 13(d) of the Exchange Act for its disclosures related to its investment in the Company. The District Court denied the Company’s motion for a preliminary injunction after a hearing on September 9, 2024. On February 4, 2024, the District Court granted the Company’s request for dismissal of the case with prejudice.
On July 17, 2024, Politan commenced litigation against the Company, Mr. Kiani, Mr. Reynolds and Mr. Chapek, members of the Board, in the Court of Chancery of the State of Delaware alleging that Mr. Kiani, Mr. Reynolds and Mr. Chapek breached their fiduciary duties to the Company by moving the date of the Company’s 2024 Annual Meeting of Stockholders from July 25, 2024 to September 19, 2024, and seeking, among other things, the Company set the record date and hold the Company’s 2024 Annual Meeting of Stockholders as soon as possible, without further adjournment or postponement (Politan Chancery Litigation). On July 19, 2024, the Court of Chancery denied Politan’s request to reschedule the Company’s 2024 Annual Meeting of Stockholders to an earlier date. On October 25, 2024, Politan voluntarily dismissed the Politan Chancery Litigation without prejudice.
On September 19, 2024, at the Company’s 2024 Annual Meeting of Stockholders, the Company’s stockholder voted not to reelect Mr. Kiani to the Board. On September 19, 2024, after the conclusion of the Company’s 2024 Annual Meeting of Stockholders, Mr. Kiani delivered a notification to the Board starting his decision to resign from his position of CEO of the Company (the September 19 Notice). On September 23, 2024, Mr. Kiani delivered a notification to the Board further describing his decision to resign (the September 23 Notice), and, on September 25, 2024, Mr. Kiani delivered an amended notification to the Board stating his decision to resign (the September 25 Notice, and, together with the September 19 Notice and the September 23 Notice, the Notice).
The Notice further states that Mr. Kiani’s resignation is for “Good Reason” (as such term is defined in Mr. Kiani’s Amended Employment Agreement) and that the basis for his resignation for Good Reason is diminution of his “responsibilities, duties and authority as the Chairman of the Board and CEO” as defined in the Sections 2 and 7.4 of his amended Employment Agreement.
Additionally, on September 19, 2024, Mr. Kiani filed a claim in California Superior Court relating to his Amended Employment Agreement seeking, among other things, a declaratory relief that he had validly terminated his employment for “Good Reason”, and that he was entitled to certain benefits provided in the Amended Employment Agreement upon a termination for Good Reason, including the Special Payment. On October 31, 2024, Mr. Kiani filed an amended complaint, bringing additional claims for, among other things, breach of contract and violations of the California Labor Code.
The Company is evaluating the claim, and believes it has good and substantial defenses to the claims, but there is no guarantee that the Company will be successful in these efforts.
On October 24, 2024, the Company filed litigation against Mr. Kiani in the Court of Chancery of the State of Delaware, seeking judicial declarations that numerous provisions in the Mr. Kiani’s Amended Employment Agreement, including the Special Payment, are invalid, unenforceable, and amount to a waste of corporate assets and, therefore, that Mr. Kiani is not entitled to receive the Special Payment. The Company’s complaint alleges that Masimo’s directors at the time of the initial adoption of the Employment Agreement and subsequent amendments abdicated their fiduciary duties as a matter of Delaware law by approving the Amended Employment Agreement, which contained provisions intended to entrench Mr. Kiani in control of the Company indefinitely. Mr. Kiani filed a motion to dismiss the complaint on November 19, 2024.
Following an investigation by outside counsel, in which counsel collected and reviewed relevant documents, it was determined that the company had grounds to terminate Mr. Kiani’s employment for cause. On October 24, 2024, the Board adopted resolutions to terminate Mr. Kiani’s employment for cause, effective October 24, 2024. The termination was not a Qualifying Termination (as defined in the Amended Employment Agreement). Consequently, the Company believes Mr. Kiani is not entitled to receive the Special Payment under the Amended Employment Agreement.
On October 25, 2024, the Company commenced litigation in the United States District Court for the Southern District of New York against Mr. Kiani, Roderick Wong, Naveen Yalamanchi, RTW Investment, LP, RTW Investments GP, LLC, RTW Master Fund, Ltd,. RTW Offshore Fund One, Ltd., RTW Onshore Fund One, LP, RTW Innovation Master Fund, Ltd,. RTW Innovation Offshore Fund, Ltd,. RTW Innovation Onshore Fund, LP, and RTW Fund Group GP, LLC, seeking disgorgement of short-swing profits pursuant to Section 16(b) of the Exchange Act (the SDNY Litigation). The Company filed an amended complaint in the SDNY Litigation on December 30, 2024. The defendants filed motions to dismiss the SDNY Litigation on January 23, 2025. In the SDNY Litigation, the Company alleges that the defendants formed a stockholder group under Section 13(d) of the Exchange Act holding 10% or more of the Company’s common stock and engaged in short-swing trading between May and September 2024 as a part of an empty voting scheme to manipulate the vote in Mr. Kiani’s favor for the Company’s 2024 Annual Meeting of Stockholders. The Company believes the total amount of RTW’s disgorgeable profits could be substantial.
For each of the foregoing matters, the Company is unable to determine whether any loss ultimately will occur or to estimate the range of such loss; therefore, no amount of loss accrued by the Company in the accompanying consolidated financial statements. Gain contingencies, when applicable, are recognized upon being realized or realizable.
From time to time, the Company may be involved in other litigation and investigations relating to claims and matters arising out of its operations in the normal course of business. The Company believes that it currently is not a party to any other legal proceedings which, individually or in the aggregate, would have a material adverse effect on its consolidated financial position, results of operations or cash flows.
v3.25.0.1
Segment and Enterprise Reporting
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Segment and Enterprise Reporting
25. Segment and Enterprise Reporting
The Company’s reportable segments are determined based upon the Company’s organizational structure and the way in which the Company’s Chief Operating Decision Maker (CODM), the Company’s interim CEO (as of the end of fiscal year 2024), makes operating decisions, assesses financial performance, and allocates resources.
The two segments are:
•Healthcare - develops, manufactures, and markets a variety of noninvasive monitoring technologies and hospital automation® solutions and therapeutics. This segment includes the Company’s core legacy hospital business and new Masimo-technology-enabled consumer products that are distributed through many channels including e-commerce sites, leading national retailers and specialty chains globally.
•Non-healthcare - designs, develops, manufactures, markets and sells a broad portfolio of premium, high-performance audio products and services, which is currently being evaluated for separation.
The Company’s CODM uses segment gross profit, as presented in the Company’s CODM reports, as the primary measure of segment profitability. The significant segment expenses help the Company to better understand operating results. Segment information presented herein reflects the impact of these changes for all periods presented. For the year ended December 28, 2024 and December 30, 2023, intercompany revenues between healthcare and non-healthcare were $4.9 million and $7.7 million, respectively. For the year ended December 31, 2022, there was no intercompany revenue between healthcare and non-healthcare. All inter-segment transactions and balances are eliminated in consolidation for all periods presented below.
Selected information by reportable segment is presented below for the years ended December 28, 2024, December 30, 2023 and December 31, 2022:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Revenues by segment:
Healthcare$1,395.2 $1,275.5 $1,340.3 
Non-healthcare699.2 772.6 695.5 
Revenue
$2,094.4 $2,048.1 $2,035.8 
Cost of goods sold by segment:
Healthcare$520.7 $498.4 $470.1 
Healthcare other(1)
80.2 11.5 2.4 
Non-healthcare463.9 514.6 443.0 
Non-healthcare other(1)
25.2 20.1 61.5 
Cost of goods sold$1,090.0 $1,044.6 $977.0 
Gross profit:$1,004.4 $1,003.5 $1,058.8 
Healthcare
Segment gross profit
$874.5 $777.1 $870.2 
Acquired asset amortization(1)(2)
(1.8)(2.0)(2.3)
Business transition and related costs(1)(3)
(77.1)(5.6)(0.1)
Other(1)
(1.3)(3.9)— 
Non-healthcare
Segment gross profit235.3 258.0 252.5 
Acquired asset amortization(1)(2)
(17.7)(19.7)(61.5)
Business transition and related costs(1)(3)
(7.5)(0.4)— 
__________________
(1)     Management excludes certain expenses from segment gross profit. Management considers these excluded amounts to be non-recurring or non-operational and as such, are excluded from segment gross profit as this enables management to better understand operational results.
(2)     Acquired asset amortization is a non-GAAP financial measure. These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired intangible assets including, but not limited to customer relationships, intellectual property, trade names and non-competition agreements.
(3)     Business transition and related costs are a non-GAAP financial measure. These transactions represent gains, losses, and other related costs associated with business transition plans. These items may include but are not limited to severance, relocation, consulting, leasehold exit costs, asset impairment, and other related costs to rationalize our operational footprint and optimize business results.
The Company’s depreciation and amortization by segment are as follows:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Total depreciation and amortization by segment:
Healthcare$48.7 $38.1 $36.0 
Non-healthcare54.3 60.1 100.1 
Total depreciation and amortization by segment
$103.0 $98.2 $136.1 
The Company’s total assets by segment are as follows:
(in millions)December 28,
2024		December 30,
2023
Total assets by segment:
Healthcare$1,601.1 $1,631.8 
Non-healthcare1,007.2 1,390.6 
Asset held-for-sale
17.4 — 
Corporate overhead— 19.1 
Total assets by segment$2,625.7 $3,041.5 
The Company’s consolidated long-lived assets (tangible non-current assets) by geographic area are as follows:
(in millions, except percentages)
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Total long-lived assets by geographic area:
United States$319.7 79.9 %$317.9 74.6 %
International80.6 20.1 108.0 25.4 
Total long-lived assets by geographic area$400.3 100.0 %$425.9 100.0 %
The following schedule presents an analysis of the Company’s revenues based upon the geographic area (ship to location):
(in millions, except percentages)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Total revenue by geographic area:
United States (U.S.)$1,127.6 53.8 %$1,058.8 51.8 %$1,141.7 56.1 %
Europe, Middle East and Africa595.6 28.4 571.9 27.9 523.6 25.7 
Asia and Australia303.5 14.5 351.0 17.1 326.8 16.1 
North and South America (excluding U.S.)67.7 3.3 66.4 3.2 43.7 2.1 
     Total revenue by geographic area$2,094.4 100.0 %$2,048.1 100.0 %$2,035.8 100.0 %
v3.25.0.1
Subsequent Event
 12 Months Ended
Dec. 28, 2024
Subsequent Events [Abstract]  
Subsequent Event
26. Subsequent Event
On September 25, 2024, the Company announced that the Board remains committed to the previously announced review of alternatives for both the consumer audio and consumer healthcare businesses, and that the Board had engaged Centerview Partners and Morgan Stanley as financial advisors and Sullivan & Cromwell as a legal advisor. As of year-end, the non-healthcare consumer audio products business remained part of the Company’s continuing operations and as an important part of the Company’s broader ecosystem. Subsequently, the sales process has progressed in 2025, and the Sound United business will be classified as held-for-sale and will be reported in discontinued operations in the first quarter of 2025.
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts
 12 Months Ended
Dec. 28, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
VALUATION AND QUALIFYING ACCOUNTS
Years ended December 28, 2024, December 30, 2023 and December 31, 2022
(in millions)
DescriptionBalance at
Beginning of Period		Additions Charged to
 Expense and Other Accounts		Amounts Charged
 Against Reserve		Balance at
End of Period
Year ended December 28, 2024
Allowance for credit losses$5.0 $0.9 $(0.5)$5.4 
Allowance for sales returns8.76.2 (5.6)9.3 
Year ended December 30, 2023
Allowance for credit losses7.9 (2.7)(0.2)5.0 
Allowance for sales returns, as adjusted
5.3 3.8 (0.4)8.7 
Year ended December 31, 2022
Allowance for credit losses2.5 5.6 
(1)
(0.2)7.9 
Allowance for sales returns, as adjusted
1.5 11.1 
(1)
(7.3)5.3 
______________
(1)     Additions charged to expense and other accounts include amounts from immaterial business combinations.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income (loss) $ (304.9) $ 81.5 $ 143.5
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 28, 2024
shares
Dec. 28, 2024
shares
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
During the three months ended December 28, 2024, none of our directors or officers (as defined in Section 16 of the Exchange Act) adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as defined in Item 408(a) of Regulation S-K, except as described in the table below:
Name and Title of the Director or OfficerThe Date on Which the Director or Officer Adopted or Terminated the Trading Arrangement
Duration of the Trading Arrangement (1)
Aggregate Number of Securities to be Purchased or Sold Pursuant to the Trading Arrangement
Tom McClenahan, Former EVP, General Counsel
December 10, 2024
September 12, 2025
4,404 Shares of Masimo Common Stock; 19,000 Shares Subject to Options to Purchase Shares of Masimo Common Stock
(2)
Bilal Muhsin, Chief Operating Officer
December 13, 2024
June 16, 2025
5,000 Shares of Masimo Common Stock; 10,000 Shares Subject to Options to Purchase Shares of Masimo Common Stock
(2)
_______________
(1)    Each trading arrangement permitted or permits transactions through and including the earlier to occur of (a) the completion of all sales or (b) the date listed in the table.
(2)    The trading arrangement is intended to satisfy the affirmative defense of Rule 10b5–1(c).
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Tom McClenahan [Member]    
Trading Arrangements, by Individual    
Name Tom McClenahan  
Title Former EVP, General Counsel  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 10, 2024  
Expiration Date September 12, 2025  
Arrangement Duration 276 days  
Bilal Muhsin [Member]    
Trading Arrangements, by Individual    
Name Bilal Muhsin  
Title Chief Operating Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 13, 2024  
Expiration Date June 16, 2025  
Arrangement Duration 185 days  
Tom McClenahan Trading Arrangement, Common Stock [Member] | Tom McClenahan [Member]    
Trading Arrangements, by Individual    
Aggregate Available 4,404 4,404
Tom McClenahan Trading Arrangement, Stock Options [Member] | Tom McClenahan [Member]    
Trading Arrangements, by Individual    
Aggregate Available 19,000 19,000
Bilal Muhsin Trading Arrangement, Common Stock [Member] | Bilal Muhsin [Member]    
Trading Arrangements, by Individual    
Aggregate Available 5,000 5,000
Bilal Muhsin Trading Arrangement, Stock Options [Member] | Bilal Muhsin [Member]    
Trading Arrangements, by Individual    
Aggregate Available 10,000 10,000
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 28, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 28, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management & Strategy
Cybersecurity is integral to our risk management approach. We are reliant on information technology, and any interruption, failure, or security breach-including cybersecurity incidents-could adversely impact our operations and business continuity.
To address these risks, we maintain a comprehensive, risk-based cybersecurity program focused on protecting sensitive data and systems. Our approach includes:
•Layered Security (defense-in-Depth): Implementing multiple levels of controls to safeguard against cyber threats.
•Employee Awareness: Delivering mandatory cybersecurity training, conducting phishing simulations, and fostering a culture of vigilance.
•Proactive Monitoring and Testing: Leveraging real-time monitoring, regular vulnerability assessments, and external audits to continuously evaluate and enhance defenses.
•Preparedness: Maintaining and testing business continuity and disaster recovery plans with scenarios such as simulated cyberattacks.
For more information on risks related to cybersecurity and data security, see Item 1A. “Risk Factors - Risks Related to Our Regulatory Environment” and “Risk Factors - General Risk Factors”. To date, no cybersecurity incidents or risks from cybersecurity threats have materially impacted our business strategy, results of operations, or financial condition.
Key Elements of Our Cybersecurity Program
Our cybersecurity program emphasizes:
•Threat Awareness and Risk Identification: Engaging with industry groups and third-party experts to stay ahead of emerging threats.
•Employee Training: Conducting annual training and phishing simulations to reinforce best practices.
•Advanced Safeguards: Deploying comprehensive technical measures, including firewalls, intrusion detection systems, penetration tests, anti-malware, encryption, and access controls to secure our systems and data.
•Vendor Management: Requiring contractual data protection safeguards and screening vendors for compliance during onboarding.
•Incident Response: Maintaining up-to-date response and recovery plans, validated through regular tabletop exercises.
•Compliance Standards: Adhering to recognized standards such as HITRUST, NIST CSF, ISO 27001, and PCI DSS.
•Insurance: Partnering with leading insurers to maintain cyber liability coverage.
Cybersecurity Risk Management Processes Integrated [Flag] false
Cybersecurity Risk Management Processes Integrated [Text Block]
Cybersecurity is integral to our risk management approach. We are reliant on information technology, and any interruption, failure, or security breach-including cybersecurity incidents-could adversely impact our operations and business continuity.
To address these risks, we maintain a comprehensive, risk-based cybersecurity program focused on protecting sensitive data and systems. Our approach includes:
•Layered Security (defense-in-Depth): Implementing multiple levels of controls to safeguard against cyber threats.
•Employee Awareness: Delivering mandatory cybersecurity training, conducting phishing simulations, and fostering a culture of vigilance.
•Proactive Monitoring and Testing: Leveraging real-time monitoring, regular vulnerability assessments, and external audits to continuously evaluate and enhance defenses.
•Preparedness: Maintaining and testing business continuity and disaster recovery plans with scenarios such as simulated cyberattacks.
Cybersecurity Risk Management Third Party Engaged [Flag] false
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Audit Committee oversees our cybersecurity program and its alignment with overall risk management. This includes monitoring cybersecurity, data privacy and IT risks.
Leadership of our cybersecurity efforts is provided by our VP, Global Information Security, a seasoned expert with over a decade of experience. This role ensures continuous program improvement and alignments with evolving threats and standards.
Our executive team, including our Chief Financial Officer and Chief Information Officer, receive regular briefings on:
•Cybersecurity trends and evolving threats;
•Program effectiveness and risk mitigation strategies; and
•Updates to regulatory and legal requirements related to data security and privacy.
These briefings ensure cybersecurity considerations are integrated into strategic decisions, resource allocation, and risk mitigation planning. In accordance with our incident response plan, any material cybersecurity incidents are promptly reported to the Audit Committee to maintain transparency and oversight.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Audit Committee oversees our cybersecurity program and its alignment with overall risk management. This includes monitoring cybersecurity, data privacy and IT risks.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Audit Committee oversees our cybersecurity program and its alignment with overall risk management. This includes monitoring cybersecurity, data privacy and IT risks.
Leadership of our cybersecurity efforts is provided by our VP, Global Information Security, a seasoned expert with over a decade of experience. This role ensures continuous program improvement and alignments with evolving threats and standards.
Our executive team, including our Chief Financial Officer and Chief Information Officer, receive regular briefings on:
•Cybersecurity trends and evolving threats;
•Program effectiveness and risk mitigation strategies; and
•Updates to regulatory and legal requirements related to data security and privacy.
Cybersecurity Risk Role of Management [Text Block]
Leadership of our cybersecurity efforts is provided by our VP, Global Information Security, a seasoned expert with over a decade of experience. This role ensures continuous program improvement and alignments with evolving threats and standards.
Our executive team, including our Chief Financial Officer and Chief Information Officer, receive regular briefings on:
•Cybersecurity trends and evolving threats;
•Program effectiveness and risk mitigation strategies; and
•Updates to regulatory and legal requirements related to data security and privacy.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our Audit Committee oversees our cybersecurity program and its alignment with overall risk management. This includes monitoring cybersecurity, data privacy and IT risks.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] a seasoned expert with over a decade of experience
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our Audit Committee oversees our cybersecurity program and its alignment with overall risk management. This includes monitoring cybersecurity, data privacy and IT risks.
Leadership of our cybersecurity efforts is provided by our VP, Global Information Security, a seasoned expert with over a decade of experience. This role ensures continuous program improvement and alignments with evolving threats and standards.
Our executive team, including our Chief Financial Officer and Chief Information Officer, receive regular briefings on:
•Cybersecurity trends and evolving threats;
•Program effectiveness and risk mitigation strategies; and
•Updates to regulatory and legal requirements related to data security and privacy.
These briefings ensure cybersecurity considerations are integrated into strategic decisions, resource allocation, and risk mitigation planning. In accordance with our incident response plan, any material cybersecurity incidents are promptly reported to the Audit Committee to maintain transparency and oversight.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 28, 2024
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 2024 was a 52 week fiscal year ended December 28, 2024. The Company’s next 53 week year will be fiscal year 2025. All references to years in these notes to consolidated financial statements are fiscal years unless otherwise noted.
Reclassifications
Reclassifications
Certain amounts in the accompanying consolidated financial statements have been reclassified to conform to the current period presentation, including certain balance sheet asset accounts in the consolidated financial statements for the year ended December 30, 2023. There was no impact on previously reported total assets, liabilities, stockholders’ equity or net income.
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, impairment of long-lived assets, intangible assets and goodwill; derivative and equity instruments, deferred taxes and any associated valuation allowances, deferred revenue, accounting for pensions, uncertain income tax positions, litigation costs, and related accruals.
Business Combinations
Business Combinations
The Company accounts for business combinations using the acquisition method of accounting in accordance with Accounting Standards Codification (ASC) Topic 805, Business Combinations, which requires that once control is obtained, 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, with the exception of acquired contract assets and contract liabilities (i.e., deferred revenue) from contracts with customers. These are recognized and measured in accordance with ASC Topic 606, Revenue from Contracts with Customers. 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
The Company accounts for certain financial instruments at their fair values as either assets or liabilities on the balance sheet. The Company determines the fair value of its financial instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, and considers the estimated amount the Company would receive or pay to transfer these instruments at the reporting date with respect to current currency exchange rates, interest rates, the creditworthiness of the counterparty for unrealized gain positions and the Company’s creditworthiness for unrealized loss positions. In certain instances, the Company may utilize financial models to measure the fair value of its financial instruments. In doing so, the Company uses inputs that include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, other observable inputs for the asset or liability and inputs derived principally from, or corroborated by, observable market data by correlation or other means.
Recurring Fair Value Measurement
On a recurring basis, the Company measures certain financial assets and financial liabilities at fair value based upon quoted market prices. Where quoted market prices or other observable inputs are not available, the Company applies valuation techniques to estimate fair value. 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.
The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 28, 2024:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$101.0 $101.0 $— $— 
Money market funds76.6 76.6 — — 
Pension assets:
Cash and cash equivalents(1.3)
(1)
(1.3)— — 
Equity securities9.3 9.3 — — 
Debt securities9.6 9.6 — — 
Real estate funds3.6 — 3.6 — 
Alternative investments1.4 — 1.4 — 
Other0.2 — 0.2 — 
Equity securities1.3 1.3 — — 
Derivative instruments - cash flow hedges(2)
6.8 6.8 — — 
Derivative instruments - warrants0.7 0.7 — — 
Total assets$209.2 $204.0 $5.2 $— 
Liabilities
Derivative instruments - cash flow hedge$0.1 $0.1 $— $— 
Pension benefit obligation31.8 31.8 — — 
Total liabilities$31.9 $31.9 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024, resulting in a negative allocation as of year end.
(2)    Includes accrued interest.
The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 30, 2023:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$87.0 $87.0 $— $— 
Money market funds76.0 76.0 — — 
Pension assets:
      Cash and cash equivalents(1.2)
(1)
(1.2)— — 
      Equity securities 8.1 8.1 — — 
      Debt securities10.7 9.9 0.8 — 
      Real estate funds3.1 — 3.1 — 
      Alternative investments1.9 — 1.9 — 
      Other0.5 — 0.5 — 
Equity securities1.7 1.7 — — 
Derivative instruments - cash flow hedges11.6 11.6 — — 
Derivative instruments - warrants1.0 1.0 — — 
Total assets$200.4 $194.1 $6.3 $— 
Liabilities
Derivative instruments - cash flow hedge(2)
$3.6 $3.6 $— $— 
Pension benefit obligation32.6 32.6 — — 
Total liabilities$36.2 $36.2 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 30, 2023, resulting in a negative allocation as of year end.
(2)    Includes accrued interest.
The Company invests in checking, savings and money market fund accounts, which are classified within Level 1 of the fair value hierarchy as they are valued using quoted market prices. These investments are classified as cash and cash equivalents within the Company’s accompanying consolidated balance sheets, in accordance with GAAP and its accounting policies.
The Company’s marketable equity securities, whose price is based on quoted market price in an active market, are classified within Level 1 of the fair value hierarchy. Equity securities are classified as current, short-term investments, or non-current, recorded in other non-current assets, based on the nature of the securities and their availability for use in current operations. The changes in the fair value of those equity securities are measured at each reporting date and changes in the value of these investments between reporting dates are recorded within non-operating income (loss).
The Company’s pension assets consist of Level 1 and Level 2 investments. The fair values of Level 2 assets are based on observable inputs such as prices or quotes for similar assets, adjusted for any differences in terms or conditions that may affect the value of the instrument being valued. The valuation techniques used for Level 2 assets may include the use of models or other valuation techniques, but these methods are all based on observable market inputs.
The Company also has investments in certain derivative instruments, which are measured at fair value and classified within Level 3 of the fair value hierarchy.
Non-Recurring Fair Value Measurements
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.
Furthermore, the Company did not elect to apply the fair value option to specific assets or liabilities on a contract-by-contract basis. The Company did not have any transfers between Level 2 and Level 3 during the years ended December 28, 2024 and December 30, 2023.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original maturity from the 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. The Company carries cash and cash equivalents at cost, which approximates fair value, and they are Level 1 under the fair value hierarchy.
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. Based on the risk characteristics, the Company has identified U.S. and international customers as separate portfolios for both segments, and measures expected credit losses on such receivables using an aging methodology.
Inventories
Inventories
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 the 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
2 to 3 years
Furniture and office equipment
2 to 15 years
Leasehold improvementsLesser of useful life or term of lease
Machinery, equipment and tooling
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Transportation, vehicles and other
1 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.
Software development costs are accounted for in accordance with ASC Topic 985-20, Software - Costs of Software to be Sold, Leased, or Marketed. Once technological feasibility has been established, qualifying costs incurred in development are capitalized until available for general release to customers, and subsequently reported at the lower of unamortized cost or net realizable value.
Intangibles purchased as part of an asset acquisition or business combination historically have included patents, trademarks, customer relationships, developed technologies and contractual licenses. In certain circumstances, the Company has also acquired non-compete agreements tied to certain employment relationships. The useful life for all of these is largely determined by valuation estimates of remaining economic life. In connection with the Sound United acquisition, the Company acquired certain trademarks/tradenames, which are intangible assets with indefinite useful lives. These brands are expected to maintain brand value for an indefinite period of time.
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 has two reporting units, healthcare and non-healthcare. The Company’s qualitative assessment of the recoverability of goodwill considers various macro-economic, 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 the qualitative assessment indicates that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value, or if the Company elects to bypass the qualitative analysis, then the Company performs 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 such reporting unit exceeds its fair value; or (b) the amount of the goodwill allocated to such reporting unit. The annual impairment test is performed during the fourth fiscal quarter.
Similar to goodwill, indefinite-lived intangible assets are not amortized but instead are subject to annual impairment testing, unless circumstances dictate more frequent testing, if impairment indicators exist. Impairment for indefinite-lived assets exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. Determining whether impairment indicators exist and estimating the fair value of the Company’s indefinite-lived intangible assets if necessary for impairment testing require significant judgment. Qualitative factors considered in this assessment include industry and market conditions, overall financial performance, and other relevant events and factors.
The Company reviews finite-lived intangible assets and long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted operating cash 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.
Employee Defined Benefit Plans
Employee Defined Benefit Plans
The Company maintains noncontributory defined benefit plans that cover certain employees in certain international locations. The Company recognizes the funded status, or the difference between the fair value of plan assets and the projected benefit obligations of the pension plan on the consolidated balance sheet, with a corresponding adjustment to accumulated other comprehensive (loss) income. If the projected benefit obligation exceeds the fair value of plan assets, the difference or underfunded status represents the pension liability. The Company records a net periodic pension cost in the consolidated statement of operations. The liabilities and annual income or expense are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of asset return. The Company’s accounting policy includes an annual re-measurement of pension assets and obligations. In addition, the Company re-measures pension assets and obligations for significant events, as of the nearest month-end date on the calendar. The fair values of plan assets are determined based on prevailing market prices. See Note 21, “Employee Benefits”, for further details.
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.
Income taxes are highly susceptible to changes from period to period, requiring management to make assumptions about the Company’s future income over the lives of its deferred tax assets and the impact of changes in valuation allowances. Any difference in the assumptions, judgments and estimates mentioned above could result in changes to the Company’s results of operations.
Revenue Recognition, Deferred Revenue and Other Contract Liabilities
Revenue Recognition, Deferred Revenue and Other Contract Liabilities
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.
Healthcare segment
While the majority of the Company’s healthcare segment 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 are 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. Revenue from fixed lease payments related to equipment supplied under sales-type lease arrangements is recognized once control over the equipment is transferred to the customer, while revenue from fixed lease payments related to equipment supplied under operating-type lease arrangements is generally recognized on a straight-line basis over the term of the lease and variable lease payments are recognized as they occur.
The Company derives the majority of its healthcare segment 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 accounts using industry standard payment terms based on the geography within which the specific customer is located.
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, software 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.
Beginning in 2022, for contracts that contain variable lease payments that are not dependent on an index or rate, the Company classifies as operating leases any lease components that would have otherwise been classified as sales-type leases that would result in a selling loss upon lease commencement. 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 and software, to end-user hospitals, emergency medical response organizations, other direct customers, distributors and OEM customers, is recognized by the Company when control of such performance obligations transfers 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.
Non-healthcare segment
Non-healthcare segment revenue is related to hardware and embedded software that is integrated into final products that are manufactured and sold by the Company. Products and related software are accounted for as a single performance obligation and all intended functionality is available to the customer upon purchase. Non-healthcare segment revenue is recognized upon transfer of control of promised products or service to customers, which is either upon shipment or upon delivery to the customers, depending on delivery terms.
The Company offers sales incentives and has customer programs consisting primarily of discounts and market development fund programs, and records them as contra revenue. Estimates for sales incentives are developed using the most likely amount and are included in the transaction price to the extent that a significant reversal of revenue would not result once the uncertainty is resolved. In developing these estimates, the Company also considers the susceptibility of the incentive to outside influences, the length of time until the uncertainty is resolved and the Company’s experience with similar contracts. Reductions in revenue related to discounts are allocated to products on a relative basis based on their respective standard selling price if there are undelivered products in a contract. Judgment is required to determine the timing and amount of recognition of marketing funds, which the Company estimates based on past practice of providing similar funds.
Payment terms and conditions vary among the Company’s distribution channels although terms generally include a requirement of payment within 30 to 60 days of product shipment. Sales made directly to customers from the Company’s website are paid at the time of product shipment. Prior to determining payment terms for each customer, an evaluation of such customer’s credit risk is performed. Contractual allowances are an offset to accounts receivable.
The Company recognizes non-healthcare royalty revenue associated with certain prepaid license arrangements. The Company recognizes non-healthcare revenue from the prepaid license arrangements based upon sales-based royalties when a subsequent sale occurs.
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 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.
Warranty
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:
Year Ended
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Product warranty accrual, beginning of period$8.6 $10.6 $2.5 
Increase related to acquisition, net of reserve— — 8.4 
Accrual for warranties issued9.1 7.8 1.8 
Changes in pre-existing warranties (including changes in estimates)(5.4)(7.5)4.7 
Settlements made(3.1)(2.3)(6.8)
Product warranty accrual, end of period$9.2 $8.6 $10.6 
Advertising Costs
Advertising Costs
Advertising costs include certain advertising, marketing and endorsement agreement fees. Advertising costs are expensed as incurred. Endorsement fees associated with product endorsers are expensed on a straight-line basis over the term of the agreement. Advertising costs are included in selling, general and administrative expense in the accompanying consolidated statements of operations. Prepayments made under endorsement agreements are included in other current assets or other non-current assets, depending on the period to which the prepayments applies. Certain endorsement agreements provide for royalty payments to endorsers based on sales of particular products, which the Company records in selling, general and administrative expense as the related sales occur. Advertising costs for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, were $58.2 million, $61.4 million and $49.3 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 the Japanese Yen, the British Pound, the Chinese Yuan 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 (loss) income 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 (loss) income within the accompanying consolidated statements of operations.
Derivatives Instruments and Hedging Activities
Derivatives Instruments and Hedging Activities
The Company addresses market risk from changes in interest rates risks through risk management programs, which include the use of derivative instruments. The Company’s exposure to a counterparty’s credit risk is generally limited to the amounts of the net obligation to the counterparty. The Company established policies to enter into contracts only with major investment-grade financial institutions to mitigate such counterparty credit risk. The Company also established a policy to further monitor the counterparty risks throughout the life of the instruments. None of the derivative instruments currently held by the Company were entered into for speculative trading purposes.
All derivative financial instruments are recognized as either assets or liabilities at fair value in the consolidated balance sheets and are classified as short-term or long-term based on the tenor of the instrument. The Company has elected not to separate a derivative instrument into current and long-term portions. A derivative instrument whose fair value is a net liability is classified as current in total. A derivative instrument whose fair value is a net asset and whose current portion is an asset is classified as non-current in total. For a derivative instrument that meets the criteria to qualify for hedge accounting, the Company marks the fair value of the derivative instrument to market periodically through other comprehensive (loss) income. When the hedged items are recorded to income (loss), the associated deferred gains (losses) of the derivatives in accumulated other comprehensive (loss) income will be reclassified into earnings. Any fluctuation in the fair value of a derivative instrument that does not meet the criteria for hedge accounting is recorded to earnings (expense) in the period it occurs.
Comprehensive (Loss) Income
Comprehensive (Loss) Income
Comprehensive (loss) income includes foreign currency translation adjustments, changes to pension benefits, unrealized gains (losses) on cash flow hedges and any related tax benefits (expenses) that have been excluded from net income and reflected in stockholders’ equity.
Net Income Per Share
Net (Loss) Income Per Share
A computation of basic and diluted net (loss) income per share is as follows:
Year Ended
(in millions, except per share amounts)December 28,
2024		December 30,
2023		December 31,
2022
Net (loss) income$(304.9)$81.5 $143.5 
Basic net (loss) income per share:
Weighted-average shares outstanding - basic53.3 52.8 53.6 
Net (loss) income per basic share$(5.72)$1.54 $2.68 
Diluted net (loss) income per share:
Weighted-average shares outstanding - basic53.3 52.8 53.6 
Diluted share equivalents: stock options, RSUs and PSUs— 1.3 1.6 
Weighted-average shares outstanding - diluted53.3 54.1 55.2 
Net (loss) income per diluted share$(5.72)$1.51 $2.60 
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. In periods when the Company has a net loss, equity awards are excluded from the calculation of earnings per share as their inclusion would have an antidilutive effect. 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 each of the years ended December 28, 2024, December 30, 2023 and December 31, 2022, weighted options to purchase 1.1 million, 1.2 million and 0.8 million shares of common stock, respectively, were outstanding but not included in the computation of diluted net (loss) income per share because the effect of including such shares would have been antidilutive in the applicable period. For each of the years ended December 30, 2023 and December 31, 2022, certain RSUs were considered contingently issuable shares as their vesting was contingent upon the occurrence of certain future events. Since such events have not occurred and were not considered probable of occurring as of December 30, 2023 and December 31, 2022, 2.7 million weighted-average shares related to such RSUs have been excluded from the calculation of potential shares.
On October 24, 2024, following a review by outside counsel, the Board adopted resolutions to terminate the employment of Mr. Kiani, our former Chairman and Chief Executive Officer, effective October 24, 2024. In connection with the Board’s determination, the 2.7 million RSU grant to Mr. Kiani was cancelled and the 2.7 million weighted-average shares related to such RSUs have continued to be excluded from the calculation of potential shares for the year ended December 28, 2024.
Recently Adopted and Recently Announced Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new standard is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU No. 2023-07 is effective for annual reporting periods beginning after December 15, 2023 and interim periods in fiscal years beginning after December 15, 2024. Early adoption is permitted with retrospective application to all prior periods presented. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company retrospectively adopted this standard during the fiscal year ended December 28, 2024. See Note 25,”Segment and Enterprise Reporting”, for further details on the impact of the adoption of this standard.
Recently Announced Accounting Pronouncements
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new standard requires companies to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU No. 2023-09 is effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact of this new standard on our consolidated financial statements upon adoption.
In November 2024, the FASB issued ASU No. 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses. The guidance in ASU No. 2024-03 requires public business entities to disclose in the notes to the financial statements, among other things, specific information about certain costs and expenses including purchases of inventory; employee compensation; and depreciation, amortization and depletion expenses for each caption on the income statement where such expenses are included. ASU No. 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. In January 2025, the FASB issued ASU No. 2025-01 to clarify the effective date of ASU No. 2024-03. Early adoption is permitted, and the amendments may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. The Company is currently evaluating the impact of this new standard on our consolidated financial statements upon adoption.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 28, 2024
Accounting Policies [Abstract]  
Schedule of Fair Value, Assets Measured on Recurring Basis
The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 28, 2024:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$101.0 $101.0 $— $— 
Money market funds76.6 76.6 — — 
Pension assets:
Cash and cash equivalents(1.3)
(1)
(1.3)— — 
Equity securities9.3 9.3 — — 
Debt securities9.6 9.6 — — 
Real estate funds3.6 — 3.6 — 
Alternative investments1.4 — 1.4 — 
Other0.2 — 0.2 — 
Equity securities1.3 1.3 — — 
Derivative instruments - cash flow hedges(2)
6.8 6.8 — — 
Derivative instruments - warrants0.7 0.7 — — 
Total assets$209.2 $204.0 $5.2 $— 
Liabilities
Derivative instruments - cash flow hedge$0.1 $0.1 $— $— 
Pension benefit obligation31.8 31.8 — — 
Total liabilities$31.9 $31.9 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024, resulting in a negative allocation as of year end.
(2)    Includes accrued interest.
The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at December 30, 2023:
Fair Value Measurement Hierarchy
(in millions)Total Carrying
Value		Level 1Level 2Level 3
Assets
Cash and cash equivalents$87.0 $87.0 $— $— 
Money market funds76.0 76.0 — — 
Pension assets:
      Cash and cash equivalents(1.2)
(1)
(1.2)— — 
      Equity securities 8.1 8.1 — — 
      Debt securities10.7 9.9 0.8 — 
      Real estate funds3.1 — 3.1 — 
      Alternative investments1.9 — 1.9 — 
      Other0.5 — 0.5 — 
Equity securities1.7 1.7 — — 
Derivative instruments - cash flow hedges11.6 11.6 — — 
Derivative instruments - warrants1.0 1.0 — — 
Total assets$200.4 $194.1 $6.3 $— 
Liabilities
Derivative instruments - cash flow hedge(2)
$3.6 $3.6 $— $— 
Pension benefit obligation32.6 32.6 — — 
Total liabilities$36.2 $36.2 $— $— 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 30, 2023, resulting in a negative allocation as of year end.
(2)    Includes accrued interest.
Schedule of Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows:
Useful Lives
Buildings and building improvements
7 to 39 years
Computer equipment and software
2 to 12 years
Demonstration units
2 to 3 years
Furniture and office equipment
2 to 15 years
Leasehold improvementsLesser of useful life or term of lease
Machinery, equipment and tooling
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Transportation, vehicles and other
1 to 20 years
Property and equipment, net, consists of the following:
(in millions)December 28,
2024		December 30,
2023
Machinery, equipment and tooling$180.2 $169.7 
Building and building improvements150.3 151.0 
Operating lease assets148.6 92.2 
Land(1)
54.3 66.2 
Computer equipment and software44.4 45.5 
Leasehold improvements40.8 37.5 
Construction-in-progress (CIP)(2)
30.6 59.2 
Furniture and office equipment17.5 20.4 
Demonstration units10.9 11.1 
Transportation, vehicles and other(3)(4)
0.2 34.0 
Total property and equipment
677.8 686.8 
Accumulated depreciation(296.2)(262.4)
Property and equipment, net
$381.6 $424.4 
______________
(1)    At March 30, 2024, property, plant and equipment, net, excluded $11.4 million of idle undeveloped land held outside of the U.S., which was classified as held for sale within the healthcare segment. In May 2024, the Company completed the sale of the land, resulting in a gain of $0.9 million, which was recorded net of transaction costs, foreign currency translation and cumulative translation adjustment.
(2)    In December 2024, in connection with the strategic realignment initiative, the Company recorded a charge of approximately $16.0 million related to a reduction of capitalized costs included in the CIP balance for the property in Vancouver, British Columbia, which was recorded to selling, general and administrative expenses.
(3)    During the three months ended September 28, 2024, the Company reduced its fleet of vehicles for use primarily by field sales representatives. The proceeds from the sale of the vehicles were $2.0 million.
(4)    In October 2024, the Company grounded the corporate aircraft and started exploring disposition strategies. In December 2024, the Company entered into an letter of intent to sell the aircraft, and classified the asset as held for sale within the healthcare segment as of December 28, 2024. On January 29, 2025, the Company completed the sale of the corporate aircraft for $19.5 million.
Schedule of Changes in Product Warranty Accrual
Changes in the product warranty accrual were as follows:
Year Ended
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Product warranty accrual, beginning of period$8.6 $10.6 $2.5 
Increase related to acquisition, net of reserve— — 8.4 
Accrual for warranties issued9.1 7.8 1.8 
Changes in pre-existing warranties (including changes in estimates)(5.4)(7.5)4.7 
Settlements made(3.1)(2.3)(6.8)
Product warranty accrual, end of period$9.2 $8.6 $10.6 
Schedule of Reconciliation of Basic and Diluted Net Income Per Share
A computation of basic and diluted net (loss) income per share is as follows:
Year Ended
(in millions, except per share amounts)December 28,
2024		December 30,
2023		December 31,
2022
Net (loss) income$(304.9)$81.5 $143.5 
Basic net (loss) income per share:
Weighted-average shares outstanding - basic53.3 52.8 53.6 
Net (loss) income per basic share$(5.72)$1.54 $2.68 
Diluted net (loss) income per share:
Weighted-average shares outstanding - basic53.3 52.8 53.6 
Diluted share equivalents: stock options, RSUs and PSUs— 1.3 1.6 
Weighted-average shares outstanding - diluted53.3 54.1 55.2 
Net (loss) income per diluted share$(5.72)$1.51 $2.60 
Schedule of Supplemental Cash Flow Information
Supplemental cash flow information includes the following:
Year Ended
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Cash paid during the year for:
Interest expense
$39.1 $51.0 $23.0 
Income taxes
41.9 54.4 87.3 
Operating lease liabilities
24.6 22.4 17.2 
Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities$28.6 $16.3 $— 
Non-cash investing activities:
Unpaid purchases of property and equipment$0.7 $0.2 $3.8 
Non-cash financing activities:
       Unsettled common stock proceeds from option exercises$0.1 $— $— 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$177.6 $163.0 $202.9 
Restricted cash
3.8 5.2 6.7 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
$181.4 $168.2 $209.6 
v3.25.0.1
Inventories (Tables)
 12 Months Ended
Dec. 28, 2024
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
Inventories consist of the following:
(in millions)December 28,
2024		December 30,
2023
Raw materials$181.3 $229.7 
Work-in-process24.3 30.0 
Finished goods253.6 285.3 
Total inventories(1)
$459.2 $545.0 
______________
(1)    Included in the change of total inventories for the fiscal year ended December 28, 2024, was a $52.3 million write down for inventory related to the strategic realignment initiative for products that are being phased out and/or no longer supported, which was recorded to cost of goods sold.
v3.25.0.1
Other Current Assets (Tables)
 12 Months Ended
Dec. 28, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Non-Current Assets
Other current assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Prepaid expenses$36.6 $58.3 
Prepaid income taxes34.1 29.3 
Lease receivable, current26.6 30.2 
Indirect taxes receivable24.8 28.6 
Contract assets, current11.4 6.7 
Prepaid rebates and royalties4.6 4.8 
Restricted cash(1)
2.7 3.0 
Other current assets4.3 7.5 
Total other current assets
$145.1 $168.4 
______________
(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 non-current assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Lessee ROU assets, net$74.4 $59.1 
Prepaid deposits and other9.4 6.4 
Strategic investments(1)
6.6 7.2 
Derivative assets - non-current(2)
6.2 11.4 
Equity investments - fair value(1)
2.0 2.7 
Restricted cash(3)
1.1 2.2 
Other non-current assets0.4 0.3 
Total non-current assets$100.1 $89.3 
______________
(1)    During the fourth quarter of 2024, in connection with the Company’s strategic realignment initiative, the Company abandoned its investment in certain strategic investments of approximately $1.6 million, which were recorded to selling, general and administrative expenses.
(2)    Excludes accrued interest.
(3)    Restricted cash includes cash held in certain subsidiaries in jurisdictions outside of the U.S. such as China, which may be subject to transfer restrictions depending on jurisdictions.
v3.25.0.1
Lease Receivable (Tables)
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Schedule of Sale-Type Lease Receivable
Lease receivable from sales-type leases consists of the following:
(in millions)December 28,
2024		December 30,
2023
Lease receivable$85.5 $101.9 
Allowance for credit loss(0.2)(0.3)
     Lease receivable, net85.3 101.6 
Less: current portion of lease receivable(26.6)(30.2)
     Lease receivable, non-current$58.7 $71.4 
Schedule of Sales-type Lease, Lease Receivable, Maturity
As of December 28, 2024, estimated future maturities of customer sales-type lease receivables and operating lease payments for each of the following fiscal years are as follows:
Future Lease Receivables/Payments
(in millions)
Fiscal year
Sales-Type LeasesOperating Leases
2025$26.5 $25.5 
202621.4 24.3 
202715.9 20.2 
202810.3 15.7 
20297.2 14.0 
Thereafter4.0 11.8 
     Total$85.3 $111.5 
Less: imputed interest(1)
— 
     Present value of total lease payments$85.3 
______________
(1)    The calculation of the rates implicit in the leases resulted in negative discount rates. Therefore, the Company as a lessor used a 0% discount rate to measure the net investment in the lease.
v3.25.0.1
Deferred Costs and Other Contract Assets (Tables)
 12 Months Ended
Dec. 28, 2024
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 millions)December 28,
2024		December 30,
2023
Deferred commissions$25.0 $21.8 
Unbilled contract receivables20.2 17.0 
Prepaid contract allowances14.5 17.0 
Deferred equipment agreements, net1.3 1.5 
     Deferred costs and other contract assets$61.0 $57.3 
v3.25.0.1
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 28, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows:
Useful Lives
Buildings and building improvements
7 to 39 years
Computer equipment and software
2 to 12 years
Demonstration units
2 to 3 years
Furniture and office equipment
2 to 15 years
Leasehold improvementsLesser of useful life or term of lease
Machinery, equipment and tooling
3 to 20 years
Operating lease assetsLesser of useful life or term of lease
Transportation, vehicles and other
1 to 20 years
Property and equipment, net, consists of the following:
(in millions)December 28,
2024		December 30,
2023
Machinery, equipment and tooling$180.2 $169.7 
Building and building improvements150.3 151.0 
Operating lease assets148.6 92.2 
Land(1)
54.3 66.2 
Computer equipment and software44.4 45.5 
Leasehold improvements40.8 37.5 
Construction-in-progress (CIP)(2)
30.6 59.2 
Furniture and office equipment17.5 20.4 
Demonstration units10.9 11.1 
Transportation, vehicles and other(3)(4)
0.2 34.0 
Total property and equipment
677.8 686.8 
Accumulated depreciation(296.2)(262.4)
Property and equipment, net
$381.6 $424.4 
______________
(1)    At March 30, 2024, property, plant and equipment, net, excluded $11.4 million of idle undeveloped land held outside of the U.S., which was classified as held for sale within the healthcare segment. In May 2024, the Company completed the sale of the land, resulting in a gain of $0.9 million, which was recorded net of transaction costs, foreign currency translation and cumulative translation adjustment.
(2)    In December 2024, in connection with the strategic realignment initiative, the Company recorded a charge of approximately $16.0 million related to a reduction of capitalized costs included in the CIP balance for the property in Vancouver, British Columbia, which was recorded to selling, general and administrative expenses.
(3)    During the three months ended September 28, 2024, the Company reduced its fleet of vehicles for use primarily by field sales representatives. The proceeds from the sale of the vehicles were $2.0 million.
(4)    In October 2024, the Company grounded the corporate aircraft and started exploring disposition strategies. In December 2024, the Company entered into an letter of intent to sell the aircraft, and classified the asset as held for sale within the healthcare segment as of December 28, 2024. On January 29, 2025, the Company completed the sale of the corporate aircraft for $19.5 million.
v3.25.0.1
Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
Intangible assets, net, consist of the following:
December 28,
2024		December 30,
2023
(in millions)Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount		Gross Carrying
Amount		Accumulated
Amortization		Net Carrying
Amount
Intangible assets subject to amortization:
Customer relationships$199.3 $(41.7)$157.6 $209.2 $(31.5)$177.7 
Acquired technologies164.9 (62.0)102.9 174.7 (45.3)129.4 
Capitalized software development costs(1)
54.1 (28.6)25.5 53.9 (15.2)38.7 
Licenses30.3 (6.2)24.1 39.7 (7.4)32.3 
Patents(1)
44.0 (17.5)26.5 39.2 (15.2)24.0 
Trademarks20.1 (9.0)11.1 20.1 (7.4)12.7 
Licenses-related party(1)
7.5 (7.1)0.4 7.5 (6.7)0.8 
Non-compete agreements6.3 (4.1)2.2 6.3 (2.6)3.7 
Other1.6 (1.0)0.6 1.7 (1.1)0.6 
     Total intangible assets subject to amortization, net$528.1 $(177.2)$350.9 $552.3 $(132.4)$419.9 
Intangible assets not subject to amortization:
Trademarks$217.3 $242.4 
Impairment charge(10.0)(10.0)
     Total trademarks207.3 232.4 
     Intangible assets, net$558.2 $652.3 
______________
(1)    During the fourth quarter of 2024, in connection with the Company’s strategic realignment initiative, the Company’s healthcare segment recorded a charge of $26.0 million for a reduction in capitalized software development costs, patents and licenses-related party that are being phased out and/or no longer supported, which was recorded to selling, general and administrative expenses. The Company also terminated the professional services agreements associated with LML and Vantrix.
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Estimated amortization expense for each of the next fiscal years is as follows:
Fiscal year
Amount
(in millions)
2025$51.6 
202650.3 
202738.0 
202837.6 
202937.2 
Thereafter136.2 
Total$350.9 
v3.25.0.1
Goodwill (Tables)
 12 Months Ended
Dec. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Goodwill
Changes in goodwill were as follows:
December 28,
2024
(in millions)HealthcareNon-healthcareTotal
Goodwill, beginning of period$98.6 $309.1 $407.7 
Adjustments to goodwill for impairment(1)
— (294.0)(294.0)
Foreign currency translation adjustment(1.9)(15.1)(17.0)
Goodwill, end of period$96.7 $— $96.7 
_____________
(1)    See Note 9, Intangible Assets, Net for details on the impairment of goodwill.
December 30,
2023
(in millions)HealthcareNon-healthcareTotal
Goodwill, beginning of period$97.6 $347.8 $445.4 
Adjustments to goodwill from purchase price allocation
— (18.2)(18.2)
Foreign currency translation adjustment1.0 (20.5)(19.5)
Goodwill, end of period$98.6 $309.1 $407.7 
v3.25.0.1
Lessee ROU Assets and Lease Liabilities (Tables)
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Schedule of 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 millions)Balance Sheet ClassificationDecember 28,
2024		December 30,
2023
Lessee ROU assetsOther non-current assets$74.4 $59.1 
Lessee current lease liabilitiesOther current liabilities21.4 18.2 
Lessee non-current lease liabilitiesOther non-current liabilities59.5 45.8 
     Total operating lease liabilities$80.9 $64.0 
Schedule of Lessee, Operating Lease, Liability, Maturity
As of December 28, 2024, estimated future operating lease payments for each of the following fiscal years were as follows:
Fiscal yearAmount
(in millions)
2025$24.1 
202619.7 
202714.9 
202812.8 
20297.2 
Thereafter(1)
12.9 
Total91.6 
Imputed interest(10.7)
Present value$80.9 
______________
(1)    Includes optional renewal period for certain leases.
v3.25.0.1
Other Non-Current Assets (Tables)
 12 Months Ended
Dec. 28, 2024
Other Assets, Noncurrent [Abstract]  
Schedule of Other Non-Current Assets
Other current assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Prepaid expenses$36.6 $58.3 
Prepaid income taxes34.1 29.3 
Lease receivable, current26.6 30.2 
Indirect taxes receivable24.8 28.6 
Contract assets, current11.4 6.7 
Prepaid rebates and royalties4.6 4.8 
Restricted cash(1)
2.7 3.0 
Other current assets4.3 7.5 
Total other current assets
$145.1 $168.4 
______________
(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 non-current assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Lessee ROU assets, net$74.4 $59.1 
Prepaid deposits and other9.4 6.4 
Strategic investments(1)
6.6 7.2 
Derivative assets - non-current(2)
6.2 11.4 
Equity investments - fair value(1)
2.0 2.7 
Restricted cash(3)
1.1 2.2 
Other non-current assets0.4 0.3 
Total non-current assets$100.1 $89.3 
______________
(1)    During the fourth quarter of 2024, in connection with the Company’s strategic realignment initiative, the Company abandoned its investment in certain strategic investments of approximately $1.6 million, which were recorded to selling, general and administrative expenses.
(2)    Excludes accrued interest.
(3)    Restricted cash includes cash held in certain subsidiaries in jurisdictions outside of the U.S. such as China, which may be subject to transfer restrictions depending on jurisdictions.
v3.25.0.1
Deferred Revenue and Other Contract Liabilities, Current (Tables)
 12 Months Ended
Dec. 28, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Schedule of Contract with Customer, Asset and Liability
Deferred revenue and other contract liabilities consist of the following:
(in millions)December 28,
2024		December 30,
2023
Deferred revenue$74.2 $63.8 
Accrued rebates and allowances38.6 37.5 
Accrued customer reimbursements10.1 12.4 
     Total deferred revenue and other contract liabilities122.9 113.7 
Less: Non-current portion of deferred revenue(27.4)(26.4)
     Deferred revenue and other contract liabilities, current$95.5 $87.3 
Schedule of Deferred Revenue
Changes in deferred revenue for the years ended December 28, 2024 and December 30, 2023 were as follows:
(in millions)December 28,
2024		December 30,
2023
Deferred revenue, beginning of the period$63.8 $61.0 
  Revenue deferred during the period43.5 28.3 
  Recognition of revenue deferred in prior periods(33.1)(25.5)
     Deferred revenue, end of the period$74.2 $63.8 
v3.25.0.1
Other Current Liabilities (Tables)
 12 Months Ended
Dec. 28, 2024
Other Liabilities Disclosure [Abstract]  
Schedule of Other Current Liabilities
Other current liabilities consist of the following:
(in millions)December 28,
2024		December 30,
2023
Current portion of long-term debt$37.3 $34.3 
Accrued expenses31.0 26.3 
Accrued indirect taxes payable27.4 23.9 
Lessee lease liabilities, current21.4 18.2 
Income tax payable18.4 16.1 
Accrued legal fees14.9 9.9 
Accrued property taxes9.7 10.2 
Other current liabilities9.6 6.7 
Accrued warranty9.2 8.6 
Related party payables5.3 4.2 
Accrued donations1.6 4.0 
Total other current liabilities
$185.8 $162.4 
v3.25.0.1
Debt (Tables)
 12 Months Ended
Dec. 28, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
(in millions)December 28,
2024		December 30,
2023
Japanese loans - current portion$22.3 $23.0 
Term loan - current portion15.0 11.3 
Short-term debt37.3 34.3 
Revolver - long-term456.0 591.5 
Term loan - long-term258.3 271.4 
Japanese loans - long-term13.6 8.8 
Long-term debt727.9 871.7 
Total debt$765.2 $906.0 
Schedule of Maturities of Long-term Debt
As of December 28, 2024, the aggregate maturities of principal on all debt for each of the next five years and thereafter are as follows:
Fiscal year
Amount
(in millions)
2025$37.3 
202618.3
2027702.6
20282.9
20291.9 
Thereafter2.2
Total$765.2 
v3.25.0.1
Other Non-Current Liabilities (Tables)
 12 Months Ended
Dec. 28, 2024
Other Liabilities Disclosure [Abstract]  
Components of Other Non-Current Liabilities
Other non-current liabilities consist of the following:
(in millions)December 28,
2024		December 30,
2023
Lessee non-current lease liabilities$59.5 $45.8 
Unrecognized tax benefits28.6 24.4 
Deferred revenue, non-current27.4 26.4 
Projected benefit obligation9.0 9.5 
Indirect tax payable, non-current— 8.4 
Income tax payable, non-current— 7.1 
Other3.6 7.9 
Total other non-current liabilities
$128.1 $129.5 
v3.25.0.1
Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 28, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value The following table summarizes the fair value of the hedging instruments, presented on a gross basis, as of December 28, 2024 and December 30, 2023.
Consolidated
Balance Sheets
(in millions)Balance Sheet ClassificationDecember 28,
2024		December 30,
2023
Interest rate contracts, inclusive of accrued interestOther non-current assets$6.8 $11.6 
Interest rate contracts, inclusive of accrued interest
Other non-current liabilities
(0.1)(3.6)
Total$6.7 $8.0 
Reclassification out of Accumulated Other Comprehensive Income
The following table summarizes the gains reclassified from accumulated other comprehensive (loss) income to the consolidated financial statements for the years ended December 28, 2024, December 30, 2023 and December 31, 2022.
Consolidated
Statement of Operations
(in millions)
Location of Gain
December 28,
2024		December 30,
2023		December 31,
2022
Interest rate contracts
Non-operating gain
$14.7 $14.9 $0.7 
Total$14.7 $14.9 $0.7 
Schedule of Accumulated Other Comprehensive Income (Loss)
The following tables summarize the changes in accumulated other comprehensive (loss) income related to the hedging instruments:
(in millions)December 28,
2024		December 30,
2023		December 31,
2022
Beginning balance$7.8 $19.3 $— 
Amount recognized in other comprehensive income12.9 3.4 20.0 
Amount reclassified into earnings(14.7)(14.9)(0.7)
Ending balance$6.0 $7.8 $19.3 
v3.25.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 28, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The table below summarizes the final allocation of fair value of assets acquired and liabilities assumed.
(in millions)Sound United
Cash consideration
$1,057.5 
Purchase price$1,057.5 
Assets acquired:
Cash and cash equivalents$82.6 
Accounts receivables108.5 
Inventories238.6 
Prepaid expenses and other current assets30.0 
Property, plant and equipment113.2 
Intangible assets
649.0 
Goodwill
318.0 
Long-term other assets7.4 
Total assets acquired$1,547.3 
Liabilities assumed:
Accounts payable$(118.8)
Accrued liabilities and other current liabilities(148.9)
Deferred tax liabilities
(145.1)
Other long-term liabilities(77.0)
Total liabilities assumed$(489.8)
The following table sets forth the components of identifiable intangible assets acquired and the weighted average amortization period as of the acquisition date:
Weighted average
amortization period
(in years)
April 11,
 2022
(in millions)
Trademarks/tradenames10$6.0 
Customer relationships17196.0 
Developed technology8156.0 
Contractual license agreements1529.0 
Subtotal14 years$387.0 
Indefinite trademarks/tradenamesN/A262.0 
Total$649.0 
Business Acquisition, Pro Forma Information
There are no other material non-recurring pro forma adjustments directly attributable to the Sound United Acquisition included in the reported pro forma revenue and pro forma net income.
Twelve Months Ended
December 31,
2022
(in millions)Pro forma
Net revenue$2,293.4 
Net income $181.8 
v3.25.0.1
Equity (Tables)
 12 Months Ended
Dec. 28, 2024
Equity [Abstract]  
Schedule of Stock Repurchase Activities
The following table provides a summary of the Company’s stock repurchase activities during the years ended December 28, 2024, December 30, 2023 and December 31, 2022:
Years Ended
(in millions, except per share amounts)December 28,
2024		December 30,
2023		December 31,
2022
Shares repurchased
— (1)— 3.0 (1)
Average cost per share$— $— $133.82 
Value of shares repurchased$— $— $401.5 
______________
(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.
v3.25.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 28, 2024
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:
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
(in millions, except for weighted-average exercise prices)SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price		SharesWeighted-Average
Exercise
Price
Options outstanding, beginning of period2.7 $87.79 2.8 $83.85 2.9 $81.38 
Granted0.1 126.49 0.1 177.29 0.1 150.91 
Canceled(0.6)82.38 — 45.96 (0.1)162.77 
Exercised(0.6)39.47 (0.2)43.22 (0.1)54.53 
Options outstanding, end of period1.6 $110.70 2.7 $87.79 2.8 $83.85 
Options exercisable, end of period1.5 $105.02 2.4 $73.79 2.4 $65.83 
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 were as follows:
Year Ended
December 28,
2024
Year Ended
December 30,
2023
(in millions, except range of exercise prices and average remaining contractual life)
Options OutstandingOptions
Exercisable		Options OutstandingOptions
Exercisable
Range of Exercise PricesNumber of
Options		Average
Remaining
Contractual
Life		Number of
Options		Number of
Options		Average
Remaining
Contractual
Life
Number of
Options
$15.00 to $50.00
0.3 1.00.3 1.2 1.51.2 
$50.01 to $80.00
— 1.7— — 2.5— 
$80.01 to $120.00
0.6 2.00.6 0.7 3.70.7 
$120.01 to $160.00
0.4 4.30.3 0.4 6.00.3 
$160.01 to $200.00
0.2 4.30.2 0.3 7.00.1 
$200.01 to $230.00
— 5.2— — 6.5— 
$230.01 to $280.00
0.1 3.90.1 0.1 7.00.1 
Total
1.6 3.21.5 2.7 4.92.4 
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:
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
(in millions, except for weighted-average grant date fair value)
UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value
RSUs outstanding, beginning of period3.5 $105.87 3.2 $105.65 3.0 $104.13 
Granted
0.3 129.81 0.5 125.44 0.3 148.52 
Canceled(2.8)96.65 (0.1)172.19 (0.1)168.90 
Vested(0.2)146.85 (0.1)173.18 — 184.04 
RSUs outstanding, end of period0.8 $135.88 3.5 $105.87 3.2 $105.65 
Schedule of Nonvested Performance-based Units Activity
The number of PSUs outstanding under all of the Company’s equity plans are as follows:
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
(in millions, except for weighted-average grant date fair value)
UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value		UnitsWeighted-Average
Grant Date
Fair Value
PSUs outstanding, beginning of period0.3 $190.04 0.3 $180.04 0.3 $168.68 
Granted(1)
0.2 
(1)
164.19 0.1 
(2)
204.67 0.3 
(3)
145.49 
Canceled(0.2)185.37 — 155.98 (0.1)139.70 
Vested(0.1)73.00 (0.1)179.42 (0.2)127.46 
PSUs outstanding, end of period0.2 $169.99 0.3 $190.04 0.3 $180.04 
(1) On February 26, 2024, the Audit Committee approved the weighted payout percentage for the 2021 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2023 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.
(2)    On February 27, 2023, the Audit Committee approved the weighted payout percentage for the 2020 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2022 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.
(3)    On February 14, 2022, the Audit Committee approved the weighted payout percentage for the 2019 PSU awards (three-year performance period), which were based upon the Company’s actual fiscal year 2021 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
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Risk-free interest rate
3.3% to 4.2%
3.6% to 4.2%
1.0% to 1.9%
Expected term (in years)
4.6 years to 5.9 years
5.1 years to 5.9 years
5.1 years to 5.7 years
Estimated volatility
33.3% to 42.6%
31.6% to 36.7%
31.2% to 38.9%
Expected dividends0%0%0%
Weighted-average fair value of options granted$59.60 per share$75.08 per share$46.69 per share
Share-Based Compensation Expense Included in Consolidated Statements of Operations
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 millions)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Cost of goods sold$1.0 $1.1 $1.0 
Selling, general and administrative25.2 (1.5)32.9 
Research and development15.3 7.4 13.8 
Total
$41.5 $7.0 $47.7 
v3.25.0.1
Employee Benefits (Tables)
 12 Months Ended
Dec. 28, 2024
Postemployment Benefits [Abstract]  
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets
The following table sets forth the funded status and amounts recognized in the consolidated balance sheet for the Company’s defined benefit plans.
(in millions)December 28,
2024		December 30,
2023
Plan Assets
Fair value of plan assets at beginning of year$23.1 $22.2 
Employer contributions1.9 0.4 
Participant contributions0.7 0.6 
Realized net gains (losses) on plan assets0.3 1.1 
Benefits paid(1.4)0.8 
Foreign currency revaluation and translation gains and (losses)
(1.8)(2.0)
Fair value of plan assets at end of year$22.8 $23.1 
Projected Benefit Obligation
Projected benefit obligation at beginning of year$32.6 $32.3 
Service cost1.5 1.2 
Participant contributions0.7 0.6 
Interest cost0.4 0.5 
Actuarial gains (losses)0.4 2.3 
Benefits paid(2.2)
(1)
(0.5)
Foreign currency revaluation and translation gains and (losses)
(1.6)(3.8)
Projected benefit obligation at end of year$31.8 $32.6 
Funded status$(9.0)$(9.5)
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024, resulting in a negative allocation as of year end.
International defined benefit plans with accumulated benefit obligations in excess of fair value of plan assets consist of the following:
(in millions)December 28,
2024		December 30,
2023
Projected benefit obligation$31.8 $32.6 
Accumulated benefit obligation29.9 28.3 
Fair value of plan assets22.8 23.1 
Schedule of Net Benefit Costs
The Company’s consolidated statement of operations reflect the following components of net periodic defined benefit costs:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023
Service cost$1.5 $1.2 
Interest cost0.4 0.5 
Amortization of net losses0.1 — 
Amortization of prior service costs (credits)(0.1)— 
Expected (gains) on plan assets(0.7)(0.7)
Net periodic defined benefit plan cost$1.2 $1.0
On a weighted-average basis, the following assumptions were used to determine benefit obligations and to determine net periodic benefit cost:
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Assumptions - benefit obligations:
Discount rate1.09 %1.35 %
Rate of compensation increase1.16 1.04 
Assumptions - net periodic benefit costs:
Discount rate 1.00 %1.91 %
Rate of compensation increase1.48 1.43 
Expected long-term return on plan assets(1)
3.43 3.53 
Interest credit rate1.26 1.98 
______________
(1)     The pension expected return on assets assumption is derived primarily from underlying investment allocations and historical risk premiums per each plan, adjusted for current and future expectations, such as easing of global inflationary pressure.
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
Classification of amounts recognized in the consolidated balance sheets are as follows:
(in millions)December 28,
2024		December 30,
2023
Non-current liability$9.0 $9.5 
Schedule of Allocation of Plan Assets
The weighted-average asset allocations at year end by asset category were as follows:
Actual Allocation
Asset category
December 28,
2024		December 30,
2023
Cash and cash equivalents(1)
(5.7)%(5.0)%
Equity securities40.6 35.0 
Debt securities41.9 47.0 
Other
23.2 24.0 
______________
(1)     Due to the timing of a cash transfer, there was a payable as of December 28, 2024 and December 30, 2023, resulting in a negative allocation as of year end.
Schedule of Expected Benefit Payments
The estimated future benefit payments, based upon the same assumptions used to measure the benefit obligations and expected future employee service, were as follows:
(in millions)Year Ended
December 28,
2024
2025
$1.6 
2026
2.1 
2027
2.3 
2028
2.0 
2029
2.5 
Thereafter
9.5 
Total $20.0 
v3.25.0.1
Non-operating Loss (Tables)
 12 Months Ended
Dec. 28, 2024
Nonoperating Income (Expense) [Abstract]  
Schedule of Non-operating Income (Expense)
Non-operating loss consists of the following:
(in millions)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Interest income$4.8 $3.0 $1.8 
Realized and unrealized foreign currency gain (loss)0.2 (1.1)7.3 
Interest expense(43.6)(50.3)(25.7)
Total non-operating loss$(38.6)$(48.4)$(16.6)
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Before (Benefit) Provision for Income Taxes
The components of income before (benefit) provision for income taxes are as follows:
(in millions)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
United States$(67.1)$9.1 $77.6 
Foreign(238.2)79.0 115.8 
Total
$(305.3)$88.1 $193.4 
Schedule of Current and Deferred Provision (Benefit) for Income Taxes
The following table presents the current and deferred (benefit) provision for income taxes:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Current:
Federal$15.0 $15.0 $48.7 
State3.4 3.5 6.1 
Foreign19.4 23.7 34.4 
Subtotal$37.8 $42.2 $89.2 
Deferred:
Federal$(19.0)$(12.5)$(20.5)
State(8.3)(9.0)(8.7)
Foreign(10.9)(14.1)(10.1)
Subtotal
(38.2)(35.6)(39.3)
Total
$(0.4)$6.6 $49.9 
Schedule of 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
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Statutory regular federal income tax rate21.0 %21.0 %21.0 %
Foreign income taxed at different rates6.7 1.1 — 
Excess stock-based compensation1.8 (3.2)(1.2)
State provision, net of federal benefit1.3 (4.9)(1.0)
Research and development tax credits1.2 (5.1)(1.7)
Derecognition of uncertain tax position1.1 (2.3)(0.8)
Transaction-related costs— — 0.9 
Tax credit— (9.2)— 
Nondeductible executive compensation(1.2)(1.6)2.9 
U.S. tax on foreign income, net(3.5)10.0 4.8 
Goodwill impairment(27.4)— — 
Other(0.9)1.6 0.9 
Total
0.1 %7.4 %25.8 %
Schedule of Components of Deferred Tax Assets
The components of the deferred tax assets are as follows:
(in millions)December 28,
2024		December 30,
2023
Deferred tax assets:
Net operating losses$54.8 $53.7 
Capitalized R&D44.6 33.0 
Accrued liabilities39.3 24.6 
Tax credits36.7 33.2 
Deferred revenue27.6 28.0 
Operating lease liabilities13.8 9.7 
Interest11.8 15.6 
Stock-based compensation9.4 12.3 
Inventory Reserve1.1 — 
Other7.2 7.3 
Total246.3 217.4 
Valuation allowance(26.5)(18.9)
Total deferred tax assets$219.8 $198.5 
Deferred tax liabilities:
Inventory$(0.8)$(0.8)
Interest rate hedge(1.5)(1.9)
Withholding taxes on undistributed foreign earnings(3.1)(3.1)
Property and equipment(11.4)(14.4)
State taxes and other(12.4)(10.4)
Operating lease liabilities(17.2)(11.8)
Intangible assets(129.6)(160.5)
Other(0.3)(0.2)
Total deferred tax liabilities(176.3)(203.1)
Net deferred tax assets$43.5 $(4.6)
Schedule of Reconciliation of Total Amounts of Unrecognized Tax Benefits
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023
Unrecognized tax benefits (gross), beginning of period$33.0 $26.1 
Increase from tax positions in current period7.2 7.9 
Increase from tax positions in prior period1.8 1.3 
Lapse of statute of limitations(3.5)(2.3)
Unrecognized tax benefits (gross), end of period$38.5 $33.0 
v3.25.0.1
Segment and Enterprise Reporting (Tables)
 12 Months Ended
Dec. 28, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Selected information by reportable segment is presented below for the years ended December 28, 2024, December 30, 2023 and December 31, 2022:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Revenues by segment:
Healthcare$1,395.2 $1,275.5 $1,340.3 
Non-healthcare699.2 772.6 695.5 
Revenue
$2,094.4 $2,048.1 $2,035.8 
Cost of goods sold by segment:
Healthcare$520.7 $498.4 $470.1 
Healthcare other(1)
80.2 11.5 2.4 
Non-healthcare463.9 514.6 443.0 
Non-healthcare other(1)
25.2 20.1 61.5 
Cost of goods sold$1,090.0 $1,044.6 $977.0 
Gross profit:$1,004.4 $1,003.5 $1,058.8 
Healthcare
Segment gross profit
$874.5 $777.1 $870.2 
Acquired asset amortization(1)(2)
(1.8)(2.0)(2.3)
Business transition and related costs(1)(3)
(77.1)(5.6)(0.1)
Other(1)
(1.3)(3.9)— 
Non-healthcare
Segment gross profit235.3 258.0 252.5 
Acquired asset amortization(1)(2)
(17.7)(19.7)(61.5)
Business transition and related costs(1)(3)
(7.5)(0.4)— 
__________________
(1)     Management excludes certain expenses from segment gross profit. Management considers these excluded amounts to be non-recurring or non-operational and as such, are excluded from segment gross profit as this enables management to better understand operational results.
(2)     Acquired asset amortization is a non-GAAP financial measure. These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired intangible assets including, but not limited to customer relationships, intellectual property, trade names and non-competition agreements.
(3)     Business transition and related costs are a non-GAAP financial measure. These transactions represent gains, losses, and other related costs associated with business transition plans. These items may include but are not limited to severance, relocation, consulting, leasehold exit costs, asset impairment, and other related costs to rationalize our operational footprint and optimize business results.
The Company’s depreciation and amortization by segment are as follows:
(in millions)Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
2022
Total depreciation and amortization by segment:
Healthcare$48.7 $38.1 $36.0 
Non-healthcare54.3 60.1 100.1 
Total depreciation and amortization by segment
$103.0 $98.2 $136.1 
The Company’s total assets by segment are as follows:
(in millions)December 28,
2024		December 30,
2023
Total assets by segment:
Healthcare$1,601.1 $1,631.8 
Non-healthcare1,007.2 1,390.6 
Asset held-for-sale
17.4 — 
Corporate overhead— 19.1 
Total assets by segment$2,625.7 $3,041.5 
The Company’s consolidated long-lived assets (tangible non-current assets) by geographic area are as follows:
(in millions, except percentages)
Year Ended
December 28,
2024		Year Ended
December 30,
2023
Total long-lived assets by geographic area:
United States$319.7 79.9 %$317.9 74.6 %
International80.6 20.1 108.0 25.4 
Total long-lived assets by geographic area$400.3 100.0 %$425.9 100.0 %
The following schedule presents an analysis of the Company’s revenues based upon the geographic area (ship to location):
(in millions, except percentages)
Year Ended
December 28,
2024		Year Ended
December 30,
2023		Year Ended
December 31,
 2022
Total revenue by geographic area:
United States (U.S.)$1,127.6 53.8 %$1,058.8 51.8 %$1,141.7 56.1 %
Europe, Middle East and Africa595.6 28.4 571.9 27.9 523.6 25.7 
Asia and Australia303.5 14.5 351.0 17.1 326.8 16.1 
North and South America (excluding U.S.)67.7 3.3 66.4 3.2 43.7 2.1 
     Total revenue by geographic area$2,094.4 100.0 %$2,048.1 100.0 %$2,035.8 100.0 %
v3.25.0.1
Description of the Company (Details)
$ in Millions
 12 Months Ended
Dec. 28, 2024
USD ($)
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of operating segments | segment 2
Number of reportable segments | segment 2
Restructuring Cost and Reserve [Line Items]  
Expected restructuring costs $ 128.0
Accrued severance 4.3
Cost of goods sold  
Restructuring Cost and Reserve [Line Items]  
Expected restructuring costs 61.0
Selling, General and Administrative Expenses  
Restructuring Cost and Reserve [Line Items]  
Expected restructuring costs 31.0
Research and development  
Restructuring Cost and Reserve [Line Items]  
Expected restructuring costs $ 36.0
v3.25.0.1
Summary of Significant Accounting Policies - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Assets    
Cash and cash equivalents $ 101.0 $ 87.0
Money market funds 76.6 76.0
Pension assets:    
Cash and cash equivalents (1.3) (1.2)
Equity securities 9.3 8.1
Debt securities 9.6 10.7
Real estate funds 3.6 3.1
Alternative investments 1.4 1.9
Other 0.2 0.5
Equity securities 1.3 1.7
Total assets 209.2 200.4
Liabilities    
Pension benefit obligation 31.8 32.6
Total liabilities 31.9 36.2
Cash Flow Hedging    
Pension assets:    
Derivative instruments   11.6
Cash Flow Hedging    
Pension assets:    
Derivative instruments 6.8  
Liabilities    
Derivative instruments - cash flow hedge 0.1 3.6
Warrant    
Pension assets:    
Derivative instruments 0.7 1.0
Level 1    
Assets    
Cash and cash equivalents 101.0 87.0
Money market funds 76.6 76.0
Pension assets:    
Cash and cash equivalents (1.3) (1.2)
Equity securities 9.3 8.1
Debt securities 9.6 9.9
Real estate funds 0.0 0.0
Alternative investments 0.0 0.0
Other 0.0 0.0
Equity securities 1.3 1.7
Total assets 204.0 194.1
Liabilities    
Pension benefit obligation 31.8 32.6
Total liabilities 31.9 36.2
Level 1 | Cash Flow Hedging    
Pension assets:    
Derivative instruments   11.6
Level 1 | Cash Flow Hedging    
Pension assets:    
Derivative instruments 6.8  
Liabilities    
Derivative instruments - cash flow hedge 0.1 3.6
Level 1 | Warrant    
Pension assets:    
Derivative instruments 0.7 1.0
Level 2    
Assets    
Cash and cash equivalents 0.0 0.0
Money market funds 0.0 0.0
Pension assets:    
Cash and cash equivalents 0.0 0.0
Equity securities 0.0 0.0
Debt securities 0.0 0.8
Real estate funds 3.6 3.1
Alternative investments 1.4 1.9
Other 0.2 0.5
Equity securities 0.0 0.0
Total assets 5.2 6.3
Liabilities    
Pension benefit obligation 0.0 0.0
Total liabilities 0.0 0.0
Level 2 | Cash Flow Hedging    
Pension assets:    
Derivative instruments   0.0
Level 2 | Cash Flow Hedging    
Pension assets:    
Derivative instruments 0.0  
Liabilities    
Derivative instruments - cash flow hedge 0.0 0.0
Level 2 | Warrant    
Pension assets:    
Derivative instruments 0.0 0.0
Level 3    
Assets    
Cash and cash equivalents 0.0 0.0
Money market funds 0.0 0.0
Pension assets:    
Cash and cash equivalents 0.0 0.0
Equity securities 0.0 0.0
Debt securities 0.0 0.0
Real estate funds 0.0 0.0
Alternative investments 0.0 0.0
Other 0.0 0.0
Equity securities 0.0 0.0
Total assets 0.0 0.0
Liabilities    
Pension benefit obligation 0.0 0.0
Total liabilities 0.0 0.0
Level 3 | Cash Flow Hedging    
Pension assets:    
Derivative instruments   0.0
Level 3 | Cash Flow Hedging    
Pension assets:    
Derivative instruments 0.0  
Liabilities    
Derivative instruments - cash flow hedge 0.0 0.0
Level 3 | Warrant    
Pension assets:    
Derivative instruments $ 0.0 $ 0.0
v3.25.0.1
Summary of Significant Accounting Policies - Useful Life (Details)
Dec. 28, 2024
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 | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 2 years
Demonstration units | Maximum  
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 15 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 20 years
Transportation, vehicles and other | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 1 year
Transportation, vehicles and other | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, useful life 20 years
v3.25.0.1
Summary of Significant Accounting Policies - Narrative (Details)
shares in Millions, $ in Millions
 12 Months Ended
Oct. 24, 2024
shares
Dec. 28, 2024
USD ($)
reportingUnit
segment
shares
Dec. 30, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Summary Of Significant Accounting Policies [Line Items]        
Number of reporting units | reportingUnit   2    
Number of sources of product revenue | segment   4    
Advertising costs | $   $ 58.2 $ 61.4 $ 49.3
Options to purchase of shares of common stock (in shares)   1.1 1.2 0.8
Restricted Stock Units (RSUs)        
Summary Of Significant Accounting Policies [Line Items]        
RSUs cancelled (in shares)   2.8 0.1 0.1
Chief Executive Officer | Restricted Stock Units (RSUs)        
Summary Of Significant Accounting Policies [Line Items]        
Options to purchase of shares of common stock (in shares) 2.7   2.7 2.7
RSUs cancelled (in shares) 2.7      
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    
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    
v3.25.0.1
Summary of Significant Accounting Policies - Changes in Product Warranty Accrual (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]      
Product warranty accrual, beginning of period $ 8.6 $ 10.6 $ 2.5
Increase related to acquisition, net of reserve 0.0 0.0 8.4
Accrual for warranties issued 9.1 7.8 1.8
Changes in pre-existing warranties (including changes in estimates) (5.4) (7.5) 4.7
Settlements made (3.1) (2.3) (6.8)
Product warranty accrual, end of period $ 9.2 $ 8.6 $ 10.6
v3.25.0.1
Summary of Significant Accounting Policies - Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Net (loss) income      
Net income (loss) $ (304.9) $ 81.5 $ 143.5
Basic net (loss) income per share:      
Weighted-average shares outstanding - basic (in shares) 53.3 52.8 53.6
Net (loss) income per basic share (in dollars per share) $ (5.72) $ 1.54 $ 2.68
Diluted net (loss) income per share:      
Weighted-average shares outstanding - basic (in shares) 53.3 52.8 53.6
Diluted share equivalents: stock options and RSUs and PSUs (in shares) 0.0 1.3 1.6
Weighted-average shares outstanding - diluted (in shares) 53.3 54.1 55.2
Net (loss) income per diluted share (in dollars per share) $ (5.72) $ 1.51 $ 2.60
v3.25.0.1
Summary of Significant Accounting Policies - Cash Flow Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jan. 01, 2022
Cash paid during the year for:        
Interest expense $ 39.1 $ 51.0 $ 23.0  
Income taxes 41.9 54.4 87.3  
Operating lease liabilities 24.6 22.4 17.2  
Non-cash operating activities:        
ROU assets obtained in exchange for lease liabilities 28.6 16.3 0.0  
Non-cash investing activities:        
Unpaid purchases of property and equipment 0.7 0.2 3.8  
Unsettled common stock proceeds from option exercises 0.1 0.0 0.0  
Reconciliation of cash, cash equivalents and restricted cash:        
Cash and cash equivalents 177.6 163.0 202.9  
Restricted cash 3.8 5.2 6.7  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 181.4 $ 168.2 $ 209.6 $ 748.4
v3.25.0.1
Related Party Transactions (Details)
 1 Months Ended 12 Months Ended
Sep. 24, 2024
Jul. 31, 2021
USD ($)
Dec. 28, 2024
USD ($)
ft²
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Sep. 19, 2024
director
Jun. 26, 2023
director
Jul. 03, 2021
USD ($)
Related Party Transaction [Line Items]                
Total revenue     $ 2,094,400,000 $ 2,048,100,000 $ 2,035,800,000      
Related Party                
Related Party Transaction [Line Items]                
Proceeds from royalties received     300,000 100,000 200,000      
Total revenue     114,100,000 93,900,000 103,000,000.0      
Other current liabilities     5,300,000 4,200,000        
Trade accounts receivable     15,200,000 7,300,000        
Minimum | Related Party                
Related Party Transaction [Line Items]                
Minimum aggregate royalty payments     5,000,000.0          
Willow Laboratories, Inc. | Related Party                
Related Party Transaction [Line Items]                
Minimum aggregate royalty payments     20,400,000 19,200,000 16,900,000      
Payment for administrative fees     500,000 500,000 400,000      
Sublease Income     1,200,000 1,200,000 1,200,000      
Other current liabilities     $ 5,000,000.0 4,100,000        
Leased Property | Related Party                
Related Party Transaction [Line Items]                
Square feet of office | ft²     34,000          
Not for Profit Organization | Related Party                
Related Party Transaction [Line Items]                
Cash contributions     $ 2,500,000 1,000,000.0 0      
Like Minded Entertainment | Related Party                
Related Party Transaction [Line Items]                
Other current liabilities     0 0        
Cash contributions     0 1,500,000 1,400,000      
Like Minded Labs | Related Party                
Related Party Transaction [Line Items]                
License fee               $ 3,000,000
Vantrix Corp | Purchase Commitment                
Related Party Transaction [Line Items]                
Purchases from related party   $ 500,000            
Vantrix Corp | Options Held                
Related Party Transaction [Line Items]                
Purchases from related party   $ 1,100,000            
Reimbursement Fee | Chief Executive Officer                
Related Party Transaction [Line Items]                
Cash contributions     100,000 100,000 100,000      
Politan | Related Party                
Related Party Transaction [Line Items]                
Number of directors | director           2 2  
Related party transaction, percentage of outstanding shares 8.80%              
Legal fees     27,600,000 18,000,000        
Cardinal Health | Related Party                
Related Party Transaction [Line Items]                
Total revenue     114,100,000 93,900,000 $ 103,000,000.0      
Trade accounts receivable     $ 15,200,000 $ 7,300,000        
v3.25.0.1
Inventories (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 181.3 $ 229.7
Work-in-process 24.3 30.0
Finished goods 253.6 285.3
Total inventories 459.2 $ 545.0
Inventory write-down $ 52.3  
v3.25.0.1
Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 36.6 $ 58.3
Prepaid income taxes 34.1 29.3
Lease receivable, current 26.6 30.2
Indirect taxes receivable 24.8 28.6
Contract assets, current 11.4 6.7
Prepaid rebates and royalties 4.6 4.8
Restricted cash 2.7 3.0
Other current assets 4.3 7.5
Total other current assets $ 145.1 $ 168.4
v3.25.0.1
Lease Receivable - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]    
Lease revenue $ 44.0 $ 58.0
v3.25.0.1
Lease Receivable - Sales-Type (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]    
Lease receivable $ 85.5 $ 101.9
Allowance for credit loss (0.2) (0.3)
Lease receivable, net 85.3 101.6
Less: current portion of lease receivable (26.6) (30.2)
Lease receivable, non-current $ 58.7 $ 71.4
v3.25.0.1
Lease Receivable - Sales-Type Lease, Maturity (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Sales-Type Leases    
2025 $ 26.5  
2026 21.4  
2027 15.9  
2028 10.3  
2029 7.2  
Thereafter 4.0  
Lease receivable, net 85.3 $ 101.6
Less: imputed interest 0.0  
Present value of total lease payments 85.3  
Operating Leases    
2025 25.5  
2026 24.3  
2027 20.2  
2028 15.7  
2029 14.0  
Thereafter 11.8  
Total $ 111.5  
Discount rate used to measure the net investment in lease 0.00%  
v3.25.0.1
Deferred Costs and Other Contract Assets - Deferred Costs and Other Contract Assets (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Deferred commissions $ 25.0 $ 21.8  
Unbilled contract receivables 20.2 17.0  
Prepaid contract allowances 14.5 17.0  
Deferred equipment agreements, net 1.3 1.5  
Deferred costs and other contract assets $ 61.0 $ 57.3 $ 41.9
v3.25.0.1
Deferred Costs and Other Contract Assets - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]      
Deferred costs and other contracts $ 61.0 $ 57.3 $ 41.9
Deferred commission amortization $ 7.6 $ 5.8 $ 4.3
v3.25.0.1
Property and Equipment, Net - Components of Property and Equipment (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 29, 2025
Dec. 28, 2024
May 31, 2024
Sep. 28, 2024
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Mar. 30, 2024
Property, Plant and Equipment [Line Items]                
Total property and equipment   $ 677.8     $ 677.8 $ 686.8    
Accumulated depreciation   (296.2)     (296.2) (262.4)    
Property and equipment, net   381.6     381.6 424.4    
Idle undeveloped land held for sale               $ 11.4
Gain on sale of land         (98.7) (0.8) $ (0.5)  
Capitalized cost   16.0            
Building and building improvements                
Property, Plant and Equipment [Line Items]                
Total property and equipment   150.3     150.3 151.0    
Machinery, equipment and tooling                
Property, Plant and Equipment [Line Items]                
Total property and equipment   180.2     180.2 169.7    
Operating lease assets                
Property, Plant and Equipment [Line Items]                
Total property and equipment   148.6     148.6 92.2    
Land                
Property, Plant and Equipment [Line Items]                
Total property and equipment   54.3     54.3 66.2    
Gain on sale of land     $ 0.9          
Computer equipment and software                
Property, Plant and Equipment [Line Items]                
Total property and equipment   44.4     44.4 45.5    
Leasehold improvements                
Property, Plant and Equipment [Line Items]                
Total property and equipment   40.8     40.8 37.5    
Transportation, vehicles and other                
Property, Plant and Equipment [Line Items]                
Total property and equipment   0.2     0.2 34.0    
Furniture and office equipment                
Property, Plant and Equipment [Line Items]                
Total property and equipment   17.5     17.5 20.4    
Demonstration units                
Property, Plant and Equipment [Line Items]                
Total property and equipment   10.9     10.9 11.1    
Construction-in-progress (CIP)                
Property, Plant and Equipment [Line Items]                
Total property and equipment   $ 30.6     $ 30.6 $ 59.2    
Vehicles                
Property, Plant and Equipment [Line Items]                
Proceeds from sale of the property plant and equipment       $ 2.0        
Corporate Aircraft | Subsequent Event                
Property, Plant and Equipment [Line Items]                
Proceeds from sale of the property plant and equipment $ 19.5              
v3.25.0.1
Property and Equipment, Net - Narrative (Details)
$ in Millions, $ in Millions
 3 Months Ended 12 Months Ended
Feb. 14, 2022
CAD ($)
Dec. 28, 2024
CAD ($)
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 28, 2024
CAD ($)
Property, Plant and Equipment [Line Items]            
Depreciation     $ 41.3 $ 43.9 $ 43.0  
Amortization of deferred cost of goods sold     23.7 19.3    
Accumulated amortization of deferred cost of goods sold     1.1 1.5    
Property, plant and equipment, additions $ 123.0          
Termination fees   $ 24.7        
Escrow deposit $ 21.0          
Initial purchase deposit           $ 21.0
Escrow deposit, fees incurred           $ 3.7
Operating lease assets            
Property, Plant and Equipment [Line Items]            
Depreciation     $ 23.7 $ 19.3 $ 4.4  
v3.25.0.1
Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Sep. 30, 2023
Dec. 28, 2024
Dec. 30, 2023
Intangible assets subject to amortization:          
Gross Carrying Amount $ 528.1 $ 552.3   $ 528.1 $ 552.3
Accumulated Amortization (177.2) (132.4)   (177.2) (132.4)
Net Carrying Amount 350.9 419.9   $ 350.9 $ 419.9
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration]       Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10) Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10)
Intangible assets not subject to amortization:          
Trademarks 207.3 232.4   $ 207.3 $ 232.4
Intangible Assets, Net (Excluding Goodwill) [Abstract]          
Intangible assets, net 558.2 652.3   558.2 652.3
Capitalized software development costs, patents and licenses-related party 26.0        
Trademarks          
Intangible assets not subject to amortization:          
Trademarks 217.3 242.4   217.3 242.4
Impairment charge   (3.0) $ (7.0) (10.0) (10.0)
Total trademarks 207.3 232.4   207.3 232.4
Customer relationships          
Intangible assets subject to amortization:          
Gross Carrying Amount 199.3 209.2   199.3 209.2
Accumulated Amortization (41.7) (31.5)   (41.7) (31.5)
Net Carrying Amount 157.6 177.7   157.6 177.7
Acquired technologies          
Intangible assets subject to amortization:          
Gross Carrying Amount 164.9 174.7   164.9 174.7
Accumulated Amortization (62.0) (45.3)   (62.0) (45.3)
Net Carrying Amount 102.9 129.4   102.9 129.4
Capitalized software development costs          
Intangible assets subject to amortization:          
Gross Carrying Amount 54.1 53.9   54.1 53.9
Accumulated Amortization (28.6) (15.2)   (28.6) (15.2)
Net Carrying Amount 25.5 38.7   25.5 38.7
Licenses          
Intangible assets subject to amortization:          
Gross Carrying Amount 30.3 39.7   30.3 39.7
Accumulated Amortization (6.2) (7.4)   (6.2) (7.4)
Net Carrying Amount 24.1 32.3   24.1 32.3
Licenses | Willow Laboratories, Inc.          
Intangible assets subject to amortization:          
Gross Carrying Amount 7.5 7.5   7.5 7.5
Accumulated Amortization (7.1) (6.7)   (7.1) (6.7)
Net Carrying Amount 0.4 0.8   0.4 0.8
Patents          
Intangible assets subject to amortization:          
Gross Carrying Amount 44.0 39.2   44.0 39.2
Accumulated Amortization (17.5) (15.2)   (17.5) (15.2)
Net Carrying Amount 26.5 24.0   26.5 24.0
Trademarks          
Intangible assets subject to amortization:          
Gross Carrying Amount 20.1 20.1   20.1 20.1
Accumulated Amortization (9.0) (7.4)   (9.0) (7.4)
Net Carrying Amount 11.1 12.7   11.1 12.7
Non-compete agreements          
Intangible assets subject to amortization:          
Gross Carrying Amount 6.3 6.3   6.3 6.3
Accumulated Amortization (4.1) (2.6)   (4.1) (2.6)
Net Carrying Amount 2.2 3.7   2.2 3.7
Other          
Intangible assets subject to amortization:          
Gross Carrying Amount 1.6 1.7   1.6 1.7
Accumulated Amortization (1.0) (1.1)   (1.0) (1.1)
Net Carrying Amount $ 0.6 $ 0.6   $ 0.6 $ 0.6
v3.25.0.1
Intangible Assets, Net - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Sep. 30, 2023
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]            
Amortization expense $ 177,200,000 $ 132,400,000   $ 177,200,000 $ 132,400,000  
Unamortized capitalized software development costs 1,400,000 11,900,000   1,400,000 11,900,000 $ 0
Cost of patents, gross 13,000,000.0 12,100,000   13,000,000.0 12,100,000  
Cost of trademarks, gross 800,000 1,000,000.0   800,000 1,000,000.0  
Impairment of goodwill       294,000,000.0    
Non-healthcare            
Finite-Lived Intangible Assets [Line Items]            
Impairment of goodwill 294,000,000     294,000,000.0    
Trademarks            
Finite-Lived Intangible Assets [Line Items]            
Impairment charge   3,000,000 $ 7,000,000 $ 10,000,000.0 10,000,000.0  
Trademarks | Non-healthcare            
Finite-Lived Intangible Assets [Line Items]            
Impairment charge 10,000,000          
Minimum            
Finite-Lived Intangible Assets [Line Items]            
Acquired finite-lived intangible assets, weighted average useful life       12 years    
Maximum            
Finite-Lived Intangible Assets [Line Items]            
Acquired finite-lived intangible assets, weighted average useful life       14 years    
Patents And Trademarks            
Finite-Lived Intangible Assets [Line Items]            
Amortization expense 61,700,000 54,400,000   $ 61,700,000 54,400,000 $ 39,800,000
Total renewal costs capitalized       4,300,000 1,000,000.0  
Patents            
Finite-Lived Intangible Assets [Line Items]            
Amortization expense 17,500,000 15,200,000   $ 17,500,000 15,200,000  
Weighted average number of years until the next renewal       2 years    
Trademarks            
Finite-Lived Intangible Assets [Line Items]            
Amortization expense $ 9,000,000.0 $ 7,400,000   $ 9,000,000.0 $ 7,400,000  
Weighted average number of years until the next renewal       6 years    
v3.25.0.1
Intangible Assets, Net - Estimated Amortization Expense (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 51.6  
2026 50.3  
2027 38.0  
2028 37.6  
2029 37.2  
Thereafter 136.2  
Net Carrying Amount $ 350.9 $ 419.9
v3.25.0.1
Goodwill (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 28, 2024
Dec. 28, 2024
Dec. 30, 2023
Goodwill [Roll Forward]      
Goodwill, beginning of period   $ 407.7 $ 445.4
Adjustments to goodwill for impairment   (294.0)  
Adjustments to goodwill from purchase price allocation   (18.2) (18.2)
Foreign currency translation adjustment   (17.0) (19.5)
Goodwill, end of period $ 96.7 96.7 407.7
Healthcare      
Goodwill [Roll Forward]      
Goodwill, beginning of period   98.6 97.6
Adjustments to goodwill for impairment   0.0  
Adjustments to goodwill from purchase price allocation   0.0 0.0
Foreign currency translation adjustment   (1.9) 1.0
Goodwill, end of period 96.7 96.7 98.6
Non-healthcare      
Goodwill [Roll Forward]      
Goodwill, beginning of period   309.1 347.8
Adjustments to goodwill for impairment (294.0) (294.0)  
Adjustments to goodwill from purchase price allocation   (18.2) (18.2)
Foreign currency translation adjustment   (15.1) (20.5)
Goodwill, end of period $ 0.0 $ 0.0 $ 309.1
v3.25.0.1
Lessee ROU Assets and Lease Liabilities - Narrative (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 28, 2024
USD ($)
property
Dec. 28, 2024
USD ($)
property
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Leases [Abstract]        
Operating lease renewal term 5 years 5 years    
Weighted average discount rate 4.60% 4.60% 4.10%  
Accumulated amortization for operating leases $ 59.8 $ 59.8 $ 48.9  
Weighted average remaining lease term 5 years 5 years 5 years 7 months 6 days  
Operating lease costs   $ 25.7 $ 22.7 $ 18.0
Segment Reporting Information [Line Items]        
Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10)   $ 304.0 $ 10.0 $ 0.0
Number of lease properties | property 3 3    
Selling, General and Administrative Expenses        
Segment Reporting Information [Line Items]        
Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10)   $ 3.5    
Strategic Realignment Initiative        
Segment Reporting Information [Line Items]        
Impairment charges, including intangible assets and goodwill - (Note 9 and Note 10) $ 2.1      
v3.25.0.1
Lessee ROU Assets and Lease Liabilities Lessee - Operating Lease Balance Sheet Classification (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]    
Lessee ROU assets, net $ 74.4 $ 59.1
Lessee current lease liabilities 21.4 18.2
Lessee non-current lease liabilities 59.5 45.8
Total operating lease liabilities $ 80.9 $ 64.0
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other non-current assets Other non-current assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other current liabilities Other current liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other non-current liabilities Other non-current liabilities
v3.25.0.1
Lessee ROU Assets and Lease Liabilities - Future Maturities Operating Lease Payments (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Leases [Abstract]    
2025 $ 24.1  
2026 19.7  
2027 14.9  
2028 12.8  
2029 7.2  
Thereafter 12.9  
Total 91.6  
Imputed interest (10.7)  
Present value $ 80.9 $ 64.0
v3.25.0.1
Other Non-Current Assets (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Product Information [Line Items]    
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Total non-current assets Total non-current assets
Lessee ROU assets, net $ 74.4 $ 59.1
Prepaid deposits and other 9.4 6.4
Strategic investments 6.6 7.2
Equity investments - fair value 2.0 2.7
Restricted cash 1.1 2.2
Other non-current assets 0.4 0.3
Total non-current assets 100.1 89.3
Strategic investments 1.6  
Cash Flow Hedging    
Product Information [Line Items]    
Derivative assets - non-current $ 6.2 $ 11.4
v3.25.0.1
Deferred Revenue and Other Contract Liabilities, Current - Schedule of Deferred Revenue and Other Contract Liabilities, Current (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Revenue Recognition and Deferred Revenue [Abstract]      
Deferred revenue $ 74.2 $ 63.8 $ 61.0
Accrued rebates and allowances 38.6 37.5  
Accrued customer reimbursements 10.1 12.4  
Total deferred revenue and other contract liabilities 122.9 113.7 $ 80.6
Less: Non-current portion of deferred revenue (27.4) (26.4)  
Deferred revenue and other contract-related liabilities, current $ 95.5 $ 87.3  
v3.25.0.1
Deferred Revenue and Other Contract Liabilities, Current - Narrative (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Oct. 31, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Deferred revenue and other current contract liabilities $ 122.9 $ 113.7 $ 80.6  
Unrecognized contract revenue 1,773.3      
Deferred revenue 74.2 $ 63.8 $ 61.0  
Bowers and Wilkins        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Royalty prepayment       $ 20.0
Deferred revenue 12.1     $ 35.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Unrecognized contract revenue $ 510.7      
Revenue, remaining performance obligation, expected timing of satisfaction, period 1 year      
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-29 | Twelve Months and Thereafter        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months      
v3.25.0.1
Deferred Revenue and Other Contract Liabilities, Current - Changes in Deferred Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Movement in Deferred Revenue [Roll Forward]    
Deferred revenue, beginning of the period $ 63.8 $ 61.0
Revenue deferred during the period 43.5 28.3
Recognition of revenue deferred in prior periods (33.1) (25.5)
Deferred revenue, end of the period $ 74.2 $ 63.8
v3.25.0.1
Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Other Current Liabilities [Line Items]    
Current portion of long-term debt $ 37.3 $ 34.3
Accrued expenses 31.0 26.3
Accrued indirect taxes payable 27.4 23.9
Lessee lease liabilities, current 21.4 18.2
Income tax payable 18.4 16.1
Accrued legal fees 14.9 9.9
Accrued property taxes 9.7 10.2
Accrued warranty 9.2 8.6
Accrued donations 1.6 4.0
Total other current liabilities 185.8 162.4
Nonrelated Party    
Other Current Liabilities [Line Items]    
Other current liabilities 9.6 6.7
Related Party    
Other Current Liabilities [Line Items]    
Other current liabilities $ 5.3 $ 4.2
v3.25.0.1
Debt - Schedule of Debt (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Debt Instrument [Line Items]    
Short-term debt $ 37.3 $ 34.3
Long-term debt 727.9 871.7
Total debt 765.2 906.0
Japanese Loans    
Debt Instrument [Line Items]    
Short-term debt 22.3 23.0
Long-term debt 13.6 8.8
Term Loan    
Debt Instrument [Line Items]    
Short-term debt 15.0 11.3
Long-term debt 258.3 271.4
Revolver    
Debt Instrument [Line Items]    
Long-term debt $ 456.0 $ 591.5
v3.25.0.1
Debt - Narrative (Details)
 1 Months Ended 12 Months Ended
Feb. 28, 2023
USD ($)
Apr. 11, 2022
USD ($)
Sep. 28, 2024
USD ($)
Mar. 31, 2020
USD ($)
Dec. 28, 2024
USD ($)
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2024
JPY (¥)
Sep. 28, 2024
JPY (¥)
Feb. 28, 2023
JPY (¥)
May 16, 2022
USD ($)
May 31, 2021
USD ($)
May 31, 2021
JPY (¥)
Apr. 30, 2021
USD ($)
Apr. 30, 2021
JPY (¥)
Jun. 30, 2020
USD ($)
Jun. 30, 2020
JPY (¥)
Mar. 31, 2020
JPY (¥)
New Credit Facility Agreement                                      
Debt Instrument [Line Items]                                      
Accordion feature, increase limit   $ 400,000,000                                  
Effective interest rate         5.90%                            
New Credit Facility Agreement | Adjusted Secured Overnight Financing Rate (SOFR)                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   1.00%                                  
New Credit Facility Agreement | Federal Funds Effective Swap Rate                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   0.50%                                  
New Credit Facility Agreement | Adjusted Secured Overnight Financing Rate (SOFR), One-Month Interest Period                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   0.10%                                  
New Credit Facility Agreement | Adjusted Secured Overnight Financing Rate (SOFR), Three-Month Interest Period                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   0.15%                                  
New Credit Facility Agreement | Adjusted Secured Overnight Financing Rate (SOFR), Six-Month Interest Period                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   0.25%                                  
New Credit Facility Agreement | Minimum                                      
Debt Instrument [Line Items]                                      
Commitment fee percentage   0.15%                                  
New Credit Facility Agreement | Minimum | Alternate Base Rate                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   0.00%                                  
New Credit Facility Agreement | Minimum | Adjusted Secured Overnight Financing Rate (SOFR)                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   1.00%                                  
New Credit Facility Agreement | Maximum                                      
Debt Instrument [Line Items]                                      
Commitment fee percentage   0.275%                                  
New Credit Facility Agreement | Maximum | Alternate Base Rate                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   0.75%                                  
New Credit Facility Agreement | Maximum | Adjusted Secured Overnight Financing Rate (SOFR)                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate   1.75%                                  
Japanese Revolving Loan                                      
Debt Instrument [Line Items]                                      
Effective interest rate         1.10%                            
Japanese Government Loans                                      
Debt Instrument [Line Items]                                      
Debt instrument face amount                                 $ 9,400,000 ¥ 1,480,000,000  
Average interest rate                                 1.33% 1.33%  
Japanese Equipment Loans                                      
Debt Instrument [Line Items]                                      
Debt instrument face amount               $ 1,500,000 ¥ 230,000,000       $ 500,000 ¥ 80,000,000 $ 1,000,000 ¥ 150,000,000      
Average interest rate               1.095% 1.095%       1.20% 1.20% 0.58% 0.58%      
Japanese Syndicate Loan                                      
Debt Instrument [Line Items]                                      
Debt issuance costs     $ 200,000             ¥ 25,000,000                  
Debt instrument face amount     $ 7,900,000             ¥ 1,250,000,000                  
Japanese Syndicate Loan | Base Rate                                      
Debt Instrument [Line Items]                                      
Basis spread on variable rate     0.70%                                
Unsecured Debt | New Credit Facility Agreement                                      
Debt Instrument [Line Items]                                      
Line of credit facility, maximum borrowing capacity   $ 300,000,000                                  
Revolving Credit Facility                                      
Debt Instrument [Line Items]                                      
Interest expense         $ 41,200,000 $ 47,000,000 $ 23,700,000                        
Revolving Credit Facility | New Credit Facility Agreement                                      
Debt Instrument [Line Items]                                      
Line of credit facility, maximum borrowing capacity   500,000,000                   $ 705,000,000              
Accordion feature, increase limit                       $ 205,000,000              
Revolving Credit Facility | Line of Credit                                      
Debt Instrument [Line Items]                                      
Available borrowing capacity         245,500,000                            
Outstanding available letters of credit         $ 47,000,000                            
Revolving Credit Facility | Line of Credit | Japanese Revolving Loan                                      
Debt Instrument [Line Items]                                      
Line of credit facility, maximum borrowing capacity $ 19,000,000     $ 5,100,000             ¥ 3,000,000,000               ¥ 800,000,000
Debt issuance costs $ 100,000     $ 100,000             ¥ 22,000,000               ¥ 7,200,000
Basis spread on variable rate 0.75%     0.50%                              
Collateralized assets       $ 7,600,000                              
Revolving Credit Facility | Line of Credit | Initial Lenders                                      
Debt Instrument [Line Items]                                      
Debt issuance costs   8,400,000                                  
Letter of Credit | New Credit Facility Agreement                                      
Debt Instrument [Line Items]                                      
Line of credit facility, maximum borrowing capacity   $ 50,000,000                                  
v3.25.0.1
Debt - Maturity Debt Schedule (Details)
$ in Millions
Dec. 28, 2024
USD ($)
Debt Disclosure [Abstract]  
2025 $ 37.3
2026 18.3
2027 702.6
2028 2.9
2029 1.9
Thereafter 2.2
Total $ 765.2
v3.25.0.1
Other Non-Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Other Liabilities Disclosure [Abstract]    
Lessee non-current lease liabilities $ 59.5 $ 45.8
Unrecognized tax benefits 28.6 24.4
Deferred revenue, non-current 27.4 26.4
Projected benefit obligation 9.0 9.5
Indirect tax payable, non-current 0.0 8.4
Income tax payable, non-current 0.0 7.1
Other 3.6 7.9
Other non-current liabilities $ 128.1 $ 129.5
v3.25.0.1
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 27, 2025
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized (loss) gain on cash flow hedge [1]   $ (1.3) $ (8.8) $ 14.7
Tax (benefit) provision   $ (0.5) $ (2.7) $ 4.6
Forecast | Interest Expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized gain on cash flow hedge $ 4.4      
Designated as Hedging Instrument | Interest rate contracts, inclusive of accrued interest        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Average fixed interest rate related to derivative contracts   3.20%    
Maturities of derivative contracts   3 years    
[1] See Note 17, “Derivative Instruments and Hedging Activities”, for further details.
v3.25.0.1
Derivative Instruments and Hedging Activities - Schedule of Fair Value of Hedging Instruments (Details) - Designated as Hedging Instrument - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of hedging instruments $ 6.7 $ 8.0
Interest rate contracts, inclusive of accrued interest | Other non-current assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of hedging instruments 6.8 11.6
Interest rate contracts, inclusive of accrued interest | Other non-current liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Fair value of hedging instruments $ (0.1) $ (3.6)
v3.25.0.1
Derivative Instruments and Hedging Activities - Schedule of Gain (Losses) Reclassified from AOCI (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses) reclassified from accumulated other comprehensive income $ 14.7 $ 14.9 $ 0.7
Designated as Hedging Instrument | Interest rate contracts | Non-operating gain      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Gains (losses) reclassified from accumulated other comprehensive income $ 14.7 $ 14.9 $ 0.7
v3.25.0.1
Derivative Instruments and Hedging Activities - Schedule of Accumulated Other Comprehensive Income Related to Hedging Instruments (Details) - Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]      
Beginning balance $ 7.8 $ 19.3 $ 0.0
Amount recognized in other comprehensive income 12.9 3.4 20.0
Amount reclassified into earnings (14.7) (14.9) (0.7)
Ending balance $ 6.0 $ 7.8 $ 19.3
v3.25.0.1
Business Combinations - Narrative (Details) - Sound United - USD ($)
 9 Months Ended 12 Months Ended
Apr. 11, 2022
Dec. 31, 2022
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Business Acquisition [Line Items]          
Percentage of voting interests acquired 100.00%        
Cash consideration $ 1,057,500,000.0000        
Revenue   $ 694,900,000 $ 697,400,000 $ 771,100,000  
Net loss   38,600,000 309,500,000 20,900,000  
Masimo          
Business Acquisition [Line Items]          
Acquisition related costs         $ 22,400,000
Sound United          
Business Acquisition [Line Items]          
Acquisition related costs         41,100,000
Selling, General and Administrative Expenses          
Business Acquisition [Line Items]          
Transaction costs   $ 16,600,000 $ 0 $ 0 $ 16,600,000
v3.25.0.1
Business Combinations - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
 12 Months Ended
Apr. 11, 2022
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Assets acquired:        
Goodwill   $ 96.7 $ 407.7 $ 445.4
Liabilities assumed:        
Adjustments to goodwill from purchase price allocation   $ 18.2 $ 18.2  
Sound United        
Business Acquisition [Line Items]        
Cash consideration $ 1,057.5      
Purchase price 1,057.5      
Assets acquired:        
Cash and cash equivalents 82.6      
Accounts receivables 108.5      
Inventories 238.6      
Prepaid expenses and other current assets 30.0      
Property, plant and equipment 113.2      
Intangible assets 649.0      
Goodwill 318.0      
Long-term other assets 7.4      
Total assets acquired 1,547.3      
Liabilities assumed:        
Accounts payable (118.8)      
Accrued liabilities and other current liabilities (148.9)      
Deferred tax liabilities (145.1)      
Other long-term liabilities (77.0)      
Total liabilities assumed $ (489.8)      
v3.25.0.1
Business Combinations - Schedule of Acquired Intangible Assets (Details) - Sound United
$ in Millions
Apr. 11, 2022
USD ($)
Business Acquisition [Line Items]  
Acquired finite-lived intangible assets, weighted average useful life 14 years
Intangible assets $ 387.0
Indefinite trademarks/tradenames 262.0
Total $ 649.0
Trademarks/tradenames  
Business Acquisition [Line Items]  
Acquired finite-lived intangible assets, weighted average useful life 10 years
Intangible assets $ 6.0
Customer relationships  
Business Acquisition [Line Items]  
Acquired finite-lived intangible assets, weighted average useful life 17 years
Intangible assets $ 196.0
Developed technology  
Business Acquisition [Line Items]  
Acquired finite-lived intangible assets, weighted average useful life 8 years
Intangible assets $ 156.0
Contractual license agreements  
Business Acquisition [Line Items]  
Acquired finite-lived intangible assets, weighted average useful life 15 years
Intangible assets $ 29.0
v3.25.0.1
Business Combinations - Pro Forma Information (Details) - Sound United - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 31, 2022
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]    
Net revenue   $ 2,293.4
Net income $ (304.9) $ 181.8
v3.25.0.1
Equity - Narrative (Details) - $ / shares
 1 Months Ended 12 Months Ended
Oct. 31, 2021
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Sep. 20, 2022
Jun. 30, 2022
Class of Stock [Line Items]            
Preferred stock, par value (in dollars per share)   $ 1.000 $ 1.000      
Shares repurchased (in shares)   0 0 3,000,000.0    
Rights to Purchase Series A Junior Participating Preferred Stock            
Class of Stock [Line Items]            
Preferred stock purchase right declared for each share of common stock (in shares)         1  
Preferred stock, par value (in dollars per share)         $ 0.001  
Purchase price per each right (in dollars per share)         $ 1,000  
Rights to Purchase Series A Junior Participating Preferred Stock | Minimum            
Class of Stock [Line Items]            
Threshold percentage to exercise purchase right         10.00%  
Rights to Purchase Series A Junior Participating Preferred Stock | Maximum            
Class of Stock [Line Items]            
Threshold percentage to exercise purchase right         20.00%  
2021 Repurchase Program | Common Stock            
Class of Stock [Line Items]            
Stock repurchase program, number of shares authorized to be repurchased (in shares) 3,000,000          
Stock repurchase program period in force 3 years          
2022 Repurchase Program | Common Stock            
Class of Stock [Line Items]            
Stock repurchase program, number of shares authorized to be repurchased (in shares)   5,000,000       5,000,000
v3.25.0.1
Equity - Schedule of Stock Repurchase Activities (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Equity [Abstract]      
Shares repurchased (in shares) 0 0 3,000,000.0
Average cost per share (in dollars per share) $ 0 $ 0 $ 133.82
Value of shares repurchased $ 0.0 $ 0.0 $ 401.5
v3.25.0.1
Stock-Based Compensation - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Feb. 26, 2024
Feb. 27, 2023
Feb. 14, 2022
May 31, 2020
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jun. 01, 2017
Schedule Of Share Based Compensation Arrangements [Line Items]                
Award vesting period         3 years 3 years 3 years  
Stock-based compensation expense (benefit)         $ 41.5 $ 7.0 $ 47.7  
Share-based compensation arrangement, weighted average remaining contractual term (in years)         3 years 2 months 12 days 4 years 10 months 24 days    
Weighted average remaining contractual term of options exercisable, years         2 years 2 months 12 days 2 years 10 months 24 days    
Total fair market value of all vesting options         $ 8.3 $ 9.5 12.4  
Aggregated intrinsic value of options outstanding         108.5      
Aggregated intrinsic value of options exercisable         105.8      
Aggregated intrinsic value of options exercised         58.2 19.0 14.6  
Total income tax benefit recognized for share-based compensation expense         5.7 2.9 2.5  
Employee Stock Option                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Stock-based compensation expense (benefit)         4.6 8.8 11.4  
Unrecognized compensation cost         $ 10.9      
Unrecognized share-based compensation related to unvested options granted, term         2 years 8 months 12 days      
Restricted Stock Units (RSUs)                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Stock-based compensation expense (benefit)         $ 34.2 $ 20.1 $ 14.4  
Unrecognized share-based compensation related to unvested options granted         $ 81.4      
Weighted average period         2 years 9 months 18 days      
Weighted average shares contingently issuable (in shares)         300,000 500,000 300,000  
Performance Shares                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Award vesting period 3 years 3 years 3 years          
Stock-based compensation expense (benefit)         $ 2.7 $ (21.9) $ 21.9  
Unrecognized share-based compensation related to unvested options granted         $ 13.3      
Weighted average period         1 year 2 months 12 days      
Weighted average shares contingently issuable (in shares)         200,000 100,000 300,000  
Performance Shares | 2021 PSU Grant                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Weighted average shares contingently issuable (in shares)         155,156 103,000 162,562  
2017 Equity Incentive Plan                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Increase in number of shares authorized (in shares)       2,500,000        
Minimum percentage of awards required to vest       95.00%        
Award vesting period       1 year        
Maximum | Performance Shares | 2021 PSU Grant                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Weighted average shares contingently issuable (in shares)             325,124  
Share-based compensation arrangement by share-based payment award, range of percentage payout         200.00% 200.00% 200.00%  
Maximum | 2007 Stock Incentive Plan                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Number of shares available for grant (in shares)               5,000,000
Maximum | 2017 Equity Incentive Plan                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Number of shares available for grant (in shares)       7,500,000        
Minimum | Performance Shares | 2021 PSU Grant                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Share-based compensation arrangement by share-based payment award, range of percentage payout         0.00% 0.00% 0.00%  
Minimum | 2017 Equity Incentive Plan                
Schedule Of Share Based Compensation Arrangements [Line Items]                
Number of shares available for grant (in shares)               5,000,000
v3.25.0.1
Stock-Based Compensation - Number and Weighted Average Exercise Price of Options Issued and Outstanding under All Stock Option Plans (Details) - $ / shares
shares in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Shares      
Options outstanding, beginning of period (in shares) 2.7 2.8 2.9
Granted (in shares) 0.1 0.1 0.1
Canceled/Forfeited (in shares) (0.6) 0.0 (0.1)
Exercised (in shares) (0.6) (0.2) (0.1)
Options outstanding, end of period (in shares) 1.6 2.7 2.8
Options exercisable, end of period (in shares) 1.5 2.4 2.4
Weighted-Average Exercise Price      
Options outstanding, beginning of period, average exercise price (in dollars per share) $ 87.79 $ 83.85 $ 81.38
Granted (in dollars per share) 126.49 177.29 150.91
Canceled/Forfeited (in dollars per share) 82.38 45.96 162.77
Exercised (in dollars per share) 39.47 43.22 54.53
Options outstanding, end of period, average exercise price (in dollars per share) 110.70 87.79 83.85
Options exercisable, end of period (in dollars per share) $ 105.02 $ 73.79 $ 65.83
v3.25.0.1
Stock-Based Compensation - Number and Weighted Average Exercise Price of Outstanding and Exercisable Options (Details) - $ / shares
shares in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Jan. 01, 2022
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Number of options, options outstanding (in shares) 1.6 2.7 2.8 2.9
Average Remaining Contractual Life 3 years 2 months 12 days 4 years 10 months 24 days    
Number of options, options exercisable (in shares) 1.5 2.4 2.4  
$15.00 to $50.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 15.00      
Range of Exercise Prices, upper (in dollars per share) $ 50.00      
Number of options, options outstanding (in shares) 0.3 1.2    
Average Remaining Contractual Life 1 year 1 year 6 months    
Number of options, options exercisable (in shares) 0.3 1.2    
$50.01 to $80.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 50.01      
Range of Exercise Prices, upper (in dollars per share) $ 80.00      
Number of options, options outstanding (in shares) 0.0 0.0    
Average Remaining Contractual Life 1 year 8 months 12 days 2 years 6 months    
Number of options, options exercisable (in shares) 0.0 0.0    
$80.01 to $120.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 80.01      
Range of Exercise Prices, upper (in dollars per share) $ 120.00      
Number of options, options outstanding (in shares) 0.6 0.7    
Average Remaining Contractual Life 2 years 3 years 8 months 12 days    
Number of options, options exercisable (in shares) 0.6 0.7    
$120.01 to $160.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 120.01      
Range of Exercise Prices, upper (in dollars per share) $ 160.00      
Number of options, options outstanding (in shares) 0.4 0.4    
Average Remaining Contractual Life 4 years 3 months 18 days 6 years    
Number of options, options exercisable (in shares) 0.3 0.3    
$160.01 to $200.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 160.01      
Range of Exercise Prices, upper (in dollars per share) $ 200.00      
Number of options, options outstanding (in shares) 0.2 0.3    
Average Remaining Contractual Life 4 years 3 months 18 days 7 years    
Number of options, options exercisable (in shares) 0.2 0.1    
$200.01 to $230.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 200.01      
Range of Exercise Prices, upper (in dollars per share) $ 230.00      
Number of options, options outstanding (in shares) 0.0 0.0    
Average Remaining Contractual Life 5 years 2 months 12 days 6 years 6 months    
Number of options, options exercisable (in shares) 0.0 0.0    
$230.01 to $280.00        
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]        
Range of exercise prices, lower (in dollars per share) $ 230.01      
Range of Exercise Prices, upper (in dollars per share) $ 280.00      
Number of options, options outstanding (in shares) 0.1 0.1    
Average Remaining Contractual Life 3 years 10 months 24 days 7 years    
Number of options, options exercisable (in shares) 0.1 0.1    
v3.25.0.1
Stock-Based Compensation - Summary of Unvested RSU and PSU Award Activity (Details) - $ / shares
 12 Months Ended
Feb. 26, 2024
Feb. 27, 2023
Feb. 14, 2022
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Weighted-Average Grant Date Fair Value            
Award vesting period       3 years 3 years 3 years
Restricted Stock Units (RSUs)            
Units            
Beginning of period (in shares)       3,500,000 3,200,000 3,000,000.0
Granted (in shares)       300,000 500,000 300,000
Canceled/Forfeited (in shares)       (2,800,000) (100,000) (100,000)
Vested (in shares)       (200,000) (100,000) 0
End of period (in shares)       800,000 3,500,000 3,200,000
Weighted-Average Grant Date Fair Value            
Beginning of period (in dollars per share)       $ 105.87 $ 105.65 $ 104.13
Granted (in dollars per share)       129.81 125.44 148.52
Canceled (in dollars per share)       96.65 172.19 168.90
Vested (in dollars per share)       146.85 173.18 184.04
End of period, fair value (in dollars per share)       $ 135.88 $ 105.87 $ 105.65
Performance Shares            
Units            
Beginning of period (in shares)       300,000 300,000 300,000
Granted (in shares)       200,000 100,000 300,000
Canceled/Forfeited (in shares)       (200,000) 0 (100,000)
Vested (in shares)       (100,000) (100,000) (200,000)
End of period (in shares)       200,000 300,000 300,000
Weighted-Average Grant Date Fair Value            
Beginning of period (in dollars per share)       $ 190.04 $ 180.04 $ 168.68
Granted (in dollars per share)       164.19 204.67 145.49
Canceled (in dollars per share)       185.37 155.98 139.70
Vested (in dollars per share)       73.00 179.42 127.46
End of period, fair value (in dollars per share)       $ 169.99 $ 190.04 $ 180.04
Award vesting period 3 years 3 years 3 years      
v3.25.0.1
Stock-Based Compensation - Range of Assumptions Used and Resulting Weighted-Average Fair Value of Options Granted at Date of Grant (Details) - $ / shares
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant      
Risk-free interest rate, minimum 3.30% 3.60% 1.00%
Risk-free interest rate, maximum 4.20% 4.20% 1.90%
Estimated volatility, minimum 33.30% 31.60% 31.20%
Estimated volatility, maximum 42.60% 36.70% 38.90%
Expected dividends 0.00% 0.00% 0.00%
Weighted-average fair value of options granted (in dollars per share) $ 59.60 $ 75.08 $ 46.69
Minimum      
Range of assumptions used and resulting weighted-average fair value of options granted at the date of grant      
Expected term, years 4 years 7 months 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 10 months 24 days 5 years 10 months 24 days 5 years 8 months 12 days
v3.25.0.1
Stock-Based Compensation - Total Share-Based Compensation Expense Included in Consolidated Statements of Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation $ 41.5 $ 7.0 $ 47.7
Cost of goods sold      
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation 1.0 1.1 1.0
Selling, general and administrative      
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation 25.2 (1.5) 32.9
Research and development      
Schedule Of Share Based Compensation Arrangements [Line Items]      
Stock-based compensation $ 15.3 $ 7.4 $ 13.8
v3.25.0.1
Employee Benefits - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 28, 2024
USD ($)
plan
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Defined Contribution Plan Disclosure [Line Items]      
Defined contribution plan, number of plans | plan 1    
Higher benefits paid $ (2.2)    
Higher employer contributions 1.5    
Lower actuarial gains 1.9    
Foreign currency revaluation period increase (2.2)    
Actuarial gain (0.4) $ (2.3)  
Unfunded balance (9.0) (9.5)  
Employer contributions 1.9 0.4  
Expected contributions for next fiscal year $ 1.8    
Masimo Retirement Savings Plan      
Defined Contribution Plan Disclosure [Line Items]      
Percent of employees pay 100.00%    
Percent of match 3.00%    
Company's contribution to employee retirement savings plan $ 4.6 4.9 $ 4.5
Masimo Retirement Savings Plan | Foreign Plan      
Defined Contribution Plan Disclosure [Line Items]      
Company's contribution to employee retirement savings plan $ 6.1 $ 5.5 $ 0.0
v3.25.0.1
Employee Benefits - Defined Benefit Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Plan Assets    
Fair value of plan assets at beginning of year $ 23.1 $ 22.2
Employer contributions 1.9 0.4
Participant contributions 0.7 0.6
Realized net gains (losses) on plan assets 0.3 1.1
Benefits paid (1.4) 0.8
Foreign currency revaluation and translation gains and (losses) (1.8) (2.0)
Fair value of plan assets at end of year 22.8 23.1
Projected Benefit Obligation    
Projected benefit obligation at beginning of year 32.6 32.3
Service cost 1.5 1.2
Participant contributions 0.7 0.6
Interest cost 0.4 0.5
Actuarial gains (losses) 0.4 2.3
Benefits paid (2.2) (0.5)
Foreign currency revaluation and translation gains and (losses) (1.6) (3.8)
Projected benefit obligation at end of year   32.6
Funded status $ (9.0) $ (9.5)
v3.25.0.1
Employee Benefits - Net Periodic Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Postemployment Benefits [Abstract]    
Service cost $ 1.5 $ 1.2
Interest cost 0.4 0.5
Amortization of net losses 0.1 0.0
Amortization of prior service costs (credits) (0.1) 0.0
Expected (gains) on plan assets (0.7) (0.7)
Net periodic defined benefit plan cost $ 1.2 $ 1.0
v3.25.0.1
Employee Benefits - Classification of Amounts Recognized in the Consolidated Balance Sheet (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Defined Contribution Plan Disclosure [Line Items]    
Unfunded balance $ 9.0 $ 9.5
Non-current liability    
Defined Contribution Plan Disclosure [Line Items]    
Unfunded balance $ 9.0 $ 9.5
v3.25.0.1
Employee Benefits - International Define Benefit Plans (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]      
Projected benefit obligation   $ 32.6 $ 32.3
Fair value of plan assets $ 22.8 23.1 $ 22.2
Foreign Plan      
Defined Contribution Plan Disclosure [Line Items]      
Projected benefit obligation 31.8 32.6  
Accumulated benefit obligation 29.9 28.3  
Fair value of plan assets $ 22.8 $ 23.1  
v3.25.0.1
Employee Benefits - Plan Assumptions (Details)
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Assumptions - benefit obligations:    
Discount rate 1.09% 1.35%
Rate of compensation increase 1.16% 1.04%
Assumptions - net periodic benefit costs:    
Discount rate 1.00% 1.91%
Rate of compensation increase 1.48% 1.43%
Expected long-term return on plan assets 3.43% 3.53%
Interest credit rate 1.26% 1.98%
v3.25.0.1
Employee Benefits - Plan Assets (Details)
Dec. 28, 2024
Dec. 30, 2023
Cash and cash equivalents    
Defined Contribution Plan Disclosure [Line Items]    
Defined Benefit plan, plan assets, actual allocation, including adjustments, percentage (5.70%) (5.00%)
Equity securities    
Defined Contribution Plan Disclosure [Line Items]    
Weighted-average asset allocation 40.60% 35.00%
Debt securities    
Defined Contribution Plan Disclosure [Line Items]    
Weighted-average asset allocation 41.90% 47.00%
Other    
Defined Contribution Plan Disclosure [Line Items]    
Weighted-average asset allocation 23.20% 24.00%
v3.25.0.1
Employee Benefits - Estimated Future Benefit Payments (Details)
$ in Millions
Dec. 28, 2024
USD ($)
Postemployment Benefits [Abstract]  
2025 $ 1.6
2026 2.1
2027 2.3
2028 2.0
2029 2.5
Thereafter 9.5
Total $ 20.0
v3.25.0.1
Non-operating Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Nonoperating Income (Expense) [Abstract]      
Interest income $ 4.8 $ 3.0 $ 1.8
Realized and unrealized foreign currency gain (loss) 0.2 (1.1) 7.3
Interest expense (43.6) (50.3) (25.7)
Non-operating loss $ (38.6) $ (48.4) $ (16.6)
v3.25.0.1
Income Taxes - Components of Income Before Provision for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
United States $ (67.1) $ 9.1 $ 77.6
Foreign (238.2) 79.0 115.8
(Loss) income before provision for income taxes $ (305.3) $ 88.1 $ 193.4
v3.25.0.1
Income Taxes - Current and Deferred Provision (Benefit) for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Current:      
Federal $ 15.0 $ 15.0 $ 48.7
State 3.4 3.5 6.1
Foreign 19.4 23.7 34.4
Subtotal 37.8 42.2 89.2
Deferred:      
Federal (19.0) (12.5) (20.5)
State (8.3) (9.0) (8.7)
Foreign (10.9) (14.1) (10.1)
Subtotal (38.2) (35.6) (39.3)
Total $ (0.4) $ 6.6 $ 49.9
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Taxes [Line Items]      
Increase (decrease) to tax and accrued interest related to uncertain tax positions $ 5.4 $ 7.4 $ 4.5
Undistributed earnings of foreign subsidiaries 997.5    
Accumulated undistributed earnings 86.5    
Foreign tax credits 1.9    
Reinvested earnings 911.0    
Additional income tax expense 26.8    
Indefinitely carryforward research and development credits 35.8    
Investment tax credit 2.7    
Increase in valuation allowance 7.6    
Amount of unrecognized benefits affecting future tax rate 35.6 30.6  
Income tax expense (benefit) related to unrecognized tax benefits 0.6 (1.0) $ (0.3)
Penalties and interest related to unrecognized tax benefits 2.7 $ 2.1  
Research Tax Credit Carryforward      
Income Taxes [Line Items]      
Tax credit 2.8    
General Business Tax Credit Carryforward      
Income Taxes [Line Items]      
Tax credit 6.8    
Domestic Tax Jurisdiction      
Income Taxes [Line Items]      
Operating loss carryforwards, gross 43.7    
State and Local Jurisdiction      
Income Taxes [Line Items]      
Operating loss carryforwards, gross 157.1    
Foreign Tax Jurisdiction      
Income Taxes [Line Items]      
Operating loss carryforwards, gross $ 125.9    
v3.25.0.1
Income Taxes - Reconciliation of U.S. Federal Statutory Tax Rate to Company's Effective Tax Rate (Details)
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Statutory regular federal income tax rate 21.00% 21.00% 21.00%
Foreign income taxed at different rates 6.70% 1.10% 0.00%
Excess stock-based compensation 1.80% (3.20%) (1.20%)
State provision, net of federal benefit 1.30% (4.90%) (1.00%)
Research and development tax credits 1.20% (5.10%) (1.70%)
Derecognition of uncertain tax position 1.10% (2.30%) (0.80%)
Transaction-related costs 0.00% 0.00% 0.90%
Tax credit 0.00% (9.20%) 0.00%
Nondeductible executive compensation (1.20%) (1.60%) 2.90%
U.S. tax on foreign income, net (3.50%) 10.00% 4.80%
Goodwill impairment (27.40%) 0.00% 0.00%
Other (0.90%) 1.60% 0.90%
Total 0.10% 7.40% 25.80%
v3.25.0.1
Income Taxes - Components of Deferred Tax Assets (Details) - USD ($)
$ in Millions
Dec. 28, 2024
Dec. 30, 2023
Deferred tax assets:    
Net operating losses $ 54.8 $ 53.7
Capitalized R&D 44.6 33.0
Accrued liabilities 39.3 24.6
Tax credits 36.7 33.2
Deferred revenue 27.6 28.0
Operating lease liabilities 13.8 9.7
Interest 11.8 15.6
Stock-based compensation 9.4 12.3
Inventory Reserve 1.1 0.0
Other 7.2 7.3
Total 246.3 217.4
Valuation allowance (26.5) (18.9)
Total deferred tax assets 219.8 198.5
Deferred tax liabilities:    
Inventory (0.8) (0.8)
Interest rate hedge (1.5) (1.9)
Withholding taxes on undistributed foreign earnings (3.1) (3.1)
Property and equipment (11.4) (14.4)
State taxes and other (12.4) (10.4)
Operating lease liabilities (17.2) (11.8)
Intangible assets (129.6) (160.5)
Other (0.3) (0.2)
Total deferred tax liabilities (176.3) (203.1)
Net deferred tax assets $ 43.5  
Net deferred tax liabilities   $ (4.6)
v3.25.0.1
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Unrecognized Tax Benefits [Roll Forward]    
Unrecognized tax benefits (gross), beginning of period $ 33,000 $ 26,100
Increase from tax positions in current period 7,200 7,900
Increase from tax positions in prior period 1,800 1,300
Lapse of statute of limitations (3,500) (2,300)
Unrecognized tax benefits (gross), end of period $ 38,500 $ 33,000
v3.25.0.1
Commitments and Contingencies (Details)
 1 Months Ended 12 Months Ended
Jan. 17, 2025
USD ($)
Nov. 13, 2024
USD ($)
shares
Jan. 01, 2024
USD ($)
Jun. 05, 2023
USD ($)
Jan. 30, 2023
patent
Oct. 13, 2020
patent
Nov. 04, 2015
USD ($)
Oct. 31, 2024
USD ($)
Feb. 28, 2023
patent
Jul. 31, 2017
Dec. 28, 2024
USD ($)
distributor
agreement
customer
executiveOfficer
shares
Dec. 30, 2023
USD ($)
customer
distributor
shares
Dec. 31, 2022
USD ($)
distributor
shares
Oct. 24, 2024
USD ($)
Oct. 22, 2024
USD ($)
agreement
Apr. 12, 2024
USD ($)
agreement
Oct. 20, 2022
complaint
Contingencies And Commitments [Line Items]                                  
Severance plan participation agreements | executiveOfficer                     5            
Period for notice of resignation                     6 months            
Current annual minimum royalty obligation                     $ 5,000,000.0            
License fee                     2,500,000            
Royalty guarantees, commitments, change in control                     15,000,000.0            
Royalty guarantees, commitments, additional, change in control                     2,000,000.0            
License fee paid                           $ 2,500,000      
Remaining amount committed                     291,200,000            
Other commitment                     $ 4,800,000            
Success fee payment period     60 days                            
Loss contingency, success fee amount     $ 18,600,000                            
Number of endorsement agreements | agreement                     1         2  
Principal amount of endorsement agreement                               $ 11,500,000  
Endorsement agreement minimum guaranteed royalty payment                     $ 500,000            
Number of endorsement agreements terminated | agreement                             1    
Endorsement termination                             $ 2,000,000    
Endorsement agreement outstanding obligation                     5,800,000            
Cash and cash equivalents                     177,600,000 $ 163,000,000.0 $ 202,900,000        
Bank balance covered by federal deposit insurance corporation limit                     $ 7,900,000            
Subsequent Event | Ms Catherine Szyman                                  
Contingencies And Commitments [Line Items]                                  
Annual base salary $ 1,000,000                                
Annual target long-term incentive award $ 7,000,000                                
Retirement policy attainment period 60 years                                
Continuous employment period 5 years                                
Minimum                                  
Contingencies And Commitments [Line Items]                                  
Endorsement agreement term (in months)                               18 months  
Minimum | Subsequent Event | Ms Catherine Szyman                                  
Contingencies And Commitments [Line Items]                                  
Base salary percentage 100.00%                                
Maximum                                  
Contingencies And Commitments [Line Items]                                  
Endorsement agreement term (in months)                               36 months  
Maximum | Subsequent Event | Ms Catherine Szyman                                  
Contingencies And Commitments [Line Items]                                  
Base salary percentage 200.00%                                
Masimo Vs. Apple Inc                                  
Contingencies And Commitments [Line Items]                                  
Number of patents found infringed | patent         2       2                
Masimo Vs. Apple Inc | Pending Litigation                                  
Contingencies And Commitments [Line Items]                                  
Patents found infringed upon | patent           3                      
Patents found not infringed upon | patent           9                      
Apple, Inc. Patent Infringement | Pending Litigation                                  
Contingencies And Commitments [Line Items]                                  
Number of complaints | complaint                                 2
Loss contingency, damages awarded, value               $ 250                  
Brennan Agreement                                  
Contingencies And Commitments [Line Items]                                  
Annual base salary   $ 1,042,000                              
Discretionary bonus of target amount   $ 621,250                              
Sales                                  
Contingencies And Commitments [Line Items]                                  
Number of just-in-time distributors | distributor                     1 1 1        
Accounts Receivable                                  
Contingencies And Commitments [Line Items]                                  
Concentration risk accounts receivable customer | customer                     1 1          
GPO Members | Revenue Benchmark | Customer Concentration Risk                                  
Contingencies And Commitments [Line Items]                                  
Concentration risk, percentage                     56.90% 53.20% 53.80%        
Just in time distributor one | Revenue Benchmark | Customer Concentration Risk                                  
Contingencies And Commitments [Line Items]                                  
Concentration risk, percentage                     12.30% 11.20%          
Just in time distributor two | Revenue Benchmark | Customer Concentration Risk                                  
Contingencies And Commitments [Line Items]                                  
Concentration risk, percentage                         10.10%        
Customer One | Accounts Receivable | Customer Concentration Risk                                  
Contingencies And Commitments [Line Items]                                  
Percentage of accounts receivable balance                     8.10% 6.40%          
Restricted Stock Units (RSUs)                                  
Contingencies And Commitments [Line Items]                                  
Granted (in shares) | shares                     300,000 500,000 300,000        
Restricted Stock Units (RSUs) | Brennan Agreement                                  
Contingencies And Commitments [Line Items]                                  
Granted (in shares) | shares   8,916                              
Chief Executive Officer                                  
Contingencies And Commitments [Line Items]                                  
Severance payment period             3 years                    
Equity awards             $ 2,700,000                    
Cash payment             $ 35,000,000                    
Qualifying termination       $ 479,700,000                          
Chief Executive Officer | Cash Distribution                                  
Contingencies And Commitments [Line Items]                                  
Severance terms                   50.00%              
Chief Executive Officer | Restricted Stock Units (RSUs)                                  
Contingencies And Commitments [Line Items]                                  
Severance terms                   50.00%              
v3.25.0.1
Segment and Enterprise Reporting - Segment Information (Details)
 12 Months Ended
Dec. 28, 2024
USD ($)
segment
Dec. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting [Abstract]      
Number of reportable segments | segment 2    
Number of operating segments | segment 2    
Segment Reporting Information [Line Items]      
Total revenue by segment $ 2,094,400,000 $ 2,048,100,000 $ 2,035,800,000
Cost of goods sold 1,090,000,000 1,044,600,000 977,000,000.0
Gross profit 1,004,400,000 1,003,500,000 1,058,800,000
Depreciation and amortization 103,000,000.0 98,200,000 136,100,000
Total assets 2,625,700,000 3,041,500,000  
Asset held for sale 17,400,000 0  
Intersegment      
Segment Reporting Information [Line Items]      
Total revenue by segment 4,900,000 7,700,000 0
Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue by segment 2,094,400,000 2,048,100,000 2,035,800,000
Corporate overhead      
Segment Reporting Information [Line Items]      
Total assets 0 19,100,000  
Healthcare      
Segment Reporting Information [Line Items]      
Depreciation and amortization 48,700,000 38,100,000 36,000,000.0
Healthcare | Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue by segment 1,395,200,000 1,275,500,000 1,340,300,000
Cost of goods sold 520,700,000 498,400,000 470,100,000
Gross profit 874,500,000 777,100,000 870,200,000
Acquired asset amortization (1,800,000) (2,000,000.0) (2,300,000)
Business transition and related costs (77,100,000) (5,600,000) (100,000)
Total assets 1,601,100,000 1,631,800,000  
Healthcare | Segment Reconciling Items      
Segment Reporting Information [Line Items]      
Cost of goods sold 80,200,000 11,500,000 2,400,000
Gross profit (1,300,000) (3,900,000) 0
Non-healthcare      
Segment Reporting Information [Line Items]      
Depreciation and amortization 54,300,000 60,100,000 100,100,000
Non-healthcare | Operating Segments      
Segment Reporting Information [Line Items]      
Total revenue by segment 699,200,000 772,600,000 695,500,000
Cost of goods sold 463,900,000 514,600,000 443,000,000.0
Gross profit 235,300,000 258,000,000.0 252,500,000
Acquired asset amortization (17,700,000) (19,700,000) (61,500,000)
Business transition and related costs (7,500,000) (400,000) 0
Total assets 1,007,200,000 1,390,600,000  
Non-healthcare | Segment Reconciling Items      
Segment Reporting Information [Line Items]      
Cost of goods sold $ 25,200,000 $ 20,100,000 $ 61,500,000
v3.25.0.1
Segment and Enterprise Reporting - Revenue and Long-Lived Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total long-lived assets $ 400,300 $ 425,900  
Total long-lived assets, percentage 100.00% 100.00%  
Total revenue $ 2,094,400 $ 2,048,100 $ 2,035,800
Total revenue, percentage 100.00% 100.00% 100.00%
United States (U.S.)      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total long-lived assets $ 319,700 $ 317,900  
Total long-lived assets, percentage 79.90% 74.60%  
Total revenue $ 1,127,600 $ 1,058,800 $ 1,141,700
Total revenue, percentage 53.80% 51.80% 56.10%
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total long-lived assets $ 80,600 $ 108,000  
Total long-lived assets, percentage 20.10% 25.40%  
Europe, Middle East and Africa      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 595,600 $ 571,900 $ 523,600
Total revenue, percentage 28.40% 27.90% 25.70%
Asia and Australia      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 303,500 $ 351,000 $ 326,800
Total revenue, percentage 14.50% 17.10% 16.10%
North and South America (excluding U.S.)      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 67,700 $ 66,400 $ 43,700
Total revenue, percentage 3.30% 3.20% 2.10%
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 28, 2024
Dec. 30, 2023
Jan. 01, 2022
Allowance for credit losses      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 5.0 $ 7.9  
Additions Charged to Expense and Other Accounts 0.9 (2.7) $ 5.6
Amounts Charged Against Reserve (0.5) (0.2) (0.2)
Balance at End of Period 5.4 5.0 2.5
Allowance for sales returns      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 8.7 5.3  
Additions Charged to Expense and Other Accounts 6.2 3.8 11.1
Amounts Charged Against Reserve (5.6) (0.4) (7.3)
Balance at End of Period $ 9.3 $ 8.7 $ 1.5